1. Unit 9 P5/M3
Lewis Appleton Miss James
Gym Promotional Campaign (P5)
Objectives
One of the objectivesisgoingtobe to attract an equal butlarge amountof both male andfemale
people touse the gym.The aim isto make sure thattheyare persuadedtosigna one year contract
to use the gym and thiswouldensure fixedincome aswe wouldknow whenthe contractwill end.To
do thiswe will advertiseanewofferwhichwouldbe somethingsuchas“couplessave 10%”,this
wouldpersuade couplesof bothmanand womentojoin.Thiswouldnotbe the onlyoffer;people
that signup withinacertaintime periodsuchasthe firstthree monthswouldsave 5%.People who
purchase online willalsosave 10%.Thisway people are encouragedinmanywaystosignup forthe
gym andthe offerscannotbe stacked.
Target audience
The target audience isgoingtoinclude couples;thisisbecause whenpeoplewanttogetfitit usually
inspirestheirpartnerstowanttodo the same.Therefore the offerallowsboththe people togetfit
and theycan alsotake advantage of the offer.The coupleswouldhave tobe aman and a woman
whowouldmeetthe objective;theywouldsave 10% whentheysignuptogether.Thisalsomeets
the aim of gainingan equal numberof menandwomen.The targetaudience willalsoincludepeople
intheir20’s as these are whoare more likelytowanttoget fit.To meetthisaudience we will
advertise inamore upbeatway.The reasonwhythese are the target audience isbecause theyare
more likelytowantto getfit,couplesbecause theyare ofteninspiredbytheirpartnersandpeople
intheir20’s because theywanttoshowoff to theirfriends.Tomeettheirneedswe will have
equipmentthatcanbe usedby bothmale and female aswell asbodybuildingandchallenging
equipmentforthe more determined. Toattract these peoplewe willhave topromote the discounts
available tocouples,the offerwouldnotmeantheyhave tobe couples.Theycouldjustbe friendsas
the offerisavailable toa manand women.
Promotional message
We will promote the factthata discountof 5% isonlyavailable forthe first3 monthsof openingand
thiswouldmake itmore likelyforthe people tosignthe contractsbecause theywanttosave
money,we couldalsopromote a20 daycash back scheme where theywouldgain80% of their
moneybackif theywere dissatisfied.The reasonwhythisis80% insteadof 100% isto stop people
fromusingup the 20 days thenaskingfortheirmoneybackintentionally.The biggestthingwe will
promote wouldbe the couple’sofferwhichwouldbe shownbycouplesusingthe equipment
togetherandthere will alsobe equipmentthatbothmale andfemale caneasilyuse.The messageI
am tryingto showisthat we encourage couplestoworkout togetherasit firstof all helpsthe gym
improve equipmentthat can be usedfor bothmale andfemale andthe fact that ithelpsbuildthe
bondbetweenthe couple.The sloganforthe gymwill be “we buildtogether”,thisisbecause it
showsthat itis more welcomingtocouplesandthatbyworkingtogetheritbuildsboth the bodyand
the bond.
2. Unit 9 P5/M3
Lewis Appleton Miss James
Promotional budget
The budgetfor the gym isgoingto be ÂŁ50,000 thisisgoingto be usedonjustadvertisingsothatthe
gym will become more knownandthe mainpointscanbe advertised. The formsof promotionused
will be television,specialistTV channelsthatare specifictofitness thatwouldpromote the whole
chainof gyms,regional radio,local newspapersandPR.The reasonsforusingthese formsisbecause
firstof all theyapplyspecificallytopeople thatlive locallyandthe specialistTV channel would
increase the chancesof people takingnotice of the advertisement.Ihave notconsideredmore
national formsbecause theydonotapplyto people close andtheyare unlikelytotravel fartouse
the gym.
Promotionandmedia mix
The firstform of promotionIam goingto use is the TV advertisement onaregional channel;this
costs £3,000 to getan advertisementfor30 secondsfrom7am – 5pm. Thiswill be bookedfortwo
channelstotallingÂŁ6,000. The reasonfor thisisthat TV advertisementsare the mostseenandeven
thoughnot manypeople maytake notice of it,if 100,000 people were tosee the advertisement
there isa highchance of people signingacontract.
