Business and Marketing Plan for Fitness for Others

Answer

Table of Contents

Executive Summary  4

1.0          BUSINESS IDEA   5

1.1          Problem and Solution   5

1.2          Mission / Vision   6

1.3          Business Model 6

1.4          Strategic Partners  6

1.5          High Level Timeline   7

2.0          PRODUCTS AND SERVICES  7

2.1          Product Development  7

2.2          Manufacturing & Sourcing  8

2.3          Operating Model Distribution   8

2.4          Pricing  9

3.0          ADMINISTRATIVE STRUCTURE  10

3.1          Location   10

3.2          Legal Formation   10

3.3          Intellectual Property  11

3.4          Management  11

3.5          Personnel 12

4.0          MARKET RESEARCH   12

4.1          Market Research & Analysis  12

4.1.1      PESTEL  12

1. Political Trends 12
2. Economic growth and stability 13
3. Sociocultural trends 15
4. Technological advancements 16
5. Legal and regulatory issues 17
6. Environmental Factors 18

4.2          Estimated Size of the Market  18

4.3          Income and Spending  19

4.4          Competition   21

5.0          PROJECT PLAN   26

5.1          Team and Methodology  26

5.2          Gantt, (PERT)  26

6.0          MARKETING   26

6.1          Goals & Objectives  26

6.1.1      Marketing Goal A   26

6.1.2      Objective A1  27

6.1.3      Objective A2  27

6.1.4      Objective A3  27

6.1.5      Marketing Goal B   27

6.1.6      Objective A1  27

6.1.7      Objective A2  27

6.2          Marketing Strategy  28

6.2.1      Primary target market  28

6.2.2      Secondary target market  29

6.2.3      Product strategy  31

6.2.4      Pricing strategy  32

6.2.5      Distribution/supply chain strategy  32

6.2.6      Integrated marketing communication strategy  33

6.3          SWOT  35

6.3.1      Strengths  35

6.3.2      Weaknesses  37

6.3.3      Opportunities  38

6.3.4      Threats  39

6.3.5      SWOT matrix. 40

6.4          Audience   40

6.5          Branding  41

6.6          Marketing Plan   41

6.6.1      Marketing goals and objectives  41

6.6.2      Current marketing strategy and performance   45

6.7          Sales Plan   47

6.8          Social Impact Plan   47

6.9          CRM    47

6.10        Customer Service   48

References  49

Executive Summary

This business and marketing plan details the key factors to consider when setting up and developing a business known as Fitness for Others. The business is a start-up headquartered in New York City. The idea is to provide dog training, grooming and sell of related merchandises to dog owners in the vast and busy city. Fitness for Others is a partnership composed of three entrepreneurs. It has a flat management structure to empower employees into providing creative solutions and quality customer service. A market research of the NYC shows that the city is highly potent since it has 600,000 dogs. It is the pet haven of the USA for having the highest number of pets per capita. An analysis of the market environment shows that the firm is likely to face intensive competition. However, strategies to enhance competitiveness have been proposed to boost its position and achieve sustainable competitive advantage.

Business and Marketing Plan for Fitness for Others

• BUSINESS IDEA
  • Problem and Solution

The increasingly busy urban lifestyle across professions such as banking, law, medicine, and IT industries among others, as well as the adverse weather changes attributed to global warming, have made it impossible for some people to properly tend to their pets.  As a result, there have emerged a need for a place where pets can be taken care of. There are two potential market segments in regard to this business idea. The first segment is pet owners who need a safe, comfortable place to exercise with their dogs; some of these owners are hesitant to walk their dogs outside due to traffic and other safety issues, while others do not enjoy walking their dogs when the weather is bad. This segment is mostly composed of the elderly people who no longer have the ability to take their dogs for long walks. These people love their dogs, but they are not physically capable of walking for long distances or walking outdoors in severe weather. The second segment is made up of busy professionals who value their time and would rather pay someone to provide grooming services than try to do their own grooming. These customers are willing to spend money to keep their dogs looking and feeling their best. The third segment consists of customers who travel frequently and need to board their dogs in a safe environment. The business idea therefore seeks fill in this market gap by ensuring that the dogs are taken care off, groomed, trained and exercised. Fitness for Others will meet the needs of these customers by providing supervised exercise sessions for dogs especially when the owners are busy and cannot directly be available or attend. In addition, Fitness for Others provides door-to-door service for the convenience of customers working long hours and lack the time to bring their dogs to the facility.

• Mission / Vision

The mission statement for Fitness for Others is to provide “a clean, safe, and welcoming environment for dogs to live a happy and healthy life.” The vision statement is to “achieve strategic growth across all areas ranging from customer relationship management, employee welfare, suppliers and stakeholder relationships”.

• Business Model

Fitness for Others operates based on the brick and mortar business model. This is a traditional business model where the manufacturers, wholesaler and retailers deal directly with customers through face to face interactions in a shop, office or store owned by the business. A modification adopted by Fitness for Others is that it offers door-to-door service for the convenience of customers who work long hours and do not have enough time to bring their dogs to the facility.

• Strategic Partners

The most strategic partners are the local suppliers of unique and custom-made products. As much as Fitness for Others has a small supply network, it looks forward to attracting and retaining the most reliable suppliers producing high quality and on-demand products. To achieve this goal, the business will partner with local businesses to expand its product line. Owners and staff members will need to focus on maintaining excellent relationships with these suppliers, as such partnerships can help the company increase its revenue and do a better job meeting customer need. Building relationships with local business owners can help Fitness for Others outperform its rivals by creating opportunities to sell handmade items that are different from the mass-produced merchandise offered by most competitors. The second group of strategic partners are the financiers. Currently, the business owners have depleted their capital as a result, Fitness for Others has limited financial resources, as the founders spent much of their start-up capital setting up the facility and hiring the firm’s first few employees. To properly leverage the finances of the start-up organization, there is need to partner with venture capitalists to finance growth of the business.

Fitness for Others can capitalize on its status as a locally owned business by developing mutually beneficial relationships with the owners of non-competing businesses, asking customers for referrals or testimonials, and establishing a strong presence in the community. When the company is ready to open a new facility in the region, it will have strong local relationships in place to make it easier to staff the new facility, sign up new customers, and ensure the new facility is as successful as possible.

• High Level Timeline

• PRODUCTS AND SERVICES
  • Product Development

Staff members have worked tirelessly to develop a product mix that includes a wide range of products and services designed to meet the needs of consumers in three key segments. Service offerings include group fitness classes and one-on-one sessions with one of the company’s experienced trainers. Fitness for Others provides grooming and obedience-training services for puppies and adult dogs. The merchandise section has an area displaying; collars, sprays used to relieve anxiety, dog toys, leashes, grooming tools, and equipment used to collect and dispose of dog waste in a hygienic manner.

• Manufacturing & Sourcing

Fitness and Others does not engage in manufacturing activities. However, it intends to partner with local suppliers to provide unique and differentiated products that will complement its current limited product lines. In addition to the services provided by the Fitness for Others, retails leashes, collars, sprays used to relieve anxiety, dog toys, grooming tools, and items used to collect and dispose of dog waste.

• Operating Model Distribution

Fitness for Others has only one brick-and-mortar location and no e-commerce presence. This model of distribution is convenient for local customers yet, it curtails the ability of the company to expand its customer base and increase revenue. Fitness for Others could improve its distribution network by either opening additional physical locations or introducing an online presence. Alternatively, it could partner with online retailers such as Amazon or eBay to become facilitate access to its products. The high cost of opening another brick-and-mortar facility makes focusing on an e-commerce site a more viable option. Establishing an e-commerce site would give Fitness for Others the opportunity to sell products to customers all over the United States and abroad. Additionally, Fitness for Others would be able to contract with freelance consultants instead of hiring additional full-time employees; this would reduce the firm’s payroll expenses and eliminate the need to hire additional supervisory staff. Since Fitness for Others only has one brick-and-mortar location in New York City, we are targeting customers in Manhattan and the outer boroughs.

• Pricing

 Fitness for Others will use the premium pricing strategy rather than penetration strategy, no-frills pricing, or the skimming strategy. Charging a premium price can help Fitness for Others communicate the message that PetFit is a premium brand that offers several advantages over low-cost brands. By using the premium pricing strategy, Fitness for Others will be able to differentiate itself from no-frills brands that do not contain high-quality ingredients; however, consumers will not view these prices as unreasonably high, as they will be comparable to the prices charged by Blue Buffalo, Nutro, and other established brands. The premium pricing strategy is linked to the company’s desire to differentiate itself from competitors by appealing to consumers who are interested in purchasing premium products for their dogs; the high prices will help communicate the message that the PetFit brand is made from better ingredients than cheaper brands that are made with fillers and other inexpensive ingredients. 

Although PetFit items will have premium prices, the marketing team does plan to offer occasional discounts and incentives to encourage customers to stock up. For example, Fitness for Others will run a promotion that rewards customers who buy 10 bags of dog food at a retail price of at least $19.99 per bag. Once customers meet the purchase requirement, they will be instructed to send their purchase receipts to Fitness for Others headquarters; Fitness for Others will verify that each customer has met the purchase requirement and issue a voucher for $10.00 off each customer’s next purchase of a PetFit product. The voucher will have no minimum purchase requirement, so customers will be able to use it to get a discount off a high-priced product or to get a $10.00 product for free. The marketing team also plans to place $3.00 off coupons inside each large bag of dog food with the PetFit label; customers who make a purchase will be able to use the coupon the next time they need to buy dog food.

• ADMINISTRATIVE STRUCTURE
  • Location

Fitness for Others only has one brick-and-mortar location in New York City, we are targeting customers in Manhattan and the outer boroughs. It looks forward to expanding beyond its current location using e-commerce and brick and mortar stores.  The firm’s status as a local business with local connections should be paired with the opportunity to expand the business throughout New York City and into the Tri-State Area (New York, New Jersey, and Pennsylvania). Many customers are “going local” rather than patronizing large corporations that do not invest much in local communities. As a result, the firm’s status as a locally owned business is an advantage in the modern marketplace.

• Legal Formation

The current legal formation for Fitness for Others is a partnership. Steingold and Steingold (2019) argues that this is the best alternative for a start-up business. It is more favorable to sole proprietorship and limited liability company (LLC) because of the flexibility of licensing and meeting other legal demands. There are also situations where business owners could consider forming cooperatives. In the case of Fitness for Others, the partnership formation is the best because it is a legally acknowledged relationship between business people. Partnerships are protected under business law in the USA. Partnerships as in the case of Fitness for Others are founded on agreements between three individuals who came together to start and finance the business as co-owners. Just like other partnerships, the level of involvement of the different partners is varied (Steingold & Steingold 2019). For Fitness for Others, the partners are actively involved in leadership roles, and management of different sections of the organization such as human resource management. Given that the partners are in a general type of partnership, their conduct and involvement in the different activities is guided and bound by the partnership agreement.

• Intellectual Property

The firm does not have patents and intellectual properties at the moment. However, as it intensifies its operations and grows, it will certainly own technologies and innovations that might require intellectual property rights to safeguard its innovations. Bettig (2018) emphasizes the need for intellectual property as it contributes towards competitive advantages for any organization. This is a welcome idea for Fitness for Others as it adopts the differentiation strategy. Intellectual property contributes towards differentiation of products and services.

• Management

The management of Fitness for Others will be coordinated among the three partners. The appropriate approach to management at Fitness for Others is through the use of a flat organizational structure. According to Burns (2016) a flat structure eliminates excess layers of management, giving employees more responsibility for the day-to-day operations of the firm; a flat organizational structure also promotes better communication and eliminates some of the bottlenecks that occur in organizations with hierarchical structures in which decisions must go through many layers of management before they are implemented. In recognition of the increased responsibility held by employees in this type of organization, all staff members are eligible to earn bonuses and participate in the company’s stock-ownership plan.

• Personnel

Currently, Fitness for Others is a small local business with few employees, which makes it easier to establish an organizational culture; however, as the firm grows, it will become difficult to control how the culture spreads across the organization. As a result, customer relationship management is our primary focus, along with increasing efficiency and standardizing our service offerings so that the management team can develop a comprehensive training program for all employees. In the future when the business introduces e-commerce, it will need to make sure it has employees or independent contractors with the necessary programming and design skills; otherwise, the new site will not have the functionality needed to meet customers’ needs and contribute to the company’s bottom line.

• MARKET RESEARCH
  • Market Research & Analysis

PESTEL

1. Political Trends

Sociocultural changes, namely the view that pets are members of the family, have triggered changes in the political landscape when it comes to dogs and other domesticated animals. Several bills and resolutions have been introduced at the federal level to prioritize the safety of companion animals and ensure that humans and pets live in harmony. New Jersey representative Donald Norcross introduced House Resolution 34 on January 9, 2019 The resolution supports the establishment of National Animal Rescue Day, and it aims to protect domestic animals by educating people on the importance of spaying and neutering, raising awareness of the importance of animal adoption versus buying from breeders, and encourage people to adopt animals rather than shopping for them (GovTrack, 2019). The resolution presents a valuable opportunity for Fitness for Others to partner with local rescue organizations as part of its marketing strategy.

On February 6, 2019, Representative Brian Fitzpatrick (R-PA) introduced H.R. 1002: WOOF! Act. The aim of the WOOF! Act is to promote animal welfare and improve the living conditions of dogs bred by commercial breeders (United States House of Representatives, 2019). It would accomplish this aim by making it impossible for breeders who have had their licenses revoked or suspended to qualify for new licenses, which would prevent them from continuing to operate legitimate breeding facilities. Although the WOOF! Act would not directly affect family pets, breeders who cannot obtain new licenses are likely to sell or give away their animals, increasing the number of pets in local communities. As a result, Fitness for Others would have more opportunities to market its services to potential clients.

1. Economic growth and stability

Fitness for Others is headquartered in New York City, which has a strong economic outlook for 2019 and beyond. In the first quarter of 2018, the New York City Comptroller reported GDP growth of 2.7% for the city; in the first quarter of 2019, GDP growth for New York City increased to 3% (New York City Comptroller, 2019). Jobs growth declined slightly from Q1 2018 to Q1 2019, but the unemployment rate and inflation rate declined during the same period, falling to 1.5% and 4.2%, respectively (New York City Comptroller). The city’s GDP growth can be attributed to strong wage growth and the strength of the labor market overall; performance in the banking industry also helped to push GDP growth to 3% for the first quarter of 2019 (New York City Comptroller, 2019). Several other industries are also growing steadily, increasing consumer spending and improving the city’s economic profile; for example, job growth in New York City’s construction industry was more than double the job growth in the U.S. construction industry as a w hole (New York City Comptroller, 2019). 

