Answer

Contents

Executive Summary. 3

Introduction. 4

Situational Analysis. 4

Marketing Objectives. 8

Marketing Plan. 9

An outline of promotional plan and marketing budget 13

Conclusion. 13

Recommendations. 13

References. 14

Executive Summary

Marking planning is key in business today whether local or international. Before venturing in gym business, there is need to identify the opportunities as well as threats, achieved through situational analysis. Business persons have the duty to define their marketing objectives, develop plans, and adopt suitable marketing mix to attain their objectives. The business should also lay emphasis on the ever-changing business environment characterized by technological changes and emphasis on sustainability. Putting to consideration measures to assess the success of promotional events is also important. Equally important is to remain sensitive to the cultures and belief systems of the target audience.

Introduction

Marketing planning is at the core of every business that aspires to achieve success. In this modern world, where the world has been reduced to global village marred with intense competition, remaining competitive, needs strategic marketing planning. The concept of marketing planning is also utilizing gymnasium market business. Competition in gymnasium market continues to grow internationally, making brands to be more innovative, hence competitive. Some of the strategies companies adopt include alternative training methods, showing of movies on demand for clients and holistic body/mind care among others. However, the traditional gymnasiums face some threats such as growth of the low-cost/budget gymnasium.  Therefore, on this basis, this report provides a creative, robust, and fully justified marketing plan for a new entrant gymnasium in Kenya.

Situational Analysis

To ensure that the new gymnasium business succeeds, it becomes critical to carry out a market research to understand and appreciate market dynamics. Dynamics do vary from one place to another, and can have a huge impact on the success of the business if not well scrutinized (Hustad 2010). In addition, understanding the competitor becomes of essence if success is to be guaranteed. Therefore, overall, carrying out a situational analysis becomes the foremost goal before embarking on the entire process of determining the suitability of the business and the suitability of the location for the business. Various tools are available to aid in examination of the external environment/situation before the final decision on whether to set up the business is valid or not. Understanding the viability of the business in the targeted market-Kenya needs in-depth analysis using the PESTLE (Political, Economic, socio-cultural, technological, legal and ecological framework. The model appreciates the fact the, different countries, states, kingdoms, regions, municipalities have different issues that may impact on the smooth operation of a business, hence worth evaluation. This macro- environment framework according to Hustad (2010 p35), aids in environmental scanning to assist in making appropriate strategic decisions for a business. In this case, one of the most important issue will be to analysis the political environment in Kenya to establish the extent to which politics affect business and the level of government interventions in the economy.   The target location which is Kenya has enjoyed good political environment and this makes it suitable because of the stability that exists paving way to business to flourish. The other aspects that pertains political environment include, labor, laws, tax policy of the country, trade restrictions, tariffs and environmental laws. The targeted country has friendly tax policy that is not exploitative hence a preferred location. Furthermore, the country has got very friendly laws pertaining to trade as investors are highly welcome.  Labour laws are also friendly as it allows people from outside the country to acquire work permits for quite a long period. Similarly, labour is readily available at affordable cost.

Worth assessing as well are the economic factors such as inflation rate, exchange rates, interest rates and economic growth as they greatly will have an impact on the operations and decision making of the gymnasium business.  The level of economic growth helps in determining the level of income and the kind of lifestyles of the target country.  The economic growth of the destination country is average as it has a sizeable number of individuals in the middle income level. Furthermore, the exchange rates of the country rarely fluctuate implying the stability of the currency. The level of inflation in most of the time is often stable, except instances when there is politics which normally happens after five years. The interest rates that banks charge is not exorbitant, hence manageable, making the country an attractive investment hub.

It would be also critical and wise to put into consideration the social factors such as cultural issues, population growth rate, and health consciousness of the target population, age distribution and emphasis placed on good health (Ireland, Hoskisson and Hitt 2008). Considering these aspects is important because they affect the demand of gym service in many ways. For instance, a health consciousness population will be more than ready to use gym products for their own health. Similarly, the issues of culture in Kenya will affect the way people will want the services tailored so that they can meet their preferences and tastes.

Technological aspects have also become essential in the operation and running of business. Technology has kept on advancing and it becomes important to understand how it can be utilized well to the advantage of an entity (Piercy 2009). Technology has become important in the issues of automation, in research and development and therefore, is critical as it may deter one from achieving the intended goals. In Kenya, technology is highly utilized and there are few restrictions on the use of technology. Therefore, adopting technology in the gymnasium will be positively received because people appreciate as the government as well promotes its adoption and utility for economic gains.

