In this project we used the concepts we had learned throughout the quarter, and developed a creative (video advertisement) in addition to the paper, which was fun.

1. MKTG-201-001
Heat Seekers Final Paper
Pedram Keyvani (pk524), Michael A Burton (mab574), Benjamin Arinze(boa34@drexel.edu),
David Drew (dsd73@drexel.edu), Tien Nguyen (thn44@drexel.edu)
3/4/2018

2. Heat Seekers 2
Table of Contents
Company Summary ………………………………………………………………………… 3
Industry Summary ………………………………………………………………………….. 3
Mission Statement ………………………………………………………………………….. 4
STP Analysis ……………………………………………………………………………….. 4
Segmentation ……………………………………………………………………….. 4
Targeting …………………………………………………………………………… 5
Positioning .…………………………………………………………....…………… 5
SWOT Analysis ……………………………………………………………………………. 5
Strengths …………………………………………………………………………… 5
Weaknesses ………………………………………………………………………… 6
Opportunities ………………………………………………………………………. 7
Threats ……………………………………………………………………………... 8
Marketing Mix ……………………………………………………………………………... 9
Product …………………………………………………………………………...… 9
Price ………………………………………………………………………………... 9
Place ……………………………………………………………………………….. 10
Promotion ……………………………………….……………………………….... 10
Conclusion ………………………………………………………………………………… 11

3. Heat Seekers 3
Company Summary
What AFL does:
 Aradia Fitness London (AFL) is a fitness studio that provides challenging workouts for
women who value non-traditional exercises.
What type of business AFL is involved in:
 Aradia Fitness London operates in the ever-growing fitness industry. AFL provides pole
programs and TRX suspension training program.
What Value AFL is providing:
 AFL provides a new, non-traditional, approach to exercise that is more sensual and
empowering. The new TRX program is not easily available all over London. While there
are some providers of this service, AFL provides easy access as well as affordability.
Industry Summary
Due to the rising concern of obesity in Canada, the fitness industry is more lucrative than
ever. Health club memberships have soared, and because of this there is no better time to enter
the industry than right now. The fitness industry in Canada is expected to grow at an annual rate
of 2.3 percent over the next five years. More Canadians are attempting to live a healthier life.
There are over ten thousand different fitness clubs in Canada. However, at this point the
market has been dominated by a few key players. The services in this industry include but are not
limited to: boxing clubs, yoga facilities, dance studios and classic gyms. Following this lifestyle,
Canadians also have picked up on fitness activities inside of the house. Smartphone apps, online
website and other electronic devices have made it possible for people to get the best fitness
advice in the comfort of their living rooms.

4. Heat Seekers 4
Mission Statement
Arcadia wants to encourage women to have a more active and healthy lifestyle. It is
important for women to not only feel comfortable in their bodies, but to love them as well!
Arcadia wants its customers to not only look younger, but to feel younger through our new TRX
program. With this new program, our customers are going to experience a whole new level of
physical fitness and results, using nothing but gravity and their own body weight!
STP Analysis
Segmentation:
We believe that it would be in AFL’s favor to use a mix of segmentation strategies. The
first of these strategies would be the demographic segmentation strategy. AFL only targets
women, so that alone is segmentation by demographics. Also, it would be best for AFL to target
middle aged women. Young girls would not have much of an interest in the program, and older
women most likely do not have the physical strength and energy for it.
Secondly, it would also be in the best interest of AFL to use segmentation by
psychographics. In our opinion, it would be effective for AFL to target mothers. This is because
mothers tend to get along very well with other mothers. Not only would it create an open
environment for them to bond and release stress, but it would also help them stay in shape. It is
no mystery that a lot of mothers tend to miss their before birth figures. They would work towards
their figures in an environment of inclusion.

5. Heat Seekers 5
Targeting:
 It would be in AFL’s best interest to use a concentrated marketing approach. We believe
this because AFL has a very limited market of just females in a small age group. Since
they are only targeting one single market they only need to have one marketing approach.
Furthermore, AFL is still small and it is best to target a niche (middle aged women) to get
their name out there and have a shot at competing with the bigger competitors.
 AFL’s primary target for the TRX suspension program would be mothers who are
looking to get in shape or get more physically capable.
 Characteristic wise, they are fitness savvy, family oriented and self conscious
 These potential students value family, physical health and holistic lifestyles.
Positioning:
Arcadia fitness enables mothers to feel young again in a fun, sensual, and nontraditional
way, which makes the consumers look forward to the experience.
SWOT Analysis
Strengths:
1. First Mover Advantage- Aradia Fitness was the first pole-dancing fitness studio in
Canada. Since it is the first entrant, Aradia Fitness was not only able to occupy a large
market segment, but also given time to improve its service. This advantage also helped

6. Heat Seekers 6
the London location because it gave them time to determine the market size which led
them to decide to move to a larger location.
2. Other Offerings- Aradia Fitness London offers private sessions, bachelorette parties, and
dance sessions along with its fitness classes. Members viewed the dance sessions and
other programs as complementary to their pole fitness. They felt as if the dance sessions
focused on lower body strength, compared to the pole dancing which focused on upper
body strength. The owner viewed the bachelorette parties as a separate component to her
business.
Weaknesses:
1. Limited Location and Class Size- AFL has only one location which is in London,
Ontario. This can limit the number of students who choose to attend the class because of
location. Also, the studio can accommodate 10 women in each class at most. Therefore,
the total number of students they can have is relatively small compare. In contrast, their
competitors have more locations which allows for a bigger class size. For example, the
Athletic Club has two locations in London. They also offer the TRX program which is
offered three times a week in one location and twice a week in the other. Also, the clubs
are open 24/7 Monday through Friday. This weakness could be improved by opening
another location as soon as possible. They can also extend the class size by remodeling
the studio.

