Capital AnalysisA Strategic Communication Plan for

Joanna D. Dillman

Queens University of Charlotte

dillmanj@queens.edu

TABLE OF CONTENTS

Executive Summary.........................................................................................................2

Purpose............................................................................................................................2

Rationale..........................................................................................................................3

Company Overview.......................................................................................................3

Challenges....................................................................................................................3

Opportunities.................................................................................................................3

Capital Analysis................................................................................................................4

Current Institutionalization Capital.................................................................................4

Current Economic Capital.............................................................................................5

Current Knowledge Capital...........................................................................................5

Current Social Capital...................................................................................................6

Current Symbolic Capital..............................................................................................6

Market Impacts.................................................................................................................7

Current and Previous Health and Fitness Clients.........................................................7

Busy, Working Class Individuals...................................................................................7

Fast, Convenient, Healthy Options................................................................................8

Suggested Communication Strategies.............................................................................9

Strategies for Developing Institutional Capital...............................................................9

Strategies for Developing Economic Capital...............................................................10

Strategies for Developing Knowledge Capital.............................................................10

Strategies for Developing Social Capital.....................................................................11

Strategies for Developing Symbolic Capital................................................................12

Intended Communication Objectives for Targeted Audience.........................................12

Prioritization of Strategies..............................................................................................13

Conclusion.....................................................................................................................14

References:....................................................................................................................15

EXECUTIVE SUMMARY

Healthy Solutions is an exciting, new business that is jointly owned by Joanna Dillman and Tabitha Carrier. Having struggled with weight loss, juggling the demands of motherhood, while working full-time, both owners understand the obstacles that hinder weight loss success. With their combined expertise in health and fitness, Joanna and Tabitha developed Healthy Solutions to take away the worry of meal planning and preparation. With no calorie or carb counting, customers are simply able to enjoy great tasting, chef prepared meals while working towards their healthy weight goals.

As Healthy Solutions is a new business venture, a communication strategy is needed to leverage available resources and utilize those resources as capital for developing a customer base. Developing this strategy will involve targeting three primary groups that include: Current and previous health and fitness clients of owners needing help with dietary

needs Busy, working class individuals looking to improve eating habits Individuals looking for fast, convenient meal options

To begin this process, Healthy Solutions must first look within to determine the sources of capital available. Capital examples range from financial resources and physical buildings, to fitness and health expertise of the owners, and the social networks that exist among current clients. Utilizing Pierre Bourdieu’s concepts to conduct a capital analysis will allow focused effort on developing strategies on areas of need to grow the customer base.

PURPOSE

Healthy Solutions needs to deploy resources effectively and strategically to introduce products and attract customers by focusing on existing health and fitness clients, busy, working class individuals looking to improve eating habits, and individuals looking for fast, convenient meal options.

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RATIONALE

COMPANY OVERVIEW

Healthy Solutions recognizes the strength it takes to make the decision to take the next step to a healthier lifestyle. To make that step easier, Healthy Solutions takes the stress of menu planning and preparation off the table. Each week, clients receive chef prepared meals that are convenient and smartly portioned. Another benefit of the product is that it provides education on proper nutrition and portion control which will aid in the client’s lifestyle change for effective weight management. It is the mission of Healthy Solutions to help build permanent healthy habits to help clients lose excess weight and to maintain that weight loss.

CHALLENGES

This business venture will face challenges from competitors as there are three well known competitors offering weight loss meals in the vicinity of Healthy Solutions serving area of Bogalusa, Louisiana. Two of these are major chains that are effective, but costly. The third competitor is locally owned in a city about forty-five minutes away from the serving area. The competitor offers reasonably priced meals and a local pick-up option for Bogalusa customers. However, the competitor is not entirely forthcoming about meal ingredients. They do not provide meal macro or ingredient information. In addition, they do not personally cook their meals although they advertise it as chef prepared. For example, the company uses Sam’s brand pre-made waffles and canned Hormel chili, but advertises it as a secret recipe.

