It has been determined that the trend of using fitness is increasing due to increased health awareness. Dubai fitness market is on therise, the UAE government also supports the fitness environment. Analysis revealed the increase of 25% in breast cancer and 21% in colon cancer. Approximately 30% people are subject to heart diseases and 27% facing diabetes, all these issues define the necessity of fitness activities (D’Souza, 2013). Improvement in infrastructure and increasing awareness of fitness activities are the factors encouraging growth of gym services
Get There is an idea that is designed to satisfy customers’ rising fitness needs with special services such as childcare services, 50% discount on smoothies, and Muay Thai. The gym will be continuouslyinvolved in research and development to identify the market gap and will build its services on that gap to satisfy customers.
Products and services that will create unique selling proposition will include quality fitness services and lower price as compared to thecompetition. Muay Thai will include children from the age of 4 to womenfrom35 and above. The unique combination of services at lower prices will differentiate the business from its rivals. These services include personal training programs, personal trainer services to customers, and Muay Thai (self-defence) classes, childcare services to mothers. The gym will include 3 shifts such as morning, afternoon, and evening. Afternoon shift will entertain women only. Further, the gym will provide internet facility. The gym will embracemodern machinery that will help in keeping arecord of customers’ health and fitness progress. The gym will give 50% discount vouchers for smoothies and proper guidance for food plan.
· The objective is to make Get There a well-recognised fitness centre.
· To improve the net profit ratio of a gym up to 44.62% in 15 months.
· To enhance the awareness of a gym up to 95% in a year.
· In order to reach a success, Get There will have to make analliance with its strong service and product suppliers.
· It is essential for a business that it keeps eye on its competition.
· It is essential for the business to be involved in market analysis to extract opportunities.
· It is essential that people have easy access to gym services; hence, it is pivotal that distribution channels are strong.
“Get There” is a new fitness gym that will provide fitness services to its customers and will provide personal training to customers at theaffordable price. The fitness gym is focused on providing fitness services to men and women both and enthusiastic to offer Muay Thai (self-defence classes) for children and women as well.The fitness gym will provide personal training services to its customers and will offer different fitness programs as well.
The priority of the gym is to involve the Dubai population in fitness activities by exposing the population to numerous activities and services offered by the fitness gym. The major focus of the fitness gym will be amale population of all ages, as it represents approximately 75% of the Dubai’s overall population (World Population Review, 2018). Further, the fitness gym will offer its customers a service of cld care so housewives can also take part in fitness activities without worrying about their chhiildren. Childcare service will help the business attracting more customers (women) that means improved customers base and therefore profitability. The business will offer a product range to its customers that will include boxing gloves, hand graft, shin guard, body armour, and apparel like shorts.
The mission of the fitness centre is “to involve people in fitness and wellbeing activities.”The goal of the fitness gym is to offer an environment to non-athlete people that they feel comfortable.
Company ownership refers to the control that an individual or individuals have over business enterprise. Business ownership can be divided into three broader categories that include sole proprietorship, partnership, and corporation. In a sole proprietorship, an individual owns a business. She/he is liable to pay all debts and bear the responsibility of losses if occur. In case of profits, she/he is the only person who takes advantage. In partnership, two or more than two individuals are involved in business activities. However, corporate is a form of legal entity that state creates; and theowner is separate from business’s liabilities and assets (Birt et al., 2012).
For “Get There” fitness gym, the selected ownership structure is apartnership. The advantages of thepartnership will be sharing of responsibilities, expertise, and losses. Partners involved in the business will not have to bear losses solely. This sort of ownership will offer the opportunity to start the business easily. Start-up cost will be low and increased capital will be available to run abusiness (Birt et al., 2012).
The start-up cost for the “Get There” gym is mentioned as below:
Majority of the total cost will be spent on the purchasing of fitness machines. The cost of fitness machines is high, as the new machines that are not hazardous for health and do not contain therisk of injury will be purchased. The licence cost of starting agym in Dubai is AED 50,000. Another material refers to Boxing Gloves, Hand Graft, Shin Guard, Body Armor, Apparel like Shorts, and costumers towels, etc. Purchasing of such assets will require at least AED100, 000. The gym must have CCTV cameras so the activities of customers can be monitored, plus it will also help in maintaining security. These assets will be for thelong-term basis for the business. Some expenses that will occur during the first month and will keep going on have been mentioned separately. However, categories such as club inner activities expanse and other expenses show potential expenses that can occur such as maintenance, ambience, etc.
