Marketing Plan Draft 1

Draft I: Mission, Goals, and Objectives / Situation Assessment

The conception of your marketing plan begins with starting a business or organization. Your
group will decide what type of business it wants to use for a marketing plan. You may create
your own business, or you may use an existing business. It needs to be a business or organization
that your group is interested in. The plan summary and introduction should tell me everything
that I need to know about your business in order to follow the rest of your marketing plan. Your
introduction of the plan should begin with:
Organization Mission, Goals, and Objectives
o Strategic Obvjectives: Healthier Americans, reduced health disparities, and a
stronger public health capacity (pa1eng.gif www.tbs-sct.gc.ca)
Vision
o
Planet Fitness,
o We at Planet Fitness are here to provide a unique environment in which anyone
and we mean anyone can be comfortable. A diverse, Judgement Free Zone
where a lasting, active lifestyle can be built. Our product is a tool, a means to an
end; not a brand name or a mold-maker, but a tool that can be used by anyone. In
the end, its all about you. As we evolve and educate ourselves, we will seek to
perfect this safe, energetic environment, where everyone feels accepted and
respected. We are not here to kiss your butt, only to kick it if thats what you
need. We need you, because face it, our planet wouldnt be the same without you.
You belong!
o History: The fitness club was founded in 1992, when Michael Grondahl acquired
a financially struggling gym and dramatically reduced prices to compete against
better-known brands. The low-cost business model focuses on the needs of
occasional or first-time health club members rather than more experienced
members. There are eleven corporately owned gyms, with the rest being
independently owned and operated.[4] The franchise is concentrated mostly in the
Northeast, but it is a nationwide franchise.[5] The Franchise has been added to the
Inc. 500 list.[6] Every first Monday of the month, Planet Fitness holds a Pizza
Night at all of its franchises. [7] They also hold a bagel morning on the second
Tuesday of the month, and Tootsie Rolls are available at all times.
o Goals: Larger exercising, health clubs industry portion.
Situation Assessment
o Climate
Political and Legal
Economic
Social and Cultural
TOP HEALTH CLUB TRENDS FOR 2012 IHRSA, The
International Health, Racquet & Sportsclub Association has
announced its annual list of Health Club Trends for 2012. By
working with its global membership base of over 10,000 club and
fitness businesses, examining industry research, and monitoring
consumer fitness behaviors, IHRSA has identified the most
significant trends health club goers will see over the next 12
months.
Trend 1: More People Working Out in Clubs
While only 16% of the American population currently belongs to a
health club, membership has increased more than 10% over the
past three years to over 50.2 million members, despite the poor
economy. With an improved economic outlook, clubs across the
country are gearing up for more demand than theyve seen in
years.
According to results from the Physical Activity Councils (PAC)
annual participation study, over three out of 10 Americans plan to
increase spending in joining or re-joining a health club. Also,
IBISWorld reports that the demand for gyms and health and fitness
clubs will continue to rise over the next five years, as the general
public becomes more health-conscious and the aging population
places a greater emphasis on staying fit. Additionally, in an effort
to protect and promote further industry growth, IHRSA is
extremely active working in state capitals and Washington, DC
promoting legislation that would create incentives for exercise.
This increase in membership is good news as it allows clubs to
expand their offerings, suppliers to design and create new
equipment, and more professionals to be attracted to careers in
fitness.
Trends 2 and 3: Exercise is not one-size-fits-all. Clubs are
providing age-appropriate and/or population specific
