New Zealand Fitness Industry 2015: Pest Analysis and Part-3

The provided content appears to be a mix of research studies and industry reports related to fitness, healthcare, and business. The articles discuss various topics such as physical activity, cardiometabolic risk factors, service quality in the health and fitness sector, and organizational design and engineering. Additionally, there is an Ultimate Guide to New Zealand Fitness Industry 2015 report that provides information on the number of customers and expenditure expected for a company called CFFC (Centre for Fitness and Family Care). The report estimates the number of members, nutritional supplements sold, units of classes offered, and salary expenses from June to December.

Business Proposal

TABLE OF CONTENTS
Business Proposal.................................................................................................................................1
1. BUSINESS IDEA.............................................................................................................................5
1.1 Description of business idea and mission statement..................................................................5
1.2 Innovation and unique selling points.........................................................................................6
1.3 Competitive advantage..............................................................................................................7
1.4 Key transactional relationship, partners and stakeholders.........................................................7
1.5 Analysis of key issues using PESTEL.......................................................................................8
2.1 Identification and description of customers, partners and stakeholders....................................9
2.2 Analysis of customers' needs, wants, preferences and characteristics.....................................10
2.3 Estimated number of customers and expected expenditure.....................................................11
3. ANALYSIS OF COMPETITION AND MARKETING STRATEGIES........................................11
3.1 Strengths and weakness of competitors’ / competitor analysis................................................11
Figure 2: Competitor Analysis.......................................................................................................12
3.2 Marketing strategies.................................................................................................................12
3.3 Marketing plan.........................................................................................................................14
3.4 Critical success factors of new venture....................................................................................14
4. REFERENCES...............................................................................................................................16
5. APPENDIX.....................................................................................................................................18
5.1. Estimate the number of customers and expenditure expected................................................18
1. BUSINESS IDEA ............................................................................................................................5
1.1 Description of business idea and mission statement .................................................................5
1.2 Innovation and unique selling points.........................................................................................6
1.3 Competitive advantage..............................................................................................................7
1.4 Key transactional relationship, partners and stakeholders ........................................................7
.............................................................................................................................................................7
1.5 Analysis of key issues using PESTEL.......................................................................................7
2.1 Identification and description of customers, partners and stakeholders....................................8
2.2 Analysis of customers' needs, wants, preferences and characteristics.......................................9
2.3 Estimated number of customers and expected expenditure.....................................................10
3. ANALYSIS OF COMPETITION AND MARKETING STRATEGIES .......................................10
3.1 Strengths and weakness of competitors’ / competitor analysis................................................10
3.2 Marketing strategies ................................................................................................................11
3.3 Marketing plan ........................................................................................................................12
3.4 Critical success factors of new venture ...................................................................................13
4. REFERENCES...............................................................................................................................14
5. APPENDIX.....................................................................................................................................16
5.1. Estimate the number of customers and expenditure expected................................................16

LIST OF FIGURES
Figure 1: Transactional relationship, partners and stakeholders..........................................................9
Figure 2: Competitor Analysis...........................................................................................................13

