Development of Marketing Plan for Fitlife Health Club

This paper presents the marketing plan development for Fitlife Health Club, including SWOT analysis, PEST analysis, GAP analysis, BCG growth-share matrix analysis, and five forces analysis. The paper aims to provide a blueprint for the company to achieve its objectives and goals.

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DEVELOPMENT OF MARKETING PLAN

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Table of contents
1.0 Introduction..........................................................................................................................3
2.0 Assessment task 1- Development of the marketing plan.....................................................3
2.1 Marketing audit....................................................................................................................3
2.1.1 SWOT analysis..............................................................................................................3
2.1.2 PEST analysis................................................................................................................4
2.1.3 GAP analysis.................................................................................................................5
2.1.4 BCG growth share matrix..............................................................................................6
2.1.5 Five forces analysis.......................................................................................................8
2.1.6 Evaluation of the marketing opportunity option...........................................................9
2.2 Development of feasible strategy.......................................................................................10
2.3 Plan achievable marketing tactics......................................................................................11
2.3.1 Part A...........................................................................................................................11
2.3.2 Part B...........................................................................................................................12
2.3.3 Part C...........................................................................................................................12
2.3.4 Part D...........................................................................................................................13
2.4 Measuring marketing effectiveness................................................................................14
3.0 Assessment task 2- Presentation........................................................................................14
3.1 Presentation....................................................................................................................14
4.0 Conclusion..........................................................................................................................14
Reference..................................................................................................................................14

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1.0 Introduction
A marketing plan is a set of the document for the company that includes the analysis of
different analyses of the market. The marketing plans showcase the efforts or prospective
strategies that would allow the organization to achieve the objective and the goals of the
organization. A complete marketing plan considers different parts of the organization carries
out a number of analyses. This also provides the manager a blueprint which is important to
lead the company towards success. This paper furnishes the marketing plans and the analyses
for the company of Fitlife. Fitlife is a privately owned Australia based organization that
provides fitness and health facilities to the customers of the market. This company is the
leader in the market due to the variety it has in terms of sports and fitness requirements. The
aim of this paper is to present different activities related to the company that is included in
the marketing plan of the company.
2.0 Assessment task 1- Development of the marketing plan
2.1 Marketing audit
2.1.1 SWOT analysis
SWOT analysis is one of the widely used methods to understand the strengths and the
weaknesses of the organization. The SWOT analysis for the Fitlife health club is presented
below:

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Internal
Strengths Weaknesses
 The key strength of the company is
that it is well known among the
potential customers of the market.
 The health and wellness
programmes of the health club use
state of the art equipment and
technology (Ambat et al. 2017).
 The health clubs are spread across
uniformly.
 The health clubs are full of staffs
and trainer to help the members of
the club.
 One of the unique offerings of the
health club is that it provides cares
for the elderly and kids so that their
parents or the family members can
train without any problem.
 The staffs and the helpers in the
clubs are highly experienced and
full of past records.
 The main weakness of the health club
includes the absence of direct
marketing strategies for foreign
markets.
 The structure of the business is very
costly.
 The clubs of the company still does
not have a health bar which does not
allow it to gain a competitive edge
over the rival players of the market.
 The cost of operation reflects directly
on the high prices and hence attracts a
lower number of members compared
to the other players of the market Bly
(2015).
 The club is also not much active in
online platforms and hence losing on
some of the opportunities.
Opportunities Threats

