Evergreen Yoga Studios by Becky Green

E V E R G R E E N YOGA STUDIOS

CONTENTS

1.0 INTRODUCTION

6.0 BRAND STRATEGY

1.0 1.2 1.3 1.4

6.1 6.2 6.3 6.4

INTRODUCTION P.4 RATIONALE P.5 AIMS & OBJECTIVES P.6 METHODOLOGY P.7

BUSINESS SMART OBJECTIVES P. 72 BUSINESS MODEL CANVAS P. 73 THREE YEAR MARKETING STRATEGY P. 74 THE 4 V’S P. 76

2.0 OPPORTUNITY

7.0 COMMUNICATIONS

2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12

7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9

STAGE 1 REFLECTION P. 12 KEY INSIGHTS P. 13 THE PROBLEM P. 14 OPPORTUNITY PLATFORM P. 15 MICRO TRENDS P. 16 IDEA GENERATION P. 18 BUSINESS OPPORTUNITY P. 19 CONSUMER TESTING P. 20 EXPERT FEEDBACK P. 21 THE BIG IDEA P. 22 THE GOLDEN CIRCLE P. 23 BRAND EQUITY P. 24

COMMUNICATION OBJECTIVES P. 79 AIDA MODEL P. 80 DRIP MODEL P. 82 COMMUNICATION STRATEGY P. 84 ONLINE COMMS MATRIX P. 85 OFFLINE COMMS P. 96 OFFLINE COMMS MATRIX P. 97 KPI’S P. 106 COMMS TIMEPLAN P. 107

3.0 THE MARKET

8.0 BRAND MANAGEMENT

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11

8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13

MACRO: PESTLE P. 27 PESTLE SUMMARY P. 31 MARKET HEALTH P. 32 MARKET READINESS P. 33 MARKET DRIVERS P. 34 COMPETITOR ANALYSIS P. 35 MARKET POSITIONING P. 38 PORTERS 5 FORCES P. 40 PORTERS 5 FORCES SUMMARY P. 41 SWOT/TOWS ANALYSIS P. 42 SWOT/TOWS SUMMARY P. 43

4.0 THE BRAND 4.1 4.2 4.3 4.4 4.5 4.6 4.7

BRAND OVERVIEW P. 47 BRAND DNA P. 54 THE NAME P. 56 THE LOGO P. 57 COLOUR P. 58 TYPEFACE P. 59 FLOOR PLANS P. 60

5.0 THE CONSUMER 5.1 5.2 5.3 5.4 5.5 5.6

CONSUMER SEGMENTATION P. 64 PRIMARY CONSUMER P. 66 SECONDARY CONSUMER P. 67 TERTIARY CONSUMER P. 68 DIFFUSION OF INNOVATION P. 69 VALUE PROPOSITION CANVAS P. 70

INITIAL FUNDING P. 110 KEY START UP COSTS P. 112 MARKETING BUDGET P. 114 MARKETING COSTS P. 115 PRICING STRATEGY P. 116 FINANCIAL OBJECTIVES P. 117 SALES FORECAST P. 118 PROFIT AND LOSS P. 120 SENSITIVITY ANALYSIS P. 121 CASH FLOW P. 122 EXTERNAL RISK ASSESSMENT P. 124 EXTERNAL RISK ASSESSMENT P. 125 OPERATIONAL TIMEPLAN P. 126

9.0 THE FUTURE 9.1 9.2 9.3 9.4

FUTURE GROWTH P. 130 ANSOFF MATRIX P. 131 OBJECTIVE REVIEW P. 132 CONCLUSION P. 135

REFERENCES IMAGE REFERENCES BIBLIOGRAPHY APPENDIX

INTRO

1.1 DUCTION

Preceding research from the Future Thinking report (Green, 2019) has identified a global health and wellness macro-trend that is developing; “it is helping to establish a new healthy living infrastructure that emphasises both convenience and trustworthiness.” (McGregor and Smith, 2018) Further research presented within the Stage 1 written report (Green, 2020) explored stress related health concerns in particular, and the management of this among the Pivotal generation. This report intends to provide an innovative and creative business solution, brought to life, in order to remedy the conclusive insights drawn from the prior report titled, “Stress Less.” Strategic and analytical thinking will be demonstrated throughout the realisation process to ensure the final brand created successfully fulfils the market opportunity.

1.2 RATIONALE The meaning of health and well-being has evolved significantly in recent years; it has developed from the â&#x20AC;&#x153;lack of illness,â&#x20AC;? to a macro trend influencing a change in lifestyle for a vast number of consumers. This has evoked a shift in attitude towards a positive health outlook, simultaneously leveraging consumer engagement and understanding of holistic well-being. The younger Millennials are engaging with a current self-care movement. However, as identified within the Future Thinking report, this trend is associated with surface-level, temporary health solutions such as skincare, spa treatments and quick-fix supplements. A long-term, holistic self-care solution is yet to captivate this demographic and cater to their specific needs.

AIM:

To create an innovative business solution addressing apparent consumer needs and societal issues, that have been outlined in preceding research throughout the Future Thinking and Stage 1 reports.

OBJECTIVES: • To skilfully develop and action previous research, from the prior Future Thinking and Stage 1 reports, in order to create a functional and financially feasible business in response to disclosed key insights regarding Pivotal stress management. • To establish a meticulous comprehension of relevant trends, markets and consumer variables that will influence the chosen business model and assess the appropriate direction and development. • To create an innovative and unique brand realised by advanced designs and visuals alongside coherent brand values. • To construct a realistic, successful three-year marketing communications strategy, justified by previous research, that cohesively aligns with the branding and mission statement.

1.3 AIM & OBJECTIVES 6

1.4 METHODOLOGY A multimethod research approach allowed for both qualitative and quantitative data to be collected and applied throughout the report. Market and consumer research allowed for vital insights to be drawn. Both primary and secondary methods were utilised as detailed in table x and x.

PRIMARY METHOD

SAMPLE

TABLE 1.1

RATIONALE

Survey

136 participants from the Pivotal generation, both male and female.

A survey was created in order to grasp an idea of current consumer engagement with holistic fitness and to test the proposed concept. This method produced both quantitative and qualitative data that could be analysed in order to consolidate the business idea. The answers provided are statistically representative of the target population and can be implemented methodically to inspire the business model (Saunders, et al, 2019).

Polls

172 Instagram users participated in an online poll.

A social media poll was conducted in order to receive a range of feedback on branding and the business model.

Interviews

Industry Experts

Experts were interviewed in order to test the business concept, gain informed external input, and gather advice and information on the logistical elements of their businesses. A variety of face-to-face, email, and phone interviews took place with the following experts; • Charlotte, Staff Member @ Another Space, London • Chatty Dobson, Founder @ FLEX studio, Chelsea • Holly McQueen, Founder @ Reformer Studios, Nottingham • Suzan Kerlo, Freelance Yoga Teacher • Percy Smith, Design Consultant @ Plant Plan UK • Odette Walden, Consultant @ Green Envee

Structured Interviews

Yoga Practitioners

11 yoga practitioners took part in structured interviews. These participants have varied yoga experience, from members of studios, to home practitioners. A set of identical questions were asked to each individual to gather both quantitative and qualitative data (Saunders, et al, 2019).

Observational Studies

Place: Sky Gardens (London)

Sky Gardens was visited in order to experience biophilic design first-hand and research the use and implementation of nature within interior design.

Observational Studies

Place: Another Space (London)

A yoga destination in London was observed to develop the current understanding of the market and competitors.

ADVANTAGES

LIMITATIONS

• A large number of responses were attained quickly and cost effectively by posting the survey online (Saunders, et al, 2019). • Specific social media platforms and online forums were used in order to target precise groups in society, gaining relevant and applicable data.

• Although responses were collected quickly online, anyone had access to the survey, which can spoil the results with unreliable data. • The data collected was heavily dominated by females resulting in unbalanced results. This can be viewed as a limitation; however, it does also indicate that female engagement with holistic fitness is much higher than that of males.

• Research states that instagram is the favourite social networking app of millennials (Benson, 2018), therefore the data collected is accurately representative of the target demographic.

• Instagram polls are not anonymous therefore, individuals may want to portray themselves in a certain light. Thus, some of the collected responses may not be accurate (Muratovski 2016).

• Various experts across different, relevant industries were interviewed. This allowed for a range of opinions and both qualitative and quantitative data to be collected, to be applied throughout the construction of the start-up business proposed. • Phone and face-to-face interviews allowed for spontaneous questions, flexibility and a conversational manner: thus, a genuine relationship could be built with the participant (Muratovski 2016). • Email interviews allowed for well-thought-out answers to the questions provided due to no time constraints.

• Due to the outbreak of COVID-19 it was necessary for a participant to be interviewed by email. This was a structured interview and the ability for further clarification on answers was lost (Muratovski 2016). • Due to workers being furloughed, some experts were unable to participate as initially agreed. • This project could have benefitted from additional interviews from more industry professionals, however due to COVID-19 causing time constraints, this was challenging, and research was limited.

• The varied sample of participants allowed different experience levels to influence decisions regarding the business model and branding. • By using a set of identical questions, the results collected can be compared with one another to identify recurring consumer needs and desires.

• With the outbreak of COVID-19, a focus group planned with interviewed individuals could not go ahead as some had no access or time to participate in online forums or video chats.

• Social anthropology allowed for insightful data to be interpreted regarding the consumer engagement with biophilia (Saunders, et al, 2019). Thus, informing some of the decisions made in regard to the construction of the brand. • Experiencing biophilic design first-hand enabled a more educated understanding of the functional and aesthetic value.

• As social distancing measures were put into place when visiting the venue, the anthropology data may not be a true reflection of consumer engagement with surroundings.

• Physically visiting an existing boutique fitness studio in London allowed for an authentic perception to be developed on the reality of a similar operating business. This primary experience influenced the foundations of the proposed business structure. • During the visit, a spontaneous face-to-face interview was recorded, providing in-depth knowledge of the studio operations; this meant that more sensitive data could be collected as the employee did not have to write anything down (Saunders, et al, 2019).

• Although these observations were insightful, the studio was busy with clients and the interview time limited. • Only one member of staff was interviewed upon the visit, and as such the information provided may be bias.

SECONDARY TABLE 1.2

METHOD

RATIONALE

Books

Various books were read to form an in-depth knowledge across several subjects. This includes stress management, the history and implementation of biophilic design, the different practices of yoga and a variety of marketing methods. The information gathered provided valuable insights that influenced the finalised business model.

Journals

Journals provided scientific evidence to justify decisions made in the process of constructing the business foundations. The proposed brand is partially informed by secondary findings and data from previous social experiments.

Reports

An assortment of industry reports presented applicable statistics and data that could be interpreted to draw educated conclusions. This allowed for assumptions and estimations to be made in order to forecast the success of the planned business.

Online Articles and Websites

Online articles and websites produced up-to-date, relevant information and case studies that inspired the formation of the finalised brand. Market research was also conducted online to comprehend the context of the appropriate industry for the venture.

THE OPPORTUNITY

2.0

2.1 STAGE 1 REFLECTION Extensive research allowed for valuable insights to be drawn regarding the behaviour and attitudes of young millennials, concerning holistic wellbeing as a method of stress management. Living in an era of constant communication and ever-developing urbanisation, this generation lacks awareness of practical, techniques to treat their stress. Handling pressure in an effective manner is challenging for this generation without confidence and knowhow. As highlighted within the report (Green, 2020), the false correlation, between the accelerating progress of civilisation and ascending stress levels, is explained as ‘time sensitive’ stress, relative to each generation (Fink, 2010). Consumers in modern society are exposed to health issues caused by urbanisation. This is an unavoidable outcome of a growing population and advancing technologies, resulting in more consumers than ever, living in cities where a natural environment is hard to access (Beatley, 2016). Research identified that those communities exposed to more pollution are most susceptible to both physical and mental health issues, including chronic stress (Hood, 2010; Thompson, 2019). With this being a key issue faced by millennials, as they become young professionals working in metropolitan cities, it is paramount that young millennials have viable coping mechanisms that benefit their health holistically to ensure positive wellness both mentally and physically. A range of pro-health and stress combatting methods do exist, however as highlighted throughout Stage 1, (Green, 2020, p.44) “48% of millennials do not practise any holistic wellbeing methods” despite being aware of them, thus demonstrating their lack of knowledge and inferring these activities are not something particularly aimed at this demographic presently. An innovative business concept aimed at young millennials, enhancing their wellbeing in a holistic, contemporary manner, could fill this opening, creating practical coping methods as the world develops.

2.2 KEY INSIGHTS

Nature is a significant stress reliever, however with many young professionals and pivotals living in a city for their profession, it is hard to access, and instead these consumers are constantly surrounded by a polluted atmosphere.

Young millennials (18-30years) are aware of holistic coping mechanisms for stress and perceive it as something that is somewhat ontrend. However, engagement levels among this demographic are low as they are unaware of the tangible benefits and lack confidence to try it out, provoking them to turn to unhealthy coping mechanisms.

Young millennials crave experience when partaking in wellness methods; including activities like tourism, medispas, and contemporary classes. These experiences need to be â&#x20AC;&#x153;instagrammableâ&#x20AC;? and sociable to appeal to this particular demographic and should satisfy their need for adventure whilst aiding their journey to better health: mentally, physically and emotionally.

FIG 2.1

2.3 THE PROBLEM The problem identified as an outcome of the extensive research conducted, corroborates that younger millennials are neglected by the health and wellbeing market. Stage 1 research revealed that 58% of young millennial consumers always or very frequently feel stressed, with a further 30% confirming that they feel stressed frequently. With consumers facing generation specific stress (Bland, et al., 2012) due to contemporary societal problems such as a more industrialised world, constant communication and a heavier workload, the mental health of young millennials is deteriorating. Since 2013 there has been a 47% increase in major-depression diagnoses amongst this demographic. These climbing statistics confirm that this generation are disengaged with existing remedies available in the market. The lack of interest in existing stress-combusting pursuits is because they are currently marketed at an older audience. The stress felt by young millennials is predominantly caused by work (Heckman, 2019), something that is inescapable for almost all. As stress is perceived as a dismissive, temporary emotion, the serious side effects are often overlooked; if ignored various psychological and physiological disorders can occur (Bergquist, 2015). Urbanisation is a modern process which consumers are compelled to adapt to. City dwellers have not necessarily considered the negative influence it has had upon their health, for example; physical health complications and mental health difficulties, like stress. The Global Wellness Institute explains that “in 1950, around 30 percent of the world’s population lived in urban areas. By 2018, that number was 55 percent, and, by 2050, it will be 68 percent.” (Walsh and McGroarty, 2019) Various welfare-damaging, environmental forces occur as a consequence of urbanisation, such as pollution in the air, water and land (Edlin and Golanty, 1992) and with numbers of distressed millennial individuals inclining, the correlation between further developed city environments and poorer mental health is yet to be effectively treated. The gap in the market, to provide a genuine, innovative solution to treat these illnesses and maintain positive health, becomes more obvious.

58% OF YOUNG MILLENNIALS VERY FREQUENTLY STRESSED

47% INCREASE IN MAJOR-DEPRESSION DIAGNOSES

55% OF THE WORLDS POPULATION LIVING IN CITIES

2. 4 T H E O P P O R T U N I T Y PLATFORM FIG 2.2

Combining the concept of holistic well-being with urban settings, is referred to as “Wellness City” (Anttiroiko, 2018) This theorises an individual’s pursuit of a holistically healthy lifestyle in an urban setting; a densely populated human community, replete with infrastructures, technologies and complex services. Primary research previously discovered that the younger millennials lack accurate comprehension of the term ‘Holistic Wellbeing.’ Even as drivers of the self-care movement (Independent, 2019), only 39% of survey participants understood the phrase, inferring that the current holistic wellness market is aimed at a mature audience, ignoring the specific needs and desires of young millennials. Supporting this theory, industry research states that there are insufficient ‘niche considerations’ for millennials in terms of eco-resorts and yoga retreats. (McGregor and Smith, 2018) In order to accurately address this absence, the ‘Y Model,’ constructed by Anttiroiko (2018), was studied to underpin the contemporary factors of a “wellness city,” and develop an effective solution. The “tools, amenities and environments” sector presents various business opportunities to treat the previously mentioned health issues and fill a gap in the market. Within this sector, entertainment and urban amenities such as nature, are sub-categories, crucial to a functioning wellness city. Research confirms that doctors prescribe ill patients, a visit to natural spaces (Walsh and McGroarty, 2019); this exemplifies the need for green spaces within urban areas. Alternative physical therapies can also be prescribed to lessen the burden of prevailing health complications, such as yoga. Yoga is gaining momentum within society, (Shashi, 2020) promoting healthier emotional, mental and physical well-being, comparable to the previously stated benefits of nature. When millennial consumers were asked why they do not currently engage with activities such as yoga, popular responses revealed that they “did not know enough about it,” “it seems boring,” and they “feel too intimidated or young to participate.” (See Appendix 1.0) By combining both the nature and entertainment attributes of the ‘Y model,’ an innovative solution targeted specifically towards young millennials will successfully fill a gap in the market, blending various health benefits in one facility, with a contemporary execution.

ARCHITECTURAL WELLNESS The health and wellbeing trend is dispersing into different market sectors that have typically never been associated with the concept before. With global pollution levels increasing and the quality of air depleting, designers are creating innovative ways to construct and maintain pure, uncontaminated environments in which consumers can live and work (Global Wellness Summit, 2018). A new movement in community design has become apparent, confronting generational issues such as stress, societal seclusion, air pollution and nature deprivation, caused by an industrialised world (Smith, 2018). The implementation of nature throughout architecture and interior design shifts the purpose from aesthetical appearance, to functionality of design, with the intent to improve consumer health. This use of greenery, foliage and plants for architectural purposes is known as ‘biophilia’ or ‘biophilic design.’ Experiencing biophilic interiors is a new luxury concept, with hotels and spas tapping into the trend to enhance their destination; consumers living in cities are paying to be immersed within accessible natural surroundings (Walsh and McGroarty, 2018).

MENTAL HEALTH AWARENESS

FEMALE SELF CARE SPACES

Mental health awareness has grown dramatically within recent years as the number of sufferers dramatically increased. As stated by the World Health Organisation (2019), one in four people will be affected by a neurological disorder in their lifetime such as depression, anxiety or stress. This statistic has sparked educational conversation surrounding the topic, with the intention to lessen the burden for those experiencing mental health issues. With a whole week in May dedicated to raising the awareness, it is now being suggested that awareness should be actioned by changed behaviour (Burnett, 2018). There is an increasing demand for innovative interventions to be implemented, to treat those who are facing mental distress, as further financial cuts are made to the National Health Service.

Self-care has recently become a vital part of consumersâ&#x20AC;&#x2122; personal lives. New community spaces have been created, dedicated to enhancing the emotional welfare of consumers (Smith, 2017). This has evolved from the social wellbeing trend; encouraging consumers to partake in wellness activities in groups and societies, building on competitive spirit and feelings of accomplishment. Alongside fitness groups, female-led workshops are gaining popularity: mindfulness classes and therapy sessions that enhance emotional intelligence in a group environment (Smith, 2017). Group therapy previously provoked feelings of embarrassment or shame, however the negative stigma has been disregarded and instead a feeling of unity has evolved. Female self-care spaces are now perceived as beneficial and enjoyable experiences; new businesses building on this concept are becoming prevalent within society.

2.5 MICRO TRENDS Influential micro trends, within the Health and Wellness macro trend, have been identified and analysed to detect opportunities for a new business solution.

2.6 IDEA GENERATION IDEA 1

IDEA 2

IDEA 3

TRAVEL WELLNESS

MEDI-SPA

BIOPHILIC STUDIO

The following ideas were identified from a venn diagram shown in appendix 6.3 demonstrating the overlap between market drivers and changing consumers needs.

After consideration, the airline idea was translated into a concept that is more feasible for the specified demographic, producing a new venture; bringing the unaffordable, luxury wellness vacation to the younger consumers living in the UK. This would be executed as a MediSpa aimed at young millennials. Spa retreats are the pinnacle of the wellness tourism industry; interest and footfall are growing. However, the younger demographic demands a wellness experience that incorporates a sense of adventure alongside spa treatments, with advanced therapies and innovative services being offered (McGregor and Smith, 2018) Incorporating a holistic health outlook, an indoor, jungle-themed medi-spa became a practical business solution, bringing the health benefits of exotic nature, found at overseas spa retreats, to a luxury, urban experience.

Further to the ideas previously explored, a more realistic concept was created that could remain luxurious and still target the younger demographic. Boutique fitness studios are reinventing the way consumers can improve their health; delivering consistent, high-energy classes, enhancing the motivational aspect of training (Baum, 2019). The medi-spa was successively developed into a boutique, holistic fitness studio; an idea that is more feasible and incurs less startup costs than both previously stated opportunities. Although this idea is still ambitious, it is innovative and has the potential to effectively treat mental and physical health issues suffered by young millennial consumers, in an enjoyable and practical way. Keeping the ‘indoor jungle’ concept, deduced from the wellness tourism trend, this biophilic, holistic fitness venue will be a health hotspot for younger consumers, and has the prospective ability to gross a substantial profit. This venture would satisfy the millennial demand for niche eco-resorts and yoga retreats (McGregor and Smith, 2018), in a holistic, contemporary approach.

As the wellness tourism trend gains momentum, new business opportunities are developing within the travel market, to provide a holistic wellness experience (Bishop and Faramarzi, 2019). It is important to consider how the trip can incorporate well-being from departure to return. Wellness in travel is an innovative concept, new to the market; it applies to both ends of the travelling spectrum, from the idea of a healthy commute to work, to a wellness trip abroad, suiting the new trends and busy lifestyles of consumers. An idea that originated from this concept was a well-being airline that flew specifically to tourist health destinations such as Thailand, where the flight is a long part of the trip. This would target those with ‘flying anxiety’ and would contribute to a completely healthful trip. This was a business idea that originally seemed attractive to pursue as a new concept with little existing competition in the market. However, this opportunity would entail exceptionally high start-up costs, incurring a very high price for a plane ticket per passenger. Thus, concluding unfeasible for the younger millennial target audience, and therefore an impractical business solution.

TABLE 2.1

Despite this concept being highly innovative and functional, the profitability was questionable. The spa industry is largely driven by Generation X (McGregor and Smith, 2018) due to their excess of time and larger disposable income. that can be spent on luxury experiences. As the younger millennials are very much at the beginning of their career, they do not have the same amount of money as those who regularly visit spas, highlighting the main flaw of this business concept. Equally, this generation does not have as much leisure time available as those who frequent spas, who are quite often retirees.

2.7 BUSINESS OPPORTUNITY The opportunity identified has amalgamated from several highlighted micro trends, in order to solve the key insights, gathered from the Stage 1 report. The business concept is a biophilic yoga studio that fuses the health benefits of nature with those of fitness, promoting holistic wellbeing. The USP of natural interior design will differentiate the brand from competing studios, ensuring that a green space is accessible to those living in a city surrounded by pollution and industrialisation.

2.8 CONSUMER TESTING The viability of the business proposition was tested through an online survey in order to gauge consumer interest. 84% of participants liked the idea and contributed qualitative reasoning.

Participant 45, 2020

“Definitely! We need to bring more GREEN to our surroundings (home, workplace, streets, everywhere). Plants are nice and more importantly makes us [feel] calmer, air is fresher, we function better, great idea for everyone.” 20

Participant 45’s response exemplifies the demand for nature in metropolitan areas, suggesting that the proposed idea would be successful. When studying the answers of those who responded negatively, the following issue was raised: “The greenery could make the studio feel dark and small.” (Participant 81, 2020) Observational studies at Sky Gardens informed that biophilic design is comfortable with the right balance of foliage and light; this will be applied throughout the studio interiors, to avoid an overpowering atmosphere. To further confirm the success of this concept, 12 experienced yogi consumers participated in interviews; 100% of these consumers liked the concept and stated that they would use it (see appendix 2.0-2.13).

2.9 EXPERT FEEDBACK Industry expert Holly McQueen shared useful views, advice and opinions in order to aid the development of the business solution. Excerpts of the interview (see appendix 3.2), as listed below, were pivotal in developing the brand;

H O L L Y M C Q U E E N, 2 0 2 0 “…So, to create an environment that is about self-love, self-respect and self-care, you should really make it about looking after yourself and empowerment especially and feeling good in your own body. I’ve always said life is about balance, you should be able to go and do your Pilates class or your yoga class and then go and have a glass of prosecco” “I think what would really, really work for your concept and your studio, is picking up on the fact that London is so isolating and how fast paced it is and to really focus on slowing down and channelling your emotions… really market the fact that your consumers will feel good about themselves in a safe and comfortable and most importantly fun place… [consumers are] going to get a lot from [their] experience at your studio, you don’t just want to go to feel fit, you want to go because it makes you feel good!”

Additionally, the concept was presented to expert Chatty Dobson (see appendix 3.1) When asked if she thought the concept would work in the real world, she answered with the following;

C H A T T Y D O B S O N, 2 0 2 0 “Yes. Humans, particularly in cities such as London like proposed, are so devoid of nature – whether it be from a lack of open space close to where they live or work, because they spend the majority of their time indoors at an office, or a huge number of other reasons – that they are no longer reaping the rewards that the biophilic design would bring. [Also], the Instagram generation will go anywhere for a decent photo. We have seen this time and again, whether it’s a fitness studio, café etc. In many instances’ individuals travel more for the photo than because they think they’ll actually benefit from the product.”

Both insightful interviews assisted the realisation of the final business concept: Evergreen Yoga Studios.

2.10 THE BIG IDEA Evergreen Yoga Studios (EYS) is a contemporary, biophilic space for the practice of yoga. The brand offers an innovative approach, executed through premium, inclusive teaching. EYS will be reinventing the discipline; with a contemporary variety of classes, that reduce stress and promote a healthy mind and physique. Delivered in a tropical, biophilic atmosphere, nature becomes accessible for those situated in the city. EYS will be a holistic hotspot in London for those wanting a studio membership or equally a fun day-experience. The studio will provide various health benefits through biophilia, yoga services and a Tea infusion bar; promoting consumersâ&#x20AC;&#x2122; mental, physical and emotional wellbeing. EYS will operate as a fitness location and a sociable community for like-minded young professionals; reducing feelings of isolation and intimidation provoked by relocating to an overwhelming metropolitan city, for career prospects.

WHAT? - A holistic yoga studio designed with natural elements (biophilia). - Delivering yoga classes in a natural WHY? - Aimed at the young indoor enviornment. professional - Young millennials can demographic. - Avoiding the reap the benefits of nature intimitading when living and working in the city. - Based in central yoga jargon in London, in a classes and - Offer an innovative holistic wellbeing convenient location. communications. service that specifically appeals to young millennialsâ&#x20AC;&#x2122; wants and needs. - Easy booking - Hold social process and and educational - To provide a community for those modern events frequently, feeling isolated in such a large city. communications. and utilise 2 way communication tools. HOW?

FIG. 2.3

2.11 THE GOLDEN CIRCLE The Golden Circle model (figure 2.3) has been used to illustrate why consumers will purchase the proposed service at EYS.

2.12

BRAND EQUITY MODEL

Consumers are the main focus of the brand; Kellerâ&#x20AC;&#x2122;s consumer-based brand equity model (CBBE) has been applied to demonstrate the desired perceived value of EYS.

