You are here: UK Essays » Essays » Marketing » Personal Training Service

Cookie Information

Privacy Information

Free Essays - Marketing Essays

Personal Training Service

1. Introduction

1.1 The Purpose

The following report is going to illustrate an overall view of how to successfully launch a new personal training service into the Malaysian market by highlighting the important elements of the targeting process, which include market segmentation, market targeting, market positioning, as well as suggesting a suitable pricing strategy for the new service.

1.2 The Market Situation

In order for any product to perform successfully in a particular market, wide research and analysis on that particular target market is needed. Hence, this is where marketing comes in. Marketing is the process of planning and executing the conception of creating, distributing, promoting, and pricing goods, services, as well as ideas in order to establish and maintain relationships that will satisfy customers’ needs and wants (Pride et al. 2006). Having said this, a new potential product could be successfully thrust into the Malaysian market, and that product is a new personal training service.

Since the objective is to launch a new personal training service, it is essential to understand what a service is. A service is an intangible product which is attached with an effort or performance and cannot be possessed physically (Clarke 2000). Thus, the new personal training service is categorized as a consumer service in light of its several distinctive characteristics, including its intangibility, inseparability, perishability, heterogeneity, client-based relationships, and customer contact (Pride et al. 2006). Each of these elements distinguishes a service from a good.

1.3 BMS Personal Training Service

The new personal training service to be introduced is going to be named, “BMS Personal Training”, where “B” stands for “Body”; “M” stands for “Mind”; and “S” stands for “Spirit”. BMS Personal Training seeks to provide in-home-personal training anywhere in the Bandar Sunway area, as well as providing an on-location personal training studio to satisfy customers’ needs and wants. It is designed to help individuals live a healthy life by providing individualized exercise programs personalized to meet the goals and fitness needs of individuals. General programs offered include weight loss and maintenance, back care, specific sports training, aerobic training, strength training, as well as other tailored programs. Importantly, the trainers are highly qualified and experienced to effectively assist customers. Essentially, BMS Personal Training aims to set a new standard for fitness, which brings about the birth of its slogan, “The Beat of Life”.

2. Targeting Process

A market is simply defined as a group of people who have needs for products in the same product class and have the authority, ability, and willingness to purchase those products (Kotler & Armstrong 2005). Thus, in order for BMS Personal Training to be successfully established, it is vital to select the right target market so that an effective marketing mix could be applied (Drew 2006). Hence, the target market selection process for BMS Personal Training will be broken down into several sections as follows.

2.1 Segmentation

By and large, individuals have heterogeneous needs, and thus, diverse product needs. This brings about the process of market segmentation, which is a process of classifying customers from a total market into smaller market groups comprising of individuals who have similar product needs (Tynan & Drayton 1987).

For BMS Personal Training Services, the segmentation variables that have been selected for in depth analysis in order to develop market segment profiles are age, a demographic variable, and region, a geographic variable.

• Age

Age is a useful market segmentation variable as it allows marketers to look at different age groups within a market so that they could identify the different age groups, such as, kids, teenagers, and adults in order to come up with an appropriate marketing mix for the different age groups.

According to the Department of Statistics Malaysia, as of 2007, about 32% of the population is under the age of 15, and the overall population continues to grow at a rate of 2.4% per annum. Kindly refer to Appendix 1 for the population age distribution trends for 2003-2007 in Malaysia.

Based on the population age distribution trends, the largest market is evident to be the age group of 15-64 Years. Therefore, BMS Personal Training should focus its marketing energy particularly on this age group by possibly breaking this age group down to two separate parts: young adults, and adults. In identifying the age group, it enables BMS Personal Training to look at the different needs and wants of its potential customers within that age group.

• Region

Region is a geographic variable which divides markets into different states or territories (Pride et al. 2006). Based on the statistics provided by the Department of Statistics Malaysia, it is proven that the state with the highest population density is Selangor with 527 potential customers per square kilometer. Kindly refer to Appendix 2 to see a complete overview of the population density in each state of Malaysia.

Based on the data provided by the Department of Statistics Malaysia, it is reasonable that BMS Personal Training does further market analysis in Selangor because the larger the population density, the bigger the opportunity to attract potential customers, as well as expand business services.

