A Marketing Plan for Body Fitness Gym - Report Example

Youth sport health club Contents 2 Contents 3 Executive Summary 4 Introduction 4 Background of the company 5 Market Analysis 6 SWOT Analysis 9 Marketing Strategy 12 Strategy 15 Marketing Mix 17 Revenue Forecast 20 Control Mechanisms 20 Conclusion 21 References 22 Appendix 25 Executive Summary The following report is a marketing plan for Body Fitness Gym. The Body Fitness gym is located in Doha in Qatar. The Gym will be targeting the youth in the area of the age group 15-25. Because of the fact that the gym targets youth population the gym company will be based near the colleges and high schools. The gym will be providing the most modern facilities and personal care for the customers who will visit the gym at a very low and affordable cost. It is estimated that the gym will break even in the first year and start earning profit from the following year. The value of the gym will be in the fact that it will provide modern facilities, it is low cost, it will provide opportunities to socialize and it will provide personalized training by experienced trainer. By providing these services the gym will earn reputation and will be the favored destination for fitness for the youth. Introduction The Gym that is body fitness Gym is designed for both male and female participation from the age of 15 to 25 years. The gym is set to be offered for both male and female. The gym offers an ideal facility for the youth of Qatar area. The youth of the area are becoming obese and are developing serious health problems. In view of these facts the gym will offer health facilities for the youth of the area in order to address health concerns. In the gym that is being newly developed there are other facilities that will be offered. Qatari people are increasingly becoming liberal towards the status of women (Freedom House, 2005). This fact of increasing status for women in Qatar is resulting in the fact that the gym will be opened for both men and women. The gym will also focus on diversity and offer several facilities such as gym aerobics, yoga classes and other facilities to focus on all round aspects of heath improvement. The fitness centre will be located near the colleges and high school area to target the youth population of the area. The youth population will be attracted to the facility as it will offer them an ideal venue to train for the youth of the area. Background of the company The gym that is the body fitness gym will target the youth population of the area. The youth population irrespective of age who are oriented towards fitness and want to enjoy a healthy lifestyle will be the target customers of the gym. The gym will be an attractive destination for the youth of the area due to the no. of facilities that youth will be offered. The gym will also offer other facilities such as internet connectivity and a coffee parlor to further attract the customers to the facility. Purpose The body fitness gym will be there to create and act as a facility for the youth in the area where the youth can have fun, spend quality time as a well as engage in body building (Magretta, 2013). The attractive feature of the gym besides the body building programs will be other facilities that will be offered to the customers which will help them socialize with friend and spend some time in their life away from stress (Onkvisit and Shaw, 2009). Mission Statement The mission of the company is to serve the youth of the area so that they can enjoy a fit and healthy lifestyle and also engage in socializing with each other. The uniqueness of the gym lies in the fact that it will offer other facilities such as coffee parlor etc and not only gym facilities (Pride, and Ferrell, 2014). Strength and Keys to success Cost of services that is affordable to the youth in the area Experienced trainers providing personal care Dedicated management team. Strategic Goals Register 2000 new customers by the end of first year. Register break even within the first year of operation Spread over different locations in the geography of Qatar over a 3 year period (Fine, 2009). Acquire a distinctive position in the health and fitness industry by providing top notch services and training. Market Analysis In a business plan analysis of target market holds a major importance. It is one of the vital parts of a business plan. Market analysis highlights the major things which will influence the growth and development of a company. By conducting market analysis the firm will be able to understand how it can perform its business functions in its targeted market segment. This analysis plays a vital role in developing business strategies of the company. Growth and opportunities of an organization can be derived from market analysis. The productivity and performance of Body Fitness Gym will depend largely on its marketing plans and activities. This gym will facilitate many people of Qatar in keeping their body fit and healthy. Market Growth Potential Qatar is experiencing huge growth in its health and wellness industry. Many companies are starting their business of gym in Qatar. The people residing in this country have become very much conscious about their health and fitness. For this reason they are going to gym for maintaining fit body. Therefore Body Fitness Gym has huge potentialities to grow its business in Qatar. The company will target both male and female customers whose age range between 15-25 years and resides around Doha. The population of this age group in Doha was 80400 in 2011. After one year it became 83616. Therefore the market size of Doha is increasing around 4% over one year (Permanent Population Committee, 2012). Industry Life Cycle In Qatar the healthcare and fitness industry targets both male and female persons. This industry mainly targets young people. This industry in Qatar is currently experience its growth stage. In past few years this industry is gaining many customers. The country is taking part in many sports and fitness events for which