Conway Recreation Center Marketing Plan

Foster Hughes PRT 507

Spring 2015

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Table of Contents

Executive Summary………………………………………………………….…3

Introduction……………………………………………………………………..4

Situational Analysis…………………………………………………………….6

Competitive Analysis…………………………………………………….….….9

Customer Analysis…………………………………………………………….11

Marketing Goals……………………………………………………………….14

Marketing Strategy & Tactics…………………………………………………15

Implementation and Control……………………………………………….….17

Evaluation………………………………………………………………….….18

Appendix………………………………………………………………………19

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Executive Summary The Conway Recreation Center is a membership based facility that is operated by the City of Conway Parks, Recreation and Tourism Department. The center is 60,000 square feet and has the following amenities: Double gym, cardio room, weight room, fitness room, indoor pool, party room, Hydro massage, 75+ aquatic/fitness classes weekly, a tenth mile elevated walking track and meeting space. Memberships are available for city and nonresidents. An annual commitment is required as a part of membership. We are proud to have won the Horry Independent Reader’s Choice Award for Best Fitness Facility for 2012, 2013, 2014 and 2015.

Memberships are available for youth, adults, couples, seniors, students and corporate discounts are also available. The average monthly membership rate for a city resident senior is $20.00. The average monthly membership rate for a city resident adult is $35.00. The Recreation center has been self-sustaining and operating in the black since opening on September 1, 2011. The Center is operated as an enterprise. All revenues from the center go to pay all expenses including salaries, instructor fees, utilities and debt service. The average annual budget is $900,000.00. Currently, a total of $600,000 in excess revenue has been allocated to fund balance over the last three and a half years.

Some of the goals of the Conway Recreation Center are for the facility to continue to be self-sustaining. To continue to provide a quality service to our members. To encourage growth of our membership in certain target markets.

Some of the strategies involved in carrying out this goals shall include generate enough membership sales to maintain self-sustainability while reaching out to target markets that have been underserved. Work through staff to gather information from members of those underserved target markets to determine how to make their experience at our center more enjoyable.

By implementing this marketing plan, the Conway Recreation Center should be well positioned to continue to be successful in the future and continue to be the recognized leader in fitness promotion in Conway, South Carolina.

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Introduction OUR MISSION It is the mission of the Conway Parks, Recreation and Tourism Department to enhance the quality of life for all citizens through the development of sustainable facilities, services and programs that promote a lifestyle of wellness and physical activities for all ages.

BACKGROUND The Conway Recreation Center opened on September 1, 2011. The Center is membership based and has been mandated by the Conway City Council to be self-sustaining. The Recreation Center is a special use facility, operated under the Parks, Recreation and Tourism Department for the City of Conway, South Carolina.

The Conway Recreation Center was many years in the making. In 2002, the Conway City Council authorized the Recreation Advisory Commission and staff to create a survey to determine the recreation needs for the community. The number one request was for gym and multipurpose space. In May of 2008, City Council started working on potential funding for the project. In March of 2009, City Council created a committee consisting of council members, Recreation Advisory Committee members and Recreation Staff to explore design options for a Recreation Center. In November of 2009, the Parks and Recreation Director retired. In February of 2010, a new Parks, Recreation & Tourism Director was hired. At this time, the team of Dargon Construction and Pegram Associates were selected to design and construct the new facility.

The cost of the new Recreation Center was $5,121,000. Funding for this project came from a variety of sources. They included Storm Water funding in the amount of $121,000, a HUD grant totaling $100,000, General fund allocations of $500,000, General Obligation Bond in the amount of 1,000,000 and a partnership with Horry County and Horry County Schools for Tax Increment Financing in the amount of $3,500,000.

City Council broke ground on the project in May of 2010. While construction was under way, the Recreation staff was informed that Council had a fear that due to the cost of the facility, there would be a backlash from the public for spending such a large amount of money on “recreation”. City Council mandated that the Recreation Center would be self-sustaining through membership fees, programs, naming rights, and facility rentals. While construction was underway, staff worked diligently to come up with fees, charges and programs to offer at the facility. The Conway Recreation Center boast 60,000 square feet, the second largest Fitness Center on the Grand Strand, second only to the North Myrtle Beach Aquatic and Fitness Center which is 62,000,000 square feet.

