Business Model Term Paper
Introduction
Fitness and nutrition are increasingly becoming a big business in the United Kingdom, particularly in the city of Manchester where there is a large number of people focused on a healthy living and fitness. Fitness is not only concerned about being physically fit, but also healthy. People can achieve physical health via physical activities, consuming a balanced diet or both. In this case, the business is concerned with provision of nutritious meals to gym attendants in Manchester City. Furthermore, the physical fitness restaurant will offer consultancy services to all interested parties concerning their calorie intakes and weight loss or gains. The business will be located in the city of Manchester close to the famous City of Manchester Stadium (Etihad). The consultants will advise the cooks on the actual amounts of food items customized per the requirements of each client.
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Marketing Mix
Product Strategy: The restaurant will provide a variety of food items to the customers most of which will be sourced from the green groceries. Among them are balsamic vinegar that adds a low calorie flavor to veggies and salads, in-shell nuts that makes a person satiated because of their protein and salads, and fat free plain yogurt. It is noteworthy that all the food items will be prepared based on the nutritional needs of each person. Besides, professional nutritional consultancy services will be availed to each person to enable achieve their fitness goals. Beside from offering physical fitness solutions, we intend to offer a variety of nutritious foods to our clients, including avocado, coconut water, and almond milk which are rich in nutrients. We value product diversification to meet the varied health and diet needs of our customers.
Price Strategy: For us to compete effectively, we are using a low competitive pricing strategy (Mihai 2013, p. 298). The prices of our products and services are a bit lower compared to our rivals in the fitness and nutrition industry.
Place Approach: The nutrition restaurant and consultancy services will be situated at the center of the city of Manchester next to the most dominant City of Manchester Stadium. The objective is to target the clients visiting the stadium to watch matches throughout the week. Our shelves for the food products in the cafeteria will be clean.
Promotion Approach: We shall create awareness among the current and potential customers attending the nearby Gyms concerning our products. The new company will advertise our brand on billboards along busy streets in the city of Manchester (Mihai, 2013). In this case, we plan to employ the social media manager who will help us explore the available social media platforms that can help the company reach as many customers as possible. As such, our marketing strategy takes into account the use of Facebook, the company’s website, and Instagram among many more.
Feasibility Analysis
The fitness activities like gym will be carried out inside a building. The building to be used will be hired. We shall buy fitness equipment such as gym equipment for each group of physical fitness activities. The company also plans to get physical fitness trainers or coaches who will be required to train our clients in different physical fitness activities. The trainers will also prepare their training sessions and track the performance and satisfaction of our client with help of the assistant manager. The firm will also have the fitness nutritionist with the skills in this field. Their work will be to conduct fitness and health check-ups as well as follow-ups to our clients.
The budget for our start-up will be approximately $200,000. The costs will comprise the rent, salaries, obtaining a legal permit to operate the business, and purchasing of the equipment and other materials. There will also be a need to sustain the operations of our company and this will cost nearly $20,000 per month. These costs will comprise the maintenance of our equipment and machineries used in the fitness facilities, water bills, and electricity bills among others. It is expected that the payback period for this business will be three years since there is hope that our clients will be increasing every and thus increasing our returns on investment.
The Competitive Environment
New entrants: There are several potential entrants into the fitness and nutrition market because of the lucrative nature of the business. New entrants will reduce the market share of the company and resulting profits.
Substitutes: It is evident that other firms in this industry will offer differentiated food items, nutrition consultancy, and gym services. Substitutes will also reduce the company’s market share. However, the secret to our competitiveness will be product customization, low pricing, and quality (Kotler et al. 2009). The company will make sure that the prices are fair to encourage price-sensitive consumers.
Competitive Rivalry: We have several competitors in the fitness and nutrition industry, which include Xmiles UK Ltd, Only Approved, and our Path, as the highly rates firms in this field. Therefore, we intend to use pricing strategy by giving affordable products as opposed to those offered by these companies to outperform them.
Customer’s Bargaining Power: We are aware that customers can demand the improvement in the quality or the prices that are lower. We shall ensure that we do not compromise the quality of fitness and nutrition products by lowering their prices.
Supplier’s Bargaining Power: It is important for us to note that the bargaining power of the suppliers may affect us when they agree to raise the prices of the products they supply to our company. Therefore, we shall establish a good relationship with some suppliers whom we believe will continue giving us items regardless of the changes.
We have also considered the Political, Economic, Social, and Technological (PEST) factors in our business (Sammut-Bonnici & Galea 2015, p. 41). In the context of political factors, we have realized that the sales go down when the country is nearing the general elections, and therefore, we plan to maximize our sales before this period. The city’s increasing population of people with health and fitness needs makes our business viable. Modern technological advancements are another great opportunity for us to develop new products with a higher quality as compared to our competitors.
Business Aims and Strategy
The company’s greatest aim is to ensure quality nutrition, weight loss, and health eating among our customers by fulfilling their goals of heath. Secondly, we intend to provide wholesomeness and balance in their diet to improve people’s fitness and nutrition. These goals are important they are focused on solving the demands of nutrition among the fitness consumers. The aims are also crucial since they target the fitness consumers whose attention is on improving their diet and nutrition for a healthy living. Additionally, the aims that this start-up business has established are specific, measurable, attainable, relevant, and timely (SMART).
Our strategy is focused on delivering the products and services on time and high-quality products. We shall engage experts in this field in research and development so as to develop and produce the products which meet the various needs of the gym-goers which have not been fulfilled by the existing fitness and health organizations in the city. Our services like taking nutritious meals to gyms are something which has not been practiced by other firms in this industry. Therefore, this strategy will make us meet the demands of those people who to gyms and feel they lack the nutrition element in their fitness program.
Conclusion
Our company seeks to solve the increased concerns of living a healthy lifestyle through physical fitness and nutritious food consumption. The marketing strategy of the company takes into account the four elements of marketing mix (4Ps). From Porter’s five forces and PEST analysis, we are likely going to be faced with adverse rivalry from the already established fitness and health companies in the City of Manchester. The factors which are going to the make our company have a competitive advantage include fair prices, quality products, and a variety of food offerings. Therefore, the success of our firm will utilize the market opportunities presented to us including many gym-goers not getting satisfied with what the current firms in the industry are offering them.
Reference List
‘The Gym Wembley Park: Keep up to Speed From Just £17.99 a Month’, Retrieved From: https://www.thegymgroup.com/find-a-gym/wembley-park/.
Kotler, P, Keller, KL, Brady, M, Goodman, M, & Hansen, T 2009, Marketing Management, Pearson Education, New York.
Mihai, A 2013, ‘Sport Marketing Mix Strategies’, Practical Application of Science, vol. 1, no. 1, pp. 298.
Sammut-Bonnici, T & Galea, D 2015. PEST analysis, John Wiley & Sons, Hoboken.
Stylus, SL 2018, “Nutrition: How are Operators Responding to New in-gym Nutrition Opportunities?” Health Club Management, Retrieved from: http://www.healthclubmanagement.co.uk/health-club-management-features/How-are-operators-responding-to-new-in-gym-nutrition-opportunities/32404.
