Please, work with a partner to analyze the following case and answer the questions.
Read the case, analyze to answer the questions, submit your responses in a written document (Word or PDF). We will explore this case further in a later assignment.
- Perform a competitor and consumer analysis. What is the company’s competitive advantage?
- What are some marketing plans that you would recommend for the company. Explain why.
MVMT STRENGTH: LIFTING PROFITS Jessica Orchin wrote this case under the supervision of Julie Gosse solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) [email protected]; www.iveypublishing.ca. Our goal is to publish materials of the highest quality; submit any errata to [email protected]. Copyright © 2023, Ivey Business School Foundation Version: 2023-05-02 It was early July 2022 when Isaac Morgado, one of the founders of MVMT Strength Inc. (Movement Strength or MVMTS), was reflecting on the last five years of the business’s operations. MVMTS had first opened in July 2017, and after successfully moving to a bigger location Morgado and his business partners wondered what the next step for the gym would be. The last two years had been particularly difficult due to the government mandates and mandatory shutdowns resulting from COVID-19. 1 With the government restrictions easing up, the gym was now able to operate at full capacity; however, MVMTS needed a new promotional strategy. The owners had set aside a marketing budget of CA$12,0002 for the next three months to advertise the business on social media and were willing to invest additional funds for a long-term marketing plan. Morgado sat down at his favourite local coffee shop to create a comprehensive marketing solution. THE CANADIAN FITNESS INDUSTRY The fitness industry in Canada was worth $4.7 billion in 2022 and, despite the challenges of the COVID-19 pandemic, the industry grew 7.1 per cent in the first half of the year and was expected to further grow at an annualized rate of 1.9 per cent over the next five years. 3 The growth in the industry was attributed to a rise in health consciousness in the population—individuals had become more aware of movement habits as a result of increased sedentary during remote work, home-schooling, and closures of fitness facilities.. 4 Digital fitness became the norm and on-demand content shifted the fitness industry to become more accessible and flexible. Canadian Fitness Professionals (canfitpro) was the largest provider of education in the Canadian fitness industry.5 It conducted studies to understand how these changes would impact fitness trends and discovered a rise in new programs designed for all generations, levelling up with skills in nutrition coaching and a move toward smart technology.6 1 Beginning in 2019, coronavirus disease (COVID-19) was an infectious respiratory illness that had spread across the world, causing a pandemic. 2 $ = CAD = Canadian dollar. All currency amounts are in Canadian dollars unless otherwise specified. “Gym, Health & Fitness Clubs in Canada—Market Size 2005–2027,” IBISWorld, accessed June 29, 2022, www.ibisworld.com/canada/market-size/gym-health-fitness-clubs/#:~:text=The%20market%20size%2C%20measured%20by, to%20increase%207.1%25%20in%202022. 4 Maureen Hagan,“What Will Fitness Look Like in 2022?,” January 10, 2022, www.canfitpro.com/blog/what-will-fitness-look-like-in-2022/. 5 “About Us,” canfitpro, accessed August 5, 2022, www.canfitpro.com/about-us/. 6 Hagan, “What Will Fitness Look Like in 2022?” 3 This document is authorized for use only by Anthony Ore in MRKT 210: Principles of Advertising and Public Relations (Winter "C" 2024) (G5) at Atlantis University, 2024. Page 2 W33361 SOCIAL MEDIA PLATFORMS Social media was a way for people to engage, share information, and express opinions on the Internet and mobile devices. In 2022, 58.4 per cent of the world’s population used social media, an increase of 424 million new users from 2021, and the average daily usage was almost two and a half hours.7 Popular social media platforms included TikTok, Instagram, Facebook, YouTube, Snapchat, and Twitter. An estimated 22 per cent of Canadian adults used TikTok and 51 per cent used Instagram, while users under the age of eighteen represented 55 per cent of TikTok and 41 per cent of Instagram users. 8 Younger users engaged on social media platforms at least once a day, and the most frequented site for the age group under eighteen was TikTok.9 In Canada, Facebook was the most used social media platform with 76.9 per cent of Internet users on the site.10 COMPANY HISTORY Isaac Morgado Isaac Morgado first moved to London, Ontario, in 2012 from Thunder Bay. He worked for Apple as a business manager where he hired, coached, and developed the business team. Generating leads and building relationships with customers was a key component of his work and he gained valuable business experience. Morgado was passionate about fitness and began learning Olympic weightlifting at Hybrid Fitness, a fitness centre in London; eventually he became a coach of the sport. During this time, he became increasingly involved in London’sfitness community and was highly regarded for his coaching abilities, specifically around weightlifting. MVMT Strength