BSBMKG502 - Establish and adjust the marketing mix

School of Vocational Business Education
Assessment Record and Cover Sheet
Assessment information
Unit(s) of competency: National code: BSBMKG502/ BSBMKG419
National title: Establish and adjust the marketing mix /
Analyse consumer behaviour
Qualification: National code: BSB50215
National title: Diploma of Business
RMIT Program:
Course Code:
C5358
MKTG7886C / MKTG7976C
Assessment Duration and/or
due date
See Canvas
Student to Complete:
Student Name:
Student Number:
Student Declaration:
I declare that in submitting all work for this assessment I have read, understood and agree to the
content and expectations of the Assessment Declaration (See Canvas/RMIT Website).

Marketing Plan
Report to Senior Management
1.Title Page
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Contents
1. Title Page..................................................................................................................................................2
2. My Business..............................................................................................................................................4
Type:......................................................................................................................... 4
Vision:........................................................................................................................ 4
Mission:..................................................................................................................... 4
Business owner(s):........................................................................................................ 4
Products or Services:..................................................................................................... 4
3. Marketing Objectives...............................................................................................................................5
Product(s) Development:................................................................................................ 5
Product Distribution:..................................................................................................... 5
Product Pricing:............................................................................................................ 5
Product Promotion:....................................................................................................... 5
Customer Service Levels:................................................................................................. 5
4. Market Overview......................................................................................................................................6
Target Market:............................................................................................................. 6
Market Size:................................................................................................................ 6
Market Potential:.......................................................................................................... 6
Market Structure:......................................................................................................... 6
Market Trends:............................................................................................................. 6
Sources of Information:.................................................................................................. 6
SWOT Analysis:............................................................................................................ 7
5. Competitors..............................................................................................................................................8
Competitor profile:........................................................................................................ 8
Direct Competitors:....................................................................................................... 8
Indirect Competitors:..................................................................................................... 8
Market Share:.............................................................................................................. 8
Strategic Alliances:........................................................................................................ 8
6. Market Segmentation..............................................................................................................................9
Customer Needs:.......................................................................................................... 9
Customer Characteristics:............................................................................................... 9
Customer Behaviour:..................................................................................................... 9
7. Marketing Mix Strategies.......................................................................................................................10
Levels and Types:........................................................................................................ 10
8. Marketing Action Program.....................................................................................................................11
Product or Service:...................................................................................................... 11
Marketing Communication:........................................................................................... 11
Marketing Procedures:................................................................................................. 11
Organisational Structures:............................................................................................. 11
Marketing Objectives Due:............................................................................................ 11
9. Control Program.....................................................................................................................................12
Monitor Marketing Mix Against Performance:....................................................................12
Marketing Budget....................................................................................................... 12
Profit-And-Loss Summary:............................................................................................. 12
Contingencies:........................................................................................................... 12
10. Report..................................................................................................................................................14
Product Development:................................................................................................. 14
The Consumer:........................................................................................................... 14
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Introduction
The report is prepared to discuss about the marketing plan for the health and
fitness club named True Health Fitness gym in Australia. It is one of the major health
and fitness clubs that has provided the best quality health and fitness services at
convenient prices and managed affordable gym memberships as well to facilitate
better management of health and wellbeing for the consumers who are heath
conscious in Werribee (Fitness.org.au 2018). The topic will illustrate about the
marketing objectives to be achieved along with the analysis of market conditions,
company strengths, weaknesses, competitors and how the organization will segment
its market as well.
2. My Business
Type:
True health fitness is a gym, which comes under the health and fitness clubs industry. True health
fitness is a franchise that provides affordable gym memberships, martial arts classes and massages
to average health-conscious consumers in Werribee.