7. Heat Seekers 7
2. Pricing- The monthly fee for membership in AFL is $159.99 for six weeks. This price is
really high comparing to the monthly membership fee at the Athletic Club, which is only
$60. Customers have more choices at a lower price at the Athletic Club. They can go for
general fitness and for the TRX classes. AFL can improve this weakness. By increasing
the class size, AFL can reduce the fee for each of their students.
Opportunities:
1. TRX Suspension Training- An opportunity for Aradia fitness is the implementation of the
TRX suspension training fitness system for use in their programs. Through implementing
the TRX training system, consumers at Aradia fitness can focus more on improving upper
body, core strength and the flexibility necessary in their primary pole dancing fitness
classes.
2. Product Packaging- Aradia fitness can also start packaging different programs together
that incorporate the TRX suspension fitness system along with their flagship pole dancing
classes. This will allow patrons who feel like they may not have the core/upper body
strength and flexibility to first go through a program that builds these muscle groups in
their bodies along with building their confidence. After they go through the TRX
program they can begin the pole dancing classes. Aradia currently charges $159.99 for a
six week program. Through offering a packaged deal they could potentially charge
$299.99 for a six week program and incorporate the TRX suspension system.

8. Heat Seekers 8
Threats:
1. Competition (Athletic club, Goodlife Fitness)
 Athletic club: two locations, long working hours (only close at 8 on weekends), the
North location: All women twice a week, first come first serve.
 Goodlife Fitness: Largest fitness company (300 locations), six week progressive
training, which is similar to what Ariada wants to do.
 Those brands have better awareness with the TRX program and they have multiple
branches (more to cover per capita).
2. Cost- Setting the cost is important for the company. The focus should be more focused on
the encouragement perspective than from a profitability standpoint.
3. Technology/Trend change- Possibility of new technology (equipment/program) being
developed that would hinder and affect the investment on TRX programs. Also, the
company should be aware of projected trends (training programs) on the rise.
4. Misalignment - Internal employee misalignment with the new plan and how it might
affect the core of the business. In general, this new plan has the possibility to be a
distraction from the core program, which is pole dancing. For this reason, the
implementation should be closely aligned with the pole environment and purpose.

9. Heat Seekers 9
Marketing Mix
Product:
We believe that it is in the best interest of TRX to establish a general program that is
open to all students of all abilities. This is because while a progressive class would be ideal, it
would be either a hit or miss. With a general program, students will feel open to hop in and join
at any time. Whereas in a progressional program, people will feel like it is too late to join once
the program has started. What would most likely happen with a progressional program is that we
would keep the same group of students throughout. Because nobody would join in a
progressional program, the only change to the number of students would be made by students
dropping out of the class. Although there would be much less consistency with a general
program, we are not blocking anybody from entering.
Price:
In terms of costs to install this TRX program, they would add up to $2,016. This is
because each TRX unit would cost $158 initially, and then it would cost $10 per unit to attach
each unit to the ceiling. Due to the fact that AFL is new to the TRX space, we believe that it
would be wise for AFL to use the penetration strategy. Since Goodlife Fitness charges $199 for a
six week program, and Just Sweat Fitness charges $360 for an eight week program, we believe
that a good price for AFL would be $250 for eight weeks. This way, the price is not that much
more than Goodlife, but it is the same range as Just Sweat and costs significantly less than it.

10. Heat Seekers 10
This would be an offer very difficult to pass up on. Also, AFL would break even on the costs
with only 5 people signing up!
Place:
We believe Aradia fitness should deeply consider opening a new branch in Hamilton,
Ontario, Canada. We think this because Hamilton’s population (551,751) is significantly larger
than London’s (388,615) with less competition. Aradia’s only competitor in the TRX market
would be TRX Boot Camp Hamilton. However, this competitor has extremely limited class sizes
(9 people max) and time slots available. Despite these limiting factors they are still extremely
popular according to their social media accounts. The only con would be that they would both be
competing for the same market, family oriented people looking for a supportive non judgmental
workout environment. Finally, Hamilton would also only be under two hours away from London.
Promotion:
We believe that offering several free sample TRX program workshops during current
pole classes and offering two free TRX classes would be the best way to introduce students to
the TRX. Joining these classes, they will be able to truly experience the program. Also, these free
classes could be introduced to more people by the students. They may convince their friends and
family to join these classes since they have already experienced it.

11. Heat Seekers 11
Offering a 10% discount for a group of four people signing up together would also
encourage new students to not just join, but bring more customers with them as well. Also, due
to the price we have set, a 10% discount will not weigh heavily at all on our breakeven point.
Conclusion
In conclusion, AFL has a lot of potential to expand and become more profitable.
Throughout these exercises, we learned how to analyze the market for new and existing products.
Especially with the addition of the TRX Suspension Program. The TRX Program offers an
extremely unique, yet effective workout experience to students of all abilities. Since AFL does
not have the first-mover advantage in London with the TRX Program, their price would be
dependent on its competitors’ previous pricing strategies. However, this unique exercise program
offers great opportunities in not only London, but also in many other locations if AFL plans to
expand. In order to expand AFL needs to successfully promote this new exercise program to
current and potential customers. If AFL follows both of our promotional strategies, they will
reach current customers by offering free workshops and reach potential customers by
encouraging them with group discounts and affordable pricing. Overall, we learned how to
analyze a company, an industry and create an effective mission statement.