natalia club final executive summary

8/7/2019 Natalia Club Final Executive Summary

1/8

Natalia ClubRegistered domain name: www.nataliaclub.com

This logo is for illustration purposes only!

Executive Summary

Natalia Club is a new company that offers singles web-based matchmaking, introduction and communication

services. Natalia Club will be a Swiss based entity with share holdings held by Fred Cuthbertson, Paul Daniel,

Ruan Malan and other selected investors.

The Market

With the advent of Globalization the internet has provided a means for people to meet and make friends globally.

This includes individuals meeting each other through dating sites. It is currently estimated that 1:8 marriages now

happen through dating site introductions. This has created a very lucrative market for providers of these internet

dating sites some of which are still basic with others showing growing sophistication in the methods of paid for

communications.

In 2002, a Wiredmagazine article forecast that, "Twenty years from now, the idea that someone looking for love

without looking for it online will be silly, akin to skipping the card catalogue to instead wander the stacks because

'the right books are found only by accident.' Serendipity is the hallmark of inefficient markets, and themarketplace of love, like it or not, is becoming more efficient

United States residents spent $469.5 millionon online dating and personals in 2004, and over $500 million in

2005, the largest segment of paid content on the web other than pornography, according to a study conducted

by the Online Publishers Association (OPA). The U.S. online dating market is expected to increase spending to

$932 million in 2011.European online dating sites are attracting new users and will double revenues from 243

million euros in 2006 to 549 million euros in 2011, according to the Jupiter Research online dating market

forecast.( See: http://industry.tekrati.com/research/8487/)

The market trend is moving from single monthly subscriptions with simple subscriber profile information to paid

services including email, IM, SMS, Calls and Video Calling with more advanced profile matching for subscribers.

Natalia Club will target the distinct market segment of 36-60 year old men who wish to meet ladies initially from

the former Soviet Union. Natalia Club's services will appeal to this financially established age group with 10,000

possible customers.

Keys to Success

Natalia Club has identified keys to success which will be closely monitored.

y Engaging the market.

y Picking the right clients/members.

y Comprehensive web-based communication services.

y Online wallet payment solutions


2/8

y Ensuring sustainable profits.

The first is to engage the existing market. Natalia Club is compiling extensive market research to provide it with

accurate information regarding its target market.

The second is to pick right matches. If Natalia Club does not pick the right people, the business will not progress.

The third is to provide a web-based hub that will serve as an interface with a comprehensive set of paid for

communication services.

The last is to ensure sustainable profits - Natalia Club will be run with a long-term vision.

Management Natalia Club will be driven by Fred Cuthbertson from within the Ukraine. Paul Daniel and Ruan Malan will

oversight the operation including the development of the multimedia communication services. Natalia Club

provides an exciting opportunity for a company to leverage a professional web-based communications hub with

internet matchmaking with seasoned industry management into a sustainable company.

Objectives

y Become a global premier dating service.

y Achieve a sustainable success rate in placing clients in long-term relationships.

y Realize the profitability of web-based communications and matchmaking services.

Mission

It is Natalia Club's mission to provide the finest communication and matchmaking services. This will be achieved

through reasonable pricing, outstanding customer service and the most comprehensive communication services

available.

Company Summary

Natalia Club is a new company that will offer web based internet communications hub and matchmaking services.

Members will fill out a comprehensive questionnaire people's characteristics and likes and dislikes. The following information is

some of the information captured by the survey (please note that this is not an exhaustive list):

y Activities enjoyed

y

Interests

y Sports

y Hobbies

y Age

y Education

y Religious preferences

y Occupation

The most significant market differentiator to other traditional matchmaking services is that Natalia Club will offer a full s et of

paid for communication services between prospective partners. Rather than providing computer based matchmaking software

Natalia Club will offer a communications hub where individuals can enjoy personalized communications. This will include:

y

E

maily Voice calling

y SMS

y IM Instant Messaging

y Video Chat/Calls

Market Analysis Summary

Natalia Club has identified two distinct market segments. These segments are identified by age, 20-35 year olds

and 36-60 year olds. Recognizing that each group has different goals in a matchmaking service and respond


3/8

differently to marketing messages, Natalia Club will target the older group as distinct in being potential

customers; as the elder group contains the more high-end customer.

