- Internal Code :
- Subject Code : MRKT20052
- University : Central Queensland University Assignment Help Era is not sponsored or endorsed by this college or university.
- Subject Name : Marketing plan
Marketing Management and Digital Communications
Contents
Introduction.
Situation analysis
2.1 SWOT..
2.2 PESTEL..
2.3 Competitor analysis.
Customer analysis.
3.1 Segmentation.
3.2 Targeting approach.
3.3 Positioning approach.
Problem Statement
Objectives.
Marketing mix strategy.
6.1 Product
6.2 Price.
6.3 Place.
6.4 Promotion.
Campaign evaluation.
Budget allocation.
Conclusion.
References.
Executive Summary of Marketing Plan: Fitness Mirror
This report presents a marketing plan for the product of Fitness Mirror in Australia. The product is fitness-based involving the use of technology to match the modern needs of the customers. This marketing plan implements different tools and techniques. This includes situation analysis using SWOT, PESTEL and competitor analysis; customer analysis considering customer segmentation, targeting and positioning; marketing mix strategy; and campaign evaluation. The marketing plan also identifies problem statement and SMART objectives for them along with a budget allocation at the end of campaign evaluation. The situation analysis reveals the presence of a positive business environment in Australia which supports the fitness-tech idea behind Fitness Mirror. The analysis reveals different strengths and opportunities that can be promoted along with few weaknesses and threats that are to be improved upon or minimised. The plan also identifies multiple competitors including Peleton, Tonal and Hydrow Rower.
The customer analysis reveals different customer segmentation for Fitness Mirrors including “Losing it”, “Taking Shape”, “Health Requirements” and “Sports focus”. The target identifies as individuals who seek better control over health and health-associated illnesses along with those who can spend a small amount of time. Fitness Monitor positions itself to support these individuals with advanced, intuitive, interactive and modern fitness tech to aid them in the journey towards better health. The problem associated with the product identifies as limited awareness and knowledge in the customers which might influence acceptance. The plan also discusses three objectives for the product.
Marketing strategies for Fitness Mirror highlights strategies for product, place, place, price and promotion. The marketing plan also describes campaign evaluation for these four strategies using a discussion on their effectiveness measures, controls and also contingency plans for failures. The report presents a budget allocation with a six months execution timeline with effectiveness to be assessed using lead conversion rate, return on investment and cost per lead. More budget and skills and training improvement should be given to support the plan during contingencies.
Introduction to Marketing Plan: Fitness Mirror
Having fitness goals is critical for achieving greater health and well-being. Maintaining a healthy lifestyle is the panacea for not just physical health but also mental health. Therefore, it is suggested that people should engage in some form of activities on a daily basis even if it is for only thirty minutes. However, in this progressive world, people do not spend enough time on physical fitness which leads to a population with higher health risks and poorer quality of life. Additionally, there might be individuals who would prefer home gyms or workout at homes instead of going to a gym outside. One possible reason here could be lack of time. Another possible reason could be insecurity and fear of others and their opinions.
The US$100 fitness industry, still growing, ensures that people with such needs are also served. One such recent development has been the use of technological advancement to provide coaching and fitness regime for the clients. Mirror.co has developed a technologically advanced screen/mirror/glass to provide people with the opportunity to work-out at home. This report will focus on the development of a marketing plan which is based on the product ‘Fitness Mirror’. The plan will include situation analysis conducted using SWOT, PESTEL and competitor analysis. A customer analysis will also be done to present the customer segmentation, along with the targeting and positioning approach of the business. Additionally, other sections that will be discussed include a problem statement, marketing objectives, marketing mix strategy, campaign evaluation, and budget allocation.
Situation Analysis of Marketing Plan: Fitness Mirror
Situation analysis helps to evaluate the potential of a business in the internal and external operating environment (Blackwell & Eppler, 2014). SWOT, PESTEL and competitor analysis has been undertaken for situation analysis while considering the Australian market.
