Kegan Sims Shane McCartney Matt Baldwin

Retailer Profile Store Locations Washington – 6 California – 43 Nevada – 4 Arizona – 5 Colorado – 8 Alaska – 1

Products Elliptical Cross-trainers Treadmills Exercise Bikes Rowers Home Gyms Free-weights & Equipment Flexibility Equipment Fitness Accessories

Featured Brands

Market Segments The Home Market Targeted towards University graduates Professional or managers In the top third of discretionary spenders Home market competitors Home fitness retailers, ex. Northwest Fitness, Wal-Mart Sporting goods stores, ex. Big Five E-tailers, ex. BowFlex The home market is by far the largest and has grown significantly in the past decade with 80% of home fitness equipment is bought in retail stores.

Market Segments The Institutional Fitness Market Targeted towards Hotels Fitness Clubs Corporations Apartments Institutional Fitness Market Competitors Direct suppliers or fitness equipment manufacturers, ex. Precor Foreign competition, ex. Imports from overseas E-tailers, ex. BowFlex

Market Trends People are more likely to purchase equipment for home use if they belong to a fitness club – For example consumers were turned on to elliptical trainers at health clubs more than five years ago and have since made them a fixture in their homes. Exercise equipment sales increasing  Projected to grow at the 4% rate as seen in 2006 (AC Nielson website) Health club memberships also increasing  Memberships in USA grew 12% in the past five years (AC Nielson website) = Industry Synergy

Strengths Offer wide ranging product lines and product categories. – ($7000 Treadmills to $20 exercise mats.) = Product offerings satisfy the needs of a broad target market. Carry strong brand name products which contribute immensely to the Busy Body reputation and image.

Weaknesses  Strong dependence on suppliers  (HOIST© fitness systems, PaceMaster, Precor.) = Low bargaining power, limited price controls and marketing options.  Compete with rapid changes in consumer preferences within the industry. (Tae-Bo, Curves, Diets, Drugs.)  Products are undifferentiated from direct competitors.  (Currently five PRECOR exercise equipment retailers in Oregon. Not one Busy Body.)

Opportunities Demand for products is growing. Greater number of overweight and elderly Americans, demand for fitness equipment should stay high (baby boomers). Entering new metropolitan markets. (Top 5 states for Adult Obesity) 1. Mississippi: 30.3% 2. West Virginia: 30.1% 3. Louisiana: 30% 4. South Carolina: 28.5% 5. Alabama: 28.1% Utilize attractive webpage to sell products directly.

Threats Fitness equipment sales depend on overall economic health making sales subject to economic cycles. Ease of entry into fitness equipment retailing is determined by industry manufactures/suppliers. Competitions from imports, especially from China, have taken a greater share of the US market. (Discounted Pricing) Rise in the number of fitness centers may lead inter-industry price war creating a low cost substitution to buying home fitness equipment.

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