2.2 Target Market

Having identified the potential market segments for BMS Personal Training, the following step is to thoroughly examine and evaluate the possible market segments so as to decide which particular market the focus should be on. In doing so, two specific target markets have been selected: “college students” and “adults age 40 and above” in Bandar Sunway, Selangor.

These two markets have been selected because of several reasons. Firstly, the population density for the age group of 15-64 years is the largest, which would therefore offer more market opportunities, as well as, a bigger market share. Secondly, BMS Personal Training targets college students specifically because of the overwhelming number of students from SMK Bandar Sunway, Monash University Malaysia Campus, and Sunway University College (Loh 2006). Thirdly, BMS Personal Training decides to reach the “adults age 40 and above” market because of the changing lifestyle and the increasing concerns for health (New Straits Times Malaysia 2006). Plus, BMS Personal Training aims to introduce a new in-home personal training system to adults who do not feel comfortable at a gym. This new introduction could very well set a new trend, as well as, capture a big market share. Hence, based on these reasons, BMS Personal Training will focus its marketing energy particularly on these two target markets by using a differentiated strategy, which is a strategy of developing a different marketing mix for each different market (Pride et al. 2006).

• Differentiated Strategy: Different Products for Different Markets

For the market segment of college students who are generally young adults, BMS Personal Training focuses on providing on location training services at its own gym for easy access. BMS personal trainers will assist in fitness activities ranging from sports training, to teen fitness maintenance, group exercising, body-building programs, fitness and diet programs and so forth. In-home training is also available upon requests.

As for the market segment of adults age 40 and above, BMS Personal Training emphasizes on direct in-home personal training. The fundamental purpose of providing such service to adults age 40 and above is because some do not feel comfortable in a big gym, or are busy people who need the convenience of a trainer coming to them. Consequently, for the most convenient outcome of the customers, a BMS Personal Training personal trainer will be available anytime and anywhere in the Bandar Sunway area. Moreover, the personal trainers make the workout session as easy and comfortable as possible by bringing whatever is necessary to give the clients a good workout, such as stretch cords, stability balls, adjustable dumbbells, and other portable gear. Interestingly, a wide range of exercising activities is available from weight management programs, to healthcare consultations, and other fitness exercises.

2.3 Positioning

Market positioning refers to the process by which marketers create an image in the minds of their customers for its products or brands. It is the perception that the target market segments have of a particular product in relation to their perceptions of competing products in the same category (Kotler & Armstrong 2005). Therefore, it is essential to analyze BMS Personal Training’s current competitions so that BMS Personal Training can differentiate itself and position itself well in the minds of consumers.

• Competitive Assessment

Competitive assessment is the process of assessing the strengths, weaknesses, as well as operations of competitors already operating in the segments being considered (Chen & Sha 2007). Hence, in the case of BMS Personal Training, the main competitor at the moment is California Fitness.

California Fitness is an already established venture in the fitness industry. It is operating in Hong Kong, Singapore, Taipei, Taiwan, and Malaysia. Particularly in Malaysia, California Fitness presently has three fitness centers: one located at Mid Valley Megamall in Mid Valley City, one more at Menara Standard Chartered in Kuala Lumpur, and another one at Sunway Pyramid Shopping Mall in Bandar Sunway (California Fitness 2007). Thus, BMS Personal Training would have to compete head to head with Calfornia Fitness in Bandar Sunway.

After in depth assessment of California Fitness’ business operation, several strength and weakness points have been identified. California Fitness has an edge for the fact that it is an established brand because it has been in the fitness industry since 1996. Another strength is the celebrity image of Jackie Chan which they use to attract new customers. On the downside, California Fitness may hold new potential customers back because of their one year contract policy. Another notable weakness of California Fitness would be the slightly heavy fee charge (Byeow 2006).

