16th

Marketing Plan Celebrity Fitness (Tatsujin Dojo)

Muhammad Izzat bin Abd. Razak (1660**)

Latifah bin Husaini (1660**)

Abidah Binti Hj Mohd Rafee (1660**)

Amirah Atiqah binti Adrein (1660**)

QSA 0274 Introduction to Business

QSA 0294 Business Studies

Madam Unnaisha Naina Mohamed

Semester 3, 2016/2017

IIUM Crescent

International Islamic University Malaysia

4^th March 2017

1. Introduction

1.1       Name: Celebrity Fitness

Address: Entertainment Malaysia SDN BHD Celebrity Fitness Malaysia

LG3.01 Sunway Pyramid, No. 3 Jln PJS 11/5, Bandar Sunway, 46150

Petaling Jaya, Selangor (Celebrity Fitness, 2017)

Website: http://www.celebrityfitness.com/my/

Phone: 60-3-7718-8000

1.2                        Celebrity Fitness is a private limited company owned by John Franklin, Mike Anderson and John J. Sweeney (J.J) where an owner’s liability is bounded to their shares, the number of shareholders are limited to 50, and restricts shareholders from trading shares publicly. (Study.com , 2017)

1.3                        Celebrity Fitness is currently one of Asia's largest health and fitness club operators, by number of clubs and members. Celebrity Fitness currently has 27 clubs in 3 different countries, and operates 3 different gym brands: Celebrity Fitness, Celebrity Fitness Express, and Celebrity Fitness VIP. Every Celebrity Fitness club offers tailored personal training, yoga, and aerobic fitness programs for its members. It was found in 2003 by John Franklin, Mike Anderson and John J. Sweeney (J.J) in Jakarta, Indonesia. The commencement of the operations started in February 2004 in EX Club in Jakarta Indonesia followed by an opening of the second club that operated in August 2004 in Surabaya, Indonesia. In 2005, Celebrity Fitness opened their first club in Kuala Lumpur in 1 Utama, Kuala Lumpur. Later, the majority shareholding of Celebrity Fitness was acquired by Navis Capital Partners in 2007. Celebrity Fitness also entered the Singaporean market in 2012 with its first club. Celebrity Fitness then became one of the biggest fitness chain of Malaysia in 2014. In the following year, Celebrity Fitness has successfully doubled the numbers of clubs in Singapore. By 2016, the company has over 62 clubs in 3 countries and is planning on cooperating with Fitness First Asia to create one of the largest fitness club networks in Asia called “Evolution Wellness”.

1.4                        Tatsujin Dojo is a program created by Celebrity Fitness to allow our customers to spice things up while burning fat, build strength and agility by learning the most exciting MMA and self-defense techniques. It is a great workout that stimulates the mind and the body. (Celebrity Fitness, 2017)

1.5                        One of the main problems that is in need to resolve in society is obesity, as Malaysia is now the fattest country in South-East Asia with its obesity rate on the rise (aisaone health, 2017). As said by the Health Minister "This is not a glorious title. We are outweighing our ASEAN neighbors and number six in the whole of Asia - behind some Middle Eastern countries". (aisaone health, 2017) Statistics cited from the National Health and Morbidity Surveys, Liow said 15.1 per cent of Malaysians aged 18 and above were suffering from obesity as of 2011. (aisaone health, 2017) To curb this issue, Tatsujin Dojo program is created as a way for society to not only become healthier but also have fun as learning the art of self-defense is also a way to reduce stress. Due to economic issues in Malaysia, the rise in unemployment rate following by the increase of crime rates are inevitable. Celebrity Fitness gives job opportunities in the fitness sector meaning individuals with amazing fitness skills and great communication skills has a high chance of getting employed, making way for people who are passionate for fitness the chance to turn their passion into a living. The Tatsujin Dojo program created could also help the society develop self-defense skills that will come in handy when protecting oneself in unsafe environments. For this program, we provide high quality equipment and a comfortable environment to have the one on one session in. The quality of the service is also highly assured as we take only the experienced Tatsujin Dojo trainers with personal organized plan that suits the body of the individual that will help lose unnecessary weight in order to get healthy.

2. Executive Summary

An early employee of 24 Hour Fitness in California, John Franklin and a fitness business veteran, founded Celebrity Fitness in Jakarta in 2003 with a group of experienced fitness industry executives, and started operations in February 2004 with the opening of Jakarta's revolutionary EX club. The Celebrity Fitness name was chosen for a reason: to convey that each member can exercise as if they are a celebrity. Hollywood and Beverly Hills' standards were in mind when it comes to the design of the club, to pamper and give first quality service to our members. Staying true to the entertainment atmosphere, Celebrity Fitness' venues are exclusive malls so that members can conveniently shop, dine or go to the cinema after working out in the gym. Celebrity Fitness pioneered the concept of combining a fitness center and entertainment environment in Indonesia. Moreover, Celebrity Fitness tremendous contribution to the increased awareness of health and fitness in its operating markets today. Celebrity's gym experience proved hugely well-known, prompting the group to broaden its gym network in Jakarta and grow overseas (starting in 2005 with the 1 Utama club in Kuala Lumpur). As the leading regional fitness center, Celebrity Fitness constantly pushes to provide the top notch service to its members by tailoring programs and offerings for our members' satisfaction.

