Business plan of 12rnd gym PDF

Running head: BUSINESS PLAN OF M45 GYM
Business Plan of M45 Gym
Name of the University:
Name of the Student:
Authors Note:

1BUSINESS PLAN OF 12RND GYM
Executive Summary
The report is prepared to develop a business plan for a new gym to be opened in Brazil and the
name is M45 Gym. The entire business plan was aimed at developing a fitness centre or gym that
could be beneficial for people to try out various activities that should improve their health and
wellbeing and keep them fit as well. The company’s mission statement is to improve the quality
of lives of people within the community by providing services through management of fitness
philosophies, programs, facilities along with delivery of products and services to ensure value
creation regarding health and fitness. The vision of the company is to enable value creation in
terms of health and fitness of people by providing good quality fitness services to the clients. The
products and services that would be offered by M45 Gym include some gym equipment like
SOLE F63 Treadmills, SOLE E25 Elliptical and services like Cardio theatre, Zumba dance
services, Nutritionalist services and health supplements. The company targeted the clients in
different market segments, basically those who are health conscious and aged between 18 to 40
years. The targeted clients belonged from the Piracicaba region in Brazil while the clients from
the age group of 24 to 35 years were more targeted because of their enthusiasm in remaining fit
and healthy. The positioning in the market was possible because of its operating nature as a
franchise system focused on body building and physical exercises. To enhance its sales, the
company has offered great discounts on 1 year membership packages and even provided better
warranties while installing the products. The unique patents and products delivered at reasonable
prices without compromising on the quality have further helped in value creation to keep clients
satisfied. The financial projection were assessed before introducing the company to ensure that
no loss should be faced and proper plans must be set for achieving the desired objectives. The

2BUSINESS PLAN OF 12RND GYM
business aimed to extend its business outside Brazil, which has been the major plan and goal for
the future.

3BUSINESS PLAN OF 12RND GYM
Table of Contents
Part B Products and services................................................................................................4
Part C Market analysis.........................................................................................................5
Part D: Marketing Plan........................................................................................................7
Part E: Operations................................................................................................................8
Part F: Financial Plan.........................................................................................................11
Part G: Control and Evaluation............................................................................................0

4BUSINESS PLAN OF 12RND GYM
Part B Products and services
The gym consists of great features such as a great layout, i.e., enough space available
within the gym along with abundant fitness equipment available within a well maintained and
clean gym environment. The M45 Gym has other features that are managed well by the people
who are assigned with the roles of reflecting the goals and they also must be helpful. They must
understand the company’s vision and mission statement and understand what it means to become
a healthy and fit person. Due to enough space within the gym, the main workout area consists of
free weights while there are also cardio area, management of group exercise classes along with
sports facilities and availability of personal trainers who customize the health and fitness routine.
The benefits could include availability of services and membership packages ranging
from 1 month to more than a year at reasonable prices. The gym also must include the modern
amenities and equipment required to make sure that the health and fitness of people are intact.
The gym holds health shop selling equipment, snack bars child care facilities and also member
lunges.
The cost of membership packages is very low, i.e., $50 for a month, which is quite lower
than the other health and fitness clubs that offer amenities to over $100 per month. The costs of
SOLE F63 Treadmills and other products start from a mere $800, which is cost effective for
influencing consumer buying behaviors.
The substitute products of the gym’s offerings are PowerMax Fitness Treadmills,
DOMYOS, etc. The substitutes are offered by the competitors including Fitness Gyms Way,
BodyTech, Hemmers Gym Brazil, etc.

5BUSINESS PLAN OF 12RND GYM
Part C Market analysis
Description of market
The market segments to be targeted include mostly the individuals aged between 24 to 35
years while there are other people as well aged between 18 to 40 years within the Piracicaba
region of Brazil who are health conscious. The consumers are mainly targeted from the market
based on their personal income and those who are more enthusiastic about exercising and
engaged with the fitness activities. Less than 20 percent clients would be over 35 years because
of their lack of interest and motivation in trying physical exercises at gym.
Key characteristics of the industry
The fitness industry in Brazil has grown at a CAGR of 13 percent and the revenue
generated annually by the fitness and health clubs in Brazil accounts for more than 2.1 billion US
dollars. The increase in revenue is based on the rising cases of obesity in Brazil, which
sometimes has slowed down the economic growth of the country. The fitness equipment at M45
Gym should be based on the domestic fitness and health equipment, which could result in
creating a good brand presence in the marketplace and enhance the market share too.
Major trends
The major trends of the industry are to remain fit and healthy, reduce cases of obesity and
overweight while the organizational trend is to expand its business through extension of service
range and targeting different market segments. The recent trends for the new business would be
to implement the cost leadership strategy and ensure promotional and advertisements with the
involvement of social media platforms too.