The health and fitness club is basically a well known gym that delivers best quality
health and fitness services and aims at targeting the people in the Weribee area aged
between 15 to 45 years. The health conscious customers are also targeted because
they are mostly concerned with the purchase if products that can fulfil their needs
and preferences and at the same time, facilitate their health and wellbeing (Lovelock
and Patterson 2015). The company thus has a vision to become one of the leading
health and fitness clubs and mission statement revolves around the delivery of
healthy living options a reasonable prices for the customers in Australia. Few of the
products and services delivered by the company are massage therapy items, t-shirts,
sweat suits, active wear items, martial art items, etc.
Vision:
We aim to become the leading franchise in the health & fitness clubs industry.
Mission:
Provide exceptional healthy living options for customers at competitive rates.
Business owner(s):
Products or Services:
List what products or services you will bring to market
Product/Service Description Price
Martial arts Martial arts are traditions of combat Adult:
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practices, which can be used for self-defence. $55/month,
$8.39 including
GST
Child:
$35/month,
$5.34 including
GST
Massage therapy
Massage therapy is the manipulation of soft
body tissues to enhance a person’s health
and well-being.
$40/session,
$6.10 including
GST
T-shirts True health fitness merchandise with the logo
printed on the t-shirt.
$15 each, $1.36
including GST
Sweat suits True health fitness logo printed on the sweat
suit.
$40 each, $3.64
including GST
Child care We will take care of your children while you
workout. Free
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3. Marketing Objectives
As every organizations aim to enhance brand name and image and increase the
customer base, the same is the marketing objective for True Health Fitness gym in
Australia. The major business marketing objectives are to increase the membership
by 1 percent along with the development of sports duffle bags and introducing ne and
healthy protein shake bottles for the members as well. The production distribution
objective include display of products at the front desk to make customers aware
while the pricing is also considered as a major goal that can influence the buying
behaviours of consumers with ease and efficiency. The main objectives include:
 Increase membership by 10%
 Develop a sports duffle bag and a protein shake bottle for the members.
Product(s) Development:
Goal/Objective Description By when
Protein shake bottle Shaker with gym’s logo. January 2019
Sports duffle bag A bag to keep all your belongings in the
same place. January 2019
Product Distribution:
Goal/Objective Description By when
Protein shake bottle Display the product at the front desk. January 2019
Sports duffle bag Display the product at the front desk. January 2019
Product Pricing:
Goal/Objective Description By when
Protein shake bottle $15 January 2019
Sports duffle bag $39.95 January 2019
Product Promotion:
Goal/Objective Description By when
Protein shake bottle Promote through true health fitness’s
website/social media platforms.
December 2018
Sports duffle bag Promote through true health fitness’s
website/social media platforms. December 2018
Customer Service Levels:
Goal/Objective Description By when
Protein shake bottle Provide exceptional customer service. January 2019
Sports duffle bag Provide exceptional customer service. January 2019
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4. Market Overview
Based on various market conditions such as the varied needs and preferences of the
customers and supply of products, it is important for the organization to determine
the target market, assess the size of market and understand its potential and then
deliver the products and services accordingly.
Target Market:
The target market for true health fitness is residents in the Werribee area aged between 15 to 45
who are interested in maintaining an active lifestyle but may not be able to afford expensive
memberships.
Market Size:
We believe this is a good target market area because large amounts of people aged between 15-
45 reside in the area of Werribee. Approximately 23,000 people in Werribee are in that age range.
Market Potential:
Every gym member needs a protein shake bottle to intake protein as it refuels the muscles
depending on whether they take it during or after the workout. The duffle bag is also a handy
product for the members as it carries all the belongings that are needed for the gym, instead of
carrying the items in our pockets which can slip out and could get lost. These two products are
almost essential for gym members and therefore I can definitely say that the market potential
exists.
Market Structure:
The structure of market is defined as the characteristics and features of the organisation that the
company needs to focus on. These include the various aspects that are responsible for influencing
the competition and pricing. It also includes managing the market share to ensure that the
company stays ahead of the competition. Based on the market structure, the characteristics are
understood and the prices are set to make sure that the clients are influenced and sales revenue
increase (García-Fernández et al. 2018).
