MBA576 Week 3 Peer Responses

UNIT 3: Millennials 5

Millennials

Park University

MBA 576: Operations Management

Erika Smith

Abstract

“Millennials were the largest generation group in the U.S. in 2019, with an estimated population of 72.1 million. Born between 1981 and 1996, Millennials recently surpassed Baby Boomers as the biggest group, and they will continue to be a major part of the population for many years. However, the group already makes up around 20.35 percent of the U.S. population, and they are said to be the most racially and ethnically diverse of all the generation groups.” (Published by Statista Research Department, 2021) For this paper, our role as an independent consultant was to research a company or industry that is modifying its operations to attract Millennials. We have to create an impact study and recommendation paper. The company I choose to look at was Beach body. We will review how Millennials impact the company, how the organization should be trying to go after the millennial market, and the risks we can identify.

Influence on the Market

With millennials coming into the market, the organizations that will do well are those that reorganize and reprioritize their goals. They will need to make changes that will offer more sustainability, affordability, and flexibility in their products and services. The organization will also need to stay on top of new technology and connect more with the customer.

Beach body was founded by Jon Congdon, 49, and Chief Executive Officer Carl Daikeler, 48, in Santa Monica, California, in 1998. They had their first hit in 2005 with Power 90 Extreme, or P90X, a cross-training workout combining several disciplines, including resistance training and kickboxing. With Millennials representing 35% of all health club memberships in the US, the single largest generational. Offering flexibility and sustainability is essential in the fitness industry. Beach body has expanded its organization from DVD and in-person classes at gyms to providing an online platform, “Beachbody on demand.” Where you can stream a wide variety of courses such as Power 90, P90X, P90x2, Slim in 6, Insanity, Turbo Jam, Hip Hop Abs, Brazil Butt Lift, and supplements like Shakeology, by going to a steaming plate form, they can offer their services 24/7, giving the millennials the freedom to choose when and where they want to work out. Furthermore, “Millennials are also most likely to subscribe to an online fitness service, with more than one-third of millennial consumers subscribing to at least one online workout service or product.”

Technology has provided the tools for Millennials to engage with the organization. Beach body has offered a way for Millennials to engage with the brand by providing coaching online. You can get one-on-one support and guidance or join a group for motivation and connection with others. The coaches on the website are supportive and motivating. They keep you thoroughly engaged in the workout or program. This program also will track your progress.

Risks and Recommendation

Millennials are quick to discern what is "fake" from what is "authentic”. If Beach body wants to continue to succeed with the new generations, they need to create meaningful interactions with their customers. They need to sure they are not making empty or fake promises. "Having grown up in the era of "fake news." They are quick to spot misdirection and do not respond to hype. Instead, they are looking for brands to be transparent and authentic." (Menlo Security) An area I would recommend for Beach body is to create a platform to engage Millennials for ideas or suggestions and involve them directly in the development of new activities. Invest in learning more about their customers and value their opinions.

Reference

CB Insights. (2021, June 30). Industries that will thrive thanks to Millennials Trends. CB Insights Research. https://www.cbinsights.com/research/report/millennials-industries-thriving/.

Menlo Security. (n.d.). https://safe.menlosecurity.com/doc/docview/viewer/docN91058B273C7C42894d0f32e500a48bb8bf9cfef4f6736ee8bf08a51cb3bfa4c198775b09a529.

Published by Statista Research Department, & 27, J. (2021, July 27). U.S. population by generation 2019. Statista. https://www.statista.com/statistics/797321/us-population-by-generation/.

Stevenson, W. J. (2021). Operations management. New York, NY: McGraw-Hill Education.

Townsend, M. (2012, September 4). Builder of Ryan’s Abs Sees Beachbody Emulating Starbucks. Bloomberg.com. https://www.bloomberg.com/news/articles/2012-08-31/builder-of-ryan-s-abs-sees-beachbody-emulating-starbucks.