Company and Product

Description
3.1 Company Description
3.2 Opportunity
3.3 Competitive Advantage
3.3.1 Price
3.3.2 Brand Image
3.3.3 Location
 3.1 Company Description

1. It will be licensed under the CrossFit

2. It will first be opened in five locations across the London area.
3. The gyms will utilize the training methodology developed by CrossFit
4. CrossFit training does not specialize in any particular type of fitness
but rather enhances fitness in all areas (endurance, stamina,
strength, flexibility, speed, etc.).
5. A Crossfit-certified trainer leads all workouts which are performed in
a community atmosphere.
3.2 Opportunity

The CrossFit training methodology is

experiencing an explosion in popularity. Over
the past five years, the total number of Crossfit
affiliates has grown from 8 to over 1700 and
total revenue has increased at a rate of 350%
per year.
 CrossFit has been successful for a number of reasons:-

• Its science
• Its competitive nature
• Its different
• Its community atmosphere
• Its sex appeal
 All CrossFit affiliates are independently owned and operated.

 Affiliates must pay a $2000 licensing fee to CrossFit and then are free to
operate as they please.

This means that individual affiliate success has been limited to a local area,
preventing any affiliates from expanding and becoming dominant on a national
or international level.

 CrossFit many affiliates suffer from inefficient cost structures that result in
expensive membership fees ($100-$225 per month).
 3.3 Competitive Advantage

Take advantage of a loophole within CrossFit’s policy and will allow

CFI to expand into an international chain of CrossFit gyms.

“One CrossFit box, one unique affiliate name, one person's name on
the License Agreement, one website with the CrossFit licensed
name that pertains to one affiliate. If [one] choose[s] to link to other
sites or engage in reciprocal memberships or take on partners, that
is your prerogative and not a part of your affiliate's relationship with
CrossFit, Inc.”

CFI will be able to reduce costs by taking advantage of economies

of scale by purchasing equipment in bulk, implementing efficient
and universal design for our gyms, and limiting overhead.
Price
• Lower costs will enable CFI to have a competitive advantage over
other CrossFit .
• CFI believes that lower rates will greatly enhance the demand for
CrossFit .

Brand Image
• CFI will also be able to develop a cohesive brand image with
uniform experience.
• There is no quality control among the existing CrossFit network .

Location
• 1500 affiliates in the United States, only 32 CrossFit gyms exist
throughout all of the UK.
• CFI sees itself positioned at the birth of an exploding market.
IV. Marketing Plan

• 4.1 Market Overview

• 4.2 Customers
• 4.3 Marketing and Marketing Strategy
• 4.4 Pricing
 Market Overview

 2010 FIA State of the UK Fitness Industry report,

there are 5,885 fitness facilities throughout the UK
and 12 percent of the UK population (approximately
7,500,000 estimate) .
 UK fitness industry is estimated at £3.8 billion, a 1%
increase on the previous 12month.
 There are only three active Crossfit affiliated gyms in
greater London.
 We plan to open five gyms in mainly north, east,
south, and northeast, and Wimbledon.
 Customers
• Our primary customers are young athlete types, gym-goers and
those crossfitters.
• Secondary customers are those who are new to workout .
• The tertiary targets are anyone over 40 year olds.

Marketing and Marketing Strategy

• Lower the membership fee with the similar or even better quality
of service by introducing the idea of economies of scale.
• For main marketing plan, we will advertise locally such as on local
magazines as well as on local newspapers .
• We provide free trial sessions for new customers.
Pricing
• The idea of price discrimination as our pricing
strategy .
• We will introduce student & youth membership,
ladies membership, and senior membership,
and so on. All of these membership fees will be
lower than other Crossfit gym as well as the
traditional fitness clubs.
• Provide discount to certain number first-come
consumers in order to spread out brand name
effectively.
V. Operation Plan

• 5.1 Overview
• 5.2 Mission and Vision
• 5.3 Location
• 5.4 Facilities and Equipment
• 5.5 Insurance
• 5.6 Suppliers
Overview
• To create a personalized environment to pursue their fitness
goals.
• The gyms will provide hour long classes throughout the day in
which members perform the “Workout of the Day” (WOD).
• CrossFit International will not only focus the urban
professionals but also on young mothers.

Mission and Vision

• Vision: To create awareness about healthy lifestyle and its
benefits
• Mission: To provide strategies and training programs related
to health care
Location
• These areas are upscale and affluent and have a number of
health clubs, but none that serve women only. Currently, there
are 80,000 residents living in these areas.
• We will be occupying roughly 2,200 to 3,000 square feet of light
industrial space. 

Facilities and Equipment

• Free weights including dumbbells, barbells, Cable Cross over,
Lat Pull Down, Cables, Weight Benches, Russian Kettle bells.
• Cardiovascular training related equipment ,elliptical trainers
and TV displays.
• Audio-visual displays to keep exercisers entertained during
long cardio workout sessions
Insurance
• Fully covered with proper gym insurance.
• In addition to our membership, which will cover
any personal injury accidents, and those
occurring due to wear and tear of the equipment.

Suppliers
• Companies which provide fitness equipments of
international standards .
• They will be bought on a purchase cum fitting
contract.