Business Plan For Sandton Fitness Centre Marketing Essay

Business Plan For Sandton Fitness pump Marketing evidenceSandton physical fitness centre and beauty holiday resort is a new gym that is for everyone (male and female) that creates a comfy environment for everyone to pursue their fitness goals. It is land site in Sandton at Johannesburg. Sandton fitness centre and beauty spa have the intimately satisfactory/best equipment, best personal trainers, dietician, special classes and psychologists.Sandton fitness centre and beauty spa is fit(p) in the urban where mountain have a very active life and very little time to sp final stage on fitness and rosy-cheeked life. He imposture disease and obesity be on record high causing addition in wellness club demand.Low income trade place incision is ignored by key competitors in the marketClub memberships in southeast Africa have increased every year since 1994 and a fuddled market makes a strong profession. We are a solid investment beca do start-up sports gyms on average ram in 1,000 new members per year.This leave alone allow our worry to break even in less than five years.Our club, Sandton Fitness Center forget offer its members quality operate and benefits that no other(a) club croupe offer. We want to take investments and use them wisely in order to create a sports facility that pleases customers. In sports clubs, the top five most profitable programs/services are personal training, massage therapy, food/beverages, an aquatics program, and a tennis program. Our gym pull up stakes supply all of these services and thus increase our productivity. We allow build a large complex that allow accept a pool, personal training facilities, basketball courts, a day spa, tennis courts, and many other features to attract business organization. In Sandton were our fitness center allow be situated has 20 to 64 year old population. This means not only that our clientele pools is large but that these people are experienced and have deliver the goodsed the socioeconomic status that will be needed in order to attain and principal(prenominal)tain our service.In conclusion, our profitable new gym will be a coordinated effort among four aspiring entrepreneurs to create the ultimate in sports and leisure fitness.Company DescriptionSandton Fitness Centre and violator Spa are focused on teenagers (13+), young adults and adults. Sandton Fitness Centre has its distinguishable programs for different age groups. Sandton Fitness Centre is 55,000 square feet. It is located in 1560 Grayston Street, in Sandton.Sandton Fitness Centre and watcher spa also have a childcare centre, where they look later on children while their parents are busy with their workouts. The childcare centre feces actually care for 40 children but only 10 infants.Sandton Beauty Spa is a new destination offering customers the combination of full body massage, waxing, body treatments, facials, manicures, pedicures, anti- aging treatments and lasers.Company historyFi tness Centre and Beauty spa was created on 14 February 2007, to provide busy and working people with a fitness centre and a beauty spa. Fit centre and a beauty spa all combined surprised and made people excited.Fitness centre is privately financed by businessman and investors. More than 80,000 was invested into the company. The cash cover equipments, advertising campaigns, flyers, posters, advertising an internet and to create a domain name. the company struggled for long, most people preferred the gym not the beauty spa, because they were complaining and unhappy just about the be. So the centre had to lower them a little bit. gross revenue were also less. So Fitness centre decided to make specials every after two months and on special occasions kindred Valentines Day and birthdays, but only on the beauty spas side. The gym price remains the same. At the end things got better.Mission statementsCreate members workout environment that promoters confidence in our clients. Fitness centre and beauty spa provides our members with beauty treatment at a graceful price and hawkish price, while providing with the high level of customers service and satisfaction. Our business is focused on everyone most especially celebrities who care a lot about fitness and looking good.Product and ServicesFitness Centre and Beauty Spa Services are the followingFitness centre has a overlord personal trainer who will assist everyone in the gym.Our personal trainers assist you with a exercise program.Fitness Centre also has a qualified dietician who will dish each member on his/her best and rose-cheeked food to eat.Inside the gym at that place are paramedics who are there to help people if may be a member gets injured or collapses, or any other sickness, they are there full time.Fitness Centre has also hired a qualified psychologist, who will help with lots of stress and encouraging