Aimee Embree

Open Minds Fusion Studio

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Table of Contents
Introduction
Market Research
Competitor Analysis
Segmentation
Targeting
Positioning
Recommendations
Introduction
Open Minds Fusion Studio (OMFS) is a new yoga studio located in the Uptown area of
Minneapolis. After much consideration of the saturated yoga market outside of Uptown, OMFS
calls 515 W Lake St, Minneapolis, MN, 55408 its permanent home. Their motto is Where aerial
meets yoga and pretty much everything in between. If you want something unique, this is where
youll find it. Even if you dont find what you are looking for, the owners of Open Minds Fusion
Studios are always open to suggestions. Currently on: http://openmindsfusionstudio.com, a
detailed calendar of class offerings is available. Anywhere from Buti, prenatal or aerial, plus
nutrition, yoga is currently being offered with options for open gym time as well. It doesnt
matter if youre an expert or a beginner, OMFS is a place to come where you will never be
judged and leave feeling refreshed and confident as ever.
Market Research
Who does yoga generally appeal to?
In 2008, it was reported there were 15.8 million yoga practitioners, but the most recent
number shows 20.4 million Americans are now practicing. The yoga industry is dominated by
females both in instruction and student status. According to Yoga Journal, 82% of yoga goers are
women and only 18% are men. Over 60% of those practicing yoga are between the ages of 1844. There is a steady range of those who have just began practicing yoga (38%), are fairly new
but acquainted (30%), and very familiar with yoga (32%). The average yearly household income
of yoga enthusiasts is over $75,000 and even ranges to over $100,000.
Who does OMFS want to appeal to?
OMFS wants to appeal to mid-twenties and early-thirty year olds living or working
in/around Uptown, Minneapolis. They are seeking individuals who are looking for something
new to try to break out of the typical workout regime at a gym. These can either be people who
are always interested in the next fitness trend or those who have hit a plateau and need something
new to advance their health goals. Koreen and Angela envision a place where their customers can
feel comfortable with their bodies and provide a respectful environment for yoga goers to be at
peace with their minds. OMFS would also like to tap into the service industry employees and

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offer yoga classes at hours that will work around their night shifts. In doing so, this could create
a potential business to business partnership offering cross promotion as well as a way to stand
out to competitors.
Is the yoga industry a growing and promising business?
With a huge growth of the industry between 2008 and 2014, the yoga industry appears to
be promising. Those who practice yoga are able to afford it and reportedly spent an estimated
$10.3 billion on classes, equipment, clothing, and other products in 2014. More than 30% of
Yoga Journals readers have a household income of over $100,000. Considering the new wave of
beginners dominates the industry, it shows the interest for yoga has increased in the last decade.
With a solid interest in yoga and the money to spend on it, yoga is a growing field and very
promising to business owners looking to offer yoga.
How much competition is there for yoga in the metro Twin Cities? Does the market appear
to be saturated?
The yoga industry is quite saturated in the metro area of the Twin Cities. There are many
places that offer yoga, and within blocks of Open Minds Fusion Studio. The advantage OMFS
holds is the wide variety of yogas being offered, specifically their best appeal to keep them in
the competition: aerial yoga. Their ability to offer teacher/student trade-off keeps them on the
map with teachers looking to expand their skills, and also take classes from other teachers who
are more advanced than they are.
Does the metro area offer aerial yoga right now?
As of right now, the biggest competitor of aerial yoga in Minneapolis is Twin Cities
Aerial Yoga and Yoga Center Minneapolis. These sessions are offered at Tula Yoga & Wellness
99 Snelling Ave N, St Paul, MN 55104. Aerial yoga is offered by TCAY on Thursdays at 6:00 pm
and Sundays at 10:15 am. YCM offers aerial yoga about three times a week at random hours of
the afternoon. With that being said, OMFS has minimal competition with aerial yoga.
How can aerial yoga appeal to those who havent tried it?
Aerial yoga offers many benefits that can easily be marketed to those already interested in fitness
and yoga, as well as those who dont participate in either on a regular basis. Some of the benefits
include: Positive alignment, improved focus, joint decompression, increased endorphin levels,
cardiovascular fitness, increased muscular strength, weight loss, increased blood flow, improved
flexibility, among many other benefits.
What demographics are in favor of OMS potential target market?
Demographics found on Census.gov for the Minneapolis, Minnesota show there are 50% females
living in the area and the median household income is $53,046.
What needs are trying to be met when doing yoga?
Those who practice yoga are doing so as tool for meditation and an outlet for fitness. They are
practicing their posture, doing breathing exercises, meditating for a healthier mind, body and

