Circuit Fitness Importing is a start-up business that has been formed as an Oregon registered LLC. The company has been formed to become the exclusive importer of the Wega Corporation's innovative Esercitazione Diritta (Exercise Standing) fitness equipment. Circuit Fitness Importing is poised to receive the exclusive license to sell this patented equipment, already very popular in Europe, in the U.S.A.
The Market
The American fitness market, a smaller subset of the sporting goods industry has sales of £5.8 billion. The last 10 years has seen significant spikes in membership and usage of this equipment. Americans, on a societal level are beginning to realize that their unhealthy eating habits and lack of physical activity can have a profound impact on their lives. Consequently, fitness participation is booming. Circuit Fitness Importing has identified three customer segments that are particularly attractive:
- Distributors– This distribution layer accounts for 60% of the sales of fitness equipment. These sales occur primarily to independent fitness clubs.
- Health Clubs– This is another huge customer segment that is expected to have £565 million in sales for 2004.
- Vertical Markets– These non-fitness industry facilities have over 30,000 facilities.
The Product
Esercitazione Diritta, Wega Corporation's flagship fitness equipment is a patented technology applicable to strength fitness equipment. All other strength fitness equipment manufacturers have users placed in a seated position when performing the exercises. Esercitazione Diritta, instead, has the user stand. This is advantageous for several reasons. First, this strengthens lower body muscles that hold the body upright. It also strengthens central motor skills needed to maintain an upright position relative to the offsetting forces generated from the weight lifting. Esercitazione Diritta is protected patented technology which provides Circuit Fitness Importing a competitive edge. Additionally, Esercitazione Diritta is built on casters allowing the units to be moved as necessary.
Management
Circuit Fitness Importing will be led by Max Peruggio. Max has achieved numerous accomplishments that will provide him with the necessary skill set to execute on this well researched business model:
- Project manager for civilian and military projects in excess of £100 million.
- Accomplished sales manager, boosting sales of a design firm 10-fold in two years.
- Fluent in Italian and English.
- Successful importer of Italian goods into the U.S.A.
The combination of a exceptional products, the exclusive license to import the patented technology and an experienced sales and project manager will allow Circuit Fitness Importing to quickly gain market share. Revenue for years two and three have been forecasted to reach £1.0 million and £1.2 million respectively. For the same years net profit will be 6.0% and 6.98%.
1.1 Mission
Circuit Fitness Importing's mission is to offer the finest, most innovative fitness equipment to the U.S.A. market. Circuit Fitness Importing will ensure all of their customer's expectations are exceeded. By only offering the highest quality product with premium support, Circuit Fitness Importing will become the premier fitness equipment importer.
1.2 Keys to Success
- Provide value to customers with the best, most innovative product.
- Develop strong relationships with distributors, anticipating their needs.
- Employ strict financial controls to ensure profitability.
1.3 Objectives
- To become the sole U.S. importer of the revolutionary new Esercitazione Diritta exercise system.
- To generate revenue of £1 million within two years.
- Achieve profitability within the first year.
