Segmentation and Target Market Essay Example

so popular with marketers is that they’re often associated with consumer needs and wants. Another is that they’re easy to measure” (Kotler & Keller, 2011, p. 216). While some marketing strategies may only pursue gender, it is certain that Planet Fitness targets multiple demographic variables, which are explained later. Planet Fitness’s segmented market psychographics is indeed its chief strategy.

Psychographics Planet Fitness understands the importance of psychographics in marketing its service. By far, the understanding and handling of psychographic data warrants Planet Fitness to obtain a competitive advantage over its competitors. Planet Fitness’s ability to exploit a niche in the market through its comprehension in psychographics is proven paramount in its ability to attract a customer base otherwise ignored by competitors. That is, Planet Fitness’s primary customer base is an individual who exhibit a high lotus of control.

“The personality variable of “lotus of control” is one personality trait that has generally shown fairly consistent results with respect to environmental beliefs and behavior” (McCarty, Shrum, & Lowrey, 2010, para. 11). As a compilation of psychology and demographics, psychographic utilization is the most concentrated marketing tool used by marketers, as well as Planet Fitness’s marketers, which are explained later (Kotler & Keller, 2011). However, location has always and will always constitute the customers willingness to utilize the services offered.

Therefore, the optimization of customer traffic is of vital importance to any Planet Fitness’s success. Geographic In some metropolitans, popular fitness facilities (aka gym’s) are dominated by bodybuilding resources, which are located in business active sites. Unfortunately, their high prices, compact, and at times uncomfortable exercise environments, deter many prospective customers. To combat this

situation niche fitness options such as the Lady Fitness, Curves and Thrive Fitness franchises offer alternatives to elevate the uncomfortable environment.

Therefore, Planet Fitness’s strategic business and marketing plans must co-exist and support each other when determining what industries to serve, what location is ideal, and what the size is required of the facility. Behavior Determining how best to influence consumer behavior relies heavily on a business brand. Planet Fitness has capitalized on the typical uncomfortable gym environment to establish its brand, and they are not alone in identifying this market segment need.

Downsize Fitness founder Francis Wisniewski, 38, concurs. Large clubs make you feel on display. I’ve been big my whole life, and small incidents probably make it seem worse that it really is. But at the gym, it’s all out there for everyone to see. And I know if I’m feeling it, overweight women feel it worse (Deardorff, 2012, p. A. 2). The customer base is an individual who is astutely conscious of the environment they live in, and believe that individuals should not be criticized for being human.

As such, their behavior in health and fitness activities is best influenced with an environment in which they feel safe from judgment. Positioning Planet Fitness has positioned its services with very low prices, and according to Planet Fitness (2014) “a unique environment in which anyone – and we mean anyone – can be comfortable” (Mission Statement). With its popular trademarks such as the Judgment Free Zone® philosophy where members are guaranteed to not feel intimidation by individuals Planet Fitness has classified as Lunk’s as they exercise.

According to the Urban

Dictionary (2014), “lunk is a made up word by Planet Fitness used to describe one who grunts, drops weights, and judges. ” However, it may be more probable that lunk is short for lunkhead, which is a descriptive term for a stupid person. The term Lunk is cleverly incorporated by Planet Fitness marketers to portray its brand as an environment free of judgment; thus, offering a psychological credence of security and personal acceptance for its customers.

To further refine its branding position, Planet Fitness has integrated a Lunk™ Alarm in each of its facilities, which has strong appeal to its target market. The Lunk™ Alarm is a visual and audible signal, which employees at any Planet Fitness location may initiate based on their subjective opinion if they believe someone is acting as a Lunk. Planet Fitness’s action is simple, the Lunk is asked to leave the facility.

Target Market The Planet Fitness’s target market is men and women aged between 15 – 44 years old, located in suburbia America, which is 40. 2 percent of the United States Population (U. S. Census Bureau, 2012). The individuals targeted are families with household incomes in the middle to upper middle class located near retail settings. They are persons more aligned with wanting lifestyles of health and sustainability (LOHAS), who are willing to spend their money to advance their health and personal development (Kotler & Keller, 2011). As money and time constrained individuals, Planet Fitness’s low cost membership and 24-hour access Monday thru Friday are appealing to this target market.

Planet Fitness’s combination of demographic and psychographic marketing approaches combined with low cost and free additions,

such as personal trainers has allowed it to position itself to a targeted market segment largely ignored by its competitors – the insecure, sometimes obese, but more of just the average person. Planet Fitness’s market target are those regular people of ordinary life who are not consumed with sculpting their bodies with hopes to grace a magazine cover, nor do they pursue the Mr. Olympia body building title.

To further entice appeal to its target market, Planet Fitness strategically advertises monthly with mailers, television commercials, radio advertisements and it has a strategic business partnership with NBCs very popular The Biggest Loser® program. According to Yahoo Finance (2012), Planet Fitness has grown to more than 4. 5 million members [and] prides itself on giving people an unbeatable value, top-notch facilities, and an atmosphere that focuses on the needs of the occasional or first time gym user rather than the hard-core fitness fanatics (para. 9).

Conclusion The market segmentation and target market of Planet Fitness is comprised of approximately 127,083, 794 persons (40. 2 percent) in United State alone. With their low prices and advertising campaigns poking fun of hard-core fitness fanatics, Planet Fitness has been able to exploit a niche in the fitness industry. Additionally, by mitigating the typical gym intimidation atmosphere factor with their Judgment Free Zone® philosophy, and with branding tools such as the Lunk™ Alarm, the firm has accomplished with marketing what its competitors have not.

Furthermore, with expansions in other countries, the firm’s marketers may continue to experience the same growth using the same branding position and marketing approach. However, it is likely that the marketers will have to

modify the “lunk” character to appeal to the country’s culture, assuming this approach will work. While Planet Fitness has exhibited phenomenal growth due to its brand positioning, it has a vulnerability in its marketing strategy, one that may backfire in non-American cultures.

That is, its greatest advertising blitz of poking fun of body builders and fitness competitors may be viewed as hypocritical in other more socially conscious cultures. Planet Fitness prides itself on its creation of the Judgment Free Zone® philosophy, and the Lunk™ Alarm, which are ironically in themselves judgmental concepts. Some cultures may find the lunk character as another portrayal of American over indulgence, and arrogance particularly in cultures where most may be classified as lunkheads due to lack of educational resources.

Also, there is a potential of competitors reversing Planet Fitness’s marketing strategy to appeal to those who are less fortunate in mental capacity. Although these potential threats and weaknesses could be taken advantage of, Planet Fitness’s competitors may not want to target the same market; thus Planet Fitness will continue to grow. In any case, it is certain that the marketing team of Planet Fitness will continue to treat their marketing plan as a living document that will continually undergo modifications to support their brand and strategy for growth.

In the mean while Planet Fitness will continue to make the average person of all shapes, sizes, and fitness level feel good about themselves. According to Reviews (2014), When I joined [Planet Fitness] I was 19 years old, weighed 420 lbs. , had a 56” waist and had to wear size 6XL shirts. I had sleep apnea, high blood

pressure, extreme fatigue, and very low self-esteem. With the tools that Planet Fitness offered me, I was able to lose 240 lbs. I now have a 32” waist and wear size medium shirts. Planet Fitness saved me from cutting my life short due to obesity and lifted my self-esteem to an all time high. – Jordan A. (Testimonials).