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Define the What Is Marketing Marketing Definitions what is Marketing value of Marketing Scope of Marketing Core Marketing Concepts What is the Marketing Mix What is Marketing Marke We define marketing as the activity, set of institutions,and processes for creating, communicating, delivering,and exchanging offerings that have value for customers,clients, partners, and society at large.Exchange is the act of obtaining a desired object from someone by offering something in return.A transaction is a trade between two parties that involves at least two things of value, agreed-upon conditions, and a time and place of agreement.

My Business

The report is prepared to discuss about the marketing plan for the health and fitness club named True Health Fitness gym in Australia. It is one of the major health and fitness clubs that has provided the best quality health and fitness services at convenient prices and managed affordable gym memberships as well to facilitate better management of health and wellbeing for the consumers who are heath conscious in Werribee (Fitness.org.au 2018). The topic will illustrate about the marketing objectives to be achieved along with the analysis of market conditions, company strengths, weaknesses, competitors and how the organization will segment its market as well.

2. My Business

True health fitness is a gym, which comes under the health and fitness clubs industry. True health fitness is a franchise that provides affordable gym memberships, martial arts classes and massages to average health-conscious consumers in Werribee.

The health and fitness club is basically a well known gym that delivers best quality health and fitness services and aims at targeting the people in the Weribee area aged between 15 to 45 years. The health conscious customers are also targeted because they are mostly concerned with the purchase if products that can fulfil their needs and preferences and at the same time, facilitate their health and wellbeing (Lovelock and Patterson 2015). The company thus has a vision to become one of the leading health and fitness clubs and mission statement revolves around the delivery of healthy living options a reasonable prices for the customers in Australia. Few of the products and services delivered by the company are massage therapy items, t-shirts, sweat suits, active wear items, martial art items, etc.

Vision:

We aim to become the leading franchise in the health & fitness clubs industry.

Products or Services:

List what products or services you will bring to market

Product/Service

Description

Price

Martial arts

Martial arts are traditions of combat practices, which can be used for self-defence.

Adult: $55/month, $8.39 including GST

Child: $35/month, $5.34 including GST

Massage therapy

Massage therapy is the manipulation of soft body tissues to enhance a person’s health and well-being.

$40/session, $6.10 including GST

T-shirts

True health fitness merchandise with the logo printed on the t-shirt.

$15 each, $1.36 including GST

Sweat suits

True health fitness logo printed on the sweat suit.

$40 each, $3.64 including GST

Child care

We will take care of your children while you workout.

Free

3. Marketing Objectives

As every organizations aim to enhance brand name and image and increase the customer base, the same is the marketing objective for True Health Fitness gym in Australia. The major business marketing objectives are to increase the membership by 1 percent along with the development of sports duffle bags and introducing ne and healthy protein shake bottles for the members as well. The production distribution objective  include display of products at the front desk to make customers aware while the pricing is also considered as a major goal that can influence the buying behaviours of consumers with ease and efficiency. The main objectives include:

  • Increase membership by 10%
  • Develop a sports duffle bag and a protein shake bottle for the members.
  • Product(s) Development:

Goal/Objective

Description

By when

Protein shake bottle

Shaker with gym’s logo.

January 2019

Sports duffle bag

A bag to keep all your belongings in the same place.

January 2019

Product Distribution:

Goal/Objective

Description

By when

Protein shake bottle

Display the product at the front desk.

January 2019

Sports duffle bag

Display the product at the front desk.

January 2019

Product Pricing:

Goal/Objective

Description

By when

Protein shake bottle

$15

January 2019

Sports duffle bag

$39.95

January 2019

Product Promotion:

Goal/Objective

Description

By when

Protein shake bottle

Promote through true health fitness’s website/social media platforms.

December 2018

Sports duffle bag

Promote through true health fitness’s website/social media platforms.

December 2018

Customer Service Levels:

Goal/Objective

Description

By when

Protein shake bottle

Provide exceptional customer service.

January 2019

Sports duffle bag

Provide exceptional customer service.

