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I need this assignment completed by the 29/8/20 please. BSBMKG523 Design and develop an integrated marketing communication plan Task 2 – Written Report Candidate Instructions Purpose of this Assessment task This assessment task is designed to test your skills in designing and developing an integrated marketing communication plan as required by the unit BSBMKGT523 Design and develop an integrated marketing communication plan. Your trainer/assessor will be assessing your work and provide you with constructive feedback on Canvas. This task will assess your skills to: · Determine marketing communication requirements · Develop marketing communication brief · Design integrated marketing communication strategy · Select and recommend media for marketing strategy · Develop creative brief In this assessment you will analyse the provided case, undertake research using Bounce Fitness website, and complete the four parts of the project to demonstrate your skills in designing and developing an integrated marketing communication plan. What are you required to do to undertake this Case Study? To complete this assessment, you must use the simulated business “BOUNCE FITNESS” by clicking on the link below. This business is a fitness company which is in all States within Australia. Bonce Fitness website contains information about the company, Infrastructure, People, Policies and procedures, Performance of the business, Documents, and scenarios. You can find the login details and the additional resources needed on Canvas. <http;//bounce.precisiongroup.com.au/account/> To successfully undertake this assessment, you should be doing the following: · Read the provided Case Study, scenarios and Bounce Fitness additional resources couple of times and understand the requirements · Clarify the requirements with your trainer and assessor if you are not sure · Research appropriate websites as directed by your trainer/assessor · Complete all of the four parts and upload them onto Canvas · Discuss with your trainer/assessor the contents of the project you will be submitting Context and conditions of undertaking the tasks? The prescribed tasks will be undertaken by you after carefully analysing the case scenarios. Your trainer will also provide you guidance on the websites to be researched. Your trainer/assessor may also set certain conditions under which you will perform the tasks required by this assessment. For example, your trainer may set a time limit to perform a task or, ask you to repeat a task or, ask you to give additional information about the performance by asking you some verbal questions or, they may prescribe you some new conditions to undertake certain tasks. Given your personal conditions, your trainer/assessor should also be able to make some reasonable adjustments in undertaking the tasks of this assessment. You should check with your trainer/assessor about the conditions under which the tasks should be completed, and the possible adjustment they can make in undertaking these tasks. What specific WHS requirements may be involved? This assessment will require you to be aware of the standard Workplace Health and Safety requirements e.g. Workplace Health and Safety Act and Workplace Health and Safety Legislation Your trainer/assessor will advise you on these and other legislative requirements. Tasks and frequency of performance Details of the tasks to be undertaken in this assessment are provided in this document. The tasks listed must be performed at least once. Getting Started The assessment may be re-attempted on two further occasions (maximum three attempts in total). All assessments must be resubmitted 3 days within receiving your unsatisfactory grade. You must clearly indicate “Re-submission” on your resubmitted work. You must complete all questions unassisted by the assessor or other personnel but may refer to reference material as may be needed. All questions must be answered satisfactorily for the assessment to be completed satisfactorily. For any assessment conducted that is incomplete, or without satisfactory performance, the assessment will need to be completed again after further training support. This may be simply to focus on question areas not achieved in the prior assessment. Submitting your assessment When you are ready to submit your assessments, upload the files in Canvas via the submission tab. It is important that you keep a copy of all electronic assessments submitted to Canvas. Please submit all assessment components. Word count In this assessment some of the questions include a word count. This is a guideline only, but your answers should not vary substantially (i.e. +/- 10%) from the word count provided. Microsoft Word includes a word count tool. Objective To test the required application skills in developing an integrated marketing communication plan. Assessment Cover Sheet Candidate name: Candidate ID Trainer’s Name: Date Submitted: Candidate declaration: I declare that: · I have read and understood all the information provided in relation to the assessment requirements to complete this unit, the instructions and the purpose and processes of undertaking this assessment task · This assessment is my own work and where other’s works or ideas have been borrowed, I have appropriately referenced or acknowledged them · I understand that plagiarism is a serious offence that may lead to disciplinary action. Candidate signature: Task 2 – Written Report and Presentation Scenario You are a marketing professional in a marketing company called T & J Marketing Agency. Your company has been approached by Bounce Fitness and you have been selected as the Marketing specialist to help promote Bounce Fitness’ product and service. Bounce Fitness intends to market its brand through excellence in service and expertise to establish itself as a premier provider of fitness and wellness in Australia. 