Girls do it - so do boys - EXERCISE!
Do you spend hours and hours scrolling through your phone but often end up saying that I have do not have time to exercise?
Do you feel like you should be leading a healthy life but do not have the motivation?
Have you ever thought why you feel so demotivated to work out? Maybe, the reason could be that India as a society has never had the culture of "staying fit" or "working out" or "exercising". If a person who is in a good shape decides to sign up for a Zumba class - they will often be posed with an age-old question "kyun khatam hone ka irada hai kya?".
When they do decide to do some physical activity - they really don't know where to start from. The fear of the unknown is real.
Some stats to give you an overview of the current state of the health and fitness point of view of India (Source):
A fitness activity can be a scary experience to step into. The main reason - you have no idea what you are going to do. You wouldn't know what weight you should be picking or what you have to do with the weights or which part of the body should you be focusing on.
For the uninitiated, welcome to "Cult.fit" - a fitness revolution. It was born with the intention of "making health easy". They want to enable people to work on their physical as well as mental health. In order to offer this ease, they do two things -
Cult.fit claims to be the largest fitness chain in India with more than 1 lac monthly active users on its platform (Source). As a matter of fact, they also observed an increase in the people adapting their online platform during the pandemic. However, Naresh Krishnaswamy - the Business Head at cult.fit - says that this growth was artificial since everything was shut down. He estimates that the online user base may not go back to that level. Nonetheless, the trends do indicate that while people are using the offline facilities 3 times a week, they may resort to the online platform 2 times a week - considering they may have time or flexibility constraints at that point of time.
The company lost a major chunk of its revenue owing to the COVID-induced lockdown. However, it managed to gain back 34% of its revenue in FY22 - and it indicates that an increasing number of people are resorting to using the facilities at cult.fit.
Framework | Cult.fit |
---|---|
Tech-enabled Product | Yes, check. |
Achieved PMF | Cult.fit generated a revnue of Rs 2.16 Billion in the fiscal year. (Cult.fit: revenue 2022 | Statista) Hence, check. |
What funding stage are they at | Series F |
Repeat Usage of the Product | Monthly, 3-monthly, 6-monthly and annual subscriptions |
What is the user journey like |
|
Product ready for acquisition | Yes |
I spoke to 10 odd users in the past one week to understand what their approach is to working out and staying fit. They all had different priorities in their life with respect to their fitness. Here is a detailed document about the conversations I had with them - Cult.fit - ICP - Google Sheets.
Basis the discussion - I came up with the following ICPs:
a. Destined Exercisers: These folks have a health issue that can be addressed via regular exercise. (However, this issue is not very severe like the likes of heart disease etc. A few examples could be - PCOD, A higher haemoglobin level from the standard levels, etc). They have the ability to pay for these services; however, they are majorly lacking the guidance to exercise and is the pain point that needs addressal.
b. Passionate Fitness Enthusiast: This persona actively works out and they understand what works for their body and what doesn't. They are up to date on their nutrition needs and how their workout should work. The main pain point that they face is when they move out of their city of residence - they aren't well aware about the new facilities available around town. For the same reason, they will explore all the options available and finally settle for the one that works out the best for them.
c. Try-it-out Fitness Peeps: These people are working hard and as much as they would love it, they are not getting the chance to play hard. They want to ensure that they do something through the day that makes them break a sweat or two. However, timing is always a constraint for them because they are never really sure when is it that they would be getting free from their workplace. A close second pain point for them is the fact that since they did not have an active routine in place before - they have little to no understanding of how to navigate the fitness space.
d. Inactive Amigos: There is a certain set of people who get excited about working out - one fine day - and then they decide to purchase a subscription for a fitness routine. However, the lack of motivation in them gets the better of them and they decide to abandon the routine, altogether, despite having paid for it upfront. The Inactive Amigos are this exact persona - they lack motivation, will, time and the awareness about working out.