January 2019

Market Overview

Based on various market conditions such as the varied needs and preferences of the customers and supply of products, it is important for the organization to determine the target market, assess the size of market and understand its potential and then deliver the products and services accordingly.

Target Market:

The target market for true health fitness is residents in the Werribee area aged between 15 to 45 who are interested in maintaining an active lifestyle but may not be able to afford expensive memberships.

Vision

Market Size:

We believe this is a good target market area because large amounts of people aged between 15-45 reside in the area of Werribee. Approximately 23,000 people in Werribee are in that age range.

Market Potential:

Every gym member needs a protein shake bottle to intake protein as it refuels the muscles depending on whether they take it during or after the workout. The duffle bag is also a handy product for the members as it carries all the belongings that are needed for the gym, instead of carrying the items in our pockets which can slip out and could get lost. These two products are almost essential for gym members and therefore I can definitely say that the market potential exists.

Market Structure:

The structure of market is defined as the characteristics and features of the organisation that the company needs to focus on. These include the various aspects that are responsible for influencing the competition and pricing. It also includes managing the market share to ensure that the company stays ahead of the competition. Based on the market structure, the characteristics are understood and the prices are set to make sure that the clients are influenced and sales revenue increase (García-Fernández et al. 2018).

Market Trends:

The targeted market segment comprises of individuals aged between 15 to 45 years of age and especially those who are conscious about their health. There have been increased demands for the protein shakes and sports duffle bags, which has further enabled the organisation to accumulate greater share in the foreign markets (Shank and Lyberger 2014).

Sources of Information:

Summarise where you obtain market information (Assessment Question 1).

List each of your businesses Strengths, Weaknesses, Opportunities or Threats (SWOT).

Analysis

Strengths

Weaknesses

· The products and services delivered are aimed at people who are health conscious

· State of art facilities including a spacious gym and quality trainers who can provide suggestions about the right product

· Capital intensive allows for adequate capital source management

· God location of the fitness club in Australia and skilled trainers

· The financial management is poor and lacked certain actions needed to be undertaken for successful business functions

· High competition in the marketplace

· Lack of training for the trainers, which often results in degraded business performance

· Opportunities

Threats

· The increased demands for fitness and healthy lifestyles have created positive mindsets among the clients to make purchases

· Growing concerns about health has increased likelihood for usage of fitness items and this creates scopes for the company to improve revenue prospects

· Scope for global expansion in business

· Threat of substitute products and services

· Threat of competition

· Threat of new entrants such as active wear sports items by other companies

Activity

SWOT weakness/ threat

Activity to address weakness/threat

Completion date

Poor training provided to the trainers

It was found that the clients were sometimes unsatisfied with the kinds of services delivered and the reason had been the lack of skills and knowledge of trainers

10.11.18

Competitive marketplace

There are times when other companies fared much well due to higher growth and sales revenue

12.11.18

Poor management of financial aspects

The profit and loss statements, balance sheet and cash flow statement were analysed to determine the financial condition

15.11.18

Poor customers’ services

The customers’ complaints were ignored and responses had not been considered to make necessary changes

20.11.18

Competitor profile:

Competitor Name

Established date

Size

Market share (%)

Value offered to customers

Strengths

Weaknesses

Genesis Health and Fitness Melbourne

2010

Large

8 percent

Fitness products

Good quality products and services

Lack of proper customers’ services

Genesis Health and Fitness Mayfield

2008

Large

7 percent

Healthy lifestyle products

Proper customers’ services delivered

Absence of skilled and knowledgeable workers

Fitness First Australia

2016

Small

12 percent

Gym facilities

High quality gym instruments available

High price of products and services

Centennial health club

2012

Medium

7 percent

Active wear items

Good trainers available

Poor customers’ services

Flow Athletic

2010

Small

5 percent

Gymnasium

Skilled staffs and workers

Lack of products and services’ variety

Itrain fitness club

2011

Medium

11 percent

Sports good and fitness instruments

Great pricing for the products and services

Not enough trainers available to guide the clients and make them work properly

Direct Competitors

Genesis Health and Fitness Mayfield and Centennial health club are direct competitors.