• Uniqueness of BMS Personal Training: A Family Vibe

BMS Personal Training aims to differentiate itself from California Fitness by emphasizing on customer contact and client-based relationships. The image that BMS Personal Training tries to project into the market is customer care and the importance of friendly relationships with every single client by focusing on the three elements of inner peace and happiness of life: body, mind, and spirit. As for the on location training studio, in addition to providing state-of-the-art cardio entertainment zones, a wide range of workout accessories, and a huge selection of body exercising equipments, the gymnasium is patterned with audio visual formats ensured to keep the setting pleasant and refreshing. Furthermore, large exercise studios are offered, convenient changing rooms with steam and sauna facilities, a library with free rental of fitness and health VCD/DVD, and a member lounge with complimentary magazines, newspapers, and drinks. Wonderfully, BMS Personal Training is already moving in a different and unique direction than that of California Fitness by offering in-home personal training. The focus is again on customers. Instead of making customers figure out their best workout routine themselves, BMS Personal Training trainers work passionately with clients to design the best suitable exercise programs to fulfill clients’ needs and objectives. Unlike other workout programs, BMS Personal Training makes the workout activities safe and fun by leaving the clients feeling exhilarated, and not exhausted. Moreover, BMS Personal Training does not have a long-term contract policy. Every client is welcomed warmly and will feel the family vibe as exercising becomes an enjoyable daily routine for better health, greater fitness, and higher motivation in life.

2.4 Pricing

After developing the product, pricing is another important element to consider before putting the product out in the marketplace because the success or failure rate of the product could solely depend on price (Deans & Watanabe 2006). Before arriving at a pricing decision, however, many internal and external factors need to be considered, such as organizational and marketing objectives, costs, other marketing mix variables, competition, legal and regulatory issues, and customer interpretation and response. As for BMS Personal Training, a different pricing strategy would be adopted for each target market.

• The Market for College Students

For the younger market (college students), BMS Personal Training would engage in price competition with California Fitness. In doing so, BMS Personal Training emphasizes on making its price lower and more affordable for students than that of California Fitness. California Fitness provides different membership packages, such as, Platinum Plus, which allows its members to access all of its three fitness clubs (California Fitness 2007). BMS Personal Training, on the other hand, only offers one simple membership package. The table below demonstrates how BMS Personal Training is going to price its service relatively cheaper as compared to California Fitness.

• The Market for Adults Age 40 and Above

For the older market (adults age 40 and above), BMS Personal Training would take on a non-price competition by distinguishing its services from competitors on the basis of uniqueness and quality. The in-home training service is designed in such a way that would build a good and trustworthy relationship with the clients while providing fitness programs tailored to satisfy clients’ needs, ensuring progress and happiness without exhaustion. In doing so, customer loyalty is encouraged which would then propel clients to not be easily lured away by competitors because they prefer BMS Personal Training’s quality service rather than a lower price. For the in-home training services, BMS Personal Training charges approximately RM 150 per session, but the price may vary depending on the customer’s number of exercising hours and workout schedule. In the case that a client wishes to exercise at BMS Personal Training’s own gymnasium, the client may join the platinum package as listed in the table above.

3. Conclusion

In conclusion, it is evident that introducing a new product into the market is a complex and risky subject matter which requires extensive research and thorough analysis before deciding on the appropriate product to project into the market. Once clear understanding of the market has been achieved, only then, the development of bringing the product to life can be effectively and efficiently established. In the case of BMS Personal Training, it has been understood that the relevant and most suitable target markets to launch such a service are young adults, who are mainly college students, and adults age 40 and above. Observing the marketing activities of California Fitness is crucial for BMS Personal Training. And providing a distinctive service with reasonable pricing should keep BMS Personal Training running smoothly.

4. Recommendations

A personal training service such as BMS Personal Training has such a broad appeal. Even though it has been decided to only target two specific market segments, it should not be exactly limited to these two markets because not only college students and adults age 40 and above have the eligibility to make use of this service. Everybody has the accessibility to join BMS Personal Training no matter what occupations they have as long as they are 16 years old. Therefore, BMS Personal Training has the capacity to gain and increase its market share, and should thus, be designed in a personalized approach which works well with everyone - whatever their age or exercise background. Furthermore, maintaining service quality is an important key factor in order to be perceived well by consumers, remain strong in the fitness industry and live up to BMS Personal Training’s promise, which is to put customer care first, as well as maintain good client-based relationships and customer contact.

