Marketing Strategies for SportUNE - Case Study Example

Executive Summary The report which presents the strategic marketing plan for SportUNE focuses on the different facets which will help to understand the strategy which has been adopted by the organization. This helps to bring forward the key focus areas through which revenues and profits have multiplied. It has been analyzed that SportUNE business is growing and is at its growing phase and thereby needs to use analyzer strategy so that they are able to develop its business. The pricing strategy which has been adopted by SportUNE is competitive and has helped them to deal with competition to a large extent. The external and internal factor analysis highlights the wide opportunity that the fitness centre has despite intensifying competition. SportUNE has been able to grow its fitness business and ensure that they stay ahead of competition due to strong brand name and loyal customers which has helped them to grow their business. The main focus of the business in on customers from the medium and upper segment, as they have positioned their products and services for them. SportUNE has also been able to use the different technological advancement and make changes in the manner services is rendered to the customers which has helped the organization to develop its business and has provided the opportunity through which overall business has grown. Table of Contents Introduction 3 Mission, Value & Ethical Principles 3 SMART Objectives 3 Hierarch of Strategy 4 Porter Five Force Model 5 Business Strategy 6 Micro Analysis 6 Macro Analysis 7 Market Research 8 Marketing Mix 8 Segmentation & Targeting 9 Differentiation & Positioning 9 Conclusion 10 References 11 Introduction The report presents a strategic marketing plan for SportUNE which is a non-profit organization controlled by University of England. SportUNE looks a providing different facility to the community through fitness centre and others and has been able to grow its brand name. . It offers facilities such as playing field, pool, Bellevue grandstand, Creche, Café, indoor climbing wall, gym, tennis, squash, badminton etc. The report will highlight the manner in which SportUNE has developed its all round marketing activities and the manner in which the different strategies used by the organization has helped them to multiply their profits. Mission, Value & Ethical Principles The mission of the organization is to educate people towards the importance of being fit and bringing a change in the behaviour of people so that people start to exercise and stay fit. To accomplish its mission and vision SportUNE looks at building long term relationship with people in the elite class and sporting bodies. SportUNE looks to tie up with bodies both at the global and local level so that it is able to pursue its activities and achieve its mission. SportUNE has also remained ethical in the different activities by being transparent and fair so that all the activities can be carried out in the fair manner. SMART Objectives SportUNE looks at providing different fitness exercise and looks to make profits from the different activities it carried out. People are attracted towards the fitness facility by providing different facilities. Majority of the revenues which SportUNE makes is from different outdoor activity. Gym also contributes about 18% in the revenues and provides an opportunity to explore and grow its business. The total market share which SportUNE is about 12% and with the different opportunities which the field presents it provides an opportunity through which the business will grow. The profitability of the business has grown over period of time and the manner in which the health industry is growing and the ample opportunities it provides will ensure that the business will be able to accomplish its goals and objectives (Brassington and Pettitt, 2001). Hierarch of Strategy SportUNE looks at using different strategies and follows different ideology for carrying out the different functions which the business is facing and is as Corporate Strategy: These are the major strategies around which other strategies are developed and help the business to accomplish its mission, vision and objectives. SportUNE has developed its corporate strategy through the process of integrated management system so that its organizational objectives which are derived towards providing better health care facilities can be achieved. Functional Level: SportUNE uses a hierarchical form of organizational structure so that the different functional strategy of the business is accomplished. The different functional department like human resource, finance, marketing, production and others work in tandem with one another so that the function can be executed in the best possible manner (Berkman & Gilson, 2001). At the functional level SportUNE has different people like gym instructor, customer service coordinator, business administration coordinator etc. The different functional department carries out the work and look at being in close tandem with one another so that best results are achieved Business Level Strategy: The business level strategy followed by SportUNE is one of being competitive as SportUNE looks to differentiate its services from others. Te organization focuses on superior quality and service and has thereby been able to develop its strategy of being competitive and achieving the required goals. Porter Five Force Model This analysis will help to deal with the manner in which SportUNE is able to deal with the external environment and strategies which has been adopted by them Competitive Rivalry: SportUNE faces stiff competition in the field of gym and sports industry due to the presence of players both from the global and local arena. In addition to it players from having different stature participate in sports which has multiplied the intensity of competition Threat of Substitute: The threat from substitute products is high due to presence of different forms of indoor and outdoor activities which people can use for being fit. In addition to it the availability of different products which can be consumed as a substitute of exercise has increased the number of substitutes available. Threat of New Entrant: The threat of new entrant is high as the initial cost of investment is low. Further the wide opportunities which the sector provides and growing awareness has increased people entering the field thereby increasing the risk of new players Bargaining power of suppliers: The bargaining power of suppliers is low due to the availability of many suppliers and lower switching cost from one supplier to another. Bargaining Power of Customers: The bargaining power for customers is high due to wide options available before them but in case the customer looks for superior quality of service and better fitness centre the bargaining power reduces due to the presence of few big players. Business Strategy SportUNE business strategy is shaped towards achieving the social and the business goals. The business is still in the growing phase due to continuous growth in the customer base. SportUNE through the application of strategy of being an analyzer can look towards finding out the manner in which activities can be developed and will focus on being as a differentiator (Coughlan, Stern & Adl Ansary, 2006). This approach will help them to be aggressive and will ensure that their defender strategy will help to bring about a change in the manner