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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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Introduction:

In today's world, consumption of fast food, high sugar drink and less activities have gone up which deteriorating of health of individual. People start care about how many nutrition they get from each meal, how many calories they burnt, and how to organise their workout plan. In 2015, Australians spent at least $8.5 billion on gym membership in a year, which equal $2340 per household. There are almost 1 million of people spend $25 on the gym fees in each week. This report also shows that 4.6 millions of Australians have gym membership card (NewsComAu, 2015). Additionally, based on google trend shows that gym is one of the popular search term (75 out 100) from March 2017 till now (Google Trends, 2018). Therefore, we can see there is a big market size for fitness because people want to live a healthier life and have a good figure. Although consumers are joining in the gyms, the majority of people do not know what they are going to do; how to get toner in a short period time; they unwilling to invest large amount of money in the gyms and there is no support when they are doing workout. Thus, based on all the pains which consumers may have, we invented this new fitness product, that can combine different gyms and programs that help consumers to achieve their goal; the product provides 30 days free trial in order to reduce consumer's uncertainty; we will occasionally provide articles and tips to accelerate their expectation; experts will continually update new programs on the websites; we also invited some personal trainers to provide professional suggestion about workout (customers need to book from online); 24/7 technical support will help customers have a better experience with our product. Accordingly, we will charge members each month from the day they start join in our membership and get each consumer's commission fee from gyms, because we provide potential customers and gain additional exposure for them.

In this report, we are going to introduce SWOT analysis Micro environment and Macro environment. Using all this information to explain how we are going to develop our product, and we shall provide different industries as examples to demonstrate various concepts.

Micro analysis:

Competitor & supplier analysis: gyms and personal trainers can become both competitors and suppliers for us. On the one hand, we corporate with them, they provide useful resources to us, such as a place for people to do workout and professional training tips and programs; on the other hand, they are competitors for us as well, because they serve similar services to customers.  In addition, work out app can also threat our market, such as Sweat and Asana Rebel, they provide their service through their App, which is similar for us. However, our website so far is focus on Australia market, we can have more close relationship with our customers, and provide unique service for each consumer.

Intermediaries analysis: in traditional market, wholesalers, distributors and retailers refer to intermediaries. However, there is only two ways relationship in e-market (consumers and sellers). It does not mean there is no intermediaries in e-commerce, on the contrary, it can add additional values for online products. Network intermediaries can maximize profits for online business because they help us to provide quality information to our consumers. According to scholar shows that internet intermediaries has built sales network which is an efficient platform for both customers and sellers because of reliable information. Alternatively, two parties can save their costs, get quality information and improve efficiency compare traditional intermediaries (Rong, 2014, p.46).  

Customers analysis: our product is specifically focus on young and middle age group, according to result shows that age from 15 to 54 are more preferred to do physical workout or sports (Evershed, 2015). Despite of age, we also concentrate on those who do not know how to train their body, and have no knowledge about programs. Consumers can find different kinds of workout based on their willingness, such as cardio and weights workout. Additionally, the number of gyms increases cause confusion for consumers, because they do not know which one is perfect one fit for them. In Australia, the number of gym start increase from 2362 in 2005 to 3468 in 2018 (Statista, 2018). Therefore, we combined different kinds of gyms together that consumers can access anyone they like.

Macro analysis

Socio-economical: internet access not only connects personal computer or mobile devices but also connects with whole world. Today, we can just sit at home, and order everything from online, for example, we can have fresh food delivery to our house instead of doing grocery shopping in reality. In Australia, there are 88% of people access to internet in 2018 (Statista, 2018). Instead using internet to watch TV show and News, people start purchasing and selling, for example, eBay and Amazon. Online shopping has brought significant influence in Australia, especially it helps consumers to save costs, and time. Rather than that, online shopping is being accepted by citizens. In fact, online sales are estimated raise from $172 billion in 2005 to $329 billion in 2010 all over the world. In Australia, online industries revenue has increased in recent years, and they expected to boost revenue around 9.7% ($20.1 billion) in 2018 (Ibisworld.com.au, 2018). Based on the Zhou, Dai and Zhang (2007) discussed the reason why consumer accept online shopping are convenience, lower price, no time restriction, easy to access product information. Moreover, they claimed that most important reason is consumers trust their online retailers. As we can see, using internet to change their lifestyle is a big trend. Therefore, we use websites to connect with our consumers, due to willingness to pay online. Beyond that, we will build customers relationship first, because we want to consumers trust us.  

