實力中心：舉重健身房 - 政大學術集成

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(1)國立政治大學商學院國際經營管理英語碩士學位學程 International MBA Program College of Commerce National Chengchi University. 碩士論文政治. 大. 立Master’s Thesis. ‧. ‧ 國. 學 y. Nat. er. io. sit. 實力中心：舉重健身房 n. StrengthaCentral: a Powerlifting i v gym l. Ch. n U engchi. Student: Liam Justin Quinn Advisor: Professor Glen Brodowsky. 中華民國一〇八年四月 April 2019. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(2) 實力中心：舉重健身房 Strength Central: a Powerlifting gym. Student: Liam Justin Quinn. 研究生：林崑. Advisor: Glen Brodowsky. 指導教授：白德傑. 國立政治大學. 學. ‧ 國. 立. 政治大. 商學院國際經營管理英語碩士學位學程. ‧. 碩士論文. y. Nat. io. sit. A Thesis. er. Submitted to International MBA Program. n. a. v. l C Chengchi University National ni. hengchi U. in partial fulfilment of the Requirements for the degree of Master in Business Administration. 中華民國一〇八年四月 April 2019. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(3) Acknowledgments The culmination of the IMBA Program, in my thesis, could not have been done without the encouragement and nagging love of my wife, Rose Chiang. For her I am thankful for always supporting me in my pursuit of higher education.. Secondly, I’d like to thank my parents, Daniel and Anna Rita Quinn, who have always. 政治大 explored as much. Good role models breed good members of society. 立. encouraged lifelong learning. Without their support I may have never challenged myself and. ‧ 國. 學. Next comes one of the IMBA faculty. Prof. Glen Brodowsky was gracious enough to be my. ‧. adviser and offered words of wisdom. I also thank him for fitting my oral defense in while he. er. io. sit. y. Nat. made his yearly visit to Taiwan.. al. Lastly, I’d like to thank the NCCU IMBA faculty for having the faith to accept me into their. n. v i n C hworking with myUclassmates. And I especially want to program. I enjoyed collaborating and engchi thank Ms. Li-chi Ho, who was the best mother and helper for all our student needs. If ever there is a question that a IMBA student has, surely Li-chi has the answer.. - Liam Quinn. i. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(4) TABLE OF CONTENTS 1. Executive Summary ............................................................................................................. 1 2. Introduction To Gym/Health Club .................................................................................... 3 2.1. POPULARIZATION ............................................................................................................. 3 2.2. INTERNATIONAL ............................................................................................................... 4 2.3. IN TAIWAN ....................................................................................................................... 4 2.3.1.. Penetration Rate ................................................................................................. 4. 2.3.2.. Further Data On Taiwan Market From Ihrsa ..................................................... 6. 2.3.3.. Average Monthly Gym Membership Cost......................................................... 6. 2.3.4.. 治政 Types Of Pay Models......................................................................................... 7 大立 I T ......................................................................................................... 7 N. AIWAN. 學. ‧ 國. 2.4. HEALTH. 3. Company: Strength Central................................................................................................ 8 3.1. WHAT IS THE COMPANY .................................................................................................. 8 3.2.1.. ‧. 3.2. LOCATION ........................................................................................................................ 9 New Taipei City Vs Taipei .............................................................................. 10. y. Nat. sit. 3.3. GYM SIZE & SPACE USAGE ............................................................................................ 10. er. io. 3.4. STAGE ONE PRODUCTS & SERVICES .............................................................................. 11. al. 3.5. STAGE TWO PRODUCTS & SERVICES .............................................................................. 13. n. v i n Ch 3.6. SHORT TERM GOALS ...................................................................................................... 14 U i e h n gc 3.7. LONG TERM GOALS ....................................................................................................... 16. 4. Marketing Overview .......................................................................................................... 17 4.1. DEMOGRAPHICS ............................................................................................................. 17 4.1.1.. Age & Gender .................................................................................................. 17. 4.1.2.. Types Of Members: ......................................................................................... 19. 4.1.3.. Income Level ................................................................................................... 20. 4.2. PRODUCT ....................................................................................................................... 20 4.3. PRICING.......................................................................................................................... 21 4.4. PROMOTION/ADVERTISING: ........................................................................................... 22 4.5. PLACE ............................................................................................................................ 23. ii. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(5) 5. Competition ........................................................................................................................ 24 5.1. CROSS FIT COMPANIES .................................................................................................. 25 5.2. COMPETITORS ................................................................................................................ 26 6. Swot ..................................................................................................................................... 30 6.1. STRENGTHS .................................................................................................................... 31 6.2. OPPORTUNITIES .............................................................................................................. 32 6.3. WEAKNESSES ................................................................................................................. 33 6.4. THREATS ........................................................................................................................ 35 7. Operations .......................................................................................................................... 36. 政治大. 7.1. TEAM ............................................................................................................................. 36. 立. 7.2. SUPPLIERS ...................................................................................................................... 36. ‧ 國. 學. 7.3. PROJECT TIMELINE ......................................................................................................... 37 8. Financials ............................................................................................................................ 39. ‧. 8.1. INITIAL INVESTMENT & MONTHLY FIXED COSTS .......................................................... 39 8.2. INITIAL BALANCE SHEET ............................................................................................... 42. Nat. sit. y. 8.3. FIRST YEAR INCOME STATEMENT .................................................................................. 43. io. er. 8.4. FIVE YEAR INCOME STATEMENT.................................................................................... 45 8.5. CASH BALANCE ............................................................................................................. 47. n. al. i n U. v. 8.6. DEPRECIATION CHARTS ................................................................................................. 47. Ch. engchi. 9. References ........................................................................................................................... 48. iii. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(6) List of Figures and Tables Figure 1: Penetration Rate in 2017 ............................................................................................ 5 Figure 2: Average Monthly Gym Membership Cost by Country .............................................. 6 Figure 3: Strength Central vs Competition .............................................................................. 26 Figure 4: Product Positioning .................................................................................................. 29 Figure 5 Strength Central SWOT ............................................................................................ 30 Figure 6: Project Timeline ....................................................................................................... 38. 政治大. Table 1: Initial Investment ....................................................................................................... 