Business Opportunity: Kickboxing Industry Analysis in Australia

This report presents a situational analysis of the kickboxing industry in Australia, exploring the potential for a new business venture. It begins with a brief introduction to kickboxing, its evolution, and its growing popularity. The report then delves into a market analysis, examining the market size, growth drivers, and key intermediaries. It outlines the goals and objectives of a hypothetical company, including its STP (Segmentation, Targeting, Positioning) strategy, service quality features, and financial projections. A PESTLE analysis is conducted to assess the macro-environmental forces impacting the business, followed by a SWOT analysis to evaluate the company's strengths, weaknesses, opportunities, and threats. The report also includes a competitor analysis, marketing mix assessment, and customer analysis, providing a comprehensive overview of the kickboxing landscape in Australia. The analysis concludes with a strategic approach for the company to enter and succeed in the market.

Running Head: Introduction to Marketing
KICKBOXING INDUSTRY IN AUSTRALIA
Introduction to
Marketing
Flip situational Analysis
Abstract: The idea of the report here is to do a situational analysis on the
Kickboxing industry of Australia and evaluate the option of business
opportunity in Kickboxing.

Introduction to Marketing P a g e | 1
Brief Introduction
Kickboxing is a group of stand-up combat sports which was originated in the year
1963 in Japan, the sports has now becoming popular all across the globe.
Kickboxing is a great mix of Karate and boxing which apart from being a popular
sport is also practiced for self-defense and enhanced fitness (Gupta, Sharma,
Bansal & Kumar, 2017). The evolution of Kickboxing since 1960’s has traversed a
long journey; it moved from Japan to America and now is developing a lot of
interest in sports enthusiasts all over the world. Kickboxing has been pivotal in
the emergence of mixed martial arts using the characteristics of the group
fighting techniques from Brazilian jiu-jitsu and folk wrestling. Punching, kicking,
knee and elbow strikes are some of the strategies used in the game of
Kickboxing (Bowman, 2015). Buakaw Banchamek, Superbon Banchamek, Giorgio
Petrosyan & Robin Van Roosmalen are some of the popular names in the
sporting world of Kickboxing. The rules of Kickboxing varies from country to
country, the absence of a central governing body allows the rules to be
inconsistent in different parts of the world (VanIngen, 2016).
The idea of the report here is to analyse the kickboxing industry in Australia with
an intention to open up a business related to the hugely popular sporting event.
The report will focus of finding the size of the market, its drivers for growth and
market intermediaries required for the success of the sport. The analysis will
then be applied to evaluate the goals and objectives of the new formed
company, identifying its STP, service quality features and budget. In the present
business day, environmental analysis has become more than a necessity, thus a
PESTLE analysis will be conducted to evaluate the macro environmental forces
affecting the business. Towards the end of the report, a further study will be

Introduction to Marketing P a g e | 2
conducted on the present kickboxing landscape in Australia and accordingly
conduct a SWOT analysis if the business.
Market Analysis
Kickboxing has picked up really quick in the Australian market, the growing
conversation around kickboxing, opening up of different companies giving
training to the people; increase in the number of kickboxing competition and
increase in the number of kickboxing gears are some of the factors depicting the
wide penetration of Kickboxing in Australia.

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The global kickboxing market for the equipment is estimated to grow at 3.25%
(CAGR) during the FY 2016-2020. The Key drivers for the growth of Kickboxing
are:
 Popularity of kickboxing as a part of fitness program (Kumar & Mishra,
2015).
 Kickboxing improves the ligament and tendon flexibility and oxygen flow.
 Improves balance, flexibility and coordination(Nicholson, Kerr &
Sherwood,2015)
 Full body workout which helps in putting away the danger of
cardiovascular diseases (Rojas, 2016).
Market Size
Australia has a population of 24,772,247 out of which 12.8% of the population
falls in the age group of 15-24, which is roughly one in eight Australian residents.
The further demographic for 25-37 consist of another 24% of the population,
hence it can be said that roughly the market size for the kickboxing constitutes
of almost 12, 00,000 people (Park, 2017). These are the people who have the
strength, zeal and fit in the age group to practice kickboxing. The global market
size of the entire boxing industry is valued at 1 Billion USD (Mahdavi, 2018).
Growth
The global market is expected to grow at a CAGR of 3.25% and the same can be
expected for Australia, which is emerging as the leading players in organizing
and practising kickboxing.
Intermediates
Leading market players operating as intermediaries in the kick boxing market
includes; Adidas AG, Century LLC, Everlast worldwide, combat sports, Ringside
and Twin special company limited.
Company Analysis
The company has to be opened for providing equipment’s used in Kickboxing in
Melbourne, where there is maximum attraction towards Kickboxing. The decision