them for a way forward to live a healthy life.Beauty Spa ServicesFull body massageWaxingManicure PedicureAnti ageing treatmentsFacialsLasersOffer creams and beauty product on saleIndustry analysisSizeThe health and fitness market is very large and still growing more and more because of the health multifariousness people have become more health conscious in an effort to preserve and prolong their lives due to the fast pace living drift of today.The fitness and health industry is a 40 billion dollar that is fast paced and innovative and highly competitive.In South Africa the market is not mature yet it is still in its infancy at the moment.GrowthThe international health and fitness industry has self-aggrandizing approximately 12% for the past hug drug with the exception with 2009 it decreased 3 % due to the slow downward(a) of consumer spending because of the global credit crisis.Locally the health and fitness industry has also grown especially because of the performance of one the leaders of the local health and fitness industry Planet fitness was voted the best performi ng companies of 2010 despite the slow down of the economy.Sales projectionThe over all industry is pass judgment to only grow 10% because of the high unemployment and poor consumer spending meaning that people are reluctant to spend their money spending only on absolute necessities.Industry structureThe South African health and fitness industry is rule by a handful of large firms being Virgin progressive, Planet fitness and Smart Gym. However these large health and fitness service providers are not exploring the consummate market and meeting the specific demand that we have been able to identify in the market. They are to large to satisfy the distinctive involve of the entire market in terms of innovation and creativity and personalised serviced as well as the decrease of services. They are also slow to move to changes in the business environment as well as the new trends and developments in the foundation of health and fitness .For example the trend now is the simplificati on and ease of anything and everything that would complicate our life making use of creative and innovative ideas to increase life quality and prolong lives as long as possible. vital Success Factors1. Commitment At the Top.2. Qualified Professional Staff.3. Plan Then Proceed.4. Location, Location, Location.5. right field Size Right Cost.6. Program to Match Needs7. Effective Integration.8. Right Price Minimal Discounts.9. Commitment to Marketing and Sales.10. Commitment to Outstanding Customer Service.11. Measure, Manage and Measure Again.12. Effective Communications with Members.Management Team and Company organiseThe management team is comprised of all the founders of The Santon Health and Fitness Center Keleabetswe Sepengused, Marcelino Maliti Moises, Gonste Bokaba and Kgabo Lucia Mathibe.Director of Marketing and salesThe director of trade and sales is responsible for all the marketing of the company needs for example promotion, advertising, market research and salesMrs. Ke leabetswe Sepeng used to be the marketing and sales manager for Virgin Active from 2005 -2011 she will take mien of the same post in the new company. Mrs Sepeng is highly recognized in the industry and has a masters degree in marketing heading Financial OfficerThe header financial officer is responsible for the over all financial control and management of the company.The duties and responsibility involve creating control, managerial and evaluating measures for proper, honorable and legal financial controlMr. Marcelino M Moises will take the position of CFO Chief Financial Officer since he has the most qualified and has the most experience in the field after having worked for Planet fitness for over 10 years Mr. Marcelino has a Bachelor of Accounting Sciences and BA degree in Business AdministrationsChief Executive OfficerThe chief executive officer is the highest position in the company, the duties and responsibilities of the CEO is the overall running of the entire organization, make decisions for the entire organizations .planning ,leading, organize ,controllingMr. Gontse Bokaba will take the position of CEO Chief Executive Officer of the organization.Mr. Gontse Bokaba has worked for SAA South African Air Lines for more than 5 as the chief operations manager.Mr. Gontse Bokaba has a Master degree in Business ManagementChief Operations OfficerThe chief operations officer is responsible planning, coordinate and managing the operations of the company theses include office administrations, over sightedness that both products and services areMrs. Kgabo Lucia Mathibe will exercise the position of COO Chief Operations officer or Managing Director because she has been the manager at a day Spar for many years so she has both insight and knows the beauty industry in and out.Mrs. Kgabo Lucia has