3D FITNESS: IMC REPORT

“Live in 3D”

By Andrea Busiko (13011104), Taylor Marsh (12468818),

Julia Zanella (13025780) & Patrizia Coric (12862457)

BX2082-TSV-INT Integrated Marketing Communications

Lecturer - Tracey Mahony

James Cook University - School of Business

Due Date - 25/10/2015

Table of Contents Page/s

Executive Summary ii1. Introduction 12. Situation Analysis 13. Identification of Target Market/s 2-44. Determination of IMC Objectives 4-55. Creative Approach and Message Strategy 5-86. IMC Options 8-12

6.1 Advertising 8-96.2 Public Relations 9-106.3 Direct Marketing 10-116.4 Personal Selling 116.5 Interactive and Digital Marketing 116.6 Sales Promotion 11-12

7. Recommendation for IMC Plan 12-207.1 Recommendations 12-17

7.1.1 Advertising 12-147.1.2 Direct Marketing 147.1.3 Personal Selling 14-157.1.4 Interactive and Digital Marketing 157.1.5 Sales Promotion 167.1.6 Public Relations 16

7.2 Budgeting 17-187.3 Scheduling 19

8. Monitoring and Evaluation of the Program 19-219. Conclusion 21Reference List 22List of Tables

Table 1. SWOT Analysis 1Table 2. Market Segmentation 2Table 3. Location Specific Statistics 4Table 4. IMC Budget 18Table 5. Gantt chart for 3D Fitness IMC Schedule 19

List of FiguresFigure 1. Logo and Branding Designs 6Figure 2. Budget Dispersion 18

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Executive Summary

The following Integrated Marketing Communications Plan provides details of the proposed

IMC program to be implemented by an upcoming chain of fitness centres: 3D Fitness.

A SWOT analysis has highlighted that while the gym, salon and café offer unique selling

points for 3D, efforts will be required to achieve integration and commonality between the

services. The owners’ experience within the industry will be a strength in overcoming

difficulties in maintaining brand identity and standards across the locations. These densely

populated areas have the potential to generate a large reach for marketing efforts, however,

the effectiveness of campaigns are threatened by noise attributable to many other fierce

competitors.

A differentiated segmentation approach has been chosen to satisfy the needs of three

segments within the target market. The three segments are dubbed as: Desire, Determination

and Dedication. The Desire segment focuses on females and homemakers, the Determination

segment targets business professionals and the Dedication group consists of fitness

enthusiasts.

The main IMC objectives for 3D are to create brand identity and awareness amongst 70% of

each market segment; achieve a social media presence with 20,000 Facebook likes, Twitter

and Instagram followers and secure 20,000 memberships. “3D Fitness” has been chosen as

the business name along with “3D Revive” and “3D Refuel” as names for the salon and cafe,

respectively. Resonance, emotional appeals and slice-of-life advertising have been chosen to

form the message strategy for the IMC campaign.

The major IMC initiatives established were brand ambassadors, social media accounts, a 3D

smartphone application, radio, print and TV advertising and marketing events including

launch week and “guerrilla workouts”. Surveys, recall tests and focus groups will give insight

into public understanding, recognition and attitudes of 3D. The number of sign ups, social

media followers and percentage of the market share will give insight into the effectives of the

IMC initiatives in reaching the objectives.

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1. Introduction

An ambitious Nigel Ratcliffe and Naomi Gibbs have decided to launch their new fitness

chain starting in 5 locations in Sydney. Each location will have 24/7 access to the gym

facilities in the suburban areas and extended hours for the city. The fitness centres will also

include a café and salon. Data obtained from the Australian Bureau of Statistics, advertising

firms and journal articles have been used to develop an IMC plan for the new chain over the

next 15 months. The disposable budget left to implement such strategies is $2.04 million,

however, the listed expenses are limited to approximations. This report will detail the

situational analysis, identification of target markets, IMC objectives, message strategy, IMC

options, recommended IMC initiatives, evaluation and conclusion.

2. Situation AnalysisTable 1. SWOT Analysis

Strengths (Internal) Internal publics (Owners) have prior knowledge of, and recognition within, the industry Cafe' and Health and Beauty Salons conjoined with Gym offer a unique point of difference Widespread coverage of Sydney's city and key suburbs with proximity to business and

transportations hubs Leasing cardio machines through a supplier ensures up-to-date equipment, economically Offerings of "5 key areas" (cardio fitness, gym equipment, free weights, aerobic exercise and a

stretching room) helps to cover competitive industry offerings Large gyms with fitness centres fitting roughly 140+ consumers at any given time Change rooms and crèche offerings provide comfort and ease to consumers - helps to attract

business professionals and parentsWeakness (Internal)

Perceived risk with leasing cardio machines through a supplier in regards to reliability Efforts required for developing and maintaining brand identity and standards across all

locations Efforts required to maintain integration and commonality between the three businesses

(Gym/Salon/Cafe)Opportunities (External)

Large potential for target publics - Over 4 million Australians participate in fitness industry activities (Australian Fitness Industry Report 2012)

Fast industry growth with expectation of growth continuation Awareness raising with store fronts and campaigns in targeted suburbs Lack of ‘high class/luxury’ gym competitors Location offers plenty of marketing opportunities due to accessibility and population

Threats (External) Diverse industry offerings /flooded market contributing to noise and clutter Major competitors (Anytime Fitness) have locations open 24/7 within the same areas NSW had the lowest increase in demand country-wide for 2012 within the fitness industry Many different competitors holding large market share in different suburbs

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3. Identification of Target Market/s

Due to the highly competitive industry, extensive range of existing competitors, various store

locations and the wide diversity of potential consumers; a differentiated segmentation

approach has been chosen to appeal to the majority of the market. This approach will increase

the opportunity for 3D to satisfy the needs of various groups and to develop and maintain a

strong position in the industry (Belch, Belch, Ker & Powell, 2014). To do so, the market has

been segmented into three specific sections, as shown in Table 2 below.

