Acquisition project | Fitify

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Acquisition project | Fitify

What does the product do?

Provides access to generic and customized fitness plans based on client goals, lifestyle and available equipment.

Who is the target audience?

Tech-savvy, fitness-focused individuals who need the convenience of working out either from home or independent of available facilities and equipment.

What problem does it solve?

Time constraint for workouts
Lack of gym access
Large library of workouts for various goals
Need for personalized fitness plans
Convenience
Cost effectiveness vs quality personal trainer

Elevator Pitch

Fitify is your ever-handy fitness coach perfect for busy but health-conscious individuals. It helps people achieve their goals at the comfort of their home with its personalized plans and routines dynamically curated from a vast library of workouts and client preferences.

The Product

Availability

The product is only available on Android and iOS. Webpage is used mainly for marketing and purchasing the paid plans.

Organic Reach

Product's organic reach seems limited and lacking, with only one organic post found in India. Most organic content is around achievements unlocked or workout/challenges completed in the app. It provides limited ability to the user to embed their own image or workout details in the achievement - where some users have gone through the pains to add their photo separately.

Inorganic Reach

The company has 210 active ads on Meta, advertisements on 400 ads on Google (however Fitness Trade s.r.o. is also using the keyword to run its ads on Youtube).

35 Google ads are targeted for India, with no ads in Meta targeting India (several of these ads are not in Indian languages).

User Feedback

Interviews

Users interviewed were all converted from app-store or play-store. They had searched for fitness apps and selected Fitify based on user reviews and feedback available on the stores.

They were generally happy about the product's offering of 10mins workouts. 50% had used the pro (paid) version and were following routines prescribed by the app. All of them were satisfied with the current UX, with 1 wanting more workouts to be included.

Online Reviews

In Google Play, the product is rated 4.8 in 2.2 lakh reviews. Most users were however appreciative of limited ads and a clean UI. Paid version users were appreciative of the additional benefits - goal oriented plans delivering results, reminders of workouts, capability to customize and unlocking all types of workouts. Several users highlighted their muscle-gains/weight-loss from the app.

Some users were unhappy with limited number of exercises being recommended repeatedly, unwanted or downvoted exercises appearing in plans, skipping songs requiring one to go to Spotify/Apple music thereby pausing the workout and the fact that it can only be integrated with Google-Fit. Users also demanded a voice-over for each exercise.

Most of the 1-star reviews were around the payment requirement for pro-version.

Reviews on Reddit and other platforms (Facebook) people like the convenience, customizability and ability to add equipment (kettlebells were most popular)

Core Value Proposition

Based on opinion of customers interviewed and the reviews on PlayStore, Fitify is a popular and easy-to-use virtual coach providing its clients versatile and goal-oriented workouts to achieve their dream physique.

Popular - 1Cr+ downloads and 2.2 lakh reviews

Easy-to-use - Most clients loved the simple and clean UI

Versatile - Many clients appreciated the variety of workouts at their disposal

Goal-oriented - A key feature of "Pro" version is having access to specific workouts in-line with client's fitness goals

Ideal Customer Profile (India)

ICP Name	Amar	Pallavi

Age	25-40	30-50
Gender	Male	Female
Location	Tier 1	Tier 1
Companies	Technology companies	Remote-worker/House-wife
Marital Status	Unmarried	Married
Where do they most spend time	Work, commute/travel	Home and with kids
What are the other apps they use	Google-fit (or) Apple Fitness+, Uber/Ola, Swiggy/Zomato, Notion/Evernote, Spotify	Swiggy/Zomato, Uber/Ola, Paytm/GPay, BigBasket, Instagram
Income levels	15-30 LPA	10-25 LPA
Goals/Need	Ability to do a variety of quick and impactful workouts without accessing the gym.	Staying fit despite a mostly sedentary lifestyle using limited space/equipment.
Pain points	Limited time, Need for variety, Own pace/schedule	Need for motivation, limited time and space, need for guidance
Previous Solution(s)	Nike Training Club, Home Workout - No equipment	Weight Loss for Women: Workout
Reason for switch to Fitify	Impersonal training experience, several workouts were white-board (with need to lookup videos seperately)	Limited workouts, no possibility of choosing difficulty or customization, impersonal UI.
Value experience from Fitify	Convenient workouts on the fly + Ability to adjust time-commitment/equipment use	Access to wide-variety of home workouts + clean UI
Average spend on Fitify	Rs. 2000/month (1-2% of monthly salary)	Rs. 2000/month (2-3% of monthly salary)
Frequency of use (Fitify)	2-3 times/week	2-3 time/week
Other

