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Market Position Analysis for Planet Fitness

Ysidro Vasquez

Argosy University

September 13, 2018

Market Position Analysis for Planet Fitness

Introduction

Planet Fitness is a limited liability company and franchise which deals with the provision of fitness amenities across the USA. The company is aimed towards ensuring that there is a provision of comfortable, hygienic, and judgment-free places for each and every individual who wishes to pursue an active and healthy lifestyle through engaging in physical exercise. The fitness industry, as well as the concept of well-developed bodies, can be traced back to what used to be referred to as physical culture in the late19th century (Andreasson & Johansson, 2014). In the past decades, there have been a significant revolution and development in the fitness industry. According to the International Health, Racquet and Sports Club Association (IHRSA) (2015), in 2012, an estimated more than 75 billion dollars was generated in the form of revenue by the various health and fitness companies around the globe. Currently, the primary focus for gyms is centered on the general changes from a male-dominated perspective of bodybuilding and muscles development to a more gender-inclusive approach.

The number of individuals suffering from obesity and other lifestyle disorders in the US has been considerably increasing with time (Sassatelli, 2010). Consequently, there has been an increased demand for gyms to help reduce the incidents of obesity (Malley, 2014). Working out has also become an important activity which is recommended by health practitioners as it helps in shaping and burning off excessive fats from the body (Dogan, 2015). As a result, planet fitness center in Durham was meant to provide fitness services to the growing health-oriented clients around Durham in North Carolina. The gym has been relying on the provision of affordable services as the primary marketing strategy. According to the interviewed employee, the affordable pricing strategy has significantly helped the store in achieving its objectives.

Competitive analysis

Some of the most significant competitors of Planet Fitness gyms include the LA Fitness, Anytime fitness and Curves fitness which are much older in the industry. The three main competitors have thousands of locations spread across the entire world giving them a competitive advantage in terms of client base. However, the planet fitness competitive advantage is based on the company’s ability to provide its clients with affordable prices and an intimidation-free environment. As a result, Planet Fitness has managed to become the fitness center of choice for most residents. This includes individuals who could not afford the expensive gym services offered by other companies as well as the elderly persons who prefer an intimidation-free environment.

The Planet fitness has also managed to become a fitness center of choice for most women who are interested in aerobics, yoga, fitness dancing, as well as lightweight lifting exercise. Women are usually sensitive while choosing their preferred fitness center. Most women usually prefer intimidation-free environment; an environment exclusively offered by planet fitness. The short-term membership plan offered by Planet Fitness has helped many clients to join the gym services. The company's competitive advantage will be long-term sustainable since the company has already established its name as the gym of choice for individuals who are in need of an affordable intimidation-free environment to work out. To identify the sustainability of the company's competitive environment, a SWOT analysis of the company was conducted through the interview whereby some of the Strengths, Weaknesses, Opportunity, and Threats were identified.

Strength

Planet Fitness gym is known to provide its clients with an intimidation-free environment, a quality which is offered by very few gyms around the country. The fitness centre is also known to attract and provide the best training environment for beginners and sporadic gym users who would feel out of place in other gym settings. Furthermore, the fitness company is known to offer the most affordable rates in the industry with a membership fee which goes to as low as 10 dollars a month. This pricing strategy has been helpful in attracting many people who have never been able to afford any form of a gym membership plan.

Weaknesses

Other companies provide saunas, pools, and group fitness classes while on the other hand Planet Fitness is known to offer only a few amenities of this kind including the tanning procedures, massage chairs and hydro massage facilities. Nevertheless, these facilities are only available at selected locations including the older branches at an extra cost.

Opportunities

The intimidation-free atmosphere and the availability of quality equipment make Planet Fitness an ideal workout place for most senior citizens as well as other self-conscious individuals. The gym is also known to offer an unsurpassed quality health training classes which center on flexibility and mobility training such as step aerobics and yoga. The availability of such classes has helped the gym in attracting more senior members and women to the gym. Finally, the availability of several schools and colleges around the region has enabled the facility to gain many clients from the younger demographic.

Threat

The possibility of already established fitness companies changing their marketing strategies in detriment to our methods. The Planet Fitness Company has been marketing their products by ensuring an intimidation-free environment for their client. This approach can be easily copied by other fitness service providers in the industry.

References

Andreasson, J., & Johansson, T. (2014). The fitness revolution. Historical transformations in the global gym and fitness culture. Sports science review, 23(3-4), 91-111.

Dogan, C. (2015). Training at the gym, training for life: Creating better versions of the self through exercise. Europe's journal of psychology, 11(3), 442.

IHRSA. (2015). The 2015 International Health, Racquet & Sports Club Association (IHRSA) Global Report. The state of the Health Club Industry. Retrieved from: https://acewebcontent.azureedge.net/assetportfoliodownloads/Industry-trends-2015.pdf

Malley, L. D. (2014). Health, fitness, neoliberalism and niche markets: Does Planet Fitness deliver?. Queen's University (Canada). Retrieved from: https://qspace.library.queensu.ca/bitstream/handle/1974/8621/Malley_Liah_D_201401_MA.pdf

Sassatelli, R. (2010). Fitness Culture.Gyms and the Commercialisation of Discipline and Fun. New York: Palgrave Macmillan.

Appendix 1:

Fitness facilities Competition matrix

	Planet Fitness	LA Fitness	Anytime Fitness	Curves Fitness
Affordable rates	2	1	1	0
Intimidation-free environment	2	0	0	1
Diversified client base	2	2	2	0
Availability of daycare facility	0	1	1	2
Availability of auxiliary amenities	1	2	2	2
Quality	2	2	2	2
Reliability	2	2	1	1
Location	2	2	1	0
Appearance	1	2	2	2
Advertising	1	1	0	1
Image	2	1	1	2
Total attractive score	17	16	13	13

Customer satisfaction with the services offered by Planet fitness and the competitors measured using a scale of 0–2 (0 = need not met, 1 = need partially met, 2 = need fully met).