1.0 Executive Summary
Corporate Fitness will serve Seattle-area businesses, helping them to become more productive, while lowering their overall costs with innovative wellness programs and strategies. Our business is based on two simple facts:
1.Healthy employees are more productive than chronically ill employees. 2.It costs less to prevent injuries or illnesses than to treat them after they occur. At Corporate Fitness (CF), we tie worker productivity directly to the health care issue. We believe that traditional approaches to the current health care crisis are misdirected. These traditional efforts are what we call reactive--that is, they wait until after the worker has been stricken with illness or injury, and then pay for the necessary treatments. Our approach, which emphasizes prevention and good health promotion, is much more proactive. By helping employees change their behavior patterns and choose more healthy lifestyles, CF will lower companies' health care expenditures, while raising worker productivity. Health care expenditures will decrease due to reduced medical insurance premiums, reduced absenteeism, reduced turnover rates, reduced worker's compensation claims, reduced tardiness, shorter hospital stays, etc. The state of America's health care crisis, coupled with current demographic changes, threaten to not only exacerbate the crisis, but further erode worker productivity as well. These environmental factors coupled with the local competitive situation signal a favorable opportunity in this market. We feel the time is right for Corporate Fitness.
2.0 Situation Analysis
Corporate Fitness is entering their second year of business. The business model has been well received and marketing is especially important to maintain growth and market penetration. In addition to offering fitness facilities for Seattle corporations, Corporate Fitness' main activity is the creation and implementation of wellness programs. The basic market need is the reduction of corporate costs and the increase in employee efficiency that can be achieved through long-term wellness programs.
2.1 Market Summary
Corporate Fitness possesses good information about the market and knows a great deal about the common attributes of the prized and loyal customers. This information will be leveraged to better understand who is served, their specific needs, and how Corporate Fitness can better communicate with them.
Corporate Employees35%9,87613,33318,00024,30032,80535.00% Manufacturing Employees15%5,9246,8137,8359,01010,36215.00% Other0%000000.00%
2.1.1 Market Demographics
The profile for Corporate Fitness' customer consists of the following geographic, demographic, and behavior factors: Geographics
The immediate geographic target is the city of Seattle.
A 35 mile radius is in need of the services.
The total targeted population is 15,800 employees.
51%:49% male: female.
The individual income range is $38,000-$75,000.
67% of the customers are single, 33% are married.
For the manufacturing customers, 43% have some undergraduate course work. For the corporate customers, 83% have some undergraduate coursework, 16% have undertaken graduate coursework.
Recognize the need to have physical activity in their lives. Have incorporated some sort of exercise program in their daily/ weekly routine for the last several years. Are willing to utilize fringe benefits that are offered by their employer as part of their compensation package.
2.1.2 Market Needs
Corporate Fitness is providing their customers with a health care cost management program for employees that will increase employee productivity and decrease overall business...