Health care enterprise assignment discussed the important issues of marketing strategy related to health care enterprise like fitness gymnasium, women fitness etc.
The health awareness amongst people has changed the face of gymnasium industry in last few years. The increasing number of obese people has made the fitness industry one of the most important segments in the industry. People are ready to pay any amount in order to be healthy and fit. Today there are so many programs on television which explain the importance of healthy living. In Australia, looking at the rate of increase in obesity, even the television programs offer various packages to encourage people to join the fitness centers. Due to high demand, the number of fitness centers has increased a lot (Weimin, 2011). There are so many fitness centers at affordable prices that everyone can join them. This is the reason why the fitness industry is booming.
There was a time when only running and playing was considered as the ways to keep oneself fit. Then with the passage of time, aerobics came into existence, in which people used to exercise on a piece of music. Then finally with the increase in the number people demanding for health care services, fitness gymnasium came into existence. The gymnasium is a place where people are provided with different fitness methods. A fitness gym offers number of service like exercises, health and beauty products and services etc. In every section of their service there are specific products which are being offered.
Micro and Macro environment
In order to plan the marketing strategy, it is important to analyze the external environment which will include both micro and macro environment.
Micro Environment: In micro environment the factors have an impact on the business on daily basis. It is believed that mostly these factors are under the control of the company.
The factors are:
- Competitors: There are number of competitors for fitness first like Total fitness, zone fitness etc. The industry used to have large impact of the planning and strategies for the competitors (Qiang, 2010). A good company is the one which keep on changing its strategies based on the activities of the competitors. Fitness first used to change its policies as per the requirement.
- Suppliers: In fitness industry, the suppliers are for equipment, trainers, cleaning staff etc.
- Distributors: The equipment needs to be branded and hence distributors are needed for it.
- Consumers: Consumers are the most important element of micro-environment. All the planning and strategies are made to get more and more customers and build up a good relationship with them. Fitness first must try to get information on the requirements of the consumer to enhance its services.
Macro environment: Macro environment have elements which are outside the era of firms operating situation.
- Economic: In Australia, the fitness industry saw a significant growth and hence more and more gyms are coming into existence.
- Socio-culture: Now days a good physic and health consciousness is taken as the social status. People are more concerned about their health and looks (Peattie & Peattie, 2011).
- Technology: With the developments in the technology, there was a huge change in fitness industry too. Several equipment like treadmill is present to fulfill the needs of the customers.
Target Market and product category
The target market for this industry will be all the health conscious people and all the obese people and children. Anyone who is concerned about his/her health can be targeted. The product category will be health products.
Evaluation of competitors
The major competitors for Fitness First in Australia are Good-life Health Clubs, Snap Fitness 24 Hour Gym, and Fern-wood. These are some of the competitors just to name them, otherwise the fitness market has expanded so much that the number of competitors is uncountable. All of them claim that their services are best and hence for customers it gets very difficult to choose for a particular clubs. It is important that all the competitors must be analyzed properly and then only one should decide on which club to join (Lim et all, 2013).
Description of product
Fitness first provides variety of services to the customers. There are different types of products like exercise, health and beauty etc. Among exercise there are various specific products based on the requirement of the consumers. All the sub-products are designed keeping the requirements of the customers in mind. The specific product that would be discussed here is Fitness Plans for women. These are the plans which are specifically designed for ladies. Today ladies are more concerned about the health in comparison to men. Hence a separate fitness plan for ladies is a good product offered by the Fitness first gym. In this plan there are two segments, one is to lose weight and other is body shaping. The customer can choose any of the two plans or else if they want a combined pack which includes both the activities could be offered.
Three levels of product
The three different levels of product are as following:
The core product: The core product in not the physical or materialistic product. It is the benefit which one gets by the use of the product. Here for ladies fitness plan product, the core product will be good health.
The actual product: This is real physical product. In the fitness industry the actual product is Fitness Plan for women in which equipment will be used to keep the body healthy (Hollebeek, 2012).
The augmented product: The augmented products are those which are added benefits or the values with the actual product. In fitness plan for women, the augmented products will be like a personal trainer who will tell the methods of performing the exercise, the sessions with the dietician to keep the body fit.
Branding, packaging and labeling
Fitness one has come up with a lot of branding techniques which are attracting a lot of customers. Supplying different packages and providing innovative combination of packages is one of the many techniques they have applied. Recently they rebranded their logo and replaced their blue logo with a red logo which symbolizes “passion, energy and strength.” This change in the logo has allowed them to shed off their image of being a fitness company where company’s finances were given more preference than individual’s health (Kanagal, 2013). The rebranding has changed the group’s outlook towards business. The management feels that since they are leaders in the field and hence they don’t have stiff competition and since a long time have become lethargic in coming up with new business ideas. The rebranding has brought a lot of energy in the company.
