Economic factors economic factors refer to interest

This preview shows page 13 - 15 out of 20 pages.

Economic factors: Economic factors refer to interest rates, taxes, exchange rates and growth in the economy. All these strongly influence the marketing strategies of Virgin Active. Various production systems are linked to international trade and the collapse of one may result in the poor performance of other economic factors. Environmental factors: Marketing environment bases its customer’s distribution strategies on micro- and macro-environmental forces. Virgin Active keep up to date on good environmental practices through introducing recycling of training machines, use of environmentally friendly machines and through employing greener living schemes. SWOT Analysis STRENGTHS Virgin Active is focussed on the fit- ness of customers; I observed that 60 % of revenue comes from gym floor activi- ties It has excellent schemes that are af- fordable and sustainable. This encourages customers I realised that branches have differ- WEAKNESSES There is strong competition on price between the various health clubs within an area and tough competition from other services providers Virgin Active services are untapped, thus losing most of the revenue to other participants Virgin Active depend on the brand 13 VC004 College of Sports & Fitness_BSBMKG609 _Assignment – 26/11/2019 International College of Capoeira Pty Ltd trading as ’College of Sports & Fitness’ ABN 90 125 114 730/ Registered Training Organisation 91345/ CRICOS Provider Code 03057C
ent pricing strategies according to geo- demographics; this contributes to healthy relationships within the branches Customer care services are excellent; 96% of their members are satisfied Virgin Active has both internationally and nationally certified trainers Virgin Active has special annual offers for members name too much Increased fees OPPORTUNITIES The current market can offer the lat- est technology at low cost with the in- troduction of new health equipment and affordable facilities Being a late entrant into the market, has modern features and the dual ad- vantage of the latest infrastructure The Australian market has a huge market for Virgin Active gym and spa services; the market is rapidly expanding and there is the opportunity to get a large share of the market segment There are opportunities for exposure and expansion THREATS I noticed that there are developing health services in the Australian mar- ket; other clubs are offering attractive packages and the various announce- ments of these and the reductions that they offer attract members’ atten- tion. There is the possibility of high cus- tomer turnover where various mem- bers sign up and leave the club Competitors According to the research made, the following are Virgin Active current competitors: Ian Thorpe Aquatic Centre (): local swim and survive program, competitive squad programs, local swim clubs, aquatic birthday parties and school swimming carnivals; personal training, group fitness and small group training; Anytime fitness (): provides the client fitness fix 24 hours a day, 7 days a week, in any club in Australia and around the world; 14 VC004 College of Sports & Fitness_BSBMKG609

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture