Members of the Fitness Depot have the chance to relax, get in shape and have fun without being objected to the hard-core, look at me attitude that exists at competitors’ gyms. It is my intent to take this business and marketing strategy to reach two key marketing goals. I will increase our brand awareness among local college and high school students. I will increase total membership by 10% per year for the next three years. There has been a continuing trend in America to quit bad habits that lead to unhealthy lifestyles. Increasingly people are working to stay fit and healthy.
This means that there is growing demand for work out facilities and health clubs International Health, 2014). In order to maintain a membership status people have had to shell out small fortunes (over two hundred dollars a month in some cases) to Marketing Plan By muffle extensive fees and high monthly rates to maintain their membership. The Fitness Depot will be the solution to this need for affordable gym membership. Fitness Depot will have all the essentials for a great workout and a few necessary extras and benefits for members.
Competitors attract customers by adding in extra benefits to their gyms like having personal trainers, massage therapists and so on. Competitors will not be able to afford to lower their prices to match the value that the Fitness Depot will provide. In the current economy, now more than ever, customers will want to seek value with a Fitness Depot membership as they seek out affordable options. The Fitness Depot will be a gym available to anyone no matter their age, fitness level or expertise in gym equipment.
Members of Fitness Depot will be comfortable knowing that whatever help they need when it comes to designing and implementing an exercise program, our staff will be there to help. If the member Just wants to get in, complete a workout and leave without being bothered by grunting muscle men we got that cover by the Discrimination Free Zone policy. This policy is meant to prevent “matched” or “Lung” behavior such as dropping weights or grunting that creates an uncomfortable and even hostile workout environment.
In order to reach our marketing goals we plan to implement some key marketing strategies that expand the traditional advertising strategies used by competitors. I will seek a diversified environment at the Fitness Depot. To further this diversity we ill be targeting a younger demographic. By expanding our demographic to include college and high school students bringing approximately 11,000 people to our targeted customer demographic as potential customers.
I believe this group will find our facilities and services attractive because we are within walking distance of campus, offer low affordable prices and provide a substitute for the student recreation and wellness center. To increase awareness among this core group Fitness Depot will: 1 . Hand out Fitness Depot pens on campus to increase brand name awareness 2. Post fliers advertising discounted rates for students and our new Red Card Membership for summer 3. Hand out Fitness Depot t-shirts at sporting events to increase awareness and improve customer opinion towards our brand name 4.
Use Faceable, Twitter and other social media One new marketing strategy I plan to implement is the once a month Goodness sub night. Giving away Goodness subs will give Fitness Depot a positive brand affiliation with eating healthy along with exercise. In exchange for Fitness Depot purchasing subs from Goodness we will hand out Fitness Depot coupons. We will peak with the Goodness franchises to allow us to advertise at all locations within Lincoln. Along with our initial marketing strategy Fitness Depot will be implementing some services provided directly to our members: 1.
We will, over the course of time, be adding classes in yoga, biking and cardiac strength intervals. These classes will help members in their fitness goals and increase a sense of belonging to the customer by introducing the more social aspect of exercising with a group. 2. We will be providing new members with an orientation day. This day will serve as a tool to get new o get any questions answered, speak with a trainer and sign up for group classes. These orientation classes will also include machine demo classes lead by Fitness Depot trainers. 3.
To keep track of how well we are implementing these changes and how well employees are providing services, a quality assessment will be made quarterly in the form of customer surveys and feedback cards. In order to succeed with our initial marketing and advertising strategy, Fitness Depot will make sure that we have the right amount appropriately trained staff to help our new members and to uphold our service standards. The total costs to implement this plan will be approximately $59,831. 85. To cover these costs we will need a total of 385 members throughout the year.
Introduction Fitness Depot will be a sole proprietorship. We will be focusing our location within a half mile of the University of Nebraska. Fitness Depot will aim towards providing a comfortable, clean and discrimination free place for anyone who wants to pursue an active lifestyle. Fitness Depot feels that with our location, we will not need to spend a lot of money on a marketing and advertising campaign. We feel that the opportunity o gain new members immediately will be best served by using low cost advertising and marketing techniques since we are so close to the University campus.
Company Description Fitness Depot will target the average health conscious consumer, people who may be uncomfortable with the body builder, down to business attitude found with competitors. Members will be able to enjoy a gym where they can get into shape and relax in a hassle free, discrimination free environment. Fitness Depot will be clean, easy to use and easy access throughout the interior of the club. Fitness Depot will not letter the facility with things like babysitting area, massage therapists or steam rooms. In return, customers benefit by paying the low price often dollars a month to use our facility and services.
Fitness Depot will be a health club geared toward supporting a healthy lifestyle for the average person in the community featuring a discrimination free zone policy. Services will be available Monday through Friday from Sam to 1 1 pm, Saturday and Sunday from am to pm. Members of Fitness Depot will enjoy numerous cardiovascular equipment and strength training machines that are disinfected on a regular basis. There will be three levels of membership, green card and yellow card. The green card membership offers full use of all cardiac, strength training equipment and use of a health and fitness trainer.
