1. Positioning Strategy
For mothers of teenage children who prioritise their teenager’s health,
WellTeens is a health and fitness solution providing a more holistic approach
to your child’s health than our competitors. WellTeens delivers the opportunity
for your teenager to engage in fun physical activity and learn valuable
information about nutrition and their wellbeing.
2. Product/Service Market Offering
a. Nature of the offer
• The product is a people-focused service, meaning it is intangible.
• The product is teenage fitness classes focusing on exercise and
education, meeting the target markets need of health and fitness for
their children.
b. Level
• The core product is health and fitness for teenagers.
• The actual product is classes comprising of age-appropriate exercise
and nutrition and wellness education.
• The augmented products are associated products offered by
Atmosphere, including other classes and personal training.
• Other businesses in the Atmosphere complex are also augmented
products, including swimming lessons at Nepean Aquatic Centre and
healthy food options at Nutrition Station.
c. Type
• WellTeens classes are a consumer product.
• As the product is associated with a gym membership, it is considered a
heterogeneous shopping product. This is because consumers often
shop around between competitors for gym memberships and fitness
classes, and the features of each are highly variable (Lamb et al.
2018).
d. Unique selling proposition
• WellTeens source of competitive advantage is differentiation.
• Although other gyms in the area offer classes for children, these are
exercise-based only. An example of this is Fit4Kidz run at Fit4All, one
of the closest gyms to Atmosphere (Fit4All 2022).
• Atmosphere provides a point of difference by including nutrition and
wellness education alongside physical activity.
e. Recommendations
• The classes have been branded “WellTeens” a short, succinct name
that hints at what the program is about.
• The sign-up process is paperless, in line with sustainability goals, with
confirmations and contracts being sent to the customer via email.
• Whilst the product is intangible, the purchase portal on the website will
provide a description of the membership and class and provide
warnings relating to seeking health advice before undertaking an
exercise program.
f. People
• Atmosphere currently employs six personal trainers with varying skill
sets. Existing trainers will be upskilled in both children’s fitness and
nutrition.
• Training in relevant areas will be undertaken as part of professional
development to maintain personal training registration (Fitness
Australia 2022). In addition, basic customer service training will be
provided.
• As demand for the classes increases, new trainers will be recruited to
undertake additional classes.
• The reception staff will ask probing questions to identify and upsell
teenage memberships when speaking to prospective customers. Staff
information sessions will occur to internally sell the program’s benefits
to allow staff to sell to consumers.
g. Processes
• The equipment set-up for each class will occur 15 minutes before the
commencement time. During this time, participants are welcome to
enter the room to get ready for the class and select a workstation.
• Pack down, and cleaning will occur after class participants have left the
room and before the commencement of the next class.
• Atmosphere will provide all equipment. Memberships will be processed
using existing membership software.
h. Physical evidence
Location
• Classes will be
• held indoors and outdoors in Atmosphere’s existing facilities.
• The fitness room will have chairs added to the storage space, along
with notebooks and pens for the wellness aspect of the class.
• In keeping with Atmosphere’s current branding, the fitness room will
remain with Atmosphere branding only. WellTeens branding will
instead be used in uniforms and messaging.
Staff uniform
• Staff will wear a specially branded shirt with WellTeens branding when
running classes.
Messaging
• Messaging relating to the classes will be displayed on digital signage
within the gym. This allows messaging to be easily seen by patrons
and visitors to the gym, particularly in the reception area.
3. Price
Pricing objectives
• The price goal of WellTeens classes is to maintain status-quo pricing for
teenage members, increasing membership sales through the attractiveness of
the classes.
• Atmosphere’s teenage memberships are currently $24 per week (Atmosphere
Health & Fitness 2022).
• A status quo pricing is appropriate due to the amount of competition in the
fitness industry in Penrith and the region’s demographics. With many lowincome earners (Australian Bureau of Statistics 2016), pricing well above
competitors could result in them seeking a cheaper solution.
• The fitness industry can most closely be described as an oligopoly (Gladkova,
Kazantseva & Zenkevich 2014). This means that status-quo pricing methods
are appropriate in this instance.
Demand and Costs
• Demand for the classes is forecast to sit at 15 participants per class,
increasing as awareness grows. The class capacity is thirty participants.
• It is anticipated that each participant will attend 2 – 3 times a week, meaning
there are approximately 90-180 unique participants weekly.