Natalia Club is competing against three styles of competitors. The first style of online personal classified like

Yahoo Personals. The second group is similar to the first however it is not Internet-based, it relies on newspaper

ads as the medium form. The last type of competitor is the traditional matchmaker services that relies solely on

an agency to capture information regarding the applicants and then makes the matches on their own.

Market Segmentation

Natalia Club has segmented its market into a distinct profile. This segment is identified by their age. Demographic

and assorted details include:

36-60 year olds:

y Incomes of $55,000- $100,000.

y 65% have a college degree.

y 41% have been married once.

y As they grow older they have had increased difficulty finding others their age.

y Have a tried a multitude of methods for meeting people, generally unsuccessful.

y Take the position that it cannot hurt to try new methods of meeting people.

Target Market Segment Strategy

Recognizing that the two groups are quite distinct, Natalia Club will adopt a different strategy for reaching each.

The company will seek to develop a second hub for the age group 20 35 years using the registered domain

www.findfuturelove.com The philosophy realizes that the younger age group is somewhat nervous in using a

dating service. For a multitude of reasons, there is the common thought that people of this age group should

have no problem meeting people. The second site must appear to be the "hip" new thing, it needs to give off the

appearance as being a cool thing to try, not some last resort for singles. Conversely, for the older crowd, it really

matters less that this appears to be a hip option, this option must give off the impression that it is effective in

finding someone's match. Additionally, each group has different goals that they hope to get out of this service.

The younger crowd is looking more for someone to spend time with, a short-term commitment type relationship.

The older crowd, facing the realities of companionship are looking for a more long-term relationship.

Service Business Analysis

The matchmaking industry had been fairly stagnant for a number of years, but within the last three years, with the

proliferation of online dating services, the entire industry has gotten a new breath of life. More and more people

are considering dating services as a viable and exciting option. It is not totally clear as to why the online services

would have such a positive impact on the entire industry as opposed to just their segment. Industry experts

believe that the online services served as a way of legitimizing the industry as a whole as an effective way of

meeting quality people.

Competition and Buying Patterns

y Online services: The competitors in this segment took the business model of the paper-based system and

moved it online to reach a broader audience and generate economies of scale. However the use of next

generation communications methodologies is still largely undeveloped; offering Natalia Club a first to

market highly competitive alternative.

y Newspaper-based personals: These competitors have a personal classified system where people write alittle ad about themselves and/or who they are looking for and people respond accordingly.

y Traditional matchmaker services: These do not use a computer for the predictive choices. Questionnaires

are filled out and the workers of the company then determine what matches to make.

Strategy and Implementation Summary

Natalia Club's strategy will be the emphasis on its matchmaking system that is more predictive than other

systems by allowing individuals to communicate within a safe, controlled environment. This will allow the user to


4/8

discover the most likely candidate as a life partner. Other systems rely too much on shallow variables such as

appearance, profiles and a short introductory letter. While appearance is important, when it is the primary

variable, the matchmaking is often temporary. In order to develop a stronger long-term relationship, other

variables must be taken into account. Focus groups indicate that although most people primarily gravitate toward

aesthetic considerations, they do so recognizing that this is less than ideal. For whatever reason, when the

variables are no longer chosen by the individual themselves but by a service, there is a sense of trust or comfort

because it is based on a host of things beyond appearance. Oddly, if people could recognize this and act on their

own volition, they would be more predictive themselves in choosing the right people. But as we all know,someone might know what is right but not be able to act appropriately. Personalized communication therefore

offers the best chance of any future relationship.

Competitive Edge

Natalia Club's competitive edge is its sophisticated communications hub that allows users to first choose the

person best suited to themselves. Basic personal information on each users profile allows the user to choose

potential matches before engaging in paid for communications. This competitive edge is a sustainable

competitive advantage because our proprietary technology will provide Natalia Club members better results than

its competitors.

Marketing Strategy

As mentioned before, it is imperative that Natalia Club market itself distinctively to the two different market

segments. For the younger segment the service must be viewed as the hip choice using advertisements toincrease awareness of offered services. These ads will give off the impression that cool people use the service

and that it is not a last resort for singles, but a fun, helpful service to link up with like-minded people. The website

will be hip, cool magazines, the trendy rags.

To appeal to the older crowd, Natalia Club must come off as a logically rationed, effective system for choosing

mates. Natalia Club will emphasize the accuracy of the communication system. It will highlight the detailed

information and needed communications to make an informed choice. It will also be vocal about its success rate

which is benchmarked at 45% for long-term relationships, well above the industry average.

