UNIVERSITY TUNKU ABDUL RAHMAN

FACULTY OF BUSINESS AND FINANCE (FBF)

FACULTY OF INFORMATION COMMUNICATION AND TECHNOLOGY (FICT)
FACULTY OF ACCOUNTANCY AND MANAGEMENT (FAM)
(ACADEMIC YEAR 2016/2017)
CTOBER 2016 TRIMESTER

UALE2003 ENGLISH FOR MANAGEMENT

GROUP ASSIGNMENT
Programme Details
Faculty:
Tutorial Group:
Lecturers Name:

FAM
T1
Ms. Saraswathy Thurairaj

Tutors Name:

Ms. Sharon Chong Yee Ling

Assignment Details
Title of Assignment: Business Proposal
Submission Date: Monday 21st November 2016
Student Details
No.

Name

Student ID No.

Programme (Year & Trimester)

Chin Yee Xin

1501329

Global Economics Year 1 Sem 1

Lee Jia Sheen

1501380

Global Economics Year 1 Sem 1

Leong Jing Siang

1606812

Global Economics Year 1 Sem 1

Ng Xue Kuang

1606511

Global Economics Year 1 Sem 1

Tan Joe Yee

1607141

Global Economics Year 1 Sem 1

Yiau Hon Song

1607309

Global Economics Year 1 Sem 1

Executive Summary

This proposal describes the gym centre service we intend to provide to UTARians, about what and how
are we going to provide and the benefits of it, based on our main objective of facilitating UTARians.
SWOT analysis and market survey are carried out to determine the feasibility of our proposed service.
Marketing strategies are then devised to publicize our service and increase our revenue. Flyers and
online advertising are used as the medium of promoting our service as they are cheap, while value-added
pricing strategy is to be implemented to gain extra revenue. An overall timeframe of what will be carried
out at when is planned for us to set our priorities right and lastly budget is calculated to estimate a
timeframe in which will we cover our cost and attain the net profit.

Table of Contents

No.

Contents

Pages

1.0

Introduction

2.0

Objective

3.0

Situation Analysis
3.1

SWOT Analysis

1-2

3.2

Results of Market Survey

3-5

4.0

Description of the Proposed Service

4.1

Service

4.2

Target Audience

4.3

Benefits

5.0

Proposed Plan
5.1

Methods of Marketing Strategies

7-8

6.0

Timeline of the Proposed Marketing Strategies

7.0

Qualification

8-9

8.0

Budget

9 - 10

9.0

Acceptance

10.
0

Appendices

10

10.1

Questionnaire

APPENDIX I

10.2

Sample of Flyers

APPENDIX II

1.0 Introduction
WELL FITNESS GYM CENTRE SDN. BHD. was established since 2006, owning few gym centres in
universities across Malaysia such as Taylor University, HELP University, MONASH University, and
Sunway University. We aim to open a gym in UTAR SUNGAI LONG KAMPUS (KA Block). It is to be
built to provide various services for students to spend their leisure time efficiently, other than just
studying. Moreover, our focus is to become the most popular gym centre for students to visit in the
neighbourhood, carrying a slogan of Get In. Get Fit. Get on with Life. Currently, students are facing
limited choice with only one gym centre located in KB Block, resulting in insufficient space; and apart
from that, the gym in KB block provides limited facilities. This provides an opportunity for us to tap into
the students market by providing more variety of fitness equipment and extra space for exercising,
satisfying students needs. Besides, there is an increasing importance towards better and healthier
lifestyle among the students. Although there is a gym centre provided by the university at a low entrance
fee, students still prefer to visit the other gym centres in vicinity to gain better exercising experience.
This shows the demand of students towards the better quality of equipment thus signifying a great
opportunity for our company to promote our services.

2.0 Objectives
The major objective of this proposal is to facilitate the UTARians by providing a complete set of
equipment and services; at the same time securing their safety while charging at a minimal rate. Apart
from that, due to the high accessibility we provide, we wish to encourage more students to exercise and
get a healthy lifestyle. Lastly, we hope to increase our popularity in UTAR Sungai Long campus by
providing well-equipped services; building good customer relationship then getting a satisfactory review
and acceptance by the community.

