RETAIL MARKETING.

Running Head: RETAIL MARKETING 0
RETAIL MARKETING
Student name
3/12/2019

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Contents
Introduction......................................................................................................................................2
Situation analysis.............................................................................................................................2
SWOT analysis................................................................................................................................5
Competitor analysis.........................................................................................................................7
Comprehensive Strategy Assessment..............................................................................................9
Customer analysis..........................................................................................................................11
Market analysis..............................................................................................................................11
Recommendations and conclusion................................................................................................13
Works Cited...................................................................................................................................14

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Introduction
Prior to any investment decision, it is relevant to analyze the current market situation in
which the company exists. This includes analyzing the external and internal environment of the
company, the issues that are pertaining to the industry, that it is operating and which could
influences the business in Canada (Armstrong & Giardina, 2016). For better understanding, an
organizational case would be considered that is planet fitness. Moreover, the report will include
analyzing the competitors and their marketing strategy.
It can be said that the company needs to keep a track of its competitor’s strategies, in
order to sustain in the market, and gain competitive advantage. Moreover, it can be said that
customers are the key stakeholder that will be responsible for the decisions that the company
would take, which indicates the relevance of analyzing the buying patterns (Adam & Kotler,
2014).
Situation analysis
Planet fitness is a franchisor based in America, and operating the centers based in New
Hampshire. It is one of the greatest franchises fitness club located in various nations, for
instance, the United States, Canada, Mexico, and many others. The company prefers to market
itself as a judgment-free zone. Considering the changing trends of the developed nations, it can
be said that the opportunity for the company can increase. The company’s mission is to improve
the lives of individuals while providing the best quality experience of fitness in non-intimating
and high-quality environment, which the company said to be a judgment-free zone (planetfitness,
2019).

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The corporates have been increased in developed nations in Canada, which has increased
the sitting job of individuals, and lack of physical activities and increase in obesity rate has
provided an opportunity for the company to promote such services. This industry had grown
since increase due to this reason, and so the competition has also increased to a greater extent.
The people prefer to experience such services in order to maintain their fitness and increase
physical activity. Moreover, the social trends in Canada are another major factor for the increase
in this industry (Bull & Sitas, 2016).
According to the statics, (as presented in figure 1), the projected revenue for this industry
in Canada seems to be gradually increasing. This reflects increase opportunity for the company
in this industry in Canada.
Figure 1: (Source: (statista, 2019)

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Figure 2: (Source: (statista, 2019)
Moreover, from figure 2, it was observed that the maximum users for this industry are
from age 25 to 34 years old that is twenty-nine percent. This may be one of the major aspects of
deciding the target audience for the company. Moreover, from figure 3, it can be said that the
maximum customers are from high-income group ion this industry, which also indicated the
company to select the market segment (statista, 2019)
Figure 3: (Source: (statista, 2019)

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SWOT analysis
For analyzing the internal and external environment of the company, SWOT analysis
would be conducted
Strengths
 High customer satisfaction – the customer relationship management of the company
seems to be the strength for the company, and it is reflected by the satisfaction level
among the customers (Burdo, 2018)
 Strong dealer community – the company was able to develop a culture with the dealers
and the distributors that they do not only feel responsible for promoting the company but
also make customers explain how the customers could be able to optimize the benefits
from the services and products
 Strong distribution network –the company is able to reach the maximum potential market
and consume due to its strong distribution network globally
 Strong brand portfolio – the company’s strength is their brand portfolio, which is very
strong and the company would be able to enter into new products in the near future
 Successful training program – the company’s staff is very skilled, and the reason is the
company’s training program, which is very helpful for the company to enhance
workforce competencies (Chung, 2015)
Weakness
 Not efficient financial planning – the financial planning of the company seems to be
weak, it can be said through its current asset ratio, which indicates that the brand could
have more efficiently use the cash of the company (Janis & Mann, 2014)

