Marketing Description Section of Business Plan

Market Definition The niche market are 30 – 50 year olds in the twin cities area that are health conscious that have an interest in adopting “green” elements into their lifestyle.

Middle age 30-50 is a time when health is generally very good, with relationships maturing at the younger end, and perhaps re-establishing after children have left home at the older end; in general, there is more control over life than in younger years.

The Twin Cities area of Minneapolis and St. Paul are known for its unique combination of avant-garde shopping areas, ethnic restaurants, busy professional sections and an enviable set of theatrical, musical, and dance institutions. Having an Ecogym could be a plus factor.

There are around 157,500,000 people who live in twin cities between ages 25 – 54.

These individuals can achieve physical fitness while maintaining an environmentally conscious attitude. The fact that they are concerning energy while burning the calories may encourage more people to take their own initiative in promoting a healthier environment. Mr. Williams-Derry said, the human power initiatives “show the kind of ingenuity that we’re capable of, and a comprehensive, smart climate policy would unleash lots of similar efforts.” (Alter, 2008)

Many people are in a time crunch and want to feed healthy, delicious, home cooked meals for their family. It can be really hard to do this on a busy work schedule so we offer an onsite kitchen where people can order a meal for themselves or their entire family.

Our ultimate customers are our immediate customers; however, non members can also order a meal for their families with a 3 dollar additional fee for not being a member and have to pay a rate to use our in house nutritionist. Our kitchen will be located at the front entrance before the front desk

Competitive Matrix The major competitors in the Twin Cities area could be Dakotah Sport and Fitness, LA Fitness and Lifetime Fitness. Although this fitness centers are just considered the usual, ordinary types, they have their own share of the target market. Ecogym, while different, shall consider these establishments as tight competitors since they are located in the Twin Cities area and they offer the same goal which is to become physically fit.

People are becoming health conscious; they try to look for fitness centers that can help them achieve their goals. Ecogym offers similar results; to become physically fit. The only difference is that, this gym promotes energy conservation. The equipments are hooked up to a generator; the movement creates a current that flows to a battery pack. They generate an average of 200 watts. (Baker, 2008). The display of the amount of watts generated may serve as a motivator.

The table below shows the similarities and differences among these competitors.

target market 30-50 year olds No specific age category; family No specific age category; family No specific age category; family
Services offered Work out sessions Weight training,

swimming, racquetball lessons ,aerobics class

racquetball, swimming, indoor cycling, free weights, cardio Weight training,

cardio , yoga, group fitness, yoga, pilates

Equipments and facilities green gym equipments treadmills, ellipticals, exercise bikes, multi-gym equipments treadmills, ellipticals, exercise bikes, multi-gym equipments treadmills, ellipticals, exercise bikes, multi-gym equipments
Membership Types Monthly membership Individual, couple, family, nanny, junior & corporate Monthly membership Lifetime membership
Discounts and privileges 50% off the monthly membership for leading work outs; 2 buddy sessions weekly

$10 off their membership

Discounted membership for people ages 59 over

Complimentary use of Locker Room Lockers

Complimentary Towel Use

Discounted rates to County of Riverside employees and their families. Free Trial Pass good for 7 consecutive days

Guest’s children ages 3 months to 11 years old have access to two hours free childcare in the Child Center.

Target Strategy

In an era of global crisis and tough economic times, our facility helps people stay healthy. We encourage members to form and develop strong support groups of health conscious individuals who will encourage each other to live a healthy lifestyle.

In order to encourage our niche market, we offer an exceptional support system.  We have professional trainers as well as other gym members that sign up to lead group work out sessions.

We will conduct efficient information dissemination such as free lectures/classes on health consciousness and awareness or give handouts that inform people about their health interests. The impact of a healthy lifestyle on insurance premiums and the general well being of an individual are examples of what we would share. We will tie up with suppliers of supplements and health products and conduct a massive campaign through the distribution of catalogues that promotes Eco gym and their respective products as well. We can create an incentive program to employees to volunteer. Our employees that volunteer can wear tee shirts to publicize our business.

We will create an e-mail marketing campaign targeting households within the twin cities area and its suburbs. In doing this, we need all the necessary contact information to run a personalized campaign to every recipient. We will be using the media as our tool through advertisements in the newspaper. These are some ways to get the news out fast and we deliver it in an efficient manner.

The niche market we are targeting needs this information so that they will be more conscious with their health and they will be encouraged to avail of our programs.

Ecogym will offer affordable rates and exceptional discounts. Members that sign up will receive 50% off the monthly membership price for the months that they lead workouts. If a member leads 2 workout sessions a week for 6 consecutive months they can receive free membership for every month that they continue to lead 2 sessions a week for the entire month.

If a member attends 2 buddy sessions weekly they can get $10 off their membership for that month. The buddy system will greatly encourage members to disseminate the information to the people that they know and encourage more members to attend the workout sessions.

Pricing Strategy (NOTE*** depends on target income; to be analyzed with financial analysis section)

Membership: $30 a month

Individual Twin Cities resident Non resident
Annual $ 320 $ 350
6 months $ 150 $ 200
Monthly $ 30 $ 35
Daily $ 5 $ 8

Cost of Capital:

Treadmills: $500 all the way up to over $5,000 covering models to suit every requirement

Ellipticals: $250 – $ 750 depending on the class

Exercise bikes: as low as $39 – $1,000 depending on the style

For more details, log on to:

Marketing Tactics

Free preliminary check up, discounts, and give always

Obtaining the first customers is a crucial stage in starting this business. Ecogym will first need to give hand outs and flyers informing our target customers regarding a free health session and preliminary check-up which will be conducted in a certain area in Twin Cities. This advertisement will also be posted in the newspaper. Conducting a free health awareness session/lecture with a free assessment on their health needs will encourage people to attend this since it is free. We will be bringing along doctors, nutritionists, and other health professionals who can give them a preliminary diagnosis regarding their possible health problems. They will also advise the people who will attend this session about their health needs and the possible burdens that they will encounter if they won’t adopt healthy lifestyles. To encourage new members, a 50% discount will be given to the first 10 registrants who will attend the session and sign up for our monthly work out programs. This could be a little costly so we need to tie up partnerships with companies who can share in the expenses and/or contribute their resources in this endeavor. We can work out an agreement with suppliers of supplements and health products. We will also give out free shirts that bear our name. Employees who will be wearing our company shirt will also receive incentives.

E-mail marketing campaign In today’s technological world, the internet has served as an efficient tool in the busy lifestyles of our people today. The company will establish a website and an online system where potential members can register online or simply check out on our services and facilities.

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