ICP1 | ICP2 | ICP3 | ICP 4 | |
Cohort Name | Destined Exercisers | Passionate Fitness Enthusiast | Try-it-out Fitness Peeps | Inactive Amigos |
Age | 30-35 | 25-32 | 20-30 | 18-35 |
Gender | All | All | All | All |
Marital Status | Married/Single | Single | Single | Single/Married |
City | Tier 1/Tier 2 | Tier 1/Tier 2 | Tier 1/Tier 2 | Tier 1/Tier 2 |
Employment Status | Employee | Employee | College/Employee | College/Employee |
Income Range | 20 - 35 LPA | 15-40 LPA | 0-20 LPA | 0-40 LPA |
Profession | Mid-senior professionals, senior professionals | Mid-senior professionals, senior professionals | entry level, mid-senior professionals, students | entry level, mid-senior professionals, students |
Companies | Fintech, Startups, FMCG | Fintech, Startups | FMCG, Fashion, Apparel | Student, FMCG, Fashion, Apparel, Startup, Fintech |
Brands | Rely on established and premium brands - Blissclub, Nike, Old Marigold, Levis, Skechers, Samsung | Dont have brand preferences - Nike, Zudio, Adidas, Kate Spade, UCB, HRX, Roadster | Experimental with brands - Nike, Adidas, Phool, Taavi, GoPro, Azorte | Not into brands as such |
Living With | Family/Partner | Flatmates | Flatmates | Flatmates/Family |
Frequently used Apps | Social - Instagram, Facebook, LinkedIn Shopping - Amazon, Flipkart, Nykaa, Ajio Payment - PhonePe, Gpay OTT - Amazon Prime, Netflix etc Business - Zoho, Slack | Social - Instagram, Facebook, LinkedIn Shopping - Amazon, Flipkart, Nykaa, Ajio Payment - PhonePe, GpayOTT - Amazon Prime, Netflix, Hotstar Sports streaming - Cricbuzz Travel - Skyscanner, booking.com Music - Spotify, YT Music | Social - WhatsApp, Instagram, Facebook, Shopping - Myntra, Nykaa Payment - PhonePe, Gpay OTT - Amazon Prime, Netflix, Hotstar Travel - Skyscanner, booking.com Music - Spotify, YT Music | Social - WhatsApp, Instagram, Facebook, Twitter Shopping - Myntra, Nykaa Payment - PhonePe, Gpay OTT - Amazon Prime, Netflix, Hotstar Travel - Skyscanner, booking.com Music - Spotify, YT Music Editorials - Reddit, Quora |
Preferred Content | Non fiction, Inspirational, Art, Cooking, News, Business podcasts | Nutrition, Sports event coverages, News, Mystery | Drama, Travel, Informational, Comic, Podcast | Drama, Comedy, Mystery, Thriller |
Hobbies | Cooking, taking care of kid, reading, meditation | Engaging with nature, sketching, playing sports | Cooking, listening to music, travelling, reading books | Reading, listening to podcast, understanding new concepts, hanging out with friends |
Time vs Money | Time- They can spend on fitness apps that help them save time | Money- Time spent exercising is not wasted but they need the ROI | Money and Time - They will check for offers because they are trying the fitness journey out and want guidance so that they dont waste time | Time- They can spend on fitness apps but they dont get the time to step out to workout |
Time spending habits | Most time spent on work, reading or cooking | Work, exercising, entertainment and catching up with friends | Work, travelling, exploring new places, art, chilling with friends | Work, reading, hanging out with friends, studying |
Money spending habits | Rent, food, investment and clothes | Shopping, travel, fitness and ad-free subscriptions | Gadgets, travel, food, shopping | Gadgets, food, shopping, travel, rent |
Fitness Goals | To remain healthy to keep the health issues they are facing at bay | I know what works for my body and I want to continue to do that | Be active without having to spend too much time | I want to work out but I am not motivated because of there is nobody to push me to workout and I dont have the time |
The Rationale Behind Prioritization
The following are the reasons why ICP 1 and 3 have been prioritized and why ICP 2 comes in as a close (?) second:
Metrics | ICP1 (Primary) | ICP2 (Secondary) | ICP3 (Primary) | ICP 4 |
Persona | Destined Exercisers | Passionate Fitness Enthusiast | Try-it-out Fitness Peeps | Inactive Amigos |
