marketing plan

Introduction

Texas Health Harris Methodist Hospital HEB Fitness Center is located on the hospital campus in Bedford, Texas. It is one of the nine Texas Health Resources’ Hospital owned fitness centers with a clinical whole health focus. Texas Health states that their mission is to “improve the health of the people in the communities we serve” (Resources, 2018). Each fitness center under THR has certified staff with a bachelors or master’s degree in kinesiology, nutrition, or nursing. The HEB fitness center strives to provide a whole health facility with personal training, massage therapy, nutrition education, group exercise classes, NEAT cancer survivor program, LIFESTEPS weight management program, and Cardiac Rehabilitation. The website describes Texas Health Fitness Center HEB as a 13,000 sq. foot facility with more than 40 exercise classes, strength equipment, cardio equipment, free weights/ machines, free education classes, 12 TVs, locker rooms with towel service and toiletries, and a coffee bar lounge. Currently there are 15,000 individual and family memberships. Some members have been attending since it opened 30 years ago in 1987. Member retention may be because every member is treated as a unique individual and greeted as family. Each member receives four free individualized appointments with a fitness specialist upon enrollment and free reprogramming appointments as needed. The fitness specialist is responsible for identifying areas of improvement to help members reach their goals. They provide members with an individualized exercise prescription and guidance to the appropriate expert or class that will help the member. We chose this entity because we have personally invested 5-10 years working for this clinical based fitness center and would like to increase memberships and revenue for our facility.

Vision & Ideology

Texas Health Fitness Center's FRESH AIR vision consists of three major concepts including Affordability, Innovation, and Reliability. (Resources, 2018) Affordability includes providing the top care with focus on cost containment for the community, the hospital, and insurance costs. Texas Health strives to provide the latest and greatest equipment and education making them the most innovative and trustworthy facility to gain maximum results for the money. Finally, Texas Health wants to ensure that their staff is paying attention to detail when caring for members. The reliability of Texas Health's fitness specialists is one of a kind. Consumers receive consistent care and one on one attention to their exercise experience. The Fresh Air initiative has been adopted by the leaders and employees of Texas Health as they strive to improve the health of the community they serve.

Mission/Purpose

The mission of Texas Health Fitness Center is to offer a "More Health Less Club" atmosphere. Members from the community, cardiac rehabilitation patients, hospital employees, and recovering cancer patients are able to improve their health in a caring and family environment. With the guidance of highly educated and CPR/ACLS certified fitness specialists and personal trainers, all members will receive four complimentary assessments and equipment orientations. During the assessment, factors like body fat percentage, girth measurements, basal metabolic rate, lean mass, muscular imbalances, and BMI are addressed to ensure the member is on a healthy path to overall health. The Orientations are designed to create a challenging but beneficial way forward for strength training and cardiovascular endurance exercise. The purpose of Texas Health Fitness Center is "Caring for individuals of the community in which we serve.” (Resources, 2018) All members of the community are invited to join Texas Health and experience a welcoming, un-intimidating, friendly environment to maximize their physical and mental health. 

Product Identification & Position

Hospital fitness centers market to the aging population, consumers interested in improving their health, and employers who are trying to reduce health care costs with prevention (Smith, 1996). Smith also stated that the, “survey showed that members of this age group (55 or older) rated the importance of a clinically trained staff, medical supervision, and hospital affiliation more highly than did members of younger age groups.” Since 1996 hospitals have been emphasizing cost containment by helping the community and their own employees with their health as a preventative method to reduce readmissions and insurance costs for employers. Hospital fitness centers also serve as a continuum of care with wellness programs that other gyms do not offer. At Texas Health HEB Fitness Center NEAT and Lifesteps are programs available for cancer survivors and those seeking behavioral treatment for obesity. The NEAT program is an exercise program for cancer survivors. Research has shown that physical activity benefits cancer survivors physiologically, psychologically, and socially (Sabiston & Brunet, 2011). According to Sabiston’s article, “The evidence suggests physical activity is associated with reduced rates of mortality, improved immune function, improved health-related quality of life, decreased fatigue, improved fitness, maintenance of healthy weight, and bone density, improved physical and psychological indicators of well-being, and that physical activity programs can foster social support and feelings of connectedness” (Sabiston & Brunet, 2011). This is achieved with group exercise classes that promote strength, aerobic activity, and socialization.

