EXSC 369 Marketing and Promotion of Sport and Exercise

Marketing and promotion of sport and
exercise
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TABLE OF CONTENTS
Executive summary.........................................................................................................................3
Introduction......................................................................................................................................3
Situational analysis..........................................................................................................................3
Organizational Description..........................................................................................................3
SWOT..........................................................................................................................................4
Pestle analysis..............................................................................................................................5
Target market analysis.....................................................................................................................6
Smart objectives...........................................................................................................................6
Marketing mix.................................................................................................................................7
Sponsorship proposal.......................................................................................................................9
Advertisement for local newspaper...............................................................................................11
Implementation and control...........................................................................................................12
How to evaluate each outcome..................................................................................................12
Budget/cost................................................................................................................................12
REFERENCES..............................................................................................................................13
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EXECUTIVE SUMMARY
Marketing plan plays most important role in case of every organization. The present
study is based on development of marketing plan for the new business named The Fitness Expert
that will render services in the market of Australia. The mission of the business will be to deliver
innovative fitness and lifestyle programs. Main strengths will be qualified trainers, effective
wellness programs etc. Inflation rate in Australia is declining as compared with the past and the
overall economy of Australia is developed. So, in this case it will be beneficial for the Fitness
Expert to render services as more customers can easily afford services.
The customers’ trends and preferences keep on changing rapidly where people are
becoming more health conscious. The new business will be mainly targeting people who fall
under the age group of 25-45 years. The first and foremost objective of The Fitness Experts will
be to emerge as a leading gym in the country within the period of next five years. Traditional and
modern sources such as an advertisement in newspapers, television, and magazines will be used
to create more awareness among people in the market. The overall cost will be $135 dollar in
which the Fitness expert will carry out all the marketing activities
INTRODUCTION
In the modern era, development of effective marketing plan is essential for the long term
growth and sustainability of businesses. It can be expressed that the marketing plan assists
organizations to identify factors such as aim, objectives, target market and marketing mix which
it is going to use. The present marketing plan is linked with opening a new gym business in by
the name of The Fitness Expert. The new business will be offering various types of health and
fitness related services to people in the country. Furthermore, the aim of present business will be
to enhance the health and well being of target market. Apart from this, objective of The Fitness
Expert will be to provide accurate and satisfactory services at convenient or affordable prices.
SITUATIONAL ANALYSIS
Organizational Description
The Fitness expert will render all its services on the wider basis where its main motive
will be to render fitness services to its target market as per their real expectations in the market.
Further, the businesses will undertake all the advanced machines and tools through which fitness
services will be rendered to the target market (van Scheers & Makhitha, 2016). In the starting, 25
staff members will be hired who will be highly experienced in this field. The gym will be located
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in the main location of Australia where main focus will be on attracting a large number of
youngsters who generally prefer to access fitness services in large amount.
The Fitness expert has mainly designed fitness services for the people who are highly
interested in getting results without spending hours and hours at the gym (Veríssimo &
McKinley, 2016). It is possible for the target market to access service of the business easily as it
will render services 24*7 hours. All the trained experts in the gym will provide proper assistance
to the people, and this will surely contribute to enhancing in their satisfaction level in best
possible manner.
The main purpose of The Fitness expert will be to inspire people to live the better life.
The main reason due to which services of the Fitness expert will be unique is that all the
machines that will be used for fitness purpose will be quite advanced and they possess the
capability to support people to become fit for a longer period of time (Sheth & Sisodia, 2015).
Mission: To deliver innovative fitness and lifestyle programs with the assistance of our friendly
and professional staff that is surely committed to enhance the quality of your life.
Vision: To become wellness and health based centre and to be well known in the market for
exceptional member experience.
