E-Marketing Plan for Fast Fitness Coursework

Executive summary

Fast Fitness is one of the health and personal fitness center in Sydney, Australia. Running on the theme of offering gymnastic and training through personal training the company has already been established a unique impression in target customers mind for offering high quality convenient services with a frequent improvement and gradual market growth over the zonal competitors. Operating with a motto of serving Australian market, currently it has three centers, which are not sufficient of meeting such goal. This report is a present and forecasted analysis of the company’s e- business background while it can reform itself by operating online and offline operations jointly. For this, it has to be exposed upon several online tools with formal branding, supply chain and relationship management. By operating a better integration and application of all the proposed terms, it would eventually be established as an ideal entity of automotive service functionality.

Introduction

Today is being called as an age of technology that is influencing at each aspect of life. The business world is not exception in this regard while the modern business era is bearing the perfect implementation phase of IT and IS. Along with other industries where internet and other e- commerce tools are performing as a best connector with customers not only for delivering information but also transact in an effective way, like- retailing, service industry is not far beyond from that race since this industry is upgrading itself by applying a number of e- business tools. This repot is going to explain one of such effort in terms of preparation of an e- marketing plan of an emerging Australian fitness center named as “Fast Fitness”. Since e- marketing is the procedure of business communication and value generation for the target customers with the purpose to establishing relationship with them and gaining profit from the venture. This study is going to discuss on personal health and fitness market of Australia along with a global picture in terms of market size, growth and catalysts, competitor’s strategy focusing on Zest Health Club and essentially, an overall SWOT analysis of the selected venture with a descriptive internal and external background. Then, it will further elaborate the proposed e- business structure of the company with customer relationship, supply chain and brand management. After, recommendation section will advise some techniques, which should be adopted in future regarding some marketing tools for becoming more successful in the long- run.

Situation analysis

It involves several terms regarding the industry and the competitors, such as-

Health and fitness industry

In the recent health, concern is a social context where Australia has been recorded as significant stress- oriented drugs consumers in the world with an annual expense of $100 million for this. So, the development of this industry with e- vision can be shown as-

• Size: The global sports, entertainment and health care industry is growing at an increasing rate, which has made it one of the prospective commercial sectors while some countries have most promising contribution (Ihrsa 2008). In a clutter list of UK, Japan, USA, Australia is a major one since the country is earning about £10 billion per yearly from which a larger portion is gaining 20%- 35% of their international sales volume (Market Research 2007). According to previous year international report, the total earning is going to be $61.5 billion along with 108059 facilities over the world. The Ihrsa report also shows that within 2010, there would be merely 3000000 registered members while the range will extend from 18- 34 to matured population age (Ihrsa 2009).
• Market value: The market is experiencing with increasing and existing membership rate. According to 2009 MasterCard Consumer Resilience Report, fitness is in top 5 sectors of family budget in both Australia and New Zealand. The growth of treadmills, bicycles, weight benches will by 5% between 2006- 2010 offering the 2^nd largest employment section of the country (Ezypay. 2009). Precisely, the industry owns 217500 workforces, 11000 registered entities, about $12 billion of production, above 15 years population’s engagement in sports with a ratio of 33%, 1.2% contribution of GDP and 3200 core gyms and personal fitness care homes (Thompson, 2009).
• Key drivers: Australian fitness industry is being highly dependent upon various technological devices in relation with using internet for online reservation and membership, searching information and tips, e- mail for making interactive communication and suggestions etc. Present economic recession is another variable that is affecting industrial growth and people desire of taking such services.
• Key issues: The industry growth is reasonable for mid- term highly influenced by 2012 Olympic. It is acting as major fuel for equipment industry also while the growth is it predicted that 3%- 4% slowdown might occur for over supplementary and membership. Since a number of population are posing interest in taking free hand, instrumental, aerobics and similar fitness services at home easily, it is necessary for fitness clubs to adopt that e- marketing mantra to meet ongoing demand.