Table 2. Market Segmentation

Determination(Busy Professional) Desire (Seasonal)

Dedication(Gym Junkies)

Geographic Primarily city, suburban after business hours Primarily suburban Primarily CBD and Bondi

       DemographicAge 24-45 21-45 20-35

Income Moderate - High High (willing to purchase premium products despite only moderate use) Moderate - High

Occupation Full-time professional Casual, part-time, student, stay at home parents

Casual or part-time workers, or full-time employees within the fitness

industry      Psychographic

Social class Middle - Upper Upper middle class Working - Upper

Lifestyle Active, busy, organised, structured

Focused on image and social orientation, balanced lifestyle (not

heavily focuses on fitness)

Focused on image; value health and fitness, allocates substantial time and

money to achieve goals

Personality

Driven, determined, organised, career-focused, overachievers, disciplined,

goal orientation

Relaxed, social, daily routine, materialistic, image-based,

superficial, self-orientated, bravado,

Intense, competitive, motivated, disciplined, superficial, bravado, self-

centred, narcissistic

       Behavioural

BenefitsAccessible and convenient

location, flexible hours, quick services (cafe), networking

Social aspects and leisure of cafe and salon, classes with reputable

instructors, personal trainers; crèche services

State of the art equipment, tan and muscle therapy, personal trainer access (share of knowledge and

experience)

User status Moderate yet consistent users Seasonal light to moderate users Heavy and habitual users

Attitude towards product

Positive to indifferent; (stress release or seen as another task

to complete)Positive Enthusiastic

As outlined, the three target markets have specific psychographic and behavioural tendencies

by which the market is segmented. Firstly, the Determination segment encompasses busy

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business professionals, who are driven, career-focused members who are consistent users as

they see a workout as another task they must complete during their day-to-day life. This

group values convenience to assist their busy lifestyle, thus, features such as flexible hours,

convenient locations and quick-service cafes would be promoted to this group to educate

them of the extra value 3D can add to their gym experience.

Secondly, the Desire category encompasses members who are social and digital-savvy light

to moderate users, who are not overly driven to work out and hold high importance on their

physical appearance rather than the health benefits of working out. Therefore, the social

atmosphere of the cafe, services provided at the salon and specialised trainers and group

classes will be promoted to this group to satisfy their need to maintain their appearance, enjoy

leisure activities, meet new people, and be driven to work out.

Finally, the Dedication segment describes the heavy and habitual users who take their

workouts extremely seriously. Often described as ‘gym junkies’, this group includes highly

motivated members to professional body-builders and fitness competitors who are

enthusiastic about their daily workouts. Features promoted to this group will be the state-of-

the-art equipment, supplements and shakes at the cafe, tanning and massage services at the

salon and social aspect of meeting other users and professionals within the industry.

These three segments are all attractive to target and can be evaluated using a variety of

criteria (Rose, 2013). Firstly, segments are both homogenous and heterogeneous, with

consumers within each group being similar, but with each segment being distinctively

different from the remaining two. Groups are also actionable, responding differently to

communications promoting specific benefits included in Table 2, and measurable, through

the use of statistics, membership forms, general surveys and member databases to understand

how many members are in each section and what promotions have been most effective for

them. All segments are accessible, through various store locations and content able to be

targeted towards specific segments, either through physical promotions (for example,

Determination will be targeted in the city during the day, but in suburban settings after

business hours) and digital platforms through the use of individual hashtags. Finally, the

target markets are also substantial, being large enough to provide appropriate sales and

profitability. Ultimately, this strategy will ensure 3D remains all-inclusive to appeal to the

majority of the market, which is especially important for a new business entering a highly

competitive industry.

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Having a firm understanding of the market by geographic location can also provide specific

insights into different consumers wants and needs per location, as shown in Table 3 below.

The median ages and fairly high weekly household income of all geographic locations reflect

the proposed target market demographics, providing strong justification. These statistics also

assist in understanding the best location to effectively target each segment - for example, as

the CBD has the youngest median age with the least amount of people married, most

promotions in the city will be targeted towards the Determination and Dedication groups.

Furthermore, statistics indicate high diversity among the geographic locations, with high

percentages of households speaking Mandarin and Cantonese in a number of locations

(Australian Bureau of Statistics, 2011). Understanding these influences allows the business to

satisfy the majority of consumers’ specific needs and wants. For example, those business

locations with a large Mandarin-speaking population could provide added value by having

Mandarin translations and products in the cafe and salon to satisfy their specific

requirements. This ultimately displays a high level of consumer understanding, service

quality and differentiates 3D from competitors.

