Question

All of the questions are designed as if you are getting readyto open up a fitness center.

1) Compare what happens if you choose “Differentiated targeting strategy” what you should do with these predefined segment/s. Discuss how product variety, pricing and number of customers change. (Hint: Choose allof them or what?)

Predefined segmentation: or a fitness center, three segmentations are health requirements, weight loss and sports focused

People with similar health requirements need similar fitness tricks and exercises. Therefore, they can be grouped together to make business cost effective. People from different age group can be included here.

People who come to the fitness center only to lose weight or maintain body shape, can be grouped together having a mix of both male and female. These people require similar weight loss machine and this segmentation is time effective also.

Another segmentation is sport focused for the sport person. They require several kinds of practices for participation in sports event.

2) What would be your positioning statement? How should your consumers remember you? What would be your unique, favorable and strong associations?

Answer 1

1. Differentiated targeting strategy focuses on a large group of customers within total market. When the owner offers separate services to the customers of different segments, this strategy increases competitive position. It’s a better opportunity for a new firm to enter into the market. It helps the firm to increase sales according to different demand condition.

The owner of fitness center can choose all of the three segments. During peak hours such as evening time every day, can be allotted for the young group who wants to maintain a body shape by loosing weight. Many people who returns from office in the evening can join this session.

As the differentiated targeting strategy carries high costs if different fitness tool is to be brought for each group. Hence, start with a single segment initially is profitable. Eventually, other two segments can be opened to the firm is able to attract sufficient customers to cover its initial investment.

Pricing would be differentiated based on demand and cost of operation for each segment.

2. Poduct or service is the unique one that is focused on target customers.

Position statement for the fitness center is such as ‘ Mission of XYZ is to build up a healthy community in the ‘locality’; A healthy society is a perquisite for a healthy economy’.

Regular update of success story of the customers who can achieve fitness goal and sharing the update on social media platform to encourage customers can build a favourable and strong associating with them.