Gym-wise Fitness Facility Strategic Marketing Plan
Company Summary
Gymwise Fitness Center is one of the health and personal fitness center in the Northeast States of the United States. We are running on the theme of offering gymnastics, healthcare, and body workout services through personal training to all age groups. The company has already established a unique impression in the target customers’ minds for offering high-quality, convenient services with frequent improvement and gradual market growth over the zonal competitors. Operating with a motto of serving the American population back to health, it currently has thirteen centers, which is insufficient to meet such a goal. Since the outbreak of the COVID-19 pandemic, healthcare is on the top concern of the people. We plan to expand to Austin, Texas, and our services will be aimed at fulfilling all the healthcare needs of our customers. The Gymwise Fitness Facility will provide yoga, gym, martial arts, karate, physiotherapy karate, and other workouts for fitness-conscious individuals at an affordable price through experienced instructors and physiotherapists. The protective services will be beneficial for female security. Online coaching for those unable to travel to the gym will also be provided, with the main physical gym in Austin, Texas.
SWOT Analysis
Strengths
Modern amenities at Gymwise Fitness Facility include a large gym, equipment that has received industry certification, and competent trainers. Additionally, there are numerous training facilities and extensive coverage all around the northeastern part of the country. The gym is a highly capital-intensive operation with a lot of infrastructure. The Gymwise Fitness Facility has a reliable source of funding, is flush with cash, and consistently generates income. This serves as the gym’s greatest point of strength. Fitness Facility Strategic Marketing Plan
Weaknesses
Gymwise Fitness Facility has concentrated on generating steady income, but they haven’t yet given attention to cost management. In the long run, this subpar financial management may prove to be detrimental. As an elite competitor in the fitness industry, Gymwise believe that the competition might not be able to surpass them, an assumption that has turned out to be costly, they have been overconfident and haven’t worked effectively to develop goodwill. Personal fitness objectives are the main focus of Gymwise Fitness Facility. They are very strict about their clients adhering to their workout regimen, which leaves them feeling exhausted by the fitness concentration. Gymwise Fitness Facility places a lot of attention on equipment and custom workout plans. Additionally, the machinery is regularly maintained, entailing expensive and continuing maintenance. This can end up costing a lot of money.
Opportunities
People are becoming more frequent fitness centers goers as they become more and more concerned about staying in shape. By leveraging on the increased demand for fitness, gyms may seize this opportunity. Only providing fitness services is no longer enough for the gym to survive. There is a huge need for value-added services like personal training, cafes, and food courts. Increased income opportunities result from the potential to charge more for everything. As a result of changing lifestyles, such as growing fast food consumption, obesity, and non-communicable diseases, more people are attempting to enroll in weight loss programs. As a result, the demand for fitness centers is rising.
Threats
Fitness centers can be found in hotels, apartments, and communal living areas. They are available everywhere. People choose to visit these places because the majority of them don’t require payment. Competition from other well-established gyms and fitness centers could turn into a major threat.
Target Market Analysis
We aim to provide equal health opportunities to our male and female clients. For that matter, our customer base is broad. This primarily includes athletes with needs like strength, speed, flexibility, fitness, and bodybuilding. We also aim to take the ladies out of their daily tiring routines and provide them with a healthy way of entertainment and recreation. Apart from equipment bases exercises, we aim to arrange yoga for our customers. Gymwise Fitness Facility also considers the needs of the physically challenged and those who are undergoing physiotherapy. Our target customers will be divided into different categories, from the age of seven years to older adults.
Situational Analysis
Recently, health has been a concern in the social context, where America has been recorded as one of the developed nations suffering from obesity and other non-communicable diseases (Dufour, 2018). The gym market in the United States is substantial but likely needs to be fully saturated. According to Fried and Mumcu (2017), 58 million Americans with an average age of 40 use a gym or health club annually, generating $21.8 billion in revenue yearly. The figure represents approximately 20% of the nation’s overall population, indicating that there may be potential for further growth. However, the industry’s expansion rate has slowed, attributing the trend to excessively high membership prices and the Covid-19 pandemic (Swaid et al., 2019). The target population appears to be middle-aged people with substantial disposable income. They want to improve their health but can be price-conscious, emphasizing the price to the perceived effect ratio. They will come to a gym because few alternatives exist for combating obesity and improving one’s health.
In Austin, However, competition between gyms is strong in the area as they try to attract the same customer base. They try to implement attractive features such as discount deals for families or highly specialized equipment. They devote particular attention to trainers, who constitute a substantial part of a gym’s attraction and can form a personal customer base. With that said, there are no Gymwise Fitness Facility gyms in the area, representing a substantial opportunity.
The current stable growth trends in the U.S. economy supplement the positivity of the situation. The Consumer Price Index increased by 2.3% in 2019, indicating steady and controlled inflation and overall economic growth (US Bureau of Labor Statistics, 2022). Consumer spending is likely growing along with it, making them more likely to consider investing in a gym membership and expanding the overall customer base. Fitness Facility Strategic Marketing Plan
Marketing Strategy
Gymwise Fitness Facility is a somewhat different approach to traditional gyms that appeals to a slightly different audience. According to “The Business of Gymwise Fitness Facility,” nearly half of the brand’s customer base is aged 25-34, and more than half earn $150,000 yearly. As such, the gym will market itself to that customer base and use the power of the name to attract customers with no alternatives, positioning itself as an accessible, community-focused health option. Fitness Facility Strategic Marketing Plan
As per the central Gymwise Fitness Facility proposal, its product portfolio will consist of an exercise regimen under the supervision of a trainer, with the value offer consisting of its unique and particularly effective nature. Due to this unique proposition and the high income of the customer base, premium prices can be justified. With that said, the company’s employees will receive substantial discounts or be able to use the services for free. Within one year, the gym should acquire a stable audience of three hundred members who regularly visit it.
