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MBA 661 Title Plan for expansion marketing of new product of E Times Body-building Club Date 2010.12.25 Team CB 10 The second team Name: l Li Gaoxu ID 2139197 E-MAIL sweet_1108@ l Li He ID2139727 E-MAIL lihe6423@ l Li Chunjiang ID 2139255 E-MAIL kxyy666@ l Xu Xinquan ID 2141982 E-MAIL xina24914@ l Sun Bingxue ID 2139178 E-MAIL rl041x@ l Yu Yongshui ID 2139181 E-MAIL ctxwzzb@ l GAO Jian ID 2110671 E-MAIL kjysong@ Table of Contents 1.0 Implementation outline 4 2.0 Analysis of present circumstance 6 2.1 Market summary 7 2.1.1 Human feature of market 7 2.1.2 Market demand 8 2.1.3 Market tendency 8 2.1.4 Market growth 9 2.2 SWOT analysis 9 2.2.1 Strength 10 2.2.2 Weakness 10 2.2.3 Opportunity 10 2.2.4 Threat 10 2.3 Product provision 11 2.4 Key point for sucess 11 2.5 Key problem 12 3.0 Marketing strategy 12 3.1 Duty 14 3.2 Marketing objective 14 3.3 Target market 14 3.4 Positioning 15 3.5 Strategy 15 3.6 Strategy of marketing combination 16 4.0 Financial aspect 17 4.1 Sales prediction 17 4.2 Expense prediction 18 5.0 Control 19 5.1 Implementation 19 5.2 Handling of contingency 20 Plan for expansion marketing of new product of E Times Body-building Club 1.0 Implementation outline E Times Body-building Club is a body-building place with high grade membership system, it is aimed at providing relevant service to members, such as keeping fit and health, etc. The club has been in operation for many years, its operation pattern tends to be mature, and it has steady management group and a batch of loyal clients. In the recent years, with the incessant improvement of people's living standard, more and more people begin to pursue life quality and pay attention to health of themselves, and leisure fitness gradually becomes a kind of social vogue. Body-building clubs like E Times are also incessantly increasing, and the competition gets more fierce. According to the market variation of body-building industry, E Times decides to position market again and extend new service, besides traditional operation pattern of high grade membership system, it shall develop community body-building club and adopt market-oriented strategy, according to the investigation to the community of this region, specially directed against the populace mass of community, it shall provide a certain category body-building product to meet the demand of consumers. At present, the market of community body-building club is still in the vacant period, many similar large-sized body-building club brands have not noticed the market, and that provides a rare opportunity of growth for E Times Body-building Club. With many years of experience of E Times Body-building Club, it has sufficient guarantee for providing new type of body-building and health service. Local market investigation also shows the huge demand of low and medium mass to the service. E Times Body-building Club decides to rely on its experience of operating body-building and health club for many years, it shall also utilize the market development group that blazes new trails and is brave in development to amply grasp the opportunity, quickly perform permeation to the vacant market. The main personnels of the group have rich industrial experience, and the rich experience provides the company with large quantities of information and confidence about market prospect, E Times Body-building Club prepares to perform marketing by means of chain store, according to the market investigation, each community shall be provided with custom-made service, that kind of marketing pattern is beneficial to expansion of profit-making points, and that will bring about more profit for the company and shorten the distance with clients. 2.0 Analysis of present circumstance E Times Body-building Club begins the market investigation before operation. In the investigation to 5 communities, its service was well received, and adopting different marketing method aimed at different communities will be the key factor for the success of expanding new service. 2.1 Market summary E Times Body-building Club grasps large quantities of market information and understands the demand of most clients. Those information can help understand the service object and their special demand as well as development of the next step of plan by the company. 2.1.1 Human feature of market Community Male Female 0-15 years old 15-35 years old 35-55 years old Over 55years old A 51% 49% 7% 8% 15% 70% B 54% 46% 9% 15% 49% 27% C 48% 52% 11% 13% 51% 25% D 55% 45% 12% 41% 24% 23% E 49% 51% 10% 43% 22% 25% Human: The proportion of male populace and female populace is equal. In the investigation to 5 communities, population over 55 years old in community A accounts for 70% of community population, and old people are majority. The population of 35-55 years old in communities B and C respectively accounts for 49% and 51% total population of community, and account for great majority of community population. The population of 15-35 years old in communities D and E respectively account for 41% and 43% total population of community, among them, population of over 25 years old accounts for over 70%. Behaviour aspect: the aim of clients selecting body-building club is keeping fit and health, meanwhile, they can obtain delight in physical exercise; clients are willing to spend money in fitness and health, and clients who pay attention to health and fitness shall perform 4-5 times of body-building movement each week. 2.1.2 Market demand E Times Body-building Club will provide special fitness and health service for clients at community, and the company seeks the benefit that meets important value for clients: Cheaper price: single product combination strategy and product specialization strategy can effectively lower cost. More human-based service: According to the investigation to community, aimed at the need of clients, E Times Body-building Club shall provide specialized service, and that more conforms to human-based demand. 2.1.3 Market tendency E Times Body-building Club not only positions itself as a body-building club with high grade membership system, but also offers service of community body-building club aimed at the clients with lower than medium income level. More professional body-building and health service shall not only face part of people, but also lets more people participate. Aimed at clients of different sex, age, income and hobby, it offers specialized product combination, and that is a very big new market to be developed in the body-building club industry. In the incessant demand of clients to health and fitness service, they are not restricted to provision of place, facilities and simple training course in the health and fitness service provided by club. Aimed at demand of clients, E Times Body-building Club will provide more professional course training and more meaningful health lecture. 2.1.4 Market growth Since more and more companies enter the market, the competition gets more and more fierce. But the market is steadily growing. People gradually recognize the benefit of body-building and the delight brought about by it. 2.2 SWOT analysis The following SWOT analysis will list the strength and weakness of E Times Body-building Club, and the opportunity and threat to be faced by the company. 