Marketing Strategy Making for Perth Yoga Work - Case Study Example

1. Executive Summary: This is a summary of the proposed Australian Yoga works, we plan to call our business Perth Yoga works and as the name suggests, the business will be located in Perth. Yoga will be or main business service as we have noted that Perth has a shortfall in the same. The purpose of this is to help reach out to the sick in our society through Yoga as it has been found to be a god remedy to some ailments. Our projected sales and profits in our first financial year will be mainly to cater for our starting capital and the other expenses in starting the business but the succeeding financial years are bound to bring in much profits and increased sales. The keys to our success will be good marketing strategies of our business and our services; our report has been divided into various sections that are detailed (Brian 2002, 25). 2. Background/Product Description Our inspiration comes from Yoga Works found in New York, they have the best combination of elements and the same is to be implemented into our Perth Yoga works. Our great studios will be in a position to offer the people of Perth an escape from hard-driving city into an energetic, fast-paced retreat from daily struggles and thus giving them a chance to renew, refresh and reinvent their bodies - through Yoga. Yoga Works Perth will have it all, from Pilates, Iyengar programs and traditional Ashtanga to Gyrotonics and special Community Classes. Students will find every style of Yoga classes in many levels in our Perth sanctuaries, which will be easily accessible by bus and/or subway. Perth residents will expect the best, and thus our Yoga Works certified teachers will be in a position to deliver outstanding Yoga programs and also provide guidance and motivation meant to help students take their practice to the next levels (Johanson 2008, 23). 3. Corporate vision; Our vision is to slowly branch out to other cities in Australia over time; we are not entirely restricted to Perth. Mission statement; Bring Yoga works to Australia as a whole. Corporate goals: Sales, our projected goals for our first financial year will be meant to have the starting capital got through sales and the same used henceforth for future expansion. Growth; our Perth Yoga Works will grow slowly depending on our profit margins and the attitude of the other cities where we plan to expand into over time. Profit; projected first financial year profits will be minimal as it will be used to cover the starting capital other operational expenses like salaries to our trained teachers. Market positioning; we plan to find a central location in Perth for our Yoga works so as to enable all have easy accesses to the same from all neighbourhoods. Market entry; our market entry will be first made in Perth then slowly spread to other cities in Australia as our starting capital is marginal. Responsibility - Ethical: Our business is will try and increase availability of comprehensive resources to facilitate community interest-based growth through partnership development. Yoga Works Perth will be in a position to support and help community based organizations through mentoring programs. Yoga Works Perth will also encourage community flexibility to respond to a changing environment through government liaison and human resource development. Increasing the availability of all comprehensive resources thus facilitating community based interest through partnership development. Environmental: We (Yoga Works Perth) plan to use natural resources for our business, resources like water will be mainly used or wood to build our fitness exercise home made machines. Social: Provide advice, counseling and support to new and existing businesses and/or individuals. Demonstrate accountability, to our funders and our community, for the use of investment funds. 4. Situation/Environmental analysis of the industry – PESTEL Competitive audit: Existing Competitors Core Products Facilitating Products Strengths Weaknesses Value North Perth yoga room Yoga training Therapy Yoga therapy spacious Poor advertising 1 million $ WA School of Yoga Therapy Ashtanga Well established (1985) Poor advertising 1million $ W.A. School of Yoga Perth Therapy Yoga training Good advertising techniques Not easily accessible to the community at large since they specialise in training. 2 million $ Emerging Competitors Yoga in Perth Counselling Yoga training Good market base. No advertising is done by them. 0.5 Million $ The Bayswater Martial Arts and Yoga Centre Tai chi Group therapy Good marketing techniques 0.7 Million $ The Yoga Space Training Therapy Average marketing strategies. Poor market base 0.5 Million $ (Armstrong 1982, 197 - 211). 5. SWOT analysis Strengths Any firm's strengths will be their resources and capabilities that can all be used as a basis to develop a competitive advantage. Our Perth Yoga Works will have some of these strengths over the other Yoga works existing in Perth; We plan to have a very strong brand name that will click on the minds of even the young in society – some businesses exclude the young not knowing that they are actually the future of our business. Perth Yoga Works will work towards having a very good reputation among our esteemed customers Perth Yoga Works will also have very exclusive access to high grade natural resources that will be very favorable to our market. Weaknesses Absence of strengths will be viewed as a weakness. For example in our Perth Yoga Works business, each of the following may be considered as potential weaknesses: The lack of patent protection A very weak brand name Customers are our priority and thus poor reputation among customers will be a great disadvantage. The lack of access to natural resources can also be a weakness But it is important to note that in some cases, a weakness will be the flip side of strength. Opportunities Environmental analysis will reveal certain previously unseen opportunities for profit and growth. For instance; Customer needs that are unfulfilled, fulfilling the same equal increased profit and growth. The arrival of new technologies will mean that if utilized will lead to increased profits and growth also Threats Changes in the external environmental also may present threats to a business. Some examples of threats include: Shifts in consumer tastes away from the your business services and/or products The emergence of a substitute product will be a threat to Perth Yoga Works New government regulations may pose as a threat to our business. Increased trade barriers will also be a threat to our business in that the barriers may hinder our growth. SWOT Matrix Perth Yoga Works will not necessarily pursue lucrative opportunities but rather our business will be aimed at the development of a competitive advantage, this will by done through the identification of a fit between Perth Yoga Works strengths and any would be upcoming