Sports Marketing Plan - Essay Example

X Gymnastics Marketing Plan- Situational Analysis Table of Contents Situational Analysis 3 Economic Climate 3 Legal Environment 3 Demographics 4 Demand Trends 4References 6Situational AnalysisEconomic ClimatePeaking at around 10 percent in 2009, unemployment has been creeping down and is at present around 8 percent and expected to stay within that range for 2012 (Amadeo, 2012a). Key areas of the economy, including industrial production, oil and energy, manufacturing, and Silicon Valley technology are expected to continue to drive the economy upward through 2012 (Kotkin, 2012).

From a high of 4.1 percent GDP growth in 2011 quarter four, GDP growth in the first quarter of 2011 was about 2 percent, and for the last quarter about 1.7 percent, with GDP growth for the current quarter estimated at 1.5 percent due to the curtailing of spending by households and by government. The prognosis is that while the American economy is recovering from the recent crisis, the recovery will continue to run at a slow pace (Amadeo, 2012b; Dewan, 2012). In the short term, the presidential elections will shape spending and other key factors that impact the economy (Moffatt, 2012).

Some US regions will experience more pronounced growth compared to others (Kotkin, 2012)Legal EnvironmentIt can be surmised from the available evidence that the regulatory and legal system in the US continues to provide a strong foundation for successful small and medium businesses, and constitute a bulwark for established large multinationals. Legal requirements for gymnastics clubs share many aspects in common with regulations and laws covering small and medium businesses, together with industry-specific aspects, such as insurance coverage to shield owners and employees from injury liability, among other things (Kotkin, 2012; Newman, 2012; Mechanic, 2007; K&K Insurance Group, 2009).

DemographicsDemographic trends include a downward shift in the white majority birth numbers, now constituting less than 50 percent of total new births in the US (Dougherty and Jordan, 2012). As of 2011, out of a population of 313.84 million, 20 percent were 14 years old and below, and about 87 percent were below 65 years old. As of 2007 whites made up close to 80 percent of the population, followed by blacks at 13 percent, Asians at 4.5 percent, and other minorities making up the rest. The large Caucasian majority and the large young population are important demographic characteristics relating to the current and potential target markets for X Gymnastics (Central Intelligence Agency, 2012)..Demand TrendsData from US Gymnastics show that school-age females continue to be the most prolific participants in gymnastics programs all over the United States.

Women in general outnumber men in memberships in different gymnastics programs by a factor of five. The disparity in introductory programs by gender is even larger. Some states, notably California and Texas, have radically higher memberships and introductory coach memberships compared to other states. Among regular athletes, female 11-12 year olds have the highest rates of demand for gymnastics programs, and overall females in the age range from 6-16 make up all but a small fraction of the entire population of gymnast consumers of such programs.

As in the general consumer population of gymnastics programs, females who are regular athletes outnumber males five to one. Of interest is the market for gymnastics programs consisting of casual gymnast enthusiast or the general non-athlete crowd, whose characteristics in terms of dominance of females and age groups consisting of school age children are similar to those of the general population of such consumers of gymnastics programs offered by clubs (USA Gymnastics, 2007).ReferencesAmadeo, K. (2012). Current US Unemployment Rate Statistics.

About US Economy. Retrieved from http://useconomy.about.com/od/economicindicators/a/unemploy-curren.htmAmadeo, K. (2012b). Current GDP Current Statistics. About US Economy. Retrieved from http://useconomy.about.com/od/economicindicators/a/unemploy-curren.htmDewan, S. (2012). US Growth Falls to 1.5%, a Recovery Seems Mired. The New York Times. Retrieved from http://www.nytimes.com/2012/07/28/business/economy/us-economy-expands-at-1-5-rate.html?pagewanted=allDougherty, C. and Jordan, M. (2012).

Minority Births Are New Majority. The Wall Street Journal. Retrieved from http://online.wsj.com/article/SB10001424052702303879604577408363003351818.htmlCentral Intelligence Agency (2012). United States. World Factbook. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/us.htmlK&K Insurance Group (2009). Gymnastics Insurance. Retrieved from http://www.kandkinsurance.com/sites/gymnastics/pages/Gymnastics-Clubs.aspxKotkin, J. (2012). The US Economy: Regions to Watch in 2012. Forbes.com.

Retrieved from http://www.forbes.com/sites/joelkotkin/2012/01/04/the-u-s-economy-regions-to-watch-in-2012/Mechanic, H. (2007). Nonprofit law/gymnastic booster club. AllExperts. Retrieved from http://en.allexperts.com/q/Nonprofit-Law-2266/gymnastics-booster-club-3.htmMoffatt, M. (2012). Presidential Elections and the Economy. About Economics. Retrieved from http://economics.about.com/cs/macroeconomics/a/presidency.htmNewman, R. (2012). To Boost the Economy, Hold the Elections Sooner. US News & World Report.

Retrieved from http://www.usnews.com/news/blogs/rick-newman/2012/07/24/to-boost-the-economy-hold-the-elections-sooner US Gymnastics (2007). Membership Statistics. Retrieved from http://usagym.org/docs/About%20USA%20Gymnastics/Statistics/MemShipStatCharts01Mar07.pdf