Brief Competitor Analysis, Cost Structure & Business Plan
The main competition in the market is apps with similar features, including habit trackers, daily reminders, and reflection journals. Two examples stand out as rivals with a wider range of functions – Fabulous and Aloe Bud (Brown, 2022; Stubbs, 2020). In contrast to other applications, these apps offer several self-care-focused features. The functions, user statistics, and payment options of the two competitors are outlined in Table 1.
Table 1. Competitor examples.
Both apps have a high number of active users, and they are concentrated on targeted marketing for younger audiences. Moreover, they offer freemium features, although their approaches differ – Fabulous has an annual subscription, while Aloe Bud has one-time purchases. Nevertheless, these apps do not have the same range of features as the proposed self-care app, which distinguishes it as a strong competitor. Low freemium pricing, trial periods, and promotional sales can engage younger users with a limited budget. As both apps are only available on iOS, making the app available on Android or a website is beneficial.
There are many suppliers in the IT industry, the risk of high supplier concentration is low. For users, switching from one app to another usually does not entail high costs, especially if one uses free features. However, users do not usually get refunds for annual subscriptions, causing some hesitation in switching. The self-care app industry has many potential substitutes, but the range of features limits the number of potential competitors and lowers their attractiveness. It is difficult for app developers to offer their products outside official application stores, making the threat of vertical integration low.
Fixed costs for the self-care app will concern wages and benefits to people who contribute to the app development and promotion, taxes, software, insurance, advertising, staff education, and rent. The variable costs for the business concern office expenses, traveling costs, and business services. The business plan contains the company’s mission, objectives, and values, as well as a brief description of the product. The app will help people improve their relationships with food, increase the quality of sleep, and gain useful habits. Thus, the mission of the app is to help people improve their daily routines. The objectives are to launch the app by the end of summer 2022, expand it to the Australian market, and increase the number of active users. Long-term objectives concern the expansion of the app towards the international market. The main competitive advantage of the self-care app is that it will be personalized to the users through widgets.
Target Market and Its Needs
Since the beginning of the COVID-19 pandemic, the demand for self-care apps has increased. It is explained by the fact that over the past several years, people faced a high degree of stress, and apps are the quickest way to lower it and feel relaxed. That is why the potential market for these apps is growing and becomes highly competitive (Auxier et al., 2022). The target audience of self-care apps concerns people who may not have access to qualified psychological help or those who want to reduce the level of stress or struggle with different mental disorders.
The market for self-care apps is highly competitive as there are a lot of apps helping people track and reduce the level of anxiety, enhance sleep quality, and make daily routines healthier. That is why the app developers should come up with new peculiarities which help their apps differ from similar ones. Users do not want to make difficult choices – they are likely to look at an app that has many features. Apart from that, since self-care apps currently replace a visit to a psychologist, people want some medical support from them (Auxier et al., 2022). Hence, they know that they build their lives and cope with the stress by considering the recommendations of healthcare professionals. These elements of the target market signify that self-care app developers should give customers a variety of routines to control.
Feasibility Analysis
The present self-care app unities such routines as dietary habits, sleeping patterns and quality, exercise, work-life balance, period tracking, and mental health monitoring. This feature is useful for the customers because they will not have to download several apps for different activities. Moreover, they will be able to consult a healthcare professional through the present app as well as build new routines taking into account the medical recommendations. One more feature that will enable the app to differ from the competitors in the market is the ability to build a personalized list of the activities depending on one’s goals and needs. People may choose several routines they want to stick to, and they will get useful professional advice on their realization.
The present app may be considered unique in the market since it suggests various options to choose from and is suitable for both men and women. The universal list of options and the opportunity to personalize the content make it convenient for the users, which is necessary for the success of the wellness apps (Liew et al., 2019). The basic versions of the app and the website will be free, so the customers can test them and the service, in general, and see whether they want to pay for the advanced features. Thus, the present self-care app is able to fulfill the customers’ needs and become successful in the market since it unites the simplicity of use with professional content and help.
Key Economics of the Business
The main sources of finance will be in-app purchases such as unlocking advanced features of the Pro version and pop-up advertisements from the partners such as gyms, healthy food services, and medical professionals. Money got from the mentioned above resources will help the company cover fixed and variable costs and develop the business. The goals and objectives of the business concern the official release of the app in Australia by the end of summer 2022. Apart from that, the company plans to promote the app through social media so that more people will be able to find out about its benefits and try to use it.
When speaking about the long-term perspectives, it is necessary to mention that the company plans that the app will be among the leading and the most popular wellness apps in Australia. It gives them the opportunity to promote it in the international market since self-care apps, especially those that contain scientifically approved information on healthcare, are beneficial for people in all countries (Argento, 2018). Thus, the present self-care app is useful for the customers and competitive in the market because it relies on the professional knowledge of doctors and other healthcare professionals.
References
AppStore. (2022). Aloe Bud.
Argento, J. (2018). Self-help apps increase confidence, motivation. The Daily Universe.
Auxier, B., Bucille, A. & Westcott, K. (2021). Mental health goes mobie: The mental health app market will keep on growing. Deloitte.
Balagam, I. (2022). 2022 Fabulous app review: How does it work? Healthline.
Brown, S. (2022). 10 apps to help you embrace self-care. CNET.
Liew, M. S., Zhang, J., See, J. & Ong, Y. L. (2019) Usability challenges for health and wellness mobile apps: Mixed-methods study among mHealth experts and consumers. JMIR Mhealth Uhealth, 7(1).
Perez, S. (2018). Aloe Bud is the adorable self-care app you’ve been waiting for. TechCrunch.
Stubbs, V. (2020). 9 of the best self-care apps worth the download right now. Body and Soul.
TheFabulous. (2022). Growth :: Head of Marketing.