Assignment # 0183LA3
kamran.21700
BUSINESSIDEAASSIGNMNET.edited.docxRunning head: STINGRAY FITNESS BUSINESS PLAN 1
STINGRAY FITNESS BUSINESS PLAN 2
Stingray Fitness Company
Robert Brown
Florida International University
Administration of Fitness Operations
Professor :Valentine Zaharia
Stingray Fitness Company
The fitness and wellness industry has experienced a recent surge in demand. The industry is lucrative due to its ever-increasing popularity as more people become more obsessed with their health and body appearance. The fitness and wellness industry has a valuation of nearly $100 billion globally as of 2020 (Biron, 2019). It consists of sectors such as fitness, outdoor recreation, sports, and aquatic and community recreation. The fitness sector is the most valuable, with the global gym industry valued at $96.7 billion (Biron, 2019). The fitness industry has links with sectors such as the technology industry. Most notably is Google’s Fitbit. Fitbit manufactures equipment such as activity trackers used to track swimming, running, and cycling (Rowden, 2021). Consequently, the tech industry is integral to the fitness industry’s growth and its adaptability to changing market trends. The fitness industry is constantly, therefore, constantly adapting to changing market trends. It seamlessly incorporates new technology hence proving adaptable and future proof. My original business idea is to establish Stingray Fitness Company which will specialize in the sale of athleisure clothing, offer premium gym membership, and tailored home-based fitness programs.
Marketing Plan
After carefully evaluating the fitness industry nationwide, I discovered a desperate lack of companies selling athleisure clothing, premium gym membership, and tailored home-based fitness programs. Society has witnessed an increased focus on health and well-being (Bates & Danhoff, 2019). Social media platforms ran by social media influencers have exploded in popularity over recent years. Popular culture, such as in Hollywood films and in music videos, has featured fit and healthy celebrities, which in turn has shifted public opinion in favor of fitness industries. Scientific studies prove, beyond question or doubt, the advantages inherent of living healthy lives by engaging in physical activities and healthy eating. Consumers have experienced an immense growth of real wages and therefore have more disposable income. Consequently, they are more likely to spend their disposable income on non-essential goods and services such as premium gym membership. As a result of these developments, I decided to establish Stingray Fitness Company.
Situation Analysis
Three-quarters of the fitness industry market consists of youth aged between 18-35 yrs. The primary goods and services in demand are athleisure clothing and fitness programs. The demand stems from a recent surge in popularity of athleisure clothing among social media influencers and the acceptance of more informal clothing by society. The youth purchase more athleisure clothing per capita than all other age groups combined. Consequently, this group forms the Company's primary market segment. Premium gym membership will target consumers living in high-end areas along the coast and the capital city, indicating that the Company should set up most of its outlets in these areas. Most of the purchases of the gym membership are expected to be on impulse, placing great emphasis on compelling advertising and providing a strong point of purchase support. The Company did intensive research into determining where to source sturdy gym equipment and into customer service methods to ensure quality goods and services deserving of the price charged.
Market Analysis
Stingray Fitness Company will not face any direct competition nationwide. The market size for the fitness industry is expected to be worth $5m in the financial year starting June 2022. The annual market growth is forecasted to be 3% year-on-year up to the year 2024
Market Segment: The subgroup of the target market aged between 20-24 years is expected to purchase 50% more athleisure clothing per capita than the subgroup aged 25-34 years. Target consumers living on the coast are expected to purchase 80% more parts per capita than those living around the capital.
Consumer Behavior: Consumer tastes have changed with an increase in disposable income. Consumers are opting for the quality goods and services which they are keen to show off to indicate their wealth and status in society. Discounts and sales do not appeal to more buyers as the consumer decisions are not determined by the price paid. Consumers care greatly for superior quality and exclusivity and are willing to pay the price demanded of such high expectations. The Company will take advantage of this information to cater to its target market's tastes and demands.
Competitive Analysis: No existing companies compete for the same target audience; hence Stingray Fitness Company will function in a de facto monopoly.
Marketing Strategies: Stingray Fitness Company will function in a new market space and introduce new products. The Company will employ extensive advertising to bolster its brand recognition and invest in providing an excellent customer experience at the outlets.
Action Plan: The Company has the advantage of being the first of its kind in operation, enabling it to build customer loyalty. A distribution plan has been identified to gym equipment to outlets nationwide and achieves customer awareness, and a partnership is in the works with several television stations nationwide.
Financial Analysis and Expected Results: I expect a sales revenue of $850,000 in the first financial year and break-even in the second financial year.
Contingency Plans: If the Company falls short of the target sales revenue, the Company will allocate $50,000 more towards the brand advertising budget.
Sales Plan
A strategy has been laid out to identify sales targets and tactics for the business. The following steps have been laid out to help the Company meet its sales targets.
Sales Target: The Company has laid down the sales target for the fiscal year beginning June 1, 2021. The Company expects to achieve sales revenue of eight hundred and fifty thousand dollars within that period. Consequently, the Company should cover its operation costs and make a profit of three hundred thousand dollars.
Sales team: The Company has identified several well-known sales teams that have identified the best sales tactics to employ to ensure the sales revenue target is met. As advised by Bates & Danhoff (2019) some sales tactics that will be utilized include using social media influencers on various social media platforms to connect to potential customers, advertise company goods and services, ask for referrals, auditing client conversations, offering upgrade incentives to loyal customers, following up on each prospect, and investing in automation tools.
Budgeting and identifying steps to achieve targets: The Company has identified a budget to govern capital spending and outlines steps to achieve its goals. The steps for achieving the business goals include defining quantifiable goals that determine what the business wants to accomplish within a particular time frame (Bates & Danhoff, 2019). The Company will also set specific goals and endeavor to follow through with its targets. A deadline is set to indicate a full commitment to achieving the targets.
Periodic review of targets: Periodic review of set targets will ensure that they are maintained as a priority. Consequently, the Company will direct its time, energy, and attention towards achieving the set targets. A periodic review of goals will enable the Company to plot its progress and react accordingly (Bates & Danhoff, 2019). As a result, productivity will be increased, and the targets set will be accomplished within the period set.
Motivating the sales team: The Company will primarily earn revenue through sales. The sales team, therefore, plays an integral role in the prosperity of the Company. Given this relationship, the sales team's motivation will play an essential role in the Company's growth. If the sales team is unmotivated, it will fail to meet its goals and perform dismally. Motivation is done by providing them with the necessary resources, providing the sales team with feedback on their strengths and weaknesses, and offering them good pay by directly linking the commission structure to reward effort.
Identify sales tactics for the team: Sales tactics entail actions taken to deliver on the sales strategy and achieve the sales goals (Bates & Danhoff, 2019). They indicate the process the Company should use to move forward. Identified sales tactics include prospecting, where the salespeople will directly ask the customers for referrals just after making a sale. Sales presentations will be used to gather information on customers' preferences. The information collected from the customers is used to tailor the presentation to sell the products to the customers.
Customer Service Plan
Objectives
1. To achieve at least 90% customer satisfaction rating per client.
2. To incorporate new ideas into the customer service department.
SWOT Analysis
Strengths:
1. The Company has set aside enough budget for the customer satisfaction department.
2. The Company has hired a team of well-trained professionals to work in the customer satisfaction department.
Weaknesses:
1. The Company lacks the technology for a cargo tracking system to carry out deliveries to customers over long distances.
Opportunities:
1. The Company has identified a cargo tracking system to use
2. There is the availability of affordable Customer Relationship Management Software.
Threats
1. Dissatisfied customers post their discontent on social media, ruining the reputation of the brand.
Team
Stefano Binotto: Stefano Binotto will take the position of General Manager. He will oversee the Company's overall development and monitor its progress.
Claire Williams: Claire Williams will take the position of Customer Service Manager. She will be involved in carrying out the development plan's laid strategies and report directly to the general manager, Stefano Binotto.
Action Plan
Objectives: The Company plans to achieve a well over 90% customer satisfaction rating per client. To achieve this plan, the customer service manager has been assigned to enhance the customer buying experience while at our physical stores. The deadline for this action has been set to December 30, 2021. The progress she has made so far is upcoming. The customer service manager has been assigned to hire customer service representatives. The Customer Service Representatives will be tasked with taking complaints and questions from customers, giving customers information on the products and services offered by the Company, taking orders from customers and processing their returns, and helping customers understand the nature of their intended products on buying.
Budget:
|
Description |
Quantity |
Price |
Total |
|
Software license |
1 |
USD 15,000 per unit |
USD 15,000 |
|
Job advertisement |
1 |
USD 10,000 per unit |
USD 10,000 |
|
Website Development |
1 |
USD 6700 per unit |
USD 6700 |
|
Total Cost |
|
|
USD 31700 |
References
Bates, M., Danhoff, G. (2019). Health Finess Management Third Edition. Illinois: Human Kinetics Publisher.
Biron, B. (2019, September 3). Fitness has exploded into a nearly $100 billion global industry as more people become obsessed with their health. Business Insider. https://www.businessinsider.com/fitness-has-exploded-into-a-nearly-100-billion-global-industry-2019-9?IR=T
Rowden, A. (2021, January 28). 4 of the best Fitbits: Health benefits and uses. Medical and health information. https://www.medicalnewstoday.com/articles/best-fitbit
