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Case Study Big Boys Gym Marketing Essay

Paper Type: Free Essay Subject: Marketing
Wordcount: 2726 words Published: 1st Jan 2015

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The gym will be located on a main road in Revesby, with good parking area surrounding the gym. The gym has no reputation yet but I plan on having a good reputation before it even opens by having good advertisements and famous promoters from sporting stars to body builders.

The business is in the retail sector as it provides gym equipment to people to use. The Prime function of the business is to provide gym equipment and facilities to people and help them achieve their physical goals. The gym offers many new equipment product and facilities, which include free weights, machine weights, cardio machines, bags, drinks, clothing etc.

Purpose of the Plan

The main purpose of a plan is to provide the planners of the gym clear instructions, and show all business goals and to help collect ideas for a better gym.

Also failing to plan is planning to fail.

The goals of the gym would be social, financial and environmental goals

Financial goals: increase the owner’s wealth through increased market share, increased level of cash flow and to maximise profits.

The social goals that the gym would like to achieve would be good service to customers that use the facilities, helping the community in anyway possible, some ideas are through sponsorships of local teams and helping out schools by allowing them access to the gym and use the facilities that the gym provides.

Environmental goals that the gym would like to achieve would be to recycle any waste that can be recycled, to minimise the wastage of electricity when able to, install solar power and to save paper, plastic and anything that can be saved by not overusing.

Opportunities: not many gyms in the area, cheap advertisement, cheap area to start business, big warehouse to start gym,

Threats: Other competitors (fitness first) that are not too far from my location, cheaper prices of competition, advertisement not working to the advantage of the business because viewers didn’t like it.

Business Objectives and Strategies

The objectives of the gym are to try to minimise the weaknesses that the gym has and working on them to eliminate it as a weakness and also work on the strengths to show the customers what we have available to them to benefit them that would attract more customers and a good reputation.

The main objective would be to maximise profits and to build a good reputation with everyone that knows about the gym so that way more people would like to join the gym.

All these factors have to be known by all workers and the owner that way they can all work together to make it an easier business to run and better for the customers and the public

All the machines weights and appliances that the gym will have will be brand new with the latest and most efficient technology also try to make it entertaining. I will have televisions in front of the cardio machines as people are running or cycling they could watch TV to stay entertained and pass time quicker.

All the managing work will be done in the manager’s office which will also be the main office, in that office such work will be done: new membership papers to be filled out by new customers, renewing memberships cancellation of memberships, talk to manager about any concerns in the gym or about the gym, and employees management.

The front counter will handle cash from goods or services sold, or payments of an existing membership and would have computers linked to the managers office. Also have to scan membership cards upon entry organise day to day work.

All staff will be given a roster at the start of their work, highlighting what days they will be working and what hours they will be working, if staff cannot attend work at any day they must organise their replacement if not they must attend to work or supply a doctors certificate, if any new staff is hired there will be a new roster given or if another quits or in fired they will replace the other workers hours and days.

Personnel requirements and skills

The gym will hire the best staff they will be judged according to their qualifications and experience. All staff hired will be hired just specifically at the job they do not other aspects of the work needed for the gym, that would help each section of work flow easier and faster.

The personal trainers must be qualified with a certificate III and certificate IV in personal training. Many personal trainers have further knowledge in other specific areas which might include weight loss, strength training, muscle gain and fitness which are good to have so any extra qualified trainers are most likely to be hired.

Employees should be able to stay motivated and maintain a good standard of work. So it is better to give them something to keep them motivated, in the gym there will be employer of the month and the winner will receive an increase in their pay in that month.


Market Analysis

The target market the gym would aim at would be a everyone in the community but everyone would have a different need for the gym so we have to target each group of needs in a different way. One of these groups of people would be people looking to lose weight through professional exercises to guide them through their weight loss. The other target market would be people looking to train and gain muscle size as well as strength. The other group of people would be woman, men and teens that are looking increase their cardiovascular endurance sessions with a qualified trainer. These sessions will be a combination of light weights, treadmills and bikes, also another group that would just want to join the gym to keep in shape and not lose their physique because of lack of exercise bad eating habits or laziness.

Over time and as the gym is settled and everyone is used to it, innovation needs to be set up by inventing new things to attract people. Always bringing in new machines that are better then the current machines and sell the old machines to customers or anyone willing to buy.

The prices of the gym have to be cheaper then other neighbouring gyms and other well known gyms, because it is very important if people know that you are supplying same or better services for cheaper prices most likely you will win the customers to your business.

Sales Forecasting

Sales forecasting is an analysis of a firms sales figures based on individual products, sales representatives, and geographic locations, seasonal or annual trends in sales, cash sales or credit card sales. These statistics are used to predict how much profit is going to be made by the firm in the future.

“Cambridge Preliminary Business Studies pg 276”

You cannot show sales forecast with a new opened business because there is no sales that has been made to predict future customer spending, usually the business has to be at least one year into business to the public.

During winter many people tend to join gyms to work out and get into shape for summer as they are thinking about the beach and pools etc. so the demand for gym memberships usually go up during winter or near summer.

Sales of goods at the gym would usually have the same demand eg. Supplements, if people are happy with the supplement they will keep buying it when they are out of it so they will keep coming back for it. That would keep the demand for it constant.

With these plans and stats, businesses will be able to predict when they need to get more goods, hire more staff, or do what is necessary to meet the needs of the customers.

Marketing Strategies

Marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the business. Some goals may simply be based on increased sales, increased market share, entry into and establishment in a new market area, such as overseas, diversification of the product base and increased profits. Marketing strategies must be consistent throughout the marketing mix and take into consideration product, promotion, price and place.

