Solid Marketing Report 2012

12 Pages
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Western University
Business Administration
Business Administration 1220E
Eric Silverberg

Student: Benjamin Wiseman 1 Executive Summary Gracie Barra Jiu-Jitsu is a chain of Brazilian Jiu-Jitsu (BJJ) gyms started by Carlos Gracie Jr. in 1986. Gracie Barra London is an independent franchise of Gracie Barra Jiu-Jitsu owned and operated by BJJ black belt Fateh Belkalem. Beklahem has noticed that growth in gym membership has slowed down, and is looking for a way to increase gym membership by 40% in the next year. Because the current gym membership is 100 people, this means that the 40% increase is also a forty member increase. With a $3,000 budget for promoting the business, and the option of a gym expansion using 2/3 of the promotion budget and a private investment, Belkalem is looking to target a specific market for membership. In order to successfully achieve the marketing challenge of 40 new members within a year it is necessary to analyze Belkalem’s business, as well as the environment surrounding the business, its competitors and its consumers. It is also necessary to recommend the most suitable target market for the 40 members, and the best way in which to modify the gym’s product, placement, pricing and promotions. After analyzing Gracie Barra London internally, and analyzing external factors, it is clear that these are the best options for the gym’s target market, product, placement, pricing and promotions: - Target Market: Females ages 18-40 - Product: Addition of female beginner classes and self-defense classes - Placement: unchanged - Pricing: unchanged - Promotions: LTC Bus Ads and Western Gazette Ad These recommendations were made after analyzing all possible options. The reason that females 18-40 are the target market is that Gracie Barra has zero female clients and has no share in a large market, and that females 18-40 are very concerned with learning a practical method of self-defense such as Brazilian Jiu-Jitsu. The reason that these classes were added to the product was in order to make a more female-friendly gym and classes that would be more attractive to females whose priorities are self-defense and who feel uncomfortable grappling with males. The placement and pricing remained the same because it was unnecessary to change either, and changes to either could have had a negative effect on reaching the goal of 40 new members. These promotions were chosen because they will give the business the most positive publicity, they use the high majority of the money allotted for promotion, and they will take very few new memberships for Belkalem to profit from the investment. Overall the recommendations made in this report will maximize Gracie Barra London’s chances of successfully reaching their goal of 40 new members in the next year. Student: Benjamin Wiseman 2 Marketing Report Introduction: Fateh Belkalem is the owner and operator of Brazilian Jiu-Jitsu gym “Gracie Barra London”, and his marketing challenge is to improve enrollment in his gym by 40% in the upcoming year, from 100 full time members to 140. In order to do this he intends to choose a target market, cater to their needs, invest $3,000 in advertising and potentially expand his gym to incorporate strength and general fitness training. This report will begin by analyzing Gracie Barra London and its surrounding environment. This report will then recommend the ways in which Belkalem should modify his business in order to successfully meet his goal of a 40% increase in gym enrollment by the next year. Analysis: Corporate Capabilities Gracie Barra London is very limited in their financial capabilities. Belkalem’s initial investments have left him in a position where he has very little money to put back into his company. Gracie Barra London is limited to $3,000 to spend on marketing, $2000 of this money can be spent on a gym expansion for which he has secured an $8,000 private investment. Belkalem has very little experience in marketing his gym, with most marketing in the past being through social media and word of mouth. Despite this, the Gracie Barra franchise is incredibly marketable because it is one of the largest and most prestigious Jiu-Jitsu gym franchises. Gracie Barra London gained half as many members as they aim to gain this year despite the lack of advertisement. This Student: Benjamin Wiseman 3 success despite lack of advertisements shows consumer faith in the Gracie Barra name. It is unlikely Gracie Barra London will experience capacity restrictions because they have the opportunity to run many more classes in the time that they are open, and also have the potential for the downstairs expansion if membership growth is extreme. The facilities at Gracie Barra London are high quality do to the money Fateh initially invested in the gym. The instructors other than Belkalem at Gracie Barra London are of high quality, but they do have some issues with reliability. Belkalem’s qualifications as a prestigious martial artist, and his enthusiasm for the sport is very attractive to consumers. However, he worries that there may be members who are unhappy with unreliable instructors. He has had successful relations with many customers particularly males and children, but has had difficulty establishing consistent female membership. Industry Analysis Belkalem should be optimistic that the Brazilian Jiu-Jitsu industry is growing due to increased interest in Mixed Martial Arts. However, he should consider the current economic hardships in London, because Jiu Jitsu is one of the most expensive fitness opportunities. Belkalem should also consider the social implications of the popular culture spotlight on MMA and Jiu Jitsu competitors and how competitors promoting gyms has led to greater success. Competitive Analysis Student: Benjamin Wiseman 4 There are three direct competitors to Gracie Barra London: The Submission Academy- Brazilian Jiu-Jitsu, Bindner’s Jiu-Jitsu Academy, and Adrenaline. Two Competitive Positioning maps (see Exhibit 1) show Gracie Barra’s status amongst its competitors. Submission Academy- Brazilian Jiu-Jitsu’s owner/operator is a purple belt. This means that the instruction at Submission Academy is of a lower quality than at Gracie Barra. Submission Academy is also inferior to Gracie Barra in the amount of hours of lessons they offer weekly and thus the value of their memberships is lower. Submission Academy is cheaper then Gracie Barra which is a big advantage in a weak economy. Submission Academy’s biggest assets that separate itself from Gracie Barra are its sleek website and presence in competitive Jiu-Jitsu, both of these will attract new members who are interested in starting Jiu-Jitsu training. Bindner’s Jiu-Jitsu Academy is operated by a very successful Aikido academy, meaning it has the opportunity to attract customers from Aikido to try Jiu-Jitsu. Bindner’s also offers the cheapest membership of Gracie Barra’s competitors, which will attract member’s hurt by the weak economy. Bindner’s major drawbacks are there lack of hours and inexperienced Jiu-Jitsu instructors meaning that Bindner’s has much lower quality and value in its membership in comparison to Gracie Barra and Submission Academy. Adrenaline is primarily an MMA gym which teaches several martial arts. This is an advantage because of the popularization of MMA and the potential for crossover from wrestlers, kickboxers, and other martial artists into Jiu-Jitsu. It also has the image of prestige because it is partly owned by some of the most famous Student: Benjamin Wiseman 5 Canadian UFC stars such as Mark Hominick. Adrenaline also offers the cheapest children’s memberships, meaning that they could get many more children who continue on to become members as adults. Adrenaline’s major drawback is that it offers significantly less hours of actual Brazilian Jiu-Jitsu than the other three Jiu- Jitsu gyms, meaning it is unlikely for a devoted BJJ practitioner to join Adrenaline. Consumer Analysis The current customer base of Gracie Barra Jiu-Jitsu is comprised mainly of males, and children, but potential customer groups include students and females. Males practice BJJ for health, self-defence and competitveness. Males are a huge market for Gracie Barra, but they can receive more memberships if they concentrate more on physical fitness through the gym expansion, or offer more competitive classes. Children practice BJJ for physical well being and for the martial arts effectiveness as a anti-bullying tool. A way to increase children’s
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