MKTG2501

New Product/Service Marketing Plan Project

Group 5
 Table of Contents
Page
1. Executive Summary 2
2. Situation Analysis
2.1. Customer Analysis
2.2. Competitor Analysis 3
2.3. Market Analysis 4
2.4. SWOT Analysis 5
3. Marketing Objectives 6

3.1. Short-term Objectives 7

3.2. Long-term Objectives
4. Marketing Strategy 8
4.1. Competitive Advantage
4.2. Segmentation and Targeting
4.3. Positioning 9
5. Integrated Marketing Program 10
5.1. The New Service - Fitness Food
5.1.1. Customer Analysis of Fitness Food 11
5.1.2. Competitor Analysis of Fitness Food
5.1.3. Market Analysis of Fitness Food 12
5.1.4. Cost Control 13
5.1.5. Alternatives
5.2. Branding Strategy 14
5.3. Pricing Strategy
5.4. Channel Strategy
5.5. Integrated Marketing Communications Strategy 15
5.5.1. New Product Launch
5.5.2. 2-year Plan
6. Implementation Plan
Appendices 17
References 19

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1. Executive Summary

Founded in 1993 with the only club in London, Fitness First today has evolved into a strong brand in the
health and fitness industry with 430 global clubs and over 1.2 million of members. In Hong Kong, Fitness
First is serving over 20,000 members in 2014, while from 2015 to 2017, Fitness First recorded 30% and
20% growth in number of members and profits respectively (Hong Kong Economics Times, 2018). With
the recent extension, Fitness First has established 9 branches mainly located in Hong Kong Island and one
in Kowloon East core business district. The leading position of Fitness First has offered great potential
and capital for its further development.

To strengthen its profitability, competitiveness and sustainability, our consulting team has carried out a
comprehensive analysis to ultimately propose a new service concept - the Fitness Food - offering
nutrition-targeted and fast-served meals to the gym members. This service is proposed initially based on
the current market trends with subsequent consideration on Fitness First’s corporate branding, market
position and financial capability. We believe that the Fitness Food can keep Fitness First competitive by
staying in line with the latest customer and market tendency, while providing a long-term profitable
business solution to Fitness First.

This proposed marketing plan will first illustrate the current customer, competitor, market and SWOT
analyses of Fitness First, followed by recommendations about the marketing objectives, strategy and
integrated program.

2. Situation Analysis

2.1 Customer Analysis

Demographic: 66% of Fitness First’s members belongs to the age group of 25-45. Most people under this
age group are the Hong Kong working class who lead busy lives. For instance, a typical Hong Kong
employee work for 50 hours each week, which is 38% higher than the global average (UBS, 2016).
Customers who are busy workers probably favour services which offer the benefits of convenience and
time-saving. In terms of gender, the ratio of male members to female members is 53:47 (Hong Kong
Economic Times, 2018). The figure indicates that Fitness First has a relative even gender distribution.
Regarding income, Fitness First is targeting the middle-to-high class group through setting the monthly
membership fee for a typical fitness plan to 748 HKD, which is relative high when compared with
competitors’ average of 400 HKD.

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Psychographic: The majority of Fitness First members are in pursuit of a healthy lifestyle. 70% of Fitness
First members are regular users who exercise in the fitness centres for 2-3 times per week. Most of the
Fitness First members have a regular exercise habit, which is essential to maintaining a healthy lifestyle.

Behavioural: The membership retention rate of Fitness First is 66% in 12 months (Lin & Hua, 2014),
which is the highest among Fitness First’s global clubs. This figure is almost the same with the global
average of 66.7% according to The International Health, Racquet & Sportsclub Association (2018). As
mentioned previously 70% of the members hit the gym 2-3 times per week, this reflect most of the
members are categorized as medium to heavy users.

The customer analysis provides insights about the characteristics of Fitness First current members. To stay
consistent with Fitness First’s strategies of targeting workers with the income level of the middle-to-high
class who pursue a healthy lifestyle, the marketing plan proposed will align with above-mentioned
findings respectively - the new service will offer the benefits of convenience and time-saving; gender will
not be a market segmentation base; the pricing will be set at the medium-to-high level; and the new
service will satisfy customers’ need to maintain a healthy lifestyle.

