Track workout progress and build gym loyalty with The Catalyst
•Download as PPTX, PDF•
0 likes•601 views
Marketing and Developing New Products project
Recommended
Recommended
More Related Content
Similar to Track workout progress and build gym loyalty with The Catalyst
Similar to Track workout progress and build gym loyalty with The Catalyst (20)
More from tamshtam
Track workout progress and build gym loyalty with The Catalyst
- 1. THE CATALYST ZACHARY BREAKSTONE, EARL DONALDSON, ROSELY ANN MATEO, SHARON TAM & XY ZIEMBA
- 2. THE CHALLENGE People lose motivation and determination at the gym because they cannot accurately gauge or track their work out progress
- 3. THE CHALLENGE • Gyms centers do not have an efficient tracking system • Erroneous and dated record keeping methods • Paper log system
- 4. THE CHALLENGE • Fitness centers have trouble attracting and retaining members • Endless search for new ways to compete with rival gyms
- 5. THE OPPORTUNITY The Catalyst is an innovative solution that works with personal trainers to help motivate gym members and build loyalty • Gym Driven Network • Three Components: LCD touch screen with integrated bar code reader and website
- 7. WEBSITE TrackRoutine, Nutritional Intake and have an online support system
- 11. INDUSTRY OVERVIEW United States Gym and Exercise Equipment Manufacturing Industry • Threat of New Entrants (Low) • Bargaining Power of Consumers (Medium) • Bargaining Power of Suppliers (Low) • Threat of New Substitutes (Low) • Competitors (Low)
- 12. CONSUMER ANALYSIS Segment • Chains (BSC NYSC PSC) • Good East coast network • Aim for exclusivity contract with TSI (iphone and ATT) • (contingent on them agreeing to install catalyst in X amount of their gyms ) Target • B-B low cost marketing • Fulfillment of bulk orders • Sustaining long relationships Position • Premium technologically advanced fitness tool
- 13. CUSTOMER ANALYSIS Survey Key Insights • 77% attend the gym • 53% satisfied with current gym routine • 68% would invest in a quality product to track routines In Depth Interview Key Insights • Product needs to work with the trainers • Lack of motivation is a big challenge
- 14. PERCEPTUAL MAP HIGH PRICE PASSIVE MOTIVATIONAL LOW PRICE
- 15. THE CATALYST “Drives Action” Customization • Logo on machines Distribution • Sell manufactured goods directly to gym, fitness and health clubs
- 16. PRICE
- 17. PLACE Business – to – Business sales strategy • TSI (BSC) Local BSC Branch out to NYSC PSC Using it as a test site, free installation to monitor how well the product does there Boston Sports Club • Focus on customer satisfaction + offering premium personal training services (in their mission statement) • Local Wellesley Gym good for pilot program • Good east coast network
- 18. PROMOTION Product that has “legs” • Highly flexible product Direct B-B marketing • Email and Sales Leads Health conference trade show promotions • International Health Racquets, and Sports Club Association Trade Show • Health and Fitness Business Expo
- 19. PERFORMANCE METRICS How the Product Effects the Gyms • Personal Trainer and Management Feedback (Satisfaction Surveys) • Percentage Change in Member Retention and Attainment • Frequency of equipment use How Well we are Marketing the Product (Marketing effectiveness) • Return on Marketing Investments • Revenue we generate over marketing activity/ marketing budget spend
- 20. Q&A THANK YOU
Editor's Notes
- When people initially join a gym, they have a fitness goal in mind. However, as they continue their gym routine, many people lose motivation and determination at the gym because they cannot accurately gauge or track their workout progress.
- This is partially because many gyms don’t have a efficient or technologically advanced way for users to track their reps, weight and other routine information. In fact, many gyms such as boston sports club use a paper logging system that is organized in a filing cabinet.
- Resultingly, In order to combat lack of motivation, working out knowledge and other crap, gyms offer premium service such as personal trainers. BUT clients still lack motivation and persistence because they don’t like to record their workouts and they can’t visually see their progress which discourages them
- Gym driven network Uses existing gym identification technology (no need for anything extra) Simple LCD touch screen (like a smartphone) attached to machine, mag stripe reader on the side, you swipe your card to log in Screen says your workout (set, reps, weight) and shows a graph of your progress You can tap the screen and change the reps you actually did Sends the information to the cloud VIA Gym WiFi(iphone and ATT) Website shows client information on it
- Threat of New Entrants (Low)The threat of new entrants in this industry is relatively low because the barriers to entry are high. Due to intense completion from larger companies, lack of access to distribution channels and the high capital cost requirements associated with establishing a new company that needs manufacturing and warehousing facilities, the industry is difficult to penetrate the industry. Furthermore, “product knowledge and innovation along with intellectual property rights have also posed as a barrier for new operators” (IBISWorld). Bargaining Power of Consumers Currently the bargaining power of consumers is medium as consumers in the United States have increasing amounts of disposable income and diverse options to choose from to monitor their gym progress. Nevertheless, the technology integrated in The Catalyst is unique and new to the market which means that customers have to rely on our product to obtain these services. The only close substitute to The Catalyst is the TechnoGym. Bargaining Power of Suppliers Suppliers have a low level of bargaining power due largely to the fact that the technology necessary to make products in this industry can be easily replicated. Specifically, Enovation’s The Catalyst use of Quick Response codes (QR codes) can be easily ordered from a variety of suppliers to outfit gym units. Threat of New Substitutes The United States Gym and Exercise Equipment Manufacturing industry competes with various substitutes that continuously threaten overall profitability. Recommendations and referrals on living a healthy lifestyle can be acquired from doctors or health magazines who are considered direct substitutes to Enovation’s The Catalyst. CompetitorsTechno gym is a competitior
