Introduction
Tonal is one of the leading innovative firms in the fitness sector, offering home gym fitness devices and additional services. The company is gradually taking over the Canadian health and fitness market with an innovation-driven approach. Its marketing strategy captures demographic characteristics, innovative promotional channels, and a unique value proposition. Tonal also employs the 4Ps and 5Cs of marketing, which allows it to capture the market amid tough competition. Its essential product is uniquely developed using the latest technology, with AI significantly enhancing customer experience.
Tonal Profile
Founder
Tonal is a firm specializing in fitness technology. It was established in 2015 by Aly Orady. Aly Orady is a former Apple developer known for his love for technology and high innovation skills (Abbate, 2021). He found a segment of higher-income customers interested in innovative fitness solutions and developed a product to close the market gap. He set out to create a solution that matched the practicality of at-home workouts with the efficacy of gym equipment (Mateo, 2022). Having been declared obese, Aly Orady’s inspiration came solely from his fitness and weight management challenges.
Business Type/Industry
Tonal is a player in the fitness technology sector, offering users customized training experiences by fusing state-of-the-art hardware and artificial intelligence. The Tonal device offers as many advantages as conventional gyms, making it attractive to many customers. The company uses data and AI algorithms to deliver real-time feedback and customize routines for each user (Aman, 2021). Because of this innovative strategy, Tonal is now a market leader in the quickly growing intelligent home fitness sector.
Product/Product Lines
The primary offering from Tonal is a complete home gym that forgoes traditional weights in favor of electromagnetic technology to produce resistance. It also has a digital screen with interactive fitness routines (Moscaritolo, 2021). The electromagnetic resistance of the device can be automatically modified to provide the ideal level of exercise difficulty for each user. Therefore, high levels of workout customization align with the current trends in the wellness sector, characterized by a user-oriented approach. The success of a product in this industry is characterized by meeting customers’ demand for innovative solutions.
Market Share
Tonal has rapidly increased its market share in the fitness sector to meet the growing demands of its target population. Despite being a new player, its cutting-edge strategy and superb user experience have drawn increasing numbers of clients (Castro-Sloboda, 2022). The success of Tonal is due to its capacity to deliver convenient workouts. Tonal has positioned itself as a space and cost-saving alternative for gym lovers. It offers a system that eliminates the need for various gym equipment and personal trainers (Moscaritolo, 2021). Therefore, the market share keeps expanding daily due to the growing demand.
Market Size
Numerous people’s time-constrained lifestyles and the rising demand for individualized and practical fitness solutions have carved out a high market for Tonal. The worldwide market for home fitness equipment is anticipated to reach $6.29 billion by 2025 (Ong et al., 2021). Furthermore, the COVID-19 pandemic has expedited the use of at-home exercise solutions by limiting access to conventional training facilities (Ong et al., 2021). The company has also forged strategic alliances with other companies, such as Nordstrom and Amazon, to increase sales through multiple channels (Rooney, 2020). Tonal has built its brand credibility and reached a larger audience by partnering with other players in the sector, increasing its popularity and market size.
Tonal North Star
Mission and Goals
Tonal aims to improve people’s lives via wellness, exercise, and health. Therefore, Tonal aims to create systems that help people realize their full potential through physical fitness. Tonal intends to aid its customers in enhancing their total body composition, strengthening bones, and lessening the symptoms of chronic diseases by concentrating on strength exercises. The company has emphasized the “systems” approach toward life improvement (Team Tonal, 2019). Therefore, Tonal’s mission and goals revolve around society’s health and improving the surrounding community’s welfare.
Strategy
Tonal’s creation of digital weights and the most innovative exercise equipment is crucial to its strategy. Tonal has developed exercises that use the latest technology to inspire individuals to exercise in ways that they find the most effective and appealing (Team Tonal, 2019). The firm holds that building a more muscular body with balanced strength is the key to attaining one’s goals. This is regardless of whether the goals include achieving peak athletic performance or leading a healthy lifestyle. The “systems approach” attracts professional athletes and those who enjoy fitness as a hobby.
The programs offered by Tonal are meant to improve muscular-skeletal strength, core stability, muscle balance, flexibility, and power. The model employed by Tonal also takes a methodical approach to software design (Moscaritolo, 2021). To assist users in achieving their goals, the company has created scientifically designed programs to avoid random workouts. Each program is specifically made to work the muscles properly, with the proper amount of weight, and at the appropriate time (Tonal Team, 2022). This strategy is fit for consumers who want to maintain consistent workout schedules.
