Marketing Plan For FitLife
SWOT Analysis
Part-A: SWOT analysis
|
Internal |
Strength The advantage of FitLife is that it is has 182,000 members It provides unique equipments for gym Unique resources such as automated treadmill can be gained by the company Factors such as good employee strength provides selling opportunities The USP of FitLife is the existence of 70 health clubs |
Weakness Improvement on the equipments can be made Avoiding use of old technology need to be maintained The prices of the equipments can be a weakness Factors such as lack of promotion loose the sale |
|
External |
Opportunity Opportunities for expansion in international borders exists Interesting trends like robotic simulation of exercises can be applied |
Threat Obstacles are faced from new entrants Competitors are using technologically advanced equipments Quality of the services are changing Change of technology can be a position threatening factor Cash flow is less due to lack of updated products Lack of updated products can threaten the business |
Table 1: SWOT analysis
(Source: Created by author)
|
Elements |
Factors |
|
Political |
The next local election in the Australia is in 2019. This may not have any impact on the business None of the pending taxation changes can hamper the company Business regulation will not have any impact to the regulation or deregulation of business The Government approach and other political entities can have a positive impact on the business The time scale for changes in legislation can be in 4 years of time Political factors related to trading may change in four years with the advent of a new President |
|
Economic |
The current economy of the Australia can be considered as unpredictable as drop in process may have a negative impact on the development of the country or the company The rates tend to vary depending upon the fluctuation in the economic condition of the country The disposal income is at a constant rise due to the growth of income. This is unlikely to change in the next years. The unemployment rate is significantly moderate in Australia. Therefore, the rate of hiring of workforce can be cheap The fluctuating growth of the economy needs to be considered along with the depletion of the income level of the customers |
|
Socio-cultural |
The population growth rate in the Australia is high with an average age of 37 years The general shift in attitude may not have any impact on the setting up of the company in the country The health and mobility of the society can be associated with the fact that people are willing to remain fit and healthy. The impact of this is that FitLife can help in the development of the society in a proper manner Employment patterns, job market trends as well as attitude of the people tend to be on receiving high profile jobs with proper pay Australian people are secular and so religious beliefs and lifestyle does not have any negative impact Socio-cultural factors such as age of the people can have a change in the business |
|
Technological |
Technologies like digitally enhanced bicycle simulation can be used New technologies such as robotic workout exercises can be used in the future None of the competitors have access to the new technologies Recent and modern technological hubs such as CSIRO can work with the company Technological factors such as quick calculation of finances can be used for enhancing the technological competence in the company |
Table 2: PEST analysis
(Source: Created by author)
|
Marketing objectives |
Gap |
Actions bridging the gap |
|
Product |
The products are old and lack development |
Advance the products using recent technology |
|
Price |
Prices are less due to lack of developed products |
Align the price with the new products for attracting customers |
|
Promotion |
Lack of proper information in the use of official website for promotion |
Use newspapers and social media to promote the company |
|
Placement |
Strategically placed in the city centre |
Need to have more branches within the society so that customers can gain the benefit of the company |
Table 3: GAP analysis
(Source: Created by author)
After the analysis of the BCG Growth matrix and the strategy of the company, it can be said that the services in which FitLife need to invest is the development of facilities all across the city.
The investment can help FitLife to gain recognition throughout the city by reaching out to more customers.
FitlIfe need to drop the services like hiring old people as fitness trainers and instead can hire reputed fitness people or existing people with skills and capabilities of acting as a guide.
The marketing objective of FitLife can be benefitted from the dropouts as it can help in the development of more talents within the organisation and consequently ensure that young people get proper training from the employees.
Based on specific marketing objectives FitLife can gain national or international expansion. This is because the company can attract more people to act as main contributors for the promotion of the fitness centre.
The analysis proves that FitLife sits on the Star strategy that signifies the investment for growth of the company.
Based on the value offering, market growth and market share can be attributed to the development of modern technology within the company and the ability to attract the interest of the customers.