In 2017, Isaac Morgado, William Hogendoorn, and Luke Amaral founded MVMT Strength after having worked as coaches at another local gym. They invested personal funds and secured bank loans to start the business. All three owners were passionate about fitness and saw an opportunity to open a new kind of gym that provided a more personalized fitness program where members were educated on the importance of nutrition and other lifestyle choices made outside of the gym. MVMTS's mission was “Creating a community that is held together by unbreakable bonds; a coaching standard that drives performance, movement, and lifestyle to a new level; and a place where your best interests are always a priority.” MVMTS’s coaches were committed to providing a high-quality experience for all their members by creating an inclusive and encouraging culture at the gym. All members received holiday cards from the team and instant pictures of members were posted at the entrance of the gym to help them get to know one another. The efforts put into building an inclusive community resulted in the gym benefiting from many referrals from the members. MVMTS’s goal was to create a brand that was the most well-regarded fitness facility in Southwestern Ontario. 7 Dave Chaffey, “Global Social Media Statistics Research Summary 2022,” Smart Insights, June 1, 2022, www.smartinsights.com/social-media-marketing/social-media-strategy/new-global-social-media-research/. 8 Patti Summerfield, “TikTok Is the Most Popular Social App with Canada’s Youth,” Media in Canada, August 13, 2021, https://mediaincanada.com/2021/08/13/tiktok-is-the-most-popular-social-app-with-canadasyouth/#:~:text=Instagram%20is%20the%20closest%20to,41%25). 9 Summerfield, “TikTok Is the Most Popular Social App with Canada’s Youth.” 10 “Canada Social Media Statistics 2022—Internet and Mobile Statistics,” The Global Statistics, accessed July 10, 2022, www.theglobalstatistics.com/canada-social-media-statistics/. This document is authorized for use only by Anthony Ore in MRKT 210: Principles of Advertising and Public Relations (Winter "C" 2024) (G5) at Atlantis University, 2024. Page 3 W33361 The Gym MVMTS was located in downtown London, Ontario, on Saint George Street. The gym occupied two floors with a total area of 5,550 square feet, which included a welcome area, change rooms, washroom, office space, a client meeting room, and two separate gyms with state-of-the-art equipment. The original gym had been located nearby and had limited space. When the building on Saint George Street became available, the owners knew they needed to take the opportunity to upgrade their location and expand operations. MVMTS had become a profitable business with strong potential for growth in 2019. Just as the new space became ready for use after a year of renovations, the COVID-19 pandemic halted operations. The gym relied on government subsidies to operate during this time. This was a major setback, but Morgado and the team adapted quickly by pivoting to online programs. Despite their best efforts, the gym suffered significant financial difficulties during the pandemic; therefore it was crucial to boost sales in the upcoming year to make up for losses. The gym employed ten coaches who worked with individual clients and conducted group classes. MVMTS took a personalized approach to fitness and coaching. All coaches had extensive fitness backgrounds and went through a rigorous training program. During their training they shadowed other coaches, assisted in writing workout plans, participated in one-on-one client meetings, and attended team meetings. After the training period concluded, they taught alongside another coach and eventually began teaching classes and working with clients independently. The Products MVMTS offered different programs for clients based on their individual needs. The gym had two different group fitness classes (of sixty and forty-five minutes) and a mobility class.11 The sixty-minute class focused on strength training and the forty-five-minute class on aerobic capacity training.12 The remaining operational hours were for open gym, where members could use the facilities freely and a coach was available to answer questions. The gym was restricted to people aged eighteen years and above. There were two options for those looking to join the gym. The first was an individual design package that catered to clients who were looking to learn more about the gym and would work with a coach who designed a program to help them reach their specific goals. The individual design clients also had unlimited access to the group classes. The second option was to become a general member. It was best suited for individuals who had significant experience with weightlifting and aerobic capacity training. A general membership provided access to three group classes per week and unlimited open gym access. Most clients benefited from the customization and accountability that came with working alongside a coach in the individual design package. Clients who had been members of the gym for a long time sometimes shifted to a general membership, and some members who had moved away from London still worked with their MVMTS coaches remotely. As the pandemic necessitated a switch toward remote training, MVMTS developed robust virtual programs to cater to the needs of their members. However, Morgado believed that the most important aspect of MVMTS’s success was the community that the gym fostered for its members. 