Marketing Plan for Get Fit Gym - Report Example

Marketing plan for get fit GYM Executive Summary Get Fit Gym has been introduced in the luxury segment of Doha. The concerned company will look afterthe various segments of the customers which include the male, female and the kids segment. Specialized facilities have been incorporated depending upon the needs and requirements of the customers. The price charged for delivering services to its customers is comparatively high as compared to the other gym companies operating in Doha. Various promotional activities have been adopted by the concerned company in providing unique and specialized services to its customers. The concerned company has organized various activities on the basis of its target segment. It has adopted contingency plan if the company fails to generate profitability from its business operation. The concerned company will face problem in generating revenue in the first year but it will be recovered from the second year of the business. Introduction The following report is a business proposal and marketing plan for a new gym that is to be based in the Pearl area in Doha, Qatar. The gym is to cater to individuals belonging to both the sexes and will also contain a separate section to cater to the fitness requirements of kids. In today’s world the schedule for individuals is so busy, that one does not get time to look after one’s own self. People have been searching for professional help so that they can enjoy a healthy body and spend some time in looking after their fitness and to relieve stress from their daily lives. This is where Fit Gym comes into scenario. It will be offering the customers a way to engage in fitness training, relieving stress and a way to relax and enjoy. It will be offering a variety of related activities like Strength, fitness training, Cardio Vascular training, yoga and other traditional exercises for relieving stress etc. Although most of the traditional gyms in the area have been focusing on the male sex, Fit Gym will be focusing on both the genders. The focus on the women in particular is to reflect the change in society about the status of woman and their increasing prominence in the society. The following report is a marketing plan of the gym by focusing on both the internal and external environment and developing an appropriate strategy to leverage the strength. Internal environment There are two environments that can have an impact on the organization, namely the internal and external environment. Whereas the internal environment is within the control of the organization the external environment is beyond the control of the organization. The various aspects of internal environment are discussed in the following pages to analyze how the company can leverage the strength to overcome the weakness. Legal position of the company The business being talked about is to be set up in Doha as a sole proprietorship company. The business has to take into account the various legal constraints that are involved in setting a new business in Doha, Qatar. For starting the business the company management has to file the application for the new company registration where the management has to state primary activities and the objective of the firm. The necessary documents are to be submitted with the application to obtain a license for operating the business from the government of Qatar. The legal formalities that are involved in setting up a new business in Qatar are quite easy as the government has policies in place that facilitates the setting up of new business (Kamrava, 2013). Company’s history and the main activities The company is being set up at this present moment and it is still in the conceptual phase. Hence there is no history that is associated with the company. The preliminary activities will be related to providing health services to people of all genders in the UAE in order to improve their fitness levels , help them train their bodies like professionals and to relieve stress from the lives of the people. The services that will be offered by the company will relate to: Programs for losing weight Spa and message services Cardio exercises Training for fitness Aerobics classes Sauna centre Bar for juices and healthy foods Personal training with the help of a personal trainer Separate facilities for women and men Separate kids centre to focus on the health aspect of the kids Centre for yoga or other traditional stress buster techniques The various services being offered by the FG will focus on the fact that it takes proper care of the various fitness requirements of the people of all ages. The aspect of fitness is growing in significance all over the world and the people all over the world are more concerned about the fitness than they were ever before. This tectonic shift in the belief system of the people of all ages will be taken into consideration in the operation of the new gym. The services will be designed by taking into consideration all aspects of health and fitness of the individuals (Jordan, 2011). The essential part of the gym will be the women customers. The gym is being opened for both the genders in Qatar. This is a reflection of the fact that the strict religious sentiments in the country that was associated with the women not taking part in sports is dying down with the