SportUNE Marketing Strategies - Case Study Example

SportUNE Marketing plan Name: Institution: Executive Summary This documentation provides an online marketing plan for SportUNE’s physical fitness and wellbeing programs. Through a brief introduction, it provides the firm foundation that this marketing strategy builds on and further provides a brief description of the strategy. In order to understand the online market and its relevance to this facility services, it conducts an analysis of the online market by considering various parameters of understanding and penetrating the market. Based on the nature of online market, it discusses market stratification, behavioural factors, market needs and the product life cycle for SportUNE. It also conducts a SWOT analysis for these two product/service lines in order to gauge their effectiveness in the online market. Is relevance to economy trends and market metric are also discussed and conclusion and recommendations given to enhance effective implementation. Table of Contents Executive Summary 2 Table of Contents 3 Introduction 4 Brief overview of the strategy 5 Online market analysis 6 Market stratification 6 Behavioural factors 8 Market needs 8 Product/service life cycle 9 Market entry strategy 12 SWOT Analysis of physical fitness and wellbeing strategy 14 Strengths 14 Weaknesses 14 Opportunities 15 Threats 15 New Economy Markets 15 Online Marketing Metric 16 Conclusion and Recommendations 16 References: 18 Introduction Having started in 1938 as part of the University of New England, SportUNE has over the decades developed to become one of the major sporting facilities in Australia. It is considered the finest sporting facility with state-of-the-art equipments that not only focus on physical fitness of its clients, but also offers a variety of health services to them. Through the facility, it has managed to boost students’ participation rates more than in any other Australian university. In addition, it has also constructively engaged and helped the extensive community around it through its health and exercise programs. Being a non-profit organization of the University of New England, the facility boosts for developing a reputable profile by marketing and maintaining first-rate facilities in physical wellbeing and sports. It also works hand in hand with the university to facilitate Sport & Exercise Science and Education academic programs for students. Apart from its numerous academic and exercise support to the university, the facility is a treasure to many community members who visit it for both physical wellbeing and exercise. Apart from physical exercise, fitness and wellbeing, the facility offers clubs and competitions alongside crèche and vocational care. It has thus, turned into a world class and modern sporting and family care facility. However, currently, the numerous health and physical fitness services offered in this facility are only easily accessible by students of University of New England, and the community around it alongside other corporations of clubs that come to use the facilities for competitions. Having a contextual look at the facilities, it is evident that SportUNE can expand its market not only to those who can physically access the facility, but also to those who are in other parts of the country or the world who cannot make it to the facilities (SportUNE, 2014). The fact that the facility also focuses on health and wellbeing of people or clients, indicates that it is can be of help to millions of people across the world that cannot make a physical visit to the facilities. Brief overview of the strategy This marketing plan report, therefore, presents an online marketing strategy for SportUNE, where it can avail its technologically enhanced services to its clients across the globe. Of course, it is critical to note that not all of its services can be availed online, and thus, this marketing strategy is for physical fitness and wellbeing services as two lines of product to be sold online. Technological advancements and the introduction of the Web 2.0 have brought about the possibility of having a broader worldwide market for products and services, and SportUNE should take an advantage of this. There are millions of potential clients, who for given reasons, are not able to make it to the facility, but have some of these state-of-the-art equipments installed in their homes or places of work, yet lack the professional guidance on how to use them for both physical wellbeing and exercise. This marketing plan provides them with that platform. The plan has two subcomponents, which are, documenting instructional clips on how best an individual can achieve these services on their own, and based on clients’ response to that, SportUNE will be able to continue to the second face of introducing a television program that covers some of its sessions for public viewing. Through these two strategies, it is expected that SportUNE is going to widen its market and reach out to a variety of potential clients already having a gist of its services through their websites. SportUNE did put this strategy to test without acknowledging that (SportUNE, 2014). Through its website, it availed video clips of its games and the number of views amazed the facility. This was the litmus test to what online marketing can do to an already well established facility. Since it is a non-profitable organization, this marketing strategy is likely to boom because the clients’ subscription will have to be less that those physically visiting the facility hence high chances of attracting numerous clients. Online market