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

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!!