Itrain fitness is one of the leading boutique fitness centers in Sydney with having diverse service offerings. They are also one of the few fitness centers in Australia with having inbuilt pool and spa for the users. However, in the current time, it is identified that number of new brands are entering in this market and posing challenges to Itrain fitness (itrainfitness.com.au 2018). In addition, one of the major problems identified for them is entry of the global brands. This is due to the reason that Itrain fitness is a boutique brand operating only in Sydney, while there are some major global brands operating around Australia with having more brand identity and awareness. This is restricting the incoming of new set of customers in place.
The major situational problem for Itrain fitness is their less market penetration and coverage. This is causing fewer amounts of target customers along with lower market identity compared to their global competitors (Thompson 2014). In addition, the enhanced brand identity of their competitors is also creating negative customer recall value for them. It is also identified that a large number of customers perceive Itrain fitness as a more premium boutique fitness centre and less mainstream. Thus, the footfall is also not increasing to the desired extent.
Currently, the identified problem is further getting amplified with the continuous inflow of new entrants in the market. In the initial stage, Itrain fitness was only having the problem of attracting new customers in the market (Kim et al. 2016). However, in the current situation, they are also facing the challenge of retaining their existing customers in front of the aggressive branding of the larger competitors.
As it is identified that lower market presence and penetration is causing issues for Itrain fitness, this can also be considered as a potential opportunity also. This is due to the reason that increasing the market presence and penetration by means of opening more branches across Australia will help them to not only enhance their brand value and identity but also their business potentiality (Prud’homme and Raymond 2013). In addition, it should also be noted that an effective and ideal public relation strategy is important for Itrain fitness in order to build up enough buzz in the market. This will enable them to push their business further with having favorable market presence and identity.
Primary research will be conducted with the help of interview method. The interview will be taken with the top 4 executives of Itrain fitness and they were asked qualitative questions. In addition, the data will be collected through non-probability convenience sampling method. Each of the executives will be asked single questions. Implementation of qualitative type of questions will help in determining the differences of opinions of the executives along with identifying their approaches towards the identified problems. In addition, secondary research will also be done based on the findings from the primary research. This will help to justify the effectiveness of the approach initiated by Itrain fitness.
1) What is your core business strategy?
The first executive was asked about the core business strategy or intent being followed by the organization. According to him, the major approach that is being followed by them is to concentrate on a particular area or region and position their brand as a boutique rather than a mass market brand. The executive also stated that initiation of the this strategy helped them in the initial stage due to the reason that they earned a premium from the customers due to their positioning. However, in the premium stage, more global competitors entered in the market and offered the same level of service at more affordable cost. This led to the reduction in their business potentiality.
2) What will be your future business strategic intent?
According to the second executive, they are initiating to make the Itrain fitness a more mainstream brand in the market. This is due to the fact that they are having the need of more brand exposure and more market coverage. Thus, according to him, Itrain fitness will now be positioned as premium fitness center and not as boutique. In addition, he also stated the implementation of growth strategy in their future business intent to cover as much market as possible. They will not only cater to the niche market from now on.
3) Which medium you are going to use in changing the strategic intent?
According to the third executive, public relation will play an important role in determining the effectiveness of the future strategic approach of Itrain fitness. This is due to the reason that with the help of extensive process of public relation, Itrain fitness is aiming to enhance their brand value among the target customers. In addition, it is also being stated by him that with the help of public relation strategy, Itrain fitness will also communicate their distinctive offerings over their competitors to their competitors.
4) What you are targeting in the following years?
The fourth and the last executive were asked about the future targeting strategy of Itrain fitness to be initiated by them. As per him, Itrain fitness will now target more mass market customers over their previous niche market customers. In doing so, they are going to involved different mediums including the various modes of promotions to cater to larger customer sections. However, on the other hand, it is also being stated by him that the target set of customers will not be changed rather it will only get expended with more market exposure and coverage.
According to Toften and Hammervoli (2013), there are number of challenges to be faced by the business organizations initiating the niche marketing strategy. This is due to the reason that in the case of niche marketing strategy, organizations are having limited area of operation as well as having limited opportunities. This led to the restriction in enhancing the sales volume and volumes. The authors have also stated that niche marketing strategy can be effective only to the extent to which competition is low in the market. If the competition is high in the market, then the probability of gaining competitive advantage for niche marketing strategy will be less or limited. This same phenomenon happened with Itrain fitness.
According to Qrunig and Qrunig (2016), public relation strategy to be initiated by Itrain fitness will be effective in enhancing their brand identity. This is due to the reason that with the help of public relation strategy, the connection between the brand and the customers will be more effective and deep. Preference pattern of the customers can be effectively determined by the organization and on the other hand, brand recall will get increased among the customers. Thus, it can be concluded that the public relation strategy will be effective and fruitful for Itrain fitness in enhancing their business potentiality.