Legal & ethical: ethic is referred to how society expect from our behaviour, and foundation of law; law on the other hand is create by government to protect citizens, which include judiciary, legislature and public officials (Differencebetween.net, 2018). Even though there are some differences between law and ethics, they are both based on values and beliefs. The next followings will start by intellectual property, privacy and data. In today's market place, industries are very conscious about their products, especially for similar commodities, such as, Coke and Pepsi; iPhone and Samsung. These kinds of issues not only happened in physical goods, but e-commence. Therefore, we are going to analyse why the importance of intellectual property and why we need it for our products. The intellectual property belongs to economic analysis, according to some scholars claimed that it is became the key to drive economic growth and cultural development. Despite of importance, this is a challenge for law, due to intangible. Copyright is one of the important term for intellectual property. Copyrights is related to people who have rights and power to protect their own work, for example, it can be a book, programs, recording, broadcasts and so on (Copyright.org.au, 2018). In another word, whatever we created that belongs to us, nobody can use it without our permissions. It especially important for internet because we can easily search information from online, and directly using it as our sources without telling anyone. For instance, photographer Roger took a photo of couple held a line of puppies and sold it as greeting cards. Internationally, artist Jeff Koons who used Roger's photography and made a significant money, and Roger sued Koons because of copyright, as a result, Koons was forced to pay a settlement to Rodgers (99designs, 2018). Without copyright, we would not know who is the original person to create this specific work; another reason is money, under copyright law that we need to pay for others work in order to use for ourselves (Efstratiadis, n.d.). In the same way, copyright also important for our product, for example, the style of website, information, and programs can be easily copied by our competitors. Therefore, as a new business we need to protect our property. Nevertheless, we also want to expand our market not only in Australia but in the world.

The second elements under intellectual property is patents. Patent is a document which authorized by government agency, and provide exclusive rights to an inventor for a number of years. Patent is same as copyright, both important for retail shops and online stores. Once industries get patent, it can give inventors rights to stop others to sell and manufacture the inventions; inventors can license someone about their inventions but under certain contracts; it encourages people to study new technologies without worrying about someone will steal their property; patent also protect inventors rights even though exporting overseas (Ipaustralia.gov.au, 2016). For example, Uber has been granted 272 US patents and 367 worldwide patents. In the initial year, Uber barely have any patents; however, there was a rapidly increase from 2015 till now. The reason behind this is because Uber's brand value has steadily climbed in recent years. Uber's brand value almost close to $11billions in 2016, after two years, it directly jumps to $16.6 billions, and now the report shows this brand is the most valuable brands among brand Finance's Global 500 2018 (Iam-media.com, 2018). As we can see, along with the brand value and market share increase, industries need to have different types of patents to protect their brand equity and their company as well. Our product is similar like Uber in the first place, it is unique for market, that is why we need patent to protect this whole product in order to gain large market share and brand value in the future.

The last element is trademark. Trademark is a sign which allow industries to distinguish themselves with others. It can be brand logo, brand image, colours, sounds, shape and so on. A trademark must be a new before registered. In another word, there should not have similar or same trademark as others in marketplace (Christie, 2011, p.35). Trademark can be the initial reason to influence consumers' decisions, because it shows the brand image and reputation which will influence consumer's perception. Therefore, a good and unique trademark is a key to get closer with customers and also let them find this brand easily; trademark is a valuable asset for future, as the growth of prestige will increase the brand value and equity in the market; good trademark will produce positive feeling for both employees and customers (Rubinstein, 2014). For example, we when speak of Chanel, we all know it is luxury brand, and people know it represent fashion and good quality; when we want to drink soda, we think about Coke; when we want to eat fast food, we want to have MacDonald. These are the successful trademark, which allow people to store their information in their brain in a long term instead of short term. Hence, we are going to design a trademark can let consumers to know this is a fitness brand (clear image in marketplace); and an exclusive logo to attract potential consumers in order to spread our market. We know it may difficult for new product, sometimes it take years to achieve this goal and eventually become a brand like Coke, but we will continue to improve the brand image and to communicate with consumers until find out how can we engage with them.  