The secondform of advertisementIamgoingto use is the radioadvertisement;thisisona regional
networkmeaningpeople inacertainpart of the UK are goingto hear it.Thisis useful because it
meansthat onlythe people close hearitbecause if itwasnational thenpeoplethatare hundredsof
milesawayare not likelytogoto the gym because of inaccessibility.The advertisementis10 spots
perday on eachstationand lastsfor twoweeks.ItcostsÂŁ10,000.
I couldadvertise ona site suchas Google butpeople thatuse Google usuallytake little ornonotice
of the advertisementsastheyjustgetinthe waytherefore itisnotthe bestthingtodo. Aswell as
thisGoogle ison a global scale thisisnot the bestuse of money.
A full page adon a local newspapercostsÂŁ3,000 + VAT.We will use thisofferbecause peoplethat
are local are farmore likelytouse the gymandthisgivesusa goodchance to attract the attentionof
these people.Asthe gymispart of a chain thenpreviouscustomersmaybe notifiedbyE
newsletters,thisischeapbecause itonlycostsÂŁ2,000. Evenif the customersare notlocal theymay
knowlocal people thatcan take advantage of the offers.Customersthatenjoythe use of the gym
may actuallyfindthatthe gym iscloserthanthe one theyare usingso theycan alsotake advantage
of this.
It wouldbe useful forthe gymto rebrandtheirwebsite,thiswouldonlycostÂŁ10,000 and itwouldbe
useful whenadvertisingthroughthe TV andthe radio.This wayit givesaneasierwayforpotential
customerstocontact the gymif theywanta contract so theydo nothave to do somethingsuchas
phone them.Thisiseasierbecause itsavesthe hassle of waitingonholdonthe telephone andit
doesnotcost anythingextraforthe customers.
Finallywe will advertise onaspecialistTV channel suchashealth andfitnessasthisappliesmore to
the target audience thatwe want.Thishighlyincreasesthe chance of peopletakingadvantage of the
offerbutthere isthe chance that competitorsmaydothe same.Thiswouldcost ÂŁ15,000 and from
thiswe wouldgive us 12 viewingslasting30seconds.Finallytoincrease the awarenesswe will carry
out twodays of PR costingÂŁ2,000 whichwouldhelptopubliciseeventsthatwill be carriedout.This
3. Unit 9 P5/M3
Lewis Appleton Miss James
totalsto aroundÂŁ48,000 leavingÂŁ2,000 leftoverif we neededtoadvertisemore. The reasonwe are
not goingto use internetadvertisingisbecause manypeople use the internetbutaverysmall
percentage actuallylookatthe advertisements,aswell asthisif the advertison a global site there
are unlikelytobe anyone local thatisgoingto see it.The onlywaywe wouldconsiderthisisif the
site wasregional orlocal and regularlyaccessed.We are goingto designawebsite becauseitallows
firstof all an easierwaytocontact the gym and the otherreasonis because all of the things
advertisedcanbe explainedandpromotedwithoutanycosts.Onlypeoplethatvisitthe site willsee
them.
Frequency and timing
The short termplan forthe promotionsisto make sure that at leastone quarterof the budgetis
usedinthe firstmonthpurelypromotingthe factof the introductorydiscount.Thisisbecause by
promotingthe mostattractive offerwhile itisavailable meansthatpeople are more likelytotake
advantage.The restof the budgetwill be spentoverthe three months as“upkeep”tomature the
awarenessof the gym.The first formsof advertisementsthatwill be usedare the local newspaper
and the e newsletter.The longtermplanforpromotionistocarry out the publicrelationsonthe 4th
and 8th
weekbefore opening.As wellasthishalfwaythroughthe 3 monthsthe TV advertisements
will be shown.The specialistTV advertisementwill be shown overthe months,one viewingeach
week.The rebrandingwill be carriedoutonthe website after8weeks.The regional networkradio
campaignwill be carriedoutafter6 weeks. Thisisbecause itwill be easieratthistime because some
people mayhave alreadyheardof itand byhearingitagain itmay influence themtotake advantage
of the offerspromoted. Thiswill be done duringthe summerbecause more people will be available
and possiblynotatworkso theyhave more time to go to the gym andwatch television,read
newspapers,listentothe radio,all of whichwe will advertise on.
