Abstract:
The Wounded Warrior Gym is an affiliate of the CrossFit Inc., a consortium of over 13, 000 affiliated gyms which nearly half of them are located across the United States (Kelly, 2014). Greg Glassman and Lauren Jenai established the consortium in 2000. The first original gym was CrossFit in North Seattle, Washington. The company is decentralized but it runs a large number of privately affiliated gyms, law enforcement units, fire safety departments, and military organizations. Corresponding to the intrinsic mantra of the CrossFit, Wounded Warrior espouses a philosophy of physical exercise and provides a diverse series of physic fitness programs and workouts that range from: high intensity interval training, powerlifting, Olympic weightlifting, gymnastics, daily workout programs, plyometric, strongman and other fitness exercises (Murphy, 2012).
Background information:
The Wounded Warrior gym specializes in about ten physical domains that enhance its competitive edge across Virginia, namely: precision, agility, and strength, muscle power, coordination, vigor, flexibility, as well as, cardiovascular and respiratory resilience.
This report provides a concise analysis of the marketing plan developed by Wounded Warrior to enhance physical fitness among the Virginia Community, particularly the corporate employees, manufacturing employees, and the family households. Going by the results of a market research conducted across the State of Virginia and from the local gyms, the strategy development met for a five days’ session.
The team distinguished and determined the products and their pricing, the environment, pricing, placement, and promotional initiatives that will direct the strategies towards designing a community-based fitness intervention, with an optimal level of competitiveness.
Environment analysis:
The physical fitness industry is a fast growing market. All the major fitness companies and centers, especially profit-based, are continuously growing their influence and capacity across the United States, Canada, and overseas. The industry has been termed as a billion-dollar industry that exhibits revenue growth annually (Peaselee, 2014).
The Wounded Warrior’s competitors’, such as the Fit Slim and Mayfair Fitness, marketing strategy is considerably efficient in clearly and consistently defining the organization and its products. Quality products and services delivery, direct marketing, personal selling, sales promotion, advertisements, and public relations are the main communication tools in winning new clients and retain the older ones.
Demographics:
According to the 2010 United States Census, Virginia has a population of over 8 million people, with about 70 percent of the population comprising of the whites, 18 percent forms the blacks, 5 percent Asians, and the rest of the population consists of the Hispanics and other native communities. In terms of gender, the State has a population of about 51 percent males and 49 percent females (Virginia, 2014).
The primary target is the growing Hispanic communities, who have increasingly expanded across most of the American cities, with projections that their numbers may hit 87 million by 2025. According to the San Diego Ad Club’s marketing publication, their purchasing power is significant, rated at USD 350 billion on an annual basis, which would form a substantial income for the Wounded Warrior Gym (Virginia, 2014).
Socio-cultural settings:
The immediate population of the Americans and the Hispanics are relatively active to sedentary. Due to the slow-paced lifestyle and the high-calories rich food eaten by these two communities, especially the Americans who have poor dietary choices of fried foods, obesity has been a challenge that individuals consider frequent physical activity as the only remedy to fitness. Research shows that about 16 to 33 percent of the American and Hispanics children and adolescents are obese (Virginia, 2014).
Economics:
Recent studies indicate growing trends on the returns on investment for fitness programs, and statistics from various firms are ranging from $ 2.91: 1 to $ 7.85: 1. For instance, the Harlequins Fitness program generates up to $ 2.5 million annually through the fitness programs. The Explorer’s Insurance Firm has recorded profits of $275.8 million through its wellness programs, and returns of $ 8.41 for every dollar invested in physical fitness.
Technological factors:
As technology continues to evolve, computerized programs that monitor vital aspects such as the basal metabolic rates, body fat index, heart and respiratory rates, diet and other fitness evaluation parameters are gaining precedence within the fitness industry. Subsequently, this technological enhancement is drawing more individuals into fitness programs enrolment, with the improved attributes to monitoring health aspects with more precision.