- SWOT
|
Strengths · Highly interactive and user-friendly · Expert fitness instructors · Connectivity with smart apps and fitness trackers · Elegant design and small footprint · Wide range of workouts to choose from · Product financing options |
Weaknesses · Language used in programs is specific to fitness enthusiasts · The language used for the sessions and interacting with the technology; supports English currently · Pricing · Cannot be used without electricity |
|
Opportunities · Increasing focus on fitness · Fitness experts and influencers · More languages to support diversity · Uses other than fitness such as therapy or discussions |
Threats · Competitors with similar products for fitness like Tonal and Peleton · Development of more fitness products in future which integrate fitness components with bigger screens · Lack of persistence and engagement by the customers |
- PESTEL
|
Political |
· Politically stable and sound governance (Australian Trade and Investment Commission [ATIC], n.d.a). · Secure and transparent business environment · Great emphasis on physical fitness activities by the government (Department of Health, 2019). · Government-led health promotion strategies including dissemination of useful information and activities (Australia.gov.au, n.d.b). |
|
Economic |
· 15th rank in the ease of doing business · Position in the global top five ranks on the Index of Economic Freedom (ATIC, n.d.a) · Strong annual economic growth (28th consecutive year) · 14th largest economy · 2.7% GPD growth predicted (ATIC, n.d.b). |
|
Social |
· Varied and broad landscape · Multiracial and multicultural nation · Sydney and Melbourne are Australia’s largest cities · Characterised as outward-looking, energised and innovative (Australian.gov.au, n.d.a). · 25,573,750 resident populations (Australian Bureau of Statistics, 2020). · Great education infrastructure with more than 1,100 institutions (Study in Australia, n.d.). · Government emphasises health and education for better living (Department of Foreign Affairs and Trade, n.d.). |
|
Technological |
· Known for its advanced technologies and innovation · IT spending forecasted to be $93 billion until 2019 (Gartner, 2018). · Increasing focus to improve the use of information and technology · Technology and Information Strategy 2019-2023 (Department of the Environment and Energy, 2019). · Great developments and launches in Fitness & Health Expo supporting overall health and fitness (Fitness Australia, 2018). |
|
Environmental |
· World’s sixth-largest country · Driest continent to be inhabited · One of the most diverse countries biologically (Australia.gov.au, n.d.c). · Unique plants, mammals, birds, and fishes · Managing bush fires is an existing challenge with a long history (Bush Heritage Australia, n.d.). |
|
Legal |
· Government-established laws for fair trading and security for customers · Privacy and anti-bullying laws · Employment laws supporting the employees · (Business.gov.au, 2019). · Businesses need to adhere to environmental protection laws · Compliance with policies for appropriate marketing (Business.gov.au, 2019). |
- Competitor Analysis
Competitor analysis for Fitness Mirror will help identify the different potential customers which can affect the market in the fitness industry. Moreover, it will help in the identification characteristics of the different products which can be used to develop marketing and promotion strategy for the Fitness Mirror (Gur & Greckhamer, 2018).
|
Competitors |
Product |
Base price |
Social media engagement |
Offers for new customers |
|
Tonal |
Digital weight machine along with adjustable arm |
Cost: US$2,995 Membership per month: US$49 (Tonal, n.d.). |
High (Instagram, Facebook, Twitter and YouTube) |
US$250 back on completing 30-day challenge |
|
Peloton |
Bike for home workouts |
Cost: US$2,245 Membership per month: US$39 (Peloton, n.d.). |
High |
30 day home trial |
|
Hydrow Rower |
Indoor rowing machine |
Cost: US$2,199 Membership per month: US$62 (Hydrow, n.d.). |
High |
30 days risk-free trial |
There is significant competition in the fitness industry which is using advanced technology to develop fitness and health-promoting products. Competitors like Tonal, Peloton and Hydrow Rower have fitness products aimed at customers looking to improve their health and fitness. From the competitor analysis, it can be seen that the prices of the products offered by the different companies are high. Fitness Mirror will use this in its pricing strategy. Moreover, there are different offers from companies to encourage sales. Fitness Mirror will also consider offers to encourage sales as its promotion strategy.
Customer Analysis of Marketing Plan: Fitness Mirror
Customer analysis has been provided to be highly useful to identify the needs of the customers. This will help in the identification of the target customers who are to be given high priority while the business aligns itself to focus its products and services at its customers (Tomczyk, Doligalski & Zaborek, 2016).