Indirect Competitors:

Flow Athletic, Itrain fitness club and Fitness First Australia are the indirect competitors

Market Share:

The total market share of these health and fitness clubs account for nearly 50 percent within the health and fitness industry of Australia (Fitness.org.au 2018)

Strategic Alliances:

Being a large and reputed health and fitness club within the health and fitness industry, the company has strategically partnered with few smaller gymnasiums and fitness centres to increase the range of products and make those easily accessible to the customers for increasing the sales revenue and profit level (Sparvero, Warner and Tingle 2016).

6. Market Segmentation

The targeted customers in different market segments are from the age of 15 years to 45 years. The market segmentation allows for identification of different kinds of customers and their behaviours and needs, which are needed to be assessed for influencing their buying behaviours (Grant 2017).

Customer Needs:

This is for your ideal customer.

Customer Characteristics:

Customer

Age

Gender

Ethnicity

Education

Location

Lifestyle

Values

Interests

Alex

35

Male

Australian

Graduate

Sydney

Aristocratic lifestyle

He is honest

Interest in physical activities

Ruth

30

Male

Australian

Post graduate

Sydney

Middle class

Keeping good health and remain fit

Interest in good quality fitness products

Diego

25

Male

African

Graduate

Victoria

Upper middle class

Leading simple life

Running and sweating it out

George

22

Male

American Indian

Graduate

Melbourne

Lower income

Respect for elders

Love for sports

Pamela

17

Female

Asian

Post graduate

Melbourne

Rich lifestyle

Helpful

Sports activities

Kristine

26

Female

Australian

Post graduate

Victoria

Middle class

Highly communicative

Keeping body fit and beautiful

Customer Behaviour:

The ideal customers here are the health conscious customers who live on a strict diet and maintain daily physical activities to remain healthy and safe. The health and fitness club, being one of the dominant fitness clubs in Australia has mainly targeted the market segments comprising of the people who are concerned about their health and fitness. The health and fitness products are delivered to ensure that they can purchase effectively and stay healthy and fit at present and in future as well (Vieira and Ferreira 2018).

Products or Services

7. Marketing Mix Strategies

Martial arts, fitness instruments such as massage therapy instruments, sweat suits, protein shake, sports duffle bags, etc. are few of the products and services delivered by the organisation named True Health Fitness Club in Australia (Riot et al. 2018).

The pricing of products are done carefully, because of the presence of multiple competitors in business. The organisation has used the most effective pricing strategy, i.e., the cost leadership strategy to maintain a good pricing status and influence the consumers’ buying behaviours too, thereby increase the sales and profit level too (ZHANG, PITTS and KIM 2017).

The positioning of products is done by allowing the products to be accessible by the ckients in different places of Australia including Sydney, Melbourne, Victoria, etc. The products and service are placed well, which has created ease for the clients to make purchases from the company consistently (Chekhovska 2017)

The promotions are done with the help of advertisements of televisions, newspapers and magazines while the social media marketing has also acted as a great promotional strategy to attract more customers and increase the customer base.The people in business are the staffs, who are considered as important human resources managed by the company to make the business function efficiently (Harvey et al. 2017).

The processes are the business operations including the various activities managed all through the manufacturing and production to deliver the products and services successfully in the marketplace.

PHYSICAL environment where the good/services are presented

The physical environment includes the places all over Australia where the products and services are made available to be accessible by the clients

PRODUCTIVITY and Quality to meeting customer needs

The Total Quality Management or TQM approach is considered as effective for maintaining the quality standards. The prices are set properly without compromising on the quality of products to influence consumer buying behaviours and increase the revenue generation too (Benton 2018).

