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

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Presentation on theme: "California Fitness for Women Next Level Consulting Nina Coutouvalis Punita Dogra Jill Hakansson John Papanikolaou."— Presentation transcript:

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

2 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

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

5 SWOT Analysis STRENGTHSWEAKNESSES 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 OPPORTUNITIESTHREATS 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 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 1. Training 2. Nutritional Guidelines 3. 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 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 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 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 1. Grocery store 2. Bed, Bath & Beyond 3. J C Penny 4. 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 Alabama14 Iowa21 Nebraska12 Rhode Island3 Arizona42 Kansas18 Nevada15 South Carolina17 Arkansas6 Kentucky12 New Hampshire 8 South Dakota4 California211 Louisiana12 New Jersey36 Tennessee27 Colorado36 Maine4 New Mexico9 Texas131 Connecticut14 Maryland31 New York56 Utah11 Delaware2 Massachusett s 26 North Carolina44 Virginia43 Florida104 Michigan57 North Dakota4 Washington32 Georgia47 Minnesota67 Ohio57 West Virginia5 Idaho6 Mississippi4 Oklahoma10 Wisconsin32 Illinois80 Missouri31 Oregon18 Wyoming2 Indiana32 Montana7 Pennsylvania42 Store Locations

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 1. West Covina 2. Burbank 3. Northridge 4. Torrance 5. Fullerton south 6. Anaheim 7. Victorville 8. Riverside 9. Valencia 10. Manhattan Beach

19 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

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

21 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.

22 FORECASTING 0.76%$29,247$3,840,000$ $3,810,75380$47, %$11,385$2,092,500$ $2,081,11545$46, %$4,000$1,800,000$ $1,796,00040$44, 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 ( 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 Increase profitability 5 Target segments Tier 2 Horizontal Integration One stop shop for busy women


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