DIPLOMA PRESENTATION“IMPROVEMENT OF PRICING POLICY”

Written by

Sidlyk Dmytro Oleksandrovich

Scientific supervisor: Garmider L. D.

The purpose of the diploma research is to examine the system of pricing and how these pricing strategies are applied in the fitness center “Energy Fit”.

According to the purpose, the following tasks were set in the diploma project:

• To define methodological aspects of pricing and pricing strategies;

• To find the most appropriate strategies for different market segments;

• To study the existent pricing strategy at the enterprise;

• To analyze the current pricing policy of the fitness center “Energy Fit”;

• To find new ways for pricing policy improvement;

• To develop new pricing policy for entering the new price segments.

GENERAL THEORETIC ASPECTS

THE MAIN TYPES OF PRICING STRATEGY BASED ON PRODUCT CHARACTERISTICS

Product characteristics Types of pricing strategy

New goods 

Cream compilation

Posh prices

Following market leader

Entering the market

Costs recovery

Modernized goods 

Variable decreasing prices

Strategy for individual segments

 

 

Saving price level with increasing consumer properties of goods

Linked pricing

Goods that sales as a traditional 

Flexible pricing

Posh prices

The strategy of lowering prices for complementary goods

Long prices strategy

ECONOMICAL ACTIVITY OF FITNESS CENTER “ENERGY FIT”

56%32%

4%8%

Group lessons

Gym

Dietologist consulting

Massage

FITNESS CENTER STRUCTURE

Teaching staff Administratio

n

Service staff Technical

staff

Educational

work with

clients

Householding Providing

throughput

abilities of fitness

club

Care about

building,

equipment,

trainers

The

development of

new effective

programs

Managment Information

coordination

Fixing

Implementati

on of

pedagogical

control

Marketing Tools for quality

of service

Technical care

MARKET SHARES ON FITNESS IN DNIPROPETROVSK

Sport Li fe; 21%

Djaypour; 12%

Aquatory; 11%Vivat; 8%Energy Fi t; 11%

Flex; 6%Virsavia; 6%

Voskhod; 13%

Sport Life Djaypour Aquatory Vivat Energy Fit Flex Virsavia Voskhod

SWOT ANALYSISStrengths

A lot of space Modern equipment Ability to do martial arts Parking zone Affordable prices Fitness experience High quality service

Weaknesses Rooms does not meet fitness center standarts Expensive rent Strong competitors Weak creativity Not first lessons for free

Opportunities Attraction of additional equipment for advanced features Esthetical creation Involvement of fitness experts Increasing professional level of staff Creation of new srvices according to customer requests Entering new market segments

Threats Losing clients because of competitors Increasing rent Loss of population interest in sports Seasonality of demand Losing regular clients Decreasing of peoples ability to pay Changing needs and demands of buyers in the market

ENERGY FIT GYM PRICES IN COMPARISON TO OTHER FITNESS CENTERS IN NOVOMOSKOVSK

Morning Day Maximum Single class0

50

100

150

200

250

300

350

Energy Fit 4Friends Super Body

UA

H

20% PRICE INCREASE

Morning Day Maximum Single class0

50

100

150

200

250

300

350

Energy Fit 4Friends Super Body

UA

H

SEASONAL AND DAILY DYNAMICS OF THE DEMAND FOR FITNESS SERVICES

CROSSFIT EQUIPMENT

Producer Name Price

Roguefitness.(USA)

Rogue Power Bar $275.00

Rogue S-25 Fat Boy Sled $115.00

Dynamax Hoover Medicine Balls - 10" $42.00

Rogue Training LB Bumper Plates $126.90

Rogue "Kilo" Bells - American Made $40.95

Knotted Climbing Rope $133.05

Rogue Wood Plyoboxes $65.25

Rogue Gymnastic Wood Rings $60.00

Total Investments: $817 (9 793 UAH.)Value of potential clients: 30Price: 400 UAH per monthIncome: 12 000 UAH per month

PRICE CALCULATION FOR ENTERING TO NEW SEGMENT (COSTS RECOVERY)

• Average client pays: 300 UAH per month

• The total value of all costs for service: 300 000 UAH per year

• Average visiting: 500 people a day

• Murk-up: 30%

Accordingly, the annual cost of cards per person: 300 000/500 = 600 UAH.

The minimum annual cost of the card: 600 * 1.3 = 780 UAH.

THANKS FOR YOUR ATTENTIONHAVE A NICE DAY