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1. When is the country's next local, state, or national election? How could this change government or regional policy?
2. Could any pending legislation or taxation changes affect your business, either positively or negatively?
3. How will business regulation, along with any planned changes to it, affect your business? And is there a trend towards regulation or deregulation?
4. How does government approach corporate policy, corporate social responsibility, environmental issues, and customer protection legislation? What impact does this have, and is it likely to change?
5. What is the likely timescale of proposed legislative changes?
6. Are there any other political factors that are likely to change?
7. How stable is the current economy? Is it growing, stagnating, or declining?
8. Are key exchange rates stable, or do they tend to vary significantly?
9. Are customers' levels of disposable income rising or falling? How is this likely to change in the next few years?
10. What is the unemployment rate? Will it be easy to build a skilled workforce? Or will it be expensive to hire skilled labor?
11. Are there any other economic factors that you should consider?
12. What is the population's growth rate and age profile? How is this likely to change?
13. Are generational shifts in attitude likely to affect what you're doing?
14. What are your society's levels of health, education, and social mobility? How are these changing, and what impact does this have?

15. What employment patterns, job market trends, and attitudes toward work can you observe? Are these different for different age groups?
16. How do religious beliefs and lifestyle choices affect the population?
17. Are any other socio-cultural factors likely to drive change for your business?
18. Are there any new technologies that you could be using?
19. Are there any new technologies on the horizon that could radically affect your work or your industry?
20. Do any of your competitors have access to new technologies that could redefine their products?
21. Are there existing technological hubs that you could work with or learn from?
22. Are there any other technological factors that you should consider?

SWOT Analysis

Fitlife Heath Club is the Australian health club, which is established as one of the leader in the sport and fitness industry. It provides various fitness venues all over the country by offering various fitness related services. The Head office of Fitlife health club is in North Sydney. From there, it operates its branches in every state of the country. All the health clubs are offering the services like; swimming, recreation hall, gymnastic hall and gym for weight lifting and other exercises. The health club is working for its mission and vision with effective strategies. This marketing plan includes the marketing audit of the Fitlife by utilizing various analyses. 

The following table indicates the possible strengths, weaknesses, opportunities and threats of the Fitlife Health club.

Internal

Strengths

Weaknesses

· Strong brand image and market leadership

· Innovative cultures

· Expert and high class trainers and dieticians

· Special time slot for the elders and children allows the parents to work freely

· Availability of sufficient equipment and machines for work out

· Pricing structure is very high, so it does not attract international customers

· Less social media presence

· Lack of distribution channels in global markets

· Higher cost structure (It includes cost of Maintenance, delivery of service and trainers)

· It is hard to find out the high quality and expert trainers (Surujlal, & Dhruup, 2011).

· Timings are limited, which are not suitable for all the clients.

External

Opportunities

Threats

· Global expansion

· Online coaching

· Improvement in the quality assurance by providing internal training

· New products and services

· It should implement the loyalty card program to retain the existing customers

· Competitors with lower cost services

· 24*7 Opened health clubs

· Growth in health and wellness related apps

· Wide range of free health and wellness resources on internet reduces the use of physical health clubs. It teaches the people that how they can do exercise and eat without paying money (Fitness Australia, 2015).

Political

· There are some political factors, which impact the growth of health club, like; unfair contract regulations, sales strategies and miscommunication (Aubrey, 2017).

· The health club must consider the following elements as they vary on a continuous basis and will have a large impact on delivery of attributed options:

· Taxes: The Fitlife Health club has to adopt the changes in the taxes and tariffs

· It requires keeping up to date with the policies and regulations to decrease the chance of claim for any injury (Payne, Kennedy, Davis, 2009).

· The health club needs to comply with the Work Health and Safety Act, 2011 by introducing the compulsory online training to provide its staff easy access to the resources to implement in the Fitlife club atmosphere.

Economic

· Decline in inflation: Due to decline in the inflation, people are spending their disposable income on the luxury services like; health club membership. But if there will be decrease in the household income, the people will shift to the cheaper options.

· The Australian health industry is growing continuously from the last few decades. The government is making many efforts to motivate the people towards getting the health club services to keep themselves healthier.

· The health and wellness sector is earning about 1 billion revenues from last few years. There are approximately 3000 health clubs and gyms in the country (EZYPAY, 2015).

· Increase in the expenses, like; rent, trainer’s salary etc.

Socio-Cultural

· 28% of the Australian people are obese

· The increase in the reality TV shows related to the weight loss, initiatives by the government to encourage the healthy life are some factors, which have contributed in increasing the demand for fitness industry (McDonalds, 2007).