Ease of Adoption - Need- Awareness - Willingness to try | - Need: They need a fitness routine because of their health - HIGH - Awareness: They are aware of the various fitness options available - HIGH - Willingness to try: They want to try things out to figure out the best solution for them - HIGH | - Need: They don't need a fitness routine because they have other ways to engage in keeping their body active - LOW - Awareness: They are aware of the fitness options available - HIGH - Willingness to try: They can try the fitness facility if they do not have their sports or running activity grounds at their disposal - MEDIUM | - Need: They need a fitness routine because they have desk jobs and are looking to figure out ways to keep themselves active - HIGH - Awareness: They are aware of the fitness options available - HIGH - Willingness to try: They can try the fitness facility if they do not have to spend too much time to travel and they have the correct guidance available - HIGH | - Need: They dont pay much attention to fitness and are usually demotivated about working out- LOW - Awareness: They are not aware of the fitness options available - LOW - Willingness to try: They will try the facilitiy if they are motivated but they mostly would not want to keep coming - LOW |
Usage Frequency | 4-5 times a week - HIGH | Everyday - HIGH | 3-4 times a week - MEDIUM | 1 once a week or two weeks - LOW |
Potential to Pay - Appetite to Pay - Willingness to Pay | Appetite to Pay - Yes Willingness to Pay - Yes HIGH | Appetite to Pay - Yes Willingness to Pay - Yes HIGH | Appetite to Pay - Yes, with offers Willingness to Pay - Yes MEDIUM | Appetite to Pay - Maybe, with offers Willingness to Pay - NO LOW |
TAM Size | HIGH | MEDIUM | HIGH | HIGH |
Distribution Potential | HIGH | MEDIUM | HIGH | LOW |
A detailed calculation of TAM, SAM and SOM can be found here -TAM Calculation - Google Sheets and the snippets of those can be seen below:
TAM Calculation
SAM Calculation
SOM Calculation
Business Opportunity
To understand which channels are working the best for cult.fit, I conducted an analysis on Similarweb to understand the distribution channels that are working quite effectively for cult.fit and which ones can be harnessed effectively:
As we can see, "direct searches" are the top traffic source for cult.fit. "Organic Search" comes at a close number two. Also, referrals are not being utilized to their best capacity - given that 10/10 users say that its their friends who referred them to cult.fit. Also, according to a study quoted by The Indian Express - people tend to trust their friends when it comes to weight-loss over celebrity faces (https://indianexpress.com/article/lifestyle/life-style/people-trust-friends-when-it-comes-to-weight-loss/#:~:text=Advertisement-,When%20it%20comes%20to%20joining%20a%20weight%2Dloss%20programme%2C%20people,successful%20person%2C%20the%20findings%20showed). This can be extrapolated to the generic fitness programmes as well.
Channel | Cost | Flexibility | Effort | Lead Time | Scale |
---|---|---|---|---|---|
Organic/SEO | Low | Low | High | Medium | Medium |
Referral | Low | High | Medium | Medium | High |
Paid Ads | High | High | Medium | High | Medium |
Product Integrations | High | Low | Medium | Low | Low |
A step-by-step guide for cult.fit referrals:
Since our ICP is most active on WhatsApp as a channel to communicate with their friends - it makes sense to leverage it for referrals.
The referral flow is going to look like the following - however, the messaging has been changed to include the "AHA Moments" or "bragging points".
The initial message was "Click on my referral link for EXTRA Rs 500 OFF on your cultpass purchase. (link)".
This has been revised to "Hey, break free from your boring gym workouts and the hassle of missing fitness routines because of tight schedules! Purchase your 1st cultpass with Rs500 OFF now! (link)."
There is a referral tracking mechanism that has been set up by the brand and it looks like as shown below: While the referral tracking mechanism has been set up - we need to solve for what stage the referee is in. For example, if they have taken a trial class - it should clearly indicate here because it will help build trust with the existing user.
Currently, the landing page looks like the following:
The experience on the page needs to be enhanced by showing motivating quotes or a testimonial or the glimpse of a live session to make the conversion even more seamless.
The current problem with the referral design is that it expects the users to convert within 15 days. However, after having spoken to 10 users - it was found that customers take a minimum of one month's time to convert to gather information via friends or the experience via the trial. Hence, the user referral links may not work effectively.
Another problem statement is that the users can only refer a maximum of 10 users post which the referral programme stops functioning. This can be solved via a tiered referral approach:
The efforts for this channel would be focused on generating search intent and buying intent. We will have a look at search intent first and then move on to buying intent.