Privacy: in this part, we are going to use seclusion theory, access control and autonomy model to explain privacy in e-marketing, why privacy so important and how it is influence industries. Privacy can combine both ethical and legal aspects. Especially for nowadays, people can just use Facebook to search anyone's personal profile, and to know what kind life they have. Seclusion theory can refer to the ability to be alone in the society. It can punish someone who cross the line over privacy and to maintain personal distance; access control is emphasis that a person has right to regulate the information, which can protect individual's personal information from unauthorized release. Those two are more focus on how information released, rather than construct the personal information. The last one which is autonomy model, it can help people to identity what kind of data are important for their life decisions (Strauss and Frost, 2014, p.124). Privacy is important for business, protect industries information not only related to themselves but also customers, they are searching, purchasing and using online products every day, they are interacting with their friends, all these data are collect by different industries, so if companies lose their information which will directly influence consumer's privacy. As we mentioned, privacy also mattered for companies' brand, privacy for a business is not only some papers and documents but also the operations which may contain this company's finance issue and situation. Once customers knew everything about a company, it may probably either rebuild this brand or destroy. Lastly, privacy will influence future development, because once we do not have privacy which mean other competitors can know exactly what we are going to do for next step (Gorodyansky, 2017). Thus, privacy is important and crucial for a business. For our product, it is also necessary even though it is new business. Such as, how we connect with different gyms and personal trainer to join our companies, and how we actually use it to earn revenue. These are different kind of privacy which need to isolate from customers.

Data: for all the businesses, the key to improve their profits is increasing sales, but without knowing consumers' insights, how can we boost our sales. Therefore, some companies will collect their purchases information, such as Woolworth reward card, based on this card, they will know what we bought each time, and then generate results. Collecting customer's data not only important for retail store but also e-business. For example, companies use cookies to understand each individual's online behaviour. In another word, cookies will ask browser to store all the information which we go through online (The Economist, 2014). This is reason why when we search some information from online, they will continue exposure to us through advertisements. However, consumers are more conscious about let business to know their online information, due to they worry business will sell their information to others. Therefore, Privacy Act 1988 is an Australian law which can protect individual information from others. Under this law, businesses need to let their consumers to know why their information being collected; how they are going to use the information; customers have rights to access their personal information and unsubscribe information if we do not want (Oaic.gov.au, 2014). For instance, David Jones, we can see they post privacy & security page on their websites which available to everyone who wants to know what they are gather from individual's data, for instance some basic profile information, name, gender, address, telephone numbers and so on; they also include some other data which can help to improve their business (David Jones, 2015). Meantime, we will also introduce to consumers what kind of information which we will collect from consumers before they sign in on websites, and let them to understand why are we doing this in order to make sure we are not violate or overuse their personal data.

Political: electronic commerce radically influences Australia's economic market due to the development of technology. However, in May 2011, government released national digital economy strategy which showed government participation can foster e-business, such as reduce costs, increase citizen satisfaction and innovation. Australian Taxation Office will also become part of this process because of government. Last month, they represented they are responsible for collecting taxation revenue from individual and company; manage goods and services under Australian states and territories; administer Australia's allowance and business register (PARLIAMENT of AUSTRALIA, 2018). All these responsibilities require interaction with our businesses, such as the permanent employees(stakeholders), employees' income and setup our company(new). The whole process controlled by Australia government which can make sure we do not perform illegal behaviour in e-business and also, serve us a better online environment by government.  

Technology: as we mentioned in the scio-economical paragraph that represents technology accelerate e-business development, and consumers start to accept online shopping. Along with technology development, it makes everything so much easier than before. For example, cashless and wireless. In the meanwhile, technology also is a key term for our product, because we are going to use website to start this new business, all the customers need to go through it to contact with us if they have any issues and questions about brand.

SWOT analysis:

Strength:

• Affordable price

• One card access different kinds of gyms

• Professional training

• Each program tailor with different consumers

• Eliminate time restriction

• 24/7 technical support

• Community communication support

• Fast and effective

Weakness:

• Not enough awareness

• Consumers may not trust new product

• Limited financial capital

• Experience employees

• Weak market image

Opportunities:

• Less competitors

• Large market share for future

• Become market leader in this area

• Internet user continue growth

• Consumers accept shopping online

Threats:

• New competitors entre

• Exist gyms and personal trainer

• Adverse government policy

In conclusion, in this report, we firstly analyse what are the consumer's issue about fitness (target market/ customers), based on that, we introduced what is our product, and what kind of benefits which consumers can get from us (value proposition); following part is how we use e-business to earn money and expand market share (revenue model). In the second paragraph, we demonstrate Micro analysis and Micro environment, which use assorted theories to explain the internal and external environment. Alternatively covered how they are influence today's online business, and the way which customers can protect themselves from information explosion. Then for each term we provide industries example to illustrate why they are so important for business, therefore, we also need to apply same terms for our product. In the future, we hope the product will become a brand like Uber, which have large market share and impressive brand image in consumer's mind.

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