Julie Luther’s PurEnergy Fitness Center

Marketing Plan

Amanda Hogan PRT 476 Fall 2015

EXECUTIVE SUMMARY Julie Luther’s PurEnergy Fitness Center is a locally owned gym located in Greensboro, North Carolina. In business since 1985, the experienced staff helps make members feel as if they are part of a community by providing excellent customer service. In the past, minimal marketing efforts have been made to draw in members over 40 years old and who either had a healthy retirement savings, or were making a minimum of $50,000 annually. With no official marketing plan in place, the majority of efforts were targeted through local newspaper advertisements, social media posts about daily fitness classes, and with coupons offered through sites such as Groupon. As an organization, the strengths lie in our name recognition, experience, variety of program offerings, and the free trial pass. However, we struggle when it comes to financial resources and being seen as a boutique gym catering to elderly clients. In the community, many unexplored opportunities exist among small, local colleges, with family centered programming, and with youth focused events. Unfortunately, we have to compete with several commercial gyms, local sport leagues, and the vast amount of fitness and wellness information available to potential consumers online for free. After analyzing the market, our new target market is adults, ages 25-40, who have a desire to lead healthy and active lives. This target market will enable us to expand our offerings and implement family oriented events to draw in more consumers. To achieve the overall marketing goal of increasing brand awareness, we will implement three marketing strategies: reposition the product by offering diverse programming that appeal to the target market, differentiating our product from direct and indirect competitors to increase memberships by 5% next year, and being more involved throughout the community to increase brand awareness. In order to achieve our goal, we will implement five tactics throughout the 2016 calendar year. These marketing tactics include staffing a tent at the Third Thursday events held from April to September in downtown Greensboro, partnering with The Fresh Market and offer discounted monthly memberships to their customers in addition to providing current PurEnergy members with 10% off their purchases at The Fresh Market, sponsoring a local, recreational baseball team, becoming the official fitness center for the students, faculty, and staff members at local colleges, and becoming more active on our social media accounts by advertising upcoming programs, offering discounts, and congratulating members on their achievements. We can implement this plan with a budget of $2500 and will evaluate the success by measuring return on investment, number of new memberships during 2016, and customer response to community involvement efforts through surveys and data analysis of new members gained.

TABLE OF CONTENTS

➔ Introduction p. 1 ◆ Organizational Mission Statement p. 1 ◆ Background Information p. 1

➔ Situational Analysis p. 2 ◆ Internal Analysis p. 2

● Strengths p. 2 ● Weaknesses p. 2

◆ External Analysis p. 3 ● Opportunities p. 3 ● Threats p. 4

◆ Product Positioning p. 4 ● Market Position p. 4 ● Positioning Statement p. 4

◆ Unique Selling Proposition (USP) p. 5 ➔ Competitive Analysis p. 5

◆ Direct Competitors p. 5 ◆ Indirect Competitors p. 6

➔ Customer Analysis p. 8 ◆ Customers Served p. 8

● Demographics p. 8 ● Psychographics p. 8 ● Product Usage p. 8 ● Product Benefits p. 8

◆ Target Market p. 8 ➔ Marketing Goal p. 10

◆ Marketing Goal p. 10 ◆ Value Proposition p. 10

➔ Marketing Strategies p. 10 ➔ Marketing Tactics p. 10 ➔ Implementation and Control p. 12

◆ Action Plan p. 12 ◆ Budget p. 13 ◆ Evaluation p. 14

➔ Appendix p. 15 ◆ 10-Visit Trial Pass p. 15 ◆ Sample Third Thursday Workout p. 15 ◆ The Fresh Market Partnership Banner p. 15 ◆ PurEnergy Member Discount Card p. 16 ◆ Baseball Uniforms with PurEnergy Logo p. 16 ◆ Sample College Recreation Brochure p. 16 ◆ Sample Twitter Post p. 17 ◆ Sample Facebook Post p. 17