Values
 We value our target market
 We value our professional expertise
 We value the range of services delivered to customers
SWOT
Strengths
 Qualified and experienced trainers
 Adoption of result oriented approach that allows in attracting cusotmers
 Effective wellness programs
 Advanced machines for fitnesss purpose
 Services are acccessible for all the type of people
Weaknesses
 Newly estbalished in the market
 High cost of attracting business clients
 Inability to develop business model as per the market circumstances
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Opportunities
 Rising fitness market at faster pace
 Nearby no such gyms are present that are offering high quality services
 Opening franchises in near future
Threats
 Change in the taste and prefernece of the target market can hamper overall produtivity of
the business
 Increasing competition in the market
 Economic downturn that can influece the purchaisng power of the people in the society
Pestle analysis
Political: In country like Australia the tax rates keeps on changing rapidly and it is increasing.
So, the increase in tax rates will negatively influence the Fitness Expert as the business will pay
more taxes (gyms, 2014). Apart from this government of Australia is stable and this will be
beneficial for the business as laws and regulations for the fitness centre will not be changed
rapidly and they will be stable. Further, health and safety regulations are quite strict in Australia
and in turn regard new business is required to be up to date regarding the regulations so as to
reduce the chances of injury claim.
Economical: Inflation rate in Australia is declining as compared with the past and the overall
economy of Australia is developed (Percy, 2014). So, in this case it will be beneficial for the
Fitness Expert to render services as more customers can easily afford services of the gym due to
high purchasing power.
Social: The customers’ trends and preferences keep on changing rapidly where people are
becoming more health conscious. So, in this case it will be favorable for the new business but the
main thing required is to be up to date regarding the trends in the market.
Technological: Advancement in equipments takes place rapidly. So, in this case the Fitness
expert is required to use new equipments and other type of machines for satisfying its customers
need (Pasquier & Villeneuve, 2017).
Legal: Laws and regulations linked with health and safety, payment of taxes etc will influence
overall operations of the Fitness expert. So, it is necessary for the business to ensure that taxes
are paid properly along with other duties.
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Environmental: Practices of gym business have no such adverse impact on the surroundings. So,
this factor will not influence activities of the Fitness expert. On the other hand, in order to
support environment various activities will be undertaken by the Fitness expert such as planting
trees, developing programs that are associated with the environmental protection (Luxton, Reid,
& Mavondo, 2015).
TARGET MARKET ANALYSIS
In simpler terms, target market can be defined as the group of people selected from
overall population to market the products and services offered. It can be expressed that selection
of target market is essential for growth and development of companies. The rationale behind this
is that the selection helps in developing more effective strategies and action plans to attract
customers and achieve the desired volume of sales and profitability (Kleinaltenkamp, Plinke, &
Geiger, 2016). In the context of The Fitness Experts, it can be asserted that the new business will
be mainly targeting people who fall under the age group of 25-45 years. Here, The Fitness
Experts will focus on attracting individuals who are concerned about their health and well being.
In addition to this, people suffering from obesity and other related issues will be also targeted by
the new business enterprise.
Here, both males and females will be targeted. In more specific terms, individuals who
fall under the middle and higher income level of the society will be targeted by the brand.
Demographic variables are going to be the critical factor which the new business will be using at
the time of defining its target market (Hill, O'Sullivan, O'Sullivan, & Whitehead, 2017).
Smart objectives
 The first and foremost objective of The Fitness Experts will be to emerge as a leading
gym in the country within the period of next five years. The new business will be
looking forward to deliver the most satisfactory and result oriented services to all the
members (Hastings & Domegan, 2013). To accomplish this objective, customer
feedback system will be implemented, and the brand will be working seriously on the
feedbacks and reviews provided by the customers.
 Another objective of The Fitness Experts will be to increase its volume of sales by 20%
and profitability by 25% every year. Here, the company will be looking forward to carry
out aggressive marketing and promotion of its products and services (Gummesson &
Gummesson, 2017). The body transformations of gym members will be promoted on
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social media such as Facebook and Instagram to make people aware of the effectiveness
of The Fitness Experts services.
