Twisted Hot Yogas target market Market Opportunity

Twisted Hot Yogas target market Market Opportunity Twisted Hot Yoga does not have any direct competition in the location of Aspen Estates and therefore there is the opportunity to target the higher income level consumers surrounding that area. Due to only having one recreation centre near aspen estates in a continuously growing community, Twisted Hot Yoga can give access to their healthy conscious consumers a new hot yoga studio fulfilling many of the new fitness conscious trends. This particular area of the city, the South West quadrant, is currently in the process of expansion. There are many communities surrounding Aspen Woods that are being developed. Up to this date, there are no hot yoga studios in the surrounding area of Aspen Woods. Target Market Twisted Hot Yogas target market can be defined as higher income health conscious consumers. More specifically, women between the ages of 20 and 34 that live in the South West part of Calgary within and surrounding the new communities of Aspen Woods. This specific target market takes pride in healthy busy lifestyles and belongs in an active community (Environics analytics, 2010). Market Size Based on a 2008 Yoga in America study, it was found that Americans spend 5.7 billion dollars a year on yoga classes and products, including equipment, clothing, vacations and media (DVDs, videos, books and magazines), showing an 87% increase since the previous study in 2004 (Yogajournal.com, 2010). The study also found that 6.9% of US adults or 15.8 million people practice yoga and out of those who do not, the study found that 8% or 18.3 million Americans said they were very or extremely interested in yoga (Yogajournal, 2010). The data that was collected on age, gender and other demographic factors showed that out of all the yoga practitioners, 72.2% are women, 27.8% are men, 40.6% are 18 to 34 years old; 41% are 35 to 54; and 18.4% are over 55 (Yogajournal.com, 2010). The study concluded that almost half of these current practitioners started doing yoga to improve their overall health. Market Trends and Opportunities that are Emerging Bikram Yoga: According to CTV news in 2002, hot yoga which is also known as Bikram, was a raging trend across Canada as well as the hottest trend in exercise (2010). Holistic Fitness: Fitness trends in the near future are said to be taking a customized approach to the particular needs and lifestyles of individuals (Euromonitor, 2010). Holistic fitness, group sweat sesh, and get fit quick are the leading future fitness trends around the globe (Euromonitor, 2010). Todays research shows a shift from hitting the gym to attain the ideal body to now a more holistic approach to healthy living. The holistic approach is discussed as reaping the benefits of exercise (Yogajournal.com, 2010). People nowadays are more concerned with getting back into shape physically, mentally, emotionally and spiritually. According to Euromonitor international, the market for healthy lifestyles is much greater due to the increase in obesity rates (Euromonitor, 2010). This trend is adapting to the 21st century consumers that have busy lifestyles regarding work, family, and social life demands. A German company that specializes in holistic therapy stated that it supports indiv iduals to find personal balance, to relax our mind, and to experience something that is beyond thoughts, analysis, stress and separation (Euromonitor, 2010). A US trends forecaster has predicted in a trends journal that Whole Health Healing will become very popular and part of the public awareness by 2011. Services, products and practitioners furthering a holistic approach will be the cutting edge of a trend that will grow for decades (Euromonintor, 2010). Group Sweat Sesh: The group sweat sesh trend is moving away from personal trainers, exclusive spas, and home fitness training as the craze is said to soon lose some of its appeal. Keeping up with healthy trends and staying fit is nowadays said to be a group effort (Euromonitor, 2010). Having groups of people being trained by an instructor is said to be a perfect fit with the demand for a more budget friendly, more social and fun exercise culture (Euromonitor, 2010). Get Fit Quick: Consumers these days want to get fit quick and see results faster. The continuing trend of body-conscious consumers and what is called the busy-busy society will still be looking for quick fixes, meaning quicker ways to get fit faster (Euromonitor, 2010). Going green: Twisted Hot Yoga will be opening up a Bikram yoga studio that will use all economically friendly products such as bamboo floors and clay walls. The trend of going green is an important factor when opening up a hot yoga studio and therefore, Twisted Hot Yoga will be able to offer its consumers a natural environment as well as greater awareness to keep the community a better place. Use of Yoga as Medical Therapy: Doctors and therapists now often recommend yoga as medical therapy. Yoga as medicine represents the next great yoga wave (yogajournal.com, 2010). A 2008 study found that in the next few years, we will be seeing a lot more yoga in health care settings and more yoga recommended by the medical community as new research shows that yoga is a valuable therapeutic tool for many health conditions (yogajournal.com, 2010). Demographic Analysis The above chart represents the percentage of women between the ages of 20-34 living in the surrounding neighborhoods of Aspen Woods. Using data collected from the GIS