2.2.1 Strength Industrial insight and excellent experience Management group full of creative and practical spirit Sales and distribution strategy guided by highly efficient and flexible business pattern 2.2.2 Weakness Influence to the own brand from provision of high-end service to provision of low-end service Development available only by relying on external investment 2.2.3 Opportunity Opening a vacant market in the locality Single product combination strategy and product specialization strategy help reduction of operation cost 2.2.4 Threat Existing competition rival might be potential threat The clients under economic influence might reduce input to health and body-building service 2.3 Product provision A Aimed at middle-aged and old people over 55 years old, the community shall provide body-building courses to which they pay attention, such as Mulan shadowboxing and taijiquan that give priority to health and preserving health, as well as corresponding products of health preserving product, apparatus, lung and heart function monitor, health archive management, etc. Aimed at male of 35-55 years old, communities B and C will provide apparatus body-building service, and shall provide appropriate service to middle-aged women, such as yoga category. Aimed at young people of 15-35 years old, communities D and E will provide body-building service that is suitable for them, such as Korean boxing, and so on. In addition, taking into consideration to the proportion of mass aged 0-15 in each community, simple amusement activity place specially aimed at 0-15 years old mass shall be provided, so as to facilitate the mass who shall care for child while keeping fit. 2.4 Key point for sucess The key factor for success is to meet the demand of low-end market to body-building and health service, the occupying to vacant market will win more clients for E Times, it shall not only occupy high-end market, but also have a foothold in low-end market. In addition, E Times shall guarantee maximum satisfaction of clients. If those factors are all met, the profit of the company will be steadily improved. 2.5 Key problem As a company which has just involved low-end market, E Times is still in the stage of exploration, and the key problems faced by the company are: Molding itself to become the leader of body-building industry. Try to keep balance between income and expenditure, keep steady growth, and that will be helpful for resisting occurrence of decline circumstance of company. Sustained paying attention to satisfaction degree of clients, and ensure the development strategy to not obstruct satisfaction degree of service and product. 3.0 Marketing strategy The key for marketing strategy is to pay attention to the body-building consumer of fitness and health. Aimed at the service, and different subdivision market, E Times can serve over 90% body-building market, although different subdivision market has different demand points, the service of E Times can apply to all of those demands. The community club of E Times will adopt the following tow kinds of measures: Strategy of product specialization: Strategy of product specialization means only provision of a certain category of body-building product to meet the demand of different consumers, such as specialized courses of Korean boxing club, yoga club and boxing club, etc., it shall display specialized image with expert to clients, so as to get larger market share in relatively small market; it can also provide service of specialized apparatus, i.e., it only provides body-building apparatus instead of body-building course, thus the input of variable capital can be effectively reduced, the input of fixed capital is increased, but the quantity of clients contained in unit area is maximized, the utilization ratio of place can be improved, and the income can be increased. Single product combination strategy: means only provision of one kind or several limited products, so as to adapt to and satisfy single market demand, for example, it can cancel apparatus and reduce input of fixed capital for female market, it can provide body-building courses to which women pay attention to, such as beautifying, fat reduction, molding and posture, etc., it can also provide product of appearance beautifying and hairdressing product service, as well as hold relevant course lecture and salon service; aimed at middle-aged and old clients, it can provide Mulan boxing and taijiquan body-building courses that give priority to health and preserving health to which they pay attention, as well as corresponding products of health preserving health-care product, apparatus, lung and heart function monitor, health archive management, etc. 3.1 Duty The duty of E Times Company is to provide the best body-building and health service for clients. It shall try hard to attract and keep clients, and the service of company will transcend the expectation of clients. 3.2 Marketing objective Keeping active and powerful growth Keeping steady market permeation rate Try to reduce operation cost through strategy of product specialization and single product combination strategy, so as to reduce price. 3.3 Target market The objective of E Times is to provide specialized and professional service, and develop the body-building and health market, and the body-building and health service demand is incessantly expanded. The target mass of E Times is clients who pay attention to health and fitness, since those people are rapidly expanding with the incessant improvement of living standard. For the purpose of health and fitness, the quantity of those people will be doubled on the basis of present quantity in the coming 3-5 years. 3.4 Positioning E Times position its market to the leadership position of market, and the realization of that objective is determined by the core competitive force of E Times and its rich industrial experience. The company was established by as many senior body-building and health experts, and it is aimed at serving extensive body-building fans. E Times shall amply rely on its rich industrial experience and enthusiasm of staff to physical culture, so as to provide more considerate and specialized health and body-building service. 3.5 Strategy The eventual objective of the company is to get the leading position in body-building industry. The marketing strategy shall firstly get approval of clients to the service provided by the company, and expand client mass. That mainly constructed by E Times is a kind of public opinion atmosphere for clients who will be provided with the most considerate and specialized service, and it shall face with more extensive mass. That information can be propagated through publicity in community and free experience, so that more clients in community can understand the specialty and attention of E Times in health and body-building service. The second kind of marketing mode shall be publicity through media, such as paper media and television and broadcast media. In addition, the company will also print and issue some booklets about company circumstance and service provision. The mode of community publicity and free experience is more close to clients, and it can create the consumption aspiration of clients. 3.6 Strategy of marketing combination The marketing combination measures of E Times include the following items: fixing
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