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Market analysis and business plan for a gym

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Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UK Essays.

Published: Wed, 03 May 2017

Stayfit gym is a privately owned business which is positioned at 15 Menai Road, Menai. The estimated opening date is August 2010. The establishing business, Stayfit gym is dedicated to provide the best personal fitness service. The mission is to offer the general public with the willpower to set reachable goals and to reach ultimate health and fitness level. The business will take a holistic approach to lifestyle, health and fitness management and work around the clock to provide the public with practical and innovative fitness programs that flexibly put together into busy lifestyles.

Stayfit gym will include of 1-20 employees making it to be a small business. Stayfit gym will be registered as a sole trader ownership (Maroutcha Hadwan) meaning it is an incorporated business with one owner. The owner is responsible for all decisions made within the business and is able to retain all profits. Funding for the business is through the owner’s equity and money and money borrowed from financial institutions. An advantage of a sole trader is that all profits go to the one person; unlike a partnership the profits made are split evenly between all partners in the business. The risks in opening this business as a sole trader are that the owner of the business is personally responsible for the debt incurred by the business (unlimited liability). In the event that the business is unable to meet its financial obligations, the owner must take responsibility for finding funds to pay off all debts, the owners personal assets are all at risk of the business does not succeed.

Purpose of Plan

Planning is important to guide the business, the purpose of this business plan of that it gives clear direction for the future of Stayfit gym, it also increases awareness of opportunities arising in further future growth. It helps the business prevent failure and to achieve goals. Stayfit gym holds many different goals such as: personal, social, and financial which consist of the following goals:

Personal Goals:

Upholding a good image

Being a sole trader (being their own boss)

Satisfaction from your work

Social Goals:

Helping the general public improve their fitness

To help children over come obesity

Financial Goals:

Gaining maximum wealth

Making a great profit

Situation Analysis

SWOT Analysis

The SWOT analysis provides the business with an opportunity to examine the strengths and weaknesses Stayfit Gym must address. It also allows the business to examine the opportunities presented to Stayfit Gym as well as possible threats.

Strengths

Weakness

Knowledgeable and friendly staff

Top of the line equipment

Flexible operating hours

Complementary service

Women’s room

Free parking for all gym members

Childminding

Newness

Viable workers may leave the gym

Membership fees

High health care costs

Poor brand image

High staff turnover

Opportunities

Threats

Opening more gyms in the future

Growing population interested in fitness

Buy out a competitor

Growing economy

Increasing high health conscious population

New exercise trends

New government health care regulations

Decease in the number of competitors

Declining economy

Local competitors

Change in government regulations

Equipment shortage

Decreasing local population

Competitors Analysis

The three main competitors for Stayfit Gym are:

Fitness First – Miranda

Goodlife Gym – Menai

Contours – Ilawong

Fitness First

As fitness first being a well known Gym nationwide, it then has the major influence on Stayfit Gym. As Fitness First being the main competitor because they can offer better prices and more services, product and have more capital behind them and are able to take more risks than a newly established Gym like Stayfit. An advantage for Stayfit Gym is that Fitness First doesn’t not offer flexible contracts, like Stayfit Gym, as for example at Syatfit Gym we do not charge joining fees, as for fitness first do.

Goodlife Gym

Goodlife Gym is another competitor which also has an influence on Stayfit Gym for it being located nearby. It also influences Stayfit Gym as it is well known in the area, and has been open for a long period of time. This gives a reason why Stayfit Gym offers better and suitable pricing which will benefit those who are willing to lose weight for an affordable price.

Contours

Like any other competitor, Contours is also well known throughout Australia, as well as the local community. Unlike Fitness First, and Goodlife Gym, Contours is a circuit gym as well as an all ladies gym, this being one their weaknesses which benefits Stayfit Gym. Although, Contours offers those women who are not confident and comfortable working out in front of men the luxury and comfort to work out, this strength is a major disadvantage towards Stayfit Gym as the majority of women may prefer this environment.

Market Analysis

Stayfit offers everyone, no matter your age, anyone looking to loose weight; anyone looking to get fit, and anyone looking to stay fit! With Australia being the fattest nation on earth there is an ever more increasing need for easily accessible gyms with these facilities like Stayfit Gym who target and encourages people to exercise and get fit, as well as the opportunity to have fun.

As the main aim of this business is to overcome obesity, Stayfit Gym mainly targets those who are overweight, obese, and morbidly obese. Statistics show that the main reason why Australia’s decided to join a gym and take over a healthy life style is to loose weight and this is shown in the table below.

For further information visit the following website:

http://www.executiveresults.com.au/health-and-fitness-statistics.cfm

The Marketing Mix

Product

Price

Stayfit Gym aims to provide top quality and safe equipment, which benefit members in weight loss.