mapping (see appendix), West Springs has the greatest percentage in comparison to the other areas in the South West. West Springs is currently in the process of developping 96 residential homes, six buildings consisting of a total of 300 apartments and 55,000 square feet of commercial space which gives Twisted Hot Yoga the opportunity to expand their business and their target market in the future (Jomaa, personal communication, 2010). Twisted Hot Yoga will focus on two customer groups: Upper Income Cosmopolitan Elite and Middle Income Suburban Gentry. Demographic and Psychographic Analysis Upper Income Cosmopolitan Elite Age: 20-34 Sex: 80% female, 30% male Health/Lifestyle: Canadas wealthiest lifestyle, fitness-minded Canadians who belong to health clubs, workout at home, enjoy pilates, yoga and cross-country skiing. This group is very active in the community, volunteering on community projects and making various donations. (Environics analytics, 2010) Twisted Hot Yogas Selling Point: Convenient location, close to the new developing areas, can be attended at any hours during the day, flexible hours Middle Income Suburban Gentry Age: 20-34 Sex: 80% female, 30% male Health/Lifestyle: Canadas up and coming business class, spenders, fitness conscious, much more likely than average Canadians to jog, take aerobics classes, play racquet sports and basketball. Many of these individuals take pride in their healthy lifestyles. (Environics analytics, 2010) Twisted Hot Yogas Selling Point: Can be attended before or after work, close to new developing areas, relieve stress after work and relaxing the mind and body Twisted Hot Yogas target markets enjoy living healthy lifestyles and have higher disposable income. According to Statistics Canada, individuals in higher income groups are more likely to engage in physical activity during their leisure time (2010). Geographic Analysis Distance from surrounding communities to Aspen Landing (Twisted Hot Yoga) Aspen Woods 1.2 km 2 mins Strathcona Park 2.9 kn 4 mins Signal Hill 3.6 km 6 mins Christie Park 3.1 km 5 mins Patterson 5.0 km 8 mins Coach Hill 4.5 km 6 mins Springbank Hill 2.2 km 4 mins Discovery Ridge 5.9 km 12 mins West Springs 2.6 km 5 mins Twisted Hot Yoga targets the surrounding communities of Aspen Woods. The distance from the surrounding communities to the studio is an important factor as Twisted Hot Yoga promotes going green and saving the community. Health conscious consumers can actively participate in going green by not having to drive to the studio. Location Based on Twisted Hot Yogas target market, the selected location for Twisted Hot Yogas studio will be in the new developed area of Aspen Woods. This area is called Aspen Landing shopping center and is located on the corner of 17th avenue and 85th street SW. Aspen Landing consists of 175,000 square feet of retail space and 40,000 square feet of premium second floor office space and serves the dominant community shopping centre in West Calgary (Aspenlanding, 2010). Aspen Woods community social statistics shows that in 2009, total population in that area was 2,830, indicating a 454.9% change since 2005 (City of Calgary, 2010). Based on the following statistics, Twisted Hot Yoga is targeting a continuously growing community. Aspen Woods is said to be one of Calgarys most desirable Estate communities to live in (Calgary Real Estate, 2010). Competition There are currently no other Bikram yoga studios in the neighborhood of Aspen Woods. Twisted Hot Yoga has the opportunity to provide the new and surrounding communities within that specific South West area, a studio that is of short distance from each area. Trends Aspen Woods has been described to be a unique community that offers prestigious shopping within walking distance. There is a variety of stores that offer a wide range of services and products (Calgary Real Estate, 2010). Calgary Real Estate describes Aspen Woods as living in the inner city but surrounded by a prestigious community of estate homes and condos (2010). David Parker wrote an article in the Calgary Herald July 1, 2010 in relation to the Strong community at Aspen Landing (2010). A man by the name of Scarcello was hired by the Vancouver -based land owner, Springbank Land Company to design an upscale urban village style retail centre to bring trendy 17th avenue, Kensington and 4th street to the suburbs (Parker, 2010). The article states that the centre was designed to provide the surrounding estate style communities a place to congregate as well as to dine and shop (Parker, 2010). It was also said that this center provides a enjoyable pedestrian area without the usual big pa rking lots as well as the boardwalk which is designed for visitors to be able to enjoy what they call a bandstand-public space overlooking the water (Parker, 2010). The trendy eating places in Aspen Landing have become very popular. Some of these include Broken Plate, Wok Wok, Thai Tai, and the very tempting Crave Cupcakes (Parker, 2010). ). Aspen Landings unique village concept centre is designed to create an intimate atmosphere with an emphasis on charm (Aspenlading, 2010). Rent Price and Size Through personal communication with a West Springs Landing commercial developer, rent price for Twisted Hot Yoga will be based on square footage. The average rent price for the South West Area is going for approximately 30 to 35 dollars a square foot (Jomaa, personal communication, 2010). Through further research on available commercial space, each available section is between 2,500-5,000 