Innovative Gymnasium Concept Marketing Feasibility Report

PESTEL Analysis

With the rapid growth of globalisation the regular lifestyle of human being is getting hectic day by day. There is little scope of relaxing their body and mind by going to sports field. The emergence of gymnasium thus is considered as a substitute of fitness World. Numerous fitness clubs and institutions aim to fight against obesity in order to keep the World healthy. Large number of fitness freakier belongs to this World who dreams to be fit and fine for maintaining healthy life. Therefore, automatically the craze of gymnasium is getting high day by day in market. This very specific study has focused to make detailed overview about the market growth of gymnasium industry and its necessary risk factors for establishing its market.  

PESTEL analysis is primarily effective for analyzing external environment of a country where the industry is going to be established (Mohammed and Rashid 2012). In quest of establishing the gymnasium industry the political, economic, technological, socio-cultural, environmental and legal factors are the most prominent.

Political	UK is one of the most recognized nations in terms of application of laws and regulations. The political set of UK is stable that enables the business organizations in running a successful business (Mohapatra 2013). As per current political scenario, the government has announced to reduce the tax rate for business experts.
Economic Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	UK is out an out economically developed country. The economic contribution of service sector stood up to 76%. In this kind of economically developed country the gymnasium industry would not have to face any challenges in grabbing the attention of customers. In such a country like UK the practice of gym has become a necessity rather than luxury.
Socio-cultural	UK is constituted with the people of diverse cultural backgrounds and psychological attitudes. In such a country gymnasium industry needs to focus on providing services for the people of every cultural backgrounds and psychological attitudes (Ngo, and O’Cass 2012). As a result, the industry would be able to deliver services being unbiased.
Technological	The inhabitants of UK are well accustomed in operating advancement of technology (Parente and Strausbaugh-Hutchinson 2014). In this kind of situation, the entire operation system of gymnasium industry has to be based on advanced technology. In addition, the customer management system can be dependent on advanced technology as well (Mullins, Walker and Boyd 2012). Automatically, service users by sitting at their own workplace can communicate with the customer service providers.
Environmental	UK has made recognizable improvement in reducing the negative impact of environment. NGO and local council of UK have taken significant initiative for creating environmental awareness (Morgan 2012). In addition, European environmental standards have implemented several regulations and acts for maintaining environmental balance.
Legal	In order to run the entire process of business, the executives belonging to gymnasium industry would have to follow legal acts and regulations. For an example, employment right act implies that employees are bound to get 11 hours of rest while being associated with the business process (Ramaseshan, Ishak and Rabbanee 2013). In addition, business organizations are bound to give equal response to the employees of different cultural and geographical backgrounds and attitudes.

Table: Environmental analysis of UK

(Source: Sakas, Vlachos and Nasiopoulos 2014)

Porters’ five forces is one of the most significant tools for industry analysis which enables to evaluate power of buyers, suppliers and its competitors in the market (Slater, Mohr, and Sengupta 2014). Porter’s five forces are constituted with five major components:

Supplier’s Power	Suppliers’ power of gymnasium industry in the market of UK is low. Large number of distributors is there who tends to supply raw materials (Smith 2013). Therefore, fitness centres can get immense opportunities in bargaining with the distributors.
Buyer’s Power	Buyers’ power of gymnasium industry in the market of UK is high. Due to the large number of gymnasium centres the buyers can get immense opportunities of choosing the organization. Therefore, the bargaining power of purchasers is high.
Threats from the substitutes	In order to make the mind relaxed and cool, the people sometimes prefer to join Yoga centres or sports club as well. In this kind of situation, gymnasium industry has to receive major threats for maintaining their business glory and reputation (Tanner and Raymond 2015).
Threat of the competitors	YMCA, ROAR Fitness, Gymbox Farringdon, One LND are the most prestigious brands of gymnasium industry. In order to become each others’ competitor those organizations start to compete with each other fervently. Among all these competitors YMCA is one of the most prestigious brands constantly giving a market threats to its contemporaries.
Threat of new entry	In order to get a new market entry the competitors have to face immense challenges in gaining customer loyalty  (Theodosiou, Kehagias and Katsikea 2012). While launching a business in gymnasium industry the business experts have to implement innovative strategies and policies in grabbing the attention of target customers from different geographical boundaries.

Table: An effective industry analysis of Gymnasium sector

(Source: West, Ford and Ibrahim 2015)

SMART Objectives:

The primary goal of gymnasium industry is to provide a fit and healthy World by attracting the target market towards gym and other fitness activities (Wolf and Floyd 2017). With the help of SMART objectives the study has prepared five major objectives from five perspectives. The Smart objectives are as follows:

Specific	To gain business profitability by achieving  the demand of customers within one year
Measurable	To render product diversification and technique within gymnasium for gaining customers’ attention
Achievable	To gain international image and reputation by improving service quality within one year
Realistic	To enhance the competency of marketing executives and sale executives for convincing customers
Time bound	To spread out the business in international level within next one year

Table: SMART Objective of Gymnasium Industry

(Source: As Created by the Author)

Marketing plan:

As opined by Mason, Kjellberg and Hagberg (2015), providing superior quality of product is not the primary mission of a business organization. In quest of creating brand awareness the organization or the industry has to make an effective market plan. With the help of an effective market plan the business experts are able to gain brand image and brand identity.  While making a systematic marketing plan the importance of discussing target market segmentation, marketing mix strategy and impact of e-marketing and sustainability issue is the most prominent.