Key competitors- Zest Company

One of Australian prominent health and fitness centers, which are the major competitor of Fast Fitness, is Zest Company with merely 30000 memberships beyond 12 clubs in western part of the country. At present, the club occupies better market concentration with various upgraded exercise equipments, better interior, and outsider practice environment, well- trained instructors, special “cardio- theatre” and other amenities that are helpful to gain permanent and temporary membership attention. The most important fact is that Zest Company is affluent enough of maintaining some e- business approach considering online membership, tips and suggestions, categorized info for generating instant knowledge about their services and the like. Other notable considerations involve convenience, reputation, parking, qualified staffs, facilities, equipment, and class scheduling which are subjects to pay more attention for our proposed new venture for making a better competitive analysis (Zest. 2009).

Fast Fitness in fitness industry

The presented Fast Fitness is a Sydney located personal- training center having 3 physical sites around the zone with a major concentration over personal training opportunity while the specific position is in Sydney suburb of Harbord. It serves for the gymnastic and health care purposes with a broader vision of “one man” personal training. The company had been established in December 2000 by Phil Murray especially meeting the huge demand for professional training in Northern and Southern beaches of Sydney. The starting had been registered by ACHPER or Australian Council of Health and Physical education sustaining with a major focus of building customer relationship, innovation, offerings accommodated with management efficiency. In 2005, the company obtained 91571 memberships in gym with a growth rate of 14%, market share rate of 2.12%, and increase in price by 10% with associated costs and finally, potential profit growth was rated as 38.77% for 2006. Within the operating region, among the three major competition criteria of gyms, personal fitness and training, in 2006, it offered 37% of total services in personal fitness segment with 2.2% competitive market share (Moore, 2006).

Internal analysis of Fast Fitness

• Strengths: Some stronger sides are
  • Better local brand and quality impression,
  • Placement of the gym centers matching with target segment of living pattern.
  • Lower pricing strategy for a quick penetration as the company offers lower service charge than the competitors ranging from $65- $90 each hour and $80 each week involving GST.
  • A good assortment of quality, service, professionalism, and expertise,
  • Time flexibility and customized services by which members can fulfill their demand.
  • Strong relationship of trainers and instructors with customers,
  • Easy transaction procedure since the clients needs not to go with any lengthy process before taking services like- signing at any agreement.
  • Increasing sales rate trend during past few years.
• Weaknesses: Some negative sides of the company are-
  • Placement problem in terms of limited space for taking personal training and Cardio yoga training at the same time,
  • Absence of child- training facilities,
  • Absence of bigger change room and shower facilities,
  • Limitation in adequate capitalization,
  • Threats of being copied,
  • Lack of web presence for becoming digitalized,
  • There exist time deficiencies in management, which may tend to a further limitation in expanding their regular and educational programs.

Present website analysis

The existing web site of the company is not so much satisfactory for serving some e- commerce issue. At present, it is just being used for some traditional purpose of providing information.

Key findings of the Research

The basic outcomes from the above analysis can be concluded as for being competitive in the present competitive environment of health and fitness industry not only throughout Australia but throughout also covering the global framework; Fast Fitness should improve its online prospects. These tasks are integrated with some constructive and intellectual development that will act as higher influential catalyst in expanding e- marketing of the company through the creation of differentiation impression. Such as- the company should be able to make an adequate investment for e- commerce infrastructure to use their web site for diversified issues (Laudon & Traver, 2002). Various services can be delivered through their online network. One of them would be self-service site for altering the user’s contact factor, making attachment payments, taxation invoice of such membership and so one. One of that formats would be

Additionally, Fast Fitness should establish online membership information through their e- member facility program with liberal payment, time freeze, getting of statements invoices and so on. Conducting friends, e- newsletters, online training team, conformation slip, information chart for making balance diet, club tourism or short camping, advance class scheduling, indoor free and fix hand exercise solution, free tips on personal training and yoga, FAQ or Frequently Asked Question, e- fitness and nutrition chart, general articles etc. To be more advance, Fast Fitness should make up link with external affiliate sites like- other fitness and health clubs, gyms or gymnastic corporation sites. So, as a zest, it is recommended for Fast Fitness is to build up an interactive and user friendly web site that would both meet its financial objective of sales, marketing contribution and net operational benefits along with marketing goal of increasing total market share through membership and building long run customer satisfaction.

E- Business model framework adopted

The current service marketing e- business strategies suggest to automate the various functioning and services of a service firm in an integrated way associated with a modified versioning involving customer relationship management to supply chain functionality (Anon. 2009, p.1). In this part of the report, we will overview the e- business model structure adopted by the selected company considering customer relationship, brand and supply chain management.