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External
 There exist opportunity in terms of
future demand as people are
becoming more health conscious
than before.
 The nationally recognized high-
quality personal trainers can
increase the credibility of the
services of the club.
 The management of the club can
use the Iron Man loyalty card
programme in order to retain few of
the members of the market.
 Physiotherapy is one of the most
demanded services, development of
which can allow the clubs to earn
more revenue.
 The most important threat for the
health club is the presence of other
fitness clubs which provides their
services in lower costs.
 Apart from that, there are 24/7 open
clubs in the market that attracts a
sizable number of members of the
market.
 The rapid changes in the technology
and processes are threats for the
company
 The online contents are becoming a
substitute for the services of the health
clubs.
 The increase in the demand for
healthier lifestyle among the
Australian citizen may attract other
international players.
2.1.2 PEST analysis
PEST analysis provides the management the information regarding the impacts of external
factors on the operation of the company. The PEST analysis for the Fitlife health club is
presented below:
Elements Factors
Political  The policies and the decisions of the government have significant
impacts on the operation of the health club.
 The changes in standards, price guidance can increase the cost of
operation for the Fitlife health club (Chaffey, 2016).
 Again, Subsidies from the side of the government in order to boost
fitness can increase the demand for the services of the health club.
 The contract laws bounds the services providers to ensure secured
services which can enable the members to enjoy enhanced services.
 The privacy laws are mandatory for the Fitlife health clubs, breach of

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which can put the company in trouble.
Economic
 The per capita income of the country is increasing steadily since the
year 2010. This increase is also increasing the preferences of the
citizen to live a healthier life.
 The whole fitness industries are becoming an attractive market for the
health trainers. Therefore the operation of the Fitlife health club is
generating employment for the people of the country.
Socio-
Cultural
 Around 25% of the overall citizen of the country is obese and hence
there is a great opportunity for the Fitlife health club to flourish in the
market (Davis et al. 2018).
 There have been a number of national and international TV shows
which have increased the demand for health and fitness services.
 The different occupational structure of the Australian citizen reflects
on the high demand for 24/7 open health clubs.
 The demand for the personal trainer depends on the personality,
experience and the qualifications.
Technologica
l
 The emergence of technology has somewhat reduced the demand for
health and fitness service provided by the health clubs.
 The studies have shown that the apps and the online resources only
increase the knowledge of members (De Pelsmacker et al. 2018). They
still combine their knowledge with the services of the fitness clubs
such as Fitlife health club.
 The emergence of new technology and the adoption practices of the
other clubs of the market compels Fitlife health club to use
technologies in order to improve the experiences of the customers of
the market (Westwood, 2016).
 The rapid changes in the technology and the dependency of the
citizens on the technology further pressurize the management to
introduce internal competencies such as fit bit trackers to measure
performances.
2.1.3 GAP analysis
The GAP analysis is the gap between the current operational status of an organization and its
desired goals. The GAP analysis for Fitlife health club is presented below:

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Marketing Objective Gap Actions Bridging the Gap
The development of health
bar in the most revenue
generating and competitive
health club of the company
within six months.
The company still does not
have the health bar whereas;
the rival players of the
market already have one.
The management can
immediately sanction $20000
in order to launch the health
bar in one of the health clubs
based in North Sydney.
The provision of
physiotherapy services to
the members and
nonmembers of the gym
having at least two
professional
physiotherapists on board.
The company still considers
this as the future opportunity
which it can make the most
in the future.
In some of the health clubs in
North Sydney, the
management can appoint a
two-member team of a
physiotherapist. One among
them can be hired based on
the experience and one can
be hired for internship
purposes (Deshpande et al.
2017)
. This can help the company
to reduce the cost at its initial
stage and hence provide
introductory solutions for the
client to get the attraction.
Registration in order to
become a training
organization for the trainee
health professionals and
service providers.
The company currently hires
experts based on their past
records and the
qualifications. However, it
does not have the
registration to provide
training to the budding
health professionals.
The management can
introduce certificate III in
fitness, III in sports trainer
and diploma fitness in urgent
basis taking the requisite
permission for the
introduction of the training
courses.
Introduction of the Iron
man loyalty card
programme to retain the
existing members of the
The management of the
company has not yet
introduced the Iron man
The card programme needs
to be introduced along with
the health bar so that
discounts can be offered to