11 The mobility class was designed to help clients avoid injury. It combined exercises that increased the range of movements and motions the body can perform, including flexibility, balance, and strength. 12 Aerobic capacity training refers to the maximum amount of oxygen your body can use during an intense exercise. This document is authorized for use only by Anthony Ore in MRKT 210: Principles of Advertising and Public Relations (Winter "C" 2024) (G5) at Atlantis University, 2024. Page 4 W33361 CLIENT GROUPS Working Professionals Working professionals made up a significant portion of MVMTS’s clients and ranged from young adults to older individuals who were close to retirement. Unlike students, working professionals had disposable income, and were more likely to work with an accountability coach as an individual design client. They were influenced by friends and advertisements and looked for a community where they could meet new people and be motivated. This was a diverse and large group, and Morgado wondered if he could narrow down the target market to one that aligned the most with MVMTS’s strengths. New Families Individual design programs were targeted toward busy parents who had a difficult time prioritizing their health and fitness while raising a family. All three MVMTS founders were parents of young children and they saw an opportunity to help people struggling to find this balance. This target market was between the ages of thirty and forty-five. Often, both parents would become members of MVMTS and select a coach who was aligned with their individual needs or shared experiences. Coaches provided support during oneon-one meetings or through online communication, and parents benefited from having someone to talk to about their specific challenges. Students London, Ontario, was home to Fanshawe College (Fanshawe) and Western University (Western) and its affiliate colleges. The Fanshawe and Western student population was over 79,000.13 Students were MVMTS’s final consumer segment, ranging in age from eighteen to thirty. They learned about MVMTS primarily through word of mouth and social media. These individuals often had had an active lifestyle in high school but struggled to maintain it at the post-secondary level due to academic and extracurricular workloads. Student clients often remarked that regular exercise improved their mental health and they benefited from a regimented fitness plan. Working with a coach provided accountability that supported students who struggled to prioritize health and fitness. This segment had relatively less disposable income to invest in fitness classes due to tuition and living costs. Moreover, since college and university campuses had fitness facilities for students, MVMTS’s student clients were typically upper-year students who did not live in residences on-campus. DIRECT COMPETITORS Hybrid Fitness Hybrid Fitness (Hybrid) opened in 2013 and was a private club that offered various in-person and virtual wellness services that ranged from group fitness classes to personal training and online coaching. Hybrid had an 18,000-square-foot facility with modern training equipment and amenities. The club offered more classes per day than any other facility in London, including CrossFit, gymnastics, strength and conditioning, spin, yoga, and high-intensity interval training (HIIT).14 13 “About London, Canada,” Fanshawe College, accessed July 26, 2022, www.fanshawec.ca/international/studentservices/about-london-canada; “Facts & Figures 2021–2022,” Western University Canada, accessed January 31, 2023, www.uwo.ca/about/whoweare/facts.html. 14 “Our Facility,” Hybrid Fitness, accessed July 3 2022, https://hybridfitness.ca/our-facility/. This document is authorized for use only by Anthony Ore in MRKT 210: Principles of Advertising and Public Relations (Winter "C" 2024) (G5) at Atlantis University, 2024. Page 5 W33361 Accessto Hybrid’s virtual gym wasfree for all members and consisted of over a thousand workouts that could be done remotely at home. The gym guaranteed results from personal training, offered core classes designed to meet the needs of all ability levels, and promoted the motto “Get Fit. Make Friends. Have Fun.”15 Hybrid had almost three thousand followers on Instagram and six thousand likes on Facebook. The club did not list prices on its website but had a Google form where people could submit their information and then would be contacted about promotions and pricing. Individuals could book classes using the Mindbody app that could be downloaded to smartphones. Combine Fitness Combine Fitness (Combine) was located away from downtown in southwest London in an 8,200-squarefoot space equipped with an indoor track and turf, a large group training area, and a state-of-the-art cardio and weight training area. 16 The facility hosted group training classes, personal training, athletic team training, and open gym sessions. On the company website, Combine promoted the mission of making fitness