Table 3. Location Specific Statistics

Location Population Median Age

Median Weekly Household

Income

% of people married

Households where two or more languages are

spoken

Top language (other than

English)Bondi 8,660 35 $1634 35% 32.8% Russian, 2.8%CBD* 23,682 29 $1422 30% 61.9% Mandarin, 11.9%Parramatta 19,745 30 $1314 50.8% 69.4% Mandarin, 12.7%Chatswood 21,194 35 $1616 51.9% 58.7% Mandarin, 14%Hurtsville 26,040 32 $1137 51.6% 48.9% Mandarin, 26.7%(Australian Bureau of Statistics, 2011)*Listed under ‘Inner Sydney’ in the Census

4. Determination of the IMC Objectives

The proposed marketing communications program aims to build a positive brand image and a

strong level of brand awareness and identity amongst the target market. The main IMC

objectives to be achieved through this marketing plan are to acquire 20,000 members across

all five locations within the first 12 months of operation with 3000 acquired in the first

month. The suburban centres are to each acquire 3,500 members and the city based centre to

acquire 6,000 members. The financial objectives are for 3D Refuel to return a 15 per cent

profit margin and 3D Revive to return a 30 per cent profit margin. The advertising and

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promotional budget allocated to the first year amounts to $2.045 million after operating

expenses are accounted for, including: salaries, rent and equipment.

The communication objectives for the first operating year are:

1. Create a positive attitude and preference towards the 3D brand amongst 70% of the target

market.

2. Create brand awareness amongst 70% of each target market segment. Using a creative

message, repetitive advertising and high involvement events within the fitness community.

3. Create a distinctive brand identity that is recognisable by 70% of the target market and

differentiates the brand from competitors.

4. Create a dominant social media presence with a base target of 20,000 Facebook likes,

Twitter followers and Instagram followers. Using print and live media directing consumers to

social media links and creating interesting content with frequent hashtags that require user

involvement.

5. Successfully penetrate the market by gaining a 1% share of the Australian health and

fitness market by the end of the first operating year.

6. Stimulate new member accounts amounting to 20,000 members and converting 60% of all

casual visits to member status to ensure future profitability.

5. Creative Approach and Message Strategy

Having analysed the strategic triad of consumer, product, and competition, a clear and

concise message strategy has been developed to ensure all communications remain

consistent. Overall, 3D, along with the accompanying salon and cafe, will be positioned as a

state-of-the-art, high quality establishment that is highly inclusive, supportive and caters for

all members’ needs. 3D has been chosen as the business name because of its simplicity and

image-provoking catchiness, with the concept of being ‘3D’ evoking imagery of bodybuilders

and fitness athletes with three-dimensional muscles and other visual results. The use of ‘3D’

also holds sentimental value to the owners and represents the three target segments, along

with the promotional hashtags used to position them. 3D Revive and 3D Refuel are the

recommended names for the salon and cafe, respectively, which reinforce images of health,

wellbeing and strength. The slogan of “Live in 3D” will also be presented on all promotional

material, which complements the business name and features repetition to encourage

consumer memory and recall of the brand. Again, the concept of consumers ‘living in 3D’

connotes thoughts of gaining muscle, losing weight, and generally living life to the full by

being happy and healthy.

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Brand personality can also be used to further investigate how the business should be

positioned in the minds of consumers, by using a set of human characteristics to distinctly

describe the brand. Using the five dimensions of brand personality from J.L. Aasker, 3D can

be described on its level of sincerity, excitement, competence, sophistication and ruggedness

(Quester, Pettigrew, Kopanidis, Rao Hill & Hawkins (2014). 3D will be positioned to have

high levels of sincerity, competence and sophistication, as is it a professional, reliable

business that is serious about customer service and meeting the specific needs of all its

members. Housing up-to-date equipment, certified classes and personal trainers with the

knowledge to assist and guide members also boast a high degree of competence and

seriousness. The brand is exciting in terms of prestige and high-quality, especially with the

adjoining cafe and salon, however excitement and ruggedness dimensions are more

applicable to describe the exciting, tough and daring journey members will embark on to get

fit and healthy.

With regards to branding, a colour scheme of greys, blacks and light greens will reflect and

reinforce this professional image, with a simple, recognisable logo used on all promotional

content to increase brand awareness and recall, as shown in Figure 1 below. These colours

signify nature, health and freshness, which strongly complement the adjoining cafe and salon

to ensure consistency throughout the business. These colours and designs also differentiate

3D from competitors, with bright reds, yellows and oranges dominating the fitness industry.

This branding will appeal specifically to the target segments due to its simplicity,

professionalism, and minimalistic sans-serif design, which is popular among younger markets

due to leading brands such as Apple and Google.

Figure 1. Logo and Branding Designs

Furthermore, the IMC campaign aims at targeting the three individual segments with slightly

different techniques and content to provide the most appropriate information and incentives

for that group. The message structure will consist of one-sided messages, which will present

information to the target market with visuals rather than written and verbal information alone.

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The message strategy of resonance will be employed to strike a chord with the specific target

segments, as promotions will feature characters in situations they are familiar with (in an

office meeting, looking after children, playing sport, on social media) and then juxtaposing

that image with the character working out in a 3D establishment. In doing so, the campaign

allows the consumer to feel a sense of association, understanding and belongingness, as they

perceive 3D to understand them, their lifestyle and common situations they are involved in on

a daily basis (Belch et al., 2014). By providing a character the audience can identify with then

using the gym, the viewer is encouraged to imagine and can figuratively see their selves

doing the same. Being such a competitive market, it is believed that pre-emptive, positioning,

USP and brand image strategies alone will not be effective enough to capture the target

market, therefore resonance with affective appeals will be the most effective at targeting the

chosen segments.

In terms of advertising appeals, the campaign will mainly target emotional appeals of the

market to relate to their psychological and social needs of losing weight, to gain both self and

group acceptance. Specifically, consumers’ personal feelings of self-esteem, achievement,

accomplishment, ambition and pride will be targeted and associated with the brand, as they

achieve their personal fitness goals. Social-based influences also have a major impact as

consumers seek to gain feelings such as status, belonging, acceptance and group approval.