· Impacts in social media have created more people of the society health conscious.

· Most of the people want to go fitness centres and gyms for looking good

Technological

· Advancement in fitness equipment enables to use the internet, connect with the users, play music, watch TV and put their personal information into machines to make the workout personal.

· There are various apps for fitness. 26% of the population use the apps to burn the calories and to search for the healthy recipes.

· Approx. 14% of the people use the social media to follow the diets and fitness blogs.

· Implanting new technologies in the products is very important. In Australia, there is an emerging trend of using the gym gadgets and other technology devices like; Fitbit Tracker (Luo, 2008).

Marketing Objective

Gap

Actions Bridging the Gap

1. To develop innovative and wellbeing  programs

Market segment is more interested in online fitness apps

Launch its online website and apps

2. To launch most revenue generating health bar

Premium prices of services

Implementation of effective pricing strategy

3. To provide offsite support

Lack of online presence

Create a app and providing videos of exercises and diet plans on the online sites

The below graph indicates the current position and desired position of the FitLife Health Club. The graph shows the gap between both the situations (Keyzer, Finch, Dietrich, & Sekendiz, 2014).

Market Growth Rate

(Cash Usage)

High

Relative Market Share

(Cash Generation)

High

Low

Stars

Question Marks (new markets)

m Children exercise programs

m Exercise and diet programs for elder people

m BodyAttack

m Zumba

m Nutrition program

m Gym-Cardio

m Online and remote classes and fitness training

m Introduction of health bar

m Physiotherapy facility

m Loyalty card program

m New wellness and fitness programs

Low

Cash Cows

Dogs

m Swimming classes

m Recreational activities (Table tennis, Basket Ball, Badminton and Netball)

m Personalised weight lifting programs

m One-on-one training sessions

m Pilates

m Body pump

m Yoga

m Cycling

m Fat burner

m Kendo

m Boxing

The above BCG growth matrix indicates the growth-share matrix about the different units and activities of FitLife Health club. This includes four categories; dogs, question marks, stars and cash cows. In the matrix, star shows the units, which generate large amount of cash due to the strong market share. But, the units in this category consume huge amount of cash due to higher growth rate. For the FitLife health club, the star matrix shows that the club can generate more cash from children exercise programs, nutrition programs, body attack, Gym-cardio and Zumba (Close, 2013). These activities are very common for the Australian people, who are very health conscious, but it requires a huge cost for installing the gym equipment and machines. For nutrition programs, the fitness center has to hire a nutrition expert or dieticians. The organization has to pay demanded salary to them. FitLife should invest in these services to increase its market share.

Investments made in these services will assist the health club in introducing new and innovative health and wellness programs. The health club should drop the services like; Kendo and Boxing, as the people are less interested in these services and it has low market growth and low market share (Alpert, 2015). These dropouts can help the organization, as it can invest the cash in other services, which generated from divestiture of related assets. The health club should focus on the profitable services to achieve the marketing objectives. It should make the investment in the services, which can generate more cash and revenues in the future.

BCG Growth Matrix

There are five forces, which affect the players in an industry. The Following model indicates the fives forces for the FitLife Health Club. It includes the five forces like; Competitive rivalry, threat of new entry, bargaining power of buyers, bargaining power of suppliers and threat of substitutes (David, David & David 2016).

The Threat of New Entry (High)

· Development of private gyms and fitness centres 

· Low product differentiation

·  Legal regulations

·  Requirement  of high capital

Supplier Power (Moderate)

·  High competition among suppliers

·  Quality of equipment critical

·  Similar production inputs

· Low cost of switching

Competitive Rivalry

·  Large industry size

· Fast growth rate of industry

·  Low exit barriers

Buyer Power (Strong)

· Different range of services

· Competitors with lower cost service providers

·  Health clubs with same facilities

· Players with high prices (FitLife) can lose the customers

Threat of Substitution (High)

·  High cost of switching

·   Private health clubs

· Various options are available

Marketing Opportunity Option

Feasible? Yes/No

                           Rationale

Strategic alliances and cooperative business models

Yes

The FitLife Health club has the opportunity to alliance with any other fitness centre in Australia. It will help in raising its revenues and grow in the market (Chang, & Ming, 2013).

New products or services to target specific markets

Yes

It can offer new services and products in the fitness centre to target the specific segment like; for elder people, children, pregnant women etc.

Greater market penetration with existing products or services

Yes

It can go through the market penetration by introducing new services or by lowering the prices of existing services.

