Business arrange for sandton fitness centre marketing essay

Sandton fitness centre and wonder spa is a new gym that is for everybody (male and female) that creates a comfy environment for everyone to pursue their workout goals. It is situation in Sandton at Johannesburg. Sandton fitness center and beauty spa have the most satisfactory/best equipment, best fitness trainers, dietician, unique classes and psychologists.

Sandton fitness centre and beauty spa is found in the urban where people have a very active life and very little time to spend on fitness and healthy and balanced life. Heart disease and obesity are on record huge causing increase in health club demand.

Low income industry segment is ignored by key competitors in the market

Club memberships in South Africa include increased yearly since 1994 and a strong market makes a strong business. We are a solid purchase because start-up athletics gyms on average ingest 1,000 new associates per year.

This will allow our business to break even in under five years.

Our club, Sandton Fitness Center will offer you its members quality providers and rewards that no other golf club can offer. We want to take investments and use them wisely so as to create a sports center that pleases clients. In sports clubs, the very best five most successful programs/services are personal training, massage therapy, food/beverages, an aquatics course, and a tennis software. Our gym provides all these services and therefore increase our productivity. We will build a large complex that will include a pool, personal training establishments, basketball courts, a evening spa, tennis courts, and several other features to draw in clientele. In Sandton had been our health and fitness center will be located has "20 to 64 year old" population. This implies not only that our clientele pools can be large but these people are experienced and have attained the socioeconomic status that’ll be needed in order to attain and maintain our service.

In conclusion, our rewarding new gym is a coordinated effort among four aspiring business owners to create "the ultimate in sports activities and leisure fitness".

Company Description

Sandton Fitness Center and Wonder Spa are focused on teenagers (13+), young adults and adults. Sandton Exercise Centre has its unique programs for different age ranges. Sandton Fitness Centre can be 55,000 square feet. It is situated in 1560 Grayston Street, in Sandton.

Sandton Fitness Centre and Beauty spa likewise have a childcare centre, where they take care of children while their parents are occupied with their workouts. The childcare centre can currently care for 40 children but only 10 infants.

Sandton Splendor Spa is a new destination offering clients the combination of full body therapeutic massage, waxing, body therapies, facials, manicures, pedicures, anti- aging treatments and lasers.

Company history

Fitness Centre and Beauty spa was made on 14 February 2007, to provide busy and working persons with a fitness centre and a charm spa. Fit center and a charm spa all combined astonished and made people excited.

Fitness centre is privately financed by businessman and traders. More than 80,000 was invested in to the company. The amount of money covered equipments, advertising campaigns, flyers, posters, advertising and marketing an internet also to create a domain name. the company struggled for long, most of the people preferred the fitness center not the beauty spa, because they were complaining and worried about the costs. Therefore the centre had to lessen them a little bit. Sales were also fewer. So Fitness centre made a decision to produce specials every after 8 weeks and on special events like Valentines Day time and birthdays, but only on the beauty spa’s side. The fitness center price remains the same. At the end things improved.

Mission statements

Create member’s work out environment that promoter’s self confidence inside our clients. Fitness center and wonder spa provides our customers with magnificence treatment at a good price and competitive price tag, while offering with the high level of customers assistance and satisfaction. Our business is targeted on everyone most especially celebrities who care a lot about fitness and looking good.

Product and Services

Fitness Centre and Natural beauty Spa Services are the following:

Fitness centre has a professional personal trainer who’ll assist everyone in the fitness center.

Our personal trainers help you with a exercise program.

Fitness Centre also has a qualified dietician who’ll help each member on his/her ideal and healthy food to eat.

Inside the gym there happen to be paramedics who is there to help persons if may be a member gets harmed or collapses, or any other sickness, they are there full time.

Fitness Centre has also hired a qualified psychologist, who will help with lots of stress and anxiety and encouraging them for a way forward to live a healthy life.

Beauty Spa Services

Full body massage




Anti – ageing treatments



Offer creams and charm product on sale

Industry analysis


The health market is quite large and still growing a growing number of because of the health revolution people have grown to be more health conscious in an effort to preserve and prolong their lives due to the fast pace living design of today.