- Segmentation
Market segmentation for the customers has been done to identify different potential customer groups (Camilleri, 2017).
|
Losing it · These people have the goal of decreasing their weight · These people are generally overweight · Fear of attending fitness centres · Prime candidate as they require personal trainer’s help · High-income earners |
Taking shape · These are individuals interested to improve health and fitness · Affected by lack of time, possibly due to work · They are in look for programs and personal trainer which offer home-support · High-income earners |
|
Health requirements · These are people who have health issues · Exercise has been recommended by doctors · Infrequent engagement in fitness centres · Need help from personal trainers · High influence towards positive health from family · High-income earners |
Sports focus · These consumers have high involvement in sports · These are looking to improve overall fitness and strength for a chosen sport · They do not need personal trainers but can benefit from different programs · High earners |
- Targeting approach
The targeting approach for Fitness Mirror will identify the top priority customer segments. It will help to determine the potential growth of business associated with the influence of the customer segment (Andaleeb, 2016). Depending on the customer segments, the Fitness Mirror could be marketed to multiple segments with intelligent targeting approach. According to Farhud (2015), shifting to a healthier lifestyle, although difficult, has become a requirement, a necessity, for many due to their poor health and wellbeing status. Understanding this, the Fitness Mirror will be targeted to primarily the unhealthy people, mainly obese. These individuals often lack the will to go to gyms due to insecurity about their bodies. Moreover, these also include individuals who might be unable to go to gyms due to age-related body restrictions. For such people, home workouts are an effective way to lose weight and improve health. The second priority will be individuals who are workers and have less time to spend in gyms and, therefore, prefer home workouts.
- Positioning approach
As per Khan, Yusop and Baharudin (2018), the positioning of the products and services should be done using strategies which resonate with the requirements and needs of the customers. For people seeking better health and fitness goals at home, Fitness Mirror is the leader which delivers tech-savvy, highly engaging, intuitive and interactive fitness mirrors so that they are able to improve their health and physical outlook because Fitness Monitor is focused on providing specialised programs and expert trainers to suit health and fitness needs of customers with healthier goals.
Problem Statement for Marketing Plan: Fitness Mirror
Statement of problem: Limited acceptance rates of the product emerging from fear of tech and lack of information.
Description: Fitness Mirror is a start-up aiming to deliver a fitness-based mirror to people who want to improve their physical outlook and gain better health and wellbeing. Lacking any physical equipment attached to the product, like products from competitors, the Fitness Mirror is a mirror screen which provides fitness support. The people’s lack of knowledge about the functionality of the product will pose a significant challenge.
Risk: The limited awareness of the new product in the Australian market in 2020 will discourage the customers from purchasing the product of Fitness Mirror. This will hurt the product sales unless the customers’ awareness about the product and associated benefits and usability is increased through effective marketing.
Objectives of Marketing Plan: Fitness Mirror
To achieve goals completely and effectively, these should be SMART in that they should be specific, measurable, attainable, relevant and also time-bound (Ogbeiwi, 2017). SMART goals
- To increase brand awareness by hiring 20 social media influencers within 2 months.
- To increase the leads from the website by 30% by the end of six months through social media campaigns and promotion.
- To sell 1500 units of the Fitness Monitor within the three months of the launch of the product.
- Marketing mix strategy
The marketing mix is associated with the marketing strategy of the Fitness Mirror including strategies for gaining an advantage in the market and includes aspects like the product, price, place and promotion (Badi, 2018).
- Product
The product is technological marvel full HD 40” display with a carbon steel frame. The display has a 178 degrees wide viewing angle support for high-quality visual quality at different angles with the dimension of 52x22x1.4 cubic inches. The Fitness Mirror has embedded omnidirectional microphone along with two 10-watt stereo speakers with high-fidelity. The product has a sleek design with a front-facing camera having a 5-megapixel lens. It is state of the art technology with ethernet and dual-band WIFI connectivity. Fitness Mirror provides its users with interactive and fun experience while being controlled by the companion app available for both Android and iOS and can also synch with Apple Watch or Bluetooth heart rate monitors. The product weighs around 32 kg and will be installed on a low profile, minimalist and adaptable carbon steel stand or wall mount. Other products alongside the Fitness Mirror include fitness bands, heart rate monitor and cleaning kit for the Fitness Mirror.