Lifesteps is a weight loss and lifestyle behavioral treatment program for obesity. It “helps patients identify cues that trigger inappropriate eating (and activity) and learn new responses to them. Treatment also seeks to reinforce (or reward) the adoption of positive behaviors” (Foster, Makris, & Bailer, 2005). At Texas Health HEB Fitness Center a registered dietician and fitness specialists guide the members through the behavior treatment by setting smart goals, help them identify how to change, advocate small changes at a time, and equip the members with problem-solving tools. Members in these specialized programs also have access to all the equipment, classes, and staff within the fitness center. Other behavioral change programs are limited to primarily counseling. HEB Fitness center strives to provide a whole health approach with education, nutrition, fitness, and stress management through massage & yoga. The fitness center is a resource for community members who are seeking a balanced lifestyle. Competitors like local city recreational centers and senior centers are usually larger, have a cheaper rate, pools, basketball courts, and newer equipment. Other general fitness centers compete with us by attracting a younger population with new equipment, juice bars, and cheap rates, but they also have members in binding contracts that are hard to break. These competitors do not require their staff to have the same education and training requirements as a hospital fitness center. Other popular specialized training programs like cross fit and orange theory have gained popularity, but may one day be labeled as a fad. Texas Health HEB fitness center has a new focus for 2018. They would like to maximize the space available by possibly renting equipment that has a dual purpose and smaller footprint, renovating the gym with new fresh paint colors, and provide functional movement programs to attract a younger population. Changes are difficult for hospital fitness centers because they must be approved by corporate and each facility is different in what they can offer. Baby boomers have been the primary market for many years, but as they are aging out HEB fitness center needs to reach out to the community more. They need to break the assumptions that you must be older, ill, or referred by a doctor to join. Many are just not aware that a fitness center with clinically trained staff is available to the community. It is important that the fitness center receives support from marking at corporate, because they control it.

SWOT Analysis

Through a SWOT analysis the strengths, weaknesses, opportunities, and threats were identified for Texas Health Fitness Center. The strengths of this entity include that is a clinically based fitness center, has professional staff with college degrees, a certified cardiac rehab program, specialized programs for weight loss and cancer survivors (Lifesteps and NEAT), and a safe-friendly environment which helps members choose Texas Health Fitness center for a lifetime of health. Our greatest strength is carrying a patient through a continuum of care into an individualized fitness center membership. For example, a cardiac patient after surgery attends a monitored and supervised cardiac rehab program with caution and restrictions. Midway through the program the patient will be progressed to strength training and gain independence. Upon graduation, the patient becomes a member and is oriented to the facility, their exercise program is expanded, and supervision is always available to assist. We are educating members to feel confident, independent, and safe with their health and fitness.

The weaknesses include limited advertisement opportunities, limited space to grow, out dated facility and equipment, geriatric specific market, and higher membership rates than competitors. Being that we are a hospital based fitness center, we are not a priority in the hospitals yearly budget as an axillary service. However, the hospital is a non-profit organization and requires our facility to continue to provide excellent service to the members of the community. Opportunities for growth include updating the facility and equipment, utilizing space for functional movement training with the use of dual purpose machines, and generating a younger membership population with affordable group personal training. Many gyms have been opened around Texas Health Fitness Center increasing threats with competitive lower prices, newer equipment, and group training which market to a younger population. Texas Health strives to be the best clinical based result driven facility in the area. Building relationships, giving individualized care, and achieving goals will always keep the focus on “More Health, Less Club.” As the focus, market, and fads change one thing that holds strong for Texas Health HEB fitness center is that the people matter the most.