3.0 Situation Analysis

Before we begin to talk about our business, SWOT analysis is conducted to help us carve a sustainable
niche in the market by understanding our strengths and weaknesses, identifying both the opportunities
open to us and the threats we are facing. This will apllow us to use our resources efficiently, improves
companys operations, discover and utilize opportunities, dealing with risks, and position our company
competitively in the market.
1

3.1 SWOT Analysis

3.1.1 Strengths
The major strength of our service is convenience as we set the location of our gym in the KA block
which is only at a walking distance for the UTARians, allowing them to frequent our gym any time after
school easily. Apart from that, we provide diverse, up-to-date equipment and services in a spacious area,
fulfilling the needs of training different body parts, and also the high demand by the students. We too
hire personal trainers to guide students to use equipment and services they have never tried before; at the
same time providing immediate medical attentions to the untoward injuries.
3.1.2 Weaknesses
Despite we provide various features and facilities which contribute to our strengths, they are our
weaknesses too, as the equipment are costly and require a maintenance semi-annually; and the trainers
require salaries but we charge students at a minimal rate as our main objective is to facilitate them.
However, we do charge extra fees for using other services such as nutritional supplements, juice bar, and
tanning salon to increase our revenue. Still, profit can only be attained after a long period of time.
3.1.3 Opportunities
Over years, there is an increase in awareness in keeping a fit body and maintaining healthy lifestyle;
furthermore, various action film stars and singers are being set as exemplars of perfect body shape out of
veneration by the fans. Its immediate effect is, of course, causing the trend followers to start exercising
to get in shape but thats not all, as it influences the mentality of those by developing the preference of
getting a partner of fit body too, resulting to the current trend of students bulking up to boost
attractiveness. Such trend creates a great opportunity to us as we provide facilities and convenience that
meet up to students requirements. Besides, UTAR participates in all kinds of sport events, creating
athletes in different fields of sports, thus giving us another group of customers, at the same time a
chance to boost our reputation if we are able to satisfy our customers.
3.1.4 Threats
Despite the great number of students building up our target market, we face threats from them too. The
reason is that, most of the UTAR students are from the other states; meaning that they are very likely to
go back to their hometown during semester breaks. Apart from that, when assignments, and
examinations come like an avalanche, a great number of students would lessen their time of visiting our
gym to spend time studying, causing us to lose revenue during those periods.
2

3.2 Results of Market Survey

In order to analyze the market of a gym centre, a survey in conducted among UTAR students at Sungai
Long campus. We distributed questionnaires regarding the gym services we providing to 25 UTAR
students comprised of 13 males and 12 females. The results are outlined using graphs.
The following graph shows students preference to buy coupons or pay cash directly to enter the gym:
Students' Preference to Buy Coupons or Pay Cash Directly to Enter the Gym, based on their Ratings
towards the Rape Tape of Having to Buy Coupons to Enter the Gym, and the Location they Come from

Figure 1

Based on Figure 1, 52% of the students visit the gym from their house or rented accommodation nearby
while the remaining 48% are from the university directly. A total of 56% of our respondents pointed out
that the red tape of having to buy coupons to enter the gym in KB block is indeed troublesome, and want
to pay cash directly instead; 16% of them think that the system is quite OK actually, and willing to
continue to buy coupons to enter the gym; while the remaining 28% took a neutral stand, with 16% of
them willing to continue buying coupons and the other 12% want to pay cash directly to enter the gym.
It can be clearly seen that the students visiting the gym are either from their house or rented
accommodation nearby; and the majority wants to pay cash directly to enter the gym instead of buying
coupons at the finance department. We can thus provide convenience for them by setting up a gym in
KA block which is in walking distance, and accept cash directly from them as entrance fees.

The following stacked pie chart depicts the ratings and deficiencies in the gym in KB block.
Based on Figure 2, the majority, 52% of the students rated
the gym in KB block good, 32% rated it fair, while the
remaining 16% spread equally, 8% rated it poor and
another 8% rated it excellent. Despite the positive rating the
gym has got, students have complaints about its
imperfections. 16% of the respondents voted it has got poor
air ventilation system, 40% complained about the

16% Poor air ventilation system

insufficient

equipment,

32%

complained

about

the

insufficient space while the last 12% complained about

40% Insufficient equipment

both insufficiency in equipment and space provided.

To tackle the existing problems, our gym provides more

12% Insufficient equipment and space

variety of equipment and services such as juice bar,

personal trainer, and tanning salon compared to the gym in

32% Insufficient space

KB block at a more spacious area of roughly 6000 metre

squares, giving students a more comfortable and better in-

Figure 2: Ratings and Deficiencies of the

Gym in KB Block

gym experience.

