How to Position Your Business for Success in the Fitness Industry

Clear Articulation of the Business Concept

The Concept of positioning is familiar to you now that you have taken the course in competitive strategy. It should not be a surprise to you that when starting a new business, determining how to position it in the market is an important decision.

More specifically, you will use an extensive array of secondary research resources to illustrate how you are carving a particular market space for your business idea. Your approach will depend on your business concept and knowledge and expertise in the area of your business idea. However, in an ideal world, the positioning report should include:

What is the business concept?

What industry or industries matter or are related to your business? How (generally) are they performing? What lifecycle stages are they in? What key industry trends support your idea)? In your position paper you want to show you have a keen sense of how your business idea fits in the larger scope of the industry or industries to which your business relates so you can show your idea is timely and relevant.

What is the market for your product or service? I.e. who will find your business concept compelling and want to buy it? What value will it provide? Where will you find said market (i.e. how to reach them)? You will need to do research to show populations interested in your idea, looking at demographics, relying on census data and area reports to establish a market positioning.

Who are the major and minor players (as appropriate)? You may not need to go through every single competitor if considering a highly competitive, fragmented industry. You will want a sense of who is out there, what their positions are, and what they are trying to accomplish. Ideally, this work is to show how your business is positioned relative to the competitors.

Ultimately, you will use this opportunity to show you have more than just a good idea. In fact, you have a good idea, plus a key sense of how to position your business for success. This part of the report is time consuming and demanding - please provision accordingly.

I would like you to spend the bulk of your time establishing data about the fitness industry to understand what is happening in that industry, who your market might be and how you would make your idea interesting…I will share some initial ideas and thoughts with you I know you would be able to find in research as well….As a note: Do not focus specifically on fitness during CoVid, but do recognize that Covid is and will have an impact on this industry.

?How many people work out? Are you looking in Ontario? Canada? GTA? Outskirts? Find this data

?What are the main reasons people work out?

?Why do people work out at a gym (I imagine that this is social, due to expensive equipment, and for instruction and motivation)…you need to do the research though.

?Trends in the industry – personal training studios and models, specialized studios rather than full gyms (Barre, Cycling, Yoga, running, etc.) – fragmentation of the industry

?Increase in at-home gym stuff – websites for access to gym programs, integrated equipment (Peleton, etc.).

?I think you can establish the fitness industry is pretty fragmented with lots of competition – so I would be very careful in figuring out what your business idea looks like and the market that it will be suited best to..

?i.e. figure out what models are being? Who competitors are? Fitness depot offers a no frills cheaper experience, places like Good Life that offer a mid-range experience, etc. Plus see the types of models above….

?Based on your research, what do you want to do that would make your gym interesting, compelling – i.e. who would come to you and why to you rather than anyone else? Example, you are a weights only gym, or what?

?Once you establish that, establish your market: specialty weight-lifting training, a gym for African women (I believe you have shared that you are African in previous courses with me), people who are beginners, etc. …I don’t know, you need to figure out what would be a space in the market you can occupy

?Keep in mind that while determining a market segment might seem exclusionary or discriminatory, but this is intended to structure a market segment that is aligned with and would be most interested in your product or service, it does not mean these are the only people permitted to use your product or service, or anything that actually involves discriminating against people….as a business owner, you will presumably want to define your idea, customer base to ensure your messages are clear and suited to your target market in appropriate forums in culturally, racially, psychographically, geographically, demographically, etc. suitable ways….