Integrating Online And Offline Strategies †Myassignmenthelp.Com

Question: Discuss About The Integrating Online And Offline Strategies? Answer: Introducation A business plan is essential for the start-up business, as this allows the business organizations to evaluate the strengths and weakness of the organization and the market. The main aim of the report is to prepare a business plan for the start-up of a fitness center named Anytime Fitness in Perth, Australia ("Perth - Anytime Fitness", 2017). The company aim towards establishing partnership by considering the opinions and viewpoints of the members of the fitness club along with the companies that provide different types nutritional supplements. In order to increase the value of the fitness business, Anytime Fitness has segmented the potential customers ("Anytime Workouts | Free Fitness App - Anytime Fitness", 2017). Financial Plan for Anytime Fitness The startup cost for the fitness center Anytime Fitness includes the blueprint of the overall business plan and structure. The components of the startup cost include funding of the owner, average monthly cost, and the fixed cost. The total funding of the owner has amounted to $100,000. Customer Segmentation As commented by Han, Lu Leung (2012), customer segmentation allows the business organizations to develop products or services and the price based on the demands and income of the customers. Therefore, appropriate customer segmentation will allow Anytime Fitness to develop products, services, and price according to the target customers. The main target customers for Anytime finance include the different types of members in the fitness center. Other than fitness facilities, the center provides facilities such as steam bath, spa, toning, resistance training, and bodybuilding. Additionally, the fitness center will be operating 24 hours thereby, providing an opportunity for the customers to avail the fitness facilities according to their convenience (Floh et al., 2014). The fitness center has also categorized the members in order to offer maximum services to the customers based on the price paid by them (Hamka et al., 2014). The customer categorization includes VIP training, personal training, special service, membership and direct membership. Additionally, identifying the distinctive nature of the secondary customers has helped Anytime Fitness to consider the interest of the non-members for using the services of the fitness center. The non-members of the fitness center avail the services for buying health supplements, nutritional consultation and other exclusive services (Hjort et al., 2013). Relationship with target customers Considering the market competition and the convenience of the customers, Anytime Fitness will be operating 24 hours a day. The operating time of the fitness center will be beneficial for the organization initially. Firstly, the main aim of the fitness center is to recruit personal trainers that will help in providing suitable guidance to the members. According to Boulding et al., (2013), customer relationships are significant for the companies as this enables success y fulfilling the needs and demands of the customers. In order to build customer relationships, Anytime Fitness plans to use internet facilities such as web and social media. Additionally, the company also plans to use SMS and WhatsApp for building an effective customer relationship. According to the value proposition, the fitness center needs to consider the different values (Mithas, Krishnan Fornell, 2013). Moreover, in order to improve the service of the fitness center, Anytime Fitness needs to consider the feedbacks of the customers or the members of the gym. Value Proposition The primary aim of Anytime Fitness is to build a single workout environment so that the customers are able to get personalized fitness solutions. In addition to, the fitness center emphasizes on the age group of 15- 66 years. Targeting the customers within the age group will allow the company to develop services according to their health needs (Andrews et al., 2013). The fitness center has also opened the option of online blogs that will provide an opportunity for the customers to share their viewpoints, opinions, and suggestions. The company can consider the customer feedbacks for developing their business (Armstrong et al., 2015). Other facilities provided by the company website includes various types of mix and match opportunities. The opportunities will act as suggestions for the customers so that they are able to decide the appropriateness and suitability of the health facilities. The primary aim of the Anytime Fitness is to create a higher value for the customers at an affordab le price (Osterwalder et al., 2014). Market Channel As commented by Patino , Pitta Quinones (2012), marketing is the most crucial aspect for the business organizations as this helps the company in communicating the product to the target customers thereby, increasing the sales. Therefore, business organizations use both online and offline market channels for communicating with their target customers. Similarly, Anytime Fitness will use both online and offline channels for marketing the exclusive fitness facilities to the target customers. The principle offline