The Market

Direct Competitors

	Playstore downloads	Playstore rating/# of reviews	Review/Download %age	Core Problem solved	Key features/Services	Customer profiles	Pricing model/Price-point	UX Evaluation	Fitify Right-to-Win	Threat to Fitify
Nike Training Club: Fitness	10M+	4.1/359k	3.6%	Access to home workouts and programmes across strength, yoga, movements/flexibility, HIIT and Pilates	615 Workouts, 37 curated programmes, access to wellness advise	Tech savvy fitness enthusiasts (Oriented mainly towards women)	Free	Laggy UX + Mostly classroom/pre-recorded videos and whiteboard workouts + difficult to integrate with other music apps.	Clean and light UX, trainer working out in video, ability to integrate with Spotify/Apply Music.	Lack of enough free plans/programmes No voice-over for guiding customers.
Leap Fitness: Home Workout - no equipment	100M+	4.8/3M	3.0%	Access to workouts without need to invest in equipment, bringing convenience and effectiveness across fitness levels.	Beginner friendly, Equipment free workouts, targeted and personalized routines and progress tracking	Customers who need convenience, affordability and work within time-constraints. They typically do not have access to any gym facilities.	Rs. 850/month Rs. 3350-10200/yr (based on ongoing discounts	Several options to navigate. Has a chunky feel and can potentially be overwhelming. However, easy to select difficulty level and navigate to exercises. Workouts are animated vs as a person performing it, and the transitions are very noisy.	Availability of AI in the App, Use of people to showcase workouts. Seamless and clear transition between each workout. Very clean look for UX.	Sheer amount of options available to free users. Ability of free users to use premium workout post watching an advertisement.
Muscle Monster Workout Planner	1M+	4.6/35k	3.5%	Focused heavily on strength and muscle building for individuals (including gym-goers) to transform their appearance.	Ability to design home/gym workout based on target body part.	Strength and muscle building enthusiasts who may or may not have access to gym or equipment	Rs. 1250/month Rs. 1950/3 months Rs. 999-2952-3948/yr (based on ongoing discount)	Keeps offering you further discounts as soon as you try to keep stepping back. No free workouts available at all. Onboarding is very very similar to Leap Fitness (potentially copied). Workout methods are animated and not exciting.	Access to limited free workouts to get a taste of Pro. Clean UX, music integration and personal touch of trainers working out with customers.	Editor's choice for Playstore; currently grosses more than Fitify. Steep discount for first-time users.
(For comparison) Fitify	10M+	4.8/220k	2.2%	Virtual coach providing its clients versatile and goal-oriented workouts to achieve their dream physique	Access to ~1000 exercises with and without equipment. Generate customized training plans based on needs (time, goals, equipment) Ability to add/remove equipment	Tech savvy fitness enthusiasts working for technology companies or are remote workers.	Rs. 1950/month Rs. 3499-6999/yr	Clean UX with limited distractions. Very easy to navigate, customize workouts, add/remove equipment. Good color themes	-	-

Market Size (India-2024)

Key source: https://www.statista.com/outlook/hmo/digital-health/digital-fitness-well-being/health-wellness-coaching/fitness-apps/india

Total Addressable Market:

Total number of potential users x average revenue per user = 2Cr users x Rs. 1000/user/yr = Rs. 2,000 Cr/yr

Bear in mind, this market is expected to grow with increased penetration of mobile apps.

Serviceable Available Market:

Strava and Fitbit together dominate the Fitness apps market with 33% and 16% market share respectively. It is assumed that 30% space is available in the market for Workout apps.