2.2 Competitor Analysis

As a chained fitness centre in Hong Kong, Fitness First has six key competitors, namely Pure, Gogi,
Anytime Fitness, FFG+, Physical, and Waterfall. In reference to the perceptual positioning map (see
Figure 1), Fitness First has positioned itself with a medium-to-high price level and a high orientation to
the working class.

Figure 1 Perceptual map of Fitness First and its competitors in Hong Kong fitness centre market
To increase the relevance and comparability of competitor analysis, we will focus on the upper-right
sub-market. A detailed competitor analysis has been carried out to address Fitness First position in

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relation to the two key competitors - Pure and Gogi. For pricing proposition, Fitness First is charging its
customers in the medium-to-high level, which is lower than that of Pure whilst higher than that of Gogi.
Moreover, three of them are highly-targeted on the working class instead of the mass public as all of their
centers are located in commercial areas, like Central, Causeway Bay, and Tsim Sha Tsui; whilst mass
market targeted fitness centers have locations across the city. For instance, Anytime Fitness opens its
centers in both commercial and non-commercial areas, such as Kowloon City and Sham Shui Po.

Fitness First has demonstrated various strengths and weaknesses in relation to Pure and Gogi. The first
edge is its strong brand name arising from its global presence. Fitness First is founded in 1993 in the
United Kingdom with centers in 17 countries, but Pure and Gogi are Hong Kong brands with locations in
Hong Kong and China only (Fitness First, n.d.) (Pure, n.d.) (Gogi, n.d.). A strong brand name allows
Fitness First to have higher pricing power and credibility of service quality. The other strength of Fitness
First is that it has more experience in operating fitness centers as it has longer history. Fitness First is
established in 1993 and Pure and Gogi are established in 2002 and 2017 respectively. The edge can not
only bring the more well-established relationships with customers and facilities suppliers to Fitness First,
but can also improve Fitness First’s operation efficiency.

In relation to Pure, Fitness First has a main weakness of providing less diversified services. Fitness First
only offers training equipments and exercise classes to its members; whilst Pure opens saunas, cafés, and
apparel stores to provide a wider range of services to its members.

In relation to Gogi, Fitness First has a main weakness of providing less personalised services. Gogi
applied micro-marketing to differentiate itself through providing customised wellness therapy and meal
planning services to its members. From the competitor analysis, diversifying and personalising Fitness
First’s services are our considerations in planning for the new service.

2.3 Market Analysis

Hong Kong fitness centre market is booming with both opportunities and threats. The number of gyms in
Hong Kong has grown for 35.6% in the past 8 years due to the increasingly concern about healthy and
impressive body shapes (Hollingsworth, 2018). A graph from Asian Academy for Sports and FItness
Professionals reveals that the total amount of gyms and fitness centers in Hong Kong has increased
constantly from 2009 to 2018, with a compound annual growth rate (CAGR) of 6.3% (see Figure 2). A
report from Deloitte suggested that a fitness center market have three developmental stages - immature,
fast-growing, and mature (see Figure 3). Hong Kong market is classified to the fast-growing stage, which

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has the highest growing potential. Moreover, as the living space in Hong Kong is commonly very limited
and crowded, it is particularly difficult for exercisers to acquire gym equipment in their homes. This
market feature also contributes to the ever-growing gym market as people can mainly only go to a gym
centre if they want to enjoy the gym facilities.

From the above, the fitness centre market has a positive prospect with high potential. The trend can bring
many opportunities to Fitness First as the growing amount of fitness clubs’ joiners will raise its revenues
in the future. Meanwhile, the highly attractive market can bring threats to Fitness First as more
competitors will probably enter the market to seize opportunities, which may lead to fiercer competition.
Therefore, an effective marketing plan has to be implemented to help Fitness First to stay profitable,
competitive, and sustainable.