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There are many products and services that the gym offers. The products that the gym offers include gym apparel, bags, bottles and towels. These products are all of high quality and made by Skins USA. The packaging of these products are of high standard. They all come in sealed plastic bags. The size of the bags, bottles and towels are all practical in size. Not too big and not too small. The warranty on the products last for an extended period of time which suggests the quality is high and producers are confident that products are durable. If the product does fail, the gym will happily replace it within reason. Example, the bottle breaks because of misuse.

The price of the gym’s products and services are all reasonable. The gym memberships are about $30 a fortnight for adults and about $25 for people under the age of 16. This price also includes a free gym bag, towel and bottle, hat, singlet, mini string bag when you first sign up. This price beats all other competitors by $10. The products that are offered are priced at $20 for a bag, $10 for a towel and $5 or a bottle. The cheap prices are a result of finding a supplier that has cheap prices on their goods with good quality.

The promotion of the gym plays a crucial part in influencing people to join and become members. The strategy of inviting schools for a couple of free circuit sessions influences young people and also their teachers to join. Advertising through the local newspapers would be a cheap and effective way to bring people to the gym with advertisements about new membership offers or coupons that can be used to enter as a guest for free or a discounted price. Also, sponsoring local sporting clubs bring people of all ages to the gym and also give the business a good reputation for helping young people.

The place of distribution of our products would only be at the gym. This is because the products are exclusive to out gym only. The storage of the products would be in storage rooms located within the gym’s premises; most likely in the office.


Businesses need to know how much money they need to start their business and how much they need to keep running it. The business plan should provide a breakdown of how these initial or additional funds will be used.

Gyms usually cost a lot to start up; the reasons for this would be the start up costs of the business which includes things like buying the space, renovating and designing interior and exterior, purchases of new gym equipment and the employment of staff. This is hard for a sole trader as there is one way of capital to put into the business, but with good financial management the business can run better and see where it is heading.

Once the business has established it begins the growth stage. This stage is important to manage carefully the level of expenditure and not overstocking and then not being able to sell the stock. The income made should be spent on the business with things such as maintenance of the equipment, buying more products for new members. This would allow the gym to grow steadily.

Financial Forecasts

Planning must relate directly to the prime function of the business. It tells if the business can actually afford to provide the service. The firm must make financial forecast based on information gained from market and product research. Financial forecasts can be made through: Forecasted cash flow statements, projected profit and loss statements, recent profit or loss statements if business is already established, projected balance sheet, break even analysis. Forecasted cash flow statements show how much money is needed, when it is needed and where it will come from. Also time frames such as weekly, monthly or quarterly (3months).

The gym’s forecasted cash flow statement would be based on the sales forecasting. This is because both statistics are based on predictions on future sales but it can not be predicted until usually a 1 year of open business.

The balance sheet will explain how much money the gym is earning, where money is being spent in the gym, bill payments, workers’ wages, and money to purchase supplies. This will indicate the stability of the business and calculate its net worth. This will provide future buyers or investors of the business information on risks they would be taking. (Cambridge Preliminary Business Studies – page 282)

Financial Records

Small businesses need to keep financial records. They will need to have one of the following:

Revenue statements

Cash flow statements

Balance sheets

Budgets – marketing, operations, employment relations and accounting and finance.

For the gym, as it is a new business the best is to use a balance sheet as it makes it easier to know where your money is being spent how much money is made and it helps the expenses and income be balanced.

Balance Sheet


$ total

Current Assets

Cash at bank

Accounts Receivable


50 000

90 000

70 000

210 000

Non – current assets


Motor Vehicles

850 000

50 000

900 000

Intangible Assets


20 000

Total assets

1 110 000

Current liabilities

Bank overdraft

Accounts payable

80 000

50 000

130 000

Non – current liabilities

Long – term loan

350 000

350 000

Total liabilities

480 000

Owners’ equity


Undistributed profits


150 000

140 000

125 000

415 000

Total liabilities and owners’ equity

895 000

Gym Liquidity

Current Assets divided by Current Liabilities which substitutes into $210 000 divided by $130 000 which equals 1.62. This means i have $1.62 to pay back every dollar of short term debt. It would be preferable if i had a ratio of 2:1 so that my payments don’t take up the majority of my revenue.

Gym Solvency

Total Liabilities divided by total Owners equity which substitutes into $480 000 divided by $415 000 which equals 1.20. This means that for every one dollar of equity it has $1.20 in debt.

Financial Controls

In every business there must be a control on how much money is being spent on certain things cause the money a company has is limited and the business cannot afford to be throwing their money on things that are not going to improve their business in anyway, they must use their money wisely and be careful at what the money is being spent on so there is control over that.

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Also with gyms they should be able to sustain the number of memberships they are getting because they shouldn’t have a lot of people that are going to come at the same time and they should always have enough people so they can pay their expenses, so there should be a balance between the two and control the numbers joining the gym.

The main control that the gym will need to do is to a budget. This control should be decided by the owner of the gym because they should know how much income they are getting and how much expenses they have. The budget should be set to help the business keep running and maintaining all the facilities so it is well presentable for everyone to use. The budget for the gym would be no more than $15,000 a month on maintaining the gym, from the equipment, to everything in the gym including toilets.

Review of time management

I think I did pretty well in my time management of the assignment, I think the plan that I followed with the set do by dates and highlighting the due dates really helped me out as I was much more organised and pre prepared.

But I struggled towards the end as I lost the paper because of another student taking it and not returning it but I done good because I didn’t leave until the last minute.

By: 22736175


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