LIST OF TABLE

1. BUSINESS IDEA
1.1 Description of business idea and mission statement
The proposed business idea has ve showcased a leading plan of launching a new and modern
family oriented fitness centre in at Auckland in, New Zealand. The plan will clearly focus upon the
development of a sound healthy body gaining health benefits with fit body-structure rather than
developing only a robust physique. The uniqueness of “City Family Fitness Centre” is its purposive
agenda of involving all family members in healthy actionsactivities that prove to be beneficial for
whichhealth which is different from the services of other fitness centres. A flexible exercise with
dynamic strength-training, static strength-training, aerobic exercise, yoga classes and meditation
sessions will be the services offered by City Family Fitness Centre. to its customers. The reason
behind delivering these fitness activitiesservices related to physical fitness is to gain an inner peace
by togetherand solving various health related issues such as body ache and obesity. Further, where
such activities will also make the body strong and healthy (Health and Fitness in Auckland, 2016).
“City Family Fitness Centre” is presenting launching a fresh concept of fitness into the market to
help customers for “growing as a healthy family”. The fitness centre offers involving manyvariety
of group fitness actions like open-air drives to give a factual and healthy natural ambience to the
members while achieving their fitness goals. These ideas are associated with the modest
requirement of spending funds where its active contenders have yet did not implemented alike
business idea.
On researching the entire market, it has been found that there is still no fitness centre in the
cogitated area of Auckland, New Zealand whicho focuses upon the fitness of children and resolves
their fitness issues like obesity. NZ government encourages children to engage with fitness activities
atleast 60 minutes per day and only 10% of secondary school students met the current
recommendations of 60 minutes of physical activity daily . ("Activities for children and young
people", 2016) By considering it as a leading opportunity, City Family Fitness Centre will be
operating separate session for kids after their school -ing hours and other study classes. These fit
kid-related programmesfitness programmes will not involve any fitnessuse of equipment and
machines. Further, they did not focus on or muscular buildings and are only tailored to achieve
child’s fitness goals. Along with this, there will be a day care facility in the fitness firm to those
families who are having small babies and due to which they are unable to go to the fitness centres
for daily exercises (Flowerdew, 2010). In this facility, there will be a separate area for childcare
where mothers can safely keep their small kids and babies and afterwards performfor performing
their fitness activity. This family package will be an unique selling point for the business.

Vision:
Become the best choice for families in New Zealand for their daily fitness
“Emerging as the first choice in fitness services for families in New Zealand.”
Mission statement: The mission of “City Family Fitness Centre” is to provide functional and
innovative, entertaining and friendly experience with an uncompromising quality which meets the
health and fitness goals of the entire family (Chalmeta & Palomero, 2011).
1.2 Innovation and unique selling points
One of the real objectives of beginning staring up a new venture as a “City Family Fitness
Centre” is to energize the families settled in Auckland area to develop a propensity of regular
exercises for staying having a healthy life (Nalepa, Kluza & Kaczor, 2013). Operations at City
Family Fitness Centre is particularly outlined and workedstreamlined to deal with adults and kids.
With a similar context to it, key unique selling points and innovative services are as mentioned
below. ,
Complete family fitness program with special attention to entire family: In Auckland,
New Zealand, there are is no such fitness centres who is that are offering a full package of fitness to
the entire members of a familyfamily as a whole. There will be no additional charges for the rest of
the family for personal training requirements. This will be the biggest opportunity for City Family
Fitness Centre to use this as their service is going to prove as a Unique selling proposition for the
organization. USP. Under this fitness package, whole family can become be a part of the fitness
centre by submitting apaying minimal charge of the membership. Adults and children can also take
profound benefits of such fitness services. Along with which, isolated families with working parents
can safely keep their children in the centre during their working hours. There will be a day care
facility which is yet not adopted by any other competitor of the cited firm in the existent
marketplaces of Auckland. So, it is an entirely unique and innovative USP for theservices for the
new business idea venture (Lähteenoja, 2010).
Outdoor fitness programmes: Company will arrange outdoor activities for families in at
places such as beaches, parks and play grounds during holidays. time period where family In this
way members can enjoy time with their families while entertaining and achieving their fitness
goals.gaining benefits of fitness goals.
An online presence: City Family Fitness Centre will showcase its presence on internet by
developing a meticulous mobile application. Although, its competitors are having an active online
existence on website which is merely accessible either on PC or laptop with no existence in smart