FIG. 2.4

RESONANCE Reliable, Caring, Helpful, Community

JUDGEMENTS

FEELINGS

Contemporary, Beneficial, Luxurious, Youthful

Calm, Self-Care, Enjoyment, Freedom, Happiness

PERFORMANCE

IMAGERY

Innovative holistic fitness. Unique, luxury environment. Premium classes.

Green, Zen, Tropical, Fun, Healthy, Social

SALIENCE Natural oasis, health hotspot, an inclusive yoga community, innovative holistic fitness service.

THE MARKET

3.0

3.1 PESTLE ANALYSIS A PESTLE analysis examines the external macro environment that EYS will be entering. This considers Political, Economic, Social, Technological, Legal and Environmental forces.

TABLE 3.1

POLITICAL

ECONOMIC

• According to the Labour Leader, the National Health Service is suffering due to being “understaffed and underfunded.” (BBC, 2020) With this knowledge, consumers may opt for a “positive wellness” lifestyle approach to prevent future illness and maintain a healthy physical state. A growth in engagement with holistic fitness, such as yoga and meditation, could occur due to activities such as these being renowned for their multitude of both mental and physical health benefits.

• Consumers’ financial and economic confidence is at the highest it has been since 2009 which creates a positive outlook for the future (Partington, 2020). Along with this, consumers are showing less pessimism towards employment security, indicating that more people are employed and are financially stable. The future of consumer spending on leisure activities, such as health and fitness, looks promising as a result of this finding, as more people will have a higher disposable income than previous years.

•In 2019, 133,000 young people were turned away or denied treatment from the NHS for mental health issues after failing to meet certain criteria regarding their state (Rose, 2020) This statistic implies that there should be alternative mental health treatments that are targeted at and appeal to the younger demographic in order to address this lack of support that this generation are receiving.

• The recent experience economy macro trend that attracts a large amount of consumer expenditure (Szymanska, et al., 2017) This trend may impact the wellness industry as consumer demands are changing, meaning that venues such as fitness and health clubs could begin to adopt an experiential approach with classes etc in order to attract a larger audience and enhance their appeal.

SOCIAL

TECHNOLOGICAL

• With the UK unemployment rate being at the lowest level since 1975 (BBC, 2019) this suggests that metropolitan cities will be more populated than ever with professionals and employees. To further justify this, the percentage of graduates in degree level roles has “risen from 41% in July to September 2002 to 49% in July to September 2017,” (ONS, 2017, p.14) confirming that the number of working young professionals is increasing. With this, a higher demand for leisure activities for these people will occur simultaneously with the intent to unwind after work.

• With around 3.5 billion people around the globe having constant access to a smartphone (Statista, 2020), a connection between smartphone activity and stress has been highlighted (Vahedi and Saiphoo, 2018). Evident with millennial and Gen Z consumers is a ‘communication overload’ issue, causing these consumers to suffer with stress, anxiety and other mental health complications as a consequence of frequent technology usage. This will impact the number of consumers looking for therapies and treatments to solve these health issues and alternatively as a recreational break from the mental strain of technology.

• As many stores on the high-street fail to meet targets and develop with changing consumer needs, a large number of retailers are opting to close stores across the nation. As Mintel states (2019) ex-retail units make for ideal health and fitness club venues, as they have high footfall and ideal central locations for those living in cities, thus, impacting the growing number of boutique fitness clubs in city locations. • Young women in society are becoming more inspired than ever to participate in exercise; this is due to celebrity influence, wearable devices, apps and social media networks, (Euromonitor International, 2015) As a result, female dominated fitness clubs are seeing a rise in engagement and participation. Moreover, females are using social media networks to inspire others to engage in other activities alongside fitness. With the regular and sometimes obsessive sharing of activities and experiences online, consumers are feeling the “Fear Of Missing Out (FOMO)” (Dodgson, 2018). This feeling of anxiety can influence consumers to purposely visit a destination or partake in an event to avoid this feeling and to share on platforms such as Instagram, subsequently leading to increased footfall and attraction to certain places.

• The wearable technology trend has also induced a spike in female engagement with fitness; consumers are eager to improve their targets for a better physique with the ability to then share this information on social media amongst friends, creating competition and inspiring others to do the same (Euromonitor International, 2015).

• Consumer lifestyles are busier than they ever have been, however not at the expense of good health (Entrepreneur, 2019). As consumers still partake in health and fitness routines, despite being time limited, the need for convenience is increasing: the public are choosing to attend fitness destinations closer to work or home, boosting the demand for boutique fitness clubs in favourable locations, rather than chain companies that consumers may have to travel to (Mintel, 2019).

LEGAL

ENVIRONMENTAL

• The Prime Minister has defended the government, arguing that record amounts of funding are going into the NHS as new laws are currently being passed in order to ensure this happens (BBC, 2020). As debate and protests surrounding this statement continue, the NHS continually loses the trust of consumers. As a result, privately owned health and fitness businesses could see a surge in footfall and memberships as consumers will want to improve their personal health to avoid needing NHS treatment and instead using alternative therapies to sustain their health and prevent illness.

• Urbanisation is a macro trend that constantly evolves and changes the way in which consumers live. Although there are many positive implications of this for example; more job opportunities, there are also various detrimental impacts, hindering the health, quality of life and the natural environment that surrounds consumers (Boyle Torrey, 2004) This is due to increased land, water and air pollution; with large amounts of the population living in urban, city landscapes, “nine out of ten people are inhaling polluted air” (Chiu, 2019) According to research, air pollution specifically has recently been connected with poor brain health, contributing to increased psychological disorders like dementia, depression and anxiety, all issues that are stress related. To treat this stress, nature and holistic fitness can be helpful to promote good health and quick recovery. • As the world faces environmental damage like ocean pollution and climate change, consumers are becoming more conscious of their environmental footprint. It is becoming increasingly important to consumers how brands resonate with their personal values. Research states that 47% of consumers avoid products and services from a brand that violates their personal values, with the environment being their biggest concern; confirming that they would also be willing to pay more for a product or service that is sustainable (Rosmarin, 2020).

3.2 PESTLE SUMMARY The most prominent external forces, that could influence the success of EYS, stem mostly from political, social, environmental and economic trends. The extensive debate regarding NHS investment, has negatively impacted consumer trust in the healthcare system: EYS may subsequently see enhanced engagement as consumers adopt a holistic health approach. Urbanisation brings various consequences, such as reduced green spaces and polluted nature. Consumers dwelling in metropolitan cities struggle to access nature and the health enhancements it offers; instead they are harmed from the pollution. EYS will appeal to consumers living and working in cities, providing an accessible biophilic environment. Sustainability is another increasingly important subject: EYS will thoroughly consider their ecological footprint. To avoid harming nature, sustainable products will be chosen, thus avoiding a negative brand image. Urbanisation causes both environmental and societal changes; consumers have busier lifestyles as a result of additional jobs thus, initiating convenience culture amongst younger millennials. As consumers have less time, it is a fundamental expectation that services are convenient to consumers and fit into their demanding schedules. EYS will also capitalise on the FOMO social trend to ensure a healthy footfall. Social media trends will also impact the communication strategy to ensure that EYS remains up-to-date and current. Relating with the FOMO concept, experience economy will prove to be another positive external influence for EYS, as the brand will create a unique, immersive experience. This will drive curious consumers to the studio, increasing footfall. Other external macro trends, identified throughout the PESTLE analysis, will impact the triumph of EYS, however those specifically outlined in conclusion, will have greater force over business operations. The legal and technological trends will both be actioned by EYS to ensure that the business can operate effectively, however they will not impact significantly impact the brandâ&#x20AC;&#x2122;s performance.

3.3 MARKET HEALTH The Global Wellness Institute (GWI) state that the wellness economy was valued at $4.2 trillion in 2018, and currently has a faster growth rate than overall global economic growth (Global Wellness Institute, 2018). This industry at present represents 5.3% of total global economic output. The ‘Fitness and Mind-body’ sector, including gyms and health clubs, accounts for a large portion of this; in 2017 the GWI calculated that this particular sector was worth $595.4 billion with an annual growth rate of 4.8%, highlighting that the Fitness and Mind-body sector is a healthy market to enter (Global Wellness Institute, 2018). More specifically, the UK health and fitness club industry, is additionally in good health and remains at a steady growth rate: the market reached a value of nearly £3.4 billion in 2019, growing by 1.1% from 2018 (Mintel, 2019). With the number of consumers owning a health and fitness club membership passing the 6 million mark in 2019, the number of boutique fitness clubs opening is growing simultaneously, as consumers are demanding more specialised fitness experiences from the market (Mintel, 2019). The boutique fitness club market is the primary market in which EYS will operate. This industry has grown by 121% between 2013 and 2017, being the fastest growing brick-and-mortar exercise category, accounting for 40% of the UK’s total health and fitness club memberships (Biron, 2019) This foreshadows a prosperous future for Evergreen Yoga Studios.

£3.4BN Value of the UK Health and Fitness Club Industry

6MILLION UK Memberships at Health and FItness Clubs

121% UK Boutique Fitness Club growth between 2013-2017

3.4 MARKET READINESS It can be determined that EYS will succeed within its primary market; boutique fitness. Young millennials are the first to reach adulthood having had constant access to technology from a young age. Consequently, they have become more disconnected from nature than any other generation gone before, leading to an increase in physical and neurological disorders (Walsh and McGroarty, 2018). The need for natural spaces, to serve as treatment for health complications, is greater than ever. Being in a natural environment reduces blood pressure and feelings of depression and simultaneously increases creativity and blood flow (Walsh and McGroarty, 2018). With a unique, biophilic concept at the core of the brand, EYS will thrive in the boutique fitness market as a highly differentiated business concept that is especially relevant, as a new demand for â&#x20AC;&#x153;green exerciseâ&#x20AC;? becomes apparent. It is an ideal time for a natural, holistic yoga studio to enter the market to assist millennials who are experiencing generation specific health complications.

MORE TIME SPENT AT FITNESS VENUES The amount of time consumers spend at fitness venues has increased over the years due to an amplified interest in personal well-being; driving the UK health and fitness market. With an emphasis on healthier lifestyles, a third of consumers are now visiting a fitness venue at least once a month (Mintel, 2019). Another contributing factor to the increase of fitness club memberships is location; gyms and fitness studios are choosing to base themselves in a wider variety of places, making them more convenient and accessible for consumers. The European health and fitness market saw a 4.6% increase in the number of clubs, driving the total number of active members up by 3.5% (Deloitte, 2019) illustrating that with more accessible locations near workplaces and homes, consumers are more likely to become regular members.

DIVERSIFICATION AND SPECIALIST Diversification is also currently driving the health and fitness club market. Consumers are consciously moving away from ‘one-sizefits-all’ gyms are looking for niche offerings that specialise in their interests (Mintel, 2019). The health and fitness club market is seeing a rise in boutique fitness studios, that focus on single-format exercise in order to improve technique and skill (Bishop and Smith, 2019; Mintel, 2018). This brings fun to consumers’ working out routines and creates a sense of community with a competitive yet social atmosphere; known as ‘The Kohler Effect’. This theory describes when “less-capable group members increase their efforts on group tasks, particularly in highly interdependent tasks.” (Osborn, et al, 2012) Therefore, consumers who resonate with this theory prefer to push themselves by attending a class, with a highly motivational atmosphere, to reap better results. For boutique offerings, the location and site numbers are frequently smaller than those of chain fitness clubs, subsequently making classes feel intimate, adding a greater value. Consequently, prices can be a lot higher than those gyms running on a larger scale due to the premium experience offered (Mintel, 2018).

3.5 MARKET DRIVERS 34

3.6 COMPETITION ANALYSIS PRIMARY COMPETITION As established EYS is situated primarily within the boutique fitness market; Table 3.2 analyses the closest competition for the brand, they all deliver holistic fitness classes rather than high intensity exercise. The primary competition has been displayed on two maps (see figure 3.1 and 3.2 on pages 38 and 39) in order to identify how EYS positions in the market compared to existing brands. Research confirms that there are currently no biophilic fitness studios in London however, from January to February 2017, Biofit launched a pop-up, biophilic gym showroom in West London. This business has a B2B strategy; they developed this showroom as a pitch to potential partners that would be interested in applying this to their own fitness spaces (Biofit, 2017; Appear Hear, 2017). Since, there have been no natural fitness studios launched within the London boutique fitness market, however the multitude of positive media attention that Biofit received, indicates a positive future for EYS.

SECONDARY COMPETITION EYS is a specialist fitness studio as explained within Market Drivers. Competition such as SoulCycle, Rowbots and The Fore offer specialist fitness that is not holistic like the primary competitors. These competitors are placed on the maps on pages 38 and 39 as well, to ensure a large spectrum of both direct and indirect competitors are accounted for when differentiating from the market.

TABLE 3.2

BRAND

OVERVIEW

MARKETING APPROACH

Another Space

Overview: A premium boutique fitness studio, offering three forms of exercise including Yoga, Spin and HIIT under one roof. They also operate on Classpass and Mind Location: Covent Garden & Bank, London. Price: £20 per single class.

Another Space collaborate with Hotels and Apartments in areas of London where they offer residents a 20% discount on any class. They communicate through various magazines and Instagram predominantly. This brand also offers discounted block bookings. Another Space attains consumers through the external booking site Classpass.

FLY LDN

Overview: An immersive yoga experience with a cinematic display for a multi-sensory approach. This brand has a non-spiritual approach to yoga, opting not touse specific jargon. Along with yoga classes, consumers can participate in strengthening classes also. Location: Aldgate, London. Price: £17 per single class.

FLY LDN collaborate with different wellness events around London in order to engage new consumers. The business also has a b2b marketing method by offering corporate wellness packages and popups to external companies. Again, this brand uses online and physical magazines to reach their audience and grow their consumer base.

