Marketing Strategies and Analysis for Plus Fitness Management Report

This report provides a comprehensive marketing analysis of Plus Fitness, a gym chain operating in Australia, New Zealand, and Asia. The report begins with an executive summary outlining the key areas of focus, including the 5 Cs of marketing (Company, Customers, Competitors, Collaborators, and Climate). It then delves into the organizational mission, situation analysis, and market analysis, covering segmentation, targeting, and positioning strategies. The analysis identifies competition as a major challenge and recommends broader target segments. Finally, the report discusses tactical plans, including product, price, promotion, and place, with recommendations for each element of the marketing mix. The report also touches on the company's cost leadership strategy and the impact of franchise operations on service quality, along with PEST analysis to determine external business factors and recommendations for improvement.

Running head: MARKETING MANAGEMENT
Marketing management
Name of the student
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Author note

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Executive summary
The aim of this report is to discuss about the 5 Cs of Plus Fitness from different perspectives.
The analysis identified that major challenge for Plus Fitness is coming from the competition in
the market. On the basis of these identified factors, segmentation, targeting and positioning
strategies to e followed Plus Fitness are discussed. The recommended target segments had been
made broader and wider. Lastly, the tactical plan was discussed in the forms of marketing mix
elements. Each of the elements is based on different perspectives and considerations and is
expected that these mix elements will be beneficial for Plus Fitness in the long term.

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Table of Contents
Introduction......................................................................................................................................3
Determination of the organizational mission...............................................................................3
Situation analysis.............................................................................................................................4
Company......................................................................................................................................4
Customers....................................................................................................................................5
Competitors..................................................................................................................................6
Collaborators................................................................................................................................7
Climate.........................................................................................................................................7
Market analysis and strategies.........................................................................................................8
Market segmentation...................................................................................................................8
Targeting strategies......................................................................................................................9
Positioning strategy...................................................................................................................10
Tactical plans.................................................................................................................................12
Product.......................................................................................................................................12
Price...........................................................................................................................................12
Promotion..................................................................................................................................13
Place...........................................................................................................................................14
Conclusion.....................................................................................................................................14
Reference.......................................................................................................................................15

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Introduction
The current business scenario is complex as well as potential for the contemporary
business entities. This is due to the reason that modern day business entities are considering
number of factors in their operations while the increasing market opportunities are also being
tapped by them. It is important for the business entities to review different determining factors
and accordingly design the business strategies. Marketing is a major element that should be
considered in the designing of business strategies. The more effective and efficient will be the
marketing activities, the more will be the potentiality of the particular business entity in
attracting new customer segments (Leonidou et al. 2013). This is same in the case of Plus
Fitness, which is operating gyms in Australia and is facing a high challenges in the market. They
are having more than 220 locations across Australia, New Zealand and the Asian market.
However, with the increase in the competition in the sports and fitness sector, it is getting more
important for Plus Fitness to review their business and market approaches. Currently, Plus
Fitness is offering different functional classes and affordable personal training programs.
This report will discuss about current mission of Plus Fitness and how they can be
improved. In addition, situational analysis will be done for Plus Fitness to identify the key areas
of improvement based on which, the marketing mix elements will be discussed. Market analysis
will be done on the basis of segmentation, targeting and positioning strategies. On the basis of
the identified factors, marketing mix elements will be discussed for Plus Fitness.
Determination of the organizational mission
It is identified that the current organizational mission of Plus Fitness is about offering
affordable fitness services across different market regions. Accordingly, the services are offered

