Barriers to Healthy Habits | My Assignment Tutor

GAME-A-CISE Report on ‘Game-A-Cise’ The combination of a game and an exercise Table of Contents Table of Figures and Tables………………………………………………………………..3 Executive Summary………………………………………………………………………….4 Introduction……………………………………………………………………………………5 Methodology………………………………………………………………………………….5 Product……………………………………………………………………………………6Concept and justification……………………………………………………………6Brand name…………………………………………………………………………11Target market………………………………………………………………………12Promotion………………………………………………………………………………..13Mood Board………………..……………………………………………………….14Promotional Campaign ……………………………………………………………15Distribution and Pricing…………………………………………………………………18Distribution…………………………………………………………………….……18Pricing……………………………………………………………………….………21Conclusion ………………………………………………………………………………24References………………………………………………………………………………25 Table of Figures and Tables Figure 1: Barriers to Healthy Habits…..………..………………………….………………7 Figure 2: Diagnosis of obesity in England…………………………………………………7 Figure 3: Frequency of video game activity, June 2018…………………………………8 Figure 4: Social Gaming, June 2018…………..…………………………………………..9 Figure 5: Forecast of private health and fitness club user numbers, 2013-23……….10 Figure 6: A process of choosing a target market………………….…………………….12 Figure 7: Intensity of promotional channels during the year……………………………17 Figure 8: Table of our main competitors for the gym equipment industry…..……..…19 Figure 9: Top 10 fitness markets in Europe …….……………………………….………22 Figure 10: Secondary and Tertiary competitors and the average prices…………..…22 Executive Summary This report aims to investigate a place in the market environment to launch an innovative product which is a compound of a training mat with laser-sensing body movements and a game player. Analysis were based on variety of academic and industrial sources such as Mintel, academic journals, articles and textbooks. The report finds that there are favourable circumstances to set up a product connected to two sectors of market industry. Collected data indicate demand for a device which will encourage and motivate society to regular exercises. An idea is supported both by analysis of main problems such as barriers to healthy habits, an increase in level of obesity in recent years in UK and by data about popularity of gaming and upward trend on going to the gyms. The brand name was established by combination of two main words which represent an idea of the product: ‘game’ and ‘exercise’; that was formed ‘Game-A-Cise’. The target market was chosen in three step process and defined as high end gyms and luxury hotels with a gym equipment. The report then investigates the relevant channels of promotion, showing how using influencers, with the increasing amount of people on social media, can be the most effective way to promote a new product, especially as people often follow people online with attributes that they aspire to. The use of public demonstrations, giving the customer a chance to use the product is also explored, showing how free trials are a great way to get a customer hooked. Additionally, it talks about the effectiveness of a good slogan and how to grab people’s attention with a snappy ‘catch line’. The report is finalized by introduction of a distribution channel used for ‘Game-A-Cise’ which is direct business to business because we would like to offer good timing and technical assistance as our differential advantage. This will help us dominate the consumer, charge premium prices and generate high profit margins. In addition, our distribution intensity would be selective because of the number of items available and our target market. Finally, when setting our price, we went for marketing orientated approach because it fits our product the best. Taking into account the competition, company costs such as distribution, raw materials and promotion. Moreover, owing to the fact that our product is new to the market a rapid skimming strategy will be used to launch it. The report then gives a detailed list of references, both from academic and industrial sources, written in the Harvard referencing format. Introduction This report will analyse two broad industrial markets which are the health and wellbeing industry and game industry. It will show favourable circumstances to enter the market environment and to launch our innovative product. We aim to motivate people to keep their regular exercise and have fun at the same time. This report will justify our decisions from a concept of a product through promotional campaign to pricing and distribution strategies. Methodology Analysis used in this report are from variety of academic and industrial sources such as Mintel, academic journals, articles and textbooks. We did the broad market research to be aware of all strategies and possibilities to enter the market environment in the most beneficial way and to be better than competition. ProductConcept and justification We decided to combine two sectors from rapidly growing markets, which are the health and wellbeing industry and game industry. It means that our product is a compound of healthy lifestyle with digital game interaction. It is a combination of a training mat with laser-sensing body movements connected to a game player with wireless technologies. It will satisfy and motivate users to regular exercises. From technical point of