The Promotional Strategies

Running head ENTREPRENEURSHIP AND SMALL BUSINESSES Entrepreneurship and Small Businesses Name of the Student: Name of the University: Author ’sNote 1 ENTREPRENEURSHIP AND SMALL BUSINESSES Table of Contents Pricing and Sales projections ..................................................................................................... 2 Outline of price of product ..................................................................................................... 2 Pricing strategy ....................................................................................................................... 2 Sales Projections .................................................................................................................... 2 Marketing Plan ........................................................................................................................... 3 Ownership and Management Plan ............................................................................................. 5 Operational plan ......................................................................................................................... 6 Financial Section ........................................................................................................................ 7 Projected Profit and Loss Statement ...................................................................................... 7 Projected Cash Flow Statement ............................................................................................. 8 Executive Summary ................................................................................................................... 9 Reference .................................................................................................................................. 10 2 ENTREPRENEURSHIP AND SMALL BUSINESSES Pricing and Sales projections Outline of price of product The business of Fither fitness club would be providing mostly services which involve cardio classes, online classes, fitness dance regime, personal training classes, youth fitness programs. In terms of products, the business would provide strength building equipment, energy boaster drinks, protein bars and drinks. The business would be charging afee of $190 per month for classes held six days aweek. Pricing strategy The business would be following the market based pricing strategy for setting The Prices Of The Products. The business in case of such a strategy would review the prices charged by its competitors and accordingly set prices so that the business can also remain competitive in the market (Pauz é,Ekeh & Potvin Kent, 2020) .The business would consider the established fitness clubs in the market of Canada as the benchmark and accordingly decide upon the price which is to be charged for the services. Equinox in Toronto which is a well-established high fitness gym charges within arange of $ 190- $ 205 monthly from its customers. It is on the basis of such estimate that business of Fither fitness club estimates the prices which is to be charged from customers (Chatelaine.com 2019) .The fitness products such as proteins, bars and equipment ’swould be sold at 10% margin above costs so that some gain can be generated from such sales as well. Sales Projections [Fither Fitness Club] Income Statement Years Ending: Revenue 2020 3 ENTREPRENEURSHIP AND SMALL BUSINESSES Sales revenue $ 150,000 (Less sales returns and allowances) Service revenue $ 228,000 Interest revenue Other revenue $ 40,000 Total Revenues $ 418,000 The sales projection which is presented above appropriately shows that business considers the price range for the services to be $ 190 per month. The club would provide online classes in two batches one is the morning batch and another would be evening batch. In addition to this, itis estimated that the business would be having acapacity of 50 members per batch in in the first two years of operations (Heroux, 2017). The business would look to expand its operations once a solid reputation is developed in the market. The service is revenue is computed considering the two batches and 50 members each batch providing afee of $ 190 per member per month. The sales revenue which is portrayed in the table mainly reflects revenue which the business is able to generate sales of its products like equipment, protein bars and powders. In addition to this, the fitness club also rents out its space on Sundays for events such as competitions and thereby generates some additional revenues which are portrayed in other revenues. Marketing Plan The marketing plan for the Fither fitness club would focus on appropriately promoting the operations of the business so that more demand can be achieved in the market. A table which is formulated below shows The Promotional Strategies which would be applied by the business so that itcan reach out to more and more customers: Promotion Objectives Strategies Action steps Promotion Budget