• Customer relationship management: In the monopolistic health and fitness industry, it is becoming very much essential for companies to obtain additional customers along with retaining them by using several marketing techniques. In most instances, customer retention is more important than customer acquisition. It is possible when a firm establishes, maintains, enhances and commercializes well relationship through promise fulfillment and overall cost effectiveness. While the general CRM techniques are survived through direct and mass marketing effort, online CRM system follows a different rules as below-

Therefore, it can be viewed that internet has expanded the market reach with various software and business modules involving cookies, web transaction logs, collaborative filtering, data mining, chats, bulletin boards, distributive e- mails etc which are various sorts of interactive programs, communicative devices, and personal interactive devices with an establishment of an idea of e- CRM. All of those models are very much effective for a firm for generating more flexibility, demand sensitivity, and better forecaster to match between supply and demand within an e- business atmosphere (Anon. 2009, p.1). To build up a successful CRM strategy, Fast Fitness needs to show all the offers with relevant information regarding target market’s demand with a vision of being healthy and fit client- side tools in terms of agents, web portals, experiential marketing, fax- on- demand, personal e- mail, FAQ or favorable word- of- mouth influence etc.

• Transparency: – This is another tool of web-based relationship, by which companies provide important product as well as price information transparently. It is an important capability of that company for value generation purpose. Although our selected venture does not provide this value through online, it can follow the example of their nearer click- and- mortar competitor mentioned as Zest Company for information disposal purpose. Additionally, it can introduce a web site where users would easily enter for discovering prices in a listed form with necessary details. Here, the company can set the example of “frictionless commerce” by assuring each party of delivering desired benefits.
• Responding to demand variable: – Fast Fitness would be able to setting up a longer period relationship with intended audience. Members would be happy when the firm can remember themselves especially. Therefore, a better knowledge with an application of serving them personally is very much resourceful for getting intensive loyalty. Since, the company’s major target market consists of young and mid- aged population and are most conscious about body fitness, such population can also be targeted for spending of more time on web, which can be administered by well-addressed fitness suggestions. A related forecasting has shown that there would be about 72.5% of total population of Australia will have a chance of being regular internet user which inclines the company to affiliate all the members account and profile with greater customization opportunity and emotional acceptance by warm greetings.
• Brand management: According to Malhotra (2009), brand can be defined as a set of expectations that are possessed by the customers while utilizing or thinking to utilize, a goods or service of a specific company. Hisrich & Peters (2006) said that the basic goal of branding is to make variation of the offered items from the competitive forces. Fast Fitness is one of the well- known brands in the Sydney centered fitness care market in terms of family image and relative market share. It is being valued as a low- priced, reliable personal training center for providing various gymnastic items to the members. Moreover, it should concentrate on seeking the chance of getting various search engine approval for launching such image, basic understanding of home image through supply web and brand collaboration. Making a favorable m- commerce application as an effective tool of experience marketing would also be effective here. For operating an effective online brand image, the company can go forward with the following model-

• Market positioning: The basic theme of constructing such strategy will emphasize the company to create customer- focused value proposition where it will convince with the reason of taking their services to the customers and differentiation. In this regard, it can use its web site for supporting the overall positioning statement by showing all the facilities, announcement of visible promotional support throughout and beyond the region, introduction of new arrivals or performance of the new trainees etc. Further, for strengthening its market position, the fitness center can use diversified patterns of advertisements and sales promotion and public relation programs for reinforcing their brand image in the specific market. In order to make a strong struggle with other market players, Fast Fitness should create a very strong a significant brand emotion not only in terms of fair price items but also in terms of other intangible benefits. As previously noted that Zest is one of its major competitors, in some instances, this local fitness center can adopt Zest’s strategy of expanding its market through a wider e- offer assortment and brand leveraging. Moreover, habituating the members with e- newsletters and persuading them in attending FAQ would be more successful in this case.
• Supply chain management: In case of managing offline distribution system, Fast Fitness operates three virtual studios in the predefined locations of Sydney where the members can directly enjoy their demanded benefits. However, in case of serving vial internet, the process of dealing with a complex network of web is virtually critical. As it is a service agency, it should expose a greater skill in making a good interaction with forward and backward linkage to run with the root of differential advantage. So, the proposed virtual integration would be-