Political and legal parameters:
The fitness industry has in the recent past received due recognition and approval from the political arena. Civic leaders have continued to urge the American population to adopt healthy lifestyles by making reasonable and healthy dietary choices, and more so to engage in physical fitness activity, an initiative that will sustain a healthy and productive future generations.
Moreover, as a promotional strategy the government has eliminated most of the repressive policies that made the starting and running of a fitness firm challenging. The reduction of the levy charges, start-up costs, permits and authorizations as well as the annual subscriptions, has made it easy for investors to conveniently in the fitness industry.
Competitive situation:
The main competitors are the Fit Slim and Mayfair Fitness firms. Fit Slim has about 420 gyms across the United States, with several outlets across the State of Virginia, while MayFair Fitness has over 2,000 fitness centers. Cumulatively, these two faculties provide weight management services, such as Body Gem and Rapid Results Diet System; individual training facilities and packages; community memberships, and student summer subscriptions.
In terms of strengths, these firms have significantly adopted modern technology in the aforementioned programs. Most of their facilities have outdoor games facilities, such as swimming pools, basketball and tennis courts. The main weakness in these two firms is that none of them targets families neither do they have services for the under 18 segment.
Competitors’ sales in dollars:
Target market:
The primary target is the growing population of the Hispanics and the white population. Provision of exercise facilities to these families and individuals will be essential, since the exercising and physical workouts have consistently become an integral part of the Americans, towards enhancing their physical fitness, as obesity has become a prime health concern (Kelly, 2014).
Moreover, Wounded Warrior is seeking to establish its market share among the corporate employees and manufacturing plants employees as well as to the families across Virginia. Factoring the growing corporate industry, the need for productive and healthy working personnel will considerably be a perfect option for annual corporate subscriptions.
The 4 Cs model:
Products and services:
The organization will provide mind and body activities involving stretching and relaxation (Yoga, Tai-chi, and mediation) exercises. It will also provide functional training involving the use of the stability ball to exercise the body trunk. The gym also provides intensity training, which entails many activities, set within a short time interval. In addition, cross training entailing circuit classes and dances; outdoor training events entailing bike riding, hiking and kayaking. Lastly, it provides strength training. This involves weight lifting; and technology based training such as the heart rate and basal metabolic programs.
Pricing strategy:
The firm will provide cost-effective programs, where the cost per program and the number of programs subscribed to will be used as the price and cost management tool. Families, groups, and corporate subscriptions will receive discounted prices of up to 23 percent. The firm will always provide free transportation services to some outdoor and community based activities. The firm will also provide more funding to the adjacent recreational parks and camps, and further supervise the programs offered to enhance their quality and safety (Sorger, 2012).
Placement strategy:
The firm will bring other related fitness industry players onboard towards enhancing the action outlets. The Summer Scorecard annual event will be a prime motivator among families, where families will be provided with a diverse set of advanced fitness programs (recently tested and approved) at great discounts and with many prizes and gifts to be won in competitions Discounts and prizes are an excellent tool for attracting and retaining clients (Anderson, 2012).
Promotional strategy:
In designing the promotional strategy, the firm will focus on seeking corporate and households’ input, keeping the parents involved, and providing the promotional content in Spanish. On the spokespersons level, the firm will rely on corporate managers, parents, pupils, and students. The informational channels applicable will be the billboards, movie previews, family magazines, schools, public libraries, partner sites, fitness equipment vendors and retail outlets, the Virginia local authorities, and through the MacDonald’s franchise.
The 5Cs model:
Consumer:
The immediate clientele has identified the essentials of incorporating physical activity in their life, a positive indicator to a ready market.
Context:
As physical activity among continues to rise, from as low as 19 percent in the year 2000 to about 47 percent in 2015, provision of physical fitness programs is therefore paramount. In addition, most of the corporate employees are also will to expend their fringe benefits offered by their respective employers to compensate for the fitness program, and this fact will guide the tapping of this segment.
