Marketing Business Marketing and Communication

Question: You are required to create the following financial assessment for Portland Fit. Price Build Budget/pro forma RO1/payback Client Lifetime Value Create a new Financial avenues for the organization and a Work Based Structure "WBS". Answer: Financial Assessment of Portland Fit Portland Fit conducts training programs for runners as well as walkers of all abilities. It mainly aims for completing events like Portland Marathon. Price Build Portland Fit renders corporate fitness services in comparison with other high-end fitness centres for the same. Pricing Monthly Annually $100 $150 From the above table, it is easy to understand that Portland Fit charges $100 for the registration purpose in the fitness centre. For lifetime membership of Portland Fit, they charges $150 from the runners on annual basis. Price Build Unit Sales Year 1 Year 2 Year 3 Standard Monthly Membership Fees 23540 54800 65760 Premium Monthly Membership Fees 34540 24560 65870 Registration Fees 23650 45370 25470 Other Revenues 34250 65730 23260 Total Unit Sales 115980 190460 180360 Unit Prices Standard Monthly Membership Fees $2,340 $32,160 $54,600 Premium Monthly Membership Fees $65,760 $87,960 $97,650 Registration Fees $1,230 $3,460 $2,360 Other Revenues $54,600 $32,400 $56,570 $123,930 $155,980 $211,180 Sales Standard Monthly Membership Fees $3,426 $5,460 $2,315 Premium Monthly Membership Fees $3,567 $2,165 $5,674 Registration Fees 34250 65730 23260 Other Revenues 34540 24560 65870 Total Sales $75,783 $97,915 $97,119 Direct Cost of Sales Standard Monthly Membership Fees 34250 65730 23260 Premium Monthly Membership Fees $1,230 $3,460 $2,360 Registration Fees $2,340 $32,160 $54,600 Other Revenues 34250 65730 23260 Direct Cost of Sales $72,070 $167,080 $103,480 Prices are greatly influenced by the quality of equipment as well as services for the same (Winer Dhar, 2011). They enrol general wellness programs for the runners in addition to fitness facilities in an overall manner. Pricing build strategy of Portland Fit depends entirely upon the perception of the runners in an overall manner. Budget Marketing Expense Budget Year 1 Year 2 Year 3 Advertising $34,500 $23,560 $54,600 Sales Promotions $23,650 $65,790 $76,540 Marketing Training $12,430 $23,650 $35,630 Quality Assurance $34,650 $65,780 $21,540 Referral Program $23,650 $65,790 $76,540 Corporate Promotion $34,500 $23,560 $54,600 Public Relations $34,650 $65,780 $21,540 Website and Facebook $12,430 $23,650 $35,630 Total Sales and Marketing Expenses $210,460 $357,560 $376,620 Key Marketing Metrics Key Marketing Metrics Year 1 Year 2 Year 3 Revenue $3,426,500 $6,543,290 $8,754,000 Leads 23430 43500 45000 Leads converted 15% 12% 20% Referrals 91 45 89 PR Mentions 34 36 67 Testimonials 21 56 98 Annual Customer Attrition 15% 22% 32% Return on Investment Portland Fit evaluates efficiency of an investment for comparing various investments. Return on Investment is the measuring factors for relative investment costs in an overall manner. Return on Investment: =Gain from investment- cost of investment/ cost of investment = $235- $125/ $125 = $110/ $125 = 0.88 Payback Period Payback period of Portland fit ensures the length of time for recovering the cost of an investment. Determinant ensures undertaking position for longer payback period and desirable for the various investment positions for the same. Payback Period = Cost of Project/ Annual Cash Inflows = $100000/ $25000 = 4 years Client Lifetime Value Client Lifetime value is one of the important metrics adopted by Portland Fit. It mainly helps in: Understanding the generated return on investment on customer acquisition It mainly focuses on the marketing channels for optimization of lifetime value for the gross profits. It mainly tries for maximizing customer lifetime value for cost in customer acquisition in an overall manner. Ensuring retention marketing strategy It aims for marketing campaign and instant revenue for the targeted runners of Portland Fit. Creation of effective messaging, nurturing as well as targeting It mainly helps