Date post: | 17-Aug-2015 |
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Health & Medicine |
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LIVE SIMPLY. LIVE WELL.
SXSW 2016
INDUSTRY PROBLEM SOLUTION CONSUMER BRAND STRATEGY BUSINESS MODEL FUTURE
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ABOUTLifeBoost
Driven by the passion of our founders, LifeBoost was formed in 2013 for the purpose of developing a patented in-home nutritional health maintenance system designed to provide consumers with the purest, most effective vitamin and nutritional supplement formulations available.
Our goal is to create a community of health conscious individuals that strive to live their best
For this community, we created tespo
We are launching in 2015, and are proud to say…
Background
Tespo is truly unique, with no other products in the health & wellness category available on the market today.
INDUSTRY PROBLEM SOLUTION CONSUMER BRAND STRATEGY BUSINESS MODEL FUTURE
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WHAT WE DO
Premium products in an easy to use system that promotes daily compliance and superior absorption
Truly great nutritional supplements in an innovative package — free of harmful fillers, binding agents and inactive ingredients like sugars, artificial flavors, colors, etc.
Shipped directly to the consumer each and every month — Never having to remember to consumer or purchase your vitamins means never having the opportunity to forget
Initial cost of in-home Tespo dispenser with monthly subscription program for Tespo discs — subscription plans with considerations for easily canceling the program at any time
Driven by transparency, customer experience and selfless action — education and research driven philosophy providing agnostic, unbiased health & wellness support
EFFORTLESS SIMPLICITY PURE INGREDIENTS BALANCED NUTRITION LIVE PILL FREE
INDUSTRY PROBLEM SOLUTION CONSUMER BRAND STRATEGY BUSINESS MODEL FUTURE
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HOW TESPO WORKS
A simple and efficient approach to daily vitamin consumption
INDUSTRY PROBLEM SOLUTION CONSUMER BRAND STRATEGY BUSINESS MODEL FUTURE
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TESPO DISPENSER DETAIL
Simplicity driven innovation
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PHILOSOPHYPurpose + Mission
We’re fundamentally driven by a desire to help all people lead simple, balanced and healthy lives.
Above all, we understand humanitarian values and consider people at the heart of everything we do.
We believe in the principles of Knowledge, Transparency, Trust and Honesty
We understand that everyone is connected and our actions impact those within the global community
We are driven by the philosophy Give to Receive and consider the greater community impact before individual desires
We’re dedicated to providing reputable opinions and agnostic viewpoints that allow the consumer to make their own health decisions as opposed to being told what’s “best”
We believe that true success in innovation is achieved only when monetary profit is equal to mutual satisfaction and maximum communal benefit
Tespo exists to provide all people a quality-
driven health experience through greater
awareness, empathetic /thoughtful decision
making and via innovative products centered
around a balanced and healthful way of life.
Overall, we place the needs of our consumer at
the heart of everything we do.
Mission Principles
INDUSTRY PROBLEM SOLUTION CONSUMER BRAND STRATEGY BUSINESS MODEL FUTURE
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Research and relevant statistics to illustrate the market opportunity within the Vitamin and Supplement industry
INDUSTRY
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INDUSTRYInforming Formula Decisions
This statistic depicts the most popular types of dietary supplements among U.S. adults. The statistic is based on a survey conducted in August 2014. Almost all adult supplement users surveyed took vitamins and minerals. The nutritional supplement industry has seen a large growth in the market, especially in protein supplements and vitamins.
0%
25%
50%
75%
100%
Vitamins + Minerals Specialty Supplements Herbals + Botanicals Sports NutriKon
19%26%
43%
97%
Most Popular Supplement Types Among U.S. Adults [in 2014]
Highest Market Share Nearly all users of VMS consume Vitamins and Minerals
MulKvitamin
Vitamin D
Calcium
Vitamin C
Vitamin B Complex
0% 20% 40% 60% 80%
21%
24%
24%
30%
75%
Top 5 Types of VMS Among U.S. Adults [in 2014]
Importance of Multivitamins Of the Vitamin users — Multivitamins serve the majority
SOURCE: Nutrition Business Journal: “Direct to Consumer Selling in the Nutrition Industry Report” 2014.
Vitamins and minerals are the leading selling segment with multivitamins leading both sales and consumer preference
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INDUSTRYInforming Formula Decisions
Higher Education A College Degree indicates a slightly higher propensity to consume VMS products
Female
Has College Degree
18-‐34 years
EducaKon Level
Gender
Age Group
0% 75% 150% 225%
74%66%
65%
67%
65%
71%
72%
Demographic Characteristics U.S. Adults [in 2014]
Male
No College Degree
35-‐54 years 55+ years
Gender Data suggests a slightly higher receptivity to VMS products with Female VMS consumers
Age Group The aging “Baby Boomers” demonstrate a greater usage percentage of VMS products relative to younger users
Nearly everyone consumes vitamins and supplements — regardless of age, gender or education
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INDUSTRYDirect-to-Consumer Sales
SOURCE: Nutrition Business Journal: “Direct to Consumer Selling in the Nutrition Industry Report” 2014.
Internet Leads Growth Internet continues to demonstrate double-digit growth with a YoY Growth Rate of 15.2% in 2013 - this steady double-digit growth has caused the channel to grow by thirteen-fold from 1999 - 2013
0
3,500
7,000
10,500
14,000
2007 2010 2013
Network MarketingPractitionerInternetMail/DRTV/Radio
Supplement Direct Sales by Channel in Mil. USD [2007 - 2013]
Internet leads Direct-to-Consumer Sales with consistent annual double-digit growth
INDUSTRY PROBLEM SOLUTION CONSUMER BRAND STRATEGY BUSINESS MODEL FUTURE
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INDUSTRYAddressing the Market Perceptions
0%
12.5%
25%
37.5%
50%
NutriKonal Deficiency Improve Overall Health Targeted Benefit Convenience Affordable
5%
9%9%
25%
45%
2%
7%
21%
41%41%
Advantages of Nutritional Supplements Comparing Consumer/Physician Opinion
The tespo Response Our product places an emphasis on Quality, Convenience and Affordability addressing
the top needs expressed by both Physicians and Consumers
SOURCE: AccentHealth “Vitamins, Minerals & Supplements: The Role of the Physician” October 2014.
Examining the preferences of both Consumers and Physicians related to VMS consumption
Disadvantages of Nutritional Supplements Comparing Consumer/Physician Opinion
0%
10%
20%
30%
40%
Misuse/Abuse Inefficacy Product CharacterisKcs Unnecessary Adverse Effects Price Untrue Claims
13%
18%
12%
17%
4%
19%
36%
11%
7%10%
12%15%
19%
23%
The tespo Response Technologically-driven organization, an emphasis on effectiveness and an avoidance around making
outrageous claims positions tespo in direct response to the stated concerns
INDUSTRY PROBLEM SOLUTION CONSUMER BRAND STRATEGY BUSINESS MODEL FUTURE
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INDUSTRYAligning with Industry Experts
Driving Awareness Integrating with partners (lifestyle health & wellness facilities), Natural Health Practitioners and Physicians
provides access to tespo through trusted authorities
SOURCE: AccentHealth “Vitamins, Minerals & Supplements: The Role of the Physician” October 2014.
