Situation
Planet Fitness owns and operates 18 gym locations in Central Florida. Their unique business model, which features a no-frills gym membership for $49 down, $10 per month and no commitment, had seen moderate success.

While Planet Fitness historically sees the largest increase in membership during the month of January, there was concern that the economic downturn could have a negative effect on 2009 sales. The agency was charged with developing a promotion to boost sales at the beginning of January to offset a likely slow year.

Insight
Research conducted by the agency showed favorable preference for the $10 monthly fee at Planet Fitness, although awareness of the gym was relatively low. It was also known that weight loss and a healthy lifestyle would be on the minds of consumers at the start of the New Year.

Solution
To target the newly cost-conscience consumer and benefit from the typical New Year’s resolution to lose weight, the agency recommended the “Planet Fitness $1/1 Week Sale.” For one week only, consumers could join for $1 down and $10 per month. A heavy broadcast schedule, Web banners and in-store POP were used to promote the sale the first week in January. We also garnered more than $41,000 worth of television and radio in added value, or 40% of the paid schedule.

Results
During the sale, Planet Fitness signed more than 20,000 new members, which will result in $3 million of revenue over the course of the year. Additionally, Web site visits increased by 7,500% during the week. The heavy promotion also increased awareness significantly, as evidenced by a recent cover story in The Orlando Sentinel.

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