The fitness and well-being industry is a 40 billion dollar that is fast paced and ground breaking and highly competitive.

In South Africa the marketplace is not matured yet it is even now in its infancy at the moment.


The international health and fitness industry has grown approximately 12% for days gone by 10 years with the exception with 2009 it decreased 3 % because of the slow down of consumer spending as a result of the global credit crisis.

Locally medical and fitness industry in addition has grown especially due to the performance of 1 the leaders of the neighborhood fitness industry Planet health was voted the very best performing companies of 2010 despite the decelerate of the economy.

Sales projection

The total industry is expected to only grow 10% because of the great unemployment and poor buyer spending meaning that people are reluctant to invest their money spending just on absolute necessities.

Industry structure

The South African health and fitness industry is dominated by a handful of large companies being Virgin Active, Planet fitness and Smart Gym. However these large health and fitness service providers are not exploring the complete market and meeting the specific needs that we have already been able to identify available in the market. They are to large to fulfill the distinctive wants of the whole market when it comes to innovation and imagination and personalised serviced in addition to the simplification of services. They are also slow to respond to changes available environment as well as the new trends and advancements in the world of health and fitness .For example the trend now could be the simplification and simple anything and everything that would complicate our life making utilization of creative and innovative ideas to increase life top quality and prolong lives so long as possible.

Critical Success Factors

1. Commitment "At the very top."

2. Qualified Professional Staff.

3. Plan Afterward Proceed.

4. Location, Location, Area.

5. Right Size – Right Cost.

6. Program to Match Needs

7. Effective Integration.

8. Right Price – Nominal Discounts.

9. Commitment to Advertising and Sales.

10. Commitment to Outstanding CUSTOMER SUPPORT.

11. Measure, Manage and Measure Again.

12. Effective Communications with Members.

Management Team and Firm Structure

The management workforce is comprised of all of the founders of The Santon Health Middle Keleabetswe Sepengused, Marcelino Maliti Moises, Gonste Bokaba and Kgabo Lucia Mathibe.

Director of Advertising and sales

The director of advertising and sales is accountable for all the marketing of the company needs for instance promotion, advertising, general market trends and sales

Mrs. Keleabetswe Sepeng utilized to be the marketing and sales manager for Virgin Active from 2005 -2011 she will take charge of the same post in the new provider. Mrs Sepeng is highly recognized in the industry and includes a masters degree in marketing

Chief Financial Officer

The chief financial officer is in charge of the over-all financial control and management of the business.

The obligations and responsibility involve creating control, managerial and analyzing measures for appropriate, ethical and legal financial control

Mr. Marcelino M Moises will take the position of CFO Chief Financial Officer since he gets the most qualified and has the most knowledge in the discipline after having worked well for World fitness for over a decade Mr. Marcelino has a Bachelor of Accounting Sciences and BA level in Business Administrations

Chief Executive Officer

The ceo may be the highest position in the company, the duties and responsibilities of the CEO may be the overall running of the complete organization, make decisions for the whole businesses .planning ,leading, organize ,controlling

Mr. Gontse Bokaba will need the positioning of CEO Chief Executive Officer of the business.

Mr. Gontse Bokaba has worked for SAA South African Atmosphere Lines for more than 5 as the principle operations manager.

Mr. Gontse Bokaba includes a Master degree in Business Management

Chief Operations Officer

The chief functions officer is responsible planning, coordinating and managing the operations of the business theses include business office administrations, overseeing that both product or service are

Mrs. Kgabo Lucia Mathibe will work out the positioning of COO Chief Operation’s officer or Controlling Director because she has been the manager at a day Spar for quite some time so she has both insight and recognizes the beauty sector in and out.

Mrs. Kgabo Lucia includes a degree running a business Administrations and a expert in Human resource administration. Along with head the human resources department seeing as he has knowledge in recruiting and staffing.