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. Much time is invested in training the staff to upgrade their professional skills and in customer service to foster a loyal member base. Classes are innovative and varied with regular changes to routines and activities. Bounce Fitness continues to differentiate itself from its competitors through lower pricing and the continuing development of unique classes, personal training and expanding on the one-stop-shop for health enhancement. The one-stop-shop approach is expected to allow substantial gains in the largest segment of a growing market. This focused approach also makes it easier for Bounce Fitness to establish and retain a position as an industry leader. Recently the company launched a new energy drink (see Bounce Fitness Marketing Communication brief within your supporting documents). You will need to assist the company in developing a marketing and communications strategy to introduce this product to the market. Past Media Performance This is the summary of the performance of other media that was utilised from the past financial year of Bounce Fitness. Information collated are from surveys handed out to consumers through either face-to face, email, letter, feedback forms, etc. Results are based on 100 random new costumers that replied to the survey. Numbers reflect how many costumers learned about Bounce Fitness through the given media advertisement. Media Number of Attraction Television Ads 52 Radio Ads 19 Posters 26 Flyers 35 Newspaper and Magazine 40 Window Display 31 Social Media Facebook Ads 23% of overall reach General Instructions: In this assessment task you will refer to the case study and Bounce Fitness simulation additional resources available on Canvas to complete activities in developing a communication plan. The case study and additional resources include Bounce fitness’s marketing mix, current market trends, past media performance and media consumption rates by age groups. Part A – Determine marketing communication requirements You organised to meet with Paul Thomas Cairns Centre Manager, and his team to discuss and decide on suitable marketing communication requirements. In your discussions, you have: a) Confirmed marketing communication purpose and objective with Bounce Fitness team. b) Obtained comprehensive information about Bounce Fitness and the information on the product the company would like to promote. c) Discussed and reviewed any previous outcomes of marketing. d) Confirmed budget allocation with client and what type of marketing methods will be involved in the costing. Provide a summary of the above discussion using Table A, below: (Approx. 200 words) Table A: Marketing Communication Requirements Marketing communication initiative aims to achieve the following objectives: Client and product information Company Mission Company Vision Budget allocation Past Media Performance Media Number of Attraction Part B – Develop marketing communication brief Now that you have met with the Centre Manager and his team, you have been asked to come up with a marketing communication brief which you must present to the Centre Manager within the month. Before you can develop a communication brief, you are required to research Bounce Fitness website and review the Marketing Plan, Business Plan, and any other relevant documents. By using Table B, below, write a report for your Marketing Manager Jason Smith from T & J Marketing Agency detailing the following from your research: a) Who is the client and the profile of the client? b) Purpose statement and objectives reflecting client needs. c) State marketing communication objectives in measurable terms and provide specific guidelines on what is to be accomplished by marketing communication. d) Define key characteristics, competitive factors and market situation facing product or service. e) Include a summary of information on target audience and legal and ethical constraints. (Approx. 200 words) Table B: Marketing Communication Brief Client profile Purpose Statement (brand/project) Campaign Objectives Agency project lead Timelines Budget Marketing guidelines (Brand, Logo, Slogan, Colours) Target audience characteristics (demographic, geographic, psychographic) Market profile Competition Legal and ethical Constraints Part C – Media Options Report The Manager of Bounce Fitness has asked you to prepare key information that will assist them to make strategic decisions around advertising media options. The advertising brief is shown below: Pre-Workout Powder 100 G CLIENT: BOUNCE FITNESS SPORTS DRINK Pre-Workout Powder 100G is a new sports drink about to be launched on the Australian market. CAMPAIGN: National. PRODUCT: Sports energy drink in a range of 4 flavours Hydra - re-hydrates and replaces essential electrolytes lost during sporting activities and other exercise. TONE: Hyrda drinkers are: · Fitness focused · Body image conscious · Involved in sport · Trains or works out minimum of three times weekly · Health conscious · Push themselves to the limit. Based on the above brief, please answer the following questions: 1. Research various forms of media which could be considered for the launch of this campaign. Critically analyse the advantages and disadvantages of two marketing communication options and two media vehicles for ‘Pre-Workout Powder 100G’. 2. Determine the media characteristics that match the requirements of this advertising brief. 3. Analyse media consumption habits for primary and supplementary marketing media in relation to the target audience of the selected advertising brief. 4. Select the advertising media options that match requirements of the selected advertising brief. 5. Conduct an evaluation of media styles in relation to the brand character of the product/service being advertised. 