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health club. loyalty card. the regular members of the
health clubs.
2.1.4 BCG growth-share matrix
This matrix provides the business managers the information regarding the best performance
of the products and hence the importance that the management should give to the portfolio of
products and the services of the organization. The BCG growth-share matrix analysis for
Fitlife health club is presented below:
Market growth
rate
(Cash Usage)
Relative market share
(Cash generation)
High Low
High Stars Question marks
 Children
exercise
programme
 Elderly exercise
and diet
programmes
 Fat burner
 Body pump
 Body attack
 Zumba
 Distance
coaching
 Health bar
 Iron man car
programme
 New innovative
fitness and
health
programmes.
 Physio gym
Low Cash cows Dogs
 Youth
swimming
classes
 Recreational
activities
 Personal weight
training
 Boxing
 Pilates
 Yoga
 Kendo

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 Cycling
 Full body lift
 Martial arts
From the analysis and the current positions of the health clubs, it is important to understand
the cash cow products and services are well performing. However, the management needs to
make sure these services are always updated as per the standard. The product falling into the
category of starts which requires a high amount of cash and also generates a high amount of
cash for the health club can be dropped (Filiatrault and Chebat 2015). Activities such as a fat
burner, body pump, body attack are redundant and hence provide the management high cash
availability if discarded. This amount of fund can be used for the development of another
product called the physio-gym. The demand for this product is going to skyrocket in the near
future and provide the management an advantage in the future. Apart from that, although, the
health bar is high in cash usage and low in a generation, other rival companies of Fitlife
health clubs have introduced the products and operating successfully and hence needs to be
introduced in order to meet the objectives of the organization (Fine, 2017).
2.1.5 Five forces analysis
This analysis of the market is related to the competitiveness and the behaviors of the rival
players of the market. The five forces analysis for the Fitlife health club is presented below:
The Threat of New Entry
 The new entrant can use
technologically advanced
equipment and processes.
 Complete information
available to the new
entrant regarding the
behaviors of companies
and the customers of the
market.
 Economic pricing
strategies can pose a
threat to Fitlife health
clubs.

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 The increase in the
number of sellers and
hence less power to
Fitlife to control the
market (Lopes, 2015).
Supplier Power
 Increasing number of
suppliers in the market
 Having the same quality
of fitness and wellness
programmes such as that
of Fitlife health clubs
Power to improve the
quality of the overall health
and fitness programmes
(Verma, 2017).
 Profit-seeking nature of
the rivals in order to
survive in the market.
Competitive Rivalry
 The number of the health
club is increasing.
 Each of the health clubs
of the market is becoming
bigger in size and hence
loyal members.
 The clubs are working to
provide differentiated
products to the members
in order to retain the
existing members and
attract the new ones.
 The high growth rate of
the industry as a whole in
paving the way for fierce
rivalry among the health
clubs of Australia.
Buyer Power
 Preference to lead a
healthy life and this
increasing demand from
buyers’ side.
 Power to choose from a
lot of close substitute
products of the market.
 Switching to other
products of the market is
easier.
 Collectively the buyers of
the market can control the
prices of the market.
Threat of Substitution
 The emergence of online
resource and apps.
 Low price services
provided by other
companies of the market.
 The relative quality of
substitute services of
Fitlife health clubs.
 The aggressiveness of
the other players of the

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market to capture the
market share.
2.1.6 Evaluation of the marketing opportunity option
Marketing Opportunity
Option
Feasible
? Yes/No Rationale
Strategic alliances and
cooperative business models NO
The market is in its initial stages and it is
still increasing. Therefore, each of the
players of the market would look to
increase respective market share beating
the rivals.
New products or services to
target specific markets YES
The Fitlife health club has goals to
introduce innovative fitness programmes
and hence it’s a feasible market
opportunity.
Greater market penetration with
existing products or services YES
As per the external analysis, the customers
still prefer offline programmes over the
online resources and hence with proper
marketing goals, this strategy is feasible for
the health club.
Take-overs NO
There are few of the goals which need to be
made for Fitlife health club. Therefore
takeovers, at this point would not be
beneficial for the company.
New businesses and franchising NO
Although new business is one of the goals
of Fitlife health club, the franchising model
is not a future goal of the organization and
hence the opportunity is not feasible
(Sodagar et al. 2017).
Introduction of certification
programmes
YES The goal of Fitlife health club is also to
develop new professionals. Through the
development of training courses, the
company can meet its goals and the

