Individual business proposa - Essay Example

Individual business proposal Table of Contents Table of Contents 2 Introduction 3 Product/service 3 Market Analysis 5 Macro-environment of PESTEL 5 Target Market 6 Competitors of ‘All-Time Fitness Club’ in the market of London 7 Barriers to entry in the market of London 8 USP of ‘All-Time Fitness Club’ 8 Marketing mix 8 Distribution Strategy of All-Time Fitness Club 9 Pricing Strategy of All-Time Fitness Club 9 Promotional Strategy of All-Time Fitness Club 10 Conclusion 10 Recommendations 10 References 11 Introduction Product/service description The new ‘All-Time Fitness Club’ in the Russell square of London is a 1400 square feet area trying to position itself as a distinctive service provider offering varied types of services to the health-conscious customers such as yoga, zumba, boxing, aerobics, dance training, circuit training, boot camp, kick-boxing, pilates, booty ballets and many others (Kratzman, 2002).

It is extremely essential to analyse the market scenario of the region of Russel Square of London, prior opening a fitness club. After research, the region of Russel Square is found to be extremely competitive for the organizations operating in the segment of body fitness or exercise centre. This is mainly due to the presence of numerous existing competitors such as Gym Wood Green, Fitness First, LA fitness, MindBody, etc. The organization of Fitness First positions itself as a premium brand in fitness segment so as to target the high-income group customers.

As the GDP of the country is high so the per-capita income of the customers of Russell Square of London is also quite high as presented in the below graph, due to which, the buying behaviour of the customers is also high (Trading Economics, 2014). This proved extremely worthy for the organizations of fitness segment of London of United Kingdom. (Source: Trading economics, 2014) (Source: Trading Economics, 2014) After evaluating the above points, it might be stated that due to the improvement of the GDP and disposable incomes of the citizens of London of United Kingdom, the fitness centres and gyms attained a significant up-thirst.

Moreover, due to increased health consciousness, almost 8.7 million youths and baby boomers joined the fitness centres and almost 17 percent of the adults signed these fitness clubs in these recent days. As a result of which, the rate of expansion of the organizations operating in fitness segment is expected to advance by 1.3 percent in the coming years (PtNet, 2012). The strengths and weakness of ‘All-Time Fitness Club’ is analysed by SWOT analysis: Strengths: Wide range of services: it offers wide range of services such as yoga, zumba, boxing, aerobics, dance training, circuit training, boot camp, kick-boxing, pilates, booty ballets and many others.

Large square feet area: almost 1400 square feet area is used to develop the ‘All-Time Fitness Club’ in the region of London of United Kingdom. However, in order to amplify the customer base and reputation, the organization of All-Time Fitness Club need to recruit highly experienced staffs so as to present the best services to its customers. Weaknesses: Numerous competitors: the organization of ‘All-Time Fitness Club’ had to face extensive competitiveness due to the presence of numerous rival players.

As a result of which, the organization need to offer its products at a quite lowest cost. Market Analysis Macro-environment of PESTEL Political: The political stability of the government of London proved extremely effective for “All Time Fitness club” operating in the segment of fitness. The stable economic condition will amplify the prosperity of the said organization. Economic: The curse of inflation will have significant effects upon the income of the customers. So they should opt not to visit the fitness club and the resultant being fall in the demand rate of the club.

In this scenario the company will have to reduce the price rates to attract customers to their shops with minimal effect on the demand. The other economic indicators like rise in the level of unemployment or increase in purchasing power parity will shed significant effects on the level of demand. Social: As already discussed there are no social issues for the economy that can affect the operation of the business. The demand of such services is on the upward rising curve with increasing perception of the customers on this type of services.

So it can be stated that “All Time Fitness Club” will not have to face any social issue (Bates, 2008, pp. 123-134). The company needs to have a close look on teamwork, motivation of the employees and effective leadership strategies. Technological: Implementation of varied types of inventive technologies within the machineries of the ‘All Time Fitness Clubs’ will enhance its demand within the minds of the health conscious customers of London among others. Innovative sports equipment can be taken as an example.

Environmental: Businesses like ‘All Time Fitness Club’ will have to follow the environmental policies and regulations as imposed by the concerned authorities. However environmental factors like pollution, global warming or similar other factors will have minimal effect on these type of business. Legal: Legal factors like discrimination law, rules relating to consumer laws and the various employment laws as practised in the city of London will affect the operation of the business. Target Market The target market of ‘All-Time Fitness Club’ comprises of health conscious and enthusiastic individual of age-group 25-45 years.

The prime desire of the individual of the fitness club as per behavioural segmentation is to lose weight and remain free from varied types of disorders such as diabetes, cholesterol, obesity etc. Along with this, as per psychographic segmentation, the organization of ‘All-Time Fitness Club’ needs to present its products at a quite low price to its middle and low income group customers (Bradley, 2011, pp. 223-234). Porter’s five forces Bargaining power of the customers: the bargaining power of the customers is extremely high in the segment of fitness clubs or centres.

This is mainly because of the presence of numerous rival players as well as numerous products and services. Bargaining power of the suppliers: the bargaining power of the suppliers is quite low as most of the organizational entrepreneurs always to make agreements with dominant suppliers. So, in order to retain their position in the market, they try to offer the products or services at a quite low price. Competitive rivalry: the competitive rivalry is extremely high due to the presence of numerous rival players.

