Venture Concept No. 2 - 29A

1) Opportunity:  

The opportunity is found in the young Millenial who does not have the motivation or knowledge to workout in a gym setting. They want to get in shape and become healthier but struggle with knowing how to properly use the equipment found at most gyms.

What are the forces or changes in the environment, creating this opportunity? 

Health has always been something people strive to improve on. We are all aware of the importance of getting enough exercise in our daily routine can be to our overall mental and physical health. Still, unfortunately, more young Millenials are too busy watching Netflix than getting some movement in. Also, since they lack the knowledge of how to exercise since it's not taught in school, they feel lost and therefore don't have the motivation to workout.

How is this market defined geographically and demographically? 

Geographically, the gym would be first opened up in the Central Florida market with hopes of possible expansion in other cities around Florida and perhaps a nationwide franchise. Demographically, the gym would not have any confinements, but it will be targeted to young Millenials ages between 20-37 because the need is more significant in that age range.

How are customers currently satisfying this need?  And how loyal are they to whatever they use now?  

There are many gyms currently on the market, but most people are paying monthly dues without actually going. In essence, wasting their money. This is how most gyms make their profit because they continue to sell memberships without worrying about overcapacity.

How big is this opportunity?

The opportunity is definitely present to bring a new and innovative gym in the central Florida market.

How long will the “window of opportunity” be open?

As long as another gym with the same or similar concept doesn't open up, then the opportunity will be there.


Innovation:

A gym that will have video instructions in each station that will guide and teach you on how to properly use the equipment as well as the number of reps for your desired goal. By having this system it will help members reach their results faster and reduce the potential of getting hurt by misusing the equipment. A fun reward system will incentivize you to check in a workout. Goals will be set up with a gym trainer at the beginning of the month, and you'll be entered into our monthly drawings if you achieve 100% of your goal. I believe monthly prizes and rewards would be a great incentive to motivate members to go to the gym. Prizes could include certificates to local businesses such as restaurants, spas, entertainment, etc. The monthly dues will be $49.99/month with no annual or initiation fee. There will also be a smoothie station to provide protein drinks to the members after their workout. This will provide another added benefit to the member and profit for the gym. 

Venture Concept:

The gym concept that I'm proposing is unlike a gym I've seen or worked out before. There will be instructional videos in each section of the gym and a reward system that will give each member to win prizes based on their goals achieved. 

What are the reasons to think customers would switch to this new product?  How hard will it be to get them to switch?  

The new gym will get people motivated to exercise and excited to go to the gym because they won't feel lost any more thanks to the instructional videos in each section of the gym. If marketed correctly, this will be a fun and innovative concept that will have people curious and want to try out the gym. And hopefully, be long term members. There will also be a one-week free trial to allow future customers to test out the gym concept and all the benefits the gym has to offer before they commit. 

Who are the competitors?  What are their possible weaknesses or vulnerabilities?  

Competitors are the gyms present in the current market. Their weaknesses are their lack of innovation. The same gym structure is present in most gyms. Orange Theory, for example, is innovative but involves a class setting and scheduled times. This hurts them because of their limited class size and set times. Also, their prices are costly. My gym will have a fixed price and only one type of membership, month to month, for members over 18yrs old for $49.99/month.

What role does packaging, your price points, distribution, customer support, the customer experience, or the business location play (if any) in defining your business concept? 

There is not packing involved since the gym is more of a service-based business than a physical product. Customer service in terms of employees will be a significant factor because members will want to feel like they belong to a family and will want encouragement from our employees. Having the gym open up in Central Florida will be a massive advantage because it's a growing city with the potential to attract many new clients. The main promotion will be through Instagram with the use of bloggers and influencers that have a high reach in the area. Will will provide them with a free month membership as well as other perks for them to promote on their platforms. 

How would you organize a “business” to support the ongoing production of your new product, service, or process? How many employees? What roles are in the venture?  

I would need a day time manager as well as a night time one to help run the operations and customer side to the gym. I will need two personal trainers who will be walking the gym floor, assisting members that may be confused with the videos provided, and to make sure they are safe. I will hire a social media manager that will handle all of the social media promotion and influencer marketing.  For additional income, there will be products such as power bars and energy drinks inside the gym for purchase, as well as a smoothie bar. 


Three Minor Elements:

Our secret sauce is that there isn't a gym concept like mine out there currently on the market. People now more than ever are interested in fitness and health than ever before because of the available information regarding the topic. The rise of fitness bloggers has also increased the need to look healthy for young people. The demand and need are there, and our gym will help people by actually caring about them as individuals and not another due monthly profit.

If the Central Florida location goes well, then we will look into expanding to other cities around the state and hopefully franchise and grow throughout the nation.

I want to remain the owner of the gym and grow this venture nationwide. The more people we can help, the better. In 10 years, I'd like to sell franchises of the gym and live off those profits.


2) I received all positive comments but little to no constructive feedback. Rebecca said that she is guilty of also paying for a gym membership but not actually going and that the instructional videos would motivate her to go. This reassures me that there is a demand for my gym concept. Yudi also mentioned that he would benefit from going to his type of gym. Aishwarya liked the reward system and overall business idea.  

The feedback received from the What's Next assignment provided much better suggestions that I applied to my updated venture concept. Joanna suggested using bloggers for Instagram promotions, which I believe it's a great idea. Morgan brought up implementing a one-week free trial so people can try out the gym without signing up. I had never thought about this, so I'm glad she suggested it because I think it'll be useful. Kyle suggested I add a smoothie bar because most people like to drink a protein shake after their workouts. Another great idea from the feedback I received. 


3) I evaluated all the feedback received and implemented all the suggestions provided. I will use bloggers and influencers from the area to help promote the grand opening of the gym as well as future promotions. The collaboration will include many perks and discounts to the smoothie bar and free membership for a month. The smoothie bar was another suggestion that I thought was a great way for additional income as well as an added benefit for our members. I will also give out free one week passes to our community and businesses close by for them to try out the gym before signing up for the month to month membership. That way, they can try out and share with their family and friends, and hopefully, provide positive feedback and referrals. These great suggestions will help improve the gym concept before it launches to provide the best service to the future membres and high profit for me.