programming.
Trend 2: Specific Programming and Certifications for Baby
Boomers
Baby Boomers want to age well, and they are exercising for more
energy and the ability to work and play longer. As people age,
strength, balance and functional training become even more
important, so the trend is that clubs are providing specialized
programming and trainers that are specifically trained and certified
to work with older adults. Since Baby Boomers are the fastest
growing segment of the population, and they often have the time,
finances and the motivation to exercise, this trend will only grow
stronger over the foreseeable future.
Another corollary trend is that club goers will see more Baby
Boomers and retirees as club employees and fitness professionals,
as this group, already concerned with staying healthy and
physically fit will be moving into this second-life career both to
supplement income and to keep active.
Trend 3: Youth Programming
Health club members under the age of 18 grew from 3.8 million in
2007 to 6.1 million in 2010. The demand for sports-specific
training for children from elementary school on up continues to be
popular as this training helps boost attitude and confidence in all
areas of life, whether the child becomes a superior athlete or is
simply more comfortable in gym class or speaking up in math
class. And, due to the obesity epidemic among children, the White
Houses focus on childrens fitness through Lets Move!,
combined with the continuing lack of structured physical education
in schools, more training programs and equipment will continue to
be designed around childrens unique fitness needs.
Trend 4: Social Exercise
Socially based exercise is up. People want to have fun while
working out, they want to experience great music, learn new
moves that can be incorporated into life outside the club, and they
want to share the group high not offered by a lone treadmill.
Therefore, more clubs are offering group exercise (of all kinds)
than ever before. Based on IHRSAs Member Census of 3,024
IHRSA member clubs, group cycling and boot-camp style
programs are still popular, and group strength-training classes are
still increasing. Again this year, Latin dance and nightclub-inspired
workouts are appearing everywhere, generating a passion for
aerobic dance not seen since the eighties. Also fusion classes that
combine yoga, Pilates, ballet, dance and even surfing continue to
grow in popularity, especially in metropolitan areas where trendy
gyms strive to offer the newest, most unique exercise experiences.
Trend 5: Small Group Personal Training
In 1999, 4 million Americans were using personal trainers. Now
that number hovers around 6.5 million. Over 91% of the IHRSA
clubs surveyed offer personal training, however the growth in
training has not come from one-on-one training but small group
personal training or SGPT. SGPT offers the benefits and
motivation of personal training combined with more fun and less
expense. Reasons behind the explosion in SGPT programming are
obvious, as SGPT is more economical for the consumer, more
efficient for the club and trainer and offers the group experience
high mentioned in Trend #4.
Trend 7: Convenient Fitness Options
As everyone knows, time is our most valuable asset. Gyms and
fitness professionals have grasped the concept that everyone only
has 24-hours in a day, and that a gym visit is not the only to-do on
most peoples calendars and are therefore providing more
convenient exercise options.
First, the explosion of health clubs that are open 24-hours from a
couple hundred 5-years ago to over 2,000 today is the direct result
of gym operators and franchisors responding to the needs of people
in smaller towns that need access to quality fitness around the
clock. Also, many larger multi-purpose clubs are opening express
locations as a way to provide members with a quicker, get in, get
exercising and get on with life option. Second, most gyms and
fitness professionals are advising that shorter workouts of 30
minutes or less can be just as effective as longer ones.

