Leadership and Sports Management

Introduction

The National Indoor Athletics Centre (NIAC) is based at Cardiff Metropolitan, and it has been lauded as the home of Welsh Athletics. It was the first purpose-built indoor athletics track in the UK. NIAC was selected as the case study organization for investigation and analysis, focusing on business dissertation help. The investigation and analysis will cover the aims, objectives and the key purpose of NIAC, the market and competitive environment, the key external influences, competitive analysis the current portfolio of products and/or services as well as the key internal business capabilities. The second section of the paper will be an evaluation and recommendations section, which will be based on the SWOT analysis of NIAC.

Aims, Objectives, and Key Purpose of NIAC

The key aim of NIAC is to be an indoor athletics track in the UK. To meet that purpose a number of facilities have been built: a full competition 200m banked track; a 9 lane 60m straight; a separate 6 lane 140m straight; competition and training Long and Triple jump pits; competition and training Pole Vault pits; a competition and training High Jump pit; training nets for all the throwing events; a full equipped biomechanics laboratory; a Sports Medicine/Physiotherapy treatment area; an athletics only weight training area and a strength and conditioning (Cardiff Metropolitan University 2019). The vision of NIAC is “In support of its aspiration to be a top-10 new University, Cardiff Metropolitan University will be renowned for the quality of its competitive sports environment, the recreational opportunities on offer to its students and its contribution to community sport” (Cardiff Metropolitan University 2019). Its mission is, “To enhance the student experience in all facets of non-academic sport in Cardiff Met” (Cardiff Metropolitan University 2019). In relation to its vision and mission, NIAC has a number of objectives which include but are not limited to: to promote health and wellbeing; to promote excellence; to enhance the external profile of the organization and to generate income for reinvestment into Cardiff Met Sport.

The Market and Competitive Environment

The Market

NIAC was built with competitive students in mind. However, the scope of the target has increased since NIAC decided to not only target students but also staff, and the general public of all ages and from all walks of life. As such, they are basically in the fitness industry, which is a very big industry that encompasses a very big market. Hill (2018) notes that that the UK fitness is worth £5 billion as of 2018, and that figure is expected to continue to grow. According to Walker (2018), notes that as of 2018, the market penetration was at 15% where one in every seven individuals has a gym membership. Moreover, the number of fitness facilities increased by 4.6% in 2018, with 275 new centers being opened (Walker 2018). In relation to specific running tracks, NIAC is considered to have one of the best tracks in the UK. Ward (2017) notes that NIAC is the 8th best running track in the UK. The other tracks that were placed before it is bigger have been in existence for a longer time, and they can host more people. For example, the Manchester Regional Arena in Manchester has an 8 lane 400m track and an outside 4 lane 200m track as well as an 8 lane 60m sprint track (Ward 2017). Additionally, the track can host more than 6,500 spectators while NICA has a sitting capacity of 690 spectators. However, NICA is still one of the best, and it has made a name for itself.

The competitive environment will be evaluated using Porter’s Five Forces analysis. Chartered Global Management Accountant (2019) notes that Porter’s Five Forces was developed as a simple manner of evaluating the competitive strength and position of a business organization. The theory argues that there are five forces that determine the intensity of competition as well as the attractiveness of a given industry.

It is relatively easy for new entrants to break into the fitness industry. As noted by Walker (2018) in 2018, more than 275 fitness centers were opened in the UK. This shows that it is relatively easier for new entrants to get into the market. As such, the threat of new entrants is very strong.

Bargaining Power of Suppliers

The fitness industry has many suppliers. Whilst, there are many suppliers, the number of suppliers that are trusted is very few. Therefore, the bargaining power of suppliers is moderate. However, organizations like NICA tend to have one supplier from whom they get all their sports equipment. Given the fact that they can get the same equipment from other suppliers reduces the bargaining power of suppliers.

The bargaining power of buyers is high due to the availability of substitute products and services. Clients want to get the best experience at the lowest price possible. Bargaining power of buyers is strong because all fitness industries tend to target the same people. In relation to NICA, they have an edge given the fact that the majority of their clients are students at Cardiff Metropolitan.