analysis The internet is the most dynamic market for current products and services. It is not a one-dimensional platform, but rather an all-inclusive place where people of different cultures, ages, religions, gender, race, and social status exist. This indicates that the market is diverse and hence, the targeted market is wide and unpredictable. Developing a successful online physical fitness and wellbeing platform for such a diverse market must put into consideration all these factors of diversity (Walker, et al., 2011). Therefore, SportUNE must understand that their online marketing platform targets the whole group. Of all these factors of diversity, social status is probably the best defined for this market. Market stratification As indicated, this marketing strategy avail physical fitness and wellbeing programs through video clips to worldwide clients. Of course, this service will be available to everyone who accesses the internet, but used by people of certain social status limit. Clients who will be at a position to own certain physical fitness and wellbeing facilities at home or at work, are the ones who will be able to benefit from this platform (Vos & Varey, 2013). Therefore, this marketing plan presents an idea that will serve people of middle or upper class social status since it is assumed that they will not be consumed by the struggle to provide basic needs only, but with the need to live a healthy life through considering buying such equipments. Indeed, currently, there are so many people with such equipments in their homes and houses, but lack a proper guide on how to make good use of them because of inability to access such facilities like SportUNE around their places or because of lack of adequate time or mechanisms to help them concentrate on their physical wellbeing. Such people will be the primary target for this platform. The aspect of the above-discussed social stratification platform and the fact that it will be purely online marketing leads to the assumption the targeted market is technologically able to access such online services. It is expected that the literacy level of the targeted client is above basic computer literacy level and that accessibility to internet is paramount for such clients. More importantly is the fact that such clients shall be having a high internet connectivity with high live streaming abilities to enable them follow real time procedures and practice instructions (Vos & Varey, 2013). As indicated, many people own some of these physical fitness and wellbeing facilities in their homes and houses, but lack a proper guide on how to use them. Either they, therefore, end up not realizing the full potential of these equipments, or in cases where they use them wrongly; they end up causing more harm than good to their health. These facts make online marketing both affordable and beneficial to a diverse group of people. Another significant aspect of an online marketing platform is its rapidly changing characteristic. For successful venture into the online market, SportUNE must be ready to keep up with the changes that come with it (SportUNE, 2014). Today, availing its training clips through its websites would be the most appropriate way to make people access such important information, yet probably tomorrow, putting them on YouTube might attract many clients than access through its website. This is just an example of the changing aspect of an online market. Of course, for SportUNE, the marketing management team must come up with a mechanism for subscription for membership before accessing these video clips and live streaming events of training. To spies it up, the availability of many of such platforms in the internet will force SportUNE to develop unique instructional tips that are simple and easy to follow. Behavioural factors One factual aspect of an online market is that its size is unpredictable yet it is the cheapest market venture. This platform does not target only certain corporate entities but is opened to individuals and corporate online subscription. Therefore, this market is limitless demographically and geographically(Vos & Varey, 2012). However, this marketing platform will not only focus on providing such services to clients across the world, but will focus on helping them understand and control certain behavioural factors. SportUNE online marketing strategy will help clients recognise the importance of physical activities in their lives (SportUNE, 2014). It will also have to convince online clients the importance of incorporating the exercise program in either their daily or weekly routine for effective physical fitness and wellbeing. Lastly, SportUNE will consider the fact that clients will have to be willing to utilize the benefits that come with such practices. Market needs An online platform is a unique market because it incorporates various diverse aspects of marketing strategies. In order to ensure a cost effective wellness program to such clients, SportUNE will have to customize on their service delivery. The online membership registration will be able to help an individual have an account where he/she will be able to enter his/her details to enable individual based monitoring and communication process. Through such a platform, the clients will be able to channel any queries to SportUNE expert teams and get adequate feedback on an individual basis (Popa, 2012). This benefit will help create an online client monitoring mechanism. Through their accounts, clients will be able to channel personal information concerning their progress, difficulties and get tips on how to go about them