QUESTION TO DO - overview sheet

An overview sheet of the company below in detail

Part 1- Company Introduction

1. Briefly describe the company's business.

The Canadian company Gorila Fitness was founded to give Canadians access to top-notch home workout equipment. They were once known as GORIL, one of the toughest creatures in the forest (which is kind of a hilarious way for Quebecers to say "Gorille" in French). At initially, they only wanted a catchy name for their Squat Rack; they had no actual plans to turn it into a business. Martin was really serious about this assignment because he had a high aptitude for both marketing and logo design. This is how the name Gorila Fitness was created.

Any fitness equipment required to set up a home gym, such as bars, plates, racks, and rigs, as well as strength equipment like dumbbells and kettlebells, is popular among them. They are also interested in exercise equipment and clothing. The Gorila creators believe that a product should be useful, long-lasting, created in the area, and have minimal environmental effect. The fitness industry's environmental issue will be addressed using business as inspiration and implementation as of 2021, according to the fourth criteria.

Even though the worldwide epidemic had affected everyone in 2021, Gorila stood distinct. Their Chambly store was no longer able to accommodate the growing demand for home gyms due to a lack of room. As a result, they bought their first facility in Saint-Pie, Quebec, measuring 25.000 square feet. The majority of the products are still made by hand today, and they are constantly looking for ways to manufacture some of their best-selling items in Canada. Also, their staff goes above and above to lessen its ecological impact. These are four of the many things that differentiate them from their rivals, along with quality and competence.

1. Describe the significant features of the company's products.

While brothers Vincent and Martin were still enrolled in school and working out five days a week but hoping to squeeze in a sixth workout and stretching session, everything began. They made the decision to construct a home gym in their house's back shed in May 2012. Because on a tight budget, they began with the bare essentials: an Olympic barbell and bumper plates. They paid exorbitant customs and freight fees for these transactions at the time.

They immediately realized that a squat rack, which is essentially the centrepiece of any successful home gym, was something they could not afford. They only realized it would be considerably simpler and less expensive to make it ourselves when they recalled Vincent's welding knowledge. They can customize home gyms to your demands and specifications, which is what distinguishes them and gives them significance. The Gorila Rig is the company's most well-known or popular item.

1. Describe the market potential for the company's products.

The exercise equipment market was worth $13.2 billion in 2020; by 2028, it is anticipated to grow to $15.4 billion, with a CAGR of 0.3% between 2021 and 2028. In terms of market share for fitness equipment in 2020, the sector for cardiovascular training equipment was in the lead, and it is anticipated that it will continue to hold that position for the duration of the forecast. Because of a rise in health consciousness, there is a greater demand for workout equipment internationally.

Also, it is suggested to exercise when receiving some medical treatments. Treadmills, ellipticals, stationary bicycles, weightlifting & strength training machines, and other pieces of fitness equipment are among the most popular. The expansion of the worldwide fitness equipment market has been significantly aided by the rise in health consciousness and the prevalence of obesity. The adoption of exercise equipment is also fueled by an increase in government measures to support healthy lifestyles, a rise in the sale of in-home equipment, an increase in the urban population, and a surge in the number of gym memberships.

Due to the growing influence of COVID-19, it is anticipated that more people would utilize home exercise equipment during the next years. The demand for at-home exercise equipment is expected to increase in 2020 as a result of market closures, rising self-care product awareness, and expanding fitness trends among the general population. Additionally, the use of in-home fitness equipment is a result of sedentary lives and busy schedules. The cost of a gym membership is reduced by using fitness equipment at home to exercise. Nevertheless, a lack of available space and expensive equipment impede market expansion.

1. Describe the financial goals of the company (e.g., reaching $2 million in sales in the new market in two years, profitability in three years and specified levels of sales and after-tax profits within four years).

Gorilla Fitness is a fitness equipment and product company that is expanding into the Italian market. While the company's specific financial goals are not publicly available, typical financial goals for companies expanding into new markets might include achieving a specific level of sales within a certain timeframe, attaining profitability within a specified timeframe, and maximizing return on investment.

According to Allied Market Research (2021), the global fitness equipment market is expected to grow significantly in the coming years, driven by an increasing focus on health and wellness and the rise of at-home fitness solutions. This growth presents an opportunity for Gorilla Fitness to capture a share of the Italian fitness equipment market and achieve its financial goals.

Overall, Gorilla Fitness is likely to have set specific financial goals for its expansion into the Italian market. By monitoring its progress against these goals and adapting its strategy as needed, the company can work to achieve success in this new market.

1. Describe the purpose of the plan and its relation to the attainment of the company's financial goals.

The purpose of Gorilla Fitness' expansion plan into the Italian market is to achieve its financial goals. By entering this new market, the company aims to increase its sales and profitability, expand its customer base, and maximize its return on investment. The plan outlines the steps that the company will take to achieve these goals, including market research, identifying potential customers and partners, developing a pricing strategy, and creating a marketing campaign.

The plan is essential to the attainment of the company's financial goals because it provides a roadmap for how the company will navigate the challenges of entering a new market. By outlining its objectives, strategies, and timelines, the plan enables the company to monitor its progress and adjust its approach as needed. This ensures that the company remains on track to achieve its financial goals and that it can adapt to changing market conditions.

Overall, the expansion plan is a critical component of Gorilla Fitness' overall strategy. By setting clear financial goals and developing a plan to achieve them, the company can work towards sustainable growth and success in the Italian market.

Part 2- Company Description

1. Describe the company's principal line(s) of business.

Gorilla Fitness's principal line of business is in the fitness and gym equipment industry.

Gorilla Fitness offers a wide range of products in its line of business. These products include equipment for strength training, cardio exercise, and other fitness activities. Examples of their products include treadmills, ellipticals, stationary bikes, weight machines, dumbbells, kettlebells, and yoga mats.

Gorilla Fitness's customer base consists of individuals and businesses that are interested in fitness and exercise. Their customers have specific needs in terms of the types of products they are looking for. For example, individuals may be interested in purchasing equipment for their home gym, while businesses may be interested in purchasing equipment for their fitness centers. Additionally, customers may have different preferences when it comes to the type of equipment they are looking for, such as weight machines for strength training or treadmills for cardio exercise.

Gorilla Fitness has taken several steps to identify customer needs. They have conducted interviews with current and potential customers to better understand their preferences and needs. They have also conducted market surveys to gather information about market trends and customer demands. Additionally, they have conducted research and beta testing on new products to ensure that they meet customer needs and expectations.

1. For each line of business, describe the company's products.

Gorilla Fitness offers a wide range of products in its line of business. These products include equipment for strength training, cardio exercise, and other fitness activities. The company's products include:

• Treadmills:These are machines that simulate walking, jogging, or running. Treadmills are popular among customers who want to improve their cardio health, lose weight, or train for a race.
• Ellipticals:These are machines that simulate the motion of running, walking, or climbing stairs without putting undue pressure on the joints. Ellipticals are popular among customers who want to improve their cardio health or burn calories without putting undue stress on their joints.
• Stationary Bikes:These are machines that simulate the motion of cycling. Stationary bikes are popular among customers who want to improve their cardio health, lose weight, or train for a race.
• Weight Machines:These are machines that use weights or resistance to build strength and muscle. Weight machines are popular among customers who want to build strength, increase muscle mass, or tone their bodies.
• Dumbbells and Kettlebells:These are hand-held weights that are used for strength training exercises. Dumbbells and kettlebells are popular among customers who want to build strength, increase muscle mass, or tone their bodies.
• Yoga Mats:These are mats that are used for yoga and other floor exercises. Yoga mats are popular among customers who practice yoga, pilates, or other floor exercises.

1. For each line of business and related product, describe the actual or anticipated customer base and their specific needs with respect to the types of products offered by the company.

Gorilla Fitness' actual or anticipated customer base is comprised of gym and fitness center owners, individual consumers, and corporate clients who may require gym equipment for their employees. These customers have specific needs with respect to the types of products offered by Gorilla Fitness, such as durability, size, and budget. For example, gym and fitness center owners need durable and long-lasting equipment, while individual consumers often look for products that are space-saving and budget-friendly, For example:

Individuals may be interested in purchasing equipment for their home gym so that they can exercise on their own time and at their own pace.

Businesses may be interested in purchasing equipment for their fitness centers so that they can offer a variety of equipment to their clients.

Customers may have different preferences when it comes to the type of equipment they are looking for, such as weight machines for strength training or treadmills for cardio exercise.

Gorilla Fitness's products are designed to meet the needs of their customers by providing high-quality equipment that is durable, reliable, and easy to use. The company's products are designed to be accessible to a wide range of customers, from beginners to experienced athletes.

1. Describe the specific steps taken by the company to identify customer needs, including interviews, market surveys, research or beta testing.