The column chart below shows the popularity of various equipment and services among the students.
Popularity of Different types of Equipment and Services among Students
80

68

70

56

60
50
40

Number of Students (% )

30

68

64

40

44

40
32
24

40

36
28

28

24

20

12

28
16 16

32

28 28

16

10

40

36

32

12

28
16

Types of Equipment and Services

F
igure 3

Based on Figure 3, the top 10 equipment that are frequently used by students, in descending order, are
treadmill, lat pull down machine, dumbbells, cables and pulleys, pec deck machine, bench press,
preacher bench, leg press machine, stationary bike, and stability ball; while the most sought after
services are juice bar, and nutritional supplements.
We will provide more units for the equipment that are popular among the students to cater to the high
demand; also provide extra services for those who are interested in them. Since most of the students are
willing to try out new stuff, we can take this opportunity to earn ourselves some extra revenues.
The following pie of pie chart illustrates the proportion of students willing to try out new equipment and
services, and the preference to be guided by videos or personal trainers.

The willingness to try our new stuff and preference to be guided by videos or personal trainers

Personal
Trainer 87%

Figure 4

Based on Figure 4, 92% of our respondents are willing to try out new equipment and services, while the
remaining 8% prefer to stick to their original preference of equipment; and will perhaps try out the new
stuff after getting feedback from their friends and acquaintances. Out of the 92% respondents that are
willing to experience new equipment and services, a huge majority of 87% of them prefer to be guided
by personal trainers will only a 13% of them prefer to be guided by videos.
Following the majoritys wish, we will equip our gym with various types of equipment and services to
provide students a better in-gym experience, and hiring four personal trainers to assist the students.

4.0 Description of the Proposed Service

4.1 Service
We provide various imported, up-to-date equipment for students to train their different body parts such
as bench press, preacher bench, dumbbells, pull up bar, lat pull down machine, and pec deck machine to
train the upper body parts i.e. chest area, biceps, triceps, and traps; stationary bike and treadmill to burn
calories; leg extension machine, leg press machine, hack squat machine, leg abduction machine, and calf
machine to train the lower body parts i.e. thighs and calves; kettle bells, and wall balls to get in shape;
and lastly, foam roller and stability ball to relieve muscles tension and improve stability.
We too provide services such as tanning salon for those who intend to get a more beautiful or attractive
skin tan; aerobic classes to help students improving their heart and lungs function by using oxygen more
efficiently; juice bar providing beverages that offer nutritional benefits and fuel for the body; nutritional
supplement for those who intend to buff their body; and lastly smooth wireless internet access for
convenience.
Apart from that, following the great demand from the students, we employ personal trainers to guide
newbies the right way to start working out and amateur students to use equipment that they never use
before; train them to get in shape in an efficient way; prevent unwanted injuries, and even if it does
happen, immediate medical attention can be provided.
We are providing much more options compared to the gym in KB block to fulfil students needs. Setting
a low RM2 as entrance fee; providing a spacious area of around 5000 square feet at a geographically
strategic location; operating 12 hours per day from 8 a.m. to 8 p.m. everyday, we will definitely attract
more students to patron our gym compared to our competitors located further away.
4.2 Target Audience
The target audience of our gym centre is mainly UTAR students but of course, staff can enjoy our
services too. We can cater to the needs of students pursuing healthy lifestyle and exercising regularly by
providing a complete set of equipment and various services to improve their exercising experience.
Students trying to ward off obesity can join the exercising course guided by our personal trainers we
provided, to step by step overcome their health problem. Students trying to keep fit can also join other
exercising courses we provided, each setting a specific aim such as to maintain their body shape; to
strengthen a part of muscles; or to release muscles tension especially for athletes.

4.3 Benefits
From students perspective, the few major benefits would be that the service we providing is convenient
for them as it is near and opened everyday; its cost-efficient as we only charge them RM2 per entry;
students are able to train themselves more thoroughly and have a better in-gym experience as we provide
various equipment and services. As for our company, other than the profits and popularity we gain, we
can increase the awareness of importance of doing gym among the students, fostering an exercising
habit thus improving the lifestyle among students.

5.0 Proposed Plans

Marketing plans are devised as they help promoting and growing our business by setting out clear ways
to reach our target audience after understanding the behavior of our target market.
5.1 Plans to Publicize our Service
5.1.1 Word of mouth
The very first disclosure about our gym is made during the orientation programme, where we would
give students a small briefing about us, and raise awareness about exercising regularly to attain a healthy
lifestyle. Our name is then passed from students to students after some have experienced the equipment
and services provided in our gym.
5.1.2 Flyers
Flyers are being used because flyers are cheap thus can be produced in mass; they are concise thus able
to reach and convey the main info to our target audience easily. 10,000 copies of flyers will be printed
out and distributed at the entrance of UTAR Sungai Long City Campus and South Lobby of KA block
by 4 part-timers starting 1st February 2017 during school hours, from 8 a.m. to 3 p.m. till 7 th February
2017. Some flyers would be attached onto notable billboards to attract more attention. A sample of flyer
is attached in APPENDIX II.
5.1.3 Official page
Online advertising is definitely the top choice as its eco-friendly; free of charges; and most importantly,
it can be easily accessed by students as it has become a habit for them to surf the internet every day. We
will be creating our official pages on famous social media such as Facebook, Twitter, and Instagram;
having staff to manage the webpages by posting up-to-date news such as the schedule of annual regional

competition, limited time offer we will be providing, and events we will be holding; and interacting with
customers by listening to their needs, reviews and complaints to make improvements.

