SWOT ANALYSIS & REPORT

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MKTG1012Continuing Case Assignment

This continuing case will be completed in three (3) sections worth 5% each (15% total). These sections will occur
near the end of each module in the course. Students will work in groups of 2 or 3 students to complete this
assignment.

For each section, you will be asked to apply your knowledge gathered from the course towards the assigned
case. Upon completion of the 3 sections, you will have in essence created a basic marketing plan.

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Submit your completed sections to the FOL Submissions page by the deadlines shown in the weekly schedule.
Late projects will be subject to a late penalty of 30% per day to a maximum of one day, after which projects will
not be accepted. Only one submission per group is required.

Attached is Marketing case study for a (fictitious) new martial arts gym starting up in London, ON. Projects will be
graded based on completeness of answers and overall clarity and professionalism. Projects should use 1 ½ line
spacing, with a 12 pt. font and should include a cover page with the full names of all contributing group
members. Answers to the sections should be numbered and delivered in the order presented. Where
appropriate, outside research is required to answer the question properly. Students who do not provide value-
added research will not be graded favorably.

All outside sources of information must be properly cited using APA format, including a References page.
Students not familiar with the use of APA to cite sources should see the “Academic and Writing Resources”
section of the FOL course site for reference material. Accurate spelling, grammar, language, and wording are
evaluated so please proof read your work before submission.

Continuing Case Study Grading Scheme:

Item Met Partially Met Developing Lacking

Demonstrated critical thinking
and ability to apply course
concepts. Accuracy of
responses. Quality of research
and support.

7

5

3

1

Well written, clear
organization, proper grammar,
no spelling errors. Proper
sourcing and citations.

3

2

1

0

A NEW MIXED MARTIAL ARTS GYM IN LONDON, ONTARIO

Liz Gray prepared this case solely to provide material for class purposes. The author does not intent to illustrate
either effective or ineffective handling of a managerial situation. The author may have disguised names and other
information to protect confidentiality.

Estevan Lara put his feet up on his desk and leaned back in his chair. “What a year!” he thought to himself. Lara

had recently been crowned champion in his weight class at the World Jiu-Jitsu No-Gi Championship hosted by the

International Brazilian Jiu-Jitsu Federation. This win was the encouragement he needed to fulfill his lifelong

dream to open a mixed martial arts (MMA) gym and training facility in his hometown of London, Ontario. There

was no time to waste. The sport’s popularity had exploded in the last 5 years and he planned to capitalize on it.

At the same time, he knew there was a lot of work to do. He would need to determine his target market, pricing,

product offering, location, and integrated marketing communications plan. He knew a detailed market and

competitive analysis was in order as well as an honest look at his internal strengths and weaknesses and external

opportunities and threats that might impact his ability to succeed. He picked up his pencil and began his new

adventure.

Mixed Martial Arts

“Mixed martial arts (MMA) is a full contact combat sport that allows a wide variety of fighting techniques and

skills, from a mixture of martial arts and non-martial arts traditions including karate, jiu-jitsu, boxing, kickboxing,

wrestling, judo and muay thai. The rules allow the use of both striking as well as grappling techniques, both while

standing and on the ground. MMA competitions allow martial artists of different backgrounds to compete.

Originally promoted as a competition with the intention of finding the most effective martial arts for real unarmed

combat situations, competitors were pitted against one another with minimal rules. Later promoters adopted

many additional rules aimed at increasing safety for competitors and to promote mainstream acceptance of the

sport.

MMA competitions were introduced in the United States with the first Ultimate Fighting Championship (UFC) in

1993. The International Sport Combat Federation (ISCF) was created in May 1999 as the world’s first MMA

sanctioning body. This ushered in a new era of MMA where it is once again recognized as a true sport worldwide.

This was aided by certified officials and well developed rules.

In November 2005 recognition of its effectiveness as a test came as the United States Army began to sanction

mixed martial arts with the first annual Army Combatives Championships held by the US Army Combatives

School.”1

The sport, known by many for its brutality, exploded into main stream media in 2006 and official UFC matches are

held at least once a month. “The UFC had already broken the pay-per-view industry’s all-time records for a single

year of business, generating over $222,766,000 in revenue in 2006, surpassing both WWE and boxing.”2

Professional MMA competitions are legal in most US states. In Canada, they are banned in the province of

Saskatchewan and in some cities in Alberta. They were legalized in Ontario in 2010. To many, MMA competition

is considered to be brutal in nature – a sport without rules but it is quickly becoming more widely accepted as a

sanctioned sport and an exceptional way to condition the body and stay active.