Take-overs

No

FitLife club is not as stronger that it can take over any business. First, it should establish its own business in all over the country, and then it should think about take-over.

New businesses and franchising

Yes

This is a new business initiative. In comparison to establishing a new business, the franchises business will have an already established brand among the customers.  

1. Global Expansion

Yes

It has the opportunity to expand its business internationally by providing online coaching and increasing its social media appearance.

2. Introduction of new health and wellness programs

Yes

Introducing new and innovative and wellness programs can help the organization in contacting and attracting more customers.

3. Group fitness training classes for niche  segment, like; pregnant women, senior citizens  etc.

Yes

It can develop group fitness classes for niche groups including pregnant women, seniors, children, cyclists, kettlebell lovers, post-birth mums, yoga with babies and toddlers and aqua fitness.

Feasible strategies 

Marketing Mix

Strategy

Rationale

Alignment

Product

1. Quality services

2. Seasonal and special training packages

Providing quality services and special packages will make it different from other competitors.

Both the strategies will help in attracting more customers by providing high quality services.

Price

1. Competitive prices

2. Discount to regular and loyal customers

The company is providing the services at higher prices; it must reduce the prices and give discount to the loyal customers.

Lowering the prices of services will help in generating more revenues by increasing the customer base.

Promotion

1. Promotional plans

2. Increase social media appearance

The company is not providing online services, so it must increase its appearance on social media.

Implementing the promotional activities will assist health club in expanding the business internationally.

Placement

1. Expansion in distribution channels

2. Multipurpose fitness centres

It should expand the distribution channels and fitness centres in all over the country.

It will come up with other fitness centres with value added products; it will increase number of customers and allow it to increase the sales.

Product

Tactics

Owner

Cost

Schedule

Accountability

1. Product differentiation

Production

300$

2-5 weeks

Trainer

2. Service expansion

Gym owner

300$

1-2 weeks

Shareholders and promoter

3. Special packages

Gym owner

200$

2 weeks

Trainer and dieticians

Price

Tactics

Owner

Cost

Schedule

Accountability

1. Cost leadership

Accountant

100$

1 week

Shareholders and owner

2. Discounts for regular customers

Finance department

100$

1-2 weeks

Finance manager

3. Loyalty card program

Manager

150$

         1 week

Customers

Promotion

Tactics

Owner

Cost

Schedule

Accountability

1. Online sponsorships

Marketing manager

200$

2-3 weeks

Advertising manager and customers

2. Ads in newspapers

Advertising manager

100$

2-3 weeks

Customers and print media

3. Mobile apps

Owner and partners

200$

3-4 weeks

IT

Placement

Tactics

Owner

Cost

Schedule

Accountability

1. Expansion

Manager

200$

2 weeks

Promoters

2. Opening new fitness centres

Gym owner

            600$

3-4 weeks

Trainers and physiotherapist

3. Conducting events

Gym trainers

200$

1-2 weeks

Volunteers

Total cost

($2650)

At this stage, the club will start to introduce its health and fitness services in the well-established industry in Australia. It will install the equipment and exercise machines in the center (Bauer, 2012). It incurs more costs to purchase the machines and hire trainers and nutritionists. Company focuses on establishing in the market.

At this stage, the sales and revenues of club will start increasing and competition will grow. The fitness services of the health club will be identified in the market. It will start to gain market share. The customers will focus on the special services of the health club. The products and services of health club fit in the growth stage of product development life cycle.

At the maturity stage, brand image will be strong in the market. Sales of the health club continue to grow but at a decline rate in comparison to past. At this stage, it will add new services and features to the services, like; special packages and discounted packages (Andreasson, & Johansson, 2014).

This stage starts to decline the sales due to changes in the trends and economic conditions. The organization will reduce the prices of the services and packages. Company has to make an effective marketing mix for increasing the revenues. This will beneficial for the health club to grow again.

Introduction

Tactics

Owner

Cost

Schedule

Accountability

1. Product promotion

Marketing manager

$300

2-3 weeks

Marketing team

2. Skimming pricing strategy

Gym owner

$100

-

Finance manager

Growth

Tactics

Owner

Cost

Schedule

Accountability

1. Focus on brand building

Advertising manager

$150

3-4 weeks

Marketing team and media

2. Product and service extension

Promoters

$160

4-5 week

Gym trainers

Maturity

Tactics

Owner

Cost

Schedule

Accountability

1. Set Price to beat competitors

Owner

120$

5 week

Shareholders and partners  

2. Use of variety of media

Marketing manager

$200

5-7 weeks

Media and customers

Decline

Tactics

Owner

Cost

Schedule

Accountability

1. Cut the prices

Cost manager

$100

7-8 weeks

Accountants

2. Reduce market spending

Marketing manager

$110

8 & 9 week

Advertising and marketing team

Grand Total

($1240)

(10 weeks)

The tactics mentioned in the above segments are meeting with the legal and ethical requirements.

