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Bounce Fitness Corporate Marketing Plan
Executive Summary
Bounce Fitness will serve the corporations in the city centres of Brisbane, Sydney and Melbourne,
helping them to become more productive, while lowering their overall costs with innovative wellness
programs and strategies.
Bounce Fitness is based on two simple facts:
1. Healthy employees are more productive than chronically ill employees.
2. It costs less to prevent injuries or illnesses than to treat them after they occur.
Traditional endeavours to corporate health care are quite reactive. Corporations wait until after staff
have been ill or injured, and then pay for the necessary treatments. The Bounce Fitness approach,
emphasises prevention and good health promotion, and is much more proactive. At Bounce Fitness, we
tie worker productivity directly to the health care issue. We believe that traditional approaches to the
current health care crisis are misdirected.
Bounce Fitness contends that by helping employees change their behaviour patterns and choose
healthier lifestyles, the health care costs to corporations will be considerably reduced through increased
staff productivity, reduced absenteeism and turnover, reduced worker’s compensation claims and a
healthier, more motivated staff.
Current economic and demographic changes will make health care issues worse. The environmental
factors and the local competitive situation is a clear message to Bounce Fitness. The time is right for a
Bounce Fitness initiative.
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Situation Analysis Bounce Fitness began in 2001 in Cairns, Queensland. The business model has been well received and
resulted in expansion to Brisbane, Sydney and Melbourne. Marketing is very important to maintain
growth and market penetration. In addition to offering fitness facilities for corporations, Bounce Fitness’
main activity is the creation and implementation of wellness programs. The basic market need is the
reduction of corporate costs and the increase in employee efficiency that can be achieved through long-
term wellness programs.
Market Summary
Bounce Fitness possesses good information about the market and knows a great deal about the common
attributes of the prized and loyal customers. This information will be leveraged to better understand who
is served, their specific needs, and how Bounce Fitness can better communicate with them.
Target Markets
Market Analysis
Current Year 1 Year 2 Year 3 Year 4
Potential Client Growth CAGR
Corporate Employees 35% 9,876 13,333 18,000 24,300 32,805 35.00%
Regular Clients 15% 5,924 6,813 7,835 9,010 10,362 15.00%
Other 0% 0 0 0 0 0 0.00%
Total 28.57% 15,800 20,146 25,835 33,310 43,167 28.57%
Market Demographics
The profile for Bounce Fitness’ customers consists of the following geographic, demographic, and
behavioural factors:
Geographic
The immediate geographic targets are the cities of Brisbane, Sydney and Melbourne.
A 35 mile radius is in need of the services.
The total targeted population is 15,800 employees.
Corporate Employees
Regular Clients
Other
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Demographic
51% male : 49% female
The individual income range is $38,000-$75,000
67% of the customers are single, 33% are married
Of the regular clients, 43% have completed some undergraduate study
Of the corporate customers, 83% have completed some undergraduate study, 16% have
undertaken post graduate study.
Behavioural
The target population recognise the need to have physical activity in their lives
They have incorporated some form of exercise program in their daily / weekly routine for the
last several years
They are happy to make use of fringe benefits that are offered by their employer as part of their
compensation package.
Market Needs
Bounce Fitness is providing their customers with a health care cost management program for employees
that will increase employee productivity and decrease overall business costs. Bounce Fitness seeks to
fulfil the following benefits that are important to their customers:
Customisation: Bounce Fitness will offer a totally customised solution for each company as well as each employee within the company.
Convenience: Clients will not use the service if it is not convenient. Bounce Fitness recognises this and strives to make their services as convenient as possible for the targeted client groups.
Result-oriented strategy: Bounce Fitness will need to improve a company’s bottom line in order to attract and maintain customers. While Bounce Fitness will strive to address all of their
clients’ needs, the reality is that they must indeed provide significant value for the companies
themselves in order to grow their market share.
Market Trends
There are two significant market trends in the last five years.
Increased use of fitness facilities on behalf of individuals. Exercising and ‘working out’ has become
a more mainstream activity in Australians’ lives over the last decade. Five to ten years ago there
were widespread reports about an impending health crisis - obesity. Australians, relative to their
Western counterparts have higher incidents of obesity. To a large degree, this is correlated to
Australia’s unhealthy diet of fast food, and generally poor food choices, especially fried foods.
