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Gracie Barra London, Marketing Plan Example

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Marketing Plan

Executive Summary

Fetah Belkalem, founder of Gracie Barra London, had to face a market challenge of increasing enrolment. Belkalem and his management team have been operating GBL very successfully for the past few years. However, they wish to increase the number of enrolments by 40%. Of those who get a GBL gym membership, it is found that males make up 80 percent of the customers base, had attractive qualities, motivated in staying in shape.  Belkalem is also looking to use new promotional ideas targeted at university students, and to also expand some aspects of the gym to attract new people. Upon thoroughly analyzing their situation, the following recommendations have been made:

  • The recommended price is 60 dollars since it is favorable. Offer a 5% discount for referrals for the August session
  • Create and update on a regular basis a Facebook page and a Twitter account
  • Update the current website to a brand new stat-of-the-art website
  • Reduce the monthly payment by $15 per month
  • Target Market Selection: Western University Students

These suggestions have been made for a variety of reasons. Due to the name suggestions, he cannot deviate far from the franchise and so promotions will be in-line with the values of the Gracie Barrra London. With decades of year’s experience, Balkalem is the chief instructor in BJJ and in addition, he has several degrees in the sport science. This is why he is the fact that he is committed to the sport. Despite of his presence, he still has 5 members who aid in the running of the gym. They have identifying and fixing problems with their availability. Notably, with a tight market the above tight be a disadvantage since it is necessary for the instructors to be available for the customer accommodation.

Price reductions are also necessary change. Mr.Belkalem noticed that if he changes a bit of premium fee to be a bit lower, this will attract customers and hence improving the enrolment rate. Considerable, he changed his premium fee to $15 per month and this lead a positive result.

Finally, in addition to the referral discounts, to promote enrolment, a greater web presence is required. Even though this could be done through online advertising, for this business model social media sites such as Twitter, Facebook, and LinkedIn have been recommended. This of course should be combined with stellar website quality. If these recommendations are taken into account, it’s highly likely GBL will reach their goal of a 40% increase in enrollment for the fiscal year.

Performance Objectives:

In 2006, Fetah Belkalem founded a gym Gracie Barra London under the franchise Gracie Barra. Gracie Barra is an existing gym; therefore, this essay report will analyze the perfect job that Gracie Barra is perfect on. Further Balkelem intended to establish the market challenge opportunities. Precisely, Fateh Balkalem aims to increase enrolment of over 40% come next year, and according to the above; the customer traffic will be the performance metric.

What is important to consider in the case?

Several decisions are made according to this essay report; an example of the decisions is the determination of the market target. After which the promotional market will be established to reach the market. Further operational that will determine whether the gym will expand or not and if the following strategies will be reached. For example, the price adjustment, with the market desires in mind.

Corporate Capabilities

What does he do well?

It is pertinent the GBL had invested minimal market resources, and most of the enrolment was as appositive feedback of the word of mouth. Here, the fact is that the Gym was operating with only one manager, and several assistances. Thus, some of the achievement of the manager was that he had a black belt, and had over 40 years for judo and a practitioner for 20 years of the BJJ. He also got education in Algeria and Paris.

What does he not do well?

The cons of the above method are that it is slow and yet Balkalem wants to get a 40 % increase in the next year.

How will his abilities affect the marketing plan?

The above meant that decisions should be directed the new promotional techniques are supposed to target the unreached market. Here, budget should include the promotional alternatives to eradicate the financial constraints. To be precise, the above should meet the purpose of enrolment of the targeted market. GB has limited capabilities since Balkalem is working on the part time schedule.

Industry Analysis

Political

Is the government doing anything that may compete with our business?

For those who seek BJJ as a form of physical fitness,  the customers can appreciate the introduction of the London municipal govenment2010. In addition to the healthy living programs for the increase of the physical activities.

Economic

Is London a good economy to be in?

On finance positions, Mr. Balkalem who is the core operator had to use his own savings to facilitate the advertisement part. On contrary, an investor came in to rescue his expansions expectation. Luckily, the investor did not necessarily need the interest of his investmentthe BJJ gym industry in the London is on high market and that Belkalemm had several competitors to deal with.

Social

Do people want anything that we can offfer at GBL?

Therefore, he strategized his skills and decided to enroll in more of children in order to stabilize the future market. Here, he knew if he gets to enroll more children, then he will have captured the future market. Notably, in the London, more institution has staged the gym training school. Therefore, this calls for well strategy by the Balkalem so that he may defeat them.

Technological

Any new developments in martial arts?

On his view, Mr. Belkalem was on high spirit expanding GBL by addition of the gym for not only physical training but also conditioning. Gracie Bara was in operation bearing in mind that jiu-jitsu was not only a sport but also a way of healthy living extended to all areas both off and on mat. Further, the physical condition was playing a vital role in the above way of living.GBL had several competitors who practiced very hard in order to build more physical conditions.

Competition Analysis

Here, since any business are run based on there competitors, so was the Gracie Barra, where it had several competitors. Some of the main direct competitors were the Academy-brazillian Jiu-Jitsu.the Academy operated on a six days operation a week, had classes for children, beginner, and the adult. They also had an increase in the enrolment, and had an active website that was used for advertisement. The Gracie Brarra charged slightly higher than the GBL and aging they were strongest at the BJJ tournaments.

What do they do that can threaten us?

Competitor: The Academy-brazillian Jiu-Jitsu

The Jiu-Jitsu, despite of the above advantages they also had negatives on the Gracie Barra, as follows; the Gym was ran by the Belkalem’s former students, and they also lacked values and history. They also had very less individuals with black belt for instance it was only poulin who had black belt unlike the Belkalem.further it had fewer  students than the GBL.

Competitor: Bindner´s Jiu-Jiitsu academy.

Another competitor was the Bindner’s Jiu-Jiitsu academy who instilled direct  competition to the Gracie Barra. The Gym academy also had several positives as the, had in the operation for many years, and aging they had been operating under the alliance of the Jiu-Jiutsu Banner. There also offered both the Aikido and the BJJ, and they also had lower prices compared to the Gracie Barra.

Competitor: Adrenaline academy.

The above gym had focused on a wide range of activities for competition training as well as martial arts. They focused in training the aspiring athletics and the owners of the gym had UFC fighters. The academic Gym above had the same price strategy as the Fatehh Belkalem. They operated on a 6 day schedule, which involved nine hours of the BJJ for MMA. Despite the above positives, Adranaline had only two hours of the real BJJ, and further they were MMA based but they targeted professional athletes.

How can we compete?

More of physical training was needed in Belkalem’s training ground therefore, he opt to add the gym training centers. It was observed that physical conditioning played a vital role in physical conditioning life. Therefore, Belkalem decided to change slightly the fee imposed on the GBL. This showed a wide feedback since; it attracted clients since they had already paid a membership fee at a fitness gym. Here, he chose to reduce the payment by $15 per month, which worked a great deal. Considerably, 1,200 square meters was the current measure of the lower gym which was not in use and so, we the expansion of GBL it was convenient for Belkalem to invest almost $ 10,000 which was a start up amount. For good wise decision in a business, he was to invest the amount from outside or external source of capital. Luckily, he managed to secure $8,000 from an investor, who did not actually need an interest on the same. Further $1,000 will come in from his personal savings.

How would they react?

Here, market concerns the learning fee as well as recognition and appreciation to the potential customers. The Price adjustments will be done basing to the customers’ potential as well as the available competitors. Despite of BJJ gyms in the entire of London being priced lower than the GBL, GBL was the lowest if compared to the other gyms in the rest of Canada. In addition to this, no-GB schools in the rest of North America were priced considerably higher. Balkelem decided to effectively market the gym in order to capture the entire current market.

Consumer Analysis

What do they want?