Providing the consumer with the opportunity to taste, touch and feel
21% of physicians surveyed have VMS samples on-hand
Among physicians with access
to samples, 95% distribute
23% of consumers surveyed indicated having received a product sample, coupon, or product literature
Of those who received the above,
74% purchased the product as a result
Influenced by Samples65%
Influenced by Coupons57%
Influenced by Literature37%
INDUSTRY PROBLEM SOLUTION CONSUMER BRAND STRATEGY BUSINESS MODEL FUTURE
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Qualifying the needs of the market and illustrating the market potential for Tespo
PROBLEM STATEMENT
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PROBLEM STATEMENTPositioning tespo’s Consumer Value
The current Industry is complicated by… 1. Lack of Innovation: No fundamental change for decades
2. Messaging Creates Confusion: Industry embraces disambiguation
3. No Trusted Authority: Varied and opposite viewpoints
4. Limited Differentiation: tespo improves compliance which is a significant industry issue
5. Pushes Pills: tespo makes it simple provide supplements to the family – “kids love to use it”
The current Consumer is seeking… 1. Purity: A consumer friendly nutrient delivery system
2. Honesty + Transparency: Liquid supplements provide better absorption – “get more for your money”
3. Reliable Information: tespo improves compliance which is a significant industry issue
4. Convenience: Lack of excipients will be a differentiating factor – “only what your body needs”
5. Technological Innovation: tespo makes it simple provide supplements to the family – “kids love to use it”
6. A simple, effective and convenient way to live a balanced life…
Industry consumers crave innovation and tech-driven solutions as consumer trends position a need for purity, convenience, transparency and customization
A demonstrated history of predatory marketing…
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COMPETITIVE DIFFERENTIATIONTrust Driven Consumer-centered Approach
Low barriers to entry coupled with a massive market size lead to limited, superficial methods of health focused product differentiation
VITAMIN INDUSTRY COMPETITIVE STRATEGIES
MAKING HEALTH CLAIMS
MEGA-DOSE FORMULAS “TRENDY” INGREDIENTS
LOWER PRICES
MULTILEVEL MARKETING
INDUSTRY PROBLEM SOLUTION CONSUMER BRAND STRATEGY BUSINESS MODEL FUTURE
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COMPETITIVE DIFFERENTIATIONTrust Driven Consumer-centered Approach
Consumers are seeking a better way to live their best — introducing tespo
Key Factors influencing the tespo solution: 1. Pill Fatigue: a consumer-focused nutrient delivery system embodying No More Pills
2. Bio-availability: on-demand, liquid supplements providing better absorption – emphasizing value
3. Only active ingredients: lack of harmful additives will be a differentiating factor – delivering only what your body needs
4. Compliance: tespo makes daily use simple, efficient and effective - helping to build lifelong healthy habits
5. Convenience: tespo makes it easy and efficient to provide supplements for people of any age – as simple as pushing a single button
6. Mistrust and Predatory Marketing: trust, transparency and honesty drive tespo’s messaging
7. Innovative Product Design: consumer focused innovation x modern and thoughtful product formulations
Value Proposition and Messaging will change by demographic Overall, tespo is a trusted, efficient & effective, safe & convenient solution for consumers seeking premium ingredients in an organized, simple delivery system. Compliance, ease of use and user experience will be critical factors to enhancing our customer’s user experience and creating lasting value for their lives. Above all, staying true to our mission and philosophical brand values allow us to remain conscious of the collective tespo community and their ever-changing needs.
