Martial Arts School Business Plan

In this somewhat competitive field, Cents and Senseibility Martial Arts School will focus on a broad market.  Special focus will be placed on recruiting students from the four Elementary Schools, two Middle Schools, and two High Schools in the immediate area. 

Special emphasis will be placed on these age groups:

1. Age 3-5, the Tiny Tots Taekwondo Program is expected to make up 10% of the membership.
2. Age 6 -12, is projected to make up 60% of the membership.  This group tends to establish the largest student base in most CATISC Taekwondo schools across the nation. 
3. Age 13-18, is projected to make up 10% of the membership.
4. Age 19-30, is projected to make up 10% of the membership.
5. Age 30 and older, is projected to make up 10% of the membership. 

5.1 Competitive Strengths and Weaknesses

Strengths:

• Can-Am Taekwondo Instructors and Schools Confederation has been established for over 30 years and is one of the largest martial arts organizations, if not the largest, in the United States. 
• Cents and Senseibility Martial Arts School location will be located in a major shopping center with easy access and ample lighted parking.
• Mr. Rolly BonTemps (5th degree black belt) is very knowledgeable and is nationally recognized as one of the CATISC’s leading instructors.
• Mr. BonTemps is an experienced Instructor with over 10 years as a certified Instructor with CATISC.  He has a strong desire and patience to teach the youth of today. 
• Mr. BonTemps has been recognized by leading instructors in CATISC as one of the organization’s leading marketing specialists in recruitment. 
• Mr. BonTemps has been recognized by the teachers in Metroburb, for his participation in “Show and Tell” activities at the Elementary Schools and is continuously being sought after to return to the classrooms for further presentations.  This results in the largest recruitment of students and has proven to be a highly effective marketing plan. 
• Competitive pricing and hours of operation.
• Solid untapped database from which to market.
• Lead Instructor for over 300 active students.

Weaknesses:

• New School. 
• Lack of Instructors during start up.
• Student attrition.
• No website at this time but it is planned for the future.

5.2 Marketing Strategy

In the Marketing Strategy the target is very broad, kids 3 to 14, young adults 15 to 25, and adults 26 to 49.  To address this market one must understand that Cents and Senseibility Martial Arts School will be a “showplace” and in marketing efforts we want potential members to judge our “book by its cover.”

The first strategy will be to open a fully decorated and functional Taekwondo School (Cents and Senseibility Martial Arts School).  This school will be a fun and exciting place where members will want to train.  The school will be neat, clean and offer a variety of functions and state of the art training facility. 

Show and Tell

The first marketing initiative is to meet with the local School Administrators and introduce ourself to the community.  The “Show and Tell” plan is introduced and when accepted lends the approach to meet the children in the classroom.  The “Show and Tell” is organized in different segments.  The first time the instructor addresses the children he/she will be in full Martial Art Uniform.  Most children are thoroughly impressed and fascinated as they enter the room.  Upon asking them if they would like to have a uniform and take Taekwondo, it immediately attracts their attention.  This is where the instructor immediately reaches out and begins to teach the students the meaning of discipline.  Discipline meaning how we act in the presence of adults and teachers and what is expected of students in the Taekwondo School.  The students are rewarded for their behavior during the “Show and Tell” by letting them break styrofoam (simulated wood boards) as they do in the Taekwondo School.  By the time the instructors leave the class room, the children are so fascinated by the instructor and his/her teaching application, all students are sitting straight up in their seats and answering the teacher and instructor with phrases like “Yes Sir, Yes Ma’am”. 

Because of the success of the first visit, the teachers are so astonished at the children’s behavior change in the classroom that the Instructor(s) are invited back for a second and third and often a forth time during the school year.  Each time the instructor is invited back he/she concentrates on a different element of the martial arts such as self control, concentration, respect.  Each “Show and Tell” reflects the topic the teacher would like demonstrated to the children.  This has been such a success that the word spreads quickly and the Instructors visit every classroom and address entire schools putting on demonstrations during the recalls in the Auditorium.  

During each of these visits at the end of the session, each child is given a card for a free 30 days of instruction.  On average 10 children will attend the free lessons.  Getting the parents and child into the Taekwondo School will usually sell itself.  However, once they enter the School, the instructor interviews the parents to see just what they would like their child to receive out of the Taekwondo Class.  Depending on the parents’ answer—discipline, self-control, respect, etc.—the instructor gears his focus for that student to the parents’ wish.  The child is then taken onto the do-jahng with the instructor for a one-hour introduction in Taekwondo.  The instructor is gearing his one-hour orientation toward what the parent has requested (e.g., discipline, self-control, respect, etc.). Once the instructor returns with the child, the parent sees the immediate change in their child’s behavior after only a one-hour session.  At this time, six to eight of the 10 students that enter that day enroll under contract to begin their Taekwondo lessons. 

V.I.P. Program

The second marketing initiative is a V.I.P. program.  Here we take to the parking lots of the local shopping and strip malls dressed in full uniform.  We actively hand out flyers and business cards to all parents we see with children, or any interested adult that approaches.  Again we offer 30 days of free lessons, to get the people in the door of the school.  Once they enter the do-jahng, the same process as above is used.  Through experience in exercising these methods, six to eight out of the 10 people that enter will sign a contract for lessons.  

As the students begin to enroll, Cents and Senseibility Martial Arts School plans to participate in “Martial Arts” demonstrations at the local malls, Wal-Mart and grocery store location parking lots, public parks, etc., with the students participating in the demonstration.

Yellow Pages

The third marketing initiative is to advertise in the “Yellow Pages”, local newspaper, radio, websites and, as we become more profitable, on local television.  