6. Develop and apply criteria for selecting multiple media in a media plan. 7. Compare advantages and disadvantages of selecting multiple media in a media plan. 8. Review the details of the advertising brief selected to ensure recommended media meets the advertising brief and advertiser’s requirements and legal and ethical requirements. Part D - Develop Creative Brief Your presentation was successful, and you have now been asked by your manager to create the creative brief for your client. Your creative brief will be for Bounce Fitness’s ‘Pre-Workout Powder 100G’ and should identify the following: 1. Your approach must incorporate the brand or image that Bounce Fitness has cultivated and highlight the features of their energy drink product. Your choice of words must evoke an immediate response from your target audience. This is crucial when you are starting your pitch since it will heavily rely on emotions, morals, or rationality to cater to the consumers’ needs. It also helps to back your facts up with evidence to strengthen your claims. 1.1) What pitch are you going to use? Explain your answer. 1.2) How will you define the brand of your produce? You can use a set of key words that can explain the personality or characteristics of the brand. 1.3) What colours will you use for your brand? Explain why you used these colours. 1.4) Insert below a brand image for the powder drink. You can create your own image. If you wish to use an image from the internet, make sure to reference the source. Don’t use an existing brand name. 1.5) Create a new slogan for the energy drink. Try to limit the length of the slogan to between 5 and 10 words. 2. Once you have established the details in the previous question, you then must focus on the resources Bounce Fitness has. Take into consideration both their financial and time constraints for this project. To create a Media Schedule using Table C, below. Creative briefs may start out as abstract, but its main objective is always the same: You and your client must have a common understanding of what the outcome of your campaign will be like. Table C: Media Schedule Media Vehicle Start Date Date of Completion Resources Required Cost 11 | Page BOUNCE FITNESS’S MARKETING TEAM REPORT Instructions to Learner: 1. For Bounce Fitness’s Pre-Workout Powder 100G: a. Select and analyse any of the two (2) media consumption habits of the primary marketing media for your product’s audience. b. Then, analyse the remaining two (2) media consumption habits of the supplementary marketing media for product’s audience. 2. For Bounce Fitness’s 10 pack of 30-minute Personal Training Sessions: a. Select and analyse any of the two (2) media consumption habits of the primary marketing media for your service’s audience. b. Then, analyse the remaining two (2) media consumption habits of the supplementary marketing media for service’s audience. The Bounce Fitness Marketing Team gave you a report on the media consumption of their target audience for their latest marketing strategy. Results for this media consumption survey are based on telephone interviews conducted by the Bounce Fitness Marketing Team, among a national sample of 100 male and female adults, aged 18-50 years-old, who are living within CBD areas. These respondents recognise the need to have physical activity in their lives, and they have incorporated some form of an exercise program in their weekly routine. The respondents spend more than 11 hours a day on average consuming media in some form. This is about two-thirds of their waking time. For this report, the Bounce Fitness’s Marketing Team focused on four media vehicles that they always rely on for their marketing campaigns: 1) Billboards and Posters ▪ The target audience spends an average of 45 minutes on their way to work, and about one hour on their way home. ▪ These include billboards and posters that are traditionally printed and digital. ▪ The target audience agrees that they are still relevant and paint a very interesting picture into their minds and psyche. They admit that they still have an impact on them when it comes to making a purchase. ▪ The team found out that 80% of the target audience look at billboards and 40% report looking at an outdoor ad most of the time they pass one. ▪ 70% of them said they have immediately visited a business because of an outdoor ad message.  2) Online Communities ▪ The most popular platform for this target audience is Facebook with 75% of them using it daily. ▪ Australia is in the top quintile globally across all measure with 90% internet usage, 70% of the population are active social media users with mobile penetration at the 75% mark. ▪ Most of them have heard about a product or service from their online friends or an online review. ▪ 70% have searched online for a product or service, with 50% of them having actually made a purchase online. ▪ They rely on social media as a customer service platform since they want answers quickly and in real-time.  3) Direct Mail ▪ This target audience receives direct mail as a complement to the electronic messages they receive. ▪ They admit that they usually just throw away advertisements they receive without even looking at its content. ▪ Only 10% of them consider checking their mailbox as a ritual. These are respondents older than 40 years-old. ▪ Only 15% of them consider receiving mail as a good break through the digital noise which allows its content to resonate. ▪ 20% of them admit that this method is less cluttered since they receive fewer messages here from their social circles.  4) Email Marketing You could also use the database your client has to send out emails and generate more contacts as well. ▪ 70% of the target audience will not make a purchase if they are dealing with an unsecured email. ▪ 90% of them admit to skimming, even automatically deleting, their emails if it is an advertisement. ▪ 50% of the respondents check their email on a regular basis. ▪ They agree that as the number of images in an email increases, the clickthrough rate of it decreases. ▪ Only 10% of them prefer rich text emails. Media Consumption This statistic shows the respondents’ average amount of hours spent on daily media use. 