Through such integration, the company will be able to create online value chain network that means an integrated logistics system. More explicitly, the value chain will obviously involve several upstream and downstream functions of the firm, which are related with both internal and external environment. As a result, it will maintain the flow of information as well as proposed services, information and finances among the channel members in terms of the presented diagram where the suppliers would be selected gymnastic tools and ancillary equipment companies. A variety of software companies or other entities who are essential for regrinding itself as a click- and- mortar company, supplier as the company itself especially focusing it new, upgraded and expert e- technique team and lastly customers as members who may have a regular and occasional conduct with the firm. Here, Fast Fitness can also take help of various software systems as ERP or Enterprise Resource System where members will log on their PC and type for a specific service. Next, it will be electronically communicated to the company’s IT point and the members will get an electronic bill. It will be more effective for the backend part of supply channel system of the company while it will transact with other business houses in terms of B2B communication.

Marketing objectives

The marketing objectives of the discussing company will be progress its web site dealings especially orienting to members, potential members and other information seekers who will be able to achieve some extra facilities from such online operation through information, membership, booking and loyalty approaches (Stutely 2007). So, the long- run marketing objectives can be summarized as below-

• Decrease of overall expenditure of physical operation.
• Facilitate customers by lowering their search costs, time, and money.
• Expansion of existing physical distribution via three outlets and establishment of online growth factor as a mega assessment of increasing the existing customer base with an expectation of 5% to 7% on locality basis along with a representation of 25% of total annum;
• Reestablishment of brand from regional to national level;
• Acquisition of customers, specifically the youth who spend a larger portion of time in searching various online facilities like- information flow, necessary tips and suggestion, mailing for any problem or some other internet based feedback and dialog methods.
• Being competitive than other stronger gyms and health clubs in terms of differentiation and diversification offers.
• Having a close relationship with members by identifying them, questioning them about any health and exercise related problem, arrangement of FAQ and chat rooms for the motive of providing greater CRM support.
• Extension if online brand with a new media identity for developing brand awareness, recognition and recall.
• Increase in sales revenue through e- commerce application.

E- Marketing strategies

Fast Fitness is a physical outlet personal health-training center in that age when many other competitive forces offering the race not only with visible existence but also with IT supported brand-leveraging effort. The company’s present e- business strategies are not supporting enough to bear with such competitive pressure for a long- term planning period. Therefore, they need to be modified with an integration of various e- business tools, techniques, and products with an ultimate financial purpose of generating revenue through sales, affiliation and subscription e- business models. In these circumstances, first step can be taken with an initiative of online advertisement of banner and reach media ads and paid search engine inclusion, online public relation, sales promotion and so one. Moreover, those strategies will be helpful to enhance the rate of total customer traffic ((Kiang & Chi 2001). For example, a sophisticated loyalty package will improve online corporate experience. Additionally, an online based community service will create many friends within the same gym along with extra advantage of sharing their feeling, know- how and responsiveness of individual services and thus influence greatly upon viral marketing panels. At the same time, the center needs to form an “e- channel strategies” for increasing approximately 15% of total membership. Alternative communication channels should be developed to interact with customers and other business affiliates via electronic channels involving internet, m- commerce, and e- mail. All those tools will be potential for raising membership as a new era of new e- business motivation of the company. Similarly, in association with visible group training program, it should provide personalized yoga, aerobics, and training suggestions based on fixed membership request through a log on system. Rather than going forward only with offline based mass marketing concept, the adoption of such individual marketing offers will assist the organization to reach at its ultimate destination. Some other proposed e- strategies are as following

