Marketing Plans and Strategies (Marketing Mix)
Fitness Oasis (FOA) will adhere to a marketing plan to remain competitive in the market and win and retain clients. The business will use the 4Ps of marketing but will also add other 7Ps to make the business successful (Jain & Jain, 2022). The marketing plan has been designed according to the business strategy.
Product
FOA’s management team will start by offering high-quality products that appeal to the market’s target customers. The team will identify the needs and preferences of athletic clients, including their preferred tastes in terms of color and brand. Other factors include the budget, materials, type of athletic activities, and budget. Once these factors have been considered, the management team will identify and communicate with a manufacturer that will meet the needs and preferences of potential clients.
Price
The price of athletic products will consider the existing competition in the market, the cost of setting up the business, and the anticipated period of generating profits. To fulfill this goal, the management team will sell competitively while offering promotions and deals to attract new clients through referrals.
Place
The location of the FOA store will play a significant role in determining its success and financial breakthrough. FOA will be located near fitness centers and in high-traffic areas where customers can easily identify and locate it. FOA will also have an online presence with a website with active links where customers can check out and complete payments with minimal struggle. The website will also be user-friendly and without ads that can distract the customer from completing the purchase. An active support system will guide and communicate with customers visiting the website.
Promotion
FOA will engage in aggressive marketing campaigns and promotions to reach existing and potential new clients. The athletic store will hire a team of experienced designers who will showcase the company’s products and brand. The promotion campaigns will also run on all available media platforms like Twitter, Facebook, Instagram, and TikTok. FOA team will also partner with local fitness influencers to market the business and its brand through events. During roadshow campaigns, the promotion team will offer informative and visually appealing product descriptions highlighting the features of the products and potential benefits.
People
The business will rely on people to succeed in the short term and in the long term. The company will hire and train professionals with a basic background in business operations and skills in the athletic industry. Employees will be expected to provide customers with expertise, knowledge, product descriptions, and guidance when needed. Employees must provide excellent customer service to expand their loyal customer base.
Process
FOA will provide customers with a seamless process for selecting products and making purchases. The business will use the latest technology in the market, including a point of sale system (POS), to streamline in-store and online purchases. The company will use fast and secure checkout options, providing clients multiple payment options, including Bitcoin. The process will be designed with customers in mind to ensure all users have a satisfying experience.
Physical Evidence
The design of the FOA store in the online platform will also reflect what the company will have in the physical shop. The store will be designed with modern and attractive layouts that appeal to the target. Products will be arranged to ensure clients can locate and select items easily.
Target Market: Profiles and Descriptions
Health and Fitness Enthusiasts
FOA will target men and women committed to a healthy and fit lifestyle. This group of customers is characterized by active sports and fitness activities, such as yoga, cycling, weightlifting, and racing. The group puts significant emphasis on quality and functionality, including athletic apparel and accessories. Additionally, this group of consumers is willing to pay the price to get value. Their age range is between 20 and 40.
Casual Fitness Enthusiasts
FOA will target men and women interested in maintaining a healthy lifestyle. This profile is characterized by occasional sporting and fitness activities such as hiking and dancing. The group could be willing to spend money on purchasing athletic products.
Athletes
This group comprises men and women participating in professional and semi-professional athletic events. FOA will describe this group as one that values high-performance athletic apparel that improves performance and prevents injury. FOA targets athletes willing to spend money on products that meet sporting activities and positions in the athletic field.
Sports Teams and Organizations
This profile includes sports teams and organizations that prefer customized athletic apparel and accessories for players and staff. The group consists of customers who prioritize quality, customization, brand, and timely delivery. The teams and organizations are also characterized by team culture and value maintaining their brand in the market.
Strategic Position and Risk Assessment
To determine FOA’s strategic position, a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis and risk assessment of the business are necessary.
Table 1. SWOT Analysis.
Description of Business Risk and Plan for Reducing Risks
All start-up businesses face significant risks, and FOA will have to prepare to handle some of the risks that may arise when it opens its doors. The following are some of the risks and how they may impact the business’s success.
Financial risk
The start-up phase of FOA will be at risk due to the high upfront costs of inventory, rent, marketing, and setting up the website. To reduce this risk, the management team will start with a fraction of the inventory and increase it slowly as the product demand picks up. Additionally, the company will outsource some activities, such as marketing campaigns, and negotiate with the store owner to lower monthly rent. According to Tin (2019), outsourcing can reduce operational costs. There is also an opportunity to secure a line of credit to guarantee enough capital.