MARKETING MIX
 Product - The Fitness Experts will be offering high quality and fitness related services to
the people in the target market. The business will ensure that different types of modern
equipment are available for the customers. Instead of offering standard gym services, the
new business will be focusing on providing customized and personal fitness services to
all its customers. Here, different schedules will be developed, and The Fitness Expert will
ensure that only ten members will be allowed in the batch. In addition to this, separate
gym areas will be designed for male and female clients (Ewing & Ramaseshan, 2015).
Products such as power yoga, aerobics, spa, cycling, and dance will be also offered by the
new business. The member of the gym will be also provided with separate locker
facilities. A small section of pro-shops will be created near the gym areas from where the
members will be able to purchase products such as energy bars, supplements, energy
drinks, beans, sprouts and different types of gym related accessories (Armstrong, Kotler,
Harker, & Brennan, 2015). Furthermore, feedback from customers or members will be
encouraged every month for the purpose of carrying out improvement in the products and
services offered by The Fitness Experts. The benefit of this is that continuous
improvement in products and services will allow the new business to generate a high
degree of satisfaction among all its clients or members. It will provide the business with
an opportunity to attract new customers and retain the old ones in the best possible
manner.
 Price – In the context of price, it can be stated that a moderate or convenient pricing
strategy will be used. The rationale behind using the mentioned above pricing strategy is
that it will help in attracting more and more customers during the initial stage. At present,
the competition among businesses operating in the Australian Fitness industry is highly
intense, and thus, The Fitness Experts will face issues in attracting customers if it adopts
high or premium pricing strategy (Gummerus, Gummerus, von Koskull, von Koskull,
Kowalkowski, & Kowalkowski, 2017). The people in target market will be more
interested in buying products and services of well-established gym businesses instead of
buying services of a gym which has been recently started. It can be stated that offering
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high quality of services at convenient prices will allow The Fitness Experts to penetrate
the existing fitness industry of Australia more effectively (Ang, 2014). The new business
will also use of pricing tactics such as discounted pricing and special offers during the
initial stages. However, it can be critically argued that the brand will increase its
membership fees by 5% every year.
 Place – The Gym will be located in three different locations in Australia, and these
locations are going to be Melbourne, Sydney and Perth. The rationale behind selecting
these locations is the income level of people living in these locations is very high. Here,
the individuals do not have issues in spending their money on health, well being and
fitness (Chernev, 2014). Thus, The Fitness Experts will not face issues or challenges in
attracting the desired number of customers during the initial stage. The businesses will be
also looking forward to expand its gyms in other location of the country with the passage
of time.
 Promotion – In the today’s corporate scenario, promotion of products and services has
become crucial for companies in terms of sustaining in the highly competitive
marketplace. The reason why the promotion of services and products is important is that
it helps in creating awareness among people in the market. At the same time, it allows
companies to achieve the desired volume of sales and profitability. The Fitness Experts
will be using both traditional and modern techniques of promotion (Carins & Rundle-
Thiele, 2014). Here, traditional sources such as an advertisement in newspapers,
television, and magazines will be used to create more awareness among people in the
market. In addition to this, modern promotional tools such as email, social media and
internet will be also taken into consideration by the new business. The rationale behind
using a mix of promotional tools is that it will help in creating awareness among mass
audience in a very cost-effective way.
Media management plan
Media type Usage
Social media Publicity of the gym products and services
will take place through social media where
facebook, twitter and other sites will be
used. The main reason behind undertaking
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this source is that majority of the people
have access to social networking sites and
they can easily gain knowledge about the
products (Carins & Rundle-Thiele, 2014).
It will be beneficial at the time of crisis or
emergency where Fitness expert can easily
attract new customers through promotional
messages etc.
Print media (Newspaper) Promotional messages will be shared
through advertisement on newspaper where
posters will be shared
Television Through television customers will be
communicated about the existing services
of the gym
Banners and ads Banners will be placed in different areas
like shopping malls and other crowded
areas so that customers will know about
Fitness Expert services.