The main consumers were the western university students and they initiatedqualities that are more attractive. There market was a bit large of almost 30,000students, with disposal income, and also had different range of activities andathletes with reputation for diversity. If we dont, how could we give it to them. Would it make sense for us to pursue them?

Male Consumers

Uniquely, the most prominent customer of Belkalem was the male, where almost 80 percent of the male formed the entire GBL’s client. It was clear to Belkalem that male had developed an interest in BJJ, and they had committed themselves in the practicing of the game. Since Belkalem was innovative and more opportunistic, he identified four major motivations. Belkalem noticed the desire to advance in sport by participating in BJJ, martial arts practices and the love of the MMA. Another motivation was the physical fitness of a person as well as sporting activity. Here, BJJ sporting was one way of staying active and healthy. Lastly, were the defense and interest and the competition training. The competition was not so attractive, with limited marketing the customer made into the GBL market, which was the target of all other competition, and there were no an open gap in the market.

Female Consumers

Female participation in the BJJ game was inconsistence since the business was not in a position to maintain a consistent female customer. Thus, the GBL had only two females holding a blue and white belt. Despite the fact that female market was increasing, the BJJ game was not common as in men. This follows with the fact that due to the size of the women, they were not capable in protecting or rather defending themselves. Apparently, the main reason of the game to women was the fact that there was need for women to have their own defense mechanism. Secondly, another notable reason was the need for female to be physically fit. Lastly, the female had a desire not only to experience the BJJ competitive world but also to master the martial arts. Some females like the Kyra Gracie played an important part in motivating and inspire on contrary, to reach successfully out to this group, Belkalem realized that he should ensure a friendly gym. In addition, despite of the favorable environment that Belkalem staged, women were attracted to the gym because of the fellow women Kyra Gracie who was doing well in the field of gym. Therefore, Gracie was not only made as a tool for inspirational but also motivation where he encouraged other women to push through. In general, female had attractive qualities, high and untapped potential market, BJJ suit small size of women for defense purpose, and they were required to have desire to compete. They wanted a friendly gym and lastly they had a open gap in market. He had to maintain a female base that is consistence, should involve other extracurricular activity such as the dance. He had the mandate to maintain consistence in female. There was a need for female friendly gym, which could cost a lot hence using the entire resources.

Children

Children comprised of twenty percent of the population of the GBL. However, the percentage was a bit low in the past years. Not knowing how to target the children inn this group, with the uncertain reaction from the parents, Belkalem decided to try it. Afterwards, the parents decided to help Belkalem and enrolled their children in this game. Here, the parents were worried with their children worsening health as the obesity affected children. In general, this was the best was to counteract obesity, good for self-defense for instance against bullying to mention but few. GBL only offered on e class that if from 4-14, therefore, it was his mandate to change that if he actually needed to teach. Some adult members especially male could be put off.

Target Market Selectio: Western University Students

Why would we pick them?

There main target was the western university students since they are and open gap when it comes to market. In addition, they are capable in observation good loyalty they had disposable income. Another factor is that the western university, there are capability of getting both male and female. The words of mouth was very much prominent in the university.

What are their Needs?

More than 40percent increase could come about easily. A good group can easily come about that will bring good name to the GBL after succession as athlete. Unemployment is not a threat in the western since many students may be having a job or be supported by the p Gracie Barra London is a gym institution that after six years of operation, the managing director Mr.Belkalem has decided to quit his job so that he can concentrate in improving the functionality and operational factors with the company. However, he had to influence the entire London market at great length in order to emerge to be prominent. In the market, he had set aside $3000 for advertisement, which will entail the word of mouth, the use of face book, local newspaper, broad casting in the local television during the sport programs.

Product

Changes: Should we make any?

Belkalem needs to switch from part time to full time. This will enhance a good accommodation of the varying students. Further full time will help the adults who are available any time of the day. The self-defense class will be more vital to the girls, and again, female class will attract more women who will come in and feel comfortable. For those who want too create a name with the GBLL, will need to engage into competition, therefore with above, it is advisable for Belkalem to enact competitive training

Placement

Where can we put our stuff so it best reaches the market we want?

