Sports Marketing Plan - The Gym Group - 11022406 (1)
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Transcript of Sports Marketing Plan - The Gym Group - 11022406 (1)
11022406 1
MODULECODE:UMKD6Y-30-3CONTEMPORARYISSUESINMARKETING
SPORTSMARKETINGPLANFORTHEGYMGROUP
11022406
Wordcount-2750
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1.0Contentspage
1.0Contentspage................................................................................................................................22.0Introduction...................................................................................................................................33.0Marketbackground....................................................................................................................33.1TheHealthandfitnessmarketconsumer....................................................................43.2Competitoranalysis...............................................................................................................4
4.0Strategicpriorities......................................................................................................................54.1NewProduct/servicedevelopment.............................................................................54.2Differentiationandre-position.........................................................................................54.3Increaseloyalty.......................................................................................................................64.4Digitalpromotionandre-brand.......................................................................................6
5.0Objectivesandgoals...................................................................................................................66.0Thetargetaudience....................................................................................................................76.1Segmentation............................................................................................................................76.2Targeting....................................................................................................................................76.3Positioning.................................................................................................................................8
7.0Strategy............................................................................................................................................87.1Acquisition..............................................................................................................................107.2Retention.................................................................................................................................10
8.0Tactics...........................................................................................................................................118.1Product.....................................................................................................................................118.2Promotion...............................................................................................................................118.3People.......................................................................................................................................138.4Placeandprice......................................................................................................................13
9.0Implementation.........................................................................................................................1410.0Measurementandcontrol..................................................................................................1510.1Standardsandevaluation..............................................................................................1510.2Feedbackandcorrectiveaction..................................................................................16
12.0Appendices...............................................................................................................................1713.0References................................................................................................................................4414.0Bibliography.............................................................................................................................46
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2.0Introduction
TheGymGroup,(TGG),pioneeredtheBudgetGymSectorin2008andisnowoneof
2771clubsintheUKHealthandFitnessClubsmarket.(Mintel,2014).Despite
competitionTGGhadanotherstrongyearin2013opening8newgyms,
membershipsalsogrewby36%,asdidTurnoverby58%.(TheGymGroup,2013).
TGGdifferentiatesitselffromit’smaincompetitionthrough4maincompetitive
factors1)alowcostmembership2)nocontract3)open24/74)hightechnological
equipmentandanindustryleadingwebsite(seeappendices22).
TGGhasabrandpromiseofa‘Priceforlife”withnochangeinmembershipprovided
bythesamefriendlyteamanda24-hourgymaccessandavision‘Todriveindustry
changeandprovideconsumerswiththemostaffordable,flexibleandcompelling
gymmembershipavailable”.(TGG,2013).
3.0MarketbackgroundTheUKHealthandfitnessmarkethasremainedworth£2660millionforthe
secondsuccessiveyearin2013.Expectationsfor2014areformodestgrowthin
marketvalueandvolume,reflectinglikelyimprovementsinlivingstandardsin
thesecondhalfoftheyear,aswellasincreasesinconsumerconfidenceand
fallingunemployment.ForecastssuggestthattheUKHealthandFitnessmarket
willgrowby5.9%inthenextfiveyears,toavalueof£2,823millionby2018.
(Mintel,2014).
Thelow-costsector(seeappendices1)continuestooffersignificantgrowth
opportunities,numberofsitesgrowing21%from2013-14cancellingoutthe
difficultiesexperiencedbythemid-marketsegmentandlittlegrowthinthe
premiumsector,toreportalargelyflatHealthandFitnessMarket(Mintel,2014).
