Avadi (Tamil: [aːʋaɖi]) is a neighborhood of Chennai, India. It is municipal corporation in Chennai Metropolitan Area and 15th city corporation in Tamil Nadu. The neighborhood lies to the west of Chennai, about 22.1 kilometres (14 mi) west of Chennai Central Railway Station. Although Avadi city has population of 345,997; its urban / metropolitan population is 8,653,522 of which 4,358,611 are males and 4,294,910 are females. It is home to the Ordnance Factory Board (ODF), Heavy Vehicles Factory (HVF), which housesCombat Vehicles Research and Engine Factory and Development Establishment (CVRDE). It is one of the most populous and developed areas in Western Suburbs of Chennai. The 18th street is a very likely place , nearby lot of offices , malls. This place has a very decent foot tall and attracts hundreds of people. we think that opening up a gym at this spot will be a good opportunity for our bussiness. we did our research and found out that there are currently no other gyms or fitness centers working with in the radius of 5 KM of 18th street. we saw this as an opportunity to start fitness plus.
Executive Summary
Fitness Plus will provide health care and body workout services.
Fitness Plus will offer low cost services to all segments of customer.
Owners are experienced and dedicated towards health care services.
Health care market is on the boom in India
Market volume is expected to reach $69.8 billion by the year 2012.
A large segment of market is still untapped.
Heart disease and obesity are on record high causing increase in health club demand.
Low income market segment is ignored by key competitors.
Health club market is competitive in Chennai but provides equal growth opportunities.
Increasing awareness, obesity and heart disease are the driving forces for market growth.
Fitness Plus will have their own training facility with state of the art health care equipment from quality manufacturers.
Highlights
Startup Expenses:
Expected Revenue Growth:
Expected Profit Growth:
General Company Description
Company overview:
Fitness plus will be located in Tamil nadu , Avadi Our specific purpose is to provide fitness and health programs to our members located in the area. Fitness plus promotes long term lifestyle changes for our patrons through exercise and nutrition for their all around well-being at low cost. With all of our unique features, services, and amenities this company will be truly successful generating growth revenue, and independence for all the its initial founders.
Mission and Vision:
Vision: To create awareness about healthy lifestyle and its benefits.
Mission: To provide strategies and training programs related to health car.
Strengths and Core Competencies:
Lowest cost of services in comparison to competitors.
Certified trainers from top ranked health care institutions.
Owner’s commitment and dedication towards health care services.
Industry Analysis
A health club can be descried as a service facility that is intended to provide physical health care exercises with the help of specialized equipment. It normally serves both male and female customers but in some cases females are provided special attention by providing them female only health clubs in which all staff including trainers are also females. Normally, the environment is made casual to provide customers comfortable experience that helps them performing bodybuilding and other exercises with ease. According to a survey conducted in 2020 , total number of health clubs in india was 40,000 with over 60 million members. Almost 49.5%2 of those health clubs were in Bengaluru, Gurugram, Noida, Pune, Mumbai, Ghaziabad, Hyderabad, Delhi. See the chart below to understand market share of top 8 states.
Services:
Fitness Plus will provide following health related services:
Aerobics
Cycling
Boxing
Yoga
Pilates
Muscle Training
Diabetes & Obesity Control
Benefits and Features:
State of the art facility with latest equipment from quality manufacturers
Low cost with monthly, quarterly and annual subscription plans.
Personal qualified trainers to help our members achieving results without wasting much time.
Why people need this service?
Health care and fitness club market in India has been serving to a high income segment of late. Average income of health club member is $95,000 as of 2016 survey. This leaves a large segment of low-income customers with unmet needs. Fitness Plus will primarily exist to provide health care facility to the lower income class without compromising on quality of service.
Market analysis
Market Description:
According to a survey by The International Health Racquet & Sports Club Association in year 2016, it was mentioned that there are more than 30,000 health clubs in India that house a total of 55.5 million members. Health clubs that are involved in commercial business have a total membership of almost 20.4 million and 17.2 million members belonging to not for profit health clubs.