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 BILLBOARDS AND POSTERS ONLINE COMMUNITIES DIRECT MAIL EMAIL MARKETING Bounce Fitness Organisational Culture and Values Mission Statement The Centres will serve the community with quality, comprehensive, unique, and distinctive health programs and services. The employee team will expand upon the preventive services while improving the quality of life among participants through health and fitness services utilising state of the art equipment and practices. These programs will reflect members’ needs and be financially viable for all stakeholders. Vision Statement Bounce Fitness is committed to an expanding role as a premiere provider of wellness integrated services. Through the evolvement of an empowered employee culture and the creative acquisition and use of resources, we will develop and implement comprehensive programmes and services appealing to all. Values Integrity We hold ourselves and co-workers accountable for building trust with our members and each other by being honest, ethical and consistent in what we say and do. Teamwork We are committed to empowering our internal teams and external members with the appropriate resources to effectively achieve our common vision. Accountability We hold ourselves and our co-workers accountable for our behaviours and responsibilities as they affect us, our members and our culture. Quality We are committed to continually leading the fitness industry by providing the highest standards of quality to our members, through services, programs, and community relations. Culture Philosophy Our philosophy at Bounce Fitness is to provide the very best experience for each of our customers. We believe fitness should be fun and as individual as each of our members. That’s why we provide free ongoing support throughout our client’s fitness journey. Leadership We are leading the fitness industry by employing only the best professionals in the industry. Our Fitness Instructors are all athletes who have competed professionally throughout their careers. They are friendly, knowledgeable and work tirelessly to positively influence each of our members. Change We pride ourselves to conduct change in any area of the business practice that does not have a positive effect or sign of growth for the members of Bounce Fitness. We believe change starts at the top so our Managers perform ongoing research to ensure we are up to date with the latest equipment, training techniques, technology and operational practices. Customer Care We conduct regular feedback and really listen to our members. Every Bounce Fitness employee prides themselves in taking the time to make sure members know they are supported to achieve their fitness goals. Our Managers have an open-door policy and work in an office at the front of each Bounce Fitness Centre, so they can regularly interact with members. Business Strategy Bounce Fitness will open a new Fitness Centre in Perth within two (2) years. Existing Bounce Fitness Centres will continue to show an above-market return on investment through excellence of facility, staff and operational management. Bounce Fitness will hold its current position through follow up of members who cease to attend (as learned from monthly reviews of client programs), invest greater time in customer relationship management and through continued provision of excellence in service and equipment in the Centres, holding the costs to no more than CPI increases. Bounce Fitness will increase staff training in line with their job roles through holding training with guest experts and accessing external training. It is intended within a year to establish a system where agreed training expenses for university and other job related tertiary training costs are reimbursed to staff to encourage continued learning and development of staff. Bounce Fitness intends considering franchising or licensing as an option in the next five years. BUSINESS PLAN 2 Business Plan BUSINESS PLAN 2 EXECUTIVE SUMMARY 2 BUSINESS BACKGROUND The company The service The Holistic Approach Key personnel 4 MARKETING PLANS Market analysis Marketing strategy Pricing strategy 5 ACTION PLANS Personnel Fee collection Expenses Resistance equipment Fitness facilities Financial Projections 8 BUSINESS PLAN FOR KNOWLEDGE MANAGEMENT Knowledge Management 9 OPERATIONAL PLANS Knowledge Management 10 SUSTAINABILITY Sustainability Specifications Business Plan 1 Business Plan Executive Summary Bounce Fitness relies on the proven skills of its founder to take advantage of the growing need for fitness training, personal coaching and other related health enhancement services. Margaret House, who brings more than two decades of personal training and life coaching expertise to the business, leads the company as it was established, as a high quality fitness provider in three capital cities and one major regional centre across Australia. Bounce Fitness initially focused on attendance generated through advertising, tendering for training and general health enhancement. Currently memberships provide the basis of funding and the tenders and casual visits and add-on options of life coaching and health enhancement specialists generate larger profit margins. Constantly evolving classes and advertising offer an opportunity to work smarter. But the increased opportunity comes at the expense of increased complexity. Substantial market research establishes that personal training coupled with life coaching and natural health enhancement is one of the fastest growing service industries. Bounce Fitness is in a position to capture a significant portion of their local markets in each of their localities, currently Cairns, Brisbane, Sydney and Melbourne. Further, Bounce Fitness is projected to return a profit annually due in large part to the size of the market and the relatively low investment required. 