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spirit. Yoga is a way for people to stay active and tone up, all while centering the mind. Stress is
a main reason to pursue yoga, it can help clear the mind and return to a peaceful state.
Competitor Analysis
The yoga industry has increased its customers to over 20 billion people within the last
couple of years. Yoga has proven itself to beat the stage of being a fad, and continues to draw
people in every day. With the growing number of those interested in yoga comes the growing
number of yoga studios opening and yoga instructors becoming certified. Bill Harper of Yoga
Journal said, The combination of the growth of people participating in yoga and the recession
has caused a lot of people to either become full-time yoga teachers or do it as an adjunct to their
day job. Not only are people interested in yoga more than in the past, but more people are
interested in having a job as an instructor on the side from their day job. This can be a slight
threat to Open Minds Fusion Studio but with their addition of fusion yoga, as well as specializing
in aerial yoga, they can stand out better to their competitors. There are many competitors out in
the metro area of the Twin Cities, but three of the main ones are: CorePower Yoga, Yoga Center
Minneapolis and St. Louis Park, and Twin Cities Aerial Yoga.
CorePower is most likely going to always be a competitor for OMFS even though they
dont offer all of the services that OMFS will. CorePower has built its brand well in the midst of
the yoga phenomenon, therefore their name will probably always come to mind when someone
mentions yoga. CorePower is moderately active online on Facebook, Twitter, Instagram,
YouTube, LinkedIn and Pinterest. They dont appear to post every day, especially on Twitter, and
arent very active on Pinterest despite their 3,348 followers. Their YouTube has a lot of
informational videos on how to do poses and for yoga at home. They have 46,000 followers on
Facebook, as well as Facebook for specific studios based on location in terms of state/city/exact
studio. Their posts are more visual than informational. Even though they have 46,000 followers,
their page doesnt receive many likes on their posts. Their Twitter updates are sporadic and
contain either pictures or inspirational quotes. Although they have 44,000 followers on Twitter,
they dont receive that much customer interaction. CorePower joined YouTube in 2008, but has
not posted a video for 7 months. Although not updating their videos, they have plenty for people
to watch. Their LinkedIn has 8285 followers and has posts mostly offering employment
opportunities.
The next competing yoga business is Yoga Center Minneapolis (and St. Louis Park). The
St. Louis Park location is included in this section because it is not that far from Uptown and with
a two studios open, this can appeal to people moving around through the areas for work and
entertainment. Yoga Center uses the same social media as CorePower except YouTube. They do
differ greatly in amount of followers though, which is expected because it is more local and
smaller. YC has a 4.7/5 rating on Facebook with 77 reviews and 3,197 followers. They use their
Facebook quite actively, only missing a day here and there. They post fitness and yoga
information as well as pictures and inspirational quotes. Although they post often, they dont
always get very much interaction. Their Twitter has 322 followers, Instagram has 414 followers
and Pinterest has 106 followers, with a less active background as Facebook.

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The final competitor to Open Minds Fusion Studio is Twin Cities Aerial Yoga in St. Paul.
Although it is located in St. Paul it is still close to Uptown, and an instructor specializing in
aerial yoga. TCAY is a company ran by Beth Onward, operating out of the Tula Yoga Studio on
Snelling Avenue. The companys online presence is a mix of business and personal. There is a
Facebook for TCAY but Instagram is a personal account. Although there is only 109 followers on
Facebook, the Tula Facebook has almost 2,000 followers which most likely is an easy way for
TCAY to market to current customers already in the studio. The Facebook posts by TCAY are a
majority of pictures of aerial yoga in action.
Currently, OMFS online presence is much like Twin Cities Aerial Yogas presence. Open
Minds Fusion Studio has a Facebook with 230 followers and a five start rating from three
reviews. They post a majority of pictures updating their followers on the progress the studio has
made as well as some fun action pics of yoga. OMFS just launched their website so it is still in
the works therefore it lacks information to let customers know what they offer, pricing,
schedules, class descriptions, etc. In the future, they could benefit greatly from a blog, as it will
increase traffic to the website through repeat readers and SEO. The Instagram account contains
the same content as the pictures posted on Facebook
Segmentation
Segmentation is the process of taking a large consumer audience, and breaking them into
categories based on similar characteristics. Particularly true for new businesses, narrowing down
segments to a small number is important in the beginning. When a company tries to appeal to too
many different segments right away, it can run the risk of failing. Businesses use segmentation to
sort out categories of markets to appeal to based on similar characteristics such as:
demographics, needs or wants, and location.
Although characteristics in the same segment need to be similar, it is crucial that each
segment is different from the others. Once the segmentation process is completed, companies can
examine them closely and choose which segment is best to continue with the company's goals.
There are times when a company may choose one segment or it is possible for them to choose
three. The limit is up to the business, and their confidence in the number they want to appeal to.
The segments that Open Minds Fusion Studios should consider are three different groups. These
are: females between the ages of 23-34, yoga instructors and innovator fitness enthusiasts.

