FitLife Health Club: Strengths, Weaknesses, Opportunities, And Threats
- December 21, 2023/ Uncategorized
Strengths
Discuss about the Marketing Plan For Fitlife Health Club for Unique Selling Proposition.
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Strengths |
Weaknesses |
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The advantage of the organization is that it has a steady stream of clients who are eager to get fit. We have the latest fitness equipment in the industry to be competitive The unique resource is offering corporate fitness center members a promotion or discount rate The factors that mean we ‘get the sale’ are sending automated reminders to clientele and running an affiliate program for the members. The Unique Selling Proposition is to offer free-trial period for new clients that runs for 2 weeks. |
The health club could improve their outreach to potential clients on social media because it a fairly new business. As we are just starting the health club, we should avoid taking huge bank loans. People are likely to see our focus on individual membership only as a weakness. The factors that cause loss of sales are inadequate marketing online and offline in addition to old fitness equipment. |
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Opportunities |
Threats |
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The good opportunities we can spot are developing corporate programs to offer as internal marketing tool as well as a lack of dominant competition. An interesting trend is that people want to eat healthy and be fit. |
The obstacles we face are mainly in form of regulations and taxes. Our competitors are open 24 hours a day yet we only open 10 hours a day. Changing technology disrupts every business and the health club is also affected in that some of our equipment become outdated overtime. |
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Elements |
Factors |
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Political |
As the general elections approach, the federal government is likely to increase taxes for corporates and health clubs, thereby reducing our membership rates. Business regulation is also likely to introduce new taxes and increased scrutiny for health clubs. The political measurement of the general condition influences business action. The logic of the political gatherings in control impacts business practices. |
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Economic |
Economic variables allude to the character and course of the economic framework inside which the health club works. Economic variables incorporate the condition of the business cycle, the conveyance of pay inside the populace, and administrative money related and monetary approaches. This piece of the investigation regards the general prospects for the economy. Loan costs (interest rates), in numerous nations, are chosen by a national bank. |
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Social-cultural |
Social-classes would be another perspective influencing the consumer behavior. This alludes to the national status pecking order by which gatherings and people are recognized as far as confidence and distinction. As per David & Amanda (2005), the urban populace is more than 93% with a per capita salary of 9.1% which unmistakably exhibits development among social classes. |
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Technology |
Technology is a part of the condition a firm ought to consider in creating vital plans. Changing technology may influence the interest of a company’s items and services and its creation forms. Technological changes may make new open doors for the firm, or undermine the survival of an item, firm, or industry. Technological advancement keeps on moving at an undeniably quick rate (Laura et al, 2014). |
According to Lucia , Salvador & Philip (2017), gap investigation is an exceptionally valuable device for helping marketing chiefs to settle on marketing techniques and strategies. Once more, the straightforward apparatuses are the best. There’s a direct structure to take after.
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Market Objectives |
Gap |
Actions bridging the Gap |
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Market Development |
A small client base exists |
Offering incentives to new clients joining the health club |
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Market Penetration |
The penetration rate is 5% currently |
Increased promotion as well as appropriate marketing mix. |
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Diversification |
Fitlife Health Club currently focuses on individual membership only. |
The recommended action is to diversify to corporate clients. |
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Product Development |
The fitness equipment is relatively obsolete. |
Acquire new equipment. |
The cash cow is group fitness sessions where the relative market share is high but with a low growth rate. Therefore, the health club needs to invest in this service on a long-term period as the market evolves. Personal training service is the dog in the portfolio with a low market growth rate as well as a low market share. Few people are interested in one-on-one training sessions because of their busy lifestyle. The problem child (question mark) in the portfolio is the circuit fitness class with a high growth rate. However, the market share is low for this service. Lastly, the star of the portfolio is strength training and resistance training. They have a high market share and an equally high growth rate. Therefore, FitLife should invest in the star and drop the dog (personal training).
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Threat of new entrants (low) |
· Costly and takes time to build reputation for the health club · Huge learning curve, technology-driven · Current brands are very strong |
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Customers power (high) |
· Number of recreational people declining · Clients forcing new pricing strategies · Clients are price sensitive now more than ever |
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Supplier power (low) |
· Relationships are well established · Other suppliers of fitness equipment are readily available · Materials and talent (human resources) are abundant |
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Competition rivalry (high) |
· Intense among the established players in the fitness industry · Established brands have difficult time entering new areas of fitness equipment. |
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Threat of substitution (high) |
· Customers have a broad range of sports and leisure activities to spend money on. · Customers buy used items |
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Marketing Opportunity option |
Feasibility |
Rationale |
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Strategic alliance and cooperative business models |
Yes |
If the fitness club has strategic alliance with other business we have a potential to reach more customers. |
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New products or services to target specific markets |
No |
There are no new services being offered by the health club, just the usual membership. |
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Greater market penetration with existing products and services |
Yes |
There is a greater market penetration due to the current trend of healthy eating and fitness |
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Take overs |
No |
Being a new health club, we are not yet mature for a corporate takeover. |
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New businesses and franchising |
Yes |
The health club looks forward to new businesses as well as franchising as a way to reach new customers. |
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Marketing Mix |
Strategy |
Rationale |
Alignment |
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Product |
Each fitness center has a wide range of body building equipment like strength training Offers personal and certified trainers to individual clients to act as their guides for specialized programs |
FitLife has the latest equipment. |
Aligned with the market objective of product development. |
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Price |
It has implemented a premium pricing strategy for its products and services The want to be fit is a significant motive for people to splurge on fitness services since they consider it a well-intentioned reason. |
FitLife is certain of its high-quality products and services to justify the premium prices |
Aligned with market penetration objective. |
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Promotion |
It is a dynamic contestant in its promotional strategies since it recognizes the worth of marketing and image. Discount to large corporate membership |
FitLife offers discounts to particular group of clients in order to increase market share |
Aligned with market development objective. |
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Placement |
It runs a franchise arrangement |
The health club does this in order to be present in many parts of the country. |
Aligned with the objective of diversification. |
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Owner |
Cost |
Schedule |
Accountability |
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Product i. Package the service in an attractive manner ii. Re-usable products (equipment) iii. Clean and hygienic products |
FitLife Health Club |
$4,000 |
2 weeks |
FitLife Health Club |
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Price i. Discounts ii. Premium pricing iii. Competitive prices |
FitLife Health Club |
$500 |
3 weeks |
FitLife Health Club |
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Promotion i. Free-trial period ii. Invest in online marketing iii. Customized t-shirts |
FitLife Health Club |
$3,000 |
14 days |
FitLife Health Club |
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Placement i. Franchising ii. Strategic alliances iii. Open everyday |
FitLife Health Club |
$5,000 |
4 weeks |
FitLife Health Club |
FitLife Health Club is still in the growth stage of the product life cycle. Personal training was indicated to have the maximum rate of implementation in any program or service in the fitness club. FitLife is a little late on this one. Perhaps due to the fact that personal training is occasional in climbing gyms but not unfamiliar.
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Owner |
Cost |
Schedule |
Accountability |
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Introduction i. Increased promotion ii. Affordable prices |
FitLife Health Club |
$400 |
4 weeks |
FitLife Health Club |
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Growth i. Affordable prices ii. Online promotion |
FitLife Health Club |
$3,000 |
4 months |
FitLife Health Club |
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Maturity i. Discounts ii. Open everyday |
FitLife Health Club |
$500 |
5 months |
FitLife Health Club |
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Decline i. Review the product portfolio ii. Lower the prices |
FitLife Health Club |
$400 |
4 months |
FitLife Health Club |
While advancing the services, FitLife has to guarantee that any marking, explanation, quote or some other portrayal isn’t false or misdirecting. Segment evaluating is the point at which the cost of an item or service is publicized or shown in independent parts. In the event that of publicizing, likewise give the maximum comprehensive of extra expenses in a more conspicuous manner (Manfred & Stefanie, 2017).
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Marketing Metric |
Example of Implementation |
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Attainment cost of new clients |
The attainment cost per client is a crucial piece of the marketing approach. Recognizing the costs of acquiring a new client through the numerous channels of marketing is an initial idea for following the inclusive accomplishment of a marketing effort. |
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Leads |
In order to for this fitness marketing KPI to work, FitLife needs to trail it and then emphasize on lead creation practices (e.g. social media campaigns, advertising, besides lead capturing). |
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Conversion rates |
In case FitLife offers a free-trial period as part of the enlisting procedure, we will have to calculate the rate of conversion for leads who start the offer, also how good we translate those enjoying the giveaway visits to lasting memberships. |
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Rate of Retention |
FitLife measures this over the progression of a month. We just take the number of remaining customers at the close of the month then divide by the overall number of standing customers at the beginning of that particular month (specifically, 10 reserved memberships / 13 opening memberships = 77%). |
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Member Lifetime Vale |
To discover this measure, just total each payment a customer makes in the life of their involvement. |
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Member Satisfaction |
This is measured by the success of the affiliate program for our clients. |
References
Åke F. & Christian G., 2017. Communication-in-use: customer-integrated marketing communication. European Journal of Marketing, 32(2), pp. 445-463.
David P. & Amanda B., 2005. Intergrated Marketing Communications. Second ed. England: Pearson Education Limited.
Laura L. P., Victoria B. J., Melih M., & Ilan A., 2014. Franchising and value signaling. Journal of Services Marketing, 28(2), pp. 105-115.
Lucia P., Salvador B. & Philip J. K., 2017. Measuring integrated marketing communication by taking a broad organisational approach: The firm-wide IMC scale. European Journal of Marketing, 14(3), pp. 692-718.
Manfred B. & Stefanie S., 2017. Integrated marketing communication – from an instrumental to a customer-centric perspective. European Journal of Marketing, 11(5), pp. 464-489.
Mart O. & Gergely N., 2017. Just doing it: theorising integrated marketing communications (IMC) practices. European Journal of Marketing, 66(5), pp. 490-510.
Michael J. V., Fatemeh H. H., Riza C., Carl B. D. & Vanya L. M., 2016. Exploring the integration of social media within integrated marketing communication frameworks: Perspectives of services marketers. Marketing Intelligence & Planning, 10(3), pp. 19-40.
Paul J. P. & Jerry C. O., 2010. Consumer Behavior and Market Strategy. 9th ed. New York, NY: McGraw-Hill/Irwin.
Philip J. K. & Inga B., 2015. Integrated marketing communication: making it work at a strategic level. Journal of Business Strategy, 9(2), pp. 34-
