Home' Trinidad and Tobago Guardian : June 1st 2014 Contents SBG14 | CASE STUDY
SUNDAY BUSINESS GUARDIAN www.guardian.co.tt JUNE 1 • 2014
Susan Chang had just received
the shipment of exercise bicy-
cles she had been waiting on
and was excited about intro-
ducing spin classes to her fit-
ness studio. Since opening in
2008, Tridium Fitness Studio had offered its
clients a fun and safe environment to develop
their physical fitness.
Susan believed that spin classes would pro-
vide a greater variety of activities for existing
members and allow her to attract new cus-
tomers who wanted something more than a
set of exercise equipment to work out with.
Before she could start the classes, however,
she knew she had some major marketing deci-
sions to make soon.
When Susan opened her studio in 2008,
she made a conscious decision to ensure that
it was very different from the traditional gyms
she was familiar with.
Gone were the racks of heavy weights, intim-
idating pieces of exercise equipment and smelly
lockers. Instead, the studio had soft lighting,
a lounge area, juice bar and feminine paint
and decor to appeal to her core clientele;
women who wanted to improve their fitness
in an environment that was warm and inviting.
In addition to aerobic classes, Susan hired
a pilates instructor and also offered dance-
focused group exercise classes.
Customised individual fitness programmes
that could be tailored for specific conditioning
needs, such as building core strength, were
also available upon request. These personalised
sessions appealed to clients whose schedules
did not match the regularly scheduled class
times or who wanted further instruction.
Tridium currently had approximately 140
customers who regularly visited the studio
each month, with participants ranging in ages
from 14 to 75. Without exception, customers
were women and Susan joked that while she
did not discourage men from attending classes,
the few who had visited the studio appeared
intimidated by the ambiance and women they
encountered and never returned.
Customer fitness levels varied widely, with
some of the women being athletes who com-
peted in track and field events while others
had never been in a gym and were taking the
first step towards getting fit.
A basic membership at Tridium cost $500
monthly although members got a 10 per cent
discount if they signed up for a three-month
package. Customers could also sign up for a
single class at $50 per class if they did not
wish a long-term commitment.
Class sizes were capped at 12 individuals
each, since Susan believed this offered a more
personalised touch and allowed the instructors
to better meet their client needs. She felt that
offering spin classes would be a great way to
diversify the activities available to the studio's
current members, especially those women
who had just started an exercise programme
and were most likely to drop out.
The fitness industry was highly competitive
with many small gyms in existence offering
basic weight training facilities as well as larger
establishments offering a more diverse range
of fitness programmes. Consumers, therefore,
had a lot of choice when it came to choosing
a fitness facility.
One of the larger facilities was located in
close proximity to Tridium and offered co-ed
spin classes four times a week on mornings
and evenings. The classes tended to attract a
large number of participants and were offered
on a first-come, first-served basis. A basic
membership at this club cost between $400
and $500 monthly, depending on the mem-
bership package selected and gave members
unlimited access to all the facilities and pro-
There were also a number of smaller gyms
that had stationary cycling equipment available
for their members to use but typically did not
offer specialized spin classes. The focus of
these gyms was primarily on weight training
and their clientele was predominantly male.
The cost of membership at these gyms varied
widely but was usually $100 less than what
obtained at the larger, more established fitness
The few smaller gyms that did offer spin
classes usually charged a separate fee for each
class in the range of $40-$50 per session.
Historically, Susan had not engaged in tra-
ditional marketing but relied on word-of-
mouth to attract customers. She had also
developed a Facebook page where she some-
times posted deals and notices for members.
The studio had once partnered with a smaller
gym to offer their members an opportunity
to sign up for aerobic classes at a reduced rate
but this arrangement had been discontinued
after some of Tridium's clients complained
that the influx of new people had negatively
affected the atmosphere at the studio.
Susan was currently struggling with how
to price the spin class. She was uncertain
whether to charge a specific price for each
class, create a spin program with a separate
price or incorporate the spin classes into the
programs currently offered by the studio and
charge a slightly higher monthly fee to mem-
bers who took the class. She was mindful of
the prices offered by competitors and wanted
to ensure that whatever pricing scheme she
selected was attractive enough to ensure the
class was filled.
She also was trying to decide whether to
offer a general spin class that was open to
members of all fitness levels or whether to
offer different levels of intensity to cater to
the different fitness levels of participants.
While Tridium did not currently have any
male customers, Susan was seriously consid-
ering targeting this segment as a strategy to
attract new members. A critical concern that
she had was that the introduction of the spin
class did not change the ambiance that cur-
rently existed in the fitness studio.
Her marketing budget was limited and she
wanted to ensure she got the biggest bang for
the buck for whatever money she spent. She
felt the pressure of the decisions in front of
her but knew that she had to select an appro-
priate marketing strategy for the spin class if
she wanted it to be successful.
Conduct a consumer analysis for
the spin class programme.
Who should be the target market
for these classes?
What decisions should Susan make
regarding the class structure, its
pricing and promotion?
Case study: Tridium Fitness Studio
Marketing a new business
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