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40 Plus Health Clubs 

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The company 40 Plus Health Clubs Queanbeyan offers gym services for individuals who are over 40 years old and are also willing to adopt a healthier lifestyle as long as their comfort requirements are satisfied. For many years, the programs of this company have been general, featuring cases catered for the elderly such as arthritis, diabetes, and obesity. It features special offers now and then, whereby the gym offers members an opportunity for a one on one training with a personal trainer. The company has had the objective of diversifying its services in ways that will help it improve its competitive advantage over other workout facilities in the region. For this reason, it has now decided to introduce a new program that will complement the already available programs by being specially formulated for individuals aged 40 and over.

Customer Market Analysis

The company seeks to improve its competitive advantage over other companies operating within the adult gym and clubs segment in Queanbeyan, Australia. This segment will target the older population within the gym industry. The reason why it will target consumers in such a small region is that the gym is still small and not fully established. It is still at the start up stages, meaning that it does not have the financial power to compete with more established companies or expand into other regions. The targeted individuals are both male and female. In part because both genders reach a point in life where they feel tired of engaging in heavy workouts (Boehm et al. , 2013). Also, the targeted individuals should preferably have a family as this increases the chances that even the other family members will join; encouraging the gym membership features packages for families or couples. The financial background of these individuals should be stable and above average. Most people perceive gym membership subscriptions to be a luxury. Subsequently, the targeted group does not feature people who are not yet established financially as they will choose other needs over the gym membership (Christian et al. , 2016).

Also, the target group features those who have high regard for their health and keeping fit. The individuals should understand how exercising improves their health as they age, thereby preventing the occurrence of various age-related illnesses (Duncan et al. , 2012). If the individuals perceive exercising as a necessity, they will most likely pay for the membership without complaining. Competitive market analysis To better understand the competitive nature of the market, it is essential to consider the microenvironment of this company using Porter’s five forces analysis. The companies which supply products for 40 Plus Health Clubs features fitness machine and equipment companies. The rise in technological innovations has led to the development of many companies which can offer a series of various machinery and equipment or various types of workouts. Hence, this company will always have a variety of suppliers to choose from whenever it needs to make a purchase. Unfortunately, despite the high number of suppliers, they have also realized that the need for this equipment is high. Also, they tend to know the availability of given products in the market thereby determining whether the product has been duplicated or copied by others or not. Some of the latest introductions such as the Chi Machines have not. Hence, the suppliers tend to use this as an opportunity for increasing product prices since they know that there are no cheaper alternatives.

Typically, the individuals who go to the gym for workouts have no power concerning the price of packages and programs. The reason for this is because the targeted population generally features individuals with well-paying and secured job positions. Also, the individuals who need the services are many with varying preferences (Veal, 2011). Also, the fact that most gyms feature the same prices places the company at an advantage since 40 Plus Health Clubs features offer the elderly a private place to exercise without the discomfort of having to struggle in front of the younger generation.

In the gym industry in this region of Australia, competition is very stiff. Most gyms and clubs are looking for new ways every day to assist them in gaining a competitive advantage over others. Besides, some individuals already own their private gyms. The current top competitors for 40 Plus Health Clubs include; Fortitude Human Performance, F45 Training, and Gym Victus. These gyms have unique membership programs and customer offers and are also well equipped regarding machines. A challenge for 40 Plus Health Clubs is that there is no practical approach to differentiate the gym products. People usually choose to go to the gyms so that they can exercise and use the expensive machines that they cannot afford to purchase and use in the comfort of their homes. Almost all gyms purchase newly released products and add them to their programs. Hence, the only possible mode of differentiation is through product pricing.

The availability of less expensive modes of working out presents a high threat of substitution. For instance, instead of paying gym members to go and walk or run on their treadmills, many prefer to wake up early and go for a run in the neighborhood (Mitchell et al. , 2014). Also, some individuals purchase the cheaper weights so that they can use them at home. Therefore, it is highly likely that many will see no need to join the gym and part with much money yet they can do all the possible exercises while at home for free. The presence of the private clubs and league sports are also a threat of substitution for this company. The gym industry does not have excess barriers to new entry. As a result, a high threat of new entrants is a possibility. The only possible barrier is the presence of a modest cost barrier which has so far been ineffective in preventing new companies from sprouting up in the region. Additionally, the industry features a low product differentiation and the presence of limited legal barriers which do not make it difficult for new gym companies. External Market Environment. Using the PESTEL analysis, the macro environment for the 40 Plus Health Clubs will complete the evaluation. Various campaigns have already been launched by the Australian government to increase physical awareness of the people. For instance, there is the “get set for life,” “swap it, don’t stop it” and “how do you measure up. ” (Eime et al. , 2015). These campaigns encourage the society to consider working out as it is one of the best and surest ways of leading a healthy lifestyle. This approach benefits the gym as more individuals who become aware of the campaigns will sign up for sessions. The operational cost of 40 Plus Health Clubs are mainly the rising electrical bills, water bills, and employee wages. Most trainers today are asking for more pay as there is an increased interest in trainers. Fortunately, these factors can be controlled through the signing of contracts and considering cost-cutting ways where possible. For example, if it is during the day, the gym can use the natural sunlight rather than depending on the electricity for lighting. Another economic impact is based on the fact that gym membership is often perceived as a luxury and not a basic need (Zubala et al. , 2017). Therefore, most middle and lower class individuals will not head to the gym. The 40 Plus Health Clubs offers various group workouts which encourages the members also to socialize and make new friends in the process.

