|University||The University of Newcastle (UoN)|
|Subject||GSBS6001: Managing Under Uncertainty|
Case Study Assignment:
Provide an analysis of the attached case study: Tone fitness ladies’ studio: market segmentation or market mix?
Note: An effective response would address four key issues:
a. Identified decision making issues/problems
b. The cause and effect of the identified problems
c. A decision of the root cause(s) of the identified problems
d. Recommended solutions to the identified decision-making issues/problems.
Case Study Brief:
Tone fitness ladies’ studio: market segmentation or market mix?
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 amongst 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?
During a regular management meeting at Tone Fitness Ladies’ Studio (Tone), Amna Mohamed Omer and her two sisters – the studio’s owners – were discussing the challenges they faced in the studio’s market. Amna, Tone’s marketing manager, shared a monthly report on the studio that distilled the declining trend in the number of clients over the previous six months. The loss of clients had caused many classes to be canceled due to insufficient demand, forcing Tone’s managers to change instructors’ schedules.
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