Crossfit Marketing Plan
3.7.2 Price
In the pro-shop, prices are based on the wholesale price that CrossFit Extreme obtains and MSRP. There is little room for differentiation in the pro-shop pricing. The services CrossFit Extreme provides are priced in a variable and tiered way. The tiers are based on number of gym visits per week as well as the length of contract signed. (Bronze-1 time per week, Silver- 2 times per week, Gold- 3times per week, and Platinum- unlimited). All membership prices include free yoga, quarterly coaching support, and nutrition coaching. Discounts are offered to the staff’s friends and family, students, teachers, and military personnel. Pricing is also seasonal and summer discounts are offered as it’s the slowest season for gym memberships. CrossFit Extreme’s pricing model is competitive, yet we strive for low cost. The average cost of membership is $115 per month. Additionally CrossFit Extreme offers a daily drop in rate of $20 per day.
3.7.3 Place
CrossFit Extreme is a single-location in a warehouse space off of Federal and 120th avenue in Westminster Colorado. Being located right off of Interstate 25 and Highway 36, provides easy access to our customers. Parking is not a concern as we have ample …show more content…
parking space that is free and does not require permits, unlike other locations in the Denver Metro area.
3.7.4 Promotion
CrossFit Extreme will increase customer awareness with multiple internet-based methods.
The gym will be listed on the official CrossFit Affiliation website, and will display on Google Places with a simple search. CrossFit Extreme is also listed on Yelp and other review-based websites. Social media is an indispensable tool: CrossFit Extreme has Facebook, Twitter, and Instagram pages all connected to clients and staff. CrossFit Extreme does not need to pay for advertising on TV. Instead CrossFit Extreme physical signage at the gym, reputation and word of mouth, and visible presence at local CrossFit competitions will be great promotional tools. At CrossFit Extreme we will also use media such as Living Social and Groupon to offer discounts and attract new
clientele.
3.8 Marketing Research
The area of Westminster Colorado that CrossFit Extreme is locating in is not overly saturated in fitness options, which is a great advantage. There are three other CrossFit gyms nearby, but CrossFit Extreme’s lower prices will be much more attractive to the budget conscious consumer.
The median household income in Westminster Colorado is $64,712, which is higher than the Colorado average of $58,244 (www.areavibes.com). In addition the cost of living in Westminster is 1% higher than the Colorado average but still lower than the Denver average . This demographic will appreciate a CrossFit gym with lower prices.
The growth rate of gym memberships continues to grow, especially with recent marketing campaigns aimed at fighting obesity and improving health. Gym memberships will continue to grow which will be positive for the growth and development of CrossFit Extreme. As seen in the figure below from Statista, there has been a steady increase in gym memberships since 2000.
In the pro-shop, prices are based on the wholesale price that CrossFit Extreme obtains and MSRP. There is little room for differentiation in the pro-shop pricing. The services CrossFit Extreme provides are priced in a variable and tiered way. The tiers are based on number of gym visits per week as well as the length of contract signed. (Bronze-1 time per week, Silver- 2 times per week, Gold- 3times per week, and Platinum- unlimited). All membership prices include free yoga, quarterly coaching support, and nutrition coaching. Discounts are offered to the staff’s friends and family, students, teachers, and military personnel. Pricing is also seasonal and summer discounts are offered as it’s the slowest season for gym memberships. CrossFit Extreme’s pricing model is competitive, yet we strive for low cost. The average cost of membership is $115 per month. Additionally CrossFit Extreme offers a daily drop in rate of $20 per day.
3.7.3 Place
CrossFit Extreme is a single-location in a warehouse space off of Federal and 120th avenue in Westminster Colorado. Being located right off of Interstate 25 and Highway 36, provides easy access to our customers. Parking is not a concern as we have ample …show more content…
parking space that is free and does not require permits, unlike other locations in the Denver Metro area.
3.7.4 Promotion
CrossFit Extreme will increase customer awareness with multiple internet-based methods.
The gym will be listed on the official CrossFit Affiliation website, and will display on Google Places with a simple search. CrossFit Extreme is also listed on Yelp and other review-based websites. Social media is an indispensable tool: CrossFit Extreme has Facebook, Twitter, and Instagram pages all connected to clients and staff. CrossFit Extreme does not need to pay for advertising on TV. Instead CrossFit Extreme physical signage at the gym, reputation and word of mouth, and visible presence at local CrossFit competitions will be great promotional tools. At CrossFit Extreme we will also use media such as Living Social and Groupon to offer discounts and attract new
clientele.
3.8 Marketing Research
The area of Westminster Colorado that CrossFit Extreme is locating in is not overly saturated in fitness options, which is a great advantage. There are three other CrossFit gyms nearby, but CrossFit Extreme’s lower prices will be much more attractive to the budget conscious consumer.
The median household income in Westminster Colorado is $64,712, which is higher than the Colorado average of $58,244 (www.areavibes.com). In addition the cost of living in Westminster is 1% higher than the Colorado average but still lower than the Denver average . This demographic will appreciate a CrossFit gym with lower prices.
The growth rate of gym memberships continues to grow, especially with recent marketing campaigns aimed at fighting obesity and improving health. Gym memberships will continue to grow which will be positive for the growth and development of CrossFit Extreme. As seen in the figure below from Statista, there has been a steady increase in gym memberships since 2000.