Through the use of emotional appeals and showing the consumer how 3D can become a part

of their lifestyle, viewers will believe that becoming a member will result in self-respect and

the respect of others. Rational appeals will be used to provide minimal information on

specific features of the gym, however studies show that positive moods created by advertising

can have favourable effects on how consumers perceive the brand, to the extent that

“emotional advertising is better remembered than non-emotional messages” (Belch et al.,

2014, p. 323).

Advertising executional techniques of imagery and slice-of-life will mainly be used to

resonate with the target segments and their affective needs. As mentioned above, visual

messages with relatable characters will allow the consumer to figuratively see their self using

the product, in a problem-solution type of setting as per slice-of-life techniques. Testimonials

and demonstrations will also be used to some extent, through trainer promotions and public

workouts, as mentioned later in Recommendations. Again, rational straight selling,

scientific / technical evidence and comparison techniques will not be used alone to promote

the product, as it cannot target the consumers’ affective and emotional needs which is a major

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aspect of gym membership purchases. Dramatization will also not be used, as 3D promotions

want the consumer themselves to be the hero of the advertisement, rather than the product

(Belch et al., 2014). Therefore, resonance, affective appeals and advertising executional

techniques of imagery and slice-of-life will be employed to ensure all promotions produce

one clearly-define theme to effectively target consumers and provide consistency between not

only the different channels but with the brand positioning and personality.

6. Integrated Marketing Communications Options

The below IMC options are considerations for 3D’s marketing communication program.

6.1 Advertising

Television: The concept for the television advertisements is to construct a story over four

separate advertisements. This gives 3D the opportunity to construct separate ads that appeal

to each segment and raise brand awareness over a large audience (Belch et al., 2014, pp. 42).

This channel may not be effective in reaching Millennials or those in the Determination

market as it is anticipated that both demographics are more involved with social media than

TV (ReelSEO, 2015).

Radio: In order to combat the reach issue in regards to the Determination segment, radio

advertising is considered a low-cost solution that allows more reach and frequency to target

the highly motivated businessmen and women demographic. Unlike TV, radio boasts a high

degree of audience selectivity, with broadcasting during morning and afternoon commutes

and midday lunch breaks likely to reach workers. Research reveals that not only do light TV

users devote significantly more time to radio than TV but also listeners usually fall within the

higher-income and education bracket (Belch et al., 2014, pp. 375-376). While radio will not

have the creative and visual appeals of TV, it is an effective means of reaching the

Determination segment where TV does not.

YouTube: Millennials fall within 3D’s target market section, especially in regards to

younger women in the Desire segment. Millennial women have the highest drop-off rate with

TV usage down by 10% with 96% of Millennials favouring online videos (ReelSEO, 2015).

This means that traditional TV advertising will not be as effective in reaching the younger

demographic. This exposes an opportunity for YouTube advertising. Through algorithms,

YouTube uses selectivity of age, gender, location and interests to enhance advertising reach.

This limits wastage by ensuring that the advertisements are only being aired to users that fall

within the target market. However, unlike TV ads being aired in real-time, the audience has

the option to “skip” ads on YouTube. This is compensated by the fact that YouTube only

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charges when a visitor watches the full advertisement (Klima & Klima, 2014).

Out-of-home Advertising: In Sydney, public transport is heavily relied on, especially in the

city. Adverts on bus shelters offer 24-hour exposure and high frequency as most people take

the same daily bus route. Despite the large reach, there will also be a lot of wastage from non-

potential customers (Belch et al., 2014, pp. 392-394). Overtime the ad could either lose its

effectiveness over the regular audience or evolve into a subliminal message that through

unconscious cognition makes viewers more aware and sensitive to references made about 3D.

Trademarked Automobiles: Another IMC option is to invest in vehicle wraps and signage.

Unlike the still bus shelters, the cars would act as mobile billboards that increase 3D’s touch

points with consumers and further raise brand awareness (Belch et al., 2014, pp. 392). It

would however be difficult to measure the effectiveness that the vehicle advertising has in

generating a response from consumers.

6.2 Public Relations

Donations: In an effort to build community acceptance, 3D could donate old gym equipment

to local schools. Although there is no tangible reward, 3D will circulate goodwill amongst the

community; useful for when potential consumers rely on reference groups to arrive at a

purchase decision (Belch et al., 2014, pp. 169). Mothers in the Desire segment may also feel

more inclined to join a gym that is actively engaged in their child’s education.

Sponsorship: A more tactical approach to community involvement is the sponsorship of

local sporting teams and events. While sponsorship involves cash contributions, it will

provide brand publicity and establish 3D’s presence within the community (Belch et al.,

2014, pp. 498-450). The association with professional and recreational sporting events

provides mutual benefit, as 3D is able to use the association to promote a brand image of both

elite performance and healthy living (Belch et al., 2014, pp. 46).

Marketing Events: To generate publicity, 3D can hold a volleyball competition. This not

only involves the community but also provides added value to customer service (Belch et al.,

2014, pp. 487). This marketing event will promote the message of activeness and wellbeing,

which is consistent with the brand image 3D is trying to establish.  There is an opportunity to

combine public relations with sales promotion by providing winning teams with coupons for

3D’s services such as 3D Revive and Refuel.