sq ft. Twisted Hot Yoga would need around 2,500 square feet in order to provide customers with a large enough yoga room. (Calgary Real Estate, 2010) Read more: http://www.calgaryherald.com/business/Strong+community+Aspen+Landing/3223205/story.html#ixzz136PUSBWB http://aspenlanding.ca/?page_id=2 http://www.hotyogastudiodesign.com/where_to_start.php Many studios begin with an initial phone consutation. To get the most out of your copnversation with Chad, have as much information available about your site as possible. For instance, have you signed your lease? Is the power gas or electric? What is the square footage? What kind of plumbing already exists in the space (bathrooms, etc)? This initial conversation will familiarize Chad with the extent of your studios needs and direct to you the next step. In certain situations, a site visit is set up at this time for Chad to see the space first hand. SUPPLIES http://www.calgary.ca/portal/server.pt/gateway/PTARGS_0_2_104_0_0_35/http;/content.calgary.ca/CCA/City%20Hall/Business%20Units/Community%20and%20Neighbourhood%20Services/Social%20Research%20Policy%20and%20Resources/Community%20Profiles/Community%20Profiles.htm http://www.calgarycommunities.com/communities/strathcona_christie.php Aspen Hills Map http://www.carma.ca/us/OurCommunities/Calgary/~/media/Communities%20Maps/aspenhills%20map.ashx Aspen Landing http://aspenwoodscalgaryrealestate.com/about/aspen-landing/ TRENDY HERALD http://www.calgaryherald.com/business/Strong+community+Aspen+Landing/3223205/story.html Aspen Woods $ 376,445 Strathcona Park $ 175,108 Signal Hill $ 132,380 Coach Hill $ 151,475 Patterson $ 155,330 Christie Park $ 198,427 Springbank Hill $ 177,248 Discovery Ridge $ 194,226 West Springs $ 144,067 Aspen Woods 0.1584 Strathcona Park 0.1184 Signal Hill 0.1399 Coach Hill 0.1989 Patterson 0.1756 Christie Park 0.0826 Springbank Hill 0.2031 Discovery Ridge 0.1804 West Springs 0.2566 Yoga is not only about teaching yoga its about going above and beyond and making a difference in the community. Market Segmentation Twisted Yoga will focus on four types of customer groups: Upper Income Cosmopolitan Elite: This group is the core segment of à ¢Ã¢â€š ¬Ã‚ ¦.. Their demographic and psychographic characteristics are the following: Ages: Sex: Family Income: Health/Lifestyle: Canadas wealthiest lifestyle, fitness-minded Canadians who belong to health clubs, workout at home, enjoy pilates, yoga and cross-country skiing. This group is very active in the community, volunteering on community projects and making various donations. Social Pattern: Twisted Yogas selling point: Middle Income Suburban Gentry: Health/Lifestyle: Canadas up and coming business class, fitness conscious, much more likely than average Canadians to jog, take aerobics classes, play racquet sports and basketball. Many of these individuals take pride in their healthy lifestyles. Urban Downscale: Canadian spenders, stay fit doing pilates and yoga. According to CTV news in 2002, hot yoga also known as Bikram was a raging trend across Canada as well as the hottest trend in exercise (2010). The study, which analyzed data from the 2005  Canadian Community Health Survey, found that age, sex and level of income were among the factors that influenced an individuals level of physical activity. According to Statistics Canada, individuals in higher income groups were more likely to engage in physical activity during their leisure time. With new government initiatives of going green, Twisted Yoga provides not only classes to consumers, but also goes above and beyond to help make a difference in the community. Geographic Demographic Psychographic Middle Income Urban Professionals: This group is the core segment of potential students of GWYC.   Their demographic characteristics are the following: Ages: 26-40. Sex: 30% male, 70% female. Family Income: $30,000-$50,000. Health/Lifestyle Issues: Active individuals that are focused on healthy food and dieting.   Over 70% of this group are members of gyms. Approximately, 40% of potential customers have taken yoga classes before. Social Pattern:   Will more likely attend as part of group.   Centers selling point:  Close to work.   The session lowers stress.   Can be attended with workmates as group activity.   Upper Income: The upper income customer is a secondary target group.   Their demographic characteristics are the following: Ages: 40-60. Sex: 30% male, 70% female. Family Income: $60,000+. Health/Lifestyle Issues: Active individuals that are focused on healthy food and dieting.   Over 90% of this group are members of gyms. Social Pattern:   Will more likely attend alone. Centers selling point:  Close to work.   The session lowers stress Read more: http://www.bplans.com/yoga_center_business_plan/market_analysis_summary_fc.cfm#ixzz12jE7sIS6 http://www.yogajournal.com/for_teachers/983?page=3 http://www.yogaintheworkplace.ca/2005/01/statistics-canada-released-canadian.html The percentage of adults, age 20 to 39, at risk for health problems because of expanding waistlines has quadrupled in the last 30 years, from 5% to 21% for men, and from 6% to 31% in women. Between  1981  and  2009, fitness levels of Canadian children and youth, as well as those of adults, declined significantly, according to the first findings from the Canadian Health Measures Survey (CHMS). This is the most comprehensive national survey ever conducted in Canada to determine fitness levels. The CHMS captured key information relevant to the health of Canadians by means of direct physical measurements, such as body measurements, cardio-respiratory fitness, musculoskeletal fitne Target Market How old are they? What gender are they? Where do they live? What is their family structure (number of children, extended family, etc.)