Product or Service

Features

Benefits

Unique Selling Position

Support

Spin Offs

Martial arts

Punching, kicking and others using strikes

· Helps in leading a healthy lifestyle

· Enhances self confidence

· Helps in controlling weight

Enhances the personality

Ankle support, kickboxing footguard, ankle, knee and elbow supports

Karate

Massage therapy

Hand massage, feet massage, full body massage

· Relaxing

· Reduces stress

· Lower blood pressure

Using natural oils  for massaging

Preventive measures towards averting skin rashes and infections

Foot cleanse

T-shirts

Comfortable cotton fabric, wicking ability, perfect fitness and layerable

· Reduces muscle fatigue

· Prevents muscle strains

· Improves muscle oxygenation

Comfort in making movements

Comfortable cotton

Gym T-shirts for women athletes

Sweat suits

A track suit made of waterproof fabric such as coated nylon or PVC, which increases the sweat

· Lose weight quickly

Social media presence

Hoods

Track jackets, sweater rainbow

Child care

Child care products

Care and support to children

Usage of organic and herbal products

Social media marketing

Baby food

Marketing Communication:

Social media is the basic technology used by True Health Fitness Gym for communicating with the customers and clients. Uploading the basic information of the gym products, child care products and others on social media helps the company to reach large mass of audience at a single point of time. Using privacy policies helps the personnel in preventing third party invention, which can leak the private and confidential information (Sodano, Rhee and Kim 2017). Precise information about the products helps in luring the customers to the products and services. Based on this, the positioning of True Health Fitness Gym can be depicted as follows:

Marketing Procedures:

The main procedure of marketing, adopted by True Health Fitness Gym is social media. Advertisements are prepared for the products and services, in terms of luring the customers towards the brand image. At the initial stage, briefing is done about the current strategic position of the products. Knowledge of the personnel towards the objectives helps in enhancing the awareness towards the prospective markets, into which they can enter.

This research enriches the knowledge of the personnel about the target audience, which enhances the productivity and efficiency within the business activities (Funk, Alexandris and McDonald 2016). Identifying women as the targets helps the personnel in proposing innovation within the fitness services. Within this, budgets are vital in terms of fulfilling the demands, needs and requirements of the clients and the customers.

Marketing Objectives

Organisational Structures:

True Health Fitness Gym practices divisional organizational structure. Every departmental unit collaborates with others for carrying out the business activities. The higher authorities hold meetings for equally dividing the activities within the labours. The stakeholders and shareholders are involved in the meetings for gaining an insight into their opinions. Interactive sessions clarifies the doubts regarding the execution of the marketing activities. The organizational structure reflects the collaboration between the employees, which indicates the extraction of productive labour in the parameter of fitness (Tuzovic and Mathews 2017).

Marketing Objectives Due:

Objective

Time of realization

Increase the membership

1 year

Developing a sports duffle bag and a protein shake bottle for the members

1.5 years

Monitor Marketing Mix Against Performance:

Marketing activity

Date of review

Monitoring methods

Review outcomes

Blogs

December 2017

Social media

10% increase in the number of visitors

Campaigns on sweat shirts

January 2018

Survey

15% rise in the involvement of the customers

Street campaigns for baby care products

February 2018

Feedback

20% rise in the sales revenue

Marketing mix for the massage therapy

March 2018

Social media campaign

25% rise in the profit margin

Direct marketing for sweat shirts

April 2018

Door to door survey and feedback

12% growth in the number of visitors in the websites

Protein shake

January 2018`

Door-to door marketing

15% growth in the customers (fitness freaks)

Sports Duffle bags

February 2018

Lab tests

13.5% increase in the quality of the gym accessories

Marketing Budget

Action

Price

Advertisements on radio, television and social media

2755.00AU$

Prizes (Gift certificates)

250.00 AU$

Mails

2500.00 AU$

Staff meeting

550.00 AU$

Subscription to health magazines

63.00AU$

Customer survey

100AU$

Installing disinfectant machines

125AU$

Increasing operating hours

5476AU$

Records and maintenance of the machines

1000 AU$

Garbage

420 AU$

Trainers

7000 AU$

Provide a high level analysis of your current financial situation, specifically addressing sales and profitability. (Leave this section blank.  This is not required for the Diploma of Business.)

