marketing notsolution.docx

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Department
Business Administration
Course
Business Administration 1220E
Professor
silverberg
Semester
Fall

Description
Business 1220: Marketing Report Gracie Barra London 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. 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 schedule will be eliminated increasing customer satisfaction. Also his investment in a better Tatami will enhance the facility. Human Resources Fateh Belkalem vast history and experience in the martial arts world will provide great knowledge on how to adapt to the changes in the martial arts indusry. His experience will also allow him to provide the best experience for his students. His other instructors are well trained but GBL needs to solve its problem with rescheduling due to instructors not making it. External Analysis Political In 2011 MMA was legalized in Ontario, this has created a lot of media buzz and it increased the exposure for martial arts in Ontario. Economic London’s difficulty to recover from the recession and its high unemployment rate means that people may not have disposable income to spend on an activity like BJJ. The students in London also may not have enough money to cover a monthly cost due to the tuition and living costs. Social In the previous year, the UFC has held their biggest event in history in Ontario. Leading up to this event there was a lot of promotion done regarding MMA which lead to an increase in knowledge of the arts like BJJ. Also MMA is the world’s fastest growing sport, its exposure is higher never than it ever was with the new TV deals the UFC has signed. Technological There hasn’t been any advancement in technology that lead to an improvement in BJJ training or any martial arts. Competitive Analysis Direct competition The Submission Academy is open under the Drsydale name, a name that is synonymous with quality in the world of BJJ, this will attract customers. That said there lower prices may portray a lack of quality, when considering consumer perception, for those looking to compete. The academy does not have many hours of operation every week so the students don’t get as much practice time. However, the Academy’s presence at BJJ tournament gets its name out there and creates buzz about the gym its self, this is something GBL should consider. Bindner’s Ju-Jitsu Academy is not a Ju-Jitsu based gym and the BJJ instructor is not a black belt proving that the quality offered is not upper-class. The Alliance name is not a heavyweight in the BJJ world which is a lack of presence when comparing names. Theie variety of martial arts offered is a good way of attracting more customers because some people may not want to do only BJJ. Adrenaline MMA’s greatest asset are the owners’ reputation. They are all UFC fighters which implies that they are superior to all the rest even though it may not be true. Its variety of arts makes it ideal for someone who wants to do MMA but for specific arts it portrays a lack of focus on each art meaning that the direct quality of the art may not be great. Indirect completion The indirect competition is vast in London with the government implemented programs which increases the exposure of other recreational activities to the population. Other physical activities are also much cheaper than BJJ and some are even free and there is no set schedule which allows for freedom of choice for the practitioners. Customer Analysis Western students The Western campus is densely populated, this makes it easier to get exposure with a limited advertising budget. Students are looking for new ways of competing and staying in shape, BJJ provides that. This market is always aware of what’s popular, seeing that MMA is growing and their fan base is dominantly this age group, the students will have passion to practice BJJ. Although most students do not live in London, they are here for 8 months of the year which will allow for enough time to enjoy the art. GBL isn’t located too far away from campus so travel should not be an issue for most. The pricing could end up being too much for the students to afford. Males This market may already be saturated, making it difficult to keep pursuing them. Males are looking for new ways to stay in shape both competitively and or recreationally. Most men will probably be attending evening classes. It will not be as difficult for them to reach the gym because they may already have means transportation. Also the males will be able to attend the gym all year because they are most likely living in London. Females This is a market that is yet to be hit by the BJJ gyms. Females will enjoy the benefits of BJJ because it allows for physical fitness improvements as well as the ability to protect one self. Like males, the females should be able to frequent the gym all year long. Females may want to have their own class instead of training with men which could cause a problem because it will be very slow until there are enough females for a full class. Therefore achieving a 40% enrolment increase may take longer. Children This market may be difficult to reach because they will have to go through the parents and BJJ will be competing with the more common arts like Karate. It may be more difficult to attend the classes for children during the year because of school. Also the classes will need to be smaller taking away some practice time for the other practitioners because there will be more classes. Marketing Decisions Target Market GBL’s current marketing strategy is limited. There hasn’t been much marketing done and yet they have managed to attract a solid male base. The western students may not have the time or the financial means to participate in BJJ. The children will be more difficult to reach because to target them
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