Figure 2 Amount of gyms and fitness centers in Hong Kong Figure 3 % of fitness club members/population
(source: Asian Academy for Sports and Fitness Professionals) (source: Deloitte)

2.4 SWOT Analysis

Strength: Fitness First established a strong brand name with member retention rate is 66% as per the
statistics indicated in previous sections. As previously mentioned, among its member, 70% of them hit the
gym 2-3 times per week and this made catering to their wellness need, such as a quick and healthy meal
after the gym, become a considerable option with this huge active user base. Besides, offering special
professional athlete cooperation courses is one of the unique feature of Fitness First that distinguish it
from the rest gym clubs.

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Weakness: High membership fee due to Fitness First’s positioning as middle to the high class is one of
the weaknesses. Also, when compared to some large chain gym clubs such as Physical owning 23
branches in Hong Kong (Physical Fitness and Beauty, n.d.), having 9 clubs does not make Fitness First
very accessible. Not providing 24/7 services and specialised course also contribute to Fitness First’
weakness when comparing to other gyms.

Threat: A gym club takes up a big place and the rent in Hong Kong is extremely high, hence this results
in high fixed expenses. According to Midland (2019), the monthly rent for a gym centre located in the
business district of Hong Kong Island or similar locations as Fitness First’s current branches is ranging
from 80 million to 160 million HKD. And Fitness First Asia’s CEO Simon Flint also admitted that the
rent takes up the largest percentage of Fitness First’s operating expenses (Ng, 2014). Besides, there are
intense competitions facing by Fitness First including those from large chain fitness centres and those
from smaller ones that provide more specialised courses.

Opportunities: In order to cope with these weaknesses and threats, we suggest Fitness First utilise its
opportunities. Other than the statistics showing Hong Kong has a huge potential growth like the CAGR
and low gym penetration rate but health-concerned trend, lunch-hour workout and group fitness are also
trends that cannot be overlooked. The American College of Sports Medicine ranked group fitness as the
2nd most popular fitness training trend in 2019 (Walter, 2019). Lunch-hour gym is reflected by Fitness
First’s official peak hour being weekdays’ lunch time. Noticing the peer group influences as well as the
fact that many gym-ers who are office workers sacrifice their meal to workout during the short lunch
break, we proposed a new service for Fitness First - Fitness Food, providing an excellent place for
gym-ers to get nutrition-rich food while having some space to chit-chat with peers or rest awhile before
getting back to work.

3. Marketing Objectives

3.1 Short-term Objectives

To gain credibility for the nutritional meal sets to shape brand images: As we mentioned in the SWOT
analysis, one of Fitness First’s strengths is the strong brand name reflected by its huge member base. The
success of Fitness First is contributed by the professional facilities and training services provided by the
staffs, leading to high customers’ satisfaction and its great reputation. For example, Fitness First invested
more than DKK 94 millions in refurbishment in 2017. This indicates that Fitness First put the proficiency
of the equipments, products and customer’s safety in the first priority. Making Fitness First more like an

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“expert” in bodybuilding aspects, nutritional meal sets provided by Fitness Food can help to shape its
professional brand images, consolidating Fitness First’s position as a market leader among gym
companies.

Increase brand awareness of Fitness First by 10% within three months: By shaping brand
conversations, experiences and community, we hope to access to the potential customers since more
people care about body image and healthy diet in the recent years. Our target will be the middle-high
social class (to fit with Fitness First’s existing targeting strategies), who are mainly white collars who are
working in urban districts. Integrated Marketing Communication Strategies will be applied to engage
potential customers. The quality performance of Fitness Food can lead to positive word of mouth
communication between old customers and potential customers, this is also an important way to increase
the membership base of Fitness First.

To keep Fitness First competitive against leading-competitors: As analysed before, Fitness First’s main
competitors Gogi fitness and Pure fitness share a similar marketing segmentation which is moderate
premium and working class targeted, they both provide food service to their customers in order to
enhance their workout efficiency. From the local discussion forums in Hong Kong, we see that potential
customers struggling which gym to join will basically compare the equipment quality and quantity, gym
facilities, fitness class type and schedule as well as locations of different gyms. By observing the
above-mentioned trends of lunch-hour workout, the lack of catering to all-rounded wellness need of gym
users will become a comparative disadvantage of Fitness First with other factors being similar with
competitors. By launching Fitness Food, we believe that it will be a selling point for potential customers
and a great deal for Fitness First to stay competitive.