Evaluatio nmetrics Reach out to target Effective utilization of social media. Twitter, Facebook to The management of the company would $100 Increase in 4 ENTREPRENEURSHIP AND SMALL BUSINESSES Audience of the business reach to reach out to more customers look to open its own websites and build a social market presence so that the same can be utilised in an effective manner. followers for the Fitness Club Use of Advertisement in Television and Print Media The business would be using pamphlets and fitness magazines as well so that an awareness can be spread in the market (Davidpublisher.org . ,2021) $1000 Increase in Number of members of the Club. Organizing Competitions and Fitness shows to attract attentions The business would be using events as a tool to attract attentions and portray the skills and fitness which can be developed by joining the Club $2000 Increase in followers for the Fitness Club To demonstrat e to the people that everyone can maintain fitness Offer first discounts if membership istaken immediately for the first 20 members The business would be offering discounts to the members and in this manner non- interested people would also sign up for the experience which would be rewarding (Andreasson & Johansson, 2014) . $500 Batch strength increased. Attracting Corporate women by offering them flexible batch timings or recorded This would ensure that the business is able to attract more 5 ENTREPRENEURSHIP AND SMALL BUSINESSES Ownership and Management Plan The structure of the business is general partnership as it has been managed by five of us together and we have equally invested and share profit or loss, to be attained. The business would sell fitness and gym equipment, exercises, fitness activities and online fitness sessions (Le Masurier et al., 2016) .The business would be opened following apartnership structure of videos. clients and even demonstrate to the people that itisnot late to switch to fitness regime. Introducing Fitness Dance and extra activities so that fitness can be inspired for all categories of female. The business would look to provide an area for the women where that can stretch and undertake dance lessons which also promote fitness . $1000 Increase I number of members To retain members for a long period by providing diversified service options The club would look to provide extra facilities like free day where rest and massage would be provided along with healthy lunch options. The strategy would help in achieving satisfaction for the members and also for retaining them for a long period. $4000 Increase in number of members The business would recognise hard work of some members and appreciate them as well as post blogs regarding their success. The intention of the management isto both promote the services of the club and also encourage the member. $1000 Retentio nof members Improvement in the work environment and better equipment access This would ensure that safety requirements are maintained and women feel comfortable while working out in the environment $2000 Retentio nof members 6 ENTREPRENEURSHIP AND SMALL BUSINESSES abusiness and would be owned jointed by agroup of five male fitness enthusiasts, with the intention to open abusiness focused on the creation of awomen fitness club. The organizational structure would comprise of the five main partners at the head of operations and all the major decisions would be taken consulting the viewpoints of all the partners The partners would be hiring managers who would be responsible for the club and this would be females candidates only. The manager would report to the partners directly and would run day to day operations of the club. The club would have areception department, finance department and acore operation department (Lim, Romsa & Armentrout, 2016). .The core operation department would comprise of instructors and fitness experts who would direct the classes. The business would have aseparate department which would sell protein bars, powder, and equipment. There would be an IT team who would handle the operations of online classes and ensure that the network settings are appropriate and meets the requirements of the company. The entire department would be working under the manager and it would be the responsibility of the manager to look after day to day operations of the business. The business would also hire accountants so that a track can be maintained on the inflow of cash and revenue from services and product sold by the club. Operational plan The main focus of the operations will be to allow female individuals carry out training and fitness sessions along with exercises to keep themselves healthy and fit. The base for club where it would be established will be Yonge St Unit 4, Richmond Hill, Canada. The major research resources could be loans, financial services provided by banks and financial service providers, trade association, legislator compliance by Government and regulatory bodies, websites, magazines, online data providers etc. 7 