Essay, Pages 7 (1663 words)
Before reaching the decision to open and operate a personal training centre, extensive research identified the need for one that will offer the ultimate solution to the several health fitness needs that are very crucial to the surrounding community and the general society at large. Health and fitness services have been a rare thing and many people have had to forfeit them due to either their rarity or unavailability altogether. A spot-check showed that many people are willing to enroll in a fitness centre but there are vary few of them and the ones that are available either have a very small
capacity, charge exorbitantly or lack all-inclusive programs.
This project is at revolutionizing the whole concept of health fitness so as to help the masses in getting this very vital health-boosting service that has been a myth to many. In essence, it is not a new product but a venture into the existing market with improvements and solutions to various inadequacies of the existing fitness centers.
The children and the teens have not had an opportunity to freely access these fitness facilities and when they do, the equipment is not will suited for their use. The
shortage of instructors is another problem altogether. This centre aims at stepping in to assist in providing these essential services to the society and at subsidized charges so that the willing but who have been unable to access them now can. There are challenges that are expected to be encountered in the successful implementation of this project.
Some of them are internal while others are external. Basing upon the existing market situation, rent rates are way too high compared to the projected returns high. This could affect the successful implementation of the project
given the current economic situation. Other factors are high costs of labor and prohibiting government taxes and levies. This is new field and there is definite lack of experience. Every new situation brings with it new challenges and so does a new business venture. This is anticipated although apprehensiveness is a great undoing. Some of these challenges can be summarized in terms of strengths and weaknesses, opportunities and threats as follows; Strengths: • An in-depth knowledge from interaction with people in the field of physical fitness backed up with research. • Guaranteed start-up capital.
• Patented names giving us an edge in the industry. Weaknesses: • Lack of employees with enough experience in the industry. • Limited cash flow to provide back-up in case more is needed to be pumped into the business after the initial investment capital. • Lack of adequate exposure in the relatively new field. Opportunities: • A ready market waiting to be exploited. • Strategic location for the business. Threats; • Unfair competition. • High government taxes and levies. • Low customer turn-out. Target Market The target market is mainly the youth, the middle-aged and the ageing masses that
so much need and deserve our services which are quite a challenge to access this side of the State. Physical fitness is increasingly becoming more of a compulsory undertaking than it was previously viewed as being purely a social status exercise and an elitist endeavor for leisure and pastime. The middle-aged of the surrounding society comprises mostly of the working-class whose normal day-to-day activities heath day-to-day activities are squarely dependent on their physical fitness. This category provides the most ready market for the services
besides being the most reliable of the entire market segment in terms their financial standing and awareness of the benefits that come with good health that comes with physical fitness courtesy of their level of education. The youth on the other hand provides the second largest block in terms of customer base as they too need to be part of the physically fit of the society. The factors for this are much the same as those of the middle aged although their needs may differ and so do their training programs. The aged, least of all in terms of turnout, is the most
demanding of all groups as they need individualized or personalized training. These three groups offer a great opportunity for growth and profit because it is guaranteed that they all will want to be in good health and this is the safest and surest of ways to achieve this end. The only other known alternative is regular medical check ups which are time consuming and tiresome and most of all very expensive. Better still, the most oftenly prescribed remedy for many medical conditions such those affecting the heart and those associated with blood pressure or hypertension is physical exercise.
This brings the immediate community a break from the past where the only option would be the crammed centers for fitness or the medical consultation option, most of whom can not afford as the economic belt tightens by the day (Kotler & Koller, 2009). This customer catchment portents well for the studio in view of the above factors; that the demand for fitness facilities can only increase given in view of the emerging junk-food culture mainly among the young and the youth. Results of recent statistics show alarming numbers of obesity cases among these groups implying an ever increasing
need to cut down on weight with the healthiest option being fitness exercises and dieting coming a distant second. This is the basis of the big success anticipated in terms of growth and profitability which will in turn translate to the sustainability of the venture. The target market will come from an area of nine square kilometers or three kilometers in radius from the location of the studio. This area is densely populated with all the people in the target group and whose income is stable. Their overall financial status is an average high and the projected net profit per annum is $ 48. 000.
This figure is based on well considered calculations with all the areas of accounts in operating costs, marketing and promotion and the asset portfolio including government levies and taxes together with rental charges (U. S. Census Bureau). The facility has a capacity of fifty persons in one session with a mens division of thirty five and a females division holding the remaining fifteen. There is no separation of ages or priorities given to one group over the other in one service category. The only difference is that there is an executive section whose charges are higher than others for
people of high economic standing and/ or who would not feel comfortable going it with the rest. This section accommodates ten men and five women. Competitors and Substitutes. Competition was anticipated and so were substitutes. Extensive research was carried out and it was established that besides the literal competition, there is still another battle to be won. The question of overcoming or keeping in step with the rest could not just have been wished away, otherwise an alternative plan to this venture would be to crumble under the heat of competition. Much as the bottom-line of our services is the
same, effort has been made to fine tune them and tailor them to suit the specific needs of the target customers. The erstwhile competitors are Lifestyle palace studio and Loyola Centre-Health and Fitness. They offer the similar services but not exactly the same services. The training facilities of these two will be countered by introducing an all new fitness division for the aged and children but this category of children starts from the age of nine and whose registration is subject to the approval of the child’s parent or guardian. By so doing the maneuvers of the competitors will be curtailed.
The chief competitors specialize mainly on pilates. Martial arts was identified as one area which was greatly underexplored and which mostly accommodates the wishes and ability of many teens who have previously sought it from highly specialized centers where the only sources of instructions are the experts on this and who are rare to find. The introduction of this training program will beat the competitors to their game much to the advantage of the new facility. Another strategy is to directly eat into the competitors’ market threshold. This will be done with speed while still taking caution not to be seen to be
antagonizing or sabotaging their business interests of the competitors (U. S. Census Bureau). Devising a good plan to deal with competitors is one thing and affecting that plan Is another thing altogether. The competitors will definitely try a counter attack strategy but this is not much of an issue. The moves they may try to put in place include a smear campaign, business propaganda warfare and other forms of sabotage with the aim of pinning down the new venture. Aggressive marketing strategies comprise some of those counter strategies. The brands on offer will be marketed to the target market in a
vigorous, concise and effective way so that the business rivals stand no chance. Marketing takes quite a huge amount of money and for this purpose $10. 000 has been set aside. This is by no means a very big budget that will, with proper utilization, bear the desired results (Kotler & Koller, 2009). Electronic media is number one on the list through which the new services will be advertised. Backed with the use of print media, this will be a true success story. Newspaper sections on advertisement come in handy in this case. The other option is the use of outdoor advertisement.
Billboards are an effective way of reaching the general public and especially where a new product is being introduced into the market. Substitutes too pose challenges of considerable proportions. These challenges need to be countered using marketing, and in this case not just plain old marketing, but real marketing coupled with marketing strategies to capture the interest and imagination of the target consumer of the intended services. REFERENCES Kotler & Koller, (2009). Marketing Management, 13th Edition. U. S. Census Bureau. Available at: http://www. census. gov/