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Year Expected Profitability (£)
Year 1 400,000
Year 2 2,500,000
Year 3 10,500,00




1.1 Background

Fitness Plus Gym & Health Club is located in Cambridge, London. It is a family business enterprise that was established in December 2008 by Steve Homes and David Foster. The firm provides quality and affordable fitness and health care services. The choice of Fitness Plus Gym & Health Club being located in London was founded on the high demand for health and fitness services among the students and the working class.

1.2 Mission, Objectives, and Goals

The objectives, missions, and goals of Fitness Plus Gym & Health Club are:


  • Promote good health and fitness for our clients.
  • Create awareness on healthy lifestyle.
  • To promote training programs and strategies related to fitness and health care.


  • To become the preferred health and fitness centre in London over the next three years.


  • Increase the Gym membership by 20% within the next two years.

1.3 Products and Services

Fitness Plus Gym & Health Club provides the following health and fitness related services: Aerobics, Boxing, Muscle Training, Pilates, Cycling, Diabetes and Obesity Control. These services will be individually offered at relatively cheaper cost purposely to meet clients’ fitness and health expectations. Besides, Fitness Plus Gym & Health Club offers fitness classes, weight reduction programs, childcare services, and exercise equipment. Fitness Plus Gym & Health Club employ professionally trained staff who helps our clients with personal training programs for their fitness. Other selected services (Bio-mechanically body services) include Treadmills, Steppers, Stairmaster, Rower, Stepmills, Bodytrek, and Gravitron.

1.4 Suppliers

The main supplier of aerobic training kits and fitness equipment for the Gym is Davidson & Co. The choice of the supplier is founded on the costs and prices. Secondly, the geographical location and proximity of the supplier to Fitness Plus Gym & Health Club is a factor taken into account.

1.5 Agreement and Ownership Structure

This being a family business, its ownership rests with the family members. Therefore, it takes the form of partnership agreement. Some of the primary agreements include limited partner’s liability, proportional profit and loss sharing, and equal responsibility.

1.6 Legal Considerations

Being a limited partnership, Fitness Plus Gym & Health Club is registered with London Secretarial State. For this reason, the business enterprise complies with the legal statutes governing health and fitness business operations. In addition, the legal considerations for Fitness Plus Gym & Health Club are enforceable by law in accordance with the contract laws.


2.1 Potential Customers

Fitness Plus Gym & Health club targets both men and women mainly in London. Besides, other groups targeted include children and college students. The choice of these groups of customers is reflected in the income differences between these groups. The potential customers of the business that the business target are the medium and low-income earners who are not able to afford other expensive health and fitness centers within the region. Secondly, children have often been excluded from gym services are other potential customers of Fitness Plus Gym & Health Club.

2.2 Geographical Area

The Fitness Plus Gym & Health Club is located in Cambridge, London. The choice of Cambridge is based on the favorable demographic statistics within the locality. The city has a fast-growing population with the limited number of health and fitness facility centers to serve the growing demand. Therefore, by opting to locate Fitness Plus Gym & Health Club in Cambridge, the club stands better chances of recording positive returns on the investments.

2.3 Business Competitors

Fitness Plus Gym & Health Club operates in one of the highly competitive industries in London given that there are no entry or exit restrictions. Fitness Plus Gym & Health Club, therefore, faces stiff competition from well-established gym and fitness services such as Avenue Group Gymnasium, Coral Fitters Club, among other clubs. Since these services and products are identical, clubs do not compete in output but rather in other aspects such as competition like pricing and product/service differentiation. Other potential competitors in London include learning and sporting institutions that offer health and fitness services to their members. Such institutions therefore reduce the number of potential clients to Fitness Plus Gym & Health Club.


Marketing strategy is the key to the success of the Club. Therefore, Fitness Plus Gym & Health Club must adopt those strategies that are realistic and achievable both in the long-term and short-term. These covers pricing, costing, sales, and marketing plan.

3.1 Costing and Pricing

Since gym and health fitness business operates in a perfectly competitive market characterized by large number of service and product providers, many consumers, information symmetry, and product or service homogeneity, pricing and costing are very important aspects of marketing strategy. To remain competitive and survive Fitness Plus Gym & Health Club practices price discrimination. The Club charges different prices for its services depending on the ability to pay of its clients. For instance, low-income customers (mainly children and students) contribute less monthly subscription fees of about £50. However, this monthly subscription is not fixed as the management of the Club allows adjustable rates for a special category of clients having health and fitness-related complications. With respect to cost, the management of Fitness Plus Gym & Health Club emphasizes on cost minimization principle. Under this operating policy, the Club incurs only necessary expenditures. The cost-cutting is practiced by the Club in all its operational units to ensure that the club incurs minimal expenses.

