california fitness for women next level consulting nina coutouvalis punita dogra jill hakansson john...
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California Fitness for Women
Next Level ConsultingNina Coutouvalis
Punita DograJill Hakansson
John Papanikolaou
•Acquired 7 Months ago•Located in Apple Valley, CA•Edrea & Parker Adams
• Low number of members• Need for Marketing Efforts•Need of Long-term strategy
Overview
Project Objective SWOT Analysis Market Segments Two Strategies
Tier 1 Tier 2
Reaching the Objectives
Project Objective
Increase Members Marketing Efforts Defined Strategy Long-term Business Plan
SWOT Analysis
STRENGTHS WEAKNESSES Intimate customer relationship Operating on a loss
Top of the line equipment In progress website
80% retention rate “Hidden” Massage Room
Location in town center No showers or daycare facility
OPPORTUNITIES THREATS Demand for Differentiation Existing Competition
Nearby College Campuses New Fitness Center
Growing demand for Yoga Unregistered logo
Vacant facilities available Technological Advancement
Strategic Directions
Tier 1 Short term Strategy Easy to Carry out Low Impact
Tier 2 Long term Strategy High Risk High Impact
Objectives
Tier I Increase membership by 20% within a period of
one year.By focusing on three different services
1.Training2.Nutritional Guidelines3.Seminars
7 Potential Market Segments
Working Women Mothers Senior Citizens Teenagers House Wives College Girls Overweight Women
Practical RecommendationsTier 1
Product/Service Circuit training using
PACE machines Yoga classes, Pilates
and Aerobic Healthy snacks, Fruits
and Sports drinks Day care
Place Clean Environment
Towels should be provided
The gym would benefit from a shower facility
Use of air conditioner during operating hours
Promotion
Advertising Large sign Monthly ads
Personal selling Train sales staff Unique Customer
Relationship First name basis
Sales promotion Free work out boxes Seminars &
Tradeshows Flyers
Publicity Local radio station
Interactive media Website
Maintenance
Price The prices should be
continued to be set at flexible rates.
Special rates Promotional offers
Processes Longer opening hours Focus should remain on
the 30 minute work out
People Train in customer service
Strategic Directions
Tier 2 Long Term Strategy Great Potential (unsaturated industry) Greater Resources, Higher Risk
Evaluation of alternatives Create a one stop service combining fitness and
other services
Qualitative Research
A. Horizontal Integration of Retail Services1. Grocery store
2. Bed, Bath & Beyond
3. J C Penny
4. Target
Result:
TARGET
Average Target Customer
87% of shoppers are female Median age of 41 Median household income of approximately
$58K Approximately 43% have children at home About 43% have completed college Target is conveniently located in metropolitan
areas
Alabama 14
Iowa 21
Nebraska 12
Rhode Island 3
Arizona 42
Kansas 18
Nevada 15
South
Carolina17
Arkansas 6
Kentucky 12
New Hampshire
8
South Dakota 4
California 211
Louisiana 12
New Jersey 36
Tennessee 27
Colorado 36
Maine 4
New Mexico 9
Texas 131
Connecticut 14
Maryland 31
New York 56
Utah 11
Delaware 2
Massachusett
s26
North Carolina 44
Virginia 43
Florida 104
Michigan 57
North Dakota 4
Washington 32
Georgia 47
Minnesota 67
Ohio 57
West Virginia 5
Idaho 6
Mississippi 4
Oklahoma 10
Wisconsin 32
Illinois 80
Missouri 31
Oregon 18
Wyoming 2
Indiana 32
Montana 7
Pennsylvania 42
Store Locations
Objectives
Tier II Horizontal Integration with California TARGET
Department Stores. Increase number of members from 105 to 5000,
within three years 10 locations as a test market 40 Target stores in California within the first year
Place
10 test locations 1. West Covina2. Burbank3. Northridge4. Torrance5. Fullerton south6. Anaheim7. Victorville 8. Riverside9. Valencia10. Manhattan Beach
Promotion
Advertising: TV commercials Print media Sponsorships
Personal Selling: Complimentary tour Trained staff College booths
Sales promotion: 2 weeks free boxes” Coupons Banners & Streamers
Interactive media: Press release Interactive website Testimonials
PriceList Price: $30 for a month for
membership $10 an hour for
babysitting services
Discounts: $25 for Seniors
$25 for Students
People Pace Certified trainers Front desk staff should
be trained to do general office tasks and properly welcome customers
Process Monitor and evaluate the
status and safety of the machines.
Follow the seven articles of operating a daycare discussed in the legal considerations sections.
Card swiping systems upon entrance.
FORECASTING
0.76%$29,247$3,840,000$32012000$3,810,75380$47,6342010
0.54%$11,385$2,092,500$3106750$2,081,11545$46,2472009
0.22%$4,000$1,800,000$3006000$1,796,00040$44,9002008
PROFIT MARGINNet IncomeRevenue
ANNUAL MEMBERSHIP
FEE# OF MEMBERSANNUAL COST# OF GYMSCOST PER GYMYEAR
ROI 3 YEAR FORECAST FOR CALIFORNIA FITNESS FOR WOMEN INSIDE TARGET
Estimated Annual Cost for gym franchise as of 4/17/07: $39,900 (www.buycurves.com)
Rent: $2,200
Utilities: $1,200
Staff: $1,600
3 % increased cost accrued
Cost per gym is all included (rent, electricity, staff, security etc)# Of members per location: 20, $30 per member
Conclusion
Tier 1 Increase profitability 5 Target segments
Tier 2 Horizontal Integration One stop shop for busy women
THANK YOU!!
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