- Price
The competitor analysis that the prices of the products are relatively high at more than US$2,000 for all the different products. The price of Fitness Mirror, therefore, will be placed strategically lower than this amount. Moreover, since the company is a new entrant to the health and fitness industry in Australia, a different pricing strategy approach has to be used to penetrate the market also known as penetration pricing strategy (Toni, Milan, Saciloto & Larentis, 2017). Although the product is aimed at high-income earners who are previously able to afford at minimum US$2,000 on such fitness products, a decrease price will help to penetrate the market and attract more customers. The price will then be regulated after successful penetration. The estimated price will be US$1,500 with US$40 membership-fee every month.
- Place
Fitness Mirror will be sold through multiple showrooms in Australia. The showrooms will be available in cheap suburbs and will be personal to bring down the expenses on production costs of the product. Moreover, Fitness Mirror will be sold directly through its showrooms as well as multiple dealers at the same prices. So, multiple distribution methods will be ensured. The fitness monitors will also be sold through its website with the aim to maximise sales opportunity from online spacing only. The possible showroom locations include Penrith and Campbell Town with cheaper business costs.
- Promotion
Fitness Monitor will be promoted using a company website along with the use of social media networking sites. Additionally, help will be taken in the form of media influences and PR events like sports festivals and associated production promotion. Different social media channels will be considered for promotion and marketing such as Instagram, Twitter, Facebook and Youtube. Celebrity power will also be used. Through the implementation of the promotion strategy, better customer awareness and acceptance levels will be reached. Introductory offer for 2020 will be launched for customers to get an additional US$300 off on purchase in the form of accessories and membership subscription.
Campaign Evaluation for Marketing Plan: Fitness Mirror
Campaign evaluation of the marketing strategy:
a. Product
- Effective measure – Increased product awareness
- Control measure – Considering all the important aspects of the available products
- Contingency actions – Ensure up-to-date product catalogue with the latest incorporated design changes
b. Price
- Effective measure – Customers are satisfied with prices; good sales
- Control measure – Monitoring the influence of product’s price change on sale; base price on the market performance
- Contingency actions – Offer lucrative and enticing offers to attract customers
c. Place
- Effective measure – More sales through showrooms; increased attraction
- Control measure – Considering all the important aspects of the available products
- Contingency actions – Survey better attraction spots and cheaper locations
d. Promotion
- Effective measure – Successful conversion of leads; increased customer engagement
- Control measure – Focus on social media promotion
- Contingency actions – Increase promotion events; more budget for activities
Budget Allocation
|
Description |
Cost |
|
Traditional marketing media including billboards, news and magazines |
US$19,000 |
|
Online promotion including website development, ads promotion and social media promotion |
US$40,000 |
|
PR events |
US$91,000 |
|
Total |
US$150,000 |
The marketing plan will be executed in a span of six months where its effectiveness will be measured through cost per lead, return on investment, lead conversion rates and their sources. The evaluation of the effectiveness of sales will help in devising a better strategy for regulating the marketing plan to achieve better results (Doshi, Connally, Spiroff, Johnson & Mashour, 2017). This can include prioritising effective plans and boycotting ineffective ones. This will also be a contingency plan. Better budget can be allocated with training and skills improvement for the sales department for better sales and marketing success.
Conclusion on Marketing Plan: Fitness Mirror
A marketing plan has been presented in the report for the business of Fitness Mirror. The Fitness Mirror, a fitness technology, aims at promoting improved physical fitness and health for people with needs of working-out at home due to body-weight issues, insecurity and lack of long amounts of time. The situation analysis revealed a positive response to the business environment in Australia with an obvious threat from the competitors in the operating environment of fitness-related technology. The blooming industry of health and focus is a positive aspect of the business. Health is highly important for a better quality of life as people age. Not engaging in physical activities should not be practised. With the marketing strategies suggested Fitness Mirror will be able to enter the market and perform well, directing its customers to better health and wellbeing.
References for Marketing Plan: Fitness Mirror
Andaleeb, S. (2016). Market segmentation, targeting and position. Strategic Management in Asia, 179-207.