view, the Laser Technology (LTI) is used in many fields and has a broad history (Interesting Engineering, 2018). Therefore, combining it to a training mat will not be a problem. Additionally, all laser sensors from LTI are harmless to the body and do not affect the health. They are easily configurable allowing the user to adopt to own needs (Laser Technology, 2018). First reason for launching this product is a problem in maintaining healthy habits. We chose to launch an innovative product which will encourage people to take care of their physical condition and keep their motivation. According to Mintel (2018), people struggle the most with a lack of motivation to keep their habits. As the same research shown, the other barrier is a high price, and we also have a solution for that. Our device will be available at the gyms. Therefore, many people will have access to it. Another barrier is a boredom but with our device we are able to change it. No more continuous running on treadmills or tedious exercises. Therefore, our unique and irreplaceable device will have a beneficial influence to overcome your limitations through a constant motivation and a self-satisfaction. Second reason for launching our product is an increase in obesity in recent years due to sedentary lifestyle and lack of exercises (NHS Digital, 2018). We are aiming to reduce those statistics and to minimize the problem of obesity. The problem takes its toll on us for generations, along with technology development we have much lower normal levels of movement than in the past (The Guardian, 2019). People will perceive our product as useful to society which is something consumers like (Adweek, 2018). It means the product serves as a greater good for consumers. They want brands to do good for society, even at the United Nation General Assembly were launched a new Good Life Goals which contribute to sustainable lifestyles (Forbes, 2018). One of them is to stay well and our product will help to achieve this goal. The table below shows a diagnosis of obesity in England: Third reason for launching this product as a combination of a training mat with a game player is a frequency of playing games. This is important because the second part of our product is a game player. According to Mintel (2018b), different type of video games and consoles are used very frequent and more than 50% of society are using them. Another statistic (Mintel, 2018b), shows tendency to play games alone, our product will encourage them to compare their results with others. It will help to maintain their motivation to exercises (APA, 2018). Everyone who both like gaming and exercising will be satisfied with our product. The researches on the nature and effects of motivation (APA, 2018) show that introduction of competition can help maintain people’s habits and seeing own results will keep up their motivation. For instance, studies of the gamification show its positive influence of keeping healthy habits (Hamari and Koivisto, 2015). Moreover, lately the behavioural science has become more popular and it can be used as a powerful tool to influence behaviours in health (Vlaev, King, Dolan and Darzi, 2016). Additionally, there is a huge part of the science behind motivation. It is a crucial component to be successful in a life. Everything starts in our head and then we need to take action to achieve the designated goal. After that our actions transform into our routine and for that our product will help to keep in the regular exercises (Forbes, 2015). Fourth reason for launching our product is a favourable forecast in order to increase the amount of people who are using a gym (Mintel, 2018c). Those statistics are beneficial for us because gyms and their users are our target markets. The users of our product are important for us, therefore, to meet their expectations and to add more customer value we analysed three levels of our product (Kotler, P. et al., 2017). The basic one is to define problem solving benefits of the product. Therefore, the core value of our product is the ability to keep fit, exercise and be a game hero at the same time. The second level is the actual product: the brand name is the ‘Game-A-Cise’, available mainly at high end gyms (and our future plan is to introduce our product to individuals), comfortable training mat with harmless lasers connected to a game player that provide the desired benefits. The most extended level is the augmented product. The attributes of our product are easy to use, comparison of the results, choosing between various games, ongoing motivation, challenging yourself, changing your habits and improving your life, desire to achieve more and be fulfilled. These benefits will help in further differentiate in the competitive market to stay on it for a long time and to be perceived as providing more beneficial product than the competition (Jobber and Ellis-Chadwick, 2016). Brand name It is crucial to have a good brand name because it is a key driver of brand equity and an important factor in consumer perception of a product (Zhang, 2015). Our product name is ‘Game-A-Cise’. We chose a strategy of an individual brand name because our product is unique and needs an outstanding name. Additionally, the positive associations connected to it are more important than the visibility of our names. We have come to the conclusion that this name best reflects