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in market penetration price point. In this case, it is recommended that Plus Fitness should also
offer higher service diversity in their business. This will help them to cater to higher customer
sections in their existing markets. Thus, the market penetration and presence both will get
increased for Plus Fitness.
Situation analysis
With the help of the situational analysis, major business factors for Plus Fitness will get
identified and in this case, 5 C analyses will be used. Each of the elements of 5 C analysis will be
effective in determining the major external factors. The following section will discuss about
these factors.
Company
It is identified that visionary approach of Plus Fitness is about gaining the market
leadership status in the fitness sector and gain the maximum market share. This vision statement
of Plus Fitness is meeting their long term goal and objective but is not leveraging on the market
development and market penetration. This is due to the reason that market development and
market penetration and product development can be effective in increasing the major market
share. In this case, the service diversity should get enhanced along with the business expansion
in newer regions and countries (Johansson and Andreasson 2016). Thus, the recommended
strategies should focused more towards the business growth approach. In terms of business
strategies, it is identified that Plus Fitness is following vertical growth strategies in their
business. This is due to the reason that leveraging on the growth strategies; Plus Fitness is being
able to have to increase their presence across Oceania and Asian region (Bernal-Garcia et al.
2014). In terms of the business strategies, cost leadership is also being followed by Plus Fitness

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due to the reason that they are offering affordable services to the customers. The affordable
services are being designed on the basis of the pricing level of their competitors. Thus, Plus
Fitness is aiming at gaining the major market share with help of competitive pricing. Business
growth strategy is only relevant in the business operation of Plus Fitness.
In terms of the organizational capabilities, Plus Fitness is operating in more than 200
locations in their existing markets. Major portion of these centers are located in the tier I
locations, which denotes the business capabilities of Plus Fitness. In addition, the assets being
maintained by them across all their facilities and the various services offered are also denoting
the capabilities of Plus Fitness in gaining the leadership position. However, it should be noted
that each of the facilities of Plus Fitness is based on the franchise process and thus they are
lacking the direct control over the service process (García-Fernández et al. 2018). This is a major
challenge in managing the uniform standard of service quality. This can be considered as a key
problem for Plus Fitness because the major players in this sector are managing standardized
service quality and approach.
Customers
As of now, the target segment of Plus Fitness is between the age group of 18 and 30
including both male and female. This age group is more acceptable towards the fitness regime
and is more attracted towards active lifestyle. The core behavioral aspect of the target customers
of the Plus Fitness is to avail convenient and affordable gym services. Thus, both the quality and
affordability are being preferred by the target customers of Plus Fitness. According to the latest
reports, Australian fitness industry is projected to grow to $2.4 billion by 2024 (Bennie et al.
2016). This denotes the growing trend of this industry and market opportunity for Plus Fitness.

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In addition, this should be noted that Plus Fitness is offering 24*7 services across all their gyms,
which is further creating customer sentiments towards them. The subscription bases service is
also ensuring the business viability and seamless flow of revenue for Plus Fitness. However, it
should be noted that increasing opportunities in this sector is only attracting the new entrants and
the competitive rivalry for Plus Fitness will get increased.
Competitors
There are the numbers of competitors operating in the fitness sector in Australia and thus
the competitive rivalry for Plus Fitness is also more. The points of difference between Plus
Fitness and their major competitors are low because most of them are offering same level
services. For instance, both Plus Fitness and their competitors are offering 24*7 gym services.
The equipments being used in the gyms are also standardized and hence it is difficult to attract
new sets of customers. There are few areas identified where Plus Fitness is trailing behind their
close competitors (Bennie et al. 2018). One of these major areas is the market presence. This is
due to the reason that even though Plus Fitness is having more than 200 locations in their
existing markets but some of their competitors are having more locations and facilities. Thus, the
customer segments getting tapped are less for Plus Fitness compared to their competitors. In
addition, it should be noted that as of now, Plus Fitness is having their operations only in
Australia, New Zealand and a few Asian countries. However, on the other hand, some of the
leading competitors for Plus Fitness are truly global and having their presence across the world.
The major advantage of Plus Fitness over their competitors is the cost advantage (Padmasekara
2014). This is due to the reason that cost affordability of Plus Fitness in terms of their service is
more compared to their close competitors, which is effective in targeting the larger customer
segments.