Market Trends:
The targeted market segment comprises of individuals aged between 15 to 45 years of age and
especially those who are conscious about their health. There have been increased demands for
the protein shakes and sports duffle bags, which has further enabled the organisation to
accumulate greater share in the foreign markets (Shank and Lyberger 2014).
Sources of Information:
Summarise where you obtain market information (Assessment Question 1).
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SWOT Analysis:
List each of your businesses Strengths, Weaknesses, Opportunities or Threats (SWOT).
Analysis
Strengths Weaknesses
 The products and services delivered
are aimed at people who are health
conscious
 State of art facilities including a
spacious gym and quality trainers who
can provide suggestions about the
right product
 Capital intensive allows for adequate
capital source management
 God location of the fitness club in
Australia and skilled trainers
 The financial management is poor
and lacked certain actions needed to
be undertaken for successful
business functions
 High competition in the marketplace
 Lack of training for the trainers,
which often results in degraded
business performance
 Opportunities Threats
 The increased demands for fitness and
healthy lifestyles have created positive
mindsets among the clients to make
purchases
 Growing concerns about health has
increased likelihood for usage of
fitness items and this creates scopes
for the company to improve revenue
prospects
 Scope for global expansion in business
 Threat of substitute products and
services
 Threat of competition
 Threat of new entrants such as active
wear sports items by other
companies
Activity
SWOT weakness/ threat Activity to address weakness/threat Completion date
Poor training
provided to the
trainers
It was found that the clients were sometimes
unsatisfied with the kinds of services delivered
and the reason had been the lack of skills and
knowledge of trainers
10.11.18
Competitive
marketplace
There are times when other companies fared
much well due to higher growth and sales
revenue
12.11.18
Poor management of
financial aspects
The profit and loss statements, balance sheet
and cash flow statement were analysed to
determine the financial condition
15.11.18
Poor customers’
services
The customers’ complaints were ignored and
responses had not been considered to make
necessary changes
20.11.18
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5. Competitors
Competitor profile:
Competitor
Name
Established
date
Size Market
share (%)
Value offered to
customers
Strengths Weaknesses
Genesis
Health and
Fitness
Melbourne
2010 Large 8
percen
t
Fitness
products
Good quality
products and
services
Lack of proper
customers’
services
Genesis
Health
and
Fitness
Mayfield
2008 Large
7
percen
t
Healthy
lifestyle
products
Proper
customers’
services
delivered
Absence of
skilled and
knowledgeable
workers
Fitness First
Australia 2016 Small
12
percen
t
Gym facilities
High quality
gym
instruments
available
High price of
products and
services
Centennial
health club 2012 Mediu
m
7
percen
t
Active wear
items
Good trainers
available
Poor
customers’
services
Flow
Athletic 2010 Small
5
percen
t
Gymnasium Skilled staffs
and workers
Lack of
products and
services’
variety
Itrain
fitness club 2011 Mediu
m
11
percen
t
Sports good
and fitness
instruments
Great pricing
for the
products and
services
Not enough
trainers
available to
guide the
clients and
make them
work properly
Direct Competitors
Genesis Health and Fitness Mayfield and Centennial health club are direct competitors.
Indirect Competitors:
Flow Athletic, Itrain fitness club and Fitness First Australia are the indirect competitors
Market Share:
The total market share of these health and fitness clubs account for nearly 50 percent within the
health and fitness industry of Australia (Fitness.org.au 2018)
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Strategic Alliances:
Being a large and reputed health and fitness club within the health and fitness industry, the
company has strategically partnered with few smaller gymnasiums and fitness centres to increase
the range of products and make those easily accessible to the customers for increasing the sales
revenue and profit level (Sparvero, Warner and Tingle 2016).
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6. Market Segmentation
The targeted customers in different market segments are from the age of 15 years to 45 years. The
market segmentation allows for identification of different kinds of customers and their behaviours
and needs, which are needed to be assessed for influencing their buying behaviours (Grant
2017).
Customer Needs:
This is for your ideal customer.