It is pertinent for both the westerns and the fanshawe to access the bus terminal.

Are there any changes we can make? If not, what can we do?

Therefore, if the location is near the bus stop the better. Since he is a channel, there is no need for distribution, since his product is teaching. With the increased exposure, Fateh Balkalem is supposed to chip in during the week to offer classes. This will make him more popular. Since it is not possible to move the gym, then Mr.Belkalem will be required to move to the target.

Pricing

What price is best for our market?

Since the target is the university students, and then they have disposal income to use.

Besides, the budget of students is much lower compared to the men and women. Despite the fact that western students have many free ways of keeping fit, the gym is almost free and the club is much cheaper. The marketing challenge is how to keep the enrolment and not the market.

Promotional

What should we do?

The best promotional alternatives are the LTC bus advertisement and the Western But regarding of the youth of the target population, the best way of promotion is through social networking, setting up ad campaigns in Facebook and Twitter.

How often, how much would it cost, message sent & feedback?

Western gazette

Specifically this targets certain age groups, and again it is mainly offered to traffic locations where 44,000 papers are read. Large advertisement can be affordable since the price is not too much. The western gazette should mention western students. Advertisement will mention what the institute is all about, and so this will narrow to the history.

LTC bus advertisements

Being a wise thinker, Belkalem decided to advertise the GBL awareness with London transmitting commission. The however, proved a considerable amount of exposure across the entire London city. Here, the busses did switch routes automatically in the entire current 38 route in the entire city. This was a good exposure to of almost 14 to 20 hours per day. Belkalem made this wise decision since it actively conveyed the required advertisement information to the entire city. The above way of conveying information was more effective since it resulted to positive feedbacks.

Facebook

The company’s Facebook Fan Page will allow it better engage its consumer base through social media, as well as build customer relations on a more intimate level for more information see Exhibit 5.

 Twitter

Social network marketing through the company’s official Twitter account can be managed through either paid advertising or by hiring on staff social media experts.

Conclusion

 It is well know that the market challenge was to increase the enrolment of about 40 % due next year. In the essay report, the concerned market was the western student. They were best because of the open gap market, GBL offered their wish like the extracurricular activities such as the self-defiance and fitness more so, and they were highly profitable. Using promotional strategy on grounds, they are the easiest group to be targeted. Here, the strategy was to use the LTC bus advertisement, since the primary means of transport in the western student is the bus.gym expansion was not necessary due to the availability of gym at their vicinity. The recommended price is 60 dollars since it is favorable. The price could not drive away the students and at the same time, adequate for premium demonstration. If the above is well followed, then the target of 40% increase will be reached.

Marketing Math

Exhibit 1: Marketing Math

This method is used to determine the exact point at which the business makes neither takes a loss nor makes a profit. It is calculated at a point where sales have grown at a greater rate than costs and the two lines cross.

We assume that all the cost are fixed, for that reason, replacing the data in the formula, we obtaing the Break-Even Point for each of the group of costumers.

Exhibit 2: Fixed Costs

Fixed Costs

Exhibit 3: Break-Even Point

Break-Even Point

In this Break-Even chart, it is shown the fixed costs, (the total costs) that every group causes where it is very significant the group formed by Adults, leaving the rest of the group with a same amount of expenses, almost a fourth of the main group.

Sensitivity Analysis

Marketing Math for Gracie Barra Considering All Possibilities

*It is assumed that the price increase $10 in each segment.

Selling Price Decrease Sensitivity Analysis

*It is assumed that the price decreases $10 in each segment.

Sensitivity Analysis

PRICE INCREASE VS PRICE DECREASE

Price Increase vs Price Decrease

*Difference in the units of product needed to be sold to cover the costs and point from the company starts having benefits.

Exhibit 5: Facebook

Facebook

Exhibit 6: Twitter

Twitter

[1] Decrease 10 CAD

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Marketing Plan

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