A year after the official opening day, they will check to see if they reached their goal of establishing a customer base of 3,750. At least 2,000 of the memberships should be those people ranging from 29 to 45 years of age. They also plan to monitor the changing demographics of their consumers by means of the marketing surveys and membership forms they plan to distribute.
The marketing strategy that will be implemented to accomplish their objectives is a market-penetration strategy. In the marketing setting of this facility, they are trying to penetrate an existing market with an existing product. Initially, their strategy will take on the sole dimension of attracting customers and then become more of a repeat-purchase strategy; however, they will continually give effort toward increasing the consumer base. The most difficult aspect of this marketing strategy will be to attract customers to their first visit.
In order to establish a consumer base, they plan to initiate a promotional campaign during the first month of operation. This campaign will be geared toward the entire target market with the incentive that if someone brings a friend, he or she can buy two, one-year memberships for the price of one. They will also facilitate this promotion by launching an advertisement campaign using a large banner on the front of the Average Pim's Gym Health and Fitness Club to introduce the idea and local advertising in the newspaper to broadcast it. This campaign will foster word-of- mouth and bring-a-friend types of advertising, which is very cost-efficient.
To meet the challenge of establishing a consumer base of 2,000 from the baby boomers' segment of the market, they will target them specifically with some promotions and programs. They plan to initiate exercise and aerobic programs geared only toward them because people enjoy exercising with people their own age. There are also plans to promote social gatherings like holiday parties on their behalf to foster friendships. Finally, they plan to conduct a market research survey targeted at customers. The aim of these surveys will be specific to their needs and wants, in order to help generate ideas and solutions to increase the consumer base and service level.
5. Do you think that they have missed anything important in their marketing strategies