Zone fitness market research

g everyplacen seaworthiness market research accord to Kotler, P. (1988) trade is a accessible and extinguishrial serve wholesome by which individuals and groups good deal obtain what they necessity and what they want. This basin be achieved by creating, offering and ex changing products of cargon for with early(a)s. The figure bedepression illustrates the core concepts of trade wish take, wants and demands, Product, value, cost, satisf follow up and different(a) concepts.Needs, wants demandsProductValue, cost satisfactionExchange transactions dealingshipsMarketsMarketing marketers bod 1.0. Core Concepts of Marketing geographical z wholeness fitness is the new-made wellness and fitness party based in Huddersfield. Due to the continued growth of the health and fitness market in the UK, the family was formed. The company offers a hunt of health and fitness service on a social station further basis. partition off fitness operates 1 mile away from town nubble in a place which was previously furniture wargonhouse. Few of the companys facilities argon, course machines, exercise bikes, weights etc. One of the important parts of the serve to the members is that thither is an initial joining fee and the lead changes according to the period of social station taken out for.The company was formed by tierce friends with in a flash previous managerial or merchandising go through or knowledge. The company is three years old and now has employs a total of 15 staff. The company is looking to grow in in store(predicate) both in terms of members and excessively in terms of health and fitness facilities offered still feel it now guide to become to a greater extent effective at trade in order to face the contention.As a marketing consultant a report has been produced, to increase and improve the companys marketing activities. The general review of the report c everywheres field of operations much(pre noun phrase) as, diligence an alytic thinking, market segmentation, targeting, position, pricing strategy, etc.INDUSTRY ANALYSISAccording to Brassington and Pettitt (2006), the fabrication analysis aim is to hold back and understand the evolving opportunities and threats of the markets as they relate to the strengths and weakness of the health and fitness firm. The analysis covers aras such as size, growth, profits, cost structure, competitors, etc.MACRO ENVIRONMENTstinting environment is the general changes the sparing conditions and the changes in pattern of the income distribution of the customers as well as the operation of the economic system be answerable for a variety of economic phenomena. These involve factors such as fluctuations, trade, economic growth rate, inflation and recession. (Peter, 2008)Socio-cultural environment is the attitudes towards the physical fitness and general wellness and individual ways of life of the customers and standards formed by the cultures and changing social values. (Johnson, et al., 2008)Political environment is the government with its political involvement and the legislation as the important components which butt change the political as well as do work of the key issues in the companies such as policies, regulations etc. (Peter, 2008) technological environment is responsible for the innovation and changes of the equipments such as tread mills, bikes, weights machines and also supplements. The development and new equipments can withdraw an effect on the future of the Zone fittingness. The technology can change the emergence of the many relievo products. (Arm immobile, et al., 2009)MICRO ENVIRONMENTSUPPLIER Suppliers form an important link to the companys general value delivery system. It give ups the resources needed by the company to produce its goods and serve. The Zone seaworthiness management must watch supply availability such as supply shortages, delays and other events which can cost sales in the short term and damage custom er satisfaction. (Gilligan, et al., 2009)CUSTOMER The Company demand to study the types of customer markets. Consumer markets consist of individuals or households that need services and health c ar activities for personal consumption. Business markets where the company can sell the services to the employees and for further mathematical processing. Reseller markets where the company can buy the facilities for certain profits. (Gilligan, et al., 2009)COMPETITOR The marketing concept states that to be successful a company must provide greater customer value and satisfaction than its competitors. The Zone fittingness concern must do more than simply adapting to the ask of the customers. They must strive strategic advantage by positing their offerings strongly against competitors offerings. (Armstrong, et al., 2009)MARKET SUMMARYThe UK health fitness partnerships can be divided into two sectors health clubs which be undercoverly owned and vacant centres which are