Mission, Social Values and Ethical Principles at SportUNE - Case Study Example

Executive Summary This report looks to focus on a strategic marketing plan for SportUNE who looks to provide numerous facilities like gaming, outdoor activities, fitness centers etc. Here the focus is on Gym services provided by SportUNE which can be identified as a key area to achieve sustainable competitive advantage and accelerate the revenues and profit. SportUNE is in its growing stage and can look to apply an analyzer strategy in its gym business development. Furthermore the current competitive pricing strategy seems to be going well for the company and it can look to strengthen upon the same. A micro and macro analysis of the fitness industry further suggest huge opportunities for SportUNE gym centers as even though competition is fierce but SportUNE has an added advantage of high reputation and a brand name which consumers trust and prefer. Looking at the marketing objectives of the company, SportUNE looks to target a larger segment of the audience particularly in the middle and upper group of customer pyramid while less or little facilities for the lower income group. The company can further look to position its gym services towards a better working environment and high quality service atmosphere. Technological advancements seems to be the real key to success for the company as it can help SportUNE gym facilities to adopt to the changing needs and wants of consumers and ensure maximal customer satisfaction along with higher profit and revenue generation. Table of Contents Particulars Page No 1.0 Introduction 3 2.0 Mission, Social Values and Ethical Principles at SportUNE 4 3.0 Smart Objectives 4 4.0 Hierarchy of Strategies 5 5.0 Porter’s Five Competitive Force Model 6 6.0 Business Strategy 7 7.0 Micro and Macro Level Analysis 7 8.0 Market Research 9 9.0 Marketing Mix 10 10.0 Segmentation and Targeting 11 11.0 Differentiation and Positioning 11 12.0 Conclusion 12 13.0 References 13 1.0 Introduction This report has been prepared in a comprehensive manner to focus upon the strategic marketing plan of SportUNE. SportUNE is a non-profitable organization which is an entity controlled under University of New England and contributes highly towards the well being of the University and the Regional Community. It offers a wide array of facilities for which it has been able to create a brand name of its own, trusted by people all across the country. SportUNE has developed overtime as a major sporting facility rated finest among the country. It offers facilities such as playing field, pool, Bellevue grandstand, Creche, Café, indoor climbing wall, gym, tennis, squash, badminton etc. This reports look to focus more on Gym facility provided by SportUNE and how the same can be used to generate higher profits and revenue through the application and development of a strategic marketing plan. 2.0 Mission, Social Values and Ethical Principles at SportUNE SportUNE main mission is to educate its members in context to adding value to their health and wellbeing of regular lifelong participation in exercises. It is more inclined towards social values that concentrating on profit maximization. Socially the organization looks to develop strong links with the elite states and national sporting bodies at a global level. It looks to continuously co-operate with the local bodies to develop sport and exercise facilities and programs which benefits the state and its adjoining regions. Ethically, SportUNE looks to be transparent and fair in all its dealing and day to day governing of the organization. 3.0 SMART Objectives SportUNE is a non-profitable organization however, that in any sense does not restrict the organization for profit generation. The Sports unit has been doing well to attract more and more members towards its various indoor and outdoor gaming facilities. Majority of its revenue is generated from outdoor playing field sports while gym contributes to 18% of its total revenue generation thereby making a clear indication of business opportunity. On a whole SportUNE holds 12% of the total market share of sports and exercise industry in the country thereby making a small contribution to the overall profit generation of the industry. The profitability of the organization has shown an upward slope and its profit has increased around 1.22 times in 2014 as compared to 2013. Furthermore there has been a sharp rise in the total number of members to add to over 2000 members to various sports, exercise and other club facilities provided by SportUNE. 4.0 Hierarchy of Strategies Business strategy is a wide and unique concept which encompasses all business core functions integrate various ideology differing in various functional areas of management. Corporate Strategy These are the road level strategy which can also be explained as the decomposition of the company’s mission and vision into a concrete plan of action so as to achieve the organizational objective (Wong, Zhou, Yang & Yeung 2005). SportUNE delivers its corporate strategy in the form of developing an integrated management system so as to achieve its organizational objective of adding value to the health and wellbeing of all its members by providing unique sports and exercise facilities. Functional Level SportUNE follows a hierarchical organizational structure to ensure a better deployment of its functional strategy. There are different departments like production, marketing, human resource, operations etc which ensure the best utilization of its available resources so as to achieve organizational objective (Fletcher and Crawford, 2011). There are different managers appointed as gym instructor, customer service coordinator, business administration coordinator etc who look upon their respective functional department and work in coordination to one another so as to ensure maximal customer satisfaction. Business Level Strategy SportUNE follows more of a competitive strategy than cooperative strategy here. To ensure a better competitive position in the marketplace it follows a differentiation strategy to provide unique and superior value to all its members in terms of both quality and after sales services. 