Customer Characteristics:
Custome
r
Age Gender Ethnicity Education Location Lifestyle Values Interests
Alex 35 Male Australia
n
Graduat
e
Sydney Aristocr
atic
lifestyle
He is
honest
Interes
t in
physic
al
activiti
es
Ruth 30 Male Australia
n
Post
graduat
e
Sydney
Middle
class
Keeping
good
health
and
remain
fit
Interes
t in
good
quality
fitness
produc
ts
Diego 25 Male African Graduat
e Victoria
Upper
middle
class
Leading
simple
life
Runnin
g and
sweati
ng it
out
George 22 Male America
n Indian
Graduat
e
Melbou
rne
Lower
income
Respect
for
elders
Love
for
sports
Pamela 17 Female Asian
Post
graduat
e
Melbou
rne
Rich
lifestyle
Helpful Sports
activiti
es
Kristin
e 26 Female Australia
n
Post
graduat
e
Victoria
Middle
class
Highly
commu
nicative
Keepin
g body
fit and
beautif
ul
Customer Behaviour:
The ideal customers here are the health conscious customers who live on a strict diet
and maintain daily physical activities to remain healthy and safe. The health and
fitness club, being one of the dominant fitness clubs in Australia has mainly targeted
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the market segments comprising of the people who are concerned about their health
and fitness. The health and fitness products are delivered to ensure that they can
purchase effectively and stay healthy and fit at present and in future as well (Vieira
and Ferreira 2018).
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7. Marketing Mix Strategies
Levels and Types:
PRODUCT (or SERVICE)
Martial arts, fitness instruments such as massage therapy instruments, sweat suits, protein
shake, sports duffle bags, etc. are few of the products and services delivered by the organisation
named True Health Fitness Club in Australia (Riot et al. 2018).
PRICING of your product or service
The pricing of products are done carefully, because of the presence of multiple competitors
in business. The organisation has used the most effective pricing strategy, i.e., the cost leadership
strategy to maintain a good pricing status and influence the consumers’ buying behaviours too,
thereby increase the sales and profit level too (ZHANG, PITTS and KIM 2017).
POSITION (place) in the marketplace
The positioning of products is done by allowing the products to be accessible by the ckients
in different places of Australia including Sydney, Melbourne, Victoria, etc. The products and
service are placed well, which has created ease for the clients to make purchases from the
company consistently (Chekhovska 2017)
PROMOTION of your product of service
The promotions are done with the help of advertisements of televisions, newspapers and
magazines while the social media marketing has also acted as a great promotional strategy to
attract more customers and increase the customer base.
PEOPLE in your business (salespeople, staff etc.)
The people in business are the staffs, who are considered as important human resources
managed by the company to make the business function efficiently (Harvey et al. 2017).
PROCESS represents the buying experience
The processes are the business operations including the various activities managed all
through the manufacturing and production to deliver the products and services successfully in the
marketplace.
PHYSICAL environment where the good/services are presented
The physical environment includes the places all over Australia where the products and
services are made available to be accessible by the clients
PRODUCTIVITY and Quality to meeting customer needs
The Total Quality Management or TQM approach is considered as effective for maintaining
the quality standards. The prices are set properly without compromising on the quality of products
to influence consumer buying behaviours and increase the revenue generation too (Benton
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2018).
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8. Marketing Action Program
Product or Service:
Product or Service Features Benefits Unique Selling
Position
Support Spin Offs
Martial arts Punching,
kicking and
others using
strikes
 Help
s in
leadi
ng a
healt
hy
lifest
yle
 Enha
nces
self
confi
denc
e
 Help
s in
cont
rollin
g
weig
ht
Enhances
the
personality
Ankle
support,
kickboxing
footguard,
ankle, knee
and elbow
supports
Karate
Massage
therapy
Hand
massage,
feet
massage,
full body
massage
 Rela
xing
 Redu
ces
stres
s
 Low
er
bloo
d
pres
sure
Using
natural oils
for
massaging
Preventive
measures
towards
averting
skin rashes
and
infections Foot cleanse
T-shirts Comfortable
cotton
fabric,
wicking
ability,
perfect
fitness and
layerable
 Redu
ces
mus
cle
fatig
ue
 Prev
ents
Comfort in
making
movements
Comfortable
cotton
Gym T-shirts
for women
athletes
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mus
cle
strai
ns
 Impr
oves
mus
cle
oxyg
enati
on
Sweat suits
A track suit
made of
waterproof
fabric such
as coated
nylon or
PVC, which
increases
the sweat
 Lose
weig
ht
quic
kly
Social media
presence
Hoods
Track
jackets,
sweater
rainbow
Child care Child care
products
Care and
support to
children
Usage of
organic and
herbal
products
Social media
marketing Baby food
Marketing Communication:
Social media is the basic technology used by True Health Fitness Gym for
communicating with the customers and clients. Uploading the basic information of
the gym products, child care products and others on social media helps the company
to reach large mass of audience at a single point of time. Using privacy policies helps
the personnel in preventing third party invention, which can leak the private and
confidential information (Sodano, Rhee and Kim 2017). Precise information about the
products helps in luring the customers to the products and services. Based on this,
the positioning of True Health Fitness Gym can be depicted as follows:
Figure: Position mapping of True Health Fitness Gym
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Marketing Procedures:
The main procedure of marketing, adopted by True Health Fitness Gym is social
media. Advertisements are prepared for the products and services, in terms of luring
the customers towards the brand image. At the initial stage, briefing is done about
the current strategic position of the products. Knowledge of the personnel towards
the objectives helps in enhancing the awareness towards the prospective markets,
into which they can enter. This research enriches the knowledge of the personnel
about the target audience, which enhances the productivity and efficiency within the
business activities (Funk, Alexandris and McDonald 2016). Identifying women as the
targets helps the personnel in proposing innovation within the fitness services.
Within this, budgets are vital in terms of fulfilling the demands, needs and
requirements of the clients and the customers.
Organisational Structures:
True Health Fitness Gym practices divisional organizational structure. Every
departmental unit collaborates with others for carrying out the business activities.
The higher authorities hold meetings for equally dividing the activities within the
labours. The stakeholders and shareholders are involved in the meetings for gaining
an insight into their opinions. Interactive sessions clarifies the doubts regarding the
execution of the marketing activities. The organizational structure reflects the
collaboration between the employees, which indicates the extraction of productive
labour in the parameter of fitness (Tuzovic and Mathews 2017).
Marketing Objectives Due:
Objective Time of realization
Increase the membership 1 year
Developing a sports duffle bag and a protein
shake bottle for the members
1.5 years
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9. Control Program
Monitor Marketing Mix Against Performance:
Marketing
activity
Date of
review
Monitoring
methods
Review outcomes
Blogs December
2017
Social media 10% increase in the number of
visitors
Campaigns on
sweat shirts
January
2018 Survey 15% rise in the involvement of the
customers
Street campaigns
for baby care
products
February
2018 Feedback 20% rise in the sales revenue
Marketing mix
for the massage
therapy
March
2018 Social media
campaign 25% rise in the profit margin
Direct marketing
for sweat shirts
April 2018 Door to door survey
and feedback
12% growth in the number of
visitors in the websites
Protein shake January
2018`
Door-to door
marketing
15% growth in the customers
(fitness freaks)
Sports Duffle
bags
February
2018 Lab tests 13.5% increase in the quality of the
gym accessories
Marketing Budget
Action Price
Advertisements on radio, television and social media 2755.00AU$
Prizes (Gift certificates) 250.00 AU$
Mails 2500.00 AU$
Staff meeting 550.00 AU$
Subscription to health magazines 63.00AU$
Customer survey 100AU$
Installing disinfectant machines 125AU$
Increasing operating hours 5476AU$
Records and maintenance of the machines 1000 AU$
Garbage 420 AU$
Trainers 7000 AU$
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Profit-And-Loss Summary:
Provide a high level analysis of your current financial situation, specifically addressing sales and
profitability. (Leave this section blank. This is not required for the Diploma of Business.)
Sales Analysis
According to the annual report of June 2018, the industry encountered loss of $25,
516. However, desperate attempts to restore the growth proved assistance in terms
of increasing the sales revenue. Typical evidence of this lies in earning an income of
175, 967 AU$ in 2018, which is far better than the income earned in 2017. The same
value is accounted for the profit margin. The current assets is accounted as 1,382,
030 AU$ in 2018. This is less than 1,841, 488 AU$, which was earned in 2017. This is
due to the lack of strategic planning and consideration of legislations and insurance
policies. The value of liabilities is 805,991 AU$, which is less than 1,089, 482 AU$ in
2017 (Fitness.org.au 2018). The equity share is 576,039 AU$, which is less than 752,
006 AU$ earned in 2017. Net cash used in the operating incomes is accounted as
416,739 AU$ in 2018, which is more than 105,832 AU$, used in the operations of
2017.
Profitability Analysis
Indulging in contracts with Fitness Business Members of contemporary gym centres
helped True Fitness Health Gym in widening the supply chain network. This
accounted for 14% shares of the company. 40% of the shares went to the Group
Business members. Along with this, 45% of the shares were reserved for sole traders,
which acted assistance in the spin offs. 1% of the shares went to the industry
suppliers. All of these contracts increased the profit margin, helping in planning
effective fitness services for the customers (Kemper 2014).
Contingencies:
Offshore management would be effective in terms of gaining an insight into the
prospective sources, who would play an important role in conducting the marketing
activities. This activity would result in interactions on a broader platform, which
would diversify the marketing objectives. Strategic planning would be essential in
terms of systematizing the marketing activities. Budgets and timetables need to be
planned well in advanced and consistency is to be maintained in conducting
evaluation. This would be effective in terms of excavating the drawbacks and
modifying them well within the available time.
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10. Report
I have been working within the marketing team and my responsibilities are to guide the team
members to develop new products and services for fulfilling the needs and preferences of the
customers.
Product Development:
1) What were the target market segments?
The targeted market segments are the upper, middle and lower middle class segments
comprising of the individuals aged between 15 years to 45 years (Sweaney 2017).
2) What was the positioning of the product in the market?
The positioning of the products, i.e., the protein milk shake and sports duffle bags that are
positioned in the major cities of Australia to ensure targeting the people at large and keep them
influenced about the health and fitness items that can contribute to their health and fitness
(Morgan and Taylor 2017).
3) What was the focus of appeal?
The focus of appeal is generated by making customers aware of health lifestyle habits and
keeps them safe and fit by allowing a wide range of health and fitness products and services
available for them in the marketplace. The prices are competitive, which has also influenced the
buying behaviours of customers at large (Zhang, Huang and Nauright 2017).
4) What was the differentiation?
The differentiation of products is done to make sure that the customers can distinguish
between the products of True health and fitness club with other company products. The
competitive pricing strategy and using the brand logo in the products have facilitated the
differentiation strategy and made customers inclined to the company.
5) How would sales compete with a similar product?
The sales would compete with a similar kind of product once the products and services are
effective enough to fulfil the expectations of clients (Sweaney 2015).
The Consumer:
6) How is consumer interest assessed, based on consumer trends, past marketing,
individual/social/cultural diversity and lifestyle influences.
The interests and preferences of customers are assessed through effective customers’
services and even responding to their feedbacks and complaints to understand whether any
changes are needed to be done or not. The social networking website and company website are
checked by the staffs to ensure that any complaints made by them are taken care of to meet their
needs and adopt necessary changes through adoption of culture and diversity for fostering healthy
lifestyle choices and buying decisions made by customers too (Stewart 2014).
7) How is business behaviour related to the Marketing Plan?
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The marketing plan is made by assessing the market conditions and analysing the
customers’ needs and preferences to expect good sales and revenue generation. The marketing
plan is developed to ensure attracting the clients and even formulate effective strategies for
influencing their buying behaviours too (Sweaney 2017).
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