Female Yoga Fanatic

40% of females practicing yoga are between the ages of 18-34
Single or married
An active social and night life
Income level averaging $50,000 or above
Interested in muscle toning and improved body image
College graduate

Yoga Instructors
88% of yoga teachers are females, 12% are males.

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Single or married
Environmentally conscious
267,000 fitness instructor jobs in the US, median annual wage under $40,000
Interested in teaching others and staying healthy
Certified instructor
Innovator Fitness Enthusiasts

51% men, 49% women have a gym membership

The largest group of gym members ages 25 to 54.
Single, married or have been married
Interested in feeling better about themselves and losing weight
High school degree, or bachelors degree.
Minnesota has a health club participation rate of 20.3 percent.
Minneapolis, MN spends $85.22 per month of fitness classes/membership

Targeting
The targeting process in creating a marketing plan focuses on which segments will have
the best success for the business. While you cannot include everyone, this is an important area to
really narrow down which market has the greatest potential. An optimal market for Open Minds
Fusion Studios will need to fit in similar with other yoga studios but has the ability to stand out
by attracting many yoga instructors who are looking to expand their knowledge, and turn around
to teach at the same time. Although there may be many different markets to target to in terms of
yoga, Open Minds Fusion Studio will be targeting the following: Female Yoga Fanatics, Yoga
Instructors, and Innovator Fitness Enthusiasts for profitability and most strategic fit.
It is no surprise to find that one of the leading target markets for Yoga is women. Women
dominate about 70% of the yoga industry in comparison to men. Although there is still an
opportunity to market to about 30% of men, women are the most promising market to start out a
new yoga business with. There are approximately 41% of women 35-55 practicing yoga in the
United States, but considering Open Minds Fusion Studio is located in Uptown, Minneapolis it is
more ideal to market to a younger crowd. Interesting enough, women between the ages of 18 and
34 make up 40% of the yoga market; only sacrificing one percent of a potential market. These
women tend to be on average college graduates and making at least $50,000 annually. The
younger half lead an active social and night life, which is popular in Uptown. Considering
OMFS would like to later open up their market to the service industry, this demographic could be
promising in bringing in that population. This group of women can be impulsive buyers, yet are
sophisticated with their purchases. Their main goal with yoga is to tone up muscle and improve
their overall body image in the process.
Open Minds Fusion Studios have an interest in appealing to not only students, but
instructors as students as well. Therefore, the second target market is yoga instructors. In this
target market, it is important to not only appeal to women, but also try to gain some of the
customers as men too. About 88% of yoga instructors are females, and 12% are males, leaving a

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small portion of men to work with but a possibility of that market growing in the future. This
market is either single or married. They are environmentally conscious and have a natural talent
for teaching others while interested in staying healthy. Yoga instructors are certified instructors
and make under $40,000 a year. Because OMFS is interesting in exploring cheaper options for
teachers, there is a possibility to set them apart from other yoga studios.
Innovators Fitness Enthusiasts are those always interested in the next best thing in the
fitness world. If its new, they want to try it. Because one of OMFS trademarks is aerial yoga,
this is a market with high potential to grab their attention. With the new introduction of fusion
yoga, there is always sure to be something that can keep the innovators interested. Fitness trends
have become newer in the last couple decades, resulting in a lack of reliable statistics. Instead,
the following statistics give an insight into the fitness world in general. This market is unique
because it is almost exactly split in half with female and male participants, 51% men, and 49%
women. The largest group of gym members are between the ages of 25 to 54, and all share an
interest in feeling better about themselves and losing weight. Because there is a vast age range,
they can be single, married or have been married before while obtaining a high school degree or
a bachelors degree. Minnesota has a health club participation rate of 20%, and Minneapolis has
consistently landed on the most fit cities in the United States. Yoga has been ranked number 10
on the list of upcoming fitness trends and 2nd most popular for group exercise
Positioning