ChromaYoga

Overview: An immersive yoga experience using light therapy and colour psychology techniques along with soundscapes and natural scents. Location: Shoreditch, London. Price: £15-17 per single class.

ChromaYoga use introductory offers where consumers can pay a discounted price for an unlimited class pass for either 7, 14 or 30 days. This brand uses press release and magazines to increase brand awareness. ChromaYoga has a presence on Classpass and MindBody as a touchpoint for consumers.

Core Collective

Overview: An intention to make working out fun, innovative and effective. With a variety of formats and classes available Core Collective bring a fine experience in an array of unique spaces. Location: Kensington, Knightsbridge and St John’s Wood, London Price: £23 per single class.

Core Collective keeps a synonymous marketing appearance both online and offline, relying heavily upon social media for communicating with their audience. Core Collective has previously had launch events and used guerrilla offline marketing tactics to engage their audience when launching their new space. They offer discounts for taster packs and ‘buddy’ packages when booking with a friend.

Triyoga

Overview: Triyoga is a London based holistic fitness company with several bases around the city of London. They offer a variety of exercise classes such as yoga, Pilates, barre and other holistic therapies. Location: Soho, Camden, Shoreditch, Ealing, Chelsea, London. Price: £17 per single class.

Triyoga offer class bundles with discounts for the bigger block bookings. They communicate with their consumer through social media and relevant women’s fashion and lifestyle magazines to increase brand awareness. This brand has a presence on platforms such as Classpass and MindBody to make their booking process easy and to increase their brand visibility.

STRENGTHS

WEAKNESSES

SIMILARITIES WITH EYS

+ Luxury Aesthetic appealing to a large audience. + Three different exercise classes available in one location with a variety of skilled instructors and technology like infrared lighting for health benefits. + A smoothie bar to maximise the profitability of the venue. + A strong appearance on social media, especially Instagram where they have a large follower count.

- Limited space in the yoga studio equipped for 30 people. - No option for a membership decreasing the chances of consumers remaining loyal to the brand.

- Varied Classes with different instructors and health benefits. - Instagram communications as primary channel of interaction with consumers. - A refreshments bar for consumers to use before or after their class.

+ Various methods of booking, from single classes, block bookings and various different memberships to suit different consumer needs. + A large variety of classes are offered, including strength and conditioning, and Pilates classes to help build a stronger Yoga ability. + Having strong links with external businesses through offering corporate wellness packages. + Luxury facilities including a café and premium changing services and appliances e.g. Cloud 9 hair dryers etc.

- A moderate social media following that could be bigger. - Consumer reviews indicate that the classes can be quite challenging, therefore offputting for beginners.

- Taking a contemporary approach to yoga and opting to avoid the spiritual connotations of yoga by using non-specific vocabulary. - The business has a café in the premises. They offer a unique immersive experience.

+ They offer a very unique and immersive experience that is not offered elsewhere. + A variety of classes are offered to suit to different consumer needs. + A strong brand awareness due to frequent media communications.

- Low social media following and engagement rate in comparison to other London Boutique Studios. - Classes are viewed to be challenging and unsuitable for beginners.

- An immersive yoga experience. Scientific physical health benefits from the surroundings. - A variety of Yoga teachers and styles offered to suit different consumer desires.

+ They have multiple spaces in the centre of London, so the brand is accessible around the city and a strong omnichannel offering. + A clean kitchen is featured in the Kensington Core Collective Venue, that serves as a restaurant and attracts consumers to the venue even if they do not intend on exercising. + They offer classes in multiple disciplines, not just yoga, and feature these in an online format known as ‘CCTV’ to give consumers the option of attending online lessons.

- The number of consumers is outgrowing the facility, there are cases where there are not enough lockers etc. - Can be overwhelming to look at and book on the website, as there are various complex membership and booking options.

- The focus on innovation being at the heart of the brand. - Having a strong instagram appearance is a similarity with EYS due to having a slightly younger target demographic therefore to keep the brand relevant, a strong instagram page will be needed.

+ Multiple locations to ensure a large audience from various areas of London. Various revenue streams as the brand offers retail spaces in some of their locations along with cafes, beauty therapies etc. + A well-established brand with a large social media following and a strong website that is easy to navigate.

- Although they are a slightly bigger company, they have a weak USP and could therefore lose consumers to more innovative and niche yoga offerings in London. - No membership option, meaning that they could be losing brand loyalty.

- The business has various revenue streams to maximise their profitability, which is a target for EYS. This includes a café and retail offering. - Having a strong social media presence to connect with consumers.

FIG. 3.1

3.7 MARKET POSITIONING Two market positioning maps were constructed with different axis labels in order to illustrate where EYS will sit in the market alongside their competition. In the first map the axis measure how holistic the brands are with their well-being approach, and how immersive the experience is. As secondary research revealed that young millennials desire an adventurous experience (McGregor and Smith, 2018), it is important that EYS exist within the top right quadrant on the graph to ensure they are immersive and holistic, therefore differentiated from their competitors.

FIG. 3.2

The second map exemplifies the level of luxury in correlation to the age of the brand’s target consumer. As shown, there is a gap in the top right quadrant where EYS is placed, displaying an evident gap in the market for the brand. The closest competitor to EYS within that area is ‘SoulCycle.’ Although the brands are close in terms of this market positioning map, they offer a different fitness discipline thus, denoting that SoulCycle does not pose a threat to EYS.

THREAT OF NEW ENTRY

With the value of the health and fitness club market growing, it can be perceived to be a very attractive market to enter. With this being said, in the particular location of London where EYS will be situated, it can be argued that the barriers to entry are exceptionally high due to the large capital requirements and the highly competitive nature which can be off putting to new start-ups. However, due to this city being densely populated and renowned for boutique fitness studios, there is an imminent threat of new yoga businesses starting up in the same location. This is evident due to the yoga market still being in stages of growth and therefore an attractive market to enter. Despite this being perceived as a threat for EYS, it can also work in the company’s favour as “it can also increase footfall, raising the number of customers visiting the area and encouraging healthy competition.” (Posner, 2015 p.74) Furthermore, as urbanisation continues, the need for green spaces around the city will become more prominent thus, making the ‘natural USP’ appeal to more new start-up businesses.

BUYER POWER

The bargaining power of buyers for EYS is moderate due to the amount of yoga and fitness clubs that exist in London. However, with a growing consumer demand for yoga businesses (Euromonitor International, 2015) there is space in the market for new businesses and increasing consumer interest for contemporary, innovative yoga studios. Thus, highlighting that if a new business has a current, advanced concept then they will have some bargaining power as the consumer will have less ability to substitute for a similar service offered elsewhere. With a distinctive brand and a truly unique selling point, EYS will be able to charge premium prices, subsequently enhancing the business’ profit margins (Strong, 2014). However, these premium prices must also remain comparable with the other luxury boutique studios in London, to ensure that EYS can compete in the market and avoid deterring customers to a more reasonably priced alternative.

RIVALRY AMONG EXISTING COMPETITORS

The boutique fitness and yoga market is healthy in London, with specifically 111 mind body studios already operating within the city (The Leisure Database Company, 2018). The rivalry poses as a mild threat for EYS, the market is not yet saturated: there are a variety of different yoga offerings present around the city, most differentiated from one another to appeal to different consumer demographic and psychographic variables. EYS will offer a niche concept and therefore fulfils different consumer needs and desires to those already operating. However, in this industry, the barriers to exit are high due to property contract agreements, and the nature of high fixed costs for businesses like these, decreasing the chances of any existing competition leaving the market. To avoid the threat of existing competition, for a new boutique yoga fitness business to be able to compete and thrive within the city of London, it should be highly differentiated and maintain a high standard of quality in order to retain loyal consumers and attract new ones.

SUPPLIER POWER

As EYS is providing a specialist, exclusive service, the bargaining power of suppliers can be high. As the main USP of this service is the biophilic design element then the chosen biophilic interior designers will have more bargaining power due to the uniqueness of their style and quality, and the suitability to the EYS brand. Furthermore, the bargaining power of the yoga instructors will be high; EYS will provide an elite service and therefore want the most prestigious yoga experts within the area to conform with the high-quality brand image. As there will be few who adhere to the precise requirements with extensive experience, they will be likely to dictate their own terms (Strong, 2014). To moderate this power, regular class reviews should take place in order to ensure the level of service does not fall below expectations, maintaining the same level of high quality as initially agreed. However, there are other items that will be externally sourced which EYS will have high bargaining power over; e.g. the yoga equipment and speciality tea bags for the Tea Bar. As there are various different suppliers for these products, the power will remain with EYS as the company will have the ability to substitute for other suppliers if some do not meet the practical requirements.

THREAT OF SUBSTITUTION

This yoga studio has a highly differentiated USP, with nothing of the same concept in close proximity meaning that there is less threat of substitution. If consumers are able to find a similar service within the area however, they may change their custom (Posner, 2015) therefore EYS should capitalise on the brand USP: the health benefits and unique experience offered through nature implemented throughout the studio. This should be executed within marketing and communicating to ensure that EYS will minimise the risk of consumers turning to alternative services within the area as they do not offer the advantages that EYS do. Moreover, EYS should choose a feasible pricing strategy in line with other boutique fitness studios in the geographical area to be able to compete and avoid deterring interested consumers.

3 . 8 P O R T E R’ S 5 F O R C E S FIG. 3.3

3 . 9 P O R T E R’ S 5

FORCES SUMMARY

Porter’s 5 forces model (1979) was applied to identify the competitive intensity and attractiveness of the London boutique fitness market, to begin shaping the corporate strategy for EYS. It can be concluded that the boutique fitness/yoga market is attractive to enter. Presently, the threat of substitute services is low due to EYS’ USP fulfilling a niche gap in the market. There are already numerous other yoga studios around London, however none offer the specific health benefits that are available at EYS. The existing competition in London is healthy as it assures the apparent demand for boutiques studios in the area; this competition is not off-putting and may enhance the footfall as previously explained. The risk of new competition is one of the most threatening forces for EYS. The current health of the market may inspire more yoga businesses to launch in London. Additionally, the need for natural spaces in the metropolitan area will increase as industrialisation continues. Should an existing brand attempt to extend and diversify into this area, or another new business have a similar concept, EYS will need to build consumer loyalty from the outset in order to mitigate these threats and compete within the market. Due to the nature of exclusive services, the threat of suppliers is relatively high in order to fulfil the brand’s specific needs; in this instance, the biophilic interior designers and expert yoga teachers. However, for other crucial materials like yoga equipment and tea, there is a sufficient number of suppliers, balancing out EYS’ supplier power. The buyer power for an up-market service as such, will be tolerable due to the innovative nature concept at the core of the brand, allowing for EYS to differentiate from current boutique studios already operating in the market. The pricing strategy must remain rational to contend with competitors in the area and evade consumer migration. Overall, there are several external forces within the macroenvironment that can influence the success of EYS. It can be concluded that the market is acceptable to enter, as the risks measured are manageable and will be moderated by the business to prevent deficiency and protect profit margins.

3.10 SWOT / TOWS ANALYSIS FIG. 3.4

STRENGTHS • EYS has a strong USP, adding value to the brand. No competing studios currently offer these natural health benefits. This is the biggest strength of the brand. • The brand has an “instagrammable”, premium brand identity to attract consumers, differentiating EYS from competitors in the market, creating a new experience that appeals to potential consumers and draws interest to the brand. This is another key strength for EYS. • EYS will be targeting a segment of consumers that is not usually targeted by the yoga industry. This is a challenge for the brand; however it could prove an advantage as there will be less direct competition, encouraging consumer loyalty. In the long term this could be a firm strength of the brand. • There are multiple revenue streams, tapping into various markets. The offering of yoga classes, events, and a refreshments bar increases the profit margins.

WEAKNESSES • As this is a completely new start-up business, brand awareness will be low to begin with, this being a fundamental weakness for the brand. • A prominent weakness for EYS is that they will operate in a very competitive/ attractive market. The boutique fitness market is growing at a healthy rate, denoting the possibility of new businesses trying to enter. The market has not reached saturation which could encourage new competition. • Due to the location and premium service provided, start-up costs will be very high, increasing the time before entering profit. This is the highest risk to the brand; if performance levels do not fulfil expectations then the brand could incur a large debt. • As a completely new business, employee numbers will be low initially, heightening the workload for those primarily employed. With well-planned organisations and logistics, this could be less of a weakness for the company.

OPPORTUNITIES

THREATS

• Addressing an obvious gap in the market for yoga studios that target a younger demographic. There are few yoga brands that appeal specifically to young millennials. This is the biggest opportunity for EYS. • Biophilic design is still a new concept to many, there is an opportunity for EYS to educate consumers and provide an innovative, immersive experience, another big opportunity for the brand. • EYS will be delivering a multi-beneficial, holistically healthy experience for consumers, through the implementation of fitness, nature and healthy tea, all available in one location. This creates the opportunity for EYS to appeal to various types of consumers that can use the venue to suit their desires: a health hotspot in for the city.

• The greatest threat for EYS is the possibility of existing brands changing their marketing approach to appeal to the same demographic that EYS will target. • Another concern for EYS is the threat of new competition implementing a biophilic interior; creating a similar experience for consumers, therefore directly competing with EYS. • There is also the threat of the consumers not engaging with the brand and therefore the business not meeting targets due to a lack of engagement and ultimately custom. • A smaller threat to the business is heightened operational costs, for example the rent price of the studio increasing, employing more staff to run the studio, or yoga teachers demanding higher pay. This is a small threat but could affect profit margins.