marketing channels include posters, organizing events and campaigns along with television commercials. The use of offline marketing channels will help the company in communicating with the customers that do not use internet facilities (Roberts Zahay, 2012). Additionally, the various online marketing channels include promotion through Facebook, Instagram, and YouTube. Use of Social Media As commented by Tuten Solomon (2014), social media is the most widely used internet platform in the modern world. In order to remain updated and maintain effective communication people around the world use the social media. Reports suggest that Instagram has more than 180 million fitness users (Saravanakumar SuganthaLakshmi, 2012). This is because Instagram allows the users to view posts of professionals and enthusiasts of fitness. It has been observed that customers are interested in live videos from the fitness professionals or brands. Therefore, Anytime Fitness can use Instagram for posting videos from the partners thereby, entertaining and engaging the target customers. As the target customers are aged between 15-66 years, some of the customers might find using social media difficult. Therefore, considering this aspect, Anytime Fitness will also implement offline methods of communicating with the target customers. The offline methods implemented by Anytime Fitness include SMS, posters and television commercials. Sending messages at regular intervals to the customers will help in engaging the customers. Additionally, television commercials and posters will also help in engaging the target customers along with providing them with suitable knowledge about the services provided by the fitness center. Facebook is the most widely used social media recently. The users in order to follow various brands and remain communicated use Facebook. Therefore, Anytime Fitness can use Facebook for engaging the customers. Anytime Fitness will include YouTube as an online medium for engaging the customers thereby, increasing the customer base and business. Thus, the use of different social media will allow Anytime Fitness to establish them successfully in the fitness industry. The use of Facebook, Instagram and YouTube will provide an opportunity for the Anytime Fitness to post and share live videos that display the different services provided by the fitness center. Key Resources The principal resources for the business organizations will help Anytime Fitness to establish their business appropriately (Abecassis-Moedas et al., 2012). The key resources for Anytime Fitness include the suppliers of the nutritional supplements and gym equipment. Therefore, Anytime Fitness will only tie up with the suppliers that will provide the best and most affordable price for the products. The secondary key resources include the health professionals that will provide suitable training to the members. Key Activities The key activities of the business organizations need to be aligned with the aim and objectives of the company thereby, enabling success (Ward, 2016). Therefore, based on the aim and objectives, the key activities for Anytime Fitness include training for the members of the fitness center along with developing diet plan according to the health needs of the members. The additional key activities include body massage and a steam bath that will help the members lose weight and experience the leisure. Partner The topmost fitness equipment brands are the principal partners of Anytime Fitness. Other than them, the suppliers of the nutritional supplements will also be the key partners for Anytime Fitness. This will help the company in establishing them thereby, attracting the customers. Cost Structure and Revenue Streams The company has categorized the members of the gym in terms of Personal and VIP training, direct membership and special service membership. Based on the categories, the principal cost of the company includes the cost of the nutritional supplements and the fitness types of equipment. $9250 is the break-even revenue of the startup business. The startup cost for Anytime Fitness is furnished below: Start-up Expenses Fixed Costs Particulars Amount (USD) Monthly Rent 10,500 Staff Remuneration 35,000 Marketing Fees 1,036 Exercise Equipment 4,500 Flooring 6,500 Interest on loan 10% 2,500 Cleaning Supplies 1,650 Office Equipment 1,250 Gym Supplies 2,250 Other Gym Supplies 1,650 Lease payments 8,000 Market survey 1,975 Preliminary Expenses 1,200 Total Fixed Costs $ 78,011.00 Average Monthly Costs Infrastructure $ 875.00 Lease payments $ 666.67 Interest on loan 10% $ 208.33 Cleaning Supplies $ 137.50 Flooring $ 541.67 Staff Remuneration $ 2,916.67 Total Average Monthly Costs $ 5,345.83 x Number of Months: $ 12.00 Total Monthly Costs $ 64,150.00 Total Startup Expenses $ 142,161.00 Start-up Assets Owner Funding Owners Fund $ 100,000.00 Total Owner Funding $ 100,000.00 Loans Bank Loan $ 22,200.00 Other Total Loans $ 22,200.00 Total Start up Funds $ 122,200.00 Assets Gym Equipments $ 27,000.00 Land Building $ 125,000.00 Total Fixed Assets $ 152,000.00 Total Start-up Assets $ 274,200.00 Year 0 FY-1 FY-2 (a) CAPITAL Capital Employed 100,000 103,000 Loans 22,200 Loan repayments 0 15,000 (b) SALES FORECAST Special Service Membership 26,000 28,600 