- Segmentation:We intend to sell our product to fitness centers and gyms such as the Town Sports International, Bally Total Fitness and Golds Gym. Our primary target will be the Town Sports International (TSI) health Club Company. TSI owns New York Sports Club, Philadelphia Sports Clubs, Boston Sports Clubs and Washington Sports Club, They have over 150 facilities with approximately a half million members and have three locations internationally in Switzerland, Basel and Zurich. They place a strong emphasis on customer satisfaction and focus on offering premium personal trainer programs to help clients reach their fitness goals. Currently, there are 25 Boston Sports Club, 23 in Massachusetts and two in Rhode Island. We will target the TSI Boston Sports Club and gradually branch out to the New York Sports Club, Philadelphia Sports Club and Washington Sports Club. By doing so, we will have a strong base in the east coast area. We all also aim for an exclusivity contract with TSI, similar to what Apple had with AT&T with the iPhone. This contract will be contingent on their agreement to install the catalyst in at least three gyms within their east coast sports club network. Furthermore, it will last for three years, upon which we can offer other gyms such as Bally Total Fitness the same product. Target: By targeting business to business, Enovation incurs low marketing costs and can efficiently fulfill bulk orders as opposed to smaller and numerous ones. Not only that, but building a relationship with chain fitness centers will allow the product to make its way across the nation. For example, TSI has over 150 gyms nationwide and has an international presence in Europe. Targeting small “mom and pop” gyms would not be a good long term strategy as these gyms do not have the regional reach that larger chains such as TSI and Bally have. Position:We are positioning the catalyst as a premium and technologically advanced workout tool that efficiently monitors user routines, motivates and helps build loyalty"About TSI." My Sports Club. TSI. Web. <http://www.mysportsclubs.com/about.htm>.
- The TechnoGym, the Catalyst’s main and only direct competitor, is a line of fitness machinery that allows users the ability to monitor heart rate and workout performance based on a unique scale. However, even though it provides valuable statistical tracking, the machinery is extremely expensive and retails between $600- $5000 per unit. Furthermore, a majority of its promotions and its main market take place in Italy. The Catalyst’s indirect competitors can be fit into two categories: individual user driven tracking devices and web and mobile apps. The FitBit and the Nike Fuel Band are user driven tracking devices that are tailored towards improving general health and promoting activity. Both devices are worn on the user and do not function cohesively with gym use. They are also expensive and cost anywhere between $100- $345 dependent upon features. Livestrong Fitness Tracker and My Fitness Pal are web and mobile apps that allow individuals to create profiles in which they can input their exercises and dietary intake. The Livestrong website is free but requires individuals to pay to access the mobile app. My Fitness Pal integrates with FitBit in order to track movements and records the users’ workout statistics. Both applications require either internet or 3g service to work, the data is not analyzed to optimize workouts and it doesn’t show visual progress other than weight loss. As evidenced by the perceptual map (Exhibit 1) the Catalyst is reasonably priced and provides more motivation which leads towards longer term results.
- The cost to produce the LCD touch screens would cost $150 per unit and we would sell them close to cost at $200 per unit and install the screens for free. We would charge a website software fee of $3 per user a month that would be included in the gym membership fee. As show in our income statement (Exhibit 4), we would see a profit in the second year of $536,000 and continued profitability for the next five years. Each gym approximately has 200 units of cardio and lifting equipment and has on average 7000 members.
- We will sell our product directly to gym and fitness centers. We eliminated the need for wholesalers and we can fulfill bulk orders. We are going to target the Boston Sports Club chain as it is local and can be monitored effectively. More specifically, we are targeting the Wellesley BSC because it would be an ideal test site for the Catalyst as it is a premium location. We plan on meeting with the management of the club, pitching the idea and we are going to install the equipment for free to see how well it does within this club. BSC places an emphasis on customer satisfaction and personal training effectiveness. They would be extremely receptive to testing this technology out. Pending on how well it does, we would seek to sign an exclusivity contact with them
- we can make the data available to third-parties such that it can link in with other health applicationsDue to the fact that Enovation is targeting the gym and fitness centers, we can only employ direct business – to – business marketing tactics. This is different than business – to – consumer marketing that utilizes mass media to send its message. Unlike the general consumer who makes purchasing decisions based largely on sentiment and price, businesses make purchasing decisions based on points like increasing profitability, reducing cost, and maximizing productivity. Inasmuch, Enovation is dedicated to offering marketing programs that underscore quality of The Catalyst through the use of testimonials, financials, statistical data and other marketing materials to increase our brand’s credibility. We will use traditional emails and sale call to communicate our products value to our clients. Furthermore, we will use conventions and exhibitions to speak on the features, functions and benefits of The Catalyst. For example, The International Health Racquets and Sports Club Association Trade in addition to the Health and Fitness Business Expo are prime examples of where we would like to market our product to potential leads.
- In order to measure performance, we will analyze the Catalysts performance in gyms and fitness centers and measure the effectiveness of our marketing programs. Looking at the statistical the data collected at fitness centers, satisfaction surveys from personal trainers and management, and by looking the percentage change in membership retention and acquisition rates after the Catalysts implementation. Measure the effectiveness of our marketing programs will be measured through a comparison of our market share percentage with our closet competitors and by calculating our return on marketing investments. We can also look at our advertising to sales ratio by dividing our total advertising expenses over the sales revenue.