Sports Fitness Centre in Mayfair London - Case Study Example

Table of Contents Introduction 2. Situation Analysis 3. Target Market Analysis 4. Problems and Opportunities 2 5. Marketing strategy 2 5.1 Product Positioning 2 5.2 Marketing mix 3 6. Implementation and Control 7 7. Conclusion 8 References 10 1. Introduction Sports Fitness Centres are gaining in popularity as government policy also encourages participation in sports and fitness exercise. Leisure centres, as they are called, had little competition earlier but of late the demand has increased because of increase health consciousness. Hence, starting a Sports & Fitness Centre in Mayfair, London would need a market analysis. Being an entirely new organization it would need to have a strategy that would entail market penetration strategy. 2. Situation Analysis Overall wellbeing and health fitness has become a major concern in every society. There has been an increase in the number of people becoming obese and overweight. More than half of London adults do not engage in any form of sport or fitness program. To achieve a healthy weight the Mayor of London proposes to work closely with and encourage a wide range of people to become physically active and eat healthy (Johnson, 2011). Other measures include making sport and active recreation opportunities affordable, in addition to supporting workplace health programmes. London faces a significant shortage of sporting facilities in respect to the demand. 3. Target Market Analysis Britain is in the grip of obesity epidemic (This is London, 2011). According to experts by 2050 at least 60 percent of the population will be obese (London Assembly, 2010). The target market is the young adults and the adults of both sexes. According to a study by the London-based International Obesity Taskforce that 28 per cent of boys and 36 per cent of girls in the UK are now overweight or obese (Dobson, 2006). A UK government report estimated that by 2010 12 million adults and 1 million children in England will be obese (Medical News Today, 2006). Less physically active and eating more junk food is adding to the problems. Thus, the target market for the fitness centre would be the age group 16-40 of both sexes. 4. Problems and Opportunities The people of Mayfair would not be aware of the Fitness Centre yet to open. People could be apprehensive of the quality of service, equipments and coaches. However, since the demand exceeds supply, the opportunity could be used to penetrate the market with the right strategy. The government is also supporting fitness initiatives and obesity is at an all time high. 5. Marketing strategy Customers seek value for money and hence the fitness centre should understand the services it can extend in exchange for money while knowing the target audience to whom the services are directed. The objective is market penetration in the initial stages. Knowing the target audience will enable to include the essential features at the fitness centre. The core strengths of the fitness centre need to be communicated effectively. The marketing strategy for ABC Sports fitness centre would take into account various factors in devising the marketing strategy. 5.1 Product Positioning The leisure industry is a high-growth area which includes health, fitness, sports and recreation facilities. This sector contributes 13.5% towards the total employment in the United Kingdom. There are two reasons for the growth of the sector. There has been the increase in the consciousness to keep fit as health concerns have risen, which has hiked the demand for better facilities and spaces for exercise (20th Century London, 2010). In addition, sedentary lifestyle has urged people to look for convenient places to exercise. Thus, Sports Fitness Centre, Mayfair London, should position itself as a Fitness and Health Club. 5.2 Marketing mix To develop the marketing strategy the essential of the marketing mix have to be evaluated. Product mix The product should satisfy a need or a want. The need at this moment is healthy living. Healthy living can be achieved through different activities such as participation in sports (Football, rugby, badminton, tennis), in body building activities such as gym aerobics and workouts. However, the new age fitness therapies also include yoga and meditation which is equally beneficial. Yoga and meditation help to de-stress the body and are great ways to increase health and total well being (May, 2011). Yoga and meditation also provide psychological benefit as it makes the practitioner more conscious of the self, makes them aware of their own potential. Meditation lowers oxygen requirement and reduces the respiratory rate. Moreover, squash and badminton have become unfashionable and people look for new age products/services to fitness. This differentiation can come from the inclusion of yoga and meditation as part of the fitness program. Another differentiating characteristic of the centre should be to tailor the product to suit individual needs. The fitness program should have a holistic approach where nutrition guidance is also provided. Nutrition is an important part of weight management. The centre should also include a massage room and spa area. Spa has gained popularity as a means to relax and this could be an attraction. Price Mix Price is the sum of values