Evaluation (M3)
Strengths
The good thingabout promotingthe fact that there isa discountavailable forcouples,notonlydoes
thisencourage couplestojoinbutas well asthisitalso meansthatthe objective of havingalarge
amountof bothmale and femalesusingthe gym.Thisisalsogoodfor the customersas itmeansthat
theycan builda bondtogetheraswell asbodybuilding.The goodthingaboutfocusingona more
upbeatadvertisementplanmeansthatyoungerpeople,whoare usuallymore determinedtobuild
theirbodyare more likelytotake advantage of the gymsoffers.
The good thingaboutfocusingonpromotingthe introductoryoffermeansthatthe mostattractive
offerisseenbyeveryone andtherefore theyare likelytotake advantage because itisonlyavailable
for a limitedtime.Aswell asthis,the couplesofferhasahigherdiscount;the reasonforthisis thatif
theywere tohave the same discountaseveryone elsetheyare notlikelytofeellikesigningthe
contract. Thisis because theywouldnothave anyadvantage toothersthat apply.
The good thingabouthavingonlyan 80% cash back meansthat it preventsleeches;people whojust
use the gym for the 20 daysthenclaimback theircash and move onto anothergym.So therefore
4. Unit 9 P5/M3
Lewis Appleton Miss James
evenif the gymdoeshave people leechingoff theirmachinestheywillstillmake aprofit.Thisisalso
goodbecause if people donotfeel comfortablewiththe gymtheyare able toget some of their
moneyback.
The good thingaboutthe budgetbeingÂŁ50,000 isthat we are able to use a varietyof different
advertisingmethodstogetthe attentionof the public;we are notforcedto justuse certainformsor
cheapforms.Thisallowsusto get the attention inmanywayssuchas television,internet,email,
newspaper,andpublicrelations.
The good thingaboutfocusingonlocal formsof advertisingisthatitismore likelyforpeople that
live local touse the gym and therefore moneyisnotwastedonadvertisingtopeoplethatare not
goingto use the gym. The goodthingabout usingthe specialistTV advertisement ona healthand
fitnesschannel isthatthe people thatare reachedwill be people interestedinhealthand fitness;
these are the people thatare more likelytowanttouse a gym.
The good thingaboutadvertisingatsettimesmeansthatit iseasiertoshow the potential customers
at differenttimes,if the advertisementswere all carriedoutatonce the messagesmayreach all the
same people andnotgive anyadvantages,but havingthe advertisementsondifferentdaysmeans
that differentpeople are more likelytohearthemandit alsoacts as an upkeeptokeepingthe
awarenessof the gymopeningknown. Usingavarietyof channelsmeansthatwe are more likelyto
reach customersasthere shouldbe at leastone channel theyare engagedwith.
Weaknesses
The bad thingabout havingthe offersisthattheymay be a bit confusingforpeople.The
introductorydiscountmaynotbe as noticedbecause theycanjustget a friendtogo withthem
insteadandstill receivethe 5%discount.Thismakesthe introductory discountuselessinthis
scenario. Howeverthisalsoeatsintothe profitthatthe gymmakes.
The bad thingabout focusingoncouplesisthattheyare more likelytobe olderpeople anditis
usuallyyoungerpeople thatare interestedinbuildingtheirbody,thismaymeanthatitwill be
harderto persuade the people tojoin.The badthingaboutfocusingonpeople intheir20’sisthat
theyare far more likelytobe guysas youngerwomenare notthat botheredabouttheirbody. This
may notbring inan equal amountof menand women.