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objective and hence it’s feasible.
Investment in the marketing YES
The organization has the goal to increase
the membership in the next few years and
hence opportunity to invest in the market is
feasible that will help the organization to
attract new members of the market.
Attractive investment YES
This marketing opportunity is feasible as
the organization has the goal to make a 1:1
owner’s equity to borrowed funds. The
advantage of this option is that it will allow
the organization to introduce products that
are initially high in cash usage and low in
cash generation such as the physio gym,
health bar and loyalty card (Lopes, 2015).
2.2 Development of a feasible strategy
Marketing
Mix Strategy Rationale Alignment
Product
 Enhance the
product variety
 Bring
innovation in
product
designing
There are few of the
products which are still
missing from the
portfolio of the
company. These are
limiting the capabilities
of the organizations to
capture the market
(Smith, 2016).
The goal of the
organization to retain
new members can be
fulfilled through this
strategy.
Price  Premium
pricing strategy
 Price Skimming
for the cash
chow products
of Fitlife health
club.
The overall premium
pricing strategy is
important to operate
with the high structural
cost of the health club.
The new products to be
introduced are expected
The maintenance of
premium pricing is one
of the objectives of the
organization which gets
fulfilled. Apart from
that, the price
skimming for the

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to become highly
demanded and hence
price skimming will
allow the company to
increase revenue.
selected cash cow
products of the health
club can ensure the
fulfillment of the
objective of the
company to increase
the gross margin.
Promotion  Use of
contemporary
processes to
increase the
awareness even
more.
 Introduction of
new and
differentiated
services in order
to maintain the
USP.
This strategy is
rationale due to the fact
that this would increase
the number of members
of the health club
(Lopes, 2015). Apart
from that, new product
development may also
contribute to the
retention of the
customers of the market
as well.
The strategy is also
aligned with the goals
and the objective of the
organization. Aim to
increase the member by
10% will also be
fulfilled through the
application of this
strategy.
Placement  The use of
advanced
marketing
analysis such as
consumer
analytics
(Papadopoulos
et al. 2017).
 Use of
technology to
attract more
elderly
members of the
health club of
The organization has
the aim to introduce
physio gym for which
the main target market
is the elderly customers
and hence the strategy
is rationale(Lopes,
2015). Apart from that,
use of advanced
analytics is important to
understand deep
insights regarding the
market.
The strategy is aligned
with the goal of the
company in terms of
introducing innovated
health and fitness
programmes. The
information from the
consumer analytics will
allow the management
to make modifications.

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the company.
2.3 Plan achievable marketing tactics
2.3.1 Part A
Product
Tactics Owner Cost Schedule Accountability
1. Introduce a
number of
programmes
The
management $15000 2 months
2. Invest in
research and
development.
The
management $2500 2 months
3. Post delivery
feedback
The marketing
department $2000 3 months
Price
Tactics Owner Cost Schedule Accountability
1. Premium
pricing for
unique
services
The
management $0 12 months
2. Reduction of
the price after
a certain time
for cash cow
products.
The
management $0 3 months
3. Maintain a
stable price
level
The
management $0 12 months
Promotion
Tactics Owner Cost Schedule Accountability
1. Consumer
analytics
The marketing
department $3500 2 Months

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2. Social media
analytics
The marketing
department $2500 1Month
3. Digital
marketing
The marketing
department $2100 2 Months
Placement
Tactics Owner Cost Schedule Accountability
1. Customer
segmentation
The
management $1000 1 month
2. Target
market
The
management $1500 1 month
3. Differentiated
service
The
management $0 1 Month
Grand Total (Total Cost) (Total
Timeline)
2.3.2 Part B
Introduction: This phase is the introductory phase where the products and the services of
Fitlife health club are introduced to the market. In this phase, the organization uses a price
skimming strategy for the cow cash product and premium pricing for the unique programme
of the health club (Ha, 2016).
Growth: This phase of the product lifecycle for the Fitlife health club is where the demand
increases exponentially over the time (Lopes, 2015). In this growth stage, the prices of the
cow cash products need to be reduced in order to maintain healthy revenue for the
organization.
Maturity: In this phase, the main goal of the management of the organization is to increase
the number of loyal customers of the company. Products such as the loyalty card would help
the organization retain customers and attract more (Koskinen, 2016).
Decline: This is the phase when the products of the organization will lose start losing its
demand due to the saturation. The aim of the organization to invest in the research and
development thus help the organization through the life cycle of the products of the health
club.
2.3.3 Part C
Introduction