Marketing Goals and Objectives

The overall goal is to make Texas Health HEB Fitness Center relevant, contemporary, and appealing to all populations; in order to increase revenue, member retention, and maintain the vision and ethics of Texas Health Resources. The current market is aging out and the younger consumers are attending more affordable facilities. By updating our facility, getting new equipment, and modernizing group personal training a younger population could be drawn in. "Ultimately, color is the cheapest way to customize; the best way to create a flavorful, visceral, viable product that's competitive," he adds. "But paint is expensive, so it's important to paint it right the first time” (Kemper & Sperber, 2005). Our facility is considering modern colors like grey as the primary back drop with Texas Health Resources’ branding colors (blue and green) to refresh the gym. With the help of Texas Health Resources Corporate marketing team and social media we could increase advertising of all our programs. Corporate controls all external marketing, but there is a need for their support as they have bill boards, pod casts, social media, TV and radio advertising. If we can first improve the facility we can then approach corporate to ask for marketing help. If corporate allows a renovation, we need to consider decorating to meet modern day lifestyles. According to Kemper, "People want to relate to a particular lifestyle. Think traditional, contemporary, cultural creatives or non-married, single with children, traditional family, older-committed, empty nesters, etc. The right colorization allows you to have the same basic floor plan but with 24 different looks. It's just like clothing - each group leans toward different styles, feelings and perceptions, which can be enhanced through color" (Kemper & Sperber, 2005).

Our objective is to promote both our clinical and non-clinical programs to all populations. Cardiac and Vascular Rehab is primarily promoted internally through physician referrals. Lifesteps (behavioral therapy for weight loss) and NEAT (cancer survivor program) have also been marketed by physicians and with internal flyer resources. Massage therapy, nutrition services, personal training, and group exercise are primarily advertised through word of mouth, social media, and signage on the building. After facility updates, the focus is to increase the non-clinical programs’ revenue. Marketing through Facebook is a simple strategy for increasing advertisement. Facebook live videos visually show classes and trainings which can give viewers a real time experience. Facebook ads could reach various populations, along with their friends, and show the diversity of our facility (Fisher, 2012). An advertising budget must be planned for along with appointing a social media team. Research describes Facebook as the powerhouse platform for marketing. Lipsman’s article states that Facebook has 160 million U.S. visitors each month, users are 40-150 times more likely to consume a product if it is visible on their newsfeed, and friends of fans can view the likes (Lipsman, Mudd, Rich, & Bruich, 2012). From the research it advises posting often in order to appear on fan’s newsfeeds where they are most likely to view the information, then post on the profile page, do live video posts, or pay for advertisement. Research also shows that companies like Starbucks, Southwest Airlines, and Bing have used Facebook as their advertising platform and was able to reach out to their fans, friends of fans, and even non-fans (Lipsman, Mudd, Rich, & Bruich, 2012). Also, with new equipment the personal trainers will need to develop a strong group personal training program that gives data based results. This can attract a younger population; yet please the current members which will help member retention. By keeping the focus on meeting member’s needs, Texas Health HEB Fitness Center will remain unlike any other facility all while increasing memberships and revenue.

Marketing Strategies

Primary Target Market

The primary market segments targeted are demographics which include location, age, and gender. So those who work or live within 10 miles of Bedford Texas, age 45-85, and primarily the female population are within the primary market segment. The primary targets marketed to with group personal training and Lifesteps include; the individuals who live or work within a 10 mile radius (demographic) and those who want to lose weight (psychographic). Those who pass through the Bedford area either to reach home or work are more likely to commit to a program that has a convenient location and that is affordable. A common mind set when one joins a gym is they are seeking change. Most everybody wants to improve their physical fitness, body image, and body composition. Since convenience, affordability, and goals for weight loss are so common are primary targets are the individuals within 5-10 miles wanting to lose weight. According to Marchant, people are willing to drive 17 minutes to their gym of choice (Marchant, 2014). This is the main reason; we selected the 10 mile radius as our primary target. Those who are already mentally preparing to make change are easier to target first.

Secondary Target Market

The secondary market segment is psychographics. This includes those who have a mindset that are contemplating changing their lifestyles. The secondary target market includes those who are sedentary, depressed, or fighting obesity and want to change unhealthy behaviors (lifestyle characteristics). Those who are still in the contemplation stage and living an unhealthy lifestyle will be harder to reach, but need to know there is help and support available. Mullins states that, “Learning requires the consumer to use perception- defined as the process of scanning, gathering, assessing, and interpreting information in the environment” (Mullin, 2014). Our advertising should give the consumer all of information they are looking for. Characteristics of the Lifesteps program include setting clear goals, providing treatment that is process oriented, and advocating small changes at a time (Foster, Makris, & Bailer, 2005). In this program a registered dietician, who received comprehensive training, guides members through 16 weeks of behavioral dietary changes and fitness specialists assist with physical exercise training (Bullard, 2018). By marketing these characteristics, people who are timid to commit may feel more confident in joining.

Purchasing and lifestyle characteristics

Lifestyle characteristics of our target market include those who smoke, over eat, and are sedentary. Nutrition and exercise are well known methods of intervention that a physician can recommend to improve the risk factors associated with this demographics’ lifestyle. The population within 10 miles of our facility is considered to be middle class to upper class. Most of the population is retiring in the area and have live on a fixed income. Nevertheless, our goal is to reach out to everyone within 10 miles and of any fitness level. Some may need maintenance, some are ready for a challenge, and others need the foundational education and experts to guide them into the right lifestyle change. Those who are mentally ready and seeking weight loss programs are considered a primary target because they are looking for commitment and are more likely to join our program when advertised. Due to marketing constraints by Texas Health Corporate we will have limitations, but the targeted segments will seek weight loss programs and professional guidance that is affordable. Group personal training is a cost effective way for someone to receive personalized workouts. The population within 10 miles primarily includes people who are retired (on a fixed income) and middle class. Competitors in the area have cheaper memberships, but not the customized group personal training. Group personal training allows a member to pay a monthly charge of $120 which secures them a spot daily with a trainer. They can receive a customized workout every day for a set fee. Group personal training and Lifesteps (behavioral health weight loss program) combined meet the needs of the secondary segment- those wanting to lose weight (psychographics). Texas Health has a vision of increasing the health of our community. Since we have limited resources of marketing, we have to ensure superb results with programs that we offer. One of Texas Health’s profitable programs is group exercise and small group personal training. A study conducted by Jennifer McGrath, group exercise was proven to enhance many aspects of health. The study measured physical function, pain, energy/fatigue, emotional wellbeing, and general health (McGrath j.a., 2011). “All aspects of health increased with the intensity of the group exercise and training. Participants in the study also seemed to be more focused after the workout was completed” (McGrath j.a., 2011). As a fitness center trying to improve the health of our members, we have a responsibility to offer programs that address the multiple aspects of health including physical functions, emotional well-being, and general health. This would also generate a positive social environment to cope with emotional and mental health. Group personal training communications will be distributed through social media (Facebook), flyers to current members, and through marketing events with city leaders.

Lifesteps is a 16 week program that provides education classes and guidance from a registered dietician to address daily habits and behavior changes with nutrition and exercise. The latest data from Lifesteps is motivating and captivating to viewers. When marketing Lifesteps through social media (Facebook), e-mail, and physician referrals we will show the following data. In 2016 there were 12 participants and they had a 7.5% weight change, decreased their BMI from 47.4 to 40, and lost an average of 8.75 pounds of fat per participant. In 2017, among 13 participants on average they each lost 10.02 pounds of fat, decreased 2.55 inches around the waist, and had a 2.24% body fat change (Bullard, 2018).

Marketing Mix Elements

To summarize our marketing mix at Texas Health HEB, there are two primary products to market. Product number one is Group Personal Training. This is a financially smart way for individuals to receive individualized exercise programs daily for a bundled price. The price to purchase a spot for training five days a week is $120 for one month. The plan for promoting this is on in-house flyers with the new program and prices, posting on THHEB’s Facebook page, and purchasing Facebook Ads for $1-$10 a day. The second product is Lifesteps, our behavior change weight management program. The price is $425 for non-fitness center members or $325 for fitness center members. Participants will receive 16 weeks with a registered dietician who will meet one on one with them, as a group weekly for education, access to the gym & group exercise classes, an educational book, assistance from fitness specialists, and weekly body composition testing to track their progress. This product is promoted primarily through flyers, e-mails, and physician referrals.

