SWOT Anylisis

Phloat has several strengths internally that make it one of the better flotation therapy places. It is the only flotation therapy gym located in Center City Philadelphia. Competitors can be found in Fishtown and outside city limits. Phloat’s location makes access easier for potential customers. Being the only float therapy gym in Center City, can attract a variety of customers who may become regulars. Moreover, Phloat has a broad market to target as the demographics all differ. Current customers range between 11-85 years of age, all ethnicities, and economic/social groups. Float therapy is also known to aid, and sometimes even cure a variety of mental health issues, such as: anxiety, depression, bipolar, stress, and cancer. Many people who suffer from such illnesses often come in to Phloat to treat themselves because nothing else has worked. Additionally, the price for customers is more affordable than other competitors, $10 cheaper to be exact. For people who can only pay what they have, Phloat offers a “Sliding Scale.” Phloat believes in the wellness of their clients over turning a profit. Furthermore, cost of running Phloat is lower than the standard. Besides the fixed costs of rent and utilities, Phloat only need pay for the upkeep of the tanks. This low overhead is also possible because there are only two rooms, therefore not many employees are needed. This makes Phloat personal and in turn creates a higher satisfaction because long term relationships built. Lastly, Phloat saves a lot of money on advertising. At the beginning, the owner printed about 5,000 flyers for $1,800, which is lower than most startups. Since then, the gym where Phloat is located has advertised for the business on their Info Tvs, free of charge.

Phloat has several concerning weaknesses that we have discovered. First of all, from the demographics aspect, Phloat has no specific target market. Therefore, it is hard to target when we have no specific group customers. Moreover, Phloat’s sliding scale proved problematic. Nearly one quarter of all clients used this form to pay for sessions and that was cutting down the profit. Furthermore, the customers who come to Phloat need to be really open-minded. There are some reasons that may affect consumers’ decision, such as darkness, claustrophobic, and alone with only your thoughts. There is a major challenge for Phloat that Jason really concerned about, which is the janitorial problem. Lots of clean up need to do everyday, such as salts and hairs. It costs lots of human and time resources. Finally, the most important challenge was Phloat’s lack of public awareness and social recognize due to lack of use of the four mass media platforms.

Phloat is presented with a variety of opportunities to help the company be even more successful. First, is the growing industry. Mental health is more widely talked about and accepted than it was in prior years. In addition, media is always looking for quirky trends to relax. This gives flotation therapy a greater chance of awareness and audience expansion. Second, Phloat is located in a gym which offers free advertisements on TVs within the building. Foot traffic of other business in the same location will be exposed to the TV ad, which can generate potential consumers. Third, the location of Phloat is conveniently located in center city of Philadelphia, having access to Septa, train, trolley lines, and New Jersey Transit. This makes it more accessible to New Jersey and Philly suburb residents. Finally, potential advertising opportunities for the firm include: Couples therapy sessions, targeting the immediate population around the location (3-4 block radius), and transitioning one time customers to become repeat visitors.  These can be communicated through different marketing tactics such as flyers, social media, radio and newspaper ads.

    Threat is one of the most important marketing communications that Phloat needs to address in order to avoid the potential loss in the future. One threat comes from other forms of therapy that can substitute in the place of flotation. Other m less intimidating options include: massage, yoga, sauna, or just one on one therapy. In other words, the variety of the substitute therapy products that exist at the current market would grab a large amount of potential customers from Phloat, which is a threat that the Phloat needs to consider. Secondly, the awareness of flotation therapy started with a very small following. In recent years it has gained more momentum. Before people did not know it had even existed as a type of therapy, but now it is becoming more common with exposure in the media. Thirdly, there are competitors in the surrounding Philadelphia Area. Most of them have more funding, bigger locations with multiple roms, and more systematic educational video to show to their customers. Therefore, it is very easy for the competitors to attract more customers and hold a greater amount of market share. Lastly, the media exposure of the competitors is much frequent than the Phloat’s. The competitors actually spend more money on the advertisementing in Google Adwords, Twitter, and papering large therapy events in the area. In other words, the brands of Phloat’s competition have more exposure to potential customers, which is beneficial for them to expand their business.