The threat of substitute products and/or services is very strong. There are very many fitness centers from which clients can get their needs met. Due to the high threat of substitute products or services, organizations have to seek a competitive advantage, and that may come in the form of offering a unique product or service or offering a relatively lower price.

The rivalry among the existing competitors is very strong. The rivalry is strong since the organizations tend to target the same clientele as well as offer the same substitute products and/or services. The stiff competition eats at the profits of many organizations in the industry and affects the long-term profitability of many organizations in the industry.

PEST analysis is used to asses the key external influences of any given industry. The considered key influences are political, economic, social, and technological.

The political environment of the UK is a bit charged currently due to the ongoing process of Brexit. Lefevre (2016) notes that Brexit destabilized the fitness industry since it affects the jobs of very many people in the industry. The fact that the process has yet to be completed means that the industry is relatively unstable and might return to equilibrium only after the process is completed.

The economic environment in the UK also affects the fitness industry. Dickins (2017) notes that household incomes in Wales are the lowest in the UK nations. Since the Brexit industry, the economy has been on a downturn which has translated in a lower disposable income for citizens, which means that many potential customers do not have money to spend on a fitness center. Therefore, the general economic environment is affecting the fitness industry.

The social environment in the UK is encouraging to the fitness industry. The social environment affects the fitness industry in a positive manner because there is a growing demand for gyms and fitness centers (Walker 2018). As such, the social environment contributes to the fitness industry in a positive manner.

The technological environment also contributes positively to the fitness industry. Midgley (2018) notes that one of the reasons that the fitness industry is booming is due to technological growth in the form of wearable fitness technology accessories and online fitness coaching. Technology helps in streamlining the offering of services/products, which in turn has positive effects on the growth of the industry.

The specific target clientele for NIAC is the students at Cardiff Metropolitan. The student is the main target market since they still attend the university, which means that they will seek a fitness center that is next to them. NIAC will fill in that role. To appeal to students, all Cardiff Met students are given a free one-year membership where they have access to all the facilities offered at NIAC (Cardiff Metropolitan University 2019). The only services that they pay for are the physiotherapy and the massage treatments for which they receive discounted rates. While the key target is the Cardiff Met student, NIAC also targets the Cardiff Met staff and also opens up to the public, which means that they have a very diverse group of clients. There are a number of products and/or services that NIAC offers. It offers student sport, children’s sport, sports medicine, sports facilities, fitness classes, fitness assessments, strength, and conditioning as well as sports development (Cardiff Metropolitan University 2019). Using the Boston Consulting Group’s (BCG) product portfolio matrix, one can surmise the products and/or services that the organization should concentrate on. Hanlon (2018) notes that the BCG matrix is designed to help with long-term strategic planning by aiding an organization in reviewing its portfolio. The star of the portfolio is the indoor arena, which is a state-of-the-art facility. The problem child is the physiotherapy and that massage treatment services and center. The cash cow of the portfolio is the fitness facilities that they offer to the general public. The dog is children’s sports because few children have enrolled at NIAC. The facilities help to generate more income for the company, and that is why they are the star product. The range of products and services that they offer shows the commitment that the organization has to become an all-rounded fitness facility.

Internal Business Capabilities

The organization is structured in a top-down manner. At the top of the hierarchy is the director and the deputy director. Then there is the operations team that is comprised of six individuals. There is the administration and reception team that is made up of six individuals. There is the sports development team that is made up of one key individual as well as other subordinates. There is the fitness team that is made up of the fitness manager and the fitness instructor as well as other subordinates. There is the strength and conditioning team that is made up of the strength and conditioning manager together with their assistant. Each specific department is run by a manager who is a professional in their field, which means that they have autonomy of decision. Major decisions are made by the directors.

Section 2: Evaluation and Recommendations

The second section revolves around evaluation and recommendation. The tool that will be applied for this section is the SWOT analysis. Fallon (2018) notes that the SWOT analysis is a tool that helps organizations become fully aware of the factors involved when making decisions. SWOT stands for strengths, weaknesses, opportunities, and threats, and it allows an organization to overcome challenges and determine where they should invest in.