39. 立. Table 2: Monthly Fixed Costs.................................................................................................. 40. ‧ 國. 學. Table 3: Initial Balance Sheet .................................................................................................. 42 Table 4: 12 Months Income Statement .................................................................................... 44. ‧. Table 5: 5-year Income Statement ........................................................................................... 46 Table 6: Cash Balance at Years End ........................................................................................ 47. sit. y. Nat. Table 7: Equipment Depreciation ............................................................................................ 47. io. n. al. er. Table 8: Remodeling Depreciation .......................................................................................... 47. Ch. engchi. iv. i n U. v. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(7) 1. Executive Summary The fitness industry has been having many happy years. Clubs across the world are constantly opening up and the number of gyms and options available have never been greater. No longer are people stuck with basic gyms that lack direction and don’t fulfill their desires. Nowadays, there are almost too many choices and people have to choose what is best for them at the time, as life and wants change. And often that choice changes due to many factors. However, there is one common theme that is at play: more gyms are opening and more people are going. People usually cite health as the number one reason they do so. Whether it be because they. 政治大 doesn’t matter, gyms are needed to match their needs. And the needs are drastically changing. 立 are more educated about the need for exercise or because they simply enjoy the challenges; it No longer are simple gyms with machines and weights cutting it.. ‧ 國. 學. The two types of gyms that have found the greatest growth, according to the 2018 Piper. ‧. Jaffrey Report, are HVLP (High Volume Low Price) and Boutique Gyms. They vastly differ. y. Nat. on price. The HLVP segment is a very inexpensive gym that may charge as low as. sit. $300nt/month, whereas the boutique gyms are more expensive, maybe $6000nt/month, and. al. n. boutique gyms can vary considerably in what they offer.. Ch. engchi. er. io. joining a group class can cost $1000nt/session. However, what really stands out is that the. i n U. v. Choices range from boxing, yoga, cycling, cross fit, among many others. Of all the types out there, one that doesn’t have a large following, but is popular, is powerlifting gyms. These gyms are growing in popularity in the U.S., partly due to awareness, personal trainers, and specialized classes. This is where the business plan for Strength Central comes in. There is no other gym in New Taipei or Taipei that focuses purely on power and strength. By developing a new business that doesn’t exist yet we hope to create a new culture of strength training in Taiwan.. 1. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(8) Strength Central is a gym designed to teach and educate gym goers how to become strong while doing so safely. The gym is designed to allow for 20 people to be doing lifts at one time. It not only has a great environment, but also has the perfect equipment for doing the key lifts. Strength Central is a gym designed to meet the needs of those that have an inner drive for pure strength. Members are after the challenge for lifting more weight and hitting new goals, then setting new goals, and repeating. It’s almost like training for the Olympics. Everyone is trying to do the most that they can in one single, powerful movement.. 治政 Strength Central is a gym planned for people to train in 大 one of the five (or so) weightlifting 立 movements. Most gyms are not designed for people to train as such. Even popular gyms, like ‧ 國. 學. World Gym in Taiwan, only offers 3-5 stations for people to train in heavy lifting. Then there are other gyms that have some of the tools but lack the culture of a true powerlifting gym.. ‧. A true powerlifting gym needs the right environment, training, classes, equipment, and people. Nat. sit. y. in order for all to thrive. With a gym that has a more focused goal, powerlifting, Strength. n. al. er. io. Central can also be successful in Taiwan because we are one of the first movers.. Ch. i n U. v. Thus, Strength Central can safely improve the health and strength of its members.. engchi. 2. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(9) 2. Introduction to Gym/Health Club 2.1. Popularization The gym/health club industry is booming across the world. People are more aware of the importance of their health and how regular exercise is necessary to stay fit. Companies also know that a healthy employee is an employee that doesn’t miss work. There are 6 reason for this growth in the U.S. health industry, according to Midgley in Forbes: Health Insurance Costs, Demand for Healthy Food, Wearables, Streaming Exercise Classes, Budget-friendly Gyms, and Outdoor Obstacle Races. And these reasons are not limited to the U.S. 1.. If a person exercises regularly, they will have fewer health complications and costs. 政治大 companies, such as Google 立 or HTC, have on-site health clubs. These clubs promote associated with treatment. Individuals and companies recognize this. Many. ‧ 國. 學. healthier employees and the IRS allows U.S. companies to deduct the cost of these gyms. (Stimson) 2.. The desire to eat healthier has also made people to seek out new ways to say healthy,. ‧. such as joining a gym.. Just like healthy eating, wearables also promote people to be more engaging and. y. Nat. 3.. er. al. v i n C h feeling, because where they can enjoy a communal e n g c h i U in communities people flourish, n. 4.. io. health.. sit. active in their health. It’s not uncommon to see people have a FitBit to track their Streaming an exercise class isn’t limited to the home. People also do it at gyms especially in Asia. 5.. Growth in gyms has mostly come from low cost gyms and niche gyms. If the cost. is. low enough, people feel like there is a low risk. And if something is specialized enough people are willing to pay more. 6.. Outdoor events such as Mud Runs or Crossfit have been extremely successful at attracting young people, and in turn they go to work out facilities to improve, train, and learn.. 7.. Going beyond Forbes’s findings and the U.S. market, we can see there are other reasons for the considerable growth in gym/health clubs. Namely, people are more knowledgeable about their health and have a desire to be healthy.. 3. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(10) 2.2. International In terms of financial standing, the fitness industry is doing quite well internationally. In the U.S. alone, the growth in health club revenue is outpacing GDP, according to Piper Jaffrey’s 2018 report. From 1996 to 2016, U.S. health club revenue grew 3.5x, whereas GDP grew 2.4x. That is, revenue went from $8billion USD to $28billion, in 20 years. Also, according to 2018 IHRSA (International Health, Racquet & Sportsclub Association) data, from 2009 to 2017, the U.S. experienced a 3.3% annual growth in gym members. At the same time, there was a 3.1% annual growth in gym goers.. 政治大 And when we extend into other international markets, we see similar growth. In Europe, there 立 was 3-4% annual growth in gym members, while a 3% annual growth in the number of gyms.. ‧ 國. 學. (“European Health”). ‧. 2.3. In Taiwan. y. Nat. The Sports Administration of the Ministry of Education has been aggressively developing. sit. more sports minded, health conscious, citizens. This can be seen in the development of “32. er. io. civil sports centers and 390 sports facilities of all types will be built between 2010 and 2015.”. al. v i n Ch 2017 Summer Universiade. The government created programs to train more physical e n ghasc also hi U n. (“Sports Affairs”, p. 44), and hosting the World Games in 2009, Deaf Olympics in 2009, and fitness trainers. All in all, the effect is that resources are available for citizens to use as they are becoming more aware of the importance of physical fitness.. 2.3.1. Penetration Rate However, when the percentage of citizens that join a club, i.e. penetration rate, is viewed, the percentage is quite low in Taiwan compared to other Asian countries in developed markets. And even lower when compared to mature markets like in the U.S. or Australia. (Walsh) (Kufahl). In Taiwan, only 3 in 100 of all citizens has a gym membership, in 2016. That is far lower than other Asian countries (as seen in Fig. 1) and even more so behind the U.S. and Australia, which have a longer history of gym culture. The 3% rate is expected to rise with the advent of more gyms being available.. 4. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(11) Penetration Rate (as %) in 2017. 19.3 15.3. 立. JAPAN. SINGAPORE. 學. TAIWAN. 3.3. ‧ 國. 3. 政治大 5.85 5.8 HONG KONG. AUSTRALIA. U.S.. Source: http://www.healthclubmanagement.co.uk/health-club-management-. ‧. features/IHRSA-Asia-Pacific-Health-Club-Report/32770 ,. io. y. sit. 276-billion-industry-revenue-2016. Figure 1: Penetration Rate in 2017. n. al. er. Nat. https://www.clubindustry.com/studies/ihrsa-reports-57-million-health-club-members-. Ch. engchi. i n U. v. Taiwan’s health club industry is in a so called second tier market in Asia. According to the IHRSA, second tier markets are “..rapidly expanding…fitness facilities and instruction are increasing in demand and professionalization…with a growing concentration of leading players.” (Rodriguez) What is holding Taiwan’s health club industry from becoming a first tier one is the lower penetration rate compared to mature markets, and having less diverse choices in health clubs.. 5. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(12) 2.3.2. Further Data on Taiwan market from IHRSA Based on IHRSA data from 2011 to 2014 (“Latest U.S. Data”), (Charts in Appendix) -. 26% increase in gym-goers, from 460,000 to 580,000. -. 41% increase in fitness clubs, from 131 to 185. And there is an estimated 300 clubs in 2019.. -. 10% increase in fitness revenue income, US$333million to US$369million. 2.3.3. Average Monthly Gym Membership Cost. 政治大. Monthly Gym Membership in USD. 立. io. 20. y. Nat. 30. 36. sit. 40. ‧. 50. 53. 52. n. al. er. 60. 10. 76. 學. 70. ‧ 國. 80. 0 Taiwan. Ch. engchi. Australia. i n U. v. Hong Kong. Singapore. Source: https://topics.amcham.com.tw/2016/09/fitness-industry-benefits-taiwanesehealth-business-alike/ Figure 2: Average Monthly Gym Membership Cost by Country Clearly there is growth in the Taiwan health club industry. And the average monthly cost of $36usd ($1110nt) is affordable, as seen in the willingness for people to join gyms and the growth in the number of gyms. However, gym membership also seems to be lower than other countries because of income levels. Singapore has a GDP per capita of almost 2.4x that of Taiwan. (“Country Comparison”) And that is almost reflective of the 2.1x higher cost of gym membership in Singapore.. 6. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(13) On a side note, boutique gyms are priced higher than average, and Millennials with higher than average incomes also favor boutique gyms.. 2.3.4. Types of Pay Models The models for how Taiwanese pay for gym costs has changed drastically, in part from the defunct gym, Alexander. That gym had a pay up front model that seemed ok until the company went under and people were left with no gym and no financial return. As a consequence, the large sum payed up-front model isn’t used in Taiwan. Some typical pay structures include:. 學. ‧ 國. -. 政治大 Pay per visit. This model is common at government owned sports centers located 立 through Taipei and New Taipei City. People pay based on how long they stay or for a one-time visit. For example, gym costs are $50nt/hour, and pool usage is $110/visit.. -. Monthly fee. This is common in the big chain health clubs such as World Gym and. ‧. Fitness Factory. Members pay the monthly fee at start of month. Costs typically range. y. Point Card. Light Fitness has members buy points. They then use them for classes. sit. -. Nat. from $1000-$1400nt/month.. er. al. n. people.. io. whenever they want. And the card is exchangeable to others. Very popular with younger. 2.4. Health in Taiwan. Ch. engchi. i n U. v. Sadly, one of the reasons for the growth in the Taiwan health club market is due to the health of the citizens. According to 2016 Taiwan government data and a 2017 survey: 1.. Heart Disease is the #2 leading cause of death (behind cancer). And in 2016, 21,000 people died from cardiovascular disease. (Fulco). 2.. 76% of Taiwanese don’t exercise enough. According to the WHO (World Health Organization), 150 minutes of moderate exercise per week is recommended. (Fulco). 3.. Obesity rates in Taiwan vary by city, from 30-40% obese. New Taipei City has an obesity rate of about 38%, whereas Taipei is 33%. (Lin). 7. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(14) 3. Company: Strength Central Mission Statement Strength Central wants to be the first choice for all powerlifters in Taiwan. Dedicated to having the best team members, equipment, know-how, training, and competitions. We believe the core to success in strength training comes from doing it right, following a proven plan, and learning from the best.. 政治大. We are a gym that is owned by the people that walk in the door. The gym is a place where people can feel like it is their own.. 立. ‧ 國. 學. 3.1. What is the company. Powerlifting is at the root of the gym. This is a niche of exercise that aims at creating the. ‧. strongest lifts, that are seen in the Olympics and strongman competitions. These lifts are. y. Nat. usually: squat, bench press, deadlift, overhead press, snatch, and clean & jerk. They require an. sit. incredible amount of training in order to be done well, safely, and at maximal power. The. n. al. er. io. gym will be designed with equipment geared towards those lifts. Gym offers:. Ch. engchi. i n U. v. -. New gym equipment with focus on simplicity, hence no machines.. -. Large assortment of bars, weights, and racks.. -. Powerlifting classes that teach fundamentals.. -. Competitions to fuel goals.. -. Opportunities to train alongside fellow powerlifters and future Olympians.. -. Gym that feels like your own.. -. Cross fit classes.. -. New member training on how to use a gym.. -. Affordable personal trainer.. 8. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(15) 3.2. Location Location is the most important factor in how people select a gym. Obviously, there are different types of gyms available but most people choose one that is closer to their home and accessible. I too have to agree with this. Every time I moved, I had to find a new gym. In some cases, it was the same company, but different location. Nonetheless, I always chose a gym that was easy to get me in the door. I didn’t want to struggle with parking or have to drive too far. Strength Central is easy to get to. The gym will be within a 3-minute walk of Xinpu MRT. 政治大 direct competition in gyms makes it even more ripe with opportunity. 立. Station in Banqiao. Banqiao has shown a lot of promise in infrastructure, and the lack of. ‧ 國. 學. Not only is the first mover on our side, but also the area is very accessible by scooter or bus. At the same time, it isn’t as congested as Banqiao MRT Station. Members can easily find a. ‧. parking spot for their scooter within sight of our doors. Also, buses are plentiful.. y. Nat. sit. Highway 3 passes thru Xinpu MRT Station and continues into Taipei city, so motorists living. er. io. in Taipei have easy access to the location via car. Xinpu Station is also at an intersection of. al. Highway 3 and Expressway 64. Thus gym-goers coming from west of Taipei and southeast of. n. v i n Xinpu have quick and easy access four public parking lots are Ctohthe gym. Additionally, U i e h n c parking which is available at random. gstreet within a 5-minute walk of the gym, as well as. In the next year or two a new MRT line will pass through Banqiao MRT creating even more traffic in Banqiao. At that point, people living in Yonghe, Zhonghe, and Xindian will have easy access to Banqiao via MRT. And Xinpu is only one stop away from Banqiao Station, so if people are coming by MRT they only need to make one more stop. Last, Banqiao Station has many trains, non MRT routes, that bring people into the city; much like Taipei Main Station. This could serve to bring in more people that may view Banqiao as too far away or inaccessible.. 9. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(16) 3.2.1. New Taipei City vs Taipei Having a business in New Taipei instead of Taipei has one big advantage, lower property costs; hence, lower rent. Having lower rent in our business model will help to turn a profit faster and allow for future expansion. Data from Sinyi Realty in 2016, property values (nt/ping): (Liu) -. New Taipei City: $358,000. -. Taipei:. $546,000. Further example of a region in each city:. 治政 $475,000 $724,000 大. -. Jiangzicui (rezoned, next to Xinpu):. -. Zhongshan (Taipei):. 立. ‧ 國. 學. Overall, by spending less in rent, when compared to in Taipei, the decision to choose a larger location was concluded. A 50 ping property, in Banqiao, near Xinpu MRT Station was found.. ‧. And the lower costs allows us to provide more space.. y. Nat. sit. 3.3. Gym Size & Space Usage. n. al. er. io. One of the tougher choices was to decide on an acceptable size that the gym would need to. i n U. v. be. Based on the number of expected clients, and the limit, it was concluded that the gym would need to be 45-50 ping.. Ch. engchi. Industry standards, (“5 Basic Rules”), dictates that a gym needs 10-12sq feet per member, for the workout area. That translates to about 3.3 people per ping. And assuming 100 members, that works out to 30.3ping. But there must also be adequate room for showers, changing rooms, front desk, and office. So, 45-50 ping is a safer bet. Luckily a space was found with 50ping. On site there is no dedicated office room as all space is open and used by gym-goers except for the front desk area. And there will be male and female changing rooms.. 10. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(17) With a total size of 50ping, 35ping will be devoted to powerlifting stations with space in the middle for walking. A total of 20 stations can be used at one time. A typical weightlifting bar is 2.2m long, and extra space is needed to add weights. So, an average station must be at least 3m wide, and 2.2m long. Extra space is then devoted to space to place weights and a lane in the middle to do walking exercises. The men’s and women’s changing rooms will be relatively small, only 10ping. It is enough to accommodate 5 people, in each, at a time.. 