Physical Fitness And Reality Company Report Marketing Essay

1. Executive Summary

This study is composing to exemplify the bing program with its success and suites of betterment ; besides we will present an improved one for the approaching twelvemonth. Our program will do usage of six media tools included gross revenues publicity, advertisement, personal merchandising, public relation, direct selling and on-line selling ; we will fund to carry on series of IMC plans to turn to more users. Online selling will be highlighted and weighted for our program. Subsequently on the budgeting and the methods of the effectivity measuring will be discussed.

2. Company Background

Fig. 1

Logo of Physical Fitness & A ; beauty1986 Physical was running the first fittingness centre. Put up more than 43 subdivisions in Hong Kong, Mainland and Macau, covering a entire country of about 900,000 square pess with more than 500,000 members. The concern graduated table, velocity of development and investing are the highest among rivals. Over the old ages, Physical is in uninterrupted enlargement and development in footings of graduated table and installations ; the slogan, “ Quality in service and attraction in monetary value ” , is unchanged. Physical ever reflects the tendency of life through its advanced schemes to run into the demands of members.

2.1 Marketing state of affairs

SWOT analysis

In order to analysis the selling state of affairs, we decided to utilize the SWOT analysis by Albert S Humphrey ( 1926-2005 ) for assisting us to integrate the strategic planning theoretical account.


Physical are opened more than 20 old ages in Hong Kong which is long set up company of fittingness. Because of opening many old ages, Physical has adulthood and efficient direction. We have many professional private trainers and they help us to construct up a good repute of Physical. Therefore, we have many services such as fittingness, Yoga, dance and beauty. And we offer the acceptable monetary value to fit our company ‘s slogan.


No new services or merchandises to supply for clients late. Besides the fittingness centres are non unfastened on everyplace in the universe. The infinite of fittingness centres are non so large, clients may experience crowded in period hr.

Fig. 2

Albert S HumphreyOpportunity

Presents, people become more concern their wellness, visual aspect and organic structure form. Therefore, people are more willing to devour on the wellness and beauty service such as fittingness and beauty intervention.


There are some powerful existing rivals in the market such as California Fitness which is international company and so many subdivisions in Hong Kong and the universe. On the other manus, the Hong Kong economic will impact the concern, if economic crisis go on, people ‘s discretional income going less, people may cut down consume. Besides the engineering altering will impact the concern, excessively. For illustration, new engineerings can do people healthy and beauty through some intervention and the monetary value is popular, people may non take to make exercisings in gym room.

2.2 Aims

First, we plan to cut down 1.5 million cost of MC program on 1st one-fourth and 1.7 million within following twelvemonth. Besides, we suppose to increase entire gross 1 billion on following twelvemonth. Another, we will through on-line selling attempt to increase on-line enrollment of rank around 8500 to 10000. Finally, we will increase our service quality to increase clients ‘ satisfactions to heighten client trueness.

2.3 Service of physical

We provide all-around fittingness equipments to members making exercisings to maintain tantrum and keep healthy organic structure. Besides we provide personal trainers for some clients who want to acquire professional fittingness advice and aid in fittingness centre. Furthermore, we provide Beauty and wellness attention service for members such as facial intervention, organic structure massage and etc. Furthermore, we hold the lessons of group exercisings such as yoga, hip hop dance and etc.

2.4 Schemes and mark section

Our ideal client is between the ages of 16 to 22 pupils and 23 to 40 in-between income groups who enjoys playing gym and used to pass for it. They are monetary value sensitive, wellness witting and many of them are internet users.


In our company, the placement is Quality in service and attraction in monetary value. Physical is opened near 25years. Economic it is more of import for them. Because of rank fee is cheaper than other fittingness nine, consumer are monetary value mediums so they will travel the fittingness nine which the monetary value is lower. Furthermore, our company has many professional private trainer, they won many fitness competition. So the quality of instruction is guaranteed.

3. Existing selling communicating

3.1 Evaluation of bing six media tools

If you want to acquire the advertizer ‘s message to the market, the best manner to find so is set up a media program ( George & A ; Michael, Advertising and Promotion: An Integrated Marketing Communications Perspective, 2009 ) . Of class Physical have done the same thing since it is launched, and the followers is the bing IMC program,


Billboard advertizements had been widely used in the bing program. It is used to raise consciousness. However, the choice of advertisement locations could non make the mark audiences accurately. Television commercials besides used in the bing program, but it did non take the best clip slots.

Gross saless publicity

Different price reductions and promotional bundles were offered irregularly, it can assist to extinguish gross revenues for a short period and attract monetary value medium clients merely. So as to do certain the net income addition continuously, we do need to plan specific publicity to different people.

