Tone fitness ladies’ studio: market segmentation or market mix?

Abstract

Learning outcomes by reading and understanding the case study, Students will be able to link the importance of healthy life style and the physical exercise to the fitness industry in the UAE society, to reduce the growing percentage of obesity and related diseases; identify the main challenges of Tone Fitness Ladies’ Studio (Tone); explore the market segmentation of fitness centers in UAE based on a benefits segmentation of fitness industry; identify the demographic segmentation of Tone Fitness studio and the effects of considering gender and age; and develop individual perspectives of how Tone Fitness ladies’ studio may overcome the challenges to compete in the UAE fitness market.

Case overview/synopsis Three sisters from the United Arab Emirates (Hind, Mariam and Amna Mohamed Omer) have established a fitness studio for women in Al Maqta’a (formerly known as Bain al Jasrain) on the eastern side of Abu Dhabi. Each of them shared a passion for sport, which led them to realize their business idea of setting up a fitness studio specifically for women. An understanding of Emirati culture and the needs of women in their society inspired them to think of a special place where women could find relief from work and life demands while also exercising pursuant of a healthy lifestyle. They launched Tone Ladies’ Fitness Studio (Tone) in September 2014, the first fitness studio for women in Al Maqta’a. The studio is in the same building as a cooperative hypermarket – a very good location because it is visited by many people and has ample parking spaces. Partly due to growing interest among Abu Dhabi residents in fitness and health, new fitness studios opened nearby in 2016, with competitors offering excellent services at reasonable prices. While the demand for fitness and healthy lifestyle pursuits is high in the region, the market has also expanded greatly to meet this demand, with many high-quality options becoming available. As a result of this, businesses such as Tone are facing serious threats to their sustainability. Thus, first, how can the Omer sisters sustain their business and strategize to maintain customers in their market segment? Second, what could they do to improve the market position of Tone in the UAE fitness market?

Complexity academic level This case study is suitable for advanced level of diploma certificate in marketing or undergraduate student of marketing field.