The poor diet is not the only factor however. Australians were fairly inactive, with only 19% of
people aged 20-40 exercising three times a week. Luckily, that has changed over the last 10
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years. The percentage of active people has increased to 43% since 2002. More and more people
are going to the gym after work or are incorporating some sort of outdoor activity into their daily
routine.
The incorporation of fitness memberships within the ‘basket of benefits,’ are now a part of the
total compensation package. As fitness memberships have become a more common element
in the working Australia’s lives, companies have come to incorporate membership as part of
their benefit package for employees. This has occurred for at least two reasons. One reason is a
flexible method to compensate employees. The second reason is that it has a positive effect on a
company’s bottom line. Study after study supports the contention that a physically fit employee
is happier, healthier, and more productive. For no other reason, offering fitness club memberships
to employees is a smart cost-benefit decision.
Market Forecast
Market Growth
Important demographic changes are taking place in Australia that point to the importance of worker
productivity in coming decades.
16 million new jobs will be created by the year 201X, but there will only be 14 million workers to
fill them.
In 2000, women comprised one-third of the work force, a ratio that increased to one-half by 201X.
An estimated 80 per cent of jobs to be filled in the immediate future will require more than a high-
school education. Only 74 per cent of Australians, however, finish high school, and only 67 per
cent graduate with adequate skills.
The number of skilled workers available to fill new jobs is decreasing, meaning that employers are
facing more severe competition for labour. Thus, the health and productivity of each employee
becomes crucial to a company’s success.
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
2003 2004 2005 2006 2007
Corporate Employees
Regular Clients
Other
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The following quantitative information has supported explosive growth in the health wellness program
industry. The last five years has seen a 9% growth rate and the next five years is expected to achieve
a 7% growth rate.
Target Market Growth
SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the company, and
describes the opportunities and threats facing Bounce Fitness.
Strengths
Results-oriented approach to attracting and maintaining customers
A well-researched, detailed health wellness program with a long-term focus
Intensively trained staff.
Weaknesses
High costs associated with customised, personal service
The inability to work on a high volume business model
Significant costs involved in attracting a large corporate client
Opportunities
Potential to expand within a growing market
A large increase in clients if a single corporate company takes up the Bounce FItness’ program
The ability to leverage future quantitive analysis that supports the contention that long-term
wellness programs have a significant, positive impact on the company’s bottom line.
40.00%
30.00%
20.00%
10.00%
0.00%
C o r p o r a t e Employees
Regular Clients
Other
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Threats
Lack of immunity to an economic downturn
Potential competition from larger, well established competitors
A change in society where the individual begins to take far more responsibility for his/her health
maintenance.
Competition
The three main competitors for Bounce Fitness are:
Community fitness programs and school facilities which appeal to lower-income families and/
or students who want accessibility and affordability from fitness facilities
Forever Fit Gym services which targets motivated and dedicated individuals who workout five
to seven times per week
Better Bodies which focus on for casual fitness-seekers who do not work out with a high
intensity but still desire the status and recognition of belonging to a fitness centre.
Service Offering
Bounce Fitness provides wellness strategies / programs for businesses in the main business centre of
the cities. A wellness strategy is a long-term effort, combining both health-promotion and exercise-
related activities designed to facilitate positive lifestyle changes in members of a company’s work force.
Bounce Fitness will work with a company’s senior management to help it develop a mission statement
for its wellness program. The client company’s employees will undergo a health-risk analysis, following
which each employee will be given the opportunity to meet with a health professional to design a
personalised health program.
Finally, Bounce Fitness will provide employee progress reports to senior management with which to
carry out the incentive program and generally monitor changes in the behaviour of its workforce.
Keys to Success
Corporate Fitness’s keys to success are:
Marketing services to companies and individuals
Recruitment of experienced companies and individuals
Dedication and hard work by the founder
Raising productivity
Lowering overall costs.
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Critical Issues
Bounce Fitness faces several critical issues. It needs to:
Sign up a sufficient number of medium-sized companies. It is more cost effective for them to
service a couple of medium-sized companies than many small companies.