Australia.gov.au. (n.d.a). Health promotion. Retrieved from https://www.australia.gov.au/information-and-services/health/health-promotion
Australia.gov.au. (n.d.b). Our country. Retrieved from https://www.australia.gov.au/about-australia/our-country
Australia.gov.au. (n.d.c). Our natural environment. Retrieved from https://www.australia.gov.au/about-australia/our-country/our-natural-environment
Australian Bureau of Statistics. (2020). Population clock.
Australian Trade and Investment Commission. (n.d.a). Business. Retrieved from https://www.austrade.gov.au/International/Invest/Why-Australia/Business
Australian Trade and Investment Commission. (n.d.b). Robust economy. Retrieved from https://www.austrade.gov.au/International/Invest/Why-Australia/robust-economy
Badi, K. S. A. (2018). The impact of marketing mix on the competitive advantage of the SME sector in the Al Buraimi Governorate in Oman. SAGE Open, 8(3).
Blackwell, R., & Eppler, D. (2014). An approach to strategic situation analysis: Using models as analytical tools. The Journal of Global Business Management, 10(1).
Bush Heritage Australia. (n.d.). Our challenges. Retrieved from https://www.bushheritage.org.au/who-we-are/our-challenge
Business.gov.au. (2019). Legal essentials for business. Retrieved from https://www.business.gov.au/Planning/New-businesses/Legal-essentials-for-business
Camilleri, M. A. (2017). Market segmentation, targeting and positioning. Travel Marketing, Tourism Economics and the Airline Product, 69–83.
Department of Foreign Affairs and Trade. (n.d.). Education and health. Retrieved from https://dfat.gov.au/aid/topics/investment-priorities/education-health/Pages/education-and-health.aspx
Department of Health. (2019). Australia's physical activity and sedentary behaviour guidelines and the Australian 24-hour movement guidelines. Retrieved from https://www1.health.gov.au/internet/main/publishing.nsf/Content/health-pubhlth-strateg-phys-act-guidelines
Department of the Environment and Energy. (2019). Technology and information strategy 2019-2023. Retrieved from https://www.environment.gov.au/about-us/publications/technology-information-strategy-2019-23
Doshi, A., Connally, L., Spiroff, M., Johnson, A., & Mashour, G. A. (2017). Adapting the buying funnel model of consumer behavior to the design of an online health research recruitment tool. Journal of Clinical and Translational Science, 1(4), 240-245.
Farhud, D. D. (2015). Impact of lifestyle on health. Iran Journal of Public Health, 44(11), 1442-1444.
Fitness Australia. (2018). Futuristic fitness is a reality at this year’s fitness & health expo. Retrieved from https://fitness.org.au/articles/business-news/futuristic-fitness-is-a-reality-at-this-year-s-fitness-health-expo/30/958
Gartner. (2018). Gartner forecasts IT spending in Australia to grow 3.5 percent in 2019. Retrieved from https://www.gartner.com/en/newsroom/press-releases/2018-10-31-gartner-forecasts-it-spending-in-australia-to-grow-3-5-percent-in-2019
Gur, F. A., & Greckhamer, T. (2018). Know the enemy: A review and agenda for research on competitor identification. Journal of Management, 45(5), 2072-2100.
Hydrow. (n.d.). Hydrow the live outdoor reality rower. Retrieved from https://hydrow.com/
Mirror. (n.d.). The Mirror. Retrieved from https://www.mirror.co/shop/mirror
Ogbeiwi, O. (2017). Why written objectives need to be really SMART. British Journal of Health Care Management, 23(7), 324-326.
Peleton. (n.d.). Choose your bike experience. Retrieved from https://www.onepeloton.com/shop/bike
Study in Australia. (n.d.). Australia education. Retrieved from https://www.studyinaustralia.gov.au/english/australian-education
Tomczyk, P., Doligalski, T., & Zaborek, P. (2016). Does customer analysis affect firm performance? Qualitative evidence from the Polish insurance market. Journal of Business Research, 69(9).
Tonal. (n.d.). Tonal. Retrieved from https://www.tonal.com/product/tonal/
Toni, D. D., Milan, G. S., Saciloto, E. B., & Larentis, F. (2017). Pricing strategies and levels and their impact on corporate profitability. Revista de Administração, 52, 120-133.
Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Marketing Management Assignment Help