This Report covers the process of JustRelax plc, which is a health and fitness club chain in the United Kingdom, investing in a foreign country by building a new Club.
First, one country out of four will be chosen as most suitable market to invest in. The candidates are Thailand, Singapore, Hong Kong and Australia. After evaluation over several factors for each country, the most attractive will be analysed with a PEST analysis. Then the Australian fitness industry will be analysed in order to know JustRelax’s competitive environment.
Afterwards different possible market entry Strategies will be analysed. Next a target market will be chosen ad JustRelax will be positioned in its environment.
Subsequently, the marketing mis adapted to this situation will be created in order to maximise the chances of high profit in this new market and make the most of this opportunity.
JustRelax Plc is a company providing high standard health and leisure services in the United kingdom. We offer our clients the following facilities: a gym and fitness area, a swimming pool, squash courts, tennis courts, a health ; beauty centre as well as a restaurant. Our clients are typically middle-high to high income workers over the age of 30 and the business’s main sources of income come from joining fees and monthly subscriptions.
Our two main competitors in the United Kingdom are:
* Holmes Place which provide a wide variety of classes, equipment and facilities. They have over 230,000 members, boasting 40 health clubs across the United Kingdom and a further 15 abroad.
* Esporta which is slightly smaller with over 200,000 members and 17 newly opened clubs over the last year, bringing their total number of Health and fitness clubs to 58.
They both have luxurious facilities and offer high quality services.
This report was limited by the compulsory time limit, by the lack of information on the fitness industry in Australia, by the statistics that are out of date on the Australian demography.
This report cover the selection of a specific market between four countries in order to open a heath and fitness club, the different market entry strategies for this market and the marketing plan for the project.
In order to make this report it was assumed that the data given were accurate.
In this report, JustRelax is opening a new club in Sydney but then we assume that we will expand into parts of Australia.
It is assumed that the JustRelax Plc has sufficient funds to cover all the strategies planned in the following report.
This report assume than the Data gathered have stayed “static” up to today.
The advantages for just Relax to expand its business in Australia are its historical links, common language, similar business and legal practices and similar technical standards. The advantages of a common basis for commercial law, similar business culture, substantial goodwill and warmth towards the UK, and the presence of many UK companies already established in the market, makes Australia easily accessible for business wishing to expand in Australia. (www.trade.uktradeinvest.gov.uk)
The chart shows also that economically Australia is the most suitable market for our purpose.
Opportunities to enter the Australian market
Threats to enter the Australian market
* Easy access in the country.
* Fitness industry in development in Australia
* Financial help from the government and the fitness association.
* Similar culture, laws, part of the commonwealth.
* Easy to get a work permit for British.
* Not member of the EU –> import taxes and restrictions.
* High number of good value and low price substitutes i.e. community sports clubs
* Technology becoming cheaper –> making home training more affordable
* Competitors have already moved abroad so they have the experience and the knowledge
Facts about Australia
Australia is the 6th largest country in the world. Its land size is almost 3 million square miles. Its population of over 20 million reside mainly on the eastern and south-eastern seaboard, with approximately 8 million in the two largest cities, Sydney and Melbourne.
It is politically stable, English speaking and one of the world’s most multi-cultural societies, with around 220 nationalities. Today’s urban population is extremely cosmopolitan, consisting largely of people of European ancestry, mainly from the United Kingdom, Ireland, Italy, Greece and the countries of Eastern Europe. The proportion of south-east Asians is increasing. .
It is a land of physical extremes, ranging from lush forests and rainforests of the east coast to the snow-capped Snowy Mountains, and arid deserts of the interior and far west. It is rich in minerals, particularly diamonds, gold, bauxite and iron ore.
Australians enjoy a lifestyle with leisure activities that include dozens of sports, water-based activities, mountain-related activities and many forms of passive recreation. The food industry is Australia’s largest manufacturer, generating more than $40 billion a year.
Australia is a favoured tourist destination. For the year ending December 2003, it is estimated that 4.74 million tourists visited the country.
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