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Circuit Fitness Importing

Strategy and Implementation Summary

Circuit Fitness Importing will leverage their competitive edge of intelectual property (IP) (actually a license to use the IP) that takes the form of a patent in the innovative Esercitazione Diritta approach to strength training. The marketing strategy will have an emphasis on the development of the customer network and relationships. Lastly, the sales strategy will be the work on moving the fitness units into a variety of different facilities through the emphasis of an efficient, innovative workout.

The first step that Circuit Fitness Importing must accomplish to prepare itself for the implementation of the marketing and sales strategy will be the development of a support infrastructure. The costs of importing which include shipping, duties and tariffs, warehousing, and distribution will be captured and detailed as a direct costs of goods founding the sales forecast. The following areas will need to be addressed:

  • Import and logistics– the units will be manufactured in Italy and shipped via ocean freight on pallets in containers to the U.S. using the Port of Portland as the port of entry.
  • The units will then be warehoused until they are sold.
  • Distribution once the units are sold and need to be delivered.
  • Customer service– as the sole importer Circuit Fitness Importing will offer customer service for the equipment.
  • Repair– this function will be outsourced because of the geographic dispersion of all the different machines throughout the U.S. and will be recognized as a percentage in the direct cost of goods.
  • Training– Circuit Fitness Importing will offer many different seminars that are designed to train the distributors or large individual users on the proper and most efficient use of the fitness equipment.

5.1 Competitive Edge

Circuit Fitness Importing’s competitive edge is their ability to license and use Wega’s intelectual property which takes the form of  numerous international patents for Esercitazione Diritta. Esercitazione Diritta is innovative in the sense that it is the only equipment that allows the user to stand while performing strength exercises. This is of significant advantage for several reasons:

  • Esercitazione Diritta provides a lower body workout for the user while they are performing a specific upper or lower body workout. While the workout of the legs is not as strong as the other specific workout the individual is performing at the same time, it none the less is a set of exercises that develop leg muscle tone.
  • Esercitazione Diritta strengthens and tests the central nervous systems equilibrium which is a series of interrelated systems used to ensure balance when the person is standing. This is very good for motor skill development.
  • Esercitazione Diritta’s exercise simulate natural movements that individuals do repletively throughout the day.

This ground breaking technology will provide significant differentiation for Esercitazione Diritta and assist them in their U.S.A. market penetration. 

5.2 Marketing Strategy

The marketing strategy will consist of the following activities designed to develop a network of customer relationships:

  • Focus groups with high-end fitness centers
  • Private presentations to distributors
  • Private showings to high-end fitness centers
  • Meetings and presentations with personal trainers (e.g. New York City Personal Trainer Association) physical therapists, and sports medicine physicians and other specialists
  • Tradeshows, with regional and national attendance
  • Mailings and direct calling

5.3 Sales Strategy

The sales strategy will initially be based on the goal of trying to get large clubs to adopt Esercitazione Diritta equipment. This is quite attractive to Circuit Fitness Importing for a couple of reasons:

  •  A large fitness club will have many different outlets so a contract with one fitness company will yield multi-location sales. This is good for sales volume.
  • The adoption of a large fitness company brings legitimacy of Esercitazione Diritta in the U.S. market.

Circuit Fitness Importing will also work on sales to distributors. Distributors are useful because Circuit Fitness Importing is able to leverage the distributor’s sales efforts for increased sales. This comes at a slightly smaller margin for the distributor customers. In all of the sales efforts, Circuit Fitness Importing will emphasize the innovative patented technology that is a part of the Esercitazione Diritta equipment that no other manufacturer can claim to offer.

5.3.1 Sales Forecast

The sales forecast has been developed as a means for predicting and tracking sales. The direct costs of goods reflects the following components that have been converted into a percentage of sales:

  • cost of the actual equipment
  • warehouse costs
    • handling and receiving of the pallet
    • storage fees
    • handling and shipping
  • importing
    • US government taxes
      • merchandise process fee
      • harbor maintenance fee
    • duty
    • custom & clearance
Fitness equipment business plan, strategy and implementation summary chart image

Fitness equipment business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Distributors $176,100 $415,000 $512,500
Health Clubs $130,314 $307,100 $379,250
Vertical Markets $126,792 $298,800 $369,000
Total Sales $433,206 $1,020,900 $1,260,750
Direct Cost of Sales Year 1 Year 2 Year 3
Distributors $112,704 $265,600 $328,000
Health Clubs $88,614 $208,828 $257,890
Vertical Markets $86,219 $203,184 $250,920
Subtotal Direct Cost of Sales $287,536 $677,612 $836,810

5.4 Milestones

Circuit Fitness Importing has adopted a series of milestone as goals for the organization. Different sections within the company are responsible for different milestones. The following table provides detailed information about the milestones.

Fitness equipment business plan, strategy and implementation summary chart image

Milestone Start Date End Date Budget Manager Department
Business plan completion 12/15/2003 2/1/2004 $0 Max Business Development
Office set up 2/1/2004 3/1/2004 $0 Max Operations
Warhousing established 3/1/2004 4/1/2004 $0 Max Operations
Dsitribution services arranged 3/1/2004 4/1/2004 $0 Max Operations
First sale 4/1/2004 5/15/2004 $0 Max Max Sales
Profitability 5/15/2004 10/30/2004 $0 Max Accounting
Totals $0