phone. So, it will be a reliable USP of the designated fitness centre by which its customers can
anytime access the information from anywhere in the world. Along with this, the users will be able
to pay their membership fee from the designed mobile app and get free health tips on daily basis
(Kluza & Nalepa, 2012).
Special classes for disabled and old age people: City Family Fitness Centre will hereby
conduct special fitness programs for physically impaired people. In the integral market arenas of
Auckland, New Zealand, any fitness centre has not offered any such fitness facility for disablesd
and old aged people. Therefore, it will be another good USP for the new business where this plan
will render them a distinct recognition from all its existent number of competitors.
1.3 Competitive advantage
In order to gain a competitive advantage, the City Family Fitness Centre will highlight some
unique attributes of its service range. Further, Gym services will be delivered through some
advanced implication of tools which will render effective services to the users. Moreover, low cost
services by the designated firm will also provide a base in acquiring a competitive advantage. Apart
from this, the membership services of the gym also consists of several unique attributes which is
also referred to be a major source of competitive advantage. Different type of supplements will also
be offered to the customers at an affordable pricprices e structure which is also proven to be athat
proves to be beneficial tact for the entity in their upcoming future. Apart from this, some other
newly proposed fitness services of the cited firm will be Pilates, weight management, nutrition
counselling, supplement juices and drinks, physical therapy and body composition tests. Therefore,
in this way, the City Family Fitness Centre can gain a pivotal competitive advantage by offering
wide range of services to their approaching users.
1.4 Key transactional relationship, partners and stakeholders
There will be a key transactional relationship of City Family Fitness Centre with its
respective business partners and stakeholders. The following relationship is as shown into the below
figure:

Figure 1: Transactional relationship, partners and stakeholders
1.5 ANALYSIS OF KEY ISSUES USING PESTEL
To determine the key issues of the fitness industry in Auckland, New Zealand which may
create certain barriers in the future growth of City Family Fitness Centre, PESTLE analysis can be
used.
 Political: New Zealand is a democratic country where its different governmental
departments highly contribute in thetowards development of their nation. The government of
NZ is focusing upon improving the health of New Zealanderstheir countrymen. As per the
Auckland Council, fitness centres and gyms do not require health protection licences to
operate. They are only required to meet all zoning and building requisitions by maintaining

conducting operations them as per the acceptable standards (Ultimate guide to New Zealand
Fitness industry, 2015).
 Economy: NZ is a high income nation with a total GDP of $167.3 billion in 2012 and a GNI
per capita of $30,640 in 2011. It has been found from this that an average income level of
the individuals is continually becoming high andincreasing and they are using different
kinds of services that includes fitness services (New Zealand strategy 2015: pest analysis,
2014). By seeing this growth, City Family Fitness Centre will hereby set their pricing
strategies for the fitness services and estimate their profits and expenses of each year.
 Social: With the changing time, the social behaviour of NZ people also tends to change. As
per the governmental report, it has been determined that, obesity is rapidly growing in NZ. It
is now emerged as a leading cause of for the heart diseases and other related illnesses. A
major reason behind it is a poor and deficit consumption of nutrients with an inactive
lifestyle. So, this behaviour of people is a goo d sign for the fitness industry to grow and
provide a prosperous opportunity where they can prosperouslyto establish their business
(Winter, 2010).
 Technology: With the advancement of technology, NZ is continually adopting new
technologies to make their work better and faster. In this context, there is a huge
advancement in gym and fitness equipmentequipment which enable the customers to surf
internet; monitor heart rate and use advance machines for workout. So, these technological
advancements will give some prior benefits to City Family Fitness Centre where they can
effectively market their services as a means of attracting the customers.
 Legal: The legal environment of NZ is rigorous in order to make aensure fairer transactions
on part of the of business unit es which is safe and needed to be followed at the time of
starting-up a new fitness venture. In this context, City Family Fitness Centre will perform all
legal frameworks before the opening of their fitness centres by ensuring all their facilities
and services are as per the set standards.
 Environmental: Environmental concern is high in NZ in order to ensure that the new
establishment of fitness centres are environmentally friendly (Finch, 2010). City Family
Fitness Centre will make sure that all its business activities will not make have any kind of
negative impact on the environment. Although, the company will not use any kind of
advance machines or equipment for exercise.
2. POTENTIAL CUSTOMERS AND STAKEHOLDERS

