Problem identification: Cardio-Core franchise is a small-scale operation and in order to increase profits and share of fitness market partnering with the government is needed. The main hurdle of this cooperation is the problem of explaining the government or non-profit workout organizations why they should support Cardio-Core and why it is worthy of cooperation. However, partnering with the government can influence fundraising slowly or have no influence at all. Therefore, the second part of the problem is to create a way of increasing profits in order to support increase of the scale.
Recommendation: Cardio-Core has in fact quite wide target audience. Though there are people, who regularly go in for sport and visit Cardio-Core activities, the main audience are people who are not in a good physical shape, do not have time to visit gym or to practice some kind of sport. These activities require a lot of time and a certain physical and psychological efforts, while Cardio-Core boot camp is easy way for people to enhance their health.
Such target audience can be found in any big city where there are a lot of office workers who in fact will be happy to join such activities. That is why it is crucial for the company to increase the scale of its operations and carry out its activities in large cities. As Cardio-Core is an outdoors camp by default, it is obviously a competitive advantage, as there is no need to rent expensive spaces in city centers. Moreover, working out outdoors is also a streak that can be stressed on when comparing to ordinary gyms or sports clubs.
However, the main problem with starting Cardio-Core operations in large cities is quite tense competition, as there are a lot of gyms in city centers and possibilities to go in for practically any sport. Therefore, support from the government and various non-profit sporting organizations can not only serve as a good and large-scale advertising but as another competitive advantage. All in all, main recommendations for the franchise would be to follow the rules of large scale business in downtown areas and get the governmental support to succeed. The detailed course of actions can be divided to several periods.
Short Term (1 to 3 month period): There is a way of starting to try to get governmental support to conduct working out activities; however, it may take a lot of time and efforts to reach governmental departments, responsible for the matter. Moreover, it will take a lot of time for the government to make a decision, whether the project is worthy of serious support. Speaking of non-profit organizations, they have many problems of supporting their own activities. Therefore, Cardio-Core must start with the opposite tactics. To begin with, several big-cities must be chosen to start Cardio-Core activities there. Demonstrative sessions must be carried out, and the best way to do it is to create several flash-mobs in popular places in the city center. Besides uploading the videos of such sessions to social networks and YouTube, simultaneous outdoor …