Continue to drive down the costs associated with serving a customer.
Marketing Strategy Bounce Fitness will begin by targeting small to medium-sized businesses in the CBDs of Brisbane,
Sydney and Melbourne. The first task is to convince senior executives of the benefits and needs of
wellness programs. This will be accomplished by aggressively pursuing interaction and relationships
with business professionals who would profit from using this service. Once a strong image is established,
Bounce Fitness will use similar strategies to market its services to larger corporations in the CBDs of
Brisbane, Sydney and Melbourne and then investigate other areas of expansion.
Mission
The Centres will serve the community with quality, comprehensive, unique, and distinctive health
programs and services. Staff will expand the preventive services offered while improving the quality
of life among participants through health and fitness services using state of the art equipment and
practices. These programs will reflect members’ needs and be financially viable for all stakeholders.
Marketing KPIs
1. Generate a 10% yearly increase in sales
2. Increase market penetration every quarter
3. Continue to cultivate Bounce Fitness’ image as the premier long-term wellness program provider.
Financial Objectives
1. Decrease customer acquisition costs by 4% every two quarters
2. Lower the cost of service delivery by 1% a quarter
3. Hold spending, as a percentage of sales, at a steady rate.
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Target Markets
The market for Bounce Fitness is not particularly segmented. Potential customers include all CBD
businesses that offer their employees some type of medical benefits, are experiencing escalating health
care costs, and wish to more effectively manage those costs.
Corporate Fitness, however, segments its services for individual organisations. Bounce Fitness works
with senior management to develop mission statements and provide incentive plans, and with employees
to design personalised health and fitness programs.
The targeted customers are corporate employees.
Positioning
Bounce Fitness will position themselves as the most effective wellness strategy and program developer.
This positioning will be supported by statistics indicating an increase in worker productivity and a
decrease in business operation expenses from the implementation of corporate wellness programs.
Strategy Pyramids
The single objective is to position Bounce Fitness as the most proficient wellness program provider in
the Brisbane, Sydney and Melbourne CBD areas. The marketing strategy will seek to develop customer
awareness regarding the services offered, develop the customer base, and work towards building
customer loyalty.
The message that Bounce Fitness seeks to communicate is that they can have a dramatic effect on the
bottom line. This message will be communicated through various methods. The first method will be the
production and disbursement of printed materials. The printed materials will describe all of the services
offered and will give prospective customers some insight into Bounce Fitness’ past successes.
Bounce Fitness will also rely on presentations to company’s HR departments. These presentations will
allow Bounce Fitness to personally address any concerns or ‘pains’ that companies have and indicate
how a wellness program / strategy can help service their needs.
Bounce Fitness will also rely on advertisements popular in business magazines for sale in Brisbane,
Sydney and Melbourne to increase visibility and interest in Bounce Fitness’ services among companies
based in those cities. Lastly, Bounce Fitness will use its website as a way to disseminate information.
Marketing Mix
Corporate Fitness’s marketing mix is comprised of the following approaches to pricing, distribution,
advertising and promotion, and customer service.
Pricing: Prices for using Corporate Fitness’s services are comparable to those of higher-end fitness centres. An employee choosing to utilise a Bounce Fitness centre will pay a $100 monthly
fee. For each employee enrolled in the general wellness program, regardless of whether or not
they use the fitness facility, the employer will pay $150 annually. The prices reflect the quality
of the equipment and service.
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Distribution: This will occur both at the company’s worksite as well as at Bounce Fitness’s facilities.
Advertising and Promotion: Printed material, presentations, advertising in industry specific journals and a comprehensive website will be used in the membership drive and to promote
awareness of the services on offer.
Customer Service: Bounce Fitness will operate on the principle that it is imperative to achieve total customer satisfaction if the business is going to succeed.
Marketing Research
Two types of market research were used when Bounce Fitness was collecting market data. The first
type of research was focus groups. The focus groups were collections of seven to nine people who
were asked a series of predetermined questions with the responses recorded and discussed among
the group members. In addition to the pre-established questions, there was a free-flow discussion
format toward the end of the focus group that provided flexibility in allowing the participants to share
information and insights with Bounce Fitness.
