Marketing Plan for Frank's Fitness

PROJECT: Marketing Plan – Frank’s Fitness
Executive Summary
Brief overview: The context of this marketing plan is the incorporation of
technologies in Frank’s Fitness Regime for increasing the customer base. For this,
hiring the staffs flexible in using social media is a preferred option. According to the
recent trends, customers prefer healthy lifestyle, which is advantage for Frank to
attract high customer satisfaction. The female customers belonging to the age
group of 21-29 years are the targets, who can contribute in increasing the sales
revenue and profit margin. Insurances would be one of the means for catering to
the health needs of the users. Feedbacks would suffice the need of ensuring the
effectiveness of the plans regarding maintaining the pace with the contemporary
brands in the competitive ambience of the market. Frank intends to come up with
something innovative, which enhances the awareness about the prospects of
development.
Introduction
The business Frank’s Fitness is within the Fitness & Gym industry. The business
operates from two premises, one in Norwood and the other located in Prospect.
Frank’s Fitness has been around since 2010, has achieved a steady increase from
2016-2017 in regards to membership numbers.
The fitness and gym industry is a highly competitive. Typical evidence of this lies in
the 2018 industry report prepared by Australian Skills and Industry Committee. The
report concludes that there is significant opportunity for the fitness industry to take
advantage of Australia’s increasing population and rising discretionary income.
Moreover, rising demand of the healthy diets and physical activity is advantage for
the Frank to gain higher customer satisfaction. These continuing trends should
create further demand for fitness products and services in the future.”
Frank’s Fitness offers multiple ‘group classes’ at morning and evening times with
the times between 11:00 to 17:00 available for general use such as weight training,
cycling or treadmill. The materials provided as part of the case study indicate that
the classes are well attended, adequate for the users to avail maximum benefits.
Other information provided also demonstrates a number of flexible options available
to members in regards for payment, length of membership and availability of
venues for members.
Objectives
Frank has indicated he is aiming is after a financial return of $20,000 profit for the
2018 year as his primary objective. This can be achieved through the co-ordination
of a number of differing categories such as:
 Increase of client base (customers)
 Technology advances through staff
 Facilities

The services or products that are offered by Frank’s are of high quality. Proper and
adequate inspections are assistance in terms of the maximizing the sales revenue
and profit margin.
Although the above categories are not exclusive, they are all linked.
Macro Environment
This plan will also cover macro-environment and dynamics that may affect this plan
and in particular change throughout the course of the next 12-18 months during the
implementation of this strategy.
POLITICAL – Currently within Australia, liberal type democracy prevails, which is
estimated to eradicate political instabilities within the country. In this, complying
with the regulations of the State and Federal Government is necessary for
enhancing the efficiency in the operations.
ECONOMIC – SHarp indicates on page 195 (figure 5.3) the details changes in
disposable income across a Low/Medium/High income across households. Analyzing
this data, there appeared to be a significant dip from 2007-08 to 2009-10. Looking
at current data available from the Bureau of Statistics website (2019) shows a
reduction in household income but household expenditure has also increased.
Added to this Rumbach (2013) has highlighted labour costs as being a major impact
on the fitness industry over the last few years.
SOCIAL – As Sharp mentions (p.XXX) there are factors that are changing the way
Australians view their fitness. Sharp quotes that the life expectancy of Australians
are growing. This means there may be an increase in older Australians being more
physically active than previous generations as mentioned in the case study.
TECHNOLGICAL – Many leaders within this industry utilize mass marketing – and
have a strong social media presence due to the progress of technology. Frank’s
Fitness does have a website, however this could be at a detriment as competitors
that have larger franchises have larger pools of resources available.
There are two other aspects which could provide impact:
LEGAL – This aspect is dictated by regulations that are governed by state (SA) and
federal regulations.
ENVIRONMENTAL – Frank's Fitness is operated within his registered premises at
both Norwood and Prospect with the current assumption that Frank adheres to all
current Work Health & Safety standards
Segmentation & Target Market
As per the revelations of Nationalindustryinsights.aisc.net.au (2019), many
organisations segment their target audience and designs its market prior to the
launch of any product or service.

A brief summary of the target segments for consideration are outlined:
GEOGRAPHIC: As Frank has only set up in the two locations outlined above, (with
further geographical information below in the next section) there is a maximum
amount of clientele Frank’s Fitness could achieve based on the number of
competitors/rivals in and around the established areas.
DEMOGRAPHIC:
This industry analysis for participation outlined by the case study identified a broad
target market is outlined in Table 1:
Table 1. Participation
Demographic group % attending any Gym Fitness provider at least once in
past month
18-21 Male 17
18-21 Female 18
>21 to 29 y.o. Male 22
>21-29 y.o. Female 24
>29-40 y.o. Male 22
>29-40 y.o. Female 23
>40-50 y.o. Male 12
>40-50 y.o. Female 13
Over 50 Male 9
Over 50 Female 7
However, this only covers the demographic attributes that Frank has current data
for. Frank has already established a relationship with ‘Patti’ in running classes at a
nearby aged care facility. The target segment that Frank was aiming for is in the 35-
40 year old category and preferably high-income earners.
BEHAVIOURAL: The information related to the facilities are scarce, depriving the
users from the basic information. This scarcity is an issue in terms of gaining an
insight into the behavior of the clients, aggravating the complexities in generating
customer oriented services. However, according to the available information, the
maximum capacity is around the 7:00 AM timeframe.
A key point to be noted here is that Frank has an opportunity to adopt and change
any existing strategies to meet the business’ needs.
Competitors/Issues Analysis
MORE DETAIL
The gyms in the Prospect areas are the major competitors of Frank. Along with this,
the other gyms in the neighborhood of Frank intensifies the competition. The
bargaining power of the buyers is higher, as they prefer healthy lifestyle. New
entrants in the Software and Services is assistance in causing the advent of
innovation in the gym equipment. Low pricing strategy is helpful in generating
values for the investment made by the customers. Frank needs to take care of this
aspect for gaining large scale customer attraction. Blakeman (2018) argues that