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 Product demand forecasting is not appropriate – this is one of the company’s drawback
that let the company suffer through having additional inventory in the channel and in the
house as the demand forecast is not up to the mark (Hunt & Bicen, 2017)
 Incompatible organization structure –it seems to be compatible with only its existing
business model but seems to be restrictive when it comes to expansion in another product
segment
 High labor turnover – this has been observed that the employees left the organization
very rapidly, which is one of the reasons for the unstable organizational environment,
eventually effective the production efficiency (Gong & Yi, 2018)
Opportunity
 Expansion strategy – the company could enter into the market, which it has not tapped
yet. The company can expand business in other nations, or other locations in the existing
nation (Liu, 2018).
 Cost of transportation – the company could gain opportunity through decrease the cost of
transportation, through the use of the latest technology and eventually increase the
profitability of the company
 Government green drive market development – this has provided the opportunity to the
company to procure the products from state government contracts
 Newmarket opening – the government free trade contract could be an opportunity for the
company to enter a new market (Boone, 2016)
 Increase in customer spending – this could create the opportunity for the company to
increase the business and the customer would be able to spend more on their fitness

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 Change in customer behavior – this can lead to the company to gain opportunity through
a change in consumer trends, which would let the company with expansion in products
according to these change (Kaul, 2017)
Threats
 The threat of new entrant – this is one of the major threat in the industry, that is the threat
of new companies entering into the industry, the reason being new companies are able to
bring up latest technology and enter as per latest trends in the market
 Online channel approach – another changing trend is increasing in online services, that
the customer prefers over the traditional method (Kumar, Harmeling, & Palmatier, 2018)
 Maintenance cost – the maintenance cost of the physical fitness center could be
increased, which may cause a decrease in the profitability of the company
 Lack of skilled workforce – the company major operations depend upon the workforce, in
case of inability of the company to have a skilled workforce could be one of the major
threat (Safari, Safari, & Montazer, 2016)
Competitor analysis
Considering the direct competition, some of the popular fitness centers and fitness clubs are
planted fitness direct competitors. Some of these include:
 Studio, 55 – it is one of the popular fitness centers in Canada which could be a direct
competitor for the firm; the company is providing friendly relation within the gym.
However, the area for the gym is not very large, that is the designing of the gym is in a
small area, although intimate and small. The company offers the customer for the private

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training program, which allows them to have a personal trainer and program best suited
them
 The arbutus club – this is another major fitness club in Canada, which can be a major
competitor for Planet sports. The company is offering the luxuries club, although only
targeting the high-income group people. The club consists of a fitness program, sports
program, upscale dining facilities, soundproof music studios.
 The Yorkville club – it is another fitness center that is planet fitness’s direct competitor,
which is providing the area for gym along with various facilities like a locker room, club-
wide Wi-Fi, bathing size towel, and pristine facilities, for value creation to the services.
Some of the other direct competitors could be online applications that are providing
fitness techniques. This has been the latest trends for the people who like to be fit, but are not
willing to some centers to do so. Sweat coin is one of the Google application lead by
Sweatco. ltd, providing the services of physical exercises at home. ParticipACTION,
AllTrails, are other application which is promoting physical fitness of the people with a click
on mobile devices (Finne, 2017).
Considering the change in technology, some of the indirect competitors are applications
like Headspace, which first ranked Google play application, which is helpful to the customers
in mediation and sleep. Moreover, some of the devices like the fit band can be indirect
competitors (similarweb, 2019).
Moreover, according to the CEO of the planet fitness, the major competitors are the
relaxing places that are attracting customer to come to the gym instated of these fitness
centers. The company believes that Chili’s and Uno’s (marketwatch, 2019).

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Comprehensive Strategy Assessment
 Studio, 55 – the company marketing strategy include proving the personal space and
personal training to the people, the company has adopted the focus strategy. Moreover,
the placing strategy includes the storage area to be small and cozy for the customers,
although it. The competitive advantage of the company includes the personal training
program and customer relationship management of the company. This reflects the higher
quality service of the company (Salar & Salar, 2014)
 Headspace – the strategy that the company is following is the digital strategy, the
company is attracting the customers through e-commerce activity. The company has
adopted the product differentiation strategy, where the company is focusing on the broad
customer segment for the services of meditation and relaxing activities at home.
Moreover, the pricing strategy is considered to be the economic strategy, where the price
seems to be budget friendly for the customers, and the payment mode is online.
 The Yorkville club – the strategy adopted by the firm is creating value to the service
through some additional services in the fitness center while keeping the prices low and
budget friendly. The strategy of the company is quite similar to that of Planet Fitness.
Moreover, the competitive advantage of the company would be the services that are
available for the customer within their budget like locker room facilities, to make the
fitness journey of the customer comfortable
 The arbutus club - the marketing strategy adopted by the company is the premium
strategy, where the company is offering a premium product at a premium price. This