S/O STRATEGY

W/O STRATEGY

To capitalise on external opportunity, EYS will create an appealing brand image and use relevant channels to communicate with consumers so the brand will be able to effectively engage the specified target market and create an experience or fitness club that satisfies their needs and desires as a generation. As biophilia is a relatively new concept, EYS will offer educational workshops for their consumers to inform them of the physical and mental health benefits available at the studio through nature and fitness. This will be executed in an interesting and innovative way to attract and assure consumers that this venue promotes health in several ways in an innovative and luxury environment. The workshops and luxurious environment differentiate EYS from their competition. By communicating this difference, consumers will become aware of the valuable experience, subsequently increasing interest levels and eventually footfall.

It is imperative to address EYS’ internal weaknesses to ensure that any external opportunities are not jeopardised. To successfully fill an identified gap within the market and grow awareness, EYS should concentrate on operating within a particularly attractive market, and should create stand-out, innovative marketing in order to firmly establish their place within the market. This will simultaneously heighten brand awareness. In addition, to ensure that EYS can be a multi-beneficial, health improvement hotspot in London, the high start-up costs need to be worthwhile and add value to the business. This should ensure that profit will be made by the fifth year of operating, through multiple revenue streams, i.e. yoga classes, workshops, a healthy tea bar. Overall, by addressing these weaknesses, the business opportunities are achievable and realistic.

S/T STRATEGY

W/T STRATEGY

EYS should utilise their strengths in order to surmount external threats to the business. The most dominant threats to the company are existing and new competition. With this threat, EYS need to capitalise on their contemporary, premium brand image, to incite brand loyalty. If the brand builds strong loyalty, consumers will be more likely to remain at this yoga studio rather than turning to new competition. Furthermore, to avoid the threat of lack of interested in the business concept, it is paramount for EYS to promote the “instagrammable” aspect of the studio. This will appeal particularly to young millennials and stimulate interest, enhancing clientele numbers. With bigger footfall numbers, the company will be making a higher revenue which should cover any growing operational costs should they occur.

3.11 SWOT/TOWS

SUMMARY

A SWOT/TOWS analysis was completed to aid the strategic planning process for EYS. Market opportunities have been drawn from this model. Internal strengths such as EYS’ strong USP accompanied with various revenue streams will enable the business to dominate the gap in the market. By tactically pairing the strengths with opportunities, EYS can successfully become the first biophilic studio in the UK. Weaknesses have been moderated, such as the competitive nature of the market and the initial low brand awareness. EYS will strategically set targets in order to regularly observe the business performance. Various threats have been outlined and mitigation strategies developed. The most prevalent threat for the brand is replication: brands entering the market or existing brands may adopt a biophilic interior after taking inspiration from EYS. EYS will utilise their strong branding to attract consumers and promote loyalty to increase retention. It be can concluded that EYS will have strengths and opportunities that outweigh threats and weaknesses. Their strengths will be tactically interpreted within the business in order to confront threats should they arise.

THE BRAND

4.0

E V E R G R E E N YOGA STUDIOS

4.1 BRAND OVERVIEW Evergreen Yoga Studios has three core arteries that benefit consumer health; biophilic design, a yoga community and a tea infusion bar. These complementary services promote positive physical, mental and emotional health, encouraging young millennial consumers to maintain a holistic approach to their wellbeing.

4.1.1 BIOPHILIC DESIGN Biophilia is at the core of the brand; the term roots from the Greek meaning of â&#x20AC;&#x153;love of life and the living world.â&#x20AC;? (Walsh and McGroarty, 2018). The application of nature in interior design allows consumers in built up areas to access various health benefits as they would in natural wildlife. Increasing research explains that cognitive performance is enhanced, whilst levels of stress and depression are reduced, when rested in a natural environment. Furthermore, biophysical benefits such as improved immunity and quicker physical healing processes have also been documented after spending time in biophilic places. (Beatley, 2016; Kellert, et al., 2011) EYS offers a city-based, natural alternative, to support positive health, for those working and residing in urban areas. A combination of plants, foliage and artificial replicas will be installed strategically, as recommended by expert Percy Smith (2020) (see appendix 3.3 and 4.2)

MOSS WALLS

HEALING

VERTICAL GARDENS

SAVANNAH EFFECT GREENERY

AIR FILTRATION

FOLIAGE

TROPICAL REPLICA

4.1.2 YOGA SERVICE & COMMUNITY (REVENUE STREAMS 1&3) Yoga is a â&#x20AC;&#x153;systematic technology to improve the body, understand the mind, and free the spirit.â&#x20AC;? (McCall, 2012, p.7) Physical postures, meditation and breathwork all decrease anxiety and depression levels as well as enhance the physiological state of the body (Butterfield, et al., 2017; McCall, 2012; Nanthakumar, 2020). EYS strive to decrease the high stress levels apparent amongst young millennials. This will be accomplished through Vinyasa, Hatha and Hot Yoga sessions alongside Breathwork classes. Identified by the online survey results, the most frequent reasons for consumers not attending a Yoga studio is due to feeling intimidated, not knowing enough about the exercise and not knowing where to go due to a lack of targeted millennial experiences. To mitigate this, EYS will ensure an inclusive, welcoming atmosphere through knowledgeable, enthusiastic staff, creating a community where consumers feel safe. Further, the owner will be frequently present, as explained by Holly McQueen (2020) this ensures that the brand values are communicated first-hand. There will be educational and social events monthly, including; workshops, enjoyable self-care sessions, and opportunities for one-to-one communication with the Evergreen Instructors.

4.1.3 TEA INFUSION (REVENUE STREAM 2) There are a variety of infused, herbal teas that possess various healing powers, often paired with yoga practice (Yoga Journal, 2015). This is a harmonising health service offered within the studio to ensure holistic, social well-being is available, also specifically requested by Participant 7 during the in-depth interviews (see appendix 2.9). This creates another space for consumers to interact and converse with one another, developing the EYS sense of community, as mentioned by 4 interview participants.

4.2 BRAND DNA Mission: To holistically enhance personal wellbeing through innovative yoga classes in an inclusive, social environment, situated in a luxury natural utopia. Vision: To be the restorative sanctuary in a metropolitan chaos.

BRAND VALUES

COMMUNITY Evergreen Yoga Studios will be an inclusive, safe environment for consumers to be themselves and meet likeminded people to form genuine friendships with. EYS will strive to develop a strong rapport with all consumers to ensure an enjoyable experience is had by all.

INNOVATION EYS will be wealthy in innovation; both the service and environment will be contemporary and unique. The service delivered will navigate away from traditional yoga practice and take an avant-garde approach without intimidating jargon. The biophilic environment is an advanced modern alternative to a national park, offering an abundance of health benefits.

EMPOWERMENT EYS enables consumers to put themselves first; a purifying experience will leave consumers feeling relaxed, optimistic and empowered.

CONSIDERATE EYS enables consumers to put themselves first; a purifying experience will leave consumers feeling relaxed, optimistic and empowered.

4.3 THE NAME Evergreen has two direct meanings according to the dictionary: ‘having green leaves throughout the entire year,’ and ‘retaining its relevance, popularity and usefulness.’ Both of the highlighted meanings resonate with the brand, the first meaning denotes the unique, biophilic interior that is accessible all year round. The second meaning signifies EYS’ ability to remain innovative. In addition, the final significance behind the name alludes to the surname of the owner; thus, consolidating the personal aspect of the boutique studio.

4.4 THE LOGO

E V E R G R E E N YOGA STUDIOS

This logo was created to represent EYS; an effective logo denotes the integrity of a brand and their values without extensive text or an explanation (Westgarth, 2018) The overall shape and aesthetic of the logo was designed to be versatile; it can stand out on objects such as signage, staff uniform and packaging and can be easily recognised on communications. The tropical plants denote the brand USP; attracting consumers and provoking feelings of intrigue. An instagram poll confirmed that when presented with three different logo ideas, the favourite design was this logo (see appendix 1.2). It was then developed and finalised to ensure a luxury aesthetic is communicated to consumers. The logo guidelines must always be adhered to (refer to table 4.1).

L O G O D O’ S

L O G O D O N T’S

+ The entire logo must remain one colour and shade whenever it is used.

- Never colour the leaves or textin different shades. The same single colour must be used.

+ Keep the colour black wherever possible to maintain the premium, classy brand image.

- Do not rearrange the leaves or englarge. The cresent of leaves and flowers has been created to portray a natural aesthetic.

+ Keep the proportions and measurements the same. Whenever the logo is enlarged or reduced, the proportions must stay the same. + Always use the same ratio between the size of the two strips of text for ‘Evergreen’ and ‘Yoga Studios’. + Always ensure the font is in captials with a space between each letter. The font is ‘Quicksand’ in regular weight.

- Never stretch the logo - the length and width must always remain the same ratio. - The logo must always be central when applied to any materials or communications. It should never be rotated.

TABLE 4.1

4.5 COLOUR Earthy, neutral tones, resonating with the brand and the service, have been chosen for the palette. The natural tones capture the brand image and even though the target consumer is typically female, would not deter any male consumers due to stereotypes. This palette involves two different shades of green as typically this colour represents nature, new beginnings and growth (Champman, 2010) The neutral tone reflects sophistication and luxury. The rose colour signifies rose gold, another element of luxury that will be featured within the interior design. An Instagram poll informed that 73% of 172 participants preferred this colour palette when compared with an alternative suggestion. (see appendix 1.2)

BLACK

#000000 R=0 G=0 B=0

C=75 M=68 Y=67 K=90

GREEN

#3e5a37 R=62 G=90 B=55

C=73 M=42 Y=84 K=56

SAGE

#8e9b80 R=142 G=155 B=47

C=47 M=29 Y=53 K=3

NEUTRAL #cdbdb5 R=205 G=189 B=181

C=20 M=23 Y=25 K=0

ROSE GOLD #c7a49e R=199 G=164 B=158 58

C=22 M=36 Y=32 K=0

ABCDEFGHIJKLM NOPQRSTUVWXYZ 1234567890 There will be two font styles used for EYS; the primary font is a sans-serif typeface named Quicksand; this font will only ever be used in capitals. This is used for Evergreen Yoga Studiosâ&#x20AC;&#x2122; branding and communications. This font is contemporary and simplistic, connoting the atmosphere at the studio itself.

ABCDEFGHIJKLM NOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890

Acumin Pro is the secondary font used for main body text for both online and offline comms. This is another sans serif font to sustain the same aesthetic however, it is slightly less decorative to ensure legibility.

4.6 TYPEFACE 59

4.7 FLOOR PLANS

4.7.1 GROUND FLOOR The venue has two floors. The first floor has an ‘instagrammable’ reception area where consumers can take photos in front of a garden wall with a ‘Evergreen Yoga Studios’ sign. This will inspire user generated instagram content, provoking feelings of FOMO for those consumers yet to visit the studio, it will additionally develop word-ofmouth communication. On this floor is the Infusion Tea Bar, where a maximum of 15 consumers can sit and enjoy a healthy drink and socialise with other consumers. In addition, there is a small private studio with a live vertical garden wall, creating a Tropical atmosphere. It can be used impulsively by members of EYS only for self-led yoga practice and individual meditation, creating an exclusive ‘club’ for those with a membership. On this floor there is a disabled washroom and toilet to make sure the venue is accessible.

Storage

4.7.2 BASEMENT The basement level has the main studio, with a maximum capacity of 24 students, recommended by Charlotte (2020) at Another Space, London. This studio has moss walls instead of garden walls, ensuring the studio space is maximised whilst maintaining the biophilic aesthetic. There are changing facilities, toilets and shower rooms on this floor; as mentioned in two consumer interviews, having enough showers and changing facilities is a key factor of a positive customer experience (see appendix 4.1 for original floor plans for venue).

THE CONSUMER

5.0

5.1 THE MOTIVATED SOCIALITE

55% Believes in innovation Social butterfly Intermediate to confident yogi.

THE COMPOSED YOGI

CONSUMER SEGMENTATION For a start-up business like EYS to thrive, it is imperative for the brand to have a clear understanding of their consumers, considering all variables; demographic, psychographic, geographic. This will enable EYS to position their brand effectively to appeal to the targeted consumers (Posner, 2015). Conclusions drawn from the online survey determine that EYSâ&#x20AC;&#x2122; target consumer base is predominantly young professional women; 92% of participants were female, indicating that the male population engage less with holistic fitness studios. Various research highlights that EYSâ&#x20AC;&#x2122; consumer base will be made up of three diverse consumer segments that represent distinct sequences of variables and usage patterns. These architypes are as stated;

30% Craves tranquillity Optimistic and Collected Attitude Experienced yogi.

THE INSPIRED EXTROVERT

15% Yearns for making memories, Fun and Confident Individual, Beginner to Intermediate yogi.