accessible to everyone, everywhere, regardless of age or fitness level.17 Combine’s coaches came from a variety of fitness backgrounds and taught classes and worked with personal training clients. Combine’s motto was Building an Athlete, and its programs were designed to train members across all domains. Combine offered a two-week free trial period. The initial assessment and plan design was $144.99, and drop-in classes were $21.99 each. Combine had a smartphone app that allowed people to book sessions and purchase memberships and individual class passes. The app also gave members access to Combine on Demand. Combine on Demand was a virtual training program that gave members access to strength, HIIT, cardio, and mobility training on the mobile app or desktop browser. All virtual classes were trainer-led, prerecorded classes and cost $9.99 per month.18 Goodlife Fitness Goodlife Fitness (Goodlife) was a Canadian fitness club with over two hundred locations. Its clubs offered the largest range of group fitness classes in the country and had extensive amenities in many locations.19 The Goodlife fitness club reached one million members in 2014 and founder David Patchchell-Evans was inducted into the Canadian Business Hall of Fame in 2020. 20 Goodlife had three different types of memberships: Essential-Plus, Ultimate, and Performance, which all had a $99.99 joining fee. Essential-Plus allowed members to choose a home gym and use limited amenities, programs, and fitness classes, as well as twelve visits to any club, and cost $29.99 bi-weekly. Ultimate membership included access to all Goodlife gyms, all amenities, select programs, fitness classes, and family add-ons for $36.99 bi-weekly. The Performance Membership cost $54.99 bi-weekly and included access to all Goodlife gyms, all amenities, and all programs and classes.21 Basic members had a minimum term of agreement when joining the fitness club and incurred a buyout fee if they cancelled the membership during this time. 15 “Programs,” Hybrid Fitness, accessed July 3, 2022, https://hybridfitness.ca/programs/. 16 “Home Page,” Combine Fitness, accessed July 3, 2022, https://combinefitness.ca/. 17 Combine Fitness, “Home Page.” 18 “Combine Online,” Combine Fitness, accessed July 3, 2022, https://combinefitness.ca/combine-online/. 19 “Fitness Classes,” Goodlife Fitness, accessed July 3, 2022, www.goodlifefitness.com/classes.html. 20 “About Us,” Goodlife Fitness, accessed July 10, 2022, www.goodlifefitness.com/about-us.html. 21 “Membership,” Goodlife Fitness, accessed July 10, 2022, www.goodlifefitness.com/membership.html. This document is authorized for use only by Anthony Ore in MRKT 210: Principles of Advertising and Public Relations (Winter "C" 2024) (G5) at Atlantis University, 2024. Page 6 W33361 Goodlife also had an On-Demand Plus subscription that cost $6.99 bi-weekly and gave users access to remote programs and workouts. The virtual gym had a variety of classes designed to meet the needs of all fitness levels and was even organized based on “matching your mood.”22 Access to the site was based on the user’s regular membership. Basic plans included sixty virtual classes, fifteen workouts, and four fitness plans. On-Demand Plus memberships had over 550 virtual classes, 150 workouts, and fifty fitness plans. Goodlife also had a mobile app where users could book workouts and view On-Demand workouts.23 ALTERNATIVES Products The Six-Week Challenge The coaches at MVMTS believed that clients were most receptive to fitness and nutrition programming in the first six weeks after they joined the gym. During this time, clients had an effective window to set and achieve a specific goal. Morgado believed that if he could get people to sign up for the Six-Week Challenge, it was more likely that they would sign up to be long-term members. The sales cycle for the Six-Week Challenge began with an advertisement on Facebook. Individuals were targeted with a seasonal advertisement that encouraged them to start a new challenge at MVMTS. The advertisement took potential customers to a well-designed website where they could book a meeting with Morgado or one of the other owners. The Six-Week Challenge was sold for $799 and this value could be credited to an annual membership. At the end of the six weeks, clients were asked if they wanted to continue with a coach (as an individual design client) or independently with access to three classes per week (general membership). During the first meeting with their coach, clients discussed habits and goals, completed an InBody scan, took progress pictures, and received information about vitamins and nutritional supplements.24 The average customer acquisition cost (CAC) was $200 and the lifetime value (LTV) of customers was $2,000. MVMTS had been promoting the six-week challenge for the last two years using different themes. With September coming, Morgado was considering a back-to-school challenge promotion. He wondered how he could differentiate from the competition, and which target market to pursue. The back-to-school period was busy for parents and MVMTS had not yet taken a family-focused approach to the fall. Massage Therapy MVMTS had always focused on holistic health. The mobility class was an important step in its long-term goal to help clients achieve peak performance in and out of the gym. The gym was located next to Modern Health Performance (MHP), a clinic that offered chiropractic, physiotherapy, registered massage therapy, and pedorthics. 