Contingency Plan for the Gym - Essay Example

• Price: A little higher than other gyms and in line with main competitors as we are offering other services also such as bar and cafeteria etc.
• Product: Gym + 50m Swimming Pool + Cafeteria
• Promotion: We can utilize the budget by send brochures to houses located in the same locality where our gym is located. As it is known that our market share is only 16% (20,000 / 125,000 * 100), we need to increase our market share. This can be done by communicating the benefits of exercise to people. But since we are not targeting a mass market, we need to save money and should not advertise on TV or radios, but we should advertise by dispersing brochures and through direct-mail.
• Packaging: Snob-appeal of the gym should be higher than competing gyms
• Positioning: We should position our gym for everyone as promulgated by the present manager. So, we should not indulge in kind of marketing activities that discriminate among different classes.
• People: We have casual part-time workers because we are not an out-and-out gym for serious bodybuilders. We expect our customers to be occasional gym users.
• Place: Our gym center is the place where these services are going to be offered.

5) Contingency plan for the gym can involve using the large pools available for water sports. These can be rented out clubs for holding their events at our place if we are not able to attract enough gym users. This is not only going to provide us with additional revenue but will help us gain popularity. This is our backup plan if the gym plan does not work well.