Questions asked by Centennial College professor Tara Breeze.

Business Case: 

You have just started your own marketing consultancy and have been building a roster of clients across Canada. Your latest client is David, the owner of a growing boutique fitness centre in Toronto called DJ Fit. 

DJ Fit has a loyal customer base and has been profitable to date, but David knows he needs to grow his business even more so that he can sustain his profits and stay competitive. Throughout the pandemic, David also started to grow an online business of virtual fitness classes that he would like to build further since it will allow him to reach a much bigger audience and scale his business outside of Toronto. 

Through social media, digital and direct marketing, David has been able to reach customers quite effectively. He has also benefitted from some PR and word of mouth. The investment in marketing to date has been limited but David knows that if he spends more money, time and effort on marketing, he will be able to grow his business even more to reach new audiences. 

David has an Instagram account with 4,000 followers and his e-mail list has 750 subscribers and a very high 80% open rate. He wants this to grow significantly in the next year so has come to you for your advice and planning. 

The target audience for DJ Fit is 25 - 45 years old, middle class, with 50% female and 50% male. For now, his primary audience tends to live in Toronto. They are fitness focused and interested in other well-being products. 

David has just hired you to help ramp up the on-line presence for DJ Fit and support him reaching a broader audience to support the growth ambitions for his online fitness programming. He will need a strong website, social media growth strategy and some marketing/advertising tactics to grow DJ Fitness into an ambitious fitness empire. 

 

TOTAL MARKS                                                                                                                                                           /60

Brand strategies David is trying to figure out what marketing strategies he should deploy based on where he is on the marketing life cycle.	/10
First, state the stage DJ Fit is in. Second, state what David's Marketing Objectives would be at this stage. Third list three key strategies he should focus on.
As David considers how best to build his online fitness brand further, list three special characteristics that he could highlight as part of his marketing efforts.

 

 

Products, Services and Brands David is quite excited about his online fitness brand growing, but is also interested in more options for brand extension.	/10
List 2-3 other possible brand extensions that could make sense for David to expand his business and customer base. Briefly explain why they are worth considering.

 

Brand Development David has had a lot of success with digital marketing but does need help refining his position in the market as he looks to expand his audience and become more digital.	/10
Write what you think would be an appropriate positioning statement for David's gym, DJ Fit.
As David looks for growth opportunities for the brand, explain to him what the difference is between a line extension and brand extension.

 

 

Pricing	/10
Explain to David what the differences are between the price floor and the price ceiling.
There are two main strategies you can use to price a new service. First state what the two strategies are, and second recommend and rationalize which one would be better for David's new online fitness services.
Should David consider a loyalty or referral program? Why or why not?

 

 

Promotional Mix In determining where David should place his money to support his online business growth, David wants to understand his marketing choices.	/10
David knows he has options in his promotional mix.  He is looking to you to outline what the best tools would be for launching his services to a wider on-line market. He has a $50,000 budget. Pick two of these tools and explain the advantages and disadvantages for each.
In trying to understand where to place advertising messages, explain what the difference is between reach and frequency.

 

Digital Marketing Outside of the paid promotions outlined above, there are other tactics that can be deployed digitally at no or low cost that would support her goals.	/10
Organic social media can be effective in building a connection with customers and potential customers. Outline what you would recommend to David in order to build his presence on social media and what channels might work best.
E-mail marketing is cost-effective and allows for updates to be sent to customers who subscribe. What are some considerations for David as he thinks about launching an e-mail marketing campaign? List 2-4 bullets.