without having to expose such information to the public. Through that, the management will be able to improve on their online and even physical service delivery since some of the problems likely to be recorded will be affecting both online and physical clients to the facility. The other aspect of an online market need is convenience. SportUNE understands that online marketing leave control at the discretion of the clients. Therefore, the customers’ convenience is of critical importance (SportUNE, 2014). Of course, the clients will only use the service when it is convenient to them. This creates the aspect of the ability of the clients to save missed video clip episodes on their temporary basket list so that they can access them late at their own discretion. This is a significant aspect for the clients because they will need to follow the practice throughout for effective outcome. The last market need is a result-oriented strategy. The main aim is to attract as many clients as possible (Vos & Varey, 2013). This is properly done through positive feedback through the comments section of the facility website. The more positive comments SportUNE will get, the higher the likelihood of increase in client subscriptions. SportUNE will strive towards addressing all its clients’ needs. Product/service life cycle Unlike consumable products, online fitness and wellbeing is a unique service that will not necessarily follow all the stages of a product life cycle graph. However, the introduction phase must exist. This will encompass the advertising and promotional strategies for the new idea. In order to widen the market, SportUNE targets various social media and internet platforms to carry out awareness creation. Through Facebook, Twitter, LinkedIn and Google pages, SportUNE will let people around the world know the existence of such services (Roberts & Zahay, 2012). As indicated before, these instructional clips will be available through a link in SportUNE’s internal website. Being considered the most expensive phase of a product life cycle, this phase will require the ability to convince online clients that this is an idea worth giving a try. SportUNE will also create awareness through availing free online trial episodes running for a period of not more than two weeks. This will enable clients have their first four episodes for free just by following an internet link directing them to the facility website for video streaming. This indicates that SportUNE will begin by producing two video clips every week for the trial episodes. The reason for choosing the social media as the platform for such awareness creation is that it is currently the most used platform for social and corporate communication and analysis (Berthon, et al., 2012). Evidently, most advertisements are done through this platform. The reason for choosing the free trial episodes is to enhance the adoption or what is commonly referred to as market penetration. Once awareness is created and market penetration is achieved, the various responses will determine the growth phase of such an online physical fitness and wellbeing strategy. Of course, during this phase, a normal market will expect a reduction in promotional strategies (Walker, et al., 2011). However, for an online marketing platform, it is evident that such promotional mechanism rarely reduces since the more people get to know about the service, the more they will indicate membership or ‘like’ to such pages of services offered. Therefore, SportUNE expects such self-promotional strategies to continue even in the growth stage as a way of expanding the market (Roberts & Zahay, 2012). The growth phase is expected to lead to segmentation of either individual or group subscription based on the convenience of clients. SportUNE, therefore, will have an open approach to such growth since it had previously been able to deal with both individual and group subscriptions. Once a proper growth is registered, SportUNE online fitness and wellbeing will likely reach its maturity phase. This phase will be characterised by increase in online client subscription, many people across the internet shall have heard and even subscribed to the online fitness and wellbeing programs. However, the promotional aspects of the services will still be expected to grow with the aim of differentiating it from possible competitors (Roberts & Zahay, 2012). They systems and quality of service delivery shall have been upgraded to the required standard. One significant aspect and probably the biggest advantage of this online marketing platform is the fact that irrespective of what time the client shall have subscribed, he/she will still be able to access all the physical fitness and wellbeing clips to help him/her start from the first episode irrespective of which episode shall be realised by then. This gives online clients all-time-any-time access to any of the available episodes with adequate advice platform on what to do next (Walker, et al., 2011). This insinuates that with online subscription, there will be late subscription or registration. The last phase for SportUNE online fitness and wellbeing program is the decline stage. This phase is quite difficult to predict for such a market because of the nature of the online market. Withdrawing a marketing support for an online service such as this is difficult because it is non-exhaustible. Various copies will still be available for people once they subscribed unless SportUNE decides to withdraw from the online platform as a whole (Vos & Varey, 2012). However, it is also understood that the decline for this product depends