5.2 Plans to Increase our Revenues

5.2.1 Value-added Pricing
Albeit we charge students at a low RM2 per entry, extra charges are incurred for using other services
provided. As there is an ongoing trend of getting a tanned skin for men, we can earn ourselves some
extra bucks by providing a tanning salon. Apart from teaching students to breathe and exercise more
efficiently, aerobic classes help students to increase their stamina and endurance, attracting students
having a particular interest in this aspect. Having a juice bar allows students to enjoy and relax
themselves from a variety of flavors after a tiring work out session; while providing nutritional
supplements creates us another way of income as there are students who want to build their muscles.

6.0 Timeline of the Proposed Marketing Strategies

Activities

Time

Ja
n

Feb

Mar

Apr

May

June

July

Setting up the gym in KA block

Finalizing our suppliers and sponsorship
Setting up our official webpages
Hiring staff and personal trainers
Giving talk and creating awareness during
orientation
Holding events and competitions
Maintenance

7.0 Qualifications
Jason Chen, our owner-cum-manager director, studied at the University of Cardiff, majoring in
physiology then later devote himself as a professional trainer. He owns a few fitness gym centres in
some universities in Malaysia such as Taylor University, HELP University, MONASH University, and
Sunway University. He has over 10 years of experience in the industry and has a valid First Aid and
CPR certification from
8

an accredited association after 3 years working as a personal trainer. He is a great enthusiast in

participating health care activities and was actively involved since his academic age.

8.0 Budgets
Aspects

Quantity

Price

Total (RM)

10 000

RM 0.05/unit

500

RM 6.00/hour

1 176

Capital Cost
Advertisement and Promotion
Flyers
Part-timers
Setting up Gym
Furniture

15 000

Equipment

500 000
516 676

Monthly Cost
Gym Expenses
Rental

8 000

Gym Insurance

1 000

Electric and Water Bills

2 000

Salaries
Front Desk Worker

RM 2500/month

5 000

Personal Trainer

RM 4000/month

16 000
32 000

400 entries/day

RM2/entry

24 000

Monthly Revenue
Entrance fees
Extra Services

20 000
44 000

Monthly Profit = RM 44 000 RM 32 000

= RM 12 000
Time Required to Cover the Cost = RM 516 676 / RM 12 000 per month
= 43 months or 3 years and 7 months
First of all, the capital cost is being calculated as it is fixed, one-time expenses incurred on the purchase
of equipment. The capital cost comprises of mainly equipment, which is expected to be around RM50
000,

then the furniture for the decoration of our newly-opened gym, roughly RM15 000, and lastly the flyers
to be distributed and wages to be paid to the part-timers which are RM 500 and RM 1176 respectively.
Monthly cost is then calculated, which includes the salaries to be paid to our front desk workers
(RM 2500) and personal trainers (RM 4000); the rental, which is RM8 000 after bargaining with UTAR;
the monthly RM 1000 insurance and RM 2000 water and electric bills. It sums up to a total of RM32
000.
The amount of monthly revenue is estimated with us getting 400 entries per day, which contributes to
RM24 000 per month; then a conservative RM20 000 from the extra services we provide. Juice bar is
expected to be the hot sales as it is recognized and sought after by the students, based on the results of
our marketing survey. Our monthly revenue is expected to RM44 000.
Deducting the monthly cost from the monthly revenue, we get an estimated monthly profit of RM12000,
which is then divided by the capital cost, to get an estimated timeframe in which the cost can be
covered. The cost is expected to be covered within 3 years and 7 months but with the uncertainty of the
future, we may grab onto opportunities and exploit them fully for pecuniary gain thus shortening the
timeframe required to receive the net profit.

9.0 Acceptance
Your signature below indicates acceptance of this proposal and the term and conditions herein.
Please sign before 31th December 2016 in order to ensure that the processes run smoothly.

For Well Fitness Gym Centre:

For Superb SDN. BHD.:

Signature:

YIAU HON SONG

Name:

YIAU HON SONG

Name:

Tittle:

Programmer Manager

Tittle:

Date:

22nd November 2016

Date:

Signature:

10