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Table of Contents

EXUTIVE SUMMARY..............................................................................................................3
INTRODUCTION.......................................................................................................................4
SITUATION ANALYSIS............................................................................................................5
BACK GROUND ANALYSIS ESTINATION......................................................................5
IDENTIFICATION OF TARGET MARKET.......................................................................7
IMC OBJECTIVES....................................................................................................................9
CREATIVE APPROACH AND MESSAGE STRATEGY....................................................12
IMC OPTIONS CONSIDERED..............................................................................................13
DESCRIPTION OF IMC OPTIONS...................................................................................14
RECOMENDATIONS..............................................................................................................17
MONITOR AND EVALUATION OF MARKETING COMMUNICATION AND
STRATEGIES............................................................................................................................18
REFERENCES..........................................................................................................................19
APPENDIX................................................................................................................................20

EXUTIVE SUMMARY

INTRODUCTION

SITUATION ANALYSIS
BACK GROUND ANALYSIS ESTINATION

SWOT analysis
STRENGTHES

Flexible hours 24/7


Personal trainers, well-trained staffs
Provision of the casual visit & 10 visit

pass
New exercise trend: providing aerobics

classes
Providing on-site extras : child care,

fitness caf, spa


Bring in modern technology
Fully facility provided
Accessibility
Broadly location
Payment is automatically deducted

weekly from bank account


OPPORTUNITIES

Social trend: getting fit is a popular trend


Gym centers have a good image

WEAKNESS

Pretty expensive compared existing

fitness brands
Contract requirement
Fairly small size

THREATS

New entrance into the market


Highly competitive
Seasonal customers
Economic slowdown

Describe SWOT in details

IDENTIFICATION OF TARGET MARKET


Selecting target customer categories is significant point to make strategies. 3D Fitness has a
wide target market, to identify a specifically, it therefore needs deep analysis in detail that
include Geographic, Demographic, Psychographic and Behavioural segments.

GEOGRAPHIC
Geographically, 5 of the

DEMOGRAPHICS AND ECONOMIC SOCIOGRAPHICS


CBD
The main primary customer targets are the middle-income workers in Sydney CBD including
both genders. Social class will have to be middle as it is not low cost involvement with regular
payment for long-term. Psychologically the website is set up to access consumers immediately
which give some feeling that this product is convenience and supportive for their use. The
quality of facilities and convenience are features that customers consider to compare with other
competitors. Behavioral of this product is very positive and strong due to it appealed to
consumers through the belief of doing exercise is better for their health.

Suburb
The target market for 3D Fitness in 4 different suburbs will be wider than CBD chain as it
targeting at more number of family including women and youth. It is targeting at age between
22 45 year old resident of each area, living or working within 5 10 km of one of the chain.
Both gender but more focus on women as facilities for suburbs including child care service that
improve convenience and reduce risks for mothers to activates motivation to start being healthy
at 3D Fitness.
Those
In the age group 20-45, most of them have middle-income base and most of them with certain
education level. In addition, most of the clients prefer to choose the fitness is near to them. The

Australia Fitness has 4 fitness centres. And one of the fitness centre locates in the city of
Sydney that way it is assumed most of users will be business worker who wish to use gym
during the break or residential around. it provides convenience for customers. The rest of 3
fitness centres locates in suburbs areas. For those, most of users are predicted mothers who
have more free time during the day, university students both male and female who live around.
Moreover, motivating the customers to visit the fitness club, it provides the fitness caf and
health and beauty salons for them. Also, it offers some facilities such as exercise bicycle,
treadmills, stepper machines and rowing machine as well as acerbic exercise. Beside, it is
necessary to figure to the desires of clients, and then positioning the price, product and service
actually. Trying to satisfy clients demand, which can obtain their loyalty of the fitness
business.
PHYCOGRAPHICS