The local economy has also benefited from a significant increase in venture capital investment; in the first quarter of 2019, venture capitalists invested $4.5 billion in the NY metropolitan area, an increase from $2.1 billion in the fourth quarter of 2018 (New York City Comptroller). With this level of investment, firms in the New York City metropolitan area actually received more venture capital in the first quarter of 2019 than firms in Silicon Valley. Although real-estate sales have declined in Manhattan, Queens, and Brooklyn, monthly rents have increased across the board, creating a strong market for residential and commercial landlords (New York City Comptroller). Based on an analysis of economic data, the city’s trend of economic expansion should continue, as the current business condition index stands at 63.8% for the first quarter of 2019; an index higher than 50% indicates further expansion is likely (New York City Comptroller, 2019). 

Salary data compiled by the New York State Department of Labor is promising, as it shows that customers in the firm’s target audience tend to earn salaries well above the New York City median individual income of $50,711 (WNYC, 2019). For example, management occupations have an average annual wage of $155,900 and a median hourly wage of $64.36, while business and financial operations occupations—such as human resource specialists and purchasing agents—have an average annual wage of $94,740 and a median hourly wage of $38.14 as of 2018 (Bureau of Labor Statistics, 2018). One of the segments targeted by Fitness for others is white-collar professionals engaged in these occupations; based on this salary data, customers in the target market are likely to have enough disposable income to make regular visits to Fitness for Others and purchase products for their dogs.

1. Sociocultural trends

Several sociocultural trends are driving changes in the pet industry, including a demand for healthier pet foods, a greater demand for grooming and other pet-care services, the humanization of pets, a demand for products with premium ingredients, and increased demand for products that have proven health benefits. The demand for healthier pet foods has increased, in part, because of the rise in product customization. Every animal has a unique health profile based on its activity level, health status, and taste preferences, giving companies in the pet industry many opportunities to develop new products for their target audiences. Some firms are even offering personalized products made with all-natural ingredients; for example, Purina creates custom food blends based on information provided via customer surveys (Carrozza, 2019). Along with the demand for healthier products comes a demand for increased transparency; owners want to know what ingredients are in each product, where those ingredients come from, and how the foods are made (Carrozza, 2019). As a result, some manufacturers have changed their labeling practices to focus on sourcing and sustainability. 

Humanization is a growing trend in which pet owners want to give their pets human experiences rather than treating them as mere animals (Jander, 2019). In addition to throwing birthday parties for their pets, many pet owners are now demanding high-quality foods, seeking out expensive medical services, and looking for other ways to improve their pets’ lives. When these owners buy food and treats, they look for products made with high-quality ingredients rather than cheap fillers. Humanization of pets, particularly cats and dogs, has also led to increased demand for food and treats that are labeled with the word’s “gourmet” or “banquet” (Jander, 2019). Pet owners who have embraced the humanization of pets also want to buy products made with familiar ingredients; in a way, eating foods made with the same ingredients allows these owners to share an experience with their pets. 

1. Technological advancements

E-commerce has completely changed the way the pet industry operates, with more pet-related businesses relying on e-commerce tools to generate revenue and increase brand awareness. Fitness for Others plans to set up an e-commerce site to distribute its private-label foods and treats, so this change is highly relevant to the firm’s business model. According to the American Pet Products Association (2018), e-commerce has “disrupted” the pet industry by driving changes in the way companies distribute their products and customers shop for and receive pet-related products. The rise of e-commerce has also created new roles within the pet industry for website designers, database managers, computer programmers, and other technical professionals. 

Technological advancements have also created a need for companies in the pet industry to create high-tech products that help owners keep their pets happy and healthy. As of 2018, iFetch, Petcube Play, and iCalm speakers were among the most popular tech products made specifically for pet owners (Brown, 2018). The iFetch device launches balls automatically, making it easier for tired owners to play fetch with their dogs, while the Petcube Play allows owners to monitor their pets with a Wi-Fi camera. To help dogs calm down, iCalm speakers play anti-stress music selected specifically to help reduce anxiety in canine companions (Brown, 2018). The popularity of these products has two important implications for Fitness for others. First, if the company intends to develop its own line of dog toys, it will be necessary to hire product developers and other professionals with experience designing high-tech products. Second, developing a house brand of dog toys has the potential to produce a substantial revenue increase for Fitness for Others, as consumers are willing to pay $100 or more for a high-tech pet product versus just a few dollars for a chew toy or other traditional product.

1. Legal and regulatory issues

New York City and New York State have several laws that are relevant to Fitness for Others and could affect the way the business operates. New York City prohibits shelters and other animal-welfare organizations from releasing cats and dogs for adoption unless each animal has been spayed or neutered (New York State Bar Association, n.d.). Exceptions can be made if the animal is registered as a champion, if the animal has a recent show ring record, or if a veterinarian certifies that performing the spay or neuter procedure would be harmful to the animal’s health (New York State Bar Association, n.d.). Due to this law, many of the animals that come to Fitness for Others will be fixed; however, staff members must verify each animal’s status and take steps to separate unfixed animals from fixed animals. If staff members do not take this crucial step, Fitness for Others could face public criticism or even lawsuits if a customer’s dog becomes pregnant due to a staff member’s failure to separate dogs that have been spayed and neutered from dogs that have not been fixed.

Several state laws are likely to affect operations at Fitness for Others. Agriculture and Markets Law §350 addresses the penalties for animal neglect, animal cruelty, and animal abandonment. Under the law, both affirmative acts and omissions may qualify as animal abuse; an affirmative act is a direct action that inflicts “physical pain, suffering, or death,” while an omission is a failure to act in the animal’s best interests (Wolf, 2003). For example, hitting a dog would qualify as an affirmative act, and failing to feed a dog for a week would qualify as an omission. Failing to provide medical care to an animal could also be construed as a form of animal cruelty, depending on the animal’s condition and the severity of its symptoms (Wolf, 2003). The staff at Fitness for Others must keep these laws in mind as they work with customers’ dogs. In addition to providing adequate amounts of food and water, staff members must be careful not to use any training or grooming techniques that could cause physical pain or suffering; furthermore, Fitness for Others needs to make it easy for staff members to report their concerns if they observe anyone treating a dog in a way that could be construed as cruel or neglectful.

1. Environmental Factors

The changing weather conditions make it difficult to exercise outdoors; exercising at an indoor facility gives customers and their dogs the chance to exercise regularly without having to brave excessive heat, blizzards, rainstorms, and cold spells.

• Estimated Size of the Market

According to dog census for the New York City, there are more than 600,000 dogs. The city has been classified as a pet haven since it has more than 1 million pets. The distribution of dogs per capita in NYC is as shown in figure below.

Figure 1: Dogs per Capita in NYC (Metcalfe, 2017)

• Income and Spending

New York City, which has a strong economic outlook for 2019 and beyond. In the first quarter of 2018, the New York City Comptroller reported GDP growth of 2.7% for the city; in the first quarter of 2019, GDP growth for New York City increased to 3% (New York City Comptroller, 2019). Jobs growth declined slightly from Q1 2018 to Q1 2019, but the unemployment rate and inflation rate declined during the same period, falling to 1.5% and 4.2%, respectively (New York City Comptroller). The city’s GDP growth can be attributed to strong wage growth and the strength of the labor market overall; performance in the banking industry also helped to push GDP growth to 3% for the first quarter of 2019 (New York City Comptroller, 2019). Several other industries are also growing steadily, increasing consumer spending and improving the city’s economic profile; for example, job growth in New York City’s construction industry was more than double the job growth in the U.S. construction industry as a whole (New York City Comptroller, 2019). Additional figures on pet industry expenditures is summarized in

figure below.

