Write an essay on Target Market, Segmentation, and Positioning.
The target market of Snap Fitness is critically emphasised on both men and women from young and middle aged communities of the country. The company provides priority to the age group between 30 to 50 years, and they could be either married or unmarried. Considering further investigation, it can be determined that the services related to the health and fitness aspect are designed for the customers of middle class income group in order to promote their affordability and access to the chosen services (Diamantopoulos et al. 2012). Therefore, it can be determined from the company’s marketing strategy that the selection of target market is developed by addressing the health and fitness requirements of the majority of population within the country. The services in this case are further modified in the work and family oriented manner to secure increasing engagement of its target market. This particular fact extracted from the company’s approach leads to the development of a health minded attitudes in the mind-sets of the population from the chosen age group (Glynn and Woodside 2012). One particular example from different services offered by the company is “on-the-go”, which majorly provides focus on increasing the lifestyles of the Australian population.
Apart from the basic information obtained regarding the target market of the company, the company is focusing on a new target market in Australia at the same time. It is formulating the strategies to attract the individuals, who are aged more than 50 years. One of the vital fact is understood by the company that the increasing overweight population of the country belonging in the identified age group is causing the emergence of different diseases like diabetes, blood vessel blockage, and cerebral infraction (Jolibert 2012). It is scientifically proven that these types of illnesses can be cured by exercising. Considering this fact, the new target market is identified by the company to promote its aim within the country.
In order to gain insight bout the major market segments of the health and fitness industry, the approach made by Snap Fitness is analysed critically. By the result of such analysis, four key segments of the associated with the operations of Snap Fitness can be identified, which should need to be elaborated by developing the proper discussion.
Posers – Posers are the ones belonging from the downtown areas of the country wishing to have a lifestyle of the Jet Setters, but unattainable due to the inadequate income earning capacity (Kotler and Keller 2012). Therefore, the certain segment of the market is currently living beyond their means and are more likely to hit the office or condominium gym. It is understood by the company that the perception from different segments are important for developing the marketing approach, and in case of this particular segment, the individuals have their comparable preferences in terms of the prices of accessing the service.
Jet Setters – jet setters refer to the wealth and young professional, who are known to be relatively more materialistic (Lee and Carter 2012). Their selection related to the gym is measured by their status. Hence, the presence of high-end equipment and highly personalised services are the key for attracting the individuals of this segment. However, during the development of the marketing strategy for such segment, Snap Fitness must need to be aware of their convenience criteria and restricted hours aligning with their busy schedules.
Commuters – commuters are the individuals who come to downtown on a regular basis for their work and looking for the convenient locations along their way of journey. Therefore, the price elasticity of demand factor must needed to considered by Snap Fitness during the early morning and early evening times on a daily basis, because of such periods referring to before and after work schedules (Levy 2012).
Corporate – this particular segment suggests the elite executives of the country, who are highly interested in superiorly designed equipment comprised exclusive workout environment. Additionally, the effectively personalised services and complimentary amenities should need to be present in the services offered by the company in order to satisfy the needs of this particular segment. It is acknowledged by the marketing approaches of the company that price is inelastic for this segment and the individuals tend to workout either early in the morning or late in the nigh, while preferring the workout location near their offices.
Based on the identified market segment, Snap Fitness provides increasing priorities to the posers, as the associated values of this particular market segment matches to the business model followed by the company (Mamula 2012). Snap Fitness is aimed to provide fast, affordable, and convenient health and fitness services on the 24/7 basis in different locations, which is highly addressing the needs of the mentioned segment of the market.
The position of Snap Fitness can be significantly observed in the leading position of the health and fitness industry of Australia. With the help of providing the cost effective exercise facilities from the majorly convenient locations of the country, Snap Fitness has successfully able to position its business as the premier choice for its identified target market and consumers from the chosen segment as part of its marketing strategies (Morgan 2012). In order maintain such position into the market and facilitating the long-term sustainability to the overall business proceeding, the company aims to develop a clean and friendly workout environment for its customers. Additionally, the positioning strategy of the company is highly benefited by the development of no frills policies along with helpful staffs in the different centres. It is observed that the selection of these staffs and members are based on their knowledge related to the health and fitness requirements of the individuals and skills to achieve the standard level of fitness.
With the help of the positing map developed for the company, it can be observed that the business is recently focusing on the older population of the country in order promote their health conditions, while continuously addressing the needs of the individuals from the younger age groups (Paliwoda, Andrews and Chen 2012). On the other hand, the prices of the services can be categorised primarily in the classy and expensive basis and practical and lower priced basis. Following the particular business model of the company, it adopts the practical and reasonable price for its services for maintaining the high convenience and affordability to satisfy the sustainable market position within the industry.
In order to determine the micro environmental environment forces affecting the marketing approaches of the company, the critical strengths, weaknesses, opportunities, and threats associated with the business functions are needed to be assessed (Pasquier and Villeneuve 2012).
In order to determine the various macro or external environmental factors affecting the marketing decisions and approaches of Snap Fitness, the utilisation of PEST Analysis will be done for generating the proper sense.
Political Factors:
There are different government initiatives can be observed by the presence of multiple campaigns supporting the community to be engaged in healthier lifestyles. The example of “active kids”, “swap it, don’t stop it”, “get set for life”, how do you measure up” are the most effective instances helping to promote and improve the fitness levels of the individuals from different segments and age groups. Therefore, the implication of these particular campaigns providing increasing amount of motives to the members of the community to engage in accessing the fitness services (Tadajewski and Hewer 2012). Hence, a favouring political environment can be observed supporting the proliferation of growth of Snap Fitness.