Stayfit Gym offers penetration and a discount pricing, as it is competing with other gym’s who offer the same facilities and services as Stayfit Gym but for a better price.

Discount pricing is offered for those who are students, and off-peak gym use, the prices reflect the quality of the equipment and service.

Place

Promotion

The upcoming Gym will be located on 15 Menai Road, Menai. The population of this community has grown by 5% each year for the past three years, giving Stayfit Gym a better opportunity to gain more members of the public and customers to join and become apart of the Stayfit family.

Stayfit Gym works to promote there services throughout advertising ad’s on local billboards, handing out flyers also by setting up stands in local centres. Stayfit also wishes to promote their gym through T.V commercials as well as radio broadcasting.

Market Segmentation

The market segmentations for Stayfit Gym customer consists of the following geographic, demographic and behavioural factors:

Geographical

The immediate target region of Stayfit Gym is Menai, Illawong, and Alfords Point.

As the population of these areas continue to increase, this will have a positive impact towards Stayfit.

Demographic

Stayfit Gym targets both males and females from 15years and over.

Income range of $35,000 – $75,000.

Behavioural

Recognises that they need to improve their fitness

Those who have recognised that they need to lose weight

Those who are willing to enjoy extreme sport

Marketing Strategies and Objectives

Marketing Objective

Marketing Strategy

Overtake competitors

Keep an update competitor profile

Offer better pricing to the public (6months)

Price level

Maintain a price level lower than competitors as then it will be harder for the competitor (4months)

Discounts

Offer a range of discounts (9months)

Online access to the gym

To build up an online website of the gym which will be easy for the members to access and also helps promote the business. (2months)

Equipment

To provide the gym with more equipment, and to improve facilities(12months)

Sales Force

Employ telemarketing staff (13months)

Product Analysis

Stayfit Gym provides individuals with the opportunity to exceed their fitness expectations, which are delivered through expert coaching, high-quality equipment, convenient scheduling and great exercise programs. The equipment division of Stayfit Gym offer the largest range of quality fitness equipment from the world’s leading brands, including:

Technogym

Cybex

Precor

Zest

Life Fitness

Equipment

Positives

Negatives

Cardio

Treadmills

Elliptical cross-trainers

Exercise bikes

Stair climbers

Summit trainers

Having a different range and variety of cardio equipment benefits Stayfit Gym, as having more facilities available for the public will then attract more people to join Stayfit.

A negative of cardio equipment is that when equipment brakes or is miss used, also safety issues, for example: falling off equipment, this can give a bad reputation for Stayfit.

Strength

Chest press

Biceps press

Triceps press

Shoulder press

Bench press

Lateral chest press

Leg press

Dumbbells

Torso rotation

Chin dip

Iso glute

Lateral chess press

Vertical Ab trainer

Rower

Having a wide range of strengthening facilities will also have a great benefit on Stayfit as other Gyms may not have the same equipment available.

A negative of strengthening facilities is that when one equipment brakes or is miss used, also safety issues, for example: falling off equipment, this can give a bad reputation for Stayfit.

Objectives and strategies

Stayfit’s primary goal is to create a community committed to best functional fitness.

Objectives

Strategies

Our monthly objective is to generate at least 20 new members.

This will be done through advertising Stayfit, also free weekly trials of the gym and

Stayfit aims to open and run a facility at full capacity within the first year with 150-200 members.

This will be carried out by providing new members better opportunities and pricing.

Better membership deals by the second year of operations

Offering on-peak and off-peak membership, this will be better for people who want to use the gym during hours when not busy. For example, during the day when school kids are at school.

To franchise Stayfit in other areas towards the further future

This will be done by upholding the right image and keep a good reputation for Stayfit.

To make people fit and healthy!

This will be done through providing the right exercises, staff and classes that will help the general public stay fit and healthy.

To make profit and pay off all debts within 1st two years of opening

This will be done by having more members entering the Gym, and with that money Stayfit will then be able to payoff debt

More classes available by 6 months of operations (zumba, urban dance, and etc…)

By hiring staff that are able to carry out these classes.

Provide the only fitness facility truly dedicated to solving the fitness needs of our customers

This will be done through providing the highest quality equipment available, constantly keeping our staff up to date on certifications, providing a clean and crowd-free gym.

Description of product/service

At Stayfit Gym we provide you with comfortable surroundings, with the latest facilities and equipment to facilitate your training and exercise needs. Stayfit also aim ensure that the members receive a fantastic exercise experience. Stayfit aims to provide the following classes/sessions free weights, kickboxing, personal training, cardiovascular, and group cycling; we also offer professional instruction, well-balanced and enjoyable workouts which focus upon strength gain, aerobic conditioning, weight loss and increasing fitness levels. Stayfit Gym also provides a women’s only room, including both cardio and strengthening equipment. Stayfit Gym also provides childminding, for those who have young children and want to achieve the ideal fitness levels.