a degree in Business Administrations and a master in Human resource management. As well as head the human resources department seeing as he has experience in recruiting and laging.CEOGontseDOMKeleabetsweCFOMarcelinoCOOLuciaIndustry structureThe South African health and fitness industry is dominate by a handful of large firms being Virgin Active, Planet fitness and Smart Gym. However these large health and fitness service providers are not exploring the entire market and meeting the specific needs that we have been able to identify in the market. They are to large to satisfy the distinctive needs of the entire market in terms of innovation and creativity and personalised serviced as well as the simplification of life. They are also slow to react to changes in the business environment as well as the new trends and developments in the world of health and fitness.Industry TrendsIndividual usage of fitness and health care training equipment has increased.Body work out and exercise has become a daily life routine of many people around the world in the last decade.Fitness memberships are increasingly getting popular in office environment around the world Co mpanies are including health memberships as part of employee remuneration package.Long- Term ProspectusTo ensure a continual development of the health and fitness industry in the country.To raise awareness of the increase of obesity and heart deceases in the country and to promote healthy livingMarket analysisJohannesburg is a capital city of Gauteng. It is the major harbor of South African business. All the major companies of business are based in Joburg. The current population of Johannesburg is 11million. All sheaths of professions are found in Johannesburg. So, it is a competitive advantage to make business in Johannesburg.Market segmentationIt focuses on fitness, health and beauty. Our target market when it comes to the gym, is for everyone especially families and for the beauty spa, our target market are young adults, male and female from the ages of 13-55 years. They have to earn a minimum of R3000 and more. For children between 13 and 20, parents have to be responsible for their membership. The money is going to be deducted every month in the parents accounts, for their childrens membership. The centre and beauty Spa would work very hard to see consumers being satisfied about what the centre delivers. Customers dig more value from a good or service that seems to deliver more benefits for money. Market research will cover the following customer needs, ethnical elements, social connections, where family members, friends or associates can influence how, what, and when consumers buy, personnel elements, marketers for the fitness centre and beauty Spa. See opportunity in reaching young girls who are concentrating on their career and looking good when going to work and going out with friends, older women and men who are taking care of their health because of many diseases like obesity, high blood etc.Target market selectionTarget customers the primary customer is children, young adults and adults.These customers are ages 12-65 yearsThere approximately 3000 customers 15% children, 50% young adults and 35 adults.70%percent of young adults and adults are celebrities who spent most of their time at Sandton. Some of them homes are there.Competitors AnalysisOur main competitors are Virgin Active, Planet Fitness and Smart gymSandton Fitness Centre and Beauty Spa is the environment that is created in the facility. Our customers finger more relaxed and comfortable in a program that is focused on them. We have designed the childcare center to be visible from the main workout floor. Young mothers can oversee the child play while working out. Our main concern is to provide our customer with a direction who will organize each of our members healthy eating program and providing our members with a personal trainer who will ensure that a member do right exercise all the time concord to his/her workout planMarketing planSandton Fitness Center will focus on creating a brand image in the Johannesburg and Sandton area. We will get in in the major eve nts of health care awareness and education programs.Sandton Fitness Center will start by targeting low income segment of market downtown Sandton and Johannesburg area. We will convince people about the benefits and needs of wellness programs. This will be accomplished by aggressively pursuing interaction and relationships with peoples in populace health awareness programs and by sending newsletters and emails through Social interactive websites like Face book, Twitter and Msn and Google messenger.PricingOur prices and promotions are always subject to change especially when we take into account the fluctuating membership enrollments however, for the most part our initial fees for our services will be R300 and R80 monthly