The Fitlife Health club is complying with all the legislations rules and regulations. It is following all the laws and regulations of the Australian government. It has taken the license for introducing its services in the city (Australian Government, 2017). The marketing tactics are aligned with the laws and regulations, which are imposed by the government.

The tactics and strategies used in this plan align with the different acts and laws of the discrimination. Fitlife is complying with the Age discrimination act, 2004 and Sex discrimination act, 1984. It is conducting the fitness sessions for all the age groups. There is not discrimination by the gender. Equal programs and training is provided to both male and female groups.

Five Forces Analysis

For this aspect, the organization is following the Privacy Act, 1988. This Australian law deals with the privacy. It states that the organization must keep the client’s information private. It includes the information privacy principles. The club will take the client’s information, but will keep it confidential. Complying the copyright legislation protects the exclusive rights of the organization.

The Fitlife Health club is complying with the AANA code of ethics. It will follow this act at the time of advertising and marketing communication activities (Australian Government, 2017). It will not provide the fake ads of their products. The products and services will be provided according to the customer expectations. It is complying with the consumer protection act, 2010.

With all the above legislations, the Fitlife health club is going ahead by following the work health and safety regulations. It is providing a good working environment and conditions to the employees, like; trainers and dieticians. Safety and health standards are taken into consideration by the health club.

Hello sir,

I am hereby attaching the marketing plan for the initiative of Fitlife health club. The plan includes all the effective strategies and marketing tactics in the tactical implementation plan. It includes internal and external analyses for the health club. All the factors, which may affect the organization, are discussed. Furthermore, it includes how the services will go through the product life cycle phases.

Here, it is request to you that kindly review the marketing plan of organization and give the feedback immediately, so that we can implement the plan in the operations. You may arrange the meeting, if there is the need for discussion. Along with this, assign the date for implementation.

Kindly revert.

Thanks & Regards

Marketing Team

FitLife Health Club

Marketing Metric

Example of Implementation

Revenue per member

Measuring the revenue per client can provide the clarity and easiness of tracking.

Client retention rate

Retention rate measures the rate of clients, which are spending in the services.

Member lifetime value

This value refers to the value one client is worth over the whole time which are engaged with the gym.

Client Satisfaction

The health club can take the feedback from the clients by using the survey and questionnaires method. Client satisfaction can help in measuring the effectiveness of the plan (Kipley, & Jewe, 2014).

Profit margin

Measured as a % of revenue, profit margin is simply how much you have left over once you’ve applied expenses to revenue.

Number of members in the events

The effectiveness of the events can be seen by measuring number of members present in the events and fairs.

Conclusion

Thus, FitLife health club can use this marketing plan for expanding its business and services. This will assist in understanding the strengths and weaknesses of the health club. All the analyses in the above discussion include all the strengths and drawbacks of the organization. The health club should focus on the profitable services to achieve the marketing objectives. Porter’s five forces analysis shows the situation of the industry. There are some factors, which affect the growth of health club in the Australian industry.

In an organization, cross cultural communication can be a challenge. It is an increasing norm in this era. The growth in internet and technology has introduced new markets which allow the organization to promote the business to different geographic locations and cultures. A productive organization has the environment that assists the cultural diversity. There may be people at the workplace, who is from different culture and who have different cultural values, cultural beliefs and cultural practices. There must be implementation of some strategies to avoid the issues of cultural diversity (Dabija, & Abrudan, 2015). The cultural competency training program must be implemented, so that more different cultures can work together. When the company starts to recruit the new comers, it must provide the training to its existing staff about the new culture. Cross cultural training and cultural awareness assists in avoiding the misunderstanding between staff and clients from diverse cultural backgrounds. There must be a welcoming environment in the organization for new comers. Appointing a leader of a team, who is working across different cultures or who knows different languages will be beneficial for managing the cultural diversity. There are some factors, which can affect the cross-cultural communication, such as; different languages, non-verbal differences, low context vs. high context cultures and power distance.