This leads to a SAM of 30% x Rs. 2000 Cr/yr = Rs. 600 Cr/yr

Serviceable Obtainable Market:

Due to the crowded conditions of the market, the realistric market-share of Fitify will be around 10% at this stage. This will leads to a SOM of Rs. 60Cr/yr,

Product's Core Value Proposition

Popular - 1Cr+ downloads and 2.2 lakh reviews

Easy-to-use - Most clients loved the simple and clean UI

Versatile - Many clients appreciated the variety of workouts at their disposal

Goal-oriented - A key feature of "Pro" version is having access to specific workouts in-line with client's fitness goals

Market Potential

India's current population is around 145Cr of which 50% is expected to be online. This results in 73Cr people. Of these 11% would earn more than Rs. 50,000 per month, resulting in about 8 Cr users. Of the 8 Cr users, 36% are expected to be in urban areas, thereby making the market at 2.9 Cr potential users. The actual potential users may be larger than this, as it is not necessary that these proportions apply on top of each other. However, to maintain consistency with Statista reports, we will consider 2Cr customers as of 2024.

Fitness app users Assuming Fitify captures 10% of the Fitness market (which in-turn is 30% of total consumer market) - it leads to 60 lakh customers. Given it is able to convert only 30% of its users to paid users, the market potential in 2024 is ~Rs. 60 Cr/yr.

Each %age improvement in market share will bring it an additional Rs. 6 Cr/yr.

What is Fitify really in the business of?

Improving physical fitness of its clients in the most efficient way possible

What problem is Fitify solving for the customer?

Convenience, Ease of Use and versatility of workouts

What are the key features and key customer benefits?

Guided workouts (with virtual coach)
Integration with Spotify and Apple/Amazon Music
Ability to add/remove equipment
Customizability of plans

Why do customers chose us over competition

Enough basics covered in free plan (demo of pro-plan)
Clean UI/UX
Results from workouts.

Key Insights

Availability of free version is key to conversion.
Achievements are used for inorganic growth-despite them being very clunky
Tracking of progress is key to retain users
Not enough inorganic reach in India
SEO is definitely not optimized
Ask for better product integration experience

Comparison of various channels

At early scaling, the guide suggests to select one paid and one organic Channel.

Channel Name	Organic/Paid growth	Flexibility	Effort	Lead Time	Scale	Budget/CAC
Referral	Organic	Low	High	Medium	High	Medium
Google Ads	Paid	Medium	High	Low	High	High
Meta Ads	Paid	High	High	Low	Medium	High
Content Loops	Organic	Low	Medium	Medium	Medium	Low
Product Integration	Paid	Low	High	High	High	High/Medium
Organic Search/SEO	Organic	Low	High	High	Medium	Medium

At early scaling stage, typically scale and lead time takes precedence of budget/CAC and Flexibility. However given the limited revenue that each user is adding to the product's bottomline, CAC becomes a very important metric in this dimension.

Therefore the logical choice would be to choose Content Loops and Product Integration (with low budgets) as the key Channels to double down on.

N/A

We will select ICP1 - Amar for designing content loops.

He typically uses Google-fit (or) Apple Fitness+, Uber/Ola, Swiggy/Zomato, Notion/Evernote, Spotify. In terms of

Platform	Engagement Rate	Content Type Suitability	Reach
Social Media - Instagram	High (1-3%)	High	High
Social Media - LinkedIn	Medium to High	Low	Medium
Inshorts	Medium to High	Low	Medium
Blogs and Websites	Low	High	Low
Online Communities and Forums	Medium	Medium	Medium

Hence, the best places to create content loops are Instagram and relevant online communities.

N/A - deemed too expensive vs LTV

We have selected Amar as the main ICP. He uses Google-fit (or) Apple Fitness, Uber/Ola, Swiggy/Zomato, Notion/Evernote and Spotify/Apple-Music. Fitify is already integrated with Google-Fit, but is not integrated with Strava/Fitbit/Garmin and others. While Fitify has the ability to suggest a variety of meal plans, it is does not have the ability to provide personalized nutrition plans.

The complementary products for Fitify are as follows

Channel Name	Time to go live	Tech Effort	New users we can get (monthly)
HealthifyMe	3 months	High	20-30k (25mln users in India)
MyFitnessPal	3 months	High	5-10k (assuming 8mln users in India)
Calm	2 months	Medium	10-15k (4 mln users in India)