Marketing Plan Project: Frank's Fitness - Customer Growth Strategies

This project presents a marketing plan for Frank's Fitness, a business in the competitive fitness and gym industry. The plan focuses on incorporating technology and social media to increase the customer base, targeting female customers aged 21-29. It includes an analysis of the macro environment (political, economic, social, technological, legal, and environmental factors), segmentation and target market, competitor analysis, and a SWOT analysis. The marketing objectives include achieving a financial return, increasing the client base, and leveraging technology. The plan highlights the importance of social media marketing, customer satisfaction, and sustainable equipment use. The analysis considers the competitive landscape, including both local gyms and larger franchises. The plan also considers the pricing structure, unique offerings, and potential threats and opportunities. The project aims to provide strategies for Frank's Fitness to enhance its market position and achieve its financial goals.

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 lower fixed cost per unit can be stabilized with proper
planning for economies of scale. Investments in research and development helps Frank to deliver quality
equipment in the gym.
Numerous suppliers is assistance for Frank to acquire the necessary materials. However, dominance of
the suppliers decreases the margins in the earnings from the market. The suppliers can use their
negotiation power to gain higher price from the brands like Frank’s Fitness Gym. The immediate result
of this is the lower profitability. The gyms in the Prospect area would be trying to gain customer
attraction through the supply of high quality equipment. Therefore, Kreutzer (2019) is of the view that
Frank needs to come up with something innovative like insurances, which would ensure the safety of
the users while using the equipment. All these aspects reflect higher competitive rivalry between Frank’s
gym, gyms in Norwood area and gyms operating in the threshold of Prospect.

Fig; Gyms in Norwood
Fig: Gyms in Prospect

(Source: Nationalindustryinsights.aisc.net.au 2019)
Of the competitors in the gym and fitness industry, many of these are franchises and linked – meaning
that they hold an advantage in wider communications and sharing of resources. An example of this is
how the competitors have a social media presence that is very ‘active’. A case in point is that Anytime
Fitness recently held promotions in Adelaide for charity events with celebrities such as Diesel. Although
this marketing campaign was not linked directly to increasing member numbers, it reached potential
numbers through an active social media presence.
A major boom within the fitness industry is the introduction of 24-hour facilities that encourage
members to be active at a time that suits them. Many of the facilities outlined above also hold programs
or classes similar to Frank’s Fitness.
SWOT ANALYSIS
Sharp (p.450-451) outlines a SWOT analysis as an integral part of the marketing plan that focuses on
knowledge and information generated from this as a reference point for the rest of the marketing plan.
STRENGTHS: Frank has established a base of customers that are committed to his innovation of classes
such as ‘Burst’ and ‘Reach’. This is evidenced through the Case Study materials that highlight 7:00 AM
classes often reaching maximum capacity. Another strength is that Frank has healthy and continued
experience within the industry from his Sports Science degree and regular competing at athletic events.
Simply, his product has realistic and continued growth as evidenced by the reach of capacity
WEAKNESSES: From the information that Frank provided there appears to be some weaknesses that
could improve from this plan. A combination of weaknesses relate to his employees utilizing Social
Media, and that Frank does not appear to use this as an advantage for his business. Using the case study
materials as a reference, Frank’s staff use social media on their breaks.
Another weakness could be related to the current pricing structure for Frank’s. Set at $100 per month
(or $25 per week) is quite competitive when compared against the table below.

Fig: Comparison of the gym chains in Australia
(Source: Abs.gov.au 2019)
The reason for this inclusion as a weakness is that Frank only has a ‘loose’ pricing structure that does not
offer an annual pricing structure. Using Anytime Fitness as a benchmark, there would be an annual cost
of $928.40 (incl. Joining fee). With Franks current structure – four quarters multiplied by the $250
quarterly rate is still higher than an annual fee for an enterprise that has multiple premises available for
highly competitive price.
Even referring to case study materials – the price structure set by ‘Jetts’ and ‘Goodlife’ are considerably
lower than the price set by Frank. With the competitiveness provided by franchisees, comes price
elasticity, variable market pricing and ability to arrange fixed costs.
OPPORTUNITIES: An opportunity that Frank currently has is the established and growing market with his
classes. The ‘product’ he offers with his innovative classes appear to be unique. Although there is a
highly competitive market for this industry and ‘classes’ available – Frank has unique and distinct
product.
Also identified as a potential weakness in regards to pricing to structure, he has a ‘flexibility’ for one to
three months that competitors do not have. Frank’s Fitness has a ‘casual’ membership option that
promotes individuals that may be interested in trying fitness and joining gyms for the first time.
THREATS: There are a number of activities that Frank’s Fitness competitors are doing: particularly across
the technological market. Not only are competitors launching new products – they are adapting to new
technologies quicker than what Frank is. Already he is aware that staff around him are using social
media to connect. The target demographic that Frank is seeking to attract are currently primary users of
seeking information through social media.
Marketing Objectives

One of the major objectives, which Frank plans is that of financial stability in terms of achieving the
revenue of $20000. In this, the supporting materials of information brochure adds validity to the
mission. This is accompanied by the objectives of adopting social media marketing, strengthening the
customer base and sustainable use of the equipment. Among all these objectives, the most appropriate
one is the social media. This is because social media would enable Frank to increase the trafficking of the
audience towards the brand image. Rating the number of visitors on the website would be apt for
making plans regarding increasing the number of customers.
Frank’s Fitness has an objective and budget for reaching his goals for the benefit of $20,000. Based on
the analysis that has been conducted with the information at hand – Frank can reach the objective by
concentrating marketing efforts on the following key objectives:
 Social Media: including the use of technology from staff and current members
 Increase of Customers: through expansion of both premises and price compatibility, and
 Wider use of equipments
Frank is aiming for a profit financially but needs to consider factors outlined within his projected budget.
The equipment that Frank has available is adequate for the number of clients that he has currently but
there is opportunity grow within his current market base.
Strategy
Explicit market research is needed in terms of gaining an insight into the latest software, which increases
the ease with which communication can be established with the customers. Keyword search can be
used for directly reaching to the required information. Uploading the information about ‘dialling down
the products and equipment on the social networking sites is assistance for reducing the concerns and
worries of the customers regarding using the equipment and extracting maximum benefits from them.
As per the arguments of Killian and McManus (2015), conducting product life cycle for the equipment
would be assistance for enhancing the standards and quality until it reaches to the customers. The
environment of the gym is congenial for the users, indicating preservation of their privacy.
The plan of membership is apt for maintaining the competitive pace with the contemporary brands in
the markets of Norwood and Prospect. Casual and flexible nature of the membership forms would act as
an initiative towards influencing the purchasing power and decisions of the users. Expansion of the
morning classes to the nearby spaces can be effective for increasing the serving offerings. Here, rational
and systematic planning is needed in the form of action plans for catering to the weather conditions,
political instabilities and taking prior permission from the Council members. Television and radio
commercials can be adopted for promoting the plans, however, they are estimated to exploit the
planned budget. Therefore, Chang, Yu and Lu (2015) proposes that meetings with the Board would
suffice the need for conducting the actions according to the estimated budget.
Mixing the marketing of an organization can help achieve goals. For example the four P/s Price,
Production, Promotion and Place: all have fundamental importance when it comes to linking a
marketing strategy. Each of these are outlined below:
According to Blakeman (2018), there are opportunities, that will assist in determining the sustainability
of services for Franks Fitness.

Product: Frank has an innovative product through his classes of ‘burst’ and ‘reach’ which is growing as a
result of popularity. He has positioned his business well enough to cater for existing clients –and even
expand via ‘dialing down’ his current products.
His current premises also cater for the fitness afficiandos that require a personal space for their own
fitness regime in a quiet and enclosed space.
PRICE: Frank should look at offering a diverse array of memberships to compete with other fitness/gym
organizations in both the Prospect and Norwood areas. Frank’s Fitness has offered a’ casual’ and flexible
membership option without locking in clients.
PLACE: Space for classes is a significant problem recently for Frank. He has 2 great locations for fitness in
and around key locations. If Frank could expand his morning classes to a nearby ‘public space’ he could
maximize attendance at these product offerings. Pursuing this dies provide other issues that are
dependent on factors such as Environment (weather) and Political. Social (seeking permission to
conduct outdoor activities) within council boundaries.
Promotion: Frank should harness the knowledge shown by his current staffs that utilize social media
platforms. Ample research identifies that television or radio commercials would increase the allocated
budget of $2000. Knowing that Frank has a presence
Budget
Item Metric 2016 2017 2018
projection
1 Sales Revenue $308,750 $340,000 $372,030
2 Memberships
(12-mth
equivalent)*
320 330 361
3 Members
(active
members)
379 421 461
Costs
4 Staff $111,150 $118,000 $123,900
5 Rent (2
premises)
$56,056 $57,500 $60,375
6 Equipment
lease or
repayments
$15,680 $15,900 $16,695
7 Other
(insurance, IT,
utilities)
$8,820 $9,200 $9,660
8 Marketing
spend
0 0 $2,000
9 Net profit $117,044 $139,400 $159,400
Controls
Evaluation, audits and reviews are needed by Frank for ensuring whether the actions are according to
the constructed plans. In this, the feedbacks of the clients are crucial for developing productive practices
regarding their health needs. Consideration of SMART goals would be effective in calculating their

effectiveness towards fulfilling the needs, demands and requirements of the customers. For example,
insurances for the users would help in averting the accidents while the users are using the machines.
The membership forms would act as an additional advantage in providing benefits to the users in case
they encounter any tragic instance of injury. Positive feedbacks from the users makes the goal
achievable. The time period of one year is apt for launching the service for the benefit of the customers.

REFERENCES
Abs.gov.au 2019. Household Income and Wealth, Australia, 2015-16. Available at:
https://www.abs.gov.au/ausstats/abs@.nsf/mf/6523.0 [Accessed on 3rd June 2019]
Blakeman, R., 2018. Integrated marketing communication: creative strategy from idea to
implementation. Rowman & Littlefield.
Chang, Y.T., Yu, H. and Lu, H.P., 2015. Persuasive messages, popularity cohesion, and message
diffusion in social media marketing. Journal of Business Research, 68(4), pp.777-782.
Killian, G. and McManus, K., 2015. A marketing communications approach for the digital era: Managerial
guidelines for social media integration. Business Horizons, 58(5), pp.539-549.
Kreutzer, R.T., 2019. Strategic and Operational Marketing Plan. In Toolbox for Marketing and
Management (pp. 225-229). Springer, Cham.
Nationalindustryinsights.aisc.net.au 2019. Fitness
https://nationalindustryinsights.aisc.net.au/industries/sport-fitness-and-recreation/fitness
[Accessed on 3rd June 2019]