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Case Body Line

The document analyzes Body Line Gym, which opened in 2010 in Quito, Ecuador but saw declining profits after 2013 when a community gym opened nearby. Body Line Gym offers services like spinning, aerobics, weight machines, and a nutritionist. However, the opening of the nearby community gym, which charges lower prices, caused Body Line's subscriptions and membership to fall. The document considers whether Body Line should move locations or make changes like reducing prices, opening on Sundays, and modifying its hours to try to regain customers and profits without relocating. It ultimately recommends Body Line stay in the same location but make marketing and pricing adjustments.

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194 views4 pages

Case Body Line

The document analyzes Body Line Gym, which opened in 2010 in Quito, Ecuador but saw declining profits after 2013 when a community gym opened nearby. Body Line Gym offers services like spinning, aerobics, weight machines, and a nutritionist. However, the opening of the nearby community gym, which charges lower prices, caused Body Line's subscriptions and membership to fall. The document considers whether Body Line should move locations or make changes like reducing prices, opening on Sundays, and modifying its hours to try to regain customers and profits without relocating. It ultimately recommends Body Line stay in the same location but make marketing and pricing adjustments.

Uploaded by

pcmantil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Escuela Superior Politcnica

del Litoral
Facultad de Ciencias Sociales y
Humansticas
Body Line Gym
Case Analysis

Integrants:
Priscilla Mantilla Quirola
November 14th, 2016

Overview
The beginning of gyms was in Ancient Greece, then in 1930 appear the
modern gyms in USA where the people did physical exercises for health or
beauty.
In Ecuador, the first gyms appeared in 1980, some gyms was a local
initiative or multinational franchises. Around in 2014, It was so normal see
modern gyms in Quito, where offer a variety of services like spinning,
aerobics, machines, CrossFit and nutritionist.
Body Line Gym was in Valle de los Chillos ville in Quito, this ville has a
weather humid with a temperature around of 10 to 20 centigrade degrees.
Body Line started in January 2010. It was an initiative of Nohemy Gaona,
who had worked 22 years in Herbalife like distributor of nutritional
supplements. Gaona thought that set up a gym will be a great idea if she
wanted take care the peoples health.
From 2010 to 2013, Body Line Gym was successful but in July 2013
appeared a community gym. The community gym was located so near of
Body Line Gym and it was the cause that the subscriptions and membership
fell dawn.

Define the Problem


The problem consists to decreasing of profits in Body Line Gym because of
competitor that is located so near of it

Key Question?
Should Body Line Gym Move out to other location?

External Factors
General Environment
The weather
Industry
The average prices to pay: 25 to 50 dollars
People require parking, CrossFit and wall climb
The most of people prefer traditional sports: soccer, basketball etc
Competition
Community gym

Internal Factors
Strengths
Physical structure 800 m2
Professional trainers
Variety of services
Weakness
High prices
Close Sunday

alternat
ives
Move out
the location

Key steps

Communicate
to the
customers
about the new
location
Find a place
with a high
traffic

advantages disadvanta
ges

Increase
of profits

Get new
customer
s

Stay in the
same
location

Increase in the
advertising
Reduce the
prices:
eliminate the
inscription
Open Sunday
Modify the
schedule: From
6 am to 9 pm

Increase
the
quantity
of
customer
s.
Avoid to
stop the
productivi
ty.

High
cost of
business
interrupti
on
Productiv
ity will
be
reduced
for a
period
after a
move
Lose
loyal
custome
rs
Lose
possible
new
custome
rs

Recommendation
I suggest that Body Line Gym should stay in the same location, because this
area has a high traffic of people, its a commercial area. One strength of this
gym is the infrastructure, the local is more big than other locals in the area
and It calls the attention. I think that if the owner change the marketing
decisions, it will get over. The manager should compare with the prices that
offer the competitor. The community gym offers an unique pay of 20 dollars
without inscription cost but Body Line Gym overcomes the 50 dollars. A
marketing research show that people can pay from 25 to 50 dollars for a
gym service. Its for this reason that Body Line must reduce the prices if
they want get over the customers. Another change will be in the schedule.
None of them open Sundays but the marketing research show a high
percentage of people that prefer go to the gym the Sunday. I think that Body
Line will take advantage of this opportunity and offer its services this day.

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