The Fitness Industry in Canada Market Trend Analysis
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TMatBU352-CZhenfeng MaGroup 3Claire Deudney (160106790)Alessia Francioni (160645870)Sahil Hotwani (160110930)Sandra Sung (150973650)Josephina Zigante (160499940)Table of ContentsExecutive Summary 3Market Trend Analysis 4Description of Industry 4Size of the Market 4Value Sales Trends 4Market Trends 5Environmental Analysis 5Demographic 5Social/Natural 5Competitive Analysis 6 8Identifying Our Key Market Segment 8Quantifying the market segment 8Geographics 9Psychographics 9Behavioural 10Marketing Mix 10Product 10Price 11Promotion 12Positioning 13Positioning Statement 13Marketing Strategies to Capture Market Share 14 14Exhibits 16Bibliography 19Executive SummaryTMat is an on-the-go, or at home, fitness mat with built-in features that tracks the user’s personal information including weight, body fat percentage, and calories burned through built-in sensors in the mat. What differentiates us from others in the fitness industry is not only the convenience and features of the mat, but also the personalized experience it offers for users both at the gym or in the convenience of their homes. The market we are targeting is Canadians aged 25-45 who are currently active or are trying to pursue an active lifestyle. We have decided to target this age group because they have shown a growing interest in physical activity and a healthy lifestyle. The fitness industry has been growing at an astonishing rate over the past few years and we want to be a part of this experience.
When entering this market, we have to consider our leading competitors as well as the environmental factors that will impact our success as a company. This industry is highly growing with many new competitors penetrating it. We will be looking in-depth at the population of millennials in Canada and their values towards a healthy lifestyle. We will be pricing the TMat at $150, making it more expensive than the basic workout mat, but cheaper than a workout machine or personal trainer. In terms of promotion, we will be using a push strategy to get our products into popular fitness stores, as well as some smaller local gyms. More specifically, we will be using social media, influencers, and in-store demonstrations as our advertising techniques.We want consumers to think of our product as one that helps them achieve their fitness goals through a completely unique and personalized experience. With the TMat, you’ll be able to achieve all your fitness goals, your way!Market Trend AnalysisDescription of Industry The fitness industry in Canada has been growing exponentially as a result of consumer trends and the proliferation of public health campaigns. With obesity rates rising over the past five years, the Public Health Agency of Canada has stressed the merits of healthy lifestyle choices.[1] This industry is also seeing technology becoming a more prominent aspect of fitness with all types of new equipment being introduced. However, this industry is still lacking a product that can provide users with a personalized workout accompanied with real-time results. Size of the MarketAccording to Statista, Canada’s fitness market has a sales value of approximately $266 million, composed of over 9 million users. This features a revenue growth rate of 26.58%: 19.58% coming from apps and 7.1% coming from wearables. We are targeting users ages 25-45 that make up 56.8% of this industry.[2] Value Sales TrendsThe growing concern to maintain a healthy, active lifestyle has resulted in increased sales of fitness equipment. Sales will consistently increase and revenue can expect an annual growth rate of 6.1% from 2019-2023.[3] This growth is expected to continue due to more health concerns among our rising population. There are numerous reasons why Canadians are striving for a healthier life including the 68% that want to prevent future health issues and the 63% who want to look and feel better.[4] The TMat is aligned with these trends as it will help people get stronger, healthier, and help them achieve their overall fitness goals. Market TrendsA large portion of products in the health and fitness market include exercise machines, fitness classes, personal training and other services that are designed for users to improve and maintain their physical health. “The Canadian gyms, health & fitness clubs market grew by 1.2% in 2018 to reach a value of $2,056.6 million”.[5] Emerging trends, such as clean eating, have also contributed to this growth of consumers focusing on how they maintain their well-being. Environmental AnalysisDemographicResearch shows that of the Canadian fitness market, 56.8% is made up of those aged 25-45, which is the segment we are targeting.[6] This market in Canada is ever so slightly dominated by females, who make up 50.8% of the market. We will be targeting those with incomes greater than $50,000 as our product comes with a slightly higher price tag.