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Conway Recreation Center Amenities and Programs

• a double gym separated by a curtain with seating for 200 on each court

• a large meeting space and catering kitchen that can be divided into 3 smaller spaces

• a fitness room • a cardio room with 35 pieces of cardio

equipment; • a weight room with a variety of free

weights and machines, • 25 meter indoor pool with zero depth

entry and

• a kids play room • A party room. • 1/10th Mile Walking Track • Unlimited Hydromassage • 75+ Aquatic/Fitness classes offered

weekly. • Swimming Lessons • Swim Team • Pickle ball • Table Tennis • Weight loss programming • Classes and special events

The Parks & Recreation Department administrative offices are also located in the Recreation Center. The initial goal was to have 1,500 members when the facility opened. On opening day, September 1, 2011, the center had 1,800 members. The next goal was to have 2,500 members by January 1, 2012. The center had 3,000 members by that date. The membership increased to 3,500 members by February 15, 2012. By June 1, 2012, 4,100 members were at the Recreation Center.

Of the 27 full-time employees, 50 part-time employees, and 75 independent contractors and approximately 200 volunteers that are affiliated with the Parks, Recreation & Tourism Department, 7 full time employees, 40 part-time employees and 30 independent contractors are assigned to the Conway Recreation Center. As of February 1, 2015, the Conway Recreation Center currently has 3,100 members. Two additional fitness centers (Jungle Gym and Planet Fitness) have opened in the last two years, resulting in members leaving to join other gyms.

Previous marketing efforts have included the following:

Newspaper advertising, Town Planner community calendar listings, direct mail, social media through Facebook and Twitter, and television advertising.

Current marketing efforts include the following: Newspaper advertising, Community Calendar listings featuring discounts on fitness classes, swimming lessons and no enrollment fees, The annual Getting to Know Conway magazine, billboard advertising, word of mouth, television advertising, social media, direct mail to all city residents who receive a water bill twice yearly

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SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats)

INTERNAL ANALYSIS Strengths

Weaknesses

• Relatively new facility (3 ½ years old), 60,000 square ft., currently the second largest recreation center on the grand strand.

• We offer a wide variety of aquatic/fitness classes.

• We offer low to no cost memberships through SilverSneakers & Silver and Fit.

• The Recreation Center has been self-supported through memberships, classes, rentals and sponsorships since opening in 2011 without being a burden on the city resident tax payer.

• We are a family friendly center that has a focus on better health for our members.

• We have a dedicated, loyal and well trained staff.

• Our location makes us easily accessible to the community.

• We tend to be proactive rather than reactive with the latest fitness trends.

• We provide programs for ages 4 to 104.

• The overall health of the community has improved since we have been open.

• We are a gathering place for social interaction.

• We offer a variety of membership options at reasonable rates compared to the amenities offered.

• We require an annual (1 year) commitment from our members.

• We have no spa or hot tub. • We have outgrown our current foot

print and need to expand our fitness class areas, weight room, and cardio room and office space.

• We have to deal with Municipal Government red tape in getting approval for fees, charges and adoption of certain membership regulations.

• We offer NO short term memberships. • We compete with the commercial

sector and we have a small advertising budget ($10,000) making it difficult to compete.

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EXTERNAL ANALYSIS Opportunities

Threats

• We have the opportunity to gain new members when The Conway Wellness Center closes in July, 2015.

• Opportunities to partner with Horry County Schools and Charter schools to offer free swimming lessons to all 2nd Graders in Conway.

• Encourage civic groups to hold their weekly meetings in our meeting space.

• Partner with other agencies to bring in more classes such as the Arts Guild for youth/ adult arts and craft classes; Cooperative Extension to offer meeting space for 4-H, gardening seminars and self-help classes.

• Extend our promotion of the Conway Recreation Center to neighborhoods with HOA’s, Promote through the Chamber email blasts, real estate agents for new home sales and the Welcome Wagon those who are relocating to the area.

• We currently compete with 5 fitness facilities.

• Facilities with no annual contract and very low monthly membership rates.

• The stigma of being known as mainly a senior’s fitness center.

• The political environment of being a pay to play facility that must pay for itself.

• Downturns in the economy can have a disastrous effect on our operation.

• Being located in a coastal area (13 miles from Myrtle Beach), we are prone to hazardous weather on occasion.

Based on the SWOT analysis, the Conway Recreation Center is a well-run facility that has a track record of being financially self-sufficient. The center is neat and clean and offers a variety of memberships ranging from youth to adult to couples to seniors to corporate. The Recreation Center concentrates on being proactive by offering the latest fitness trends and providing quality instruction and equipment to allow the members to meet their fitness goals. The center encourages fun and fellowship among its members.

