Winning by Not Competing: Late Mover’s Strategy to Lead the Pack

The Origins of the Idea #

In a small area, Zumba classes were taking off in popularity. A group of local women wants to hop on the train as a fundraiser for publicly-funded daycare centers. While making some profit, they also aim to gather financial support for the upkeep of the kid-centered spaces.

The group noticed limitations to competing directly against the many experienced instructors already teaching Zumba across town. They have limited time on their hands as they also are full-time moms. They also do not have licenses. Because apparently, you need to have one.

Rather than go head to head, with my help, we devised a creative differentiation strategy.

Forging Win-Win Partnerships #

The group approached Zumba instructors with a proposition to host a large fitness event.

The group leveraged their contacts as Zumba class participants to connect with top instructors across the area. Since they had taken classes from many of the instructors, it was easy to get in touch.

They approached the instructors with a compelling value proposition - in addition to a flat partnership fee, the instructors would earn a 20% commission on every ticket sold to their existing students. This provided a sizeable upside on top of their regular class teaching rates.

Given the potential to earn additional income while growing their exposure, most instructors were eager to sign on. The partnership provided more marketing reach and revenue than they could achieve independently.

The group sealed deals with the area’s 5 revered instructors, who together controlled over 70% of the local class market share. Having these heavy hitters on board gave the event immediate credibility.

Executing a large-scale fitness event #

With instructors on board, it was time to plan the flagship event. The small organizing team handled the end-to-end planning and execution. This included securing sponsorships, designing promotional materials, ticketing logistics, and venue coordination.

The group secured the area’s event hall as the location and got the rental fees waived by securing the endorsement of the city government. We also obtained sponsorship from a local company to cover lighting and sound equipment free of charge. The venue provided concession spaces rent-free, which we resold to local food vendors as an added income stream.

Nearly all marketing was done digitally. It was just social media and constant guest postings to various Facebook groups of the instructors. Given the instructors’ outreach, we focused promotional efforts on driving ticket sales through instructor networks.

As momentum built, tickets were selling faster than anticipated. The venue capacity was exceeded based on instructor outreach alone, forcing the group to cut off sales earlier than expected.

Despite the hectic planning process, the small but mighty organizing team pulled together an impressive event with little overhead costs. The mom’s hustle and creative sponsorships set the stage for a successful event. Go moms!

Blockbuster Results #

On the day of the event, the venue was filled to its brim with over 750 Zumba enthusiasts in attendance of the 1100+ tickets sold. The actual attendance was capped. (Whoops!)

Because of the creative partnerships and sponsorships secured, overhead costs were extremely low. The event achieved a profit margin of around 95%, enabling the group to raise money to buy supplies for local daycare centers–far surpassing their goals for a first-time event.

The event also created wins for all stakeholders:

• Attendees raved about the electric atmosphere and nonstop dancing. The crowded space facilitated connections and energy.
• Sponsors received nonstop shoutouts and prime promotional placement. Their logos and signage were omnipresent throughout the venue.
• Instructors took advantage of the platform to showcase their skills and gain exposure. Each led portions of the event to enthuse dancers.
• The organizing team took pride in orchestrating an immensely successful event while giving back. Their commitment paid off handsomely.

The runaway success validated the differentiated partnership strategy. By aligning incentives and tapping into existing demand, the event achieved both financial and social returns.

Key Takeaways #

This case study demonstrates how late movers can enter a market through creative differentiation and partnerships:

• Existing demand can be tapped by improving the experience
• Reduce costs via partnerships with established players for marketing and operations
• Focus on a niche goal to stand apart from competitors
• Create win-wins for partners by aligning incentives

By applying these strategies, late movers can carve out their positioning despite crowded markets. With some creativity, you can play to your strengths and get partners to rally around your vision.