OPPORTUNITIES

Although Healthy Solutions is a new business and not yet known in the community, the use of a capital analysis to create a strategic communication plan can help the company grow. According to the National Institute of Diabetes and Digestive and Kidney Diseases, more than 68.8 percent of adults are considered to be overweight or obese1. When starting the journey to a healthier lifestyle, many individuals have trouble knowing where to start. Some find their way to a local gym and few enroll the services of a personal trainer or health coach. However, many continue to struggle with what and how much to eat. This is where Healthy Solutions can assist.

CAPITAL ANALYSIS1 Source: Overweight & Obesity Statistics, 2012, p. 2

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In order to assess the current state of Healthy Solutions, a capital analysis based on Pierre Bourdieu’s concepts surrounding field will be utlized. According to Bourdieu’s work, “the definition of capital is very wide and takes in both material and immaterial resources.”2 In addition, “capital is considered to be accumulated labor: it is not a natural given, and it demands investment.”3 Having knowledge of the company’s area of weak capital will allow strategies to be developed to invest in that capital for further growth.

CURRENT INSTITUTIONALIZATION CAPITAL

As Healthy Solutions is a new company, the organization is still developing policies and procedures needed for operation. However, the company has a basic outline on the following policies and procedures: program offerings and rules, how to place and pay for an order, pick up procedures. It imperative to have these policies and procedures in place in order to attract and retain customers.

The image to the right is a brochure which communicates all organizational policies, procedures, and rules which are intended to provide a successful transaction.

2 Source: Ihlen, van Ruler, & Fredrikson, 2009, p. 66 3 Source: Ihlen, van Ruler, & Fredrikson, 2009, p. 66

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CURRENT ECONOMIC CAPITAL

Financial resources are currently limited for Healthy Solutions. The owner’s initial investment of $1000 will allow the purchase of packaging items and consumables needed for the first two weeks of operation. In addition, there is an anticipated 37% profit margin for each program sold which will allow the business to continue and savings to be accrued.Healthy Solutions does not yet own real estate to utilize while conducting business. However, an arrangement has been made to utilize a professional kitchen for a limited time each week for meal preparation. Another issue is the lack of a large refrigeration space to store prepared meals while waiting for delivery day. At this time, the business will utilize the owner’s personal refrigerators and freezers to store meals which will limit the amount of meals that can be sold.

CURRENT KNOWLEDGE CAPITAL

Bourdieu’s work indicates knowledge is important in order to ensure enough education has been obtained to be taken seriously by others. The combined knowledge of both owners enables the company to succeed its mission. Together the owners of Healthy Solutions have over ten years of experience in the fitness and health industry. Both are certified fitness and health professionals which includes nutrition education. Both ladies have experienced weight loss struggles and understands the obstacles faced by those trying to live a healthier lifestyle.

Individually, the owners have unique expertise which can be used to benefit the growth of the company. Joanna is a certified health coach with additional nutrition and culinary training. Utilizing this knowledge, she will prepare the weekly meals and ensure they meet the dietary requirements as recommended by the U.S. Department of Health and Hospitals. On the other hand, Tabitha is a personal trainer and has numerous years of experience in sales which can also be used to grow the customer base.

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CURRENT SOCIAL CAPITAL

Bourdieu’s work explains “social capital must be understood as having two components: first, the size of the network that a person possesses, and second, the volume of the capital that the other components of the network have and to which a person obtains access through the network” (Ihlen, et. al, 2009, p. 74). The owners of Healthy Solutions understand the significance of good relationships within the fitness and health industry. A strong relationship with a client improves the client’s chances of success. In addition, approximately 75% of new clients come from word-of-mouth.4

Currently, the owners have a combined active client base of forty individuals. In addition, there are over one hundred past clients which still maintain strong relationships with the owners. Third, both owners are active participants in the Bogalusa community; hosting fitness camps and races. Finally, the owners maintain an active profile on social media, promoting health and wellness, with a large following.

CURRENT SYMBOLIC CAPITAL

Among the pillars of Bourdieu’s work, symbolic capital is defined as “reputation for competence and an image of respectability and honourability (Bourdieu, 1984, p. 291).”5 Although the owners each have such a reputation which can be leveraged to assist the organization, Healthy Solutions have not yet earned such standing. It would be paramount for the company to do so quickly in order to allow the organization to fulfill its mission.

