David Lloyd Leisure Club Market - Research Proposal Example

Market research proposal Company’s background information David Lloyd Leisure Club is a health and fitness company based in Hatfield. The company operates in almost 80 clubs nationally, with about 6000 employees and taking care of about 450,000 customers (David Lloyd, 2014). The company’s branch in Hatfield offers various standard activities and these comprise of swimming pools, exercise lessons and gym equipment. The same services are offered by the company’s main competitors, Hertfordshire Sports Village and Hatfield Leisure Centre. The company targets residents in the ABC 1, who are mainly upper middle, middle and lower middle classes. The company is set to provide additional services like TV lounge, a salon, a nursery and even a car wash to those willing to pay the premium prices (Morris, 2004). Problem statement There is a huge decline of the company’s clients or members and this is thought to be a result of increased internet access. Majority of former members opt to follow the online videos and lessons on human fitness, this is not only cost friendly but also convenient as one does not have to drive to commute to the company’s gym (Algar, 2014). Furthermore, majority cancel their membership due to increased premium charges. The rate at which the company register new members is low and this means majority of the locals may not be a ware of the facility and hence opt to register in the company’s competitors (Bowie, 2004). All these lead to reduced revenue by the company, far much below the anticipated and this is irrespective of important of fitness and leisure in today’s generation (Veal, 2002). Proposal objectives 1. To propose on the best methods to ascertain the targeted clients’ opinions as far as the usage of online fitness lessons and applications are concerned (Krol, 2013. 2. To propose on the best ways to get information from the company’s competitors like the price range, basic and additional services offered, the companies’ marketing strategies and their general customers’ hospitality among others. 3. Propose on methods to find out locals’ awareness of the company services and offers. 4. Propose on ways to ascertain registered members’ opinion as far as their contract period is concerned. 5. To propose on ways to find out the locals or targeted clients’ opinions on the current charges by the company, on relation to their income and lifestyle (Campbell, 2007). Proposal research design The research will employ both descriptive and explanatory designs. Descriptive design will tend to find out the current situations of the company (Jackson, 1994). For instance, the current number of the company’s members in comparison with the anticipated figures. The research team will also find the demographic characteristics of Hatfield and use such information to make new targets of clients or members by the company. The proposed research will also ascertain the number of locals aware of the company’s services as well as offers. Explanatory research will tend to find out why the company has reduced membership and here the research team will seek the locals’ opinions as the reduction in the company’s membership. Causal research will also apply as the research will conducted on speculated fact, for instance, the brief indicates some of the expected reasons behind reduction in membership in the company and it will be the role of the research company to either confirm or nullify such allegations. The proposal: Data collection-Methodology The proposed research will seek both qualitative and quantitative data. Qualitative data are the immeasurable information and the research team will employ face-to-face or direct interviews, telephone interviews and even questionnaires to seek the respondents’ thoughts and opinions on the decrease in the company membership. The questionnaires will be developed in the simplest language possible to give respondents easy time. Furthermore, the questions will follow a certain psychological sequence, for instance, the first questions will be simple to encourage the respondents go through the entire questionnaires (Creswell, 2003). The questions format will be open ended for the respondents’ freedom to express their thoughts. Direct or face-to face interview will apply in scenarios where the respondents are not in a capacity to fill the questionnaires due to commitments or cases of handicapped (Brace, 2008). Group interview will be employed in scenarios where the respondents can only be assessed in groups and this could include students and employees in their work places (FIA ,2011). Telephone or mail interviews will be helpful in cases where the research team cannot physically meet the respondents and this could be due to the physical distances between the two, the correspondents having a tight schedule to fix the research team members in their appointment list among other reasons (Saunders, Lewis, & Thornhill, 2007. Quantitative data will be collected through observations, questionnaires, and interviews. A sample of questionnaire is attached in the appendix. The proposed sampling plan. The research will target two different kinds of populations. The workers or members in the competitors’ companies and the locals who either declined their membership or have never registered with David Lloyd for various reasons. Cluster sampling method will be applied to select respondents from the competitors’ companies and this could be workers or even clients. Quota sampling method will used to divide the Hatfield’s population into some homogenous sub-groups then pick respondents from each of the sub groups. In the quota method, defined geographical boundaries like estate or street boundaries will be used to divide the population into certain sub groups. Finally, accidental sampling will be applied in scenarios where the correspondents are in neither the sub divisions. However, the research will pick the respondents on a biased in picking only respondents who seem to be in a capacity to be a member in the company. They will use their eyes to judge the physical ability of the respondents and even their age group . This will save the research team the hustle of seeking information from children, physically handicapped and older adults who’s lifestyle has nothing to so with the services offered by the company. Issues of discussion The researching company and David Lloyd Company will have to agree on some facts before the actual research. For instance, the research company will have to provide its findings as per the stipulated objectives in the proposal. The researchers and the client should agree on some amendments or alterations in the proposal to suit the actual situations during the actual research (Barnett, 2011). However, these alterations or changes should be communicated to the responsible authority of David Lloyds before actually implemented. For instance, some population cannot be assessed due to bad weather conditions, national policies (let say quarantine) and lack of resources to reach such locations (let say bad weather road requiring 4-wheel drives) among other reasons. The research company should contact the client so that necessary arrangements can be made to see the research a success as proposed. The research team should remain ethical and reach all the designated populations for adequate data, other than visit the first sub group then speculate responses for the other sub groups by the research team members filling the questionnaires themselves. The client will demand photos of the researchers interacting with the respondents as assurance that they actually visited the sub groups as proposed. The authority of the research company must read all the expectations of the client as stipulated in the contract and terms of agreement carefully before appending their signatures. The two companies will have to agree on the magnitude of data and results expected to limit chances of disagreements during the final presentations. David Lloyd Company will have to assign two to five of its employees to work with the research team and write a comprehensive report with regard to strict adherence to the proposal. The client (David Lloyd) should provide some leeway when it comes to deadline of the research. Incase of exceeding expenditure as per the proposed budget, the research company will meet the extras then demand compensation at the end of the exercise. However, David Lloyd’s representatives must verify the extras and write a comprehensive report on the same. Data analysis Data associated to the opinions or thoughts of the targeted members of David Lloyd will be read summarized. Quantity data like those aware and not aware of the company’s services and offers will be presented in a table then finally bar graphs or pie-charts (Snijkers, 2013). In cases where respondents were expected to tick or cross alternatives in boxes, respondents with a certain choice will be counted and recorded against the other alternatives. Graphs could also be produced on the same. Information from competitor’s company will simply be read from the questionnaires or researchers’ notes while they interviewed such respondents and a summery made depending on the commonness of certain facts. Some statistic management software may also be used to analyze the quantitative data and present the results digitally. The results will then be printed and presented to relevant authority of David Lloyd. Some ideological information will be presented in some figures, flow charts and diagrams for easy interpretation by relevant authority if David Lloyd. All payments and compensations will be carried on as indicated in the contract. Cost and timing. The whole research exercise will take three months as indicated in the work plan below Weeks /Activity 1st 2nd 3rd-4th 5th 6th - 8th 9th 10th 11th 12th Signing the contract and the TOR, the client and research company Collection of research resources and seeking permission from relevant authority Pre-visit Data collection Data analysis Result submission and presentation However, the client (David Lloyd) should be lenient with the research company as some technicalities may a rise in the exercise. And the research team is required to communicate to the relevant authority of David Lloyd the moment such technicalities are detected. Furthermore, the few David Lloyd employees assigned to work with the research team must confirm some technicalities in their reports. Budget Personnel Due the budget, the research will be conducted by two supervisors and five assistants. Supervisors are expected to have minimum of masters degree in statistics, marketing, social studies and strategic management among other related courses. The supervisors must have a minimum of 5 year experience in similar researches. The five research assistances must have a minimum of bachelor degree in the courses discussed above and a minimum of three year experience in such researches. The above team must compromise of both male and female as required by the employment act. The team members must be conversant with modern or current data collection and analysis technologies like the modern software and equipment. The research company submits all relevant academic documents of the research team members to David Lloyd for verifications. The team members must be no criminal records as this may compromise their interaction with the public (respondents) (Mcguire, 2004). Term and conditions The research exercise will observe all the industry laws as stipulated in the industry act. All legal and ethical rights of the public or respondents will be adhered and the client, David Lloyd could terminate its contract with the research company should there be complains by the respondents. Information from the competitor’s companies will be sought in the correct and legally approved channels. The research results will be expected after three months but a delay of one week could be allowed in case of any technicalities, but such delay should be communicated in good time. All the works must be done according to the contract and the TOR unless there are technicalities, forcing the research team to deviate from them. Appendix A sample of questionnaire to be used in the actual research Name of respondent:……………………. Location of respondent:……………………………. Age of respondent:………………………………………… Occupation of respondent:………………………………………….. The research team members will introduce themselves (show their job identification cards and research permit) if asked by the respondents. Then take the respondents through the background of the David Lloyds including location and services offered and the motive behind the research. The respondents will be humbly requested to answer the below questions. 1. Where do you manage your fitness and health (tick one) A. Internet lessons and applications B. From local health and fitness companies C. I do not do physical fitness at all 2. Have you ever heard of David Lloyd company or associated with it in any way A. Yes B. No Give reason for your answer…………………………………………….. …………………………………………………………………………….. 3. What do you think of the current David Lloyds premium rates and what should be changed to attract more members ……………………………………………………………………………………………………………………………………………………………………………………… 4. For, the registered members, what do you think of the contract period and what should be done to encourage more members and retain the existing ones………………………………………………………………………………………………………………………………………………………………………………………… 5. With regard to your income, are you comfortable with the current company’s charges and if not what should be done to encourage be a member so that you can manage your fitness with David Lloyd…………………………………………………………………………………………………………………………………………………………………………………… 6. For members of other health and fitness companies, how much do you pay for the services and what are the privileges or extra services for premium members of such companies………………………………………………………………………………………………………………………………………………………………………………. 7. Would like to enroll with the company in any category and have your fitness well managed (tick one) a. Yes b. No Give your reasons……………………………………………………………………………………………………………………………………………………………………………………… Bibliography Algar, R. (2014) ‘Lower gym fees for more consumers in 2014, predicts industry report’. Oxygen Consulting. 14 January, 2014. [Online] Available at: http://www.pressdispensary.co.uk/releases/c993764/Lower-gym-fees-for-more-consumers-in-2014-predicts-industry-report.html[Accessed: 4 February, 2014]. Barnett, M. (2011) ‘Gyms tone up to take on their new low-cost rivals’. Marketing Week. 23 June, 2011. [Online] Available at: http://www.marketingweek.co.uk/gyms-tone-up-to-take-on-their-new-low-cost-rivals/3027713.article [Accessed: 30 January, 2014]. Brace, I. (2008). Questionnaire Design: How to Plan, Structure and Write Survey Material. London: Kogan Page Publishers. Bowie,D., Buttle, F. (2004). Hospitability Marketing. Toronto: Elsevier. Campbell, D. E. (2007). Incentives: Motivation and the Economics of Information. USA: Cambridge university press. Creswell, J.W. (2003) Research Design: Qualitative, Quantitative, and Mixed Method Approaches. 2nd edition. London: Sage. David Lloyd (2014) About David Lloyd. [Online] Available at: http://www.davidlloyd.co.uk/home/aboutdavidlloyd [Accessed: 30 January, 2014]. FIA (2011) ‘Fitness Industry Stands Strong Despite Downward Economic Trend’. The Leisure Database Company. [Online] Available at: http://www.theleisuredatabase.com/news/news-archive/fitness-industry-stands-strong-despite-downward-economic-trend [Accessed: 5 February, 2014]. Jackson, P. (1994) Desk Research: The market research series. 1st edition. London: Kogan Page Krol, E. (2013) ‘Gyms go above and beyond to entice membership’. Mintel Report – November 2013 [Online] Available at:http://academic.mintel.com/display/685104/?highlight [Accessed: 2 February, 2014]. Mcguire, J. (2004). Understanding psycology and crime:Perspective on theory and action. USA: Open university press. Morris, T. (2004). Innovations in modern busineses: strategies and employee business. New York: Routledge. Saunders, M., Lewis, P., & Thornhill, A. (2007). Research Methods for Business Students Fourth edition. Harlow: Pearson Education Limited. Snijkers, G. (2013). Designing and Conducting Business Surveys. New York: John Wiley & Sons. . Veal, A.J, (2002) Leisure and Tourism, Policy and planning. 2nd edition. Wallingford. CABI publishing. Read More