The bad thingabout onlyhaving an80% cash back policyisthatit may deterpotential customers
fromstickingto the scheme astheymay notwant to risknot enjoyingthe gym.Thismeansthat
people maythinktheyare notgoingto enjoythe gymand that if theyjointhentheyare boundto
the contract otherwise theywill lose money. Howeverthe firstweekwill be fullyrefundable if the
personwishestoleave tocombatthis.
The bad thingabout onlyhavingÂŁ50,000 isthat no large eventscanbe carriedout such as charity
runs or a distributionof leaflets.If leafletswere distributedthenalargerscale of people will be
aware of the gym butthiswouldcost nearlydouble the budget.The badthingaboutthe newspaper
advertisementsisthatnoteveryone takesnoticeof the advertisementsandtheyare usuallyall on
the same page as others,thismeansthatpeople thatjustreadthe articleswon’tsee themasthey
5. Unit 9 P5/M3
Lewis Appleton Miss James
justread pastthe ad pages. Aswe alsohave no historyinformsof advertisingwe donotknow how
each formisgoingto affectthe gym.
The bad thingabout televisionadvertisementsisthattheyare expensive andonlylast30 seconds,
thismeansthat the promotionhasto be summarisedintoaquickadvertisementotherwise theywill
not be able to showeverything.The badthingaboutthe E newslettersisthatthe customersmay
alreadybe usinganothergymfromthe chainand therefore maybe boundtoa contract.
The bad thingabout showingthe advertisementsoveranumberof weeksmeansthatif the
advertisementwasshownlate duringthe pre-openingthenthe peoplewhosee itmaynothave
enoughtime totake advantage of the offers.Anotherbadthingaboutthe televisionadvertisements
isthat the channelsmaybe national andcan resultinreachingpeople thatdonotlive nearthe gym.
Thismeansthe moneyiswasted. The audience isalsotoolarge so itshard to targetthe specific
people.
What would be better next time
Nexttime the budgetforadvertisingwillbe higher,we will notneedtouse asmuch introductory
offerstogainthe attentionaswe can show all of the informationtopeople inlarge amounts.We
coulduse a leafletcampaignwhichwillcostÂŁ90,000 eventhoughthisisexpensiveitmeansthat
popularshoppingcentreswill have leafletsaboutthe gym.Thiscouldbe a goodthingbecause itcan
promote the whole chainof gymsratherthan justthe one butif the single gymneedstobe
advertisedmore thenitcouldbe a signof wastedmoney sotherefore the wholechain will be
advertised.If we wanttopromote the whole chainof gymsthenwe can alsouse Google advertising
and a full page advertisementinthe sun.Anyof the forms of advertisingusedthistime canbe used
againdependingonthe success.The specialistchannelsare likelytobe successful andthe local
newspapersaswell.We canuse historicdatato informuswhat wasand what wasn’tsuccessful and
whatshouldbe usedagain.We will thenalsohave anideaof whoour customersare and we can
target themspecificallywiththisinformation.Itmayalsobe advantageoustohave billboard
advertisementsasthese are seenbymanypeople locallyandare verybigso theyeasilyattract
attention.Howeverif we were touse these differentformsthenitwouldbe tooexpensivesowe
wouldmostlikelyhave abudgetof aroundÂŁ75,000 - ÂŁ100,000. If we were to use the leafletsthen
we couldnot do muchmore therefore we will notuse this.The internetGoogle advertisementsis
ÂŁ20,000 andlastsone week,the Sunfull page advertisementisÂŁ11,000. The three citybillboardsin
the local city wouldcostÂŁ40,000. Taxi advertisingcouldbe usedwhichwillcostÂŁ14,000 for the
artworkand advertising.The ÂŁ15,000 leftovercan be usedfor formsof advertisingthatwere
previously successful.The Google advertisementlastsforaweek.The taxi advertisingisagood
optionbecause itisnot muchexpensive,the taxi movesmeaningitcanbe seenby manypeople and
it laststhe whole year.Howeverusingtaxiswillmeanthe writinghas tobe biggerandmore
summarisedsopeople cansee it.