Target market segmentation: 

Before making an effective marketing plan the business experts have to focus on segregating the target audience based on which products and services are designed (Karababa and Kjeldgaard 2014). With the help of a systematic STP analysis the overall segmentation of target market in gymnasium industry is evaluated.

Segmentation:

The number of target market is segregated as per geographic, demographic and psychographic backgrounds. Most of the recognized places of UK such as London, Germany, Cambridge, Liverpool, Bristol, Leeds are the specific geographic areas where large number of people tend to show their consciousness on fitness and healthy life (Judson and Taylor 2014). Therefore, the business experts have targeted those areas from where customers show their interest in using the services of gymnasium industry. As per demographic backgrounds both male and female customers get equal priority and response for gymnasium industry (Fitchett, Patsiaouras and Davies 2014). People having high cost income status would be able to use the services of YMCA, ROAR Fitness, Gymbox Farringdon, One LND. The primary age group that are selected for this industry includes 20 to 40. This specific industry is primarily established for drawing the attention of young generation.

Porter’s Five Forces

Targeting:

As already stated people from 20 to 40 age group are the primary target audience. They can be male and female both as the business experts of gymnasium industry do not follow any specific gender biasness. The industry belonging to UK market tends to select premium customers by providing extraordinary superior quality of services (Tadajewski and Jones 2014). The services providers are out an out professional who are efficient enough in delivering the services within proper time.

Positioning:  

Positioning is one of the most significant approaches based on which products and services can be distributed through various channels. In order to position the brand in different geographical markets the business experts have to focus on selecting right media platform. As already stated the primary target audience for gymnasium industry is from young generation. As a result, the primary target audience is young generation (Barney 2014). As a result, the distribution channels that are selected for positioning the brands are social media. The realm of social media is vast and wide with the help of which people belonging to various geographical boundaries can exchange their views and thoughts though social media. Facebook, Twitter, Instagram, Youtube is the necessary channels with the help of which thee business experts can create brand awareness in the international market. In addition, people belonging to various cultural backgrounds and attitudes would get an in-depth overview about the brands and services (Fitchett, Patsiaouras and Davies 2014). As a result, social media promotion is creating immense impact in the consumers’ purchasing behaviour. Apart from the social media channels of UK the business expert is deciding to maintain their promotional activities with the help of direct marketing, television channels and print media.

Marketing mix strategy (7ps): 

Marketing mix evaluates the strategy on how products and other integral part of organization can be introduced in the market for grabbing customers’ attention. 7Ps of marketing mix is critically evaluated in this very specific study:

Product:

Rowing machines, exercise machines, exercise balls, exercise bikes, treadmills, are the necessary products that every gym of UK market is constituted with. On the other hand, some of the most recognizable gymnasium centres are there which intends to keep additional equipments for meeting the needs of premium customers (Mason, Kjellberg and Hagberg 2015). The name of those equipments include bowflex, power tower, grip pull up bar and so on.

Place:

UK industry gymnasium halls are primarily situated on the metropolitan cities that can be easily reachable to large number of customer (West, Ford and Ibrahim 2015). On the other hand, gymnasium halls like YMCA, ROAR Fitness and Gymbox are very much pro-active in providing online services as well.

Price:

As already stated UK is economically developed country. Therefore, the customers are effective enough inn paying the premium services of gymnasiums (Slater and Mohr 2014). While paying the premium services the service providers are also very much committed and loyal in giving their best endeavour towards customers.

Promotion:

Facebook, Twitter, Instagram, Youtube are the necessary channels with the help of which thee business experts can create brand awareness in the international market (Mulhern 2013). On the other hand, while choosing offline media platform the business experts have focused on using electronic media, direct marketing and print media.

Marketing Objectives

People:

While making the marketing plan the business experts tends to involve entire team of marketing department (Mohapatra 2013). With the help of participative form of decision making style the business experts intend to focus on sharing the views and thoughts of employees before making marketing decision.

Process:

Both offline and online process of services are available from the business centres of gymnasium. In order to deal with customers effectively the business service providers have rendered multi-lingual flexibility (Ramaseshan, Ishak and Rabbanee 2013). As a result, customers having language barriers do not have to face challenges in interacting with the service providers of UK gymnasiums.

Physical evidence:

Physical evidence is the elements that need to be introduced on the market for which customers are paying. Before using the services the customers need to gain detailed overview about product components, compositions and ingredients. As a result, the customers’ buying behaviour is highly influential (Ngo and O’Cass 2012). Therefore, providing free sample and services is the part of business tactics with the help of which the business experts tend to create an effective brand image and brand identity.  