3.2 Long-term Objectives

To maintain an average of 10% profit margin per year in ten years: Apart from providing quality
service to customers, Fitness Food aims to generate a considerable amount of profit so that more financial
resources can be reinvested in extending the business of Fitness First. Fitness Food is also expected to
extend its service to all Hong Kong or even provide other services such as selling food and beverages in
other vendors. Despite the initial investment and a reasonable period for Fitness Food to breakeven, a
10% profit margin will be our long-term aim.

To increase the active members from 18,000 to 20,000 within 6 months (customer acquisitions) and to
increase the customer retention rate from 66% to 80% with one year (customer retention): We aimed

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to acquire new gym members without current gym membership plan by Fitness Food as we believe that it
is a value-added factor for potential customers to choose their gym centre. Also, since the launch of
Fitness Food will start from test marketing, after-sale communication will be done to identify the room for
improvements. We aim to improve customers’ perceived value of the service so that it can meet or even
surpass their expectations. By doing so, satisfaction from customers can be enhanced, making them more
loyal to Fitness First’s brand and customer retention can be achieved. We suggest Fitness First to pay
attention on customer retention because a 5% increase in customer retention produces 25% or more
profits (Reichheld, 2001).

4. Marketing Strategy

4.1 Competitive advantages

“Diversified meals to cater to different needs.”

Nutrition-targeted: The meals provided by Fitness Food will range from low calories for weight loss to
high protein for bulking. This allows consumers to complement their gym activity and reach their body
targets in reduced time, enabling them to feel more satisfied with both the gym’s service and themselves.
However, in order to limit initial expenses, the initial varieties of meals will be limited to 2 meals per
different physical needs. Nevertheless it is our objective to gradually widen Fitness Food meals selections
in order to provide variety that is unmatched by other gym competitors such as Pure and Goji and on par
with normal restaurants.

Convenience: the rising popularity of training during lunchtime increased the numbers of gymming
workers. We understand that for such clients time in extremely important, as they need to squeeze in their
one hour time both training and lunch. Hence we place extreme importance in enabling our users in
getting their lunch in the shortest time possible. Alongside the convenient location which is just one step
next to Fitness First’s centre, creation of a phone application that allows people to order their preferred
food while on the way to the gym or while training utilities its convenience. Pre-set meal boxes will also
be available on the go, allowing customers to pick and go.
4.2 Segmentation, Targeting and Positioning
Overall Fitness Food is targeted towards consumers that, conducting a busy lifestyle, lack the time to
prepare healthy meals that complements their ideal body goals.

Segment Chosen Targeting

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 Variable Variable
Psychographic Life Style ● Regular Gym User
● Not yet developed a diet plan
Regular gym users are often driven by the intrinsic desire of improving
their bodies and lifestyle. However, while willing to commit on an
physical level, many are yet to develop an healthy diet, to complement
their exercises, as time and culinary constraints represent an
inconvenience. Hence we believe there is a market for us to target
consumers who are in search of an convenient way to incorporate diet in
their training.
Demographic Age ● 25 - 45 Years Old
As mentioned in the customer analysis of Fitness First, this age category
represents the majority of its users. They are well involved in their
career path, conducting an active and busy lifestyle. Hence they greatly
value time and convenience.
Income ● 30000 to 90000 HKD
This income category gives the consumers enough purchasing power to
afford the consumption of health products such as Fitness Food.
Behavioural Gym ● Potential users
Status ● First-time users
● Regular users
As mentioned previously one of our objectives is to increase customer
acquisition and retention. Hence, we believe that Fitness Food can be
used to attract potential users in trying both or gym and food service.
Moreover the added value that Fitness Food can provide to regular users
could potentially increase their loyalty to our gym.
4.3 Positioning
Our objective is to position Fitness Food as a middle to high end healthy meal provider. As we can see
from the perceptual positioning map (Figure 4), in such area there are two main competitors in Goji and
Pure. To differentiate ourselves better from them we want to focus on the variety of meals we provide, as
Goji relies on few selected products, while pure is more focused on smoothies. Moreover, there is the
presence of Eatology, which offers healthy meals delivery on a subscription program. Our main
differentiator against it will be the price, which will be cheaper, at an average of 100 HKD per meal,

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compared to Eatology’s average of 175 HKD per meal (Eatology, n.d.). Our plan is to stand out in terms
of variety, healthiness, and price, when compared respectively with other gym foods, restaurants, and
meal subscriptions.