owned by th e topical anaesthetic authorities. Leisure centres which are defined as public facilities are changing to cope up with shifting consumer priorities and financial measures. UK has over 5,750 indoor facilities for memory fit. The health club is still fairly fragmented, but there are now 10 large chains including David Lloyd leisure, physical fitness First, Virgin dynamic and LA Fitness. (The Leisure Database, 2007)MARKET DEMOGRAPHICSPopulation of UK 62,348,447 as of July 2010.Age mental synthesis 0-14 years 16.7% (male 5,233,756/ womanish 4,986,131)15-64 years 67.1% (male 20,774,192/female 20,246,519)65 and over 16.2% (male 4,259,654/female 5,612,953)Median Age Total 39.8 yearsMale 38.6 years young-bearing(prenominal) 40.9 years (Mouseprice, 2010)MARKET SIZE GROWTHThe UK health fitness diligence has a revenue estimated almost 3.6 billion and 11.9% of the UK population are registered as members in the health and fitness or publicly-owned fitness facilities. The social status h as been emergence up by 3% since 2006 and now there are over 230 new public and private facilities that energize been added to the health and fitness industry portfolio. Almost 90% of the UK population lives within 2 miles of a private health or publicly-owned fitness facilities. UK market for health and fitness club has increased by a moderate of 1% in nominal terms, by 2010. (Research and Markets, 2010)On contrary to this, annual growth rates let been declined from 7% in 2006 to just 1% by 2010. Both of which, exerted a downward pressure on disposable income and consumer confidence, reducing demand for health and fitness centres as the money is spent on necessities rather than luxuries. Moreover, annual growth is also believed to have slowed due to increased saturation and competition in the market, which has led to a reduction in social status fees in the private sector. (The Leisure Database, 2007)The membership penetration is 33% higher in London than the UK average and al so obesity risk rates are 65% lower in London. The Southwest region is a nonher area in UK to have lower risk in obesity by 34%, but the membership penetration direct is higher by 3% the UK average. The regions of North East and South West have largest membership growth in private club memberships whilst the East Midlands topped the astonishing growth rates in the public sector. (Corporate Fitness, 2010)3.0. PORTERS FIVE FORCESA Porters fiver forces analyses explore five different principal factors, which determine the attractiveness of a health fitness market.Bargaining power of buyersZone Fitness menace of new entrantsBargaining power of suppliersCompetitive disceptation within an industryThreat of relief pitcher productsFig.2.0. Porters five forces for Zone FitnessThreat of new entrantsThe barriers to the new entrants are very high. The main development of private gymnasium and leisure centres on the country which take years and capital demand have put sm everyer companie s out of the picture. Some of the health clubs are combined and franchised, but all existing major big companies have sufficient back up support to make themselves unattractive for acquisitions. The command of some of the big health and fitness companies insure that they can manage a threshold level of profitability. (Euromonitor International, 2010)Bargaining power of suppliersSuppliers have low bargaining poor over health and fitness centres due to strong brand power and distribution capabilities of the companies and due to fragmented supplying industry. The need for facilities and equipments is to explore and re-conceive their business models, like by playing on the customers experience issue and to try to arrive at a more economic but risky mode. These kinds of initiatives might also help moderate the attitude of health and fitness companies. (Market and Business Development, 2010)Bargaining power of buyersBuyers have a strong bargaining power over health and fitness compani es because of the range of choices the buyers have. All major companies sell corresponding facilities and at nearly same price so buyer can switch to another company without any doubt. Nearly 94% of customers today have choice of three or more health and fitness companies which can be functional to them within 5 minutes of range and many other leisure centres as well. Numerous companies are competing for their business with facilities of varying size and formats. force of buyers is high and companies that raise prices are likely to lose customers. (Research and Markets, 2010)Threat of substitute productswellness and fitness centres in the getable sector are an available alternative for customers, but there has been some convergence between these two sectors as the companies extend their formats. (Euromonitor International, 2010)Competitive rivalry within an industryThe rivalry is intense even though the market is concentrated, especially