The firm is seeking to enter into a bilateral agreement with the World Fitness Program. The new relationship will foster in-depth research on the relevant technological innovations that would significant enhance the physical fitness of our clientele.
Commerce:
The physical fitness industry is a rapidly evolving market. All the major fitness companies and centers, especially profit-based, are continuously growing their influence and capacity across the United States, Canada, and overseas. The industry has been termed as a billion-dollar industry that exhibits revenue growth annually (Virginia, 2014). As individuals continue to seek fitness programs, the fitness industry has recorded high profits in the last two years. This is evidenced by profits of up to $755.2 billion through the fitness programs, and returns of $ 8.41 for every dollar invested in physical fitness.
Convergence:
The firm will consistently adopt a framework that is client centered, for the purposes of customer satisfaction and retention. Communication prevailing as the most pertinent aspect, the information management protocol will sustain a convenient information flow from the management to the clientele (Jain, 2012). Using modern technology such as podcasts and vodcasts in dissemination, the firm will provide a convergence that will foster reliable and expedient information channels. By employing professional expertise in monitoring the fitness equipment and supervising the activities, this approach will guarantee quality services delivery in a safe environment.
STP model:
Segmentation:
The firm will target the households and individuals across Virginia, as the need to exercise has become a daily and routine practice across the last few years. In addition, the firm will serve the corporate fitness needs that will tap the increasing number of employees across the Virginia corporate industry.
Targeting:
The primary target is the growing Hispanic communities, who have increasingly expanded across most of the American cities, with projections that their numbers may hit 87 million by 2025 (Virginia, 2014, p. 47). Considering their high spending power, and the subsequent demand in fitness services among individuals and families, the firm is seeking to tap this market share.
Positioning:
Unlike the prevalent firms, the firm will provide fitness programs befitting to the entire family, especially the under 18 segment. In addition, the firm will offer highly discounted prices, with up to 23 percent margins, making the services and products affordable to nearly all the households (Kelly, 2014). By providing innovative technological advancements in the monitoring of essential fitness aspects such as the cardiovascular and respiratory rates, this step will be of major significance in monitoring the clientele health with more precision.
Monitoring and sustainability:
In monitoring the success and sustainability of the firm, the management will utilize the following objectives as the evaluation tools:
Goal 1:
The main goal is to register 1000 new members in the first year, 2500 in the third year, and about 4500 by the close of the fifth year. In gauging this objective, the firm will examine its records on fruitful enrollments and subscriptions.
Goal 2:
The second goal is to construct and fund a fitness community event within the first year of establishment. It is imperative that the firm must endeavor towards establishing a technological engineering exhibition event, which will be seal in highlighting the firm’s products and services. The plan will assign the company a status in the physical fitness industry, provide a feedback prospect, and provide a collaborating opening with new customers and professional associations.
Goal 3:
The third goal is to create an 80 percent products and services awareness to residents as well as to the fitness industry practitioners across a 90-mile span. The assessment tool will be to carry out a survey by the end of the year, and evaluate the level of brand awareness.
Goal 4:
The fourth goal is to attain a 10 percent annual growth in sales. To establish that the business model is practical, the firm must at least produce the directed rise in the sale of its products and services. Nonetheless, this objective will be evaluated by the close of the second year throughout the fifth year in financial auditing and analysis.
SWOT Analysis:
The following SWOT analysis captures the main strengths and weaknesses within the firm, and defines the opportunities and threats facing Wounded Warrior Gym.
Strengths:
The firm has a results oriented approach in attracting and retaining its clients; a comprehensively researched and detailed physical fitness program that is projected on a long-term basis; innovative technology; and adequately trained professionals (Begler, 2012).
Weaknesses:
The firm is subjected to high initial costs in sourcing and installing the modern technology; high costs expected in the customization of products and services; the limitation of establishing a large volume business model under the same roof; and high costs projected in attracting a substantial corporate clientele (Begler, 2012).
