Branding and Strategy Case Study
Project instructions:
The Branding and Strategy Case Study assignment is your opportunity to critically analyze, discuss, and apply the theories, frameworks, and key learning principles covered in this course.
Reminders
b) Please answer in complete sentences, using paragraphs, and structure as necessary.
c) The word count for this assignment is a minimum of 700 words and a maximum of 1000 words, excluding references. This word count can be spread over a written submission + your flyer.
d) You must provide accurately sourced, quality references to attribute credit to any resources used in your writing. Please use either MLA citation styles.
Case:
Members needed for Toronto?s C.O.R.E. indoor cycling studio and fitness centre.
On the street level of a Victorian-style row house, tucked between a tattoo parlour and a small flower shop, there?s an indoor cycling studio with a speed limit sign on the door proudly displaying three bolded words: ?EXCUSE LIMIT 0?
?No one else is doing what we do, it?s a place of solace for people,? says Clair Cafaro, who co-owns the studio with her sister Ursula, ?not just body fitness, but mind and spirit too.? The sisters are often referred to as the “Spin Sisters”.
Both sisters are self-proclaimed cycling nuts and certified fitness instructors, and they founded C.O.R.E. (which stands for Creating the Optimal Ride Experience) as a refuge from the commoditized mentality of the big-chain gyms where they used to work. ?Gym culture focuses on what?s wrong rather than on bringing out the best in you. It?s a one-size-fits-all, rather than a person centered approach,? says Clair. ?I?m not exaggerating when I say I love every single person who walks through our doors. I see a real person, with real needs.?
Unfortunately, this passionate approach to fitness is not, at the moment, paying particularly well. With revenues only at $35,000 so far, neither sister is drawing a salary ? Ursula still works as a fitness instructor at another gym and Clair, who has a fine arts degree from the Ontario College of Art and Design, teaches adults and seniors how to paint, and runs a second business certifying indoor cycling instructors.
All their cash is going to pay for the 1000 square foot studio?s lease, their ten rented bicycles, and various other expenses.
But, although both say the health of their clients comes before anything else, the sister?s didn?t start the gym purely out of altruism.
The goal, says Ursula, is to eventually give up the day jobs and run their own spin-centric gym full time.
?That?s the trajectory,? she says. ?It has to be.?
The studio, which currently has 40 members, is on track to reach $60,000 in revenue by the end of the year. Ideally, Cafaro says, they?d like to reach 100 members before their lease is up in December 2014 so they can afford to continue growing and move into a larger space.
The pair believe they?ll reach those numbers because, says Ursula, they do fitness differently.
?For us it?s turning (gym culture) on its head and being much smaller and hands-on because we want (members) to succeed,? she says. ?When you?re in a smaller group, with a teacher right there, you feel like you have to show up and you have to deliver. People who come to our gym are going to stick to their goal and be more successful.?
The key to their success so far, she says, is a personal touch and a holistic approach to health. The gym specializes in no-frills cycling classes ? they stick to the basics and avoid the awkward exercises practiced in many spin classes, such as doing situps, rapidly standing and sitting, or lifting weights while riding.
C.O.R.E. studio also offers strength training, yoga classes and injury rehabilitation.
The walls of their brightly lit space are covered in paintings of nature scenes the sisters created themselves, and Ursula?s dog, a shih tzu maltese-mix named Miss chichi Rodriguez, is often onstage with her to help motivate clients during classes. There?s a lounge with comfortable chairs and free coffee for anyone who?d like to stay and chat after class, and members are also encouraged to do ?mind agility? exercises while on their bikes.
?I say, ?what letter comes after F?? or you do tongue twisters while doing an all out, high intensity surge,? says Ursula. ?You don?t just exert yourself, you also have to think.?
Scott Bowman, senior director, Ontario for the Canadian Youth Business Foundation, an organization that provides financing and mentorship to entrepreneurs, says this holistic approach to fitness could actually be part of C.O.R.E.?s problem.
?You?ve got get out there and you?ve got to hustle,? he says. ?There?s enough spin enthusiasts in Toronto that you can make a go of it, but you?ve got to build connections in that community.?
The sisters don?t have the cash for advertising, so they?ve already launched a partnership strategy and are currently getting referrals from physiotherapists, massage therapists, acupuncturists, personal trainers and naturopaths for referrals.
They also keep an active Facebook page, and are redesigning their website in the hopes of getting more members through the internet. Plus they?ve started offering fitness and artistic daycamps for girls, dryland hockey training, and, for the most hardcore cycling aficionados, advanced ride training.
They also offer a range of membership options priced according to market rates, and don?t bind members to contracts. First classes are free, single classes are $18, and drop-in packages range from 5 classes for $80 to 32 classes for $384.
Overall, the sisters say they?re excited about the future, and believe their passion and personal touch will eventually get them the membership numbers they need.
Responsibilities:
You are a marketing and business development consultant to the Spin Sisters.
1) What guidance and advice would you give to the Spin Sisters to increase their sales revenue? The Spin Sisters are demanding clients and request that you directly suggest specific tools, frameworks, and principles that can be applied in a real-life context to their business.
2) Where are the strengths and weaknesses in their current business development and marketing strategy?
3) Where are the opportunities for growth?
4) What are potential threats to the organization?
5) Provide a final summary with your research and key findings. What are your final recommendations and why?
Other Notes
Website
www.corecycling.ca
Vital Stats
Company Name:
C.O.R.E. (Creating the Optimal Ride Experience) Studio
Owners:
Clair and Ursula Cafaro
Field:
Fitness
Employees:
Five contract instructors
Years active:
Less than one
Sales:
Approximately $35,000
Offering:
Holistic approach to small-class and individual fitness training and life coaching.
Members:
40
Notable:
Dr. Nigel D. Clements, head of orthopedic surgery at the Trillium Health Centre, leads indoor training rides at the studio during the summer off-season.
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