rise of the expatriate population and increasing liberal outlook of the country towards women (Kelly and Breslin, 2010). Mission statement The mission statement of the FG will be: Offering fitness and training facilities for all individuals in Doha, Qatar aiming to achieve a generation of Qatari citizen that is fit health and active. Strategic goals The strategic goals of the company will be: Branding: The management of the company will be involved in developing the company FG as the top most fitness and health centre in the country. The company will try to earn brand reputation by providing the customers personal care along with most modern facilities. For both the genders: The facilities in the gym will be aimed at customers of both the genders and all the age groups starting from kids to adults. Modern facilities: The Gym will be providing the customers with most modern range of facilities so that the members of the gym get to train in the most modern facilities that are available in the market. Future expansion: There is always a scope to expand the services in other market if it tastes initial success with the people of pearl. Quality: It is important to note that since it is a service oriented industry quality is a very important aspect. Thus, it will be special task of the management to look into the aspects of customer service and quality. Current products and services Get fit Gym has been developed with the intention of improving the fitness of the people of Qatar. The concerned gym is engaged in developing solutions for the local corporate. The important services that are provided by the gym are in house gym design, assessment of wellness, office wellness plans and active family days. The services are being offered by highly skilled and well trained staff of the gym. The important services offered by the concerned gym can be explained as follows: Personal training: which includes receiving adequate training from the staff .The staff are engaged in providing proper consultation to its members. Nursery: Get Fit Gym has introduced an innovative nursery concept for the children which will facilitate the members in putting their children to the nursery. The nursery is controlled by the trained personnel of the concerned gym. Spa: Spa facility is offered to the woman members for enhancing their fitness Equipments: The equipment that is introduced by Get fit Gym is free weights, cardiovascular equipments and dumbbells. The outdoor fitness service that is provided by the concerned gym is children pool with outdoor heated and towels are being provided. Steam Sauna is the indoor facilities that will be provided by the gym to the member of the gym. Studio facility: The gym mainly offers interactive experience to its potential members. The studio facility is concerned with offering additional facility to its members. Air conditional facilities: The concerned gym is engaged in providing a well maintained air condition to provide more comfort to the members of the gym for protecting them from scorching heat. Kids Section: Sports and various events are provided for recreation of the children. Current financial analysis The current financial analysis of Get Fit Gym can be analyzed by taking into consideration the luxury based destination of the Gym. Therefore the balance sheet is being constructed on the basis of its location and the customer base. Forecasted balance sheet (CNY) Particulars Year1 Year 2 Year 3 Cash and cash equivalents 52800 74610 107457.8 Gym equipments 10,000 8000 6000 cost of other machines 500 400.0 300.0 cost of chairs and tables 2000 1600.0 1200.0 Total Assets 65300 83010 113758 Bank loan 10000.0 9000 8100 Total liabilities 10000.0 9000 8100 Owners Equity 55300.0 74010.0 105657.8 Organizational structure of marketing and sales department The organizational structure of Get Fit gym is structured in such a way that the activities of the gym will be equally executed by all the departments of the concerned gym. It will adopt a hierarchical structure in which the president will hold the top most position followed by the managers of different departments. The marketing and the sales department of the gym will be accountable for the advertisement activities of the gym. The various promotional activities that are required to be executed by the gym will be supervised by the marketing head. The performance of the marketing and the sales department will be monitored by the financial department of their gym. Facilities and equipment The concerned gym is engaged in providing unique and superior quality services to its members. Get fit gym is engaged in offering best value for money to its members . The workout space and equipment that is safe, clean, comfortable and close to home of the members. Personnel The human resource management is considered as the most important criteria of the Get Fit Gym. The Human Resource Management of the concerned gym is engaged in the process of recruitment of its staff or instructor with proper knowledge and skill. The female employees are responsible for imparting personal development training to the female members and also serving as attendant in the nursery where the children’s are kept. The concerned gym will have 3 nursery attendants and the number of female staff that is responsible for providing instruction and guidance will