NIAC has various strengths that work in favor of the organization. The fact that it is considered to have one of the best indoor athletics tracks is a major advantage. It was the first purpose-built indoor athletics track in the UK, and it has been rated to be one of the best indoor arenas in the UK. As such, the organization has a strong reputation and strong brand awareness. Goodson (2012) notes that brand awareness is very important for an organization since it conveys credibility and informs the clients of the experience that they should expect from the company. Clients who enroll at NIAC or seek to access their products and services will know that they will be accessing state of the art facilities as well as products and services. Another key strength lies in the organizational structure. The organization’s structure is divisional. Alton (2017) notes that in a divisional organizational structure, the leadership of the company is structured in relation to different products and/or services. In the case of NIAC, the leadership is divided based on the different fitness components such as strength and conditioning, sports medicine, student sports, and children sports. The divisional organization structure works in the fitness industry since the different aspects of fitness require an individual that is well versed in that aspect. As such, each fitness division has an expert as the manager, which is a major strength for the organization. Therefore, strong brand awareness and credibility, as well as the divisional organizational structure, are major strengths for the organization.

There are various weaknesses that can be noted in NIAC. Key weakness lies in the sitting capacity of its indoor arena. The indoor arena can only sit 690 spectators, which means that the arena cannot be used to host major sports competitions due to its lack of sitting capacity. Conversely, its outdoor areas may be used, but sitting capacity will also be an issue. Another key weakness revolves in the prices that it charges for the use of the facilities. For Cardiff Met Student’s they get one year free. If all the students who use the facilities paid a modest sum of £10, it would go a long way in helping to generate funds for the organization. One of the objectives of the organization is, “to generate income for reinvestment into Cardiff Met Sport from the commercial operations & fundraising activities”(Cardiff Metropolitan University 2019). In failing to charge students even a modest fee, they are missing out on an opportunity of generating funds for the organization. Additionally, having Cardiff Metropolitan University students as the key clientele is a gross oversight for the organization. The issue lies in the fact that students rarely have enough disposable income to spend at a fitness center, let alone survive in the university. Therefore, in terms of selecting their key clientele, the organization has erred, and it should consider shifting its key target personnel.

The organization has a number of opportunities. A key opportunity is that the fitness center can target the young working professional between 25 years and 30 years. Adams (2019) notes that it is important for an organization to aim at a market segment that is profitable in the sense that they have more disposable income. The working professional between 25-30 years has significantly more income than an individual who is in the university. Since they have more disposable income, it would be important to target them since they have enough money to spare for fitness purposes. As such, making the 25-30-year-old professional the primary target clientele is a great opportunity. Another opportunity lies in the form of online fitness coaching. Laidler (2017) notes that the popularity of online personal training is increasing rapidly. Majority of the 20-30-year-old professionals may not have the time to go to a fitness center. Giving them a customized program that they can perform at home or when they have access to a fitness center is a great opportunity. Additionally, online marketing is also another opportunity that should be seized. Kaplan (2019) notes that digital marketing is an avenue that all businesses should explore more so in the 21st Century. Majority of modern individuals tend to spend a lot of their time online. Therefore, a business should create authentic content that will reach those people. NIAC has an opportunity to expand its clientele through the use of digital marketing.

There isa number of threats that may affect NIAC. The key threat lies in the ongoing Brexit deal. Brexit is affecting every industry, including the fitness industry (Lefevre 2016). The deal is expected to be wrapped up by June at which point the industry may stabilize or it may continue to spiral. The deal may increase the cost of doing business, which means that NIAC will have to pass the burden of the cost to their customers, which may cause the clients to seek another cheaper option. Another threat is in the form of their competition. There is stiff competition in the fitness industry due to the existence of substitute products and services. Moreover, the threat of new entrants is very high since the initial capital required is not high. Therefore, while growth in the industry is tremendous, the fear of new entrants abounds in the market.