Opportunities:
The firm has the opportunity to participate in a business environment that has high prospects of growth. The company has the opportunity of tapping the expanding corporate clientele. It has the ability to influence the future quantitative analysis that endorses the long-term benefits of the fitness programs on corporate productivity. The company can increase its clients through the adoption of the modern technology in monitoring clients’ health.
Threats:
The firm has no guarantee over an unpredictable economic recession; prospective competition from other well-established industry players; more fitness firms are continuously making new entries into the market, and this heightens the intra-competition; and a changing trend among individuals, where they are adopting the personal responsibilities for their health maintenance.
Need analysis:
Strengths:
The firm has the ability to rejuvenate the fitness industry through intensive technological adoption; the firm enjoys a significant pre-existing market share being an affiliate member of CrossFit Inc.; fair-priced yet quality products forms the prime clientele motivation; and long-term experience in the fitness industry under CrossFit Inc. Consortium provides substantial knowledge on the market demands (Murphy, 2012).
Weaknesses:
The firm must create intensive rapport with the Hispanic households and the corporate faculties, which is a costly procedure.
The industry lacks an oversight body that controls and regulates the competition and management of the fitness industry.
There is low interest in joining, where members show little interest in subscribing for the services within the next two months.
Many clients are unaware that the firm is newly providing the fitness services in Virginia.
Opportunities:
Obesity being common among the Hispanic people will compel this community to seek dietary management skills and knowledge from the firm, which will lead to creation of a business relationship.
Customer loyalty: these communities depict loyalty and commitment to community based organizations, which hints of long-term business relationships.
Majority of the citizens form the family population since out of the 8 million people in Virginia, about 6 million are in families. This suggests of a potential to tap the large household membership.
There are many schools in the area. This will enhance the business promotional strategies.
Threats:
The organization faces difficulties in product differentiation. Factoring the existing overlap in the products and services offered across the industry, it might be difficult for clients to distinguish which gym has the best services and products.
Many schools are already running after-school programs. This will reduce the number of the under 18 segment considering that they may not be interested with the offered services. A joint exchange program will be essential to provide some of the main programs and services.
Product feasibility studies outcome:
According to a survey conducted across the United States, most of the respondents presented their input towards the provision of the following products and services in the fitness industry. Mind and body activities encompassing stretching and relaxation (Yoga, Tai-chi, and mediation) exercises (Kelly, 2014).
In addition, provision of functional training programs involving the use of the stability ball to exercise the body trunk was preferred among the athletes and sportsmen received endorsements. Specific training entailing golfing or running was considered a vital program among the middle-aged males.
Moreover, intensity training which entails many activities that are set within short time intervals proved a major motivator among the short-races athletes (Kelly, 2014, p. 90).
Cross training, which entails circuit classes and dances, was found preferable among the teenagers and professional dancers.
In addition, outdoor training events entailing bike riding, hiking and kayaking were regarded befitting among the males and females of varied age groups. Strength training, which involves weight lifting, was rated vital among the youth, while technology based training such as the heart rate and basal metabolic programs was acknowledged for good health monitoring practices across the sporting and medical fields (Kelly, 2014, p. 93).
References:
Anderson, D. W. (2012). Strategic marketing planning for the small to medium-sized business: Writing a marketing plan. New York: Business Expert Press, LLC.
Jain, S. C. (2012). Marketing: Planning and strategy. South Melbourne, Vic: Cengage Learning Australia.
Kelly, Q. (2014). CrossFit training: Understanding CrossFit training and get started to a new life of physical fitness. Createspace.
Murphy, T. J. (2012). Inside the box: How CrossFit shredded the rules, stripped down the gym, and rebuilt my body. Boulder, CO: Velo Press.
Sorger, S. (2012). Marketing planning: Where strategy meets action. Boston: Pearson.
Virginia. (2014). Local government and school division consolidation. Richmond, Virginia: Joint Legislative Audit and Review Commission.
Virginia. (2014). Size and impact of federal spending in Virginia. Richmond, Virginia: Joint Legislative Audit and Review Commission.