The value offering is the manner in which strategies adopted by a company can add cost for the development of a company (Babin and Zikmund 2015). For FitLife the value offering is the star which can be considered as an investment for expansion. The cash generation can be in the form of profits that are gained after the value has been generated so that FitLife can continue with the growth of the company. The cash use signifies the manner in which FitLife can implement the finances. FitLife can ensure that the finances earned be used for the development of new training materials.
Figure: Five force analysis
(Source: Created by author)
|
Marketing Opportunity Option |
Feasible Yes/No? |
Rationale |
|
Strategic alliances and cooperative business models |
Yes |
The strategic alliances and cooperative business models can help FitLife to continue with the development of its strategies based on expansion and acquisition |
|
New products or services to target specific markets |
Yes |
It can help in drawing the customers to seek registration at the fitness centre |
|
Greater market penetration with existing products or services |
No |
The existing products of FitLIfe is not developed and due to this it can have a hindrance in gaining the interest of the target market |
|
Take-overs |
No |
Take-overs cannot be feasible mainly because the fitness centres can seek investment. Take-overs can have a negative impact as the managing strategies of the companies may not be the same |
|
New businesses and franchising |
Yes |
Franchising in areas of interest can have a strong impact in the development and the expansion of the company |
|
Past purchase |
No |
The past purchases made by the company cannot have any significant impact on the present or future of the company |
|
Satisfaction level |
Yes |
Satisfaction level of the customers need to be taken into account so that the service can be enhanced |
|
Creating marketing groups |
Yes |
Marketing groups can help in the analysis of the target markets |
Table 4: Marketing opportunity
(Source: Created by author)
|
Marketing mix |
Strategy |
Rationale |
Alignment |
|
Product |
Target market Differentiation |
It can help in gaining the interest of the target markets |
Can be aligned with the aim of expansion |
|
Price |
Market penetration Bundle pricing |
It can help in gaining the interest of the customers and expansion |
Alignment can be made with the products of the company |
|
Promotion |
Advertising Direct promotion |
Can help in identifying the target market |
Can be aligned with the development of new products and services |
|
Place |
Market coverage Direct selling |
It is effective in reaching the target customers directly |
Can be aligned with direct promotion |
Table 5: Feasible strategies
(Source: Created by author)
Part A
|
Product |
||||
|
Tactics |
Owner |
Cost (in AUD$) |
Schedule (in weeks) |
Accountability |
|
New products |
Manager |
2000 |
2 |
Yes |
|
Developed products |
Manager |
1000 |
3 |
Yes |
|
Important products |
Manager |
1500 |
1 |
Yes |
|
Price |
||||
|
Tactics |
Owner |
Cost (in AUD$) |
Schedule (in weeks) |
Accountability |
|
Price skimming |
Accounts manager |
500 |
4 |
Yes |
|
Price bundling |
Accounts manager |
1000 |
3 |
Yes |
|
Penetrating pricing |
Accounts manager |
1500 |
2 |
Yes |
|
Promotion |
||||
|
Tactics |
Owner |
Cost (in AUD$) |
Schedule (in weeks) |
Accountability |
|
Social media |
Marketing manager |
2000 |
2 |
Yes |
|
Newspapers |
Marketing manager |
1000 |
2 |
Yes |
|
Television |
Marketing manager |
1000 |
3 |
Yes |
|
Placement |
||||
|
Tactics |
Owner |
Cost (in AUD$) |
Schedule (in weeks) |
Accountability |
|
Direct marketing |
HR manager |
500 |
2 |
Yes |
|
Suitable location |
HR manager |
750 |
4 |
Yes |
|
Market coverage |
HR manager |
1000 |
3 |
Yes |
|
Grand Total Total cost: AUD$13,750 Total Timeline: 31 weeks |
Table 6: Performance criteria
(Source: Created by author)
Currently based on the analysis of the Product Lifecycle model (PDLC), it can be seen that FitLIfe is at the declining stage. This is mainly due to the rise of competitors in the industry with which FitLife has failed to cope up with. At the introductory stage, FitlIfe needed the support of the investors so that it can continue to develop its tactics in the business. The growth stage witnessed the company to gain popularity and as a result of it, the company managed to create 70 health clubs. It also accounted for 182,000 members in the company that highlighted the maturity stage. At this stage, FitLife was one of the most important fitness companies in Australia. However, with the rise of competitors like 98 gym, Crew, Star Track and others, FitLife failed to continue its domination as an effective company in the fitness industry.