治政大 very open, no excess pillars, the 5ping space will feel adequate. 立. The remaining 5 ping is dedicated to the front desk and entrance area. Since the rental space is. ‧ 國. 學. 3.4. Stage One Products & Services. Membership: All new businesses need customers. So, priority one will be in advertising and. ‧. growing the member base. The members will be allowed to have access to all of the equipment at the gym. They will pay a monthly fee or a 3-month fee in advance. What they. sit. y. Nat. get: -. Able to join a class once a week that teaches a powerlifting movement. al. v i n C hThose that pay monthly The membership has two levels. will be charged $2500nt/month. engchi U n. -. er. Unlimited use of the facilities. io. -. And those that pay every 3-months will be charged $2200nt/month. Short-term Membership: More expensive but for members that want to try the gym out without feeling commitment. Also, for people that may have a short time in Taiwan and want to train. Most gyms charge a high one-time fee. Take World Gym, the gym charges $360nt/day or $3500nt/month, for non-contract members. Strength Central will be priced slightly higher, at $400nt/day; and will offer one month (no contract) at $4000nt/month. Personal Trainers: People are motivated for different reasons, and the popularity of personal trainers helps to keep people returning to gyms. On staff there will be personal trainers that have qualifications beyond a piece of paper. They will be people that have and do train for. 11. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(18) powerlifting competitions. At Strength Central, we feel it is best that the teachers have a lot of personal experience. So, they can teach the novice or intermediate lifters what to do, how to eat, how to avoid injuries, and keep them abreast of new training techniques and programs. Cost per hour will be $1000nt/hour. That is far below the prices at most gyms. (Prices are usually starting at $1500nt/hour, or $1000nt/hour if you buy 10 sessions at World Gym) Why so much lower? To get more people using trainers, and be more frequent; hence, improve retention. Powerlifting Plans: A simple excel document and booklet can be created to guide lifters. 治政 products on the market but made in a simple format and大 sold at a low price. It’s more of a one 立 size fits all starting point. They are sold for $200nt. through what a typical plan entails. Details will be mostly based on a collaboration of similar. ‧ 國. 學. Competitions: This is where we hope to get the most buzz for our business. We want to stand out as a name people recognize. The gym can exist as a name that everyone in the exercise. ‧. community knows in Taiwan without being a chain gym, like World Gym. By having competitions that are open to the public we plan on attracting new members while gaining. sit. y. Nat. reputation. -. When: once a month.. -. Who: for members and nonmembers. Members get priority. Age and weight groups.. -. What: Each competitor will choose 3 lifts.. -. Why: grow awareness of gym and allow members to challenge themselves.. n. al. er. Where: at our location on weekends.. io. -. Ch. engchi. i n U. v. By advertising and offering competitions we plan to increase the number of bodies that come in our door. The hope is that new people will get to see and experience the environment, while interacting with a small community of like-minded individuals. Friends and family can come and watch for free. Cross fit group classes: Famous power lifting gyms around the world have created a culture that can sustain itself. As for Strength Central, we want to speed up the progress and offer cross fit classes which are extremely popular with Millennials in order to grow our members.. 12. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(19) By having classes specifically for cross fit, we hope to bridge the gap between those that want to work out and those that train powerlifting. By learning proper form and techniques, we believe people will grow more interested in the powerlifting community. Although these classes will be limited. The focus is not on cross fit, rather it is something provided to add value to the powerlifting environment. Classes will cost $300nt per session.. 3.5. Stage Two Products & Services Merchandising: Established gyms are able to brand and sell their products through reputation and given the fact they are known name in the fitness industry. We intend to do the same -. 政治大 Clothes: t-shirts, shorts, and towels. 立 These products can be embroidered with our name.. -. Powerlifting equipment:. given enough time.. ‧ 國. 學. - weight belts, to protect back in heavy lifts - chalk, to improve grip and prevent slipping.. Nat. y. ‧. - straps for wrists, greater support in pushing movements. er. io. sit. - bands, which can be used for warmup.. al. Large events: These are to be held in gymnasiums or other outside venues. By leveraging the. n. v i n C h and have eventsUin a larger space. Fees to join will be gym name with events, we can expand i fitness companies to sell their e n g ctohother the source of revenue. As well, as renting space products alongside our event. Workout plans: This kind of product is popular when the source has a highly respected. reputation. Typically, these plans are said products of famous power lifters. Take for example a woman in the U.S., Stefi Cohen. She holds many records for her weight class and she sells programs that she has designed. Strength Central can sell programs created by local power lifters, including Olympians.. 13. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(20) 3.6. Short Term Goals -. Raise awareness: Hand out flyers in the local community and at sporting events. Create street signs advertising early bird special. Discount for early adopters.. -. Grow member base: Quickly and efficiently get new members into the gym. Have a free trial week.. -. Increase traffic on website and interactions on social media: To evaluate and improve upon our website and social media platforms. After the business has opened doors,. 政治大 increase the reach of our platforms. Engagement will be very important to keep our 立 social media healthy. shortly after the consultant will analyze our outreach goals and find ways for us to. ‧ 國. 學. -. Local advertising: Establish relationships with businesses in the area to help advertise. y. Nat. Company discounts: Find local businesses that are interested and willing to have. er. io. employees train at our facility at a group discounted rate.. al. v i n C hgym is meant to beUa gym that is designed by the Member reward program: The engchi n. -. sit. -. ‧. our gym. Mainly, to find places where we can distribute our flyers.. members and a place where member input makes changes. Too many gyms do not care or listen to members’ input. For a non-chain gym, that is shortsighted. We intend to have members create artwork and have access to the music in the gym. -. Attract and retain high quality members: Since collaborations is on the roadmap, we will find individuals that have talents in our area and offer free membership in return for helping the business grow, whether it be promotions or leading classes. Our hope is that by having highly talented lifters around it will help to lift the drive of members in our gym.. 14. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(21) -. Hire our first employee: Managing the daily operations may consume more time than thought, so having a dedicated employee to be the meet and greet person that will function as a salesman and member is a must. This person has to show dedication to the gym culture and be someone that is a powerlifter.. -. Crowdfunding events: Look into the possibility of using crowdfunding as source of income to put on events. In return donators will receive personal training on site or ability to compete in competition, like a registration fee.. 治政大 people/members through the initial investment will build the infrastructure that will bring 立 door. And to carry on growth, leveraging social media and networking will help to collect For a new business the most important goal is to make a profit and get out of the red. The. ‧ 國. 學. quality members.. The first year of operations will be focused on getting the number of members beyond the. ‧. breakeven point such that monthly expenses will be less than revenue by the end of the first year. Most of the first-year revenue will come from fees and memberships. Price tiers and. Nat. er. io. sit. y. programs will be setup to find ways to meet the need of the diverse members. Additionally, classes will be created to attract the Millennial cross fit crowd and other group. al. n. minded individuals.. Ch. engchi. 15. i n U. v. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(22) 3.7. Long Term Goals -. Sponsor charity events: Sponsoring events will help to promote our brand, while in the short term the venture may not seem financially sound. But given the goal of long-term view, it will make sense.. -. Improve financial health: In order to expand to a new location or create other locations the company must be generating a healthy stream of income that can be ongoing. The financial health will rely on finding novel ways to keep members coming back and giving us a high retention rate.. -. Create employee incentive program: Finding new ways to keep employees/members. ‧ 國. 學. -. 政治大 Increase market share: Collaborating with an outside marketing team to find new ways to 立 grow the brand and expand to a second location. ‧. motivated and willing to help the business without necessarily financial compensation. Possibly look into investor opportunities for members.. sit. y. Nat. al. er. Schedule a break: Leading the new company, expectations are that the company will be. io. -. n. daily life. However, at some point a trip will be in store to prevent burning out. -. Ch. engchi. i n U. v. Scale up the number of employees, especially personal trainers.. 16. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(23) 4. Marketing Overview 4.1. Demographics 18-60yrs old Male and female. Average member:. 25-35yrs old male. Lives in New Taipei, within 10km of gym. Pays $2200nt/month. 4.1.1. Age & Gender. 政治大. Powerlifting is a type of exercise that takes skill to be done safely and correctly. Also, certain. 立. ages are not ideal for it. The target age group will be 18-60yrs old. A big reason for this is. ‧ 國. 學. liability. We don’t want someone inexperienced, as well as being a kid, to try powerlifting movements. We want to make sure proper accountability falls on the member in the case of injury. Also, we aim to focus on ages up to around 60. We believe beyond this age individuals. ‧. should be more focused on stretching movements, and we again are concerned about injuries. y. Nat. that make occur. It is a known fact that around the age of 50 the body starts to lose muscle. It. er. io. sit. simply isn’t as easy to maintain the same size and quality of muscle.. al. n. v i n C h winners, sinceU2004, were 20-27yrs old. (“Could you”) Also, 80% of male medal engchi. Let’s take a look at Olympians, the average age for powerlifters in the Olympics is 24. (“Weightlifting and Age”) This only shows that the greatest lifts are typically in their 20s. Now, most gym-goers have no intention of reaching the Olympics, but still enjoy physical challenges. That is why there are weight and age divisions. At Strength Central, we will split competitors into age groups for competitions, so to make a fairer playing field. Training all age members will be a priority. At the same time, we expect the bulk of our members to be in the 20-40year old bracket. Boutique gyms typically cater towards people recently out of college, and extend into the 30s. Again, this is average, but we expect most member to fall in that criteria.. 17. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(24) Gender: Why do we expect more men than women? Culturally, Taiwanese women do not want to have noticeable muscle; and they train more for health. It’s rare to see a Taiwanese woman doing pure strength exercises like those that are trained in Strength Central. Yet, we do know women would like to compete and push themselves just as much as men do, so we will still accommodate women as well. We are a not a gym like Curves, chain gym (also in Banqiao), that only allows women. We believe women are important members and there has been a societal change where more women are using weights and developing muscles more so than in past. So, transitioning to. 治政大and Asian Games medalists; Taiwan that are women. Taiwan has had several Olympic 立 including Hsu Shu-ching（許淑靜）and Kuo Hsing-chun （郭婞淳）. So, we know there is power movements is not out of the question. There are many famous weightlifters from. ‧ 國. 學. a culture for women powerlifters.. ‧. We intend to use cross fit classes to bring in more women and in hopes of transitioning them. er. io. sit. Nat. Strength Central is a gym for men and women.. y. into powerlifters. In addition, through advertising we hope to get the message out that. al. Also, group-oriented gyms that offer functional fitness, like crossfit, have a near 50/50 split of. n. v i n women/men. So, knowing that women C h do have a strongUinterest in weightlifting Strength e more h i into the sport of powerlifting. g cwomen Central helps to bridge the gap and bring n. 18. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(25) 4.1.2. Types of members: -. Highly experienced powerlifters: This group of people have been practicing the power lifting movements for years. They know how to do movements and may use or have used coaching. They will be more focused on an environment that allows them to have all the equipment available to improve, and to exercise in a culture that can help them thrive.. -. Weightlifters: This category is very used to the gym and knows their way around. They may follow a training program and have a good sense of how to train. They also have interest on focusing on the main power lifts. And need a better suited environment to do. 政治大 we consider to be the most common. 立. so. They are more eager to have classes and learn how to improve their form. This group. ‧ 國. 學. -. Cross fit: The cross fit culture has been sweeping across the world and it started in popularity about 10years ago in the U.S. Since then Millennials have been the main. ‧. demographic of cross fit. So, these people will be in their 20s, and possibly 30s. They follow a lot of social media and enjoy group classes. They will be the group that we will. y. Nat. sit. be making cross fit classes for. At the same time, we don’t see them as cross fit. -. er. al. n. training too.. io. enthusiasts that must only have cross fit. We see them as someone who dabbles in power. Ch. engchi. i n U. v. Novice: This type of lifter isn’t experienced with the gym and wants to learn. They are interested in gaining strength. They need guidance to be shown how to do things correctly. The weekly classes will be geared mainly towards them. Teaching them how to structure a workout and how to do the lift correctly. These individuals we hope to turn into long term members by realizing this type of training is better than a traditional gym.. 19. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(26) 4.1.3. Income level Gym membership puts our company positioned between traditional gyms (World Gym) and Cross fit gyms. The price is not cheap but members will understand the value they are getting in our gym. We expect members to have an income of at least $50,000nt/month. That works out roughly to gym membership being 5% of their income; however, most people live with family so the cost of expenses, such as rent, aren’t as cumbersome. And gym membership falls under disposable income. As people have more money so do they want to live healthier.. 政治大 And, by falling in the category of boutique gyms, we can apply some tendencies, such that 立 people that go to these gyms have a higher than average salary. So, we expect members to. ‧ 國. 學. have a slightly higher salary in Taiwan.. ‧. 4.2. Product. y. Nat. As mentioned in the Company section, the product is a gym culture that wants to push people. sit. to achieve to personal records in powerlifting. In the powerlifting community, how much you. er. io. can lift in the deadlift, bench press, squat, and power clean are how you personally measure. al. v i n Callotted levels of experience, age, and time So, it’s best to look at making yourself U h e ntogtraining. i h c better than yesterday. n. yourself. It isn’t a direct comparison to others unless you make it, so everyone is at various. Creating a culture that pushes individuals, yet makes things possible, is important. The culture of the gym will be closely tied to the people that go to the gym. Those that work there and frequent it the most will feel like it is a part of their home. This gym isn’t a gym for anybody off of the street, and developing a close-knit group is crucial. The gym is intended for people to feel like it is a part of their home. They will learn, if they are new to a gym, how to respect and treat others. The hope is that many things will grow organically out of the gym, and they are hard to predict.. 20. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(27) Besides culture, a physical environment that can allow someone to improve on powerlifts is what the gym offers. And having a focus on that goal allows for new techniques and methods to be tried. In the old days, people focused on bars and weights. Now there are far more different styles of bars and apparatuses used. Strength Central will have bands and chains that can be used with bar movements to stimulate new interest in lifts.. 4.3. Pricing Contracts for members will vary. The frequency that members go to a gym varies. Some are regular, while others are once in a blue moon. So, Strength Central will have two payment. 政治大 Monthly payment: $2500nt/month 立 Every 3 months payment of $6600nt/3months. systems to match those needs.. ‧ 國. 學. -. First system: Monthly fees. ‧. Pay, at start of a period, and every 1 or 3 months. There are discounts for those that pay every 3 months. Both have to sign contracts. Contracts are inevitable and is assures the. y. Nat. sit. gym can retain members as well as have a more guaranteed revenue source. Also, many. al. er. io. gyms push for 3 or more years in a contract by offering a steeper discount. At Strength. n. Central we won’t make it so steep. You won’t feel as pressured to join a 2-year contract.. Ch. engchi. i n U. v. For people that pay monthly they must agree to a 1-year contract. Those that pay every 3 months, must agree to a 2-year contract. -. Second system: Point Card Members can choose to buy a point card, which is for joining group classes. The members put $XX dollars on the card and each time they go to a class an amount is subtracted. If they run out they can add more points to the card. Also, the cards have a 3month window in which they must be used. Four times a year a new card will be issued. This encourages members to join classes and they can be as frequent or infrequent as they want, but have to redeem the points in a time frame.. 21. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(28) 4.4. Promotion/Advertising: Flyers: As the gym is getting close to opening, flyers will be handed out offering free one time use of the gym. And after a week of business, no more of those flyers will be given out, although they may still be redeemed. Also, flyers will be handed out near the local MRT stations in the evenings at peak times of traffic. Businesses in the area will also have flyers for people to pick up themselves, such as at coffee shops or breakfast shops. Some businesses have already agreed to do so. Social Media: It takes time for social media platforms to gain traction.. 政治大 and connect people to others or businesses. Often small Taiwanese businesses don’t even 立 have a website, they instead use Facebook, since that is where people are used to using in. Facebook is the most popular platform in Taiwan for businesses, as it is easy to create a page. ‧ 國. 學. Taiwan, that is where information will be shared, such as gym times, events, promotions, pictures, and so forth. If there are any new scheduled events, they will be posted on Facebook.. ‧. Instagram is also popular but more for sharing photos or videos. The platform will be used to. y. Nat. sit. help showcase some of the people and possibilities the gym offers. Also, it is massively. al. er. io. popular with people in their 20s and 30s. Posts will be done once or twice a week; after all, it. n. isn’t Facebook. It is a platform to highlight people and accomplishments, or just buzz worthy things.. Ch. engchi. i n U. v. YouTube is the last main social platform. In the early days the gym won’t use it much but Instagram and Facebook videos will be linked to the YouTube account. In the future it will be more of a promotion tool to show events and what training is like at the gym. A website will come live for the gym once other platforms are connected. It will be used for a simple way to get straight to the company. And it’ll be used in the future for selling products.. 22. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(29) Other methods of Promotions: Word of mouth will be very important since it is a new business. Most potential customers won’t be aware of the gym in the early days. And those that are members will be extremely valued and treated well in order to get them to promote the company more. Trade shows that are fitness based will have a booth or collaborate with a brand to get a booth. Booth costs aren’t cheap but a new business needs to start making connections. Members that get other members to join will get a free hour of group training class.. 政治大 Most members will come from Banqiao but we expect the more experienced ones to be 立 4.5. Place. willing to travel farther to come to our gym. The gym isn’t like all the others and will attract. ‧ 國. 學. those that fit our niche.. ‧. As mentioned before, Banqiao does not have any gym that has powerlifting facilities and. y. Nat. cross fit classes. We will get a lot of people coming in specifically for that type of training.. sit. And we expect these people to live close to the gym. They will see it as the best place to go. er. io. more so based on location, and they don’t want to travel far to gyms that are in Taipei.. al. n. v i n Cthat The weightlifters and powerlifters, lots of experience, will be willing to travel far in h ehave ngchi U. order to meet their exercise needs. We expect them to even come from Taipei or even by train from Taoyuan.. 23. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(30) 5. Competition Before comparing our gym to direct competitors, that offer the most similar style of gym, attention must be directed towards the location that the gym will be in. Due to the high rent in Taipei city, and coupled with the fact that 10 cross fit gyms are there as well, New Taipei City is a better fit for Strength Central. And the most promising area in New Taipei City is Banqiao. Not only is the city developing business centers and housing, but also there is little competition for our gym. There are 14 gyms in Banqiao. Of those 14, none offer what Strength Central does. A couple of them cater. 政治大 (which has 3 locations in Banqiao, and another 6 within a 10km radius of Xinpu MRT.) Also, 立 towards women only or families. The larger gyms are the chain gyms, such as World Gym. there is 1 Fitness Factory, which is similar to World Gym. Other Banqiao gyms are very small. ‧ 國. 學. and traditional. They have similar equipment and seem to cater to all. Noticeably, even the smaller gyms have group classes and personal trainers, although none of those smaller gyms. ‧. have cross fit classes.. y. Nat. sit. Thus, out of all 14 gyms in Banqiao, none of them directly compete with Strength Central.. al. er. io. None of those gyms offer powerlifting equipment and training. Also, the group classes at. v. n. those gyms do not have cross fit. So, Banqiao is ripe with opportunity. We are a boutique gym and not a chain gym.. Ch. engchi. i n U. However, if someone were to live in Banqiao and was willing to travel far to a gym, what would be the competition?. 24. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(31) 5.1. Cross fit companies There are no companies that are powerlifting gyms. The closest gyms that could be used as such are cross fit gyms. There are several, 10, companies in Taipei that offer cross fit classes and have some of the equipment that could be used for power lifters. They have racks and spaces for the movements, and weights and bars that are needed for heavy lifters. However, they do not have platforms or chalk which are also necessary. Plus, they don’t have training classes for the power movement lifts. The environment in cross fit gyms isn’t what pure powerlifters would want. Power lifters. 政治大 annoying. The constant setting up and taking down of the area would be a turnoff. Power 立 lifters want dedicated areas to do lifts and the right equipment on hand. Also, there is the could try to convert a cross fit gym setup into one that they could use, but it would be. ‧ 國. 學. occasional specialty equipment that is not found in cross fit or other gyms. For example, one type of popular squat setup is a squat stand which is two poles connected at. ‧. the bottom with support. They are height adjustable, and are used by experienced lifters that know how to balance the weight. There are no cross fit gyms in Taipei or New Taipei that. y. Nat. er. io. sit. have them, but it is an essential part of powerlift training. Also, it saves space in a gym.. al. The cross fit companies all push group class training. Gym members can exercise by. n. v i n themselves at the gym but often there C h are classes beingUheld that might interfere with space, e andgevening c h i hours, 6-8pm. This could be a turnoff especially in the morning hours, 9-11am, n for people that want the environment but don’t always want to be part of a class. In addition, class focused gyms are very expensive. They need the space, equipment, and teacher in order to have a class. This increases the cost of membership. And when your main focus (as are these cross fit gyms) is group classes, then you can charge a lot for membership. Typically, the gyms charge anywhere between $4500-6000nt/month.. 25. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(32) 5.2. Competitors. Group Class focused. Peronal Trainer focused. No. No. Very Good. Yes. Yes. Yes. Good. Yes. Yes. No. Yes. Good. Yes. Yes. No. Yes. No. Good. Yes. Yes. $$$$. Yes. Yes. No. Good. Yes. Yes. $. No. No. Yes. Good. No. No. Price. Events. Cross fit classes. Traditional equipment. $$$. Yes. Yes. No. Far. $$$$. Yes. Yes. No. No. Near. $$. Yes. No. Fitness Factory. No. Near. $$. Feng Crossfit. No. Crossfit. Far. $$$$. Crossfit Ba Ke Si. No. Crossfit. Far. City Sports Centers. No. Powerlifting. Focus. Distance. Strength Central. Yes. Powerlifting. Crossfit Loga. Yes and No. Crossfit. World Gym. 立. Near. 政治大. Overall reviews. 學. ‧ 國. Source: Organized by this study. Figure 3: Strength Central vs Competition. ‧. World Gym (WG): Has the most gym locations in Taiwan, over 20 in Taipei and New Taipei alone. Since they have so many locations and offer a one shop style for all it is a. Nat. sit. y. competitor. Location is one of the most important factors when people choose a gym. And it. n. al. er. io. is no surprise that World Gym sites are typically in easy to get to locations near MRTs.. Ch. i n U. v. There are four World Gym locations in Banqiao, but none of them are located near Xinpu. engchi. MRT Station. By having Strength Central in Xinpu we have the edge on WG. WG has equipment that powerlifters could use, but they are very limited. Often there is only one or two places in the entire gym that a lifter could use. Powerlifters need a place to hold the weight before it is used in a powerlift movement. Also, I have trained there and know that sometimes I, and other members, have to wait until someone is finished using the racks. This is a major inconvenience for people that want to go in and get their work done, then leave. WG offers classes but they are more focused on shaping the body instead of building strength. Classes have names such as Body Tone. And there are no classes for cross fit. Additionally, there is no way to learn power lifting unless with an expensive one-on-one trainer.. 26. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(33) WG has an average monthly price of $1200nt, and is very popular with a large demographic of people. Ages vary from 18-80yrs old. Fitness Factory (FF): Is another chain in Taiwan and is comparable to World Gym. The two companies are each other’s competition. There are far fewer FF in Taiwan. Since the company is almost identical to WG, see the discussion on WG for FF for more comparison. Crossfit Loga: This is the main competition for Strength Central in terms of what the gym offers, regardless of location. (see Fig. 6). 治政大some training on their site for week for ‘Olympic Weightlifting.’ Subsequently, there is 立 powerlifting movements, but they are not exclusive. Cross fit gyms tend to teach parts of the. There is equipment and some space set up for powerlifting training. There is even one class a. ‧ 國. 學. powerlifting movements but do so with less stress on correct form and prefer volume over sheer power. They’d rather you do it 20 times in a row, rather than your one time best.. ‧. Powerlifters train for one explosive lift. The training styles are very different.. Nat. sit. y. The gym has social events and is very active on FB and Instagram. This is important in. n. al. er. io. reaching Millennials. We too will be focused on that.. Ch. i n U. v. A major difference is the cost. Membership cost is rarely once price, but quotes of. engchi. $5000nt/month, or more, are not uncommon.. In terms of equipment, Crossfit Loga is nontraditional and doesn’t focus on machines. Machines are found in traditional gyms. The gym is really centered around classes. There are classes at almost all times of the day. However, evenings seem to be their busiest time. They offer lots of traditional classes and cross fit too. They push personal trainers as well.. 27. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(34) Feng Crossfit: This gym is similar to Crossfit Loga, except they aren’t as big, don’t do events, and show nothing that suggest powerlifting training. Everything else is comparable to Crossfit Loga as mentioned above. Crossfit Ba Ke Si: This gym is comparable to Feng Crossfit. With one major difference. Crossfit Ba Ke Si has cross fit events sponsored by Reebok. Reebok is the biggest sponsor of cross fit games in the U.S. and the biggest brand in the cross fit industry. This company is important because they have established their relationship with a major sponsor. City Sport Center: Throughout Taipei and New Taipei there are sports centers built by the. 治政大 and dance rooms; to mention a swimming pools, basketball courts, badminton courts, gyms, 立 few. government to give the communities exercise facilities in all sports. These centers have:. ‧ 國. 學. Powerlifters would struggle in their gyms. I know because I have used several of their gyms. ‧. before. And I would describe them as a basic gym at great value. However, its not really possible to train powerlifting at one of those gyms. The equipment just isn’t enough or. er. io. sit. y. Nat. adequate.. The major selling point for the gym is the low cost. You don’t need to be a member to go.. n. al. Ch. i n U. v. You can pay by the hour, or a buy monthly pass. People that go to these gyms want a simple. engchi. workout and are more on the novice end of the spectrum in terms of experience in gyms. The following figure (see fig. 7) looks at types of gym on the X-axis and cost of membership on the Y-axis. Strength Central is positioned far enough away from the cross fit/functional fitness gyms. And at the same time priced far less than cross fit gyms but more than World Gym.. 28. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(35) 政治大. 立Source: Organized by the study ‧. ‧ 國. 學. Figure 4: Product Positioning. n. er. io. sit. y. Nat. al. Ch. engchi. 29. i n U. v. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(36) 6. SWOT STRENGTHS. WEAKNESSES. Powerlifting focused gym. Low starting capital. Small group classes compatible. Limited appeal. Location. Price. Experienced lifters are the trainers. Unknown brand. First movers. Size of gym. has no prior experience 政治Management 大 Class leaders are members New business unforeseen risks 立. Unique/Personal gym atmosphere Environment optimized exercises. High rent. ‧ 國. 學. Product Positioning Low maintenance costs. ‧. Accessibility. sit. y. Nat. Location. n. al. THREATS. er. io. OPPORTUNITIES Branding with companies. Ch. engchi. Partnerships with health products Target Markets. i n U. v Cross fit gyms Copycat gyms. Short term profitability. Seasonal trends. Stagnant economy. Create a unique product. Large number of gyms opening. Growth in Banqiao. Greedy property owner. Source: Organized by the study Figure 5 Strength Central SWOT. 30. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(37) 6.1. Strengths -. Powerlifting focused: The gym is in a niche that has some overlap with cross fit but stands apart from most gyms that are all inclusive. By finding a more specific demographic of gym member the company can succeed.. -. Small classes: By having classes, gym-goers can learn proper technique as well as train in a social atmosphere.. -. Experienced trainers: Trainers don’t get a certification or take a one-week class to. 政治大 proper training. Also, they must have a passion that goes beyond a 9-5 mentality. 立. become a trainer. Rather they must have devoted years to learning it themselves or with. ‧ 國. 學. -. First movers: Since the landscape is fairly open to this niche of gym, the first movers advantage helps to build momentum.. ‧. Gym atmosphere: The design on the wall, the music played, and the layout of the gym. y. Nat. -. sit. are all influenced by members. Most gyms set it up and don’t take recommendations. al. er. io. from members. Taiwanese gyms are very fixed in their ways. This powerlifting gym will. n. cater to the tastes of what people want. And they are encouraged to make suggestions and changes to the gym. -. Ch. engchi. i n U. v. Class leaders: Those that lead classes will receive free membership at the gym in exchange for their help. Also, by having members become teachers we are empowering the individual. In return, they will care more about the gym and its growth.. -. Environment: The gym has all the tools and equipment needed of powerlifting gyms. There are areas designed for specific lifts, such as a deadlift platform that allows for traction as well as absorbing the impact/sound of dropping the weights. Also, chalk is freely used throughout.. 31. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(38) -. Product Positioning: The gym doesn’t fit into a typical mold that has been seen before. More and more emphasis will be on creating strength lifts that are not at cross fit gyms. An example would be, boulders. They are extremely heavy balls that are picked up from floor and placed on a platform. Other equipment to will be specialized such as flipping 200kg tires.. -. Low maintenance costs: Most ongoing costs are associated with utilities and rent. The large initial investment in equipment is done. Although paying off the debt will take time.. Location: The gym is in a location that is easy to get to and the neighborhood has an. ‧. -. 學. and close it.. ‧ 國. -. 治政 Accessibility: Gym can open earlier and close later大 due to members that have achieved 立 certain status. Staff doesn’t always have to be on site. Instead certain members can open. upper-class income. Also, for the area there is no direct competitor. Many chain gyms. Nat. sit. al. v i n Ctheh long term, in order Branding with companies: In to achieve higher market engchi U n. -. er. io. 6.2. Opportunities. y. exist in the area.. penetration, branding our company with other high quality/reputable products must happen. Some things could be as easy as slapping our name onto a product. Also, companies could use our name to promote their products. -. Partnerships with health products: A gym isn’t just a service. It can also be a place where people buy products that they need and use at home. Protein powders and creatine are common and effective workout supplements used by powerlifters and athletes. By establishing relationships with products, we can sell supplements in house and/or have our own brand of products. In the fitness industry, it is common to develop supplement companies alongside a brand.. 32. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(39) -. Target markets: The focus on powerlifting is unique. Other gyms do not do so. By having that as the main focus, in addition to cross fit, the gym stands apart from the pack.. -. Seasonal trends: It’s no shock that gyms have a boost in membership with each new year. Having discounts and promotions coinciding with a new year will be done. Also, more activities will be scheduled outdoors in Fall and Spring, where the weather is suitable for outdoor training. And in Summer and Winter the shift towards indoor only events will be scheduled. Additionally, since the target audience includes young 20s, events will be held at the end of semesters.. -. 治政大 a unique product could boost Unique product: Once the brand is established, creating 立 business. This could be a product that is new to the market or hasn’t come to Taiwan yet. ‧ 國. 