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Responding to consumer latent needs - tespo delivers a meaningful solution
SOLUTION
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OUR APPROACHInnovative Product + Consumer Direct
tespo dispenser Organized Vitamin Delivery System
Provides maximum efficiency and reminds consumers
Compliance with daily Vitamin consumption
Safe and effective
Smart design provides daily 0.5oz — 1.5oz dosage
Liquid Vitamin Product
Easy consumption
Higher Bioavailability
Mix with beverage of choice
tespo discs Convenient, highly pure daily vitamin
Contains only the active ingredient
Only what your body needs — no fillers or binders
Monthly Discs — 31-daily servings
Subscription Program — delivered to your door
Scheduled for added convenience
Recyclable and Sustainable Production
Enticing, fun shape and colors
tespo is simple, elegant and designed to make life easier
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PRODUCT EVOLUTIONConvenience Driven Product Delivery Methods
Todays consumer responds to custom products and convenient on-demand delivery systems
Greater Choice + Flexibility Added Convenience
Organized Individual Serving Convenient Delivery Method
Innovation-driven Convenience Technology meets Health Products
Lower Cost Environmental Sustainable
Only Active Ingredient More “Natural” Formula
Superior Product Formulation Easier Compliance + Organization
To each, their own… Every user within the home is able to make their own products, affording greater choice to a user group
On-the-go usage… Smaller containers allow for the user to consumer anywhere - no longer focused on bulk
Custom convenience… Access to only what you need - designed to make compliance simple, easy and efficient
INDUSTRY PROBLEM SOLUTION CONSUMER BRAND STRATEGY BUSINESS MODEL FUTURE
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TESPOValue Proposition
transparency + trust
efficiency + economics
safety + subscription
purity of ingredients + absorption
organized system
community
Resources, consumer education, full disclosure and visibility of the complete value chain and product lifecycle
High quality product, delivered direct to consumer and priced at the middle of the market
Emphasis on optimal ingredient sourcing and the ease of compliance through at-home delivery
Highly bioavailable product with an emphasis on innovative ingredient delivery methods insure maximum benefit
Device serves to simplify and keep VMS consumption top of mind for the consumer and households
Lifestyle branding creates a relationship with consumers and supports total health & wellness
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BRAND FORMULATION STRATEGYCare About What’s Inside
Our brand formulas are fundamentally based in science with no unnecessary ingredients
Ingredients (SOURCE LIST): Magnesium Citrate, Citric Acid, Natural Flavor, Polydextrose, Ascorbic Acid (Vitamin C), Stevia, Zinc Citrate, D-‐
Alpha Tocopheryl Acetate (Vitamin E), Niacinamide (Vitamin B3), Manganese Gluconate, Calcium Pantothenate (Vitamin B5), L-‐
Selenomethionine, Lutein 5% Encapsulated, Cholecalciferol (Vitamin D3), Beta Carotene, Coenzyme Q10, Vitamin A Palmitate, Pyridoxine
Hydrochloride (Vitamin B6), Thiamine Hydrochloride (Vitamin B1), Zeaxanthin 5%, Riboflavin (Vitamin B2), Phylloquinone (Vitamin K), Boron
Citrate, Copper Gluconate, Chromium Picolinate, Folic Acid, Biotin, Potassium Iodide, Sodium Molybdate, Vitamin B-‐12 (As Cyanocobalamin).
A"en%on to Detail in Sourcing Ingredients
No Addi.ves or Binding Agents ONLY subtle flavoring
RDA: Though>ul Considera.ons without MEGA Dosing
Ingredients that are difficult for the body to fully absorb are raised above RDA; while ingredients
with potential for over consumption are slightly lowered.
Premium Ingredient Addi.ons for Total Formula Quality
Premium ingredients added to the formula to provide a complete Men’s Formula without
compromising quality or deceptive labeling/marketing.
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FORMULASStart with Basic
Launching with fewer products with a emphasis on quality — motivated to crawl before we walk
Focus
FOCUS
ENERGY
WOMENS
MENS
CHILDRENS SPORT
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Evaluation of the Target Market for tespo products
CONSUMER
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UNDERSTANDING OUR CONSUMERDemographic Personas
* SOURCE: Independent Survey of Consumer VMS Preferences and Willingness to Purchase. JUNE 2014
ACTIVE + HEALTH CONSCIOUSTECH SAVVY EARLY ADOPTERSBUSY CARETAKERS
PERSONAS Initial Targets
YOUNG AT HEART
54% of men 47% of women surveyed indicated an intent to purchase the proposed tespo device.*
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UNDERSTANDING OUR CONSUMERDemographic Personas | Details
PERS
ONA
S
Aging with Health and GraceWith a high income and a willingness to pay a premium for innovative health alternatives, the older crowd stands to benefit from an approach where quality is the
differentiator and the delivery method is “easier to swallow”. No longer is the older generation relegated to the Nursing Home, these aging consumers are often more active than their younger opposites — and with activity naturally comes an emphasis on Dietary Health and Longevity. Purchase decisions rest on value, efficacy, associated
experiential qualities and perception of advantages or benefits with products.
