Transcript PowerPoint

DIPLOMA PRESENTATION
“IMPROVEMENT OF PRICING
POLICY”
Written by
Sidlyk Dmytro Oleksandrovich
Scientific supervisor: Garmider L. D.
The purpose of the diploma research is to examine the system of pricing
and how these pricing strategies are applied in the fitness center “Energy Fit”.
According to the purpose, the following tasks were set in the diploma
project:
• To define methodological aspects of pricing and pricing strategies;
• To find the most appropriate strategies for different market segments;
• To study the existent pricing strategy at the enterprise;
• To analyze the current pricing policy of the fitness center “Energy Fit”;
• To find new ways for pricing policy improvement;
• To develop new pricing policy for entering the new price segments.
GENERAL THEORETIC ASPECTS
THE MAIN TYPES OF PRICING STRATEGY
BASED ON PRODUCT CHARACTERISTICS
Product characteristics
Types of pricing strategy
Cream compilation
New goods
Posh prices
Following market leader
Entering the market
Costs recovery
Modernized goods
Variable decreasing prices
Strategy for individual segments
Saving price level with increasing consumer properties of goods
Linked pricing
Flexible pricing
Goods that sales as a traditional
Posh prices
The strategy of lowering prices for complementary goods
Long prices strategy
ECONOMICAL ACTIVITY OF FITNESS
CENTER “ENERGY FIT”
4%
8%
Group lessons
32%
56%
Gym
Dietologist consulting
Massage
FITNESS CENTER STRUCTURE
Teaching staff
Administration
Service staff
Technical staff
Educational
Householding
Providing
Care about
work with clients
The
Managment
development of
throughput abilities
building,
of fitness club
equipment, trainers
Information
Fixing
coordination
new effective
programs
Implementation
of pedagogical
control
Marketing
Tools for quality
of service
Technical care
MARKET SHARES ON FITNESS IN
DNIPROPETROVSK
Voskhod; 13%
Sport Life; 21%
Virsavia; 6%
Flex; 6%
Djaypour; 12%
Energy Fit; 11%
Sport Life
Djaypour
Vivat; 8% Aquatory; 11%
Aquatory Vivat Energy Fit
Flex
Virsavia
Voskhod
SWOT ANALYSIS
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A lot of space
Modern equipment
Ability to do martial arts
Parking zone
Affordable prices
Fitness experience
High quality service
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Attraction of additional equipment for advanced features
Esthetical creation
Involvement of fitness experts
Increasing professional level of staff
Creation of new srvices according to customer requests
Entering new market segments
Strengths
Opportunities
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Rooms does not meet fitness center standarts
Expensive rent
Strong competitors
Weak creativity
Not first lessons for free
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Losing clients because of competitors
Increasing rent
Loss of population interest in sports
Seasonality of demand
Losing regular clients
Decreasing of peoples ability to pay
Changing needs and demands of buyers in the market
Weaknesses
Threats
ENERGY FIT GYM PRICES IN
COMPARISON TO OTHER FITNESS
CENTERS IN NOVOMOSKOVSK
350
300
UAH
250
200
150
100
50
0
Morning
Day
Energy Fit
4Friends
Maximum
Super Body
Single class
20% PRICE INCREASE
350
300
UAH
250
200
150
100
50
0
Morning
Day
Energy Fit
Maximum
4Friends
Super Body
Single class
SEASONAL AND DAILY DYNAMICS OF
THE DEMAND FOR FITNESS SERVICES
CROSSFIT EQUIPMENT
Producer
Name
Price
Roguefitness.
(USA)
Rogue Power Bar
$275.00
Rogue S-25 Fat Boy Sled
$115.00
Dynamax Hoover Medicine Balls - 10"
$42.00
Rogue Training LB Bumper Plates
$126.90
Rogue "Kilo" Bells - American Made
$40.95
Knotted Climbing Rope
$133.05
Rogue Wood Plyoboxes
$65.25
Rogue Gymnastic Wood Rings
$60.00
Total Investments: $817 (9 793 UAH.)
Value of potential clients: 30
Price: 400 UAH per month
Income: 12 000 UAH per month
PRICE CALCULATION FOR ENTERING TO
NEW SEGMENT (COSTS RECOVERY)
• Average client pays: 300 UAH per month
• The total value of all costs for service: 300 000 UAH per year
• Average visiting: 500 people a day
• Murk-up: 30%
Accordingly, the annual cost of cards per person: 300 000/500 = 600 UAH.
The minimum annual cost of the card: 600 * 1.3 = 780 UAH.
THANKS FOR YOUR ATTENTION
HAVE A NICE DAY