the purpose of the product – exercises while being a game player. According to Jobber and Ellis-Chadwick (2016), a good brand name should meet certain criteria. First of all, our name is easy to pronounce and remember. It will make our customer will never forget it because the name is easy to associate. Secondly, the name ‘Game-A-Cise’ suggests product benefits, it indicates making exercises through playing a game at the same time. Also, it shows cooperation of two industrial sectors which are video games and wellbeing. Thirdly, the name is unique and characteristic only for that product. Another crucial thing is that it does not infringe an existing registered brand name therefore we can register it legally. And for us the most relevant about our product name is that our customers should have positive associations while saying and thinking about the product. And they will have because our product is about keeping fit and having fun. The strong brand image needs to have favourable and unique associations to the brand in the customers memory because the more intensely a person thinks about product information and combine it to current brand knowledge, the stronger the brand associations will be (Keller, 2008). We want to achieve following image of our product: being able to keep fit and having fun through playing a game in the gym or as an individual at home. For instance, people will become the heroes of their favourite games, they will track their results and undertake new challenges. These things will help them with regular exercising and because of that they will uphold our image. Target market We chose our target market in a three-step process (Jobber and Ellis-Chadwick, 2016). Firstly, we have done a market research to understand the requirements and characteristic of the individuals and organizations. Secondly, we have divided market into segments. Thirdly, we have chosen our market segments target. Through macro segmentation we chose large organizations from fitness industry, located in the United Kingdom. Our first-choice target markets are high end gyms and luxury hotels with a gym equipment. We are targeting those with many locations, recognized by society and with possibilities to afford our innovative product. Mainly we will focus to encourage them to use and promote the product to their clients. We will persuade them to purchase our product because it will increase their revenue from final consumers. Also, it will attract new ones due to uniqueness and satisfaction of our product. Later, we will also focus on individual customers. Both people with barriers to maintain healthy habits such as lack of motivation, boredom, high price (shown in more detail in the Figure 1) and the regular gym users (shown in more detail in the Figure 5) are our further target market. Those people both will gain motivation as well as satisfaction and they will bring us future profits. To achieve and attract our further target market we will need to adjust our marketing strategy from business-to-business (B2B) to business-to-consumer (B2C). Promotion 2.1 Mood Board For our mood board we decided to use a variety of pictures that portray in one way or another the notion of someone living a healthy lifestyle and trying to better themselves. We also decided to use a theme of pictures with a bright colour scheme with lots of light to further portray that being healthier will open your eyes to a brighter existence. “Orange & Yellow – Cheerful colours that promote optimism. Yellow can make babies cry, while orange can trigger a sense of caution. Used to create a sense of anxiety that can draw in impulsive buyers and window shoppers” (Small Business Trends, 2018). “White – Associated with feelings of purity, cleanliness and safety. Can be used to project an absence of colour or neutrality. White space helps spark creativity since it can be perceived as an unaltered, clean state” (Small Business Trends, 2018). The purpose of our product is to make people have fun while they are getting healthier so that in a way it doesn’t feel like they’re exercising. Furthermore, there are pictures of a gamepad and a person using VR to show the gaming aspect our product. The picture of the two people running represents competition and working on getting fit with someone else, which our product also represents as you can compete with friends and work together to achieve your fitness goals. “Competition motivated participants to exercise overwhelmingly more than social support. In fact, attendance rates were 90% higher in the competition-motivated group and the combined group, compared with the other two groups that had no competition” (Medical News Today, 2016). The man standing with the VR headset in the tennis court represents playing games while doing exercise which is the main idea of our product. This shows that you can play sports and get fit whilst also having a video game feel, meaning you will not suffer from tedium which is one of the main aspects of exercise. In Sport the acronym ‘SPORT’ is used to show five main points of how to train properly, these stand for Specificity, Progression, Overload, Reversibility and Tedium. Our product makes sure you do not suffer from Tedium and that you have specific goals to progress as a person and be happier within yourself as a healthier, fitter human being. 2.2 Promotional Campaign ‘Game-A-Cise’ will be introduced to the market through collaborating with UK’s gyms and fitness centres using business to business (B2B) marketing strategy. According to the research, the fitness industry in Europe has grown in recent years and will continue to grow in the future (MarketLine, 2017). Therefore, we have a chance to become the market leader (Pleshko and Heiens, 2012) with our new innovative product. Public relations will be the main source of communication between us and the consumers (Forbes, 2018b). We will use this method to inform and to encourage them to purchase our product. They will be provided with a detailed brief showcasing the use of it and the benefits of working with us. We first want to target gyms across the UK in order to slowly raise awareness about our product. It is also due to the fact that while applying the B2B strategy it is important to focus on one defined target, your core audience (Forbes, 2016). The machines will be exclusive in selected locations to start with and the number of places who offer the service will expand along with the demand for it. It is proved that ‘exclusivity’ is closely connected to ‘sacristy’ of a product which causes clients to fear on missing out on something that isn’t widely available (Forbes, 2016b) and therefore, increases the chances of them purchasing it. Once the machines are installed, we will use the power of social media and contact celebrities and fitness/healthy lifestyle influencers. They will be our mediators between gym-goers and ‘Game-A-Cise’, as it is proven that social media is one of the main sources people derive information about new upcoming products (Mintel, 2019). According to research, a small percentage of people engage with specific brands on social platforms and sponsored posts prove to be more effective (Mintel, 2018d). Influencers will obtain free access to our product and we will collaborate with them on sponsored posts on platforms such as Instagram, Facebook, Snapchat, YouTube, lifestyle blogs etc. We will provide them with a discount code/free trials for their followers. It is proven that free trials are a great sales strategy that reduces aggressive selling and increase customer satisfaction (Forbes, 2018c). We plan to eventually target individual customers who will be able to purchase our product for personal use. B2B and B2C strategies have shown to converge (Forbes, 2018c). Therefore, there will be no need for drastic transitions, they will become available to order from our website as well as in store from selected sports equipment retailers. In order to advertise ‘Game-A-Cise’ as available to purchase we will also host events in public places such as shopping centres, fitness fairs, universities etc. where again, discounts will be given as well as the opportunity to find out about the product and try it free of charge. Website will be launched in order to enable potential customers to find detailed information about its use as well as the ability to research for their local gyms in which ‘Game-A-Cise’ is available. It will also allow users to sign up for a newsletter through email. It is a good way to keep them up to date as well as use it as a reminder in case they don’t immediately decide to sign up. According to the research, a high majority of people would enjoy receiving personalised offers with discounts and other content. They are then also more likely to try the product (Mintel, 2018e). Our page will include a section of positive reviews as well as ability to send us feedback. We can then use their comments as a guide to what could we improve on in order to successfully expand our brand not just within the UK but also in other countries. Once the customer signs up for the gym which offers ‘Game-A-Cise’, they will automatically be enrolled onto our email newsletter with exclusive content such as tutorial videos on different ways to use ‘Game-A-Cise’, advice from the professionals within the fitness industry as well as updates and other benefits which will expand along with the growth of our company. We came up with a short slogan “Play your way to a fit body”, based on our research on effectivity of slogans which showed us that a clear, creative message including the purpose of a product is the most sufficient (JAPR, 2019). Our logo is a confirmation of our goal. It consists of a dumbbell and a gamepad. These two things are associated with the overall idea of what the product is, this gives the audience an image of what, and how we promise to help them achieve.                                                 