2.1 Identification and description of customers, partners and stakeholders
As per the above descriptive diagram of City Family Fitness Centre (CFFC), it will largely
focus upon providing the best fitness facilities to their customers. So, at the time of rendering the
services, this firm will together need to focus upon some major requirements of their customers.
This also refers to some other requisitions of its affiliated stakeholders that could significantly
impact upon their business performances in both positive and negative manner (Avourdiadou and
Theodorakis, 2014). A brief description of these stakeholders is as represented below: Customers: Integral families, South Asian groups, people with health issues such as obesity,
old age people and disable persons will be the leading set of targeted customers of this
fitness centre. For example, students do not have sufficient time and ability to maintain their
level of fitness. So, CFFC will hereby assist them to maintain their fitness after their
schooling hours (O'Donovan and et.al, 2013). Along with this, this the centre will also also
refer to target entire set of families by offering them packages which will aid in improvising
the health conditions of their entire family members. CFFC will also offer day care facilities
for children where their working parents can leave them during their employment hours.
(Lovelock and Patterson, 2015). Partners: For providing the best services, CFFC will make partnership with professional
fitness trainers who have more than 5 years of experience. This will help them to provide the
best and qualitative services to the their targeted set of customers as per their needs and
requirements. Along with this, professional trainers will also provide an appropriate
assistance to complete their business idea in successful manner (Tsitskari, Antoniadis and
Costa, 2014).
 Stakeholders: CFFC is a fitness centre which will offer varied health related services to their
customers. So, leading stakeholders of this business will include customers, employees,
partners, investors, governmental bodies and societal groups, etc. to provide them the best
possible services. However, in order to get a successful future ahead, CFFC should hereby
pay attention to the needs and requirements of all its stakeholders by providing appropriate
amenities to fulfil their cogitated expectations. This in turn will improve the satisfaction
level of the stakeholders by together increasing the overall performance of the firm (Huang,
Li and Tao, 2014).

2.2 Analysis of customers' needs, wants, preferences and characteristics
A fit body is one of the major consideration of all human beingsindividuals in today's
progressive environment. Along with this, every client is in a pivotal need of a relaxed postulation
for developing both their inner and mental peace. Along with this, an appropriate maintenance of
blood pressure, heart rate, body mass index and medical health are also recognized to be some
major necessities of the customers. Maintaining a good health with low assumption of risks is
considered as another major requisition of all customers in CFFC. It has been identified that family
health is new trend nowadays. FamiliesFamilies’ wants to spend time with their family
memberseach other in a useful way.Schoolqualitative way. School children will require a healthy
diet plan and normal exercise routine to maintain a good health with low mental pressure of studies
(García and Sañudo, 2013). Along with this, working ladies and mothers will also require some
fitness exercise for relaxing their bodythemselves. Therefore, different customers will require
fitness facilities as per their distinguished needs. The targeted set of customers also needs to
maintain a good health without spending extra energy because they need to invest a huge part of
energy in their studies. So, they mainly prefer sport activities for maintaining their good health.
Therefore, such sport activities will help in providing the best form of exercise to schooling students
by improving their existent level of health and fitness (Soita, 2012).
Relaxing whole body is one of the major needs of those women who have small babies.
But,However, they want to involve into only those exercises which can maintain the flexibility of
their body as well as improve the health condition of their immuneand immune system.
Consequently, they prefer only those fitness centres which provide day care facilities to their
customers. Therefore, fitness plus day care amenities will significantly help CFFC to attract such
women. Therefore, CFFC should focus on fulfilling the needs and requirements of every customer
which will help them to provide customized services that will improve the satisfaction level of each
and every customer by improving the overall performance of their business (Exter, 2008).
Even old generation interest towards fitness is highly attractive. They are looking for fitness
programmes specifically for their age and capacity which will be a consideration of CFFC. Separate
group classes for old age families with suitable fitness actives, health issues, mental and relaxation
will be major characteristics of old age target customers.
2.3 Estimated number of customers and expected expenditure
Appendix 02

