Transcript BusyBody.ppt

Kegan Sims
Shane McCartney
Matt Baldwin
Retailer Profile
Store Locations
 Washington – 6
 California – 43
 Nevada – 4
 Arizona – 5
 Colorado – 8
 Alaska – 1
Products
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Elliptical Cross-trainers
Treadmills
Exercise Bikes
Rowers
Home Gyms
Free-weights &
Equipment
Flexibility Equipment
Fitness Accessories
Featured Brands
Market Segments
The Home Market
Targeted towards
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University graduates
Professional or managers
In the top third of discretionary spenders
Home market competitors
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Home fitness retailers, ex. Northwest Fitness, Wal-Mart
Sporting goods stores, ex. Big Five
E-tailers, ex. BowFlex
The home market is by far the largest and has grown significantly in the past decade
with 80% of home fitness equipment is bought in retail stores.
Market Segments
The Institutional Fitness Market
Targeted towards
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Hotels
Fitness Clubs
Corporations
Apartments
Institutional Fitness Market Competitors
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Direct suppliers or fitness equipment manufacturers, ex. Precor
Foreign competition, ex. Imports from overseas
E-tailers, ex. BowFlex
Market Trends
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Exercise equipment sales increasing
Projected
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to grow at the 4% rate as seen in 2006 (AC Nielson website)
Health club memberships also increasing
Memberships
in USA grew 12% in the past five years (AC Nielson
website)
= Industry Synergy
People are more likely to purchase equipment for home use if they belong to a fitness club
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For example consumers were turned on to elliptical trainers at health clubs more than
five years ago and have since made them a fixture in their homes.
Strengths
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Offer wide ranging product lines and product categories.
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($7000 Treadmills to $20 exercise mats.) = Product offerings satisfy the needs of a broad
target market.
Carry strong brand name products which contribute immensely to the
Busy Body reputation and image.
Weaknesses
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Strong dependence on suppliers
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(HOIST© fitness systems, PaceMaster, Precor.) = Low bargaining
power, limited price controls and marketing options.
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Compete with rapid changes in consumer preferences within the
industry. (Tae-Bo, Curves, Diets, Drugs.)
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Products are undifferentiated from direct competitors.
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(Currently five PRECOR exercise equipment retailers in Oregon. Not one Busy Body.)
Opportunities
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Demand for products is growing.
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Greater number of overweight and elderly Americans, demand for fitness
equipment should stay high (baby boomers).
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Entering new metropolitan markets. (Top 5 states for Adult Obesity)
1. Mississippi: 30.3%
2. West Virginia: 30.1%
3. Louisiana: 30%
4. South Carolina: 28.5%
5. Alabama: 28.1%
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Utilize attractive webpage to sell products directly.
Threats
Fitness
equipment sales depend on overall economic health making sales subject
to economic cycles.
Ease of entry into fitness equipment retailing is determined by industry
manufactures/suppliers.
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Competitions
from imports, especially from China, have taken a greater share of
the US market. (Discounted Pricing)
Rise
in the number of fitness centers may lead inter-industry price war creating a
low cost substitution to buying home fitness equipment.
Sources
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http://www.busybody.com/
http://www.youtube.com
http://www.acnielson.com