be 4. In the reception desk of the concerned gym there will be 3 staff that will be responsible in attending the members as well as performing the billing activities of the Gym. The other departments that are included in the company are the marketing, finance and the operation team. The marketing team will consist of 3 members and 4 members are assigned in the sales team. The finance team will consist of 2 members and the operation team which performs the important task in providing feedback to the management will consist of 2 personnel out of which 1 will be male and 1 will be female. Marketing and sales activities The Marketing and sales activities plays an important and crucial role in designing various strategies for the development of the business (Pride and Ferrell, 2014). Promotional Strategy: The promotional strategy adopted by the concerned gym consists of email promotions, advertisement published in the newspapers, nonprofit organization and school flyers. Product Strategy: The product strategy that is adopted by the concerned gym is providing unique and superior quality services to its members. Pricing strategy: The pricing strategy that is adopted by the concerned gym is to charge the customers on the basis of the service delivered and to fix the price by analyzing the price of its competitors. Public relation Activities: The concerned company has been established in pearl Doha which is considered as one of the luxury place at Doha, therefore the public relation team of the gym is responsible for proper advertisement of its services through newspapers, magazines, social sites etc. Distribution Strategy: The services will be distributed at Pearl in Doha. The sale strategy that is adopted by get fit gym is that a contact card will be filled by the customers and it will be provided on a specified date on which the members can avail the services. Thus it provides an opportunity to the members in experiencing the service before subscribing for membership in the concerned gym. External environment Get Fit Gym is required to consider various external factors in the environment for carrying out its business operations. Market forces The Market forces that are required to be considered for carrying out business at Pearl in Doha are , the business is influenced by volatility in relation to energy landscape that exist in the market and the civil society in accordance with the government policy plays an important and crucial role in influencing the business at Pearl in Doha. With the exploitations of oil fields in the country, the country has developed economically and financially which provides an advantage to the gym industry in expanding its business operation. Since the people of Qatar are not interested in sports therefore in order to maintain fitness , Gym industry is required to be developed which will keep them fit and healthy. Therefore both the male and the female customers prefer to join gym in order to keep themselves fit. Due to the increasing craze of the fitness club in the country, many shops have been established. The population of the country supported the growth and development of the industry (Magretta, 2013). Market trend The growth in the economic condition of the people of the region has led to the development of the fitness industry in the country. The importance of fitness and fitness training has also been outlined by the government in several of their fitness programs. These factors have led to the increase and development of the health and fitness industry in the country. The people in urban region are well aware of the trends in the global fitness industry and know that fitness is the main key to live a long and healthy life. The companies that entered into the market in the early phase have been able to develop the brand and have been able to gain early mover advantage (Freedom House, 2005). Customer’s analysis The increase in health consciousness of the people for maintaining fitness and sound health has motivated them to become the member of gym. The working ladies as well as the gents are focused on maintaining sound health condition. The increase in obesity among the customers has provoked the customers in joining gym centers. Therefore nursery has been established by the concerned company in order to benefit the female members for keeping their children (Lasserre, 2012). Benchmarking and analysis of competition (200) FACTOR Get Fit Gym Strength Weakness Competitor A Gelds Gym Competitor B Al Massa Gym Importance to Customer Products Nursery facility for the children Quality and diversification Business venture is introduced newly Fitness services exclusive for women Unisex fitness services Reputation and quality Price Competitive Lesser than the competitors High price High Competitive Competitive Quality Superior High quality Reputation High High High Selection Purchase Department The department selects the goods Reputation Purchase Department Purchase Department Quality Service Superior Dedicated customer service High price charged from the customers lesser Lesser Superior Reliability High Can build brand value New services are offered High Medium Superior Stability Sound Financial stability New to the market High High Superior Expertise High Management is experienced in the field No real expertise in the lower level High Low Superior