2XX1 year revenue combined from all centres is projected to exceed $ $2,500,000.00. Bounce Fitness continues to differentiate itself from its competitors through lower pricing and the continuing development of unique classes, personal training and expanding on the one-stop-shop for health enhancement. The one-stop-shop approach is expected to allow substantial gains in the largest segment of a growing market. This focused approach also makes it easier for Bounce Fitness to establish and retain a position as an industry leader. Business Background The company Bounce Fitness is a dynamic fitness corporation poised to capture substantial market share in one of the fastest growing service industries in the country. Bounce Fitness is a Cairns corporation incorporated in 2001 and wholly owned by Margaret House. A Board of Directors has been established and the Head Office now has a team of General Manager Finance, Human Resources and Marketing, an Executive Assistant and support staff. The Centres have a Centre Manager, Assistant Manager and a team of various sizes composed of experts in health related and fitness disciplines. Bounce Fitness will 2 Business Plan continue to have its base of operations in Cairns (Fitness Centre and Head Office), Brisbane, Sydney and Melbourne. It is planned to open another Centre in Perth in the next two years. Bounce Fitness intends to expand their number of centres as demand increases. It is envisaged that the investment per centre would be approximately $300,000. The owner and Chief Executive Officer, Margaret House, has extensive experience as a personal trainer, life coach and manager of fitness centres. In addition, Ms House has approved a marketing strategy that is well suited to building a larger market share. Bounce Fitness now has the potential to gain a reputation for offering quality in health and life enhancement that provides value long after the classes end. The service Bounce Fitness was originally created for the sole purpose of providing personal training services in the Cairns area. The popularity has encouraged expansion in the services offered and locations. The Centres are based in rented facilities located in or near the largest shopping centre in each city. The facilities are easily accessible, have child care, a coffee shop, substantial parking, and are serviced by public transportation. Where appropriate, however, Bounce Fitness will provide training at a customer’s facility. A key selling point to date is the price Bounce Fitness charges for its memberships. Because Bounce Fitness has been able to negotiate favourable leases for facilities and equipment and has relatively low overheads, it is able to offer customers a less costly membership option. The Holistic Approach One method that Bounce Fitness uses to distinguish itself from others is through the holistic approach developed by Ms House. The support on specific concerns of clients, focused attention and follow up of staff, interesting and exciting new classes coupled with innovative new concepts were the keys to Bounce’s early acceptance. The incorporation of life coaching, remedial massage and other health services increases the use of the Centres and provides convenience for clients. Key personnel Margaret House is the owner and Chief Executive Officer of Bounce Fitness. She has significant experience and management skills developed as a centre manager. Ms House was a remedial therapist and training instructor for eight years before becoming manager of a centre fifteen (15) years ago. She holds a degree in sports physiotherapy, Graduate Diploma in Management and a Trainer Certificate in Life Coaching. In addition to establishing Bounce Fitness, Ms House oversaw the development of a series of comprehensive programs for life coaching. The innovative process of combining personal fitness, maintenance health care and advanced life skill training will be adopted in Bounce Fitness’s training programs. Business Plan 3 Ms House originally coordinated a staff of five personal instructors and taught a number of these classes. Utilising this education and experience, Ms House now is an asset in her role as Chief Executive Officer. Because Ms House has a technical background, her staff often consult with her when complex issues arise. This experience has proved to be especially valuable in day-to-day operations. Marketing Plans Market analysis Ms House undertook substantial research prior to establishing Bounce Fitness. The focus of this research was on the growth of holistic life management including personal training and fitness and on the geographic markets she planned to serve. The research results were quite encouraging. The holistic health approach, personal training and Life Coaching were at the beginning of a period of great expansion, according to the findings of several respected industry trade journals. Because of the personal transformations desired in personal and business life and the anticipated positive impact of health enhancement on daily life, many individuals and businesses are finding themselves overwhelmed with the possibilities that these new concepts offer both their staff and ultimately their business. Marketing strategy Essentially, Bounce Fitness markets itself as offering the same or better quality personal training than its larger competitors, but at a more reasonable price. Bounce Fitness will focus on quality of staff, equipment and Centres, all the while emphasising the ‘add-on’ benefits of the various other holistic disciplines and motivation offered by its services. Particular focus will be in the corporate sector. As part of this strategy, Bounce Fitness is advertising in several lifestyle magazines. In particular, Ms House has received reasonable advertising estimates from three of the largest lifestyle industry magazines and in each region, the free lifestyle magazines. On average, for $250 per month, per Centre each of these will run a half-page ad in each weekly or monthly edition depending on frequency of publication. After the initial six-month period, Bounce Fitness is also considering running a full-page ad for $350 per month, per Centre. The preferred mode of advertising is word-of-mouth. Bounce Fitness hopes to hold information seminars on its services at all the Chamber of Commerce luncheons, service groups and schools within a 30-mile radius of the business. In addition, Ms House has begun writing several articles for a national lifestyle publication and will personally approach Human Resources managers in larger businesses. Research results suggest that this type of marketing initiative can generate a significant amount of business. 