SECTOR: Wellness & Fitness Industry

ANSWER:- a)
Macro Environment :- Any organisation is industrial and trading operates within an external
environment that it generally cant control. Macro environmental forces have considerable influence on
any organizations marketing system. These are: Demography, Economic conditions, Competitions; Social
and Cultural forces; Political and Legal forces and Technology. They are macro- environmental forces
because change in any of them can change in one or more of the others.
Micro Environment: The external micro environment is made of three basic forces that are external but
are part of company’s marketing system. These are the firm’s market, suppliers and its marketing
intermediaries.
Macro & Micro Environment Factors of wellness and fitness industry

Political/ Legal : Government :

Due to the current level of influence of the fitness industry in India, the government has taken very few
measures to formulate or promote the growth of this industry. The few policies in places are mainly
related to maintenance of hygiene standards. In particular, civic services in New Delhi have set in place a
regulation that requires fitness centers to grab a license in order to achieve and uphold particular
standards of quality and hygiene . The civic body in New Delhi also, plans to regularly make casual
checks of the licensed fitness centers, however, due to a distinct lack of manpower, these random
sweeps are not very regular at all .
Taxes – the business have to adapt to the changes in taxes. * Health and Safety – businesses need to
keep up to date with regulations to reduce the chance of an injury claim.
Economic : Inflation – is declining meaning consumers will have more disposable income to spend on
luxury services such as a gym membership. * Interest rates and exchange rates – interest rates
historically low 0.5% less people are saving, creating more opportunities for gyms
Social : Influences in social media has created more of a health conscious society leading to more
people wanting to go to the gym.
Technological : Advancement in gym equipment enables customers to surf the internet, connect with
other users, stream music, watch TV, monitor heart rate as well as put their personal data into machines
to make their workout tailored and personal (World Gym).
Environmental : The weather and the “Being Green” scheme are both external influences which will
determine the success or failure of the business in terms of sales and competitive advantage.
Geographic shifts in populations:
People are moving more in terms of employment opportunities, retirements, living standards etc. The
movement has occurred between states, from rural area to urban area and movement from city to
suburbs. Hyderabad was the most attractive destination in 2003 with the growth rate of 22% in 10
years. New delhi comes at second place with more job opportunities. Organizations can monitor these
shifts of population and can decide their marketing campaigns accordingly.

Mirco factors are the factors in a company’s immediate environment that affect its capabilities to
operate effectively.
Customers: Changes in attitudes towards health and fitness have created a larger target market.
Competitors: Newest technology is being offered to keep up with their competitors *
ANSWSER b) :- An Analysis of the Market Conditions of wellness and fitness
According to a report on India’s Wellness Market recently published by Stratview Research, this sector
is set to grow in double digits due to factors such as accessibility to the internet, technology
advancements and availability of abundant modes of training to stay fit and healthy. Also, given the high
market fragmentation and potential, this has offered an opportunity to many investors to invest in the
industry.

With high utilization of the internet and the appearance of technology, information has been one of
among many decisive factors driving consumers to take greater interest in fitness and wellness. This has
led to the surge of consumers, including millennials to actively seek knowledge about the latest products
or services available to help them keep fit. In an exciting market like India, where most products,
services and companies are geared to provide consumers with new modes to stay fit, individuals are
prone to getting what they like.

While many of these consumers prefer going to the gym to get in shape or gain more strength, some of
them are opting for fun and engaging activities such as Zumba, MMA, kickboxing, aerobics etc as
personalized care options. This has overall given rise to the fitness & wellness culture and attracted a lot
of national and international players too. Another rising factor that has evolved as a trend is the visit to
wellness centres due to the youth’s increasing disposable incomes. Consumers today are more open to
spending their money on spas and salons; getting a head or body massage and so on that completely
rejuvenates their body and soul.

As per a Deloitte India report, the fitness industry crossed $1.1 billion in 2017, which means the sector
has evolved rapidly from its aborning stage to a much comprehensive market. In fact, the government's
push to make wellness as a priority in its ‘Make in India’ campaign has also given blooming to the sector.
While fitness - or - say wellness has always been part of the Indian culture with the existence
of ayurveda practices, yoga and meditation, the changing consumer lifestyles and their newer demands
have out looked the traditional practices and replaced it with thousands of modern technologies and
availability of fitness & wellness centers.

ANSWER C)
A SWOT analysis of a fitnesss and wellness sector appraises the sector's health by looking at its resource
strengths and weaknesses .

Strengths in the Industry:

The population of India is the second largest in the whole world is growing. This means that there is a
large customer base that one can tap into as well. Also, India has the largest number of diabetes
patients who are specifically asked to exercise by the doctors. Same can be said for other health
disorders. While this cannot be looked at as strength for India, it definitely can be looked as a chance to
tap into a new market for the firms in the fitness industry . As most of India’s fitness centers are
unorganized, if a new entrant were to establish itself in the top 25% of the players, then he will be
recognized as one of the major players (Indian Gym).

Weaknesses in the Industry:

While the population of India is vast, the measurement of that population that actually makes an effort
to go to gyms or other fitness centers is very small. For those who do go, the quality of the equipment
and service provided is not as important as convenience - in terms of location for example. There fore, a
center providing superior quality could have the same business as a center with very poor quality
equipment. When it comes to price, the organized players can’t compete with the unorganized players
either. Another weakness in the industry is the lack of good trainers who have sufficient knowledge.
Anyone who seems fit goes ahead and becomes a trainer with no real knowledge about what they are
doing. Hence there is a lack of a set standard in the industry. Another major weakness is the seasonality
that comes with the fitness industry. For example, the youth visit the gym the most during the break in
summer and the gyms are full during this time but when work comes around, fitness takes a back seat
with most of them .

Opportunities:
India has one of the highest numbers of populations in the working-class group. Reports show that by
2020, the average age in India will be 29. This goes to say that; large number of youth in India provides
the fitness industry with an opportunity to boom. With India in the era of dominance of social media,
almost everyone is looking to put their best foot forward and this opens a platform of opportunities for
the fitness and beauty industries in particular . The per household suppliable income in India is on the
rise as well which further proves that people will willingly spend money on the way they look in the
years to come. Currently only 28% of the market is held by organized players, small and big, therefore
the entrance into that sector of the industry could be relatively easy and also highly profitable (Indian
Gym).

Threats:
The main threat that the fitness industry faces is its lack of standardization when it comes to the hiring
of trainers in these gyms. India in particular does not have much training centers where interested
personnel can first get trained and then train others. While in countries like the US, this is mandatory
to step in order to become a trainer. The lack of quality trainers could harm the industry because
consumers will then have to reply on their own knowledge, which could be bounded, and they could
injure themselves. Also, since the entry into the industry is not too hard because of the small number of
organized players, it could be a threat to already existing players in the industry . The most major threat
is the fact that fitness does not necessarily achieved only in a gym. Most fitness centers work on a
membership basis and this means there is a lot of money involved. although, a person can stay fit by
working out at home, buying equipment and having a mini-gym suited to their needs, using body weight
instead of weights, or just going out for a run anywhere. Recently, there are resistance bands (elastic
bands) which can be bought at roughly 1000-1500 rupees which completely swap the need for
equipment at all because the band gives you the same level of resistance and hence works the muscles
the same way a machine at the gym would. Hence, the availability of substitutes and the lack of trainers
is not the best combination because of which the fitness industry could really be hurt .