3. ANALYSIS OF COMPETITION AND MARKETING STRATEGIES
3.1 Strengths and weakness of competitors’ / competitor analysis
City Family Fitness Centre will be positioned as a family health focus fitness centre at an
affordable price. In Mount Wellington area of Auckland, Jetts and CLM are the two major fitness
centres. Beside this, there are some other competitors of the newly planned business. There is some
strength of these rivals which may atrociously affect the growth of new business venture (Ward,
2011). These strong points are as follows:
 Strong management
 New technology
 Good customer loyalty
 High economies of scale
 High pricing power
 Huge market share (Ford, Bornstein & Pruitt, 2010)
But, they together comprise with some weaken points of competitors of City Family Fitness
Centre which are as stated below:
 No online presence
 Weak supply chain management
 Weak marketing strategies
 Limited number of facilities
 Only male and female centred gyms (Brinckmann, Grichnik & Kapsa, 2010)

Figure 2: Competitor Analysis
Figure Competitors analysis
3.2 Marketing strategies
There are some other proposed strategies of marketing that will be followed by City Family
Fitness Centre. The same are listed are as follows:
 Product strategies: The Ccited firm will offer various services to its customers in order to
create a good position into the market of NZ. All fitness services will be based on offer high
quality of services at a lower cost. Along with this, some branded supplement drinks will be
offered to the members after their workout.
 Pricing strategies: At the initial stage of the fitness centre, penetration pricing will be used.
The reason of adopting the following tactic is a high prevalence of competition in NZ. To
attain a competitive advantage at an initial level of the business, the referred firm will
hereby offer the fitness amenities and other additional services at a lower price structure
with an aim of attracting large number of the customers. Although, it may lead to decrease
the profit level of the business at its very initial phase but this will rather help them to create
a strong base of consumers. By doing so, it will be easy for the new venture to survive in the
fitness industry and create a new position within the market (Nalepa, Kluza & Kaczor,
2013).
 Placement strategies: It is also called product distribution strategy. It is a process of making
a service or product accessible to all its users by either using direct or indirect

intermediaries. City Family Fitness Centre will hereby use an exclusive placement strategy.
The reason of adopting this tactic is its selected number of intermediaries who can avail the
proposed fitness services. This will create a good state of impression into the minds of
customers where they will directly opt for the membership of the referred fitness centre
(Lähteenoja, 2010).
 Promotion strategies: This is to broadcast the existence of a new fitness centre in the
market where City Family Fitness Centre will hereby use a below the line marketing method
in order to promote their business. The major sources of promotion will be their Facebook
page and YouTube. The reason of selecting these methods of marketing is their captivating
features for which many people tends to use it on frequent basis (Flowerdew, 2010). On
Facebook, a web-page with the name of City Family Fitness Centre will be created in which
the services of this fitness centre along with their contact information will be displayed.
However, on YouTube, some videos will be uploaded regarding the fitness services to fetch
a liable attention of the customers. On the other hand, for old age people, City Family
Fitness Centre will use some traditional strategies of marketing such as distributing
brochures in super markets; word of mouth, emails, newspaper advertisement will be
referred here. By such varied modes of marketing, message of fitness organization “Grow as
a healthy family” will be delivered to all its targeted set of customers. Along with this, IMC
programs will be carried out in order to create awareness in the people and highlight the
unique selling point of the fitness centre. From these marketing strategies, it will be easy for
the cited firm to attract more number of customers and retain them for the longer time period
(Chalmeta & Palomero, 2011). On the other hand, with the use of Barter System concept i.e.
distribution of fitness promotional items like dispensing t-shirts, giving welcome gifts to the
clients etc., will be an autonomous idea of advertisement by City Family Fitness Centre to
market their affiliated services. Along with this, press releases is referred to be another vital
source of effective marketing. In this, fitness centre can organize a free event at its studio in
regard to benefit the community. By recording the organised event, it can be released out to
different media sources as an easy referral of marketing their services.
 Positioning strategies: For City Family Fitness Centre, product positioning strategies can
be developed in varied manner. Here, the positioning strategy will be entirely based upon the
petition of their fitness services and other additional facilities. Mainly position on
customer’s mind as fit family concept along with the theme “Grow as a healthy family” will
help to gain positive feedback from customers. By introducing this new strategy, company
will automatically gain the attention of their targeted set of customers and raise a good

