1. Client: Exten Fitness Systems

2. Product Description An innovative exercise system comprising ten machines that exercise and tone all muscle groups. The major innovation is that the resisting forces are provided by an electric motor therefore there are no weights or dumb-bells that can be dropped, nor can the clients overstrain themselves. There is a graphic display that indicates performance improvements and several levels of difficulty that the machines can be set to. The system is suitable for clients of all levels of fitness and the prime target is ladies of 35 years and older.

3. Critical Issue
The initial request was to assist in reducing manufacturing cost. A preliminary analysis of the four main areas, finance, marketing, product and manufacture led away from this as a priority. Firstly although some cost reduction could have been achieved, the major cost element - the electronics - were committed to for the immediate future and it was not believed that price was sensitive. More importantly it emerged that the because the routes to market were clearly not understood and that this was the real critical issue.

4. What we did
After the preliminary findings a multi-disciplinary team was put together consisting of the directors of Exten, the distributor/marketing company, a customer, a promotion company and three staff from the Innovation-Direct team. Together we identified:

• The Product Differentiators
• The Benefits to the Consumer (the user)
• The Benefits to the Customer (the gym owner & purchaser.
• 18 plus market niches
• Rated these for market attractiveness producing three priority target niches (not those the company had originally thought to be top priorities).
• Established the sales and marketing processes including co-ordinated literature for the customer and for the customer to use in his marketing to the consumer.

5. Outcome
The product has been successfully launched at major trade shows and orders obtained. Future development of the next generation of machines which are only at concept stage will enable cost reductions to be made which will result in either increased profits or lower sales price as

6. More information:
Contact Don Rickard at Innovation-Direct on 024 76 572 505

January 2002