Company Reputation Low Can be enhanced The brand name is unknown High medium High Location Pearl in Doha Has a good locality The reputation is nil Doha Doha Convenient Appearance New and unique Attractive Unknown Satisfies customers expectation Good Attractive Sales Method Direct Aggressive selling Unknown Franchise and stores Stores and franchisee Adequate Credit Policies Long Attractive to customers Can backfire Less credit is obtained Lesser Longer Advertising Highly focused Will make the brand known Customers can reject High cost is involved in advertisement High Developed Image No image Can be build ON the process of development High High High SWOT analysis The internal and the external factors have been determined for performing SWOT analysis of the concerned company. The analysis will facilitate in identifying the growth opportunity of the Gym located in Pearl (Keller, 2006). Strengths The members will have easy access to online track fitness progress The staff is well trained in offering adequate service to all its members. The concerned gym offers nursery facility to its members for keeping their children It offers wide range of facilities to its members. It organizes corporate wellness programs for its members. Personal training is also imparted to the members of the gym. It is located in such a place that is convenient for the customers. Weaknesses It charges high membership as compared to the traditional gyms The membership strategies are unproven The business venture is newly introduced It experiences an un-established customer base. The brand name is unknown. Opportunities It has partnership with nutrition franchises It provides training that will attract more customers It is favorable for organizing particular event The fitness industry is likely to grow in the recent years Threats The concerned gym is experiencing competition in the industry with its competitors. Huge cost involved in maintenance of the machines and equipments The reputation of some of the companies is very high as compared to the concerned company. Marketing goals and strategies Market segmentation The requirements of all the customers cannot be satisfied; therefore the companies are required to segment the market. The market for Get Fit Gym considers the demographic as well as the standard of living of the people on the basis of which the personal training facilities and the major gyms has been developed. The concerned company mainly focuses on targeting the male, female and the children customers in the market (Joshi, 2005). The services offered by Get Fit Gym can be segmented as follows: Segments Demands of customers Services provided Age group between (10-25) The customers within this age group focuses on maintain their figure. Get Fit Gym will provide advanced equipment and service tailoring the needs of the customers. Middle aged working men The middle aged men suffer from obesity and stress. They are very health conscious in order to avoid disease in the future. Get Fit gym will provide consulting, recreational facility for relieving their stress and applies specialized equipment for their exercise. Middle aged working women and house wives The middle aged working women and housewives in order to maintain sound health requires proper exercise and they face problem of keeping their children. The concerned company has established nursery for keeping their children Segment evaluation The segment market of the concerned company can be evaluated on the basis of demographics and standard of living of the people. The male, female and the children have been targeted in this group. Nursery has been established for the infant children and kids section has been introduced for the children going to school .Recreational facility and sports are arranged for the children’s. Segment selection The target segment has been selected on the basis of the demand of the customers. The male, female as well as the children segment has been targeted. Therefore the management of the company has focused on arranging the equipments according to the requirements of the customers. Positioning The positioning statement of the gym company should emphasize the fact that it is catered to all the segments of the customers. In case of FG, the statement of positioning should be to look after the fact that it will be providing facilities to all the genders and all the age groups. The positioning statement will be: Modern day facilities, which is focused on both the genders with separate facilities for the genders and also for the kids Marketing goals Capture about 10% market share in the Pearl region by the start of the next year. To become the most known fitness brand in the country To be the best in customer service amongst all gyms in the area Marketing strategies The marketing strategy of the company should be focusing on the promotion of the brand as the most preferred fitness brand for the people of the region. The aim should be to promote the company as the best centre for fitness activities in the region. Action plan Product Development: The operation team will analyze the new developments in this service and will implement them in the concerned company. Pricing: The concerned company will charge an amount of QR 1000to QR 3000 per month from its customers. Since the company is located in a luxury places