Trend 9: Body Weight Exercise
Suspension and gravity training is a popular trend with body-
weight leverage equipment a must-have in many gyms. This was
unseen up until a few years ago and is most likely due to the fact
that functional fitness training has moved beyond the trend stage
and is simply one of the driving forces for many of the 52 million
current health club members.
Trend 10: Physician Prescribed Exercise
As the population ages, obesity rates rise, and healthcare costs
increase; health clubs more and more become an answer to our
nations health crisis. While doctors write more than 3.4 billion
prescriptions per year and mention medications during more than
70% of office visits, physicians are just beginning to prescribe the
real wonder drug exercise. For 2012 and beyond, physicians
and healthcare professionals will prescribe exercise at increasing
rates and health insurance providers will structure more of their
programs to reward healthy lifestyle habits.
Tried & True
While trends are interesting, it is important to note that tried and
true exercise never goes out of style. The top 10 health club
activities per IHRSAs member census of 3,024 North American
clubs are:
#10 stair-climbing machines
#9 yoga
#8 low impact aerobics
#7 stationary cycling
#6 abdominal machines
#5 stretching
#4 elliptical trainers
#3 resistance machines
#2 treadmills
#1 free weights (hand weights, dumbbells and barbells)
Data for the 2012 IHRSA Trend List is derived from the following
IHRSA Research:
The Economic Benefits of Regular Exercise
The Health Club Consumer report
The IHRSA Trend Report: 2011 Quarter 3 Executive Summary
(prepared by the Leisure Trends Group)
IHRSAs annual Industry Data Survey (Profiles of Success)
For click here for the 2011 Trends.
About IHRSA
The International Health, Racquet & Sportsclub Association
(IHRSA) is the trade association representing health and fitness
facilities, gyms, spas, racquet and sports clubs, and suppliers
worldwide. IHRSA and its members are dedicated to making the
world healthier through regular exercise and fitness promotion.
IHRSA is the recognized leader on health club industry research.
IHRSAs annual reports provide a comprehensive, country-specific
overview of the key fitness industry markets worldwide as well as
a detailed view of the overall global market. IHRSA also tracks
U.S. industry trends on club performance, consumer behavior, and
employee compensation practices. IHRSA and the health club
industry will convene in Los Angeles, California from March 14-
17, 2012 for IHRSAs 31st Annual Convention & Trade Show.
Find an IHRSA club at healthclubs.com.
Technological
Trend 6: Technology
Whether you want to track your mileage, speed, number of workouts,
calorie burn, or strength level, there is an app for that. New technology,
whether on a hand-held device, or incorporated into the clubs equipment
is not only keeping club-goers motivated by providing interactive workout
programs and tracking the effectiveness of the workouts, but it is helping
exercisers avoid injury and burn-out by providing tools that let the
exerciser know how far, fast or hard is too much. Popular technology
includes gadgets that track mileage via GPS, calorie burn, heart rate,
exertion, and specific workouts.
Needs Assessment
Competition: (PE) or (PEST)
(E) Trend 8: Corporate Wellness Benefits
According to The Economic Benefits of Regular Exercise, an IHRSA
publication, researchers have found that the return on investment among
companies that offer wellness benefits ranges from $1.49 to $13 for every
dollar invested. Wellness-oriented services in both the health club and the
workplace are proven to help address consumer health goals, reduce the
impact of obesity rates, and improve business profitability. Employers,
both large and small are focusing on and benefitting from investments in
employee health. Employers are increasingly aware that a fitness benefit
creates a happier, more productive work force, reduces employee health
care expenses, lowers rates of absenteeism, reduces disability and
workers compensation claims and helps to attract and retain talented
employees. Studies show that employees who exercise at least once a
week, regardless of their weight, have lower health care costs than their
sedentary co-workers. One study, in fact, showed that active employees
take 27 percent fewer sick days and report 14 to 25 percent fewer
disability days than inactive employees.
(P) At the federal level, IHRSA secured the reintroduction of the
Workforce Health Improvement Program (WHIP) Act, which would
reclassify employer-provided fitness memberships as non-taxable income.
The WHIP Act is especially important to smaller businesses that lack the
space to build an in-house fitness center, which is already considered a
non-taxable benefit by the IRS.
IHRSA is also pressing Congress to pass the Personal Health Investment
Today (PHIT) Act, which would allow employees to pay for various
physical activities, such as gym memberships, using funds in a flexible
spending account.
http://www.ihrsa.org/media-center/2012/1/11/top-health-club-trends-for-2012.html
Fitness Industry Analysis 2013 Cost &
Trends
Fitness Industry in 2013 at a Glance
With the obesity epidemic that is currently going on in the United States, fitness and weight loss
has been growing in popularity, if not becoming an obsession, for Americans. The rate of obesity
grew steadily from 1987 to 2007 and all states except Colorado consider at least one fifth of their
population obese. Over 72 million Americans, or one third of the population of the United
States, are considered clinically obese. One billion people around the world were considered
over ideal weight. In terms of fitness franchises, the two main sectors in the industry are fitness
centers, or gyms, and weight loss solutions such as clinics.
Fitness Center Industry Background
The fitness center industry started coming into its own in the 1970s and 1980s , when exercise,