• Upgraded design of the web: To gain vital attention, Fast Fitness should design its web pages consciously placing icons of all the online contents at the 1^st page. Functions will involve home description, online membership, advertisements and promotional offers for new members, information booth, trips details for regular members, new services available at physical centers, training guidelines, short marquee tips, paid inclusion of suggestions for non- members, contact option, FAQ service for registered e- members and e- newsletters etc. Moreover, all of those functions should be designed in such way, which will be easy for regular and even irregular web browser to discover and use.
• Offering of differentiated services: Fast Fitness is a promising entity of delivering various services options by means of e-marketing networks involving pre service information, service oriented insights and deep information, customized services based on membership database and instant user profile. The corporate catalogue involving picture of gyms, exercise machines, yoga training, different micro fit functionality, body movements during the training period along with adjacent pricing range, specialty offers, discounts and so on. For spreading promotional message, e- mail can be used; online market segmentation can be another popular approach by which customized loyalty packages can be introduced. That task will regulate dividing the overall members on their spending of time and money for fitness or exercise purposes considering level of pricing and packages, contribution in buzz marketing effort etc. that can be termed as Class A, B or C group. Finally, publishing quarterly and monthly e- newsletters through a regular updating containing various necessary news regarding health, diet and diseases.
• Advancement of customer satisfaction program: When the fitness club will use various types of E- CRM software, it will be able to achieve customer satisfaction because those modules are greatly supporting for making interactive communication network from user to company or company to user. It will also be fruitful for strong loyalty and future connectivity. For example, by using FAQ system, along with regular partners, infrequent web users would ask about benefits of personal trainer, qualification of the company or simply any health related issue via their computer system. After getting a satisfactory answer, older member would decide to create a permanent relationship browsers would decide to have a physical visit to the center for having some practical training and exercise.
• Lessening of distribution procedure: – With an e-business orientation, the fitness company will lessen the stages of supply web, by which people would gain additional interest in terms of low service charge. Equivalently, it will prepare a straightforward transaction and exchange procedure.

Recommendations

There are some issues for Fast Fitness requires to paying more concentration to make the intended e-marketing plan successful. Such as

• The company should fix a major portion of annual budget, as 10% of projected revenue should be spent for the formulation of an effective, affluent and expert IT department who will be responsible for developing and maintaining the overall e- business framework.
• It should enhance the existing service line. Diversified offerings are very much essential for meeting huge customer demand and increasing itemized service options over the digital network.
• It should ensure a strong network solution technique like- Web Malware Scanning for sustaining a fulfill, multi- coverage security from virus, worm and other sort of security threats, limiting the present rate of TCO or Total Costs of Ownership, offsetting latency, dynamic operation, complete scalability, user- friendly, consolidated administration and detailing etc. Here, adoption of ScanSafe SaaS solution software can be recommended for getting almost all of the mentioned advantages.
• The company should arrange periodic online marketing research through either their personal network or external professional agencies for analyzing feedback about workability of the implemented e- business strategies.

Actions plans

The actual action will be taken from January 2010 to December 2013 as

• Web site development program: – In January, 2010, Fast Fitness will start to build a dynamic, user- friendly web site consolidating home page with other functional pages for establishing itself as another major source of distributive revenue. Online catalog, piece, e- book, registration and booking, community, FAQ, and photo gallery sections will be placed with easily negotiated instructions for enabling browsers to purchase, visit, or simply seeking information from those options. Additionally, sophisticated software package will be installed for restricting any linkage from customer database.
• Distributive functionality: – Fast Fitness will make partnership with multiple groups for such renovation relating dates on- time, which will lower interchange cost. For serving online customers, it will adopt delivery identification data for locating orders in terms of simple log in or membership option.
• Exclusive customer satisfaction rating: – The Company will need to collect customer feedback through a market research process, which will be started from January 2011. In the FAQ section, they can express their problems and through e- mail, they can express their thoughts, ideas, strengths, and weakness of overall operations.
• Distinguished versioning of delivered services: – In the mid 2010, it will segment online customers in terms of regular membership and infrequent ones upon which Fast Fitness will deliver differentiated versioning of planned services by making essential adjustments of discount, coupon, free extra service or informational assistance for each group.

Conclusion

The overall analysis has proved that at presented the selected fitness company is not so much sophisticated in the field of e- commerce orientation. Although popular enough in its neighboring region for making a special niche marketing effort along with competitive price offerings, achieving a supreme place in home country and beyond the world is an ultimate destination for each partner at any industry. Therefore, Fast Fitness needs to be diversified and expanded through a new edge of internet community and business for which marketing is the integral point that requires automation. Here, the overall industry situation has been presented for versioning a chance of e- marketing, its systematic procedure, and projected advantages regarding the corporate context. If all of those strategies would be implemented properly with related suggestion, it can be expected that in near future Fast Fitness would be able to introduce itself as a successful click and mortar digital health club.

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