Cardiovascular conditioning, speed drills, strength training and flexibility are important aspects of MMA training

and, while it was initially practiced almost exclusively by competitive fighters, this is no longer the case. As the

sport has become more mainstream and more widely taught, it has become accessible to wider range of

practitioners of all ages. Proponents of this sort of training argue that it is safe for anyone, of any age, with varying

levels of competitiveness.

The Competition

In 2008, 3 professional MMA fighters opened the first MMA training facility and gym in London, Ontario –

Adrenaline MMA. Mark “The Machine” Hominick, Chris “The Polish Hammer” Horodecki, and Sam “Hands of

Stone” Stout all fight professionally in the UFC and hail from London and the surrounding area. Each fighter trains

at Adrenaline and offers personal training sessions to clients. Clients pay a monthly fee of $803 for full access to

the gym’s equipment and unlimited classes including kickboxing, jiu-jitsu for MMA, wrestling for MMA, yoga,

pilates, boxing and strength & conditioning. Personal training sessions are an additional cost charged by the hour

and vary by instructor. The gym is located on Dundas St. west of Clarke Rd. The gym is about 5 km from

Fanshawe College (20-30 min bus ride) and about 15 km from the University of Western Ontario (45-60 min bus

ride). Fight Planet, a MMA apparel and gear retailer, leases a small area of square footage inside the gym. They

are the only MMA retail outlet in London.

1 Source: Wikipedia
2 Ibid
3 There are no upfront fees charged and no minimum commitment is necessary.

GoodLife Fitness has 11 clubs (with 15 when you incorporate St. Thomas, Stratford and Strathroy) in London and

over 275 locations across Canada. Some locations in London offer co-ed facilities (with women only sections) and

others are for women only. Women-only facilities are all located on the upper level of Loblaws and Real Canadian

Superstore locations in London. GoodLife offers a wide variety of classes and amenities including childcare,

massage therapy, and personal training – all at an additional cost. Monthly memberships start at $50/month with

an enrollment fee.

There are two Athletic Club locations in London on the west side of the city. Membership rates are similar to

those at GoodLife. The south Athletic Club has a pool while the north location does not.

There are a few YMCA facilities in London and in November 2010, the largest YMCA in Ontario will open at

Sunningdale & Adelaide. This facility will boast an Olympic size pool, warm pool with moveable floor, and state-

of-the-art cardio equipment with built-in televisions. Family memberships for four start at $90 for the month with

no enrollment fee and a one-year commitment. Childcare is extensive with excellent programming offered at no

additional cost to the membership holder.

There are several small independent boxing, kickboxing, karate and jiu-jitsu facilities in London as well.

The Market

The market for a gym/workout facility can be broken into five groups.

The Health Nut

This group is dedicated to making healthy choices. They understand the importance of cardiovascular exercise to

maintaining their health and longevity. They are generally between the ages of 30 and 55, with or without

children. They frequent the gym about 3-4 times per week (2/3 times during the week and once on the weekend),

spending 1-1.5 hours there at each visit. They use free weights, cardio machinery and attend classes. They are

heavy users of personal training services. They have mid to high income levels and are willing to pay a premium

to belong to a club that will help them achieve their personal goals, fits their schedule and is convenient. They

have full-time jobs within the city of London. They demand a clean environment, the latest equipment, and

knowledgeable/helpful staff. They are extremely active and participate in marathons, triathlons, and a variety of

recreational sports.

The Buff Body

This group is dedicated to looking great. They are heavy users of gym and training facilities (4-6 times a week).

They often have a gym membership and also frequent other facilities like yoga/pilates studios and swimming

pools to get specialized conditioning where needed. They are generally under the age of 40 without children.

They are heavy users of free weights and cardio equipment. They are very knowledgeable when it comes to

fitness and generally don’t purchase personal training services from generic gyms but would consider it at a

specialty facility. They like the social atmosphere at the gym and spend up to 2 hours at a time there.

The Casual Trainer

This group knows they need to go to the gym but they rarely get there. They continue to invest in memberships

and vow each year to make a bigger commitment but typically don’t follow through for an extended period of

time. Flexible hours, promotions and special programming/events can motivate them to attend with more

frequency. They attend classes sporadically, use cardio equipment and weight machinery. This group is always a

big revenue generator for a gym and they don’t create congestion because they are rarely there. This group feels

frustrated that they continue to pay for something they don’t use and continually evaluate more effective ways to

invest their fitness dollars.

