Business analysis

Business analysis

Competitive edge

The competitive edge of the gym is the conducive and friendly environment that will be created in the facility. Competition in the fitness industry is stiff because fitness is practiced in different areas apart from a gym, ranging from basketball courts, recreation sports centers, and even videos that people watch and work out at home. However, with the increasing epidemic of obesity that is happening in the United States, reaching out to people through a small start of a gym is critical. There is sufficient demand for gym facilities in Fort Wayne as it is equally affected, like other regions of the United States. Thus, there will be a uniquely designed obesity reduction sector, which will encourage more people to come out confidently and enhance healthy lifestyles. Becoming more specialized is the key determinant that will enable the facility to gain a competitive advantage. Offering unique services and providing a wide range of fitness services professionally will attract more members. The management will focus on delivering exceptional group and personal training services in a conducive and positive atmosphere. The gym will have adequate work out rooms, which will include washrooms. Despite the dominance of the market by giants such as extreme fitness and good life fitness, individuals are seeking for unique fitness services whereby they are searching for alternatives to achieve physical fitness. The gym will, therefore, have an opportunity to explore all the alternatives in the customer preference list. Being a small gym, the company aims at reaching out to the low and average salaried people, who in normal circumstances, cannot afford a gym membership. This group is the most affected by obesity due to excessive consumption of junk food, and therefore, professional coaching is required for their fitness. This will form a strong foundation for the facility, which will improve its reputation.

Marketing strategy

To win competitive advantage and build a positive reputation for the gym, market strategy shall incline to the following.

Customer services

The use of proper language when serving all types of customers is critical. This will enable the management to identify loyal customers faster. Also, an online survey will be conducted on gym users where questionnaires will be sent to the target group. The respondents to the survey and the results will be used to analyze the market. The preferences of the target group will be identified from the analyses to enable to organization align the needs to its goals and mission.

Cost

For the business to succeed, there is a need to keep the costs low to attract many gym users. Since the company is targeting to have a professional team, the sessions of training might be many, and therefore, there should be a reasonable cost to maintain customers. In the first month, the gym will offer free training sessions to attract more customers.

For a start, the gym will be marketed via social media platforms, which include Facebook, Twitter, Instagram, and also through the use of advertising flyers. Further, the trainers of the gym will be required to wear t-shirts with the gyms logo during their training sessions. This will arouse curiosity to other gym-goers and get interested in the facility. With time, loyal customers can be awarded the gym t-shirts, which will help in spreading the news about the facility through word of mouth and seeing. These less expensive means of marketing will help in minimizing the cost while creating a good name and an exposure for the new facility.

Sales strategy and sales forecast

The facility will use inbound sales as the primary strategy. In this strategy, the data of customers and service providers are captured to create a seamless experience (Saarinen, 2019). Continuous surveys will be conducted to members to enhance retention and spread testimonials to potential customers. Also, benchmarking will be conducted regularly to local competitors to learn about their strengths and weaknesses and generate proper closing ratios.

Further, the facility will use the front desk as a selling vehicle for new and existing customers. All assistance needed will be provided in the area with immediate effect. Besides, the management will implement a formal plan for communicating with existing customers and encourage early membership renewal. This will enhance increased customer retention.

The management of the gym anticipates that sales will be slow in the first two months of operation. his will Tbe caused by the ‘first-month free training’ marketing strategy. Afterward, the sales will increase as members will have increased, and they will pay for their membership fees. The following chart shows the forecast for sales in the first 12 months.

Figure 1: First-year monthly sales; Gym management.

The capital required at the start of the business will be much higher than the revenues generated in the first two months. However, by the end of the third month, operation costs will be low, and the facility will begin to gain benefits that will enable it to cover the deficit made in the beginning.

Saarinen, V. (2019). Increasing sales with inbound marketing. John Wiley & Sons.