5.0 Porter’s Five Competitive Force Model Porters five force model is a unique model to analyze an industry’s competitiveness. An analysis of the gym industry in context to SportUNE has been analyzed as under. Competitive Rivalry Competitive rivalry among the gym and sport industry is on a higher note owing to a huge number of both small and big participants (Kotler, 2001). Furthermore there has been an increase in competition from the local and international clubs along with governmental sports and gym facilities. Substitute Products and Services Threat from substitute’s products and services range from mode rest to high as there has been a large number of both indoor and outdoor gym facilities available. Furthermore there are medicine and health products available which can be used as a substitute to gym. Potential Threat of New Entrants Potential threat from new entrants is high owing to lower set up and maintenance cost of gym. However, SportUNE has a lower threat from new entrants owing to its large facilities provided aiming towards health and wellbeing of its members. Bargaining Power of Suppliers Bargaining power of suppliers is low as there are a lot of suppliers available providing the general supply requirements of a gym. Furthermore, SportUNE can easily switch suppliers based on a cost benefit and quality analysis. Bargaining Power of Consumers Bargaining power of Consumers for SportUNE is low as the company provides a large number of facilities. However, when it comes to a particular facility like gym, bargaining power of consumers is high as consumers can easily switch to different competitors based on their preference and costing. 6.0 Business Strategy SportUNE business strategy is more directed towards achievement of both social and organizational goals and objectives. The organization is still in its growth stage which is clearly evident from a sharp rise in the number of its members and better customer satisfaction. On a deeper understanding of the market situation of SportUNE in particular to its gym facilities the organization can look to apply an analyzer strategy to benefit its business from advantages of both prospector and defender by making a balance of opportunity seeking of prospector against the risk aversion of a defender (Czinkota & Ronkainen, 2004). SportUNE can take a defender approach to protect upon its market share and position in its gaming facilities in New England while can look prospector orientation to introduce new innovation in its gym and ensuring better sales revenue for the organization as a whole. 7.0 Micro and Macro Level Analysis 7.1 Micro Environment Let us have a look at the differing components on micro environment for SportUNE. Competitors There are large number of health and fitness centers whose marketing strategy and marking activities has a direct influence on the business and its strategy of SportUNE. Many gym and fitness centre lack innovations and just imitate other clubs and health centers. SportUNE shall need to take advantage of this micro element to ensure uniqueness and new means to satisfy its existing and potential customers so as to enlarge its market share and profitability. Suppliers For the analysis of suppliers, SportUNE needs to look upon four major components which are equipment suppliers, estate business, cleaning company and gymnastic trainer. Furthermore selection and recruitment of international gym trainers shall help SportUNE to gain added competitive advantage over its rivals (Frambach, Prabhu and Verhallen, 2003). Distributors SportUNE can look upon lots of well known international brands for fitness equipments to choose from. A proper combination and a balanced mix of both international and domestic brands shall help SportUNE in image setting up. Consumers There has been a sharp rise in the number of members of SportUNE, particularly in the gym facility. Further the main objective for SportUNE is to enlarge its customer base and serve the target customers in better ways to create strong cordial relationship with their existing and potential customers. 7.2 Macro Analysis Political As United Kingdom has won the host Olympic of 2012, the country is in the process of boosting gaming and health fitness centers. It is more likely to increase investment from the operation of sport industry to a considerable extent so as to promote more gyms and fitness centers. Economic Recent years research suggest more people concerned about health and wellbeing and fitness industry has shown significant expansion with people coming from all walks of life. Even with the economic depression and with many people going unemployed for the last 2 years, the fitness industry seems to be weathering the storm quite beautifully. Socio-Culture Health conscious is sweeping all across the globe. There has been a significant change in the lifestyle where people prefer more outdoor games and fitness center to maintain and keep their body in good shapes (Luther, 2001). Technology With significant growth and development in science and technology continuous innovation and development has emerged in the gaming and fitness industry. The application of thread mills, rowing machines and other technology driven fitness instruments creates more convenience for customers (Luther, 2001). 