FITNESS PLUS RESTAURANT AND SPORTING ACTIVITIES BUSINESS PROPOSAL

COMMUNICATION SKILLS ASSIGNMENT.

LECTURERS NAME: STUDENT NAME: REG NUMBER:

KAMARO DANY MUHAMMED L HYDARA

BBA/1184/201/DT

DEPERTMENT: BUSINESS AND DEVELOPMENT 4/11/2012

FITNESS PLUS RESTOURANT AND SPORTING ACTICIVITE, INC.

Fitness Plus Restaurant and Sporting Activities well comes you all. We have everything you need to maintain a healthy lifestyle at your fingertips. There's no better place to exercise and keep fit than at a fitness centre which boasts fully equipped gyms, restaurant, sporting avtivities, and swimming pools all in one place. Also known as health clubs or fitness centres, gyms provide both the equipment and environment needed for you to shape up in style. Even if you're not a regular gym enthusiast, youll have heard of some of the best known fitness centres in the Tanzania such as Colosseum health and fitness club, Nanasi Yoga, Dance & Fitness Studios, Nduruma Polo and Country Club, The Arusha Rhinos Rugby Football Club, Arusha Gymkhana Club etc., have provided a wonderful health service for the people of Tanzania and non-Tanzanians. Our services and products are just the way you like with skilled and qualified trainers from different field of studies in health and fitness industry. Diseases caused by fitness and excise, are catered for with low prices and comfort without going to the hospital which can sometimes be challenging for many people.

Table of content:
Executive summary Startup Expenses Sources of finance Company over view Challenges Industry Analysis Benefits and Features Services Overview: Benefits and Features Why people need this service Industry Life Cycle Cyclical trends in Industry Market Opportunities Barriers to Entry Advisor Service Potential Targeted Audience Total Population Competition Market Niche Marketing Strategy Branding Marketing Objectives Strategy Marketing Budget SWOT Analysis Ansoff's product / market matrix Boston Consulting Group (BCG) Matrix (Boston Box) Marketing Mix Service Execution Timeline Location Legal Environment Personnel Bankers

Executive summary:
1. Fitness Plus will provide health care and body workout services. 2. Fitness Plus will offer low cost services to all segments of customer. 3. Owners are experienced and dedicated towards health care services. 4. State of the earth restaurant with quality services 5. Health care market is on the boom in Tanzania. 6. Market volume is expected to reach $69.8 billion by the year 2015. 7. A large segment of market is still untapped. 8. Heart disease and obesity are on record high causing increase in health club demand. 9. Low income market segment is ignored by key competitors. 10. Health club market is competitive in Dar es Salaam but provides equal growth opportunities. 11. Increasing awareness, obesity and heart disease are the driving forces for market growth. 12. Fitness Plus will have their own training facility with state of the art health care Equipment from quality manufacturers. 13. The student population of Tanzania will be provided with cheap and healthy fitness services especially Kampala International University students.

Startup Expenses: The following are the startup expenses for the fitness club. Health club development Tsh10,000,000 Personnel (employees) Tsh900,000 Capital expenditure Tsh400,000 Consulting services Tsh200,000 Promotion Tsh500,000 Tsh12,000,000

Note: The personnel (employees) will be paid Tsh900,000 at the start but the actual salary for the continuous running of the business will either increase or decrease due to the profit margin. 5-Years Revenue Forecast: Year 1 Year 2 Year 3 Year 4 Year 5 2,000,000 5,000,000 12,000,000 14,000,000 20,000,000

5-Expected profit growth: (profit less expenses = net profit) Year 1 Year 2 Year 3 Year 4 Year 5 Tsh900,000 Tsh3,000,000 Tsh5,000,000 Tsh8,000,000 Tsh12,000,000