consumers exchange for the benefits of having or using a product (Briohny, 2006). Pricing is a rigorous process as it has to take into account the specific circumstances into consideration. The pricing objective is to initially make a market penetration. This require taking into account the demand, the costs, the competition prices on offer and the financial status of the people in the vicinity. The consumers would be attracted to the product only when the benefits outweigh the costs. Mayfair is up market vicinity but people diverse backgrounds also come to Mayfair. Pricing cannot be universally applicable and would depend upon the activities engaged in and the equipments used. The Centre can engage in differential pricing based on services used. Besides, there could be promotional benefits by way of discounts for the first 100 that register at the Centre. Seasonal discounts could also be offered because products and services would also be tailored for the young adults (16-22). Hence during the vacations prices could be reduced to attract a larger number of students. Place Mix Mayfair, London is very strategically located and densely populated. Mayfair is an area in central London which is the main commercial district featuring some of London’s best hotels, restaurants and shopping districts (Jeremy, 2011). The area has several sports fitness centres and the competition is intensified as hotels too have started offering fitness facilities to non-residents (Santander, n.d.). The area has easy access through the entire transport system and hence good participation and registration is expected. Promotion Promotion includes methods and procedures which help the organization communicate with the target market (Briohny, n.d.). The objective is to build awareness, differentiate product and organization from competitors, to communicate the benefits of the product, to build and maintain the overall image and reputation of the organization, and finally to persuade the customers to buy the service. They have to cater to the needs of the market they enter. Promotion of product and services entail four different activities – advertising, personal selling, sales promotion and public relations. The effectiveness of the promotion strategy depends upon how the marketer can communicate about the product/service to the target segment. Advertising Advertising in the popular local dailies and the television should start at least a month before the actual opening date. Outside the centre also details of the services offered should be put up and someone should be available to answer personal queries for walk-ins. With prior permission of the principals of schools, advertisements could be put up on school notice boards as the objective is to attract and educate the young children. Flyers can be inserted in school newsletters. These would help to build awareness of the service at Mayfair both among the children and their parents. Since the area also houses commercial centres, flyers can also be distributed through the shopping malls. Personal Selling This would entail visiting schools and giving presentations on ill-effects of obesity, of the ill-effects of the sedentary lifestyle, of the benefits of keeping fit and the methods that can help them maintain healthy living. Individual attention would be given both at the time of selling the product and when customers come in to register. The fitness chart and the nutrition chart would be tailor-made to suit individual requirements. Sales promotion Initially lot of efforts would have to be put in sales promotion. Bulk discounts could be offered to commercial organization, to schools and other institutions in the vicinity. Initially, free registration with skeletal facilities could be offered and when the clients seek higher benefits, membership fees could be levied. At the shopping malls, the Fitness centre could enter into alliance with some retail organization and offer free subscription to the shoppers against volume purchase of the retailers’ product. Once members are active and participate in various activities, to sustain interest the fitness centre could give away prizes of choice to lose weight and to keep healthy. New age social networking is an excellent platform to create awareness. Thus spaces like FaceBook should be utilized for this fitness centre. A page can be created and promoted among the residents of London and particularly, those residing or working in and around Mayfair area. Public relations Being a new organization they need to sponsor some sporting events. They could approach some commercial organizations and sponsor their employees’ annual sports, school annual sports. They could even sponsor some charitable events in the locality. They need to have a localized approach because the customer base would be local. Hence local events and functions should be sponsored which would give the maximum mileage to the project. People People are an important part of service delivery. The right people have to be selected and trained. These are the customer contact people and the delivery of service depends on their psychological well being, merely technical knowledge is not sufficient; they should be able to live up to the image of the organization. Physicals The ambience of the centre should be soothing in areas such as the meditation room and where people would relax after workouts. However, it should be vibrant in areas where the mood has to be given a push, when they need to be energized to get started with workouts. Colours and lighting should match the process because different colours vibrate at different frequencies and impact the mood of the people (Biopulse, n.d.). Process The centre must carry Free weight equipment, Performance training equipment, Fitness Studio equipment, Easy-Lock flooring. They must have the latest, tested equipments and also provide sauna and Jacuzzi. Operators must be well trained in not only using the equipments but also in guiding the clients in its usage. 