Collision Martial Arts’ vision statement is to provide the means for each and every individual to possess a more productive and fulfilling life experience from martial arts by learning respect, honor, self discipline, self defense and physical fitness in a professional structure and friendly environment.
The main objective is to create an environment where individuals will learn martial arts while enjoying their experience, inner personal growth and physical and mental achievement. For Collision to fulfill these targets, the company has to provide its customers with the highest quality martial arts training and physical fitness, which will increase their self esteem, concentration, discipline and self growth (Braun 2002).
Market size, trends and opportunities
Trends in the industry show that individuals are no longer seeking martial arts classes primarily for defense skills but are mostly driven by other reasons such as recreation and fitness needs. Parents enroll their children in order to keep them active, while the elderly seek such services to increase their balance and coordination.
Growth in the industry will be driven by cultural and societal trends, with more and more people seeking martial arts for therapeutic and health reasons.
The US is undergoing a culture change that has seen more and more people gain interest in routine exercise. As people adopt the living healthily norm, Collision Martial Arts will take advantage of the opportunity by opening several outlets within Chicago, and other major cities within the country.
Collision may also take advantage of this by continually informing the public on the importance of keeping fit through martial arts programs. The market is expected to achieve a 15 per cent growth rate in near future, fueled by changes in societal preferences and population growth in Chicago.
Campaigns on losing weight and fighting obesity currently sweeping the nation are encouraging individuals to join, and enroll their children, in fitness centers such as martial arts schools in order to improve on their health. Some people have also expressed their dissatisfaction with diet products since they take time to be effective, and also deny people the opportunity to occasionally eat appealing foods that may be high in fats.
These people can turn to martial arts schools that offer fitness programs, whereby the individuals can also benefit from the discipline taught in such schools, such as perseverance, humility and courage. Collision Martial Arts School can provide weight loss classes, or programs, to attract this class of individuals.
Baby boomers also present an opportunity for the growth of Collision Martial Arts School’s revenues. The number of over 60 year olds visiting fitness centers has increased as the old individuals try to keep fit and avoid the health problems associated with their old age.
Most of he old are also retirees, and may need a hobby to engage in, and a place where they could also socialize with their peers. Collision could incorporate involving activities in some of its classes in a bid to attract the older members of the society.
For a martial arts establishment to succeed in the industry, the business should have a competitive pricing policy and favorable hours of operations. Location will also serve as a competitive factor, with establishments near suburbs and other residential areas having more competitive advantage.
Start-up costs of setting up a martial arts establishment are relatively low, indicating that there are limited barriers to entry (Bates 2008). Collision Martial Arts School has to differentiate itself in order to offset growth expected increase in competition as the market grows.
The main threat that Collision Martial Arts School faces comes from fully specialized martial arts schools such as Degerberg Academy, Shinjinkai, Jiu-Jitsu Institute and POW! Kids who all offer more facilities and activities.
Indirect competitors in the form of gyms and other fitness centers may take advantage of the popularity growth of martial arts by offering classes in their facilities, thereby increasing competition in the industry.
Other competitors offering low cost classes in studio sized facilities also present a challenge for new entrants into the market. Most low cost establishments offer more convenience to their clients due to their proximity to residential areas.
An economic downturn may also affect Collision Martial Arts School since martial arts could be considered by most as a non-essential service. A downturn in the economy would result into sharp drops in revenues as more people cut back on expenses.
Martial arts include various disciplines, including Muay Thai, Judo, Jiu Jitsu, Aikido, and Tae Kwon Do. Most martial arts schools teach popular disciplines, while Collision seeks to offer mixed classes, emphasizing on disciplines that enforce the school’s strategy of keeping its students fit and healthy.
Majority of the adults who engage in martial arts do so as a way of keeping fit, rather than reasons such as learning vital martial arts fighting skills.
Women may partake in martial arts for security reasons, believing that stand a better chance of defending themselves once they have enrolled for martial arts classes. More boys than girls are likely to be interested in martial arts, in terms of children.
The reason behind this may be that boys are more physically active than girls. Ethnicity is not an issue in martial arts, with people of all cultural backgrounds standing almost similar probabilities of enrolling for martial arts classes.
The household income could also influence recruitment in martial arts classes, whereby the more the income, the more the chances that the parents, or their children, could enroll for martial arts. This could be due to the added disposable income, whereby such parents are more likely to indulge in other activities after satisfying their basic and social needs.
Martial arts schools and fitness centers that are located in high income neighborhoods have a higher probability of success than those located in low income residential areas. Another reason for this is that martial arts could be perceived as an activity for the wealthier in society, therefore explaining why more fitness facilities are located in affluent residential areas.
People would prefer martial arts schools that are located in proximity with their residential areas in order to provide ease of transport to and fro their homes. A martial arts center that is situated in the middle of a residential area is likely to generate interest from the local inhabitants.
Adults will be more comfortable when enrolling for martial arts schools when they know that they can access such facilities without disrupting their daily schedule. A close school would mean that adults can access evening classes after they get of work related activities.
No frills fitness establishments are gaining popularity in the country, with customers of such establishment saving costs by purchasing only basic requirements. Customers may prefer saving on unnecessary expenses, such as a personal locker and showers, when they can easily access them in their homes.
Low cost competitors take advantage of this by not offering traditional amenities such as lockers and showers, thereby passing on the cost savings to customers who will simply attend a martial arts class and take showers in their houses.
Long term contracts, such as annual and 6 month contracts, could deter potential customers who want to learn martial arts for a few weeks. Lengthy contracts greatly inconvenience customers since they make them indebted to the martial arts school once they sign the contracts.