Sources of finance Internal sources and External Sources: The founders Muhammed L. Hydara and Kamaro Dany will contribute Tsh4,000,000 cash each for the startup capital which is equals to 4000,000 leaving the difference of 8000,000. Kamaro Dany personal properties include: 1. A compound costing Tsh50,000,000 2. A car costing Tsh2,000,000 Muhammed L. Hydara personal properties include: 1. A compound costing Tsh40,000,000 2. A car costing Tsh1,500,000 External Sources: Therefore, both parties have Tsh93,500,000 worth of personal properties, 8,000,000 will be allocated for the collateral security in the case of loss, but 10,000,000 will be borrowed. The extra 1,000,000 will be kept for emergency purpose.The following are modes of payment for the bank loan. Year 1 2 3 4 5 Total Profit Generated Tsh900,000 Tsh3,000,000 Tsh5,000,000 Tsh8,000,000 Tsh12,000,000 Tsh37,000,000 Bank Loan Payment Tsh300,000 Tsh1,000,000 Tsh3,000,000 Tsh5,000,000 Tsh1,000,000 Tsh10,300,000 Balance Tsh600,000 Tsh2,000,000 Tsh2,000,000 Tsh3,000,000 Tsh11,000,000 Tsh18,600,000

Note: The interest charged on the loan is 2,300,000, Profit generated Tsh37,000,000, Bank loan payment in 5years = Tsh10,300,000, Balance left after loan = Tsh18,600,000

Company over view: Fitness Plus health club will be situated in Dar es Salaam Tanzania, Kampala International University, Gongo la Mboto. Formed by Muhammed L. Hydara and Kamaro Dany in April 6, 2012. Fitness Plus will provide health and fitness services that are good in quality and low in cost for the students of Kampala International University and the general population. Mission and Vision: Vision: To create awareness about healthy lifestyle and its benefits Mission: To provide strategies and training programs related to health care Challenges: Fitness Plus will face a challenging situation in creating its brand image and attracting customers towards their services due to lack of adequate knowledge about fitness and health. Industry Analysis: A health club can be descried as a service facility that is intended to provide physical health care exercises with the help of specialized equipment. It will normally serve both male and female customers but in some cases females are provided special attention by providing them female only health clubs in which all staff including trainers are also females. Normally, the environment is made casual to provide customers comfortable experience that helps them performing bodybuilding and other exercises with ease. According to a survey conducted in Kampala International University, there is no health and fitness club. Almost 95% of the student population and 75% of lecturers will want such services at their disposal.

Services Overview Fitness Plus will provide following health related services: Aerobics Cycling Boxing Yoga Pilates Muscle Training Diabetes & Obesity Control Restaurant with good food and relaxation

Benefits and Features: o State of the art facility with latest equipment from quality manufacturers o Low cost with monthly, quarterly and annual subscription plans. o Personal qualified trainers to help our members achieving results without wasting much time o Restaurant with good quality and low cost. Why people need this service? After a long day of lectures both students and lecturers need such services for relaxation and body tanning. Fitness plus restaurant and sporting services is very vital for the education industry. It helps to keep people fit and active all the times which might have a good impact on academics and standards. A happy, active and fit student and lecturer will always provide good results. According to health surveys, fitness helps in preventing diseases that affect people to lack of body training. The following are the importance of fitness identified by Human Kinetics, J.F. Kennedy and Greenberg, 2004, p. 7: Drive-away Illness: Yes, it is true. Moderated and balanced workout in a fitness regimen helps to boost the immune system of the body. Fully functional and strong body immunity means that your body develops the strength to ward off diseases and infections.