Note: The entire media management plan will be managed by the sales professionals of
the Fitness Expert
 People – During the initial stage, The Fitness Experts will be carrying out its business
operations with a team of twenty-five fitness experts. Here, the brand will be hiring
trained and experienced experts to deliver accurate and satisfactory services to clients. In
addition to this, both males and females will be employed to provide desired products and
services to gym members (Blakeman, 2014). The Fitness Experts will also emphasize on
training sessions to staff members so that their skills set can be enhanced and they can
gain knowledge about the use of modern machines and fitness equipment (Atwal &
Williams, 2017). The training sessions will also allow staff members to understand
customer’s fitness needs and deliver high quality of services according to the same.
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SPONSORSHIP PROPOSAL
For sponsorship purpose the Fitness Expert will attract and target many sponsors. Mainly
businesses and large clients will be targeted for sponsorship purpose and this will surely satisfy
the financial requirement of the business.
Why sponsor The Fitness Expert
The main motive of the Fitness Expert is to bring the entire community together and undertaking several
activities through which fitness of people can be enhanced easily. The gym provides unique form of
environment for adults and youngsters of any age where they can easily try different type of physical
activities. Along with this people can easily learn about different things such as the nutrition level in the
body and other form of diet related knowledge. Depending on the overall sponsorship package selected,
you will have direct access to brand and product exposure within the venue, on the social media along
with the other marketing materials. All the main sponsors will be perceived as supporters of different
form of activities such as health, wellness and fitness.
Sponsor Packages
Title $22000
(National)
Large signage all around the venue
Exposure to social media
Product promotion with the help of our website and
social media channels
Branding on the fitness accessories and clothes
Presenting $16000
(Regional)
Able to promote the entire product range
throughout the Fitness Expert venue
Exposure to social media
Will be mentioned as the sponsor of the Fitness
Expert on television, newspaper and other form of
advertisement channels selected.
Note: The investors and other form of businesses will be attracted for sponsorship by
highlighting the unique features of the gym such as high quality equipments, machines,
fitness training etc.
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GETTING INTO SHAPE IS NOW
SUPER CONVENIENT
BE THE PART OF MOST UNIQUE GYM IN THE COUNTRY
“THE FITNESS EXPERTS”
GRAND OPENING ON
1ST NOVEMBER 2017 (10:00 AM)
FEATURES
PERSONAL TRAINERS
24X7 SERVICES
CUSTOMIZED DIET PLAN FOR EACH MEMBER
GURANTEED TRANSFORMATION IN 6 MONTHS
HURRY UP AND GET 25% OF ON ONE YEAR MEMBERSHIP F
ADVERTISEMENT FOR NEWSPAPER
ADVERTISEMENT FOR LOCAL NEWSPAPER
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IMPLEMENTATION AND CONTROL
How to evaluate each outcome
Each outcome will be evaluated on the basis of results that will be obtained by the Fitness
Expert and in turn it will assist in knowing whether the overall performance of the business is not
up to the mark or not.
 Advertisement newspaper, television magazine that will be undertaken for marketing
purpose. Outcome related to these areas will be judged on the basis of level of awareness
where through market research people will be asked like whether they know about
services of the Expert Fitness or not (Belch, Belch, & Powell, 2014). The outcome will
be judged by the sales professionals of the business.
 Email, social media and internet will also be adotped for promotion purpose. So, on
social media channels feedback will be taken from the main target market of the business
so as to know whether they are aware about the service of the Expert Fitness or not. This
outcome will also be judged by the sales professionals of the company.
Budget/cost
The overall cost will be $135 dollar in which the Fitness expert will carry out all the
marketing activities. In this activities advertisement will take place on different sources such
as television, newspaper etc. The fitness Expert business will indulge into monitoring
practice on continuous basis where it will be ensured whether the financial resources are
utilized efficiently or not.
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