PRODUCT
PRICE
PLACE

PROMOTION

4PS OF MARKETING
- Yoga classes
- Yoga instructor/student trade off classes
- Aerial and Fusion yoga
- Charged differently based on teacher
- Prices based on time slot
- Offer packages
Open Minds Fusion Studios
515 W Lake Street
Minneapolis, MN
- Website
- Social media (Facebook, Twitter, Instagram)
- Email
- Cross promotion with service industry

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Following segmentation and targeting, comes the positioning process. Positioning a

product or service is the decision of where to position it in the market. When positioning, it is
crucial to think about how to stand out from competitors. Open Minds Fusion Studios has
possibly the most important way to stand out in the yoga market: location. They are located in
Uptown, Minneapolis where the yoga industry is not currently saturated, and leaving little room
for competition in the area. Also, they are offering a unique set of classes to their customers to
keep themselves easily identifiable with other yoga studios in the Twin Cities. OMFS is looking
to create a distinctive studio with location, class offerings, as well as hours. They are seeking to
connect with the service industry at a later time in hopes to offer classes to those working night
shifts and have a harder time using day time studios.
OMFS should find a balance between creating a high end studio in Uptown, but make
sure they are offering a price in comparison to other yoga studios in the area. Open Mind Fusion
Studios should have set prices for time slots, which will change throughout the day, but remain
the same each day. They will charge the teacher to rent the space at these differentiated rates
throughout the day, and request a portion for rental of the space. Customers should have the
option to purchase packages which can then be prorated a slightly higher rate with the option to
use them whenever they would like. Their overall price range to stay competitive with yoga
studios in the area is between $25 - $35 for a single session. They should also offer class pack
options to purchase 5-20 classes for $100-$350. OMFS could also offer unlimited monthly
memberships for approximately $200 a month.
Recommendations:
YouTube
YouTube is a website most people are familiar with by now. It is a video sharing website
used for video clips, music videos and even blogging in the form of a video called vlogging.
YouTube is free and does not require users watching videos to register, unless the content is for
ages 18+. An account would be needed to upload videos, which would be listed on the profile
you have made. YouTube is common for music videos, but has become popular as a way for
businesses to connect with their customers as well. When pictures dont get your point across,
YouTube is the next best thing. Perhaps the biggest highlight of YouTube for businesses is that
the service is free, which means free advertising. YouTube videos are a cheap, fun, and effective
way to market your business -- they offer you a lot of potential bang for your (pretty small)
buck, says Michael Miller, the author of YouTube for Business.

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Because Open Minds Fusion Studios is so new, it can benefit from all the free advertising
available. The internet has made it easier than ever before to get your name out, without paying a
penny. Although this would require the cost of a camera, time to film, perform and upload, but it
doesnt even compare in costs of creating a commercial. Of the three competitors listed above,
CorePower is the only yoga studio that posts onto YouTube, and gets a relatively good amount of
views. This may be because they are such a large chain and can take the time at one yoga studio
to represent them all, or because other yoga studios arent taking advantage of the opportunity on
YouTube.
With unique types of yoga that is not as easy to explain it as it is to perform it, YouTube
can connect with potential customers easier. When someone hears aerial yoga, it is probably
assumed this means off the ground. A consumer may be able to make that assumption, but a
video can show them exactly what aerial yoga entails. Miller specifies three main goals of your
video to include: inform, educate, and entertain. First, you must inform the viewer about Open
Mind Fusion Studios, as well as inform them of the overall yoga industry. Next, you want to
provide more of a how to portion to educate the viewer. Lastly, you want your video to be
entertaining enough to grab the viewers attention in a short amount of time, while also building
a relationship with your target customers.
Once you have uploaded a video to YouTube, the work doesnt stop there. Now that you
have a completed video, its important to promote that video any way possible. Promoting your
video could include linking it to other social media, putting it on your website, or even including
it in a monthly email newsletter. Next, using the correct tagging, titling, and description for the
video can create great search engine optimization (SEO). SEO is the use of getting traffic to your
website or other online content through search results on search engines such as Google, all for
free.
Groupon
Groupon is a website dedicated to helping local businesses boost their sales by offering
deals for a limited time. Although it was made with small businesses in mind, Groupon services
large businesses too, and finds the same success. Groupon has managed to stay entertaining and
relevant by not only providing a place for exceptional deals, but by running campaigns to
advertise for the company. One particular campaign was very popular, where a man lived off of
Groupons for an entire year. They even introduced helping nonprofits through the website by
offering deals to donate to a cause for a certain amount of money, but not receive anything in
return. It really doesnt matter who or why you want to advertise on Groupon, there is always a
customer looking for your service, or a customer who can be easily convinced by seeing a great
deal.
Since OMFS is a new business, it would be a great opportunity to take the chance on
attracting new customers and by giving them a good price could seal the deal. Groupon is a
popular place for local hair and nail salons, massage, sports classes etc. Sometimes, certain
stylists or instructors opt to provide a Groupon for just their service alone, rather than being able
to use it with any stylist or instructor. Once a customer has purchased and used a Groupon, they
are able to leave a review on the website for future customers to read. This provides for a great

