Health Club Operations
Hansol Healthland is a company committed
This is an excerpt from the paper...
Hansol Healthland is a company committed to opening and operating upscale health clubs targeting the Korean population of Southern California. The company is relatively new, and competes with strong and established organizations such as Bally's (which operates Holiday Spa, Nautilus Aerobics Plus and Sports Connection), L.A. Fitness and Family Fitness Centers. Of the many health club facilities in the Los Angeles area, most are single-facility operations, meaning that members join a single club and work out at that club exclusively. There are, however, several multi-facility operations, including those listed above. Most of the area health clubs are not considered upscale; thus while positioning itself as an upscale club limits the potential market for Hansol, it also limits the competition.The company is hoping to capitalize on the continued interest in fitness that has outlasted the fad of working out that erupted during the 1970s. To this end, it is targeting not only the 18-35 year-old market, but also the over 64-year old market as senior citizens are now engaged in actively pursuing better fitness. Although the company operates in the metropolitan Los Angeles area, it targets mainly Korean customers, and is seeking to position itself as attractive to consumers with higher-than-median incomes. The primary product that health clubs offer is facilities in which members can exercise. This, however, is not the product that the health clubs activ
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In order to gain long-term market share, it must compete against these participants and demonstrate to some of their current members that they should change to Hansol. At the same time, target-profit pricing is appropriate to the organization because it must return profit to its owners or face the very real possibility that they will choose to invest additional funds elsewhere. The combination of these pricing strategies should help the company realize both its short-term goal of gaining market share, and its long-term goal of providing a strong rate of return to its investors, both of which are necessary for the continued success of the company.
Membership fees will be $1300 per year for an individual and $2000 per year for a couple. VIP membership levels (with additional amenities included) are available at $1800 for individuals and $3000 for couples. Discounted memberships are available when a club first opens. These discounted memberships are $1000 or $1600 for individuals or couples, respectively. The VIP memberships are discounted to $1500 and $2500 for individuals and couples, respectively.
Promotion
Promotion for Hansol uses a combination of print media with targeted mailings. Print media will include English-la
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Some common words found in the essay are:
Los Angeles, Hansol Healthland, Angeles Television, Korean Korean-Americans, African American, Promotion Hansol, Southern California, Orange County, health clubs, los angeles, Distribution Five, Fitness Centers, market share, market share pricing, product health clubs, create atmosphere, concentration koreans, upscale image, pricing strategies, long-term market share, club facilities, throughout los angeles, share pricing, individuals couples respectively, promotional activities,
Approximate Word count = 1403
Approximate Pages = 6 (250 words per page)
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