Figure 2: Summary of Pet Industry Expenditures, and Sales (APPA, 2020)

According to data gathered by the American Pet Products Association, pet owners are expected to spend more than $75 billion on their pets in 2019, an increase of nearly 4% from the 2018 total of $72.56 billion (American Pet Products Association, 2019). Pet industry expenditures have increased every year since 1994, indicating that the industry is growing rapidly (American Pet Products Association, 2019). Although food makes up more than $30 billion of pet-related expenditures, consumers spent more than $22 billion on pet supplies and pet-related services in 2018, which gives Fitness for Others plenty of opportunities to attract new customers and make sales. Because its direct competitors are private companies that are not required to disclose their annual revenues, it is difficult to determine how well Fitness for Others is performing compared to other companies in the industry. Furthermore, the company is relatively new, so the marketing team does not have enough data available to compare the firm’s performance with that of local competitors. Revenue is expected to be low in the beginning, but as the marketing team implements its updated promotional strategy, financial performance is likely to improve.

• Competition

Fitness for Others currently has one direct competitor in New York City: Running Paws by AKC, which has six locations in Manhattan. Running Paws offers buddy fitness sessions, exclusive fitness sessions, and fast-pace walks for dogs (Running Paws by AKC, 2019). During a buddy session, Running Paws pairs two dogs with similar temperaments and physical abilities; the goal of the fitness session is to meet each dog’s activity needs. For clients interested in buddy fitness sessions, Running Paws conducts an initial evaluation to determine the dog’s current level of fitness. During exclusive fitness sessions, a dog is paired with one of the athletes employed by Running Paws by AKC (Running Paws by AKC, 2019). Exclusive fitness sessions are marketed to owners with dogs who have special needs, such as behavior issues or physical impairments, as well as dogs who cannot be matched with a buddy for a regular buddy session. Fast-pace walks are designed for dogs who need approximately 30 to 45 minutes of exercise at a time; these walks are conducted outdoors, and they are available throughout the city.

In addition to the three fitness-related services described above, Running Paws by AKC offers a wide range of services for dogs and their owners. These services include dog daycare, 24-hour boarding, training, and grooming (Running Paws by AKC, 2019). Additionally, Running Paws employs a team of dog walkers who have been specially trained to safely navigate the city streets. Dogs are matched with walkers based on their current fitness level and temperament, as well as the owner’s preferred walking schedule. 

With these services, Running Paws by AKC serves three key segments of the market: busy professionals who want to make sure their dogs get enough exercise even when they are not available to take them on walks; puppy owners who want to teach their puppies how to socialize with other dogs from a young age; and owners of adult dogs who recognize that training is essential for overcoming behavioral issues such as food aggression, separating anxiety, barking, and whining.

One of the key strengths of Running Paws by AKC is that it is operated by the American Kennel Club, one of the most prestigious dog-related organizations in the United States. The American Kennel Club employs some of the world’s leading experts in canine health and behavior, giving Running Paws by AKC a competitive advantage in the marketplace. Running Paws also offers a diverse portfolio of services, allowing the company to market to multiple audience segments. Should demand for one service decline, Running Paws by AKC would have an opportunity to replace the lost revenue by selling more of its other services. Although the company’s business model is strong, Running Paws does have some weaknesses that could impair its ability to grow its revenues and continue attracting new customers. Despite its status as a prestigious organization with a long history of developing breed standards and showcasing the attributes of each dog breed, those opposed to dog breeding believe that the American Kennel Club promotes breeding practices that are not in the best interest of the dogs. For example, the American Kennel Club has been accused of failing to inspect breeding facilities and lobbying against bills designed to protect the rights of animals (Pilon & Craig, 2013). This stigma could be detrimental to Running Paws by AKC as it attempts to market its services to customers who are aware of the concerns and do not want to patronize a facility operated by or associated with the American Kennel Club. 

Fido Fitness Club in Woodmere, New York, is an indirect competitor for Fitness for Others. Although Fido Fitness Club does not offer fitness classes, the 4,000-square-foot facility offers plenty of off-leash space for dogs to exercise and socialize with each other (Fido Fitness Club, 2019). Fido Fitness Club has an advantage over competing businesses because it has a large, climate-controlled facility, which is likely to appeal to consumers who want to exercise their dogs without having to go outdoors in extreme temperatures or inclement weather. In addition to the off-leash dog park, Fido Fitness Club offers cageless boarding, dog daycare, and dog grooming services (Fido Fitness Club, 2019). 

With a wide range of services, Fido Fitness Club serves three key segments of the target market. The first segment is pet owners who need a safe, comfortable place to exercise with their dogs; some of these owners are hesitant to walk their dogs outside due to traffic and other safety issues, while others do not enjoy walking their dogs when the weather is bad. The second segment is made up of busy professionals who value their time and would rather pay someone to provide grooming services than try to do their own grooming. These customers are willing to spend money to keep their dogs looking and feeling their best. The third segment consists of customers who travel frequently and need to board their dogs in a safe environment.

Fido Fitness Club has two key strengths that make it a competitive player in the marketplace. First, the club makes it easy for customers to take advantage of its services; for customers who do not have their own vehicles or live close to public transportation, Fido Fitness Club offers a service called “fetching Fido.” For customers who pay for this service, Fido Fitness Club will pick up the dog in the morning and drop it off at the end of the day, eliminating the need for customers to commute to the facility. The price of this service depends on the pick-up and drop-off location, with fees ranging from $10 each way for customers in Woodmere and surrounding areas to $25 each way for customers who live beyond Rockville Centre or West of Inwood (Fido Fitness Club, 2019). The transportation service adds value for the customer, making Fido Fitness Club a more attractive option for consumers in search of a dog fitness and boarding facility.

Another strength of Fido Fitness Club is that it has a strong reputation in the community, with many positive reviews on Yelp and other review sites. Several reviews specifically mention the convenience of using the indoor dog park when it is not possible to exercise outdoors due to severe weather conditions (Yelp, 2019). Customers have also commented on the cleanliness of the facility and the amount of space available for dogs and their owners. Fido Fitness Club can incorporate these positive reviews into their marketing strategy and use them to attract new customers to the club.

One of the main weaknesses of the Fido Fitness Club business model is that the club does not offer formal exercise classes for dogs and their owners. Customers use the indoor dog park for walks and other forms of exercise, but each customer is responsible for guiding his or her dog through an exercise session. Employees are on hand to answer questions, but Fido Fitness Club does not have group instructors available to organize exercise sessions, assess each dog’s individual fitness level, or make recommendations regarding a dog’s exercise needs. The fact that the club only has one location is also a weakness, especially when comparing Fido Fitness Club with Running Paws by AKC, which has six locations. If customers move out of Woodmere, they may not want to travel there with their dogs every day; as a result, they are likely to choose a new dog exercise facility rather than continuing to patronize Fido Fitness Club.