Benefit

Segmentation

CharacteristicsImpact

variable
Geographic
Country Density

Australia

Density

Surburbs in sydney

Demographic
Age

20 45

Gender

Male / Female

Occupation

Workers / house - wife/ students

Education

Over high school

Family size

Families, singles

Income

$45,000-$100,000

Psychographic
Social class
Lifestyle Personality

middle
achievers, healthy focus, challenger

Behaviour
Benefits

Health purpose, high quality facilities,

Loyalty status

positive

Segmentation

CharacteristicsImpact

variable
Geographic
Country Density

Australia

Density

Sydney city

Demographic
Age

20 35

Gender

Male / Female

Occupation

Workers, students, residents lives in city

Education

Over University

Family size

Families, singles

Income

$60,000-$100,000

Psychographic

Social class
Lifestyle Personality

middle upper
achievers, healthy focus, people who like to use
time efficient

Behaviour
Benefits
Loyalty status

Health purpose, ease of access, high quality


facilities,
positive, strong

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IMC OBJECTIVES

SMARTT approach to determine the IMC objectives

SMARTT is one way to setting goals, which includes S- specific, M- measurable, Aachievable, R- realistic, T- target market and T- timeframe for achievement.

Specific:
-The future plan is opening the five outlets of Fitness Centre in Sydney in three months
time. The plan has the involvement of a marketing manager and a full time staff member who
has just recently graduated from university with a Business degree majoring in Marketing as
well as 2 years experience working in a customer service and sales roles for another fitness
center chain. Five locations are selected including Sydney CBD, and 4 suburban in 4 directions:
East, West, North and South.
-This is a new fitness centers chain, so it is very important to attract people
remembering our brand.
-The success of these five centers will build a platform that is possible to expand the
same style centers in Melbourne and Brisbane in the future.

Measurable:
-The goal that has been set by the owners to be launched fitness center chain is to have
20,000 members within the first twelve months from commencing. Individual target for each
suburban center is required the membership of 3,500 and for the CBD has acquired 6,000
members.

Achievable:
-The fitness centers will be more than just a fitness center. In this center area, there is a
caf style outlet and a Health & Beauty Salon. The existing of three styles in one area might
attract more people joining in the center. It is expected that the contribution of profit margin of
caf and Health & Beauty Salons will be 15% and 30% respectively for the first year.
Realistic:
-The combination between 3 styles consisting of caf, fitness center and Health &
Beauty salons under an umbrella is unique. As a result, that is the higher percentage of success
because of its convenience.
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-However, there is a fiercely competitive environment existing between many gym


providers in CBD and suburban. A key competitor is Anytime Fitness who is offering 24/7
fitness centers in three the locations that proposed fitness center chain to open new ones.

Targeted:
-The main objective of any fitness center is the youth generation.
-The suburban fitness will also have a space to the operation of child minding service.
Parents can leave their young children, supervised by a qualified carer, so they can relax and
enjoy the services center after working.
-As for working people in city, there are also flexible operating hours from 6 AM to 9
PM in CBD center.

Time:
-

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CREATIVE APPROACH AND MESSAGE STRATEGY


Slogan

13

IMC OPTIONS CONSIDERED


Advantages
Facebook

- Can expand through friends


- Can see customer comments as

Disadvantages
-

live
Outdoor Advertising - Mass marketing reaches many
Citylights

people
- Methods such as billboards stay in

Audience limited to where the

advertising is
Often reaches more then just the

the one location for a long time,

target market

this helps
TV

Poster on
Transportation
Buses Trains
Interactive/Internet

Can be used for a variety of

. Internet is not yet mass medium as

IMC function
Messages can be trailered to

many customers lack access

Marketing

specific interests and needs of


-

customers
Interactive nature of the
Internet leads to level of

involvement
Can provide large amounts of

Attention to Internet ads is very

low
Great deal of clutter on the

Internet
Audience measurement is a
problem on the Internet

information to customers.
Sales Promotion

. Useful for short-term strategy.