ENTREPRENEURSHIP AND SMALL BUSINESSES The business would be using both direct and indirect channels for appropriately providing the services to the customers. The business would further ensure that appropriate quality is maintained in the services so that more efficiency is achieved and more employees can be retained (Atkinson et al., 2019) .The business would be utilizing online medium to provide classes. The business is planning to undertake online sessions and exercises that could be done through video conferencing, thus, ease the ability of the customers to remain at home and work out by taking part on the online sessions Financial Section Projected Profit and Loss Statement [Fither Fitness Club] Income Statement Years Ending: Revenue 2020 Sales revenue $ 150,000 (Less sales returns and allowances) Service revenue $ 228,000 Interest revenue Other revenue $ 40,000 Total Revenues $ 418,000 Expenses Advertising $ 15,000 Bad debt $ - Commissions $ - Cost of goods sold $ 110,000 Depreciation $ 20,000 Employee benefits $ - Furniture and equipment $ - Insurance $ 10,000 Interest expense $ 2,500 Maintenance and repairs $ 2,500 Office supplies $ - Payroll taxes $ - Rent $ 25,000 8 ENTREPRENEURSHIP AND SMALL BUSINESSES Research and development $ - Salaries and wages $ 75,000 Software $ - Travel $ - Utilities $ 5,000 Web hosting and domains $ 1,000 Other $ - Total Expenses $ 266,000 Net Income Before Taxes $ 152,000 Income tax expense $ 30,400 Income from Continuing Operations $ 121,600 Net Income $ 121,600 Projected Cash Flow Statement Cash Flow Statement For the Year Ending 31/12/2019 Cash at Beginning of Year Operations Cash receipts from Customers 418,000 Other Operations 50,000 Cash paid for Inventory purchses 85,000 General operating and administrative expenses 17,000 Wage expenses 75,000 Interest 2,500 Income taxes 26,400 Net Cash Flow From Operations 262,100 Investing Activities Cash receipts from Sale of property and equipment - Cash paid for Purchase of property and equipment (200,000) Net Cash Flow from Investing Activities (200,000) 9 ENTREPRENEURSHIP AND SMALL BUSINESSES Financing Activities Cash paid for Repayments of loans (50,000) Dividends Net Cash Flow from Financing Activites (50,000) Net Increase in Cash 12,100 Cash at End of Year 12,100 Executive Summary The assessment would be portraying abusiness plan which is formulated for afitness club named Fither fitness club. The business of Fither fitness club would be providing mostly services which involve cardio classes, online classes, fitness dance regime, personal training classes, and youth fitness programs. The club has agoal of becoming the best Fitness club for women in Canada and provides the best services possible in the market. The target market identified here is mainly the female customers, who are fitness enthusiasts or are committee to remain fit, healthy and active by exercising and fitness acts. These groups of customers are the main target along with those who are health conscious and want to live healthy and fit. The secondary target markets are the women between the age group of 40-65 years, willing to remain fit but could not be physically present in the fitness clubs. The marketing plan which is formulated for the business appropriately aims to promote the services and products offered by the company. The financial estimates which are computed for the business show that the business has agood chance to generate profits. 10 ENTREPRENEURSHIP AND SMALL BUSINESSES Reference Andreasson, J., & Johansson, T. (2014). The Fitness Revolution: Historical Transformations in the Global Gym and Fitness Culture. Sport science review ,23 (3-4), 91-112. Atkinson, S. J. W., Armbruster, C. K., Evans, E. M., & Laughlin, C. M. (2019). Fitness and Wellness in Canada .Human Kinetics. Chatelaine.com. (2019). com How Much Should You Spend On A Gym Membership? Available at: https://www.chatelaine.com/living/budgeting/gym- membership-fees-cost/ (Accessed: 5April 2021). Davidpublisher.org . (2021) Available at: https://www.davidpublisher.org/Public/uploads/Contribute/59afa046b4fc0.pdf (Accessed: 5April 2021). Heroux, L. (2017). Comparative marketing strategies of fitness clubs in the United States and Canada. Economics World ,5(6), 529-538. How to Price your Gym (2018). Available at: https://www.perfectgym.com/en/blog/club- owners/pricing-strategy-fitness-club (Accessed: 5April 2021). Le Masurier, G. C., Corbin, C., Baker, K., & Byl, J. (2016). Fitness for Life Canada: Preparing Teens for Healthy, Active Lifestyles .Human Kinetics. Lim, J., Romsa, B., & Armentrout, S. (2016). The impact of perceived value, satisfaction, service quality on customer loyalty in women ’sfitness clubs. The Sport Journal ,56 . Pauz é,E., Ekeh, O., & Potvin Kent, M. (2020). The Extent and Nature of Food and Beverage Company Sponsorship of Children ’s Sports Clubs in Canada: A Pilot Study. International journal of environmental research and public health ,17 (9), 3023. 11 ENTREPRENEURSHIP AND SMALL BUSINESSES