Gymwise Fitness Facility follows a direct distribution policy as a brand, and the facility proposed in this plan will be a direct distributor, offering health services to visitors on-site. Fitness Facility Strategic Marketing Plan
Gymwise Fitness Facility’s will operate based on a B2C paradigm. It will use a combined marketing approach that consists of traditional advertising, online presence, and branding. The first two can let target audiences know about the opening of a new gym so they can decide to attend it. The Gymwise Fitness Facility branding will be used as the main differentiating point that will motivate customers to choose the facility over its competition. The brand’s online presence can also help supplement the reach of the gym due to its substantial follower base on several social media.
Implementation Plan
Secure land and build and build a new facility in Texas. Prepare the building for the gym activities for $20,000 for two months. The progress of the repair crew will be regularly monitored, and the final check will be conducted via visual inspection.
Begin initial promotion of the facility activities through various advertisement platforms such as social media, local media stations, and referrals. The cost will be estimated at $15,000 for six months.
Hire coaches for the gym: $35,000, six months. The company’s HR department can handle parts of this process with the gym’s management and apply its established monitoring and evaluation tools correspondingly.
Purchase and install the necessary equipment: $10,000, 2 weeks. The acquisitions department will oversee the process, and the gym management will measure customer feedback upon using the tools and use it for future reference.
Finalize the preparations and open the gym: $5,000, 2 weeks. During this time, management will try to discover any potential issues and address them before opening the facility. Afterward, it will collect customer feedback on aspects they liked and disliked and act on it.
Future Financial Projections
| profit & loss ($) | JAN | FEB | MAR | APR | MAY | JUNE |
| sales forecast ($) | $ 22,500 | $ 24,000 | $ 25,500 | $ 27,000 | $ 28,500 | $ 30,000 |
| total cost of sales ($) | $ 12,500 | $ 12,500 | $ 12,500 | $ 12,500 | $ 12,500 | $ 12,500 |
| Returns,Discounts, Distribution agreements, Others | $ 5,625 | $ 5,625 | $ 5,625 | $ 5,625 | $ 5,625 | $ 5,625 |
| TOTAL GROSS PROFIT ($) | $ 4,375 | $ 5,875 | $ 7,375 | $ 8,875 | $ 10,375 | $ 11,875 |
| Marketing&Corporate Communication | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 |
| Salaries | $ 4,000 | $ 4,000 | $ 4,000 | $ 4,000 | $ 4,000 | $ 4,000 |
| Office Supplies & Maintenance | $ 500 | $ 500 | $ 500 | $ 500 | $ 500 | $ 500 |
| Insurance | $ 200 | $ 200 | $ 200 | $ 200 | $ 200 | $ 300 |
| Telecommunications | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 |
| Depreciation& Amortization | $ 150 | $ 150 | $ 150 | $ 150 | $ 150 | $ 150 |
| Other Expenses | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 |
| total expenses ($) | $ 7,200 | $ 7,200 | $ 7,200 | $ 7,200 | $ 7,200 | $ 7,2000 |
| earnings before interest & taxes ($) | -$ 2,825 | -$ 1,325 | $ 175 | $ 1,675 | $ 3,175 | $ 1500 |
| Interest Expenses ($) | $ 750 | $ 750 | $ 750 | $ 750 | $ 750 | $ 750 |
| earnings before taxes ($) | -$ 3,575 | -$ 2,075 | -$ 575 | $ 925 | $ 2,425 | $ 500 |
| income taxes ($) | $ 0 | $ 0 | $ 0 | $ 194 | $ 509 | $ 500 |
| net earnings ($) | -$ 3,575 | -$ 2,075 | -$ 575 | $ 731 | $ 1,916 | $ 500 |
Conclusion
Fitness and health treatment is becoming a significant part of everyone’s daily lifestyle . Many people, both young and old have recognized the benefits of fitness and better health that lead to quality health outcomes. The quick and stressful working environments, unhealthy eating habits and increased competition are some of the factors that are leading to poor health outcomes. For these reasons the gym and fitness business is a booming endeavor, as more people are trying to boost their fitness, feel good about themselves, and boost their confidence levels and to reduce stress levels and mental fatigue. Gymwise Fitness Facility is trying to provide all the necessary facilities that are able to cater for all the customer needs effectively, all under one roof. Fitness Facility Strategic Marketing Plan
References APA
Dufour, F. (2018). The adult obesity epidemic in the United States: A comprehensive approach including the financial costs, the societal costs, the solutions, and the future of food and weight gain. Available at SSRN 3302220.
Fried, Gil, and Ceyda Mumcu,(2017) editors. A Data-Driven Approach to Sport Business and Management. Sport Analytics
Swaid, S. A., Khanfar, N. M., & Loudon, D. (2019, July). Developing a competitive marketing strategy: the case of a complete fitness gym. In Competition Forum (Vol. 17, No. 2, pp. 258-266). American Society for Competitiveness.
Trugman, Gary R.(2017) Understanding Business Valuation: A Practical Guide to Valuing Small to Medium Sized Businesses. 5th ed., AICPA,.
Us Bureau of Labor Statistics. (2022). Consumer price index summary. U.S. Bureau of Labor Statistics. https://www.bls.gov/news.release/cpi.nr0.htm
