Comprehensive Business Plan for M45 Gym: A Brazilian Fitness Center

The business plan outlines the strategy for M45 Gym, a new fitness center in Piracicaba, Brazil. It details the company's mission to improve community health through fitness programs and services. The plan covers the products and services offered, including gym equipment, cardio theatre, and nutritional services, targeting health-conscious individuals aged 18-40. Market analysis includes industry trends, competitor analysis, and a SWOT analysis. The marketing plan focuses on target markets, pricing, promotion, and distribution. Operational aspects cover resource requirements, human resources, and production processes. The financial plan includes startup expenses, capital equipment, and projected costs. The business aims to expand beyond Brazil in the future. The plan emphasizes value creation through quality services, reasonable prices, and a franchise system.

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

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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

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business aimed to extend its business outside Brazil, which has been the major plan and goal for
the future.

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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

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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.

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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.

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Competitors’ analysis
The competitors’ analysis evaluates strengths and weaknesses of the competitors within
the industry. Fitness Gyms Way has a great brand name and image, though the weakness is lack
of quality of products.Hemmers Gym Brazil provides great quality products and services,
through the promotional and distribution strategies are not effective much to influence
consumers
SWOT analysis
Strengths
 Positive brand image achieved with
its introduction due to great layout,
design and great quality services
 Availability of wide range of
products and services at reasonable
prices
 Spreading in adjoining areas of
Brazil
 Celebrity endorsements
Weaknesses
 Poor financial management
 Excessive competition within the
health and fitness industry
 Lack of promotional approaches to
spread awareness among consumers
Opportunities
 Targeting the right market segments
comprising of people aged between
18 to 40 years, 25 to 40 and also
Threats
 Threats of competitors
 Substitute products and services

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over 35 years
 Value added services and wide range
of products available at reasonable
price range
 Growing cases of obesity and other
health concerns
 Poor brand awareness
 Economic slowdown
Part D: Marketing Plan
The marketing plan set for M45 Gym will cover deciding target market, pricing,
promotional strategies and distribution methods or location of business of the new gym business.
 Target Market- The target market for this business will include both male and female,
particularly from 18 years to 40 years old those reside withinPiracicaba (SP)area of
Brazil. The target consumers will believe in the idea of fitness and might find it difficult
tomotivatethem for getting involved in fitness activities. The consumers will also be
targeted based on their personal income around $ 40000 annually. 50% of the consumers
will be among the age group of 24-35 years as they is the consumer’s interested n staying
fit and active. They are the major target consumers those have enough time and energy to
become an active member of this gym. In addition, 20% of the consumers will be more

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than 35 years of aged as this target consumer base is of old generation and has less
motivation to work out.
 Pricing Strategy- M45 Gym will develop its pricing strategy to be premium pricing for
all its services in promoting that services offered by the gym are of high quality and
ensures exceptional fitness guarantee for all its target consumers. Moreover, this pricing
strategy will be justified for the reason that the target market of the new gym business
will be high class people those are willing to spend extra money for its fitness brand.
 Promotional Strategy- The gym business will be promoted through celebrity
endorsements by using famous personalities such as Arnold Schwarzenegger and Tiger
Woods. Moreover, the brand positioning statement for the company will be “getting in
shape together” and the logo will also be developed that will communicate its social
aspects in a clear manner.
 Distribution Methods or Business Location- The new gym business will start its
operations in Piracicaba (SP) area within Brazil. M45 Gym will operate is business as a
franchise system that will position itself as one of the largest gym chain for physique and
bodybuilding and will gradually spread its presence in other branches in Brazil. The
company will operate its business in through its location selected in Brazil. This
distribution method or location for its gym services are selected for the reason that the
place chosen has an increased target consumer populace.
Part E: Operations
To ensure smooth running of business, the new gym business will include certain
important operational aspects indicated below:

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 Physical resource requirements:The necessary physical resources that will be included
within the new gym business will be gymequipments, furniture, fitness classes amenities,
steam roomsalong with athletic and country clubs.
 Human resource requirements:The HRM requirements of the new gym business will
include the managing director, center head, marketing head, accountant, common trainer
and personal trainer. The marketing head will be responsible for making sure manage the
overall organization along with managing the trainers and overall staff base of the
company. The overall human resource structure will facilitate the business to build the
reputation of the new gym in order to position itself as the most renowned business in the
locality.
 Consultation plans:The consultation plans for this new gym business will include
consumer membership through which its target consumers can attain fitness consultation
regarding session with trainer, fitness plan for thirty days and offering personalized
recommendations to all the consumers of the gym. The consultation plan will also
 Production processes:The productionprocess in the new gym business will include
operating the gym through rearranging the floor plan along with arranging all the
gymequipments and spaces as per the comfort of the consumers. In addition, a fraction of
the company'sprofit will be set aside to make necessary purchases and fixing the
machines whenever they break. Moreover, the production prices in the gm will also
include selling gym memberships and watching over the safety of all the associated
members.
 Stock and inventory needs:The stock and the inventory needs for this new gym business
along with the allocated budget for purchasing such inventory are indicated under:

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2 Marcy Combo Smith Machines
10 SOLE F63 Treadmills
5 SOLE E25 Elliptical
1 Body Solid Decline bench
2 Body Solid bumper sets
2 Adidas Olympic benches
1 Body Solid EXM4000S Home gym
1 Body Solid Pro Club line Dual Cable
1 Leverage horizontal leg press
1 Body Solid Leverage Shoulder Press
1 Body Solid Pro Club line Leg Curl
2 Fitness Gear Olympic Weight Sets
5 Stability Balls
5 Yoga Mats
Stairmaster Free Climber 4600cl W/ Blue Face
Miscellaneous equipment or accessories

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Figure 1: Organization Structure of the Gym
(Source: )
Part F: Financial Plan
Startup Expenses
Startup Expenses
Buildings / Real Estate
Purchase
$
40,000
Construction 10,000