WithMintelestimatingthatthebudgetgymsectorisnowworthjustunder£220
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million,whichequatestoaround8%oftotalexpenditureonhealthandfitness
clubsintheUK.(Mintel,2014)
3.1TheHealthandfitnessmarketconsumerThekeymarketdemographicssuggestcommunicationsshouldbeaimedatyounger,moreaffluentconsumers.(Seeappendices2forfullprofile).WetakeacloserlookatTGG’scustomersinsection6.0,pleasealsoseeappendices9.Age 16-34Class ABC1,AB,C1Gender Slightmaledominance
3.2Competitoranalysis
UsingMinteldata(seeappendices3)onthetopBudgetgymsintheUK,thisplandeterminesTGG’smaincompetitorsandthemarketsharebothintheoverallhealthandfitnessmarketandthebudgetsector.Wewillbefocusingonthebudgetsectorinthisplan,ofwhichTGGhas20%marketshare.
Figure1-Marketshare,sourceMintel2014
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4.0StrategicprioritiesAnextensivemarketaudithasbeenundertaken(seeappendices4-11),Using
findingsfromtheauditanInteractionMatrix(seeappendices5)wasutilisedto
decipher4mainstrategicprioritiestomaximiseTGG’sstrengthsandexploit
opportunitieswhilstminimisingtheweaknessesandthreats(Weihrich,1982),
withtheaimofenablingTGGtoachievetheirvision.
4.1NewProductdevelopment
Ourresearchhighlightsthatnewtechnologiesareneededtosatisfythetarget
markettoreducetheeffectofsubstitutetechnologyproducts(seeappendices
5,6,8)assupportedbyresearchfromMintelstatingthatWithpressureonliving
standardsintheUKconsumersareoptingforamobileapplicationandwearable
technologyasanalternativetogyms(Mintel,2014)withapplicationsinthe
HealthandFitnessmarketgrowingat62%doublethatofregularapplications
(TheGuardian,2014)andover15%ofconsumersnotonlyinterestedinnew
productsbutwillingtopayextraforthem(Mintel,2014)(seeappendices12and
13).
4.2Differentiationandre-positionOurcompetitivebenchmarkingandanalysis(seeappendices7)andcurrent
positioningofTGG(seeappendices7)illustratesthattherationalpointsof
differenceTGGoncedifferentiateditselfwithandthatbudgetgymscompeteon
(seeappendices1)havenowbecomebasicpointsofparity.(Barney,1991).
TGGshouldaimtoexploitit’ssocialandenvironmentalgoodtore-positionand
differentiateitselfinthemarketasNielson2014statesthatover40%of
consumersinEuropeandonein4intheUKarewillingtopaymoreforproducts
andservicesthathaveapositiveenvironmentalandsocialimpact.Furthermore,
bymaximisingthegymgroupsuseofenvironmentalandsocialgood,TGGwould
minimisethethreatoftheUKgovernmenttaxreliefs97and98(seeappendices
4)andtheincreaseinenergycostsoverthepast5yearsputtingastrainonthe
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sectorsoperations(Mintel,2014).Thismayalsohelptomotivateawidertarget
audiencetouseTGG’sservicesascurrentlyoverhalfofalladultshavenever
usedagymandwouldnotconsiderusingoneinthefuture(Mintel,2014).
4.3IncreaseloyaltyTherateofattritionfortheHealthandFitnesssectorisbetween30-50%andis
thehighestinfluencingfactoronprofitmargins(IHRSA,2014),TGGmustuse
furthertechnologiesdesiredbyconsumers(seeappendices12)toincrease
loyaltyfurthersupportedbyForbes(2012)andReichheld,(1996)suggesting
thatattractingnewcustomerscancostacompanyfivetimesmorethankeeping
anexistingconsumer.
4.4DigitalpromotionandbrandidentitybuildingWith57%ofconsumersnotassociatinganybrandattributestoTGG,(10%more
thananyotherleadinggym)(seeappendices14)(Mintel,2014)andTGGbeing
seenaslocalgym(Oxygen,2012)TGGshouldcapitalizeonitsonlinepresence
(seeappendices7)anduseDigitalMarketingincludingsocialmediaasMintel
(2014)suggesttherapidgrowthofSmartphones(supportedbyoffcomm,2014)
andSocialMediahasleadtoacosteffectivetechniqueforgymstocommunicate
theirbrandidentitytotheirconsumers.