PetSmart does not currently offer dog exercise classes, but the company could become a competitor to Fitness for Others as it continues to expand. The company’s founders developed PetSmart as superstore that would use e-commerce to reduce the costs of maintaining infrastructure and delivering the right products to the right customers at the right time and place (PetSmart, 2019). When it first opened, PetSmart offered a wide variety of pet food, toys, habitats, and other pet-related items in a warehouse-like environment; the company quickly expanded by offering pet grooming and training services. Since then, PetSmart has continued to expand, adding PetsHotel to its portfolio of brands. PetsHotel offers temperature-controlled boarding environments for cats and dogs, giving customers the peace of mind of knowing that their pets are safe and comfortable when they cannot be together. Dog boarding includes at least two daily walks, complimentary meals, and medication dispensing, while cat boarding includes individual playtime with staff members, a separate relief area with litter boxes, complimentary meals, and medication dispensing (PetsHotel, 2019). Cats and dogs are housed in separate areas, and each area has its own ventilation system to prevent cross-contamination. PetSmart has also added Banfield pet hospitals to many of its stores, giving pet owners convenient access to preventive veterinary care as well as the acute care needed when an animal is injured or displays signs of illness (Banfield Pet Hospital, 2019). Adding an exercise facility to each PetSmart location would be a natural extension of the brand, and PetSmart would be able to take advantage of its existing infrastructure and customer base to generate revenue quickly.

In the future, fitness facilities and dog trainers could partner together to create new dog exercise facilities or offer dog exercise programs. Trainers and fitness experts have already started working together due to “the guilt many New Yorkers feel for leaving their pets at home while they go off to the gym” (Deliso, 2016). As a result, some trainers currently offer “doga” (dog yoga) classes for dogs and their owners; offering additional fitness classes would allow these experts to expand their service offerings and grow their brands, but it would also put them in direct competition with Fitness for Others.

• PROJECT PLAN
  • Team and Methodology

The project team is led by the three founders of Fitness for Others. The work breakdown structure for the project is summarized in the figure below.

• Gantt, (PERT)

• MARKETING
  • Goals & Objectives

Marketing Goal A

Increase brand awareness to make Fitness for Others the top choice for customers in the target audience.

Objective A1

The marketing team will publish 10 blog posts by September 15, 2019 to educate consumers on the products and services offered by Fitness for Others.

Objective A2

The owners of Fitness for Others will sponsor one community event by August 31, 2019, to expose attendees to the Fitness for Others brand.

Objective A3

The marketing team will publish one Instagram post per day for 30 days to increase awareness of the services provided by Fitness for Others and give prospective customers a glimpse of what they can expect if they enroll their dogs in any of the classes provided by the firm.

Marketing Goal B

Acquire new customers for on-site classes.

Objective A1

The sales department will generate 100 leads within 30 days and convert at least 10% of these leads to customer status.

Objective A2

The marketing team will publish one discount offer in a local magazine or newspaper by September 15, 2019, to attract new customers to Fitness for Others.

• Marketing Strategy

Primary target market

The primary target market for Fitness for Others is young professionals between the ages of 25 and 40 who have white-collar jobs that keep them busy on weekdays. Members of this target audience live primarily in Manhattan, but they may also live in one of the four other boroughs of New York City. What drives these potential customers to seek out dog-related products and services is a deep desire to treat their dogs as members of their families. People in this target audience tend to treat their dogs like humans; they may take their dogs to “puppy parties” or invite their friends over to celebrate their dogs’ birthdays in style. These potential customers also have strong knowledge of what it takes to keep a dog happy and healthy; they already know that regular exercise and socialization are important for a dog’s health and happiness, so Fitness for Others does not need to educate them on these aspects of dog ownership. Their basic wants and needs include nutritious food for their pets, a way to engage their dogs in regular physical activity, and a convenient place for their pets to exercise on evenings and weekends. 

Many of these potential customers are convinced of the benefits of premiumization and personalization; thus, they are willing to spend more money on products that are nutritious and have some type of health benefit. In fact, these potential customers are more likely to choose a high-priced option than a low-priced option if the benefits of the high-priced option are communicated effectively. People in this target audience typically earn at least $75,000, giving them the disposable income necessary to afford premium pet products and services. Consumption characteristics depend on the product or service in question. For pet food and treats, consumers in this segment are likely to use the product daily, which means they are likely to buy on a weekly or monthly basis depending on how much room they have to store each product. In terms of dog fitness classes and other dog-related services, consumption depends on factors such as work schedules and vacation plans; for example, a consumer with limited vacation time may only need to board his or her dog once or twice per year, while a customer who travels frequently may use a boarding service on a monthly basis. In terms of disposal, recycling is important to consumers in this segment of the market; thus, Fitness for Others should package its foods, toys, and treats in recyclable packaging. If recycling is not possible, people in this segment prefer to donate gently used items rather than disposing of them; Fitness for Others can attract more of these customers by adding donation boxes to its brick-and-mortar facility. Adding donation boxes would make it easy for customers to drop off used items, and it would create additional opportunities for staff members to interact with customers and convince them of the value of the products and services offered by the facility.

Secondary target market

The secondary target market for Fitness for Others consists of elderly men and women who are over the age of 55. Most of the consumers in this segment are retired and have enough money in their retirement accounts to live comfortably even in an expensive city such as New York. Those who still work full-time are likely to be employed by banks, city or state government agencies, institutions of higher learning, and prestigious museums such as the Guggenheim or the Metropolitan Museum of Art. Like consumers in the primary target market, the elderly people in the secondary target market have adopted the practice of treating their pets like family members. These customers are likely to have adult children who may not visit them often, making their pets an integral part of their lives. While members of the primary target market are likely to use Fitness for Others because they are too busy to ensure their dogs get regular physical activity, the elderly consumers in the secondary target market are likely to use the facility because they have some physical limitations that make it difficult to walk their dogs outdoors. Some of these consumers are likely to have arthritis, back problems, or balance problems that make it difficult to walk long distances or cross busy streets while trying to keep their pets safe.

Like the young, white-collar professionals in the firm’s primary target market, consumers in this segment are willing to spend money on premium products; they also tend to buy personalized products and products that promise to help their pets live longer, happier lives. Some of the consumers in this segment use their dogs as service animals, so any product that can help a service dog stay healthy and carry out its duties is a product that is likely to appeal to this target audience. For this segment, purchase habits depend on several key factors: the age and fitness level of the dog, how much room is available to store dog food and other items, and whether the consumer is in good enough health to carry heavy bags of dog food and other pet-related products. An elderly consumer living in a small apartment is likely to shop for dog food and treats at least once per week, while a consumer with a large house may be able to shop every few weeks and store the excess items in a pantry or storage closet. Elderly consumers who struggle with balance problems, arthritis, and other medical conditions may shop several times per week to avoid having to carry heavy bags from stores to their homes. A small percentage of consumers in this segment will overcome this problem by shopping online, but a majority of people in the secondary target market prefer to shop at brick-and-mortar stores. For this audience, convenience is more important than the ability to recycle product packaging, so the staff at Fitness for Others should focus on making it as convenient as possible to purchase, store, and dispose of its products. 

Product strategy

All of the firm’s private-label products will be marketed under the brand PetFit; this name is short enough to fit on small packages, and it also communicates the company’s brand promise to consumers. Using PetFit as a brand name will help Fitness for Others communicate its mission of helping dogs stay as active as possible. The company logo will feature the brand name in a serif font to make it easy to read; a small paw print will appear t the left of the brand name. Dry food will be packaged in sturdy bags made from recyclable materials, while wet foods will be packaged in aluminum cans to seal in freshness and make it easy for customers to recycle the empty packaging. All toys, leashes, and other products will be packaged in frustration-free packaging that limits the amount of plastic the consumer must dispose of after making a purchase from Fitness for Others.

