A1. New Products and Services
Background and Proposed New Products or Services
Plum Creek Fitness (PCF) is a locally owned gym with a single location in Kyle, Texas. It is owned by a sole proprietor and is therefore not affiliated with any franchise or chain. The gym is approximately 10,000 square feet with traditional equipment that includes treadmills, elliptical machines, circuit stations, and free weights. PCF is open to its customers for extended hours daily from 6:00 AM until 10:00 PM. Patrons pay a monthly fee to be members of the gym which gives them unlimited access to all workout facilities during business hours. The community is approximately 50,000 in population with only one other fitness center in the immediate vicinity. There is also an expected growth rate of close to 20% predicted over the next 10 years.
The proposal for Plum Creek Fitness is to add two new services to their portfolio of fitness-centered offerings. First, guided exercise classes for seniors 55 and above will be added in order to attract the more mature community members looking for a healthier lifestyle in a less intimidating environment. Second, the main gym facility will be converted to provide 24 hour access to members in order to provide flexibility for the working class and students within the market area.
Feasibility and Profitability
There were three primary considerations used to determine the feasibility and potential profitability of the additional services. The first was a consumer survey conducted over a month’s time whereby the gym employees asked each member to fill out a short survey to determine what additional offerings would be attractive to them as members of the gym. The results of this survey identified that flexibility was extremely important to members and many patrons would like to utilize the facility outside of the existing available hours. One part of the survey asked the member to identify their age range within a scaled group already...