5.0Objectivesandgoals
Long–termobjectives(OverallobjectivestobeachievedbyDecember2016)
1. Toincreasemembershipsalesby25%
2. Toincreasebrandrecognitionandrecallby20%amongstthetarget
audienceasahightech,environmentallyandsociallygoodorganisation
Mediumtermobjectives(CampaignobjectivestobeachievedbyJune2016)
3. Increasetheaveragemembershiplengthfrom8.8monthsto11and
maintainasaKPIthereafter
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4. Achieveanaverageconversionrateof3%acrossDigitalmedia(Smart
Inisights,2015).*Conversion=onlinesign-up
Short–termobjectives(CommunicationsobjectivestobeachievedbyDecember
2015)
5. Increasemonthlytraffictothewebsitefrom67.2kto120kandmaintain
asaKPIthereafter
6. Increasesocialmediaengagementmagnitudefrom3.2to6andmaintain
asaKPIthereafter.
6.0Thetargetaudience
6.1Segmentation
Inordertoachievetheobjectives,thisplanmustsegmentandtargetallactual
(seeappendices,9)andpotentialbuyerswhohaveinterestfor,andaccesstothe
service(Keller,2012).UsingdatafromOxygen(2012),Mintel(2014)andSport
England(2015),segmentpersonashavebeencreated(appendices15)witha
95%levelandaconfidenceintervalof5%,togiveabetterideaofmotivations
andbarriers(Berry,1999)tousingTGG’sservices.
6.2Targeting
Currentandpotentialbuyershavebeengroupedintohomogenoustarget
clusters(BonomoandShaprio,1984)basedupontheir;age,gender,motivations
andbarrierstousingthegymandchannelstheyareresponsiveto.Wehave
chosenthesetargetsbasedontheirrevenuepotential(seeappendices16)and
becausetheycloselyreflectthedemographicsofTGG’scurrentcustomers(see
appendices9)togive3primarysegments:
1. Sportyyoungmales
2. Sportyageingmales
3. Sportyyoungfemales
And2Secondarysegments:
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1. Sportyageingfemales
2. SilverSurfermales
6.3Positioning
Asmentionedinthecompetitoraudit(seeappendices7),priceisacompetitive
factor(seeappendices1)butnotameansfordifferentiation;thisplanwilluse
technologyandenvironmentalandsocialgoodtore-positionTGGfavorablyto
thetargetaudienceandexploittheidentifiedopportunitytotargetconsumers
interestedinsocialandenvironmentalgoodwhilstminimisingthethreatfrom
socialenterprises(seeappendices6and8).
Communicationstoeachofthesegmentswillbemanipulatedinourtactics
(section8)basedupontheirbenefitssought,motivations,barriers,preferred
mediaandservicechannelandmarketingtone(seeappendices15).
7.0Strategy
WewillimplementaBlueOcean,(ChanandMauborgne,2005),Innovation
Strategy(Weihrich,1982)andatallstagesofformulationhaveexaminedour
planwiththestrategicpriorities(section4),theobjectives(section5),rational
factsfromtheaudit(appendices4-11)andthegoalofTGG.
TheGymGroup
PureGym
xercise4less
easygym.co.uk
gitness4less.co.uk
active4less.com
trugymgitspacegyms.o.uk
gym4allklickgitness
Highprice
Highuseof
technology
Highprice
Highenvironmenalandsocialgood
Lowuseof
technology
lowenvrionemntalandsocialgood
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Ourportfoliomanagementanalysis(BCG,1970)showsTGG’scurrentproduct
offeringtobeslowlymovingfromfastgrowth,arisingstar,toacashcow,in
maturitywithdeclinetofollowasTGG’spointsofdifferenceinthemarket
fuellinggrowthbecomebasicpointsofparity.(Seeappendices7).