Sales Strategy

Natalia Club's sales strategy will be based on capturing a large number of first time users of this service. This will

be initiated by Fred Cuthbertson willingness to relocate to the Ukraine to engage the local dating agencies on a

contractual basis. This is an existing, well established, industry with numerous agencies holding vast numbers of

profiles presented by local ladies who want to meet foreign men. Natalia Club is confident that it will be much

easier (and less expensive) to grow the user base from existing clients than to build it from people that have no

connection to Natalia Club. The Natalia website will be design by industry experts and will highlight on the major

search engines. This will draw foreign men to the landing page to view the content, pictures and profiles of the

ladies obtained from these agencies in the Ukraine.

This belief is held for two reasons, customers that try Natalia Club will be impressed by the effectiveness,

regardless if their first experience is a long-term relationship or not. They will see how they may choose their

matches, communicate and discover an underlying compatibility between their choices. Additionally the current

members will be quite vocal in telling their friends about Natalia Club providing a strong source of referrals.

Incentives for first time and long term/high spend members will at times be given out.

Sales Forecast

Although Natalia Club realizes that the first few months of operation may be relatively slow. This will be a functionof the need to generate awareness about Natalia Club and the fact that this takes time. Profitability will be

reached by month 12 with splendiferous sales by year three.

A market survey of current sites owned by Natasha Club, Single Baltic and 1st

International illustrates the typical

subscriber base and online real-time activity of these subscribers. These sites enjoy a combined average of 2042

subscribers that are online continuously throughout the hours of 8.00 am to12.00 pm daily. These subscribers

only enjoy the benefits of viewing profiles and communicating via email. Natalia Club will offer the additional

benefits of Calls, IM, SMS and Video Chat which will potentially generate significantly more revenue from real-

time subscriber activity.


5/8

Sample Market Activity

Date Total Subscribers Natasha Club Single Baltic 1st International

Male 86855 86044 87438

Female 55695 55698 55715

Real-Time Activity

28th Jan 2011 1.00 pm 1634 1618 2637

3.00 pm 1670 1676 2849

4.00 pm 1789 1808 3014

5.00 pm 2033 2056 3380

29th Jan 2011 10.00 am 1089 1289 2158

12.00 pm 1385 2317 1385

1.00 pm 1505 2537 1505

2.00 pm 1494 2549 1494

1st Feb 2011 6.00am 611 609 1040

8.00am 872 878 1477

10.00am 1165 1173 1962

11.00am 1500 1518 2391

12.00pm 1631 1643 2679

1.00pm 1775 1792 3015

2.00pm 1795 1761 2957

3.00pm 1969 2023 3244

4.00pm 1979 1977 3381

5.00pm 1876 1852 3218

6.00pm 2023 2008 3445

7.00pm 2045 2054 3451

8.00pm 2119 2123 3525

10.00pm 2137 2114 3539

11.00pm 2138 2105 3591

12.00pm 1482 1491 3010

Av Real-time Usage 1655 1790 2681

Milestones

y Business plan completion

y Secure initial investment

y Legal filing and registration of the company

y Establishment of a local Ukraine office

y Establish working contracts with Ukraine dating agencies

y First 500 customers

y Profitability


6/8

y Sustainable revenue

Web Hub Plan Summary

Although Natalia Club members will be actively using computers for engaging potential matches the website will

be more than a simple traditional dating site. The website will be used primarily for communication purposes and

act as a next generation communications hub. Hosting of the website will be done in the cloud and will be easily

accessible from any computer connected to the internet globally. Users will be able to log into their account to

communicate with potential matches. Payments will be strictly a prepaid solution using PayPal and other secure

credit card facilities into an online wallet that will be billed in real-time for all communication services.

Website Marketing Strategy

Natalia Club will rely on two methods of generating increased traffic of visitors to its website. The first method is

the submission of the website and keywords to popular search engines. This is useful because as users type in

Natalia Club's name or a related keyword the Natalia Club site will come up. Second will be the use of social

networking blogs and newer social network marketing methodologies.

Development Requirements

Natalia Club will utilize a knowledgeable Internet development consultants to complete the site. The site will

require specialized attention from the developers and Ruan Malan in the design of a next generation

communications hub.