Sales Analysis

According to the annual report of June 2018, the industry encountered loss of $25, 516. However, desperate attempts to restore the growth proved assistance in terms of increasing the sales revenue. Typical evidence of this lies in earning an income of 175, 967 AU$ in 2018, which is far better than the income earned in 2017. The same value is accounted for the profit margin. The current assets is accounted as 1,382, 030 AU$ in 2018. This is less than 1,841, 488 AU$, which was earned in 2017. This is due to the lack of strategic planning and consideration of legislations and insurance policies. The value of liabilities is 805,991 AU$, which is less than 1,089, 482 AU$ in 2017 (Fitness.org.au 2018). The equity share is 576,039 AU$, which is less than 752, 006 AU$ earned in 2017. Net cash used in the operating incomes is accounted as 416,739 AU$ in 2018, which is more than 105,832 AU$, used in the operations of 2017.

Profitability Analysis

Indulging in contracts with Fitness Business Members of contemporary gym centres helped True Fitness Health Gym in widening the supply chain network. This accounted for 14% shares of the company. 40% of the shares went to the Group Business members. Along with this, 45% of the shares were reserved for sole traders, which acted assistance in the spin offs. 1% of the shares went to the industry suppliers. All of these contracts increased the profit margin, helping in planning effective fitness services for the customers (Kemper 2014).

Contingencies:

Offshore management would be effective in terms of gaining an insight into the prospective sources, who would play an important role in conducting the marketing activities. This activity would result in interactions on a broader platform, which would diversify the marketing objectives. Strategic planning would be essential in terms of systematizing the marketing activities. Budgets and timetables need to be planned well in advanced and consistency is to be maintained in conducting evaluation. This would be effective in terms of excavating the drawbacks and modifying them well within the available time.

10. Report

I have been working within the marketing team and my responsibilities are to guide the team members to develop new products and services for fulfilling the needs and preferences of the customers.

Product Distribution

Product Development:

1) What were the target market segments?

The targeted market segments are the upper, middle and lower middle class segments comprising of the individuals aged between 15 years to 45 years (Sweaney 2017).

2) What was the positioning of the product in the market?

The positioning of the products, i.e., the protein milk shake and sports duffle bags that are positioned in the major cities of Australia to ensure targeting the people at large and keep them influenced about the health and fitness items that can contribute to their health and fitness (Morgan and Taylor 2017).

3) What was the focus of appeal?

The focus of appeal is generated by making customers aware of health lifestyle habits and keeps them safe and fit by allowing a wide range of health and fitness products and services available for them in the marketplace. The prices are competitive, which has also influenced the buying behaviours of customers at large (Zhang, Huang and Nauright 2017).

4) What was the differentiation?

The differentiation of products is done to make sure that the customers can distinguish between the products of True health and fitness club with other company products. The competitive pricing strategy and using the brand logo in the products have facilitated the differentiation strategy and made customers inclined to the company.

5) How would sales compete with a similar product?

The sales would compete with a similar kind of product once the products and services are effective enough to fulfil the expectations of clients (Sweaney 2015).

The Consumer:

6) How is consumer interest assessed, based on consumer trends, past marketing, individual/social/cultural diversity and lifestyle influences.

The interests and preferences of customers are assessed through effective customers’ services and even responding to their feedbacks and complaints to understand whether any changes are needed to be done or not. The social networking website and company website are checked by the staffs to ensure that any complaints made by them are taken care of to meet their needs and adopt necessary changes through adoption of culture and diversity for fostering healthy lifestyle choices and buying decisions made by customers too (Stewart 2014).

7) How is business behaviour related to the Marketing Plan?

The marketing plan is made by assessing the market conditions and analysing the customers’ needs and preferences to expect good sales and revenue generation. The marketing plan is developed to ensure attracting the clients and even formulate effective strategies for influencing their buying behaviours too (Sweaney 2017).

References

Benton, N., 2018. A turning point for active and healthy living. Australasian Leisure Management, (126), p.6.

