Legislation, Codes Of Practice, Principles Of Marketing, And Marketing Opportunities For Bounce Fitness Essay.

Section A

1. Legislation, codes of practice and national standards relevant to marketing	Describe how these impact an organisation’s sales process (10-30 words each)
What do you need to know about the Competition and Consumer Legislation Act 2010 (Cth) regarding investigating new marketing opportunities?	Competition and Consumer Legislation Act 2010 (Cth) establishes the interrelationships among the supply chain network, consumer, producers, which supports the investigation of the marketing opportunities (ACCC 2022).
What do you need to know about the Association for	Association for Australian Association of National Advertisers (AANA) Code of Ethics establishes the overall ethical guidelines of advertising and promotion (AANA 2022).

Australian Association of National Advertisers (AANA) Code of Ethics regarding investigating new marketing opportunities?
What do you need to know about the Fair Trading Laws regarding investigating new marketing opportunities?	Fair Trading Laws establishes consumer interests and pricing protocols that guide new marketing opportunities (Business 2022).
What do you need to know about the Australian Competition and Consumer Commission (ACCC regarding investigating new marketing opportunities?	Australian Competition and Consumer Commission establish the protocols regarding selling and supply chain management that is part of new marketing opportunities (ACCC 2022).

The fundamental principle of marketing is to align the core components to maximize the overall consumer portfolio or scopes of revenues or both. Ideally, the marketing activities should create a favorable image among the target consumer groups (Bolton 2021). The fundamental principle of marketing is to create sustainable value for the consumers. Ideally, the consumers should perceive the outputs of a firm as relatable and valuable. One of the core marketing principles is identifying, segmenting and targeting potential consumers. The marketing activities should ideally highlight the perceived competitive advantages of the products or services to the target group of consumers. The marketing strategies should also create a distinct positioning of the product or services among consumers.

Certain core components shape the principles of the marketing mix. The core components include product, price, promotion and place (Bradford and Boyd 2020). The product indicates the core offering to the target group of core consumers. Price refers to the cost incurred by the consumers to avail of the product or services. Promotion refers to the range of marketing activities that create the overall awareness and perception among the target consumer groups. Place refers to the distribution channels.

Mean 

Mean can be defined as the average of a collection of a range of values. It helps to assess the intermediate value within the set range of values.

Standard Deviation 

Standard deviation helps to measure the degree of variance of a value compared to the mean of a given range.

Regression 

Regression can be defined as the statistical tool that determines the correlation between the dependent and independent variables within a given dataset range.

Sample Size determination can be defined as estimating the optimal number of respondents required for conducting particular research.

Hypothesis Testing 

Hypothesis testing is the method of concluding a range of observed evidence or datasets. The validity of the hypothesis or assumption is tested through evidence-based research.

Two forecasting techniques 

The causal model helps determine the correlation between one variable with a range of factors, and time series analysis refers to the trajectory of data across a predetermined period. 

Section 1 – Background

Bounce Fitness’s Mission, Vision and Values 

Organizational mission acts as a roadmap to achieve the strategic goals (Grimes, Williams & Zhao 2020). The organizational mission of Bounce Fitness is to offer premium quality holistic wellness and Fitness attributes to the core consumers. The organization's core values are the expertise provided by trained fitness instructors. Moreover, the organization's infrastructures across the centres equipped with the basic amenities are among the organization's key values. The organization's overall vision is to provide wellness and fitness training across a wide consumer segment. The fitness courses are tailor-made according to the needs and requirements of the core age groups of the organization.

Principles of Marketing

Bounce Fitness’s Business Objectives and KPI 

• 10% increase in annual sales
• Quarterly increase in consumer portfolio by 15%
• Reduction of customer acquisition cost by 4%
• Customer complaint resolution within 48 hours
• Lead conversion percentage of advertisements should be 20%
• Increase customer portfolio by 10% by penetrating the food industry

KPI

• Quarterly sales and revenue analysis
• Customer-Lifetime-Value to analyse the net value provided by the customers (Jasek et al.2018).
• Client feedback assessment
• Cost-per-lead conversion ratio

Bounce Fitness’s Organisational Structure 

Bounce Fitness had maintained a hierarchical organizational structure. The hierarchical structure is based on a pyramidal, unidirectional decision flow (Kaufmann, Borry and DeHart?Davis 2019). The organizational structure of the various centres of the organization can be referred to in this context 

Headquarters 

The C.E.O and the Board of Directors are the organization's decision-making body. The executive team consists of General Managers who the Admin Assistant assists. 

Centre 

The Centre Manager is the authoritative body of the various centres of Bounce Fitness. The Assistant Manager complements and supports the executive decision-making of the centre manager. The Assistant Manager acts as the coordinator between the centre manager and the fitness instructors.