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opportunity to have new customers as well as building a reputation for Open Minds Fusion
Studios.
The makers of Groupon took notice in 2012 that over a third of their customers were
using mobile phones to make a purchase. These stats prompted Groupon to create a better and
more user friendly app for customers to search and purchase from. Fast-forward to 2015 where
everyone everywhere most likely has their smartphone glued to their hand, or at least within 3
feet of them, a smartphone app is crucial for purchases. Not only does having the ability to
purchase a Groupon through your phone make for a quick transaction, but Groupon has the
opportunity to grab the attention of convenience shoppers as well.
Once the customer has made their purchase and scheduled a time to use it, comes perhaps
the biggest event in offering a Groupon for businesses: creating a repeat customer. Now that a
customer has trusted and invested in your service, its time to convince them they should come
back and experience your services again at the regular price. When this new customer comes in
with a Groupon, the chances of them returning is very neutral. There is most likely another
special always running somewhere, but most people dont want to bounce around locations just
for a good deal. So, this is the time to win over the Groupon customer with excellent customer
service.
Freebie and Discount Promotions
Much like using Groupon to appeal customers into a product or service, offering freebies
or other promotions is a great way to connect to new customers too. Although it may seem
counterproductive to give away discounts, people just cant resist receiving something for free or
at a discount. Using the word free is still one of the most powerful words in the marketing
world and has the ability to catch the consumers attention almost immediately.
Running freebies and special discounts would not work to run them all the time. This
business strategy is meant to be a short term and occasional tactic to increase sales, doing more
good than harm. For these discounts to work, they need to have proper exposure. Because OMFS
is such a new business, the lowest costing advertising is best. Therefore, promoting these deals
and freebies is best on social media sites, or even email. Flyers can also be affective to hang on a
community bulletin board within the studio or around the area. Freebies dont always have to be
for new customers, they can also be presented to returning customers as well. Offering discounts
to returning customers could develop into a rewards or loyalty program which can keep
customers coming back and feel like they are valued.
By offering discounts such as these, it can increase traffic into the studio. It is important
to put when such offers will be available to create the idea that if they are not used soon, they are
no longer available. This will drive customers to act more quickly so they can use the discount.
Once a freebie has been offered, a customer will come in to take advantage of the offer and in
turn increase sales. Since this is a yoga studio, with numerous different types of yoga, there is a
large chance that customers will use the discount for one class, but be attracted to another type of
class, creating a sale beyond the freebie.

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The only downfall of using freebies, is that if the deal seems too good to be true, a
customer will be less interested in pursuing the promotion. Giving a reason why you are offering
such a great deal is a good way to convince the customer otherwise. Anyone new to a product or
service is entitled to feel skeptical, so this is a great chance to build customer loyalty by backing
up your offer and easing the customers mind knowing they are getting not only a great deal, but
excellent service.
Conclusion
Open Minds Fusion Studio has the potential to be a breakthrough yoga studio in Uptown,
Minneapolis by offering customers unique classes with a carefree, empowering environment. It
has been a pleasure to play a part in your journey and I cannot wait to track the companys
success now and in the future.