? What is their income? What do they do for a living? What is their lifestyle like? How do they like to spend their spare time? What motivates them? What is the size of your target market? But dont stop here when youre writing a business plan. To define your target market, you need to ask the specific questions that are directly related to your products or services. For instance, if you plan to sell computer-related services, you need to know things such as how many computers your prospective customer owns. If you plan on selling garden furniture and accessories, you need to know what kinds of garden furniture or accessories your potential customers have bought in the past, and how often. Projections About The Target Market What proportion of your target market has used a product similar to yours before? How much of your product or service might your target market buy? (Estimate this in gross sales and/or in units of product/service sold.) What proportion of your target market might be repeat customers? How might your target market be affected by demographic shifts? How might your target market be affected by economic events (e.g. a local mill closing or a big-box retailer opening locally)? How might your target market be affected by larger socioeconomic trends? How might your target market be affected by government policies (e.g. new bylaws or changes in taxes)? Writing the Market Analysis Section of the Business Plan Once you have all this information, youll write the Market Analysis in the form of several short paragraphs. Use appropriate headings for each paragraph. If you have several target markets, you may want to number each. (See the sidebar for a sample of this section of the business plan, from the Royal Bank.) Remember to properly cite your sources of information within the body of your Market Analysis as you write it. You and other readers of your business plan will need to know the sources of the statistics or opinions that youve gathered from others. The How to Write a Business Plan instructions continue on the next page are tips for researching the market analysis section of the business plan, including sources for Canadian information. Online Market Research Sources When youre researching the Market Analysis section of the business plan, Statistics Canada is an excellent place to start your market research. Their Community Profiles offer free information about all Canadian communities. Here youll find information such as Earnings and Work statistics, conveniently presented for easy comparison between the community and the province its located in. You may also want to take a look at Statistic Canadas Studies section; you might find one thats relevant to your market research. In Doing Industry Research When Writing a Business Plan, I wrote about several other excellent online sources of information for researching the business plan, such as provincial and territorial statistics offices and Canadian Economy Online, which may also be useful when youre researching the Market Analysis. GDSourcing Research Retrievals Canadian Market Resources is a must-visit page when youre researching online; it lists free and low-cost sources of demographic and psychographic data geared to small businesses. Offline Market Research Sources But there are also a great many local resources for information about your target market that youll want to explore. Besides the local library, the local Chamber of Commerce, Board of Trade, City Hall, Economic Development Centre, local government agents office, provincial business ministry, local phone book and yellow pages will all have information that will help you define your target market and provide insights into trends. Doing Your Own Market Research These are all secondary sources of information (Others have conducted the research and compiled the information.) You may also want to conduct your own market research (use primary data). For instance, you might want to design a questionnaire and survey your target market to learn more about their habits and preferences relating to your product or service. My article, Do-It-Yourself Market Research, explains the basics of market research and gives tips for sampling and accessing your target market. Does all this sound time-consuming? It is. But it needs to be done if your business plan is going to have any validity. You can have the most fantastic product or service in the world, but if no ones interested in buying it, it will just gather dust. If you dont have the time or the research skills to thoroughly define your target market yourself, hiring a person or firm to do the market research for you can be a wise investment. Statistics Canada http://sbinfocanada.about.com/gi/o.htm?zi=1/XJzTi=1sdn=sbinfocanadacdn=moneytm=38gps=347_226_1259_621f=00su=p284.9.336.ip_p649.3.336.ip_tt=2bt=1bts=1zu=http%3A//cansim2.statcan.ca/cgi-win/cnsmcgi.exe%3FLang%3DE%26AS_Action%3DFind%26ResultTemplate%3DStudies/StudiesHome1%26AS_Univ%3D1 Statistics Canada, Higher income individuals http://sbinfocanada.about.com/gi/o.htm?zi=1/XJzTi=1sdn=sbinfocanadacdn=moneytm=38gps=347_226_1259_621f=00su=p284.9.336.ip_p649.3.336.ip_tt=2bt=1bts=1zu=http%3A//cansim2.statcan.ca/cgi-win/cnsmcgi.exe%3FLang%3DE%26AS_Action%3DFind%26ResultTemplate%3DStudies/StudiesHome1%26AS_Univ%3D1