Bounce Fitness’s Business Products and Services 

• Core products and services determine an organization's brand identity (Raddats et al.,2019). The organization's core services are the range of fitness classes offered by trained experts.
• Bounce Fitness provides aerobic classes as part of its service portfolio
• Circuit training had also been included as part of the service bouquet
• Niche service such as low-intensity training for the elderly had been promoted as one of the key services
• The organization provides a range of products such as retail merchandise, clothing, shoes, and accessories across the various centres.

 Bounce Fitness’s Marketing and Pricing Strategies 

Bounce Fitness had traditionally relied on market penetration and product development strategies. Market penetration strategy had focused on offering the core service of fitness training to enthusiasts. Moreover, the management had relied on an approach of product development to cater to specific target groups of consumers. For instance, the low-intensity training of elderly individuals had been one of the marketing strategies to cater to the age group. Overall, the organization had maintained a premium brand appeal. The availability of highly trained experts, resources and infrastructure across centres had been among the key premium offerings to the target consumers. The consumers had been offered the services in exchange for premium membership fees to justify the range of facilities, equipment and infrastructure. 

Entrepreneurial, innovative and creative activities in the Australian and Global Fitness industry

The global and national fitness industry is accommodating a range of innovation and entrepreneurial ideas in the recent past. One of the key innovations in the recent past was integrating the digital platform (Allied Market Research 2021). The emergence of the Covid-19 pandemic had resulted in significant shifts in the traditional business models of the fitness industry. The government imposed restrictions had limited the overall footfall in the premises that offers fitness services and products. The obligation to stay indoors had popularised the integration of traditional fitness courses with technological platforms such as mobile apps and official websites. The prominent fitness organizations in the global industry are adopting a hybrid model of providing services through physical premises and digital platforms. The national fitness industry had witnessed the rapid integration of gamification as part of the overall services offered to consumers (West 2021). The usage of heart rate monitors during cardio activities can be considered one of the popular gamification elements.

Principles of Marketing Mix

Potential new markets 

Bounce Fitness should consider food delivery through the digital platform as one of the marketing opportunities. The national revenue garnered through online food delivery was projected to grow by 12.8% approximately in 2021 (Nestlé Professional, 2021). Sydney reflected a more than 31% rise in the demand for digital food delivery in 2021, followed by Victoria Bounce Fitness, which should consider food delivery through the digital platform as one of the marketing opportunities. The national revenue garnered through online food delivery was projected to grow by 12.8% approximately in 2021 (Nestlé Professional, 2021). Sydney had reflected a more than 31% rise in the demand for digital food delivery in 2021, followed by Victoria (Nestlé Professional, 2021). Bounce Fitness can leverage this opportunity to cater to a niche segment of consumers who prefer nutritious and healthy diets. The national fitness industry had witnessed a surge in the overall demand for online training (Healey 2021). Bounce Fitness should ideally leverage this trend and introduce a holistic fitness delivery app and improve the official website. 

The marketing opportunity of entering the food market will be well aligned to increase the quarterly consumer acquisition by 15%. The strategy to foray into the food market will provide the opportunity to implement a diversification strategy by offering a new product to existing and brand new segments of consumers. The marketing opportunity of introducing the digital platform will support the business goal of improving the annual sales by 10%.

SWOT Analysis 

Strength · Product and services · Profit	Weakness · Negative customer feedback
Opportunity · Robust training program	Threat · Rising operational cost

Strength 

The range of products and services offered by Bounce Fitness include core services, aerobics, and focused low-intensity training for elderly consumers. The wide product and service portfolio is a key strength for the organization. 

The net annual profit of the organization had increased by approximately 47% in the last financial year. The significant profit margin can be considered a key strength. 

Weakness 

The customer feedback surveys had reflected that the organization fails to provide personalised attention. Moreover, there had been feedback regarding the irregularity of shift hours at the headquarters of Bounce Fitness. The personalised attention is one of the key strategies of retention for service organizations (Domniku, Mustafa and Bajraktari 2020). 

Opportunity 

Personal and professional development scopes are generally perceived as key sources of motivation by employees (Akhmetshin et al., 2018). Bounce Fitness had created an infrastructure to provide efficient training in key areas, including stress management, customer care, and communication skills. During recruitment, the training facilities can be promoted as a key employee value proposition. 

Statistical Methods and Techniques

Threat

There had been a marginal increase of 5% of the total operating expenses of the organization in the latest financial year. The management should address the trend as increasing operating expenses will affect the future business goal of profit and revenues.