on the unpredictable nature of an online market and hence it can be affected anytime. It is possible that another company can come up with such a program. However, the fact that SportUNE is a non-profitable organization provides a relatively firm foundation to this marketing strategy compared to if it were a profit-based organization (Berthon, et al., 2012). However, in order to remain relevant in the market for the longest time possible, SportUNE online platform will focus on healthy living through these wellness programs with consistent response to clients’ queries and constant monitoring of their comments or complains. Market entry strategy A contingency theoretical model applicable for online market entry strategy is based on the logic that the entry strategy to an online market should overcome the entry barriers, and should be contingent upon effects enabling and internet channel roles. The entry must also overcome the specific characteristics of targeted market affecting the search process. Through the internet, consumers conduct online research through cheaper and convenient platforms compared to other research channels (Walker, et al., 2011). The first online entry strategy is as a fast follower. Online fitness and wellbeing is still an underutilized part of the benefits of internet, although there has been companies being able to bring the idea to existence. The existence of pioneers to online fitness programs such as The Fitness Professional Show, which gives fitness professionals the ability to take their online fitness programs to another level, is one of the online shows that have tried to bring such programs to the market (Vos & Varey, 2013). However, one advantage of SportUNE online fitness and wellbeing program platform is that it is based on a firm foundation that the facility had already created before. This is unlike many online wellness and fitness programs that start up as new ideas (Berthon, et al., 2012). The facilities and professionals at SportUNE facility have successfully provide quality services to its clients, and that confidence and experience is enough to create a significant impact on its online strategy (SportUNE, 2014). Therefore irrespective of SportUNE entering the online market as a fast follower, it is likely to bring new ideas on how such wellness programs are handled based on its past experience with physical clients visiting the facility. The availability of the state-of-art equipments at the facility is also likely to show online clients the preparedness of such a facility in ensuring their physical fitness and wellbeing (Popa, 2012). The second online market entry strategy for SportUNE is as an online (brand) extender. This is an existing business strategy where a company’s or a facility’s product or service has been in existence before, but has been using the traditional methods rather than online platforms to sell out through the internet (Berthon, et al., 2012). Through this process, SportUNE tends to extend physical fitness and wellbeing market into an online platform with the aim of reaching many clients. This typically suggests a brand extender strategy since its services’ brand is already established (Vos & Varey, 2013). Being the best fitness and wellbeing facility in Australia gives SportUNE a cutting edge in penetrating the online market. Therefore, SportUNE will strive as a brand extender as its other entry strategy into the online market. Through these two entry strategies, therefore, the facility hopes to become a market leader despite not being a pioneer to online physical fitness and wellbeing programs. The strategy of moving into an online market platform, and hence a global market indicates that SportUNE is willing to penetrating mature markets. Having successful held its clients who visit the facility, it plans to progress into the global market with the firm foundation of its physical facilities and expertise of its professionals (Popa, 2012). It is expected that as its market matures, it will register a reduction in its new subscriptions and an increase in client loyalty. This has been the case with its Australian market. However, this market stabilization and maturity is only existent in its Australian market and expects that its new online market strategy will face a shakeout first before reaching a maturing age (SportUNE, 2014). However, it is not likely to facing a declining market any time soon. SWOT Analysis of physical fitness and wellbeing strategy A SWOT analysis of SportUNE physical fitness and wellbeing online marketing strategy significantly depends on the facilities and expertise existing within the facility. Following analysis covers the strengths, weaknesses, opportunities and threats to this strategy. Strengths The first strength that the online physical fitness and wellbeing idea has is that it is carried out the top rated sports fitness facility. SportUNE has also developed a brand name in physical fitness and wellbeing and expanding this to the online market will peg on its success in Australia (SportUNE, 2014). The second strength is its state-of-the-art technology and facilities. SportUNE has the most recent technologically available weight equipments, offer gym accreditation and has professionally and friendly trained staff. With these combinations, the facility is geared to provide quality and professional instructions, guidelines and advice on physical fitness and wellbeing for its clients, both offline and online. The other strength is facility’s multicultural approach to physical fitness and wellbeing, which accommodates many people from different