BSBMKG609 - Strategic Marketing Plan for FitLife Health Club

This marketing plan for FitLife Health Club encompasses a thorough analysis of the business environment and proposes strategies for growth. The plan begins with a SWOT analysis, identifying strengths such as a steady client stream and modern equipment, weaknesses including limited social media outreach and reliance on individual memberships, opportunities like developing corporate programs, and threats such as competition and changing technology. A PEST analysis examines political, economic, sociocultural, and technological factors impacting the club. The plan also includes a GAP analysis, BCG Growth Share Matrix, and Five Forces analysis to evaluate market position and competitive landscape. Marketing opportunity options are assessed, and feasible strategies and tactics are developed, covering product, price, promotion, and placement. The plan concludes with methods for measuring marketing effectiveness, including tracking attainment cost of new clients, conversion rates, retention rates, member lifetime value, and member satisfaction.

MARKETING PLAN
FOR
FITLIFE HEALTH CLUB

Part A: SWOT Analysis
Strengths Weaknesses
The advantage of the organization is that it has a
steady stream of clients who are eager to get fit.
We have the latest fitness equipment in the
industry to be competitive
The unique resource is offering corporate fitness
center members a promotion or discount rate
The factors that mean we ‘get the sale’ are sending
automated reminders to clientele and running an
affiliate program for the members.
The Unique Selling Proposition is to offer free-trial
period for new clients that runs for 2 weeks.
The health club could improve their outreach to
potential clients on social media because it a
fairly new business.
As we are just starting the health club, we
should avoid taking huge bank loans.
People are likely to see our focus on individual
membership only as a weakness.
The factors that cause loss of sales are
inadequate marketing online and offline in
addition to old fitness equipment.
Opportunities Threats
The good opportunities we can spot are developing
corporate programs to offer as internal marketing
tool as well as a lack of dominant competition.
An interesting trend is that people want to eat
healthy and be fit.
The obstacles we face are mainly in form of
regulations and taxes.
Our competitors are open 24 hours a day yet
we only open 10 hours a day.
Changing technology disrupts every business
and the health club is also affected in that some
of our equipment become outdated overtime.
Part B: PEST Analysis
Elements Factors
Political As the general elections approach, the federal government is likely to increase taxes
for corporates and health clubs, thereby reducing our membership rates. Business
regulation is also likely to introduce new taxes and increased scrutiny for health clubs.
The political measurement of the general condition influences business action. The
logic of the political gatherings in control impacts business practices.
Economic Economic variables allude to the character and course of the economic framework
inside which the health club works. Economic variables incorporate the condition of
the business cycle, the conveyance of pay inside the populace, and administrative
money related and monetary approaches. This piece of the investigation regards the
general prospects for the economy. Loan costs (interest rates), in numerous nations,
are chosen by a national bank.
Social-
cultural
Social-classes would be another perspective influencing the consumer behavior. This
alludes to the national status pecking order by which gatherings and people are
recognized as far as confidence and distinction. As per David & Amanda (2005), the
urban populace is more than 93% with a per capita salary of 9.1% which unmistakably
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exhibits development among social classes.
Technology Technology is a part of the condition a firm ought to consider in creating vital plans.
Changing technology may influence the interest of a company's items and services and
its creation forms. Technological changes may make new open doors for the firm, or
undermine the survival of an item, firm, or industry. Technological advancement keeps
on moving at an undeniably quick rate (Laura et al, 2014).
Part C: GAP Analysis
According to Lucia , Salvador & Philip (2017), gap investigation is an exceptionally valuable device for
helping marketing chiefs to settle on marketing techniques and strategies. Once more, the
straightforward apparatuses are the best. There's a direct structure to take after.
Market
Objectives
Gap Actions bridging the Gap
Market
Development
A small client base exists Offering incentives to new clients
joining the health club
Market
Penetration
The penetration rate is 5% currently Increased promotion as well as
appropriate marketing mix.
Diversification Fitlife Health Club currently focuses on
individual membership only.
The recommended action is to
diversify to corporate clients.
Product
Development
The fitness equipment is relatively
obsolete.
Acquire new equipment.
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Part D: BCG Growth Share Matrix
The cash cow is group fitness sessions where the relative market share is high but with a low growth
rate. Therefore, the health club needs to invest in this service on a long-term period as the market
evolves. Personal training service is the dog in the portfolio with a low market growth rate as well as a
low market share. Few people are interested in one-on-one training sessions because of their busy
lifestyle. The problem child (question mark) in the portfolio is the circuit fitness class with a high growth
rate. However, the market share is low for this service. Lastly, the star of the portfolio is strength
training and resistance training. They have a high market share and an equally high growth rate.
Therefore, FitLife should invest in the star and drop the dog (personal training).
Part E: Five Forces Analysis
Threat of new entrants
(low)
 Costly and takes time to build reputation for the health club
 Huge learning curve, technology-driven
 Current brands are very strong
Customers power (high)  Number of recreational people declining
 Clients forcing new pricing strategies
 Clients are price sensitive now more than ever
Supplier power (low)  Relationships are well established
 Other suppliers of fitness equipment are readily available
 Materials and talent (human resources) are abundant
Competition rivalry
(high)
 Intense among the established players in the fitness industry
 Established brands have difficult time entering new areas of
fitness equipment.
Threat of substitution
(high)
 Customers have a broad range of sports and leisure activities to
spend money on.
 Customers buy used items
Part F: Evaluation of Marketing Opportunity Options
Marketing Opportunity option Feasibilit
y
Rationale
Strategic alliance and cooperative
business models
Yes If the fitness club has strategic alliance with other
business we have a potential to reach more
customers.
New products or services to
target specific markets
No There are no new services being offered by the
health club, just the usual membership.
Greater market penetration with
existing products and services
Yes There is a greater market penetration due to the
current trend of healthy eating and fitness
Take overs No Being a new health club, we are not yet mature for
a corporate takeover.
New businesses and franchising Yes The health club looks forward to new businesses as
well as franchising as a way to reach new
customers.
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Feasible Strategies
Marketing
Mix
Strategy Rationale Alignment
Product Each fitness center has a wide
range of body building equipment
like strength training
Offers personal and certified
trainers to individual clients to act
as their guides for specialized
programs
FitLife has the latest
equipment.
Aligned with the
market objective of
product development.
Price It has implemented a premium
pricing strategy for its products
and services
The want to be fit is a significant
motive for people to splurge on
fitness services since they consider
it a well-intentioned reason.
FitLife is certain of its
high-quality products
and services to justify
the premium prices
Aligned with market
penetration objective.
Promotion It is a dynamic contestant in its
promotional strategies since it
recognizes the worth of marketing
and image.
Discount to large corporate
membership
FitLife offers discounts to
particular group of
clients in order to
increase market share
Aligned with market
development
objective.
Placement It runs a franchise arrangement The health club does this
in order to be present in
many parts of the
country.
Aligned with the
objective of
diversification.
Achievable Market Tactics
Part A
Owner Cost Schedul
e
Accountability
Product
i. Package the service in an
attractive manner
ii. Re-usable products (equipment)
iii. Clean and hygienic products
FitLife Health
Club
$4,000 2 weeks FitLife Health
Club
Price
i. Discounts
ii. Premium pricing
iii. Competitive prices
FitLife Health
Club
$500 3 weeks FitLife Health
Club
Promotion
i. Free-trial period
ii. Invest in online marketing
iii. Customized t-shirts
FitLife Health
Club
$3,000 14 days FitLife Health
Club
Placement FitLife Health $5,000 4 weeks FitLife Health
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i. Franchising
ii. Strategic alliances
iii. Open everyday
Club Club
Part B
FitLife Health Club is still in the growth stage of the product life cycle. Personal training was indicated to
have the maximum rate of implementation in any program or service in the fitness club. FitLife is a little
late on this one. Perhaps due to the fact that personal training is occasional in climbing gyms but not
unfamiliar.
Part C: Product life-cycle Tactics
Owner Cost Schedule Accountability
Introduction
i. Increased promotion
ii. Affordable prices
FitLife Health Club $400 4 weeks FitLife Health Club
Growth
i. Affordable prices
ii. Online promotion
FitLife Health Club $3,000 4 months FitLife Health Club
Maturity
i. Discounts
ii. Open everyday
FitLife Health Club $500 5 months FitLife Health Club
Decline
i. Review the product
portfolio
ii. Lower the prices
FitLife Health Club $400 4 months FitLife Health Club
Part D
While advancing the services, FitLife has to guarantee that any marking, explanation, quote or some
other portrayal isn't false or misdirecting. Segment evaluating is the point at which the cost of an item or
service is publicized or shown in independent parts. In the event that of publicizing, likewise give the
maximum comprehensive of extra expenses in a more conspicuous manner (Manfred & Stefanie, 2017).
Measuring Marketing Effectiveness
Marketing
Metric
Example of Implementation
Attainment
cost of new
clients
The attainment cost per client is a crucial piece of the marketing approach.
Recognizing the costs of acquiring a new client through the numerous channels of
marketing is an initial idea for following the inclusive accomplishment of a
marketing effort.
Leads In order to for this fitness marketing KPI to work, FitLife needs to trail it and then
emphasize on lead creation practices (e.g. social media campaigns, advertising,
besides lead capturing).
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Conversion
rates
In case FitLife offers a free-trial period as part of the enlisting procedure, we will
have to calculate the rate of conversion for leads who start the offer, also how
good we translate those enjoying the giveaway visits to lasting memberships.
Rate of
Retention
FitLife measures this over the progression of a month. We just take the number of
remaining customers at the close of the month then divide by the overall number
of standing customers at the beginning of that particular month (specifically, 10
reserved memberships / 13 opening memberships = 77%).
Member
Lifetime Vale
To discover this measure, just total each payment a customer makes in the life of
their involvement.
Member
Satisfaction
This is measured by the success of the affiliate program for our clients.
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References
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European Journal of Marketing, 32(2), pp. 445-463.
David P. & Amanda B., 2005. Intergrated Marketing Communications. Second ed. England: Pearson
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Laura L. P., Victoria B. J., Melih M., & Ilan A., 2014. Franchising and value signaling. Journal of Services
Marketing, 28(2), pp. 105-115.
Lucia P., Salvador B. & Philip J. K., 2017. Measuring integrated marketing communication by taking a
broad organisational approach: The firm-wide IMC scale. European Journal of Marketing, 14(3), pp. 692-
718.
Manfred B. & Stefanie S., 2017. Integrated marketing communication – from an instrumental to a
customer-centric perspective. European Journal of Marketing, 11(5), pp. 464-489.
Mart O. & Gergely N., 2017. Just doing it: theorising integrated marketing communications (IMC)
practices. European Journal of Marketing, 66(5), pp. 490-510.
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Paul J. P. & Jerry C. O., 2010. Consumer Behavior and Market Strategy. 9th ed. New York, NY: McGraw-
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Journal of Business Strategy, 9(2), pp. 34-39.
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