Major features of the dry foods, wet foods, and treats produced by Fitness for others include all-natural ingredients, whole meats instead of fillers as the first ingredient, and a balance of vitamins and minerals based on the recommendations of veterinary experts. The main benefit of these features is that using Fitness for Others foods and treats will help customers keep their dogs healthy. These products will also enable customers to meet their dogs’ nutritional needs without having to worry about harmful byproducts or fillers that have no nutritional value. Fitness for Others will differentiate its PetFit brand from other brands by appealing to the consumer’s desire to buy premium products. Rather than focusing on price, Fitness for Others will focus on pet nutrition and the quality of its ingredients on its packaging and in its marketing materials. If the owners of Fitness for Others decide to sell products made by other manufacturers, they will choose products that meet stringent quality requirements to ensure that consumers have the opportunity to buy complementary products that are similar to the ones in the PetFit product line. The emphasis on quality connects directly to the Fitness for Others mission of helping dogs live happier, healthier lives, and the focus on premium ingredients will also help the firm convince the primary and secondary target audiences that the PetFit line offers great value for the price.

Pricing strategy

Distribution/supply chain strategy

Fitness for Others will pursue a selective distribution strategy to ensure that PetFit products are available to as many customers as possible. Exclusive distribution might increase the perceived value of PetFit products, but it would also limit the number of opportunities Fitness for Others has to make sales. Intensive distribution is also an option, but this approach could hurt the brand’s reputation as a provider of premium products. Instead of establishing its own manufacturing facility, Fitness for Others will use a copacker to manufacture PetFit items; this approach will help Fitness for Others save a substantial amount of money on renting or buying a commercial building, purchasing or leasing manufacturing equipment, and hiring production workers to meet its manufacturing needs. The money saved by using a copacker can be used to build a robust e-commerce website or invest in marketing initiatives that are likely to increase brand awareness and help the company generate more revenue.

The selective distribution approach is a good match for the company’s product and pricing strategies because it will enable Fitness for Others to ensure that its products are only distributed by high-end retailers, which will help position PetFit items as premium products that cannot be found in discount stores such as Walmart and Dollar General. This is likely to increase the perceived value of PetFit products for people in the company’s primary and secondary target markets. Fitness for Others will use several distribution channels to ensure its products are available to consumers in its target audience. For example, Fitness for Others will sell its products to wholesalers that work with a variety of retailers; it will also sell directly to consumers via its new e-commerce website. 

To maximize time utility, Fitness for Others will work with wholesalers to ensure its products are available during periods of peak demand; for example, if Fitness for Others decides to release a line of dog costumes, the sales team will work to make sure each wholesaler receives a larger order in the two months leading up to Halloween. To maximize place utility, Fitness for Others will work with reputable wholesalers that have established relationships with major retailers such as PetSmart and PetCo. This approach will help ensure that the PetFit line of products is available in several locations that are convenient for customers to visit. Fitness for Others could increase the possession utility of some products by creating reusable packaging; for example, instead of selling dog food in bags, Fitness for Others could decide to package its foods in reusable bins. When the bins are empty, consumers can use them for storage.

Integrated marketing communication strategy

Rather than using a fragmented marketing strategy that does not give every customer the same experience, Fitness for Others will use an integrated marketing communications strategy to ensure that customers have the same brand experience regardless of whether they visit the Fitness for Others facility in person, visit the new e-commerce website, see a Fitness for Others advertisement, or encounter any of the firm’s other marketing materials. The firm’s integrated marketing communications plan includes traditional marketing channels such as television and print advertising, as well as “new” marketing channels such as Facebook and YouTube. The main objectives of the firm’s IMC strategy include increasing brand awareness, driving visitors to the Fitness for Others website, and increasing the number of prospects who convert to active customers. Although Fitness for Others has a limited amount of capital, it is imperative that the marketing team have the funds necessary to ensure that each channel is used effectively; thus, the IMC budget for the first year of operations is $147,500.

• SWOT

Strengths

Fitness for Others has several key strengths that enable the firm to outperform its competitors and do a better job meeting customers’ need. One of those strengths is the provision of door-to-door service for customers who cannot pick up or drop off their dogs due to time or transportation constraints. Many customers are busy professionals who want their dogs to be happy and healthy but do not have enough time to commute to Fitness for Others several times per week. Fitness for Others also serves elderly customers who may be unable to drive due to medical limitations. Providing door-to-door service ensures that these customers continue to use Fitness for Others rather than choosing a provider within walking distance of their homes. The door-to-door service also increases customer convenience, making it possible for Fitness for Others to provide more value for the customer. Few competitors offer this type of door-to-door service; thus, the service helps Fitness for Others stand out in a crowded marketplace. The door-to-door service can be used as a marketing tool to attract busy people to Fitness for Others and keep them coming back on a regular basis.

Another strength of Fitness for Others is that it is a local business with local connections. First Bank (2019) explains that many consumers are turning away from chains operated by large corporations and looking for ways to support local entrepreneurs. These consumers want to know that the money they spend is helping the local economy rather than helping a corporate CEO earn a large bonus. According to First Bank (2019), supporting local businesses has a positive impact on local economies, as $68 of every $100 spent at a locally owned business goes back to the community; in contrast, only $43 of every $100 spent at a big-box store is returned to the local community. Local businesses also support their communities by paying income and payroll taxes, creating jobs for neighborhood residents, and supporting community initiatives (First Bank, 2019). Its status as a locally owned business gives Fitness for Others an advantage over large chains that do not have the same level of focus on customer satisfaction. Fitness for Others can use this strength to help customers feel that they are doing something good for the community by patronizing a local business rather than spending money at a corporate chain. The firm can also cement its status as an important part of the community by sponsoring local events and contributing to charitable causes that are important to local presence, which will enable Fitness for Others to increase brand awareness and generate positive publicity.

Fitness for Others also benefits from having experienced dog trainers on staff. Some of the larger chains, such as PetSmart, have their own accreditation programs for dog trainers; however, the proprietary nature of these training programs makes it difficult to determine if graduates are truly qualified to work with dogs and their owners. Furthermore, trainers accredited by retail outlets such as PetSmart and PetCo are typically trained to follow corporate policies and procedures, which may or may not be the same as the best practices adopted by industry experts. As a result, some consumers are hesitant to purchase training services from big-box chains. Fitness for Others employs trainers that have industry-standard certifications, which gives the company a competitive edge over chains that hire inexperienced trainers or employ trainers who have only been trained to use a single set of training techniques. This strength enables Fitness for Others to meet the customer’s demand for high-quality training services.

Finally, Fitness for Others benefits from its customer-centric focus, which makes it easier to increase brand awareness, generate positive publicity, and persuade customers to continue patronizing the business. This gives Fitness for Others an edge over competitors that are more interested in maximizing revenue at the expense of customer relationships. The focus on customer relationships also enables Fitness for Others to prevent its churn rate from getting too high, which can reduce marketing costs. Focusing on customer relationships allows Fitness for Others to meet each customer’s need to be treated fairly and access a wide range of reasonably priced services; it also makes it easier to help customers keep their dogs happy and healthy, which is exactly what the founders set out to do when they opened the facility.

Weaknesses

Despite the strengths outlined above, Fitness for Others does have some internal weaknesses that could hurt its ability to compete in a crowded marketplace. One of the most significant weaknesses is a lack of capital. The company’s founders spent much of their own funds to create the facility and open it to customers; as a result, Fitness for Others currently has a limited amount of money available for expansion. This lack of capital could make it difficult for Fitness for Others to take advantage of time-sensitive opportunities; for example, if demand increases for a new product, Fitness for Others may not be able to beat its competitors to market because it does not have the funds to pay for product development, testing, and initial manufacturing. A lack of brand awareness is also a significant weakness for Fitness for Others, as not many people in the company’s service area are aware of everything available to pets and their owners. If Fitness for Others does not strengthen its brand, it will be difficult—if not impossible—to take market share away from key competitors in the industry.