4 Business Plan Bounce Fitness also intends to continue with the tender processes, approach medical centres and aged care centres to offer special arrangements for their people to improve their mental and physical health through diet, exercise and companionship. This will be heavily subsidised and offered mainly as a community service. She will not rely on a sales force to generate business. Pricing strategy Bounce Fitness will charge less for similar services than the other firms because Bounce Fitness has low overhead expenses and fewer employees than the larger firms. Based on a survey of fitness training facilities in the major cities and surrounding suburbs, similar firms charge, on the average, $220 more per person for a twelve month membership. There are special arrangements and pricing for corporate partners, special interest groups and community initiatives. Action Plans Personnel Bounce Fitness plans to continue to keep wage and salary expenses low. To achieve this objective, Bounce Fitness has salaried their personal trainers rather than contracting services. The expectation is that when not involved in delivering classes, or consulting with those for whom they are the personal trainers, they will be volunteering their training services to schools, hospitals and other community initiatives to raise the profile of Bounce Fitness. Fee collection Bounce Fitness offers reduced cost for full payment options for membership services. Member payments may be made monthly or quarterly at a higher rate than annually and with cash, EFTPOS or credit cards. Payments for casual classes is set at a premium level and other related services are at least standardised with others in the same locality and industry. The payments may also be made with cash, EFTPOS or credit cards. Bounce Fitness will offer deferred monthly billing and a 25% discount to corporate clients with 10 or more employees taking corporate memberships. Since the revenue generated from this client segment is expected to be small, and the risk of non-payment is small, the accounts receivable and bad debt expense should not be a consideration. Business Plan 5 Expenses Rent, salaries and the cost of equipment leases are the largest expenses that Bounce Fitness faces. Resistance equipment Following an exhaustive analysis of the financial and other implications of buying, renting, or leasing, Bounce Fitness has decided to lease its equipment. A factor that played a large part in that decision was the likelihood that any purchased equipment may become dated in a relatively short period of time. Bounce Fitness must have equipment that is at least equal in sophistication to those desired by its customers. The substantial initial cash outlay required to purchase equipment also played a part in the decision to lease or rent. Bounce Fitness obtained estimates from a number of distributors for the purchase of resistance equipment. The most competitive price that Bounce Fitness found averaged $2,699 per machine. The total purchase price was $46,855 per Centre including GST. Based on estimates obtained from several leading rental firms, Bounce Fitness could expect to pay approximately $8,450 a month to rent the same equipment. Finally, in order to lease the equipment, the best price quoted was $33,500 per Centre, which includes all maintenance of the machines. The lease would run for 36 months with interest at an 11% annual rate. The total of the 36 monthly payments would be $37,855. The lease payment of $3,154 per month is more than $5,000 below the monthly rental alternative quoted. Fitness facilities Bounce Fitness considered several options regarding the type of service to offer to its clients. Because Ms House does not wish to tie up funds on a long-term basis, the purchase of a training facility was not considered a reasonable option. Bounce Fitness has negotiated a favourable lease on all properties with the property management firm that manages the centres in which the facilities will be located. The firm has offered Bounce Fitness a three-year lease with a three-year renewal option. The monthly rent is $1,500 for the first year, $1,700 the second year and $1,900 for the third year. During the three-year renewal period, rent will increase by 5% per year. This rental amount includes water, waste removal, and all maintenance costs. Financial Projections Based on a survey of 100 Fitness Centres across Australia, it was determined that a Fitness Centre with five full-time staff members can be expected to train 30 new clients every week. Of this number, it is expected that 25% will be repeat customers. That means that Bounce Fitness can expect to generate 120 new clients and continue with 30 previous clients every month. 6 Business Plan The percentage breakdown of the number of clients who will select either a single class or the membership option is based on statistics provided in the National Fitness study and a report included in The Journal of Fitness, May 200X, Vol. 12. The findings of both of these reports reflected the fact that individuals who have taken previous memberships are more likely to pursue additional membership to gain even greater proficiency and health benefits. Using these statistics, Bounce Fitness estimates that gross revenue this year from the combined centres will be more than $2,500,000 or over $5000 per centre per month. The financial goals for each Centre for the coming year are: Return on investment of at least 15% Increase net earnings by at least 10% Achieve a market share of 15% in each area Increase sales 5% by June 30 through marketing initiatives 10% new memberships Because the demand for Bounce Fitness services is expected to grow in the current year of operation, gross revenue for the second year is expected to increase to more than $3,000,000. While these calculations are based on an average of the gross by month, Bounce Fitness, like many businesses in the fitness industry, will be subject to common business cycles. Based on the above mentioned study done by The Journal of Fitness, market research shows that the number of clients participating in training January through March will increase by 10% to 25%. During the months of May through August, the number of clients drops off by approximately 20%. Fitness firms can expect a 20% to 30% increase in the number of clients during the months of September through November. As with other non-retail businesses though, December sessions usually drop by 25%. One way that Bounce Fitness will try to counter the ‘holiday slump’ is by increasing tendered classes and those for special interest groups. Bounce Fitness plans on offering a holistic class in developing and maintaining a healthy weight initiative. The class will also focus on how individuals can make gradual and comfortable but sustainable lifestyle changes. Bounce Fitness will incur little additional expense by offering this new initiative and still generate an additional 3% in revenues every month. Bounce Fitness is planning for a 15% increase in membership sales in the coming year. For a detailed analysis of the actual monthly budget, review the budgets in the Performance tab for each Centre. Business Plan 7 Business Plan Knowledge Management Bounce Fitness Information and Knowledge Management System is called Bounce IT. It is a secure custom designed holistic Information system developed just for Bounce Fitness. Bounce IT covers all aspects of the business and collects data for many areas including the business Finance, internal and external Client data base, Stock control and Client membership activity. The client data base includes all internal and external personal details including: name, address, email, contact number, payment and finance arrangements, their fitness goals and personal training sessions including preferred personal trainer, composition, measurements and progress. This system records all transactions for the business and has the ability to create varied reports. This includes all transactions from memberships, casual visits, the café and the retail shop. Managers use this system to total the business income each day and stock control. The owner uses this system for payroll, income/expenses and taxation purposes. Employees use this system to perform sales transactions, create new memberships, access client records and record client results. The information collected allows Bounce Fitness to track client membership activity, the business finances, stock consumed within the business and securely retain internal and external clients personal information. Bounce IT abides by all relevant legislation, regulations, codes of practice and standards for protecting their clients safety and privacy. The outcomes for Bounce IT: Business Plan 8 Method Outcome Review the system bi- annually 1. To provide a simple holistic user-friendly knowledge management system, unique to Bounce Fitness 2. To ensure accurate information and data is recorded in the system User Logs Surveys 3. To collect information on the performance of the system Operational Plan Knowledge Management Operational plan for Bounce IT: Business Plan 9 • Clients • Staff • External consultants • Industry professionals • Government bodies Gather Feedback in form of Surveys and User Logs from: • System • Policy • Procedure Review Information from Surveys and User Logs on the: • What needs to be done? • How will it be done? • Who will do what? • When does it need to be done? Plan • Steps to implement the planning faze • Timeframe of each action to be completed Take Action • Set a review time • Organise a panel to review the implemented system, policy and procedure / work practices Review Implementation Business Sustainability Sustainability Specifications Bounce Fitness is committed to making a difference in environmental sustainability by reducing their negative environmental footprint. The strategies we will adopt to implement this include consultation with stakeholders, allocating the necessary resources and a commitment to continuous improvement in sustainability approaches. Bounce Fitness recognises sustainability as an opportunity to improve all aspects of the business. We believe that once strategies are in place to address environmental issues; any concerns regarding economic and societal sustainability, will also be improved. Bounce Fitness strives to abide by all environmental and sustainability legislation, regulation, standards and code of practice related to the health and fitness industry. Bounce Fitness sustainability goals are to: 1. Reduce their negative environmental footprint 2. Abide by all environmental and sustainability legislation, regulation, standards and code of practice related to the health and fitness industry 3. Minimise their resource use, specifically in energy and water 4. Create better resource efficiency 5. Reduce hazardous chemical use 6. Develop and implement life cycle management approaches 7. Continuously improve Bounce Fitness sustainability practices and processes related to environmental economic and societal issues A sustainability policy and procedures will be developed to address our commitment to sustainability and the goals as outlined herewith. The policy will be focused around addressing sustainability issues through best practice approaches and in line with legislation, regulation, standards and guidelines. This policy will be applied in all Bounce Fitness locations, nationally. Business Plan10 BOUNCE FITNESS MARKETING COMMUNICATION Bounce Fitness’s marketing team provided you with the following link to access and review their previous marketing communication: Marketing Information <http://bounce.precisiongroup.com.au/assets/Uploads/bouncedocs/Scenarios/MKG414-marketing- information.pdf> Recently, they launched a new product and service that they would like to advertise. During your initial meeting with the client you confirmed the following information: ▪ The purpose of their marketing plan is to stimulate the demand for Bounce Fitness’ product and service. ▪ They need to improve the sales performance of Bounce Fitness. ▪ They also need to improve the profit from Bounce Fitness’s product and service. ▪ Specifically, their guideline is for their sales performance and profit of a product and a service to increase by 10% through advertising by the end of the current financial year. They are limited to a $1,000 budget to be allocated as follows: Item Cost Content Development $100 Branding and Creative $100 Stock photo/video/audio $200 Marketing automation and Monitoring Services $200 Webinar video production and equipment $400 Marketing Style Guide ▪ Brand: Bounce Fitness intends to market its brand through excellence in service and expertise to establish itself as a premier provider of fitness and wellness in Australia. ▪ Logo: ▪ Slogan: “Fit is fantastic” ▪ Colours: Blue-Grey (R: 44, G: 55, B: 64) and Light Turquoise (R: 124, G: 207, B: 228) Product The product they want to market is the Pre-Workout Powder 100G. It can assist in energy, mental performance, and can improve performance during long-duration endurance sessions. One scoop in 300ml water prior to exercise will give energy and support to any workout. What sets it apart from other pre-workout powders is it has caffeine which is an all-natural molecule that stimulates the brain to increase alertness. It is safe at moderate doses and can improve various aspects of exercise performance and power output. After analysing the current market situation, you found out that Australians 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. 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. More people are going to the gym after work or are incorporating some sort of outdoor activity into their daily routine. Service The service they want to market is the 10 pack of 30-minute Personal Training Sessions. It is a one-on- one session with one of Bounce Fitness’s personal trainers. It is valid for ten (10) sessions for 30 minutes with a flexible schedule that clients can adjust based on their own schedule. It is conducted by Bounce Fitness’s personal fitness trainers who have completed nutritional certification. And its payment options are available to be paid weekly, fortnightly, or monthly. After analysing the current market situation, you found out that fitness memberships have become more common, individuals have come to incorporate membership as part of their everyday lives. Study after study supports the contention that physically fit individuals are happier, healthier, and more productive. The perspective towards having a fitness club membership has become a smart cost-benefit investment. Before, Australians were fairly inactive, with only 19% of people aged 18-40 exercising three times a week. However, the percentage of active people has recently increased to 43%. Target Audiences These are the particular group of consumers identified as the targets or recipients for Bounce Fitness’s marketing activities: Product’s Target Audience Demographics Male and females aged 20- 40 years old living within the CBD areas Lifestyle Incorporated taking vitamins as part of their diet Existing usage Tried some form of health supplement in the past Values Recognise the need to take health supplements in their daily lives Attitudes Dedicated and determined Social factors Family-oriented and middle- income households Cultural factors Health conscious and passionate about sports Legal and Ethical Constraints ▪ All marketing activities to promote Bounce Fitness products must abide by the national Australian Consumer Law to ensure the rights of consumers as well as fair trade, competition, and accurate information. ▪ Manufacturing of Bounce Fitness products must abide by environmentally sustainable practices. ▪ Trainers must always provide a positive supportive, and safe environment to foster participation in health and let clients expand their capabilities and self-reliance. ▪ Bounce Fitness complies equal employment opportunity and anti-discrimination legislation in all business activities: Service’s Target Audience Demographics Male and females aged 18- 50 years old living within the CBD areas Lifestyle They have incorporated some form of exercise in their weekly routine Existing subscription They have enrolled in a fitness program before Values They recognise the need to have physical activity in their daily lives Attitudes Disciplined and driven Social factors Family-oriented and middle- income households Cultural factors Health conscious and passionate about sports ▪ During personal training sessions, trainers provide an environment free of discrimination and harassment. Under federal and state-laws, discrimination on the following grounds is against the law: o Sex o Pregnancy o Age o Impairment o Political Belief o Marital Status o Parental Status o Race o Religion o Criminal Record o Trade Union Activity o Lawful Sexual Activity o Social Origin