4 Source: J. Dillman & T. Carrier New Client Survey5 As quoted from Ihlen, et. al, 2009, p. 75.

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MARKET IMPACTS

In order for Healthy Solutions to effectively implement a communication strategy that increases its customer base, it must first define the audience being targeted, and then identify the best method for communication to that audience.

Healthy Solutions must target three specific groups: Current and previous health and fitness clients of owners needing help with dietary

needs Busy, working class individuals looking to improve eating habits Individuals looking for fast, convenient meal options

Because Healthy Solutions would be providing fresh meals, with little preservatives being used in the cooking process, all groups would need to live within thirty miles of the Bogalusa service area to ensure freshness. This requirement would limit the market significantly. However, the health and safety of the clients is priority.

CURRENT AND PREVIOUS HEALTH AND FITNESS CLIENTS

The owners each currently have a successful health and fitness training business which includes a combined client base of forty-six individuals. These individuals already have a relationship with one of the owners, made a commitment to healthy living, and would likely be willing to sign-up for the offered programs. The challenge for this group would be convincing them to spend the additional money for a meal plan. With personal training fees being $30 an hour, these individuals may be hesitant due to personal budget.

Audience Snapshot:Current contactsSocial relationship already formed Healthy living commitment already madePrefers print media to be delivered face-to-face

BUSY, WORKING CLASS INDIVIDUALS

A common excuse heard by health and fitness professionals is a person does not have time to eat properly or exercise. A typical client request is to simply tell them what and when to eat. Healthy Solutions meal plans solves this problem. The challenge for this group is making sure they are ready to make the commit to healthy living. Busy individuals are typically stressed. Stress causes overeating. Therefore, commitment is

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needed. The second challenge for this group is access to the program communication. Advertising options will need to be explored.

Audience Snapshot:Shows interest in healthy livingSocial relationships would need to be formedCan be reached via print, digital, networking events, and social media

FAST, CONVENIENT, HEALTHY OPTIONS

Individuals in this group typically do not want to lose weight, but still want to eat properly. Typically, these individuals are already concerned with healthy living and can be found in the gym setting. The challenge for this group would be convincing them the meal plan can be used by those not wanting to lose weight. Education on maintenance calorie intake needs would need to be provided and communicated.

Audience Snapshot:Healthy living commitment already madeSocial relationship likely already formed based on interaction in gym settingCan be reached via print, digital, networking events, and social media

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SUGGESTED COMMUNICATION STRATEGIES

As identified earlier, using Bourdieu’s capital analysis, Healthy Solutions has significant capital available to effectively communicate its mission and services to the targeted audience. It is important to note that Bourdieu’s capital analysis does not simply focus on monetary capital to achieve company goals. Instead, the analysis allows identification of available relational and dynamic capital existing within Healthy Solutions, which can be strategically leveraged to successfully grow its customer base.

The recommended strategies that follow will allow Healthy Solutions to leverage existing capital or provide plans to expand its capital in an area of deficiency to communicate effectively with the targeted market. The strategies will be presented using Bourdieu’s identified capital types and will specify ways to communicate with the targeted market.

STRATEGIES FOR DEVELOPING INSTITUTIONAL CAPITAL

Healthy Solutions would develop institutional capital upon the implementation of all proposed policies and procedures listed in the brochure at the start of operation. The brochure would be posted on the company’s social media pages as well as made available via print. The costs associated with implementation of the strategy would be the cost of printing the procedures in brochure format which is estimated to cost $45.

Since Healthy Solutions is not yet in operation, many institutional areas have not been tested. At this point, the owners have only estimated the time needed to obtain consumables, prepare the food, and process service payments. It is recommended a trial run of operations be conducted with a small, select group of current health and fitness clients. This will allow feedback on operational processes and success of the program.

