“Crunch” Case Analysis

The creation of a successful brand such as “Crunch” requires one to understand an excellent idea the product bases on. The paper aims to analyze the case study of “Crunch,” a business founded by Levine Doug in the USA in 1988. The analysis reveals that Doug realized that developing an aerobics outfit that meets the specific needs of the customers was the core idea that would improve his business. Although the company began as a small enterprise, its brand was outstanding as it had a national outlook. Unique advertising and strategic pricing are the important factors that popularized the product.

The foundation of a successful product is an excellent idea popularizing it. When Doug left his securities trading job in San Francisco, he studied aerobics and acting while engaging in odd jobs (Dann 1). Analytically, Doug made a decision which was unpopular among many people leaving their job in order to start studies. His decision was the basis for developing his future product. While studying aerobics, the man realized a potential market for aerobics: “I got the idea that guys would get into aerobics in a big way soon,” (Dann 1). Therefore, a marketable concept requires a wise decision on the potential of the outfit succeeding in the market. Furthermore, Doug’s concept would satisfy the customers’ needs because it focused on emerging demands of the potential clients.

The case, however, shows that the naming of any business is a competition strategy sometimes causing conflicts. The first name Doug gave to his aerobics outfit was “In-Shape” (Dann 1). As the man explained, there was an outfit that already existed under this name. Consequently, the owner of the competing business sent Doug several threatening letters forcing him to change the name of his enterprise to “Crunch.” The essence of Doug’s modification of the name of the outfit predicted the way that products underwent a continuous process of adaptation, including their names.

Apart from choosing the right names for their enterprises, marketers must also differentiate their products following a competition strategy. The case explains that one of the threats lifted to “Crunch” was that Manhattan had also several competing aerobics outfits (Dann 2). As a part of his differentiation attempt, “Levine asked the aerobics instructors working in the studios to develop routines which were unlike anything else people were doing at the time,” (Dann 2). As a result, the clients who visited “Crunch” would do outstanding exercises and get better services that the other studios were not able to provide. For example, Levine’s technique could make the consumers experience theatrical emotions which they could not find elsewhere (Dann 2). Consequently, a marketer willing to popularize his invention and attract more customers relatively to his opponents must differentiate his materials.

Pricing is a challenge the new entrants face because they must do it strategically as far as it determines their competitive strength. At the beginning, Levine charged his customers on per visit basis. However, the main disadvantage was his inability to attain his financial targets which he had conceptualized. Some of the problems he faced in pricing his services included the high costs of hiring the instructors ranging between $50-80 per hour (Dann 2). Besides, the underlying concept for the business became less popular during the 90s, meaning that “Crunch” continued attracting fewer customers. It was, therefore, compelling for the founder to transform the underlying business concept to deal with the rising market dynamics.

A strong brand must use a well-researched philosophy. The key to the success and growth of “Crunch,” as Levine explains has been the strong brand that is its foundation. Nonetheless, the brand utilizes the aspect of differentiation. While Levine was working on the philosophy of his business, he aimed to develop one that would set his business aside from its rivals. He researched the opponents’ philosophies and came to the conclusion that most of them used the concepts of body building and winning fitness trophies (Dann 3). Therefore, he chose thinking of getting fit while improving the visitors’ state of mind. The man based his thought on the fact that many young Americans in their twenties had real jobs with high stress (Dann 3). Thus, visiting the studio would not only help the clients to get fit and strong but also reduce their stress level.

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Advertising is an intervention helping marketers to project the image of their outfits. From 1993, “Crunch” used the strategy of producing its aerobic videos through Anchor Bay and ESPN companies. The videos would narrate the story of what happens at “Crunch” because they captured the instructors and the clients during the fitness sessions. In addition, they also showed the theatrical performances differentiating “Crunch.” The popularity of the video programs and TV shows continued growing, and by 1999, more than 800,000 viewers watched the programs every week (Dann 4). Therefore, excellent marketing requires the inventor to consider the most effective medium that can connect their product with the public.

In conclusion, the “Crunch” case study gives a range of marketing ideas for developing a successful brand. Basing the product on an excellent idea is the beginning of its success on the market. It is vital to understand the existing customer needs that the competitors often do not meet. A strong brand with national features and appropriate promotional strategies are an essential part of any business. However, the marketer must also strategize the adaptation of the product as a way of dealing with dynamics, e.g. the shifting client base.