Diploma presentation “Improvement of pricing policy”
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Transcript of Diploma presentation “Improvement of pricing policy”
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
New goods
Cream compilation
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
Goods that sales as a traditional
Flexible pricing
Posh prices
The strategy of lowering prices for complementary goods
Long prices strategy
ECONOMICAL ACTIVITY OF FITNESS CENTER “ENERGY FIT”
56%32%
4%8%
Group lessons
Gym
Dietologist consulting
Massage
FITNESS CENTER STRUCTURE
Teaching staff Administratio
n
Service staff Technical
staff
Educational
work with
clients
Householding Providing
throughput
abilities of fitness
club
Care about
building,
equipment,
trainers
The
development of
new effective
programs
Managment Information
coordination
Fixing
Implementati
on of
pedagogical
control
Marketing Tools for quality
of service
Technical care
MARKET SHARES ON FITNESS IN DNIPROPETROVSK
Sport Li fe; 21%
Djaypour; 12%
Aquatory; 11%Vivat; 8%Energy Fi t; 11%
Flex; 6%Virsavia; 6%
Voskhod; 13%
Sport Life Djaypour Aquatory Vivat Energy Fit Flex Virsavia Voskhod
SWOT ANALYSISStrengths
A lot of space Modern equipment Ability to do martial arts Parking zone Affordable prices Fitness experience High quality service
Weaknesses Rooms does not meet fitness center standarts Expensive rent Strong competitors Weak creativity Not first lessons for free
Opportunities 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
Threats 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
ENERGY FIT GYM PRICES IN COMPARISON TO OTHER FITNESS CENTERS IN NOVOMOSKOVSK
Morning Day Maximum Single class0
50
100
150
200
250
300
350
Energy Fit 4Friends Super Body
UA
H
20% PRICE INCREASE
Morning Day Maximum Single class0
50
100
150
200
250
300
350
Energy Fit 4Friends Super Body
UA
H
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: 30Price: 400 UAH per monthIncome: 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 ATTENTIONHAVE A NICE DAY