the people of this country are getting influenced in keeping their body fit. Moreover the population of youth in Doha has increased in past few years which facilitate the growth of this industry. Therefore in this growing industrial segment the business plan of establishing Body Fitness Gym is expected to become successful. Porter’s Five Forces Analysis This analysis will give a detailed understanding of Qatar’s market. The company will be able to know about different external factors which will influence its business operations in the target market. Porter’s five force analysis will provide knowledge about different things which will help the company in developing its marketing strategies and practices. Threats of new entrants in the market place The threat of entering new firms in health and sports industry of Qatar is moderate. New firms cannot easily enter in this market because the establishment cost of gym is high in Qatar. A company needs huge amount of capital to start its fitness business. Therefore it is difficult for the new firms to spend such huge amount of money. Moreover many big fitness centers are present in the market of Doha which acts as a barrier to new companies in establishing their fitness business (Daft, 2009). Power of Suppliers Qatar is experiencing low bargaining power of suppliers in its health and sports industry. In this market many suppliers are present who are ready to offer various gym equipments at comparatively low price. They compete with each other on the basis of price. For the presence of many suppliers, the fitness companies can switch its suppliers at a low cost. The suppliers cannot charge high price from the company as the other suppliers are charging low price for providing fitness or gym equipments (Fill, 2006). Power of Buyers Bargaining power of buyers is moderate in this industry. Presently many companies have developed fitness centers in Qatar. They are providing effective service to the customers and making them satisfied. For the presence of various fitness centers in Doha, the people residing in that region is unable to bargain much with the amount of money they have to spend in gyms. Most of the gyms in that region charge almost same amount of their customers. People of Qatar are very much concerned about their health. They spend good amount of money for making their body fit and healthy (Kotler and Keller, 2012). Availability of Substitutes There are many substitutes of Body Fitness Gym available in Qatar market. Gym is not an only place where a person can make his body fit and healthy. A person can gain fitness by doing yoga. This traditional way helps the people to become active and healthy. Many famous yoga centers are present in Doha which can attract the customers of Body Fitness Gym. Many outdoor sports centers are present in Qatar (Picton and Broderick, 2009). It is another substitute of Gym. Many people believe that performing outdoor sports will help them in gaining fitness. Various outdoor sports centers are present in the Qatar market. Competitive challenge Health and sports industry in Doha is experiencing moderate competition. But this country is experiencing rapid growth in the development of fitness centers. Therefore it is expected that with a short span of time this industry is going to experience strong competition among the fitness centers. Some reputed fitness centers like Qgym, Fitness First, Vitality Wellbeing and Fitness Centers etc are present in Doha which will be competitors for Body Fitness Gym (Swann, 2014). SWOT Analysis The result of the SWOT Analysis is derived from the analysis of both the internal and ext6erenal environment of a company. From the internal environment one gets the strengths and weakness and from the analysis of the external environment one gets the opportunities and threats (Mcguire, 2014). By performing the SWOT analysis the company is able to analyze how it can use or leverage the strength to take benefit of the opportunities, overcome the weakness and threats that the company might be facing (Lasserre, 2012). Strengths and weakness are internal to the company and refer to the dimensions of marketing, financial, organizational and manufacturing (Henry, 2008). Opportunities and Threats on the other hand talk about the external factors that have an effect on the organization such as challenges related to social factors, economic issues, changes in technology etc. The following is a list of the strength weakness opportunity and threat for the body fitness gym (Faarup, 2010). The company can use the information in this SWOT to ensure that the company may use the strengths and opportunities to achieve the goal of the company (McDonald, 2007). Strength and Opportunity The primary strength of the body fitness gym is the fact that the gym will provide various combinations of services at various prices so that the customers can exercise any of the options according to their affordability (Kelly, and Breslin, 2010). The various options provided by the club are all about flexibility in pricing and in facilities. Another strong point of the club is the fact that in the gym the facilities will be offered by experienced professions in the field who will be taking personal; care of the customers in providing the facilities (Dibb and Simkin, 2008). The facility will also provide training opportunities for the customers at flexible timing so the busy college going students and the busy students of the high school can take part in various activities of the gym and focus on building their health and have some relief from the daily stress levels of their life. Other strength of the facility lies in the fact that the gym will provide a place for the youth to come together and spend some quality stress free time and spend some time in order to socialize with other youths of their age groups. The gym will also help the people of both the sexes to come together. The key opportunities for the gym lie in the fact that the gym is located in an area that is in close