Direct Membership 37,000 40,700 Personal and VIP Training 33,300 34,965 Projected Sales 96,300 104,265 (c) COST OF GOODS SOLD 88,800 93,240 (d) EXPENSES (Overhead) Monthly Rent 10,500 10,500 Staff Remuneration 35,000 36,750 Marketing Fees 1,036 1,088 Exercise Equipment 4,501 4,726 Flooring 4,810 5,051 Interest on loan 10% 2,220 2,220 Cleaning Supplies 1,221 1,850 Office Equipment 925 971 Gym Supplies 1,665 2,450 Other Gym Supplies 1,221 2,125 Lease payments 5,920 6,216 Market survey 1,462 1,535 Preliminary Expenses 888 932 (e) FIXED ASSETS Gym Equipment 27,000 36,000 Land Building 125,000 128,750 (1) SALES FORECAST Year 0 1 2 Projected Sales 96,300 104,265 (b) Cost of Goods Sold 88,800 93,240 (2) CASHFLOW FORECAST Year 0 1 2 CASH INFLOWS Cash from Sales 96,300 104,265 Directors loans 0 22,200 0 Capital Employed 0 100,000 103,000 TOTAL CASH INFLOW 0 218,500 207,265 CASH OUTFLOWS Payments for Operating Expenses 88,800 93,240 Monthly Rent 0 10,500 10,500 Staff Remuneration 0 35,000 36,750 Marketing Fees 0 1,665 2,450 Lease payments 0 5,920 6,216 Corporation Tax 1,124 1,716 Market survey costs 0 1,462 1,535 Other preliminary expenses 0 888 932 capital expenditure Gym Equipment 0 27,000 36,000 financing repayments Loan repayments 15,000 TOTAL CASH OUTFLOWS 0 172,359 204,339 Cash flow summary NET CASH FLOW FOR PERIOD 0 46,141 2,926 OPENING CASH BALANCE 0 0 46,141 CLOSING CASH BALANCE 0 46,141 49,068 (3) DEPRECIATION SCHEDULE Year 0 1 2 Fixed Assets Gym Equipment 0 27000 36000 Land Building 0 125,000 128,750 Total book values (i.e. net fixed assets) 0 152,000 164,750 Annual Depreciation Gym Equipments-10% straight line 2,700 3,600 Land Building-20% reducing balance 25,000 25,750 total annual depreciation 27,700 29,350 (4) PROFIT AND LOSS FORECAST Year 0 1 2 Revenue 0 96,300 104,265 Cost of sales 0 88,800 93,240 Gross profit 0 7,500 11,025 Gross Margin 90,812 95,888 Expenses/overheads Monthly Rent 10,500 10,500 Staff Remuneration 35,000 36,750 Marketing Fees 1,036 1,088 Exercise Equipment 4,501 4,726 Flooring 4,810 5,051 Interest on loan 10% 2,220 2,220 Cleaning Supplies 1,221 1,850 Office Equipment 925 971 Gym Supplies 1,665 2,450 Other Gym Supplies 1,221 2,125 Lease payments 5,920 6,216 Market survey 1,462 1,535 Preliminary Expenses 888 932 Profit before tax 6,612 10,093 Tax @ 17% 1,124 1,716 Profit after tax 5,488 8,377 Transfer to reserves 6,612 10,093 Breakeven Analysis Breakeven Sales Value = average fixed cost/% contribution Contribution % 50% Revenue Contribution Fixed Cost Profit 96300 48150 364.08 47785.92 104265 52132.5 364.08 51768.42 910.2 455.1 364.08 91.02 1092.24 546.12 364.08 182.04 Balance Sheet Assets FY-1 FY-2 Current Assets Cash $ 181,609.04 $ 225,166.74 Accounts receivable $ 96,300.00 $ 104,265.00 Total current assets $ 277,909.04 $ 329,431.74 Fixed (Long-Term) Assets Gym Equipments $ 27,000.00 $ 36,000.00 Land Building $ 125,000.00 $ 128,750.00 (Less accumulated depreciation) $ 27,700.00 $ 29,350.00 Intangible assets $ 50,700.00 Total fixed assets $ 175,000.00 $ 135,400.00 Total Assets $ 452,909.04 $ 464,831.74 Liabilities and Owner's Equity Current Liabilities Accounts payable $ 24,000.00 $ 25,000.00 Accrued Rent $ 10,500.00 $ 10,500.00 Bank Charges Payable $ 3,000.00 $ 3,000.00 Short-term loans $ 10,000.00 $ 10,000.00 Income taxes payable $ 1,124.04 $ 1,715.74 Accrued salaries and wages $ 35,000.00 $ 36,750.00 General Expenses $ 1,665.00 $ 2,450.00 Lease Payment $ 5,920.00 $ 6,216.00 Current portion of long-term debt $ 150,000.00 $ 140,000.00 Total current liabilities $ 241,209.04 $ 235,631.74 Long-Term Liabilities Long-term debt $ 22,200.00 $ 90,000.00 Less: Loan Repayment $ 15,000.00 Deferred income tax $ 189,500.00 $ 154,200.00 Total long-term liabilities $ 211,700.00 $ 229,200.00 Total Liabilities $ 452,909.04 $ 464,831.74 Owner's Equity Owner's investment $ 100,000.00 $ 103,000.00 Net Profits $ 5,487.96 $ 8,376.86 Reserve and Surplus $ 6,612.00 $ 10,092.60 Total owner's equity $ 112,099.96 $ 121,469.46 Total Liabilities and Owner's Equity $ 565,009.00 $ 586,301.20 Common Financial Ratios FY-1 FY-2 Net Profit Ratio (Net Profit/Sales) 6% 8% Debt Ratio (Total Liabilities / Total Assets) 1.00 1.00 Current Ratio (Current Assets / Current Liabilities) 1.15 1.40 Debt-to-Equity Ratio (Total Liabilities / Owner's Equity) 4.04 3.83 Sales Forecast Particulars January February March April May June July August September October November December Total Units Sold Sales 30000 40000 35000 30000 35000 45000 35000 50000 40000 45000 50000 45000 480000 96300 Cost of Goods sold 25000 30000 25000 25000 25000 25000 30000 30000 25000 35000 35000 20000 330000 88800 Gross Profit 5000 10000 10000 5000 10000 20000 5000 20000 15000 10000 15000 25000 150000 7500 Particulars January February March April May June July August September October November December Total Units Sold Sales 30000 45000 35000 35000 45000 40000 30000 40000 40000 60000 75000 45000 520000 104265 Cost of Goods sold 25000 35000 30000 25000 35000 30000 25000 25000 25000 50000 35000 35000 375000 93240 Gross Profit 5000 10000 5000 10000 10000 10000 5000 15000 15000 10000 40000 10000 145000 11025 References Abecassis?Moedas, C., Ben Mahmoud?Jouini, S., Dell'Era, C., Manceau, D., Verganti, R. 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