Further more, customers may reallocate to another region, making it harder to access the schools facilities even though they the school still expects them to pay monthly subscriptions.
The main basis for segmentation in this market would be through age distribution. Collision martial arts school is in a broad market, whereby the school aims to position itself with the young generation. The school projects that 50 per cent of its members will be in the 6-12 age groups, while only 30 per cent of members will be aged 30 or above.
Due to the largely young member base, the school will be a fun and exciting place for members to train and improve their fitness levels. The school will also offer a wide variety of activities in order to keep members interested and involved in the school.
Collision aims to market itself as a one-stop martial arts school, whereby students can expect to learn a wide range of activities. Parents can be assured that their children will be taught on how to manage their energy in positively, develop endurance and humility and above all, respect for others.
Collision may occasionally require its students to engage in volunteer programs since the school wants its students to grow both physically and internally. The goal of the school is to teach its students to succeed by providing them with the tools of becoming positive role models, and to contribute to society by making it a better place for all members of the community.
The main goal of Collision Martial Arts School is to provide its members with quality martial arts instructions and training, while facilitating a safe and positive learning environment where students of all ages can have an enjoyable experience. The 2100 sqf space leased by the school will be spacious enough to accommodate various classes that will be taking place simultaneously.
The school will be located 2934 N Milwaukee making it easily accessible and providing ample parking space for all members. The school’s 10 experienced instructors are assured to deliver quality training services to all members.
The Collision Martial Arts School will take on a cost leadership approach in its pricing policy. A value-priced fee structure of $80 per month for members aged between 6 and 12 years old will be adopted. Beginners and intermediates, who will form part of the basic program, will be charged $85 per month, while the Black Belt Club members, who are more competitive, will be charged $90 per month.
The cost structure is not rigid as the school will periodically review the fees paid by loyal members, while promotional discounts will also be offered to members who recruit new students.
The school will carry out an aggressive promotional campaign, with school teams setting up demonstrations of the Collision’s activities in local shopping and strip malls parking lots in order to create awareness and develop interest in Collision martial arts school. Advertisements will be placed in popular fitness magazines and newspapers.
The school will offer 30 days of free lessons to all interested persons, whereby the school expects to recruit six to eight out of every 10 people who take up the free lessons offer. An introductory package of $29 will feature two personal training sessions, together with a uniform. An introductory 6 month contract
Collision martial arts school aims to position itself as a modern martial arts institution, relying on its modern state of the art facilities, quality instructions and convenient hours. The school’s member base will largely be made up of young kids, hence implemented programs will be entertaining and adventuresome, providing a fun and exciting place for young members to train and learn.
The school will not be limited to young members as Collision will also provide services for the local police force, bodyguards and anyone interested in martial arts in the Chicago area, thereby providing the school with a wider revenue steam.
Assuring accessibility to the school’s classes would be a quick and effective way of increasing membership. Favorable pricing policies are likely to attract and retain members, and ward off the competitions’ efforts. Differentiation of services at the martial arts school will increase the intrinsic value to consumers, thereby increasing levels of loyalty and lower membership turnover rates.
Effective promotional activities that communicate Collision Martial Arts School value delivery and affordability will create awareness for the school’s classes and profile, increasing interest in martial arts, hence lead to increase in membership rates.
Location and layout
Collision Martial Arts School will serve a large community area in Chicago, along W North Ave. the area is far from the noise and pollution of the city, and nearness to the park means that students can go on runs in order to exercise for the classes. The location also experiences little traffic, so members can easily access the classes with little restrictions.
Collision martial arts school will focus spending on flooring, installing mirrors, restrooms and an office area, a front desk sales counter and a store front sign. Simplicity will be the theme of the layout, with a simple studio equipped with mirrors whereby students can evaluate their movements during class sessions. Floor mats will be used to make sure that students learn martial arts in a safe environment, and prevent potential injuries.
Labor needs and supply
Collision requires 10 martial arts instructors with experience in various disciplines, therefore providing valuable input in teaching. The owner of Collision Martial arts school, Cinthia Flores, has a fifth degree black belt in judo, and will be available to offer her invaluable knowledge to the school.
The staff should be willing to work on flexible hours, though a schedule will drawn up to make sure that their time is used appropriately, especially in full classes. The floor space will be big enough to handle a class of up to 15 individuals at a time, whereby classes can be divided in case members exceed the number. Five to six teachers will be constantly involved in personal training sessions, while the rest will be deal with class activities.
Collision Martial Arts School’s location is a drive away from children centers such as Hope Christian School and Frances Starms Early Childhood, thereby enforcing on Collision’s strategy of targeting young members.
Occasionally, two instructors may be sent into the field to create awareness and promote the collision martial arts school in areas such as shopping malls and schools in accordance with the school’s marketing campaign. The instructors will be paid commission, and over time, for their efforts. Schools and shopping malls will be alerted well in advance in order to allow the school to plan for the visits, and schedule their sale force.
Gross profit margins
Collision will have to offer an attractive pay package in order to keep its experienced instructors. Martial arts teachers will receive an annual salary of between $15,000 and $20,000 per year, depending on their experience and work load. This would mean that the martial arts school would have to make more than $200,000 a year in order to break even.
An aggressive campaign will try to recruit more members, and ultimately revenues for the school. The proposed future plans to expand and accommodate a health club exercise gym for parents to enjoy while children are in classes will increase membership, while plans to train police officers in the near future will provide the school with more revenue streams.
Bates, M. (2008). Health fitness management: a comprehensive resource for managing and operating programs and facilities, 2nd ed. Champaign, IL: Human Kinetics.
Braun, E. (2002). How to Buy and Manage a Fitness Club: A Guide to Success and Profit. Haverford, PA: Buy Books on the web.