The following is our positioning statement “For busy yet active people whom are mindful of their bodies,
Fitness Food is a convenient dining solution that offers meals ranging from low calories for weight loss to
high protein for bulking, tailored to one’s personal needs”.

Figure 4 Perceptual map of Fitness Food and its competitors in the healthy food market

5. Integrated Marketing Program

5.1 The New Service - Fitness Food

We propose Fitness First to open a cafe named “Fitness Food”, which provides a new service of selling
food and beverages inside the fitness centres. Members can then enjoy healthy meals just one-step next to
the gym areas. The meal sets will be nutritionist-designed, with various specific functions, ranging from
losing weight to gaining proteins. Customers can order meal sets based on their own fitness targets.
Another value our plan can bring to the customers is that the product will be fast-served because we are
targeting the office workers who have a busy lifestyle but are pursuing holistic wellness. For instance,
they can have grab-and-go food after their gym sessions.

The set up of fitness Food (Appendix I) enables customers to read the menu (Appendix II), with products’
name, price, and nutrition facts. The food ingredients will be delivered from our supplier for the staff to
prepare meals, and the drinks, like smoothies, will be freshly-made in store. Customers can order meal

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sets or separate items, in the store or through a mobile app, which is more time-saving. After buying the
products, they can dine in, or grab-food-and-go. If customers will regularly buy the products, meal
subscription will be a good option for them.

5.1.1 Customer Analysis of Fitness Food

Regarding customers’ habit, there is scientific proof that the more exercise a person does, the more
self-regulating food intake he or she will conduct. (Pedersen, Sniehotta, Sainsbury, Evans, Marques,
Stubbs, ... & Lähteenmäki, 2018) This means that Fitness First’s current customers going for the gym may
also be pursuing a healthy meal outside Fitness First: maybe in other restaurants. We encourage Fitness
First to take a step forward to fill this gap. The value creation of Fitness Food is based on customers
realising the need for a balanced diet to support regular exercise effectiveness. We see the growing market
and so we propose Fitness First to fill it with its uniqueness - nutritional function-targeting.

5.1.2 Competitor Analysis of Fitness Food

Alongside the fitness centres offering food services (Pure’s Nood Food and Gogi’s Youni), other
competitors of Fitness Food include Eatology, which delivers its healthy meals to customers, and coffee
shops such as starbucks. Meanwhile, Fitness First customers can have the substitute of preparing their
own meal plans.

Eatology: As mentioned briefly in the positioning chapter puts a great emphasis on convenience, nutrition
and variety, indeed they provide a daily delivery service and have tailored meal plans for customers
(Eatology, n.d.). However such benefits come to a cost, as Eatology is over 70% more expensive than
Fitness Food. Moreover Eatology lacks physical stores, hence customers are forced to subscribe to their
meal plans, which start from a minimum of 1 week. This can be a turn-off for many possible customers as
they would be forced to commit to their meals, forcing them to neglect possible social activities. As
Eatology is offering healthy food through delivery, customers’ spontaneous demands for food and
beverages after gym cannot be satisfied timely, but Fitness Food can take advantage of its location to
satisfy its members’ instant demands.

Coffee shops: Convenient dining places such as coffee shops are perhaps one of the biggest competitors
of Fitness Food. For example Starbucks offers meals such as salads very quickly and at a cheaper price
when compared to our meals. However, Fitness Food’s meals are more healthy and specialized in
targeting the different needs of the customers, whilst coffee shops offer general dishes. An advantage of
coffee shops is their availability all over Hong Kong. However customers that frequent our gym might

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still prefer our food, as it is more convenient for them to buy it right after exercising. Moreover our food
will be provided with clear labelling regarding nutritional informations, while coffee shops often don’t
often provide this information for their products.

Own meal plans: Customers can prepare their own meal plans, which will be a substitute to Fitness Food.
However, these customers are not the majority of Fitness First’s customers as it targets the busy working
class who are in pursuit of health and wellness. 66% of Fitness First members are under the age group of
25-45, which mainly comprises of the working population (Hong Kong Economic Times, 2018). The high
working hours of Hong Kong workers can be an indicator of their busy lifestyles (UBS, 2016). Busy
workers will probably prefer readily-available meals to self-prepared meals. However, even though some
customers might have their own meal plans, Fitness First can still differentiate itself from the substitute.
The nutritionist-designed meal sets in Fitness Food balance health and taste, while it will be difficult for
people to prepare tasty meals with scientifically-determined nutrition values. Nevertheless, even though
preparing one’s own food is economical, Fitness Food can deliver to the customer the value of
“convenience”.

5.1.3 Market Analysis of Fitness Food Figure 5 CAGR growth

In the macro market perspective, growing demand for healthy
meals to support holistic wellness other than just exercising made
Fitness Food a golden opportunity. Statistically, we notice that
there are 7.4% of compound annual growth rate for healthy food
and beverage products (Euromonitor, 2019) and we believe that
launching a restaurant concentrating on specific nutritional food
will help Fitness First to stay competitive as well as to meet up
with the current and continuing trends to stay sustainable. Also, an
article abstracted from the Wall Street Journal suggested that
selling protein-rich, all-natural prepared meals to gym members at the clubs has become a trend.

5.1.4 Cost Control

The 3 major cost concerns of Fitness Food are: (1) food cost, healthy and nutrition-rich ingredients always
come with a high cost; (2) labour cost, Fitness Food will incur additional staffs in charge of making the
food ready; and (3) rent, fitness centres already took up a huge place, with the fact that the rent in Hong
Kong is excessively high, sparing place for Fitness Food may be difficult or extra cost is needed.

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Food cost: This is an unavoidable cost of Fitness Food, yet it can make use of economies of scale
supported by its large active user bases and number of branches. In the first stage, we suggested Fitness
Food offers a limited variety of food (e.g. 2 meal sets for each of the 3 most common nutrition targets).
This practice increases the extent of standardised meals offered and hence fixed costs can be spread
through bulk purchase. Market taste and preference can also be tested in this stage. After the success of
the test marketing, Fitness Food can consider adding variety in its menu to become holistic.

Labour cost: As the food is mostly prepared by suppliers, staff only need to acquire simple skills to make
the food ready for customers. Indeed, our meals will not require high cooking skills, as it will be mostly a
combination between vegetables (avocado, salad, potatoes) and easy to prepare protein source such as
chicken breast and salmon. Hence no chefs will be required enabling labour cost to remain minimal.

Rent: Fitness Food will not take up a lot of spaces by limiting the dine-in areas and cutting the
complicated kitchen from it through order food from the supplier. According to the official website of
Fitness First, there is a spacious lounge area in every club originally designed for members to rest after
the gym which can be reconstructed to Fitness Food by using half of the lounge area. In this case, no extra
rent will be incurred.

5.1.5 Alternatives
According to Simon Flint, CEO of Fitness First Asia, 219 million USD is recorded in the 2016 financial
year (Cracknell, 2017). While as mentioned in previous sections, Fitness First has spared 5 million HKD
for further investment of club upgrade in Hong Kong. We notice there are few alternatives such as
upgrading the facilities and expanding the number of clubs. Yet, Fitness Food will be one of the easy
ways to raise profits, competitiveness and remain sustainable.