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included the best quality service to the customer. Moreover, considering the placing
strategy, the centralized location is considered, with a large area for the center. The major
competitive advantage of the company is the integration of various fitness activities at
one roof, and providing the luxuries experience for the customer, for which the customer
is also interested in paying a higher amount.
 Chili’s and Uno’s – this is an indirect competitor of the company, but it is considered to
be a major competitor. The company marketing strategy is to provide an area to relax and
provide food to enjoy for the customers. This allows the customers to attract towards the
delicious food and not willing to go for fitness centers. The competitive advantage of the
company is that people enjoy having good food and relax, instead of going to the fitness
club and doing the workout.
 AllTrails – this is an e-commerce company, which has adopted the digital strategy, where
the marketing is also done digitally. The company is providing a variety of the product,
there considered to be adopted the product differentiation strategy. The company is
offering the customers to help are being fit through various sports activities, exercises,
mediation, and all different fitness sports. The major competitive advantage is that it will
help the customer to be fit without going anywhere and do the exercise anywhere and
anytime.
Customer analysis
The customers are expecting a good service by the company, and availability of relevant
physical tools. The customer expectations are much from the company due to the increase in
competition and many centers providing good services. Planet sports are providing good

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services, along with budget-friendly pricing strategy (Ho, 2014). The target customers for the
company include middle-income group, people from young to old age as per its programs to
offer to the customers, however, the focus is more towards the age group from 25 to 45 years
old. Moreover, gender is not the condition for the target customer for planet fitness, the company
is targeting both genders male and females. The company target customers for the center in
Ontario would be nearby residents in the tri-city, in Canada. Considering the buying behavior,
people are ready to take a full package for a fixed period of time for the gym, that is the yearly or
quarterly package, and prefer to visit the center regularly (Salar & Salar, 2014).
Market analysis
The market in which the company is targeting the customers is increasing, due to a
change in social trends and health concern of the people. Initially, customers were interested in
basic needs from the brand that is the large area to exercise, fully equipped center. However this
needs and desires or expectations from the company have been changing with time, the customer
is expecting the company to provide additional service to the customer. For instance, services
related to the good changing and bathing area, locker facilities, and additional spa facilities are
expected by the people nowadays (Birdee, 2017).
Moreover, the major change in the service expectation from the company include the
digital transformation, that is the availability of service information online, registration method
top be online, and payment system has also been changed, like the facility of EMI’s has been
increased these days (D’Innocenzo, 2016).
In 2017, the market share of the company was $27.6 billion, considering the health club
industry in the United States, which seems to be a large share in the industry (Tenebruso, 2019)

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The markets where the company can target the customer are various locations globally.
The company has various potential markets, for instance in Canada, which is a developed nation
and people are affected and think about their health and fitness which time. Considering the
qualified available market would be various locations in tri-city of Canada, where the company
has already tapped, and the market is quite established, however, there is a various gym in the
location, which could be one of the reasons that the customer must have expected better services
by the company (Dobbs, 2014).
The target market for the planet fitness would be locating the center in Waterloo, Ontario.
The customer in this residential area would be interested in joining the fitness center due to
nearby services to opt within budget. The company in order to retain the existing customer
increases the services and facilities and an increase in the program to target this market. The
reason being, the company is earning major revenue from an existing customer, as they are
regular to the fitness center and the company would prefer to retain those customers (Doole &
Lowe, 2008).

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Recommendations and conclusion
From the report, it can be concluded that taking the franchise would be beneficial, and I
would prefer to take up the franchise for Planet Fitness. The reason being, the company is a
popular among developed nations, and has tapped various nations. The brand recognition of the
company is strong, which would help to target the potential customer in Ontario. The major
recommendations for the company include technological advancement, new product
development, innovation, and service quality management.

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