➔ References p. 18

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INTRODUCTION Organizational Mission Statement: ‘PurEnergy is fitness done the right way. We are experienced professionals living and working in your neighborhood. With nearly 30 years of fitness and exercise dedication in our corner, we know how to cater to your needs; whether it’s losing weight, gaining strength, finding balance, adding spark to your life, or simply having fun, PurEnergy is the place for you. In 1985, Greensboro native Julie Luther had a dream of bringing cutting edge forms of fitness to the Piedmont Triad. PurEnergy is her vision and continues to blossom today. Julie Luther and her team of handpicked, seasoned trainers and instructors know how to customize exercise, and we know you!’ Background Information: For over 30 years, Julie Luther has been an innovative leader in the fitness industry on a national level. Having won multiple awards for her work (including the Business Advisory Council’s National Leadership Award, Guilford County Woman Extraordinaire, the North Carolina Governor’s Council on Physical Fitness and Health’s Award of Excellence, and being named as one of the Top Ten Personal Trainers in America in 2010) has helped make PurEnergy one of the most highly sought after fitness centers in the Piedmont Triad area of North Carolina. Located on the north side of Greensboro, North Carolina, PurEnergy has grown to over 600 club members and currently has 6 personal trainers, 3 receptionists, and over 15 group fitness instructors on staff. Since 1985, Julie Luther’s PurEnergy Fitness Center has offered fitness and wellness services to its members in addition to both SilverSneakers and Silver & Fit members. The services provided include personal training, group fitness classes, and recreational fitness areas that contain the necessary equipment to help customers get an effective workout. A wide variety of equipment is present on site including Bosu Balls, TRX Suspension Training, dumbbells, kettle bells, medicine balls, barbells, resistance bands, squat machines, various pin-loaded weight training machines, steps, stability balls, treadmills, stationary bikes, a rowing machine, elliptical, a stair stepper, Helix Lateral Trainer, Dynamax Slam Balls, yoga mats, and a handful of other specialty exercise pieces. Throughout the year, several 4 to 6 week ‘FitCamps’ are held. A personal trainer leads these ‘FitCamps’ and participants focus on obtaining realistic short-term health goals by adhering to customized exercise and nutrition plans. PurEnergy Fitness Center has two separate buildings; one is a 1500 square foot aerobics studio where all group fitness classes, except for indoor cycling, are held and the other is an administrative building that contains a cardio room, an indoor cycling studio, a massage therapy room, a strength training room, and locker rooms. While there is no official marketing plan in place, past marketing strategies have been centered around print advertisements in the local newspaper, social media posts about daily group fitness classes and upcoming ‘FitCamps’, and occasional Groupons allowing potential clients to purchase a trial pass for group fitness classes and use of the fitness areas at a discounted rate. All marketing efforts have been focused on a target market of middle-aged adults looking for a boutique gym in which to become more active, lead healthier lifestyles, and connect with other like-minded individuals. The majority of strategies have specifically targeted stay-at-home moms whose annual household income exceeds $50,000 and who have free time during the week to attend fitness classes or personal training sessions. Past target markets have also included both SilverSneakers and Silver & Fit Members in an attempt to bring their business exclusively to PurEnergy as opposed to one of the other local gyms offering the same programs for elderly adults.

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SITUATIONAL ANALYSIS Internal Analysis: Strengths

➔ Experience ◆ Being in business since 1985 gives PurEnergy an advantage over the large, corporate

gyms that have been founded within the past 10-15 years to accommodate the increased desire of the population to lead more healthy and active lifestyles. Having been through a variety of fitness trends over the past 30 years has allowed Julie Luther to experience first-hand what methods are effective and which ones only lead to temporary improvements. In addition, all of the personal trainers and group fitness instructors on staff go through a fairly intensive on-boarding process of shadowing, peer teaching, and frequent evaluations to ensure they are providing clients with the best possible information and fitness routines to help them reach their goals.

➔ Name Recognition

◆ When asked, the majority of middle-aged residents in the Greensboro, North Carolina area recognize Julie Luther as a leader in the fitness industry and as someone who helped kick off the fitness revolution in North Carolina. This name recognition helps draw in potential clientele to try out PurEnergy Fitness Center. Local residents often seek out her services because of her proven success record with helping clients meet their nutritional and fitness goals.

➔ Variety of Offerings

◆ Since first opening, PurEnergy has expanded both the variety and timing of group fitness class offerings in order to help draw in more members. Similar to other gyms, there are the standard indoor cycling, yoga, and strength training classes. However, PurEnergy also offers several unique group fitness classes including Pilates, Circuit Training, Metabolic Conditioning, Kick and Kettle, Step, SilverSneakers Aerobics, SilverSneakers Seated Class, and Men’s Mobility. The increased offerings have allowed PurEnergy to accommodate a wide variety of clientele by holding classes in the mornings as well as in the evenings and on the weekends.

➔ Free Trial Pass

◆ Unlike how the free trial passes work at the big, corporate gyms, the employees at PurEnergy encourage everyone to sign up for the 3 visit trial pass prior to joining. Any potential client who comes through the door is given a free trial pass in order for them to come experience the group fitness classes offered and get a feel for the community atmosphere among the members. The other difference that sets PurEnergy apart from competitors when it comes to the free trial pass is that, although everyone is required to fill out a waiver for liability purposes, if the client decides not to come back, the receptionist will only send them one follow up email. Many members have decided to join PurEnergy instead of another gym because there was no pressure, in the form of multiple phone calls, letters, and emails, from the administration for them to come back after their free trial expired.

Weaknesses

➔ Budgetary Constraints ◆ Since PurEnergy is a small, local business, it does not have the same budget options for

marketing that other companies have. Each month, it costs roughly $20,000 to cover all expenses associated with operating a fitness facility including equipment maintenance, staff salaries, rent, liability insurance, etc. Unfortunately, the business usually struggles to break even and any extra profit is generally set aside for major expenses that are coming up or may arise suddenly. Due to the financial situation, marketing efforts are usually only implemented if it is free, such as social media campaigns, or if it comes at a minimal

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cost to the business, such as a newspaper advertisement. In addition, it limits the ability of Julie Luther to update to the newest products on the market every couple of years.

➔ Seen as a Boutique Gym

◆ The majority of people in the Greensboro, North Carolina area view PurEnergy as a boutique gym catering to older populations. Even though there is good name recognition with Julie Luther, younger populations want access to the newest fitness products available on the line and an endless amount of group fitness classes to choose from. However, PurEnergy is very traditional in its values, teaching styles, and fitness offerings discouraging younger clientele from joining.

➔ Mostly Serve Older Clientele

◆ Of the 600 members currently registered with PurEnergy Fitness Center, approximately 400 of them are either SilverSneakers or Silver & Fit members. Those programs operate in such a way where PurEnergy receives $3 every time a member signs in; however, those clients pay a monthly due to their insurance company for gym access, not to PurEnergy. Having a mostly older population frequenting the gym discourages younger clients from joining as they view PurEnergy as a boutique gym catering to the elderly instead of to their needs. When joining a gym, it is important that the consumer feels they can fit into the community there. If younger clients visit and only see middle-aged and elderly members, they will not feel as if it is a place in which they can connect with similar individuals and form new relationships.

External Analysis: Opportunities

➔ College Students, Staff, and Faculty Members ◆ One opportunity for PurEnergy to gain more members is to look at local college students,

staff, and faculty members. Aside from the University of North Carolina at Greensboro and North Carolina Agricultural and Technical State University, there are three small colleges located in Greensboro. Greensboro College, Guilford College, and Bennett College are all great places for PurEnergy to implement a marketing campaign. Since these schools are smaller, they do not have the same recreational facilities that larger universities can offer to students so a contract with PurEnergy would help draw in potential consumers while allowing the colleges to offer recreational and fitness programming.

➔ Youth Centered Fitness Programs

◆ Another opportunity for PurEnergy is to offer youth-specific fitness programming so parents can bring their children to the gym. This eliminates the need for parents to find a babysitter or another place for their children to be while they go to the gym. Several bigger gyms even offer in-house babysitting services for their members. Providing specific fitness classes for youths helps them lead more active lives and positions PurEnergy as a family-friendly gym.

➔ Family Oriented Fitness Programs

◆ To help position PurEnergy as a family friendly environment in the eyes of the middle-aged parental consumers, it would benefit the business to offer family oriented fitness programs. Recently, partner workouts have been gaining popularity and it would be fairly easy to implement a program in which the whole family could participate. Already, several group fitness classes (Metabolic Conditioning, Circuit Training, and TRX) are set up so that a wide variety of fitness levels can participate and enjoy the workout. Having a family workout once every other week, or once a month, would help make PurEnergy more appealing to the target market. In addition, the family program would provide good word-of-mouth advertising opportunities to other community families.

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Threats ➔ Big Corporate Gyms

◆ Big, corporate gyms have greater financial resources to put towards marketing, special programs, and incentives for members. This puts PurEnergy at a disadvantage because they do not have the same resources available to attract potential clientele. The bigger gyms also have the ability to update to the latest fitness equipment every 3 years, or so, giving them an advantage when targeting a younger demographic.

➔ Local Sport Leagues

◆ Recently, local sport leagues have become more popular as adults look to stay physically active but still connect with like-minded individuals. These leagues take business away from PurEnergy because they provide an outlet for people to get exercise without having to sign a membership contract. Typically, these leagues only meet once or twice a week appealing to busier adults or those with families who do not have a lot of free time. As a local sports league does not require a large time commitment, many consumers see them as a better way to spend their money as opposed to paying for a pricey gym membership and only being able to go once a week.

➔ Free, Outdoor Fitness Areas

◆ The City of Greensboro offers parks, hiking/running trails, biking trails, and lake access for people looking to exercise outdoors. Consumers benefit by being able to have access to free, outdoor fitness areas where they can get active while enjoying what nature has to offer. On the other hand, it hurts business at local gyms like PurEnergy. Increasingly, consumers are being exposed to popular fitness trends that do not require a large monetary investment. Instead of investing in a personal trainer or a gym membership, people are looking at more convenient, inexpensive ways to stay healthy and outdoor trails and parks are one of the more popular venues.

➔ Online Fitness and Wellness Information ◆ While the wealth of fitness and wellness information available to consumers online is a

great way to help people lead more active lifestyles, it is detrimental to business at gyms, particularly smaller gyms such as PurEnergy. Online fitness videos and workouts give consumers the flexibility to workout in the comfort of their homes whenever is convenient for them without having to worry about a gym’s hours or judgment from other patrons. In addition, the majority of these workouts are free and can be done with minimal equipment. For people new to fitness, it is an unintimidating way to build a base allowing them to save money for other things besides gym memberships.

Product Positioning: Market Position In the market, Julie Luther’s PurEnergy Fitness Center is positioned as a small, boutique gym catering to older, or aging, populations. Offering yoga meditation courses and programs such as the ‘Over 45 Boot Camp’ indicate that the majority of members are older. This atmosphere tends to push the younger generation away towards bigger gyms where they will have access to the newest fitness technology, group fitness classes targeted towards a younger population, and a place to build a community with other local residents at a similar stage in life. Positioning Statement For adults ages 25-40 who have a desire to lead active and healthy lifestyles, Julie Luther’s PurEnergy Fitness Center offers members access to fitness equipment and high-quality instruction that has helped our clients reach their goals since 1985. Unlike other gyms in the Greensboro, North Carolina area, PurEnergy Fitness Center gives clients a wide variety of ways to exercise with the help of experienced fitness professionals in a clean, engaging environment.

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Unique Selling Proposition (USP): Feel the energy - helping clients reach fitness and wellness goals since 1985!

COMPETITIVE ANALYSIS Direct Competitors:

➔ ACT By Deese - 435 Dolley Madison Road (~5 miles from PurEnergy) ◆ ACT By Deese is one of PurEnergy Fitness Center’s direct competitors because they are a

small, locally owned gym that caters to the aging community. They offer programming for both SilverSneakers and Silver & Fit clients, and target a market identical to PurEnergy - middle aged adults with annual household incomes over $50,000 who have a desire to get active. One of the ways they differentiate from other gyms is their partnership with local medical professionals allowing clients to receive more comprehensive testing and care. All of their group fitness classes are based on a ‘pay-as-you-go’ plan making it appealing to consumers who do not wish to make a month-long commitment.

➔ Bryan Family YMCA - 501 West Market Street (~4 miles from PurEnergy)

◆ While the Bryan Family YMCA has a larger target market than PurEnergy, they are a competitor because of the services they offer. The YMCA markets at families because they offer childcare services, sport teams, summer camps, and other opportunities for parents to register their children to become more physically active. In addition, the fitness services they offer are priced at more affordable rates than PurEnergy because the business does not rely solely on income from fitness operations to turn a profit.

➔ The Cycle Loft - 1420 Westover Terrace (~2.5 miles from PurEnergy)

◆ A boutique fitness club located close to PurEnergy, The Cycle Loft offers indoor cycling classes. Their marketing consists of emails, social media techniques, flyers, and advertisements around town. They frequently partner with local breweries to offer ‘Bike and Brew’ nights where participants can come out, take an indoor cycling class, and then enjoy some beer. The Cycle Loft targets middle-aged, single adults who earn at least $50,000 annually. Their clientele live an upper-class lifestyle and are willing to pay more for things they believe are valuable, as is reflected in the pricing rates. Pricing at The Cycle Loft is expensive, $15 per class with discounts on packages, and this helps position them as a more exclusive, boutique fitness center.

➔ The Club at Green Valley - 1909 Lendew Street (~2 miles from PurEnergy)

◆ The Club at Green Valley caters to the upper-middle class. With many exclusive amenities such as partnerships with laser treatment centers, massage therapists, and salons, they draw in a wealthier clientele. Their marketing strategies are centered on their partnership with Parisi Speed School, which allows an outlet for parents to register their children for sport-specific conditioning and training. They are a direct competitor because their target market draws off of wealthier individuals who could have otherwise joined PurEnergy and are positioned as an elite fitness center in Greensboro.

➔ Gold’s Gym - 3711 Battleground Avenue (~3 miles from PurEnergy)

◆ Gold’s Gym is a direct competitor because they market towards lower and middle class individuals looking for a community gym atmosphere. To stand out and position themselves as an affordable fitness option, they offer a sauna, a swimming pool, steam room, and a women’s only locker room. Members also have access to free child care services.

➔ Proehlific Park - 4517 Jessup Grove Road (~6.5 miles from PurEnergy)

◆ Similar to the other big, corporate owned gyms that are direct competitors, Proehlific Park is another fitness option for potential consumers. Heavily focused on offering services for the whole family, Proehlific offers basketball courts, a multipurpose athletic

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space, sport camps, and free child care services to members. Their marketing is primarily done through their partnership with local youth sport teams, such as Greensboro United Soccer Association and Old North State Lacrosse, in addition to hosting their own baseball, basketball, football, and volleyball leagues.

➔ Runner Dude Fitness - 2309 West Cone Boulevard, Suite 120 (~1.5 miles from PurEnergy) ◆ Another small, boutique gym, Runner Dude Fitness caters to individuals passionate about

running who have an interest in participating in cross-training to improve race performances. Runner Dude Fitness is a direct competitor to PurEnergy because of the fitness services it offers including personal training and small group training. Unlike most gyms, Runner Dude Fitness operates its fitness programs on a per session basis making it an attractive investment for individuals not looking to make a long-term commitment. Marketing is done online and through a partnership with the Moses Cone Sports Medicine Clinic.

➔ Strive Fitness - 3726 Battleground Avenue (~2.5 miles from PurEnergy)

◆ Other than a banner in front of the facility, Strive Fitness operates its marketing campaign based on word-of-mouth. Their facility has a lot of open spaces and features a multipurpose athletic field and a Cardio Cinema where members can watch a movie while doing an indoor cycling workout. Strive Fitness is a direct competitor of PurEnergy because both gyms target middle class individuals who have the flexibility to come to the gym at a variety of times throughout the day. In addition, Strive Fitness offers competitive membership pricing similar to the pricing structure at PurEnergy.

Indirect Competitors:

➔ Cinemark Brassfield Cinema Ten - 2101 New Garden Road (~3 miles from PurEnergy) ◆ Marketing for the Cinemark Brassfield Cinema Ten is done mainly through the website,

newspaper announcements, and word-of-mouth. It is well known as one of the cheapest movie theaters in Greensboro with matinee tickets for only $5. This fits perfectly with their target market, which consists of families and movie enthusiasts. Their prices draw in a lot of consumers, especially families as it makes going to the movies more affordable. They are an indirect competitor of PurEnergy because it offers consumers an alternative way to spend their income.

➔ Greensboro Coliseum - 1921 West Gate City Boulevard (~5.5 miles from PurEnergy)

◆ Home to the ACC Basketball Hall of Fame and the Greensboro Aquatic Center, the Coliseum draws a large consumer interest because of the wide variety of offerings. People come from all over to watch concerts, shows, and sporting events at the venue. Marketing is done differently for each event and is targeted at residents in the local area and surrounding communities; however, there are always advertisements about upcoming events in the local newspaper, on the website, and displayed on billboards in the surrounding area. The Greensboro Coliseum is an indirect competitor because it provides an outlet for consumers to spend their money on something that is not related to fitness.

➔ Greensboro Grasshoppers - 408 Bellemeade Street (~4 miles from PurEnergy)

◆ As one of two professional sport teams in Greensboro, the Grasshoppers provide family entertainment at an affordable price. Marketing is done through a variety of outlets including promotional banners, social media, newspaper advertisements, and consumer discounts offered through local stores. The target market is local families and baseball enthusiasts who want to enjoy a social outing without spending too much money. The Greensboro Grasshoppers are an indirect competitor because they offer an opportunity for families to spend time together.

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➔ Greensboro Science Center - 4301 Lawndale Drive (~.5 miles from PurEnergy) ◆ Open since 1957, the Greensboro Science Center is a well-known establishment for

families and individuals with a desire to learn more about historical events. Every several months, a special exhibit circulates through and offers customers the chance to experience a memorable historical event in an engaging way. In addition, the recently opened SkyWild Adventure Park offers zip lining tours. With a renovated petting zoo and access to Country Park from the facility, the Greensboro Science Center is popular with tourists and local residents alike. Their marketing centers around new exhibits, discounts, the partnership with SkyWild Adventure Park, and the Sciquarium. Marketing campaigns are conducted through social media posts, flyers, billboards, and social media. They are an indirect competitor because they offer a service to people in all economic stages.

➔ Greensboro Sportsplex - 2400 16th Street (~6.5 miles from PurEnergy)

◆ The Greensboro Sportsplex is an indirect competitor of PurEnergy because of the services it provides to individuals and families. While fitness is not their main goal, they do offer facilities in which recreational and competitive sport leagues play. These facilities include volleyball courts, basketball courts, indoor soccer fields, an indoor ice hockey arena, and a fitness space. Host to a variety of large sporting tournaments each year, the Sportsplex also has designated ‘open play’ times where consumers can pay to use the facilities. Marketing efforts take place through their partnership with local sport leagues such as NCBA Basketball, SoccerOP! Soccer, and the Piedmont Volleyball Club.

➔ RED Cinemas - 1305 Battleground Avenue (~3.5 miles from PurEnergy)

◆ As a way to differentiate itself from competitors, RED Cinemas sells alcoholic beverages to consumers who are of legal age. The parent company also owns three other businesses located within half a mile of the theater - Pig Pounder Brewery & Tap Room, The Marshall Free House, and Burger Warfare. Marketing is a conjoined effort of packaging all of the businesses together by offering discounts to the other entities. This strategy also ensures that RED Cinemas reaches their target audience of younger to middle aged adults who enjoy drinking while they participate in other activities such as watching movies or eating dinner. RED Cinemas is an indirect competitor because they offer entertainment that is seen as a relaxing way to end the day in the eyes of consumers as opposed to hitting the gym.

➔ Wet N’ Wild Emerald Pointe Waterpark - 3910 South Holden Road (~9.5 miles from

PurEnergy) ◆ Wet N’ Wild Emerald Pointe is an indirect competitor of PurEnergy because they draw

business away from the gym by offering an environment where consumers can come be entertained by a variety of pools and attractions. Their target market is local families, particularly those with younger children, and marketing efforts are implemented with social media campaigns, billboards, and discounted tickets through sponsorships. Being the only water park in Greensboro, North Carolina and the surrounding areas helps make the services feel more exclusive and customers travel from all over the Piedmont Triad to experience the park.

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CUSTOMER ANALYSIS Customers Served: Demographics According to the Sports Business Research Network, the demographics of customers who go to the gym are males and females ages 18 and older. However, consumers ages 18-22 typically have access to fitness spaces, classes, and equipment at the college or university they attend. Due to this, the primary demographics that local gyms focus on are young adults ages 22 and older. Research also shows that the majority of people who have gym memberships make at least $50,000 annually. At PurEnergy, the customer base consists mainly of adults ages 40 and older who are either retired or do not work full time jobs. Despite their free time, the clientele make over $50,000 annually on average, or have enough saved for retirement so they can afford to live a more luxurious lifestyle. A highly educated membership base, PurEnergy serves some very well-off, successful people. Overall, the male to female ratio is about even as the majority of people who join are couples. Psychographics Consumers who belong to a gym, fitness studio, or health club are interested in living healthy and active lifestyles by achieving goals such as losing weight, increasing strength, gaining muscle, increasing athletic performance, and improving mobility and flexibility in daily life activities. The desire to both connect with other like-minded individuals and form a social network are also powerful drivers. Most of the consumers have an interest in fitness, wellness, or athletics. Dedicated members are motivated to achieve their health goals and are willing to try new solutions in order to see improvements. Product Usage Research done by the Sports Business Research Network shows that weightlifting and strength training are the most popular fitness methods among consumers looking to either lose weight or increase muscular strength. The next biggest fitness trends are aerobic training and circuit interval training classes such as TRX Suspension Training or H.I.I.T. In addition, yoga participation has increased 50% since 2011 and is popular among all age groups due to its movement, balance, flexibility, and stress relieving benefits. The clientele who are members at PurEnergy enjoy attending group fitness classes and using the cardio equipment. While there are some members who follow a strength-training routine, it is usually only on the pin-loaded weight machines. Due to this, the other strength-training equipment (dumbbells, kettle bells, barbells, sandbags, Dynamax balls, TRX Suspension Trainers, etc.) is typically only used during personal training sessions. Personal training is a popular option, and second biggest income source, at PurEnergy with over half of the members currently registered with one of the trainers on staff. Product Benefits While all consumers who choose to join a gym, fitness studio, or health club want to make improvements in their lives through exercise and wellness initiatives, different generations have varying expectations regarding service, facilities, and equipment. The middle-aged and older clientele value a higher quality of service while the younger population would rather have access to the newest fitness equipment and a nice list of amenities. However, all consumers can derive the same benefits from a gym, fitness studio, or health club membership. Socialization, getting physically active, weight control, building muscular strength or endurance, experiencing an energy boost, and leading a healthier lifestyle are all external benefits while increased self-confidence, improved self-image, reduced stress, decreased anxiety, getting better sleep, and having a better memory are all internal benefits. Target Market: For PurEnergy, the target market is male and female adults ages 25-40 who have a desire to lead active and healthy lifestyles. This is the target market because it encompasses young professionals who have some extra money to spend in addition to married adults who may have a family. Typically by age 25, people will have chosen a city to live in and have secured at least an entry-level position that provides them with the necessary resources to afford a gym membership. Since college students tend to move around after graduation, they are not a good target

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market, as it will most likely not turn into a long-term commitment. Although the older generation has free time and money to afford gym memberships, they are also limited in their abilities when it comes to fitness and are subject to contracting infections or diseases that could have fatal consequences. Targeting younger adults in their mid-twenties and middle-aged adults in their thirties and forties will increase membership contracts and secure members for a longer period of time than any other market segment. In addition, if the members have children, it will be easier to implement family or youth centered programs and target a wider market in the future.

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MARKETING GOAL Marketing Goal: The overall marketing goal of Julie Luther’s PurEnergy Fitness Center is to increase brand awareness of the gym in the local community. One of the biggest issues that PurEnergy faces is the lack of knowledge about what the fitness center has to offer to its members. Questioning of current members, employees, and interns has shown that those who are aware of PurEnergy would list it among the top gyms in the Piedmont-Triad. However, it is often overlooked as a small, boutique gym and sends a large majority of potential consumers to other gyms with well-known reputations. By increasing the brand awareness, PurEnergy can establish itself as one of the best gyms in Greensboro and attract consumers from the target market. Value Proposition: We will offer our members access to up to date, well-maintained fitness equipment and provide the best fitness instruction in the area by staffing industry professionals who continually seek information on the latest fitness news and trends. Our members can expect uncompromised customer service in a unique, community atmosphere at PurEnergy where everyone is encouraged to participate and reach their goals.

MARKETING STRATEGIES In order for PurEnergy to achieve the overall marketing goal of increasing brand awareness in the local community, the following marketing strategies will be implemented:

➔ Reposition the product by offering diverse programming that will appeal to the target market ◆ In order for PurEnergy to reach its target market, the brand image must be repositioned

in the minds of consumers from a boutique gym serving an older clientele to a fitness club that provides services for individuals of all ages in addition to families. Local residents must be able to find a class or group of members with whom they feel connected to in order for them to enjoy their experience and recommend it to others. Increasing program offerings to be more diverse will help PurEnergy Fitness Center be known as an inclusive environment that has an offering for everyone.

➔ Differentiate from other competing gyms in the community in order to increase

memberships by 5% ◆ Gaining more membership commitments is one of the primary focuses at PurEnergy as

the majority of the monthly revenue comes from member fees. Each new contract signed is more money coming into the business allowing a bigger budget for things such as equipment upgrades, increased program offerings, and bigger marketing campaigns. In order for PurEnergy to see a rise in membership commitments, the fitness center must differentiate itself from other local competitors.

➔ Increase brand awareness amongst the target market by being more involved in

the local community ◆ Community involvement is a great way to increase brand awareness to our target market.

Not only will we be able to reach a broader audience, but the limited marketing budget can be specifically targeted at the consumer segments we want. In addition, it will help differentiate the gym from local competitors by showing a desire to give back and provide services that improve the overall well being of the Greensboro, North Carolina area.

MARKETING TACTICS

Implementing a variety of marketing tactics can help PurEnergy accomplish its overall marketing goal through the identified strategies. Tactics that will enable Julie Luther’s PurEnergy Fitness Center to accomplish its objectives include the following:

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➔ Staff a tent at the monthly Third Thursday festival where people can register for the free trial pass and participate in a short 5-10 minute workout ◆ Connected Strategies: Differentiate from other competing gyms in the community in

order to increase membership by 5%, increase brand awareness amongst the target market by being more involved in the local community

◆ Appendix Materials: 10-visit Trial Pass, Sample Third Thursday Workout ◆ On the third Thursday of every month, downtown Greensboro hosts a festival where

residents can come and listen to music, explore tents hosted by local vendors, and buy goods from local artists. Businesses can host spaces, or tents, at this event so PurEnergy could purchase a space and advertise the fitness industry by staffing 1-2 personal trainers at the event. So far, no other fitness centers attend the event so this would allow PurEnergy to differentiate itself from competitors while increasing brand awareness among the target market. With over 26,000 attendees in 2015, this would be great exposure, especially since a lot of younger adults and families come out. At the tent, PurEnergy would have forms that interested consumers could fill out allowing them to receive the free trial pass. If customers register at Third Thursday, they would receive a 10-visit pass instead of the usual 3-visit pass to encourage more people to come try out the gym and see what classes are offered. Short 5-10 minute workouts will also be offered throughout the event to help increase awareness of trainer ability and product offerings.

➔ Partner with The Fresh Market to offer a discounted one month trial membership

to their customers in addition to providing PurEnergy members with 10% off their purchases ◆ Connected Strategy: Differentiate from other competing gyms in the community in order

to increase membership by 5% ◆ Appendix Materials: Partnership Banner, PurEnergy Member Discount Card ◆ Located in the adjacent shopping center, The Fresh Market provides an opportunity to

encourage people to both eat healthy and stay active. Partnering with the health food store would be beneficial to both companies. PurEnergy members would receive 10% off their purchases at The Fresh Market and consumers who shop at the grocery store would be able to receive a discounted monthly membership to PurEnergy. In addition, two banners advertising the partnership would be created and put in front of both The Fresh Market and PurEnergy to help generate brand awareness.

➔ Sponsor a local recreational sports team

◆ Connected Strategy: Increase brand awareness amongst the target market by being more involved in the local community

◆ Appendix Materials: Baseball Uniforms with PurEnergy logo ◆ Sponsoring a local recreational sports team will increase PurEnergy’s involvement in the

community in addition to promoting brand awareness among local families. Choosing a recreational league will ensure that the parents have more free time to join a gym, as opposed to a competitive team where there is more extensive travel involved. Getting the logo put on the back of uniforms and on banners, or signs, at the field would be good exposure for the gym and instill PurEnergy as an engaged community business in the minds of consumers.

➔ Offer services to students, staff members, and faculty at local colleges for a

discounted rate ◆ Connected Strategies: Reposition the product by offering diverse programming that will

appeal to the target market, differentiate from other competing gyms in the community in order to increase membership by 5%

◆ Appendix Materials: Sample College Recreation Brochure ◆ Aside from UNCG and NC A&T, there are three other small colleges in Greensboro -

Bennett College, Greensboro College, and Guilford College. While larger universities can provide students with state of the art fitness centers, smaller colleges do not have the

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same resources. Offering PurEnergy Fitness Center for use by students, faculty, and staff of these colleges allows for increased brand awareness through product differentiation. For a fee to the colleges, PurEnergy would become the official recreational provider for campus residents and employees. Increasing traffic to the gym will increase word-of-mouth advertising and can increase memberships. In addition, this will help reposition PurEnergy as an all-purpose gym that can serve people of all ages from college students to older adults and provide something everyone can enjoy.

➔ Use social media to send out updates on member accomplishments, current fitness

classes, and special programming ◆ Connected Strategy: Reposition the product by offering diverse programming that will

appeal to the target market ◆ Appendix Materials: Sample Twitter Post, Sample Facebook Post ◆ While PurEnergy currently uses a variety of social media sites (Twitter, Facebook,

LinkedIn, and Google+) to send out daily updates regarding the class schedule for the day, there is a lot of room to market the gym through the social media accounts. PurEnergy should be advertising special programming, new classes, and significant member accomplishments to make potential consumers want to join. By highlighting members or new fitness trends, PurEnergy can reach their target market through the Internet and get free marketing. In addition, they will be repositioned as a fitness center that cares for its members and has a desire to keep up with the latest trends in fitness programming. Creating an Instagram account will also allow PurEnergy to post photos or short videos that show members and employees in action.

IMPLEMENTATION AND CONTROL

Action Plan:

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Budget: To successfully implement our marketing tactics and reach the target market, the proposed total marketing budget is $2500. This includes enough money to pay for any promotional materials and to cover any employee expenses incurred during marketing outreach efforts in addition to an 8% contingency for any unforeseen costs that arise during the process. Below is a table outlining the cost for each marketing tactic including the number of materials we plan on purchasing or creating:

Promotional Tactic Cost of Production Materials Needed

10-Visit Trial Pass $134.80 100 - 4”x6” postcards, 10 - 8”x12” flyers

Third Thursday Workouts $720 5-minute x 2, 8-minute x 2, 10-minute x 2; vendor spot; 2 staff

members

Partnership Banner $97.49 2 - 2.5’x10’ banners

Member Discount Card $275 800 member cards

Baseball Uniforms $755.72 25 player jerseys, 3 coaches jerseys

College Recreation Brochure $250 1000 brochures

Twitter Posts $0 2+ tweets per day

Facebook Posts $0 2+ posts per day

Total $2233.01

At the Third Thursday event, we will promote the 10-visit trial pass offer by putting up 10 8”x12” posters around the venue to help draw attention to our booth. In addition, the staff members on site will hand out the 100 postcards to visitors in order to generate interest. With 6 events hosted throughout the year for 3 hours each, we plan on budgeting $720 to pay the vendor fee in addition to providing the 2 employees with $15 an hour for 3 hours. The employees will lead either a 5-minute, 8-minute, or 10-minute workout every 45 minutes for any interested participants and be available to answer any fitness, health, or wellness questions. The partnership with The Fresh Market will require the purchase of 2 promotional banners. One will be placed at The Fresh Market and one will be posted at PurEnergy to help increase awareness of the benefits of membership through product differentiation. PurEnergy will order 800 member discount cards to distribute to current members and have enough to give out to new clients as they join. PurEnergy will sponsor a local, recreational baseball team and provide all of the jerseys for both the players and coaches involved. Assuming an average roster size of 25 players and 3 coaches, that is the amount of jerseys that PurEnergy will provide at a cost of $26.99 each. This initiative will help increase awareness of the product through good public relations and community relations. Being the official fitness center of small, local colleges will help PurEnergy reposition their product to reach target markets. In order to generate awareness among the student body, brochures will be printed outlining the services offered at PurEnergy in addition to a discounted membership rate of $20/month. 1000 brochures will be mailed out to current and incoming students at Bennett College to promote the partnership and increase awareness.

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Finally, strategic use of social media can help make the product appealing to a younger generation and the target market. Posting at least twice a day on both Twitter and Facebook to highlight upcoming special programs, announce discounts or coupons, and highlight member accomplishments will keep PurEnergy prevalent in the minds of consumers and show that the fitness center provides a genuine community atmosphere, unlike the bigger gyms. This tactic is free to implement and only requires creative thinking on the part of Julie Luther and her staff. Evaluation: The presented marketing strategies and their relevant tactics make everyone at PurEnergy confident that we will be able to increase awareness of our brand by repositioning the gym in the minds of consumers and differentiating from the competition through creative community involvement. Successful implementation of this marketing plan will generate a 90% return on investment. With a marketing budget of $2500, we hope to receive a minimum of $2250 in revenue from a variety of sources including new memberships, contract renewals, and registration for special programming. Another measurement strategy we will use to evaluate the success of the plan is looking at membership increases. One of our strategies involved increasing membership by a minimum of 5% in 2016 from 600 members to at least 630. PurEnergy receives anywhere from $35 to $55 a month per membership, so assuming an average of $45 a month in revenue for each member, receiving 30 new members would increase revenues by $1350 each month. Customer response is another important aspect that we will measure through recall surveys. Sponsoring a local, recreational baseball team, hosting a tent at Third Thursday, and partnering with The Fresh Market all help promote the brand to the target market throughout the community. A survey will be handed out to the parents of participants in the baseball league asking them to identify all of the businesses that sponsored the teams that year to determine recall ability. We hope to receive results indicating an 80% recall ability that PurEnergy Fitness Center was one of the sponsoring businesses. At Third Thursday, we will measure the response of consumers by counting the number of people who sign up for the 10-Visit Trial Pass. Upon completion of the Third Thursday events in September, data will be collected from the computer system to analyze the total number of customers who signed up for the 10-Visit Trial Pass and became members. This will allow us to calculate the success rate compared to the cost of renting a vendor spot and staffing a tent for 6 events. Our goal is to achieve a minimum of 20 new membership contracts from the Third Thursday efforts. Finally, the number of memberships that arise from our partnership with The Fresh Market will be calculated through data stored in the computer system. From the PurEnergy standpoint, this partnership will prove to be a success if, over the course of the year, we receive 15 new members.

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APPENDIX 10-Visit Trial Pass:

Sample Third Thursday Workout:

The Fresh Market Partnership Banner:

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PurEnergy Member Discount Card:

Baseball Uniforms with PurEnergy Logo:

Sample College Recreation Brochure: Outside

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Inside

Sample Twitter Post:

Sample Facebook Post:

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REFERENCES http://greatist.com/fitness/13-awesome-mental-health-benefits-exercise http://www.gsocitymarket.com/vend/ http://www.julieluther.com/ http://www.mayoclinic.org/healthy-lifestyle/fitness/in-depth/exercise/art-20048389 http://www.postermywall.com/index.php https://www.psprint.com/ http://www.sbrnet.com.prox.lib.ncsu.edu/Sport-Search/Exercise-Fitness.aspx http://www.shop.creativecardgroup.com/index.html http://www.teamsportswear.com/ http://www.vistaprint.com/