• The main cost associated with the class is the personal trainer’s salary. The
average hourly rate is $31 per hour (Australian College of Fitness & Bodywork
2020). Each class requires one hour of preparation, one hour of class time,
and thirty minutes of packing down – a total cost of $77.50. This is a fixed cost
that will apply regardless of the number of participants.
• Marketing costs are forecast to be $5,000, including the launch event and
appearance fee for Jessica Fox, pamphlets, uniforms, and digital signage.
This is also a fixed cost.
• There is a variable cost of supplying notebooks and pencils, which will require
an initial outlay of $500. Stock will be replenished as necessary.
• Classes are being held in existing facilities with existing equipment, meaning
there are no additional initial outlays to run the classes.
• The main competition, Fit4All, charges $22 per week for their children’s
classes (Fit4All 2022). Atmosphere’s pricing is within the same price range.
4. Placement/distribution
• Atmosphere will distribute the product directly to the end-user. There is no
intermediary in the selling process, although a third party software is used for
membership purchase. Memberships can be purchased online directly
through Atmosphere using the Perfect Gym Solution software (Atmosphere
2022). Customers can also purchase memberships in person at the gym.
• Class bookings can be made up to a week in advance using the Perfect Gym
Solution software. This allows for the capacity to be managed and waitlists
established if necessary. Customers can also cancel classes, allowing the
spot to be filled by another customer.
• Although the product is a shopping product, exclusive distribution will apply
due to the product only being available in Atmosphere’s flagship location.
5. Promotion/Marketing communications
• The target market for marketing communications is female parents/carers of
children aged 13-17 living in the Penrith local government area.
• The main goal of integrated marketing communications is to inform the target
audience about Atmosphere’s new product offering.
• As there are other teenage fitness options in the market, informing the target
market about the benefits WellTeens provides is required.
• Messaging will focus on a one-sentence slogan, ‘WellTeens by Atmosphere
Health and Fitness – empowering healthy, happy teenagers.’
• All messaging will include the slogan, and differing levels of information will be
included with the slogan depending on the medium.
• Direct marketing will include social media posts containing the slogan, a brief
description of the product, and a graphic will be posted by Atmosphere Health
& Fitness and other businesses in their complex (Nepean Aquatic Centre).
These will be paid sponsored advertisements to reach the target market.
• Tri-fold brochures will be provided to local high schools and businesses and
available in the gym. The brochures will include a token for a free trial class.
The brochure locations are places frequented by the target market.
• Personal selling will be utilised in the gym and the forecourt outside the
Atmosphere Signature venue. These will be one-on-one interactions, allowing
staff to sell the benefits to consumers. The use of the forecourt allows
Atmosphere to engage with members of the target market who are not current
members of the gym.
• A launch event will be held at Atmosphere for members and the local
community, including trial classes and competitions to win prizes. Atmosphere
member and Olympic gold medallist Jessica Fox will make a special
appearance.
References
Atmosphere Health & Fitness 2022a, Memberships, viewed 10 April 2022,
<https://www.atmospherefitness.com.au/memberships/>.
–2022b, Atmosphere Health & Fitness Membership Portal, viewed 17 April 2022, <
https://atmospherefitness.perfectgym.com.au/ClientPortal2/#/Registration?id=c81226
05-42a7-45ce-9028-b7397aafe9c0>.
Australian Bureau of Statistics 2016, 2016 Census quickstats, viewed 13 April 2022,
<https://quickstats.censusdata.abs.gov.au/census_services/getproduct/census/2016/
quickstat/LGA16350>.
Australian College of Fitness & Bodywork 2020, How much does a personal trainer
earn?, viewed 13 April 2022, < https://acfb.edu.au/how-much-does-a-personaltrainer-earn/>.
Fit4All 2022, Kids Fitness Classes, viewed 13 April 2022, <
https://www.fit4all.com.au/classes>.
Fitness Australia 2022, Children | adolescents, viewed 11 April 2022,
<https://fitness.org.au/courses/category/children-adolescents/51>.
Gladkova, MA, Kazantseva, MA & Zenkovich, NA 2014, ‘Quality level choice model
under oligopoly competition in a fitness service market’, Contributions to game
theory and management, vol. 7, pp. 61-80.
Lamb, CW, Hair, JF, McDaniel, C, Summers, J & Gardiner, M 2018, MKTG4, 4dn,
Cengage Learning Australia Pty Ltd, Victoria.