The Conway Recreation Center will continue to struggle with governmental red tape, the pressures of being mandated to be financially sustainable and competition from national fitness chains who have more resources and offer services at a lower price point.

The biggest opportunity that exists is for the Conway Recreation Center to capitalize on reaching out to the members of the Conway Wellness Center. This facility is run by the Conway Hospital and has 1,700 members. They are closing their doors in July of 2015 to make room for more surgical suites and office space. Gaining a quarter of their current membership will solidify financial stability for the foreseeable future.

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Our Positioning Statement-“We are a family friendly membership based fitness center that offers our members social interaction, personal training, group exercise classes, weight training, cardio conditioning, aquatic programs and a variety of special events for all ages offered by a motivated and encouraging staff ready to help you meet your fitness goals.” Our USP (Unique Selling Proposition) – “For fun and fitness, we are the place to be!”

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Competitive Analysis Currently, there are five fitness facilities located with a 10 mile radius of the Conway Recreation Center. Those facilities include the following:

• Conway Wellness Center (6.5 miles and 12 minutes away) o 24/7 access o Cardio and weight equipment o 25 yard 6 lane pool o Cardiac rehab o Fitness classes offered (25 classes offered weekly) o Facility is closing – July 2015

This facility opened in 1997. The 18 year old center is affiliated with the Conway Hospital, which operates under not for profit status and offers cardiac and pulmonary rehabilitation to many of their members. The majority of their membership is seniors. Their membership is the most expensive on the Grand Strand at $48.00 per month. They are closing their doors in July of 2015 so the Hospital can use the space for additional surgical suites and office space. Competition from the Conway Recreation Center and Planet Fitness has taken on toll on their membership.

• Fitness Edge (9.5 miles and 17 minutes away) o Cardio and weight equipment o Childcare for an additional fee. o Personal training for an additional fee o Small indoor heated pool o Dry heat sauna o Heated whirlpool o Family friendly o Massage therapy available for additional fee.

This facility opened in 2002. The facility size is approximately 25,000 and they are actually located in Carolina Forest. Because of the driving distance, we consider them an indirect competitor. Their membership rates are slightly lower at $30.00 per month with an annual commitment.

• Jungle gym (1.5 miles and 2 minutes away) o 24/7 access o Cardio & weight equipment o Personal training for an additional fee. o Age 15+ are welcome.

This facility caters to the “meat heads” or “gym rats” of fitness. These are the ultra-serious weight lifters age 18 – 59 market, with the majority of members being male. A former employee of the Conway Recreation Center opened this facility. This center has helped the Conway Recreation Center by removing the majority of trouble makers from our membership. The focus of this facility is not on cleanliness.

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• Planet Fitness (1.5 miles and 2 minutes away) o 24/7 access o Cardio & weight equipment o $10 membership with no contract. o Nationwide access with Black card membership (annual contract) o Free guest admission with Black card membership o Unlimited hydro massage o Use of tanning beds o Unlimited total body enhancement o Unlimited use of massage chairs o Unlimited group fitness training o Age 13+ are welcome

This facility opened in January of 2014. They boast the largest assortment of cardio and weight equipment in the area. The facility size is approximately 34,000 square feet. Their low monthly fee of $10 and no annual commitment has persuaded over 400 of the Conway Recreation Center members to join. They cater to the 15 – 39 market by offering high quality equipment, free personal training, and free tanning (with Black card). This franchise is backed by a nationwide multi-million dollar marketing campaign.

• Rivertown Fitness (2.3 miles and 6 minutes away) o 24/7 access o Cardio and weight equipment o Personal training for an additional fee. o Limited group fitness classes (4 classes offered per week). o Age 16+ are welcome.

This is a fairly small facility located in the central business district of Conway. They are small, with a footprint of approximately 2,500 square feet. Their rates are comparable to the Conway Recreation Center without all of the amenities. Not much else is known about their clientele.