proximity with the colleges and schools. This will result in the fact that the youths of the place will see the gym as an area where they can spend their leisure time as also engaging in body building activity at the same time (Keller, 2006). The rising health consciousness amongst the Qatari people will be another positive for the gym to be located in the area. The rising risk of obesity and the diseases that are associated with increasing obesity levels results in the fact that people are on the lookout for an area where they can train under the guidance of a professional trainer to maintain the health and well being. This is where the body fitness gym steps in (McDonald, 2007a). The following table lists the strength, weakness, opportunity and threat associated with the body fitness gym. Strengths Availability of different facilities Cheap and affordable Offers options for the youth to socialize Personalized training Modern facilities Flexible timing Weaknesses Financial problems being a startup firm Non availability of quality staffs Lack of recognition Lack of budget to engage in marketing campaign to promote the facilities being offered. Opportunities Good geographical presence in the vicinity of colleges and schools Rising health consciousness amongst Qatari people Rising incidence of obesity related diseases. Qatari people love to socialize. Celebrates the cultural shift in Qatar respecting the position of women. Threats Recession in the area Arrival of competitors in the market Strong credit policies of the supplier since the relationship with the suppliers will not be strong. . Marketing Strategy Value Proposition Presence of modern facilities Very low and affordable costs starting from 900 QR Qualified staffs for personal training Socializing facilities Geographic Position For setting up the fitness centre in Doha, the company will rent a property in Al Jamiaa St. The rent of this property will be 20,000 QR per month. This street is located in a very popular region of Doha. The target customers of Body Fitness Gym frequently travel through this street. Therefore this will be the most appropriate location for this gym to establish its business (Stromback and Kiousis, 2011). Market Segmentation Market segmentation of Body Fitness Gym will be based on demographic factors. Our main target customers will belong to the age group of 15-25 years. The people of young generations will come to the gym. Both male and female persons are welcomed in this gym. Young people having moderate income level can afford to join this gym. Distribution (Direct Supply/ Direct Sale) Body Fitness Gym will perform its business activities directly. It will set up the gym on the main road of Al Jamiaa St in Doha. The business will not get part in any kind of franchise business. Initially our company will open one gym centre. Depending upon the profitability of the business body Fitness Gym can open another fitness centre in different location of Qatar (Percy, 2008). Promotional Strategy Body Fitness Gym will implement the promotional strategy of advertisement for attracting its target customers. TV commercials and banners will be used by the company in reaching maximum number of customers. The business will also use internet as one of its important channel in promoting its service. Young people mostly communicate with each other with through internet. By promoting about the gym in internet the business can attract many customers. Social networking sites will be important platform in advertising the gym (Churchill, 2009). Positioning Body Fitness Gym will put huge effort in positioning the brand as the best gym in Doha. The main focus of the business will be in building its good reputation by satisfying its customers. Marketing Goals The marketing goal of Body Fitness Gym is to establish its strong brand image in the market of Qatar. The business wants to become the best gym in Doha. It wants to generate good revenue by satisfying maximum numbers of young people. The gym will also involve in organizing many fitness programs and making people aware of healthy habits and different types of exercises (Alba and Hutchinson, 2008). Strategy The journey of body fitness will start from targeting the different people who visit or study in the nearby colleges and students in the area. In the starting phase mass emails will be sent to the people through official website of the gym. The people will be invited for an initial trial period for about 7 days at nominal costs so that they can come and see the facilities for themselves. The company will also conduct health awareness campaigns by approaching the head of the various institutions in the area. Operation The operation of the gym that is the body fitness gym is catered towards the youth who lies in the age group of 15-25 years. The customers who will visit the gym will not only be treated with the best of training equipments and facilities but the cost of the services will also be bare minimum. Additionally the gym will provide a venue for the youths to socialize amongst themselves (Joshi, 2005). There will be various forms and combinations of services from which the customers can choose from thus respecting the freedom of choice for the customers. The services will be offered to the preferred time of the customers within any time slot during the hours in which the gym will remain open (Kamrava, 2013). The various membership facilities that will be offered to the customers will be denominated by the type of card that will be offered to them (Westwood, 2002). The customers will be sometimes offered loyalty benefits in terms of membership up gradation if they are able to bring in other members to sign in for the fitness club. The various membership cards that will be offered to the customers are: Normal card- This is the most basic card that a new member will be able to choose it will come at the least cost at 900 QR per 2 months. The card will come with the following facility: Option to use the tread mill or any other