Marketing Opportunity Options

If there are different cultures in the organization, then it must create some effective strategies to avoid the related issues in effective communication. In this, language may be the biggest barrier to both the new employee and organization. It can overcome by providing training to the employee about different cultures. The following activities can avoid the issues:

  • Stay with the open mind in the unfamiliar situations
  • Increase the interactions and aware to the different manners the people interact
  • Understand the background off different community groups
  • Encourage the people to learn about the different cultures
  • Keep a personal touch

The managers in the organization can use effective communication techniques and methods to establish cross cultural communication, like; observation, feedback system, active listening, stress management etc.

An effective leader may play an important role in this context by motivating the employees. The leader must try to motivate the team members to develop a positive attitude towards the culture and working environment. He must try to boost up their confidence levels regarding the performance. By establishing an open communication with the followers, leader can inspire them. The leader must listen to them and their opinions must be taken at the time of decision making process. It will keep them motivated. The ability of leader to admire and provide the guidance to the employees has a critical impact on motivation and morale (Leitner & Guldenberg, 2010). The leader should provide the training and coaching to develop new skills and abilities for enhancing the performance. An effective leader can become an ethical leader by possessing honesty, integrity and trust. The ethical leader always inspires the team to work with the integrity and honesty for achieving the organizational goals. Thus, these strategies and methods can be used to motivate the new comers in the organization.

References

Andreasson, J., Johansson, T, 2014, The Fitness Revolution. Historical Transformations in the Global Gym and Fitness Culture, „Sport Science Review”, 23 (3-4), p. 91 - 112

Alpert, R.T, 2015, Cultural Diversity in the Workplace, Part 1

4 Essential Skills, Retrieved from < https://www.diversityresources.com/cultural-diversity-workplace/>

Australian Government, 2017, Legislation, Retrieved from https://www.australia.gov.au/information-and-services/public-safety-and-law/legislation.

Aubrey, B, 2017, Key development indicators as a leadership tool, Retrieved from https://www.britcham.org.sg/static-pages/bob-aubrey-key-development-indicators-as-a-leadership-tool. 

Bauer, C, 2012, An integrated decision model for strategic evaluation of the viability of new technologies, GRIN Verlag

Close, L., 2013. Australia's fitness sector sees growth in the billions. [Online]
Available at: https://www.businessreviewaustralia.com/leadership/153/Australia's-fitness-sector-sees-growth-in-the-billions
[Accessed 10 October 2015].

Chang, J.D. & Ming, Y, 2013, Empirical Study of Fitness Industry Cases-Based on SWOT, Advances in Physical Education, Vol. 3, No. 2, pp. 80-83.

David, M.E., David, F.R. & David, F.R, 2016, The quantitative strategic planning matrix: a new marketing tool, Journal of Strategic Marketing.

Dabija, D.B. & Abrudan, I.N, 2015, Competitive strategies of fitness gyms in international business environment. Empirical findings through observation.

David, F. R., & David, F. R, 2015, Strategic management: concepts and cases – a competitive advantage approach (15th ed., pp. 185), Upper Saddle River, NJ: Pearson Education.

EZYPAY, 2015. The Ultimate Guide to the Australian Fitness Industry 2015: Member Insights. Available at: https://www.ezypay.com/files/downloads/2015-AU-FIS-Guide.pdf
[Accessed 10 October 2015]

Fitness Australia, 2015, The Australian Fitness Industry Report 2012, retrieved from https://fitnessaustralia-production.s3.amazonaws.com/uploads/uploaded_file/file/54196/Australian_Fitness_Industry_Report_2012_media.pdf.

Kipley, D. & Jewe, R, 2014, Effective Strategic Management: From Analysis to Implementation. Cognnella.

Keyzer, P., Finch, C. Dietrich, J, & Sekendiz, B, 2014, The Findings of the Australian Fitness Industry Risk Management (A firm) Project. British Journals of Sports Medicine.

Luo, B. H. 2008, The application of SWOT analysis in project decision. Technology Information (Academic Research), 4, 63-65.

Leitner, K.H., Guldenberg, S, 2010, Generic strategies and firm performance in SMEs: a longitudinal study of Austrian SMEs, Small Business Economics”, 35, p. 169–189

McDonalds, M, 2007, Marketing Plans: How to Prepare Them, how to Use Them, Butterworth-Heinemann Publications. 

Payne, G. T.,Kennedy, K.H., Davis, J.L, 2009, Competitive Dynamics among Service SMEs, Journal of Small Business Management”, 47(4), p. 421-442.

Surujlal, J. & Dhruup, M, 2011, Customer Retention Strategies in Commercial Health and Fitness Centers, International Conference on Advancements in Information Technology, Vol. 20.

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