The lack of a robust e-commerce website and the brick-and-mortar location’s poor layout are also weaknesses that Fitness for Others must address if it wants to remain competitive. Without an e-commerce site, Fitness for Others is not likely to expand, as the company does not have enough capital to build new facilities in other locations throughout the Tri-State Area. An e-commerce website would expand the firm’s reach and create a new distribution channel for the company’s private-label dog foods, dog toys, and dog treats. The poor store layout makes it difficult for customers to find what they need, and it may even prevent customers from making impulse purchases because there is not enough room to move around and really examine the merchandise. Improving the layout of the store would increase the dollar value of the average purchase, resulting in increased revenue for Fitness for Others.

Opportunities

Fitness for Others has several opportunities to expand its business by offering additional services. Offering dog yoga and group exercise classes would help the company cater to the desire for pet owners to share experiences with their dogs; it would also help Fitness for Others achieve its mission of helping dogs live happier, healthier lives, as it would create more opportunities for dogs to engage in physical activity. Offering boarding services would also help the company generate more revenue, and it would help Fitness for Others meet the increased demand for pet services. Local or regional expansion via the opening of additional brick-and-mortar facilities is a potential opportunity, but Fitness for Others does not currently have the capital necessary to rent or construct new facilities. Thus, the firm should focus on other opportunities first and use any profits for its future expansion efforts. Local/regional expansion is a long-term opportunity that could take years to complete, but the opportunity to offer dog yoga and group fitness classes is a short-term opportunity that should be taken advantage of within the next six months. Otherwise, industry trends could change, reducing the demand for this type of service.

Threats

The biggest threat to Fitness for Others is that well-funded competitors will enter the market and outperform the company simply because they have more financial resources. PetSmart already offers boarding and grooming services, and it stands to reason that the corporation’s future expansion could include the addition of dog exercise classes and other fitness-related services, putting Fitness for Others in direct competition with a corporate chain that has plenty of resources. The increased use of e-commerce is also a concern, as Fitness for Others currently has no e-commerce site. By the time the new site is unveiled, customers may already be using other e-commerce platforms, and it would likely be difficult to persuade them to start ordering from Fitness for Others instead. Another potential threat is the existence of pricing issues. If Fitness for Others is to use the differentiation strategy rather than the cost leadership strategy, the company must offer unique products that have some kind of advantage over similar products sold by other companies. Thus, Fitness for Others will have to charge higher prices to justify the use of premium ingredients and high-quality materials, which could discourage budget-conscious shoppers from buying the company’s products. Pricing issues are likely to become a major threat within the next six months, as key players in the industry will likely attempt to capture market share by lowering their prices and increasing the perceived value of their products and services. Fitness for Others should expect a well-funded competitor to enter the market within one year to 18 months.

SWOT matrix.

• Audience

Since Fitness for Others only has one brick-and-mortar location in New York City, we are targeting customers in Manhattan and the outer boroughs. Fitness for Others plans to target two segments at first, and then as the company expands, the marketing team will identify other segments to target. The first segment is elderly people who no longer have the ability to take their dogs for long walks. These people love their dogs, but they are not physically capable of walking for long distances or walking outdoors in severe weather. Fitness for Others will meet the needs of these customers by ensuring that their dogs still get plenty of exercise. The second target segment is white-collar workers who do not have enough time to ensure their dogs get enough physical activity. This segment consists of customers with jobs in banking, law, medicine, and other professional industries. Fitness for Others will meet the needs of these customers by providing supervised exercise sessions for dogs even if their owners are too busy to attend. Fitness for Others also offers door-to-door service for the convenience of customers who work long hours and do not have enough time to bring their dogs to the facility.

• Branding

Fitness for Others will brand itself by showing a high-quality photograph of customers and their dogs enjoying their time at the facility. Its logo will have an image of happy dog and dog owners. The logo will be complemented by bright attractive colors to enhance visibility.

• Marketing Plan

Marketing goals and objectives

Currently, the main marketing objective for Fitness for Others is to increase awareness of the brand and drive more customers to the business. Specifically, we plan to attract 50 new customers to the store each week within a six-month time frame. To achieve this objective, the marketing team plans to develop a brochure listing each service provided by Fitness for Others; the brochure will feature high-quality photographs of customers and their dogs enjoying their time at the facility. Brochures will be distributed with coupons for 20% off each customer’s first visit to Fitness for Others, which will encourage people to try the facility. During the initial visit, Fitness for Others staff members will focus on delivering an exceptional experience so that these first-time visitors convert to repeat customers.

The firm’s second marketing objective is to increase sales. This objective will be accompanied by a multi-pronged approach to driving revenue. Fitness for Others currently offers several products and services to customers who visit the canine exercise facility; for example, dog toys and treats are available at the point of sale. The company’s marketing team plans to increase sales by promoting impulse purchases, offering buying incentives, and offering a greater variety of products to meet customers’ needs. To increase product variety without increasing costs, the marketing team intends to partner with local business owners who are interested in selling dog-related items at the Fitness for Others facility. Instead of purchasing products at wholesale prices and selling them to customers at retail, Fitness for Others will offer each vendor space in the facility in exchange for a percentage of the revenue generated by each sale. Vendors will only qualify for space in the facility if they sell high-quality products that are in line with the needs of customers in the Fitness for Others target audience. For example, Fitness for Others is willing to partner with vendors who make organic dog treats with all-natural ingredients, handmade dog clothing and accessories, and high-quality bedding for dogs. 

To promote impulse purchases, Fitness for Others will update the layout of its merchandise area to make the displays more attractive and give customers more room to browse. The current layout has the shelves placed close together, which makes it difficult for customers to navigate through the aisles, especially if they are carrying shopping bags or have their dogs with them on leashes. Improving the shopping experience will encourage customers to spend more time in the store, which could lead to an increase in sales. The new layout will be based on a looping design, which will guide customers from one display to the next rather than forcing them to move from display to display without any rhyme or reason. High-profit items will be placed near the entrance so they are the first thing customers see; this area will also feature high-impulse items to increase the average value of each sale. In addition to updating the layout of the shopping area, the marketing team will also add endcaps and hanging clip strips to the shelving units to make better use of the space. Adding endcaps and hanging clip strips will allow staff members to display complementary items next to each other, which could influence customers to purchase more items during each visit. For example, treat jars can be displayed near the dog treats, or harnesses can be displayed next to basic leashes. Fitness for Others will also be promoting impulse purchases by stocking inexpensive items that are not necessarily dog-related but still meet customers’ needs. Many current customers are busy people who come to Fitness for Others to engage in physical activity while spending time with their dogs. Fitness for Others can cater to their needs by selling bottled water, athletic socks, lanyards, and equipment bags.

The marketing team also plans to hold product demonstrations at least once per week, which is likely to increase sales. Customers may hesitate to buy certain products, such as harnesses or training tools, because they are unsure of how to use them correctly. Holding product demonstrations would give Fitness for Others the opportunity to educate consumers on the safe use of a wide range of products, eliminating some of the objections that prevent customers from making in-store purchases. Giving product demonstrations also creates an opportunity for potential customers to visit the facility, interact with staff, and learn about how their dogs can benefit from the products and services offered by Fitness for Others.

