This research develops a marketing plan for an upscale health club firm to be located in the Denver-Boulder metropolitan area. The health club firm is envisioned as a multi-facility organization.
The population of the Denver-Boulder metropolitan area approximates 1.9 million persons (Bureau of the Census, 1991). The population in the metropolitan area is growing at the rate of 1.5 percent per year. Approximately two-thirds of the metropolitan area population is in the 18-64 age group, which is the age group in which most users of health clubs are found (Stein, 1990). A significant proportion of the 18-to-64 year old population segment in the Denver-Boulder metropolitan area is comprised of the so-called baby-boom generation. As they age, the baby-boom generation is considered to be a prime target for health clubs (Waldrop, 1989).
The mean household gross annual income in the Denver-Boulder metropolitan area approximates $38,500. Thus, the Denver-Boulder metropolitan area is well able to support an expanding health club market (Stein, 1990).
The major opportunity available to health club operators in the Denver-Boulder metropolitan area is the baby-boom population component that is now beginning to enter their forties. A second, although smaller opportunity, is found in the 65 years old and older population segment. More and more people in this population segment are seeking to maintain fitness as they age (Waldrop, 1989). This segment accounts for approximately 12 percent of the Denver-Boulder metropolitan area population in the early-1990s. This proportion is expected to rise to approximately 15 percent by the turn of the century.
Competitive positioning for the health club firm requires the consideration of the existing competitive environment. In 1991, 97 health clubs serve the Denver-Boulder metropolitan area. Most of these clubs are single-facility operations. There are, however, six multi-facility healt...