Looking at the legal aspect is also critical for this business in Kenya. Legal aspects concerns the whole issue of the statutory concerning aspects such as consumer law, discrimination law, employment law, health and safety law and antitrust laws among others. These laws would define the operational   strategies to ensure that the company reduces costs by abiding to the laid down legal framework. For instance, it would be appropriate that the Gym serves all the citizens regardless of their races, ethnicity or background to avoid legal implications. The gym must as well be kept at the required health and safety standards.

Being able to scrutinize ecological factors such as climate, weather, climate change, and insurance facilities among many others will as well guide in the decision of starting this gym venture in Kenya or not.

Porter’s five forces analysis is yet another effective tool that will greatly help in analyzing the competitive nature of the business to ascertain the worth of investing in the target country or not (Tang 2014).  It is important to have an assurance whether the market will allow the business to accrue profits and be able to sustain the business in the short and long run. One aspect to look for is the level of competition in the industry.  I will have to assess the number of business providing gymn services in the Kenyan market. The services and products they offer is also important aspect that must be interrogated. Secondly, is to evaluate the potential of the entrants in the industry. If entering in the market is less costly, it means that many investors can easily enter and this affects the profit because of high supply that does not match the demand.

The third aspect to consider is the power of suppliers. If the suppliers are fewer, they wield more power; hence will affect the prices of the services, in this case, suppliers of gym related products such as actual gym premises, online gym contents and so forth.  Few suppliers of gym related products and services in Kenya will definitely have positive impact on the services that the company will offer. Fourth is to evaluate the threat posed by substitutes whereby, I will have to consider whether there are alternative ways that people use to promote their health. If such means exists then it implies the success of the business may be at a risk. 

I will also have to look at the powers customers hold to determine whether they have the potential to drive prices down. This however, is determined by the number of customers, similar businesses, the significant of the customer and the cost to change companies.  If the client base is smaller, it becomes powerful and this affects the decisions of the company. In Kenya, the client base is average with the potential of gaining or winning more.

Marketing Objectives

In any marketing planning initiatives, one has to have clear set objectives to help define and direct the entire marketing process (Westwood 2002). In this case, the intention is to ensure that the new gym services is introduced in the market and records good performance. The gym business will be hosted in the capital city of Kenya. The location will be easily accessible to allow people in the city. The gym will mainly offer physical training and other trainings on proper health management strategies. The gym facilities will consist of traditional and automated services. There will be all kinds of exercise machines/kits to give the client the satisfaction they will require. Furthermore, there will be a room solely for individual with various physical injuries and disabilities. This is aimed at tapping into this target market that is lying dormant. The gym will also accommodate children of various ages ranging from seven to 18 years. The purpose of such is to tap in the dormant markets to attain economies of scale.   The trainers will use information technology to reach to other subscribers to teach them how they can engage in physical activities at the comfort of their homes. Videos will also be used to demonstrate some of the exercises. There will also be adoption of alternative training methods, whereby, on specific days, the clients will take part in outdoor training to add flavor to the whole experience.

For easier attainment, it is understood that the objectives would be specific, measurable, attainable, and reliable and time bound.  Indeed, all these will be attained and will come to pass.  These objectives as well are realistic in the sense that, such facility has been able to operate and succeed. Therefore, since the business has succeeded elsewhere, it is evident that it can as well excel in this location.

Marketing Plan

When creating a market plan, consideration different aspects such as availability of markets, technology, cultures, and ethical and sustainability issues is important. To ensure that the business thrives, it would be appropriate to segment the target customers into various categories to improve service delivery at the same time ensuring that maximum profits are accrued.  One of the ways in which the market will be segmented is according to the demographics. The facility will focus on children, adults, disabled and elderly. Each of these categories of clients will have their modified gym facility that will be under dedicated teams of trainers to provide specific training needs.

Similarly, there will be segmentation based on time. The facility will open in the morning and evening for the adults, while children will be allowed during the weekends. The elderly and physically challenged will be allowed accessibility in the evenings. This is important because it factors the availability of the target audience putting in mind that most people are at their work stations during the day and children are only available often during the weekends.

Having a specific target market allows a business person an opportunity to tailor the services in line with the needs of the customer (Lucy, LeTourneau and Chandler 2011). Furthermore, it becomes critical when planning or designing advertisements. The target market as earlier indicated is Kenya focusing on clients with weight issues and those that require maintenance of their health/lifestyles as well as those that may want to achieve their medical requirements.  Furthermore, the targets are mostly middle class and high class citizens living in the city or its environs. The program through the aid of technology will reach others interested, but residing out of the city. The reason for targeting this market is the inadequate gym facilities that offer classic services in the current market. Clients are in need of such gym services but, experience accessibility challenges. Secondly, people have become conscious about the need to keep fit and therefore, they can only achieve this through visiting gyms. The increasing cases of chronic diseases such as high blood pressure, diabetes, and obesity are also a threat to many; hence most people are adhering to the medication requirements to cut down fat, hence presenting high demand of the gym services. In addition, the disabled people as well as elderly and children for long time have been locked out and denied such opportunities to engage in physical activities. Therefore, targeting such individuals provides a window of opportunity to many who will have to lead a healthy and stress free lifestyles.