market share at an initial level of their business (Kluza & Nalepa, 2012).
3.3 Marketing plan
The marketing plan for City Family Fitness Centre will be as follows:
 Designing the mission and vision statement of City Family Fitness Centre. It will be
based upon a prior fulfilment of health and fitness needs of entire family members by
providing them an Entertaining, Friendly, Functional and Innovative experience with an
uncompromising quality of services.
 Setting of fitness objectives which will involve to a considerable sense of providing the
best possible fitness services to the customers at the lowest possible cost.
 Setting of target markets where main customers of City Family Fitness Centre will
address the families, South Asian people, disables and old age individuals.
 Creation of market segmentation on the basis of the income level of the targeted set of
customers.
 Developing marketing strategies by using different methods of traditional and modern
marketing styles.
 Setting distribution channels through exclusive stores where customers can easily
acquire fitness services in few centres of Auckland.
 Preparing a budgeted marketing where all the expenses of City Family Fitness Centre
will be forecasted on considering the total number of members approaching every
month.
 Implementation, monitoring and controlling activities will duly take place to ensure the
success of entire planning of City Family Fitness Centre.
3.4 Critical success factors of new venture
As per the above description, competition level is very high for CFFC. Due to which, the
organization is hereby required to pay a prior attention to certain identified factors in order to
proceed towards a successful future. This includes typical services with the proper standards,
planning, location, customer’s needs, professional trainers, fitness, pricing, membership,
commitment and marketing. All these factors have a direct and an indirect impact on the success of
the fitness centre (Preece, 2010). It also needs to focus upon the health of its customers by
simultaneously focusing emphasizing upon different services of Outdoor fun fitness activities,
personal training, massage, health education, nutritional counselling, childcare, food service, diet
plan and spa services. All these services will help them to satisfy the needs and requirements of all
its customers by significantly increasing their number in CFFC. Along with this, the fitness centre
will also need to make operate with a strong commitment with their customers in order toof

offering the best and qualitative give them some best and qualitative services to customers which
will help to createin creating the positive word of mouth and good testimonials. This in turn which
will prove to be is the a key for gaining success the in fitness industry. to become a successful
player. Along with this, CFFC is together required to make an appropriate plan for establishing their
business which will help them to complete every activity in an effective manner. CFFC together
needs to decide an appropriate location for launching their fitness centre. It refers them to choose a
location which is the nearest for all its targeted set of customers because this will help them to
attract large number of customers. Along with this, employee’s’ behaviour and professional trainers
and their training will also affect the success of CFFC. Including which, this fitness centre is also
required to focus upon the marketing and advertisement of all its fitness services by increasing the
awareness level of all its customers as well (Daly, 2012). This will also play an important role in
attaining a relevant competitive advantage. At the time of start-up, CFFC will charge low prices for
their fitness packages which will help them to attract the customers and increase the sales revenue
of their firm. Therefore, all these are considered to be some major factors which will provide a
successful platform to their business unit. Therefore, CFC will needs to pay a substantial attention
to all these factors (Eriksson, 2012).

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5. APPENDIX
5.1. Estimate the number of customers and expenditure expected
It is assumed that $25 monthly membership will be starting with 10 number of members in
month 1 by increasing it by 20% per month. On whose basis, the estimated number of customers
with their expenditure is as defined below:
Table : Expenses of CFFC
Particulars June July
Augus
t September October November December
Members per month 10 13 16 19 22 27 32
Nutritional Supplements price 20 20 20 20 20 20 20
Unit sold of Nutritional Supplements 200 260 312 374 449 539 647
1 Time class 7 7 7 7 7 7 7
Units sold of 1 time classes 70 91 109 131 157 189 226
4-week program 30 30 30 30 30 30 30
Units sole of 4-week program 300 390 468 562 674 809 970
Salary expenses 5000 5000 5000 5000 5000 5000 5000
MiMiscellaneous s. expenses 7000 7000 7000 7000 7000 7000 7000
Total expenses 12570
1274
1 12889 13067 13280 13537 13844