Since YouTube has served as a prominent channel to fetch traffic, we will be building on content buckets which we can dive into to improve the search intent for the users:
This can be achieved by Search Engine Optimization for the following keywords to obtain users with low effort and to observe a quick turnaround time for the outcome -
Search Volume | Effort to rank on first page | Time to get an outcome | Search Result to Click Rate | Average Conversion Rate | Potential Visits | Potential Monthly Sign Ups | ||
Use Case | Gym near me | 300k - 1.5m | Low | Medium | 100% | 2.40% | 300k - 1.5m | 7200 - 36000 |
Use Case | Dance classes near me | 118k - 300k | Low | Medium | 64% | 2.40% | 75520 - 192000 | 1500 - 5000 |
Use Case | Zumba Classes near me | 30.3k - 70.8k | Low | Quick | 100% | 2.40% | 30.3k - 70.8k | 720 - 1700 |
Use Case | Fitness classes near me | 851 - 1.7k | Medium | Quick | 100% | 2.40% | 851 - 1.7k | 20-40 |
Use Case | Aerobics Classes near me | 4.3k - 6.5k | Low | Quick | 100% | 2.40% | 4.3k - 6.5k | 100 - 150 |
Use Case | Dance studios near me | 4.3k - 6.5k | Low | Quick | 94% | 2.40% | 4000 - 6000 | 96 - 144 |
Brand | cult fit | 30.3k - 70.8k | Low | Quick | 17% | 2.40% | 5000 - 12000 | 120 - 300 |
Brand | Cult fit near me | 30.3k - 70.8k | Medium | Quick | 100% | 2.40% | 30.3k - 70.8k | 700 - 1700 |
Brand | cult fit packages | 871 - 1.7k | Low | Quick | 100% | 2.40% | 871 - 1.7k | 20 - 40 |
Competitor | Golds gym near me | 11.5k - 30.3k | Low | Quick | 100% | 2.40% | 11.5k - 30.3k | 270 - 700 |
Competitor | fitness first | 1.7k - 2.9k | Low | Quick | 64% | 2.40% | 1000 - 2000 | 24 - 50 |
Use case topic | Home exercises to lose weight | 2.9k - 4.3k | Difficult | Quick | 88% | 2.40% | 2500 - 4000 | 60 - 100 |
Use case topic | Full body workout at home | 1.7k - 2.9k | Difficult | High | 100% | 2.40% | 1.7k - 2.9k | 40 - 80 |
Use case topic | Workout at home | 4.3k - 6.5k | Difficult | High | 88% | 2.40% | 3700 - 5700 | 85 - 140 |
The keywords that must be focused on are highlighted in green -
These keywords are essential in bringing the consumer to the awareness and consideration funnel wherein they would be able to find out the best gyms (i.e. cult.fit) out there for them and find enough information about it to reach the consideration stage.
How did I arrive on these numbers? An external research from Moz helped me and to go through this process you can refer the link here:
https://docs.google.com/presentation/d/1tO_6HoC83IWYNBClPDJ2pzfqiuzcZJsKAerAiHYTCPw/edit?usp=sharing
(Link to the sheets - Search and Buying Intent - Google Sheets)
After having spoken to the users, it was found that all of them are active on Instagram and this channel can serve as a great space for acquisition. How?
🪝Hook: The milestones that each user has achieved.
✨Generator: Cult.fit would be the generator since they would have access to this data and they can collate it in a shareable format which leads to an increase in the number of shares by the consumer.
🗯️Distributor: The distributor will be the end user who will be able to share it on their Social Media handles (Instagram or WhatsApp). Why will they do it? Just to show that they are proud about themselves.
Another loop that cult.fit can work on is an extension of the tonality that they are trying to adapt. While the tone of voice of the fitness industry has always been motivation and inspiration heavy, they are trying to double tap on their key message "making health easy" by bringing a comical twist to it.
🪝Hook: Since cult.fit has access to the user data - they can share mind-boggling workout routines that people have. For example: a person did 3 back-to-back classes on a weekend. ✨Generator: This could be adapted in a meme format saying "bas bhai, social life hai ya nahi teri?" and be posted on Cult.fit's social media handles so that people can just have a good laugh about the fun content that they are posting.
🗯️Distributor: If people truly enjoy the content buckets, they will go on to share it on their social media handle and build their social capital around being first movers in identifying the best memes and sharing it first.
The suggested content buckets for YouTube can also be amplified on their Instagram handles so that the distribution of the content increase. Since this content will be branded with the cult.fit tonality - it will help improve the platform's awareness and will help acquire users in the awareness segment of the marketing funnel. Thereby, helping improve the overall absolute figures of the consideration and conversion segment of the funnel.
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