3.2 Sales Projection

Being a young health and fitness club in the industry, Fitness Plus Gym & Health Club will report lower sales projection during its infant stages of operation. However, as the club continues with its operations, it is expected that the club’s sales revenue will increase during the second and third year of operations.  Over a three-year period, Fitness Plus Gym & Health Club sales and revenue projection are as follows:


3.3 Marketing Plan

The club aims at offering unique fitness services especially focusing on helping the loyal and potential customers attain the value for their money and time spent in the gym. Through intense marketing and promotional efforts, the organization plan provides for extensive awareness creation of the importance of health fitness. Proper dieting, enhanced flexibility, and many other quality services offered in the gym are very important for health. To do this, the plan provides for discount to customers, free usage for promising customers for a week, direct promotions through internet marketing, face-to-face promotions, and distributions of leaflets and burners listing all the quality services at the gym.

3.4 Competitive Edge

The main competitive advantage that Fitness Plus Gym & Health Club has over its competitors is the perfect environment created within its facilities. This environment makes the clients feel comfortable and relaxed while within these facilities. In addition, Fitness Plus Gym & Health is the only health and fitness club in London that has designed childcare center visible from the workout floor. This specialized feature makes it possible for women to watch over their children play.


4.1 Operational Functions

Marketing Department: This department is charged with the responsibility of marketing and promoting the products and services of Fitness Plus Gym & Health Club. The department is therefore very important for the success of the club as it determines the profitability index of the club through membership. The marketing department is also response for building a positive image and branding of the club among the public.

Human Resource Management: This department handles the human capacity and resources of the Fitness Plus Club. The HRM is, therefore, the mainly functional unit of the club given that it is responsible for managing employees, trainers, advisors, and the rest of the staff. This department’s primary responsibilities include; hiring and firing, determining the compensation packages for employees in different capacities, motivating the workers, promoting and demoting employees, and determining the optimal human capacity of the club.

Training and Fitness Department: This is the engine of Fitness Plus Gym & Health Club. The department offers the services and products that the club specializes in. Therefore, the success of the club rides behind the training and fitness department. It is the quality of the services and products offered by the training and fitness department that lead to clients’ satisfaction. Experienced professional in sports science who ensures that customers receive quality and professional services and products heads the department.

4.2 Services Offered & Benefits

Benefits: Low monthly and annual subscription costs and a state of art facility fitted with latest health and fitness facilities.

Services: Fitness Consultation, Home Workouts, Fitness Equipments, Adventure BootCamp, Personal Training, Intense 30 Minutes, and 30 Day Makeover. Other services include Treadmills, Steppers, Stairmaster, Rower, Stepmills, Bodytrek, and Gravitron.

4.3 Personnel and Management

A tactical team in with management techniques is included in the marketing operations in the new venture.  The management plans to employ a pool of efficient employees with professional and technical experience in health, fitness, and sports science managements. Their backgrounds and productivity are key to the success of the Club. The club also plans to hire integral team of human resource management experts to help in managing human resource of the club. More importantly, the business plans to employ efficient consultants energized by highly motivated directors and advisors on matters pertaining to the management of the organizations and gym products and public relations. Considering the organizational structure of the club, all the stakeholders (employees, directors, managers, and advisors) takes part in decision-making process in order to create management cohesiveness and motivation of the employees.

Advisor: Royal Athletics Club and Wellness Center offer advisory services to Fitness Plus Gym & Health Club.


5.1 Revenue Projection


5.2 Expenses Estimates

5.3 Financial Projections



Altstiel, Tom, and Jean Grow, 2006. Advertising Strategy: Creative Tactics from the Outside/in. Thousand Oaks, Calif: Sage Publications.

Chase, Charles, 2012. Demand-driven Forecasting: A Structured Approach to Forecasting. McGraw.

Crum, Colleen, and George, 2013. Palmatier. Demand Management Best Practices: Process, Principles, and Collaboration. Boca Raton, Fla: J. Ross Pub.

Meehan, Julie, 2011. Pricing and Profitability Management: A Practical Guide for Business Leaders. Hoboken, NJ: Wiley.

Stahlberg, Markus, and Ville Maila, 2012. Shopper Marketing: How to Increase Purchase Decisions at the Point of Sale. London: Kogan Page.

Webb, Michael, and Tom Gorman, 2006. Sales and Marketing the Six Sigma Way. Chicago, IL: Kaplan Pub.


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