In December 2007, Capital Partners ("Navis") united with Celebrity Fitness. Navis provide its numerous resources to guide Celebrity Fitness as it expands its product offerings in its existing markets and abroad. Celebrity Fitness 4 Celebrity Fitness is the fastest growing fitness company in Asia with 41,000 active members in Jakarta alone. The clubs in Surabaya, Kuala Lumpur and Penang have been getting enthusiastic, forward-looking feedback from members. Celebrity Fitness enjoys its image as a trendy destination for the vigorous, urban and cosmopolitan community and will continue to go all out to provide a multitude of top notch, exciting, and entertaining work-out experiences to our members—no matter what their fitness levels are. The company's corporate headquarters are located in the downtown business district of Jakarta, Indonesia, and there is a regional corporate office in Kuala Lumpur

3. Environmental Analysis

·       Socio-cultural factors

Malaysia is a multi-cultural society. The main ethnic groups are the native Malays as well as large populations of Chinese, and Indians. The mix of population gives Malaysia rich and vibrant cultures, different religions are practiced based on their ethnicities and the various customs or lifestyle. But nowadays, the society has been obsessed and engrossed with how far technology has evolved where every information can instantly be searched, chore done by a push of a button and work executed perfectly by machines. The evolvement of technology is never to be blamed as it brings many benefits not just for the country but is widely used by our company in order to achieve the goals that we plan to achieve. The major problem causing the increase in obesity in our society is the ignorance towards health.

The problem of increasing obesity amongst adults and children in with Malaysia has been highlighted for more than a decade.  The increase in diet- related diseases during the last few decades in Malaysia has prompted the government to recognize the important role that nutrition plays in promotion of health. Overweight and obesity are associated with an increased risk of dying from Type 2 Diabetes Mellitus, Kidney Disease, Liver Disease, Cholesterol and Cardiovascular Diseases CVD) such as High Blood Pressure, Angina, Heart Attack, Congestive Heart Failure, and Stroke.

According to Ministry of Health Malaysia, good nutritional status that leads to an optimal quality of life is basic to sustainable development. As Malaysia forges ahead towards Vision 2020, it is imperative for us to consider the nutritional well- being of its population as a matter of everyday concern and practice. To reduce the problem of increasing overweight and obesity, our business provides opportunities for society to get healthier or prevent from getting obesity and could also help minimize obesity through our martial arts program or other programs that are in stall for the society’s use which are dancing, cycling, yoga and etc. This shows that for this social issue to resolve, our programs are in need by the society which shows high probability for our business to experience a boom in people using our programs.

·       Economic Forces

As for the Malaysia economy, it has turned to a manufacturing powerhouse, from cultivation of land, the end product of the latest policies which was introduced by one of the most influential leaders of Malaysia which was Tun Dr. Mahathir Bin Mohammad, the 4^th Prime Minister of Malaysia that has reformed Malaysia to an industrial giant. In the present moment, the Malaysian economy has thorough strengths and because of that has risen the Gross Domestic Product of Malaysia. At this moment of time, the economy of Malaysia has taken a big blow. Our business will benefit the economy as we can help decrease unemployment rate by providing more job opportunities in all of our branches in Malaysia. As we promote healthy lifestyle, it will help with the productivity of our employees as they are in their best shape therefore they are able to produce maximum output.

·       Competitive Forces

There are several fitness centers that provide the similar program which is the Tatsujin Dojo program by Celebrity Fitness therefore the competition between different gym centers for having the similar program is high but what sets our program apart from others leads back to our main goal which is to let our customers experience the full training sessions of our program as if they were celebrities therefor our top notch services will give us an edge that will make our customers stay for more.

4. SWOT Analysis

Strength

•        Celebrity fitness has provided with well-maintained and modern equipment. This will let the customer enjoy the finest equipment with ease and comfort during the vigorous trainings that will be done for the Tatsujin Dojo program at celebrity fitness.

•        Online presence: Each member will have access to shop, schedule and supplement provided online. All scheduling will be automated for fast and efficient communication with the members.

•        Knowledgeable and friendly staff: Celebrity fitness staff consists of professionally trained personnel that have a true passion for helping the customer and caring for the needs of its members. This becomes apparent when you look at the staff's professional background. The trainers that are hired for our Tatsujin Dojo program are talented and experienced in their field. Therefore, efficient training and teaching methods are assured.

Weakness

•        Competition from other gym centers that provide similar program

•        Celebrity Fitness high membership fees relative to traditional gyms: Celebrity Fitness services may not appeal to potential customers with a limited budget like student and fresh graduate.

•        Insufficient number of experienced trainers if the program is in high demand

Opportunity

•        Today’s reputation and reliability of this company is a great opportunity to attract clients and this trust is obtained according to the good record.

•        Keeping costs in down and giving various promotions is one of the company’s opportunity to attract new customers.