for a general membership. We will also offer to customers the option of paying daily fees. This fee will be R50 charge for a days use of any service that our business provides. In addition we can offer to individuals the option of using exclusively our day spa for just one day. To use this option we will charge a standard fee of R25. For another pricing option we will give customers the option of paying an annual fee up front for R1, 100, this would be a saving of over R150. This move would benefit us as well considering we will see an immediate return on our investments allowing us to re-pay our debt quickly. This type of pricing will set us over many of our competitors rates however the most important opponent will be outbid. Planet fitness, which comes enveloping(prenominal) to what we provide, will be outbid by over R600 and other competitors do not offer the level of resources that we will sell to our customers. In this way we feel that the service we sell and the price we offer can overcome or compete heavily with every competitor in the market.PromotionPlanWe will attempt to use a variety of strategies in order to make contact with potential members. A fairly cheap and easily accessible form of advertisement will be the Internet. By r unning our own website, www.SandtonFitnessCenter.com we can reach a wide variety of customers. This is also a fairly cheap way in which to get our name out since it will only cost our company $9.95 to launch and run the site annually. Another cost effective way to market our name will be to have various sales promotions and use flyers to get the word out. By making use of the following mediums of communication newspapers, magazines, television receiver and radio as the medium of advertisement. In addition they will print 5,000 brochures for creating awareness in the market about their health care services they will be distributed in major health care seminars and events where officials from Fitness Plus will participate.Operational planService Execution TimelineSandton Fitness Center will follow this service execution model to enter in the health club market. General trainer payroll and even provide our members with online scheduling, registration, bill hire and more. Establishing and maintaining membership opportunities is essential to owning successful business and our business may have monthly specials or different membership level in order to maximise sales.Our online registration system allows families to complete registration 34/7 from any internet connected computer. We created custom club sign-up forms and website., process most types of payment, manage manner to block and reservations, create name badges, auto sent reminder e-mails and mange our members over complete reports.Business LocationSandton Fitness Centre and Beauty Spar is located in Nelson Mandela Square at Sandton city, is only 25km from Johannesburg international airportTaskFebruaryMarchAprilMayJuneJulyAugustChoosing locationWebsite developmentHiring, training and admin staff advertizeOpening of health clubLocationSandton Fitness Center will start its business in main street area of Coral Gables there is presence of already established health clubs such as Golds Gym and Coral Gables A dventureBoot camp.Legal EnvironmentThere are no current legal obligations for Fitness Plus health club.PersonnelFitness Plus will start with a total of 10 initial staff members that includes owners as well.Facilities and EquipmentFitness Centre offers a large selection of equipmentTreadmills (20)Bicycles (10)SteppersStairmasterBody trekCross aerobic trainerWeightsServicesSandton Fitness Center will provide following health related servicesAerobicsCyclingBoxingYogaPilatesMuscle TrainingDiabetes Obesity ControlBeauty treatments eg. massages, pedicures, manicures, facialsBenefits and FeaturesState of the art facility with latest equipment from quality manufacturersLow cost with monthly, quarterly and annual subscription plans.Personal qualified trainers to help our members achieving results without wasting much timeWhy people need this service?Health care and fitness club market in around South Africa have been serving to a high income segment of late. Average income of health club me mber is R 50000 as of 2006 survey.This leaves a large segment of low-income customers with unmet needs. Fitness Plus will primarily exist to provide health care facility to the lower income class without compromising on quality of service.ChallengesFitness Plus will face a challenging situation in creating its brand image and attracting customers towards their services due to presence of already established players in the local market such asVirgin ActivePlanet FitnessSmartGymFinancial PlanSources of detonatorinvestment funds requirement R5, 000,000Total Investment R5, 000,000Startup ExpensesHealth club development R1, 000, 000Personnel