Online selling

There is an official web site ; it chiefly used to supply information about centre locations, class agendas, price reduction, etc. However, it is non yet utilized. Online advertisement was used seldom ; normally it is a streamer advertizement on celebrated hunt engine.

Personal merchandising

Normally cross over with gross revenues publicity, resellers in different territories will advance the programs. But the cost is high, as it requires a batch of work force. It is non effectual and efficient. The trainers, gross revenues people and staffs in the fittingness centres have non been good utilised.

Direct selling

Catalogs, direct mailings and cusps had been used, normally are printed stuffs. Those stuffs are used to supply information and attract clients. Nevertheless, nowadays it is increasing of import for a concern to be more environmental friendly. Therefore, we do need to do so alterations and we can do usage of the new engineerings.

Public relation

For many old ages, Aaron Kwok has been our interpreter. He did take part in many facets of publicity. He is a believable and dependable beginning ; nevertheless he chiefly promotes about the fittingness subdivision merely. We may necessitate to pay more attending in advancing the beauty subdivision besides.

4. New selling program

Raise Awareness

20 % cost will be cut down from the bing program in 2010 and we will continuous to utilize both print and broadcast advertizements. Billboard advertizements will merely put near the fittingness centre ( about 7 locations ) , so that if people see our hoarding, they can travel to the nearest centre right off. And hoardings in the MTR Stationss will take topographic point in those near our fittingness centres merely.

Newspaper and magazine advertizements are selective, can make specific audiences and comparative low cost. We will take “ Mens Uno ” to aim male audiences ; and “ Cosmo Girl ” to aim female audiences.

Television commercial is a good tool to make mass audiences ; the cost per audience is comparatively low. However, presents, the sections targeted are non frequency Television audiences, so the cost would be increased. Therefore, we choose Tveasy alternatively, which monetary value is lower than the premier clip. Roadshow and Radio advertizements are relatively lower monetary value and specific mark audiences can be reached.

Stimulate Gross saless

A particular price reduction will be offered to 16+ full-time pupils ( coevals x ) as a fiscal inducement, in order to pull them to utilize our services or merchandises. We wish to assist them to develop a wont of traveling to gym, so that they can be our long term clients. Peer influence besides an of import issue to capture market portion ; they can carry brothers to fall in together. Besides, coevals Ten does hold a turning devouring power.

Direct mailing will be used to direct vouchers, catalogs and intelligence to members and possible clients. Such as test vouchers, facial vouchers, new service information, etc.

For the bing members whose contracts are traveling to complete, we will offer them a attractive monetary value to regenerate the contracts. Besides, test voucher will be provided, they can give it to their friend and travel to the centre together.

Reduce cost of marketing communicating program

The cost of Television commercial is comparatively high and we are non aimed to aim the mass market, so this is non the best tool. This twelvemonth, roadshow and wireless advertizement will be sagely used, the cost of this 2 media are lower.

Better picks of location for billboard advertizement may assist to cut down the cost. We will merely put the hoarding in the territories that have our fittingness centre.

Besides, utilizing less print stuffs cut down the printing cost. Decrease of resellers can cut down the cost. To do certain the service quality has been remained, in-store gross revenues, staff and trainer will have more preparation.

In order to advance the beauty services, we are traveling to ask for Lynn besides. Aaron and Lynn do hold a high intelligence value and both of them are celebrated creative persons in Hong Kong. It may heighten the confident of targeted audiences.

Even though we invited two celebrated creative persons as our spokespeople, they are two the biggest stockholders of Physical. Therefore, this helps to cut a big per centum of cost, so that we can supply a even lower monetary value to the clients.

Increase online enrollment

Fig. 3

Online ads is truly cost effectiveTo better and farther develop the official web site is important for us to spread out on-line selling. Number of reseller will be decease and on-line enrollment will be introduced to clients. It is more convenient for both possible client and us. We will offer different gross revenues publicity to promote people. Furthermore, it is easy measuring. Information will besides be circulating through the cyberspace, it allows us to update and alter the content timelessly. Some hot web sites like Youtube, Facebook may besides utilize to pass on with audiences. Those are celebrated societal platforms for cyberspace user today. To demo clients that we are go oning to better the service, besides Physical is a up today company. The official web site will be an of import beginning of information. We will supervise it closely, in order to mensurate the step the public presentation. Most of the direct mailings will be sent through electronic mails. Thus it is convenient for members and can pull them to utilize even those who do non hold a pressman.

Generate involvement and draw attending

Quick response codification is a new engineering to pull attending. It will publish on the newspaper and magazine advertizements, audiences can scan or capture the codification. Then enter to our official website straight and acquire more information from the site.

Facebook and Youtube are some hot web site. As most targeted audiences are internet users, we will do usage of these web sites by making a group as a societal channel for both members and the company. It allows us to roll up sentiments and remarks ; besides members can interchange information through the site.

Youtube is a free video-sharing channel ; many cyberspace users may see it on a regular basis. To print broadcast advertizements and adept strategy shoots those provide information, tips or advices by professional may pull attending from users. As mentioned antecedently, the new program may utilize less broadcast advertizement ; we are traveling to do good usage of the cyberspace so that it can execute the maps of broadcast.

Applications will be created for free download to make noise and consciousness. There are two sorts of app: enlightening and entertaining. At the same clip, new image can be introduced that “ Physical non merely focuses on fittingness preparation, besides create merriment for you ” .

4.1 Time frame

This is the clip frame that how and when we execute the IMC program.

4.2 Benefits of new marketing communicating program

Cost Decrease:

As our new IMC program in 2011 focal points on utilizing on-line selling and cut down the use of print advertisement, cost can be reduced by 20 % of bing IMC program in 2010.

Be Environmental Friendly:

Nowadays, it is of import for a company to be environmental friendly, to demo the corporate societal duty. Using less print stuffs may assist to cut down the usage of paper. Besides, supplying information on the official website require less print stuffs. Using print stuffs, every clip any alterations needed to do, we need to publish it all over once more and the old one will be wasted. Using cyberspace to circulate information can work out that job. E.g. paper and plastic bottles need to set in the recycle bin. On the other manus, all electronic vouchers and price reductions are accepted, so that members do non necessitate to publish it out.

Interaction & A ; Customer Relationship:

As personal preparation plan will be offered to new members, Physical ‘s teacher will pass on with them and they can interact with each other, their demands will be collected that can assist Physical understand their demands and privation. Besides, client trueness and relationship will be developed through Physical satisfy these demands and wants.

5. Budgeting

5.1 Marketing Communications Budget

In order to accomplish our one-year aims, IMC budget is a must to supply a prognosis of incomes and outgos. Harmonizing to Advertising and Promotion: An Integrated Marketing Communication Perspective ( George & A ; Michael, Advertising and Promotion: An Integrated Marketing Communications Perspective, 2009 ) , budget is a program that lists all planned disbursals and incomes that help us command our cost film editing and disbursement such as publicities and advertisement, other outgo, etc.

A new budget for 2011 is formulated and listed below.

Objective 1: Ad cost economy

Harmonizing to our one-year aims, Physical plans to salvage 20 % of bing advertisement cost in 2011, which means the entire communicating budget for 2011 of its operation can be limited from HKD $ 20,000,000 to HKD $ 16,000,000.

Objective 2: Online rank and database system

Online selling is relatively lower cost, much cheaper than the advertisement even we publish via Numberss of hunt engine and web site. Physical has been merely updating the latest information or price reduction publicity on its official web site, so an on-line rank and client database system are necessary for Physical to aim new or possible clients and retain bing clients from the cyberspace.

Objective 3: VIP country enlargement

Base on clients ‘ feedback, we find that VIP Area is non plenty for our bing privileged guest, so spread outing VIP Area is indispensable to retain current clients.

5.2 Quarterly IMC budget

Entire budget for carry throughing the one-year aims will be around HKD $ 16,000,000. HKD $ 12,800,000 ( 80 % ) of the budget will pay for publicity and chiefly pay for advertisement, publicity/PR and on-line selling. The staying HKD $ 3,200,000 ( 20 % ) of the entire budget will use for VIP country enlargement and edifice online rank and database system. The chart below shows the IMC budget per one-fourth.

Fig. 4 Quarterly IMC budget

The HKD $ 16,000,000 one-year budget for 2011 will be breakdown as follow:

Objective 1: Ad

HKD $ 12,800,000

Objective 2: Online rank & A ; database system

HKD $ 600,000

Objective 3: VIP country enlargement

HKD $ 2,600,000

5.3 IMC budget by Consumer Quarterly

The comparatively high per centum of the IMC budget will be spent on June, July, December and January because of the premier season. As our record, most clients join our rank during these four months. The highest outgos will be spent on summer vacation ( one-fourth two ) because school is non in session. Therefore, major clients Physical marks are pupils during June and July. Besides, the comparatively high per centum of budget will be spent on December, January and February because of the Christmas Day and New Year Holidays. In extra, lower outgos will be spent on March, April, September and October because of school in session and deficiency of vacations.

Fig. 5 IMC budget by consumer quarterly

The chiefly different between 2010 and 2011 budgeting program is that we will pass more money on cyberspace selling. A new online rank system will run in 2011 and we will utilize specific Internet publicity methods to present Physical to all possible clients. Budget of cyberspace selling will be spent in 2011:

Search Engine

We will register our official web site on the hunt engines, such as Yahoo and Google so that the possible clients can be cognizant of our company.