Economic Factors:
There are multiple economic factors responsible for influencing the approaches and decisions made by Snap Fitness. By looking at the economic criteria of Australia, it can be observed that the electrical cost, water rates, and wages provided to the members are continuously rising and causing the significant increase in the running cost of the business. However, the overall cost can be minimised by the company by developing a good and sustainable contracts and deals with the electricity companies and ensuring different types of expenses reductions according to the needs.
Social Factors:
Because of the services developed by Snap Fitness are comprised of greater social interaction, these can address successfully address the varying needs of customers from the perspectives of social networking, group exercises, and attitudes of the aged members (Gray, et al. 2016). In this case, the current social trend among the majority of Australian population is based on building well physique and looking good, and such factors can be achieved by participating in the physical exercises. With the increasing population of the country, residential developments contributing the growing standard of living providing much affordability in terms of accessing the services while offering great values for their money.
Technologic Factors:
The technologic involvement can be observed highly in the health and fitness industry, where the up-to-dated technology is required for the coping up with the maintenance and upgradation needs of the fitness machines and equipment. For examples, the Elliptical instead of weight bearing, and iPod holders included in the equipment offers more satisfaction to the customers, while providing competitive advantages to the company ahead of the other market competitors (Sekendiz, et al. 2014). On the other hand, Snap Fitness can text message the customers about their latest offers and deals can provide technical efficiency to the business while satisfying the customers.
Legal Factors:
Different kinds of rules and regulations designed by the health and fitness industry, the government of the country, and the insurance companies should need to be adhered to the relevant health and safety guidelines. The impact of such factor ensure Snap Fitness to maintain the machines and equipment according to the standard requirement, adhering to the occupational health and safety guidelines, and requires all the staffs and members to professionally trained and qualified.
It is observed that Snap Fitness amongst the different commercial health and fitness clubs is providing important kinds of sporting services to the consumers. By the result of its implication, it is critically observed that the organization is not only responsible for playing an important role in social engagement of the population to remain fit, but also it contributes to the improvement health and mental lives of the individuals (Zhang, Kandampully, and Choi 2014).
Based on the research made on the majority of Australian population in the downtown areas, it is observed that they perceive exercise as a method for improving their self-esteem as well as body image resulting in promoting their health, fitness, and strength. On the other hand, proper financial structure should need to be maintained for retaining the consumers while critically focusing on their needs to develop psychologically loyal customer base. Therefore, the price of the services, facilities, and convenience are the important factors affecting the decision-making aspect of the consumers. Apart from that, the perception of the consumers are also influenced by the social groups they are belonging (Hajkowicz, et al. 2013). Their engagement to the physical exercise depends on the motivation they gained from their individual social groups.
Additionally, it is mandatory to reflect that the behaviours and attitudes of the consumers are significantly influenced by their own respective culture and lifestyle. Many consumers find it difficult to engage in the different physical activities to be integrated in the lifestyle. Most of them are confronted with the time pressure as the major challenge for not participating in such type of activities. In terms of cultural point of view, it is observed that music plays an important role in gaining loyalty and enjoyment from the consumers, while the musical needs vary from age to age.
The products developed by Snap Fitness simply adhere to the mission statement of the company. it is based on offering fast, convenient, and affordable fitness services to the health conscious populations. Based on the analysis made, it is observed that the services of Snap Fitness majorly include the state-of-the-art cardio exercises and strength-training exercises, while maintaining the various high-end exercise equipment in the gym (Lovelock, Patterson, and Wirtz 2014). Apart from that, Snap Fitness also offers personal fitness training and consultation services, personal wellbeing planning, and online nutrition and meal planning.
The facilities and establishments are developed by Snap Fitness by gathering knowledge about the estimated populations and their average income levels in the downtown areas of Australia. On the other hand, these exercise facilities are developed in the specific places where the minimal involvement of competitors can be observed. Similarly, these facilities are located in such areas where majority of the residents live in the condominium buildings, where there is no presence of any exercise facilities (Norton, et al. 2014). Therefore, the selection of place for establishing the exercising facilities by Snap Fitness provides utmost benefits to the company.
The average monthly membership is costs $35, which provides the consumers to access the facility on a 24/7 basis 365 days. In addition, it provides multiple benefits to the customers, for example, a package of free services upon the sign-up.
Therefore, the prices of the services are fixed in such a manner to address the physical and health related needs of the customers from lower income groups with their low level of disposable income. The price of the services are effectively responsible for attracting the individuals from the poser segment.
With the help of the signified marketing campaigns, the services and the overall business of Snap Fitness are promoted. The involvement of turnkey promotional campaign supports the incident of different grand opening of its facilities in various locations. Another promotional process is named as “Walk-the-Street” campaign, where the representatives from SNAP perform some unique workouts on the sidewalk with the bright red clothing to grab the attention of the passers-by ((Peñaloza, Toulouse and Visconti 2012).
Conclusion and Recommendation
Based on the overall understanding, it can be assumed that Snap Fitness will continue to provide fast, effective, convenient services in an affordable manner without compromising any key factors connected with the demands from its members in obtaining the efficient fitness experiences. Therefore, the primary focus of the overall marketing and operational process of Snap Fitness is to support the development of precise fitness environment with maintaining the exceptional customer services. Furthermore, based on the analysis, it is recommended to Snap Fitness that it should need to adopt a stronger business model right from the beginning, while ensuring the system with the ability to forecast solid financial position (Morgan 2012). Such factors will contribute emerging success to the company in its near future.
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