Months Promotional  ChannelsJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberSocial Media/Influencers            Newsletter            Word-Of-Mouth            Free Trials             The use of social media influencers to promote our product can be expensive so we don’t want to waste our money on needless promotion. The reason we have picked these specific months, for the social media and free trials, is that it is close to summer when people want to start getting fitter for when they go on their holiday, studies show that March and even April are becoming the months with the highest gym traffic. “According to an IHRSA spokesperson, there is anecdotal evidence that other clubs are seeing their traffic spikes move into March, as well as April” (US News, 2013). January is also in there as it is statistically the time when the newest entrants come to the gym, due to factors such as people making New Year’s resolutions or trying to lose weight after eating a lot of the holiday periods. “More than 12 percent of gym members join in January, compared to an average of 8.3 percent per month for the full year, according to the International Health, Racquet, and Sportsclub Association (IHRSA)” (US News, 2013). The newsletter will be sent out to anyone and everywhere all-year round as it does not cost money to send out e-mails, also word-of-mouth has no cost attached to it, we have faith that people will use our product and what to tell everyone about it and it will also gain promotion that way. 3. Distribution and Pricing 3.1 Distribution Distribution is the process of strategically managing the movement of the physical storage of materials, parts, and finished inventory from suppliers, through the firm and on to the customers (Smykay et al., 1961). In choosing our channel of distribution we rely on the fact that our product initially will target only the UK market. Firstly, in order to decide what type of distribution channel to use for our product we considered a few factors (Christopher, 1994). What type of product are we selling?What is our target market? How to minimalize total costs of the product? How to distribute it fast and in a good condition? What can we use as a differential advantage over our competitors? To begin with, our target market as mentioned before is high-end gyms and luxury hotels therefore, direct business to business channel is the best option for us (Christopher, 1994). The buyer may request technical assistance and installation of the product due to the fact that it is very complex and requires professional knowledge on how to use it correctly. An intermediary might fail to provide it and it will bring up additional legal costs to our company (Jobber and Ellis-Chadwick, 2016). Secondly, our product is large, complex and has a high financial value and it requires direct selling in order to reduce physical damage and security aspects when transporting it via multiple intermediaries. (Christopher, 1994). In addition, the company will get higher gross profit margins that will help us cover the distribution and sales costs (Christopher, 1994). As an example of not delivering goods safely and securely is Amazon. According to a study in US 11 million homeowners reported that their package has been stolen in the previous year. For that reason, Amazon is looking for alternative ways of distribution (Fox News, 2019). Finally, as our differential advantage we are offering reliability of the delivery system and good timing in order to create and maintain a good relationship with the customer. Also, direct distribution tends to build up relationship value and this contributes to generate trust, commitment and satisfaction (Gil-Saura, Frasquet-Deltoro and Cervera-Taulet, 2009). In addition, a free of charge maintenance service will be offered. On the grounds that we can offer higher service level, it will allow us to charge a premium price and gain control in the market share (West, 1989). The second channel strategy decision is about distribution intensity. Our choice of covering the market is through selective distribution, it means that our number of products are limited (Jobber and Ellis-Chadwick, 2016). This gives us the opportunity in choosing our consumer and develop close relationships (Jobber and Ellis-Chadwick, 2016). Brand Names Distribution Channels   DirectRetailerOnlineDealerGame-A-Cise                           Precor                FFiTTech             Fitness Superstore                                    (Statista, 2019; The Guardian, 2019b; Treadmill reviews, 2019) The table summarizes the distribution channels of 3 different competitors in comparison to ‘Game-A-Cise’. As shown above ‘Game-A-Cise’ is the only supplier that allows customers to get the product via 3 different routes. The number of routes that we have for distribution makes us differentiate and it is a unique benefit that consumer gets from ‘Game-A-Cise’ (AGW Group, 2019). Furthermore, it is the only one that distributes its product directly to the consumer. Apart from the table, based on the information from the official websites, Precor is targeting the same market share as ‘Game-A-Cise’ such as Gyms and Hospitality centres (Precor, 2019). On the other hand, Fitness Superstore faces ‘Game-A-Cise’ when ordering online. They offer a free delivery when ordering over £99 (Fitness-superstore, 2019). Additionally, FFiTTech offers fast delivery and respond to break down in matters of hours creating a challenge for ‘Game-A-Cise’ in becoming a market leader. However, ‘Game-A-Cise’ appears to beat all the distribution criteria of the competitors (Webmasters, 2019). As any other business, ‘Game-A-Cise’ is planning to expand its market shares, therefore, our distribution approach will develop as well and additional distribution channels will be used. Such as online and direct to the retail stores (Christopher, 1994). Shopping via internet is used commonly by consumers because it is easy, quick and comfortable. Statistics shows that 87% of UK retail purchases are made online (Ecommerce News, 2019). Also, further research will be made by ‘Game-A-Cise’ in order to decide if online delivery should be done directly from manufacturer to the house or via using a third specialised party (Christopher, 1994). Last but not least important distribution channel that we are considering using, as mentioned before is manufacturer directly to retail stores. We are aiming to sell our product in luxury stores such as Selfridges, Harrods and Fenwick in the interest of focusing our target consumer. Using our own vehicles from the point of production to the retail store making it straightforward and easier to control the retailer (Jobber and Ellis-Chadwick, 2016). 