Home' Trinidad and Tobago Guardian : June 8th 2014 Contents JUNE 8 • 2014 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
CASE STUDTY | SBG17
The following guide is intended
to aid readers in analysing the
case Tridium Fitness Studio.
When analysing a case,
remember that there are
many possible approaches
and solutions and the goal is to develop your
analytical and problem-solving skills rather
than figure out "the one right answer."
Susan Chang is considering adding spin
classes to the activities currently offered in
her fitness studio. She believes that this will
appeal to existing clients and allow her to
attract new customers to the studio.
Competition in the fitness industry is
intense and Susan is struggling with how best
to price and promote her spin classes to ensure
it attracts sufficient participants and is suc-
cessful. She first has to decide however, which
segment of the market to target for these
Q1. Conduct a consumer analysis for the
spin class programme. Who should be the
target market for these classes?
The studio s existing members are clearly
attracted by its warm intimate atmosphere,
which encourages a sense of community,
unlike what obtains at conventional gyms.
The ambiance within the studio is a key deter-
minant of the client s choice of training facility
and one they are very vocal about protecting.
Tridium s clients are primarily interested
in alternative forms of training to achieve
their fitness goals and are willing to pay a
premium for this. One can infer from the
prices charged, that clients have moderate to
high levels of disposable income and are less
likely to be price sensitive.
One option is offering spin classes to male
clients. While pursing this strategy would
expand the client base, the studio currently
caters exclusively to women and including
male members could potentially make some
current clients uncomfortable. Trying to attract
male clients could therefore disrupt the fun,
safe environment that Susan had created in
the studio. For this reason it may not be pru-
dent to target this segment.
Susan also has to decide whether to target
existing clients and encourage them to attend
the spin classes or try to attract new members
to the studio. Attracting new members will
require extensive promotions which may not
be feasible given the limited marketing budget
that Susan is working with. Attempts to widen
the client base by partnering with other gyms
has also historically not been successful and
led to customer complaints. Based on these
factors, targeting existing members would
EXPRESSION OF INTEREST
not only be more economical but would create an
added incentive for clients not to leave the studio.
Q2. What decisions should Susan make regarding the
class structure, its pricing and promotion?
Susan s practice of keeping class sizes small should
be maintained since it fosters the sense of intimacy
and community that is a key feature of the studio.
Many of the studio s customers are likely to be working
so offering classes in the evenings and on weekends
would be necessary to accommodate work schedules.
Offering a general class will make the programme
more accessible to a wider cross-section of members
and simplify the scheduling of the classes upon launch.
Putting on a variety of class levels will make sched-
uling more complicated and require additional resources
since instructors with different skill levels may have
to be hired to facilitate beginner and advanced classes.
The advantage of multiple levels however, is that clients
with different fitness levels can select a class that more
closely meets their fitness goals and competencies.
Participating in a general class on the other hand
may provide motivation to new members and build
the sense of community that is a part of the studio s
culture. Offering a general class that is open to members
of all fitness levels seems to be a more viable strategy
in the short run since it may make it easier to fill classes
and ensure its success. Susan may consider offering
multiple levels later on once enough persons are enrolled
in the classes to justify such a move.
Tridium Fitness Studio is positioned at the high end
of the market which supports a higher price point than
standard gym fees. Given the competitive nature of
the industry, however, it may be difficult to justify sig-
nificant increases in the monthly membership fees for
those members who only want to take the occasional
spin class. Susan also has to charge a high enough price
that allows her to recoup the cost of the equipment
that she has just purchased as well as pay salaries to
the instructors who will be needed to teach the class.
The goal is to ensure that the class attracts sufficient
participants to make it economically viable, which sug-
gests that creating a standalone program may not be
a feasible option immediately after launch. Susan may
thus want to consider charging a fixed price for each
session and offering discounts to current members
who sign up for a larger number of classes.
One-off drop in classes will thus be more expensive
than signing up for multiple sessions which would
encourage members to make a long term commitment
to the classes. On the basis of competitive analysis,
cost implications and Tridium s customer profile, a
price range between $30 to $40 per session would
ensure the classes are competitively priced and afford-
able, thereby limiting the financial risk of an unsuccessful
Susan does not have a very large promotional budget
which means that many of the traditional advertising
methods are not possible. Given the target audience
for the classes is existing members, the focus needs
to be on in-studio promotions. These may include
offering free or discounted spin classes to members or
encouraging them to bring a friend to one of these
Posters can also be strategically placed in the studio
to promote the classes and a social media campaign
can be employed to reach out to existing members.
Providing existing members with information brochures
about the spin class which they can pass on to friends
or family could also help increase interest in the pro-
gramme at little cost to the studio.
Case preparation guide: Tridium Fitness Studio
Success may be in target marketing
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