5.2 PRIMARY CONSUMER THE MOTIVATED SOCIALITE C H A R L O T T E, 2 4 Demographic: • Female • Aged 22-25 years • Highly Educated Independent Individual (HEIDI) or Young And Determined Saver (YAD) • Not married, with a single income • Newly graduated and recently settled into first job of their career • Upper class with an average to high income for their age Geographic: • Recently moved to London to begin career • Lives in central London, typically Shoreditch area, in a studio by herself. Psychographic: • A motivated and organised individual who takes care of personal appearance and physique. • Overthinker; feels stress from her profession • Hobbies include yoga, working out and reading • Beliefs: law of attraction, astrology and horoscopes Usage: • Looking for a new routine to maintain a healthy mind and healthy heart • Has a membership at Evergreen Yoga Studios • Not a price sensitive consumer, loyal to the brand values • Wishes to find likeminded individuals to form friendships with

5.3 SECONDARY CONSUMER THE COMPOSED YOGI N A T A S H A, 2 8 Demographic: • Female • Aged 26-28 years • HEIDI or Double Income No Kids Yet (DINKY) • In a relationship with someone of a similar class • Educated to degree level and enjoying their career • Upper class with a high income Geographic: • Moved to London to begin career a few years ago, lives in an apartment in Chelsea with partner • Works in central London

Psychographic: • Adventurous, optimistic and likes to be occupied • Little time to unwind by herself • Hobbies include travelling, meditating and being with friends • Newly adopted a holistically healthy lifestyle and a vegan diet

Usage: • Looking for a regular escape from her fastpaced life • Purchases block-bookings at Evergreen Yoga Studios to avoid strict commitment to one studio but maintains regularity • Not a price sensitive consumer, loyal to the brand for the natural space • Drawn to EYS for the biophilic USP

5.4 TERTIARY CONSUMER THE INSPIRED EXTROVERT A M E L I A, 2 1 Demographic: • Female • Aged 21-28 years • HEIDI, YAD or DINKY • Not married • Educated to degree level with an average income • Mid-Upper class

Geographic: • Lives in the UK, visits Central London sometimes for day trips. Psychographic: • Fun, adventurous, confident • Has a large group of friends, enjoys being social and trying new things • Hobbies include dancing, shopping, festivals and socialising • Making memories is a priority Usage: • Looking for a day activity for herself and friends • Purchases a single class at Evergreen Yoga Studios • A price sensitive consumer, drawn to the brand for the instagrammable value and atmosphere but would find a cheaper alternative if needed

5.5 DIFFUSION OF INNOVATION The diffusion of innovation theory (Rogers, 1962) can be applied to visualise the acceptance and engagement rate of a new business concept. The three consumer groups identify with different stages of the diffusion theory, corresponding with their diverse psychographic and usage variables. The Motivated Socialite identifies with the ‘Early Adopter’ category; these individuals have the highest regarded opinion and status within society, influencing their peers to copy their behaviour. The Composed Yogi resonates with the ‘Early Majority’; this population have an above average social status, however, lack the leadership ability of the Early Adopters. In this instance, The Composed Yogi partakes in yoga purely for the functional benefit, irrespective of its trendy perception. Finally, The Inspired Extrovert can be classified as the ‘Late Majority.’ This segment engages with EYS mainly for its on-trend value; these individuals have seen the studio on influencers’ and their friends’ instagram and want to finally try the experience for themselves.

INNOVATORS 2.5%

EARLY ADOPTERS 13.5%

EARLY MAJORITY 34%

LATE MAJORITY 34%

LAGGARDS 16%

FIG 5.1

VALUE PROPOSITION CANVAS EYS

CONSUMER

PRODUCTS & SERVICES

JOBS

+ High quality and contemporary yoga and breathwork lessons + A biophilic interior design theme throughout the studios

- Unwind from a busy, metropolitan lifestyle - Access nature and relish the health advantages it possesses

+ A healthy infusion tea bar

- Find fun and practical ways of practicing selfcare

+ Social events and a welcoming community atmosphere

- Find and nurture relationships with similar individuals

GAIN CREATORS

GAINS

+ Yoga sessions to cohesively improve physical, mental and emotional well-being

- Achieve a state of positive mental, physical and emotional health.

+ A contemporary natural environment that is healthy and aesthetically pleasing.

- An accessible natural environment located in a city.

+ Both fun and educational events held to teach those who are apprehensive and create a sociable and communal vibe

- A community of like-minded individuals.

+ A safe and inclusive space

- Feelings of freedom and empowerment

- Decreased feelings of isolation.

+ A happy and relaxing retreat + A holistic fitness practice that promotes physical and mental strength

PAIN

RELIEVERS

+ The classes are delivered in an innovative way, avoiding intimidating yoga jargon.

- Not having the knowledge or confidence to learn a new stress management technique.

+ Regular informative events and classes that accept all levels of expertise.

- Natural areas are often far out of the city and remote.

+ A natural environment in a central, easily reached location.

- Not drawn to any existing holistic fitness or selfcare pursuits as this generation of consumers is often neglected by this market.

+ A fun and modern take on yoga, specifically aimed at the young millennial demographic to engage likeminded individuals. + An exciting, original venue

PAIN

- Want an experience that is shareworthy as well as practical.

FIG 5.2

BRAND STRATEGY

6.0

6.1 BUSINESS SMART OBJECTIVES 1. To successfully enter the London Boutique Fitness market as the UKâ&#x20AC;&#x2122;s first biophilic yoga studio in 2021.

2. To change the target audienceâ&#x20AC;&#x2122;s perception of yoga by implementing educational and attractive marketing communications and developing brand awareness, by the end of Year 1.

3. To increase brand loyalty by ensuring that 55% of attendees are membership owners or block-booking customers by the end of Year 2.

4. To achieve amplified brand recognition by the end of Year 3, as a result of successfully publicised social and corporate events and positive consumer and commercial reviews.

5. To holistically better the health of a higher number of young professionals in London, increasing the total number of attendees in Year 1 by 35% by the end of Year 3.

6.2 BUSINESS MODEL CANVAS The Business Model Canvas, created by Osterwalder 2010, was completed in order to realise the strategic management of the brand and pinpoint the core functions of EYS’ infrastructure. The basic service, consumer, and financial information is visualised in figure 6.1. A detailed completion of the Business Model Canvas can be located in Appendix 6.0.

FIG 6.1

KEY PARTNERS

KEY ACTIVITIES

KEY RESOURCES

+ Biophilic Interior Designers

+ Yoga

+ The Building

+ Yoga Equipment Suppliers

+ Breathwork

+ Plants and Biophilic Design

+ Twining’s Tea

+ Infusion Tea - Social Well-being

+ Yoga Teachers

+ Social & Educational Events

+ Glofox Studio Software Package

VALUE PROPOSITIONS

CONSUMER RELATIONSHIPS

KEY CHANNELS

+ Premium, contemporary yoga & breathwork lessions

+ Reached primarily by social media

+ Instagram

+ A biophilic interior - accessible green space

+ EYS will create an attractive, innovative atmosphere toprotect retention rates.

+ A social and welcoming community

+ Word-of-mouth, reviews and influencers will increase b2c relationships.

+ Website/App + Email Marketing +The Studio

CUSTOMER SEGMENTS

COST STRUCTURE

REVENUE STREAMS

+ Young Professional, Millennial Females in London

Most Significant Costs:

+ Yoga & Breathwork Classes

+ Location

+ Infusion Tea Bar

+ Renovation Cost

+ Social Event Tickets

+ Yoga Teachers & Studio Staff

+ Corporate Workshops (Y3)

+ 3 Main Segments: The Motivated Socialite, The Composed Yogi & The Inspired Extrovert

+ Glofox Studio Software

6.3 THREE YEAR MARKETING STRATEGY 74

YEAR 1 + To increase brand awareness + To educate consumers about the Evergreen Yoga Studio brand. + To trial various services in order to find the most suitable to align with the brand vision and values. In the first year there will be a number of different yoga classes and events trialled at the studio in order to evaluate consumer interest; they will be marketed effectively to ensure positive engagement from the onset. The marketing methods for the first year will be selected in order to efficiently reach a vast audience and increase studio footfall. The use of Instagram will be fundamental to the success of the first-year marketing strategy. It is the most appropriate marketing tool to fulfil the first year aims: industry statistics confirm that “70% of consumers have visited social media sites for information on a brand and 49% of these consumers have made a purchase decision based on the information they found through the social media sites” (Kim and Ko, 2012, p1481) Alongside social media, influencer marketing will be implemented for EYS to begin developing a promising brand recognition amongst a wide audience, collected by social media influencers. Research from Mintel (2020) states that “18% of those who follow social media personalities or celebrities – are knowingly making purchases directly in response to a post from an [influencer].” Furthermore, public relations will be a paramount means of marketing for EYS, specifically within the first year, to rapidly grow awareness and generate a shift in consumer attitude towards yoga and holistic wellbeing (Jackson and Shaw, 2010).

YEAR 2

YEAR 3

+ Utilise data from the first years’ performance to improve the brand, business operations and logistics. Focus on building consumer loyalty and developing the EYS community.

+ To grow the brand image and establish a higher market share.

A relationship will be built with consumers, specifically those investing in a membership or block bookings at the studio; this will prevent losing consumers if the market becomes saturated in future years. Relationship Marketing is a strategic approach that EYS will adopt through delivering a high quality, genuine service; each consumer has a lifetime value to EYS and is an investment for the brand (Jackson and Shaw, 2010). Increased marketing and social events at the studio will boost interaction between the business and the clients, turning anonymous consumers into known individuals who, in turn will become advocates for EYS (Jackson and Shaw, 2010). EYS will run a campaign for Mental Health Awareness week in May, demonstrating the authentic brand values and personality. During May, EYS will run weekly social events at half of the usual ticket price to enhance the b2c relationship with both new and existing consumers, subsequently promoting brand loyalty and a growth in sales of classes, passes and memberships.

EYS will develop their market share and increase the number of attendees per annum. As suggested in an interview with expert Chatty Dobson (2020), corporate offers are a successful strategy to engage more consumers, specifically those of the young professional demographic. Marketing this program to companies in London, that employ young professionals, will effectively increase EYS’ client base and continues building authentic relationships with consumers. Simultaneously brand awareness, reputation and loyalty are improved. To execute this, a corporate open day will initially create several connections with potential clients. Like-minded brands will be invited to support the open day, contributing to a comprehensive experience, attracting clients to invest in EYS Corporate Wellbeing programs to better the mental health of their employees.

Brand awareness will continue to build throughout the second year. EYS will focus on increasing local footfall by creating more offline advertising content, utilised as ‘ambient advertising,’ around London in convenient places that young professionals will acknowledge on their commute to work. (Jackson and Shaw, 2010). Due to the high cost nature of advertising in London, this marketing technique will require a larger budget, therefore this method has been employed initially in year 2 and increased in year 3. This marketing technique is proven successful as millions of captive and receptive commuters use the network every day (Billboard Advertising, 2020); specific underground stations will be chosen, starting with Covent Gardens in year 2 then Holborn and Shoreditch in year 3, ensuring young professionals are reached.

Moreover, as explained by Holly McQueen (2020), customer reviews will be instrumental to this start-up business; encouraging consumers to leave reviews of their experience at EYS will increase word of mouth, improving brand equity and ultimately footfall. Reviews will be encouraged from year 1, however by the third year there will be a build-up of positive reviews, reflected in the sales growth year-on-year.

6 . 4 T H E 4 V’ S TABLE 6.1

VALIDITY The validity of Evergreen Yoga Studios is demonstrated within the results of extensive primary and secondary research. As previously established, the new lifestyle of young millennials is fast-paced and frequently metropolitan based. It is paramount that younger millennials have proactive coping mechanisms for this contemporary way of life. The online survey conducted, as part of primary research, revealed that 82.4% of young millennials would be interested in this business concept given their current situation. Interestingly, Participant 68 explained, “Yes because I don’t get to spend much time in nature without travelling further out, I’d also have to spend [more] time doing this, whereas if yoga/fitness classes were held in a natural ‘Biophilic’ place it ‘kills 2 birds with 1 stone.’” One of the key purposes of EYS is to grant easier access to the health benefits of nature, for those who are living and working within a city. Notably, this response highlighted the need for accessibility when they labelled the concept as ‘killing 2 birds with 1 stone,” denoting the paramount demand for convenient, multibeneficial experiences, particularly apparent amongst this generation. This research validates the business concept and stresses the apparent desire, in city-based communities, for the service that EYS will offer.

VALUE At Evergreen Yoga Studios there is added value which other competing yoga brands within close proximity, do not offer. EYS promises to deliver inclusive, contemporary yoga classes that are suitable for all abilities, led by professionals who consistently teach high-quality content. Consumers will be learning indispensable yoga skills whilst immersed in an innovative environment, unique to the Evergreen Yoga Studios brand. There are a multitude of physical, mental and emotional health advantages attained by visiting EYS, that will positively impact consumers value of life. The mentioned benefits can be acquired when partaking in the rewarding yoga lessons, relishing the biophilic environment, and consumed at the healthy infusion bar; thus, signifying the truly holistic values that EYS are dedicated to delivering at the studio.

VENUE The chosen venue for EYS is located in Central London. This city was chosen due to being densely populated with young professionals, as “a large number of people move to London in their 20s, drawn from all corners of the country.” (Swinney and Carter, 2019) The studio is situated on Drury Lane, which falls into the Covent Garden and Holborn area. This is one of the most iconic areas of London, renowned for its trendy, bustling nature. There are a multitude of luxurious recreational offerings here, including various boutique fitness hotspots, an ideal location for an up-market yoga studio like EYS. In addition, easily accessed by public transport, Covent Gardens is situated between the City of Westminster and the Borough of Camden, creating easy access for both young professionals working in the city and the student population of Camden (CBRE, 2020) The most popular age group within this area (22.5%) is those aged between 20-29 years old (City Population, 2020); this is suitable for EYS as this is the age being specifically targeted by the brand. An ex-retail space has been chosen for the studio venue; as explained by Mintel (2019) the closure of many city centre retail stores has provided several convenient locations for health and fitness clubs to occupy. The space chosen has two floors, which will provide enough space for a large studio, a smaller studio for personal use, the infusion tea bar, washrooms and a reception area. Although a high cost is incurred by choosing a central London, ex-retail space, it is necessary to enable the brand to compete in the London boutique fitness market and encounter a healthy footfall.

VOGUE The choice of communication channels plays a vital role in the success of a brand. Utilising the correct communication can positively affect the level of brand equity and relationship equity for a company; “the value a customer brings to a firm is not limited to the profit from each transaction but is the total profit the customer may provide over the duration of the relationship with the firm.” (Kim and Ko, 2012, p1481) Therefore the communication channels chosen by EYS are suited to the specific needs of the targeted demographic. When marketing a brand specifically at the younger millennial generation, social media is one of the most effective communication platforms to use, with 89% of 18-29-year olds being active users (Heggde and Shainesh, 2018). EYS will maintain a strong presence on Instagram in particular to uphold a solid relationship with their consumers and permit frequent two-way communication between the brand and their clients. Furthermore, as EYS aims to provide an escape for those living a busy, urban lifestyle, a significant channel of communication that resonates with metropolitan life should be adopted. This would illustrate EYS’ genuine understanding of their consumer and authentic desire to provide a practical release. As this is an expensive marketing method, this will be utilised from the second year of operating.

