Marketing Opportunities for Emu Fitness: A Strategic Review

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IDENTIFY AND EVALUATE
MARKETING OPPORTUNITIES
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Table of Contents
Introduction.................................................................................................................................................3
Assessment Event 1 – KnowledgeQuestions...............................................................................................4
Question 1...............................................................................................................................................4
Question 2...............................................................................................................................................6
Question 3...............................................................................................................................................8
Assessment Event 2: Emu Fitness Simulation...........................................................................................10
Task 1: Identify Marketing Opportunities..............................................................................................10
1.1 Analyse information on market....................................................................................................10
1.2 Research potential new markets...................................................................................................11
1.3 Explore entrepreneurial approaches for their potential business application................................13
Task 2: Investigate Marketing Opportunities.........................................................................................14
2.1 Analyse fit between marketing opportunities and organisational goals and capabilities..............14
2.2 Evaluate each opportunity to determine the impact on business and customer base....................14
2.3 Determine probable return on investment....................................................................................15
2.4 Determine potential competitors..................................................................................................15
2.5 Describe and rank marketing opportunities..................................................................................16
Task 3: Evaluate Required Changes to Current Operations...................................................................17
3.1 Identify and document changes and resources required for current operations............................17
3.2 Communicate viability of changes to current operations.............................................................20
3.3 Document newly identified report on marketing opportunities and required changes to operations
...........................................................................................................................................................20
Conclusion.................................................................................................................................................24
References.................................................................................................................................................25
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Introduction
In the present scenario, most of the individuals are concerned about their physical as well as
mental fitness and are making an effort to remain fit in all aspects. This is the main reason due to
which, the fitness industry is growing very rapidly. This report is based on the market and
business expansion of EMU fitness Simulation, a Sydney based health club having 15 health
clubs and 15000 members. It is currently serving the minor and average level players. The
management is in the process to expand its business so that to provide the services to the large
level players in the other countries also. Thus, a strategic review has been conducted along with
analysing the new market opportunities that can be grabbed by the organization in order to
increase its market share as well as to increase the overall profitability of the business.
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Assessment Event 1 – KnowledgeQuestions
Question 1
Outline key provisions of relevant legislation, codes of practice and national standards affecting
marketing operations.
R 1. list five legislation, five codes and two standards relevant to marketing operations:
Legislations
Public Service Act 1999 APSC (Australian Public Service Commission)
is the responsible agency for this act which
states that the resources must be used properly
and should not be wasted in any manner.
Cyber Security Strategy This strategy helps in ensuring that marketing
information is available online on the
organization’s website and should not be used
to obtain any personal information.
Advertising At the time of promoting the product, any type
of false or misleading representations should
not be made along with not using the Bait
Advertising.
SPAM Act 2003 This act prevents sending unsolicited
commercial and electronic messages without
consent.
Trademark Laws The Australian, as well as international laws
related to trademark, should be followed at the
time of development of name of brand, website
or business (Mooney, et. Al., 2017).
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Codes of Practice
Responsible Data Practices The organizations should act in a responsive manner at the
time of collection and use of data by complying with the
regulatory provisions.
Providing Choice Consumers should have a clear understanding of the change
value at the time of sharing personal information.
Promoting Fairness Consumer data should be collected and used fairly and data
provided to customers should e up to date.
Encouraging Transparency The advertisement for marketing should be transparent and
any type of false statement should not be included in that.
Value Safety The reasonable steps should be taken to ensure the safety of
data collected for or from marketing practices.
Standards
Equal Opportunity The employers having a minimum number of 15 employees
are required to follow equal opportunity law that is enforced
by the Equal Employment Opportunity Commission
(EEOC). This act indicates that the hiring process of an
organization must not be influenced by some factors
including races, gender, age, religion, disability and so on.
Tax Code Every registered organization has to pay a sum of amount as
TAX to the government. The amount and percentage of tax
to be charged can be different as per the different states. The
taxes are unavoidable as not paying the amount of taxes may
result in potential jail timing and hefty penalties. While
imposing the tax amount, all businesses are treated separately
and different from each other (De Lyon, et. al., 2017).
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Question 2
R 1. explain each of the four principles of marketing:
A marketing mix can be defined as a plan which includes a number of areas required to be
focused. This term can also be defined based on four main factors which are known as Product,
price, placement and promotion.
An effective marketing plan is essential to cover a broad area and to reach a large number of
customers in the market. By considering 4 Ps of the marketing mix, the management can be able
to focus on the core areas. These 4 Ps helps a lot while an organization is in the process of
developing new services and products in the market or moving in the new market with existing
products and services (Chekhovska, 2017). It can be understood in a well-structured manner with
the help of the below-mentioned table while taking the example of the food retail industry.
Principle
s Explanation of the marketing mix Industry-specific example
Product These include product and services that
are provided by the company to the
customers to satisfy their needs and
wants. While developing a marketing
strategy, a firm considers the products
and services that are in high demand and
eliminates others that may lead to
incurring a loss to the organization due to
decreasing demand. This factor includes
making a decision related to variety,
design, quality, brand name, features,
packaging, after-sale services, returns
etc.
The products and services offered by the
organization should be effective enough
The main products fall under the
category includes all type of packed
food items which are offered by the
supermarkets in the food retail
industry.
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Principle
s Explanation of the marketing mix Industry-specific example
to create a positive impact on consumer's
mind and can also compete with the
other existing products in the market that
are similar in the features and usage.
Price
Price can be defined as the amount paid
by the customer in return of goods and
services. The list price, terms of sale,
competitor's price, discounts and
customer location should be considered
while deciding the price of a product.
The utility and value of the products are
also required to be considered at the time
of deciding the appropriate price for a
product (Raven, 2018).
The pricing policy of such products
are quite fixed and thus there are
fewer chances to get the customers
dissatisfied because of the fluctuation
in prices.
Promotio
n
Promotion refers to the marketing
communication of the products to the
customers. Through promotion, the
features and benefits of the products and
services are conveyed to the customers
so that they may get aware and make the
right decision about the purchase.
Some products do not need promotion
while some are required to be
promoted at a large level due to the
existence of substitutes in the market
like tea coffee etc.
Placemen
t
Place refers to the location where
customers may be able to get services
and products. It indicates the selection of
an appropriate marketing channel
through which, a large number of
customers can be approached. The
channel of distribution is the main aspect
Generally, these stores are located in
such a place where customers can
reach easily.
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Principle
s Explanation of the marketing mix Industry-specific example
which may result in decreasing or
increasing the size of market coverage
(Anderson, et. al., 2017).
Question 3
Describe statistical methods and techniques, including forecasting techniques, to evaluate
marketing opportunities.
R 1. List ten statistical methods and techniques
Multiple Regression It is also known as highly used multivariate technique. It identifies
the relationship between single and two metric independent
variables. The technique is based upon finding out the linear
relationship with the least squared variances sum. Thus,
assumptions related to linearity, normality and equal variances are
highly observed under this technique.
Logistic Regression It is also known as "choice models". This technique is used as a
variation of multiple regressions and facilitate to predict an event.
under this technique, the use of a nonmetric dependent variable is
allowed as the main objective is to find out a probabilistic
assessment related to a binary choice. The independent variable
can be in both forms, continuous as well as discrete.
Discriminant The main objective of this analysis is to classify the observations
in a corrected manner into some homogenous groups. The
independent variables are required to be metric and should possess
high-level normality. This analysis results in developing a linear
Discriminant function which can be further used for the
classification of observations.
Multivariate Variance This technique is used to examine the relationship among a
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Analysis number of the categorical independent variable and more than one
dependent variables.
Factor Analysis This technique does not include any dependent variable. The
underlying structures of the data matrix are analysed under this
technique.
Cluster Analysis The main purpose of cluster analysis is to decrease a large data set
into small and meaningful subgroups of objects and individuals.
This division is made based on the object's similarity and specified
characteristics.
Multidimensional Scaling This is also known as decomposition approach using perceptual
mapping with present dimensions. Being an exploratory technique,
it is used in the examination of unrecognized dimensions of the
products (Polyakova and Mirza, 2016).
Salesforce composite In this technique of forecasting, the information is collected from
the organization's sales force. Salespersons have sound intuitions
about the estimated amount of sale of a product in the market.
They remain in touch with the customers and thus are very well
known about the changes in their tastes and preferences. But, it is
not possible for an unexperienced or new salespersons and thus is
not suitable for the marketing of new products. It is quite
appropriate for existing products and services.
Time Series Forecasting
Techniques
These techniques help in observing the sales patterns. These
techniques are most appropriate for stable industries and market.
The market with a high level of fluctuations and frequencies
cannot e benefitted by sing time series forecasting methods.
Market Tests In this method, the product is firstly launched in a small market to
forecast its response in the larger market. This also helps in
ensuring the effectiveness of the marketing plan of the sales
pattern and thus, it is also known as response model. The data
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collected from the limited market can be used in the larger market
(Lloyd and Payne, 2018).
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Assessment Event 2: Emu Fitness Simulation
Task 1: Identify Marketing Opportunities
1.1 Analyse information on market
Macro Factors
Political Factor analysis
Political Factors: Political issues can be defined as government legislation and policies. For a
fitness organization, there are very few restrictions and tax burdens and thus, the management
does not need to be concerned. But, as the organization is planning to enter into a new market,
then it must be ready to accept and work as per the employment and business policies of that
particular place.
Economic Factors: These are the key factors to be concerned by a fitness organization and these
are one of the leisure services providers. Due to the economic decline, the number and customer
may get affected. Individuals do not like to spend money on other leisure activities in the
situation of having low disposable income (Bennie, et. al., 2016).
Legal Factors: In most countries, legal institutions and framework are not effective enough that
can protect the organization's intellectual property rights. An organization is required to evaluate
such factors and their effects as it may lead to creating strong competition for the management as
well as it can also impact the overall profitability of the organization.
Sociocultural: One main factor that influences a fitness organization is the population
demographics which include sex, the income of individuals, age and their physical well-being.
Fitness development activities and centres are highly in demand by both, young as well as old
people.
Technological Factors: Technological factors can work as a main barrier for the new entrants as
all equipment and machines require a high amount of investment. It can also be related to the
high expectations and demands of the customers. Highly trained staff and equipment also make it
difficult for fitness organizations to take entry into the existing market (Harvey, et. al., 2017).
Opportunities arising from the above factors
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 A rise in the economic condition of a country may lead to arising new demands of
customers as they would be able to spend on their physical as well as mental health.
 Changes in the employment and workers related legislation may impact the selection and
hiring process of the organization. For example, an increase in the minimum pay of the
employees may result in attracting more qualified and trained employees to provide their
services to the organization.
 Changes in the age, physical well-being and concern related to the physical health may
also lead towards increasing customers for the fitness industry.
 Changes in the technology may also impact the interest of the customers as they would be
interested in availing more facilities and providing such facilities to the customers may
result in developing the organization as a whole.
1.2 Research potential new markets
Organizational Capabilities
Economic Changes: AS the UK is a developed country and any economic changes are leading to
create good business opportunities for all type of organizations. When it comes to physical well-
being and fitness, the youngsters, as well as aged citizens, are now more concerned about their
health issues and it is providing an opportunity for the organization too. The management can
take advantage of this opportunity by proper advertising about its products and services. It can
also attract the customers by communicating the health benefits on a regular basis with the help
of only media platform. In addition to this, providing offers to customers at their first joining and
in other ways can also help the organization to grow and to increase its customer base. The cost
of grabbing this opportunity is less in comparison to the other investment as customers would get
attracted by themselves due to the rise in their economic condition. The organization just needs
to concentrate on its promotional activities to increase the visibility of the organization within the
market.
In addition to this, the amount of competition is generally high as there is other fitness providing
organizations also that can facilitate the same services and the opportunities arising from
increasing economic conditions would be same for all. Thus, the level of competition would be
very high as there are substitutes available in the market (Howat and Assaker, 2016).
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