Studio Pilates Essay

4270 words - 18 pages

Financing Strategy: Sources of Capital and Business Plans


Executive Summary
Market Analysis
The growth that is occurring in the North Fluminense (Brazil) due to large oil discoveries in the Campos basin, has the city of Macaé as the epicenter.
The change of legislation, which opened the market for petroleum carriers worldwide, and PETROBRAS search for trading partners in order to accelerate fundraising and minimize the risk of their ventures come to intensify further the regional economy. This has caused growth far above the national average in Macaé, from both the population (which has quadrupled) and the economic (600% of grow in the last 10 years) point of view.
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There are currently 12 large gyms in Macaé that meet a targeted public of approximately 2,770 people with an average occupancy rate of 90%. It is considered that four of these academies excel in equipment modernization and selectivity of customers. The average monthly fee charged by these academies is around US$ 85.00 per customer for five lessons per week.
An estimated 30% of the targeted public prioritizes maintaining fitness and body posture towards esthetics, and they are the ones with greater purchasing power, and who are potential customers for the proposed venture.
During the evaluation process it was found, in the city of Campos dos Goytacazes - located 65 Miles North of Macae, the installation of two centers of physical exercises based on the PILATES method, with an average occupancy rate of 90% and monthly fee of US$ 200.00 per customer for three lessons per week.
The “ATTITUDE PILATES STUDIO” through differentiated services, aims to provide the best option in physical activity in Macaé.
The business goals for the next five years include:
* Attract and retain at least 2% of the people relocating from Brazilian big centers like Sao Paulo, Rio de Janeiro and others (Currently they are 30% of the population according with the city website).
* Attract and retain at least 1% of the international immigrant public (Currently is 10 % of the population according with the City’s website).
* Attract pregnant women by promoting that Pilates is a safe exercise routine to be taken during the pregnancy.
* Stimulate "Culture Towards Health" as a way of improving the quality and longevity of life;
* Build an internal environment where the staff continually strives to improve quality in customer service that is highly valued by our customers.
* Consolidate the brand “Attitude Studio Pilates” as a regional reference in postural recovery and physical improvement.

Marketing Opportunity
In a conservative analysis based on high frequency average of local academies (around 90%), and the large number of professionals who relocate to Macaé driven mainly by the oil industry (over 7,500 people/year) can be considered as a very good expectation of success for the venture. Search for fitness activities in Macaé has grown above the expansion of the town. This growth is due to the increasing relocation of upper levels professionals, who are fans of practicing physical exercises, and the low availability of appropriate facilities. In the past two years, an extension of more than 30% of physical activity spaces, corresponding to 4 new fitness places has been registered.
The business proposal is to offer an option of individualized care in a comfortable environment, combining the fitness of individuals and alignment of the spine monitored by professionals specialized in the PILATES method. It is expected to attract a significant portion of the targeted public with retention rate of up to 84 customers in the first year, based...

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