different strategies are used. This strategy will help to develop their business and will provide an opportunity of increasing their business through better sales and growth in revenues. Micro Analysis The micro analysis for SportUNE is as Competitors: SportUNE faces strong competition from other players who work on the same business model and looks to provide similar services. The different gym and fitness centre looks to provide fitness services and thereby faces strong competition from other players in the market. Suppliers: The major suppliers which the business needs are equipment suppliers, estate business, cleaning company and gymnastic trainer. SportUNE needs to recruit and provide training to the required personnel so that better facilities can be provided Distributors: SportUNE need to procure the different equipments and fitness requirements from international and domestic players so that better facilities can be provided to the customers (Ismailpour & Ghafarieashtiyani, 2002) Customers: SportUNE is facing an increase in the number of customers visiting their gym and facilities so they need to develop appropriate strategies which will be aimed towards maximizing the satisfaction level of customers and ensuring better overall experience Macro Analysis The macro analysis of the external factors is as Political: United Kingdom gives increased weight age to fitness and with the political situation being such where Olympics will be held shortly will ensure huge investment and will help the political climate to be friendly towards fitness industry Economic: The economic situation of the country is strong and with people preference towards health increasing it will thereby lead towards increased opportunities for the fitness industry. With income rising and people becoming more conscious towards health the demand for fitness centres will increase Social: People preference towards health increasing it will thereby lead towards increased opportunities for the fitness industry as people are becoming socially aware towards being fit (Firoziyan, Hasangoli & Stiri, 2009). Technological: The fitness industry is witnessing continuous changes and development due to advancement of technology. This increases the risk for SportUNE as they need to look at using technology and maximizing the manner in which services are provided to the customers Market Research It is important for business to carry out market research so that future strategies can be developed. SportUNE needs to carry out market research as the business is in growing stage and carrying out market research will help to develop strategies through which more and more customers can be retained and new customers can be attracted. This will also help to develop benchmark and deal with the degree of competition which the fitness industry is witnessing (Alvarez & Casielles, 2005). The market research strategy will be based on different dimensions and areas which will help to improve the overall level of service quality and will help to develop the required standards through which quality offerings will be provided to the customers. Marketing Mix The marketing mix for SportUNE is as Price: The pricing strategy followed by SportUNE is one of differentiation where competitive pricing strategy has been adopted so that they are able to attract customers. SportUNE also looks towards having special benefits for the permanent customers and looks towards providing a bundle of facilities at a stated price Place: SportUNE is situated at close proximity to important areas which have made it easily accessible to people. Ensuring online presence and looking to attract people through the web will further improve the presence (Czinkota & Ronkainen, 2004). Product: SportUNE provides gym services by having the latest gym and fitness equipments so that people visiting the gym and fitness club can ensure better facilities and can maximize their experience (Clemons, 2008) Promotion: SportUNE looks to attract people through different promotional schemes and spends heavily in this direction so the awareness about the gym and fitness centre can be ensured. SportUNE uses different promotional schemes like discounts, free massage and loyalty points to attract and retain customers Segmentation & Targeting SportUNE has segmented its market based on demographics and geographic locations. Located in England it looks to target people from the nearby areas and aims to attract middle and upper class people to the different facilities offered to them. SportUNE also has ensured differentiation in different services and thereby looks to attract people for different indoor and outdoor activities and sports so that people preference towards fitness improves. While looking to consider the age group whom SportUNE looks to attract is seen that it aims to attract people from the age group of 12 to 65 years and aims to attract people who have a preference towards fitness and prefer to be fit so that different activities can be carried out easily (Awni, 2008). Differentiation & Positioning SportUNE has differentiated its services and products by ensuring that best facilities are provided and the experience of customers are maximized. SportUNE has differentiated by having different products and services which are of the highest standards. This has helped them to position themselves differently and has provided an opportunity through which they have been able to develop a niche market for themselves (Chrisan, 2001). The positioning statement which has been adopted by SportUNE looks towards attracting the fitness lover by having different products and services which are different from other providers in the market thereby helping to attract people based on different dimensions Conclusion The report which shows the strategic marketing plan for SportUNE looks to provide different facility to the community through fitness centre and others and has been able to grow its brand name. The report highlights the manner in which SportUNE has developed its all round marketing activities and the manner in which the different strategies used by the organization has helped them to multiply their profits. References Awni, R. (2008). Strategic position indicating. Translated by SeyedAmir Poya seyfzadeh, Management Selected Monthly, 78, 70. Alvarez, B. & Casielles, R. (2005). Consumer evaluations of sales promotion: the effect on brand choice, European Journal of Marketing, 39 (1/2), 54-70. Berkman, H. & Gilson, C. (2001). Consumer Behavior Concepts and Strategies, Kent, Boston Brassington, J. and Pettitt, M. (2001). Principles of Marketing, 2nd Edition, Prentice Hall Chrisan, P. (2001). Marketing: A Behavioral Analysis, McGraw – Hill. New York Czinkota, M.R. & Ronkainen, I. A. (2004). International Marketing, 7th edn. South-WesternPublishing:Australia. Coughlan, A., Stern, W. & Adl Ansary, E. (2006). Marketing Channels, 7e, ISBN 9780131913462 ISBN 10:0131913468 , Pearson Education Clemons, EK. (2008), ‘How information changes consumer behaviour and how consumer behaviour determines corporate strategy’, Journal of management information systems, Fall, 25 (2), 13 - 40. Academic Search Complete (AN 34879420). Firoziyan, M., Hasangoli, T. & Stiri, M. (2009). Investigation of the effectiveness of the services on different processes affecting consumer decision. Commercial Management Magazine, 1 (3), 125-146. Ismailpour, H. & Ghafarieashtiyani, P. (2002). 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