among the top companies. At a micro level the industry rivalry is centred and a limit strategy that the major companies resort to if one initiative is successful. The rivalry among major companies is intense and this has led to a price war between companies. This is because the companies capture the declining profitability without exiting the market and there is no incentive for major companies to surge into extreme and profit eroding price war. (Aaker and McLaughlin 2010)3.1. COMPETITIONZone Fitness has a highly competitive market in Huddersfield, but the spare-time activity four will be direct competitors due to their establishment in and around Huddersfield.Body partition off Fitness CentreUnit 11f/Nortonthorpe Mills/Nortonthorpe Industrial dry landWakefield RScissettHuddersfield, West Yorkshire, HD8 9LAWebsite www.bodyzonefitnesscentre.co.ukServices offered gymnasium, beauty centre, health club, aerobics, swimming, and sauna and cardio theatre. (The Fitmap, 2008)Fitness FirstLockwood ParkBrewery DriveHuddersfield, West Yorkshire, HD4 6EN01484 429000Website http//www.fitnessfirst.comServices offered gym, cardio theatre, spinning room, x-press workout, crche, squash, studio, lounge, juice bar, personal trainers, sauna, and steam room, aroma and sun bed. (The Fitmap, 2008)University of Huddersfield GymSports entrance hallQueensgate,Huddersfield, HD1 3DH01484 472093Website http//www.hud.ac.uk/uni/about/campus_facilities/06_sports_hall/1_html/the_gymServices offered cardiovascular training, step n tones, boxercise, groove n move, hula hoops, kettlebell, boot camp, pilates, abdominal blast, sports team camp, yoga, kung fu, spinning, tae kwon do and swimming. (Bizplan Cover, 2009)MARKET SEGMENTATION, TARGETING AND attitudeMarket segmentation can be defined as the process of dividing the total market into segments or target market of consumers with common needs or characteristics and selecting one or more segments to target with a marketing immingle.Zone Fitness company needs to know the needs an d wants of their customers to fall in enable them to provide facilities and services that will satisfy the customer needs and wants. This may be enigmaatic as there are legion(predicate) health and fitness facilities in the consumer market which the company can satisfy. at that placefore, Zone Fitness must divide its market into various needs and wants. This is the process of the segmentation. (Cant, et al., 2009)The company must next decide which market segments needs it can best satisfy. The company should develop its marketing offers such as facilities and membership discounts and the process of deciding which segment to pursue is referred to as targeting market. Therefore, targeting deals with the process whereby a marketing mix is tailored to fit some specific customers. (Aaker and McLaughlin 2010) stance refers to the creation of a specific image or perception of the facilities and services by consumers in a selected target market. It is therefore the way in which consumer s view competitive brands or types of products. For new products it means how the company wants to study the new item in terms of its predecessors. The company will need attempt to establish a favourable position for its product by means of marketing dialogue such as advertising, however as it is believed that the product positioning is limited to advertising is no longer appropriate. (Ouwersloot and Duncan 2008)4. trick up ANALYSISMany companies evaluate opportunities utilizing an analysis framework referred to as SWOT. It is an acronym for strengths, weakness, opportunities and threats that can be investigated and can be used in early stages like market planning and closing making for zone fitness. On one hand it operates the matching of vital strengths with major environment opportunities and on the other hand it provides for improvising weaknesses and possibilities of risk in the zone fitness marketing. (Cant, et al., 2009)STRENGHTSZone Fitness is more committed towards a re sult orientated approach to remark its customers in a highly competitive market.Facilities and health create mentallys are well taught according to the need of Zone Fitness.Reduction in fees and discount in membership service in entire market of UK. Also Zone Fitness has well trained and qualified staff.Personal services, individual programmes and advice are seen as being a key part of competitive success. (About Health Clubs, 2009)WEAKNESSPersonal training and individual programmes can be expensive.There are no swimming facilities which can be a problem in providing services to a large pool of members.Marketing cypher is very short to attract business clients. (NetMBA, 2009)OOPURTUNITIESHealth and fitness clubs are rapidly growing in UK.Increasing health conditions and diseases such a obesity are causing people to join and grant more importance to exercise and health care activities.Health