*Phase 2 Fitness Center*

Allen Goldschmidt loves exercise and fitness. At age 42 he surviveda cardiac scare in which doctors first believed a heart attack hadtaken place. Even though subsequent tests determined such was notthe case, Allen was told that being overweight and in poor physicalcondition might at some point lead to an actual episode. Inresponse, he moved from a sedentary lifestyle to an activity-basedapproach to keeping trim and healthy.

After several months of developing his own program with the help ofa fitness trainer, an opportunity arose. Allen was able to purchasea fitness center from an individual who was moving out of town andwanted to sell as much of the business intact as possible.

Allen and his trainer created a system that they named Phase 2.Their idea was that Phase 1 was an under-represented aspect ofstaying healthy: diet and lifestyle. They designed a program thatencouraged members and visitors to eat right (low sugar, low salt,low fat, low calorie) but also to sleep in regular cycles and takesteps to avoid the effects of stress, which can lead to other badhabits, such as alcohol abuse.

Phase 2 would be the fitness aspect. The center would provide bothindividual training and group activities including Zumba and otherexercise programs. Customers could create individually tailoredprograms for special events, such as marathon training or gettinginto a smaller sized dress or suit for a class reunion. Groupactivities would stress socialization and having fun as parts ofgetting fit.

The building Allen purchased contained a walking track, a swimmingpool, and a wide variety of exercise equipment including freeweights, weight training machines, treadmills, and more specificdevices such as Stairmasters. A dining area was added to servesnacks and light meals but also to provide a location for cookingclasses to be taught by experts in quality nutrition.

Allen was aware of the competition in his area. A Gold’s Gymoperated in the same city, as did a Curves, which focused onattracting women to a 30-minute workout program. He believed hiscombination of Phase 1 and Phase 2 would make it possible to standout from the competition. He hired a local advertising andpromotions company to help him find the right mix of people tobecome regular clients.

4-43. Explain each of the types of research presented in thechapter in terms of the Phase 2 Fitness Center. Which would yourecommend? Why?

4-44. Discuss the potential consumer market segments that Phase 2Fitness Center could serve using the information on consumersegmentation. Which segment or segments would you recommend?Why?

4-45. Are there any business-to-business segmentation opportunitiespresent? Why or why not? (ANswer this must)

4-46. What positioning approach would be most valuable to the Phase2 Fitness Center? Defend your answer.

4-47. Explain the most viable marketing communications objectivesfor the opening of the Phase 2 Fitness Center. Then note how thoseobjectives might change over time.


***Note 1: "4-45. Are there any business-to-business segmentationopportunities present? Why or why not?" This question must need tobe answered.

****Note 2: Do not follow the previous answers. Need a new type ofanswer.