Get Thereis a gym that will be located in Dubai sports city, situated at Mohammad Bin Zayed Road. It is a multisport complex in Dubai; there are numbers of sports venues and sports academies. The advantage of the place is that it will give easy access to the location and will be affordable. People will be attracted to the gym because of the place popularity for having quality sports centres.
The location consists of multiple attractions such as it is close to shopping hubs, theme parks, nightlife, hotels, tourism spa, and much more. People come to visit Dubai and take gym facilities as well; the location will also help the fitness gym to attract travellers. Opening a fitness gym will help in attracting several potential customers to the locality. The increasing popularity of a place will support the improvement of thecustomer base that will ultimately lead to higher sales and profitability. Numerous new facilities are opening in the city that will increase visits to the city and location as well. Hence, it is expected that opening fitness gym at this particular location will serve with spectacular advantages.
“Get There” gym will rent the property of 3000 sq.feet at initial level; if the gym’s sales grow then the expansion plan can be considered.
The gym will not be sharing the facility with any other business; however, best professional trainers will be contracted to conduct fitness sessions and provide personal training to customers that will be an attractive factor for health-consciouspeople who prefer to be anactive and healthy lifestyle. This association with professional trainers and guides will support in attracting potential customers and charge competitive prices. The advantage of the facility is that business avenues, commercial buildings, and multiple attractions surround it. The huge parking area is available to customers that will also develop the interest of people to visit thelocation (TripAdvisor, 2018).
Get There” fitness gym will provide fitness services to its consumers and will provide personal training services to customers at the affordable price. The gym will offer diet plan to its members and will provide food services to its customers as well. The food service will include smoothies; the gym will offer 50% discount vouchers of famous smoothie centres, so customers can avail those vouchers and can have smoothies at given discount. The fitness gym will attract both men and women, and it will offer Muay Thai classes to childrenand women that will include self-defense techniques. The fitness gym will provide personal training services to its customers and will offer different fitness programs as well.
To offer a proper workout session, customers will be evaluated on their progress and will be guided by their workout and eating plan. Safety of customers will be ensured by purchasing advanced and efficient machines that do not cause injuries. Some machines will be placed in acircle rather lining them, so people can enjoy thesocial environment and can have chat with each other. However, some will be placed in line form so people (most specifically working women) who are not comfortable to exercise in front of men can work separately.
Three shifts will be available to customers; it has been observed that household women do not feel comfortable to workout with men (Emirates Women, 2018). Hence, afternoon shift will be completely delegated to housewives, so they can easily do their exercise. Moreover, the fitness gym will offer childcare service to housewives. It will allow them to take part in fitness activities without worrying about their children.
Some of the competitors of Get There include TribeFit, Engine health and fitness, Iconic Fitness, and Fitness 360. However, some of the direct competitors that will be competing withGet Therein the location include:
FitRepublik fitness centre: Offers fitness services such as martial arts, CrossFitoption, aquatics, group, and studio exercises. The gym offers personal training services and kids’ activities as well.
Embody fitness: Provides personal training, semi-private training, small group classes, and ladies only training, and nutrition and lifestyle coaching.
These will be some major competitors of the gym at the location. However, Get Therewill maintain its differentiation by offering unique services to its customers that will help the business in its success.
Sales literature refers to the material that an institution writes or communicate to sell its products or services. The aim is to inform potential customers about the products/services and associated benefits (Sahadev, Purani and Malhotra, 2015). In order to drive sales, it is pivotal that appropriate strategies are selected. The fitness gym will use social media marketing to promote its brand and services, as it will help in driving sales. The most commonly used platforms will include Facebook, Twitter, YouTube, and website of Get There.The YouTube advertisements will be used to convey customer experience to potential customers. The gym will design a catalogue that will entail the description of services that a gym will offer. Get Therewill describe the benefits that customers will gain after joining agym. The catalogue will be three-fold that will include details regarding monthly fees and hourly sessions. The pamphlet will also elaborate on training programs, personal training services, and associated benefits (Chidziwa, 2014). Further, newspaper ads will also be the part of sales plan. It has been decided that the ads will be published in Sunday newspaper. The advantage of the technique will be wider access to customers. To attract children or encourage them to join Get There television advertisement technique will be used.
Sourcing is an important aspect of any business; inappropriate sourcing costs companies a lot. The business will make acontract with both regional manufacturers and wholesale suppliers. This will allow the gym to source advanced technology at lower possible prices with maintenance warranty. It will help the gym to reduce its preservation cost.
Get Therewill source personal training services and training programs by making analliance with best trainers of the town. It will contribute to improving the quality of services and attracting maximum potential customers. Hiring best trainers can cost the gym immensely; hence, it is decided that alliances will be made,so the ratio of 60 and 40 will be shared on the earned profit. However, if the sales improve Get There will later hire trainers rather sharing profit.
Get Therewill not compromise on technological advancements. The gym will procure best technologically advanced machines. The advantage of such machines will be that if instructors are not there, the machines will not be hazardous. The threat of injury will be lowest for customers. The new technologically advanced equipment includes modifications, new designs, and composite material that enhanced the durability of machines. The durability of equipment increased from treadmills to humble dumbbell; advancements in technology made gym equipment more versatile (Lee, 2017). The gym will provide digital connectivity to their customers so they can use theinternet while exercising, listen to music, watch movies and television, can monitor their heart rate, can keep apersonal log, and receive nutritional information.
The advanced technology will allow the gym to integrate machines with amobile app that will allow customers to keep their data safe (Lee, 2017). The advantages of this technologically advanced equipment will be that customers will be able to assess their details of past sessions. For example, the time they spent exercising, calories they burnt, and further efforts they need to make.
The fitness industry is highly competitive in the UAE; theneed of exercising is improving due to increased obesity issue (Hamdan, 2017). The wellness industry in Dubai faced an immense shift in 2 to 3 years (Hill, 2016). The culture of fitness in Dubai is increasing that encouraged the opening of new health facilities (Abbasi, 2018). Due to increased competition, it will be essential for the gym that it comes with new offerings later. For remaining competitive, it will be essential that services are introduced according to new trends. It has been detected that the population of Dubai is not getting healthier; they are stuck with the level of obesity that is two times higher as compared to global average. According to WHO approximately 70% men and 67% women from the age of 15 and older are perceived as overweight in the country. This is due to the fact that people do not go for exercise because they are not motivated. Hence, it is pivotal that gyms differentiate themselves from thecompetition. Simply offering services may not attract customers (Hamdan, 2017). Hence, it has been decided that the gym will include music to improve ambience; the gym will offer different healthy food options that will keep customers motivated to exercise. It has been determined that the demand for customised programs and exclusive training sessions is on increase and this trend will continue to increase. Based on this trend, the gym will start offering private yoga classes to its customers that will improve the gym’s sales.
Fitness market iDubai is on its rise, the UAE government is keen to promote health and fitness activities in the country after realising this fact that physical inactivity results in 21% to 25% colon cancer and breast cancer. Even 27% people are facing diabetes and around 30% facing heart disease issues (D’Souza, 2013). Hence, the requirement of fitness facilities is improving with governmental support. Even, Dubai Sports Council, through launching a map representing sports venues in Dubai, promoting fitness culture among residents of the country. Such sorts of efforts are contributing in augmenting the level of fitness activities.
It has been realised that the improved infrastructure and increased awarenessof fitness activities are promoting the growth of fitness activities that would result in increased sales of gym services. However, new entries will pose a significant threat to Get There. For coping up the competition and taking advantage of new offerings, the gym will have to meet customers’ needs.
Market segmentation refers to a procedure of separating potential customers’ market into different segments and markets based on certain customer characteristics. People divided into segments may share one or more than one characteristics. Segmentation can be done in different parts such as demographic segmentation, behavioural segmentation, psychographic segmentation, and geographical segmentation. Target market based on different segmentation strategy is explained below:
Age: Get There has an option to target people from the age of 4 to 60+. The gym will avail this chance and will target children from the age of 4 to people to the age of 35 and above.
Gender: The gym has an opportunity to target both males and females that will also include children. The gymnasium will avail this possibility and will target children, men, and women.
Income: The gym will target people from the monthly income of AED10000 and above.
Race/nationality/religion: The facility has an opportunity not to prefer any particular race, nationality, and religion. Hence, it is decided that discrimination will not be done and people of all nationalities, religions, and races will be attracted.
The gym has an opportunity to target people having theintention to get over obesity, prefer to spend healthy life, and want to get fit. These people care for their children and want to teach the ways of self-defence. The target audience includespeople who do not care about money; they pay even higher for quality services and keep track of their fitness level. These individuals like socialising and use theinternet while exercising.
Values:Get Therehas achance to target people who value fitness, seek for quality services, and do not prefer to compromise on their health. Individuals may also include people who want to be fit, but due to lack of knowledge and food preparation options, they are not able to get their goals. Hence, they seek options for full services. Individuals also include housewives who value fitness and want to look attractive; these are the women who want to be in shape even after having 2 and more children.
Lifestyle:The target audience may include people with ahealthy lifestyle, want to be fit and idealise sports people or models for their fitness. These people prefer to go thegym on regular basis or at least fourtimes in a week.
Activities:The gym will target peoplewho are involved in socialising activities; they love to be fit and want to be involved in fun activities.
The obvious audience that will be available to Get There will be the residents of thetown at the gym is located; except this,the gym has an opportunity to attract national and visitors. Hence, both nationals and international visitors will be attracted to the gym by communicating surrounded attractions.
Segmentation section is a detailed explanation of the target audience of Get There. It is obvious that the gym will not target overall population; people only with health and fitness priorities will be targeted. The facility to provide them guidance, keeping arecord of their health activities, providing vouchers for smoothies and proper food plan to be followed will be the features that will facilitate customers more as compared to any other gym facility in the town.
The gym is targeting people who value fitness; hence, it is essential that their needs are assessed. It has been examined that being fit and looking smart is amongst the major priority of women in the UAE. People need encouragement to be involved in exercising that can be brought by creating afun environment (Swan, 2015). It has been assessed that people in the UAE lack in their knowledge of body type and things they should eat. They lack in understanding the importance of exercising, they expect instant results, and either do not eat enough or right (The Khaleej Times, 2017).Hence, the need is to improve the knowledge of people regarding health activities. Hence, the strategy is to target people who already have awareness of some or all of these factors and to target people who want to look good, but do not have proper guidance. These are the people who will be attracted to the gym for having their needs fulfilled.
Market analysis revealed the fact that demand for training equipment and thegym is increasing in the UAE. The country is perceived as a hub of travel and tourism that resulted in an increase in thehospitality sector. The buildingof a hospitality sector led the country towards theincreased demand for gyms (Khaleej Times, 2007). The second trend in the fitness and health market is, increasing awareness of health issues that have changed the attitudes of people positively towards exercising. This trend of being healthy has improved the demand for gyms in the country. Even, professionals are more interested in joining agym and keeping their selves maintained (Health Magazine, 2017).
The trend of fitness is increasing throughout Dubai, youth training is not the only factor that is growing, but people want to know about their bodies as well, they want to get awareness about the barriers that may prevent them from goals attainment. The biggest fitness industry trend is wellness in the UAE (Holl, 2016).
Market trends are going in favour of Get Therebecause the gym will provide services to customers regarding their body needs, their health, and will keep arecord of their fitness progress.
Industry analysis is an important aspect to know the facts prevailing in the industry. The fitness equipment market is amongst the best measures that can be used to assess the growth of gym market. It has been assessed that obesity issue, diabetes, cardiovascular, and hypertension issues are increasing in the country. These rising health issues and increased disposable income are the factors that encourage individuals to join gyms and health clubs. It has been assessed that the sales of fitness equipment are increasing and projected cumulative average growth rate during 2017-23 can be 4.4% (Cision PR Newswire, 2018).Increased health issues and disposable income resulting in animprovedratio of health clubs and gyms. It is expected that the gym market will continue to grow, as the awareness of people will improve regarding health issues and importance of exercising.
The fitness industry is a broad sector that includes multiple health service providers some have been mentioned below (CalorieBee, 2018):
Personal trainers:Personal trainers are fitness professionals who provide customer-based services. These professionals help people modifying services and enhancing their fitness with the purpose of improving fitness and preventing disease.
Freelance fitness consultants:Online fitness sessions are also a source of fitness service providers. These people provide online training sessions to their customers.
Fitness clubs or centres:Fitness centres are healthcare services providers that include exercises with amajor focus on improving flexibility, mental control, capacity, and balance. They also provide dancing classes and variety of services (Byer, 2018).
Hence, while attracting customers, Get Therewill have to keep all its competitors into consideration.Get There is not an only player in the town; multiple healthcare alternatives that can give the gym a tough competition. Therefore, while deciding on the combination of fitness services, prices, and advertisement content, the gym will have to be wise.
Distribution patterns refer to the ways products or services can be sold to consumers. Distribution strategy is critical to discuss, it is essential that all potential customers must have easy access to gym facilities. It is fact that if people want to get gymnasium services, but they do not have proper information or access in timely manners so they will not be attracted. In this regard, distribution strategy plays animmense role. Primarily, the gym will focus on selling its services directly to its customers through its website and other social media platforms. Secondly, Get There will make contracts with clinics and fitness consultants of the city that they recommend Get There for fulfilling fitness and health care needs. The gymnasium will also make acontract with freelance service providers and ask them to recommend their customers to use facilities togetting there. These patterns will allow the gym to have access to the wider audience.
Competition refers to the way people chose on product or service to another; while buying patterns refer to the factors that make difference such as price, services, and training sessions (Chidziwa, 2014). In the UAE gym industry, players compete based on the quality of services, reputation, big facilities, experiences, and numbers of services. These are the factors based on which fitness facilities compete with each other and try to maintain their competitive advantage.
However, buying pattern that differentiates gym facilities include prices, location, ambience, and services. For example, Get There differentiates on the basis of its membership programs, its ambience such as music, internet connectivity, advanced machinery, and set up (machines are set in circle form). In addition, the gym will offer personal training services and training programs to its customers.
Get There will offer childcare service to housewives so they can enjoy exercising without working with their children. These factors will differentiate the gymnasium from other fitness facilities in the town. The gym will be able to attract its customers based on its self-defense classes that will be provided to youth and children both. Children from the age of 4 and above will be targeted.
The two major competitors of Get There in the town will be as follow:
FitRepublik fitness centre Offers fitness services such as martial arts, CrossFitaptior, aquatics, group and studio exercises. The gym offers personal training services and kids’ activities as well.
Get Therehas a strategy to serve best to its customers - with its fitness services - from the age of 4 to 60 and above. Dubai sports city is an area that contains multiple health and sports facilities; the reason of selecting this area is, as it is perceived hub of health and fitness services the reputation of the area for best and quality fitness club will itself promote Get There for its quality.
In order to promote a product or attract customers, it is pivotal that marketing strategy is planned carefully. The tool that can be used to best represent the marketing strategy includes marketing mix that is based on 4P’s. These 4P’s refer to theproduct, pricing, promotion, and place. Below mentioned are the 4P’s that define marketing strategy of the gym.
It has been extracted that Dubai sports city is amongst the most famous places of the UAE; it is popular for its fitness and sports club. Hotels and commercial buildings crowd the area; the fitness trend in Dubai is improving. More important that business people are more interested in getting fit and want to look attractive. Hence, to locate Get There, Dubai sports city has been selected. The product's description has been provided in prior sections. This section further elaborates on unique selling proposition (USP) of the gym (Van den Bergh and Behrer, 2013). The USP of the gym will be the unique combination of services and their lower prices as compared to thecompetition. The services will include theprovision of personal training services to customers, training programs, and Muay Thai (self-defence) classes. The gym will provide childcare services to mothers so they can workout without any pressure. The gym will include 3 shifts such as morning, afternoon, and evening. Afternoon shift will be only for women. Machines will be placed in acircular form to create asocial environment, during exercise; people can chat with each other. Further, the gym will provide internet connectivity facility; customers will have the opportunity to do exercise without being out of touch with their family and friends.The gym will include latest highly advanced technological machinery that will help in keeping arecord of customers’ progress. The gym will offer vouchers for smoothies to its customers and proper guidance related to thefood plan.
Details of product packages:
Pricing is an imperative characteristic of a business plan; it has great importance. Pricing strategy can make or break a business plan. Hence, it is essential to prepare pricing strategy wisely. Get There plans to offer its monthly membership for AED 600, which represents the selected pricing strategy option for the gym, is lower pricing strategy (Ahmed, 2017). Get There will adopt a lower pricing strategy that will give it acompetitive edge over its competitors with its unique combination of facilities.
Promotion of services refers to the communication that companies do with their customers with the aim of spreading product or service awareness. To have success, it is essential that the target audience has awareness of services and benefits they will attain against the purchase of services. In order to promote Get There, themulti-channelpromotional strategy will be used that will include television advertisements, newspaper ads, social media promotion, and pamphlets. However, the major emphasis will be on social media promotional strategy; the reason for giving priority to this strategy is alow cost associated with it.
Distribution plays important role in sales of services or products. The chief distribution channel will be the location of Get There; to improve sales it is pivotal that customers are provided with easy access (Pearson, 2013). Hence, it has been decided that online channels will also be the part of distribution strategy. Customers can buy services through the company’s website and can apply for membership on theFacebook page.
Get There is a start-up that will be enriched by the popular sports facilities and fitness centres; hence, it will be essential for the fitness gym to effectively communicate its services to customers. The sales strategy of the company will be to target customers from the age of 4 to 60 and above. The sales strategy is to build good relations with customers through providing them quality services at lower possible prices and by offering gym’s membership (Lane, 2013). The channel strategy will be multi-channel; the most frequently used media for sale services will be social media channels.
Following is a table that presents the present sales forecast. It is expected that our sales growth will not be associated with any particular percentage; the growth percentage will fluctuate due to the nature of the business.
As the popular sports, companies and fitness centres will surround Get There; hence, it will be tried that aggressive marketing is done to promote services and features of the gym. The efforts of making adifferencein the gym from rivals and explaining the benefits customers will attain theresult of having membership will help Get There to attract maximum numbers of customers. Between costly or high prices sports centres and fitness facilities, lower cost fitness services will be the factor to influence customers’ decisions. It is expected that marketing and sales efforts will help to bring maximum numbers of customers at initial phase; hence, forecasted sales in a1st year can be AED 1,003,866.82 that may increase up to AED 3,017,848.49 in the next year, and AED 5,287,648.55 in thethird year.
The company will make alliances with its suppliers to better its reputation in the market. For example, the gym will make analliance with Jungle juice Dubai, Deliveroo, and Jamba Juice. Get There will make alliances with personal trainers. Making alliances with personal trainers and companies deliver smoothies will help the gym to boost its services. Making analliance with smoothies’ provider will help the gym improve its sales, as the gym will provide 50% discount on buying smoothies from these companies.
(Manager 1) – Managing Partner
(Manager 1) will be the main person overlooking the accounts, sales, and promotions. He will be in charge of overall management of the gym and be the chief decision maker.
(Manager 2) – Chief Operating Officer
(Manager 2) will be the person looking after the entire operations of the fitness centre. He will be managing the personal trainers and the employees. He will be responsible for looking after the repair and maintenance of the machinery and equipment and also be coordinating with the employees to ensure the smooth running of the fitness classes. Other than the regular duties, (Manager 2) will also be assisting (Manager 1) in the sales and marketing responsibilities.
The initial management team will consist of the founders themselves. We will be adding additional managers as per the requirements of the gym, provided that there are no unforeseen constraints.
(Manager 1) and (Manager 2) have been passionate about fitness for years now. The beginning of their friendship was at a fitness centre where (Manager 2) was a fitness trainer and (Manager 1) was a client. (Manager 2) has a wealth of experience in the fitness industry, while (Manager 1) has experience in sales and marketing. They decided to join their expertise together to form Get There.
(Manager 1) (40) – Managing Partner
(Manager 1) is a Marketing professional, holding an MBA in Marketing from the University of Wollongong. He has been working in the marketing industry for over 12 years and was the Head of Marketing for an IT company prior to starting Get There.
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