The Senior Trainer

This group is 60+ yrs old. They have part-time jobs or are retired. They understand the importance of healthy

lifestyles but are not knowledgeable. They require a high level of customer service and a lot of instruction. They

frequent the gym during the week and enjoy taking advantage of off-peak times when there is lots of room to

move around. They are concerned about getting hurt while working out and generally air on the side of caution

and avoid aggressive training. They demand clean and bright facilities. They enjoy classes designed specifically

for seniors and use cardio equipment with the guidance of facility staff. They don’t like loud environments and

are generally not concerned about being entertained while they are at the gym.

The Do-It-Yourself Trainer

While this group does not have a gym membership, they do understand the importance of staying active. They

prefer to run and bike outside, they are engaged in recreational sports and they may have home gyms with cardio

and weight equipment. They will, from time to time, buy gym memberships but they are averse to making a

commitment and prefer flexible offerings. They do like to pay as they go to avoid disappointment. They are

generally 25-50 yrs old with full-time jobs and, in many cases, two or more children at home.

London, Ontario

The population of London, Ontario is 300,000 but each September that population grows by 40,000 as students

flock to the University of Western Ontario and Fanshawe College. London is considered by many to be a

conservative city. Roads are congested, particularly at peak hours, and the city lacks a major thoroughfare to

speed up east/west traffic across the middle of the city and north/south traffic on the west side of the city. There

is a general reluctance among residents to drive more than 15 km to get anywhere. While family residences are

scattered across the city, the west side of the city is home to a higher concentration of mid to high-income

households.

Potential Locations

Lara has investigated commercial real estate for lease in the city and has narrowed his options to four potential

locations for his gym.

Talbot & Oxford

There is a large warehouse including 8,500 sq feet of usable space at Talbot & Oxford – the former home of Rouge

nightclub. Rent is double the other three locations. This location is in central London, 5 mins from downtown, 10

mins from UWO, and 20 mins from Fanshawe on a direct bus route. The parking lot is very large with ample

parking for 80+ vehicles.

Exeter & Wonderland

There is a large commercial space (11,000 sq feet) available for lease. This location is close to the 401 but a good

distance from UWO and Fanshawe and would be very awkward to get to by bus. This location is just south of the

Athletic Club’s south location which always seems to be busy.

Medway & Richmond

Just northwest of the new YMCA and just north of Masonville Mall. You cannot take public transportation there.

The location is spacious (8,500 sq feet), clean and bright.

Clarke Rd & Huron

In an industrial area of London accessible by bus and within five minutes of Adrenaline MMA. Close to Fanshawe

but far from UWO. This location is smaller than the others (7,500 sq feet) and there is ample parking.

Estevan Lara

Lara grew up in Brazil and has trained and competed in jiu-jitsu, a MMA technique, since the age of 10. He

immigrated to London in 2001 with his family and continued to compete in international jui-jitsu events while

making make a modest living on competition winnings. He plans to finance the gym with a loan from the bank

and an inheritance from a recently deceased family member.

As Lara considered all of this information, he knew he had a big job ahead of him.

The Assignment

Module 1 Assignment:

Based on your review of the case, complete the following sections of a draft Marketing Plan for the new martial

arts gym. Maintain the section numbers and headings below. Include a report cover page listing the full names

of all contributing group members. This section of the report should be approximately 3-4 pages in length.

1.0 Mission Statement – craft a Mission Statement for the new gym.

2.0 SWOT Analysis – complete a SWOT analysis for the new gym with a view to the strategic implications for the

plan. Use information from the case and other sources including articles, Stats Canada, etc. For example, you

might like to research fitness participation rates in Canada.

3.0 Competitive Analysis– look at other gyms in the London market and choose two primary competitors. List

your competitors’ strengths and weaknesses and indicate how these attributes will impact your plan.

Consider the marketing mix for each competitor. In addition to case information, you are expected to

research your competitors online to gather additional data about their programming, hours of operation, etc.

Do not contact any firm by phone or email.

  • MKTG1012 Continuing Case Assignment
  • This continuing case will be completed in three (3) sections worth 5% each (15% total). These sections will occur near the end of each module in the course. Students will work in groups of 2 or 3 students to complete this assignment.
    For each section, you will be asked to apply your knowledge gathered from the course towards the assigned case. Upon completion of the 3 sections, you will have in essence created a basic marketing plan.
    Submit your completed sections to the FOL Submissions page by the deadlines shown in the weekly schedule. Late projects will be subject to a late penalty of 30% per day to a maximum of one day, after which projects will not be accepted. Only one subm…

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