R290, 000Capital Expenditures R500, 000Consulting Services R100, 000Promotion R60, 000Total Start-up Expenses R1, 950, 000Our company, Sandton Fitness Center will meet capital needs by talking to various money sources.These sources will include family members, banks, venture capitalist, and personal savings. We hope to receive R5 million before we e ven begin our venture. By the first year we will be losing R2.4 million with an expected 1,000 members. By the second year we will have double our member to 2,000 and have a combined loss of R25 around 2.4 million including the first years losses. By the third year with 3,000 members, we will show a profit of R1 million. We hope by explaining this outlook to investors they will be convinced of our legitimate venture. too by showing our belief in the company we each will invest R250,000. We project getting R3 million from venture capitalist and the rest of the money from a bank loan that would be paid off by the fifth year of operation.Pro forma Income StamentProjected IncomeSandton Fitness CenterIncome StatementYEAR1YEAR2YEAR3YEAR4SalesR1,260,000.00R 2,520.000R3,780,000R3,970,000Net salesR1,260,000.00R2,520,000R3,780,000R3,970,000Gross Profit 0R 1,077,520R 1,267,521Operating ExpensesPayroll expenseR551, 000.00R551, 000R 551,000R 551,000Payroll task expenseR38, 570.00R38,570R 38,57 0,R 38,570Bad debts expenseR194, 500.00R194, 500.00R194, 500.00R194, 500.00Promotional ExpenseR62, 009.95R62, 009.95R62, 009.95R62, 009.95Office supplies expenseR220, 000.00R220, 000.00R220, 000.00R220, 000.00Utilities expenseR120, 000.00R120, 000.00R120, 000.00R120, 000.00Insurance expenseR200, 000.00R200, 000.00R200, 000.00R200, 000.00In-club entertainmentR1, 000.00R1, 000.00R1, 000.00R1, 000.00Lease costs for buildingR1, 200,000.00R1, 200,000.00R1, 200,000.00R1, 200,000.00Depreciation expense,office equipmentR15, 400.00R15, 400.00R15, 400.00R15, 400.00Maintenance and repairsexpenseR50, 000.00R50, 000.00R50, 000.00R50, 000.00Miscellaneous sellingexpenseR50, 000.00R50, 000.00R50, 000.00R50, 000.00R2,702,479.95R2,702,479.95R2,702,479.95R2,702,479.95Other ExpensesBuilding of poolR110, 000.00Building of basketballcourtsR350, 000.00Building of tennis courtsR75, 000.00Building of track and indoorsoccer fieldR370, 000.00Spa featuresR120, 000.00R1,025,000.00Net IncomeR 2,467,479.95Project ed Balance sheet social class 2009Year 2010RmRmNon-current assetsIntangible assets apparent assetsInvestmentsTaxation recoverable237.6121.92.04.9366.4260.3137.52.85.9406.5Current AssetsInventoriesAmount receivable (debtors)Six-month depositsCash and cash equivalents24.3134.790.5249.526.6146.92.0105.3280.8Current liabilitiesAmount payable(creditors)Bank overdraftNet current assetsTotal assets less current liabilities(157.5)(62.6)(220.1)29.4395.8(159.8)(40.1)(199.9)80.9487.4Non-current liabilitiesAmount payable (creditors)Bank and other borrowingsProvisionsNet assets(2.6)0.6(22.2)370.4(2.7)(0.7)(20.2)464.3Capital and reservesShareholders funds370.4464.3Pro forma Cash Flows (3-Year)Sandton Fitness Center PlusYear 1 Year 2 Year3Cash sureCash from OperationsCash Sales R1, 230,000 R4, 940,000 R14,751,000Cash from Receivables R0 R0 R0Subtotal Cash from Operations R1,230,000 R4,940,000 R14,751,000Additional Cash ReceivedNew Borrowing R1,000,000 R0 R0New Other Liabilities (interest-free) $ 0 R0 R0New Long-term Liabilities R0 R0 R0Sales of Other Current Assets R0 R0 R0Sales of Long-term Assets $ 0 R0 R0New Investment Received R0 R0 R0Subtotal Cash Received R2,230,000 R4,940,000 R14,751,000ExpendituresExpenditures from OperationsPersonnel R290, 000 R840,000 R940,000Consulting Services R90, 000 R480,000 R480,000Promotion R5,000 R6,000 R6,000Subtotal worn-out(a) on Operations R385,000 R1,326,000 R1,426,000Additional Cash SpentTaxes R32,290 R338,580 R1,302,500Principal refund of CurrentBorrowing R0 R0 R0Other Liabilities Principal Repayment R0 R0 R0Long-term Liabilities Principal Repayment R0 R0 R0Purchase Other Current Assets R0 R0 R0Purchase Long-term Assets R810,000 R810,000 R1,345,000Dividends R0 R0 R0Subtotal Cash Spent R1,227,290 R2,474,580 R4,073,500Net Cash Flow R1,002,710 R2,465,420 R10,677,500Cash Balance R1,012,710 R3,478,130 R14,155,630CONCLUSIONThrough the plan that we have outlined we feel confident that although a very complex and complex process to start and run such a company, we can accomplish such an ambitious endeavor. We have analyzed the market, covered expenses, visualized a goal, and planned accordingly. Our company would be a sound investment because assets and collateral would insure re-payment and realistic projections allow for error if they are needed. To be realistic, we cannot guarantee a success, but as the proverb goes, A hero is one who knows how to hang on one minute longer and this is the entrepreneurial spirit that we will scat throughout the life of our fitness center.