This activity is based on a chain of fitness centers. They want to increase their ongoing level of promotional activity, but are unsure how best to promote themselves in the marketplace. Therefore, this activity requires you to determine the most appropriate promotional strategy (given the information in the following case study).

ACTIVITY/TASK

Fitness Fast currently consists of eleven fitness centers throughout Dubai. Their goal is to expand to around 20 centers in Dubai before expanding to other Emirates. Currently, most of their fitness centers are operating at only 60% capacity. This means that they will greatly benefit from more customers (as most of their costs are fixed costs - in premises and equipment). As a result, they have budgeted just over $1m (which is a substantial amount for them) for an upcoming promotional campaign. Their problem is that they are faced with too many choices and are unsure how to structure their campaign. That's why they need your help/advice.

They have identified five different segments of people that are attracted to joining a fitness center. These segments are:

The firm is also unsure about what type of message they should communicate and the best way to present that message. To help them with their decision, they have constructed the following:

And, of course, the firm hasn't even considered the question of which media vehicles they should use. However, given their fairly limited budget, they are most likely restricted to:
• Radio advertising
• Local paper advertising
• Local cinema advertising
• Internet ads
• Shopping mall promotions
• Letterbox drops
• Billboards
• Taxis and buses
• Publicity
• Customer referral incentives
QUESTIONS
1. Which target market/s to pursue? (Limit to one or two for the simplicity of the activity)
2. Therefore, which appeal/s, message/s, and source/s to use?
3. Which media vehicles to use?
4. Outline why you think your plan is a good approach?
Read and comment on other colleagues' posts by stating whether or not their approach is appropriate. What would you have done?

Transcribed Image Text:

Proportion of Name of Needs Profile Market Segment On average, this group is aged 18 to 35 and Looking This group is attracted to improve tend to be fairly dedicated to fitness – but 30% Good the physical look of their body they also like to party too As the name suggests, this group is This group is slightly older, around 30 to Losing attracted to a fitness center to help them with their weight loss goals 45 years. Their fitness dedication seems to 20% Weight go in cycles (that is, up and down) This is a relatively new segment. This group is predominately aged 50 years Just They view fitness as vital to long- plus. They don't have ambitious goals, and 10% Surviving term health and work out to help are happy to do a light work out a few make their day-to-day life easier times a week This group mostly consists of females aged This group see fitness center as a 25 to 40 years, who work part-time (due to Among great place to make friends and meet children). They are reasonably committed 30% Friends people. to fitness, even though it is their secondary motivation These people use fitness centers to This group is mainly aged under 30 and are Pushing help them achieve goals in other areas (that is, they play top level Boundaries sports, or engage in extreme or endurance sports extremely committed to their fitness goals, 10% even though they may only use fitness the centers on an ad hoc basis