BSBSMB403 MARKET THE

SMALL BUSINESS
Assessment Task 1

TARANDEEP SINGH
GINT190187
Introduction of your Business:

Circuit Fitness Importing is a start-up business that has been formed as an Oregon

registered .The company has been formed to become the exclusive importer of the melbourn
Corporation’s innovative Esercitazione Diritta (Exercise Standing) fitness equipment. Circuit
Fitness Importing is poised to receive the exclusive license to sell this patented equipment.

Vision and Mission:

During the Christmas day , Circuit Fitness Importing’s mission is to offer the finest, most
innovative fitness equipment to Australia market. Circuit Fitness Importing will ensure all of
their customer’s expectations are exceeded. By only offering the highest quality product with
premium support, Circuit Fitness Importing will become the premier fitness equipment
importer.

Target Customer (profile):

Esercitazione Diritta, Australia Corporation’s flagship fitness equipment is a patented

technology applicable to strength fitness equipment. All other strength fitness equipment
manufacturers have users placed in a seated position when performing the exercises.
Esercitazione Diritta, instead, has the user stand. This is advantageous for several reasons.
First, this strengthens lower body muscles that hold the body upright. It also strengthens
central motor skills needed to maintain an upright position relative to the offsetting forces
generated from the weight lifting. Esercitazione Diritta is protected patented technology
which provides Circuit Fitness Importing a competitive edge. Additionally, Esercitazione
Diritta is built on casters allowing the units to be moved as necessary.

Business Objective:
 To become the sole Australian importer of the revolutionary new Esercitazione Diritta
exercise system.
 To generate revenue of $1 million within two years.
 Achieve profitability within the first year.

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SWOT Analysis:
Strengths :
 Capital stock - We've established and maintained a strong capital base.
 Marketing - Aggressive and focused marketing campaign with clear goals and
strategies.
 Management team - We have wide experience in product and business know-how.

Weaknesses:
 Not tech -Establishing a reputation on the internet will be challenging.
 Quick expansion -There are a lot of new hires to train and organizational structures to
learn.
 New -Don't have the reputation or money of equipments

Opportunities:
 Designs of equipments : New generation of consumers appreciate high-end models
and designs.
 Government programs: Promotions of and initiatives to support fitness.
 Labeling : good labaling effects the product quality.

Threats:
 Vertical integration: current fitness have control of supply and distribution channels to
corner the market.
 Price fluctuation: Fluctuations in prices of supplies may occur. Competitive market
Expensive new marketing campaigns.

Marketing Objectives listed below (Choose One):

 Valentine’s Day
 Mother’s Day
 Melbourne Cup
 Christmas
 Australia Day
 Easter, New Business

Identified Target market for your customer base for this event:

The Australian fitness market, a smaller subset of the sporting goods industry has sales of
$5.8 billion. The last 10 years has seen significant spikes in membership and usage of this
equipment. Australians, on a societal level are beginning to realize that their unhealthy eating
habits and lack of physical activity can have a profound impact on their lives. Consequently,

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fitness participation is booming. Circuit Fitness Importing has identified three customer
segments that are particularly attractive:
Distributors– This distribution layer accounts for 60% of the sales of fitness equipment.
These sales occur primarily to independent fitness clubs.
Health Clubs– This is another huge customer segment that is expected to have $565
million in sales for Year 1.
Vertical Markets– These non-fitness industry facilities have over 30,000 facilities.

Identification of the wants and needs of your selected customer base:

In this cristmas event , following are the targets keys to success :

 Provide value to customers with the best, most innovative product.

 Develop strong relationships with customers, anticipating their needs.
 Employ strict financial controls to ensure profitability.

