This is a case study for an alternative business model for a gym.

Appropriate Subject Area(s):

Entrepreneurship, business management, retail management, marketing, target market

Key Questions to Explore:

• What strategies can be used to reach the right target market?

Introduction to lesson and task:

This lesson examines an alternative business model for a traditional business.

Action (lesson plan and task):

• Review target market segmentation with the class by dividing them into small groups to discuss each of the following segments:
  • Demographics including age, gender, race/ethnicity, income, education, family
  • Geography including place of residence,  location of work, place of origin, preferred recreation activity
  • Behaviour including frequency of purchases, subscriptions, plan ahead or last minute, want to do more or less, and interest in renewing
  • Attitude/belief including likes/dislikes, preferences, values.
  • Ask each group to share the key characteristics to look for in the segment they have reviewed.
  • Distribute the first half of the article, up to The Challenge.
  • Have students read the case study and then in small groups discuss the challenge: How can Striation 6 differentiate its pay-as-you-go model from the contract-fuelled gym market?
  • Within the discussion of the challenge, have students identify the target market(s) for this gym. Why is determining the target market important?
  • Share solutions with the class.

Consolidation of Learning:

• Distribute one of the expert opinions to each group.  Have them compare the expert advice to the advice they have given.  Combine groups to share two expert opinions, including similarities and differences with their own opinions.

Success Criteria:

• Students are able to describe the target market for various products and services.

Confirming Activity:

• The article suggested three things Striation 6 can do now: focus on the value proposition, recruit fresh faces and go grassroots.  Have students work out a plan that addresses what Striation 6 can do within these parameters.