1. Getting Consumer Information

Businesses should engage their customers and solicit open input on their product offerings, customer service, and other issues. Managers can conduct surveys through many channels, depending on the sort of business: email, phone, website pop-up, text message, and checkout.

Open-ended prompts allow customers to go into greater information while corporations can utilise multiple choice and number rating inquiries. By looking up brand mentions on social media and online review sites, managers may also get unasked-for feedback.

2. Information is sorted by customer needs

The free text data must now be arranged into organised groupings based on the requirements of the customer. Any paper documents should be converted to digital versions so that everything is stored in a single database. Companies can use machine learning-based data management software to automatically categorise the inputs or manually tag each piece of information.

Companies can use software to develop customised models that categorise information according to their standards. To establish data silos, the solution, for instance, might examine each input for keywords like cost, dependability, and security.

3. Analysis of Data

When the data has been categorised, management may examine each requirement separately. Information can be examined with, depending on the industry:

Sentiment Analysis: Using this technique, input is categorised as good, negative, or neutral to determine the customer's overall perspective.

Keyword extraction: In order to enhance the features and quality of products, firms use the keyword extraction approach to identify certain terms in customer reviews.

4. Visualizing Data

Data may can be overwhelming and difficult to comprehend. Managers may simplify complex topics for executives by utilising visualisation tools like charts and graphs.

For instance, a line graph demonstrates how opinions of a product among consumers have changed over time as the company has made changes. On the other hand, a bar graph can demonstrate how consumers felt about specific goods at a certain period.

5. Matching Product and Service Offerings to Consumer Requirements

Following the extraction of the pertinent insights, businesses have the knowledge required to make the required modifications. Others may need to concentrate on improving their customer assistance while some firms may need to introduce new features to their goods.

1. For each identified customer base for the company's products, describe the company's distinctive competence or competitive advantage (i.e., why will those customers purchase the products of the company as opposed to those offered by competitors or substitutes).

1. Fitness Is Not Only at the Gym

The foundation of the Whole Fitness Experience is the notion that fitness genuinely exists on a continuum and goes beyond just working out in the gym. A total fitness experience takes into account each person's physical, emotional, educational, and inspirational demands. It takes into consideration social and responsibility elements of being fitter as well.

Fitness is defined differently by different people and throughout time. But what we've found is that a Complete Fitness Experience needs to be customised to meet the way each individual is driven to reach their fitness objectives. When you tailor someone's fitness experience, it must include ongoing communication with fitness experts in addition to giving them access to tools and programmes that can adjust to their changing fitness levels.

2. Exercise should be empowering, simple to obtain, and enjoyable.

For people to reach their exercise goals, the finest fitness solutions link clubs, trainers, and members. Wearable and mobile solutions that are simple to use, information-rich, and can be effortlessly incorporated into your daily routine are required if you want to be constantly in touch with your members.

It's critical to give:

• Content for instruction and exercise Live classes, recorded lessons, and online personal training.
• Plans for individual training.
• Planning a diet.
• Coaching for habits and a lifestyle.

Using features like fitness challenges, community groups, in-app text and video chatting, and milestone badges, people also want to increase their accountability and social incentive.

3. The game is altered by wearable gear.

Because it's simple and quick for users to share their fitness data with a fitness expert, automatic data gathering through telemetry is a game-changer for the fitness sector. This significantly raises accountability.

Among the telemetry data are: cardiovascular system, elapsed time while exercising, VO2 max, Powered by Pace monitoring and GPS distance, Energy expended, Performance moreover, telemetry may be combined with additional data from scales, body composition sensors, sleep patterns, linked equipment data, and other sources in wearable and mobile apps.

Users have the option to make modifications in real-time or set up programmes that they may later share with their social network. A Whole Fitness Experience necessitates skilled fitness professionals to communicate with their members rather than measuring your progress and responsibility through AI chatbots.

4. Fitness Connected vs. the Complete Fitness Experience

When thinking about the idea of linked fitness, equipment that is technologically enabled often refers to everything from smartwatches to workout equipment. With connected fitness technologies, you can: Entertainment (Netflix, iFit, follow-the-screen) (Netflix, iFit, follow-the-screen), Gamification (Zwift, Leaderboards, KoM, PR, Badges) (Zwift, Leaderboards, KoM, PR, Badges), Education (how-to hints, facts, auditory cues) (how-to tips, information, audio cues), Connected fitness, in other words, keeps individuals interested and encourages them to keep improving.