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Customer Analysis When asked by advertisers “What is your target market?” Our answer is ages 4 to 104. The reason is because we offer program for those age ranges. We are a public facility and in an effort to honor our Mission, we want to promote a lifestyle of wellness and physical activities for all ages. As of February 1, 2015, the Conway Recreation Center had 3,100 members. The current population of Conway, South Carolina, based on 2013 US Census estimates is 19,300. Based on these estimates, approximately 16% of the population work out at the Conway Recreation Center. Males make up 45.7% of the population, while females make up 54.3% of the population. Total land area within the city limits is 21.94 square miles. Coastal Carolina University, Horry Georgetown Technical College and Miller-Motte Technical College are all located within the City limits but located 12-15 minutes away from the Conway Recreation Center. Over the course of the last 12 months, the center had 94,755 member visits.

Using our Sportsman SQL software, we were able to identify the current markets served. The breakdown follows:

This breakdown is interesting to note: 45.8% of our members are over the age of 55. 24.1% of our members are age 30-54. 11.5% of our members are age 18-29. 9.7% of our members are age 12-17. 9.1% of our members are age 0-11 The Conway Recreation Center offers swimming, weightlifting, cardio machines, a walking track, 75+ aquatic/fitness classes are held on average each week. Fitness classes are among the most popular amenities offered at our center. 21 of those classes are held between 5:30am and

4.7%

6.7% 6.7%

10.2%

7%

14.3%

4.4%3%

4.8%

13.9%

9.3%

15.2%

0-11 Years 12-17 Years 18-29 Years 30-54 Years 55-64 Years 65+ Years

Conway Recreation CenterMembership Breakdown

as of February 1, 2015

Male Female

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9am daily. Based on participation numbers, the most popular early morning classes are Boot Camp (average class size of 20), Yoga (average class size of 25) and Zumba (average class size of 36). The age groups that favor those morning classes are females 25-54 who are exercising before going to work. The most popular classes offered between 9am and 2pm include Sunshine Seniors (average class size of 25), Strength and Core (average class size of 18), Yoga (average class size of 20), Silver Sneakers Classic (average class size of 20), Line Dancing (average class size of 25) and Aqua Aerobics (average class size of 30). With the exception of Strength and Core and Yoga (females 45-54), the majority of participants for these classes are females age 55 – 84. Popular classes held in the evening, between 4pm and 8pm daily, include Insanity (average class size of 40), Cycle (average class size of 12), Strength & Core (average class size of 18), Yoga (average class size of 25) and Zumba (average class size of 35). The majority of participants for these classes are females 25-46. Based on the analysis, we were able to identify a lack of male participants in the most popular fitness classes we offer. Of the classes mentioned in the previous paragraph, approximately five men age 25-34 and 6 men age55-84 participate in classes offered between 5:30am and 2pm The most popular male attendance being for Boot Camp (younger age group) and Sunshine Seniors (older age group). Approximately 20 men age 24-54 participate in evening classes, with the most popular male attendance being for Insanity, followed by Cycle and ending with Strength & Core. This directly correlates to the national data for the same exercise categories for 2013. In addition to this, we are not attracting participants for exercise classes in the 18-24 range. However, where we are seeing a drastic difference, in terms of increased participation over national trends, as referenced in the database, is with seniors 55 and older. In the 18-24 range we see an increase in male participation in exercise, weight training and basketball. This correlates to national trend data. In a recent survey of 125 members conducted by select staff and instructors, we spoke one on one with males and females in a variety of age categories. We asked the following question: “Why are you a member of the Conway Recreation Center?”

Seniors (65 + yrs.) Surveyed 25 Close to home, Social Aspect, Affordable membership, Many organized classes/activities, love the pool, The Hydro massage bed, Free membership through Silver Sneakers or Silver and Fit, The high intensity classes, Yoga, Doctor referrals, the Walking track. Adults (55-64 yrs.) Surveyed 25 Close to home, Social Aspect, Affordable membership, Many organized classes/activities, love the pool, The Hydro massage bed, The high intensity classes, Yoga, Doctor referrals, the Walking track. (Men participate in order to improve their range of motion and flexibility to enhance their golf game) Middle Age Adults (30 – 54 yrs.) Surveyed 25 To be challenged, Fitness Classes, like the motivating staff, Individual Work Outs, Non-Dance Fitness Classes.

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Young Adult (18 – 29 yrs.) Surveyed 25 Basketball (Minority) Free Weights (Men) Zumba – (Dance Oriented Work Out) (Women) to keep up with the latest fitness trends Childcare is available Youth (12 – 17 yrs.) Surveyed 25 Swimming Pool Gym – Basketball Tag-Along with their parents Dependent Membership Rates

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Marketing Goals It is the mission of the Conway Parks, Recreation and Tourism Department to enhance the quality of life for all citizens through the development of sustainable facilities, services and programs that promote a lifestyle of wellness and physical activities for all ages.