Health Clubs Growth in India:
Cyclical trends in Industry:
Health club business is not affected by different seasons and keeps running smoothly throughout the year.
Market Facts:
Health club market in India has grown rapidly in the last 10 years, following are the key points related to health club members in India.
Out of the total 55.5 million members in India, 55% are male and 45% female.
Average annual income of health club member is $95,000.
On average health club member attends 92 days per year in their club.
Most widely used health club program is personal training.
Top area of development in U.S. health clubs is cardiovascular equipment
Although medical research has pointed out several benefits of body fitness and workout, still almost 90% population in India is yet to attend health clubs.
Market size:
Revenue in the Fitness segment is projected to reach US$2,152m in 2021. Revenue is expected to show an annual growth rate (CAGR 2021-2024) of 2.68%, resulting in a projected market volume of US$2,331m by 2024. The market's largest segment is Wearables with a projected market volume of US$1,828m in 2021.
Market Growth:
Health care market in India has grown at a very healthy rate in the last decade. As of 2010, health club market reached $18.6 billion. It has doubled in size at almost 12.56% that was $8.8 billion in year 1995. It was a 24.1 million members market in the year 1995 which has grown at almost 4.7% to reach 41.3 million in 2005. See the chart below to understand market growth of health clubs in India.
Market Demand:
Health care club market in India is getting more and more demanding with the passage of time. Following are the common demands that have arise in recent past.
1. Customization: People who already have membership or those who are willing to have one, are interested in subscribing to a customized health care plan according to their requirements or as per the recommendation of medical expert.
2. Ease of Service: People are looking for exercises that are easy to adopt and are performed by expert trainers.
3. Effectiveness of Exercise: Members are very demanding over results of the exercises which they are performing. An expert trainer can be helpful in setting a proper exercise plan for the members so they can work out accordingly.
Factor Causing Market Demand
Per Capita Income Increase: Continuously increasing per capital income in the last decade has enable people of India to focus more on their health related issues such as spending time in health care clubs and gyms. Health care expenditures are directly fueled by this increment in per capital income; see the chart below for details of growth rate in per capital income which is almost 5.4%.
Market Trends:
Health care club industry has been changing its trends very quickly of late. Last five years have seen major changes in trends such as following:
Individual usage of fitness and health care training equipment has increased.
Body work out and exercise has become a daily life routine of many Americans in the last decade.
Fitness memberships are increasingly getting popular in office environment of India. Companies are including health memberships as part of employee remuneration package.
Market Opportunities:
Health care club industry offers a huge lot of opportunities for existing and potential investors. Marketing is growing for many reasons, some of them are following:
Almost 300 million people are affected worldwide with obesity.
Almost 130 million Indians are overweight that includes more than 61 million who obese.
15% children’s in India are overweight.
18 million Americans with diabetes are suffering from high blood pressure and heart disease.
Treatment cost of obese patients is almost $100 billion, which is 9% of total health care expenditure in India.
Barriers to Entry:
No such barriers in the entry of health care clubs in India.
Regulations:
Indian Food and Drug Administration
Centers for Disease Control and Prevention
United States Department of Health and Human Services
Service Potential:
Currently Fitness plus are only focusing on developing a fitness and health care facility, but n the future they are planning to extend its operations for creating public awareness about different disease and heath care issues on no profit basis
Targeted Audience:
Fitness Plus will be starting its operations in India, Avadi.
Total Population
Avadi city has population of 345,996; its urban / metropolitan population is 8,653,521 of which 4,358,612 are males and 4,294,909 are females.
Market Niche:
Fitness Plus will enter in the market to serve low income segment of customer that forms 6.1% of total population in Avadi who are earning less than $25,000. Fitness Plus will provide low price services in the start to attract masses, and eventually set it to competitive rate.
Marketing Strategy
Value Proposition: •
State of the art facility with latest equipment from quality manufacturers
Low cost with monthly, quarterly and annual subscription plans. Starting from as low as $100 for basic body workout exercises.
Personal qualified trainers to help our members achieving results without wasting much time.
Branding:
Fitness Plus will create their official website for creating a brand and company image in the market, as well as providing subscription online.
