Fitness, health & wellness marketing plan

The state of America’s health care crisis, coupled with current demographic changes, threaten to not only exacerbate the crisis, but further erode worker productivity as well. These environmental factors coupled with the local competitive situation signal a favorable opportunity in this market. We feel the time is right for New Look. 2. 0 Environmental Analysis Health clubs are service facilities that are intended to provide physical health care exercises with the help of specialized equipment.

It normally serves both male and female customers but in some cases customized for specific genders depending on market needs. Normally, the environment is made casual to provide customers comfortable experience that helps them perform bodybuilding and other exercises with ease. According to a 2009 report by the International Health, Racquet & Sports club Association (IHRSA), the total number of gym memberships in the US is roughly 45. million, and about 64. 9 million visitors in about 29, 750 health clubs . As more Americans are becoming more health conscience, and doctors constantly advocating more for daily physically activity, fitness clubs will continually be in growing demand. The state that has the highest percentage of fitness membership, Colorado, is the ideal location for New Look: Fitness, Health, and Wellness Club.

With 22% of its population already interested in bettering their lives, this company will thrive over other gyms that offer the normal gym perks. 3. 0 Services Overview New Look will provide most of the typical gym activities, but the focus for this fitness center is personal health awareness. Therefore, New Look will also offer more specialized instruction with either physical trainers, physiologists, and/or nutritionist to help members better understand their bodies so that they can achieve maximum results.

Personal Trainers: For members who need extra help in reaching their end goals, personal trainers will be available. Members can schedule weekly, bi-weekly, bi-monthly, or when needed sessions at no extra fee. This service is only for members who need assistance in the fitness aspect of the club (e. g., using equipment, assistance in obtaining that last pull, etc.), so if they need assistance any specialized weight lose or muscle gain, they would need to participate in the individualized program.

Individualized Training Programs: Members who chose to participate in this will have access to a personal trainer, exercise physiologist and nutritionist to help rehabilitate their diets and physical activity. Members will have the option to participate in weekly, 30, 60, or 90-day programs, all in which they will be monitored for progression (or regression). This will help those who do not understand what they are doing wrong in their daily choices, and will aide in making better lifestyle changes. To participate in this program, individuals must be a Platinum Card Member; otherwise, there is a $5 additional fee.

Group/Individual Weight Loss: This program is for others who are serious about weight lose, specifically members with special health concerns such as diabetics, obesity, menopause, and other high-risk individuals. This 3-month program is designed to re-establish a strong healthy lifestyle. Members must meet either with a focus group or with an exercise specialist once a week to gage weight loses. Each meeting will also include resting blood pressure measurement, resting heat rate measurement, goal determination, workouts, take-home material, and consultations from nutritionists and exercise physiologist. To participate in this program, individuals must be a Platinum Card Member; otherwise, there is a $5 additional fee.

Nutrition for Life. Members who do not understand their basic nutrition needs, or if recommended by local doctors can participate in this program. Nutritionists will teach members how to read food labels, what food does to the body, and how to properly use food for energy. Members can e-mail nutritionists daily for questions they have regarding their intake, or if they are making the right food choices. The goal in this program it to help people understand that nutrition is a daily choice that should not be taken lightly.

Aside from traditional fitness membership, New Look offers more personalized plans for individuals who have specific goals. Every other fitness club offers these programs as a promotional induction into the club, but members would have to pay much higher additional fees for continued usage. At New Look, the price members pay from the start will be price they pay throughout their contract.

Since New Look is not only a fitness club, but a wellness club, members are privy to assistance from resident exercise physiologists for any problematic area during their sessions. Other clubs provide personal training assistance, but they do not specialize in the body’s functional responses with physical activity. Our exercise physiologists can monitor and assess activity, and more accurately provide vital feedback on how your body is responding to activities.

New Look’s primary audience is individuals who require specialized, monitored assistance from trained professionals. Therefore, members who require additional assistance in weight lose, special event training planning (running, triathlons, etc), and health education are the target audience. Members who are simply looking for a neighborhood gym are also welcomed, but the focus of this company is the overall health and wellness of the population. We are also targeting lower income households as this population is the most susceptible to negative health choices. By providing reasonably low costs, we can ensure that even those who make less than $20K a year can obtain quality wellness information.

New Look will be starting operations in Denver Colorado. According to 2011 studies, Colorado is the “ skinniest” state in the country validating the need for personal fitness the population. Denver also holds the highest percentage, 25. 1%, of health club memberships according to Active Marketing Group , so this is the model location to promote our business. According to the 2010 census, Denver’s population stands at approximately 600, 000 residents, with an 8. 2% since 2000 . Given this information, below are the demographics for New Look’s population growth in Denver. A. Denver’s projected population growth in 2020 given its current rate of 8. 2% B.

The 2010 census report showed Denver’s average income as $45, 501, and close to 30% of its population only holds an income of $25K or less . These households maintain the majority of Denver’s population, and usually are not targeted because of this lack of income. Arguably, many businesses would not market at this level for profit reasons, but the focus of New Look is to ensure that the population’s health is intact. Therefore, this group is ideal for our mission.

The total market size for Denver is approximately 151K members. New Look will need to target this population first to persuade unhappy customers from other gyms to join the less expensive yet more extensive wellness center. Targeting the active gym goers will help spread the livelihood of this new service. As Americans become more and more health conscience, many will be heeding doctors’ warning of weight loss or other medical advice. This will gradually add to New Look’s market size, and eventually become our main source of marketing.