Management Summary

Ruan Malan is an ICT specialist and entrepreneur. In 2002, he introduced the first SMS-based call-back system

approved by ICASA in South Africa. Ruan then identified the need to establish a carrier grade virtual operator in

South Africa that connects a network to the rest of the world with similar carrier grade technologies. He

subsequently assisted in the establishment of an international Telco that offers voice, SMS, IM, email and video

conferencing. Ruan is a Telco expert with vast experience in Telephony and other communications technologies.

Paul Daniel has a background in Leadership Training, Organizational Development and Communications. He

currently works as a consultant in Converged and Unified Communications to Corporate and SME markets.

Fred Cuthbertson is an entrepreneur having owned several business in construction, retail and consumer

services. Freds willingness to relocate to the Ukraine to build Natalia Club from grass roots is a key factor in the

establishment of a viable and legitimate business.

Personnel Plan

Business development will be over sighted by Paul Daniel and Ruan Malan.

The personnel plan is forecasted to have Fred working exclusively for the first several months, after which he will

hire full and part-time workers to help with administrative duties. Initially he will require the assistance of a

translator to negotiate rates and contracts with the local dating agencies. Fred will be responsible for local

operational activities, marketing activities, and some of the accounting. In terms of the operational activities, he

will be responsible for agency relations, customer service, and other back end administrative office activities from

within the Ukraine. After this a small back office will be set up to provide addition customer support and ongoing

liaison with the local agencies.

Ruan will work with the website developers to assist with the inclusion of all the communication hub elements and

the billing engine and hosted servers.

Paul will undertake the marketing activities in conjunction with the web developers and adopt the engagement of

social networking and marketing methodologies. In addition Fred will make a point to participate in a grass roots

style of marketing where he will be out mingling with perspective local agencies in "talking up" the services that

Natalia Club has to offer.


7/8

Fred, Paul and Ruan will also set up the accounting system on QuickBooks. While they will do some of the

accounting, much of the general data entry or bookkeeping with be accomplished by a future employee. The

employee will be responsible for a wide range of odds and ends activities such as the bookkeeping, customer

support, and much of the clerical activities. The leveraging of the part-time employee and consulting assistance

will be based on the philosophy that Fred should only be participating in value-added activities and that he should

have a lower paid employee taking care of responsibilities that do not require his skills or attention to detail.

Financial Plan

The following sections will outline important financial information.

Important Assumptions

The following table details important financial assumptions.

Year 2011 2012 2013

Plan Months 12 12 12

Swiss Tax Rate 5% 5% 5%

Accounting and Legal $12000.00 $12000.00 $12000.00

Annual Legal Fees $ 7000.00 $ 7000.00 $ 7000.00

Web hosting fees $ 12000.00 $ 12000.00 $ 12000.00

Interest earnings To be determined To be determined To be determined

Projected Profit and Loss

See the attached profit and loss projections for three years.

Notes on the projections:

1. The first three months show no income as:

1.1. The local business in the Ukraine will be established by Fred and agencies will be contracted into

Natalia Club and prepared for loading ladies profiles to the website

1.2. Legal entity will be established in Switzerland approximate time 2-4 weeks

1.3. Bank accounts opened in Switzerland - approximate time 1 week post legal entity registration

1.4. Web development, design and hosting will be completed approximate time 1-2 months

1.5. First subscribers and club members will be profiled on the website via web search engines and socialmarketing - approximate time 2-3 months

1.6. Anticipated income after 3 months is calculated on 500 members having joined Natalia club who are

communicating via the website communications portal

2. Costs are considered to be low considering the need for only a skeleton staff to assist Fred with a support

back office. The essential email communication and translation services will be contracted into the local

dating agencies see Profile Costs and Agency Commissions

3. Initial rent is high as Fred will be travelling from city to city for the first seven months before renting a

permanent flat which will be initially used as an office

4. Transport is initially high to cover intercity local transport (train, taxi and bus)


8/8

5. Costs of an interpreter are included from the first month to assist Fred with communications when required.

Conclusion

A brief search for dating sites on the world wide web will make it self-evident that not only is the online datingcommunity prolific worldwide but also that the revenues generated are substantial. Natalia club is poised to be

positioned as a unique next generation converged communications hub which offers exciting new technologiesfor the end user our future members and subscribers. Natalia will offer a first of its kind paid for communicationsportal with all the sophistication of real-time communications - a meeting place for individuals to meet in anincreasingly globalized village.

natalia club final executive summary

Documents