Our services are directed at maximizing your health and fitness levels in a safe, productive and exciting environment to give you a fantastic health and fitness experience.

We also offer a range of drinks to freshen in between workouts, towels; also a wide range of protein shakes and supplements, Stayfit also offers free and convenient private parking for all members of the gym.

Pricing

NO joining fees or administration fees!

Free weekly trial pass for new members! $590

12 Months up front $590

12 Months off peak $540

6 months $350

3mothns $220

1month $75

10 day gym pass $60

Casual Visit $10

10% Discount for students Under 18 years old

Trading Hours

Monday to Friday 5am – 10pm

Saturday 7am – 7pm

Sunday & Public Holidays 8am – 5pm

Workout Timetable

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Sunday

6.00am

Body Pump

Body Balance

Body Pump

Fat Burner

7.00am

Body Attack

Body Combat

Body Balance

Spin

9.00am

Spin

1.00pm

Spin

Body Combat

Fat Burner

Body Pump

Body Attack

3.00pm

Kick Boxing

Kick Boxing

5.00pm

Fat Burner

Body Balance

Body Attack

7.00pm

Kick Boxing

Body Pump

Spin

Session/Class timetable available for members and general public:

Class Description

Body Pump Non-impact class created to shape and tone the entire body, using weights and barbells.

Body Attack High intensity strength, aerobics and stabilization exercises.

Fat Burner Standard high energy aerobic exercise.

Body Combat aerobics based on a variety of exercises, such as: Tai Chi, Karate, Boxing and Taekwondo.

Spin Calorie and fat burner cycling exercise.

Body Balance A class combining Yoga, Pilates and Tai Chi.

Kick Boxing Circuit kick boxing, using high energy boxing techniques and stations.

For those who are members of Stayfit Gym all classes are free, and for those who wish to take part of these classes pay $5 per class.

Staffing Requirements

The manager, who will also be the owner of Stayfit Gym (Maroutcha Hadwan), will be qualified to hold the following certificates:

Certificate in Fitness

Certificate in Personal Training

First Aid Certificate

Diploma in Fitness

It is preferred that the manager has prior experience in field, as Stayfit Gym is dedicated to provide a diverse range of programs suitable for all people.

Job Title

Quantity

Skills, Qualifications and Experiences

Receptionist

1

Computer skills

Communication skills

Social skills

First Aid Certificate

Child minding

2

At least 2 years experience prior too

Certificate in child care

Certificate in First Aid

Personal trainers

7

First Aid Certificate

Communication skills

Certificate in fitness

Certificate in Personal Training

Specialized in karate

Specialized in boxing

Specialized in aerobics

Specialized in cycling

Specialized in body building

Must have at least a year experience prior to working at Stayfit Gym, as we are dedicated to provide the public with the best of our ability.

Dieticians

2

First Aid Certificate

Must have at least 1-2 years experience

Certificate in dietician

Spotters

9

First Aid Certificate

Specialized in Yoga

Specialized in Pilates

Specialized in Tai Chi

Specialized in cycling

Certificate in fitness

Social skills

Must have at least a year experience

Financial Forecasts

Revenue Statement for Stayfit Gym Pty Ltd

For the period ending 01/08/2011

Cash Flow Statements

Cash Flow Statement for Stayfit Gym Pty Ltd

From period ended 01/08/2012

Opening Cash Balance $415,000.00

This projected cash flow statement shows that this upcoming business will be Surplus, as of the period ended 2012 whereas the closing chase balance was a greater amount of money than the opening cash balance.

Critically Review of the Plan and Process

Throughout this business task I managed to meet all deadlines and make sure everything was up to date. My weaknesses throughout this assignment was the Market Analysis and Financial Forecast, where as I was unsure how to complete both sections. In relation to Market Analysis, I feel that I haven’t covered all sections in this heading. For financial forecast I first started of with balance sheet, but i was unable to complete this section as my balance sheet was not balanced so I then chose to complete the cash flow statement and revenue statement, I also struggled to completed these two finical records.

Overall my progress within this assignment was satisfactory, and I am happy with my overall work, as I never knew I was capable to completing this task meeting the criteria.

Index

Description of Business & Ownership

2

Purpose of Plan

3

Situation Analysis

4-9

Swot Analysis

4

Competitor Analysis

5

Market Analysis

6 -8

Product Analysis

9

Objectives and Strategies

10

Description of Product/Service

10 -11

Pricing

11

Trading Hours

11

Class Timetable

12

Staffing Requirements

13

Financial Forecasts

14 – 15

Revenue Statement

14

Cash Flow Statement

15

Critically Review of Plan and Process 16


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