The timeline for this trial run should be a two-month period. The proposed period will allow time for menu plans to be assessed, operational procedures to be tested and modified if needed, and client success monitored. Clients would be asked to pay a discounted rate to cover the costs of food. Therefore, there should be no associated costs for the company.

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STRATEGIES FOR DEVELOPING ECONOMIC CAPITAL

Although Healthy Solutions is deficient in economic capital, the anticipated 37% profit margin should allow the company to accrue savings quickly. The initial customer base is modestly projected to be twenty clients. Therefore, the projected profits would be $600 each week. Two items have been identified as priority to purchase in order to make the company successful.

First, a credit processing system must be purchased and implemented in order to take credit cards for payment. Because payment for the program will be similar to a subscription, Authorize.Net has been identified as a safe, secure, and reasonably priced online payment processor. The costs associated with this vendor are 2.9% plus 30 cents per transaction. In addition, there is a $49 set-up fee plus a monthly gateway fee of $25. Therefore, the estimated costs for the first month of this service is $283. It is recommended Healthy Solutions utilize the initial investment to initiate this service immediately so proper payment can be collected.

Since the number of clients served would initially be limited to the amount of refrigerator space available to store the prepared meals, the second priority must be given to purchase a walk-in cooler. The cost of a walk-in cooler is approximately $5,200. Therefore, the company should accrue the costs of the cooler within three to four months after operations begin. Once the cooler has been obtained, Healthy Solutions can significantly grow the client base.

STRATEGIES FOR DEVELOPING KNOWLEDGE CAPITAL

The thought process for the creation of Healthy Solutions was to apply the owner’s knowledge of healthy eating habits with the ease of ready-made meals to help others succeed in weight loss. The issue now is to prove to potential customers that the owner’s knowledge will enable success. A previously recommended strategy was to conduct a trial run for a two-month period. The trial run can provide the opportunity to prove the program can work and can also be used as a public relations campaign. Before and after pictures and measurements can be taken of the selected clients for the trial run. At the conclusion of the trial run, participants could share their success stories. These stories could be used for marketing of the product.

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STRATEGIES FOR DEVELOPING SOCIAL CAPITAL

The owners of Healthy Solutions have a significant social network which can assist grow the company. Since the owners each provide personal health and fitness coaching, the company will be able to leverage the connections already made with local gyms, fitness contacts, and clients. The positive relationships have allowed the owners to become reputable in the industry and community.

Healthy Solutions can leverage connections with a local gym owner to utilize space within the gym to store prepared meals and make meal deliveries. The costs associated with the use of gym space would be limited to the additional utility costs incurred by the facility, which is estimated to be $25 per month. The implementation of this strategy would occur at the start of the trial run period.

The second recommended strategy would be to utilize the success stories caused by the trial run program to further generate excitement for the program. Pictures of meals, client before and after pictures and measurements, and recorded testimonials could be communicated through social and print media to generate excitement and grow interest. Because the successful client will be tagged in the social media post, Healthy Solutions will be able to reach the client’s social connections as well. The additional connections can potentially grow the customer base of the company.

The costs associated with implementation of this strategy should be minimal. Although there will be no costs with utilizing social media, there will be approximately a $75 cost associated with printing flyers. The implementation timeline for communicating the success stories will be at the completion of the two-month trial run period.

The final recommended strategy would be to have Healthy Solutions leverage social media connections with followers to advertise the new business. Many social media followers already request the services that Healthy Solutions would provide. Therefore, it is anticipated the announcement of the new business would generate excitement in the community. As the company would be utilizing social media to communicate, there are no anticipated costs associated with this strategy. The timeline for implementation for this strategy would be approximately one month before operations begin. Announcements regarding the services, ordering directions, and pictures teasing menu items should be posted weekly.

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STRATEGIES FOR DEVELOPING SYMBOLIC CAPITAL

Since Healthy Solutions is a new company, it will need to earn the image of respectability and competence. The trial run strategy will allow some development of symbolic capital. Success stories and testimonials can be leveraged as the symbolic face of Healthy Solutions. Promoting the success of the program will influence others to join in hopes of obtaining the same results.

