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California Fitness for Women

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Presentation on theme: "California Fitness for Women"— Presentation transcript:

1 California Fitness for Women
Next Level Consulting Nina Coutouvalis Punita Dogra Jill Hakansson John Papanikolaou

2 Need for Marketing Efforts Need of Long-term strategy
Low number of members Need for Marketing Efforts Need of Long-term strategy Acquired 7 Months ago Located in Apple Valley, CA Edrea & Parker Adams

3 Overview Project Objective SWOT Analysis Market Segments
Two Strategies Tier 1 Tier 2 Reaching the Objectives

4 Project Objective Increase Members Marketing Efforts Defined Strategy
Long-term Business Plan

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

6 Strategic Directions Tier 1 Tier 2 Short term Strategy
Easy to Carry out Low Impact Tier 2 Long term Strategy High Risk High Impact

7 Objectives Tier I Increase membership by 20% within a period of one year. By focusing on three different services Training Nutritional Guidelines Seminars

8 7 Potential Market Segments
Working Women Mothers Senior Citizens Teenagers House Wives College Girls Overweight Women

9 Practical Recommendations Tier 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

10 Promotion Advertising Sales promotion Publicity Interactive media
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

11 Price Processes People
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

12 Strategic Directions Tier 2 Evaluation of alternatives
Long Term Strategy Great Potential (unsaturated industry) Greater Resources, Higher Risk Evaluation of alternatives Create a one stop service combining fitness and other services

13 Qualitative Research A. Horizontal Integration of Retail Services
Grocery store Bed, Bath & Beyond J C Penny Target

14 Result: TARGET

15 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

16 Store Locations Alabama 14 Iowa 21 Nebraska 12 Rhode Island 3 Arizona
42 Kansas 18 Nevada 15 South Carolina 17 Arkansas 6 Kentucky New Hampshire 8 South Dakota 4 California 211 Louisiana New Jersey 36 Tennessee 27 Colorado Maine New Mexico 9 Texas 131 Connecticut Maryland 31 New York 56 Utah 11 Delaware 2 Massachusetts 26 North Carolina 44 Virginia 43 Florida 104 Michigan 57 North Dakota Washington 32 Georgia 47 Minnesota 67 Ohio West Virginia 5 Idaho Mississippi Oklahoma 10 Wisconsin Illinois 80 Missouri Oregon Wyoming Indiana Montana 7 Pennsylvania

17 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

18 Place 10 test locations West Covina Burbank Northridge Torrance
Fullerton south Anaheim Victorville Riverside Valencia Manhattan Beach

19 Promotion Advertising: Personal Selling: Sales promotion:
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

20 Price List Price: Discounts: $30 for a month for membership
$10 an hour for babysitting services Discounts: $25 for Seniors $25 for Students

21 People Process 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.

22 FORECASTING 0.76% $29,247 $3,840,000 $320 12000 $3,810,753 80 $47,634 2010 0.54% $11,385 $2,092,500 $310 6750 $2,081,115 45 $46,247 2009 0.22% $4,000 $1,800,000 $300 6000 $1,796,000 40 $44,900 2008 PROFIT MARGIN Net Income Revenue ANNUAL MEMBERSHIP FEE # OF MEMBERS ANNUAL COST # OF GYMS COST PER GYM YEAR ROI 3 YEAR FORECAST FOR CALIFORNIA FITNESS FOR WOMEN INSIDE TARGET Estimated Annual Cost for gym franchise as of 4/17/07: $39,900 ( 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

23 Conclusion Tier 1 Tier 2 Increase profitability 5 Target segments
Horizontal Integration One stop shop for busy women


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