Introduction to Business: FitnessPlus Business Plan and Analysis

This report presents a detailed business plan for FitnessPlus, a proposed fitness and healthcare company. It begins with an introduction highlighting the growth of the fitness industry and the increasing importance of physical fitness. The report outlines FitnessPlus's mission, 4Ps of marketing (product, place, price, promotion), target audience (primarily women aged 20-40), and competitive analysis, focusing on rivals like PureGym and Anytime Fitness. The organizational structure is described, along with a PESTLE analysis (economic, sociocultural, technological, environmental) and a Porter's Five Forces analysis, assessing the threat of new entrants, bargaining power of buyers and suppliers, and the threat of substitutes. The report concludes by emphasizing the importance of customer service and strategic acquisitions for FitnessPlus's success, supported by references to relevant academic sources.

BA30591E - INTRODUCTION TO BUSINESS
FitnessPlus
[Student ID]

Introduction
It's no surprise that the gym and fitness centre sector is developing at an unprecedented pace
since it protects societal concerns and aids in cultural refinement and better treatment of human
resources by producing more jobs and boosting the GDP of the United States. As individuals
become more conscious of the importance of physical fitness and self-improvement, the demand
for these services is growing. Exercise facilities like gyms may significantly reduce stress and
blood pressure levels in persons who are currently afflicted with ailments like high blood
pressure and obesity in the United States (Ali & Kamraju, 2017).
Increase in unchanging illnesses including hypertension, high stress levels, cholesterol levels,
sleeplessness, and insomnia has consequently led to an increase in the number of fitness clubs in
the nation during the previous forty years.
The goal of this business plan is to outline the whole process of starting a new company called
"FitnessPlus" from the ground up. It's not a new business idea, but the goal of launching a fitness
and health care company is to provide distinctive services.
Mission Statement
“The company's mission is to provide very good services but also high quality at a very
affordable price for people. Providing trainers that people can have for free to help customers
get great results but also to offer a mobile application to give people a platform where they can
develop.”
4 Ps’ of Marketing
Product
Fitness Plus offers a comprehensive range of fitness gear, as well as workout supplements and a
mobile fitness application (all under the Fitness Plus brand). Plus-size clothing, tanning creams,
and a wider selection of items were all more prevalent in US stores than in Quebec. While fitness
centres in the United States generally had catalogues to purchase brand-name gear, those in
Quebec tended to have more generic gear. FitnessPlus offers a wide range of amenities and
services, including a welcoming atmosphere, the ability to take most major credit cards, and a
commitment to complete customer satisfaction. American fitness centres tend to feature longer

shop hours, some even open 24 hours, and greater money back guarantees than Quebec fitness
centres, but less specialised exercise programs.
Place
In spite of the fact that the US fitness Pus should have better sites, the facilities were positioned
on major routes with high exposure in their target population. Stand-alone structures with ample
parking for consumers should be the norm for most fitness Plus centres. The gyms in Quebec are
often more compact, while the gyms in the United States are larger but more difficult to get there
by car.
Price
fitnessPus uses price incentives like coupons and rebates to attract and keep customers by
keeping their rates competitive in the region and offering affordable prices for the services they
provide. Fitness clubs in Quebec have lower charges and provide group discounts, but gyms in
the United States offer greater package pricing, such as a discounted rate for membership with
tanning or workout sessions (DABIJA, et al., 2015).
Promotion
In order to reach the majority of prospective clients, the campaign will be carried out on social
media platforms. This will be done on Facebook, Twitter, Instagram, and YouTube. FitnessPlus
should be clearly visible from the street above. Pre-purchase membership discounts and special
rates for elderly, students, and people with disabilities are frequently used to bring in new
members. Membership rates are decreased at various periods of the year, fitness club brand T-
shirts are sold to members, and customer testimonials are posted on Facebook by Quebec fitness.
Target Audience
The fitness industry, as well as all of its affiliated institutions, aims to reach people in their early
twenties to late forties, a demographic that includes both genders. People in their 30s and 40s
make up the majority of industry contributors, despite the fact that the sector is open to everyone.
The marketing approach for these prospective clients must stress on the benefits they will acquire
and the costs they will incur if they do not use the fitness services. Instead of focusing on a short-
term objective, a long-term strategy is required (VORÁČEK, et al., 2015).

In terms of the market segmentation, women are the primary target demographic. fitnessPlus
mostly caters to women in their mid-20s to mid-40s. Working-class women are more health-
conscious and like the stress-relieving ambiance of a health and fitness centre when they work
out there. It's clear from these figures that the target market has room to expand further.
FitnessPlus can give these women specific post-work and holiday packages that will help them
become more interested in the gym.
Company Competitors’
The PureGym gyms and exercise rooms, which have a long history in this industry, as well as
Anytime fitness, are the company's key rivals in this field.
PureGym clubs and workout studios are main rivals for FitnessPlus. Many of these facilities
have distinct benefits over the competition. For example, PureGym has many locations in
Maryland, Washington Sports Clubs has roughly 19 health and fitness facilities, and Mint
includes a café, an aerobics class, and a swimming pool with a variety of options.
Promotional efforts are necessary to compete with local fitness clubs like Bally Total Fitness,
SomaFit Spa, and VIDA Fitness, which have well-established and well-supported subsidiaries.
With ABC fitness center's limited-service list, rivals will have a hard time keeping up with
ABC's quality standards.
Organizational Structure
Because "FitnessPlus" is a brand-new facility without an existing subsidiary, its organisational
structure will be straightforward. The training and health and fitness services, as well as the
shopping and leisure divisions, must be separated into two separate company segments. Here is a
breakdown of everything you'll find at the gym:

It will be up to the Chief Management Team to oversee the whole fitness facility, including any
future additions. There will be four sub-divisions for each of the two primary units: operation,
HR, marketing, administration/finance, and administration.
However, the marketing department's staff will be tasked with promoting, doing research, and
providing service marketing. It's the marketing department that will play the most important role
in the company's establishment, developing a brand image, establishing a consumer awareness
campaign, and so on.
In order to organise and schedule the activities, the operation department will play an important
role. This division will, at some point, alter its service offerings in response to changes in client
demand and those of its rivals.
HR management is in charge of recruiting and training people, as well as deciding on salaries for
employees and managers. Also crucial is a finance and administration staff that handles finances
and administrative work (Voelpel, et al., 2010).

Pestle Analysis
Economic: For a fitness business, money is a major concern. Fitness businesses are a kind of
entertainment. If the economy is in a slump, businesses may see fewer clients. When people are
strapped for cash, they are less likely to spend it on fun activities.
Sociocultural: The general population's demographics have a significant impact on the success
of a fitness facility. We take into account the gender, age, and level of income of the people we
interview. Whether you're a teen or an older person, fitness and physical growth are in high
demand. It's not only about looking good when you're fit. As indicated under the heading
"economic issues," fitness businesses care about the financial security of the clients they serve.
Fitness Express has its headquarters in East Anglia. This was a valuable asset for the company.
Technological: While technology concerns may benefit the firm by preventing new competitors
with low entry barriers, the high demand and expectations of consumers may be a cause for
worry. Fitness centres find it difficult to join the market because of the high standards required
for its equipment and employees. In order to keep up with the competition, a fitness organisation
must keep up with technical advancements and supply its consumers with the most up-to-date
equipment .
Environmental Factors: The profitability of a company might be adversely affected by market
norms or environmental requirements. It is not uncommon for states within the same nation to
have wildly divergent environmental and liability rules. In the United States, for example, Texas
and Florida have varying culpability provisions in the event of accidents or environmental
disasters. Similarly, a large number of European nations provide substantial tax benefits to
renewable energy businesses. For new markets or for new businesses in current markets, the
company should thoroughly assess environmental criteria that are necessary to operate in such
areas before entering or expanding. The following are examples of environmental considerations
a business should make in advance:
 Weather
 Climatology change
 Environmental protection legislation
 Restrictions on pollution in the Travel & Leisure sector

 Recycling
 Consumption sector waste management
 Products that are "green" or "eco-friendly"
 In risk of extinction.
 Perceptions of and interest in renewable energy sources
Porter Five forces Analysis
Threat Of New Entrants
There are substantial hurdles to entry in this market, thus the threat of a new entrant may not be a
major issue. Fitness centres find it difficult to join the market because of the high standards
required for its equipment and employees.
Bargaining Power Of Buyers
As the number of members grew and the market became oversaturated, the buying power of the
average consumer increased dramatically.
Bargaining Powers Of Suppliers
With the correct hotels, it was vital to invest. However, since there were fewer high-quality
hotels, suppliers had more clout when it came to negotiations.
Threat Of Substitutes
There were not many competitors in the UK with the same size as Fitness Express, thus the
danger from them was minimal. Similar to Fitness Express, one of them had 30 contracts, but its
profit margins were far less (PEST, 2020).
Conclusion
Fitness industry is not new it is always growing with the increasing awareness of health bnefits.
In todays’ world it is obvious to join some fitness club to be healthy as there are so many
diseases. Exercise facilities like gyms may significantly reduce stress and blood pressure levels
in persons who are currently afflicted with ailments like high blood pressure and obesity in the
United States. With the macro and microenvironment research, it can be determined that growing
FitnessPlus via acquisition is a viable option. FitnessPlus should focus on customer service. With

these characteristics, the corporation should concentrate on purchasing another management
company and enhancing the current infrastructure to make it financially viable.

References
Ali, M. A. & Kamraju, M., 2017. Importance of health and fitness in life. Asian journal of
Physical Education and Computer Sciences in Sports , 17(1), pp. 41-45.
DABIJA, D.-C., ABRUDAN, I.-N. & POSTELNICU, C., 2015. 102 COMPETITIVE
STRATEGIES OF FITNESS GYMS IN INTERNATIONAL BUSINESS ENVIRONMENT.
EMPIRICAL FINDINGS THROUGH OBSERVATION. Proceedings of the 5th International
Conference on Management (ICoM 2015), Management, Leadership and Strategy for SME`s
Competitiveness, Szent Istvan University, Gödöllö, Volume 1.
PEST, 2020. Planet Fitness, Inc. PESTEL & Environment Analysis. [Online]
Available at: http://fernfortuniversity.com/term-papers/pestel/nyse4/3068-planet-fitness--
inc-.php
[Accessed 27 January 2022].
Voelpel, S. C., Leibold, M. & Mahmoud, K. M., 2010. The organizational fitness navigator:
Enabling and measuring organizational fitness for rapid change. Journal of Change Management
, 4(2).
VORÁČEK, J., ČÁSLAVOVÁ, E. & ŠÍMA, J., 2015. Segmentation in sport services: a typology
of fitness customers. ACTA UNIVERSITATIS CAROLINAEKINANTHROPOLOGICA, 51(2), pp.
32-47.