The National Indoor Athletics Centre (NIAC) is based at Cardiff Metropolitan University. It is part of the fitness industry, which is considered to be a billion-pound industry that continues to grow as more people seek to live a healthy and fit lifestyle. NIAC seems to have established a foothold in the industry, given its diverse clientele and the credible brand that they have created for themselves. There are a number of opportunities that the organization can seize upon to enable it to continue to thrive in the market.

The National Indoor Athletics Centre (NIAC) is s full-service sports complex situated in the UK. Its key function is to develop strong sport idea in the UK. NIAC is providing a contemporary and complete center for training and practicing professional sportsperson and for society. Through the core values, NIAC is expected to be a destination for the community and sports visitors. The aim of this assignment is to develop a marketing strategy for the organization so that it can reach to more people who are interested in sports. Through the marketing plan, NIAC is intending to strengthen the relationship with existing and possible customers. The marketing tactics will be the guide to satisfy the objectives of the organization. The marketing plan outlines the key target markets and essential approaches for enhancing awareness to notify the people regarding the benefits of NIAC. The marketing plan will result in growth in the number of visitors and income for the organization. By sponsoring existing resources, quality facilities, excellent controls and expert level of maintenance, the organization will enhance the quality of life of people. The summary of the marketing plan is to enhance the number of engaged individuals and the awareness of the organizational services, which will bring the growth in revenue.

NIAC will be an indoor athletic track which will have the number of facilities for a complete competition. The customer profile of NIAC is mostly students and professional athletes. Furthermore, it will also concentrate on the public who are interested in sports and this is the market where NIAC can earn revenue. Creating a list of possible customers necessitate a targeted marketing strategy, with specialized promotions and periodic functions targeted at the customer group. The target market for NIAC can be classified into seven profiles, which are discussed below.

Weekend athletes: This is a vital target customer for NIAC. Customers who fall into this group typically do not prefer to be locked into long run commitments, however, they prefer the freedom to come and leave the sports ground when they have free time and opportunity to present themselves as sport likers. They are likely to pay high charges as a walk-on space accessible basis (Baggett, 2015). They are the possible target market for NIAC for restricted membership option that would give the capability to reserve time and tool, but this is presented at a higher charge in comparison with persons who have complete membership package for the organization.

Hard-core health enthusiasts: Another important target market segment for NIAC is hard-core health enthusiasts. These are people who are very specific regarding the type of exercise and type of tools they use and typically enjoy the prospect to be observed by other people or sportspersons of NIAC. On condition that appropriate facility is accessible, this target customer group is eager to stay and involve in the organization with long-run commitment with the facilities they enjoy.

Gym lovers: The third important target market segment for NIAC is gym lovers. These are people who love to be in the gym and like physical exercises. These customers seek to find venues where they are able to play, practice or just exercise, typically at a reasonable rate. They will like to hang out in the facility of NIAC (Ice Skating Training Facilities, 2015). The better the environment of NIAC, the more viewers will watch them practice and the more this customer group is attracted to NIAC. This type of customers is able to give a steady source of income for the organization throughout the year and hence is an important target.

Families: Families are the core customer group for NIAC. The facilities of NIAC have something that appeals to everyone with different age group and skills. The facility is developed to give a positive and healthy environment that will attract family customer segment who desire to become members of NIAC owing to particular sports interests or that can also merely desire to spend few hours of leisure fun in NIAC (Baggett, 2016). This customer group will also be a key target for sporting activities of students during summer camp and other functions that permit for sport and education for them while the parents can enjoy some relatively inexpensive watching of sports.

Senior citizens: Senior citizens are forecasted to be the quickest growing target market segment for NIAC as an increasing number of people are appearing at the retirement stage. When given with good health-promoting programs, this customer segment will be willing to involve in the organization owing to the increased emphasis on physical activities in recent times and continuous inspiration from family members and doctors. Over the past decade, people with an age group of average 50 years have proved to be the quickest increasing club membership segment. It grew up four times faster in comparison with other customer segments. The number of the aging population will continue to grow over the next several decades as the life expectancy of people increases.

Business travelers: Business travelers are a small market segment of NIAC. Businesspersons who are attending conventions, trade shows, and conferences are attracted to use the facility of NIAC for different reasons without any stress or hassle. A simple regular walk or run in the track of NIAC will make it a very attractive location for exercises for this customer segment. A marketing promotion strategy with hotel companies can be developed for attracting this type of customers in order to pay a small charge to offer a complimentary day passes for all visitors (Crossroads Consulting Services, 2015). Some communities will appeal to diverse size sessions, seminars, trade shows, and conventions. Some attendees can arrive early or stay over in order to enjoy the leisure and the facilities. They can also bring their families along for a holiday and therefore can become a customer for NIAC.

Travelers: Travellers are another small target market segment for NIAC. Depending on the community, NIAC can also attract travellers for visiting the athletes and their performance to the facility. The structures of NIAC can become tourist attractions owing to its different and interesting appearance.

Age Distribution

The biggest age group for the target market for NIAC is 18 to 35 years ago. This age category is fostered within the society as students and athletes who are active in the community. They participate in sports and use the playgrounds and also seek for a location where they can exercise and release energy. This age group brings focus to another target customer group which is people with 35 to 55 years ago. These are typically professionals and business persons who can use the premise of NIAC for a variety of reasons discussed above. NIAC has different athlete divisions such as long and triple jump, high jump, pole vaults, and weight training among others. With these divisions using sports as a key attraction, this will automatically bring the parents and other family members that will fall within the age group of 35 to 55 years along with the athletes with 18 to 35 years.

Income

Income provides an extensive measurement of spending capability for target customers to purchase the services of NIAC and to participate or involve in sporting events and exercises. NIAC will target mostly the medium income group customers with an income of about £25000 to £50000 per annum. This particular target customer represents a significant proportion of the population in the UK and hence will bring benefits for NIAC.

Product

NIAC provides quality facilities, excellent control, and professional level maintenance of premise and tools. It provides sports activities for students, athletes, citizens, and visitors of NIAC. To the target customers, it is an exclusive facility that gives satisfaction with an extensive variety of services. Furthermore, NIAC also brings a quality experience to the family members also where they can enjoy the sports events. NIAC professionally maintains fields to comprise athletic tracks, long and triple jump pits, competition and training vault pits, high jump pits, training nets, biomechanics laboratory, sports physiotherapy treatment, and weight training area. It is a home location for athletic youth. NIAC also provide services for recreation enthusiast within the society.

Along with these services, NIAC will give the customers with qualified and knowledgeable staff in order to ensure all the sporting and fitness requirements are fulfilled. NIAC will house a huge fitness center which will match other weight centers in the city. The fitness center will comprise top line equipment for sportspersons. This aspect of NIAC will be operated by certified strength and conditioning specialists/. Their responsibilities will comprise general supervision

personalized training for the members, program development and supporting in marketing and promotional functions.

Pricing is an important function of marketing tactics as appropriate pricing can help to attract and retain the customers. There are different pricing strategies that can be used by any organization. In this context, NIAC will use the value-based pricing and psychological pricing strategy. With respect to value-based pricing, NIAC will set price on the basis of how much the customers consider what the services provided by the organization worth paying for. It will use market analysis in order to understand the appropriate value for the services and facilities it provides to the customers and accordingly set prices. Furthermore, NIAC also intends to develop pricing according to the type of customers. For instance, for sportspersons and students, the pricing will be different; on the other hand, for business personas and travelers the pricing will be different. Different pricing packages will be developed for different customer segments according to their psychology and requirements. It will help to satisfy all the target markets.

NIAC will be located in the UK and will be open for everyone. It will be accessed through road transportation and the location will give a fantastic experience to the target customers. The place is isolated from the city’s traffic rush and therefore will provide a large and open environment for athletes. There is presently no other sporting facilities of this kind in the nearby area, which will give added advantages to the organization.

In order for NIAC to obtain new customers and also to retain existing customers, people require to be aware of the organization and its programs and services. This can be done through proper promotions. To successfully promote the services the following tactics can be used by NIAC.