vouchers through

. Immediately increase sales

App, Groupon

. Unable to use for long-term, or it


may causes:
. Decrease brand image
. Users become promotion hunter

Facebook
This is considered as the best option that the organization is yet to use to meet the biggest
audience it intends to meet in the CBD (more than 300,000 people in the CDB prefer this). Value

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addition that can be created by this promotional strategy is expected to be great because it is one of the
promotional tools that it is going to be used all the time. It has not time limitation when the promotions
are to be made (Smutkupt, Krairit & Esichaikul, 2010). It should be able to contain both infographic and
text to reach the target market. Despite the fact that Facebook can be used all time, it is wise that the
organization increases marketing using it, in the evening when most people are relaxed from days
chores. Statistics state that most people in the CBD (45% of the people use Facebook in the evenings
after work and 20% of them use Facebook during lunch breaks) statistics indicate that the CDB has
500,000 users hence the best promotional tool.
Outdoor Advertising Citylights
It is considered as a mass marketing tool. It aim is also to reach more than 75% of the CBDs
populace. It is a global marketing tool that will be able to market 3D fitness program provided. The
billboard embedded to the city lights will be fixed hence will offer both daytime and evening as well as
night marketing to the clients of consumers; Methods such as advertisements stay in the one location for
a long time, this helps (Belz & SchmidtRiediger, 2010). It can be said that almot 100,000 people from
the CBD prefer this mode of promotion. It will be wise if the billboard will contain 3D animations
showing how the process in the fitness works so does the images of individuals who are fit as a result of
3D fitness programs.
TV
It is also one of the primary ways that the organization or business will reach a greater audience
especially those who are indoors. More than 1 million household have TV sets hence it will reach more
people in the CBD. The program will be aired on the TV three times a day each having 1 hours
program. It should be undertaken in the morning as well as evening hours. The program will be aired 5
in the morning to act as a guide to those wishing to undertake morning fitness programs as well as the
evening to those taking evening exercises.
Poster on Transportation Buses Trains
This is considered as Mass marketing strategy that the organization will use to meet it marketing
strategies to foster change. The poster should have an image of a person who has kept himself/herself
fit. This will help persuade others to join 3D fitness. Statistics shows that buses embedded posters reach
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about 50,000 potential customers from the CBD most of whom are young adults, consequently this is
the targeted population for 3D fitness. However, the posters should be eye catching; bright colors and
design should be contemporary. It is expected to reach more 100,000 potential client and persuade them
if the images used in the posters are appealing.
Interactive/Internet Marketing
It is considered as a marketing platform for all the others IMCs because it can be used for a
variety of IMC function. The internet is used by 99% of the populace of the CBD, accounting to over 1
million people. It hosts both social media marketing such as Twitter and Facebook that the organization
also plans to use. Messages can be trailered to particular interests and needs of customers. It can also be
used at any given time because clients have access to the internet all the time because interactive nature
of the Internet leads to a level of involvement. The advantage of this promotional tool is it can provide
significant amounts of information to customers.
Sales Promotion (vouchers through App, coupon)
This is considered as internal marketing or promotional strategy because it can only be offered
to customers who are joining the Fitness programs. It is significant for short-term marketing strategy.
The most vital aspect of this tool is that it is aimed at increasing sales and not as a persuasive tool.
Despite the fact that this promotional tool is unique and dependent on ready client, it is expected to
reach 10% of the CBDs population is used effectively.

DESCRIPTION OF IMC OPTIONS


Advertising:

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RECOMENDATIONS
Building a positive image and strong level of brand awareness are identified as one of
important tasks in the first year. Therefore, the recommendation for the first twelve months
is that generating an effective marketing strategy is to advertise the company, image out to
the public. Advertising the newest and modern gym equipment as well as other different
types of service such as Caf, Beauty and Salon, etc is the unique form, which can be a
useful tool to attract more participants rather than other centres. In addition, in the
competitive business environment, the process of building customers loyalty is extremely
difficult. Therefore, I also recommended that providing the good and flexible services and
keeping the customers as happy as possible can help them consider staying with the
company in the future. By setting a positive image for the company, the customers can
make the decision of staying with our fitness centres as well as recommend this business to
their family and friends.