Labeling and packaging don’t directly apply to this company as their product is not a materialistic product which they could pack and sell so these two business principles don’t actually apply to the company.
Target segment and their description
Target segmentation or the industrial marketing segmentation is mainly done in order to divide the target customers into small groups and section. This is done in order to ensure that all the information and details about the company are reaching to the target customers in an appropriate manner. In order to know about the targets, the first and the most important step is market segmentation (Menzly & Ozbas, 2010). Fitness first segmented the market on following criteria:
Geographic Segmentation: the location of Fitness First is Glen Waverley and hence it targeted the customers mainly from that area.
Demographic Segmentation: This segmentation includes the division of market on various categories like age, gender, income etc. The market is segmented based on the average income. In ladies group exercise the members have to pay relatively less in comparison to the individual sessions.
Socio-culture Segmentation: On the basis of social-culture segmentation the market can be divided in following parts
Gymnasium Lovers: These are fun and sport loving people. There are many people who love to play the games. But the weather in Australia is not appropriate to play, then these sports lover look out for work outs in fitness centers (Flannery, 2013). On the other hand the beautiful ladies love to spend their time in spa, steam and sauna and tanning sessions.
Families: This is going to be the smallest segmented group for Fitness first, but it is the most important segment. Families play a significant role in making a brand for the company and hence it is very important to handle this segment (Enache, 2011).
Students: Since there are various schools and colleges present in the area of Glen Waverley, the students are good target customers. They like to join the fitness clubs as it helps them to relax after the college.
Females: The working ladies used to be very conscious about their health and looks and hence this is the most important segment. The mid aged females are the perfect target audiences for this product (Enache, 2011).
As per the market segmentation, the target market for the product will be middle aged females. The office women are the one who are most concerned about their looks and health. They would love to join anything which will ensure that they will look beautiful and will be healthy after joining. This target market can be increased in the holidays time say during Christmas or New Year by providing some special personalized packages to them.
Marketing Mix is marketing model which along with the 4P’s of marketing helps the company to get the product in the market.
Product: The primary products of Fitness First will be health care and fitness packages to its target customers. These fitness packages will be supported with the promotional packages, personalized special packages for time to time. Fitness first is famous for providing excellent services to its customers, but advancement and improvement in the products will enhance the quality of services and hence increase the number of customers (Chernenko & Sunderam, 2012).
Price: Pricing at Fitness First keeps on varying depending on the situations. It will be different during the peak hours and the off-peak hours. There will also be difference in the price of the services in weekends and the weekdays. There are several price schemes for families and for the special packages. The price will be changing as per the competition in the market. Fitness first will ensure that the prices are known to customers with the help of advertisements and pamphlets.
Place: It is located at the suburbs of Melbourne and is centrally located; hence it will definitely attract more and more customers (Chernenko & Sunderam, 2012). Fitness first also has a website and hence it can be seen by all the customers online. This will increase the number of probable customers.
Promotion: Promotion of First fitness will involve the brand awareness planning so that the sales of the gym can be increased. There should be continuous flow of information to the customers so that they are updated about the current activities taking place at the center. The main attraction of promotion campaign will be focused on the seasonal and the special packages (Hollebeek, 2012).
Performance of the product
After looking at the report, it can be said with full confidence that all the marketing strategies and are going to perform well. They are planned perfectly and keeping all the requirements of the customers in mind. The only criterion at every step which is given importance is that the customer must be satisfied. The product offered is ladies fitness plan, which is targeted to all the working ladies who are more concerned about their health. Hence this plan is definitely going to attract many of the young ladies. The marketing mix tool is used with the 4P’s in such a way that it covers all the important issues to make Fitness First a success.
The recommendation which I would like to give to the product offered is that if there is some combination of fitness pack along with one or two sessions of beauty classes, it will do wonders to the package. The ladies join the gym to look better and at the same time if they get an idea about beauty enhancement techniques then this will definitely attract more customers.
In marketing mix, the only recommendation I would like to add will be that while going for promotion, the company must also tell them about the various pricing structures to the customers, as many of the customers hesitate to join because of the financial issues.
Chernenko, S., & Sunderam, A. (2012) The real consequences of market segmentation Review of Financial Studies, 25(7), 2041-2069.
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Flannery, H. (2013). Where to work out Management Today, (Mar 2013), 40
Hollebeek, L. D. (2012). Australasian Marketing Journal
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