The yellow card membership includes unlimited use of massage chairs, unlimited guest privileges, unlimited tanning, free unlimited fitness and health training, half price protein drinks and half price on protein bars. Of course, for the summer session we will offer a standard red card, Situational Analysis SOOT Analysts The following is a list of strengths, weaknesses, opportunities and threats for Fitness Depot. We will use this to maximize strengths and opportunities and to minimize weaknesses and threats. It is important recognize and promote awareness throughout the company ensuring that all staff strives toward the same goal.
Internal Factors Strengths Weaknesses Product/Service the bodybuilder (larger demographic population) Clean, stylish, hassle free facility Flexible hours-Monday through Friday Sam tool 1 pm, Saturday and Sunday am to pm No long term commitment required Variation in types of memberships (Green, Yellow, Red) Yellow card membership offers additional benefits, such as unlimited tanning, the ability to bring a friend at no cost Free personal training Plenty of brand name cardiac and strength equipment for use during peak busy periods Payment is automatically deducted monthly from members bank account Facility is simplistic, a place to work out without distraction Facility provides locker rooms and clean showers Members do not currently have the option of group exercise classes Members do not have the option of using a pool or outdoor workout facilities such as tennis and basketball courts Alienates the bodybuilder and other people that do not abide by the discrimination
Do not provide on-site extras such as steam room, child care, Juice bar Price Low monthly membership cost Low annual membership cost compared to competitors No startup fee for yellow card membership Yearly membership fee regardless of numbers of months members use the facility Promotion Many methods of reaching target market Many of the standard advertising methods are very expensive Some advertising methods are expensive Ads can often be overlooked due to the volume seen each day External Factors Opportunities Threats Place Located close to University of Nebraska, Lincoln campus Could expand into other parts of Lincoln Small location, eventually will result in cap on the number of members Competition Membership for other gyms such as the YMCA are much more expensive NULL students have to pay high rates for wellness center memberships during the summer NULL wellness center is closed during holidays College students already have a gym membership included in their tuition Other gyms offer more variation in exercise types such as group classes and a pool Social/Economic Getting fit is a popular trend that is very influential in our society
Many people have new year’s resolutions to get fit and lose weight In a slow economy low prices are important to consumers The discrimination free zone policy will attract people who would not otherwise Join a Seasonal customers may be reluctant to pay for a summer membership when outdoor sports are popular Key Strengths and Opportunities Fitness Depots’ key strength is the price of our gym membership. Just ten dollars a month for unlimited usage of the facility and services is the main selling point. The gym will be about flexibility, which is important in today’s busy society. Fitness Depot ill offer flexible hours for busy students, business professionals and blue collar workers who make up a significant portion of our demographic. We also offer variations in the type of membership that can be purchased, either a yellow card or green card membership.
The green card membership is a basic membership plan while the yellow card membership offers other benefits such as unlimited tanning and the option to bring a friend. Another key strength for Fitness Depot is the discrimination free zone policy. This attracts the average person instead of the body builder type that typically dominates ark out facilities. By adopting this policy, the gym can reach a larger demographic, since the majority of the Lincoln population would be considered average in terms of work out usage. Other key strengths that are associated with the discrimination free zone policy are free personal training, and easier to use machines so that members feel comfortable in the gym.
As a part of the marketing mix we plan to implement a new member orientation to help members feel more comfortable when they come Fitness Depot. There are many exciting opportunities that could greatly help our business. The suggest opportunity for Fitness Depot would be our close proximity to the University of Nebraska, Lincoln campus and the high schools that surround the area to target the younger demographic. Focusing on some basic advertising strategies within the campus area is a great opportunity to increase our customer base. Another key strength for Fitness Depot are the many businesses in Lincoln that support a large portion of Lincoln workforce.
These opportunities will bring more customers close the Lincoln Fitness Depot location, which will be convenient and easy for members to stop in after a day of work. Another opportunity is that many of the other workout facilities in this area are expensive to Join. Another opportunity for Fitness Depot is that becoming fit is currently a very big trend for many reasons. Health consciousness is extremely influential in our society and can greatly help the business. At the start of each New Year, many people make it their resolution to get in shape and go to the gym. The economy has been slow and will continue to be slow for a while and many people do not want to spend a lot of money on fitness. Fitness Depot will be very affordable that will bring much value to he money spent.
Key Weaknesses and Threats A key weakness that we will have to assess is the fact that Fitness Deport has limited options in the types of workout equipment and facilities we will offer compared to other gyms in the Lincoln area. To help minimize this threat, we will be offering group exercise classes to help make up some of the things that we are lacking. Another weakness that could result in a loss of potential customers is the lack of a daycare facility. Since our main demographic is the younger population this may not be a big problem, but it is something that we will need to be aware of. Another weakness that could affect Fitness Depot is the yearly membership fee. Many people would consider this a hidden fee and could label it deceiving to the low price that we will be advertising.
To help minimize this we will be taking out the annual fee for students and senior citizens. A major threat to the business is the fact that NULL students already pay for a gym membership that is included in their tuition. It is important that we do everything possible to promote Fitness Depot to draw this target in. We will minimize this threat by offering student discounts and targeting our promotions toward the younger anemographic. Marketing Objectives Increase awareness of the Fitness Depot facility and its features and benefits among local college and high school students: 40% total awareness in the first year, 60% total awareness in the second year and 80% total awareness in the third year.
First, gain at minimum 385 memberships (to cover expenses) in the first year and increase membership 10% per year after the first year. (Please see budget section for further details). The target market are residents in the Lincoln area between the ages of 15 and 59 who are interested in maintaining an active lifestyle but may not be able to afford expensive memberships. Fitness Depot believes that is a good target market for this area because of the large volume of people in that age category that reside in this area. According to the Lincoln Department of Economic Development in 2011, 52. 1% of the Lincoln population are in this age range (Development, 2011).
There are also several high schools and other small colleges within the area. While residents between the ages of 45 and 59 are not in our target market, they are still part of the market. This age range makes up 18. 4% of the area’s population (Development, 2011). Altogether the potential gym membership is approximately 140,000 people. Marketing Mix Product Fitness Depot is a fitness facility committed to improving the health of the average person in the community. The club’s discrimination free zone will embody a culture where people can come workout in a non-intimidating atmosphere, which is part of the recognized value. There are televisions on each cardiac machine.
Within the television unit there is a place to plug in headphones to listen to any channel or radio station. There will be two of each kind of strength training machine to assist in the low of members working out during peak hours, 5-up, Monday through Thursday. Fitness Depot will have personal trainers available at no additional cost. Fitness Depot will be implementing customer surveys to help us improve the quality of service that is expected of our trainers and other staff members at Fitness Depot. There will always be someone available to answer any questions a member may have. Fitness Depot will feature three massage chairs to assist members’ post workout cool down.
There will be water coolers strategically placed throughout the facility. The setup of the gym will be user friendly in that all of the machines used to work similar body parts are grouped together. Fitness Depot will have eight tanning beds available to the yellow card members for unlimited tanning. There will be cleaning solutions and paper towels located throughout the facility to assist in maintaining a clean environment. When a member is done using a machine, they simply wipe it down. The employees will also be cleaning at various times throughout the day to maintain a clean environment. The locker rooms will have toilet facilities, sinks, and showers.
When a member joins they will be given a guided tour and any questions they have can be answered by our highly trained staff. As an added benefit, new members will receive a free pair of workout shorts with the Fitness Depot logo on them. An additional value to our service and not to alienate any customers, we will add fitness classes in yoga, biking and interval strength training. We will offer these classes in the evening during the week. We will also have an orientation day for new members that is not mandatory to help become more familiar with the facilities and he machines and the cardiac equipment. These services will help us attract more members and help sustain the 10% annual growth objective.
The standard green card membership costs $10 a month plus a one-time $20 start-up fee and a $29 annual membership fee. Unlike most gyms, there is no minimum length of time that members have to keep this package. The green card member has unlimited use of the facilities. The yellow membership, which is an upgrade, will cost $19. 99 a month, no start-up fee, plus a $39 annual membership fee. Yellow card members are required to maintain this membership status for a minimum of twelve months. During the summer months, to attract the younger demographic, we will be adding a third membership option, the red card membership. This will cost the customer a flat fee of $50 for three months. There will be no other fees associated with the red card membership.
Red card members can enjoy unlimited tanning and full use of the fitness equipment. To add value to the fitness club, we will waive start- up fees for senior citizens and students with valid student identification. Fitness Depot will charge all fees when they are due on a monthly basis to either the embers’ checking account or credit card, providing hassle free payment. With this commitment, the member is less likely to discontinue membership. Fitness Depot will be placed on the south side of campus which is highly populated with apartments, student dorms and surrounding neighborhoods. The location, price and services we will offer, will allow us to capture some of this market with further promotions.
Fitness Depot can be reached with 5-10 minutes from any location on campus by car, 15 minutes by walking and 10 minutes or less if a person likes to bike. One concern of having a business near the campus is parking. When Fitness Depot gains more revenue we may need to look at expansion of the current location or consider opening a second location. This will be determined as to the progress of meeting our planned goals. The University of Nebraska Lincoln campus can certainly accommodate other locations due to the size and population of students. Promotions Fitness Depot will initially use printed flyers, hand out pens with our logo and word of mouth to let people know about our facility. We also plan to use the internet as a marketing tool.
We will use promotions on Faceable and Twitter to increase wariness and to promote our brand. We will also use another media source called Four Square which will allow people to earn discounts on memberships. As we obtain members, we will have Monday friend day every Monday. Members can bring a friend to see what we have to offer and help them make a decision if they are uncertain. Once a month we will have Goodness day in which we offer free subs. We would purchase subs from Goodness in return for them handing out free one day passes to Fitness Depot. This marketing avenue will allow us another opportunity to utilize a well-known brand to capture additional business.