Tonal’s approach also considers the significance of warming up and prepping the body for each activity. Every session begins with a dynamic warm-up to ensure progress throughout every exercise (“Warm-up sets,” 2022). Additionally, the plan thoughtfully arranges the strength blocks. It begins with broader muscle groups for optimum effectiveness and concludes with isolated exercises and core work to focus on specific objectives. Moreover, the plan gives corrective exercises and active recovery to aid in a quicker recovery and better overall movement.
Motivation/Rationale for Market Entry
Canadian Demographics and Canadian Outlook on Health and Fitness
The demographics of Canada were primary drivers for Tonal North Star to join that market. Canada’s population of approximately 37 million people is a large customer base (RCI, 2022). With a median age of 41 years, Canada’s population is also relatively young. This suggests a significant potential for people wishing to invest in fitness and health solutions. Statistics show Canadians are becoming more conscious of the value of fitness and physical activity (Spence et al., 2018). This indicates that people are becoming more interested in their health and wellness, which makes this a good time for Tonal North Star to enter the market.
Buyer Behavior
Many users prefer working out alone at home or outside. According to Thompson (2022), home exercise gyms are the second-most-popular trend for exercising in 2022, while outdoor exercising is third. The value proposition of Tonal North Star is that it offers individualized and practical fitness solutions. The value proposition is attained through selling its home exercise equipment, which perfectly fits customers’ preference to work out on their own time. Public gyms are also not frequented in Canada, which means that working out at home could be a beneficial proposition to the target population.
Marketing Strategy
Target Audience (Marketing Target): Demographics, Interests, and Behavior
Tonal has broad appeal among many different types of people, including men and women of all ages. However, individuals between 25 and 45 interested in fitness and leading healthy lives will make up most of its target demographic. The target audience is expected to be interested in finding cutting-edge fitness equipment to improve their workouts. Tonal is appealing to upper-class customers because of the premium price of gym equipment (Debara, 2022). Individuals with value for fitness and the money to spend on premium fitness solutions are drawn to Tonal.
Based on individual demands and interests, Tonal further divides its audience into subgroups within the larger target market. Doing so makes it easier to provide tailored marketing messages to various submarkets. Tonal serves people of all ages, from millennials to middle-aged adults, and both make unique demands at different phases of life. The company is interested in individuals doing weightlifting, strength training, and general physical fitness exercises. By knowing and understanding the interests of its clients, Tonal efficiently and innovatively crafts its messaging to appeal to their tastes.
Tonal is aware that many prospective buyers do much research before purchasing. Its marketing approach provides in-depth information to answer the demand for product evaluation. This includes its products’ features, advantages, and customer success stories. Tonal seeks to capture a sizable section of its target market, such as one-third of Canadians who need to exercise more (Amanat, 2023). The firm promotes regular exercise as part of its marketing strategy, discouraging a sedentary lifestyle.
Unique Value Proposition
Tonal is an innovative fitness system that combines the latest technology and professional direction to deliver an all-encompassing strength-training experience at home. This device comprises a sleek wall-mounted unit with movable arms and a touchscreen display for interactive visual and aural guidance (Moscaritolo, 2021). The device offers smooth, precise workouts appropriate for all fitness levels while cutting-edge technologies make the user experience unique.
Besides, many features have been developed with the help of AI technology. AI integration into the field of fitness technologies has been shown to positively impact user experience and improve the target demographics’ attitudes toward working out (Chin et al., 2022). Thus, Tonal emphasizes its distinctive value proposition of offering a comprehensive strength-training experience with many advantages.
Tonal’s flexibility to adjust to consumers’ fitness levels is another significant advantage. The system’s adaptive AI technology automatically adjusts the resistance, making exercises difficult yet doable for people at various stages of their fitness journeys. Therefore, users can continually push their boundaries and accomplish their objectives. Furthermore, they can work out their schedule to access the system whenever possible. The interactive touchscreen display allows them to monitor progress and set objectives.
Brand Image/Recognition
Messaging and Visual Identity
The central idea of Tonal’s brand messaging is the company’s practical workout solution, which brings the strength of a complete home gym. The messaging allows the user to receive professional advice, promoting its ease of use. This emphasizes how it can accommodate people with all levels of fitness and ambitions.