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Tactics Owner Cost Schedule Accountability
1. Include
modifications
The
management $1000 1 month
2. Post delivery
feedbacks
Marketing
department $1250 1 Month
Growth
Tactics Owner Cost Schedule Accountability
1. Brand
promotion
Marketing
department $1500 1 month
2. Advertisement Marketing
department $1000 1month
Maturity
Tactics Owner Cost Schedule Accountability
1. Nonprice war Marketing
department $2500 2months
2. Product
adjustment
The
management $1000 1months
Decline
Tactics Owner Cost Schedule Accountability
1. Research and
development
Marketing
department $4000 7 Months
2. Customer
Feedback
Marketing
department $1500 1 Months
Grand Total (Total Cost) (Total
Timeline)
2.3.4 Part D
Legislation, codes, and regulation: The tactics used by the management of the Fitlife health
club is done as per different rules and regulations such as data privacy act 1988 (Kennedy,
2017). Apart from that, the codes of practices to include the views of the customers of the
market have also been considered in the tactics used by the management.

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Discrimination and legislation: The anti-discrimination act of 1975 has also been followed
while implementing the tactics for the organization. The management has made sure none of
the strategies of the organization has biases towards any race or culture.
Privacy: The management of Fitlife health club ensures that all the strategies use the data of
the members anonymously and organization protects the data under the regulations Lidstone
and (MacLennan, 2017). The feedback from the members of the health clubs has also been
kept secret.
Ethical principle: The management of Fitlife health club has made sure all the tactics are
designed keeping in mind the interest of the members of the clubs (Koskinen, 2016). Apart
from that, members were not pressurized to give feedback for the development of the tactics
and the strategies.
Work health and safety: The management of the health club understands that the health and
the safety of the workers and the members are the utmost priority. Adhering to proper
legislation, the management of Fitlife health club make sure to include the needs of the staffs
during the decision making.
2.4 Measuring marketing effectiveness
Marketing Metric Example of Implementation
Return on market
investment
Return on Marketing Investment (ROI) =
(Sales Growth – Marketing Cost) x 100 / Marketing Investment
Incremental sales Incremental Sales ($) = Total Sales ($) - Baseline Sales ($)
Brand awareness
metrics
The number of followers on different social platforms. Apart from that,
the number of search and mentions on social media can also use as the
reading.
Customer attrition (Customers lost in a given time period/Total number of
customers)x100
Goal completion
rate
Goal Completion Rate= Number of Web Visitors / Number of Goals
Completed
3.0 Assessment task 2- Presentation
3.1 Presentation
Refer to the PPT

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4.0 Conclusion
Therefore, the study shows the marketing plan for the Fitlife health clubs. As per the study of
the paper, there are few of the goals and objectives which the management of the company
wants to fulfill. However, their current status which has been found from the SWOT and the
PEST analysis shows that goals are not being achieved and there are few of the gaps which
the management needs to fill. The paper also shows the product portfolio analysis of the
Fitlife health club as well. As per the analysis which is shown using the BCG matrix shows
there are some of the services or products which is there in the objective of the organization
that requires high cash usage. The five forces analysis also shows that the competitors are
expected to increase in the future due to the increase in the demand for fitness. Based on the
analysis and the capabilities of the organization, the paper also showcases the tactics and
strategies which are required to improve the financial performance of Fitlife health clubs.
Lastly, the paper concludes with the presentation of the marketing plan of the company.

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