clubs and gym have become a routine of life in the peoples daily schedule.A low income ar ea can be of special focus for zone fitness which is mostly ignored by rival competitors. (NetMBA, 2009)THREATSOne of the main threats could be because of recession and economic downturn, which can slowdown the growth of health and fitness industry.Low cost equipments are also available in the markets for home exercise.Although market is rapidly growing a small level threat can be of low cost offers from well found competitors. (About Health Clubs, 2009)MARKETING MIXZone Fitness companys marketing mix is based on the factors of product, cost, distribution and advertising.PRODUCTHealth and fitness servicesRowing machinesExercise bikesWeightsAerobicsYogaSteam roomSauna, tanning retinueMassage services and JacuzzisPRICEZone Fitness will be facing a challenge with highly competitive markets such as David Lloyd, Fitness First, etc. Therefore company is offering services at cost less than existing market standards with reduced fees for the under 18s and over 55s and discounts for the fa mily memberships, etc. A new member for yearly membership would pay an initial joining fee of 100 and a yearly membership of 500. This would give members an unlimited access of the services and facilities of the company.PLACEZone Fitness company is located within the 1 mile radius of the town centre of Huddersfield. The company has a direct supply of their facilities and will not be involving in any kind of franchise or network. forwardingZone Fitness can use newspapers, magazines, internet, television and radio as the medium of advertising. In addition they could also print brochures for creating advisedness in the market about their health and fitness services. (Cant, et al., 2009)INTEGRATED MARKETING communications (IMC) STRATEGYIntegrated Marketing Communications is a cross-functional process of creating and nutritious profitable relationships with customers and other stake holders strategically controlling or influencing all messages sent to these groups and encouraging them. The marketing mix of an organisation for tangible products bid of four elements, these are marketing communications, price, promotions and distribution. The marketing communication element influences the other three elements therefore it is important for Zone Fitness to be aware of their relationship between these four elements, while designing and planning the marketing strategy. (Ouwersloot and Duncan 2008)The responsibility of Zone Fitness management is to compile a programme that establishes a framework for the development, implementation, coordination and control of companys marketing communications. The aim of such a programme is to develop an lastingness IMC programme that targets the customers in an attempt to influence their attitudes and behaviour.STRATEGIES OBJECTIVESSetting the IMC objectives and compiling it with the budget are crucial activities in the marketing communications department. IMC objectives and the budget constitute two basic guidelines and constraint i n the formulation of an IMC strategy and for the various elements. The period within which the IMC objectives and strategies must be achieved covers the same period which all activities of the various marketing communication elements are implemented. (Hutt and Speh 2009) IMC objectives and strategies the Zone Fitness can follow areThe objectives must be hypothesise and once they have been, a provisional marketing communication budget must be prepared on the basis of the formulated goal.Marketing communications development and different strategies for each element are usually the most comprehensive of all phases. Each marketing communications element plays a unique role in achieving the integrated marketing communications objectives.The IMC decisions must be co-ordinated to prevent element being singled out. The decision taken must be synchronised by the company so that the ultimate objective can be reached without any form of gemination and resultant additional cost.After that the re should be the development of an action plan for each IMC strategy. This is the operational programme, which is very detailed and contains activities, responsibilities and time frames.The penult is the measurement of the IMC effectiveness. It is important to ascertain whether the IMC programme has achieved its objective.The continual feedback on the effectiveness of the IMC strategy and programme so that deviations from the formulated objectives can be evaluated with a view to taking corrective measures.In the overall summary the IMC objectives and strategies must be derives from the marketing strategies and elements such as advertising, personal selling, promotions, publicity, public relations and e-communications must be derived from the marketing communications strategies for Zone Fitness company. (Ouwersloot and Duncan 2008)