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Lecture

Business Administration 1220E Lecture Notes - Maximum Exposure, Fledge, 6 Years


Department
Business Administration
Course Code
Business Administration 1220E
Professor
silverberg

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Business 1220: Marketing Report
Gracie Barra London

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Executive Summary
This marketing report was created to aid Gracie Barra London’s owner, Fateh Belkalem,
exposure of his gym. Fateh wanted a 40% increase in enrolment in the upcoming year. This
means that there would be approximately 40 new members. Bekalem was thinking of expanding
his gym into a fitness facility as well. This expansion would take away from his $3000 marketing
budget leaving him with only $1000 to spend.
GBL was doing very for its self without very limited marketing. Fateh was only doing this part
time and wasn’t investing much time into the gym. He had lower ranked belts teach most the
classes which wasn’t an issue but sometimes they ran into scheduling problem because
instructors couldn’t make it. GBL’s Ju-Jitsu was superior to most because it was Gracie Ju-Jitsu.
MMA had just been legalized in Ontario and martial arts in general were booming.
There is a lot of competition in town for GBL. Some of the other facilities offered more arts for
the same price. GBL lead these gyms due to their quality and Fateh passion for the BJJ lifestyle.
Also the Gracie name is a powerful brand name with a lot of customer loyalty. The name its self
affects customer perception with because it is renowned.
GBL had 4 target markets to choose from. These markets were the Western students, males,
females and children. Even though each market had its benefits that would help GBL’s
enrolment, the male market was the best bet. Most of GBL’s customers were from this market;
therefore with a proper marketing strategy GBL would be able to increase their presence.
GBL could have increased its enrolment price, but it was decided that in order to stay
competitive with the other gyms GBL could not afford to increase the price. GBL did add Judo
as another art that they provide. Judo and Ju-Jitsu complement each other very well because they
are both grappling based arts. There weren’t many options when considering place because this
is a service and not a product therefore there aren’t different distribution chains.
GBL’s best promotional methods were the direct mail and LTC ad options. Both of these cater
perfectly to the target market. Also with the direct mail it is possible to specifically place the
mail in households where GBL’s target market is present. The LTC busses allow for maximum
exposure around London. The $3000 marketing budget was feasible for GBL. It wasn’t a major
investment and the return on this investment will be very high. GBL will be pleased with the
opportunities that will come with their enrolment increase.

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Marketing Challenge
Fateh Belkalem is the owner and head instructor of a Brazilian Ju-Jitsu (BJJ) gym in London
Ontario known as Gracie Barra London (GBL). Fateh has already established a good customer
base in his 6 years of operation. M. Belkalem’s goal is to increase enrolment by 40% for the
upcoming year. To get that increase in enrolment GBL will need to decide on the following: a
target market that will be focused on, a method or methods of promotion will need to be chosen
as well as whether or not improvements will be made to the schedule and facility of Fateh’s gym.
Internal Analysis
Finance
This year sales for GBL were approximately $92,400 (Exhibit). Considering that Belkalem has
hasn’t been focusing full time on GBL the sales revenue number isn’t too bad. The current
advertising budget for GBL is $3000 of Fateh’s own money that he has saved up. Fateh is willing
to reinvest in his company, this hints at a bright financial future for GBL. If he expands his gym
into a fitness gym as well he will he will only have $1000 marketing budget. This may not be
enough to achieve his 40% goal.
Marketing
GBL’s greatest marketing tool is the Gracie name. The Gracie name is renown not only in the
BJJ world but it all martial arts. The Gracie name implies quality training. Without a big enough
budget to create a full fledge marketing campaign, the Gracie name will allow for the greatest
exposure of GBL. Gracie Barra’s efforts to improve its franchises will also be a key factor in
expanding GBL’s name.
Operations
Fateh dedication and Gracie relationship makes it evident that GBL offers a great product. Now
that Fateh will be operating GBL full time, some of the previous restrictions regarding the
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