The third marketing objective Fitness for Others plans to pursue is improved customer relationships. To achieve this objective, the marketing team is currently working to develop a loyalty program similar to the ones offered by PetSmart and PetCo. Every time a customer makes a purchase in the merchandise area, they will earn points. These points can be redeemed for free merchandise or discounts on Fitness for Others services. Each customer will also be given a punch card; at every visit, a staff member will punch the card with a custom punching tool; use of a custom tool will prevent customers from punching their own cards. Once a card has been filled with 12 punches, the customer will qualify for a 20% discount on any of the facility’s services. The marketing team will also be holding customer-appreciation events and distributing customer surveys; customer feedback will be used to improve existing products and services as well as determine which new products and services to offer.

The marketing objectives described above are in line with the Fitness for Others mission statement of providing “a clean, safe, and welcoming environment for dogs to live a happy and healthy life.” By increasing brand awareness, Fitness for Others will be able to meet the health and activity needs of more dogs. Redesigning the merchandise area to promote impulse purchases will give the dogs served by Fitness for Others increased access to products that can make them healthier and happier. Improving customer relationships is also in line with the mission statement because stronger customer relationships will encourage repeat business, which is likely to persuade customers to continue bringing their dogs to the Fitness for Others facility. The more often the visit the facility, the more opportunities they will have to improve their health and socialize with other dogs. These marketing objectives are also well-aligned with current trends in the marketplace. Many customers do not have a safe place to exercise their dogs due to narrow streets and high traffic levels. Additionally, changing weather conditions make it difficult to exercise outdoors; exercising at an indoor facility gives customers and their dogs the chance to exercise regularly without having to brave excessive heat, blizzards, rainstorms, and cold spells.

Current marketing strategy and performance

As mentioned previously, Fitness for Others intends to expand its product line by partnering with local businesses and adding complementary items to its current stock. The strategy of offering both products and services will work well, as offering products could enable Fitness for Others to increase its revenue per customer. Many customers who pay for grooming, training, and exercise-related services will also purchase dog supplies and other items from the on-site shop, increasing the amount of money they spend with the company each month. The current product mix is not ideal, as Fitness for Others does not currently offer organic treats or handmade items; however, the plan to partner with local business owners will allow the company to expand its product line and ensure that customers have access to the right products at the right time.

Fitness for Others will use the cost leadership strategy. Porter (2008) states that the cost leadership strategy entails pursuing avenues and strategy that lowest the costs of operations and productions. The costs have to be lower compared to any of the competitors for a firm to sell at the lowest possible price. Because Fitness for Others offers both products and services, effective use of the cost leadership strategy requires low overhead, low-cost labor, and the ability to exploit every possible source of cost advantage (Porter, 2008). When Fitness for Others first opens, the cost leadership strategy will be appropriate because the firm does not have many employees, and it do not offer nearly as many products and services. As the company grows, it will become difficult to control labor costs and keep overhead low; as a result, this aspect of the marketing strategy is no longer appropriate. Serving as the “low-cost option” for customers is no longer profitable; thus, Fitness for Others will be transitioning from the cost leadership strategy to the differentiation strategy within the next 12 months. 

Instead of trying to compete on cost, firms that use the differentiation strategy attempts to be unique in some way; to achieve an appropriate level of uniqueness, the firm must determine what is important to customers in the target audience and then position itself to meet that need in a unique way (Porter, 2008). Once Fitness for Others implements this strategy, it will have to increase its prices to account for increased costs; thus, the firm will also have to market its services to customers who are not in search of the lowest-cost option for dog fitness, training, and grooming. Fitness for Others will differentiate itself by offering services that are not available through its direct or indirect competitors; the firm will also achieve differentiation by offering a unique mix of products in its on-site shop. Partnering with local businesses and focusing on handmade items will help Fitness for Others differentiate itself from businesses that offer only mass-produced items.

The firm’s promotional strategy has been fairly effective to this point, as evidenced by the many customers served by Fitness for Others since it opened. Fitness for Others currently uses a mix of traditional and digital marketing tactics to promote its products and services to customers in the target market; however, due to the high cost of print advertising and television advertising, the marketing team has focused on low-cost tactics for promoting our services and products, most of which are carried out using the company’s website and social-media profiles. The company can improve this aspect of the marketing mix by using additional tactics to attract customers to Fitness for Others and ensure they use the facility consistently. For example, the marketing team currently plans to set up an affiliate program to encourage existing customers to refer their friends to Fitness for Others. For every referral made by an affiliate, Fitness for Others will offer rebates and discounts on its products and services.

Fitness for Others also needs to improve its content-marketing strategy. Although staff members post to social media regularly, they have not been trained to use social media effectively. Many of the posts contain no call to action; as a result, engagement is low, and not many purchases can be attributed to the use of social media. Additionally, Fitness for Others does not have a blog, nor does the marketing team regularly publish content on the company’s website. Fitness for Others can promote its services more effectively by writing educational articles and blog posts aimed at dog owners who fall into one of the three segments served by the facility. Members of the marketing team should also explore the possibility of partnering with non-competing businesses in the pet industry to publish booklets or other educational materials aimed at members of the target audience. For example, a non-competing firm may be willing to publish an article and link back to the Fitness for Others website.

• Sales Plan

The metrics for measuring sales for the first year of operation includes the year over year revenue, new business revenue, individual sales representative performance, recurring revenue and customer returns. In the case of Fitness for Others, the sales plan entails focusing on providing the fitness and grooming services as well as selling on behalf of our suppliers. The firm has not reported any revenues but a detailed report on the anticipated revenues for the first three years will be detailed in the financial breakdown section.

• Social Impact Plan

Fitness for Others can become an essential part of the community by sponsoring local events or contributing to charitable causes that benefit local residents. Not everyone in the neighborhood will choose Fitness for Others over a national brand, but it is likely that some community members will continue using Fitness for Others because they see it as a member of the community and prefer to support locally owned businesses over large corporate chains.

• CRM

Customer relationship management is governed by the customer relations theory which emphasizes that providing quality services and constantly catching up with customers increases the possibility of turning them into loyal and committed customers. Fitness for Others is making steps to enhance its relations with customers. For instance, the marketing team is currently working to develop a loyalty program similar to the ones offered by PetSmart and PetCo. Every time a customer makes a purchase in the merchandise area, he or she will earn points; these points can be redeemed for free merchandise or discounts on Fitness for Others services. Each customer will also be given a punch card; at every visit, a staff member will punch the card with a custom punching tool; use of a custom tool will prevent customers from punching their own cards. Once a card has been filled with 12 punches, the customer will qualify for a 20% discount on any of the facility’s services. The marketing team will also be holding customer-appreciation events and distributing customer surveys; customer feedback will be used to improve existing products and services as well as determine which new products and services to offer. Improving customer relationships is also in line with the mission statement because stronger customer relationships will encourage repeat business, which is likely to persuade customers to continue bringing their dogs to the Fitness for Others facility.

• Customer Service

                The founders are currently responsible for providing customer services. The delivery of this services is supported by the team of employees at the facility. The owners of the business have extensive experience in the pet industry, and they have made it a priority to hire employees who share their enthusiasm for dogs and their owners. With the help of the employees, the founders ensure that the customers are well catered for and that their needs are met. The founders also provide regular training opportunities to ensure employees develop the knowledge and skills they need to provide excellent customer service. In the future, Fitness for Others will need to hire additional employees to provide quality customer service.