Impact of e-marketing and sustainability issue: 

E-marketing is the process of delivering commercial message with the help of new media. As per the opinion of Mulhern (2013), e-marketing is possessed with numerous positive as well as negative impacts. Customers without going anywhere can get detailed information about the brand and the services with the help of e-marketing. Service providers of gymnasium industry would be able to get in-depth knowledge and understanding about the customers’ current desires and needs with the help of e-marketing. As a result, the entire marketing procedure becomes very much faster and systematic.

On the other hand, e-marketing is possessed with several negative impacts as well. Customers may not be flexible in getting accustomed with the advancement of technology. It is thus very much difficult for those customers in getting detailed information about the brand by using advancement of technology (Slater and Mohr 2014). As a result, both the customer and the service providers would have to face challenges in communicating with those customers who face difficulties in operating new technology. As a result, the number of target customers becomes very much limited. However, this very specific study has focused to make detailed overview on how organizations of gymnasium industry have to face innumerable challenges in maintaining their sustainability issue. Maintaining business with the help of only e-marketing is a major challenge for keeping up business sustainability. E-marketing is specifically helpful for young generation. Naturally, middle aged customers are getting deprived of receiving necessary updates about the services and products. Limited number of target customer has become a genuine issue for maintaining business sustainability (Mulhern 2013). In order to overcome this kind of situation, the marketing executives of gymnasium industry would have to focus on offline marketing activities for enhancing the number of target customers from various geographic boundaries.

Promotional plan and budget: 

Before making an effective promotional activity every business expert has to make proper promotional plans and budget. Based on that budget the entire promotional campaign and location is organized in accordingly.

Promotion Tools	Amount
	€
Tools of social media marketing
Twitter	€ 10,000
Facebook	€ 10,000
Youtube	€ 15000
Total Marketing expenses for social media	€35,000
Online Marketing Media
Online advertisements	€25,000
E-mail Marketing	€20,000
Online promotional Campaigns	€30,000
Total Budget for Online Media	€75,000
Marketing for Traditional Media
Magazines	€20,000
Newspapers	€10,000
Total expense for Print Media	€30,000
Electronic media	€90,000
Billboards	€10,000
Total expense	€100,000
Total Required Budget for Promotion	€240,000

SMART Objectives

Table: Estimated budget for promotional plan

(Source: As Created by the Author)

Time schedule of promotional methods: 

In this very specific part detailed analysis is provided regarding the chronological activities of promotional methods.

Main activities/ stages	1st-2nd Week	3rd– 4th Week	5th– 6th Week	7th-8th Week	9th– 10th Week	11th– 12th Week
Setting marketing objectives
Making research on current market trend
Choosing the quality of contents
Making Marketing strategy and analysis
Selecting channels and distribution
Conducting a marketing campaign
Using various media platforms
Collecting feedback from the target audience
Reforming promotional technique based on feedback

Table: Time schedule of promotional methods

(Source: As Created by the Author)

Based on this marketing plan some of the recommendations can be provided which are as follows:

• The business experts tend to focus on using social media most effectively which have specified the number of target audience. In order to increase the area of target market the business experts would have to focus on maintaining offline media promotion as well. As a result, customers from middle age group can attracted towards using the services of UK gymnasiums.
• Before making an effective marketing plan the business organizations would have to focus on evaluating market penetration in order to critically understand the ways of gaining competitive advantages. Therefore, by implementing Ansoff matrix strategy the study would have to focus on analyzing the market penetration plan.
• In order to expand the growth of industry the business experts would have to enhancing their promotional budget. With the help of an effective promotional tools global customers would show their interest in using the products and services
• Youtube channels can be used more positive for showing audio-visual effects. As a result, the customers would get to know about the importance of maintaining their health fit and fine. The business experts of UK gymnasium industry are very much dependent on Facebook and instagram promotion.

Summary and Conclusions: 

This very specific marketing plan has provided in-depth overview about the importance of effective strategies for enhancing brand loyalty in gymnasium industry. After summering the study it can be concluded that numerous fitness clubs and institutions aim to fight against obesity in order to keep the World healthy. In quest of establishing the gymnasium industry the political, economic, technological, socio-cultural, environmental and legal factors are most prominently analyzed and evaluated. In such a country, gymnasium industry needs to focus on providing services for the people of every cultural backgrounds and psychological attitudes.

The study has also focused to make in-depth overview on how gymnasium industry has to receive major threats for maintaining their business glory and reputation. With the help of Smart objectives the study has prepared five major objectives from five perspectives. The study primary aims to gain business profitability by achieving the demand of customers within one year. With the help of an effective market plan the business experts are able to gain brand image and brand identity.  An effective and systematic STP analysis presents the overall segmentation of target market in gymnasium industry is evaluated.

While making market segmentation the business experts have targeted those areas from where customers show their interest in using the services of gymnasium industry. The industry belonging to UK market tends to select premium customers by providing extraordinary superior quality of services. The distribution channels that are selected for positioning the brands are social media. The realm of social media is vast and wide with the help of which people belonging to various geographical boundaries can exchange their views and thoughts though social media. At the end of the study, some of the major recommendations have also been provided based which the marketing plans and activities have been improved for meeting customers’ needs and demands.

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