Guerrilla Marketing: Open and free fitness classes can be staged at various public locations

in an attempt to generate publicity, facilitate co-production and provide a value-added

customer service. Promotional products endorsed by 3D as well as coupons to the spa and the

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café could also be handed out to participants. This would involve extensive organisation and

cost in transporting and setting up equipment, however, combining public relations with sales

promotion will increase brand awareness, enhance consumers’ perceptions of 3D and recruit

customers who would otherwise not have considered joining (Belch et al., 2014, pp. 534).

This unique engagement with consumers will contribute to brand equity and facilitate brand

loyalty. Ultimately, onlookers and participants will have a high recall of 3D and a general

feel for the message it endorses (Belch et al., 2014, pp. 484-487).

Brand Ambassadors: While companies are frequently defined by logos and slogans,

consumers will form stronger relationships with real people. Brand ambassadors will bring a

face to 3D, and their presence on social media will hopefully form a following of like-minded

people (SocialHP, 2015). This sense of community will empower consumers through

aggregation (Belch et al., 2014, pp. 57). If three ambassadors align themselves with a specific

segment of the target market, consumers will identify with the ambassador that best

represents their views. When the consumer views their self being reflected within the brand,

they may feel more connected and personally involved with the organisation. This

subconscious connection humanizes 3D, builds trust and develops brand loyalty (SocialHP,

2015). There is however a risk that if ambassadors were to be negatively portrayed, 3D’s

reputation could also be damaged via association.

Health Expo: 3D could set up a stall at the Sydney Fitness and Health Expo in order to reach

the target market of fitness enthusiasts. There is a risk that the stall will be lost amongst the

noise of other competitors offering similar sale pitches, however, the expo provides a great

opportunity to engage in public relations, sales promotion and personal selling through

coupons, sampling and face-to-face communication. These three marketing tools form a

strong case in engaging customers, building relationships and promoting brand awareness

(Belch et al., 2014, pp. 486).

6.3 Direct Marketing

App: By creating a company app, 3D will be able to directly communicate with members

about sales promotions on offer. Measurability is simplified through this channel, as

responses are often instantaneous (Belch et al., 2014, pp. 463). The app will also act as a

database containing valuable information about users for segmentation purposes. Through

this information, messages can be personalised and wastage minimized by tailoring

notifications to specific target markets and geographic zones.

Email: Email is a successful means in expanding reach of a message without extra cost,

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however, direct email marketing will minimise wastage through customer segmentation

techniques. The effectiveness of emails can be compromised by clutter, with many mailboxes

already being occupied by spam and junk mail. This can irritate users and impact negatively

on the brand (Belch et al., 2014, pp. 456-457). However, 3D can avoid straining customer

relationships by only sending promotional material to those who have opted to receive email

communications. Measurement of email effectiveness can be achieved through mechanisms

that provide feedback on how many emails generated clicks and the number of people

unsubscribing from the mailing list.

6.4 Personal Selling

Promoting personal selling through skilled front-counter staff creates an avenue for

encouraging consumer purchases. Staff will be able to gain an understanding of what

products and services appeal most to the different segments based on customer reactions.

This feedback will help develop segment profiles and targeting strategies for promoting

products (Belch et al., 2014, pp. 450). It is important to note however, personal selling when

not done discretely can become overbearing and potentially tarnish relationships if the

consumer feels they are being exploited.

6.5 Interactive and Digital Marketing

By establishing accounts on various social media platforms, 3D offers consumers an

accessible channel to directly communicate their opinions about the brand. As theorised by

Denergri-Knott (2006), consumers can also be empowered by information. Therefore 3D

could develop a website that provides consumers with easily accessible information about the

organisation. A less traditional marketing platform is Snapchat. By sharing “snapchats” of

pictures and videos with the public, 3D shifts the focus from advertising to interaction.

Consumers are empowered by the invitation to participate and create their own messages in

response to the snapchats sent by 3D ((Belch et al., 2014, pp. 56). By engaging with

consumers in a way that friends would, consumers subconsciously make associations of

camaraderie with 3D; building trust with the brand, which positively influences purchase

decisions. Due to the exposure and reach of social media, 3D will be vulnerable to public

attacks and ridicule.

6.6 Sales Promotion

Sign-up Offer: In an attempt to add further incentive for customers to purchase a

membership at 3D, a special offer will be promoted that extends all memberships purchased

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in 2015 to be valid until the 31 December, 2016. Extending the memberships is at no expense

to 3D, however there is an opportunity cost, as revenue won’t be generated as quickly as if

the memberships did expire at exactly 12 months. The purpose of this promotion is to

encourage people to buy a membership earlier on; despite whether their other gym

membership are yet to expire. This offers is designed to maximise membership sales in order

to cement brand loyalty early on in the process (Belch et al., 2014, pp. 515).

Sampling: In order to get people through the front door, 3D can hold a launch week during

the first week of opening. For one week only, the public can attend the gym and classes free

of charge. During the week, some free samples from 3D’s cafe “Refuel” can be given to

consumers in order to encourage immediate purchases or future ones. There will be a massive

cost in lost revenue and operating expenses for opening the gym for a week without charging

users, however, 3D will provide a risk-free incentive for consumers (even those who may not

typically fall into the target market) to come and experience what 3D has to offer (Belch et

al., 2014, pp. 535). This sales promotion generates exposure and reach, adds value for

perceived buyers and will hopefully recoup funds through the sale of memberships, which

evolve into long-time brand loyalty.