Implementation

Implementing our promotional strategy includes the use of Facebook and the visual signs on the building. For instance, we will use the Live feed option on Facebook to post live classes, appointments demonstrating exercise techniques, our body composition technology, and nutrition education. The use of Facebook has been proven to be a top marketing promotional strategy that is financially responsible on any budget (Lipsman, Mudd, Rich, & Bruich, 2012). Facebook Ads are another way of marketing for a small fee. According to Tran’s article, “this research defines personalized advertising on Facebook as “the process of advertising in which a retailer develops a customized ad of a product or service on Facebook based on prior customer activities on the Internet” (Tran, 2017). Those who are seeking weight loss, exercise information, workout equipment, or workout clothes would be targeted virtually with a Facebook advertisement from HEB Fitness Center. The research confirms, “That perceived personalization enhances customer responses toward Facebook ads. The authors further explain that this effect is fully attributed to perceived relevance as a mediator. That means if a message is more relevant, the message is perceived more positive” (Tran, 2017). THHEB Fitness Center will budget at minimum $1 up to $10 a day for Facebook Ads to target anyone seeking health, wellness, fitness, or nutrition.

Physically, the fitness center is located up on a hill next to two major highways where they intersect. Individuals driving to and from Dallas and Fort Worth can visibly see the sign on the side of the building. Currently, it says “Texas Health HEB Fitness Center, Open to the Public.” With permission, an interchangeable sign could display upcoming events and deals like group personal training. Email is another tool to reach the employees, local community, and business leaders in the area. Since we are located on the campus of the hospital, many employees use the facility so we make an effort to communicate with them outside of the gym. Making our staff physically available to answer questions or run body composition testing at the hospital keeps us connected. If we can modernize the gyms’ aesthetics with new paint colors, we can attract more members. "Color not only brands our product, but also creates greater value," shares Rogers. "It creates an aesthetic, street appeal where buyer profiles, uniqueness and individuality matter" (Kemper & Sperber, 2005).

The secondary promotional strategy requires fitness center staff members to directly connect with local Physicians and Business leaders who have influence to recommend and refer people to our facility. Physicians, who have credibility and influence, can give patients literature and voice their recommendation for a structured behavioral weight loss program. In Woolford’s study, adolescents who were recommended by physicians to join a weight loss program had greater weight loss results than those who joined for other reasons (Woolford, Sallinen, Clark, IglayReger, & Gordon, 2012). Physicians would be presented the data related to behavioral therapy programs, like Lifesteps. Research on behavioral treatment for obesity has proven to be effective and leads to a 10% initial weight loss (Wadden, Crerand, & Brock, 2005). Research directly related to LIFESTEPS has proven that weight loss for more than 52% of participants was sustainable after 2 years and the lifestyle changes (i.e. eating healthier and exercising) was sustainable for 79% of participants (Fuller, MacArthur, McBean, & Stanton, 1996). This marketing can be done with live education, demonstrations, and handouts at their local offices or at special events. In a 2011 study of 8,000 American and Canadian Ticketmaster users, researchers found that 14 percent were influenced to attend a particular event because of Facebook posts and that 20 percent invited Friends to attend through Facebook posts or Twitter tweets” (Fisher, 2012). Again, through Facebook, live events for Lifesteps and the fitness center will be created for people to attend and invite their friends.

Evaluation and control

Even though personal training can be expensive, gyms usually profit over $100,000 from personal training in one year. The previous year’s financial documents concur that Texas Health profits $40,000 from personal training per year. With the average personal trainer costing $30-$50 an hour, Texas Health is in a desirable range of $40. Since our gym population is mainly retired families, the extra funds to personal train are not always available. Our plan to develop a group personal trainer platform would make training affordable, boast morale of the gym, create partnerships, and expand the vision of health to the community. When we carry out our plan, we will be the only gym in the area with this vision.