cultural backgrounds. Weaknesses Perhaps the foreseeable weakness is the limitations of the clients in accessing the equipments. Clients subscribing online may not be a position to secure similar equipments as the facility and this might demoralise their quest to get physically fit as the instructional clips may suggest. Opportunities Online platform provides various opportunities to physical fitness and wellbeing. The fact that clients can be able to follow a video link or clip to help them follow instructions provides a proper brand expansion opportunity since they do not necessarily have to be physically present at the facility. The facility also has the opportunity for expansion based on feedback and responses from clients. The facility has the opportunity of future partnerships with companies that provide these equipments based on the effectiveness of its marketing strategies hence further expansion when such a strategy succeeds. Threats The biggest threat to online service provision is technological advancements, which will force the facility to constantly observe the market and update to the most recent equipments and service delivery mechanisms. The need for constant change encourages entry of new competitors into the market with recent trends hence a threat to the business. New Economy Markets As mentioned in this plan, it is evident that it conforms to the new marketing trends that take and utilize the internet as a tending platform for availing services. Therefore, the plan conforms to digitization of service deliver and internet application. The all-times, any-time availability of physical fitness and wellbeing programs for clients outlines the important advantages that digitized systems present to clients (Walker, et al., 2011). It also provides a simpler advertising and self-promoting strategy since clients and non-clients will be participants in the promotion through their ‘’likes’ or comments in the social media platform. This marketing strategy is relevant to the need to reach the global customers (Roberts & Zahay, 2012). Through an online platform, SportUNE will be a global facility able to offer health guides in terms of physical fitness and wellbeing to a wider market than it would while operating within the perimeters of the Australian facility. Hence, an online marketing platform is hence relevant. Online Marketing Metric In order to ensure successful online marketing, SportUNE plans to use an ABO marketing metric. The Acquisition, Behaviour and Outcome metric represents a focused facet of unique digital business strategy. The acquisition slogan for marketing SportUNE online is by trying to find out what the facility can do to increase traffic attraction to their website. This will be through advertisements and promotional campaigns on various platforms mentioned earlier. Once customer acquisition is achieved, the next phase of the metric is to focus on the behaviour of the website and the clients (Roberts & Zahay, 2012). The significant guiding principle will be concerned with what happens to the clients once they visit the website. This will be a critical stage for the facility since it will determine whether clients will subscribe or not. The most critical focus in this section is to provide clients with free subscriptions for a period aforementioned and cheaper subscription henceforth once they subscribe. The aspect of limited free subscription will be able to give clients a gist of training and advice the facility offers for betterment of physical fitness and wellbeing. This is likely to lead to an outcome of greater impact for the clients, the facility both online and offline. Conclusion and Recommendations From the above analysis, it is evident that SportUNE can venture into an online marketing platform for its physical fitness and wellbeing services. The platform will evidently introduce a wider market with endless opportunities which will help it reach maturity stage of its product life cycle just has it has achieved within its facility subscription. It is also evident that an online platform will provide services to global clients in a cheaper and simpler form. For the facility, its multicultural approach will enable it market this category of services to global clients while enjoying the benefits that come with online marketing platforms. The strategies discussed above also provide amicable platform to market analysis. However, SportUNE should take note of the rapidly changing aspects of online market since technological advancements introduce changes that are likely to shakeup its service delivery. It should also expect entry of new competitors before and after its maturity stage thereby making it wiser to increase the quality of its online services for a stronger branding. References: Walker, O.C., Gountas, J.I., Mavondo.F.T., & Mullins. J. W., (2011). Marketing strategy: A decision-focused approach. (2nd ed.). North Ryde: McGraw-Hill SportUNE. (2014). The gym. Retrieved September 2, 2014 from http://www.sportune.com.au/fitness-wellbeing/the-gym.aspx Popa, F. (2012). Health–Nutrition-Fitness-Wellness-an actual challenge.Journal of medicine and life, 5(4), 373. Vos, E., & Varey, R. J. (2013). Social Networks and Marketing Happiness? The Potential Role of Marketing in an Electronic World. Humanistic Marketing, 244. Vos, E., & Varey, R. J. (2012). Marketing as connecting: The ultimate source of happiness and sustainable well-being. Social Business, 2(4), 362-371. Roberts, M., & Zahay, D. (2012). Internet marketing: Integrating online and offline strategies. 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