Chekhovska, L., 2017. Fitness industry: state and prospects of development in the countries of the world. Slobozhanskyi herald of science and sport, (2 (58)), pp.19-24.

Fitness.org.au 2018. Grow your fitness business. Available at: https://fitness.org.au/ [Accessed on 5th Nov 2018]

Funk, D., Alexandris, K. and McDonald, H., 2016. Sport consumer behaviour: Marketing strategies. Routledge.

García-Fernández, J., Gálvez-Ruíz, P., Fernández-Gavira, J., Vélez-Colón, L., Pitts, B. and Bernal-García, A., 2018. The effects of service convenience and perceived quality on perceived value, satisfaction and loyalty in low-cost fitness centers. Sport Management Review, 21(3), pp.250-262.

García-Fernández, J., Gálvez-Ruíz, P., Pitts, B.G., Vélez-Colon, L. and Bernal-García, A., 2018. Consumer behaviour and sport services: an examination of fitness centre loyalty. International Journal of Sport Management and Marketing, 18(1-2), pp.8-23.

Grant, S., 2017. The shape of things to come. Australasian Leisure Management, (123), p.36.

Harvey, G., Rhodes, C., Vachhani, S.J. and Williams, K., 2017. Neo-villeiny and the service sector: the case of hyper flexible and precarious work in fitness centres. Work, employment and society, 31(1), pp.19-35.

Kemper, K., 2014. Getting Physical: The Rise of Fitness Culture in America/Making the American Body: The Remarkable Saga of the Men and Women Whose Feats, Feuds, and Passions Shaped the Fitness Industry. American Journal of Play, 7(1), p.126.

Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.

Morgan, A. and Taylor, T., 2017. The Australian Sport Industry. In Sport Business in Leading Economies (pp. 27-64). Emerald Publishing Limited.

Riot, C., Kennelly, M., Hill, B. and Trenberth, L., 2018. The sport business industry in the twenty-?rst century. In Managing Sport Business (pp. 35-53). Routledge.

Sekendiz, B., Norton, K., Keyzer, P., Dietrich, J., Coyle, I.R., Gray, S. and Finch, C.F., 2018. Emergency preparedness in fitness facilities: bridging the gap between policy and practice. International Journal of Business Continuity and Risk Management, 8(1), pp.71-85.

Shank, M.D. and Lyberger, M.R., 2014. Sports marketing: A strategic perspective. Routledge.

Sodano, R.L., Rhee, Y.C. and Kim, Y., 2017. Policy Development of Pre-Participatory Screening Procedure for Fitness Industry. INTERNATIONAL JOURNAL OF HUMAN MOVEMENT SCIENCE, 11(1), pp.49-74.

Sparvero, E.S., Warner, S. and Tingle, J.K., 2016. RunTex: A community landmark run out of business. Sport Management Review, 19(3), pp.343-351.

Stewart, C.S.M.F., 2014. Sports Marketing in Australia. International Sports Marketing: Principles and Perspectives, p.221.

Sweaney, K., 2015. What's really new in fitness?. Australasian Leisure Management, (109), p.24.

Sweaney, K., 2017. New in fitness. Australasian Leisure Management, (121), p.24.

Tuzovic, S. and Mathews, S., 2017. Points for Fitness–How Smart Wearable Technology Transforms Loyalty Programs. In Dienstleistungen 4.0 (pp. 445-463). Springer Gabler, Wiesbaden.

Vieira, E.R.M. and Ferreira, J.J., 2018. Strategic framework of fitness clubs based on quality dimensions: the blue ocean strategy approach. Total Quality Management & Business Excellence, 29(13-14), pp.1648-1667.

Walker, C., 2017. Successful sales. Australasian Leisure Management, (122), p.46.

Zhang, J.J., Huang, R.H. and Nauright, J. eds., 2017. Sport Business in Leading Economies. Emerald Publishing Limited.

ZHANG, J.J., PITTS, B.G. and KIM, E., 2017. Introduction: sport marketing in a globalized marketplace. In Contemporary Sport Marketing (pp. 15-34). Routledge.

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