6. Implementation and Control Implementation of this strategy would require identification of the schools and other educational institutions, of the retail stores and shopping malls in the district, of large commercial house in the area. Staff would have to be appointed at least a couple of months in advance for all functions such as marketing, operations and strategy. Those with prior experience in the sector should be taken in operations as this would enhance the image of the centre. In marketing and sales people with no prior experience should be taken so that new ideas can be generated and originality could perhaps lead to better marketing efforts. Tie-ups with schools could be demanding on time and hence efforts should start at an early stage. Parents too may have to be convinced to send their children. Press releases should be sent out to local dailies at least a week before the actual opening. Monitoring and control become challenging for new projects. Hence, a checklist should be prepared listing all activities, complete with dates and responsibilities of each individual. This should be communicated to all involved. Any venture should be able to meet the legal and ethical parameters. An organization should be able to distinguish between the short-term needs of the society and the long-tem benefits (Wiley, n.d.). The centre should think beyond making money and evaluate to what extent they are contributing towards the benefit of the society. Profitability should be integrated with the needs of the society. The society needs awareness on the health issues and hence guidance should be provided appropriately. The organization should not mislead the clients into purchase of some service that is not required by them. 7. Conclusion Marketing analysis for a Sports and fitness centre suggests that this centre would have locational advantages as it is in the commercial district. Obesity is an epidemic in London and hence this is the right time to launch the fitness centre. Government too encourages and supports such initiatives. The target segment would be the age group of 16-40 of both sexes. This centre should position itself as Fitness and Health club. To create differentiation products should add meditation and yoga in addition to the standard products offered by most such centres. Initially the price should be kept low to attract and interest the customers. Promotional offers should be launched and schools and commercial organizations should be offered special rates. A checklist would help in effective implementation and control. The project is viable and the marketing objectives can be achieved. References 20th Century London. (2010). Sports Centres and Health Clubs. Accessed 16 April 2011 http://www.20thcenturylondon.org.uk/server.php?show=conInformationRecord.213 Biopulse. (n.d.). Color Therapy. Accessed 16 April 2011 http://www.biopulse.org/color.html Briohny. (2006). Briohnys report, Accessed 16 April 2011 http://www.monash.edu.au/lls/llonline/writing/business-economics/marketing/3.3.2.xml Dobson, R. (2006). Diet: 700,000 children in UK are obese. Accessed 16 April 2011 http://www.independent.co.uk/life-style/health-and-families/health-news/diet-700000-children-in-uk-are-obese-472453.html Jeremy, K. (2011). Hotels Near Mayfair in London. USA Today. Accessed 16 April 2011 http://traveltips.usatoday.com/hotels-near-mayfair-london-22347.html Johnson, B. (2011). Beating obesity in London. Accessed 16 April 2011 http://www.london.gov.uk/priorities/health/focus-issues/obesity London Assembly. (2010). Major boost for London’s grass roots sports facilities. Accessed 16 April 2011 http://www.london.gov.uk/media/press_releases_mayoral/major-boost-london%E2%80%99s-grass-roots-sports-facilities May, J. (2011). Benefits of Yoga Meditation Relaxation. Project-Meditation.org. Accessed 16 April 2011 http://www.project-meditation.org/a_bom2/benefits_of_yoga_meditation_relaxation.html Medical News Today. (2006). England To Have 13 Million Obese People By 2010. Accessed 16 April 2011 http://www.medicalnewstoday.com/articles/50541.php Santander. (n.d.). Industry Sector: Fitness Centre. Accessed 16 April 2011 https://www.alliance-leicestercommercialbank.co.uk/bizguides/full/fitness/parkes-sector_trends.asp This is London. (2011). Government to beat obesity epidemic by PAYING fat people to lose weight, Accessed 16 April 2011 http://www.thisislondon.co.uk/news/article-23433848-government-to-beat-obesity-epidemic-by-paying-fat-people-to-lose-weight.do Wiley. (n.d.). Scope of strategic marketing. Chapter I. Web. Accessed 16 April 2011 http://media.wiley.com/product_data/excerpt/51/04708498/0470849851.pdf Read More