Industry structure

The South African fitness industry is dominated by a small number of large businesses being Virgin Active, World fitness and Smart Fitness center. However these large health and fitness service providers are not exploring the entire market and meeting the specific needs that we have been able to identify in the market. They are to large to fulfill the distinctive requirements of the complete market regarding innovation and creativity and personalised serviced and also the simplification of life. Also, they are slow to react to changes in the business environment and also the new trends and advancements in the world of health.

Industry Trends

Individual usage of fitness and health care training equipment has increased.

Body workout and exercise has turned into a daily life routine of several people around the world in the last decade.

Fitness memberships are significantly getting popular in work place around the world Companies are including health and wellbeing memberships as part of employee remuneration package.

Long- Term Prospectus

To make sure a continual expansion of medical and exercise industry in the united states.

To raise knowing of the increase of weight problems and heart and soul deceases in the country and to promote healthy living

Market analysis

Johannesburg is a capital city of Gauteng. It is the major harbor of South African business. All of the major companies of organization are based in Joburg. The current human population of Johannesburg is 11million. All types of professions are located in Johannesburg. So, this is a competitive advantage to make business in Johannesburg.

Market segmentation


focuses on fitness, health insurance and beauty. Our marketplace with regards to the gym, is for everybody especially family members and for the beauty spa, our target market are adults, male and feminine from the age ranges of 13-55 years. They have to earn at the least R3000 and additional. For children between 13 and 20, parents must be responsible for their membership. The amount of money will likely be deducted on a monthly basis in the parent’s accounts, for their children’s membership. The centre and beauty Spa would work very difficult to see buyers being satisfied about what the centre delivers. Consumers perceive more benefit from an excellent or service that appears to deliver more benefits for money. Market research covers the following: customer needs, cultural factors, social connections, where family, good friends or associates can influence how, what, so when consumers buy, personnel elements, marketers for the health centre and wonder Spa. See opportunity in reaching young girls who are concentrating on their career and looking very good when going to work and going out with friends, older men and women who are caring for their health due to many diseases like weight problems, high blood etc.

Target market selection

Target customers: the principal customer is children, young adults and adults.

These customers are age groups 12-65 years

There approximately 3000 clients: 15% children, 50% adults and 35 adults.

70%percent of adults and adults are superstars who spent the majority of their time at Sandton. Some of them homes is there.

Competitors Analysis

Our main competition are Virgin Active, World Fitness and Smart gym

Sandton Fitness Centre and Beauty Spa is the environment that’s created in the service. Our customers feel more relaxed and secure in an application that is centered on them. We’ve designed the childcare centre to be visible from the key workout floor. Young mothers can oversee the kid play while training. Our main concern is to provide our consumer with a direction who’ll organize each of our members healthy eating system and providing our customers with a personal trainer who will make certain that a member do right exercise constantly according to his/her work out plan

Marketing plan

Sandton Fitness Center will give attention to creating a brand photograph in the Johannesburg and Sandton place. We will Take part in the major happenings of health care awareness and education applications.

Sandton Fitness Center begins by targeting low profits segment of industry downtown Sandton and Johannesburg region. We will convince people about the huge benefits and desires of wellness courses. This will be achieved by aggressively pursuing interaction and human relationships with peoples in public health awareness programs and by sending news letters and emails through Sociable interactive websites like Face e book, Twitter and Msn and Google messenger.


Our prices and campaigns are always at the mercy of change in particular when we look at the fluctuating membership enrollments; however, generally our initial fees for our providers will be R300 and R80 monthly for an over-all membership. We will also offer to customers the choice of paying daily service fees. This fee will be R50 demand for a day’s utilization of any service our business provides. Furthermore we may offer to individuals the choice of using solely our day spa for just one day. To utilize this alternative we will charge a standard cost of R25. For another pricing option we will give customers the option of paying an gross annual fee up front for R1, 100, this would be a keeping of over R150. This approach would benefit us aswell considering we will see an immediate go back on our investments allowing for us to re-pay for our debt quickly. This sort of pricing will establish us over quite a few competitor’s rates; however the main opponent will become outbid. "Planet fitness", which comes closest to what we provide, will get outbid by over R600 and other rivals do not provide level of resources that we will sell to our customers. In this way we believe that the provider we sell and the purchase price we offer can overcome or compete intensely with every competitor in the market.