led by running and aerobics, became popular. Membership rose throughout the 1990s, and the
2000s were a period of enormous growth for fitness centers. There were 16,938 clubs at the
beginning of the decade, and that number grew to 29,636 by January 2008. 41 million
Americans are members of a health club, and just about half of that number belong to a
commercial health club, with the rest divided between non-profit clubs like the YMCA and
miscellaneous for-profit clubs such as corporate clubs, country clubs or spas.
Sixteen million people from this group attended health clubs on more than 100 days in a year.
The overall industry generated 9.76 billion dollars in 2008, and employed approximately
308,000 workers. The industry is highly fragmented the fifty largest companies control only
about thirty percent of the market, and there are only a few dozen companies that own more than
ten centers.
Gym franchises offer exercise equipment, from free weights to leg presses to treadmills, but have
diversified their range of services with pools and spas, basketball and racquetball courts,
personal training, massages, and classes in areas like aerobics and yoga. Good marketing is
especially important in this field, and a franchise can have a distinct advantage with a wider
reach of marketing and name recognition.
Future of the Fitness Center Industry
One trend in the industry is the change in demographics of those who use fitness centers
membership used to be concentrated fairly highly on the 18-34 range, but the popularity has
spread out over all age groups, and increased particularly amongst Americans over 50 and
children and teenagers. Appealing to Americas aging demographic will be essential for gym
franchises. One way to appeal to this audience is to add amenities such as health maintenance
and monitoring like checks for blood sugar, blood pressure and bone density.
Primarily, competition has and will continue to come. Particularly during the recession, there
have been increases in people running for exercise, with the appeal being that it is free, similar to
online exercise plans. Non-profit gyms may not offer as comprehensive services or fancy
equipment, but can still be a useful alternative to commercial fitness centers. In addition,
consumers can decide to buy their own home fitness equipment, such as treadmills and elliptical
machines that can steer them away from gyms altogether.
Other challenges include that fitness centers must continue to buy equipment to keep up with the
latest trends, and this can be an onerous capital expense. There is a degree of seasonality to gym
revenues as well that must be accounted for. More people join during the first quarter, largely
due to New Years resolutions. There is also a danger of liability if people get injured in the gym.
Weight Loss Industry Background
There are several different types of weight loss programs used by Americans in an attempt to
slim down. Diets, exercise, surgery, counseling and drugs are just some of these methods used.
The industry contains about 1,300 companies with a combined annual revenue of about two
billion. Unlike fitness centers, this industry is very concentrated with the largest fifty firms
controlling eighty percent of the market.
Over a quarter of Americans were on diets in 2007, and about two thirds were women. For this
reason the weight loss market is generally geared towards women, but there is room for growth
in marketing towards men as well who have been underserved. Dieters had higher incomes than
non dieters, in general, and tended to be more rural than urban and most often in their forties and
fifties.
There are several popular sub-fields within the weight loss industry, and often they are
combined. Customized nutrition and exercise plans, supplements, counseling, and pre-made
meals are all elements. For example, franchises like Medi-Weightloss provide personalized
weight loss programs, with nutrition plans, exercise plans and supplements, while the Bouari
Clinic is a more pharmaceutical based approach.
Future of the Weight Loss Industry
Because of the great desire by many Americans to lose weight, and the difficulty it poses, there
is a lot of room for potential fraudulent practices in the field. The Food and Drug Administration
has had to crack down on a number of products being pedaled which make false and
unsustainable claims about weight loss effects. These fraudulent practices have led to skepticisim
by the American public to believe claims made by weight loss programs even when not
outright actionable lies, Americans have dropped out of these plans at high rates, feeling their
claims were misleading at best. In addition, because of the poor health of people starting these
programs, there are risks of litigation if they have medical programs while in the program.
Businesses can be subject to new federal regulations which are constantly changing regarding
supplements.
Competition in this industry can come from a wide variety of sources. As phramacology
continues to evolve, there will be new drugs as well as new chemical suppliments designed to
suppress appetites. For example, a new plant called Hoodia has become popular in the last
couple of years as an appetite suppressant and has been placed in a number of products.
Consumers hurt by the poor economic state may opt for other methods of weight loss that are
less expensive, including running, home dieting, including celebrity diets, as well as surgery.
Weight loss can also be a very fad-based industry, and what is the hottest weight loss technique,
diet, or pill one year may be all but passe a couple of years later, meaning that businesses who do
not keep apprised of the latest trends may be in trouble.
Obesity in America shows no sign of slowing down, and because of this there is promise for the
continued future growth and success of both the fitness center and weight loss industries.
Andrew Weber is an Analyst for FranchiseHelp.com and is a graduate of New York University
and New York University School of Law



ihrsa.org/researchIHRSA 2012 Health Club Consumer Report
Health Club Membership Trends
The Leaky Bucket: Member RetentionMarket Share of Membership
Health Club Member Fees
Health Club Consumer Participation Rates
Health Club Member Demographics
Growing Member SegmentsCore Health Club Members
Health Club Member Usage
AttendanceClub Activity
ParticipationNon-club Activity Participation
Health Club Member
Profiles by Activity TypeProfiles by Club Type
Outlook: Exploring the Opportunities
Personal Training Users

Analysis of the healthy lifestyle consumer:
http://www.emeraldinsight.com/journals.htm?articleid=1513547&show=html


Franchising

You are on your way towards owning one of the most successful and fastest growing fitness franchises
in the country!
Planet Fitness is anything but your ordinary gym. With a friendlier, nopressure version of the
traditional gym, we have a business model that works! Clearly, this innovative and successful concept is
the RIGHT CHOICE, RIGHT NOW.
If you want to learn more about franchise opportunities, and find out what it takes to get your own
Planet Fitness gym up and running, please contact Director of Franchise Sales, Candace Couture at
603.750.0001 x102.

Financial requirements

To open 1 club:
Total liquid assets of all partners: $500,000
Total net worth of all partners: $1.5 million
To develop an area(minimum of 5 clubs):
Total liquid assets of all partners: $1.5 million
Total net worth of all partners: $3 million

Fun Facts

February 2012: Planet Fitness in Baton Rouge sells 1124 memberships in one day.
September 2011: Planet Fitness in Carolina Puerto Rico sells 6114 memberships in one month.
January 2010: Nationwide "Dollar Down" sale produces 235,000 new memberships
On our once-a-month Pizza Night, we give away 120,000 slices. That's more than 1.4 million slices of
pizza a year.
We hand out more than a million Tootsie Rolls every month.

*The Planet Fitness performance figures cited above were obtained by taking the 42 corporate locations
that were operating for at least 12 months as of December 31, 2010, and ranking the 25th, 50th and
75th percentiles in terms of total annual revenue as published in Item 19 of our 2011 Franchise
Disclosure Document (FDD). Please see Item 19 of our FDD for more information on the corporate store
percentile ranking referenced above, as well as for insight on franchised stores with 12 months of
operating history as of December 31, 2010. Keep in mind that a new franchisees results may differ,
perhaps materially, from the represented performance. There is no assurance that you will do as well.
**Industry averages are taken from Table 35 of the 2011 IHRSA Profiles of Success industry report for
fitness-only clubs.

How We Help You

Now that youve learned a little bit about Planet Fitness, wed like to mention just some of the services
available to our franchisees. During the startup phase, we offer:
Site selection and lease-negotiation assistance provided by an experienced team. Utilizing
proprietary customer-analytics software, well help you find a home for your club, and conduct a
complete review of the market area and its demographics. In addition, we can provide oversight
as you negotiate your lease and can help you obtain rent and build-out allowances.
Financing assistance, at no cost. Whatever your level of business experience, we can help you
review your finances and can recommend a range of products and services for financing your
Planet Fitness franchise through our network of lenders.
Club layout and construction assistance from our experienced design staff. Regardless of the size
or dimensions of your facility, we can help with every phase of the design and build-out, making
the process as straightforward and efficient as possible.
Comprehensive training on how to run a Planet Fitness franchise, focusing on our unique and
simplified business operations strategy, as well as our time-tested sales and marketing
techniques, which strengthens brand consistency across our company.
As part of our commitment to provide you with the tools for long-term success, Planet Fitness
franchisees also benefit from the ongoing support of a knowledgeable staff that has spent years
developing the best business model in the industry. That support includes:
Orientation sessions for new owners that provide a detailed picture of the startup process and
help to establish a timetable for getting their Planet Fitness locations up and running.
Extensive training for new owner s and managerial staff on how to conduct an effective pre-sale
campaign before opening their club.
Monthly workshops for managerial staff on all aspects of club operations. These two-day
sessions provide a refresher on company procedures while reinforcing the Planet Fitness
philosophy and vision.
A club website that attracts more than 250,000 hits a month and allows visitors to easily join a
club online.
Monthly "mystery shopper" excursions aimed at identifying operational strengths and
weaknesses at individual clubs.
A monthly franchisee newsletter that offers operational advice and keeps owners abreast of
news about the company and the health club industry.
An annual Planet Fitness convention featuring seminars and workshops on a range of
operational topics. The event also gives franchisees an opportunity to network and get to know
one another.
We also offer extensive marketing and branding expertise to Planet Fitness franchisees, including:
A top-notch marketing department that helps develop a comprehensive strategy for promoting
your club.
Creative and technical assistance in crafting effective direct-mail campaigns.
A wide array of professionally developed marketing materials, from banners, brochures and
flyers to in-store signs and posters.
Public relations services aimed at generating publicity about your club through local media.

Description Update
Planet Fitness provides fitness facilities for members. Vision: Take over a large market for
affordable gym memberships.

Market Analysis Update
Challenges: Gym membership rates are expensive and annual contracts turn off a number of
participants. Opportunities: Gyms are getting more popular due to an aging population and
increasing rates of obesity. Solutions: Provide an affordable gym with no annual contracts.

Strategy Analysis Update
General Strategy: Build new gym location and increase memberships as quickly as possible.
Competition: Competition is trying to copy Planet Fitness and compete by offering classes.
Competitive Advantages: Planet Fitness is developing economies of scale that will allow them
to expand quickly and continuously lower costs. Management Experience: Risk Factors: Too
quick of an expansion could hurt the brand and risk taking on too much debt. Keys to Success:
Low cost memberships and no contracts.

Entry Year -2 Year -1 Current
Revenue $n/a $n/a $n/a
EBITDA $n/a $n/a $n/a
Cash Flow $n/a $n/a $n/a
Financial Analysis Update
Financial Information: Current Revenue Sources: Membership dues. Future Revenue
Sources: Fitness classes. Milestones