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Collaborators
The business model of Plus Fitness is not having higher involvement of the suppliers or
distributers or retailers as they are engaging directly with the end customers. However, as
discussed in the above section, each of the facilities of Plus Fitness is being driven by the
franchisee and thus they can be considered as partners (Altinay et al. 2014). The major advantage
for Plus Fitness in this case is the lack of liability and responsibility for Plus Fitness as they are
delegated. However, the dependence on the external factors is more for Plus Fitness.
Climate
Determination of the external businesses for Plus Fitness will be done on the basis of
PEST analysis.
Political factors  Political factors are favorable for Plus Fitness because of the stable
political systems in their existing countries
 Pro business approach of the Australian government in attracting
private investments is also beneficial for further investments of
Plus Fitness
Economical
factors
 Average economy is growing that further increasing the business
opportunity of Plus Fitness
 Offering affordable services are also benefiting Plus Fitness in
gaining the maximum economical outcome from the market
Social factors  Social preferences and awareness towards the fitness and active
lifestyle is increasing

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 Fitness and active lifestyle is accepted in the mainstream social
practices
Technological
factors
 Investment in the technological advancements is increasing
because of advanced equipments involved
 Technological investment will help in increasing customer
attractiveness but increasing cost of operation
Market analysis and strategies
There are number of factors identified from the above analysis that can determine the
business operation of Plus Fitness. This, it is important for them to review their existing
segmentation and other marketing elements. The following sections will discuss about the
recommended segmentation, targeting and positioning approach of Plus Fitness.
Market segmentation
Demographic variables In terms of the age groups, customers below the age group of 18 and
above the age group of 30 can also be targeted. This is due to the
reason that fitness services for the early teenagers can also be offered
by Plus Fitness, which is also an emerging trend. On the other hand,
customers are becoming more health conscious and age groups above
30 are also taking up gym sessions. Hence, there are huge
potentialities waiting for Plus Fitness (Sandy, Gosling and Durant
2013).

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In terms of price levels, middle income and upper middle income
customers should be targeted because of the flexible pricing of Plus
Fitness. Targeting the middle income groups will also create the
attractiveness among the teenagers.
Geographic variables In terms of the geographic locations, it is recommended that tire II
cities should also be targeted. This is due to the reason that fitness
awareness is significantly growing among the customers from semi
urban areas as well among the urban areas. The more will be the
market penetration among the semi urban and tier II regions, the more
will be the targeted customer segments for Plus Fitness and increase
in sales revenue.
Behavioral variables Customers with having long term plan of fitness activity will be
targeted. This is due to the reason that they will stay loyal to the
brand and will ensure emergence of word of mouth. In addition,
customers seeking affordable services are already being targeted but
the customers seeking to have the most advanced infrastructure
should also be targeted.
Psychographic
variables
In terms of the psychographic variables, customers preferring
activities lifestyles are already being targeted and it should be
continued. In addition, customers having low awareness about the
fitness can also be targeted by engaging with them.
Targeting strategies

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It is recommended that Plus Fitness should promote differentiation strategy apart from
the cost leadership approach. This is due to the reason that initiating only the cost leadership
strategy will not increase the profit margin. It will only the increase the market share and
volume. In this case, Plus Fitness will follow service differentiation strategy in terms of their
service elements. For instance, the customers can be targeted by means of distinctive payment
process and subscription process compared to their competitors. Moreover, personalized services
can also be offered to the customers according to the individual needs. This can ensure that the
positioning of Plus Fitness will be distinctive compared to their competitors and larger customer
segments can be targeted. Market focus strategy can also be effective in targeting the customers
but it should be according to the specific target customers. For example, the service expectations
of the sportspersons and common professionals from gym will be different and thus they should
be focused on the basis of their services expectations and accordingly the service elements
should be designed (Koran et al. 2013). If the services can be offered according to the specific
needs, then the probability of gaining the maximum will be high. In this case, it is recommended
that Plus Fitness should have different services for different customer segments.
Positioning strategy
It is recommended that positioning strategy of Plus Fitness should be on the basis of
service process. This is due to the reason that service process will be used as the key
differentiating factor for Plus Fitness. The added facilities to be gained by the customers from
availing the services of Plus Fitness will be leveraged in positioning in the market. Furthermore,
it is also recommended that the services of Plus Fitness should also be positioned on the basis of
price because existing cost leadership approach will be carried forwarded (Urde and Koch 2014).
Positioning on the basis of price points will help Plus Fitness to communicate the value for

