Badan Gym Marketing

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Situation analysis

The Demographic Environment:

Our main geographic target is the University District (Tila al-Ali, al-Dschubaiha, Suwailih, Askan Abu Nusair, Schafa Badran, Khalda) where population size was estimated to be about 398440 in 2015, according to the official department of statistics. Potential market for Badan Gym is ladies of the age 16 years and above, which contributes to 48.5% of the population (345540).

On the other hand, the educational rate reflects the extent to which people of the district are well educated and informed about their physical needs and health situations which pour in the need for gym subscription to maintain and gain better and healthy lifestyle. 7 per cent of the targeted district’s population is illiterate, 28 per cent has school degree, and 10% has elementary degree. While those who hold diploma, bachelors and master’s degree are 11%, 29%, and 15% respectively.

The Economic Environment

Consumer psychology in Jordan can be mainly characterized as price sensitive due to many indicators such as:

1. The individual output which described by (GDP per capita income) is 11,100 USD owning the 135th order among the world.

2. The unemployment Rate is 15.8%.

3. The inflation rate is 4.3% up to April 2017 which was 2.6% at the end of 2016. This indicates a general increase of prices.

4. Consumer Price Index CPI is 118.80.

5. New tax obligations of 16% on fitness centers and gyms in Jordan declared in 15th of May, 2017.

The economic environment is not a favorable factor for any newcomers entering the market. This is considered to be a challenge for BADAN, and might be overcome through promotions and offers that can guarantee a satisfying penetration of the market.

The Sociocultural Environment:

86% of females and 82% of males in Jordan are suffering from obesity. As a result the majority of obese people suffer from diabetes and hypertension (high blood pressure). Aligned to medicine treatment and sometimes operational interventions, many physicians and doctors suggest 3-5 times a week of physical action as in exercising and following a customized diet.

SWOT Analysis

Strengths:

BADAN gym is unique in its location, which is centered in university district. With parking lots which are considered a competence in Jordan since it’s a problem in most busy areas in Jordan. Because of its location nearby 3 of Jordanian universities; University of Jordan, Princess Sumaiah University of Technology and Applied Sciences Technology, it attracts huge number of university students.

The machines at the gym are of high quality exported from China and of USA originated company ( Matrix Fitness ). Customers can work out the whole body parts with ease and specialized instructions.

The brand name of BADAN is a well-established one known for more than 15 years in the area and beyond. Being able to maintain such name is a privilege, the name has been always reflecting a state of art service and unique experience. BADAN has always been an effective member in the society through having constructive actions with regard to orphans housing and Ramadan charitable events.

Weaknesses:

A great deal of weakness is routing from the fact that BADAN’s board of management from 2011-2015 has worsen the major pillars of BADAN operations which are: quality of service and atmosphere, hygiene and cleanness and too-low pricing strategy.

Moreover, routing from the fact that BADAN is a family business, we sensed the resistance of new objective methods of management. Lacking of systemized processed and procedure might be an obstacle. Instead, a total dependence on gut feeling and experience is the norm.

Opportunities

Being in the business for more than 7 years and being able to renovate on continuous basis, along with the fact that the majority of population suffers from obesity and associated illnesses. This would be an opportunity for expanding further in the city and support the idea of opening new branches.

Threats:

The biggest threat of BADAN is the possible competition. At the moment, the existing competitors are all other gyms in Jordan, even though they do not have similar workout programs, target market, ladies only specialty with the same quality of service. The existence of fitness chains in the country is of a great threat to local branded gyms.

Furthermore economic conditions could cause a threat, since gym memberships are not considered an essential commodity which is jeopardize if prices and economy went in the unfavorable way. Plus, the recently added 16% tax on fitness centers in Jordan would impose elevated prices on the customers behalf and cost on the business behalf.

Market summary

Marketing objectives

- Increase brand awareness.

- Penetrate the market through the youth localized at the area and campuses around it.

- Build trust and contacts through social media accounts and interaction.

- Launch new services.

- Grow market share.

Target market

- University students and faculties; this includes universities of the area (University of Jordan, Princess Sumaiah University of Technology) and many other universities that have their students buses parking near the gym’s location.

- Residents of the University District.

- Girls and ladies aged 16 years old and above.

Marketing Mix

Product/ Service

- The gym would be providing 3-months, 6-months and 12–months memberships. The gym subscription would include:

- Upon-arrival locker for personal use.

- Utilization of the gym’s facilities with no time restrictions.