The increased population growth and the many residential homes being constructed increase the number of possible subscribers, thereby leading to cheaper membership deals (Zapata-Diomedi & Veerman, 2016). Many individuals are also enjoying improved living standards, thereby making it easier for them to afford the gym rates (Apostolou, 2011). Through the membership subscriptions, individuals get the opportunity for enjoying value or their money. Technology is the primary reason why this company can now introduce the new program. Initially, there were no machines to assist individuals in working out. Currently, even more, machines are being released, others which feature an improved version of the already available designs. This trend shows that the future is expected to feature even better equipment and machinery that are also more user-friendly compared to those of today. Also, the fact that a new trend of going green has taken over the society ensures that greener products are released. There will be more machines which use green technology, compared to electricity. Various rules and regulations control the Australian fitness industry. For example, the health and safety regulations ensure that users of various equipment are informed and educated on various precautions to take (Eime et al. , 2015). Also, the gyms are expected to ensure that their members are dressed accordingly to minimize the dangers of an accident. If a company does not adhere to these rules, it risks losing its practice license in the region and country.

SWOT analysis

The 40 Plus Health Clubs has employed trainers who are highly skilled and knowledgeable. They can work with members thereby enabling them to achieve their fitness goals. Also, the company has strength in the sense that it has many programs to fit the varying needs of all its customers. The newly proposed program is bound to work toward diversifying the services offered, thereby making it more competitive in the market (Parkinson, David & Rundle, 2017). When compared to other gyms in the region, this company has a unique offering in the sense that it provides a comfortable work out atmosphere for the elderly. The main weakness experienced by this company relates to how services are considered a luxury, rather than a necessity.

As a result, the expected customers do not end up signing up and paying for membership. Second, the gym does not have enough personal trainers, yet many individuals need personalized assistance as they work out.An excellent opportunity for this company is the fact that the customer market is growing drastically because of the health awareness efforts by the government. Also, the fact that more individuals are becoming financially stable or independent supports this opportunity (Bennie et al. , 2016). Unfortunately, there are a series of threats which may hinder this company from achieving the set goals. The economic crisis that is still challenging the country also ends up impacting the small businesses, such as the 40 Plus Health Clubs. Also, the larger, adequately established gym businesses present stiff competition for this company.

Marketing strategy

Target Market

The target market features individuals who are 40 years and older. Also, they can be either male or female and possess a strong belief in gym workouts as a way to achieve their goals (Parkinson, David & Rundle, 2017). The people who are financially stable and independent are the primary targets as they can pay the memberships without an issue. Consequently, the gym targets habitual buyers so that memberships can be renewed immediately after expiry.


The product marketed is the new program referred to as “Machine Guided Exercise. ” It features the use of Sun Ancon Chi Machines to make working out more manageable for the elderly (Eime et al. , 2015). These machines feature ankle cradles that oscillate at approximately 140 a minute. The movement encourages a pulse rate of 72 and a cerebrospinal pump rhythm of 12. It synchronizes the heart rate, blood pressure, and spinal alignment, thereby improving the overall health of an individual. Place The service offered will be in the gym located in Queanbeyan. Currently, this is the only current location, as the company is yet to expand to other regions. Promotion The promotional mix of strategies that will be employed feature message and social media strategies. The message which the company seeks to pass on will be in line with a new product launch by the company. It will show that the 40 Plus Health Clubs is a company which cares for its customers and is best even for the elderly as with their physical challenges considered. The media to be used will include; newspapers, televisions, and the social media. Personal selling and internet promotion will also be used as the target market is expected to be more involved here as a result of technology.


The new product will cost $11 per week. However, for every new member, a beginner fee of $50 will be required. This price considers the fact that the company seeks to achieve a 40% market share. The price is much lower than what the competitors offer, a minimum of $15. The pricing strategy used is the value-based system because machines do not get exhausted after a single use (Bennie et al. , 2016). Also, the price used as the market entry strategy will enable the company to gain a competitive advantage over others. Implementation and control

For successful implementation of this plan, the product must be launched publicly. The company must inform the public of new programs and benefits. After this, then an analysis of the effectiveness can be measured. Any new application made relating to the program will be identified, and a weekly summary completed. If there is an influx of new memberships, it will be clear that the plan was effective. However, if there are no new memberships, then the marketing plan will have to be revisited and improved. This company expects a sales revenue of $200,000. The budget to start up this new service will be AU$400,000 as one chi machine cost approximately AU$678. 30. The budget for promotion activities will be AU$2,000.

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