It is recommended that:

Television a useful tool for any marketing strategy. However, the cost of using
advertising program on television needs to be considered carefully. In addition, timing
and placement of advertisements must be selected carefully to match the target market
objectives. The 30-second commercials will be produced and broadcasted on Chanel 7
and Chanel 9s news in one month. The marketing strategy through television programs
will be divided into two stages including before and after opening of the fitness centres.
Because of the high advertising cost on TV, the company should ensure a creative

marketing strategy to maximize the return on investment (ROI).


Outdoor advertising can bring many benefits suitable for this marketing campaign. The
marketing manager should decide to use the Citylights system to advertise the centers
image and provide some basic information such as locations, operating hours, contact
number or website. The Citylights system is distributed widely on CBD as well as

suburban; so this can create unexpected effects on marketing strategy.


The fully exploitation of social network benefits such as Facebook or Twitter can be the
least costly option for advertising. With the modern technological development, the
number of people can access with social network also increase quickly. Using the
images and reviews about the fitness centres from the participated members can be an
approach to inform and attract the potential customers.
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The company should build the strong Internet marketing strategy. It is estimated that 80
per cent of Australian are connected to Internet, and this number is increasing each year.
Therefore setting of an interactive website between customers and company plays an
important role. The website is designed to provide the basic information about opening
time, gym equipment, the information about the company as well as the details relate to
the classes in the centres. Showing the basic and necessary information in website
allows customers to select the classes that suits their leisure time. Moreover, YouTube is
the most popular online video community. Over a billion users - almost one-third of all
people on the Internet - spends hundreds of millions of hours on YouTube on every day.
So the company should construct the short videos to advertise the fitness centres image
and brand on YouTube. These videos will be linked with the website, which can assist

the customers in decision-making process.


Sales promotion is in the form of customer-oriented sales promotion can be a good tool
in boosting sale. In this case, the discount of joining fee in the first month should
provide to attract people and market the brand. 1000 coupon tickets of 20% consisting
of 600 tickets in CBD and 400 tickets in suburbans are given out to any customers who
have an option of six-month paid upfront. However, the decreasing in the price can
damage the centres image and brand in the future.

MONITOR AND EVALUATION OF MARKETING COMMUNICATION AND


STRATEGIES

18

REFERENCES

19

APPENDIX

Budget Allocation
Items

Total

Remaining
allocation
$2,200,000

Salaries and other expenses

$150,000

$2,050,000

$5,000

$2,045,000

$2,045

$2,042,955

$500,000

$1,542,955

Website

$29,900

$1,513,055

$1,210

$1,511,845

$127,400

$1,384,445

$698,400

$686,045

$455,200

$230,845

$204,000

$26,845

Salaries in 15 months for IMC team members


Rental of office space, furniture, computer and other
equipment in first three months
Additional expenditure
Other expenses (including water, electricity, operating
expenses, initial investing expenses, financial expenses,
etc.)

Cost of designing a website


Other costs for a website (domain name, hosting,
license, continued website maintenance and upgrades)

Sale promotions

1000 Coupon tickets of 20%

Advertising

30-second video on Chanel 7 and 9 (4 weeks)


Outdoor advertising by Citylights system (4 weeks)
Internet Ads ($17,000/month x 12months for Facebook,
Twitter, Google, in-stream advertising on YouTube)

Remaining funds

$26,845

20

References
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Smutkupt, P., Krairit, D., & Esichaikul, V. (2010). Mobile marketing: implications for
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Stonedahl, F., Rand, W., & Wilensky, U. (2010, July). Evolving viral marketing strategies. In
Proceedings of the 12th annual conference on Genetic and evolutionary computation
(pp. 1195-1202). ACM.

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