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to open up a store (Offline and online) is taken based on the rising demand of
quality products of Kickboxing.
Goals & Objectives
The goals and objectives are defined keeping in mind the scope of growth in the
Australian market.
Goal Implication
Increase the awareness of
Kickboxing in Australia
More awareness drives more business
Create a system of rules to bring
uniformity in the sports
Uniformity will bring coherence in the
system
Open a gym exclusively dedicated
for Kickboxing
Will help in improving the health of
Australian citizens
Open up a training facility to
prepare international players for
the tournament
It will raise the bar of sportsmanship in
Australia
Market Share
The company does not want to go with a full throttle strategy and at the moment
is focussed on leveraging the target audience of New South Wales and
Melbourne market. The strategy is to secure 20% of the entire market in the
initial 2 years of its existence.
Service Quality
Service quality is the benchmark according to which the services of the
institution or the organization are measured. The aim is to use SERVQUAL
method to design the services for the company (Prinsloo, 2018).
Positioning
The company will be positioned as “Provider of best quality product and training
for Kickboxing”.
Financial Status
The Kickboxing industry has a global turnover of 1 Billion USD, and the result can
be extrapolated to the Australian market. The extrapolation of the result and the
tremendous popularity of Kickboxing in Australia show a very healthy financial
status for the company.

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PESTLE Analysis
PESTLE analysis, also called as macro environmental analysis is the analysis of
the country’s Political, economic, social, technological, legal and environmental
forces. PESTLE analysis helps to understand how these forces may affect the
business in present and near future (Knoke, 2018).
Political The political climate of Australia is
extremely stable. The policies of
government are inclined towards
easy development of business and
filled with innovation. Australia
gives relaxation in taxes to new
ventures which is a good sign for
the kickboxing industry. Other
factors such as import export
policies do not play a role in this
industry. It can be said that the
political forces are an indication of
conducive business opportunities
in Australia (Karabulut & Sen,
2018).
Economical The GDP per capita of Australia stands
at 49,927 USD, which is extremely
good in comparison to other
developing economies. The economic

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force is an indication of the economic
conditions of Australia. The country has
kept its inflation in check and the
purchasing power parity of the country
is really strong. All these factors point
towards a positive state for the
Kickboxing industry in Australia
Social These factors comprise of the
demographics, behavioural,
psychographic and demographic
characteristics of the population. Social
force is a very big influencing force in
the environmental analysis. The social
forces point towards a health conscious
nation with rich eating and exercise
habits. Thus, social forces are in favour
of the kickboxing business.
Technological This force focuses on advancement of
technology, automation, investment in
research and development and
innovation to improve the current state
of technology. Kickboxing equipment’s
will be more modernized and be of
great utility to the population because
of the technological advancement in
the industry.
Legal Legal environmental forces mean
complying with the regulatory
framework of the country. Australia
ensures that every company is working
in according to the legal compliances.
It does not intervene in the business
until and unless it finds out that the
company is turning a blind eye towards
its legal commitments.
Environmental This force is related towards preserving
the natural ecosystem, work towards
the goal of environmental
sustainability. In order to do so,
Australia has formed a body which
audits every company which can cause
harm to the environment, and heavy
penalties are levied on finding any
breach in the environmental
sustainability program.