Self-Confidence: When you look good and you feel good - it is obvious that you have no inhibitions and insecurities to bog you down. A healthy mind and a healthy body are a big boost to your self-confidence! Social health-The ability to interact well with people and the environment and to have satisfying personal relationships. Mental health-The ability to learn and grow intellectually. Life experiences as well as more formal structures (e.g., school) enhance mental health. Emotional health-The ability to control emotions so that you feel comfortable expressing them and can express them appropriately. Spiritual health-A belief in some unifying force. It varies from person to person but has the concept of faith at its core. Cardiorespiratory capacity: is the ability of the body to take in oxygen (respiration), deliver it to the cells (circulation), and use it at the cellular level to create energy (bioenergetics i.e., energy flow through leaving systems) for physical work (activity). Muscular capacity: the ability to apply force over a long period of time or to complete repeated muscle contractions, improved muscular endurance, increased basal metabolic rate, improved joint strength, and overall posture. Flexibility is the range of movement or amount of motion that a joint is capable of performing. Balance is the ability to maintain a specific body position in either a stationary or dynamic (moving) situation. Coordination is the ability to use all body parts together to produce smooth and fluid motion. Agility is the ability to change direction quickly. Reaction time is the time required to respond to a specific stimulus. Speed is the ability to move rapidly. Speed is also known as velocity (rate of motion). Power is the product of strength and speed. Power is also known as explosive strength. Mental capability is the ability to concentrate during exercise to improve training effects as well as the ability to relax and enjoy the psychological benefits of activity (endorphins).

Industry Life Cycle: Health care and fitness industry in Tanzania is still in the growing stage, but at KIU its in the introduction stage which is huge potential for growth in years to come. The diagram below shows the product life cycle of the industry

12 manage the executive fats track http://www.12manage.com/methods_product_life_cycle.html Cyclical trends in Industry: Health club business is not affected by different seasons and keeps running smoothly throughout the year. Market Opportunities: Health care club industry offers a huge lot of opportunities for existing and potential investors. Marketing is growing for many reasons, some of them are following: Almost 300 million people are affected worldwide with obesity. Almost 45% of students and 75% of lecturers are overweight. 10% of both students and lecturers with diabetes are suffering from high blood pressure and heart disease. Treatment cost of these diseases are costly compared to fitness plus. Food and other refreshing items are costly and sometime not found due to the distance from the city.

Barriers to Entry: No such barriers in the entry of health care clubs in Dar es Salaam. Service Potential: Fitness plus will only focusing on developing a fitness health care facility and restaurant, but in the future we will planning to extend its operations for creating public awareness about different disease and heath care issues on no profit basis. Targeted Audience: Fitness Plus will be starting its operations in Miami, Florida. This market houses almost 21.7% of total Florida State market of 1,691 health care clubs. Following are the demographics of Miami. Total Population: According to the admission department report, total population of both lecturers and students is almost 6000. Competition: Fitness Plus Restaurant and sporting activities will enter in a market of no competition. Market Niche: Fitness plus restaurant and sporting activities will enter into a market to serve lecturers and students of Kampala International University at a low cost. Marketing Strategy State of the art facility with latest equipment from quality manufacturers Low cost with monthly, quarterly and annual subscription plans. Starting from as low as Tsh30, 000 for basic body workout exercises. Personal qualified trainers to help our members achieving results without wasting much time. Low cost of subscription + state of the earth health care facility + personal =value Branding: Fitness Plus will create their official website for creating a brand and company image in the market, as well as providing subscription online.

Marketing Objectives: Fitness Plus will focus on creating a brand image and low cost service; we will participate in the major events of health care awareness and education programs. Strategy: Fitness Plus Restaurant and sporting activities will start by targeting KIU segment of market Dar es Salaam Campus. We will convince students and lecturers about the benefits and needs of wellness programs. This will be accomplished by aggressively pursuing interaction and relationships with peoples in public health awareness programs and by sending newsletters and emails through website. Marketing Budget: Fitness Plus has allocated Tsh500, 000 for marketing. This budget will be used for advertising on newspaper, television, radio and printing brochures. SWOT Analysis Strengths: Management committed towards to a result orientated approach to attract and maintain customers in a highly competitive market. Health care program is well-thought according to the need of layman. Lowest cost of service in the entire market of Coral Gables. Company will hire qualified and trained staff. Restaurant and state of the earth sporting activities

Weaknesses: Personal training services can be high in costs. Fitness Plus restaurant and sporting activities is low in staff that can be problem in providing service to a large pool of members. Club is short of marketing budget to attract large business client. Opportunities: Health care club market is rapidly growing. Increasing heart and obesity disease are causing people to pay importance to exercise and health care activities. People are getting use to have gym and health clubs in their daily routine of life.