therefore high price has been fixed. Sales promotion: The sales team of the concerned company will be involved in sale promoting activities. Direct marketing: The marketing department will supervise the direct marketing activities by assigning responsibility to distribute brochures. Banners: advertisement of Get Fit Gym will be published in the banners. Sales management: The manger will be responsible for the sales management. Word of mouth publicity: This is focused by offering satisfactory services to its customers. E marketing: An official page is to be designed where the concerned company can advertise their services and publish all relevant information related to it. Sponsorship proposal: The sponsorship proposal will promote the events and activities of the concerned company. Distribution: The concerned Gym has been established in a luxury place of Doha in order to attract the attention of the customers as well providing convenience to them. Budget Break even analysis The break even sales that will be experienced by the company is Break even sales = Fixed cost / profit margin (Cox and Fardon, 2008). = 10000 / 52800 * 12 = 2.272. Contingency plan The management of the company has analyzed various circumstances and the pros and cons of its business. Therefore the concerned company has planned adequate measures if the company fails to operate successfully in the target market. It will either merge its business with other company within the same industry or change the strategy by targeting different market segment Time table and deadlines   May Jun JUL Aug Oct Nov Dec Jan Feb Ma Apr Internal Analysis                       Setting up of objectives                       Mission and vision                       Determining the goals                       Organizational structure                       Arranging Equipments                       Improvement in facilities                       External Analysis                       MARKET Analysis                       Competitive Analysis                       Customer Analysis                       Setting marketing Goals                       market segmentation                       PRODUCT DEVELOPMENT                       Pricing                       SALES Promotion                       Direct marketing                       Banner                       Sales management Word of mouth publicity                       E marketing                       Sponsorship proposal                       Distribution                       Control the plan Goals of control The goals of the company is achieving profitability and improving the sales figure of the company. Therefore the management is required to supervise the performance on a regular interval basis. Controlling mechanism The company will formulate internal audit team consisting of members from marketing, accounting and finance team who will meet after affixed interval to analyze the performance of the business. References Cox, D., and Fardon, M. (2008). Management of finance. Worchester: Osborne Books. Freedom House, (2005). Womens Rights in the Middle East and North Africa: Citizenship and Justice. London: Rowman & Littlefield Publishers. Jordan, C., (2011). The travelling triathlete: a middle - aged mans journey to fitness. Bloomington: Author House. Joshi, R. M. (2005). International marketing. New York: Oxford University Press. Kamrava, M., (2013). Qatar: small state, big politics. NY: Cornell University Press. Keller, K. L. (2006). Marketing management. UK: Pearson Prentice Hall. Kelly, S., and Breslin, J., (2010). Womens rights in the middle east and north africa: progress amid resistance. London: Rowman & Littlefield Publishers. Lasserre, P. (2012). Global strategic management. Singapore: Palgrave Macmillan. Magretta, J. (2013). Understanding Michael Porter: the essential guide to competition and strategy. Boston: Harvard Business Press. Pride, W., and Ferrell, O.C. (2014). Foundations of marketing. UK: Cengage Learning. Appendices Income statement   Year 1 Year 2 Year 3 Year 4 Year 5             Actual customer in the 1st year 500 590 696 822 969 Subscription per person 1000 1000 1000 1000 1000 Revenue 500000 590000 696200 821516 969388.9 Cost of goods sold 100000 118000 139240 164303.2 193877.8 Gross Profit 400000 472000 556960 657213 775511 Operating Expenses 322500 363300 401296 498625 530664             EBITDA 77500 108700 155664 158588 244847 Depreciation 2500 2500 2500 2500 2500 EBIT 75000 106200 153164 156088 242347 Interest 1000 900 810 729 656 Earnings before tax 74000 105300 152354 155359 241691 Tax 22200 31590 45706 46608 72507 Net income 52800 74610 107458 109480 169840 Net income applicable to common shares 52800 74610 107458 109480.3 169839.9 Loan amount 10000 9000 8100 7290 6561 Interest 1000 900 810 729 656.1 CASH FLOW Forecasted Cash flow Statement   Year 1 Year 2 Year 3 Particulars       Receipts 52800 74610 107457.8 Capital 12500 12500 12500 Loan 10000 9000 8100 Total receipts 75300 96110 128057.8         Cash and cash equivalents 52800 74610 107457.8 Gym equipments 10000 8000 6000 cost of other machines 500 400 300 cost of chairs and tables 2000 1600 1200 Interest 200 160 120 Loan amount 10000 9000 8100 Total Payment 75500 93770 123177.8         Net Cash flow -200 2340 4880 Opening cash 0 58480 60820 Closing cash -200 60820 65700   Read More