Perception of the business will impact on the performance of the business, hence the concept of positioning and differentiation comes in handy. Position aims at acquiring space in the customer mind while differentiation is a strategy that companies employ to make their products, brands and businesses unique from their competitors (Lucy 2017). The best way to communicate, about the business so that it sticks to the mind of the target will be emphasizing on health promotion and regaining back  people health. The projection of the business through word choice in the advertisement will be able to stick in the mind of the people and even prompt many to be part of the people that will gain interest in managing their health. This will help differentiate the value of the business from the already existing business that provides close to similar products and services to clients. Other ways that the business will adopt to differentiate itself from competitors would be emphasizing on the quality and target market. Emphasizing on quality and target will definitely, attract many people who value their health through the quality of services they receive.

Marketing mix concept which is a set of marketing tools used to achieve marketing objectives in a specific target markets have to be considered (Gilligan and Wilson 2009). Achieving the marketing objectives would require examination of the price, product, place, promotion, process, people and physical evidence.  In this case, the product the business offers is the services relating to gym services which will range from lectures, practical exercises and online video trainings. The product offered must address the needs of the target audience.  Price or the fees charged will be in congruence with the kind of service provided. Customers would be able to get discounts depending on the sessions enrolled and have an option to remit their fees through credit cards. The business will cover customers in the city and its environment. However, those that want home solutions would subscribe and be trained through online platform. Various promotional events will be done through advertisements and sales promotions activities to reach to all potential customers. Physical evidence remains important in the success of the business. The facility will have physical activity area that will be installed with variety of kits.  There will be other facilities such as furniture, washrooms, signage to direct and warn, and the rooms will be installed with air conditioners to ensure fresh air and optimum temperatures. The interior design will also be gorgeous to enhance the trainings.

In this marketing mix, people should also be considered, and these are the human actors that will be aiding in service delivery. These will include trainers and manager who must hold be professional and customer oriented skills and competencies. They should be able to create rapport and facilitate smooth operations. They will as well be able to undertake trainings, must be in clean uniforms, and should solve problems and manage social interactions.

Processes will also be in place to ensure the procedures and mechanisms allow free flow of operations (Gilligan and Wilson 2009). Operations manuals and any other training materials will be availed to ensure that process run smoothly. The clients will also be given time schedules to ensure that they get superb services. The room will also have a section to diagnose fails, and attend to critical incidents and system failures. Employees will also have to fill performance management system to track their performance.

Ethical considerations will be adopted in marketing mix to foster success. The people who include the management and the trainers must prove to be honest, and professional. They have to execute their duties without favor. Cases of sexual molestation will not be tolerated and any other cases that may negatively impact on the business.

It is also important to acknowledge that the world has become a global village, hence the concept of e-marketing will be integral to ensure that as many targeted audience are brought on board. Business will also invest in corporate social responsibility to promote sustainability of the business and the people. The business will engage in various events that promote general well being of the society.  To avoid noise pollution the gym facility will be installed with sound insulators.

An outline of promotional plan and marketing budget

All the promotional plans that will be conducted require financial support to be successful.  A range of promotional activities including advertisement through mainstream media and social media will require money that must be factored in the budget. Other promotional events include internal communication costs and others relating to production of fliers, posters and billboards advertising the business and its values. The marketing budget for all these promotional events in a period of one month is estimated at $20000. These promotional aids will focus on the target audiences.

Conclusion

Business success nowadays depends on how successful the process of marketing planning is done.  Carrying out situational analysis has helped many entities by informing their decision and this has culminated into success. The new gym business stands an opportunity to succeed if in-depth research on the target audience and competition scales is done. Defining target audience, considering market mix and budget need as well as positioning and differentiation remains key aspects in marketing planning and the success of the new gym business venture

 Recommendations

The business has a responsibility to implement the plan after carrying out feasibility study. It is recommended that the management identifies a suitable location and mainstream media that can help them reach the target audience. Measures should be put in place to assess the reception of the adverts to enable them adopt their strategies. The business should also exploit social media platforms since most people use the same.  Social platforms such as Facebook, Twitter are considerably easier mediums of communicating to the target audience. However, it is prudent for the business should be cautions to adhere and promote the cultural norms of the target audience in their activities.