Torevitalizethebrand,(Gale,1994)andextendtheProductlifecycle,thisplan
willactuponourresearchtoadoptamultistepflowofcommunication
Pullstrategy,(Fill,2009)undertakingnewproductdevelopment(Ansoff,2007)
implementingnewtechnologiesoutlinedinourtacticstodriveconsumers
throughthebuyerreadinessmodelAIDA(Strong,1925),withoutchangingthe
priceoranyofthebasicpointsofparityandpromiseheldbyTGGbut
augmentingtheserviceandextendingthebrand(Aker,1996).
OurstrategyencapsulatesInternalMarketing(Hooleyetal,2008),using
employeestoestablishtheemotionalserviceculture(Grönroos,2007)ofTGG
andpromotetheorganisationandcommunicatethebenefitsofusingTheGymat
everytouchpoint(Fill,2009)tohelpleverageasustainablecompetitive
advantage(Barney,1991)anddirectlyenhancecustomerloyalty(Oliver,1997).
Followingadifferentiationleadershipapproach,incontrasttoTGG’scurrentcost
leadershipapproach(Porter,1985)(seeappendices23),thisplanimplements2
mainstrategies:
Figure2-PLCofTGG
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7.1AcquisitionAbrandidentitybuildingstrategyhasbeadopted,toraiseawarenessofTGGand
buildTGGbrandidentity(Burmann,2009)(seeappendices10)through
communicationstothesegmentsthroughthemediathattheyaremost
susceptibletobrandmessagingfrom(TutonandSolomon,2013)withaspecial
emphasisondigitalvehiclestomaximiseeffectiveness,(Mintel,2014).The
messagescontainemotionalfocusonthebenefitssoughtofattendingthegym
foreachsegmentandovercomingthebarrierstheyholdforthegym,
(Berry,1999)asprofilingTGG’scustomers(seeappendices9and15)informed
ustheyseekappearanceandheathbenefitslinkedtoemotion.
Furthermore,promotingtheenvironmentalandsocialgoodofTGGhelpsto
achieveconsumerconfirmationorpositivedisconfirmation(Oliver,1997)
differentiatingTGGfromcompetitionasourresearchshowsonein4choose
socialandenvironmentallyfriendlyservices(Nielson,2014)andthecompetition
doesnotdothis,allowingustoexceedtheirperceptionsofservicequality
(Zeithamletal,1993),knownasconsumerdelight(Oliver,1997)andtherefore
achieveasustainablecompetitiveadvantage(Barney,1991).
7.2RetentionToretaincustomersournewproductdevelopmentstrategy(Ansoff,2007)
enhancesTGG’salreadystrongonlinepresence(seeappendices7)toexploitthe
InternetofThingsandhighinterestinnewtechnologiesintheindustry(see
appendices12)asourSituationalanalysishighlightedthattherateofattritionis
themainnegativeinfluenceronprofitmargins.
Theemotionalstrategydiscussedin7.1(consumerdelight)combinedwiththe
newproductdevelopmenttoenhanceusersusageandthereforebenefitssought
(seeappendices15)fromTGGalsoenablesTGGtomaximisesatisfactionwith
theendgoalofachievingloyaltyasElliottandPercy,(2007)suggestcustomer
satisfactionisthemainantecedentforloyalty.
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8.0Tactics
Pleaseseeappendices25forvisualizationoftactics
8.1Product
Retention
Thenewtechnologytobedevelopedwillrecorddataoncustomer’s
consumptionhabitsandusingIBMSPSSwillcalculateco-efficientvariation
(Pakos,2007)topredictcustomer’slikelihoodofleaving.
Usingthisdatawewillsendtargetedcommunicationstoeachsegmentthrough
theirpreferredmediaexpressingtheemotionalbenefitsandmotivationsthat
theyseekfromagymandprovidefreeservicessuchaspersonaltrainingto
increaseloyalty.ThisalsoenablesTGGtocrosssellwaterbottlesandfood
productstoincreaserevenue(Seeappendices15forsegmentspreferencesand
appendices17forfullmethodology).