Motivated to lead a Healthy Life and Share with their NetworkDriven by a desire to express their opinions through lifestyle choices such as eating Organic foods and achieving mindfully driven fitness (Yoga, Pilates). Focused on understanding and incorporating healthy lifestyle choices and sharing their experience passionately with their networks, both friends and family. Purchase decisions
consider the environment and sustainability, an understanding of the consumer’s global impact and driven my both independent research and trusted opinion.
Young + Aspirational Lifestyle DrivenFor these individuals, leading a modern lifestyle balancing innovation and cost/benefit analysis is crucial. Driven by a desire to be an authority in the areas of technological
innovation - these consumers drive modern innovations such as Uber and new product subscription/awareness programs like Birchbox, Frank & Oak and Trunk Club. More driven by style and brand philosophy, health and wellness considerations are most relevant when they respond to the aforementioned topics. Active on social and
digital media, these consumers purchase new and innovative products and consider their buying habits to be a definition of their personal lifestyle.
Active Lifestyle with a Modern ApproachAs the head of household, these individuals strive to balance their busy lives seeking convenient solutions that strike a balance between necessity and health, or benefit. Schedule driven, these consumers approach every day seeking greater organization, flexibility (quick fitness options like a Pilates class) and need a solution that makes their life easier while placing a great importance on quality (Blue Apron). Purchase decisions must be driven by simplicity - yet, many in this group pride themselves on
their lifestyle choices and share their strategies openly through social channels and Word-of-Mouth throughout their personal networks, friends and family.
BUSY CARETAKERS
TECH SAVVY
ACTIVE + HOLISTIC
YOUNG AT HEART
Our proposed Target Consumer Personas are outlined below:
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How tespo will plan, set and reach brand goals during the initial year
COMMERCIAL BRAND STRATEGY
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COMMERCIAL APPLICATIONVitamins as the foundation for a complete health & wellness lifestyle
tespo Commercial Application is designed for improved frequency, efficiency and sustainability
commercial partnership support example
Custom molded, recyclable cups designed to fit neatly inside the tespo glass.
Matching tespo disc colors, these cups latch onto the mixing glass to ensure a precise
formula with each serving.
Simple, branded cup holder to keep things organized.
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COMMERCIAL APPLICATIONVitamins as the foundation for a complete health & wellness lifestyle
tespo is focused on two distinct markets — Complete formula line for Consumer Direct and enhancement formulas for Commercial Partnerships
HEALTH CLUBS & PROFESSIONAL ENVIRONMENTS
Men’s Multivitamin
Women’s Multivitamin
Children’s Multivitamin FocusEnergy
Commercial Offerings Caffeine free Focus and a caffeine enriched Energy
In Home Offerings Daily blends of essential vitamins
Sport
SILENT GENERATIONBABY BOOMERSGENERATION XMILLENNIALS
INDUSTRY PROBLEM SOLUTION CONSUMER BRAND STRATEGY BUSINESS MODEL FUTURE
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COMMERCIAL APPLICATIONVitamins as the foundation for a complete health & wellness lifestyle
tespo is focused on two distinct markets — Complete formula line for Consumer Direct and enhancement formulas for Commercial Partnerships
LOCATION OWNER BENEFITS 1. Ambassador Program: Earn a lucrative stream of new revenue from in home purchases from affiliates members
2. Innovative: Remain a unique forward thinking club/studio/gym to new and current members
3. Manageable: Zero to minimum maintenance from onside employees
4. Sustainable: Tespo offers a simple recycling program for returning monthly discs
5. Customizable: Brand the Tespo machine and coinciding discs with your organization’s logos and colors
6. Inventory Management: Reduce counter space, shelf space, closet space etc. with smart tracking, door to door delivery
MEMBERS BENEFIT 1. Focus: Concentrate & outperform on daily routines
2. Morale: Provide enjoyable liquid vitamins to improve members health
3. Affiliate Program: Earn revenue by becoming an Affiliate after 3 months of owners by purchasing and selling in-home Tespo systems
4. Cost: Pay $1-$3 for a pre-work out 4oz. shot
5. Size: Tespo shots provide less liquid consumption compared to pre workout coffee, soda, sports or energy drink
6. Dispenser: Familiar with their Tespo home system, customers will trust a formula that provides them antioxidants and energy in a disc similar to their Multivitamin
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BUSINESS MODELThe following sections outlines the business model and three year forecast. Management has
developed the forecast using validated quotes for key cost components such as dispenser, disks, formulas, fulfillment, etc.
