- Università: Em Lyon School Business
- Docenti:
Monica Grosso
- Studenti:
Alexandre Agaud - Adèle Charron - Gonzague De Saint Sernin - Alice De Villiers - Flavie Ferey - Florence Fontelle- Matthiew Guillermain - Alix Robinne
Retail Concept
Our journey started with the sad statement that in a gym, much energy is produced but unfortunately lost at the same time. Driven by our passion for sports and our eco-friendly mindset, we designed Power Up!, a gym where all the energy produced is converted into electricity to provide for a bar located next door! In addition, said bar proposes products adapted to the work-out, as well as pleasure treats.
At Power Up!, the bar and the gym are two separate things, meaning that a customer can either come to the gym without enjoying a healthy drink, or work-out and then eat at the bar, or even have a drink with a few Power Upers! friends and skip the gym! It is a unique experience at the heart of our customers’ daily life!
Market & Industry analysis
Current market trends
The occidental society is more and more inclined to practice sport, in gyms or elsewhere. There are several reasons for this: the pursuit of health, the search for a balance between work and personal life, building the so-called “perfect” body, the research of performance, or also the effort from public powers to develop and promote sporty lifestyles.
All these reasons, found in the study La gestion privée d’installation sportives (Xerfi), are the key to reading current French figures: for instance, in 2019, an estimated 6.2 millions French women and men had a subscription to a gym, in any of the 4 500 gyms that existed this year.
Second, in response to global warming, to the rise of sea levels and of alarming pollution rates, people are adopting eco-friendly habits. For instance, 38% of worldwide consumers have changed their energy-using habits over the past few years.
Power Up! wishes to take profit from these trends !
SWOT Analysis of Power Up!
Targeting & Positioning
The core of our client base is the adults who want to register to a gym, who are aware and concerned about ecological matters, and who are looking for innovative ways to cheer their daily life up. They are mostly recreational shoppers rather than economical shoppers. Their motives for a subscription respond to several factors affecting their needs, mainly the search of stimulus, the identification theory and the affiliation theory.
Our 'recreational shoppers' will need to be stimulated to remain in our innovative gym. We will make sure to keep them attracted to the Power Up! brand through a unique atmosphere, both in the gym and in the bar!
Since we are located in a very dynamic neighbourhood, our Power Upers are workers -whose businesses are in the area- and students -who live or study nearby. Therefore, early in the morning, during the lunch break and in the evening, we mostly expect employees, between 28 and 55 years old. On the other hand, during the day, we mostly expect students around 20-26 years old who have in general more flexible timetables and prefer to come at less busy hours. (Meet our three target Power Upers in the ppt report!)
To put it in a nutshell, the driver of our positioning and differentiation is that Power Up! is a subtle mix of sport spirit and values, of a growing ecological concern and of a common interest for adapted food and beverage prior and post-work-out.
The store
We decided to locate our store in Gerland for several reasons. It is a dynamic district, experiencing complete restructuring today thanks to:
- the universities present nearby + the project of the new campus of emlyon business school
- the companies that have set up their offices: more than 2300 enterprises with more than 33 000 employees, and a projected 45 000 in 2025
The store will be divided into several parts:
1) A sports hall, made up of the latest generation machinery to promote and convert mechanical energy into electricity.
2) A changing room, classical but with timers in the showers to save water.
3) A relaxation room, i.e. a bar area where you can eat, have a drink with friends and continue the Power Up adventure!
4) A generator, essential to the success of Power Up!, as it allows us to transform the energy produced by the sportsmen into electricity.
Communication
We will lead a multichannel communication strategy in order to create a strong sense of community. We will focus our efforts on our customers, as they are definitely the best ambassadors and salespersons of PowerUp. Our objectives are simple: building consistent traffic both in our gym and our bar, rewarding our customers and maintaining loyalty, and finally increasing our sales at the bar. We decided to act on three levels to reach our targets:
- A mobile friendly website collecting data to keep track of our customers and their preferences
- An effective relation center using mainly mails/newsletters to inform our customers on a weekly basis and our social media
- Promotional advantage including loyalty programs
These three pillars will allow us to create a real united community, emotionally attached to our brand and spreading the word of their great experience as a Power Uper.
Financials
1) Technology used
In order to reuse the electricity produced by the sportsmen we will mainly use bikes and rowing machines because they are the best way to produce electricity. By rowing or biking, it will make a drive belt spin, which will activate a motor. Then the motor is linked to a battery which stores the energy.
2) Finance
We chose to damp all of our capital costs over our first three years of business. Indeed, these costs represent a heavy investment which involves the purchase of all our cardiovascular machines and resistance machines, and the cost of construction and furnishing of the local. We chose not to buy a local, and to rent it. Our investments in marketing and advertising costs represent a considerable burden. Taking into account all our charges, and our hybrid model, we have set the monthly subscription price of 20€.
