Pricing and Distribution Strategy of K2 Fitness - Assignment Example

Business Plan Affiliation Business Plan Executive summary K2 Fitness is a limited liability corporation that operates within the United States. K2 Fitness targets the average health conscious consumers and people who might be uncomfortable with their body sizes. The fitness company keeps the members and the whole family involved by exposing them to a quite a number of activities and services offered. From its launch in 2013, the company has a unique training program and has given its members an opportunity to relax, have fun and get the best shape that they want without exposing them to any strenuous activities. K2 Fitness aims at supporting a healthy lifestyle for the people of United States and also to make available them with a comfortable, clean and judgment free place where they can pursue an active lifestyle. Offering low membership costs and extending opening hours have been issues of concern that will help the company register more members. Their mission is to become the leading health fitness provider within United States and beyond. Product Description Geared towards improving the health of the health conscious people in the United States, K2 provides a variety of equipment to its members for both cardio and strength training. The company has provided televisions on the cardio machines with ports to allow the health conscious to plug in headphones and tune to the television or radio station that they want to listen. The company also provides services such as massage, health and fitness training and providing cools drinks to its customers. Its slogan of judgment free zone coupled with its low monthly membership costs has enabled the company to get many customers joining to be members in the company. Targeting the Customer Demographic profile. On demographic bases, the company targets people aged between 40-60 years because these people tend to grow old and may not be at a position to involve themselves in activities that help improve their health. Moreover, it targets the female gender more than the male gender. The company views this gender to be inactive when it comes to issues with maintenance of a fit and healthy body. They have the view that this gender leads a comfortable lifestyle in which they do not get their bodies involved in co-curricular activities. According to Dibb, & Simkin, (2008), considering that the willing customers located in a large populated area guarantees the company high profit. Psychographic profile Psychographic system of targeting the customers puts K2 Fitness Company at a better position by targeting customers using this system. They give them the intuition that if they have any health complications that are associated with physical fitness, they will be solved by joining their company and involving themselves in different physical fitness services. Therefore, the company targets those people who have health issues with their body sizes and make them grow interest in joining K2 Fitness Company as members (Minhas, & Jacobs, 1996) Professional profile The fitness company also targets the high-income earners (generally those that are well-educated). It considers that the educated customers know the importance of maintaining a good and healthy body. It also assumes that the high-income earners who spend much of their income on leisure activities. However, its cheap prices have also attracted the low-income earners and the less educated. Geographic location K2 Fitness company targets customers in Oshkosh because they believe people in this area have very large population of people who are interested in maintaining an active lifestyle, but do not have access to the services. Wants and needs. The company targets people who have a need to make their bodies fit. Doctors visited by these people are linked to the company. This will enable the doctors to direct them so that the health conscious people can look for the company’s services. Unique Selling Proposition K2 is a company that has incorporated unique selling proposition to enable customers to develop interest in their products. one of the unique selling propositions that K2 uses are service differentiation. K2 Fitness Company has been carrying out its activities even in the odd hours of the night- when its competitors are closed. This is because of their realization that most people prefer visiting the premises in late- after their busy day. Another unique selling proposal is that of product promotion. K2 has invested so much in advertising because this is one of the strategies of creating awareness of the services being offered. Although some of the advertisement methods are very expensive, the K2 Fitness Company considers using them because they are the most effective methods. Its prices are also favorable to any person who wishes to get services from the company. This allows for any level income earner to get services from the company unlike other companies whose charges are very high exempting some members of the society. Marketing Objectives Among the aims is to create awareness of its services through different marketing methods to all people in different age brackets. This will be achieved by advertising of its services in different methods such as online marketing, radio and television marketing, event sponsorship, word of mouth advertising, event sponsorship and door flyers and hangers. Another important marketing objective is to reduce consumer resistance in the action of asking for the services offered. This also applies to provide information about then services that company offers. Pricing and Distribution Strategy SWOT analysis Strengths-One of the key strengths of K2 Fitness Company is the flexibility of working hour. It offers flexible hours for business professional and the blue collar employees who make up most of United States demography. Another strength of the company is its judgment free zone philosophy. Adopting this philosophy enables the large part of the population to come looking for their services because they consider average in terms of work out usage. Weaknesses-One of the weaknesses is the positioning of the fitness company. Situated within the city center of the capital of the United States, it becomes quite challenging for most of its customers to reach the place because of traffic congestion. Opportunities-One of the opportunities of the company is that getting fit is one of the current trends in United States today. Health consciousness is something that is influential to the society of United States, and most people come seeking the company’s services hence increasing the business greatly. This can be positively taken advantage of especially in branding. Threats-One of the threats to the company is that there is a limitation of fitness equipment that the customers have access to. This may make the company lose some of its customers leading to the deterioration of the business. Supply chain and operation system. For effective realization of its goals, K2 Company has used critical supply chain and operation system to realize these goals. One of the management of a good customer relationship and management of customer services. This two steps have made the company retain most of its customers due to the trust customers have in the company. Another strategy is the management of a good supplier relationship. This step will enable the company not to run short of the fitness equipment. Pricing strategy. K2 Fitness Company has a good pricing strategy that is pocket friendly. Comparing the services that the company offers with that of its competitors, its services can be regarded to be of better quality and at a cheap price. This is what has greatly increased the company’s market share. The strategy has also created a good reputation to the company, and it has increased its market demand over the recent years. Distribution Plan and Promotion Strategy Promotion strategy. K2Company has a good promotion strategy. One of the strategies that it has put into practice is that of online marketing. While browsing on different websites, you will find the companies ads on the websites- which attracts many customers to come looking for the company’s services. The company has also used newspaper add-on. There are different magazines that are advertising the company’s services hence helping enlarge the companies market. Distribution strategy. K2 is an outstanding company that has incorporated a good distribution strategy. Unlike other companies, its distribution strategy is more customer based in that it is directed to the customers without using intermediaries. One of the strategies is the use of mailing. The company emails its customers repeatedly hence contributing to its branding and development of a long-term relationship with the customer. Another strategy that I would recommend is the sending of a calendar to clients containing images of membership in a physical fitness practice. This enables the client to develop interest in the company’s services. A third strategy to consider is to send a follow-up greeting card to customers who have visited the company to receive the services before. This will show the companies courtesy and will attract the customer to come back for the good services offered. Marketing Goals K2’s fitness company marketing goals are ones that are SMART in nature. They are goals that are smart, measurable, and attainable; time rated and realistic. One of its marketing goals is to increase the awareness of its services to the extended population of the United States. Another strategy is the establishment of a good customer relationship and finally is to generate a high market share which would lead to high profits. Conclusion I recommend that the company monitor their marketing efforts by carrying out surveys via emails or phone calls and finally the company should also seek to get feedback from its customer’s so as to instill a sense of royalty to the company. References Dibb, S., & Simkin, L. (2008). Market segmentation success: Making it happen! Routledge. Minhas, R. S., & Jacobs, E. M. (1996). Benefits segmentation by factor analysis: an improved method of targeting customers for financial services. International Journal of Bank Marketing, 14(3), 3-13. Read More