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Competitor analysis
It is the process of identifying the competitors and evaluating their strategies to
determine their strength and weakness relative to the company’s product and
services. Major competitors of the companies who are supplying kickboxing
equipment are:
 GIRI martial arts suppliers
 Shogun martial arts and boxing suppliers
 MASA
 Tans Martial arts suppliers
 Muay Thai Store
 MMA fight store.
The biggest competitors still being Muay Thai store and MMA fight store, their
experience in the industry is their biggest USP
Marketing Mix
Products- The company’s product
offering comprises of Product
Boxing gloves, Mouth Guard, Shin
guards, Ankle support wraps, Head
gear & Hand wraps
Price- The price at which the
company’s offer product
Due to the niche nature of the industry,
all the companies focus on value based
pricing.
Place- Physical or virtual store to
buy the equipment’s
All the competitors are into brick model
and spread across New south wales,
Sydney, Melbourne, Perth and Victoria.
Promotion- The strategy used in
promoting the company’s product
All the competitors focus on
sponsorship and tie ups with
Kickboxing tournaments. Some of them
even use digital marketing of
promotions

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Physical Evidence- The
identification of the company
through its product
The logo of all the competitors is subtly
mentioned on the equipment’s
People- The kind of people who
represent the company
The companies have adopted a
different recruitment style; they hire
people on the basis of their sporting
ability, experience in playing sports or
Kickboxing.
Positioning The companies are positioned as
reliable providers of Kickboxing
equipment who have been in business
for quite some time now.
Customer analysis
Understanding the customer is extremely important before starting any
business, the customers are the people who are responsible in defining the
weakness. It is rightly said that without interested customer there is no business
(Kotler, 2015).
Australian population stands tall at 24,772,747 people, and almost 30% of the
population falls under the age below 35 years. The above data shows that the
young population of Australia is a big beneficiary to the development of
Kickboxing sport; hence the health conscious population of Australia is a big win-
win for the industry.
Buyer Behaviour
It is the systematic process which consumers follow when entering the purchase
process and making buying decisions. The step by step consumer decision
making process along with the common modes of decision making is useful when
developing marketing strategies. In case of Kickboxing the buyer behaviour is a
factor of Peer group, marketing material, and growing awareness regarding
kickboxing and health benefits surrounding the sport (Horner & Swarbrooke,
2016).
Consumers V/S Industrial consumers
The company wants to get into a wholesale model, wherein it will purchase the
equipment’s directly from Japan and sell to the retailers of Australia through its

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retail store and warehouse. The company wants to go with B2C model and pass
on the benefit of importing products from Japan to the end consumers.
SWOT Analysis
SWOT analysis is a micro environmental analysis of the company which focuses
on the forces internal and external to the organization. It is advised that the
company should leverage its strength, minimize the weakness, exploit the
opportunities and stay away from the threats.
Conclusion
The roots of Kickboxing belong to Japan, where this sport was first discovered,
ever since Kickboxing has become a familiar name across the globe. Kickboxing
is a combination of martial arts and boxing which apart from being a spectator
sport is an extremely healthy way to stay fit. Australia is slowly turning into a
growing destination for the sport, people are engaging in different sports
tournament and getting trained to master the arts of Kickboxing. Relatively
Strength
Low pricing strategy
Combination of gym ,equipmnet and
sporting activity.
Innovation in Prodcut designing.
QUality, duarable and reliable
prodcuts
Weakness
No expereince in the industry
Moderate competiton i the industry.
Growth of smal players catring to
different Kickboxing needs
Opportunity
Increasing awarness regarding
Kickboxing.
The growing euphoria around the
Kickboxing tournaments.
Increase in number of health
conscious people.
Requirement of a comprehensive
player fulfilling all the requirement
around Kickboxing
Threat
Governmnet intervention
Growing competiton in Australia.
Number of international players
foraying in the market.
Growing import of material from Japan
SWO
T

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young population of Australia makes it a very favourable nation to expand the
business activities in and around the country. The company is on a mission to
change the landscape of the Kickboxing products which are being sold in the
country. The plan is to not only provide premium quality kickboxing head gears,
gloves, knee gloves and many more, but they also wants Australia to emerge as
the front runner in the development of Kickboxing around the globe. The USP of
the company in this evolving market is to provide the best quality product with
cost leadership and provide training to the interested candidates by some of the
prominent names of the Kickboxing arena. The report can be concluded by
saying, Australia is definitely one of the promising destination to further
penetrate the kickboxing industry and the same is proven by its healthy macro –
environment.
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