Porter’s 5 Forces 

 

Bargaining power of buyers

The national fitness industry has witnessed a steep decline the demand in the recent past. Recent research suggested that, on average, the income of gyms with the hybrid infrastructure of digital and traditional infrastructure declined by more than 90% in the recent past (Ely 2021). The negative demand among the consumers indicates that the bargaining power of the consumers will be high.

Bargaining power of suppliers

In the recent past, the national gym equipment suppliers have witnessed a surge in demand among individual consumers (Adams 2021). The obligation to stay indoors had enhanced the inclination towards maintaining a fitness regime. Therefore, the bargaining power of the suppliers is high as the gym owns would have to negotiate the rates to attract suppliers.

Threat of substitutes

In the recent past, the fitness industry expanded the product portfolio and the business model by strengthening the digital platform. However, the gyms that accommodate a range of services such as yoga, Pilates, aerobics, among others, are difficult to substitute.

The threat of new entrants

The overall fitness industry has witnessed a decline in demand in the recent past (Ely 2021). The established gyms with significant resources create further barriers for new entrants at this point.

Intensity of rivalry

The national fitness industry accommodates a range of prominent franchise-based gyms such as Genesis, Crunch, and (Canstar Blue 2021). The overall competition for Bounce Fitness will be significantly high shortly.

Probable return on investment 

The setting up of a coordinated supply chain for the online food business will incur a cost of $ 25000 approximately. The areas of expenditure will include developing an in-house team of culinary experts, collaboration with the distribution team, inventory management, among others aspects. The expected annual rate of return will be 10% profit. The development of the integrated mobile app, update of the website, training of employees in the online service protocols will require an investment of $ 12000 approximately. The expected return through new consumer acquisition is approximately 15% of the overall cost.   

Potential competitors 

Anytime Fitness is one of the leading franchise-based gyms that can compete with Bounce Fitness in the long run (Hall 2020). Moreover, other franchises such as Plus and Infinite are among the key competitors that have the resources and infrastructure to penetrate the core target market of Bounce Fitness.

Section B

Ranking of marketing opportunities 

• Social Media marketing should be considered the most significant strategy. There had been a 27% increase in the overall weekly hours spent on the internet via mobile (Adnews 2022). Specifically, Gen Z representatives had reflected an inclination to notice social media advertisements, much more than the other forms of advertisements. Bounce Fitness should ideally focus on strengthening social media promotion to attract young fitness enthusiasts.    
• Advertising in fitness magazines should be considered one of the feasible marketing opportunities. Strong is one of the leading Australian fitness magazines. Bounce Fitness should consider promoting its services nationally through the magazine (Strong Fitness 2022)

Impact of potential marketing opportunities to current business operations

The social media marketing strategies will be aligned with the overall business objective of expanding the quarterly consumer base of Bounce Fitness. Social Media marketing ensures a wide outreach of consumers quickly (Zollo et al. 2020). The current business operations of the organization will benefit from the promotion of a holistic range of services, amenities and equipment offered to the consumers. Moreover, the introduction of the digital media platform will be aligned with social media promotion. The future strategy of expanding into the food market will also be aligned with the promotion via social media platforms. The promotion through the fitness magazine will attract a niche group of fitness enthusiasts.

Impact of operational change to existing customers

The significant operational change, in this context, will include the introduction of training through mobile apps and other forms of digital media. The fitness instructors will be provided specific training to ensure awareness of the mobile app's key features. The instructors will be expected to demonstrate the technicalities to the existing customers. The existing customers will also be encouraged to offer referrals. The existing customers will be provided with incentives based on successful referrals. The foray into the healthy food industry will also be promoted to the existing consumers. The existing consumers can avail themselves of the online food services at a discounted rate as part of the overall privileges.

Estimated resources requirements and costs for change

The inclusion of the digital platform will require the support of a third-party I.T. agency. The estimated cost of collaborating with a third-party agency is $ 400/ month as rental charges. The estimated cost of developing the online food business infrastructure will be $ 25000 approximately. The resources will include inventory, culinary experts and a dedicated distribution team.

1. Methods of communicating the viability of making these changesto:
2. Board of Directors andCEO

1. Other GeneralManagers 

Audio-visual presentation and face-to-face meeting 

1. Bounce FitnessWorkforce 

Audio-visual presentation and face-to-face meeting 

1. Bounce Fitness Suppliers 

Face-to-face meeting 

Subject: Marketing Opportunity Analysis Report

Respected All,

The overall marketing opportunity analysis had revealed that social media marketing would be the more viable option. The other marketing strategy will be promoted through fitness magazine.

The social, digital marketing opportunity had been prioritized based on the viability and higher cost-benefit of a fitness magazine.

Please find the detailed report attached with this mail

Regards,

John 

References

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Background

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