•        Also updated and new equipment and professional trainers for the Tatsujin Dojo program are opportunities for this company.

Threat

•        Nowadays according to the world economic situation and all the community groups, it should be difficult to keep costs down low as high costs of memberships is one of the potential threat to losing customers

•        As you know, now according to the many similar martial arts programs that are promoted by other gym centers, creativity and marketing strategies are crucial in order to attract customers with our program, otherwise they will easily change gym centers.

•        Unmotivated trainers due to insufficient number of trainers. The same trainers training the employees therefor training sessions may be less efficient for the customers.

5. Marketing Objectives

·       Qualitative:

1.     Local trainers trained by foreign qualified and world-renowned tatsujin dojo masters

2.     Top brand high quality well-maintained equipment (punching back, padded gloves, boxing pads, padded helmets, mouth guard, etc.)

3.     Suitable environment for training room (padded mats, complete set of first aid kit.

6. Marketing Strategies

Target market:-

Age: 15-35 years old. According to research, individual started to develop their habit since their teenage year, so we choose the average teenage year so that they will develop a good habit of exercising. In addition, martial art is a fun way to lose excess fat and to develop more muscles.

Income: Upper and middle class income earners. This will be our niche income group, since our membership package is expensive due to a high service quality. Most of the time since the upper and middle class income earner just sit on their chair to perform their work, they will gain weight easily. To add, people envy their position and might do something bad to them, so they need to learn to protect themselves in case of the worst situation.

Occupation: Any occupation. So they will be more productive in doing their work.

Gender: Male and female. Nowadays not only males are working, the females are working at the top position too. So we do not discriminate gender in our program.

People who are obese. This is one of our contribution to achieve the government’s aim, which is to decrease the number of obese people in Malaysia.

Market segments:-

Psychological: people who want a healthy life style, has goals to lose weight, strong willed to improve oneself and believe that fitness is important to health

Behavioral: inelastic price elasticity of demand. Since our membership package is expensive due to high quality of service, we don’t want our customer’s demand to decrease.

Service: Tatsujin Dojo (Mixed Martial arts)

Price: According the type of membership (applies to all type membership)

Physical distribution/ marketing channel: participant will be learning the martial art skill from the disciples of Tatsujin martial art. This marketing channel is called “Producer to Customer”. This method ensure that the quality of the lesson will remain and worth paying more for

• Promotion:

PLATINUM (50 people only*)	GOLD	SILVER
Excess to all clubs	Excess to 10 clubs only	Excess to one club only
Renew every 1 year (RM1500)	Renew every 6 month (RM900)	Renew every 1 month (RM200)
1 energy bar and 1 energy drink (per session)	1 energy bar and 1 energy drink (per session)	1 energy bar and 1 energy drink (per session)
Free 6  ft  and 12” locker	36” high 12” depth locker (first come first serve locker)	Token locker ( 5RM ) per session
Free clean towels (per entry), toiletries (per entry) and gym bag (once)	Free Gym bag (once)  and towel (per entry)	Free Gym bag (once)

• Registered in month of January will be given 25% off.

7. Marketing Implementation

[TABLE]

8. Contribution to the Muslim’s World

Our fitness centre contribute important roles to the Muslim’s world. Along with this hadith;

“Abu Huraira reported Prophet Muhammad (ﷺ) as saying: A strong believer is better and is more lovable to Allah than a weak believer, and there is good in everyone, (but) cherish that which gives you benefit (in the Hereafter) and seek help from Allah and do not lose heart, and if anything (in the form of trouble) comes to you, don't say: If I had not done that, it would not have happened so and so, but say: Allah did that what He had ordained to do and your" if" opens the (gate) for the Satan.”

This hadith explained that the strong believer is able to achieve more for the sake of Allah. As believers in Islam, we must take care of our spiritual, emotional and physical health. Our bodies are given to us by God as a trust. They should not be abused or neglected but maintained in good order.

            Fulfilling the obligations of the second pillar of Islam requires that Muslim to pray is also a form of health and fitness. Just like our fitness centre, we encourages anything that promotes refreshing the mind or revitalizing the body provided as long as it does not lead to or involve sin, cause harm, or hamper or delay religious obligations.

            Moreover, our martial art clubs help our participants gain many benefits, including equilibrium, muscular strength, stamina, cardiovascular maintenance, hormonal balance, improved kinesthesis and their senses become more receptive.

              When Muslims’ body is healthy and fit, they are better equipped to apply greater focus in prayer. In this context, one’s pursuit of fitness is not driven by a desire to feed one’s vanity and ego by attaining a toned figure or buff muscles, but rather to strengthen one’s body to be better able to practice faith.

References

aisaone health. (2017). Retrieved from asiaone helath: http://health.asiaone.com/health/health-news/malaysia-now-fattest-country-se-asia-health-minister

Celebrity Fitness. (2017). Retrieved from Celebrity Fitness: http://www.celebrityfitness.com/my/

Study.com . (2017). Retrieved from Study.com: http://study.com/academy/lesson/what-is-a-private-limited-company-definition-advantages-disadvantages.html