The revenue assumptions were developed using competitive product analysis, focus group studies and on-line surveys. Some of the key findings are provided in the following pages.
INDUSTRY PROBLEM SOLUTION CONSUMER BRAND STRATEGY BUSINESS MODEL FUTURE
Positioned as a Premium Product focused on consumer value
31
MARKET RECEPTIVITYSurvey Findings in Support of tespo
24% of females have difficulty swallowing pills, yet only 14% utilize non-pill form of supplements such as powders or liquid
36% of females and 41% of males pay in excess of $25 per month for their supplements
77% of the females and 80% of the male respondents did not know that liquid is more bioavailable than pills/tablets
47% of the female and 54% of the male respondents indicated they were “highly likely or very likely” to purchase a dispenser unit
26% of the respondents would be willing to pay more than $75 for the dispenser
76%
10%
14%
Difficulty Consuming Pills With 24%.of Females expressing concern, only 14%
utilize alternatives
24% of females have difficulty swallowing pills, yet only 14% utilize non-pill form of supplements such as powders or liquid
64%
36%
59%
41%
Willingness to Pay High percentages of both gender able and willing to
purchase tespo products
Women Men
36% of females and 41% of males pay in excess of $25 per month for their supplements
Developed using comparative product analysis, surveys and focus group results, the tespo pricing strategy is driven by the following key findings:
INDUSTRY PROBLEM SOLUTION CONSUMER BRAND STRATEGY BUSINESS MODEL FUTURE
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FUTUREEvaluation of future potential for tespo as a connected home device
integrated with the user’s technological lifestyle
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CONVERGENCEIndustry Trends Support Customized Innovations
CUSTOMIZED Individual User-specific
Vitamin Servings
EXPANSION OF MARKETS Single-serving dispensers recently entered the Baby Formula marketSUBSCRIPTION PROGRAM
Numerous products are now delivered to consumer’s doors monthly adding
convenience
Appropriately positioned to capitalize on the convergence of technology and customization present in the VMS and pharmaceutical industries
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PLANNING THE FUTUREInnovation is Critical
We will have the ability leverage our hardware with wifi capabilities and software innovation to connect consumers electronically with LifeBoost
As we release the first version of tespo, we’re looking to create an even more positive impact on our consumer’s daily life
Our next iteration gives consumers a unique opportunity to select “custom” formulations produced specific to their needs and individual requirements.
By leveraging mobile applications, our next generation dispenser is designed to monitor and communicate with mobile devices - providing information related to usage, timed dosages, health goals monitoring and ideally nutritional deficiency analytics.
The pharmaceutical industry applications present a significant opportunity for an intelligent tespo system - able to assist in monitoring, dosage, etc. in a single tool.
focused on creating a more significant impact on individual lives
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PLANNING THE FUTUREConvergence of Technology, Convenience and Consumer Customization
COMPLIANCE AWARENESS
OF USE
tespo Nutrition
Awareness
GOALS Monitor Progress
INTERNET Connectivity
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CONTACT INFOLifeBoost
Justin Gauvin Head of Tespo Commercial System & Strategic Partnerships
(339) 222-1440
Be one of the first exclusive users of Tespo, we appreciate your feedback, contact us anytime
Tespo wants to be apart of your team, this is a WIN|WIN system that can benefit everyone
GetTespo.com
CARE ABOUT WHATS INSIDE