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PGBM 15 Dynamics and Trends Within Marketing Environment of Planet Fitness Assessment Answer



This assignment is divided into three sections. You will need to complete all three sections in order to successfully complete the assignment. You will need to achieve an overall mark of 40% in order to successfully complete this module.

Please read all the instructions and information carefully

Mode of Assessment
Individual Report
Issue date

Word Limit
3500 words

Assignment Brief

The health and fitness industry have shown an interesting and versatile trend of adaptation to the recent economic downturn and to the transforming global economy.

Recent statistics show that the number of global health and fitness clubs increased from about 187,000 clubs serving 151 million members in 2015 to 201,000 clubs serving 174 million members in 2017.    Globally more   than   170   million   people   are   members   of a health/fitness club. Some of the prominent players in this industry include LA fitness, First fitness, Life Time, 24 hour fitness, Club Corp, Planet Fitness, F45 and Anytime Fitness. From services marketing to advanced retail and brand management, the fundamental aspects of marketing management govern the way this industry operate and flourish. Recent changes in life style and geo-demographics of the target markets in this industry certainly make it an interesting sector to investigate as part of this assignment.

The task is divided into three sections and candidates are expected to address all of the followings.

Your task is to select a health and fitness company of your choice and then analyse, evaluate and prepare an individual report (3500 words) addressing the following issues:


  • Research, analyse and evaluate the dynamics and trends within the marketing environment of your chosen health and fitness company [30%]
  • Using appropriate sources, discuss the importance of market research, marketing mix and service innovation for your chosen health and fitness company [40%]
  • As a newly appointed marketing manager of your chosen health and fitness company, what marketing techniques will you use to increase competitiveness and sustainability of your company? Your suggestions must be inspired by appropriate theories and real-life/academic case studies.




Aim of the report

Observations have been drawn as per the statistical record that there has been a rapid growth of the health and fitness clubs and this sector over a couple of decades. The successive report would highlight the adaptation made by this sector from the economic downturn at the current stage to getting the economy globally transformed on the ground of changing the target markets. This is to be observed in the succeeding task how these changes of Planet Fitness of United States might give another dimension to the geo-demographic interpretation and the lifestyle of the people living in this region.

Brief profile of the health and fitness company, Planet Fitness

Planet Fitness, is a fitness centre based with its three quarters in Hampton, United States and New Hampshire respectively, with its motto UNITED WE MOVE tends to provide an extraordinary environment with any particular who would reach out to them for any help with respect fitness and health. They believe in promoting and providing the best quality experience of fitness. 

The Monogram of Planet Fitness

Figure 1: The Monogram of Planet Fitness

(Source: Planet Fitness, 2020)

It is also to be noted that the services they provide are affordable so that people can easily visit their fitness centre to try out which one of the offered services works best for them. They have flexible services for their clients including tons of equipment related to strength and cardio, eligible fitness trainers, friendly ambience with comforts and proper hygiene and good supporting staff that could easily take care after the clients.

Analysis of the Health and Fitness Industry

Identifying the sources of competition:

The threat of the new entrant:

Introspecting the development of the fitness industry, threat of a new entrant would not be a threat as such because the entry barriers are comparatively higher. If Planet Fitness is well equipped with expert staffs, skilled manpower and state-of-artfitness instruments, above all these the proximity of the fitness centre stands are utmost important, then it would pose a serious threat against any new entrant from entering the market (Wrightet al., 2017)

Bargaining power of the suppliers:

Fitness industry being booming industry, it is no more monopolistic where the buyer has an upper hand over the supplier. It is pertinent for Planet Fitness to select their suppliers who are historically renowned for quoting exact prices.

 Porter’s Five Forces

Figure 2: Porter’s Five Forces

(Source: Created by the author)

Bargaining power of the buyers:

Planet Fitness might find it difficult as it has been mentioned above in the previous point. Careful consideration should be kept when exercising the bargaining power of Planet Fitness provided the membership does not flow in. 

The threat of the substitutes:

The advent of yoga centres, multi-gyms, aerobic centres, swimming classes is genuine substitutes that might sway away the potential customers from visiting the fitness sector businesses like Planet Fitness.[Refer to Appendix 2]

The competitive environment:

Fitness sectors tend to offer innumerable supporting services that might often include opportunities concerning sport participation.  Fitness tests are considered to be the most supportive services that can be provided by any fitness sector (Thompson, 2017). Studies have been made that the psychographic and demographic variables of Planet Fitness can create a competitive environment for the other fitness industry before making an entry to the said industry.  

Market Environmental Analysis

Understanding the PESTEL factors of Planet Fitness:

Political factors:

Political factors tend to acknowledge an imperative action in picking the sections that can impact the Planet Fitness, which is drawn out of leeway in a specific country or market. Planet Fitnessworks in the wellbeing of the fitness and health division in various regions and opens itself to various sorts of administrative issues and political framework dangers. 

  • The danger of the interference of the military forces 
  • Level of corruption - particularly concerning levels of the rule in the division of the service sector
  • Association and prevention in the industry of the Fitness Activities organized by the government
  • Approved headway assurance 
  • Partners that support in exchanging of goods and products
  • Obligation grouping - charge rates and starts 
  • Pay foundation - the most diminished remuneration permitted by law and extra time

Economic Factors:

The factors related to the macro-environment are especially the rate of inflation, rate of savings, rate of interests, rate of foreign exchange and the cycle of the economy tends to determine the aggregated interest and the aggregated investment of the economy of the region. Planet Fitnesscan utilize the nation's budgetary factor, for example, improvement rate, expansion and industry's money related taxations, and also the progression rate of the fitness industry. 

  • The interference of the government in the free market and the services related to health and fitness
  • Trade rates and the stability concerning the  currency of the host country
  • Foundation quality in the industry that is related to the fitness activity
  • Similar focal reasons for have nation and Services parcel in the specific nation. 
  • Rate of financial progression
  • Rate of unemployment

Social Factors:

The way of leading life and technique for doing things in a society tends to leave an impact on the way of life of a relationship in the particular (Lupton, 2020). Essential sentiments and perspectives of the majority expect an exceptional action in how marketing experts at Planet Fitness will get a handle on the clients of a given market and how they structure the publicising message for Fitness Activities industry buyers. 

  • Financial matters and limit level of the majority 
  • The level of education in society
  • Direction level comparatively as getting ready standard in the Planet Fitness' industry 
  • Also, explicitly the leisure interests

 The figurative structure of the PESTEL analysis of Planet FitnessFigure 3: The figurative structure of the PESTEL analysis of Planet Fitness

(Source: Created by the author)

Technological Factors:

All through the most recent 5 years, the implementation of technology on any business has been changing truly energetic, in no event; it is also offering the opportunity to many unemployed to conform to the changes (Guiet al. 2017). The firm has an exclusive new and modern technological approach of appraisal of the respective business sector yet what is more to the speed of development of technology on the ground of fitness sector tends to shake the industry. Technological implementation oftenleaves a positive impact on the fitness industries which can be studied from the following that might be faced by Planet Fitness:

  • The impact of the technology for the offering of the services
  • The impact on the cost structure of the respective industry
  • Rate of the diffusion of technology
  • The impact on the structure of the value chain of the fitness industry

Environmental Factors:

Almost every markethas various rules and respective measures which might impact the benefit of a relationship in those of the business fragments. Before making an entry, the new sectors or the beginning of another business, the existing business sector deliberately tends to judge the basic measures that are required to work in the respective business sectors. The major environmental factors that the fitness industries must consider before any incident taking place can be read from the followings:

  • The change in weather
  • The climatic change
  • Regulation of laws concerning sexual harassment
  • Waste management in the service sectors

Legal Factors:

Observations have been drawn that in many countries, the legal structure and its basic foundations for the fitness industry are not overpowering enough to ensure the intellectual right of the property of the respective organization. Any fitness firm deliberately assesses before entering into such markets where one can be impelled of theft for fixing the secret of the associationwhich leads to an overall edge of competition of the fitness industry. The legal factors that Planet Fitness must consider before entering into any new market can be read from the followings:

  • Protection of the data
  • Implementation of law for health and safety
  • Law of discrimination
  • Law of employment
  • Anti-trust law in fitness activities

Identifying the opportunities of Planet Fitness:

  • The organic growth of Planet Fitness
  • Including the acquisition
  • Consciousness towards leading a healthy life
  • Including value-added services- personal training, aerobic classes, hygienic food courts, medical staffs.

