The unique selling proposition of the new health and fitness center is that it is designed specifically to the needs of obese people. The three aspects of health and fitness center that will appeal to the prospective customers are – • Providing an environment where being obese is acceptable. o The training schedules and programs are developed keeping in mind of obese people. o Groups are organized in such a way that obese people can work and help each other out. o Personal training to people who feel uncomfortable with the social gathering.
• Secondly integrating the health center on the backend with machines provider so that they can develop specific machines which can cater to the need of obese people. o Health center layout plan should be such that it is convenient for obese people to go ahead with their schedule. • Thirdly integration of health center with health organization so that the health center can provide complete solution to its customers. o Information will be provided regarding the diet schedule and other health checkups. The whole stress of the new health and center will be on providing a complete solution with excellence in service.
The core competency of the health center will be how efficiently and effectively it able to help its customers to feel good about themselves. The core competency of service based organization is difficult to match by other organizations. It is easy to replicate the infrastructure but difficult to replicate the culture of a place. Vision and Mission of the Organization Vision – To enable the customers have a healthy and dignified life. Mission – Providing customers with the best resources which not only enable them to live a healthier and fitter life but also increase their self respect.
Key Result Areas of Marketing Strategy are – 1. Reaching out to 10,000 potential customers. 2. Having more than 200 Customers in the first year with a minimum revenue per customer per month to 100$. 3. Expanding the market of same health and fitness by 20 percent annually. 4. Up selling of various services to the member like saloon and beauty. 5. Identifying opportunities in new neighborhoods which provide similar sort of business opportunities. The company will be careful to define who the potential customers are.
Targeting them is essential for successful growth. The organization will design and develop all its business process to appeal to obese people. (Schultz, 2000) Advertising Campaign The advertising campaign with the help of local cable network will be launched where the message will be that at the health and fitness center the environment is friendly to obese people. The whole health center layout, design, machinery, processes are designed keeping in mind the problems faced by obese people in normal gyms. The advertising campaign will cost around 20,000 ASD.
Launching Trial Sessions by Going to Neighborhood Shopping Centers on Weekend This will give the prospective customers first hand idea of what the company philosophy is and how it is operating. One may not able to do the whole routine in the Mall but one will be able to understand how it is better than other health center. This will cost around 12500 ASD as one time renting will cost around 250 ASD and for 50 weeks the sum will come around 12500 ASD. Direct Marketing Campaign Direct marketing leaflets will be delivered to the prospective customers in the fitness center area.
Weekly cost for this campaign will come around 300 ASD so annual expense on direct marketing activities will come around 15000 ASD. Referral System will be designed so that people satisfied with the service can recommend and others and get discount on their own membership. The whole system will cost around 5000 ASD as it requires installing a knowledge management system. Promotional coupons will be given to prospective customers. For example people having more than 100 kg weight will be given 20 percent initial discount while those who are between 80 -100 can avail a discount of 15 percent.
The coupons will cost around 25000 ASD as they will be used aggressively to bring in the customer. Tie-up with Local Companies The organization will tie up with local business and provide special schemes to employees of those companies. This will not only improve the health level in those companies but also provide a steady revenue stream for the organization. This model can be replicated across all geographies in Australia. Hiring a sales representative along with promotional material will require around 35000 ASD annual expenses in corporate selling. Conclusion.
At present the opportunity for fitness and health chain is immense in Australia and it will keep on growing due to changing lifestyle and growing awareness among the people to keep them fit. The operations of the organization can be easily replicated in rest of Australia plus the cost per customer of promotion will come down significantly as new customers are more likely to come either by word of mouth or referral system.
References Kotler, P. , and Armstrong, G. (2006). Principles of Marketing. (11th ed. ). Upper Saddle River, NJ: Pearson Prentice Hall. Mandy Biggs (2006) Overweight and obesity in Australia.Retrieved on 21st feb 2008 from http://www. aph. gov. au/library/intguide/SP/obesity. htm Nutrition Australia (2000) Obesity in Australia. Retrieved on 21st feb 2008 from http://www. annecollins. com/weight_health/obesity-australia. htm Paige Waehner (2008).
Exercise for Obese People. Retrieved on 21st feb 2008 from http://exercise. about. com/od/weightloss/a/obese_exercise. htm Schultz, Don E. (2000) Communicating Globally: An Integrated Marketing Approach. Lincolnwood, IL, USA: McGraw-Hill/Contemporary, 2000. Please do put in the feedback if you are satisfied with the work as it will help in my performance evaluation.