7.0

COMMUNICATIONS

7.1 COMMUNICATION OBJECTIVES

To establish a strong brand awareness.

To begin building brand loyalty.

To deliver an effective omnichannel consumer experience.

AWARENESS Awareness will be established first and foremost through the strategic use of social media. Initially, platforms such as Instagram will be used in order to connect with potential consumers and influencers that will support the brand. Furthermore, to generate increased attention towards Evergreen Yoga Studios, physical advertisements around the city will be installed in order to familiarise consumers with the brand, in local geographical areas.

TABLE 7.1

INTEREST Evergreen will use creative and formative content within communications to captivate consumers and ensure they follow up and educate themselves on the tangible benefits offered at the yoga studio. This information will be available through the brandâ&#x20AC;&#x2122;s social channels, influencersâ&#x20AC;&#x2122; own content and on the website.

7.2 AIDA MODEL The AIDA Model has been applied to explain how EYS plans to communicate with their consumers during the various stages an individual goes through when becoming an EYS customer. See Table 7.1.

DESIRE

ACTION

EYS will create consumer desire to visit the studio through the use of attractive and contemporary communication materials that highlight the unique, immersive experience accessible at the studio. A preview of this experience will be translated through innovative branding and communication content.

Free taster classes will be available within the first week of launching to drive footfall and ultimately encourage return visits. Furthermore early-bird discounts will be available for those who opt to sign up to a membership scheme in advance of the studio opening to ensure consumers will be visiting from the opening and thereafter.

DIFFERENTIATE The studio will differentiate from others in the market through emphasising the USP of a natural, immersive experience. This is implemented through seamless biophilic design, allowing consumers to escape urban life, also bettering onesâ&#x20AC;&#x2122; health through the combination nature and yoga; establishing a holistic approach.

TABLE 7.2

REINFORCE The brand message will be reinforced through carefully considered visual aesthetics that are seamless with the language and service of the brand. This will be apparent on all online and offline platforms and communication.

7.3 DRIP MODEL A completed DRIP model assisted the construction of an integrated marketing communications plan. See table 7.2.

INFORM

PERSUADE

Consumers will be informed about our brand via social media posts and influencersâ&#x20AC;&#x2122; coverage. They will intend to educate consumers about the various health benefits of Evergreen Yoga and how they can transform their quality of life. This method will also intend to educate our consumers about where Evergreen Yoga Studios is located, the different types of packages and memberships on offer, and how they can be accessed.

Consumers will be persuaded to come to this particular studio instead of other competing studios. Furthermore, they will also be persuaded to transform their way of life by trying out various new activities and classes that are available at Evergreen Yoga Studios.

7.4 COMMUNICATION STRATEGY An integrated marketing communications plan (IMC) will be incorporated to ensure success for EYS; this will involve blending the promotional mix in a complementary way, to avoid mixed messages and create a synergistic plan. This strategy requires, â&#x20AC;&#x153;a consideration of the needs of the audience first, and then a determination of the various messages, media and disciplines necessary to accomplish the strategy.â&#x20AC;? (Fill and Turnball, 2019, p.208) An omnichannel approach will be interpreted to ensure a seamless consumer journey, also enhancing the functionality and profitability of the business. This will involve both online and offline marketing and communications to warrant a holistic brand experience for the consumer.

7.5 ONLINE COMMUNICATION MATRIX METHOD

Website

PURPOSE

MEDIUM

FREQUENCY

+ Observes engagement + Initial touchpoint for consumers

AUDIENCE + EYS Target Consumers

+ Wix

+ General Public

+ Constant

+ Enhances brand awareness and image + Teaches consumers about the brand

Instagram

+ Two-way communication between the brand and consumer + Up-to-date information

+ General Public + Followers

+ Instagram

+ 3/4 Times per week

+ EYS Consumers

+ Both primary created and user generated content to promote EYS + Communicates brand image

Influencer

+ To rapidly increase brand awareness. + Greater reach + Build consumer trust

Email Marketing

+ General Public

+ Instagram + YouTube

+ Monthly

+ Influencersâ&#x20AC;&#x2122; Followers + EYS Consumers

+ To increase brand loyalty + Maintain frequent and personal consumer interaction

+ Email

+ Weekly

+ EYS Consumers

+ Constant

+ EYS Consumers

+ To collect data from consumers

App

+ To ease the booking process + To complete an omnichannel marketing strategy + To increase brand loyalty

+ Glofox Studio Software Package

TABLE 7.3

7.5.1 WEBSITE A professional website will be a crucial communication vehicle for EYS; being one of the initial touchpoints for consumers on their journey to EYS thus, it should remain up-to-date and contemporary to project a positive outlook towards the brand (Rickman, 2007). A genuine tone of voice and innovative style will be vital in harnessing a strong initial consumer engagement. The website will be informative, consumers can learn about EYS and the health benefits available. In addition, consumers will be able to purchase classes, passes and memberships in their own time, increasing the accessibility of the brand. However, it is imperative that this process is simple as the competitor analysis previously informed that a complex booking system can be off-putting.

7.5.2 INSTAGRAM

Instagram is the preferred social networking app for the millennial and Gen Z demographics; 60% of all Instagram users are between the ages 18 and 29 (Benson, 2018), the exact age group targeted by EYS. This social media platform is a cost-effective method of communication for a start-up business, enabling frequent two-way communication between the brand and their consumer (Virtanen, et al., 2017). Three types of media on Instagram will support the growth of EYS; owned, paid and earned. The owned media created by EYS will be educational, aesthetically pleasing, and persuading to consumers, clearly depicting the brand image and studio atmosphere to attract new clientele. Paid media will involve the collaboration between EYS and a group of like-minded influencers, explained on page. Finally, earned media is recognised as a trustworthy advertising technique for raising brand awareness. As explained previously in the PESTLE analysis, Chapter 3, the millennial generation frequently upload photographs to Instagram in luxurious, ‘instagrammable’ locations. Often, this subsequently provokes their followers to visit these locations themselves in order to avoid ‘FOMO’ and enabling them the opportunity to post a picture, of themselves at the same location, initiating a continuous cycle. With the intriguing biophilic design and a designated ‘instagrammable’ wall in the reception area, EYS will capitalise on earned media produced by their consumers, to reach a vast audience and appeal to new consumers organically. Consumers will be encouraged to include the branded hashtag, “EvergreenEmpowerment”; this is a successful marketing tool utilised by businesses, proven to enhance social engagement (York, 2019). The Instagram page will likely be the first touchpoint for most consumer journeys, therefore it should remain attractive and engaging.

INSTAGRAM ACTIVITY

FREQUENCY

+ Sponsored Posts

- 1 Post, sponsored for 3 days per week within the first year.

+ Factual Posts

- Every other post should be informative or factual. These posts aims to address the insight that young millennials may not understand the holistic health benefits available from yoga.

+ Photographs of the interior/classes

- Very Frequent - this is to intrigue consumers and attract them to the studio.

+ Share users content.

- If a consumer uses the hashtag or location tag EYS will aim to repost this as soon as possible.

+ Comment/Like consumers tagged photographs at EYS

- Everytime a consumer tags themself at EYS, their post will be liked and commented on to enhance the b2c relationship.

+Post stories of activity at the studio

- Everyday, multiple times, to attract followers to attend a class, and to keep the page up-tp-date.

TABLE 7.4

7.5.3 INFLUENCERS Influencers are key to mass market perception and adoption (Levin, 2020). As explained in Chapter 5, when compared with Rogers’ Diffusion of Innovation Theory (1962) influencer marketing can be compared to the ‘Early Adopters’ stage of diffusion; these consumers are trendsetters, role models and ultimately instrumental to the success of a new businesses or trend. For Evergreen Yoga Studios, influencers will be a catalyst for changing young millennials’ opinions towards yoga. Industry experts Chatty Dobson (2020) and Holly McQueen (2020) also confirmed that this communication technique will successfully escalate word-of-mouth, another vital marketing instrument for EYS.

The chosen influencers harmonise with EYS’ brand values and personality; they are likeable and credible with a high-value opinion in society, meaning their promotional activity for EYS will have a high impact (De Veirman, et al., 2017). The selected influencers have their own USP and target a similar demographic to EYS; an assortment of micro and macro influencers has been amalgamated to average high engagement rates and feasible costs (see Table 7.5). Although this is a costly communications technique, with high engagement, the return on investment will be worthwhile; promising research states that 44.7% of 18-34-year-olds have purchased a product or service endorsed by Instagram and YouTube influencers (Levin, 2020).

TABLE 7.5

INFLUENCER

A V. C O S T

FOLLOWER COUNT

ENGAGEMENT RATE

(INFLUENCER MARKETING HUB, 2020)

(INSTAGRAM, 2020)

(INFLUENCER MARKETING HUB, 2020)

Grace Beverley @gracebeverley

£1,774.00

1,000,000

6.18%

Gabby Allen @gabbydawnallen

£1,878.80

1,000,000

1.80%

Steph Elswood @stephelswood

£596.00

245,000

1.53%

Courtney Black @courtneydblack

£922.20

456,000

2.40%

Tiffany Watson @tiffanyc_watson

£1,249.00

516,000

1.80%

Emily Mouu @emilymouufit

£124.00

31,000

4.18%

Sophie Brace @sophiebrace_fit

£114.35

22,500

6.29%

AVERAGE

£951.19

467,214

3.45%

7.5.4 EMAIL MARKETING Email marketing will be advantageous to EYS as it is a free form of direct communication with consumers, developing a strong b2c relationship (Jackson and Shaw, 2010). Emails will be sent meticulously to consumers who have purchased a block booking pass or a membership at EYS, reinforcing the EYS sense of community. Consumers who have visited the EYS website will also have the opportunity to sign up to emails if they choose. Emails will be sent out weekly, ensuring educational and purposeful content: 32% of consumers state that they unsubscribe to marketing emails due to them being ‘irrelevant’ or ‘useless’ (Costarella, 2017). Frequent communication with consumers will further combat feelings of isolation and loneliness when living in a city as a young professional, as highlighted by McQueen (2020).

E V E R G R E E N YOGA STUDIOS

7.5.4 MOBILE APP

Evergreen Yoga Studios will have a mobile phone application to complete the omnichannel service maintaining a seamless consumer experience. The app will be included as part of the Glofox studio software package, used for the technical functioning of the business. Mobile applications enhance the visibility, accessibility and value of a brand, they are useful for monitoring consumer data and cultivating a community of loyal consumers (Haselmayr, 2014). For returning members at the studio, this will improve the convenience of their customer journey; a paramount factor as mentioned within the PESTLE analysis.

7.6 OFFLINE COMMUNICATIONS

7.7 OFFLINE COMMUNICATION MATRIX METHOD

Launch Event

PURPOSE

+ Build b2c relationship

+ Grow brand awareness

Physical Display & Branded Promotional Materials

+ Press

+ Face-to-face

+ Once

+ New EYS Consumers

+ Face-to-face

+ Every other month, increased to monthly in year 2&3

+ To increase brand exposure + To build a positive brand reputation

+ Existing EYS Consumers

+ The Public

+ Harper’s Bazaar + Women’s Health + Forbes + Cosmopolitan

+ Quarterly

+ Female Young Millennials + Young Professionals

+ Generate consumer interest + Enhance the brand image

AUDIENCE + London Influencers

+ To nurture brand loyalty + To establish the EYS community

Press Coverage

FREQUENCY

+ To generate excitement + Rapidly build brand awareness

Social Events

MEDIUM

+ Locals + Tourists

+ Print

+ Permenant

+ Increase awareness

+ General Public + EYS Consumers

+ Increase brand equity

Taster Day

+ To generate footfall + Create excitement around the business + To attract consumers

+ EYS Studio

+ First 2 months

+ Female Young Proffessionals in London

TABLE 7.6

7.7.1 LAUNCH EVENT OVERVIEW EYS will host a launch event held at the studio in January 2021; the objective of this is to generate excitement around the brand, create a favourable image and immediately leverage brand awareness (Posner, 2015). Press and influencers will be invited to this event and encouraged to take videos and pictures, creating sharable content. This event will be videoed in a vlog format and shared on all media channels before opening to the public. WHO

Both the EYS influencer group and other London-based social influencers will be invited to the launch event. Both digital and print press will be contacted; publishers such as Harper’s Bazaar, Women’s Health and Forbes will be invited to the event

WHAT There will be a taster yoga class for the influencers to take part in which they may record snippets of to post on social media to review, also creating a ‘sneak peek’ at the studio for their fans. External catering company, Humdingers Bespoke, will provide luxury, healthy vegan canopes, to further reflect the brand message. In addition, the Infusion Tea bar will provide refreshments, delivered in the branded cups to begin brand recognition. The studio will be decorated to create a fun, exciting vibe; a DJ will also be hired to provide background music that compliments the atmosphere. Goodie bags will be gifted to the influencers with specially made, branded merchandise and self-care products that reflect the Evergreen Yoga Studios desire to improve consumer well-being. These products will convey a similar brand message being premium and ethically

considered. WHERE

Evergreen Yoga Studios

WHEN

January 2021

TABLE 7.7

7.7.2 SOCIAL EVENTS Social yoga events will launch in June and be held every other month in year 1, progressing to monthly in years 2 and 3. These events will function on a ticket basis, meaning that both current and new consumers can take part. The insight identified in chapter 2 will be addressed through this experiential marketing technique as the events aim to reinforce that yoga as a form of self-care can be fun, contemporary and sociable. As highlighted in the Stage 1 report, young millennials lack stress management methods that specifically appeal to them (Green, 2020) Approved by expert McQueen (2020), social nights would successfully build the EYS community that stressed and isolated young professionals can become part of. This addresses the ‘female self-care space’ micro trend (chapter 2) in an innovative way, also tapping into the ‘experience economy’ macro movement identified within the PESTLE analysis. Refer to the adjacent images for an example of these events.