Goals:

• Operate the Conway Recreation Center in a financially sustainable manner. • Improve our brand recognition throughout the community. • Improve the quality of life of our members

Value Proposition: At the Conway Recreation Center, we provide a state of the facility and a highly motivating atmosphere to help our members reach their health and wellness goals.

We offer a variety of fitness activities, amenities and programs in a family friendly atmosphere for ages 4 to 104. Through our programs, we offer the opportunity for social interaction for those with similar interests. We provide a quality product at a reasonable price. We encourage you to try us out!

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Marketing Strategies & Tactics Strategies:

Generate enough membership sales to maintain financial sustainability while reaching out to target markets that have been underserved. Work through staff to gather information from members of those underserved target markets to determine how to make their experience at our center more enjoyable. Grow memberships by 15% or 465 new memberships in the next twelve months.

Tactics include: o Host an Open House.

• Free Event with Demonstrations and tours of the center. o Membership Referral Program

• Provide an incentive for every member who has someone join the center. • Incentives would consist of a free month for every new member who joins, Personal

training sessions or Recreation Center merchandise. o Recruit members from the soon to be closing Conway Wellness Center

• Work with Wellness Center to provide membership information to their members. o Conduct an annual Member Survey

• This would be designed to find out what the members like, don’t like and what new programs or amenities they recommend.

o Conduct one on one interviews with members. • Target markets include 12-17, 18-29 and 30-54. To best determine how to attract

more of the same age group.

Create an identity that will be easily recognized by the community. Tactics include:

o Increase awareness through advertising, namely: • Facebook sponsored ads and posts. • Billboard advertising. • Newspaper advertising. • Direct mailers to all 13,500 City water customers on a quarterly basis. • Advertise with area Realtors and the Welcome Wagon new home sales. • Advertise discount coupons in the annual Community Calendar. • Television advertising through the City Access Channel, with limited ads on other

local stations. • Track all advertising with the exception of Billboards by including a coupon or

redemption code.

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Offer programs that are available to the public Tactics include:

o Health Fairs o Wellness seminars o American Red Cross Blood Drives o Self Help programs

Work with staff to provide a variety of programs and activities that identify with the most recent fitness trends in an effort to keep member motivation at an optimal level. Tactics include:

o Offer a Kids Day Out program. • A child care program offered during teacher workdays. • Target the 6-12 age group.

o Offer Kids PE and aquatics exercise classes. • For ages 5-12 twice weekly.

o Offer a Family Game Night: • Offer dinner, board games, swimming, free play in the gym and a movie at the

end of the evening.

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Implementation and Control

Proposed Promotional budget

Facebook Advertising (12 months) $600.00 Billboard Advertising (7 months) $4,900.00 Newspaper Advertising $1,500.00 Direct Mailer through Water Bill $1,200.00 Brochures $1,000.00 Television (One month of spots) $750.00 Halloween Carnival $3,000.00 Breakfast with Santa $2,500.00 Father/Daughter Valentine Ball $5,000.00 Total Proposed Budget (including Special Events) $20,450.00

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Evaluation Evaluation of the success of meeting the goals and strategies through the tactics outlined in this plan will be determined by the implementation of the goal. Generating membership sales through the Open House will be determined by the amount of visitors that actually tour the facility and sign up for a membership. The success of the Member referral program will be determined by the total referrals received. The Conway Wellness Center has offered to send our information out to their current members. Those members must provide a Wellness Center key tag to qualify for a special discount offered. The success of the member survey and interviews will be determined on how many surveys are actually completed.

To increase awareness of the Conway Recreation Center brand, Facebook posts will be posted every few days year round. We will spend up to $50 per month on sponsored ads to increase of friend base. This will be measured by the Facebook demographics on a monthly basis. Billboard advertising will not be tracked, but this is an opportunity to get our name and a brief message out in high traffic areas in an effort to compete with other fitness centers that use billboards. The direct mailers, Welcome wagon flyers and Community calendar flyers will be evaluated based on the number of coupons and special codes received back through those campaign periods. Television advertising will be difficult to track, but exposure will be received through the constant message being displayed.

The program offerings will be evaluated by the number of participants that take advantage of the programs and by how much revenue certain special events generate.

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Appendix

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Conway Recreation Center Flyer

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