We will try to use a number of strategies to make connection with potential members. A reasonably cheap and easily accessible form of advertisement would be the Internet. By running our very own website, we can reach a wide variety of customers. That is also a fairly cheap manner in which to get our name out since it is only going to cost our company $9.95 to launch and operate the website annually. Another affordable way to advertise our name will be to have various sales campaigns and use flyers to obtain the word away. By making usage of the next mediums of communication papers, magazines, tv and radio as the medium of advertisement. In addition they will print 5,000 brochures for creating awareness in the market about their healthcare services; they will be distributed in major health care seminars and occasions where officials from Health Plus will participate.

Operational plan

Service Execution Timeline:

Sandton Fitness Center will observe this service execution unit to enter in the health club market. General trainer payroll and possibly provide our members with online scheduling, sign up, bill payment and even more. Establishing and preserving membership opportunities is essential to owning successful organization and our business may have every month specials or different membership level in order to maximize sales.

Our online registration program allows family members to complete registration 34/7 from any net linked computer. We created tailor made club sign-up varieties and website., process virtually all types of repayment, manage room to prevent and reservations, develop name badges, car sent reminder e-mails and mange our users over complete reports.

Business Location

Sandton Fitness Centre and Wonder Spar is situated in Nelson Mandela Square at Sandton city, is merely 25km from Johannesburg international airport









Choosing location

Website development

Hiring, training and admin staff


Opening of health club


Sandton Fitness Center will start its business in main street spot of Coral Gables; there can be occurrence of already established well being clubs such as for example Gold’s Health club and Coral Gables Adventure

Boot camp.

Legal Environment:

There will be no current legal obligations for Exercise Plus health and fitness center.


Fitness Plus begins with a total of 10 initial staff members that includes owners aswell.

Facilities and Equipment

Fitness Centre offers a sizable selection of equipment:

Treadmills (20)

Bicycles (10)



Body trek

Cross aerobic trainer



Sandton Fitness Center will provide following health related services:






Muscle Training

Diabetes & Obesity Control

Beauty treatments eg. massages, pedicures, manicures, facials

Benefits and Features:

State of the art facility with latest tools from quality manufacturers

Low cost with every month, quarterly and annual subscription plans.

Personal qualified trainers to greatly help our members attaining results without wasting very much time

Why persons need this service?

Health care and health club market in around South Africa have already been serving to a high income segment lately. Average income of health club member is R 50000 by 2006 survey.

This leaves a big segment of low-income consumers with unmet needs. Exercise Plus will mainly exist to provide health care facility to the low income class without compromising on top quality of service.


Fitness Plus will face a challenging situation in creating its brand image and attracting clients towards their services due to presence of currently established players in the neighborhood market such as for example:

Virgin Active

Planet Fitness


Financial Plan

Sources of Capital

Investment requirement R5, 000,000

Total Investment R5, 000,000

Startup Expenses

Health club expansion R1, 000, 000

Personnel R290, 000

Capital Expenditures R500, 000

Consulting Services R100, 000

Promotion R60, 000

Total Start-up Expenses R1, 950, 000

Our company, Sandton Fitness Center will meet capital needs by talking to various money sources.

These sources will include family members, banks, venture capitalist, and personal cost savings. We hope to obtain R5 million before we actually get started our venture. By the 1st year we will be shedding R2.4 million with an expected 1,000 members. By the second year we will have double our member to 2,000 and have a combined lack of R25 around 2.4 million like the initial years losses. By the third year with 3,000 participants, we will display a revenue of R1 million. We trust by explaining this outlook to investors they’ll be convinced of our genuine venture. Also by displaying our belief in the company we each will commit R250,000. We project receiving R3 million from venture capitalist and the rest of the money from a mortgage that would be paid off by the fifth 12 months of operation.

