Development of New University Sports facility

1.0 Introduction

Before the day, the sport is no more joining by the students because they put most of the effort to their class study, and the sport facilities only was important to the minority of applicants who hoped to play in university teams. Although the sport not making interest for student to join at pass time, but nowaday, that has changed, many student was take part in regular physical activity since the benefit of healthy was attach important now.

So a University was require the University sports executive in relation to their project for developing a new University Sports facility. The executive is impressed with most of the work that has been done but has concerns about the viability of the project. It has a problem that these students who study in University may use other facilities nearer their home rather than join the new University facility, because more of them live at home than University hostel. This problem may make University bear a high expensive because of lack of member going join their new sport facibility, so they need to investigate a potential secondary segment of clients for the sports facility other than the full-time students for incerease their revenue to recover the high expensive.

For this goal, the University sport executive need to make a reseach or report of detail and justification of secondary segment, the specific macro environmental issues in the market which will bring the opportunities or threats. Beside that, the promotion and offering of the new University Sports facility is need to plan for attract the new member from outside of the University and also giving a reasonable price to new member for this new University Sports facility .

2.0 Content

2.1 Detail and justification of the secondary segment

Since the University worry about there may lack of their student to joining their new University sport facilities, so they wish can aim to the second segment to rises thier revenue for it.The second segment is target to the ppl who are age 38-56 years old, adult.This is target to the person who are on the way to retire or already retired. This kind of people are very take care for thier healthy at life after their retire and the following life, and since they were reaching a high salary with working many year for their company.So, they willing to pay for the product or service that can improve their healthy. The new University sport facilities can satisfying their need and provide the profesional coach to train thier strenght and health by teach them using the new sport facilities to exercise.

2.2 Macro environmetal Issue

“The company and all of the pther actors operate in a larger macroenvironment of forces that shape opportynities and pose threats to the company.(Kotler,Armstrong 2004)” The macroenvironment include demographic environment, economic environment, natural environment, technological environment, political environment, and cultural environment.

Demography refers to the study of the human populations in terms of size, age, race, occupation, density, location, and density. It is very important to undestand the demographic environment because it is very helpful in deivide the human populations into the market segment and how they going target into which market. For example, according to the born of the years,we can saw there have 3 generations before this, such as baby boomers, who are born between 1946 and 1964, generation X, who are born between 1965 and 1976, and generation Y, who are born between 1977 and 1994. The generation of the baby boomers are the larger number of this 3 generation. So if the marketing segmatation can include this generation and that may bring a high revenue for the market because they are become mature nowaday and getting a stable job and may reaching they higher income earning in this many year they work before. They would like to spend and making purchases when thier income is getting high than other new generation. According to all of this, they also treat their healthy very important because of the larger age and willing to pay for their health care, so if the new Universitiy sport facibilities can segment to this generation and it will bring a opportunities for the University.

Economic environment refer what is the way that make the potential consumer would like to make purchases and willing to pay for the products or services. “Change in major economic variables such as income, cost of living, interest rates , and savings and borrowing patterns have a large impact on the marketplace.(Kotler,Armstrong 2004)” For example, if the personal income of every worker is rising then their purchasing power will increasing and would like to make payment for the products and services, it is provide opportunities to market. In other hand, if the economic fall down and getting bad,such as increasing of the unemployment rates, then the money will be hold by the consumer to survive and reduce the purchasing power.

Natural environment is about the natural resources that a company uses as inputs and the possible of their marketing activities may cause pollution to the natural or no. Threat for this enviroment will bring to the firm or company when their marketing activities are increasing the pollution, cause the shortages of raw materials seriously and increasing governmental intervention because of the complaint from the public sector. All of this will affect the company’s reputation and make it hard to getting their goal or mission because the intervention of the government to their business activities.

The technological environment is one of the fastest changing factors in the macroenvironment and no one can ignore this. That is very important to understand the changes of technological “because competitors will exploit it sooner or later, with implications for your product and its market. (Brassington, Stephen)” Technological advance in a company can help and give opportunity for them to create the new markets and new uses for products and maximum their profit in market. Another advantages that getting technological in advance are can negotiating the right of the skill or technological right and development of the marketable product with successful from it before the competition.

The political environment is strongly affect the marketing decisins and it include the laws and regulation set by the government that limit the business action in social. That is very important for the company to be aware of these restrictions in this market.It always cause the threat for the company since the law and regulation often limit thier activities and they need to making decision for a long time period to fulfill in the right situation.

2.3 Outline of the new university sport facilities’s offer

The benefits that the new university sport facilities going to offer to the member can attract the interest of the people to join whether the main objective of it is improvement of healthy. The offer provided just is a activity that influece and increase the motivation of them to join the new universitiy sport facilities. Here are the offers that provide to the new members:

  • Bonus for introduce of new member
  • Lastest model of sport facilities provided
  • Free professional coach teaching
  • Security
  • Free safety insurance
  • Free try for a day
  • Discout of member fees

2.4 Pricing strategy

In this new University sport facilities, the amount of the fees to the new member is very important because it may decide how many people willing to join depend to the price. The pricing strategy that use must satisfying the consumer need and enable to pay from every one. The market-penetration pricing can using for it and it is setting a low price with provide high quality of the product and service. It bring advantages to attract larger amount of the consumer to join and also gain larger market share. The lower price setting also can bring the opportunity to consumer to choose the new Universities sport facilities as their first choice. In other hand, it also will have the threat that seeting the lower price.Some of the consumer will treat the lower price will just provide the low quality product or service and they may no willing take risk to try, so in this case, it is need to making communication with them for provide the clearly information from the promotion.

Bill Carlson

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