So, in order to position itself, the organization of ‘All-Time Fitness Club’ needs to offer varied types of inventive services to its target customers (Bates, 2008, pp. 133-144). Threat of new entrants: the threat of new entrants is extremely low as huge initial cost is required at the time of setting up the fitness centre or club. Moreover, as the level of dominance is extremely high, so the new entrants do not desire to enter the fitness segment. Threat of substitute products: the threat of substitute products or services is extremely high.

As maximum extent of the organizations, desire to develop new advanced services so as to attract new customers and retain the existing ones, so the risk of substitute product is higher as compared to others. Competitors of ‘All-Time Fitness Club’ in the market of London The reputed competitors of ‘All-Time Fitness Club’ in the market of London are Fitness First, LA fitness, MindBody, etc. Therefore, in order to position itself among these competitors, the ‘All-Time Fitness Club’ needs to offer unique services at a competitive price.

Only then, it might become successful in attracting a wide range of customers of varying income group, age-group and culture towards it-self among others. Barriers to entry in the market of London The fitness segment of London is extremely competitive due to the presence of numerous rivals with distinctive services. So, it is extremely difficult for any new player to create a stable position. USP of ‘All-Time Fitness Club’ In order to amplify the position and sustainability of the organization of ‘All-Time Fitness Club’, it tried to position itself as ‘a better place to get healthy and steady’.

The organization of ‘All-Time Fitness Club’ promotes its services with the slogan, ‘remain healthy and fit at a competitive price’ (Kratzman, 2002). Marketing Plan of All-time Fitness Club Marketing mix Product/services: the All-Time Fitness Club offers a wide range of products/services such as yoga, zumba, boxing, dance training, aerobics, circuit training, boot camp, kick-boxing, pilates so as to present a feeling of happiness and joy among its target customers (Bradley, 2011, pp. 223-234). Promotion: “All Time Fitness Club” can take the initiative to promote the company on local health magazines and daily newspapers.

It can also involve in some advertisement campaigns in educational institutions to attract the young generation toward the club. It may contact the local commercial houses to promote the same. Price: the products/services offered by ‘All-Time Fitness Club’ at a quite lowest price as compared to many other rival players of the market of London. The package systems offered is at lower levels as compared with other competitors. They can achieve this through appropriate pricing strategies. Place: the fitness club need to be placed at the busiest place so that, the customers might reach that place very easily with the help of any sort of transportations.

They can look to open the centre near rail stations or bus stops or airports. People: the fitness club might include some experienced and talented staffs in the front-office regions so as to present accurate information to the customers. Process: the organization of All-Time Fitness Club also needs to recruit some highly experienced trainers in order to offer accurate trainings to the customers (Johnson & et.al. 2011, p. 115). Physical evidence: the organization of All-Time Fitness Club also needs to design a well-designed and informative online site so as to attract the interested customers towards its end.

Distribution Strategy of All-Time Fitness Club The services of All-Time Fitness Club need to be offered at timely and with minimal cost so as to retain the existing customers and attract the new customers. Only then, the profit margin and reputation of the organization might get enhanced to a significant extent. Pricing Strategy of All-Time Fitness Club The organization of All-Time Fitness Club needs to implement appropriate optimisation of the available resources in order to attain a wide range of customers.

Only then, it might become successful to amplify its brand image and position in the market of London (Beall, 2010, pp. 134-145). Promotional Strategy of All-Time Fitness Club The organization might try to promote its services through social networking sites as well as online sites so as to increase the awareness of the customers of varying age-groups and income groups. Conclusion Conclusively, it might be stated that, in order to position the organization of All-Time Fitness Club in the market of London, it need to offer high attention over promotion of its unique services so as to attract a wide range of customers.

Recommendations In order to amplify the customer base and reputation, the organization of All-Time Fitness Club need to recruit highly experienced staffs so as to present the best services to its customers. Moreover, it needs to recruit an experienced trainer in order to offer best trainings to its customers. Only then, the reliability and loyalty of the customers might get enhanced over the brand of All-Time Fitness Club thereby amplifying its market share and profit margin to a significant extent among others.

Other than this, the organization needs to offer varied types of seasonal discount schemes to its customers so as to retain them for long time. References Bates, M. 2008. Health fitness management. Champaign, Illinois: Human Kinetics publishers Beall, A, E. 2010. Strategic Market Research: A Guide to Conducting Research to solve problems. Boston: Harvard Business School Press. Bradley, N. 2011. Marketing Research: Tools & Techniques. New York: McGraw-Hill. Hr.Blr, No. Date. How to participate in meetings.

[Online]Available at: http://hr.blr.com/HR-news/Staffing-Training/Employee-Manager-Training/How-to-Participate-More-Effectively-in-Meetings# [Accessed on 13th April, 2014]. Johnson, G. & et.al. 2011. Exploring Strategy: Text and Cases. (9th edn). London: Harlow Pearson Education Limited. P: 115. Kratzman, V, A. 2002. UK Fitness market Analysis. [Online]Available at: http://www.tekes.fi/Julkaisut/uk_fitness.pdf [Accessed on 13th April, 2014]. PtNet, 2012. The Current State of the Gym & Fitness Industry; Growth or Decline?

[Online]Available at: http://theptnet.com/fitness-industry/ [Accessed on 13th April, 2014]. Trading Economics, 2014. United Kingdom GDP per capita. [Online]Available at: http://www.tradingeconomics.com/united-kingdom/gdp-per-capita [Accessed on 13th April, 2014]. Vertex, No. Date. Word Templates of meeting agenda. [Online]Available at: http://www.vertex42.com/WordTemplates/meeting-agenda.html [Accessed on 13th April, 2014].