Maximizing Profitability in the Fitness Industry Post Pandemic

Background and context

Fitness and well being is gaining immense popularity in recent times. The frequency of fitness centres in the UK, increased from 7,038 to 7,239 in a year. The membership increased by 4.7%, coupled with the total market value by 5.1 billion, while the UK penetration rate passed 15% the first time (Parviainen, 2018). The assignment works on leveraging the possible mentality of the customers and the importance of remaining healthy after this pandemic is over. It is for the same reason that assignment devises a pricing strategy covering the competitor analysis target audience segmentation for ensuring profitable business for the chosen gym business model. The analysis of the competitors can work on understanding the possible price and services given to the customers for ensuring better business and profits

Competitor analysis

The aspect of competition provides the business with the scope to regulate competition by preventing loss of potential customers and share within the market to the competitors. The aspect of comparative analysis based on pricing allows the business to respond to every move of the competitors (MacFarlane,, Phelps and Schulenkorf, 2019). Based on the above table it can be clearly stated that The chosen gym has less pricing each year. The aspect of low pricing strategy will have a greater benefit after the lockdown is lifted as people are unemployed or have limited expenditure to make. The low pricing strategy can work on attracting the customers as the budget would be limited and they cannot afford a high end gym due to pricing constraints. The hidden tariff and absence of contract makes it easier for the gym to attract more customers as opposed to the others which have an admission tariff (Chekhovska, 2017). The competitive analysis additionally provides a brief area about the strength and weakness of the competitors. This strategy works on providing a distinctive advantage by providing the much needed barrier that can be developed for preventing the chances of competition from entering withining the market, while exploiting the possible weaknesses.

Target analysis

Segmentation and defining the target audience

Like any other ubiquitous approach to segmentation the market, the prime goal of the interventions is to cluster similar consumers based on their names in order to allow the fitness centre to develop a suitable marketing mix. In this segment for the gym six different market segments are developed as follows:

Making friends

Reducing weight

Coming back to shape

Peak performers

Sport focus

Health requirements

Many customers view the fitness centre as a scope to engage with individuals with similar perspectives towards lifestyle and make new acquaintances (Anderson, Grant and Hurley, 2017). The consumers in the mentioned sector are moderately fit and enjoy an active lifestyle but their prime motivation is to fulfill the social desire of mixing with new people. The chosen fitness centre works for attracting and retaining customers by having a defined target market with a variety of exercises that are energetic and for providing space within the facility for mixing with other people (Mooney et al. 2017). The next segment is losing weight and is common in the gym to specialise in a weight loss program as overweight individuals think daily exercise is crucial for maintaining the shape and then further maintain the social image. The best approach to marketing of the chosen segment is to be warm and welcoming while establishing a strong program suitable to meet their needs. This segment is particularly fearful of attending a fitness centre due to previous experience of stigma. On the other hand emotional support motivation is delivered at the gym by the staff which is a key to success within the chosen market segment (Raven, 2018). Segment is likely to utilise a personal trainer promising to bring more profits to the business. Getting into shape is a market segment consisting of consumers solli concentrated in improving the look of the body by weight training or bodybuilding. This segment is composed of a young demographic and has an equivalent proportion of both the genders. This group is eager in both the facilities offered in terms of suitable exercise putting their fitness goal and weight training development.

The peak performance segment is a highly self motivated and disciplined individual while it comes to fitness and health (Rumbach, 2017). The customer works on focusing upon their personal best while building up the endurance for a series of exercises. However a disadvantage of this segment is that they are likely to own the gym and work on dominating certain areas of the gym, slightly intimidating other customers. Such customers are highly attracted by flexible working hours and broad choice of facilities. The health requirements are the customer attending the gym based on the doctor's advice for improving the strength and health (Shephard, 2018). Unfortunately they do not enjoy the exercise rather perceive exercise as a daily chore. These consumers can give maximum benefit for the personal trainer. However the customer segment lacks enjoyment and motivation making them short term visitors for the business. Finally the sports focuses are the individuals who are highly involved in sports at a competitive level and make use of the fitness centre for improving their general fitness and strength. Motivated and looking for services that can support their growth in the field of sport (Shephard, 2018)

Proposed pricing strategy

Realising that every individual is dealing with tough time and hard revenue reset during and after the course of pandemic it is important to set a pricing strategy that meets both the demands of the customer and the business (Mohamad and Cresswell, 2019). Flexible pricing is the key to attract the customers. Use of renewable cards, winback and even employing the new customers are province selling strategy during the course of pandemic. Bundling in services and changing bin best subscription models may be affordable in the current scenario. The current scenario would be fair enough state that the economy is likely to witness the down for making fitness an option and not necessary choice (Shephard, 2018). With increasing number of competition from the other fitness centres it is a prime importance to maintain the price of the services or bandal upto almost services and offer at a collective cost making the customers feel that the business values their money. However in order to attract new customers the business could rely on penetrative pricing techniques which initially said the price of the services at a lower level as a customer can be attracted for the business (Raven, 2018). However, the business can move on to value based pricing where setting a price is carried out by how much the customer believes that the service being sold is worth the money. Take a deeper dive into A Controversial Perspective on Intelligence with our additional resources.

Conclusion

Strategy for targeting customers and for selecting a suitable pricing method for the gym is different in the current scenario of the existing pandemic condition. The situation can make the consumers feel that fitness and gym services are secondary options and definitely not a necessity. However a post pandemic situation can create immense physical and psychological impact on the human, reducing their functionality. It is therefore of prime importance to engage in fitness activities for ensuring better health outcomes. Hence it can be concluded the assignment provides a clear overview about the business and the weight plans to target the customers for better profit margins

Reference list

Anderson, C., Grant, R.L. and Hurley, M.V., 2017. Exercise facilities for neurologically disabled populations–Perceptions from the fitness industry. Disability and health journal, 10(1), pp.157-162.

Chekhovska, L., 2017. Fitness industry: state and prospects of development in the countries of the world. Slobozhanskyi herald of science and sport, (2 (58)), pp.19-24.\

MacFarlane, J.D., Phelps, S. and Schulenkorf, N., 2019. Fitness industry self-regulation: institutional or by choice?. Sport, Business and Management: An International Journal.

Mohamad, M.R.A. and Cresswell, M., 2019. Technology as tool to overcome barriers of using fitness facilities: a health behavioural perspective. Proceedings of the British Academy of Management, pp.1-31.

Mooney, R., Simonato, P., Ruparelia, R., Roman-Urrestarazu, A., Martinotti, G. and Corazza, O., 2017. The use of supplements and performance and image enhancing drugs in fitness settings: a cross‐sectional investigation in the United Kingdom. Human Psychopharmacology: Clinical and Experimental.

Parviainen, J., 2018. Embodying industrial knowledge: An epistemological approach to the formation of body knowledge in the fitness industry. Sociology of Sport Journal, 35(4), pp.358-366.

Raven, S., 2018. Mind the gap: Sport management education and employability auto-ethnographical analysis of sport management education and the sports fitness industry. Education+ Training, 60(5), pp.458-472.

Rumbach, A.F., 2017. Keeping the voice fit: voice education and training for the fitness industry. In Voice Training Programs for Professional Speakers: Global Outcomes (pp. 99-137). Plural Publishing, San Diego, CA.

Shephard, R.J., 2018. Health and Fitness in Industry: The Development of Occupational Health. In A History of Health & Fitness: Implications for Policy Today (pp. 363-380). Springer, Cham.