The health care market in the US has grown at a steady rate in the last decade. As of 2005, the health club market reached $17. 6 billion. It has doubled in size, at almost 12. 56% , compared to its $7. 8 billion in 1995. As Americans continue to seek assistance in the fitness industry, this market will either remain constant or increase in growth. Given its current growth rate, projected profits in 2015 will be approximately $89. 6 billion. Factors Causing Market Growth

Health Care Expenditure: Health care expenditure is increasing in the US; it was 1. 1 trillion in 1997, and has grown almost 10% to 2. 24 trillion in 2007. The below chart depicts the growth in this concern.

The health club market is becoming more demanding over the years. The following are the common reasons that make this market increasingly valuable. Customization: Individuals who already have memberships, or those who are willing to have one, usually have increased interested in various customized health club plans. Many enjoy having this benefit because it makes their fitness experience less stressful from a planning perspective. Others, less often however, simply utilize customized plans because it is prescribed by their doctors.

Nonetheless, this is still a demand for the business as now they are catering to an individual’s needs. Whether it is personal preference or otherwise, customization is a hot commodity in the health club industry; it would be business suicide not to meets this demand. Ease of Service: Customers will not use the service if it is not convenient. New Look recognizes this and strives to make their services as convenient as possible for the targeted customer groups.

Effectiveness of Exercise: Members have high expectations and require results from the exercises which they are performing. With the assistance of personal trainers, nutritionist, and an exercise physiologists, exercise and diet plans can be created so that members see the result they want. Ultimately, if they do not see changes in their weight or appearances, they will not remain a value customer, so we must ensure that they realize when they have met key goals. Factor Causing Market Demand

Per Capita Income Increase: Continuously increasing per capita income in the last decade had enabled Americans to focus more on their health related issues, and in turn allowed them to spend time in health clubs. Health care expenditures are directly fueled by this increment in per capita income. The chart below details the 5. 4% growth rate per capita income.

The health club industry has been changing its trends very quickly over the last five years. The following trends have amplified this market.

1. Individual usage of fitness and health care training equipment has increased. As more people realize the true need for physical activity, they also become more willing to try to new ventures. Those who never lifted a pair of dumbbells extend their curiosity and put it into practice. We see more women using weighted equipment than we did over a decade ago, and more people are testing new cardio machines straying away from the typical treadmill.

2. Body work and exercise has become a daily routine for many Americans. Exercising has become a more mainstream activity in Americans’ lives over the last decade. Five to ten years ago there were widespread reports about an impending health crisis, obesity. Americans, relative to their Western European counterparts have higher incidents of obesity. To a large degree, this is correlated to American’s unhealthy diet of fast food, and generally poor food choices, especially fried foods. The poor diet is not the only factor however. Americans were fairly inactive, with only 19% of people age 20-40 exercising three times a week . Luckily, that has changed over the last 10 years. The percentage of active people has increased to 43% as of 2002. More and more people are going to the gym after work or are incorporating some sort of outdoor activity into their daily routine.

3. Companies are including health club memberships into employee benefits packages. As fitness memberships have become a more common element in the working American’s lives, companies have become to incorporate membership as part of their benefit package for employees. This has occurred for at least two reasons. One reason is a flexible method to compensate employees. The second reason is that is has a positive effect on a company’s bottom line. Study after study supports the contention that a physically fit employee is happier, healthier, and more productive. For no other reason, offering fitness club memberships to employees is a smart cost-benefit decision. 4. 6 Competitive Forces

Although Denver is the ideal market location for any fitness venture, there are several strong competitions throughout the city. The fitness industry is vying for customers in efforts to keep the state’s health concerns at bay. The three main competitors for Corporate Fitness are: YMCA-market is lower-income families and/or students who want accessibility and affordability of fitness facilities. Gold’s Gym-services are targeted toward those motivated and dedicated individuals who workout five to seven times per week. Curves-women’s gym designed to provide 30-min total body work-out sessions.

4. 7 Economic Forces Nationwide, obesity levels have increased since 1990. Driving factors for this increase seems to be economic forces. As we struggle as a country with politics and social concerns, the American people struggle to make basic financial decisions. Americans have become less active and eat more poorly, and with the recent recession health decisions were not a priority. As the country slowly becomes more stable and the cost of living starts to settle, the health and fitness industry will start to see more consumers. 4. 8 Political Forces

Our very own First Lady, Michelle Obama, has played a key role in the political concern of childhood obesity . Her efforts to put an end to this epidemic will create a strong awareness in parents’ eyes for health, nutrition, and fitness education for children. This awareness should increase need for the fitness industry, and more importantly, the need for children to live more active lifestyles. 4. 10 Technological Forces

The fitness industry, as with other competitive industry, is susceptible to technological advancements. Today we become more reliant on technology for our day-to-day activities, so much so that many Americans chose to conduct their actives using the technology if it is available. What does this mean exactly? For the fitness industry it consists of exercise videos that can be used in the luxury of your home, or the use of video game consoles that forces someone to jump, stretch, or any other physical activity. Although this type of exercise is still providing a good level of physical activity, it hinders profit growth for surrounding fitness centers. 5. 0 SWOT Analysis

The following SWOT analysis captures the key strengths and weakness within the company, and describes the opportunities and threats facing New Look.