Budget for your Marketing Objective:

Circuit Fitness Importing is in the process of opening an office in anticipation of receiving an

exclusive importing contract from melbourn regarding their innovative Esercitazione Diritta
exercise equipment. The office is located in melbourn and requires the following equipment
and service provider expenses:
 Three computer workstations with the following equipment:
a. three Microsoft Office licenses
b. broadband Internet connection
c. two laser printers
d. Peachtree Accounting
 Fax machine
 Copier
 Three sets of office furniture
 Large desk and chairs for meeting room
 Two line phone system
 Mobile phone
 Attorney fees for contract generation and LLC formation
 Accountant fees for accounting system set up
 Website development set up fees
 Brochure creation and printing
 Start-up

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Requirements

Start-up Funding

Start-up Expenses to Fund $17,900

Start-up Assets to Fund $182,100

Total Funding Required $200,000

Start-up Expenses

Legal $2,00
0

Accountant fees $2,00

0

Brochures $750

Website development $4,00

0

Insurance $150

Rent $1,00
0

Research and Development $0

Expensed Equipment $8,00

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 0

Other $0

Total Start-up Expenses $17,9

00

Start-up Assets

Cash Required $167,100

Start-up Inventory $0

Other Current Assets $0

Long-term Assets $15,000

Total Assets $182,100

Total Requirements $200,000

Current Market Trend:

The Australian fitness market, a smaller subset of the sporting goods industry has sales of
$5.8 billion. The last 10 years has seen significant spikes in membership and usage of this
equipment. Australian, on a societal level are beginning to realize that their unhealthy eating
habits and lack of physical activity can have a profound impact on their lives.

Performance Evaluation Methods used:

 Management by Objectives (MBO)
Management by objectives (MBO) is the appraisal method where managers and
employees together identify, plan, organize, and communicate objectives to focus on
during a specific appraisal period. After setting clear goals, managers and

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 subordinates periodically discuss the progress made to control and debate on the
feasibility of achieving those set objectives.
 360-Degree Feedback
360-degree feedback is a multidimensional performance appraisal method that
evaluates an employee using feedback collected from the employee’s circle of
influence namely managers, peers, customers, and direct reports. This method will not
only eliminate bias in performance reviews but also offer a clear understanding of an
individual’s competence.
 Assessment Centre Method
The concept of assessment centre was introduced way back in 1930 by the German
Army but it has been polished and tailored to fit today’s environment. The assessment
centre method enables employees to get a clear picture of how others observe them
and the impact it has on their performance. The main advantage of this method is that
it will not only assess the existing performance of an individual but also predict future
job performance.

Method of analysing costs and benefits of marketing strategies:

Marketing cost analysis identifies the risks and potential gains in a marketing campaign. The
‘cost’ refers to money, energy and/or time spent on a campaign.
The Current fitness needs to understand current and expected costs for your marketing
analysis. Costs are investments, Kickstarter funds, and existing profits. This is the money
,current fitness have ready for the next project. But Current fitness also need to account for
expenses, such as:

 Shipping and handling fees

 Taxes on goods and services
 Staffing and training costs
 Supplies and operating expenses

Research outcome: Information for comparisons on competitors in your area:

Circuit Fitness Importing faces competition from several large sources. The sources take the
form of other fitness equipment manufacturers and importers. Circuit Fitness Importing is
lumping both the manufacturers and importers together because they are often the same
company or a subsidiary. In the case when they are a separate company, importers
only import a specific brand of equipment so it is really a manufacturing brand versus a
manufacturing brand.
 Precor– this is one of the largest manufacturers of fitness equipment. Precor makes
both home fitness equipment as well as commercial grade equipment for fitness clubs.
Precor manufactures both strength equipment as well as cardiovascular equipment.

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  Paramount– this is a large manufacturer of both strength and cardiovascular
equipment. Paramount however, only sells commercial grade equipment, they do not
sell home units.
 Cybex– this is a large equipment manufacturer that sells a variety of light-commercial
equipment. The light-commercial equipment is a mid-price point, higher quality and
price than the home fitness equipment but not as expensive as commercial equipment.
Light-commercial typically finds placement in vertical market customers where there
equipment is not being used 24 hours a day, and therefore the units can be scaled back
a bit in terms of quality and still remain functional for the industry average of seven
years.

Marketing Mix:

Product: Esercitazione Diritta is a new and unique type of strength training fitness
equipment. Unlike all other strength fitness equipment where you sit when you are doing
your exercise, Esercitazione Diritta (Exercise Standing), as the name implies, has the user
stand. Standing while doing exercises has many advantages.
 Develops a proper equilibrium with the central nervous system. This is accomplished
because in addition to the user having to develop force to move the specific weight
exercise, a standing posture must be maintained while exerting the force.
 In addition to working the specific muscle group, the lower body is being
strengthened by having to use muscles to stand.
 Esercitazione Diritta replicates natural movements which are made throughout our
daily life. 
 Forcing the user to stand to perform the strength exercise enters the component of
cardio into the workout.