A Whole Fitness Experience has connected fitness as one of its components. Members may measure their progress and maintain accountability with the aid of the equipment, which also gives telemetry data. An overall fitness experience is more extensive. For members to get longer-lasting effects more rapidly, a Whole Fitness Experience incorporates nutrition and regular habit-forming exercises.

1. For each product, describe the profitability structure, including anticipated sales price, costs and profit margins.

1. Expenses/Costs

Your costs are also divided into Fixed Costs, which are those that never change, like rent, Variable Costs, which change based on the activities of your business, like advertising or equipment repair, and Semi-Variable Costs, which change somewhat, like power bills, taxes, payroll, etc.

It's crucial to keep track of your cost payments' amounts, due dates, and how they relate to your income. To ensure that you can afford to continue in business, every gym owner should aim to reduce debt while boosting revenue. Theoretically, it is impossible to completely pay off your debt while running a business since you must continue to pay monthly overhead costs like rent, employee salaries, power, and water.

Rent: $2,500/Month Utilities: $500/Month Equipment: $1,500/Month Payroll: $2,500/Month Insurance: $250/Month Software: $200/Month Total Month's Expenses = $ 7450

1. Anticipated sales/ Revenue

Understanding your income is a fundamental requirement, but depending on your goals, you may track revenue in a highly detailed manner. Gross Revenue is the total of all revenue obtained by ACH, credit card, and other forms of payment plus any modifications.

For instance, when you provide a member a refund, the associated processing charges are refunded to you and recorded as adjustments. Net Revenue is what's left over after deducting any fees and refunds you've given out from your gross income.

In order to compute your profit and evaluate whether or not your firm is lucrative, you must comprehend your income. Additionally, identifying the regions of success and failure in your organisation depends on knowing how your revenue is distributed throughout the board.

Membership Revenue: $35,504.23/Month Personal Training Revenue: $5,000.00/Month Drop-In Revenue: $4,000.00/Month Retail/Merchandise Revenue: $8,000/Month Events Revenue: $6,000/Month Total Month's Revenue = $58,504.23

1. Profit Margin

The amount of money left over after all costs and debts have been taken into account is referred to as profit, often known as net profit or your bottom line. The difference between what you earn and what you spend running your firm is your profit, or your financial gain. Similar to recognising your income, understanding your profit is a fundamental skill that you can hone.

Every business owner has to understand whether or not their operation is lucrative. Your firm is successful if you are making a profit. If you generate a net profit, you ought to think about reserving money for potential future company costs. Also, as soon as your profit margin is large enough, you may afford to expand your gym by adding new trainers and equipment. If your firm isn't currently profitable, you might want to think about looking into other revenue opportunities.

$ 58,504.23 (Net Revenue) $7,450 (Expenses) =$51,054.23 Profit

$51,054.23 (Profit) / $58,504.23 (Net Revenue) = .88 (x 100) =88% Profit Margin

Part 3- Industry and Market Analysis

1. Describe the industry or industries in which the company is active.

Gorilla Fitness is active in the fitness and gym equipment industry. This industry includes the design, manufacture, and distribution of equipment used in gyms, fitness centers, and individual homes for strength training, cardio exercise, and other fitness activities.

The fitness and gym equipment industry are a global industry that has experienced significant growth in recent years, driven by factors such as rising health consciousness, increasing disposable incomes, and a growing focus on healthy lifestyles. The industry includes a wide range of products, such as treadmills, ellipticals, strength training equipment, free weights, and accessories such as fitness mats and resistance bands.

The industry is highly competitive, with many established players competing for market share. The largest companies in the industry include global brands such as Life Fitness, Technogym, and Precor. However, our company Gorilla Fitness, can differentiate themselves through product innovation, quality, and customer service.

Overall, the fitness and gym equipment industry are a dynamic and growing industry that offers opportunities for businesses that can deliver high-quality products and services that meet the needs of consumers and businesses in this space.

1. Describe the size of each industry and anticipated growth patterns over the next five to tenyears.

The fitness and gym equipment industry are a global industry that has experienced significant growth in recent years and is expected to continue growing over the next five to ten years.

According to a report by Grand View Research, the global fitness equipment market size was valued at $12.8 billion in 2020 and is expected to grow at a CAGR of 3.6% from 2021 to 2028. The report also notes that the increasing health consciousness and growing number of fitness centers and health clubs are expected to drive the growth of the market.

The global gym and health club industry is also expected to grow over the next five to ten years. According to a report by Statista, the global health club industry had a market size of $96.7 billion in 2020 and is projected to reach $105.8 billion by 2024, growing at a CAGR of 3.8% from 2020 to 2024. The report notes that the increasing awareness about health and fitness, rising disposable incomes, and growing urbanization are the key factors driving the growth of the industry.

