Commerce 2211 - Marketing Management
Case Analysis Executive Summary Template
Case name: Aradia Fitness London
Student name: Zhanshuo Ma
Problem Statement/Issue(s) Identification:
Andrea Tierney opened Aradia fitness London (AFL) in London, Ontario, in 2005. The majority in come of the fitness club is to offering poles dancing class to local London. Tierney wants to lunch a new exercise program TRX which could help decrease attrition rates, and support poles dancing program at the same time. Tierney have a make decision in a very short period of time, which include an appropriate price point and promotion strategy to ensure success of the TRX program. Tiernry’s ultimate goal is to offer both classes as complement to one another.…show more content…
Good life does offer six-week TXR program but with $199, which the price I recommend is lower and more attractive for local consumers. Just sweet offers a eight-week program with $360, which is the most expensive one in London. The total cost for TXR program only is $2016 (12*158+120) including HST. Cost will be covered if there are 16 students register for TXR program (16*129.99=2079.87). The life time usage of TXR equipment is unknown, which I assume that it could be 2 years.
According to previously analysis, set the price at $129.99 for 6-week program and $19 for teaser class is acceptable and profitable.
Secondly, the choice of advertising. The potential consumers could be roughly grouped as current dancing students, university students, and local residences. Current students and university students are already discussed before, by offering ‘lower price’. The local residences would be promoted though following advertisement strategy: Newstalk as local radio spots; The London Free Press and London Community News as print advertising; yellow pages listing; and Facebook advertisements. AFL is based in London and provide service to local consumers. In this case, national advertising (BX 93 Radio and Virgin Radio) should not be considered. Owner has limited budget and direct mail flyers has limited advertise range which is not befitting for new lunched product. So, direct mail flyers should not be used as well.
To conclusion, though providing lower