opportunities. For Perth Yoga Works to be in a position to develop strategies that would thus take into account SWOT, a SWOT/TWOS matrix is constructed: SWOT / TOWS Matrix   Strengths Weaknesses Opportunities S - O strategies W - O strategies Threats S - T strategies W - T strategies (Armstrong 1982, 197 - 211). S-O strategies, Perth Yoga Works should only pursue strategies beneficial (strengths) to them and leave out the rest. The essence of this strategy is for a given business to mainly dwell with their strengths as they try to improve on their weakness. W-O strategies, the ability by Perth Yoga Works to overcome any upcoming and/or existing weaknesses will enable us to pursue opportunities. S-T strategies, Perth Yoga Works should identify ways that it can use as their strengths to help reduce their vulnerability to any would be external threat. W-T strategies, Perth Yoga Works should be in a position to establish a defensive plan; this will help prevent the weaknesses of the business from being very susceptible to the external threats. Take dissatisfied customers as an example, the same is a weakness and the external threat is the customer shifting to firms that treat them better (Westbrook 1997, 46-52). 6. Marketing Objectives Perth Yoga Works should only have marketing objectives that are able to lead to sales and if sales are not met then it only means that different marketing objectives be put in place to help achieve the same. The marketing objectives we will choose should: Be very clear, measurable and should be stated in terms of a given time frame. Some of the marketing objectives that Perth Yoga Works will follow include: There should be increase awareness among our target audience by 30 percent in the next year about our products and/or services. Perth Yoga Works should b in apposition to inform their targeted audiences about benefits and features of their products and their competitive advantage, leading to 15% increased sales in one year. Remove or decrease resistance of potential customers' to buying our product/services, this will then lead to 20% increase in sale. It is important to note multiple objectives should be very clear and consistent as they tend to end up in conflicting ideas; action programs, your budget, controls and measures should all help support your set marketing objectives and if they do not make sure they do since they will contradict or hinder achievement of the same. The question to ask yourselves is whether you have resources that are necessary in the accomplishment of your objectives (Armstrong 1982, 197 - 211). 7. Target markets Type of Market Segment Shared Group Characteristics Demographic Segment These are the measurable statistics of our targeted market and they include; income/occupation and age. We intend to target the age group between 16 and 55 as they have a considerable income and would be willing to spend on our services. Psychographic Segment These are the lifestyle preferences; some people love music while others love silence. The same will be considered to our esteemed customers. Use-based Segment This segment deals with the frequency of usage of the facilities such as traveling or recreational drinking. Benefit Segment Desire to obtain the same product benefits such as luxury or comfort s termed as the benefit segment. Behaviour The tendency to come back after the first visit and it may to a very large extent be highly motivated by customer treatment. Geographic Segment Geographic segment is all about the location of the business and may be in terms of the business address. (Menon et al, 1999, 96). 8. Marketing Mix strategies: Marketing strategy is a section of your business plan that will outline the set game plan for the achievement of the set marketing objectives. The marketing strategy should include the four P’s: Product – the products that Perth Yoga Works intends to offer to Perth residents is counseling, Yoga, group therapy and exercise and/or training in Yoga. Some of the advantages of Yoga include; Yoga will emphasize the treatment of the probable cause of an ailment unlike modern medicine that doesn’t look at the cause but at the cure. Since Yoga also entails meditation and prayer, then it will be a more fulfilling form of therapy for the customers unlike modern medicine. Yoga improves muscle strain and tightness while quickly relieving poor circulation and indigestion. Price – since as identified above, our age bracket will range from students to retired folk thus we will charge moderately depending on the luxuries needed by the client. Promotional packages will be offered to new old customers who bring in new customers promotion will also be in form of points gathered by regular customers with the same being converted into a service of choice by the customer after the maximum points are got. Promotion – mass media is a very effective way of promotion but then again there is the ever used word of mouth promotion. Word of mouth is only possible when there is customer satisfaction and it is then that the customer spreads word to friends and relatives. Place/distribution – Perth Yoga Works will bring their products and/or services to the customers using a very dedicated promotional strategy that will make sure that the mass know of the new products and services brought in by our company. 9. Implementation The implementation of our Perth Yoga works business will be in the next three months once the various prevailing conditions have been met as per the laws of Australia. The business is meant to rival the existing Yoga services through better facilities and services and also through the targeting of previously neglected groups of students in Perth. 10. Control and evaluation Control entails the set government standards while evaluation of our business will be done in the next financial year so as to establish whether there is any considerable progress in our business and if none is evident find out how to achieve the same. References Armstrong, M. Management Processes and Functions, 1996, London CIPD. Bradford, Robert W., Duncan, Peter J., Tracy, Brian (2002), Simplified Strategic Planning: A No-Nonsense Guide for Busy People Who Want Results Fast! Brendan Kitts, Leif Edvinsson and Tord Beding (2000). Crystallizing knowledge of historical company performance into interactive, query-able 3D Landscapes Hill, T. & R. Westbrook (1997). SWOT Analysis: It’s Time for a Product Recall. Long Range Planning 30 (1): 46–52. J. Scott Armstrong (1982). The Value of Formal Planning for Strategic Decisions. Strategic Management Journal 3: 197–211. Lauren Johanson (2008). YogaWorks. Your Daily Thread. http://yourdailythread.com/2008/09/15/yoga-what-yogaworks/. Retrieved May 2010. M. A handbook of Human Resource Management Practice (10th edition) 2006, Kogan Page , London. Menon, A. et al. (1999). Antecedents and Consequences of Marketing Strategy Making. Journal of Marketing 63(2): 18–40.  Read More