Pro forma Income Stament

Projected Income

Sandton Fitness Center

Income Statement







R 2,520.000



Net sales





Gross Profit 0

R 1,077,520

R 1,267,521

Operating Expenses

Payroll expense

R551, 000.00

R551, 000

R 551,000

R 551,000

Payroll tax expense

R38, 570.00


R 38,570,

R 38,570

Bad debts expense

R194, 500.00

R194, 500.00

R194, 500.00

R194, 500.00

Promotional Expense

R62, 009.95

R62, 009.95

R62, 009.95

R62, 009.95

Office supplies expense

R220, 000.00

R220, 000.00

R220, 000.00

R220, 000.00

Utilities expense

R120, 000.00

R120, 000.00

R120, 000.00

R120, 000.00

Insurance expense

R200, 000.00

R200, 000.00

R200, 000.00

R200, 000.00

In-club entertainment

R1, 000.00

R1, 000.00

R1, 000.00

R1, 000.00

Lease charges for building

R1, 200,000.00

R1, 200,000.00

R1, 200,000.00

R1, 200,000.00

Depreciation expense,

office equipment

R15, 400.00

R15, 400.00

R15, 400.00

R15, 400.00

Maintenance and repairs


R50, 000.00

R50, 000.00

R50, 000.00

R50, 000.00

Miscellaneous selling


R50, 000.00

R50, 000.00

R50, 000.00

R50, 000.00





Other Expenses

Building of pool

R110, 000.00

Building of basketball


R350, 000.00

Building of tennis courts

R75, 000.00

Building of track and indoor

soccer field

R370, 000.00

Spa features

R120, 000.00


Net Income

R 2,467,479.95

Projected Balance sheet

Year 2009

Year 2010



Non-current assets

Intangible assets

Tangible assets


Taxation recoverable











Current Assets


Amount receivable (debtors)

Six-month deposits

Cash and cash equivalents










Current liabilities

Amount payable(creditors)

Bank overdraft

Net current assets

Total assets not as much current liabilities











Non-current liabilities

Amount payable (creditors)

Bank and other borrowings


Net assets









Capital and reserves

Shareholders’ funds



Pro forma Income Flows (3-Year)


Year 1 Year 2 Year3

Cash Received

Cash from Operations

Cash Sales R1, 230,000 R4, 940,000 R14,751,000

Cash from Receivables R0 R0 R0

Subtotal Cash from Procedures R1,230,000 R4,940,000 R14,751,000

Additional Cash Received

New Borrowing R1,000,000 R0 R0

New Additional Liabilities (interest-free) $ 0 R0 R0

New Long-term Liabilities R0 R0 R0

Sales of Additional Current Property R0 R0 R0

Sales of Long-term Possessions $ 0 R0 R0

New Investment Received R0 R0 R0

Subtotal Income Received R2,230,000 R4,940,000 R14,751,000


Expenditures from Operations

Personnel R290, 000 R840,000 R940,000

Consulting Services R90, 000 R480,000 R480,000

Promotion R5,000 R6,000 R6,000

Subtotal Spent on Procedures R385,000 R1,326,000 R1,426,000

Additional Cash Spent

Taxes R32,290 R338,580 R1,302,500

Principal Repayment of Current

Borrowing R0 R0 R0

Other Liabilities Principal Repayment R0 R0 R0

Long-term Liabilities Principal Repayment R0 R0 R0

Purchase Other Current Possessions R0 R0 R0

Purchase Long-term Assets R810,000 R810,000 R1,345,000

Dividends R0 R0 R0

Subtotal Income Spent R1,227,290 R2,474,580 R4,073,500

Net Cash Flow R1,002,710 R2,465,420 R10,677,500

Cash Balance R1,012,710 R3,478,130 R14,155,630


Through the plan that people have outlined we think confident that although an extremely intricate and complex process to start and operate such a company, we are able to accomplish such an ambitious endeavor. We’ve analyzed the marketplace, covered expenses, visualized a goal, and planned consequently. Our company would be a sound investment because possessions and security would insure re-repayment and realistic projections allow for error if they are needed. To be reasonable, we cannot guarantee a success, but as the proverb will go, "A hero is one who knows how to hold on one minute longer" and this is the entrepreneurial spirit that people will carry throughout the life of our health and fitness center.

I do often have at least one fact that fires me up I hear a woman is having to visit here go feed her boyfriend’s dogs while he’s in jail