Identifying the threats of Planet Fitness:

  • Loss in the niche of the power of market
  • Insufficient facilities 
  • Lack of customer loyalty

Measures are taken to minimize the threats observed:


Loss in the niche of the power of market
  • Up-gradation of technology
  • Working on customer feedback
  • Implementation of modern technology
  • Rebranding and expansion
  • Collaborating with models and health-care sectors

Insufficient facilities
  • Invest in new technology
  • Skilful manpower
  • Manoeuvring
  • Introducing regular fitness checkup
  • Keeping a stock of the energy supplements 

Lack of customer loyalty
  • Introducing family discounts 
  • Catering to personal training
  • Introducing a diet-friendly cafeteria

Table 1: The measures that need to be taken by Planet Fitness to overcome the observed threats

Market research, marketing mix and service innovation for Planet Fitness of US

Market segmentation

Unlike any other approaches of marketing segmentation, the key objective of the stated is to cluster clients to meet the respective needs of the customers to permit the organization in tailoring the perfect marketing mix strategy (Thompson, 2018). The market segmentation of Planet Fitness can be studied from the followings:

Developing a friendly relationship with the customers:

Fitness centres can attract and hold this purchaser area by having a described objective grandstand to have an arrangement of movement classes that are fun and energetic and giving some space in the workplace for mixing in with others – possibly with a little refreshment like food court or cafeteria.

Focusing on sports:

Introducing sports activities might attract many customers both adults and youths to join the Planet Fitness. 

Looking into the health requirements:

Customers in this particular industry look for a better health network since they are endeavouring to improve their prosperity, quality, or considering "consumer’s guidelines" (Thompson, 2017). They usually do not acknowledge too much to practice programs, possibly believing it to be an assignment which would bring care over sincerity towards the health requirements. 

Peak Performers:

A downside of this market section is every so often they got a kick out of the opportunity to "own" the activity community and may run certain bits of equipment and may to some degree create an alarm for various customers (Stankiewicz, 2018). These customers are pulled in by versatile opening occasions and a wide choice of apparatus and workplaces. They will when all is said to be the longer term with the customers of Planet Fitness, notwithstanding the way that not for the most part devoted to one outlet.

Taking shape:

The happening as intended tends to exhibit segment includes clients who are on a very basic level enthusiastic about improving the vibe of their body, possibly through lifting loads and weight getting ready, additionally, as kinds of body structure (Polyakova and Mirza, 2016). Typically this part is contained an increasingly energetic fragment, yet has a proportionate mix of folks and females. This market area is enthused about both the workplaces offered – to the extent weight planning gear – and fitting activity classes that help their goals.[Refer to Appendix 1]

The importance of market segmentation:

It looks after the followinggrounds which in turn helps the particular industry to get flourished:

Type of customers:

Segmentation on the type of customer is utilized when an alliance need to influence a specific customer type (Pinto and Yagnik, 2017). Instead of offering the segmentation based on the type of customers to everybody, the fitness industry like Planet Fitness would tailoreverythingin showing strategy to express objective markets. 

The behaviour of the buyer:

Customers will propel the additional undertakings and become powerfully occupied with their buy on the off chance that it is essential to them, particularly in case they have no earlier information on purchasing that specific thing or service. In the case of the fitness industry like Planet fitness, the customers lead is observed as the assessment of how customers buy or use the service provided by the respective centre. 

Geographical segmentation:

Advancing and selling anything related to the Planet Fitness tends a gather the customerfrom the different group which is amasingly tremendous. It is basic that advertisers see the good arrangement of every buyer and sees their necessities by the various territories of markets(Beaucheminet al. 2019). Promoting and selling anything and associating with that of theutilization of the fitness industry tend to gather thestrategies which are incredibly the basic ones. To achieve this objective, a perfect propelling method is huge. Progressing is a wide idea, which incorporates different activities, for instance, taking a gander at the buyer's lead which needs and individual inclinations.

Marketing Mix

An overall discussion of the strategy related to marketing of the Planet Fitness of US can thoroughly be studied from the following tabular structure:


Pricing Variables of Planet Fitness:
  • The price is competitive in the region
  • The services provided by Planet Fitness is relatively low to attract customers
  • Customer price is sensitive as it allows family discounts to attract mass
  • Value pricing 
  • Variety of methods for placing the payment
  • Seasonal discounts on buying energy supplements 
  • Charging legitimate price as per the industry standard 
  • Gift Vouchers and coupons, annual membership discounts, access to a few privileged services should be offered to trade customers, or to any other specific segments of the industry.
  • Niche customers can be an option in which the pricing of the services provided by Planet Fitness be compared to that of its competitors.

Variety of the product variable of Planet Fitness:
  • The breadth of the product line
  • Assortment in accompanying the service of the products
  • The quality of the product provided
  • The supply of renowned and accredited energy supplements 
  • The overall evaluation of the product 
  • Taking minute interpretation of the special features of any new products
The service variable of Planet Fitness:
  • The customer expects a proper fitness regime
  • The service satisfies the self-actualization and self-esteem value of the clients
  • The above needs of the customers can be met only if Planet Fitness have certain features which include: state-of-art technology, modern training equipment, medically sound fitness instructors, dieticians and branded energy supplements. These features customers will use to keep themselves fit and healthy (León-Quismondoet al., 2019).
  • The standardized and customized services of Planet Fitness differentiate it from that of its competitors.
  • The energy suppliers that Planet Fitness provides are all branded and have no side effects, namely Oxy Xtreme - Brand New EnergyYellow Bullet Fat Burner, By Brand New Energy, with Ephedra, some branded and most popular superior collagen, probiotics, essential vitamins including ADK vitamins, hair vitamins, etc.
  • Planet Fitness does offer online services where they give discounts on the purchase of any energy supplements. This would be very much cost-effective and people from the other side of the region can also get hold of the suppliers.

Location variables:
  • Site evaluation of the centre attract the target market (customers)
  • The proper mode of communication makes a hassle-free way for the customers to visit (Hussain et al., 2019)
  • The outside appearance which might include a free parking zone, a children's park might encourage the mothers to come along with their child where both the mother and child can remain busy in their respective activities, a park forlaughing club entitled for a certain age-group
  • General ease in accessing the services of the centre
  • Introducing the right channel of distribution both by providing offline and online services
Establishment atmospherics:
  • The interior layout of the centre
  • The inside and outside ambience of the centre which must look into certain things including, the right choice of colourswhich attracts eyes, cleanliness, fixtures, soothing music, accommodation to uphold the size of the crowds, proper fitness guidance for the physically disabled customers.
  • Planet Fitness possesses advertising variables through which they can preach and promote the services they provide. The variables they opt for includes, magazines, newspapers, telemarketing, radio, television commercials, introducing some special promotions like giving gift vouchers, conducting quiz contests on health and fitness.
  • Planet Fitness has some personal variable on the purpose of selling which includes, the general appearance of the professionals working in the centre, demonstration of a particular product and service, right way of approaching to the customers so that they easily get attracted to it, going for any sort of verbal as well as non-verbal cues.
  • Ensuring the quality of service delivery will remain core to the business
  • There will be a general manager responsible for managing all functions across the centeers
  • There will be a total of two coaches that are trained on a collective number of physical exercises. One of the coaches would be male and the other one will be female
  • There will be a front-house receptionist who will also be required to maintain interaction with the consumers and prospective consumers that come into the center
  • Two cleaners will be hired who will be responsible for keeping the floors clean in between sessions
  • A marketing manager will be hired
  • The client interaction processes will occur front-of-stage
  • The goal of the client interaction would be to maintain communication with the clients to be aware of their opinions and thoughts of the center and promoting the gym
  • Meeting and greeting customers will happen at this stage
  • The front-house will also deal with the processes of satisfying the queries of potential clients visiting the center and completing registration of the interested ones
  • The back-of-stage interaction processes will be aimed to develop and improve marketing strategies and designs to improve the performance and attractiveness of the centers
  • The planet fitness centers will have a clean environment with the added focus on bright lightining the halls
  • The floor of the centers will be wooden and light brown while the walls will be a mixture of modern white and light green
  • Air-conditioners will be installed to to maintain a temperature of 20 degrees celcius within the halls

Table 2: The Marketing Mix strategies of Planet Fitness

The importance of marketing mix and service innovation:

Marketing mix and service promotion of any industry help the particular industry to achieve the aims and objectives of the industry that cannot be overrated and this, in turn, generalizing in the growth of the sector (Haug, 2017). The swift promotion and communication would automatically help Planet Fitness to achieve its goals to strengthen its growth in the competitive sector of the fitness industry.

What marketing techniques will you use to increase the competitiveness and sustainability of your company?

The core competencies of Planet Fitness

  1. Is known for being affordable
  2. Is known for promoting comfort over competition
  3. A wider range of benefits can be availed by the clients and for clients that pay higher, the benefits are even wider
  4. Different levels of membership are offered at different costs

For increasing the competitiveness and sustainability of Planet Fitness, me being a newly appointed manager of the centre who would look after the marketing segment will implement the marketing theory for the strategic growth of the sector are Porter's Sustainable Competitive Advantage Model and The Comparative Advantage theory of competition

Porter's Sustainable Competitive Advantage Model

Cost Advantage and Differentiation Advantage

The cost advantage of any fitness industry is made only by utilizing resources and abilities for achieving either a lower cost structure or then again an isolated thing (Foroughi et al., 2019). Porter’s sustainable model on the advantage of differentiation is a system that uses cost advantage, division advantage, and a wide or limited fixation to recognize a great deal of nonexclusive frameworks where the industry like Planet Fitness can look for and after to make and bolster the growth of the centre on high ground.

Resources and Capabilities

Observations have been drawn by the researcher that the resources are mainly the firm-unequivocal treasures which are important for developing the budget or the competitive advantage where a couple of contenders can pick up with no issue. Limits insinuate the organization's ability to utilize its benefits reasonably (Mohamad and Cresswell, 2019). An instance of capacity is the ability to set up a thing available to be purchased to the open faster than contenders. These capacities engage in the progression, adequacy, quality, and customer responsiveness, which would all be able to be used to make a cost advantage or the competitive advantage of the Planet Fitness.

Value Creation

Scholars believe that to achieve a high ground, the firm ought to perform at any rate one worth creation practices that make more, as a rule, a motivation than do contenders do (Bharathi and Dinesh, 2018). Value Creation of Planet fitness is made through lower expenses or preferable focal points over the differentiation of the consumer. 

The Comparative Advantage theory of competition

Super financial performance:

The objective portions of super financial performance should either have purchasers with peculiar prerequisites or, all the more than likely to the creation and transport structure that best serves the objective part to separate from that of other industry bundles in this sector. Cost centre attempts separate in cost lead in explicit pieces, while the segment centre encounters the unprecedented needs of purchasers in unequivocal portions. Such separations reason that the portions are ineptly served by broadly based on contenders who serve them simultaneously as they serve others (Bennie et al., 2018). The service provider of Planet Fitness would thus have the choice to accomplish advantage by surrendering to the parts so to speak. These clients can benefit from wellness mentors and relationship with wellbeing centre staff, which ought to extend their level of support. Amazingly, due to nonattendance of bliss or concealed motivation, colossal quantities of these customers will all in all be uncommon visitors or transient clients. 

Superior Quality, efficiency and innovation:

Innovation, superior quality services as well as the products, efficient employees of an industry picks up key decisions without considering the drawn-out ramifications for the industry structure. They see an extension in their real position if a move is gainful, at any rate, they dismissal to anticipate the consequences of certifiable response (Bennie et al., 2018). It is essential that patrons see the fluctuating collection of every buyer and thereby perceives their necessities by the various pieces of business regions. The central course of action of any fitness industry is to make a preferred position. On the off chance that emulates of a move by immense contenders has the impact of destroying industry structure, by then everybody is progressively frightful off. Such industry like Planet Fitness is regularly second level firms that are scanning for approaches to manage defeat major real inadequacies, firms that have experienced inconvenient issues and are uncontrollably looking for strategies, or "dumb" contenders that have not been the foggiest about their expenses nor havethe senseless theories about what is to come. Notwithstanding, before the industry can begin to shape their clients direct, they ought to create which market part they will focus on to expand their growth. Thereby, the behaviour of the buyer stands out is one of the most basic factors in publicising is division. 


From the above analysis and through interpretation it can be concluded that fitness and health sectors in today's time have ended up being a key factor of lifestyle. With fast lifestyles, stress full working conditions, making competitions and irritating dietary models, various people have understood the hugeness of prosperity and flourishing to have quality closeness. A dependably stretching out number of people rush to improve their prosperity levels, some for, for instance, themselves, some to look better and feel certain, and some to reduce mental assessments of dread. The brand of the Planet Fitness has the potential abilities to show that they can comprehend the extended customer base. 

Over time many effective fitness industries, like the competitors of Planet Fitness as mentioned above have seen the movement of concerning giving to the customers as well as astounding the prosperity and achievement of the industry. The brand name kept up by the reputation helps the industry to draw focus on the strong foundation by ensuring a perfect strategy of marketing management. In a standard check, the proposed Planet Fitness foundation is depended on to cross make back the shrouded energy for around thirty-five months and return strong focal points from the thirty-sixthmonths onwards. Further to the scratching of improvement, Planet Fitness has many openings which can move with cash related conditions improving optional compensation of individuals coming back to standard levels. The discussions which have been brought out is the improvement of the respective fitness centre to at simply over 10% of the grown-up individuals, generally for the use of flourishing and prosperity of the fitness clubs in the region like the United States, thus including a huge market of expected individuals who could be interested to join. This would automatically help the respective fitness centre from having a strengthening and rapid growth not only within its region but also another part of the territory. 

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