Case Study: Bounce Fitness Group Bounce Fitness Company has now accepted that increasing their cash flow is
Question:
Case Study: Bounce Fitness Group
| Bounce Fitness Company has now accepted that increasing their cash flow is important for sustained growth and to support a wider strategic goal of global market penetration. To this end they are looking to move further on their customer engagement strategy by exploring the potential revenue opportunities within their digital space (website and Facebook). As you have already explored social media, including paid, owned, and earned media as well as the user experience project around improving the usability of their digital assets. You have also highlighted a potential new eBusiness product ‘Micro-Loans”; the Board of Directors feels you are best placed to offer advice in this matter. You have been asked to research the opportunities to turn their online presence into a revenue stream generating $1 million in profit in the first year. You are also instructed to act on behalf of Bounce Fitness Company to explore merchant accounts and payment facilities with financial institutions to support the digital strategy. The project will include:
Average $ sale per microloan: $1000 Gross Profit Margin: 15% Conversion Rate: 0.12% In addition to the relevant organisational policies and procedures contained on the Bounce Fitness simulated website, Case Study Organisation resources folder in Canvas and the background information about this topic you have learned throughout your term, there are a range of other documents and templates found in the Appendix section of this document to assist you complete the tasks. |
| 2 | Part B - Review Prior Experience |
| 2.1.1 | Internal Research – ROI on Existing Sales (50 words) |
Calculate the ROI of Bounce Fitness Group’s Marketing Activity for microloans using the formula covered in this course (you must show your working out). Compare your answer to the ROI for the broader business. You should refer to the financial reports for Bounce Fitness as well as the information in this module.
| 2.1.2 | Internal Research – Review Site Analytics (50 words) |
Outline your approach to Site Analytics for Bounce Fitness. Include how Analytics can be accessed and what the reports can provide.
| 2.1.3 | Internal Research – Review Inventory Management (100 words) |
What approach would be appropriate for the management of inventory of fitness product stock availability. How does this approach cater for peak periods of customer purchasing which is expected with online payment facilities? Include in your answer what brand and financial risks become apparent here.
| 2.1.4 | Internal Research – Review Resource Management (50 words) |
How does monetization of digital channels impact our human capital (employees)? Does this strategy require more staff? Less staff? Staff with different skill sets? What are the impacts on other teams such as operations, customer service, finance, marketing, and product buying teams?
| 2.1.5 | Internal Research – Review Cash Flow (50 words) |
| Does Bounce Fitness have the liquidity to handle seasonal peaks and troughs in online purchases? What KPI in this monetization strategy will work towards offsetting the initial costs incurred for this strategy? | |
2.2 | Conduct External Research |
| 2.2.1 | External Research – Competitive Intelligence (50 words) |
Who will our competitors be in the micro-loan market? What sources of information can we tap into to remain abreast of competitive information like this?
| 2.2.2 | External Research – Research Partners (50 words) |
Identify three sources of research information which could help Bounce Fitness in the analysis and ongoing development of the micro-loan business and that market segment generally.
| 2.2.3 | Legal Considerations and Organisational Policy (100 words) |
What are Bounce Fitness Transaction Obligations, Service Obligations, Marketing Obligations, Privacy Obligations in relation to this monetization project? Identify issues related to digital strategy in the organisational documents accessed. Consider the World Wide Web Consortium (WC3) – what considerations should Bounce Fitness’s organisational policies and procedures have in this regard?
| 2.3 | Identify Potential issues or barriers to Streamlined Transactions (100 words) |
What are three issues to streamlined transactions and how could Bounce Fitness overcome them?
| 2.4 | Benchmarking |
| 2.4.1 | SEO (100 words) |
Using Google Keywords Planner Tool, locate high and low performing search terms for a micro-loans business. Identify long tail search terms (including number of searches per month, and competitiveness of each term as high or low). Are there any terms that could be a Key Opportunity for Bounce Fitness? You should include a screen shot of your keywords report.
| 2.4.2 | Engagement (100 words) |
Conduct an assessment on the current customer engagement using these methods:
- Time spent on website and significant landing pages
- Time spent on social media
- Customers responses to posts, infographics, videos, and other content
- Rates of customers sharing, tweeting and general social involvement
- Sales opportunities
Include in your answer the concept of ‘social listening’. How can this be incorporated into benchmarking engagement and are there any social listening tools that you recommend?
| 2.4.3 | Existing Website Traffic (30 words) |
What approach to website traffic tracking and management would be appropriate for this monetization strategy? What key data points would be applicable (e.g., repeat visitors etc.)? Is this an opportunity to increase geographical reach (how and why)?
| 2.4.4 | Establish KPIs (150 words) |
When generating sales online, what are the 5 Important Considerations? How is this linked to Optimisation and provide an example based on the known criteria of $1Million profit?
Expert Answer:
