Running head: MARKETING MANAGEMENT MKT522
First Draft
Your Name
Marketing Management MKT522
Date
Professor Phil Shaps

Table of Contents
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Executive Summary
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Situation Analysis

Gladiator Tough is a business that focuses in creating products for fitness gurus. The company believes people who are active in fitness, need products that will keep them looking fresh, comfortable and empowered while they do their fitness activities. The main concern of this company is to comfort consumers while they exercise. There are about “three million sweat glands in a human body” and people need an object to absorb the moisture off their body (http://www.popsci.com/science/article/2011-01/fyi-how-much-can-human-body-sweat-it-runs-out). This is how the Gladiator Towel was created.
The gladiator towel is light weight and absorbs more water than a regular towel. This is why Gladiator believes this product will be a success. People are becoming for health conscious and have been eating healthier and exercising more often. This is why Gladiator Tough believes now is the time to hit the market while it’s expanding. Gladiator Toughs marketing strategy will be the strength of creating brand and product awareness to a specialized market.
Market Summary

Even in the midst of the economic downturn, the fitness industry has maintained steady growth, with gym membership rates growing consistently and profit remaining solid. Demand for gyms health, and fitness clubs will continue to grow over the next five years. The reason for the growth is the general public is becoming more health conscious and the aging population places a greater emphasis on staying fit (http://www.ibisworld.com/industry/default.aspx?indid=1655). People who are fitness savvy will be found in gym facilities, marathons, runs, relays, sport recreations, boot camps and any type of activity which involves cardio exercise or strength training.
Below is a chart that indicates how many fitness facilities are in the United States.

| Product/Services | Share | | | Gyms and fitness centers | XX% | | | Other | XX% | | | Dance centers | XX% | | | Swimming pools | XX% | | | Ice and roller rinks | XX% | | | Tennis centers | XX% | | Key Industry Figures | 2010 | 2011 | | Industry Revenue | *24,227.5 | XXXX | $ million | Revenue Growth | *2.2 | XXXX | % | Industry Gross Product | *11,675.1 | XXXX | $ million | Number of Establishments | *32,820 | XXXX | Units | Number of Enterprises | *28,912 | XXXX | Units | Gym and health facilities have grown so much which will help to sell the Gladiator Towel. The target market will be athletes, gym members and people who exercise. According to U.S Census Bureau Los Angeles County population from 2009 estimate 9,848,1136 . Lagyms.org is a website that demonstrates the demographics of gym facilities in Los Angeles County. Base on one city alone there is a number of gym services just in this small area of the La County. * North Hollywood Health Clubs & Gyms (344) * North Hollywood Health & Fitness Consultants & Personal Trainers (97) * North Hollywood Gymnastics Schools (13) * North Hollywood Karate, Martial Arts & Self Defense Schools (13) * http://www.lagyms.org/?keyword=&zip=north+hollywood%2C+CA

However, the business needs to see the strengths, weaknesses, opportunities and threats there is in the industry.
SWOT Analysis

Strengths: * Guaranteed 4.5M Bank Loan * Strong relationship with four different manufacturers * Promotional Alliance with popular gyms and colleges * 10 years experience in Fitness industry, specifically in exercise products/equipment
Weaknesses:
* Our company has no market presence or reputation * No Sponsorships or famous athletes wearing the brand * Competitor Nike * Have no customer loyalty
Opportunities:
* The market sector is expanding, with many future opportunities for success * Obtain brand recognition * Social media is becoming more health conscious
Threats:
* A competitor has a new innovative clothing to hold moister (Nike Dri-Fit) * Competitors have product in many retail stores * No customer loyalty
Competition

Gladiator Tough is coming into the towel industry. They are trying to form their own market. There are existing competitors which already have some of the target market. These competitors are the Hysupplies, Rally Towels, Raphil USA and Nike. Hysupplies, Rally Towels and Raphil USA are in the wholesale business. They sell towels in bundles therefore they may interest sports teams and leagues for their business. Nike in the other hand has a substitute that can affect the use of a towel. They have Dri-fit clothing that absorbs sweat and can decrease the use of a towel. Moreover, the biggest competitor for Gladiator Tough would be Rally Towels and Nike. Rally Towels has been in the business since 1997, and therefore, are experience in the business. They were first a towel manufacturing business and later merged with the screen printing process. They are the #1 Custom Towel producers in the United States. Rally Towels strengths are they offer full decorating capabilities, have experience and recognition in the industry, have market share, and the best name in the towel category. They have big clients such as the NBA, NFL and other popular companies. Another very important information is they have exceptional customer service where they track customer orders from beginning to end so that they are sure to get the absolute best finished product (http://rallytowels.com/index.html). Rally Towel target market is business industries that need towels. They have a twenty-five minimum rule which can be there weaknesses because if an individual wants to purchase a towel as a gift they have to purchase a minimum of twenty-five (http://rallytowels.com/handfitnesstowels.html). This is an advantage for Gladiator Towel because we provide business to consumers who want to purchase a single towel. Although Rally has a big advantage in the sports industry Gladiator Tough can sooth the market with our competitive advantage which is the material of the towel and the velcro on the corners of the towel. Rally Towel only has cotton material where the Gladiator Towel is polyester and absorbs more moisture then cotton. Aside from Rally Towel, there is another competitor in the market has a portion of the market, and that is Nike. Nike is a well known brand for athletes and people who exercise. They sell a variety of products such as shoes, sports gear, fitness gear, and sports equipment. They are a national brand which sells all over the globe. “For the third consecutive year, Nike was ranked as the Most Admired Company in America in the Apparel industry, according to Fortune Magazine. Nike was second behind Apple in Innovation in the overall rankings of more than 300 companies.
In addition to placing first in innovation in Apparel, Nike also topped the industry in social responsibility – up from third a year ago – as well as financial soundness and long-term investment (http://www.nikebiz.com/company_overview/awards_recognition.html).” One of their new innovative products is there Dri-fit clothing. Dri-FIT workout t-shirts is a new material which features moisture technology to help keep cool and dry. This is not a towel but it is considered as a substitute because it absorbs sweats. This is a disadvantage to Gladiator Towel because if this new innovative shirt is keeping the market dry than there will be no use for the towel. However, there weakness would be that the shirts cannot be customized with colors or decorating capabilities. These shirts are created by Nike and sold at retail stores. Moreover, let’s give more detail on what Gladiator towel is all about.
Product Offering
The gladiator towel is a lightweight polyester fabric that absorbs sweat to keep consumer cool and dry during any workout routine. It offers the soft feel of cotton when applied to remove moisture. It absorbs more than a traditional towel, and is a convenient fit to gym bag or pocket. This towel can be customized to a consumers liking, it comes in twenty different colors, and three sizes to chose from, 11X18” 17X13”’ and 20X16”. The gladiator towel can be personalized with specific lettering, such as, a team name, slogan or quote.
The Gladiator towel will stand out from all the other towels because it is uniquely designed for the consumer at their liking. The towel can be washed and dried without getting damaged. The towel has velcro strips on each corner of the towel so the customer can wrap the towel around the neck or any body part without it falling during movement. For example if customer is running 5 mile and do not want to hold the towel in their hand they can simply strap the towel around there neck and not worry about losing or dropping the towel. The velcro will be covered by a soothing material when it is not in use so consumer will not have to worry about getting scratched by the velcro material.
The processes of getting the product into the consumers hands is they will be sold at popular gyms such as La Fitness and 24 hour fitness. The market can also purchase the towels at the gladiator website which is www.gladiatortoweltough.com. The site has a step by step ordering process for customers to personalize their towels. It has a virtual image of the towel where customers can view a sample of their without waiting for delivery. This is a great advantage because consumers can view the towel immediately to make changes if they dislike the outcome. The product will be delivered in environmentally safe packaging that can be recycled. Customers have a 5 year warranty of the Gladiator Towel, if it gets damaged it will be replaced at no charge.
Keys to Success
The market is becoming more health conscious and the media is encouraging individuals to look their best. This increased gym membership registration which means more Gladiator Towels can be sold. Gladiator Tough researched the market well, and realized there is no company that sells towels to individual consumers that have the ability to customize the towel at their liking. For example it can be a graduation present, birthday present or just a regular purchase. The key to success is to give consumer a competitive price at a great quality.
The company has defined the market as accurately as possible so they have a deeper understanding of exactly who they are going to be selling to. The main aspect of the company is to provide brand awareness and Gladiator Tough will provide this by giving satisfying our consumers 100 percent. We will satisfy them by providing the best customer experience and listening to their feedback on the product.

Critical Issues
Gladiator Towel will be sold at retail stores, fitness events, internet and intermediaries. The retail stores that will be selected are athletic stores such as; Big Five, Sports Authority, and Sports Chalet. At the fitness events we will hold a tent where consumers can buy the towels from. Such events will be relay races, marathons, triathlons, mud runs, sports tournaments and fitness competitions. Aside from distributing the towels face to face we will also use third party companies to sell the towel.
The internet is a good source to have to distribute the towels. Facebook is a good way to market the product. Advertisement will be held on the Facebook website to bring more brand awareness. If the customer clicks on the ad it will bring them to the Gladiator Tough website. Intermediaries that will help sell the product will be Fitness facilities. These fitness facilities are well know gyms such as La Fitness, 24 Hour Fitness, Golds Gym, Spectrum, Curves and Bally Total Fitness. The gyms will have these towels on display and the personal trainers will advertise them to their member. In return we will market their gym on our website.

References
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