Gathering data such as before and after pictures and measurements will take two months; at the start and end of the trial run period. Although there will be no costs with utilizing social media, there will be approximately a $75 cost associated with printing flyers. Materials should not take more than two weeks to be created and distributed amongst connected gym facilities and social media.

INTENDED COMMUNICATION OBJECTIVES FOR TARGETED AUDIENCE

The following lists the intended communication objectives of the recommended strategies on the identified target audiences:

Informo Provide understanding and ease uncertainty of Healthy Solutions

Programso Acquiring a reputable payment processor who will provide a quick, easy,

and secure payment option will assist with accuracy Engage

o Trial run participants are provided incentive to join the programo Weight loss success is celebrated through the feature of client testimonial

Motivateo Success stories and testimonials motive and inspire potential clients to

join the program

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PRIORITIZATION OF STRATEGIES

The plan has identified numerous areas of capital currently possessed or can be developed by Healthy Solutions through various strategies. Although many of the strategies are relatively inexpensive, timelines, refrigeration constraints, and planning must be accounted for in order to implement and analyze each effectively. Therefore, it is recommended Healthy Solutions prioritize the execution of the proposed strategies as follows:

1. Institutional Capital: The proposed institutional capital will be the quickest to implement and allow an opportunity to test policies and procedures, receive and process feedback, and measure program success.

2. Knowledge Capital: The owner’s knowledge of healthy eating habits is key to the organization fulfilling its mission. Demonstrating the program’s success will determine the growth of social, economic, and symbolic capitals.

3. Social Capital: The social strategies presented should be divided and implemented strategically. Utilizing the relationship with the gym owner will establish a retail space for Healthy Solutions at minimal costs. In addition, planning events surrounding the beginning and completion of the trial run period will further develop client relationships and provide documentation of success stories and testimonials which can be used to promote the program. Promoting the programs via social and print media should be delayed until the implementation of the online payment processor economic strategy has been successfully executed.

4. Economic Capital: The projected 37% profit margin on programs should allow Healthy Solutions to quickly execute economic strategies. Out of the proposed economic strategies, the company should prioritize the acquisition of the online payment processor. The purchase will allow easy and secure payments and save the company time collecting fees from the customers. Time will be needed to accrue enough savings to acquire the walk-in cooler needed to store prepared meals. Once purchased, the cooler will allow the acceptance of additional customers.

5. Symbolic Capital: Success stories and testimonials gathered from the trial run period will allow the growth of symbolic capital. The advantage is two-fold. First, the trial run participants will have their success celebrated. Second, their success will generate excitement and inspire others to enroll in the program.

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CONCLUSION

Healthy Solutions was developed to help and inspire others to build permanent healthy habits, help clients lose excess weight, and to maintain their weight loss. Being a new business, Healthy Solutions must leverage available capital to strategically communicate its goals and grow its customer base—particularly current and previous health and fitness clients of owners needing help with dietary needs, busy working class individuals looking to improve eating habits, and individuals looking for fast, convenient meal options.

The identified targeted audiences are easily accessible as social relationships have been formed with most. For the target audience group that has not yet developed a relationship with the owners, social relations can be formed through success stories and testimonials developed during the trial run period. These relationships as well as the acquisitions outlined in the economic capital strategies are vital to grow the company’s customer base.

It is important to note Bourdieu’s capital analysis was applied at the implementation of Healthy Solutions. It is recommended to reanalyze the company’s available capital in six months. As the company’s capital grows, adjustments to institutional and economic priorities will need to be analyzed and executed. In addition, the reexamination will likely uncover new opportunities for growth.

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REFERENCES:

Ihlen, Ø, Fredriksson, M., & Ruler, B. V. (2009). Public Relations and Social Theory: Key Figures and Concepts. New York, NY: Routledge.

McArthur, J. A. (2014). Planning for strategic communications: A workbook for applying social theory to professional practice. J.A. McArthur.

Overweight and Obesity Statistics. (2012, October). Retrieved October 15, 2016, from https://www.niddk.nih.gov/health-information/health-statistics/Pages/overweight-obesity-statistics.aspx

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