Body Zone

After studying in the US, Julian Brooks returned to Trinidad, where he opened an aerobics
studio to capitalize on the growing interest in healthy living among the population. He soon
realized however, that finding proper clothing with which to work out was a challenge and
many of the studio's clients often resorted to importing aerobics outfits from the US. Julian saw
this as a business opportunity and started selling limited quantities of training apparel in a kiosk
at the back of the studio. The revenue from clothing sales soon surpassed the income derived
from membership fees, which led Julian to close the aerobics studio and open a retail outlet,
Body Zone, selling a wide range of athletic clothing and footwear. By hiring staff who were
committed to fitness themselves, the store gained a reputation among fitness enthusiasts as
the place to obtain expert advice about products and training regimes.

Customer Segments

Julian estimated that over 75 percent of the store's customers were women who engaged in
some type of fitness program. Many "hardcore" fitness enthusiasts and gym instructors were
attracted to the store because of the personalized service they received and specialized
clothing that was available. Other customer groups included those persons who engaged in
light exercise on an infrequent basis, typically around the Carnival season, as well as customers
who regularly worked out and were interested in more specialized clothing and fitness
accessories. Not surprisingly, the largest market segment was comprised of persons who
worked out infrequently. These individuals were least likely however, to invest in what they
perceived as expensive workout clothing.

Product Selection

High quality, brand name aerobics outfits and cross trainer shoes were the main items sold at
Body Zone. Additionally the store sold a variety of accessories needed for fitness regimes,
including nutrition bars, gloves, heart rate monitors and water bottles. The staff were trained to
assess the needs of each customer and make recommendations about the type of equipment
that should be purchased. The store also provided a personalized service to source specialty
items from suppliers if the product was not available locally. This was particularly helpful for the
professional athletes who needed their clothing and shoes to be customized to their body type
and training regime.

Promotion Activities

The store was listed in the Yellow Pages in the sportswear category and occasionally advertised
on the 105.1 FM radio station during broadcasts of popular sporting events. Julian had tried
advertising in the weekly newspapers in the past but this did not seem to reach the market he
was targeting. Every year in the run-up to Carnival Julian visited several of the more popular
gyms and distributed flyers advertising the products in his store.

Body Zone also organized several road races to benefit various non-profit organizations and this
was the main form of promotion. Entrants to the races received a t-shirt with the store's name
prominently featured on the front and participants were also awarded points that they could
redeem in the store for specific items. These races attracted a lot of attention and provided
free publicity for the store.

Julian had also hired a recent university graduate to develop a website for the store. This was
used to provide information about weekly specials available at the store, new items in stock as
well as upcoming races. Rather than selling through the website however, customers were
encouraged to visit the store for a free consultation with a sales representative who could
advise on the products that would be most suitable. Links were also provided on the site to
online seminars dealing with various aspects of healthy living and training tips.

The Competition

There were several well established sports stores who provided some of the same shoes and
apparel as Body Zone. The largest of these was called Sport-Time which carried a slightly wider
range of shoe brands than Body Zone but did not offer customer consultations or special
orders. Although its line of clothing and accessories was not as extensive as Body Zone, Sport-
Time carried more expensive big-ticket items such as home gyms, which Body Zone did not
stock due to the prohibitive cost.

Sport-Time also organized several charity and competitive road races throughout the year and
hosted a special training clinic for runners before each event. Enrollment in these clinics usually
did not exceed 60 persons, most of whom had just started exercising to become fit.

There were frequent advertisements for Sport-Time in the local newspapers as well as on the
radio. The company also had a listing in the Yellow Pages in the same section as Body Zone.
Unlike most other sporting goods stores however, Sport-Time allowed customers to purchase
items directly through its website and communicate with each other via an interactive chat
area. The store also sold gift cards in $50 and $100 denominations which customers could
redeem for items in the store.

Discussion Questions
1. How are Body Zone and Sport-Time positioned against each other?
2. What strategic changes should be made to the product offerings and promotional mix for
Body Zone?
3. Should the company expand its website to allow online purchases?