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High price
Low price
Low quality High quality
Plus Fitness
Jetts
Anytime
Fitness first
money propositions to the customers. Lastly, the positioning strategy of Plus Fitness should also
be based on the competitors in order to ensure the unique and distinctive positioning in the
market. This approach will help to ensure that the positioning elements of Plus Fitness will be
different to that of their competitors.
The above positioning map denotes the recommended market position of Plus Fitness
among the competition. It is placed at a strategic location with the perfect balance of quality and
price. It is shown that Jetts are the closest competitor for Plus Fitness in terms of market placing
but they are charging premium over the later. On the other hand, the other competitors of Plus
Fitness are competing at the lower level of the market. Hence, it can be concluded that the above
recommended strategy will ensure the unique positioning of Plus Fitness in the market.

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Tactical plans
The tactical plans in achieving the above identified approaches will be discussed and
these will be based on the four Ps of marketing. Each of the marketing elements will be
discussed in the following section.
Product
The service portfolio of Plus Fitness should be made more diverse in terms of added level
rather than the core level. This is due to the reason that core service level of Plus Fitness will be
similar to that of their competitors but the distinctiveness will be gained from the added service
levels. For instance, the subscription plans for the customers should be made diverse to attract
the different customer segments. The fitness training program should also be customized
according to the requirements of the customers. Sportspersons and hardcore fitness addicts
should have more intense workout service process while a more moderate form will be offered to
the mass market customers. This will also increase the attractiveness of the services of Plus
Fitness among different customer segments. Physical evidence such an ambience, color and
service delivery process should be made uniform across all their facilities. This will ensure the
higher level of relatedness between the brand and the customers. The identity will be more with
the management of uniform approach across all the facilities. The training process for all the
employees working under the franchisees should also be made uniform to maintain the highest
quality standards.
Price
As of now, Plus Fitness is following market penetration pricing strategy in line to their
cost leadership strategy. However, it is recommended that they should follow a hybrid pricing

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strategy involving different pricing concepts. It is suggested that price skimming strategy should
be followed along with the present market penetration strategy. The new services to be
introduced in the market should be charged at premium, which will create exclusive positioning
in the market. The price point should be maintained as per the service life cycle. Hence, it will
come down and will cater to larger customer segments. The major advantage that will be gained
by Plus Fitness from this strategy will be gaining maximum revenue from the initial stage of the
new service introduction and gradually targeting the entire segments. In addition, it is also
recommended that pricing strategy should be different for different services. For example, the
pricing for intense training program for the professional fitness addicts will be high compared to
the mainstream services. Thus, it can be concluded that involvement of different pricing strategy
will help to gain the maximum from the market.
Promotion
In terms of promotion, it is suggested that Plus Fitness should promote Omni Channel
mediums in order to have the maximum market reach. Plus Fitness is already operating in
different regions and as per their planning; these regions will get increased in the coming years.
Hence, different promotional mediums will be used according to their respective market
presences. Under the Omni Chanel promotional strategy, online mediums will include social
media, Google AdWords and online banner. With the help of the social media, engagement
between the customers and Plus Fitness will get increased and essential feedback can be gained.
On the other hand, offline mediums will include print and electronic channels. These mediums
will gain more market penetration majorly among the tier II and semi urban regions. The
objective of targeting larger customer segments can be fulfilled by extensive awareness drive
involving the maximum channels available.

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Place
Plus Fitness is recommended to have exclusive distribution strategy besides their existing
franchise model. This is due to the reason that as of now, the forward integration process of Plus
Fitness is majorly depended on the extern la partners, which should be reduced. Thus, with the
help of the exclusive distribution strategy, Plus Fitness can have more centers under their direct
control and service quality can be maintained. The services of Plus Fitness will be based only on
the offline channels because fitness services cannot be provided by online channels.
Conclusion
This report concludes that there are number of areas of improvement identified for Plus
Fitness. These areas are identified on the basis of 5C analysis. In addition, the segmentation,
targeting and positioning strategy is also discussed for Plus Fitness to ensure their business
growth and expansion. The four Ps of marketing mix are also discussed as the recommendations.
It is expected that the proper and effective implementation of the marketing mix elements can be
beneficial for Plus Fitness in gaining the long term business viability.

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