Orange theory Body Therapy Assignment | College Homework Help

Add up to 2 pages of the new material: market analysis and strategic objectives of your marketing plan.
A market analysis is a quantitative and qualitative assessment of a market. It looks into the size of the market both in volume and in value, the various customer segments and buying patterns, the competition, and the economic environment in terms of barriers to entry and regulation. It is the right place to address COVID-19 limitations and impact on your business operations that might be temporary or ‘new normal’.

Strategic objectives are statements that indicate what is critical or important in your organizational strategy. In other words, they’re goals you’re trying to achieve in a certain period of time—typically 3-5 years. Your objectives link out to your measures and initiatives. Here you also speak about your 4P strategies in general.

Orangetheory Fitness Body Therapy Marketing Plan

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Orangetheory Fitness Body Therapy Marketing Plan


Portfolio Review

Orangetheory Fitness (OTF) is among the fastest-growing franchise businesses in the world. It is based in Boca Raton, Florida. Ellen Latham, Jerome Kern, and David Long established OTF in 2010 as a science-based fitness franchise. The company has since become one of the world’s most successful franchise companies. As reported by Dominic (2019), the company was ranked number twenty-five on Entrepreneur’s 2019 Franchise 500 list and had surpassed 1 billion USD in 2018 system-wide sales. Currently, OTF has more than 1,200 studios and one million members around the world (Bondy, 2020).

OTF has succeeded in developing an exceptional approach to fitness, which blends a distinctive trio of technology, coaching, and science that work together impeccably to elevate the heart rates of participants and help them to burn calories. OTF combines strength training, rowing, and running, while a heart rate monitor makes sure that participants are optimizing their workout (Bondy, 2020). The company also sells workout apparel, accessories, equipment, and OTbeat wearable devices. Since recovery is a crucial part of wellness and fitness routine, OTF should add body therapy massage chairs to its existing portfolio. Specifically, it should start selling these fitness products to help participants with joint and muscle relaxation.

Porter’s Five Forces

Competitive Rivalry

The competitive rivalry in the fitness industry in which OTF operates is high. Several companies compete in this industry. OTF faces high competition from other leading fitness companies and the new companies that succeed in entering into this industry. These competitors engage in price wars. The high competition reduces the overall profitability of the fitness industry as well as the profitability of firms.

The Threat of New Entrants

The threat of new entrants in the fitness industry is moderate. There are no significant entry barriers except the retaliation from incumbents and high capital requirements. The established fitness companies easily initiate price wars and invest heavily in advertising in their effort to compete against each other and drive new companies out of the industry. There are also huge capital requirements related to opening and running a fitness business. However, entry barriers such as government policies and economies of scale do not deter new companies from entering into the fitness industry. The threat of new entrants, therefore, has a moderate impact on industry profitability.

Bargaining Power of Suppliers

The suppliers in the fitness industry are mainly manufacturers of workout apparel, equipment, and accessories. These suppliers have low bargaining power because they are several and the cost of switching from one supplier to another is low. Consequently, suppliers have a low impact on the profitability of fitness companies and the overall profitability of the industry.

Bargaining Power of Customers

Unlike suppliers, the customers in the fitness industry have high bargaining power. These customers have relevant information about the quality of services and products they expect from fitness companies. They are also price-sensitive and can easily switch from one fitness company to another. Thus, they have a high impact on the profitability of OTF and other fitness companies as well as on the overall profitability of the industry.

The Threat of Substitute Products or Services

The threat of substitutes is high in the fitness industry. There are several substitutes. For instance, fitness participants can workout at their homes. Besides, these participants can exercise using heavy objects at home. There are also several workout and fitness software programs, which participants can procure and use. The cost of switching to substitute products and services is low. Consequently, this force has a high negative impact on industry profitability and the profitability of companies.

SWOT Analysis


OTF boasts of high brand recognition. It will, therefore, not incur huge costs as far as the marketing of the new product (massage chairs) is concerned. Additionally, the company has highly skilled coaches. Thus, the company will not struggle in convincing its customers to use they body massage chairs. OTF also has a large membership base. It will be easier for the company to sell the new product to these members. Furthermore, the franchise business model will help the company to market its body therapy additions in different countries.


However, OTF’s high charges might scare away new customers, especially the price-sensitive customers, from adding body therapy massage chairs to its packages. Besides, as a franchise company, OTF will have to share the profits realized from the sale of its massage chairs with its franchisees. Moreover, a mistake done by a franchisee might have a negative impact on the sales of the new massage chairs.


OTF has an opportunity to sell its body therapy choices to its customers in different nations. Also, the company has an opportunity to appeal to new customers with its body therapy massages. Moreover, the company has an opportunity to expand the sale of its massage chairs globally by entering into more franchise agreements.


Nevertheless, the threat of high competition might make it difficult for the company to sell its body therapy massages. Additionally, rapid technological advancements might render the company’s massage therapy obsolete.



















Bondy, H. (2020, Jan 2). Fired at 40, comeback at 54: How Ellen Latham built fitness giant Orangetheory. NBC News.

Dominic, A. (2019). Orangetheory Fitness exceeds $1 billion in 2018 system-wide revenue. Club Industry.


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