The global pandemic has also had a significant impact on the fitness and gym equipment industry, with many people turning to home workouts because of gym closures and restrictions on outdoor activities. This trend is expected to continue in the coming years, leading to increased demand for home fitness equipment.

Overall, the fitness and gym equipment industry and the gym and health club industry are expected to continue growing over the next five to ten years, driven by a range of factors such as increasing health consciousness, rising disposable incomes, and growing urbanization. This presents opportunities for our company Gorilla Fitness to grow and expand their market share.

1. Identify the major industry segments that would have an interest in the company'sproducts.

As a manufacturer of fitness and gym equipment, Gorilla Fitness's products would be of interest to a variety of industry segments, including:

Fitness Centers/Gyms: This segment includes commercial gyms, health clubs, and fitness centers that offer equipment for members to use. Gorilla Fitness's products would be of interest to fitness centers and gyms looking to purchase new equipment for their facilities.

Home Fitness: With the rising popularity of home fitness and the increasing demand for home gym equipment, this segment is a growing market for fitness and gym equipment manufacturers. Gorilla Fitness's products would be of interest to consumers looking to set up a home gym or fitness space.

Hospitality: Hotels, resorts, and other hospitality businesses often have fitness centers or exercise facilities for their guests. Our products would be of interest to these businesses as they seek to provide high-quality equipment and amenities for their guests.

Corporate Wellness Programs: Many companies are investing in corporate wellness programs to promote employee health and wellbeing. Gorilla Fitness's products would be of interest to companies looking to provide their employees with access to fitness equipment and resources.

Rehabilitation: Physical therapy clinics and rehabilitation centers often use gym equipment as part of their treatment plans. Our products would be of interest to these businesses as they seek to provide their patients with high-quality equipment for their therapy sessions.

Educational Institutions: Educational institutions such as universities and colleges often have fitness facilities for their students and staff. They may purchase fitness equipment such as treadmills and ellipticals to furnish their facilities and provide a range of fitness options.

1. Describe the business types that will likely be the major customers for the company's products.

Gorilla Fitness is a company that specializes in fitness products and equipment, and as such, its major customers are likely to be businesses that operate in the fitness industry. These businesses may include fitness centers, gyms, and personal training studios. According to research by IBISWorld (2021), the fitness industry in Italy has been growing in recent years, driven by an increasing focus on health and wellness among consumers. This growth is expected to continue, with the industry projected to generate over 7 billion in revenue in 2021 alone. As such, there is likely to be a significant demand for fitness products and equipment, making fitness-oriented businesses an important target market for Gorilla Fitness.

1. Identify and describe any other major demographic or technological trends in the industry.

In addition to the growing demand for fitness products and equipment, there are several major demographic and technological trends shaping the fitness industry in Italy. Firstly, there is an increasing focus on wellness and self-care among consumers, with many people seeking out activities that promote mental and physical health. This has led to a rise in demand for boutique fitness studios that offer specialized classes such as yoga, pilates, and meditation.

Secondly, there is a growing interest in technology-enabled fitness products and services. This includes wearable fitness trackers, smart fitness equipment, and virtual fitness classes. These technologies allow consumers to track their progress and access personalized workout plans, which can help to improve motivation and engagement.

Finally, the COVID-19 pandemic has had a significant impact on the fitness industry, accelerating the adoption of digital fitness offerings as more people have had to workout from home. This has led to an increase in demand for home fitness equipment and virtual fitness classes, and many fitness businesses have had to adapt their business models to include digital offerings.

1. Describe the actual or potential impact of regulatory requirements on the company's products.

The fitness industry is subject to a range of regulatory requirements that can impact the sale and distribution of fitness products and equipment. In Italy, fitness equipment must comply with the European Union's CE Marking requirements, which ensure that products meet certain health, safety, and environmental protection standards. Failure to comply with these requirements can result in fines or other penalties.

Additionally, the Italian government may impose taxes or other fees on fitness businesses, which can impact the pricing and profitability of their products. For example, in 2020, the Italian government introduced a "sugar tax" on sugary drinks, which could potentially impact sales of sports drinks and other similar products.

However, it's worth noting that regulatory requirements can also create opportunities for companies that are able to meet or exceed these standards. Compliance with CE Marking requirements, for example, can be a valuable selling point for fitness equipment, as it can demonstrate a commitment to quality and safety.