Marketing Objectives:
Fitness Plus will focus on creating a brand image in the Avadi vicinity. They will participate in the major events of health care awareness and education programs
Strategy:
Fitness Plus will start by targeting low income segment of market downtown Avadi area. They will convince people about the benefits and needs of wellness programs. This will be accomplished by aggressively pursuing interaction and relationships with peoples in public health awareness programs and by sending newsletters and emails through website.
Marketing Budget:
Fitness Plus has allocated $5,000 for marketing in the year 2019. This budget will be used for advertising on newspaper, television, radio and printing brochures.
SWOT Analysis:
Strengths:
Management committed towards to a result orientated approach to attract and maintain customers in a highly competitive market.
Health care program is well-thought according to the need of layman.
Lowest cost of service in the entire market of Avadi.
Company will hire qualified and trained staff.
Weaknesses:
Personal training services can be high in costs.
Fitness Plus is low in staff that can be problem in providing service to a large pool of members.
Club is short of marketing budget to attract large business client.
Opportunities:
Health care club market is rapidly growing.
Increasing heart and obesity disease are causing people to pay importance to exercise and health care activities.
People are getting use to have gym and health clubs in their daily routine of life.
A large segment of market is still untapped, low income area will be of special focus for Fitness Plus which is totally ignored by the rivals.
Threats:
Recession and economic downturn can slow down the growth of health clubs
Low cost offer from well established competitors. Although it’s a small level threat due to a fact that market is rapidly growing.
Low cost health care equipments availability for home exercise.
Graphical Presentation of SWOT:
Marketing Mix
Fitness Plus health club’s marketing mix is based on the following factors of product, cost, distribution, advertising and publicity.
Product:
Health Care Services:
Aerobics
Cycling
Boxing
Yoga
Pilates
Muscle Training
Diabetes & Obesity Control
Price:
Penetration Pricing:
Fitness Plus will face a challenging situation in highly competitive market of Chennai, Avadi. Therefore health club will offer quality exercise and body work out services at cost less than existing market standard which is maintained by players such as Gold's Gym. They will offer basic body workout and exercise service for only $100, in addition they will offer other services low in cost to compete with the market.
Place:
Direct Supply / Direct Sale :
Fitness Plus will have their health club facility near the main street of Avadi. They will not involve in any kind of franchise or branch network other than Avadi vicinity.
Promotion:
Media Advertising:
Fitness Plus will use internet, newspapers, magazines, television and radio as the medium of advertisement. In addition they will print 5,000 brochures for creating awareness in the market about their health care services; they will be distributed in major health care seminars and events where officials from Fitness Plus will participate.
Operational Plan
Service Execution Timeline:
Fitness Plus will follow this service execution model to enter in the health club market.
Location:
Fitness Plus will start its business in main street area of Avadi.
Legal Environment:
There are no current legal obligations for Fitness Plus health club.
Personnel:
Fitness Plus will start with a total of 10 initial staff members that includes owners as well.
Management and Organization
Management Strength:
Gokul is the owner and manager of overall operations of Fitness Plus. He is BSC from the University of pallavaram with major in Nautical science. He is a great enthusiast of health care activities and is involved in them since his academic age.
Experience as Financial Analyst:
Gokul worked as financial analyst for more than 5 years, he took more than 5 financial management projects of multinational health care companies, which includes following companies:
Apollo Hospitals Enterprises Ltd.
Aster DM Healthcare Ltd.
Dr. Lal PathLabs Ltd.
Fortis Healthcare Ltd.
HealthCare Global Enterprises Ltd (HCG).
Karthik
Karthik is the co-owner and manager sales of Fitness Plus. He is MBA from university of pallavaram with major in sales and marketing.
Bankers:
That will be decided based on the requirement of feasibility of business.
Start-up expenses
The start-up expenditures for Fitness Plus, Inc are summarized below:
Revenue Forecast (3 - Year):
Profit and Loss Projection (3-Year):
Pro forma Cash Flows (3-Year):
5 Projected Balance Sheet:
Breakeven Analysis
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