5.2.1 Positioning Statement

For adults in the city who want to learn and/or have their children learn the art of Taekwondo and to build self-confidence, we offer competitive pricing, convenient hours, and quality instruction, under the leadership of a 5th degree black belt, nationally recognized instructor.

Unlike the competition, Cents and Senseibility Martial Arts School plans to offer the most modern of facilities, in a convenient location with ample parking, and programs that are entertaining, adventuresome, with the tradition of Korean style Taekwondo.

5.2.2 Pricing Strategy

We must offer our services at a pricing structure that will both meet our financial needs and the needs of our members.  Our value-priced fee structure of $80 per month membership for the Tiny Tots Taekwondo (3T) Program, $85 per month for the Basic Program and $90 per month for the Black Belt Club is competitive for schools that own their own facility.  We will keep this fee but offer promotional discounts to members for bringing in new students.

There are as many introductory promotional pricing packages as there are do-jahngs.  All the programs are designed to draw or introduce the potential member to the do-jahng without requiring them to sign a long-term contract.  All offer the same basic package which includes anywhere from 1-6 months training, 1-3 private classes with gi (uniform), and prices varying from $50 to $99.

Our value-pricing strategy is to offer a very short introductory package of two personal training sessions and a gi for $29.  If the potential member wants to continue, we will offer a six month introductory package at $299.  After six months, if the potential member wants to continue we will offer the annual contract at $1,000 (with discounts for payment up front).  Monthly or quarterly billing options will be offered.

In addition, we will be working to identify other pricing structures which address families and lower income students.

5.2.3 Promotion Strategy

Based on buying pattern research, we determined marketing in local schools and public places is the most successful  marketing strategy, followed by “word-of-mouth” for promoting our do-jahng, followed by the “storefront” and finally advertising.” With this in mind we have established the following promotional strategies:

• Our members (students) must like who we are and what we do, in order for us to succeed.
• To assist in promotion, we will offer an incentive to members who bring in new members.  We want potential members to judge our “book by its cover.”
• Our storefront (external and internal) will be redesigned to sell itself.  People will want to go in just to see what a do-jahng looks like.
• We will be holding an annual Taekwondo Tournament as we grow in numbers.  This will be held in the local community at a location that will handle several thousand participants, such as a school gym or civic center, etc. 
• Cents and Senseibility will be holding Taekwondo demonstrations locally at the mall, shopping centers and at events around the city.
• Cents and Senseibility Martial Arts School will continue to offer free self-defense seminars to local grade schools and retirement communities.
• Cents and Senseibility will offer self-defense and weapon techniques to local law enforcement agencies.
• We will offer self-defense training for women.
• The Cents and Senseibility Martial Arts School Web page will be designed to reflect our image and be very informative. 
• Cents and Senseibility will advertise in “The Yellow Pages”,  the #1 source of new recruitment in media.  We will purchase “competitive” ad space.
• We also will advertise in the local “entertainment and news” paper, which will also provide good advertisement opportunities.

5.2.4 Marketing Programs

In our Marketing Strategy the primary market will be kids 3 to 14 and young adults from 15 to 25 and adults 30 to 49.  The senior adults (50+) market will be addressed separately.

1. To address the largest market one must understand that the do-jahng is a “showplace” and in the marketing efforts we want potential customers to judge our “book by its cover.”
2. Another key marketing program is to introduce simple methods of training to the instructors to reinforce students, i.e., “want to train, not have to train” concepts.  This program is intended to reduce high level of membership attrition.
3. The final program is to advertise in the Yellow Pages and weekly newspaper.  Both programs will be tracked, but the weekly newspaper appears to offer more clearly defined (short-term) success to specific advertising promotions and plans can be adjusted accordingly.
4. Cents and Senseibility Martial Arts School will create a very professional brochure on what the facility has to offer.  Mr. BonTemps will head up this program.

5.2.5 Strategic Alliances

There are a number of establishments surrounding the do-jahng.  We will contact select establishments for an agreed brochure trade, with emphasis on a positive, well-designed showcase that will benefit both parties with possible discounts being made available.

5.3 Sales Strategy

The overall strategy is to increase membership to 300 by year-end 2004, which is 80% of the do-jahng capacity and an aggressive two year growth.  Through effective marketing efforts Cents and Senseibility Martial Arts School will make potential customers aware of the do-jahng.  From this awareness Cents and Senseibility will increase the number of potential members that walk in the front door. 

These new potential members will be met by either the Instructor or a well-trained sales associate/receptionist who will have all sales materials, promotions and a computer for data entry.  The sales associate will be empowered to offer select promotions, however, if the potential member is interested in joining, an instructor will be made available for immediate consultation.

5.3.1 Sales Forecast

The following chart and table reflects the aggressive, but obtainable sales forecast.  Membership is projected to grow at a steady pace.  Introductory membership fees will be adjusted accordingly after the three month grand opening. 

Special classes will be conducted upon demand.  Weekend activities such as birthday parties and special events will also be conducted for a minimal price. 

Private lessons will also be made available by Rolly BonTemps, 5th Degree Black Belt, upon the students request for lessons. 

Belt testing will be conducted every 8 weeks and fees will be according to rank and group membership. 

Self-defense seminars for women will be held periodically throughout the year, teaching females the basic self-defense techniques in case of emergencies.

Special Law Enforcement self-defense seminars will be held periodically throughout the year, teaching Law Enforcement Officers basic and advanced self-defense techniques. 

5.4 Milestones

The following table lists important program milestones, with dates and managers in charge, and budgets for each.  The milestone schedule indicates the emphasis on planning for implementation.  The most important programs are the sales and marketing programs listed in detail in the previous topics.