8.0 Market Research Market research is an important factor to ensure long term sustainability of any business. SportUNE is currently in its growing stage and it is more likely for the organization to conduct a competitive market research for its gym facility along with a customer survey cum research to identify the needs and preferences of its potential customers and enlarge upon its customer base (Cateora, Mary & Graham, 2009). Furthermore a competitor analysis can be done on basis of setting up the best benchmarks in the health and fitness industry and comparing a customer based survey to identify the marketing strategies deployed by them and appropriately making changes in the current marketing strategy of SportUNE to deliver better performance. Furthermore it can look to identify various business related questions to its various stakeholders like Why does customer prefer another gym in place of SportUNE? What latest technological facility does a customer seek in its choice of gym? Are the suppliers satisfied with the working contracts? Is the comfort level of SportUNE gym facilities appropriate? Are the instructors and management helpful in their daily work process etc? 9.0 Marketing Mix 4P’s in context to gym facility of SportUNE has been discussed as under. Price SportUNE can look to deploy a price differentiation strategy for different fitness equipments. Furthermore the organization currently places a competitive pricing strategy which is most suitable for SportUNE. Membership fees for early birds can be reduced to gain more loyal customers whereas it can look to exhibit price skimming strategy in its gaming facilities owing to better market share (Westwood, 2002). Place SportUNE can come up with better value added products and services, further it can increase the size of its fitness centre to accommodate more customers in a single training session. Making a web presence can further add to attract more loyal customers towards the gym facility (Westwood, 2002). Product SportUNE should look to take technological advancements in its gym equipments to further add convenience and better customer satisfaction. Retardation of old and obsolete gym products with newer ones to make the gym more technological driven shall further help to enlarge its customer base. Promotion SportUNE spends huge funds in advertisements and promotional activities. For quick and speedy increase in more loyal customers it can look for new promotional offers of heavy discounts and added services like free massage, free passes for outdoor gaming etc. 10.0 Segmentation and Targeting SportUNE looks to segment its target customer on basis of both geographic and demographic pattern. Located in New England geographically it looks to target the customers of Universities and its adjoining local areas. Demographically the gym looks to target both the youth, middle-aged and elderly people (Bangs, 2002). Socio-cultural segmentation has been applied in a comprehensive manner by differentiating people who love sports and people who look towards shaping their body through fitness centers. Furthermore, the facilities of SportUNE is affordable to both middle and upper income group, however, the lower segment of the customer pyramid is not much targeted. Its target audience includes both ladies and gents ranging from the age of 12 to 65 thus targeting a larger audience. Furthermore its target market can still look to expand by offering more convenient timings particularly for the employed category of target audience. 11.0 Differentiation and Positioning Differentiation is something which can help SportUNE to gain sustainable competitive advantage over its existing and potential rivals. The organization is unique to provide differing facilities however, in particular to its gym facility it can look to equip its fitness instruments with latest technological advancements and adopt changes as per customer needs and preferences (Ireland, Hoskisson and Hitt, 2007). Furthermore positioning its gym facility to provide excellent environment and unique atmosphere to spend quality time shall add to better positioning of the company. SportUNE has already positioned itself as a renowned name in sports and fitness to ensure better health and wellbeing of its members and can look to create brand equity of the same by opening smaller fitness centers through a franchise system in other parts of the country. 12.0 Conclusion The report identifies Gym facility currently provided by SportUNE as a key growth area. The micro and macro analysis along with target market of SportUNE highlights better and larger growth opportunities for SportUNE owing to its renowned brand name created. Furthermore, SportUNE can gain sustainable competitive advantage by adopting technological advancement in its marketing strategy to ensure a faster growth of its key business areas. 13.0 References Bangs, D. 2002. The market planning guide: creating a plan to successfully market your business, product, or service, Sixth Illustrated edition, Kaplan Publishing Cateora, P.R. & Mary, C. G. & Graham, J.L. 2009. International Marketing, 14th edn. Irwin: McGraw-Hill. Czinkota, M.R. & Ronkainen, I. A. 2004, International Marketing, 7th edn. South-Western Publishing: Australia. Fletcher, R. and Crawford, H. 2011, International Marketing: An Asia-Pacific Perspective, Pearson Australia. Frambach, R., Prabhu, J. and Verhallen, T. 2003. The influence of business strategy on new product development: the role of market orientation. International Journal of Research in Marketing, 20 (4), 23-37 Kotler, P., (2001). Marketing Management, 11th edition, Prentice Publication, Upper saddle River, New Jersey Ireland, R. D, Hoskisson, R. E, and Hitt, M. A, 2007. Competing for advantage, Cengage Learning Luther, W.M. (2001).The marketing plan: how to prepare and implement it (3rd ed).New York: AMACOM; London: McGraw-Hill Wong, K, W., Zhou, S., Yang Q. & Yeung J, S. (2005). “Mining Customer Value: From Association Rules to Direct Marketing”. Data Mining & Knowledge Discovery, 11 (1), 57-79 Westwood, J. (2002).The marketing plan: a step-by-step guide. (3. ed) London, Kogan Page. Read More