References

• Byeow, M 2006, California Fitness Membership Packages, viewed 20 August 2007, <http://www.boredworkers.com/2005/11/14/california-fitness-membership-packages/>.
• California Fitness 2007, About Us, viewed 21 August 2007, <http://www.californiafitness.com/aboutus.jsp?lang=en&country=my>.
• Chen, YH & Sha, DY 2007, ‘Managing product and customer knowledge in innovative new product development’, International Journal of Technology Management, vol. 39, no. 2, pp. 105-130.
• Clarke, G 2000, Marketing a Service For Profit: A Practical Guide to Key Service Marketing Concepts, Kogan Page, London.
• Deans, GK & Watanabe, S 2005, ‘Pricing for Growths and Profits’, Ivey Business Journal, vol. 70, no. 1, pp. 1-9.
• Department of Statistics Malaysia 2007, Key Statistics, viewed 20 August 2007, <http://statistics.gov.my/english/frameset_keystats.php>.
• Drew, JL 2006, ‘Target Markets – a must!’, Westchester County Business Journal, vol. 45, no. 46, p. 12.
• Kotler, P & Armstrong G 2005, Principles of Marketing, 11^th edn, Prentice Hall, Sydney.
• Loh, F 2006, ‘Crisis in Malaysia’s Public Universitites?’, Aliran Monthly, 07 March, p. 2.
• Lovelock, C, Patterson, P, Walker, Rhett 2004, Services Marketing: An Asia-Pacific and Australian Perspective, 3edn, Pearson Prentice Hall, Sydney.
• Lovelock, C, Wirtz, J, Keh, HT 2002, Services Marketing in Asia, Prentice Hall, Sydney.
• New Straits Times Malaysia 2006, ‘Keeping Fit Malaysian Style’, 02 November, p. 12.
• Pride, WM, Ferrell, OC, Elliott, G, Thiele, SR, Waller, D, Paladino, A 2006, Marketing: Core Concepts & Applications Asia-Pacific Edition, Wiley, Melbourne.
• Tynan, AC & Drayton, J 1987, ‘Market Segmentation’, Journal of Marketing Management, vol. 2, no. 3, pp. 301-335.
• Byeow, M 2006, California Fitness Membership Packages, viewed 20 August 2007, < http://www.boredworkers.com/2005/11/14/california-fitness-membership-packages/>.
• California Fitness 2007, About Us, viewed 21 August 2007, < http://www.californiafitness.com/aboutus.jsp?lang=en&country=my>.
• Chen, YH & Sha, DY 2007, ‘Managing product and customer knowledge in innovative new product development’, International Journal of Technology Management, vol. 39, no. 2, pp. 105-130.
• Clarke, G 2000, Marketing a Service For Profit: A Practical Guide to Key Service Marketing Concepts, Kogan Page, London.
• Deans, GK & Watanabe, S 2005, ‘Pricing for Growths and Profits’, Ivey Business Journal, vol. 70, no. 1, pp. 1-9.
• Department of Statistics Malaysia 2007, Key Statistics, viewed 20 August 2007,
• <http://statistics.gov.my/english/frameset_keystats.php>.
• Drew, JL 2006, ‘Target Markets – a must!’, Westchester County Business Journal, vol. 45, no. 46, p. 12.
• Kotler, P & Armstrong G 2005, Principles of Marketing, 11^th edn, Prentice Hall, Sydney.
• Loh, F 2006, ‘Crisis in Malaysia’s Public Universitites?’, Aliran Monthly, 07 March, p. 2.
• New Straits Times Malaysia 2006, ‘Keeping Fit Malaysian Style’, 02 November, p. 12.
• Pride, WM, Ferrell, OC, Elliott, G, Thiele, SR, Waller, D, Paladino, A 2006, Marketing: Core Concepts & Applications Asia-Pacific Edition, Wiley, Melbourne.
• Tynan, AC & Drayton, J 1987, ‘Market Segmentation’, Journal of Marketing Management, vol. 2, no. 3, pp. 301-335.

Sign up and be the first to receive our latest offers: