Introduction scenario

As the business manager of Bounce Fitness, you are always looking for new ways to keep clients motivated and engaged. Clients give several reasons for not maintaining their exercise program. The number one reason is a lack of motivation.

After careful analysis of Bounce Fitness' current engagement practices and industry insights, you believe a formal client engagement program will improve motivation resulting in significant increases to client retention, program completion and revenue streams.

To achieve a positive return on investment, you will need to develop a resource proposal and if accepted, manage the resources throughout the planning, implementation and monitoring stages of the program.

Business Background

The company

Bounce Fitness is a dynamic fitness corporation positioned to capture substantial market share in one of the fastest growing service industries in Australia. Bounce Fitness commenced operation in Cairns 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 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 the number of centres as demand increases. It is predicted the investment per centre will 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.

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 emphasizing 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.

Part 1 Instructions

a.Resource proposal:

a resource proposal on the nature and level of resources needed to achieve the program outcomes including information received from consulting with member/s of the management team. Your resource proposal will include:

• Introduction - an overview of the context of the proposal and what you are trying to achieve for the program by acquiring the proposed resources .
• Background - describe the type of resources needed, why they are needed, what they will be used for and where they will be acquired.
• Supporting evidence - quantifiable measures of the benefits to the business .
• Risk and issues - any risks or potential issues that the acquisition of resources may present to Bounce Fitness, including challenges with implementation and impact on existing processes .
• Budget - limitations and costs; how the resource is within the limitations of the budget, or any requests for changes to the budget to purchase the required resources .
• Recommendations - recommendations moving forward, based on valid evidence and the benefits of implementing the resource proposal .

b. Cost versus benefit analysis:

• Conduct a cost versus benefit analysis of the resources described in the resource proposal

c. Proposal for sharing resources:

• Identify at least two opportunities where resources may be shared across the organisation

Part 1

Report template

a. Resource Proposal

Introduction :

Background :

Supporting evidence :

Risk and issues :

Budget :

Recommendations :

b. Cost versus benefit analysis :

c. Proposal for sharing resources :

This is what you should know about the Client Engagement program: Description: Bounce Fitness needs to build better relationships between personal trainers and their clients through a client engagement program. Bounce Fitness offer members the use of a 'Workout App' but it is under utilised. For the client engagement program to be successful, personal trainers will be in regular contact with their clients through: 0 text message reminders 0 making calls to check client exercise and dietary progress 0 up-dating workout plans via the Workout App 0 posting inspirational content on social media 0 monitoring social media engagement Objectives: I to introduce a formal client engagement program to: 0 decrease dropout rate - (non-participation) 0 increase client retention - (cancellation ofmembership) 0 increase training program completion 0 improve personal trainer KPI performance 0 Increase profits SMART Goals: Goals Current Target Timeframe Increase client retention 5 months Increase program completion 12 months Increase net profit $350 059 12 months Ta rg et , Timeframe 30 clients each Personal Trainer Performance KPls Client cancellations 10% 6 months Client program completion 90% 6 months Contact clients - text message/ 0 30 clients weekly calls Post to social media 0 1 post weekly Stakeholders: Internal stakeholders: CEO: Margaret House Management team: (Craig Fisher, Sarah Kelsall, Paul Daly, Don Fraser) GM Finance: Steve Brinkley GM Marketing: Kath Jones GM Human Resources: Laura Irish Centre Managers External stakeholders: Suppliers: national & international suppliers Logistic company: Fasttrack Industry body: (ASF) Australian Sport Foundation Personal 8 participating personal trainers - (2 X PTs in each centre) trainers: Estimated engagement hours per day (5 days) - 2hrs x $35 p/h = $70 Estimated clients per trainer - 30 clients Types of IT resources - External resource: (no current mobile Wi-fi service capabilities for resources each device) required: Physical resources - External resource: (no current equipment capabilities for each personal trainer) Human resources - Internal capabilities: (no current hours allocated for engagement to personal trainers) Program Budget: Total budget for the program (Year 1) = $100,000 Budget Costs: IT resource estimate: $40 - $60 per month Physical resource estimate: $300 - $500 Human resource estimate: $80,640 Allowable 5% allowable variance between budget costs and actual costs variance: Timeframes: Program start date: 6 weeks from current date: XX/XX/20XX