Cure.fit — A Product Positioning case
Cure.fit is an Indian health and fitness startup founded by Ankit Nagori & Mukesh Bansal in 2016.
Cure.fit offers both online and offline experiences across fitness, nutrition and mental wellbeing.
On the VC side of the story, it has been making tremendous strides in terms of funding. Its main investors include Accel, Piramal amongst others with a total valuation of $500Mn, a commendable feat for a 3-year-old startup.
Startup Scenario
Indian startup scenario has seen tremendous growth in the past decade. We’ve seen startups scale within India, raise funding beyond expectations, challenge established foreign competitors and expand internationally to newer markets.
A prevalent issue with many startups, as voiced by several media companies and VCs as well, is that many startups burn a lot of cash.
While burning cash to fund research and development is more justified, as opposed to burning cash for the sake of gaining customers and retaining them is not an entirely viable business model.
The discount-heavy, cheaper-alternative approach in a congested and competitive market is not beneficial to the company either in terms of market share or profits.
In history, companies have resorted to product positioning in terms of brand/customer base/price-segment to carve a niche.
Just imagine if Microsoft and Apple had locked horns in a price battle in the 80s. Over the course, Apple has targeted niche groups whereas Microsoft has been the one for masses and enterprises.
This product differentiation helped both of these companies to stand the test of time and reach unparalleled heights.
Amidst such a scenario of Indian startups being part of cash burning with not so viable business models, Cure.fit has managed to grab my attention for being a viable business model.
Let’s explore several important reasons behind this.
Market Scenario
Let’s roll back the years to the middle of this decade.
Amongst urban youth and across ages had been increasing impetus given to being fit.
Alternate forms of exercise including yoga, Zumba, were gaining traction amongst the consumers. The Google Trends snapshots give us insight into the increasing attention towards Gym and Zumba as a search topic in India in the past decade.
The traditional gyms were already well-established players in the fitness market but they never helped maintain the diet of its subscribers. This resulted in a pain point for the users as they had to rely entirely upon their motivation and subsequent non-adherence to diet requirements.
Let alone fitness diet, with regular media articles on food being tampered with chemical, quality consistent food has also grown to be of necessity. There are concepts of healthier alternatives, less-chemical infused foods and diets cropping up across locally.
Another well-publicised benefit of exercise has always been the improvement of mental health. In the times of increased awareness of mental health issues and prevalence, a good platform was the need of the hour to improve health, via Meditation amongst others, and relevant consultation.
All-in-one
A healthier lifestyle can be broken into improved physical health, quality food, mental health and medical help.
While there are a lot of independent firms working on addressing each of the above mentioned, and specialising in them, for a common consumer pitching an all-round solution is a crucial differentiator for cure.fit
Being an all-round solution helped cure.fit differentiate from being either a gym or a food service.
Call it the need of the hour, but such a well-rounded solution couldn’t have come any earlier.
Cure.fit has established the 4 facilities.
- Eat.fit — One stop solution for quality food
- Cult.fit — Exercises and physical activity via Gym, Zumba, Yoga etc.
- Mind.fit — Meditation classes amongst others
- Care.fit — Health checkup and consultation
Subscription Model
The subscription model is the recent trend amongst major firms in an attempt to increase Customer lifetime value and retention.
Bigger firms like Microsoft, Adobe have changed their business strategy in recent times and have migrated towards this policy for their prime products.
The usual con for the subscription model is that an upgrade in services is usually discouraged as the users are tied down to service now.
For a firm whose emphasis is a constant fitness, with no huge variance in service offerings, a subscription model has been placed well, ensuring retention in the long run.
Brand
Creating a brand image is one of the topmost priorities of firms. Many successful businesses can be attributed to having a strong brand associated with them. Be it Apple loyalists or OnePlus geeks or Harley bikers, a loyal group of customers is a rare and priceless asset a firm aims to hold.
Right from celebrity collaboration with Hrithik Roshan, who has been a prime example of a fit body for Indians over the years, to creating a brand for customers, a cult of fitness and health-conscious people is one of the strongest holds of Cure.fit
Having a good brand presence ensures that Cure.fit is on the minds of people who are interested in seeking a healthier lifestyle.
This unified solution, combined with consistent quality, is one of the prime reasons, cure.fit can command a premium for its services.
Such a business model is beneficial for it’s working in the long run. It has been receiving a lot of funding as well, allowing it to go the “discount-lure” path to attract customers.
Conclusion
Many Indian startups have excited me with their ideas. Many caught my attention with mind-boggling numbers. But Cure.fit has stood out for me as one of the startups which impressed me right from its idea, execution and marketing, resulting in a wholesome company.
- It deals in food and delivery — Positioned itself at a fitness level away from restaurants and other delivery apps
- It deals in gym & exercise — Positioned itself as a one-stop solution with diet and being part of “Cult” Fit
- It deals in Mental health & medical consultation — Positioned itself as not just a consultant but helps in achieving goals
Sometimes ideas are not revolutionary, unifying them and pitching them to address issues of target customers makes it revolutionary
PS: It feels great to know that Ankit Nagori, co-founder is from my Alma Mater, IIT Guwahati. Hoping to see many more startups in future
For more articles check out my profile — Sasank Gurajapu
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