100

101

7.7.3 PRESS COVERAGE & PR

An external PR agency will be used due to the advantages highlighted by Jackson and Shaw (2010); their large network and varied book of journalists is accessed in a much more cost and time effective way than having an in-house PR team. This will ensure that EYS achieves vast exposure and quickly gains brand awareness with the specified demographic. Magazines such as Harperâ&#x20AC;&#x2122;s Bazaar, Womenâ&#x20AC;&#x2122;s Health, Cosmopolitan and Forbes will be invited to events and approached with press releases; these magazines have previously featured articles covering competing London based yoga studios, signalling a successful outcome. Local London papers and smaller organisations will also be approached to ensure the niche consumer segments, within the young professional community, are targeted effectively.

102

103

104

7.7.4 PHYSICAL DISPLAY & BRANDED PROMOTIONAL MATERIALS Printed promotional materials will exist in the studio to physically reinforce the brand image and maintain the premium quality. Window displays, graphics, and branded packaging will collectively enhance the brand image and promote Evergreen Yoga Studios. Research states that 68% of consumers think that good packaging emphasises that a brand is upscale (Mayer, 2019) The Infusion Tea bar will have branded biodegradable take-away cups to generate brand recognition and attract new consumers. Decorative window displays will also serve as a powerful magnet to draw attention to the studio and grasp consumer attention, increasing footfall (Posner, 2015) As identified in Chapter Twoâ&#x20AC;&#x2122;s insights, instagrammable displays will draw consumers into the studio. Primary research revealed that 37% of consumers would be influenced to visit somewhere if it is Instagram worthy, with a further 45% confirming that they would upload a photograph of themselves at the venue despite not being initially influenced by the aesthetics to visit: only 18% of consumers said attractive physical displays would have no influence on their visit. EYSâ&#x20AC;&#x2122; brand recognition and engagement will benefit from their biophilic aesthetic that is maintained throughout the property, with devoted Instagrammable wall displays.

7.7.5 FREE TA STER CLASS Each customer will be entitled to one free class within the opening two months; to redeem this they must sign-up to the email marketing. This will stimulate consumer trial and engagement and begin the foundations of a genuine, longterm customer relationship (Jackson and Shaw, 2010). This promotion technique will result in a build-up of consumer interest, possibly provoking a wait list; as explained by McQueen (2020) this would benefit EYS, generating a buzz and contributing to a positive brand reputation from the outset.

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7.8 KEY PERFORMANCE INDICATORS PERFORMANCE AREA

Business Performance

TARGETS • To increase the total net revenue by 30% from the first year of operating to the third. • To grow the total number of attendees p/a by 15% year on year. • Establish a successful timetable with varied classes.

Brand Performance

• To change the perception of yoga amongst the target demographic. • To create a loyal community of EYS consumers. • To increase the share of EYS memberships from 10% of attendees in year 1, to 25% in year 3.

Marketing and Communications Performance

• To captivate consumers with the brand mission, vision and values. • To sustain an average engagement rate of 3.45% from influencers’ paid posts. • To sustain an average to high engagement rate on EYS’ instagram owned media.

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TABLE 7.8

K P I’ S • Regularly measure revenue against the sales forecast and monitor sales. • Record and measure number of attendances. This will be done by the studio software installed on the website, app and at the reception. • The success of the different classes will be closely measured and identified by a low churn rate and a good consumer retention rate; Curley (2019) states that “the retention rate among fitness studios sits at 75.9%” this figure will be used as a target for EYS to aim for. Furthermore, reviews will also be a useful indication of consumer satisfaction levels.

• This can be measured by the brand engagement; monitoring instagram followers, like, shares and comments, measuring website traffic, and analysing footfall numbers. Mee (2020) confirms that good to high engagement rate sits between 3-6%. EYS will be aiming high as their target consumers are the most active users of Instagram. • Loyalty will be measured using Consumer Lifetime Value data and monitoring retention rates. • The annual revenue from memberships will be measured year on year to monitor growth.

• The website traffic numbers will indicate how many consumers have wanted to find out more following campaigns, promotions and advertisements. The number of free classes claimed in the first 2 months of opening will signify initial consumer interest. In addition, sales of event tickets will further clarify the number of consumers who are intrigued and wanting to learn more about EYS. • The EYS influencers engagement rates will be measured by using Google Analytics data, and by giving each different influencer a custom trackable link to the EYS website that can track their unique engagement statistics (Griffin, 2016). A promo code was considered for the influencers to use in order to help determine their success, however this detracts from the premium value of the brand so will not be used. • Instagram engagement data will be continuously measured and compared with the target as mentioned in the Business Performance KPIs.

7.9 COMMUNICATION TIMEPLAN COMMUNICATION

PRE

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

LAUNCH EVENT

TASTER CLASSES

SOCIAL EVENTS

PRESS COVERAGE

PHYSICAL DISPLAY

BRANDED MATERIALS WEBSITE

INSTAGRAM

INFLUENCERS

EMAIL MARKETING

APP

fig 7.1

107

108

8.0

BRAND MANAGEMENT

109

8.1 INITIAL FUNDING EYS will be operating as a Private Limited Company (Evergreen Yoga Studios LTD). This reassures shareholders in the company, should EYS fail financially, their personal assets will not be lost. This title also enhances EYS’ credibility and reputation, installing confidence in investors (Johnson, 2020). To ensure feasibility, EYS will require a large capital from various credible start-up sources. There are 4 fitting methods identified to provide EYS with the capital investment required:

£ 5 5, 0 0 0

VENTURE CAPITAL

£ 3 0, 0 0 0 BUSINESS GRANT

£ 2 5, 0 0 0 GOV LOAN

£ 5, 0 0 0 FRIENDS & FAMILY

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TABLE 8.1

METHOD

AMOUNT

RATIONALE

Venture Capital

£55,000

The start-up costs for EYS are sizeable mainly due to the expensive cost of the ex-retail unit in Covent Gardens, a central London location. To cover the deposit and renovation of this, a venture capitalist is a fitting source of funding for the business. Pembroke VCT is a venture capitalist that supports innovation and helps businesses to realise their vision (Hill, 2016) A promising financial forecast will be presented alongside a credible and informative business proposal, in hope for an agreement of £55,000 in exchange of around a 15% share of EYS. Although EYS will have to hand over shares of their business, Pembroke VCT will be providing their valuable time, guidance and expertise to help EYS to grow successfully (Startups.com, 2019; Barrow, 2007). This is evidenced by their existing profitable ventures in the wellness market such as BoomCycle and Plenish (Hill, 2016; Pembroke VCT, 2020)

Grant

£30,000

EYS will be applying for a £30,000 grant from GLA Grants, an organisation supported by the mayor of London, committed to funding greener spaces for the city (Groundwork, 2020). They offer their advice and support with their grants, starting from £5,000 up to £50,000. This is a suitable source of funding for EYS as grants require no repayment. To ensure the business’ application is successful, a promising pitch will be presented to educate GLA, about the choice of biophilic design and the health benefits pledged, in order to fill their objectives (Barrow, 2007). The awarded sum of money will be spent immediately at Plant Plan, UK for the biophilic interior design.

Loan

£25,000

In addition, EYS will require a £25,000 start-up loan, provided by the government. This loan will be spent promptly to cover various marketing costs and overheads. A government startup loan is appropriate for EYS because they do not charge any application fees and charge a reasonable fixed interest rate of 6% per year (GOV.UK, 2020). Furthermore, the loan can be paid back over a period of 1-5 years which is a suitable amount of time for EYS, and should the business decide to repay the loan early, no premature repayment costs will incur (GOV.UK, 2020). Financial prediction documents will be exhibited upon application to assure that EYS will be able to repay the loan in the allotted time with no complications.

Friends and Family

£5,000

A sum of £5,000 will be borrowed from reliable friends and relatives to help start up the business. This source of funding has various benefits as it does not require significant amounts of paperwork and a lengthy application process (Barrow, 2007) Furthermore, there is often little to no interest on the loan or strict repayment schedules, allowing EYS some flexibility. Only £5,000 will be requested from friends and family, which is a small amount in comparison to the other providing sources; this is because there is more risk associated with this method as it is much more personal, can provoke arguments and if the business isn’t as successful as anticipated, money can be lost (Barrow, 2007) To mitigate these issues, fair repayment terms will be agreed and EYS will offer to draw a ‘promissory note’ to further assure all involved parties (Entrepreneur, 2020).

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8.2 KEY START UP COSTS The following start-up costs have been collated from various sources. The cost breakdown for these can be found in Appendix 4.0. Due to the studio location and nature of the service, the startup costs are high, however actions will be taken by the owner of the business to condense these costs where possible.

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TABLE 8.2 COSTS

AMOUNT

RATIONALE

Venue

Rent: £85,000 Deposit: £42,500 Business Rates: £39,000 Property Insurance: £1271.71 Service Charge: £8,467 Utility Rates: £4,800

The success of EYS will depend on the correct location and space for the studio. Although this is a high start-up cost it is imperative for the brand to make sure the space is practical. The deposit will be the only element paid upfront; the rest will be paid monthly.

Renovation

Biophilic Design & Studio Mirrors: £27,615.40 Plumbing: £12,000 Refurbishment: £10,000

The interior of the venue is pivotal to the realisation of EYS as this is the USP of the business. It will need to reflect the brand mission, vision and values, and remain ‘instagrammable,’ to ensure that the studio appeals to the target audience, justifying the large costs incurred. The refurbishment covers the decoration and installation of the reception area, the Infusion Tea Bar and some changing room amenities. The washroom and toilet facilities are also necessary for a fitness studio and should maintain the same high-quality aesthetic.

Set Up

Business Registration: £12 Trademark: £200 Change of planning use: £96 Website Domain: £10.41 WIFI/Broadband: £63

For EYS to operate legally and legitimately, these costs are unavoidable. They are all one-offs associated with the registration and set-up of a new business; they will be paid promptly to avoid any operational complications and fines. Wi-Fi and Broadband will be needed from the beginning to ensure all pre-launch tasks can be completed. This will be installed immediately and be paid for throughout the year.

Functional

£5,000

These costs contribute to the success of the operational aspect of EYS. The business will need a computer desktop to use in the reception area; this will be a basic computer that will have the premium Glofox package installed to ensure the customer experience is efficient when registering and signing up for classes. This will also be a base for the Owner to monitor the business, order stock/equipment and send emails from. Furthermore, the website subscription is an additional monthly cost that will enable customers to purchase and book classes from home; it will have the Glofox package connected to ensure a seamless omnichannel experience. The chosen Glofox package is the most premium type; this includes an app which will be created to further enhance the omnichannel experience. Business insurance will be paid monthly to ensure that EYS is covered for health and safety and legal purposes. Two members of staff will be employed within the first year to ensure the studio is run smoothly. They will be paid the London living wage salary and will work on a full-time contract to ensure that there is always somebody present to serve customers. The final functional start-up cost will be the accountancy fees; they will be paid at the end of the year to ensure that all financial records are up-to-date and accurate, and all taxes are paid.

Equipment

Yoga Equipment: £2,200 Shower Products (variable): £600 Cleaning products: £100 p/m Teacups: £119.70 Glass Washer: £658

EYS will need various equipment to enable the business to provide the services outlined. Yoga equipment will be purchased and provided for EYS consumers. The equipment will be of a luxury standard and enough will be purchased to ensure full classes are catered for. Shower products will be a variable cost that will change depending on the usage rate of the shower facilities. To maintain the luxury aspect of the brand, high quality body wash, shampoo and conditioner will be provided. It will be eco-friendly and natural to sustain the brand values. Cleaning products are essential to keep the studios in a hygienic and tidy state: EYS consumers’ health and safety is paramount. The Infusion Tea bar equipment is a necessity and will be purchased in time for opening to ensure that the service is offered from the outset.

Hot Water Urn: £54.99

T O T A L C O S T S: £ 1 1 4, 6 4 4. 2 2 // C A P I T A L R E Q U I R E D: £ 1 1 5, 0 0 0 113

8.3 MARKETING BUDGET

A detailed year by year breakdown of the required marketing costs are as follows. Justification for the first year IMC costs are further detailed on the following page; these costs are relatively high, however are neccessary for EYS to achieve the marketing objectives set. The justification for these costs are explained in Appendix 7.0.

MARKETING BUDGET

YEAR

YEAR 2

YEAR 3

Creative & POS Studio Photography for website and social media content (Employ a Graduate)

£300.00

£0.00

External Signage

£750.00

£0.00

Leaflets & Business Cards

£200.00

£600.00

Q1 Campaign

(Below)

£0.00

£4,000.00

Q2 Campaign

£2,000.00

£4,000.00

£0.00

Q3 Campaign

£0.00

£1,000.00

Q4 Campaign

£0.00

£12,000.00

Catering

£500.00

£0.00

Decoration/DJ

£150.00

£0.00

Goodie Bags

£740.00

£0.00

£4,000.00

£12,000.00

£26,000.00

£24,000.00

£780.00

£0.00

£15,000.00

£45,000.00

£33,420.00

£62,380.00

£89,380.00

Marketing Agency Marketing Agency: The Good Marketer (Content Creation for Social Media, Digital Marketing, Email Marketing, Online & Offline content) PR Launch Event: (Q1 Campaign)

PR Agency PR Agency: Munch (Launch Campaign (y1) MHA Campaign (y2) (Corporate Open Day (y3) Press Release, Media Contacts) Digital Influencer Paid Posts

TABLE 8.3