7. Recommendations for IMC Plan

7.1 Recommendations

7.1.1 Advertising

Traditional advertising is heavily used throughout the IMC plan, as 3D is an unknown

business that needs to achieve significant awareness and loyalty rapidly to operate

successfully. A variety of television, radio, print and online media will be used to broadcast

and display advertisements. All television media will be broadcasted on a weekly basis in

prime time slots through the television channels of Seven, Nine and Ten, as these are the

highest rated channels for viewership (Idato, 2013). In addition, videos will be advertised

through YouTube at a capacity of 20,000 daily views to the targeted demographics for the

campaign duration with videos also uploaded to 3D’s official channel. Radio advertising will

be broadcasted at peak traffic hours, specifically 7am-9am and 4pm-6pm, on the following

Sydney radio stations: Nova, 2Day, WSFM and KIIS. These stations are the highest rated

commercial radio stations with similar viewer demographics to the target market (Hardie,

2012) (Commercial Radio Australia, 2014).

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Print media will primarily be in the form of posters and wall prints. All prints will be

displayed through panels in high foot traffic areas and signage amongst public transport

areas, specifically train stations and bus terminals surrounding 3D’s locations. The majority

of print media will be directed through JCDecaux and will be implemented over the separate

campaign durations. A branded company car will also be utilised as advertising. Online

advertising will consist of YouTube as previously stated, as well as through Google’s Search

Engine Optimisation (SEO). The SEO will allow 3D’s website to be presented on all Google

searches containing key words and phrases. The key terms will include combinations of

general fitness terms and terms specific to 3D such as its locations.

These cross-platform advertisements will be implemented in three stages. The first stage is a

teaser campaign that will begin six weeks prior to the launch week and aims to generate

awareness and interest in 3D. This teaser campaign will consist of three high impact 10-

second television advertisements for each market segment. These videos will depict an

individual that embodies each target segment doing daily tasks with the actions transitioning

to gym movements and workouts. Followed by 3D’s slogan, logo and ‘Coming Soon’. For

example, the Desire video will follow a young mother throughout her day and transition from

actions such as lifting a child to mimicking the same movement in a gym setting with

weights.  

The print media for the teaser campaign uses a similar concept. These print advertisements

will again consist of three variations, to directly target the individual segments. The print will

depict an individual performing a gym related action and this action is physically mirrored

through a mirrored wall (as per 3D interior) depicting the individual performing an everyday

action. The copy on the print will read ‘Coming Soon’ with all five locations in bolded text

alongside the company logo. For example, the image in the Determination print ad will

display a man walking rapidly on a treadmill and the mirror will display the same man in a

business suit walking rapidly in a company office. The radio advertisements for Stage One

promotions will consist of the message ‘Be Dedicated. Be Determined. Be Desired. 3D

Fitness. Coming soon to an area near you.’

The second stage campaign will run for two weeks prior to the launch week and be

broadcasted and displayed through identical channels and mediums to maintain commonality.

There will be a single 15-second promotional video broadcasted over the two weeks, which

will be an altered version of the previous three segment videos for the teaser campaign. The

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video will present a combined message to generally promote 3D and it’s launch week. The

message will simply state the date of the launch week followed by 3D’s slogan, logo and

locations. Print media will present the same message over the image of the same three

characters in the previous campaign combined. The radio advertisements for Stage Two will

present the message, ‘Be Dedicated. Be Determined. Be Desired. 3D Fitness. Opening week

celebrations starting October 2nd at CBD, Bondi Junction, Parramatta, Chatswood and

Hurtsville.’

The third stage campaign is a continuation of the teaser campaign, which will begin in launch

week and end three months after opening. These elaborated advertisements will depict the

extended version of the teaser campaign videos followed with the text ‘Now Open’ instead of

‘Coming Soon’. The time will be lengthened to 30 seconds instead of 10 seconds as these

videos are the general campaign videos and are more in depth to resonate fully with the

audience.  This concept is also presented in a print medium with different images to the teaser

campaign. The copy on the print will read ‘Now Open’ with all five locations in bolded text

alongside the company logo and slogan. Radio advertisements for Stage Three promotions

are generalised and will consist of various messages dependent on the time of year and

promotional events occurring at the point in time.

7.1.2 Direct Marketing

Direct marketing methods will be implemented during launch week and throughout the year.

The main methods are email communications, in store communications and push

notifications from 3D’s smartphone application (app). Email communication will consist of

weekly e-newsletters, promotions, events and other relative information such as all social

media links. Emails will be sent out to all members who have provided an email address

through their membership application and have consented to receiving email

communications. The 3D app will provide similar communications in addition to information

regarding the app features through push notifications. The app will also contain user profile

software, which allows users to tailor their account with information such as their fitness

interests. Material offered through the app will then be modified to suit the individual user's

needs thus adding targeted value.

7.1.3 Personal Selling

Personal selling will be solely through in store communication. These communications will

be the responsibility of all 3D employees and will consist of spreading information about the

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gym’s upcoming events and promotions and working on signing new members to the gym.

They will also focus on maintaining relationships with all gym members and visitors and

embodying the brand’s image.

7.1.4 Interactive and Digital Marketing

Interactive and digital marketing communications are crucial to 3D’s success as a high

volume of communication is presented through these channel types. Platforms include social

media, a smartphone application, personalised website and Google SEO. 3D will have

official accounts on the social media platforms of Instagram, Facebook and Twitter. These

accounts will be setup two months prior to launch week and will be aggressively used one

month prior to launch week in order to achieve a solid following, stable growth and

significant online presence. One month after opening maintenance will commence, with

frequent social media communication (a minimum of one post on each platform daily). These

posts will consist of text, imagery and video promoting 3D and its activities, events, and

promotions throughout the year. Constant two-way communication must be maintained to

engage consumers in an online community and create brand loyalty. This will be achieved

through replies, retweets, reposts and shares on all platforms. Social media will also act as a

channel to answer any queries consumers may have.