Strategy 1: NIAC will increase brand awareness by using an advertisement to the specified target market groups. It is vital to create awareness about the organization and its facilities to the target market. In order to draw attention, the advantages of NIAC will be demonstrated by creating a general marketing campaign. The marketing campaign will comprise.

Social media: Social media will be used to promote the services and facilities of NIAC to the vast audience. The social media pages of the organization will be updated regularly to notify about any new programs or occasions or facilities of the organization. The posting will include sporting events, playgrounds and any other happenings at the organization. It will provide information about what’s going on in NIAC.

Print advertisement: a Print advertisement will also be included in the promotion program of NIAC through the program guide, direct mail, and quarterly magazine. The program guides will be available at the facilities of NIAC and it will have a direct connection with the organizational website. Apart from that direct mail will be sent to the residents who are nearby the organization (Greenwell & Thorn, 2017). NIAC will perform with advertisement agencies to support in developing an advertisement that will comprise captivating images of the organization, list of facilities and services and contact information.

Email: Email will also be sent to prospective customers in order to develop a connection with the target group who might be interested in sporting and recreational functions. The email will comprise information regarding happenings of the organization, games, walking trails and playgrounds among others.

Website: The website of the organization will be made much interactive and will be updated at a certain time interval. It will add a map of the location of the organization and will provide links to additional sites for events and services. The website will also feature an image gallery of pictures of the organization that will be gathered through social media contest.

Newspaper: Newspaper will also be used with a complete page article on NIAC. The newspaper will provide information regarding important tournaments throughout the year in order to generate awareness of what the organization offers to society as a whole.

Strategy 2: NIAC will generate awareness about the organization by sponsorship prospects providing legitimate associates in the society. In order to obtain support and visibility throughout society, sponsorship is an effective strategy, which helps to generate public awareness. NIAC will provide a premier marketing opportunity for local and regional businesses. It will provide postcards for giving information regarding sports schedule and tournament information. It will also give information about becoming a sponsor. The organization will use the membership list email and postcards directly for promotion (Gibson, 2008). In the organizational website, there will be a separate section for sponsorship within the organizational complex. The section will highlight every sponsor of the organization and will also provide sponsor logos.

Strategy 3: NIAC will promote the advantages of the utilization of facilities of the organization. Recognizing the advantages of the use of facilities at NIAC will comprise physical, psychological, social and emotional health and wellness. Promoting advantages from the organizational resources lead to constant effort to give a quality life to the customers. The weight training area will provide exercise and fitness facilities for the sportspersons.

Strategy 4: NIAC will develop strong relationships with business organizations, schools, colleges, and universities in order to develop programs and events that provide benefit to students and employees. It is important for the organization to create awareness regarding the benefits of NIAC through these institutions. Concentrating on target customer groups will allow for the organization’s marketing effort to be through the schools, colleges, and universities for fitness and sporting programs and prospects (Hurley, 2004). NIAC will use flyers, which will be distributed through the educational institutions and business organizations, which will provide information to what the organization has to offer in an effort for the students and employees to use it for their wellness program.

Strategy 5: NIAC will enhance promotional prospects through advertisement and conferences. The advertisements of the organization will be included in different sports selection site, which will motivate athletes to observe NIAC as a key destination in the state for involving in sports events and competitions and also other business organizations for hosting those events. Furthermore, NIAC will also use expo displays for promoting products and services. It will involve in different trade shows throughout the area and sue the opportunity to expose NIAC to different tournament organizations, to involve with people, to make contacts for possible partnerships and to demonstrate curiosity and urge people to visit NIAC.

Positioning

NIAC will position itself as one of the best places sustainable competitive and recreational sports centers in the UK for sportspersons, students, and families. It will provide a secure location for every customer that enjoys sport and well being. It will strive to create a healthy society through people, facilities and programs.

References

Adams, D., 2019. What are the characteristics of market segments & target markets? Small Business Chronicles.

Baggett, J. (2015). Rocky Mount Sports Complex. Consumer Behaviour and Means Theory. Retrieved August 14, 2019, from

Cardiff Metropolitan University., 2019. National Indoor Athletics Centre (NIAC).

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