學. Take for example the Slingshot by Mark Bell. It is a product that people use to train their bench press, but in creating the product it has helped to promote Mark Bell’s brand. Nat. y. Growth in Banqiao: Banqiao is an area that has recently been developed. It is very. sit. -. ‧. outside of his gym.. n. al. er. io. modern and has a high population density. It also has a major train/bus station.. 6.3. Weaknesses -. Ch. engchi. i n U. v. Low starting capital: A gym is nothing without equipment. The essentials must be bought up front. And adding more as time goes on. However, that initial surge of expenses will put strain on the company in the short term. Also, the equipment has to be of high quality to avoid injuries and so that members are willing to pay the higher prices.. -. Limited appeal: The gym isn’t a one size fits all like World Gym. Instead it relies on leveraging its strength, being a powerlifters gym, to sustain itself. If the popularity in powerlifting loses momentum then the gym will have to shift to a new style of facility or shut down.. 33. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(40) -. Price: Part of the price is justified by location, but due to the small size of the gym when compared to chain gyms, it may seem like a turnoff to some. Justifying the higher price will be a challenge that the company has to make people understand and accept.. -. Unknown brand: As of launching nobody has heard of the gym and it has no carry over reputation from another area. So, making the brand will take time before it is known beyond the neighborhood.. -. Size of gym: Space was limited due to cost/ping. Not as spacious as some gyms. But. 治政大 space then this could be a middle lane. Also, if people are not good about sharing 立 problem during busier periods.. most exercises are done in a fixed place, except for the cross fit exercises that use the. ‧ 國. 學. -. Management experience: Current management has no experience in opening a new management will be limited until more hires can be done.. sit. y. Nat. er. Unforeseen risks: As a new business owner, the unexpected may happen. Horror stories. io. -. ‧. business. Motivation and personal finance are driving owner to succeed. Initially,. of protection money has been heard. The things that you can’t account for are here.. n. al. -. Ch. engchi. i n U. v. High rent: To sustain the business the location was based on demographics that are more likely to join the gym. And the location is in Banqiao where rent is fairly high.. 34. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(41) 6.4. Threats -. Cross fit gyms: Gyms that advertise as “box gyms” or cross fit gyms are the main competition. There is overlap between our gym and theirs. Many of those gyms also have larger capital investments that allow for their larger size. Also, there are a couple that have been around for a few years so they have reputation on their side.. -. Copycat gyms: It is a widely-known fact that businesses get competed quickly in Taiwan. If a business seems to be successful there are others that want to copy it. Culture of the gym will be the only way to protect it. Other gyms make look the same but not function or feel the same.. 立. Short term profitability: The initial interest is hard to determine. Are members willing to. 學. ‧ 國. -. 政治大. stay long term? Hard to say until operations start. And the gym must turn a profit in a reasonable amount of time to stay afloat. With high rent, the bills must be paid timely.. y. Nat. Stagnant economy: In Taiwan pay levels have more or less stayed the same for a decade.. sit. -. ‧. And there is a high turnover in membership at gyms.. er. io. Nothing has shown signs that this will change. At the same time, the cost of property has. al. gone up. This is extremely important because many Taiwanese use property as. n. v i n C hcountries. If property investments, more so than other prices keep rising then more engchi U money will go to that rather than gym membership. -. Increasing number of gyms: There are an estimated 300 gyms in Taiwan. And that number has doubled in less than 10 years. With so many options it could become like fighting over pennies.. -. Property owner: Although the rental contract is for a couple years, what if the landlord decides to increase the rent? It happens a lot in this market, especially when a landlord sees a very profitable business.. 35. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(42) 7. Operations 7.1. Team The company will be led a by a husband and wife team. And the first year will start with three employees, including a personal trainer. As the second year starts, another personal trainer will be added on. Owner 1: Has an IMBA from NCCU in Taiwan. He graduated at the top of his class. He has a passion for powerlifting and is the brains behind the operation. He will oversee what happens in the gym, including training clients as a personal trainer. He has an American Council on. 政治大. Exercise (ACE) Certification. He will teach and train on site, as well as handle gym. 立. maintenance.. ‧ 國. 學. Owner 2: She is the wife of Owner 1. She has experience in Human Resources and will control the interactions with daily operations, from registering clients to communicating with. ‧. vendors. She is fluent in English and Chinese, so she is more than able to handle the buying. sit. y. Nat. and payments of all products.. er. io. Personal Trainer 1: He has done bodybuilding for over 10 years. For the last 5 years he has. al. n. v i n C be a trainer at, and U and has been eager to find a gym to h e n g c h i one that can help drive him to the next competed in competitions in Taiwan for powerlifting. He has a strong passion for the sport level of performance.. 7.2. Suppliers Power racks and squat stands: The two most important criteria we used in selecting a supplier for our power racks and squat stands were quality and cost. Equipment must not fail. So, a supplier that had a solid reputation for building sturdy frames was chosen, and that supplier was Krypton Fitness in China. Not only did they assure on time delivery, but also they provide support to fix and maintain equipment. And they have a representative that works in Taiwan.. 36. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(43) Weights: The sheer volume and weight of all the powerlifting weights made the selection of Gymway (in Taiwan) an easy choice. Cost and reputation were important factors. Gymway supplies the Taiwan Olympic team with bars and weights. And has done so for over 15 years. The name, Gymway, is synonyms with the best. Located in Taichung, makes for easy shipment via trucks to our location. Treadmills and indoor cycling bikes: Powerlifters do need a warmup before exercising so a small amount of equipment needs to be purchased. Another local company was found. Joong Chenn is a company that has been selling equipment, in Taiwan, for over 30years. Assurances. 政治大. for maintenance and the long warranty made JC an easy choice.. 立. ‧ 國. 學. 7.3. Project Timeline. ‧. al. n. Business Plan reviewed Company registered. Month 2. y. Month 1. sit. Open. week 1 2 3 4 1 2 3 4 . C h. Obtain business licenses and. . e n g c h i. iv n U . . . permits Draft legal documents. . . Purchase insurance. . . Sign rental contract. . . . . Utilities on. 1. er. io. Actions. Nat. . Operational Timeline. Design company logo and brand. . Create website. . . Create Facebook page. . . 37. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(44) Create Instagram account. . . Create YouTube page. . . Create and print leaflets . . . . Remodel workout space . . . . . . Hire first employee. Bathrooms completed Gym equipment purchase. 政治大 . . Gym eq. arrival and installation. 立. . Obtain office supplies and pc. . Inspection. . . Opening Party. . . . . ‧ 國. 學. . POS system online Safety and Fire. Source: Organized by this study. n. al. er. io. sit. y. ‧. Nat. Doors Open. i n U. Figure 6: Project Timeline. Ch. engchi. 38. v. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(45) 8. Financials 8.1. Initial Investment & Monthly Fixed Costs Assumptions: Fixed Costs are covered by owner 1 and owner 2. Money is set aside in the amount of $3,000,000nt to be used for the business. First Year, Fixed Costs:. Initial Investment (sunk costs): Items. 立. 政治大. Gym Equipment. 1,500,000 15,000. ‧ 國. 學. Certifications. Cost. Licenses & Permits. 5,000. Legal & Processing Fees. 105,000. ‧. Computer. 40,000 300,000 Total. 1,965,000. er. io. sit. y. Nat. Remodeling. n. a Source: iv l C Organized by thenstudy h e1:nInitial i U Table g c hInvestment. 39. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.

(46) Monthly Fixed Costs:. Items. Monthly Cost. Rent. 70,000. Utilities. 8,000. Employee Salaries. 120,000. Insurance. 12,000. Network & POS system. 2,500. Equipment Repair &. 20,000. 政治大 Air Conditioning 立 Maintenance. 400. Maintenance. ‧ 國. 學. Phone & Internet. 1,500. 10,000. Miscellaneous. 10,000. Nat. y. ‧. Marketing. 254,400. er. io. sit. Total. n. a lSource: Organized by the study v i Table 2: Monthly Fixed Costs n Ch engchi U. Initial Investment: -. Gym Equipment: All the equipment is bought new. And a one-time cost.. -. Certifications: Owner 1 will get a personal trainer certification.. -. Licenses & Permits: Business license and safety permits.. -. Legal & Processing Fees: Help with documents and agreements.. -. Computer: Handle all transactions.. -. Remodeling: Making the space suitable and designed well.. 40. DOI:10.6814/THE.NCCU.IMBA.009.2019.F08.