There are number of primary and secondary target segments being identified for Itrain fitness. One of the major primary segments will be the customers from the Tier I cities across Australia and with having active set of lifestyle and higher level of purchasing power. This segment will be targeted as the primary set of target customers due to the reason that with the implementation of the new strategy, Itrain fitness will have their branches in every tier I cities across Australia (Izadi and Mohammad Kimiagari 2014). Thus, geographical segmentation will be from these areas only. In addition, customers with having higher level of purchasing power will be able to avail the premium service of Itrain fitness. Active people will only get targeted towards the fitness regime and activities.
On the other hand, another primary target segment will be the customers above the age of 50. This is due to the reason that elderly people are becoming more concerned about their physical fitness and are getting attracted towards the gym and fitness centers. Thus, they can be targeted with the help of customized services for them (Floh et al. 2014). This will ensure larger target customer segments for Itrain fitness. It is also identified that corporate professionals can also be targeted as secondary target segment due to the reason that majority of them are not getting attracted towards fitness centers due to lack of time but some portion of them are having the potentiality.
The strategy of Itrain fitness will be to cover the maximum target market by means of different mediums of public relation. Majority of the public relation activities will be conducted in public place in order to have larger exposure of branding. In addition, public portrayal will help the potential customers to have a physical touch points and can provide them real world experience. The tactics will include targeting the morning walkers by offering free coffee. Itrain fitness will have kiosk with having treadmill and basic equipments. People will have to do a particular exercise for a certain number of times in order to have the free coffee (Tsitskari, Quick and Tsakiraki 2014). Thus, it will help in offering customer convenience by offering coffee as well as relating with them with the provision of exercise.
|
Goals |
Tactics |
Evaluation method |
|
To cover the larger section of the target customers |
Initiating promotional activities in different potential regions across the country. |
Determining the number of queries before and after the implementation of the campaign. |
|
To increase the footfalls |
Providing real world experience to the potential customers along with aware them about the advantages. |
Determining the subscriptions of new customers before and after the implementation of the campaign. |
|
To retain the existing customers |
Initiating loyalty programs and engagement drive. |
Evaluating the feedback of the existing customers. |
In this case, there may be ethical issues regarding body shaming. Overweight and underweight people may take the promotion of staying fit as offence and it will be perceived as bullying. Thus, it will be focused about not hurting anyone’s sentiments and promotional activities will be promoted in generalized manner.
|
Main activities/ stages |
1st-2nd Month |
3rd– 4th Month |
5th– 6th Month |
7th-8th Month |
9th– 10th Month |
11th– 12th Month |
|
Content selection for public relation campaign |
y |
|||||
|
Date, time and venue selection |
y |
|||||
|
Pre-event activities |
y |
y |
||||
|
Press Conference |
y |
|||||
|
Primary data collection |
y |
|||||
|
Arrangement of transport |
y |
|||||
|
Analysis & Interpretation of Data Collection |
y |
y |
||||
|
Post event activities |
y |
|||||
|
Press release distribution |
y |
y |
||||
|
Media database |
y |
|||||
|
Follow ups |
y |
|
Activities |
Estimated budget |
|
AUD |
|
|
Press Conference |
20,000 |
|
Media database |
4,000 |
|
Transport system |
9,000 |
|
Public relation agency |
27,000 |
|
Research plan formation |
10,000 |
|
Acquiring research techniques |
4,000 |
|
Primary data collection |
10,000 |
|
Printed material cost |
10,000 |
|
Press release distribution |
20,000 |
|
Final estimated cost (total) |
114,000 |
References
Floh, A., Zauner, A., Koller, M. and Rusch, T., 2014. Customer segmentation using unobserved heterogeneity in the perceived-value–loyalty–intentions link. Journal of Business Research, 67(5), pp.974-982.
itrainfitness.com.au (2018). Itrain Fitness. [online] Itrain Fitness. Available at: https://www.itrainfitness.com.au/ [Accessed 24 Oct. 2018].
Izadi, A. and mohammad Kimiagari, A., 2014. Distribution network design under demand uncertainty using genetic algorithm and Monte Carlo simulation approach: a case study in pharmaceutical industry. Journal of Industrial Engineering International, 10(1), p.1.
Kim, K.T., Bae, J., Kim, J.C., Lee, S. and Kim, K.T., 2016. The Servicescape in the fitness center: measuring fitness center’s services. International Journal of Sport Management Recreation & Tourism, 21(1), pp.1-20.
Prud’homme, B. and Raymond, L., 2013. Sustainable development practices in the hospitality industry: An empirical study of their impact on customer satisfaction and intentions. International Journal of Hospitality Management, 34, pp.116-126.
Qrunig, L.A. and Qrunig, J.E., 2016. Toward a theory of the public relations behavior of organizations: Review of a program of research. In Public relations research annual (pp. 37-74). Routledge.
Thompson, W.R., 2014. Worldwide survey of fitness trends for 2015: what’s driving the market. ACSM’s Health & Fitness Journal, 18(6), pp.8-17.
Toften, K. and Hammervoll, T., 2013. Niche marketing research: status and challenges. Marketing Intelligence & Planning, 31(3), pp.272-285.
Tsitskari, E., Quick, S. and Tsakiraki, A., 2014. Measuring exercise involvement among fitness centers’ members: is it related with their satisfaction?. Services Marketing Quarterly, 35(4), pp.372-389.
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