25 Morgado thought there was an opportunity to either work with MHP or hire an in-house registered massage therapist (RMT) to provide services for MVMTS. This product expansion would align with the owners’ long-term goal of being a full-service fitness facility. 22 “On-Demand,” Goodlife Fitness, accessed July 10, 2022, www.goodlifefitness.com/on-demand.html. 23 Goodlife Fitness, “On-Demand.” 24 InBody was a biomedical machine that provided insights about body composition such as skeletal, muscle, fat, bone, and water percentage and density. 25 Pedorthics was the management and treatment of conditions of the foot and ankle, and used footwear and accessories to help ease and treat foot-related problems. This document is authorized for use only by Anthony Ore in MRKT 210: Principles of Advertising and Public Relations (Winter "C" 2024) (G5) at Atlantis University, 2024. Page 7 W33361 RMT services were often partially or fully covered by benefits for full-time employees or individuals who paid for extended health insurance. University students often had limited benefits included in their plans. Western had the Fowler Kennedy Clinic on campus that offered RMT services specializing in sports injuries.26 Fanshawe had the Mend Student Massage Clinic where students in the RMT program practiced patient care at a highly discounted price for faculty, students, and alumni.27 MVMTS could designate some of its upstairs office space to be an on-site clinic. The process of hiring an RMT and purchasing equipment would cost $5,500. Morgado believed that this alternative would result in new clients and improve client retention. He wondered how many new clients he would need to acquire to make this a viable alternative. MVMTS Endure During the government-mandated shutdown, MVMTS began livestreaming classes on Facebook and posted videos of workouts on YouTube. This content was free to anyone with access to these sites and Morgado was considering how to monetize the company’s digital content. A paid online membership would give clients access to workout, mobility, and stretching videos along with resources about nutrition and goal setting. Morgado was wary that this offering could cannibalize their existing product offerings. However, MVMTS had a large American following on TikTok, and he wondered if targeting this market could be an effective way to begin charging for this content. Using his background in computer technology, Morgado designed and built an app for MVMTS called Endure. If MVMTS made this product available online, it would cost users $49 per month or $350 for an annual membership, and cost $100 per month to run. Morgado anticipated gaining ten members in the first month of launching the app and expected to double the number of Endure members each month for the first six months. Price The Six-Week Challenge would cost $799. If clients decided to purchase a twelve-month membership following the challenge, the full $799 would be credited to their account. The membership price was $69.99 per week for general membership and $99.99 per week with an accountability/nutrition coach. MVMTS was known as a premium fitness facility and Morgado considered altering prices in the upcoming year. To maintain a tight-knit community, Morgado believed that the number of members at the gym should not exceed 220. Currently, the gym had 160 members, of whom 70 per cent were general members and about 25 per cent were individual design members. Leveraging their strong reputation in the fitness community, the owners had recently decided to coach clients at a premium price ranging from $2,000 to $3,500 for twelve weeks. This level of coaching included semiprivate sessions that accounted for the remaining 5 per cent of members and was usually only offered to existing clients. Morgado was hesitant to promote this premium coaching alternative because of the time constraints it placed on the three owners. He wondered if there were other approaches that could make this a more viable alternative. 26 “Registered Massage Therapy,” Fowler Kennedy, accessed August 4, 2022, www.fowlerkennedy.com/services/registeredmassage-therapy/. 27 “Mend Student Massage Clinic,” Mend Student Massage Clinic, accessed August 4, 2022, www.fanshawec.ca/mend. This document is authorized for use only by Anthony Ore in MRKT 210: Principles of Advertising and Public Relations (Winter "C" 2024) (G5) at Atlantis University, 2024. Page 8 W33361 Promotion Facebook Advertisements When the business first began, Morgado connected to the gym community through a Facebook page. The platform also provided marketing opportunities and MVMTS began paying for advertisements. Facebook ads had primarily been for the Six-Week Challenge. MVMTS spending varied month to month based on sales cycles (see Exhibit 1). MVMTS had an average cost per lead of just under $11 and Morgado intended to apply a sales strategy known as client finance acquisition, which focused on ensuring that the first sale to a client generated more money than it cost to acquire the customer. The gym could continue to allocate a monthly budget for advertising on Facebook but needed to determine what type of advertisements to promote and a target market to align the campaign with. With the fall season coming up, he wondered what advertising theme would be most effective. TikTok Content TikTok was a short-form, video-sharing app that allowed users to create and share videos on any topic. The social media platform was known for generating high levels of engagement and had over 2.5 billion downloads worldwide. TikTok was primarily popular among younger demographics, with 41 per cent of users aged between sixteen and twenty-four, and 66 per cent of all users aged under thirty. 