Inventory risk
The risk of holding a significant volume of inventory that does not sell can create loopholes for losses. To overcome this risk, the management team will invest in research and development to understand the market and only stock what is needed and what is moving. The team will use data analytics to analyze consumer behavior, track sales, and adjust accordingly to minimize excesses.
Competitive risk
The athletic industry is highly competitive, with established players who have formed partnerships with clients. This can make it challenging for FOA to attract and retain clients. Despite this risk, FOA will develop a unique brand identity that differentiates the company from competitors. The company will invest in excellent customer service, personalized products, and seamless purchase experiences. The firm will also take advantage of social media platforms to create a reliable team of followers who can be converted into buyers.
Supply chain risk
Disruptions in the supply chain can interfere with inventory and affect customers who have placed orders. FOA will reduce this risk by establishing relationships with more than two suppliers and manufacturers to ensure a diverse supply chain. The company will also have a contingency plan for sourcing products from alternative suppliers and manufacturers in case of an issue with the current supply chain.
Keys to Success
FOA will succeed by adhering to some key concepts in the industry and the business environment. Some keys determining the business’s success include an in-depth understanding of the target market, type of products, customer service, technology, adapting to change, and brand identity. In order to understand the preferences and interests of athletes and the items that are accessible, the management team will spend in research and development. They will also offer competitive rates in an effort to draw in and keep customers. The team will be in a continuous process of gathering data and feedback to improve performance. Due to the nature of competition in the industry, the company will liaise with manufacturers to provide high-quality products at competitive prices.
Customer service is also a determinant of the success of FOA. The company is willing to train and only employ people willing to fit into the company’s culture of excellent service. There will be a significant emphasis on employees who understand the brand of FOA and are willing to diffuse the knowledge to clients.
To achieve this goal, there will be a strategy of building a strong brand identity that resonates with the target market of men and women in the athlete’s industry. Technology will be readily available for an effective point-of-sale system and in online commerce to reach clients willing to buy online.
Additionally, FOA will be flexible in adapting to the evolving industry of athletes by staying up-to-date with the trends and evolving customer needs. The management team will look for emerging and trending topics in the industry, competition, and emerging customer preferences, as well as change business strategies and customer service to stay ahead of competitors.
Operations Plan
The operation plan outlines how FOA will operate on a day-to-day basis.
Inventory Management
Effective inventory management will help the firm have all the products that customers want in stock. The company will have an employee and use technology to track the inventory and restock immediately to ensure customers do not miss items. The company will use a just-in-time (JIT) system to minimize the amount of inventory that will be needed (Tien, 2019). JIT is an inventory management system where goods are received from suppliers just when they are needed.
Customer Service
The company will train staff members to be knowledgeable and friendly to clients. Employees will be trained to engage in meaningful conversations with buyers, providing recommendations, and seeking feedback. Employees will also be encouraged to provide immediate and reliable feedback to encourage customers to return. All employees will be expected to be passionate about the FOA business culture.
FOA Store Layout
The design and layout of the FOA store and website will be done with consideration of the flow of traffic and how customers move through the store. There will be a strategic use of lighting, colors, and musical beats that resonate with the age bracket of the target market. Product positioning will be done to make it easy for customers to notice; with price tags and offers or promotions being positioned here, clients can notice easily. This comprehensive operations plan will ensure that FOA runs efficiently and provides excellent online and in-store customer experience. The management team will review the plan every four weeks and revise it accordingly to keep the business operational in the face of any challenges.
Technology Plan
The technology plan outlines how FOA will leverage technology to conduct day-to-day operations while enhancing customer experience and user business success. FOA will select a modern and efficient Point of Sale (POS) System that meets the business’s needs while being affordable (Attaran, 2020). Inventory management software will provide real-time data on online and in-store inventory levels. An e-commerce platform will also be available to sell products online that are similar to the ones available in the store.
A customer relationship management software (CRM) will be acquired to monitor customer behavior and develop effective marketing strategies to convert visitors into buyers. FOA will leverage technology in data analytics to gain insights into customer behavior and identify new trends. Similar to the operations plan, the technology plan will be reviewed regularly and will remain flexible for improvement to ensure that it serves the business’s mission.
References
Attaran, M. (2020). Digital technology enablers and their implications for supply chain management. Supply Chain Forum: An International Journal, 21(3), 158-172. Web.
Jain, R., & Jain, S. (2022). Analyzing and exploring the effectiveness of each element of 7Ps of marketing mix. International Journal of All Research Education and Scientific Methods, 10(1), 243-251. Web.
Tien, N. H. (2019). International economics, business and management strategy. Dehli: Academic Publications. Web.