7.1 Target Market
The target market for Fitness Network is the youth, students, and working populations. They are the majority groups that are health conscious and will frequent gyms in Singapore. This is said because research has been done and studies have shown that since they are youth, they have a lot of time on their hand and they are willing to pay the extra money to fill their time by doing something useful. Also parents would gladly agree to give money for them to join the gym because it is something that is healthy and not a waste of money. The working population also is a very important group because firstly they are financially independent and they are at a stage where they want to be fit and look good. Moreover it is now a trend in Singapore to go to gyms and the majority of the younger population if not going to a gym, aspires to go to gyms so that they can keep fit and look good according to the trend.
The Singapore government also plays an important part in attracting people to join the gym. This is because the Singaporean government always promotes a healthy lifestyle to the population. Also not forgetting the Singaporeans is very pro- government and they are more likely to obey the government. Singapore is an overall clean country where the Singaporeans are very health conscious and most of the population is involved in some form of sports. Moreover it is now a trend in Singapore to go to gyms and the majority of the younger population if not going to a gym, aspires to go to gyms so that they can keep fit and look good according to the trend.
Another very important target market is the housewives. This group should not be neglected; this is because after years of being in the business Fitness Network loyal customers are always this group. Housewives are a perfect target, why? This is because they have a lot of in their hands and most of them are at an age where it is hard for them to maintain a figure. That is why they are pressured to join a gym to work out, and on top of that most of the classes are designed for them. Also the gym is a place where they can take a break from the busy schedule and socialize at the gym.
All this target groups are decided after years of experience running the business and advertising are form based on this groups.
7.2 Market Entry Strategy
This Greenfield operation is where the company decides to build its own manufacturing plant in an overseas country using its own funds (Michael R. Cinchona, Ilkka A. Ronkainen, 1998) For Fitness Network, this strategy is suitable because Fitness Network is a gym and it is providing a service to its customers. This means Fitness Network will set up a brand new branch in Singapore independently. Fitness Network also has the financial muscle to open an outlet in Singapore.
The advantage of using Greenfield operations enables a firm to utilize the latest production technologies while at the same time selecting the most attractive locations in terms of labour costs, local taxes, land prices and transportation. It is also wise because it is a gym business and location is important. It should be easy to access from on sides of the island and also it should be near a school or university. This is because the target market is there. Also it should be easy for people to use the public transport like bus or the MRT because majority Singaporeans do not drive and most of them take the public transport. Fitness Network are targeting the middle class and above, so locating it at a middle class area is important because people would be more comfortable in joining.
Getting workers also wouldn't be a problem because the gym is place near a university or a school, there are bound to have students who want to earn extra money. Trainers also can be found easily, or new workers can be train by a fellow trainer in the company. By using this strategy the company also gets to get a lot of tax cut and the business would not have...
Please join StudyMode to read the full document