28 TikTok began selling advertising in 2019 and offered three main types: in-feed native ads, brand takeover ads, and hashtag challenges. Native ads worked similarly to how they functioned on Facebook and Instagram where businesses bid for spots on users' feeds, using cost per mile (also called cost per thousand views) or cost per click. Brand takeovers targeted TikTok users who would only see one branded advertisement per day; it was recommended that these ads directed users to a high-quality landing page. Hashtag challenges were a way to officially encourage engagement with a company; however, these challenges were not accessible to small businesses and started at a US$150,000 flat fee for the first six days of a challenge.29 MVMTS started a TikTok account in 2021. In 2022 it had almost fifty-five thousand followers and the views on videos ranged from two thousand to five hundred thousand. The account regularly featured MVMTS coaches discussing common misconceptions about health and fitness, and offered tips for better workouts and nutrition. Morgado was considering compensating one of his employees to post videos on the platform on a monthly basis. He was managing the account himself, but felt his time was more effectively spent in other areas of the business. He would pay an employee $70 per week to post seven TikToks weekly. Alternatively, he could continue to manage the account himself and pay to promote the content using one of TikTok’s advertisement options. Instagram Advertisements Instagram was a social media platform where individuals, businesses, and organizations shared videos and pictures. In 2021, it had 1.21 billion monthly users, making up over 28 per cent of the world’s Internet 28 Werner Geyser, “How Much Do TikTok Ads Cost?,” September 2, 2021, https://influencermarketinghub.com/how-much-dotiktok-ads-cost. 29 Geyser, ”How Much Do TikTok Ads Cost?.” This document is authorized for use only by Anthony Ore in MRKT 210: Principles of Advertising and Public Relations (Winter "C" 2024) (G5) at Atlantis University, 2024. Page 9 W33361 users. It was expected that by 2025 there would be 1.44 billion monthly Instagram users, which would account for 31.2 per cent of global Internet users. 30 In August 2020, Instagram launched Reels, a product that directly competed with TikTok. Reels allowed users to create short videos with audio backing. The director of product management at Instagram, Tessa Lyons, said that Reels would complement the app’s other video features—Stories, Live, and IGTV—for longer-form content.31 These short video clips could include informational text and many brands began creating advertisements using Reels. One of the coaches at MVMTS was an Instagram Influencer and helped develop content for the gym that she promoted to her followers.32 This coach had almost seventy thousand followers and shared information about nutrition, fitness, and lifestyle on her account. She began creating reels for MVMTS’s five thousand followers. However, this coach was planning to move to Bali, Indonesia, so the gym would need to hire a new content creator. Morgado was planning on paying one of his coaches $60 a week to undertake this additional responsibility. On average, Instagram advertisements cost $0.80 per click, and their success was largely dependent on selecting an effective target market.33 Businesses would compete by bidding for advertising reach, and Instagram’s precise targeting allowed them to specify the location, demographics, interests, and habits of users. Based on his experience with Instagram advertising in the past, Morgado estimated a customer conversion rate of 1 per cent. If this alternative was selected, MVMTS would spend $50 per week on Instagram advertisements, which would direct users to an information form where they could book an initial consultation. CONCLUSION Morgado knew that many decisions needed to be made for MVMTS. It was the end of the fiscal quarter; the budget for the next twelve weeks of advertising on social media channels was $12,000, and he had a goal of adding fifty new members. He knew the status quo was not enough to increase MVMTS’s sales, loyal client base, and brand recognition. Whatever decisions Morgado made had to fit well with the company’s target market for the marketing plan to be effective. 30S. Dixon, “Instagram: Number of Global Users 2020–2025,” May 2022, www.statista.com/statistics/183585/instagramnumber-of-global-users/. 31 Todd Spangler, “I