We have set an annual goal of $90,000 profit from group personal training. We currently have 30 individuals that continuously personal train throughout the year. By training in group, their time is spent wisely and the fitness center makes more per hour. For instance, if an individual pays $40 per session, we can make times as much if we group train 6 people at the same time. Of course, they will not get as much individual time spent with the trainer, however we are dropping the price for them. Instead of $40 per session, we will offer a $120 per month option that allows them to train Monday through Friday at the same hour of their group. Our goal is to reach 65 people that are interested in cheaper training done with their peers. If we can reach 65 people that personal train for $120 a month, we will make $93,600 within the next year.

Another program open to the community that Texas Health offers is the LifeSteps. LifeSteps allows individuals that seek weight loss the opportunity to assess, track, and change habits in order to achieve maximum health and weight loss. The cost of the program for a member of the fitness center is $325 and $425 for non-members. In 2017 the program profited $4,300 after the cost of the tracking notebooks that were included in the cost (Bullard, 2018). These two programs, when marketed properly, have the potential to result in close to $100,000 in profit in the 2019.

In conclusion, Texas Health HEB Fitness Center offers multiple programs that can reach athletes as well as those seeking clinical assistance. With the help of social media and physician referrals exercise and nutrition will be used as preventative medicine. This can change the lives of the community we serve by preventing progression of disease all while increasing one’s quality of life. To attract these new members, we can change the aesthetics of the facility. “Color reinforces the intention of our projects and urban planning ideas at the neighborhood scale” (Kemper & Sperber, 2005). The overall mission is to stay committed to the community by offering an updated, multifaceted, clinical fitness center in Bedford, Texas. By acting on marketing plan we can reduce our areas of weakness and ideally increase revenue for this non-profit facility. By building on our strengths of clinical care and updating the facility we stay unique when compared to other gyms. With increased advertising Texas Health HEB Fitness Center can continue to provide excellent care for the members of the community that we serve.

References

Bullard, E. (2018, January 1). Texas Health. Retrieved February 18, 2018, from Texas Health HEB Lifesteps: https://www.texashealth.org/heb/services/fitness-center/lifesteps-weight-management-program

Fisher, E. (2012, May 7). Research Shows Social Media Moves Tickets. SSSBJ, 4.

Foster, G. D., Makris, A. P., & Bailer, B. A. (2005). Behavioral treatment of obesity. The American Journal of Clinical Nutrition, 230S-5S.

Fuller, E., MacArthur, G., McBean, L., & Stanton, J. (1996, September/October). LIFESTEPS Versus "Weighing the Options" Criteria. Nutrition Today, 31(5), 198-202.

Kemper, C., & Sperber, B. (2005). Professional Builder, 68-74.

Lipsman, A., Mudd, G., Rich, M., & Bruich, S. (2012). The Power of "Like" How Brands Reach (and Influence) Fans Through Social-Media Marketing. Journal of Advertising Research, 40-52.

Marchant, R. (2014, May 1). Consumers wiill drive 17 minutes to a local business. Retrieved from Bright Local: https://www.brightlocal.com/2014/05/01/local-business-travel-times/

McGrath j.a., O. M. (2011). Group Exercise Mode and Helath- related quality of life among healthy adults. Journal of Advanced Nursing, 67, 491-500.

Mullin, B. H. (2014). Sport Marketing. Champaign, IL: Human Kinetics.

Resources, T. H. (2018, January 1). Texas Health HEB. Retrieved January 25, 2018, from Fitness Center: https://www.texashealth.org/heb/services/fitness-center/

Sabiston, C. M., & Brunet, J. (2011). Reviewing the benefits of physical activity during cancer survivorship. American Journal of Lifestyle Medicine, 6(2), 167-177.

Smith, T. (1996, Jul). Hospitals are using fitness centers to improve health status and lower costs. Health Care Strategic Management, 16-17.

Tran, T. P. (2017). Personalized ads on Facebook: An effective marketing tool for online marketers. Journal of Retailing and Consumer Services, 39, 230-242.

Wadden, T., Crerand, C., & Brock, J. (2005). Behavioral Treatment of Obesity. Psychiatric Clinics of North America, 151-170.

Woolford, S., Sallinen, B., Clark, S., IglayReger, H., & Gordon, P. (2012). Association Between Physician Recommendation for Adolescents to Join a Weight Loss Program and BMI Change. Journal of Primary Care & Community Health, 83-87.