in segmentation for customer base in improvement in the personalized messaging system. Improvement in the behavioural triggers It mainly discovers the behavioural triggers for best runners in the Portland Fit. Improving output from the customer support area It mainly focuses on giving special attention for the valuable customers of Portland Fit. Work Based Structure Work-Based Project Start Date End Date Budget Implemmented By Department Advertising 21st January 2016 31st March 2016 $2,300 Photographer Marketing Photo Sessions 22nd January 2016 15th April 2016 $4,500 Ad firm Marketing Create new print ads 12th February 21st May 2016 $320 Ad firm Marketing create new radio sports 21st January 2016 15th April 2016 $230 Ad firm Marketing create new vide ads 22nd January 2016 31st March 2016 $210 Ad firm Marketing Launch and campaign 21st January 2016 21st May 2016 $520 Ad firm Marketing Total Advertising Budget $8,080 PR Create press release focus on new initiative 21st january 2016 31st March 2016 $230 PR Agent Marketing Send press release 12th February 15th April 2016 $540 PR Agent Marketing Follow up calls on press release 21st january 2016 31st March 2016 $540 PR Agent Marketing Total PR Budget $1,310 Direct Marketing 21st January 2016 31st March 2016 $4,340 Marketing Assistant Marketing Create email blast about new referral program 22nd January 2016 15th April 2016 $5,480 Marketing Assistant Marketing Send email blast 12th February 21st May 2016 $2,380 Marketing Assistant Marketing Create corporate offering mailing and target list 21st January 2016 15th April 2016 $3,260 Marketing Assistant Marketing Send corporate offering mailing 22nd January 2016 31st March 2016 $2,370 Marketing Assistant Marketing Total Direct Marketing Budget $17,830 Web Development 12th February 21st May 2016 $54,600 Web Firm Marketing Revise Website 21st January 2016 15th April 2016 $34,700 Web Firm Marketing Create new Facebook application 22nd January 2016 31st March 2016 $23,760 Web Firm Marketing Launch Facebook application 21st January 2016 21st May 2016 $54,300 Web Firm Marketing Total web development budget $167,360 Marketing Loyalty and Referral Programs Create new referral forms 21st January 2016 21st May 2016 $32,500 Marketing Assistant Marketing Staff training on loyalty and referral programs 22nd January 2016 15th April 2016 $34,650 Operation Manager Marketing launch New programs 12th February 31st March 2016 $21,300 Marketing Director Marketing Total Loyalty and Referral Programs $88,450 Totals $283,030 Figure: Work Based Structure of Portland Fit (Source: Blythe, 2012) Work-based structure helps Portland Fit for defining the projects in an accurate manner. It defines the hierarchical structure for smooth functioning of Portland Fit. It mainly ensures monitoring of the project as well as allocation of related resources for the same. This particular company aims at estimating the cost evaluation and risk allocation strategy in the most appropriate way. It mainly checks specified deliverables for the stakeholders of the business organization. It mainly supports execution as well as monitoring process for the runners. Project Name Weekly Timeline Week 1 - 2 Week 3 - 4 Week 4 - 7 Week 8 - 10 Week 9 - 10 Notes: Briefing of the project Product research and development Market research Promotion and advertisement Monitoring and measurement Feedback of the customers Month 1 Month 2 Month 3 Month 4 Month 5 Totals: 13 14 22 21 14 Cumulative Total: From the above analysis, it is easy to collect the reliable information on Portland Fit. It mainly assigns price build strategies for improving in the generation of revenue for future business activities. Capital budgeting techniques will help in understanding the cost estimation for innovative projects selection in an overall manner. Reference List Blythe, J. (2012).Marketing. London: SAGE Publications. Kotabe, M., Helsen, K. (2011).Global marketing management. Hoboken, N.J.: Wiley. Sheehan, B. (2011).Marketing management. Lausanne, Switzerland: AVA Pub. Winer, R., Dhar, R. (2011).Marketing management. Boston: Prentice Hall.