The app will be developed and available for download prior to launch week on all iOS and

Android portable devices. The app will include various features to engage consumers and

provide additional value and tangibility to 3D’s services. Features include: user profiles,

digital membership card, social media sharing, workout plans, recipes, fitness and

performance tracking software, fitness journal systems (input calorie intake) and a photo

editor to superimpose branding content onto consumers photos. These additional features will

increase consumer involvement as well as the likelihood of downloads, social media uploads

and sharing which provides additional publicity.

A website will also be developed to provide in depth communications for consumers to

access. The website will be designed in alignment with all 3D branding to achieve a

commonality between different channels. All social media links will be presented on the

home page and the latest posts will be viewable on the page. All information regarding the

company’s services, locations, opening hours, staff, memberships etc. will be listed on the

website.

7.1.5 Sales Promotion

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Sales promotions will be used to generate awareness, trials and memberships for the first

operating year. Launch week will be a large promotional event and will include various sales

promotions exclusively available for the week to rapidly generate consumer trials. Including

free fitness classes, day passes and branded merchandise, protein shake samples, discounts on

3D Refuel and Revive products and services. During the first three months of opening

consumers will be offered an extended membership of three months until the end of

December next year. This offer is targeted at increasing membership sales during the opening

period as well as encouraging consumers with contracted memberships to other gyms until

the end of the year to purchase a new membership with 3D immediately, rather than when

their membership is scheduled to expire.

7.1.6 Public Relations

Public relation programs will be implemented throughout the year to build marketplace

excitement for the opening of 3D. Methods include press releases, brand ambassadors and

general publicity events in the form of guerrilla workouts, volleyball competitions and

promotional stalls. Press releases will be directed to various newspaper and magazine outlets,

specifically the Daily Telegraph, Sydney Morning Herald and Sunday Telegraph as these

publications hold the highest readership in New South Wales (Roy Morgan, 2015). Magazine

publications will include Women’s Health and Men’s Health as these publications hold the

highest readership amongst the major Australian health and fitness publications (Roy

Morgan, 2015). These statements will be released periodically throughout the year in order to

circulate around specific campaigns and events. During lapses in promotional activities, press

releases will outline the personal story of the owners of 3D to generate reader interest and

increased awareness.

Three brand ambassadors that embody the market segments will work within 3D as personal

trainers and frequently be in contact with consumers to maintain personal relationships and

brand loyalty. All ambassadors will rotate around the five locations and have a solid social

media presence across the same platforms as 3D’s official accounts. They will frequently

promote 3D and its events and promotions through word of mouth and social media

communications.

Guerrilla workouts will occur throughout the year to continue marketplace excitement and

high consumer involvement. The first two workouts will be conducted at a large open spaced

park in Sydney’s CBD three weeks prior, and during launch week, open to the public with

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awareness generated through media releases, radio advertising, and social media. Staff will

be at the event initiating conversations and leading groups in workout routines. Branded

merchandise will also be given out to attendees. The day’s event will be filmed and uploaded

to all social media platforms to generate additional awareness and setup the premise for the

next guerrilla workout in the form of a social media competition. The competition calls for

consumers to post photos of their fitness and health lifestyles on social media, whether that is

Instagram, Facebook and/or Twitter, and include the hash tag ‘#3DPickMe’ with their desired

location for the next guerrilla workout in order to establish co creation between the

consumers and 3D. This competition will start a month after launch week to continue stable

membership and interest growth. The duration of the each competition will be one month

(held 3 times over the first 6 months) with the winner’s photo chosen and a guerrilla workout

implemented in an open space near the requested location (chosen by 3D to maintain

proximity to the five store locations). The winner will receive a 3D goodie bag and a

highlighted member profile posted on social media and the app. Videos of the event will

again be uploaded to social media to spread awareness.

Following the guerrilla workouts (seven months from open), a volleyball competition will

also be implemented to continue the high level of consumer involvement. This event will be

held near 3D’s Bondi Junction location on the beach and will follow the same premise of the

guerrilla workouts. It will target the market segments located in the area and generate

publicity. A more targeted publicity program will be a promotional stall at the Sydney Fitness

and Health Expo as it is a combined industry and consumer exhibition. Fitness enthusiasts

regularly attend the event and it will be an excellent opportunity to generate publicity and

awareness in the Dedication market segment. The stall will be immersed in 3D branding and

supplies of branded merchandise will be given to all consumers passing the stall.

7.2 Budgeting

The objective and task method of budget setting is used to finance the campaign’s expenses.

This build up approach creates a budget that is driven by the objectives to be attained. The

following budget as seen in Table 4, estimates the costs associated with the performance of

the previously stated strategies and tasks. Thus, the total budget is based on the accumulation

of these costs. Upon the implementation of the campaign and IMC strategies, performance

will be monitored and evaluated in light of the stated objectives and the budget appropriated.