The minimalist design of the devices complements Tonal’s image as a brand. The product’s colors and characteristics complement the contemporary home decor. Besides, the company’s website and marketing materials reflect its primary product’s elegance and simplicity.
Tone/Voice
Tonal’s branding and communication demonstrate the dedication to providing consumers with assistance and accuracy as they work toward their fitness objectives. Tonal finds a mix between enlightening and motivating (Ji et al., 2022). This objective is achieved through offering professional advice and individualized instructions while bolstering the user’s resolve and ambition to succeed. The tone of the messaging demonstrates that the company is a reliable source of fitness solutions and advice and is friendly and approachable. Consequently, many customers in the market have opted to engage the company since it is approachable and welcoming.
Promotional Channels
Tonal heavily relies on social networks to engage its audience and the general market in its fitness system. Websites like YouTube and Facebook are preferred because many targeted clients are active social media users. The marketing department is responsible for filming and posting exercise videos and engaging brand ambassadors to spark interest and increase product awareness.
To remain at the forefront of potential customer’s minds, Tonal employs retargeting, a method of reaching previous website or app visitors through emails or displaying ads. It is a unique advertising form because it targets individuals who already have some knowledge of the product that is being targeted to them (Sahni et al., 2019). Email marketing and display ads allow for connecting with customers e who have expressed interest in fitness.
In addition, tonal uses conventional advertising mediums, including television and print media, to reach a larger audience and raise brand awareness. Some print media include advertisements and promotional messages in fitness magazines. In some cases, newspaper ads are posted, especially when news of hot deals will attract customers. The newspaper company is sure that the newspapers will sell more copies than usual, so such ads are placed in the print.
Measurements of Success
Sales, Product, and Brand Awareness and Relevant and Applicable Content Creation
The company monitors sales and profits to evaluate the success of the employed marketing initiatives. It examines revenue and earnings by examining the effect of its promotional efforts on the company’s financial success. Besides, the firm tracks the degree of brand and product awareness among its intended market by monitoring data on social media and evaluating website traffic. Other relevant data include click-through rates, engagement rates, and other related metrics, which determine the effectiveness of content development activities. These indicators allow Tonal to assess the effectiveness of its efforts in generating interest from the target audience.
4 Ps
Tonal emphasizes innovation and improving user experience. The firm has considered the preferences of the target demographic to avoid charging additional fees that customers might not like. Instead, the accessories are incorporated into the product price rather than provided as add-ons. The company positions itself as a luxury brand using a prestige price strategy. The product’s price reflects the innovative technology used in the manufacturing process. Therefore, Tonal intends to appeal to higher-income customers by setting a higher price point.
Product promotion to the target audience is achieved through social media advertising and a marketing strategy that focuses on relationship building. Retargeting and personalized email marketing are also used to cater to potential clients interested in fitness products. Collaborations with well-known athletes as brand ambassadors aim to increase brand awareness and recognition. Finally, Tonal targets its product to the urban population of Canada, which is used to making online purchases and may occasionally visit stores. Customers around the country have access to the product through the Tonal website.
5 Cs
Tonal is a firm operating in the fitness sector that is taking over the market. However, many startups are making their way into the market. Tonal competes with several fitness-related businesses in their respective industry. Mirror, NordicTrack, and Echelon, which provide similar home fitness solutions, are well-known rivals with large customer bases. However, there are significant differences in prices, the features of the devices, and the technology being used, which means that the products differ.
The target demographic is men and women passionate about attaining their fitness goals, primarily between 25 and 45. To meet the demands and desires of its clients, Tonal aspires to offer tailored and efficient fitness solutions. The firm works with various partners, including top athletes and trainers, to improve its products and provide knowledgeable advice to clients. To increase its reach and enhance the perception of its brand, Tonal has the opportunity to collaborate with sportswear firms in co-marketing campaigns. Changes in technology, customer preferences, and market trends are only a few examples of the climate in the fitness sector affecting Tonal.
Conclusion
Tonal has captured the Canadian fitness market with AI-empowered gym systems. The company has utilized the latest technology to develop devices considering client preferences and tastes. The company targets its products to higher-income customers who can afford the fitness system. Moreover, Tonal is taking over the fitness sector through innovative market entry techniques and promotion strategies. The innovative technology that the company has employed makes it easier for customers to work out at home regularly and maintain engagement. Overall, everything the company does depends on the client’s needs and interests, as they are valuable for attracting a sizeable market share.
References
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