Simon Flint stated that setting up a new club requires 22 million HKD of the initial investment.
(Cracknell, 2017) Upgrading existing clubs’ facilities for hiring professional trainers for more fitness
classes also incur a huge capital and labour cost. Fitness Food, as a casual cafe in nature, requires less
capital requirement than other alternatives. Nevertheless, the advantages brought to Fitness First are not
inferior to them: (1) we foresee that Fitness Food can make considerable profits for Fitness First with all
the above-mentioned fitness and holistic wellness trends; (2) to stay competitive and keep in line with
other top leaders in the market such as Pure Fitness, we see the need for Fitness Food to embrace itself
into the healthy food service, or else the lack of holistic wellness care will become a comparative
disadvantage for Fitness First in the near future; and (3) Fitness Food is a sustainable development

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alternative, with minor upgrade in later stages, the service can stick with the latest trend (e.g. adding new
and fashionable meal into the menu), yet for upgrading facilities in later stages require another huge
investment.

5.2 Branding Strategy

Fitness Food will be introduced as a branding extension of Fitness First. As the latter is a well-known
international fitness centre brand we believe that we can leverage its reputation as a professional health
provider to boost the credibility of our new service. Overall, the brand equity we want to create for
Fitness Food is that of a healthy and convenient meal choice.

5.3 Pricing Strategy

We plan on implementing a value-based pricing strategy, and price our food from 90 to 120 HKD per
meal set (dish + drink). We believe that our focus in providing healthy and convenient meals can be
viewed positively by our consumers, moreover, clear labeling of nutritional informations will allow them
to easily track their caloric intake, allowing them to plan their diet more easily. As mentioned in the
customer analysis, the bulk of Fitness First users is comprised by consumers well developed in their
career, and hence have middle to high-income.. Hence we believe that their purchasing power is high
enough to afford health-related products such as those of Fitness Food.

5.4 Channel Strategy

In regards to channel strategy, Fitness Food plans to utilize a direct marketing channel as the food will be
directly sold in Fitness First centers, which will strengthen direct company-customer interactions. This
will also give us the opportunity of engaging the customers directly with information regarding dieting
and nutrition through our gym professionals, enabling us to provide value-added service that other dining
services might not be able to. Nevertheless, depending on the demand for this new service and its
real-market profitability, we do not exclude the possibility of utilizing indirect channels through shipping
our food to retailers such as 7-11.

5.5 Integrated Marketing Communications Strategy

In order to promote Fitness First’ new service Fitness Food, we adopt the promotion mix to advertise
through several ways including advertising, direct and digital marketing. We recommend Fitness First to
adopt both broadcasting through a promotional video that target to the general public as well as
narrowcasting through Key Opinion Leaders and social media like Instagram.

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5.5.1 New Product Launch
2 ways to raise the awareness among age group of 25-35 by 30% of our new product at the start of
product launch within one year will be introduced: (1) a promotional video highlighting the usage of our
new service - providing healthy food in a convenient way through Youtube (2) #400KcalChallenge which
encourage users to post pictures of their daily healthy lunch within 400 kcal to promote the attractiveness
of healthy food on Instagram. Here we adopt the rational appeal to present the self-interest of staying
healthy and time saving that users enjoy from our service. Non-personal communication channels are
used here to address the great amount of general public.

5.5.2 2-year Plan

The 2 year plan refers to strategies of Key Opinion Leader (KOL) marketing and mobile marketing. For
the former, Fitness First can invite famous KOL related to the fitness industry like Coffee Lam to promote
the service and create a buzz marketing effect that spreads information related to their communities. The
act also increases credibility of the service quality for increasing confidence of customers on the service.
For the latter, the current application of ‘Class Booker’ will be modified with additional functions of
browsing menu, ordering food and time for pick-up. Here Fitness Food would like to target both potential
and current members of Fitness First to increase the usage of the new service.

6. Implementation Plan

At the beginning of implementation we suggest a test marketing of Fitness Food at Tsim Sha Tsui Centre
because it has the largest area to carry out the market plan, and it is surrounded by many office buildings
such that the customers mainly comprises of office workers - our marketing plan’s target group. Within 5
years, we would like to implement this service at every centres with the investigation on further actions
like opening branches located other than Fitness First clubs.

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Appendices

Appendix I - Setup of Fitness Food

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Appendix II - Menus

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