Internet Ad

Make streamer advertizement on some body-building information forums like HKdiscuss and Uwants. We will besides make a practical society group in the societal web site such as Facebook and Twister to advance our company. We will update the latest promoting on these societal webs in order to pull new clients. Besides, we can roll up clients ‘ feedback and information through the cyberspace.

Electronic mail to the members

The presentment of the latest information of services and discriminatory events are sent to the members. The e-mail reference informations obtained from our rank database.

6. Evaluation of effectivity measuring

As we have to cognize make the program are on our path and supervise the public presentation,

Effectiveness measuring is a must after we have purchase our market communicating program with the schemes. From a cost base point, it is non cost effectual for holding both pretesting and posttesting at the same clip, as we want to do certain that we are stick to our program and besides we can cognize should we do an amendment of the program if we use the latter one type of proving. We decided to make posttesting because it is designed to “ find if the run is carry throughing the nonsubjective sought and service as input into the following period ‘s state of affairs analysis ” ( George & A ; Michael, Advertising and Promotion: An Integrated Marketing Communications Perspective, 2009 ) .

In this instance, we have to happen out which classs or parts we have to measurement foremost. Beware that we are suppose to acquire some figure which can be find the effectivity of our program. One of the necessities of effectual testing is can the program accomplish the selling aims. So we decide to find the elements of the selling aim to see if the New IMC program can accomplish our mark or non. We besides make the effectual measuring as an on-going procedure ( one time per one-fourth ) in order to do certain things are on the path.

The Easiest 1 will be the cheque on the fiscal statement. Figures on the gross revenues and the cost can state us our program was an achievement or non. As we are more focal points on the online selling in the new IMC program, mensurate the public presentation of the attraction of our service through the cyberspace will be a MUST. We will acquire the statistics about the download rate and the sing rate of the phone application and the Youtube picture of physical respectively to see how many people have contacted with them.

And for the on-line advertizement, we can make the web analysis through the bureaus to acquire the information easy. The information we can acquire in the web analysis are how many people click on our advertizement, how many click per wage and the figure of peoples register through our on-line member system, etc. Besides questionnaires can be giving to new clients in order to verify the beginning of them. These information are of import for us to find the Return of Investment ( ROI ) as we can specify that higher ROI, more effectual it is.

7. Critical successful factors

After we have planned all the things, we have to believe about are there any factor that would be act upon our program, which term as ‘Critical successful factor ‘ ( Daniel, 1961 ) , an component that is necessary for an organisation or undertaking to accomplish its mission. There are five critical successful factors: “ Trend and lifestyle ” , “ Economic rhythm ” , “ Catastrophes ” , “ Political factors ” , “ Collaborate with operative ” .

Trend and lifestyle

In the 20th century, cyberspace is become more and more of import around the universe, the tendency of utilizing cyberspace and the figure of cyberspace users is increasing rapidly. Therefore, the life style of people have been changed from face-to-face to via the web, it can fit up of our new IMC program to increase more member of on-line enrollment.

Economic rhythm

Buying power of clients can be influence to a great extent in different economic phase, for illustration: after the fiscal tsunami, many people do non desire to pass more. Nevertheless, on the extremum and growing phase of economic rhythm, people would wish to pass more. Now is the recovery phase in Hong Kong, people would wish to increase their disbursement, it is the clip of selling our bundles and add the publicity to pull the people to fall in us.


After some catastrophes have attacked in Hong Kong, such as SARS and swine grippe period, people started to concern more about the wellness issue. Actually, exercising is one of the methods to increase the opposition. For case: dance, fittingness and yoga. Our company can carry through the demands of client to assist them be healthy.

Political factors

Hong Kong has a broad policy of the company to use the private trainer, it seems we can use more private trainer easy and supply the committee if they can sell the bundle of private preparation. It can promote the private trainer pay more attempt of the occupation due to the committee of the successful instances of prosecuting client to buy our bundle.

8. Decision

In composing a decision on this one-year program, as we mention above, the one-year program ‘s nonsubjective is more focussed on the cyberspace selling enlargement and increase more net income, so we setup the new selling program to carry through this planning. We increased to utilize on-line selling and lessening Television advertizement to cut down the advertisement cost. Furthermore, the new selling program will supply price reduction to promote more people to utilize on-line enrollment. So we will increase the figure of member and heighten the net income. On the other manus, there are many publicities to retain the bing clients, it can besides heighten the client trueness and do them psychological satisfaction. After those stairss have been done, the company can construct more the word of oral cavity.