equipment for 20 minutes Option to have a cup of coffee Option to use the internet to surf and download up to 100 Mb of data per week Black gold card- cost 1300 QR per 2 months Facilities such as 3 cups of complementary coffee and use a machine for 30 minutes Use internet to download up to 250 Mb data per week Gold card- cost 1500 QR per 2 months Platinum card- cost 2000 QR per 2 months Personalized trainer and use of machine for 2 hours daily Download up to 500 Mb data per week. Unlimited cups of coffee Free access to pool For the customers who will bring in their friends as new customers will be upgraded to next card for a period on 1 week so that they can enjoy the customer loyalty scheme. Marketing Mix There are various elements of marketing mix that can be used by the company in order to boost its image (Luther, 2011). The marketing mix of Body fitness is provided below Branding Branding for the company will feature the logo of the company which symbolizes that both male and female will take part in the gym. The gym will have a website where the services provide will be promoted and providing option to the customers to subscribe membership from online platform. Product The facilities that will be provided by the Body fitness Gym to the customers will act as the main draw for the customers to the gym. The facilities that will be offered by Body fitness gym are: Modern facilities and personal care (Jordan, 2011) Coffee shop to rehydrate after workout Internet facility to surf the internet A swimming pool Price The price levels that will be offered by the gym will be competitive and cater to the affordability of the youth. In addition to this the customers will be offered to use the internet facility, the swimming pool and the coffee parlor at additional price points if they want. At all level the price will be kept at such a level that the customers get the best value for the prices that they pay. Financial Strategy Start up expenditure (Cox, and Fardon, 2008) Capital investment Building the facility (1700 per month x4 months) 75000 6800 Total Investment 81800 Equipments Product Quantity Unit Price (QR) Price (QR) Treadmill 8 2000 16000 Fitness Bike 3 850 2500 Elliptical 2 1695 3390 Yoga - Mats 25 70 1750 Swiss - ball Swiss - ball 8 5 60 70 480 350 Weights 1kg 5 kg 10kg 10 10 5 30 50 70 1150 Scale 5 400 2000 Wifi Installation 2000 2000 Total 29620 Personnel Job Description Salary payment (QR) Lady Cleaner Receptionist Professional Trainer (3) Attendant for Coffee Shop 1000 850 1800 1200 Total 4850 Revenue Forecast Profit will be about 15% in the first year, 20% in the 2nd year, 30% in the third year, 35% in 4th year and 40% in 5th year. Control Mechanisms The Body Fitness Gym will operate in the Doha region of Qatar. The gym will be targeting the youth population of the area within the age group of 15-25 years. It is estimated that the company will gather good recognition amongst the people in the area and especially the youth population due to the unique facilities that the gym will be offering in terms of fitness and socializing activities. In order to estimate the customer perception the company will engage in regular surveys of the customers to understand their requirements and provide them new facilities according to their requirements. As time will pass the gym will open branches in other areas due to the recognition that it will achieve over years of operation in the area. Most of the customers will be received by the gum through referral. However in the initial phases most of the customers will come through referral and in later phases some marketing activities will also be done as fund is accumulated. Conclusion After having studied the business proposal of opening a gym in Doha area in Qatar in fair amount of detail it can be estimated that the new gym will be providing all the facilities that can be demanded by the youth in the heart of Doha in Qatar. The gym will provide the most modern facility to the customer with an opportunity for them to socialize and also help them get the best training facilities and personal care. The gym will be able to attract the customers due to these modern facilities that it intends to provide and hopefully these facilities will earn the company a good customer base and help the company break even in the first year and give the company a good customer base. References Alba, J. W. and Hutchinson, J. W. (2008). Dimensions of consumer expertise. Journal of Consumer Research, 24(3), 411-454. Churchill, G. (2009). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 25(4), pp. 98-116. Cox, D., and Fardon, M. 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The Marketing Plan: A Step-by-step Guide. NY: Kogan Page Publishers. Appendix Appendix 1: Questionnaire Dear student, We take pleasure in informing you that Body Fitness Gym is launching a new gym in your locality. We would like to conduct a market survey to understand features of the same. We would like to thank you in advance for participating in the survey. We assure you that any information that you provide in this survey will be dealt with secrecy and confidentiality. Your name:_______________________________________________________ Age: _________________ Sex: M F College year: _____________ Address: __________________________________________________ ___________________________________________________ ___________________________________________________ Mobile no._______________________ Weight:___________Height:___________ Email id: ________________________________________________________ Q1. Do you attend a gym facility? Y N Q2. If the answer is no, what are the reasons for the same? 1. There is no good gym 2. I do not get time 3. Gyms are boring areas Q3. Would you like to join a gym that lets you socialize with fitness training? Y N Q5. What are the things that you look for in a gym? 1. High quality machines 2. Personalized training 3. Swimming pool 4. Area to relax and a pool area Appendix 2: Prospectus Appendix 3: Logo of the company Read More