Research has found that today’s organizations are moving towards target marketing. Segmentation, targeting and positioning are the three main steps in target marketing. (Kotler, Brown, Burton, Deans and Armstrong, 2010) The article aims to explain what market positioning is and how Genesis fitness club positions their services, by analyzing their positioning strategy from three interrelated subcomponents——Customer targets, competitor targets and competitive advantage (Brooksbank, 1994; Blankson & Crawford, 2012).
Positioning, by its definition, “Product position is the way the product is defined by consumers on important attributes——the place the product occupies in consumers’ minds relative to competing products.” (Kotler, et al., 2010) As it is said, consumers decide where the product position is, “but marketers do not want to leave their products’ positions to chance” (Kotler, et al., 2010). Therefore the organisation must plan “which ‘position’ it wants to occupy in those segments” (Kotler, et al., 2010) before consumers do, a positioning strategy will help them do so.
Berwick is a scenic old town in Victoria, far away from Melbourne city. People living here are mainly the aged and medium to high income family. Genesis is a national chain gymnasium, in different parts of Australia, as the nearby condition, segmentation and targeting are different, the target segments of the Genesis Fitness Club will be slightly different. (Genesis Fitness Club [Genesis], 1997)
Customer targets, competitor targets and competitive advantage have been suggested to be the three interrelated subcomponents of the positioning strategy, and Figure 1 shows a formulation of the positioning strategy (Brooksbank, 1994; Blankson & Crawford, 2012). Therefore, the position strategy of the Genesis’s services will be made based on these three subcomponents.
Figure 1 (Roger, 1994)
Select customer targets
First of all, select the customer targets, according to one of the employees, Rachelle’s description, “we are a fitness club for everybody” and they focus on four main segments: Mom & Kids, the aged, People seeking effective weight loss program and body builders. (Genesis, 1997) Theses customer targets are reasonable based on the Berwick town’s status. The reasons they are chosen and variables are listed below:
This is one of the two greatest populations in Berwick.
Variables of the target segmentation: senior, low-stamina, children not around, high-quality lifestyle, health-conscious.
Mom & Kids
This is one of the most common groups in segmentation in this 21st century. (Coffey, Siegel & Livingston, 2006) Variables of the target segmentation: mom and children; mom: retrieve the body before the kids, searching for tips to be better moms, require communications with other moms, free time without kids around (Coffey et al., 2006); kids: need to be taken care of, looking for friends to play with when mom is not around.
People seeking effective weight loss program
This is a common segment in every gym.
Variables of the target segmentation: mainly zofticzoftick, focus on the appearance; may have some sense of shame, in hence, psychological guidance may be required during the exercises.
High-population segmentation, especially when there are mainly medium to high income family around Berwick. Variables of the target segmentation: mainly male, focus on the appearance, regular customers, require heavy equipments and classes.
Select competitor target
Secondly, select the competitor target. In this issue, the competitor targets can be all of the gymnasiums near Berwick town (approximately within 8 km) According to the Berwick Gym Directory, there are four other gymnasiums around the town. Their details (features, especially those could compete with Genesis) are listed below (including Genesis,...