|
Introduction |
||||
|
Tactics |
Owner |
Cost (in AUD$) |
Schedule (in weeks) |
Accountability |
|
Identify target market |
Marketing manager |
1000 |
4 |
Yes |
|
Develop equipments |
Marketing manager |
1500 |
4 |
Yes |
|
Growth |
||||
|
Tactics |
Owner |
Cost (in AUD$) |
Schedule (in weeks) |
Accountability |
|
Approach target markets |
Marketing manager |
200 |
3 |
Yes |
|
Expand the company |
HR manager |
2000 |
4 |
Yes |
|
Maturity |
||||
|
Tactics |
Owner |
Cost (in AUD$) |
Schedule (in weeks) |
Accountability |
|
Recruit talented staffs |
HR manager |
4000 |
4 |
Yes |
|
Gain opportunities for expansion |
HR manager |
2000 |
3 |
Yes |
|
Decline |
||||
|
Tactics |
Owner |
Cost (in AUD$) |
Schedule (in weeks) |
Accountability |
|
Analyse financial condition |
Finance manager |
2500 |
4 |
Yes |
|
Promote new products |
Marketing manager |
3000 |
3 |
Yes |
|
Grand Total Total cost: AUD$16,200 Total Timeline: 29 weeks |
Table 7: Performance criteria
(Source: Created by author)
The implementation of the marketing tactics that FitLife adopts need to abide by the Australian Consumer Law. The law is a part of the Competition and Consumer Act 2010.
At the same time, the company cannot indulge in any form of discrimination on the customers or the employees as per the Racial Discrimination Act 1975 (Fitlifept.com.au 2019).
The privacy of the customers is kept intact and any information related to the personal information shared by the customers is kept intact as per the Privacy Act 1988.
Ethical principles such as anti discrimination is practised along with the non-violation of privacy and unethical use of promotional pictures are undertaken in order to maintain the satisfaction of the customers.
Laws related to the Work Health Safety Act 2011 are maintained to ensure proper health of the customers as well as the employees.
|
Marketing metric |
Example of implementation |
|
SWOT analysis |
The implementation is done in order to analyse the internal capabilities of FitLife and its external influences in the market |
|
PEST analysis |
Can be implemented in order to understand the external business environment so that strategies can be formed |
|
GAP analysis |
Can be implemented in analysing the gap that exists between the current marketing mix practise with that of the required practise |
|
BCG analysis |
The implementation is done in order to identify the effective value that FitLife can provide to the business market |
|
Five force analysis |
The implementation of this strategy is done in order to analyse the potential threats and the competitors that exist in the business. Analysis of the buyers and sellers are also conducted in the process |
|
Product life cycle analysis |
Can be implemented to understand the stage at which FitLife exists and the manner in which it can hope to improve |
Table 7: Performance criteria
(Source: Created by author)
Communication with the stakeholders can be done either by learning the language spoken or by taking help from interpreters. Communication can be used to develop and maintain effective relationship, mutual trust and confidence by virtue of the behaviour. Manner of hand shake, attire, eye contact can help in communicating with people from a diverse culture. As a leader team members can be motivated by providing them with the opportunity to express their views. This can help in the development of the trust among the leaders and ensure that every team member understand the role that is expected from them.
Babin, B.J. and Zikmund, W.G., 2015. Exploring marketing research. Cengage Learning.
Fitlifept.com.au 2019. Home – FitLife. [online] Available at: https://www.fitlifept.com.au/ [Accessed 13 Feb. 2019].