3.2 Pricing A comparative review shows that marketing and economics treatment of price highly differ in the buyer’s perspective. Marketing approach being more empirically based and including a broader set of theories where the economy-based one being more mathematically developed (Skouras, Avlonitis and Indounas 2005). Thus, pricing becomes a primary concern and it must be set following several concepts and rules (Jobber and Ellis-Chadwick, 2016). After thorough research it was decided that a marketing orientated pricing approach will be used for the ‘Game-A-Cise’ product therefore, taking into accounting all factors such as competition, costs, value to the customer, marketing strategy and others (Jobber and Ellis-Chadwick, 2016). For the reason that ‘Game-A-Cise’ is a new product launched into the market a rapid skimming strategy will be applied, in other words, we aim for a high price and high promotion in order to raise awareness about the existence of the product, its benefits, functions and price (Jobber and Ellis-Chadwick, 2016). Therefore, the high price will provide high margins and compensate the investments (Jobber and Ellis-Chadwick, 2016). Some reasons why we are able to charge high prices are the following: lack of competition because the product is unique on the market; this might create a monopoly in our advantage making us the only supplier of this type of goods (Jobber and Ellis-Chadwick, 2016). An addition factor is that the consumer and bill payer are different. Consequently, the gyms are able to offer the product to the next in line consumers. This triggers another factor which states that customers have high ability to pay considering B2B. Last but not least influence is the excess demand. Europe is the largest fitness market in the world with a total value of around £23.5 billion euros, and it keeps expanding. Moreover, UK is placed second among Europe generating revenue from fitness activities (BBC News, 2019). Competitors are the key part of market orientated pricing. Owing to the fact that ‘Game-A-Cise’ is a unique product it does not have immediate competitors that technically have similar product yet it competes with secondary and tertiary ones, such as X-Box, Exercise Apps, Wii Fit and gym equipment that are different products but are solving the problem in a different way. For instance, X-Box is similar to our product only when considering entertainment part. Another example of competitor is Gym Equipment which tends to solve only the fitness requirement of the consumer but not offering the fun side to it. This is our advantage considering that 43% of UK consumers take part in sports for fun, according to Mintel (2019b). Game-A-Cise£2000X-BOX£450Exercise Apps£1Wii Fit £200Gym Equipment£3000 (Statista, 2019; The Guardian, 2019b; Treadmill reviews, 2019; Amazon, 2019) Firstly, the price chosen for ‘Game-A-Cise’ is £2000. It was set in accordance to the promotion, distribution and other spending such as raw materials, research, and rent (Jobber and Ellis-Chadwick, 2016). Secondly, we analysed our competitors their differential advantages and how they priced their products. Because our product is so unique it offers more than one function to the consumer. It combines a fitness training option as well as entertainment which makes us differentiate from our competitors and allows us to charge such as high price. By adapting our product to innovations and once the segments of the product are attractive enough to a larger consumer target, later on ‘Game-A-Cise’ will able to expand to target individuals that will purchase the product for their personal use. We are planning to come up with a credit option and make it more affordable to individual consumers (Jobber and Ellis-Chadwick, 2016). When pricing our product, we took into consideration the ethical elements of pricing (Jobber and Ellis-Chadwick, 2016). One example is that our target market are the gyms across UK. According to BBC all gyms have a different price. Some of them being called luxury and targeted for a certain consumer type and other being low cost and aiming for the average consumer. Prices for the membership varies from 400 to 1580 per annum (BBC News, 2019b), hence we could have charged a luxury Gym more than a regular one. However, avoiding the price discrimination, the costs for our product will remain the same among our consumers. It is important nowadays to be ethical because it is a huge trend and it helps earn the consumer loyalty and trust and strengthen the reputation of the business (Business Queensland, 2019). 4. Conclusion In conclusion research has shown that there is a demand in the market environment of an innovative product which will motivate people to keep their regular exercise and have fun at the same time. 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