Additionally, questionnaires were used to collect market information from prospective corporate
customers. The questionnaires were submitted to a total of 100 HR professionals. The response rate
was 43%, higher than expected. The validity and usefulness of the questionnaire was ensured by
employing a graduate statistics student to develop the questionnaire. Overall, both forms of primary
market research were helpful in providing insightful information. This research confirmed many already
held assumptions as well as introduced several valuable perspectives that Bounce Fitness had not
considered.
Financials This section provides a financial overview of Bounce Fitness as it relates to the marketing activities.
Bounce Fitness will address break-even analysis, sales forecasts, expense forecasts, and how they link
to the marketing strategy.
Break-even Analysis
The break-even analysis indicates that $16,667 will be needed to reach the break-even point.
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Monthly Revenue Break-Even $10,101
Assumptions
Average Percentage Variable Cost 10%
Estimated Monthly Fixed Cost $10,000
Sales Forecast
The following chart and graph illustrates the sales forecasts for the coming year.
$15,000
$10,000
$5,000
$0
($5,000)
($10,000)
$0 $4,000 $8,000 $12,000 $16,000 $20,000
Monthly break-even point
Break-even point = where line intersects with 0
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Corporate Employees
Regular Clients
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Sales Year 1 Year 2 Year 3
Corporate Employees $298,783 $389,776 $455,678
Regular Clients $242,077 $288,739 $333,890
Total Sales $540,860 $678,515 $789,568
Direct Cost of Sales Year 1 Year 2 Year 3
Corporate Employees $29,878 $38,978 $45,568
Regular Clients $24,208 $28,874 $33,389
Subtotal Direct Cost of Sales $54,086 $67,852 $78,957
Expense Forecast
The expenses forecast will be used as a tool to keep Bounce Fitness on target, and provide indicators
when modification or corrections are needed for the implementation and maintenance of the market
plan.
The marketing expenses will be highest during the first year of expansion, when there is likely to be
increased usage of fitness facilities. The expenses will settle a bit during the second and third year.
Monthly Expense Budget
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Pamphlet Production
Website Production / Maintenance
Other
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Monthly Expense Budget
Marketing Expense Year 1 Year 2 Year 3
Pamphlet Production $1,400 $1,200 $1,000
Website Production / Maintenance $9,200 $8,500 $8,500
Other $14,000 $12,000 $9,250
Total Sales and Marketing Expenses
$24,600 $21,700 $18,750
Percent of Sales 4.55% 3.20% 2.37%
Controls The purpose of Bounce Fitness’ marketing plan is to serve as a guide for the organisation. The following
areas will be monitored to gauge performance:
Revenue: monthly and annual
Expenses: monthly and annual
Customer satisfaction
Wellness program effectiveness with each company
Implementation
The following milestones identify the key marketing plan programs. It is important to accomplish each
one on time and on budget.
Adver tising Star t Date End Date Budget Manager Depar tment
Advertising Campaign #1 1/1/201X 30/06/201X $8,000 GM Marketing Marketing
Advertising Campaign #2 1/7/201X 31/12/201X $6,000 GM Marketing Marketing
Other
Total Advertising Budget $14,000
PR Star t Date End Date Budget Manager Depar tment
Pamphlet Completion 1/1/201X 1/3/201X $1,400 GM Marketing Marketing
Other
Total PR Budget $1,400
Direct Marketing Star t Date End Date Budget Manager Depar tment
Marketing Plan Completion 1/1/201X 1/2/201X $0 GM Marketing Marketing
Other
Total Direct Marketing Budget $0
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Web Development Star t Date End Date Budget Manager Depar tment
Marketing Plan Completion 1/1/201X 15/03/201X $9,200 GM Marketing Marketing
Other
Total Web Development Budget $9,200
Other
Total Other Budget $0
Total $19,450
Marketing Organisation
General Manager will share responsibility for the marketing activities with Centre Managers’ where
appropriate.
Contingency Planning
Difficulties and Risks
Problems developing a sufficiently large client base
Significant economic downturns.
Worst Case Risks Include
Determining that the business can no longer support itself
Having to liquidate equipment to cover liabilities.