Acquisitionandretention
Tofurtheractonourstrategicprioritieswewilllinkthisdatatoasmartphone
applicationandthewebsitethatwillgiverealtimenutritionaladviceand
workouttipsfromourpersonaltrainers,forfree,asidentifiedasamainservice
customersseek(Appendices12and13)thisincreaseincustomerssatisfaction
usinginnovativetechnologyisaimedtoretaincustomersandattractnew
customersthroughWOM(Trusov,2009)andourpromotionaltactics.
8.2Promotion
Acquisition
Awareness
Toincreaseawarenessamongst‘SportyYoungMales,‘SportyAgeingMales’and
“SilverSurferMales,wewilladvertiseusingonlinebannersandwewillcompete
tobenumberoneonthewordssearchedbyconsumerslookingforabudgetgym
throughsearchengines(seeappendices19)rollingoutaPayPerClickcampaign
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andimprovingtheorganickeywordsonthesitetoincreaseourawarenesson
searchenginesandachieveobjective5.
For‘SportyYoungFemalesand“SportyAgeingFemales’wewilladvertisein
printmagazines.MagazineadvertsandonlinebannerswillhavetraceableQR
codestoonlinesignupandouremailnewsletter.Contentwillhighlightthe
environmentalandsocialgoodofTGGandtheemotionalbenefitsdesiredbythe
segmenttheytargetusingemotionalsuccessstoriesofcustomerslikethem
usingthenewtechnology.
Interestanddesire
Togeneratedesireamongstallsegmentsatthelaunchofournewtechnologies
andtobenefitfrommulti-stepcommunication(Fill,2009)wewillrunauser
generatedcontentsocialmediacampaign,firstlykickedoffbystaffwhousethe
gymwiththephrase‘Didyouknow?#TGG’.Movingtocustomersthecampaign
willprimarilyEncourage“SportyYoungMales’and‘SportyYoungFemales’as
theEarlyAdoptersofnewtechnologytosharecontentonline(Rogers,1995),to
increasereachwewilluseSocialNetworkAnalysisandmotivatekeyopinion
leaders(ZhangandDong,2008)toendorsethebrandforafreemembership.
Action
Ourcalltoactionforcustomersuploadingpictures,videos,commentsand
reviewsofthemusingthetechnologywillbeafreetrialintheformof,‘bringa
friendforaweek’vouchersandprizesforthewinnersofthebestpictureswith
theirfriend.Theuptakeofthesocialmediacampaignamongstthetargeted
segmentcanbelinkedtothembeing‘earlyadopters’thatadoptdueto
interpersonalcommunication(MullerandBass,1990),furthersupportedby
appendices15dataillustratingthesesegmentsseekasociablemessageand
experience.
Reviewsfromcustomerswilldrivethe‘lateadoptersandlaggards’throughthe
BuyerReadinessModel(Strong,1925)as70%ofconsumerstrustonline
consumeropinion(Nielson,2012).Furthermorelinkingtheenhancedsocial
engagementtooursitewillincreaseourSearchEngineOptimization,online
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presenceandthereforehitstoourwebsiteandawarenessfromsegmentsthat
usetheInternet.
Retention
Sendemailnewsletterswithdietaryadvice(seeappendices12)andinformation
aboutthenewtechnologies.Alsoencourageuserstopartakeinthesocialmedia
campaigntobringtheirfriendstothegymforfree.
8.3People
ToestablishtheservicecultureandbuildthebrandidentityofTGGusing
InternalMarketing(Hooleyetal,2008)theanatomyofanorganisation(see
appendices20)highlightstheneedforextraskillsrequiredforthisplantotake
place:
1. Onlineanalyticalskills
2. Customerunderstandingandinsightmining
3. Webdevelopment
4. Searchengineoptimization
FortheseskillswewillbeworkingwithActionableInsight,aDigitalconsultancy
tomangethesuccessofourplan.
8.4Placeandprice
Tomitigatetheeffectoflocationandattendancecausinguserstoleavethegym
(seeappendices18)TGGwillofferanationalmembership,wherebytheusercan
useanyGymGroupgymacrossthecountryatanincreasemonthlyrateof5%.