 The segment of market is still untapped, low income area will be of special focus for Fitness Plus restaurant and sporting activities which is totally ignored by the school. Threats: Many students are on loans board sometimes loans are late to get to them Recession and economic downturn can slow down the growth of health clubs. Many might it unnecessary. Tide schedule of lectures and extra works. Low cost health care equipments availability for home exercise.

Ansoff's product / market matrix

Ansoff's product / market matrix (2012) (http://tutor2u.net/business/strategy/ansoff_matrix.htm) From the above diagram, the marketing strategies that we will adapt will be market development. Thus product development, market penetration will be noted for further marketing of our product and services.

Boston Consulting Group (BCG) Matrix (Boston Box)

The Boston Matrix (or Boston Box) (http://tutor2u.net/business/strategy/bcg_box.htm) From the above diagram, the Fitness Plus Restaurant and Sporting activities, will operate in a market where the market shear and market growth is high
(Star).

The Pest Analysis (Political, Economic, Social, Technological) are also favorable for the market. Marketing Mix Product: Health Care Services: o o o o o o o Aerobics Cycling Boxing Yoga Pilates Muscle Training Diabetes & Obesity Control

Price: Penetration Pricing: We will offer quality exercise and body work out services at cost less than existing market standard i.e., to charge a price lower than competitors in the other parts of Dar es Salaam in other to attract not only students and lecturers but the general population. Place: Direct Supply / Direct Sale: The health club will be located near or in the school at KIU Dar es Salaam, for growth and development; we will extend to other universities in different location to reach our customers in Gongo La Mboto at Kampala International University Dar Es Salaam Campus.

Promotion: Media Advertising: Fitness Plus Restaurant and sporting Activities will use internet, school magazines, and notice board as the medium of advertisement. In addition they will print 1,000 brochures for creating awareness in the school about our health care services; we will be distributing in major health care seminars and events where officials from the club will participate. Bankers: That will be decided based on the requirement of feasibility of business. Advisor: The management and staff of Kampala International University will be our advisor

Service Execution Timeline: Fitness Plus Restaurant and Sporting Activities will follow this service execution model to enter in the health club market for students and staffs of KIU. EXECUTION PERIOD

TASK
Choosing Location, building and installation Hiring, Training and admin staff Website development Advertising

January

February March

April

May

June

July

Opening of club

Legal Environment: There are no current legal obligations for Fitness Plus health club. Personnel: Fitness Plus Restaurant and Sporting Activities will start with a total of 10 initial staff members that includes owners as well. Management and Organization Muhammed L. Hydara will be responsible for the management of the Club whiles Kamaro Dany will be responsible for the public relation and handling marketing activities.

Conclusion: The fitness plus restaurant and sporting activities is privately owned by Muhammed L. Hydara and Kamaro Dany, with the aim of providing health and fitness services to the students and staffs of KIU thereby enhancing diseases and other health related issues which might have a negative impact to the learning environment of the school. Fitness Plus Restaurant and Sporting Activities welcomes you all. A healthy body is a healthy mind.

Reference: Human Kinetics, J.F. Kennedy and Greenberg, 2004, p. 7: 12 manage the executive fats track http://www.12manage.com/methods_product_life_cycle.html Ansoff's product / market matrix (2012) (http://tutor2u.net/business/strategy/ansoff_matrix.htm) The Boston Matrix (or Boston Box) (http://tutor2u.net/business/strategy/bcg_box.htm) Biz Plan Corner (www.bizplancorner.com/samples.aspx)