Re evaluation of objectives will be conducted in instances where specific objectives have

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been attained, to more effectively allocate funding for new goals and higher order objectives

(Belch et al., 2014, p. 292)

Table 4. IMC Budget

Integrated Marketing Communications BudgetMedia BudgetProduction Costs $100,000Television Broadcasting $500,000Print Placement and Distribution $500,000Online- YouTube Advertisement- Google

$50,000$50,00$1,200,000

Merchandise $50,000Promotional Material- Paper Based- Car Graphic Wraps- Flags

$3,000$500$2,000$5,500

Promotional Events- Permits/Registration Fees- Equipment

$20,000$60,000$80,000

Application Development and Maintenance $400,000Website Development and Maintenance $50,000Total Budget $2,045,000Total Used $1,785,500Remaining Budget $259,500Note: All costs are estimates and have been acquired from various agencies, suppliers and thorough research. The remaining budget will be allocated as funding for all unforeseen expenses and future contingencies. Sources: (Google, 2015) (YouTube, 2015) (JCDecaux, 2015) (Otreva, 2015)

Figure 2. Budget Dispersion

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7.3 Scheduling

Table 5. Gantt chart for 3D Fitness IMC Schedule

CAMPAIGNBEFORE OPEN AFTER OPEN

2 Months 1 Month 2

WeeksOpen Week

2 Weeks

1 Month

2 Months

3 Months

6 Months

12 Months

Social Media Setup Aggressive MaintainedBrand Ambassador Campaign

Social Media Setup TV Ads Maintain

Teaser Campaign (TV & Print)General TV AdsGuerrilla Workouts Selected Selected Competition Starts

Fitness Expo Promo StallVolleyball Comp Campaign

8. Monitoring and Evaluation of the Program

Continually monitoring and evaluating the effectiveness of the IMC plan is important for

ensuring that all objectives are being met through the implementation of the

recommendations (Belch et al., 2014). If, upon evaluation, objectives are not being met it is

recommended to evaluate alternate strategies.  The evaluation tests used will be to

specifically measure: attitude toward brand, brand awareness among consumers, brand

recognition, social media presences and effectiveness, market share and membership sign

ups. By gaining awareness and creating/maintaining a positive attitude towards the brand,

consumers will be more open to purchasing a membership through 3D, and as purchase levels

grow so will market share. Source factors, message variables, media strategy, and budgeting

decisions have been explored in the recommendations (sections 7).

Advertising: (Television, Print, Radio, YouTube)

First pretesting will be conducted, and when content/concept is approved, further post-testing

will be done. Initially, concept testing will be performed through consumer juries and focus

groups. Focus groups will be made up of 4 representatives of each of the three target markets

to gain feedback on reactions and ideas from 3D’s target market as a whole. Readability

(laboratory testing) of the resulting print media will then be tested using the Flesch test to

ensure information is delivered to consumers in a relevant and easily understandable method.

For TV and YouTube, digital media On-air (field testing) testing will be employed to

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evaluate interest and recall generated by advertising. For post-testing the Inquiry test can be

used to monitor effectiveness through number of response or enquiries generated from the

print media; this is monitored by surveying consumers when the call or visit is made (i.e.

How did you hear about us?).  Tracking of the print and digital ads will also be employed

with the aid of surveying (online, through the app, or personal survey in public spaces) to

monitor awareness, recall and interest towards the brand. YouTube also offers analysis tools

for monitoring interest in paid advertising.

Direct Marketing (Email, App)

The direct marketing of email and app push notifications will be evaluated by click-through

and reading counts. This will be continually monitored, and if interest/reading rates drop

below 70% then content will be evaluated through readability test, and surveys can be

conducted to further define what information consumers are interested in and deliver on the

results.

Personal Selling  (In-store team member selling)

Personal and store based key performance indicators (KPIs) and customer feedback surveys

will be used to drive staff to ensure they work to build relationships with consumers, embody

the brand, and use personal selling techniques to generate membership sign up.  

Interactive and Digital Media (App, Social Media, Website)

Website and app content will be assessed via online observation and tracking. Here it is

possible to track consumers’ movements, areas of interest, and time spent read/using media,

as well as easily offering consumers quick and effective survey methods. For initial

pretesting, an online copy testing system (iTest Assessments) will be utilised to test

readability and content effectiveness. Social media content will be treated as advertising and

evaluated using the same methods for print and digital media. The effectiveness will be

evaluated on the number of likes/follows per page, number of likes per post, and number of

interactions (comments) made with the brand profiles. Surveys conducted online and in store

will help to determine how social media presence has impacted consumer awareness and

attitude.  

Sales Promotions (Discount Offers)

The effectiveness of discounts and vouchers will be tracked using the inquiry test, based on

the amount of return and interest that each discount offer generates.

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Public Relations (Launch Week, Brand Ambassadors, Guerrilla Workouts/Promo

Stalls)

Evaluating and counting brand mentions and appearances in news media, as well as

evaluating number of hits for each media story (the channel’s reach) will be used to

determine the possible growth of brand awareness and attitude towards the brand.  To

evaluate cost effectiveness, the total cost of each event/campaign can be divided by the

number of mentions and appearances and compared to other traditional advertising methods.

9. Conclusion

Employing an IMC strategy for 3D Fitness is vital in assisting the development, execution

and evaluation of a successful campaign, being particularly important as they enter the

industry. From undertaking a situational SWOT analysis and investigating the potential

market, a viable target market has been identified by using a differentiated approach to target

three specific segments - Desire, Dedication and Determination. Specific IMC objectives are

given to guide the campaign, with simple, professional and high-quality message strategy to

be employed through the use of resonance, affective appeals, imagery and slice-of-life

executional techniques. From the various options considered, specific activities using a

multitude of IMC tools have been recommended, with a Gantt chart media schedule and

budget to provide direction for the campaign over the first year of business. A variety of

monitoring and evaluation techniques for each tool have been provided, to ensure the

campaign’s effectiveness can be appropriately measured. All in all, IMC budgeting will

ensure consistency throughout all operations to achieve not only short-term sales and market

share, but also develop relationships with consumers to ensure long-term brand loyalty.

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