Price:

Sales

Distributors $176,100 $415,000 $512,500

Health Clubs $130,314 $307,100 $379,250

Vertical Markets $126,792 $298,800 $369,000

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Total Sales cost $433,206 $1,020,900 $1,260,750

Place: Circuit Fitness Importing is in the process of opening an office in anticipation of

receiving an exclusive importing contract from Wega regarding their innovative
Esercitazione Diritta exercise equipment. The office is located in Melbourn

Promotion: The marketing strategy will consist of the following activities designed to
develop a network of customer relationships:
 Focus groups with high-end fitness centres
 Private presentations to distributors
 Private showings to high-end fitness centres
 Meetings and presentations with personal trainers (e.g. New York City Personal
Trainer Association) physical therapists, and sports medicine physicians and other
specialists
 Tradeshows, with regional and national attendance
 Mailings and direct calling

Comparison of current digital devices, platforms and technologies for effectiveness in

achieving marketing objectives:

The sales strategy will initially be based on the goal of trying to get large clubs to adopt
Esercitazione Diritta equipment. This is quite attractive to Circuit Fitness Importing for a
couple of reasons:
  A large fitness club will have many different outlets so a contract with one fitness
company will yield multi-location sales. This is good for sales volume.
 The adoption of a large fitness company brings legitimacy of Esercitazione Diritta in
the U.S. market.
Circuit Fitness Importing will also work on sales to distributors. Distributors are useful
because Circuit Fitness Importing is able to leverage the distributor’s sales efforts for
increased sales. This comes at a slightly smaller margin for the distributor customers. In all of
the sales efforts, Circuit Fitness Importing will emphasize the innovative patented technology
that is a part of the Esercitazione Diritta equipment that no other manufacturer can claim to
offer.

Method of monitoring customer satisfaction:

 Post Service Surveys: This type of survey focuses on the customer’s satisfaction with a
specific service she’s just received. 
Customer Satisfaction Score (CSAT):This is the most standard customer satisfaction metric,
asking customer to rate his/her satisfaction with business, product, or service. CSAT score is
then the average rating of customer responses.3

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Net Promoter Score (NPS):The Net Promoter Score (NPS) measures the likeliness of a
customer referring the producrt to someone, and it’s probably the most popular way
of measuring customer loyalty . Customer are asked how likely they are to recommend
product on a scale from 1 to 10.

Selected Marketing Strategies for the Event:

Circuit Fitness Importing will leverage their competitive edge of intelectual property
(IP) (actually a license to use the IP) that takes the form of a patent in the innovative
Esercitazione Diritta approach to strength training. The marketing strategy will have an
emphasis on the development of the customer network and relationships. Lastly, the sales
strategy will be the work on moving the fitness units into a variety of different facilities
through the emphasis of an efficient, innovative workout.
The first step that Circuit Fitness Importing must accomplish to prepare itself for the
implementation of the marketing and sales strategy will be the development of a support
infrastructure. The costs of importing which include shipping, duties and tariffs,
warehousing, and distribution will be captured and detailed as a direct costs of goods
founding the sales forecast. The following areas will need to be addressed:
 Import and logistics– the units will be manufactured in Italy and shipped via ocean
freight on pallets in containers to the U.S. using the Port of Portland as the port of
entry.
 The units will then be warehoused until they are sold.
 Distribution once the units are sold and need to be delivered.
 Customer service– as the sole importer Circuit Fitness Importing will offer customer
service for the equipment.
 Repair– this function will be outsourced because of the geographic dispersion of all
the different machines throughout the U.S. and will be recognized as a percentage in
the direct cost of goods.
 Training– Circuit Fitness Importing will offer many different seminars that are
designed to train the distributors or large individual users on the proper and most
efficient use of the fitness equipment.

Implementation of Marketing strategies:

Staff member Allocated Task Timelines

Jenny Order and supply promotion Completed

Martin Customer response analyising Completed

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Andrew Resorce cost and expenses analysing Incomplete
(deadline one
weak)

Mark Marketing and promotions Continue as usual

Jenefer Distribution management Continue as usual

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