Assignment 2

Individual Report
Semester 2- 2023
Reported by Anh Nguyen

1. Student Name: Anh Nguyen Thi Van

2. Student ID: 21935717
3. Subject Lecturer: Dung Ngo
4. Brand Name: Heros Fitness & Yoga Center
5. Date of Submission: 22th Oct, 2023
TABLE OF CONTENTS
1. Title:...................................................1
2. Executive Summary:..........................2
3. Introduction:.......................................3
4. Summary of Market:...........................4
5. Segmentation Analysis:......................8
6. Recommendations:............................10
7. Marketing Mix :...................................11
8. Conclusion:.......................................17
9. Reference List:...................................17
10. Appendices:....................................20

1, Executive summary:
This executive summary provides an overview of the market analysis
conducted on Heros Fitness & Yoga and the health and fitness industry
in Vietnam. The analysis aimed to identify the market's key trends,
challenges, and opportunities.The findings indicate that Vietnam's health
and fitness industry has experienced significant growth due to
increasing awareness of healthy lifestyles and higher disposable
incomes. Heros Fitness & Yoga has emerged as a 4 stars player in this
market, offering a wide range of fitness and yoga services.
However, the industry faces challenges such as intense competition,
changing consumer preferences, and the impact of the COVID-19
pandemic. To stay competitive, Heros Fitness & Yoga should leverage
digital technologies, improve customer engagement, and diversify its
offerings.
 Overall, the market analysis reveals substantial growth potential in
Vietnam's health and fitness industry and provides strategic
recommendations for Hero's Fitness & Yoga to capitalize on these
opportunities.

2, Introduction:
The health and fitness industry is a wide range of services aimed at
encouraging physical well-being, exercise, and a healthy
lifestyle.This report provides an in-depth analysis of the brand Heros
Fitness & Yoga within the health & fitness industry in Vietnam. Heros
Fitness & Yoga, which provides a wide range of fitness and wellness
services for example yoga, gym, dance,... with 4 stars value. In recent
years, this business in Vietnam has developed significantly due to
increased awareness of a healthy lifestyle and the desire for physical
well-being.. Heros center has established itself as a upper-range brand
in this competitive terrain by providing cutting-edge facilities, a diverse
choice of fitness programs. This report will dig into Heros Fitness &
Yoga brand strategy, market positioning, customer service, and growth
prospects in Vietnam's health and fitness market. It will provide insights
and recommendations for their future performance in the next 5 years.
3, Summary of Market:
According to the PESTEL analysis, several factors contribute to the
industry's success. These factors include favorable government
policies, a young population, a heightened awareness of well-being
among the people, increased disposable income, advanced
technology, and a conducive environment. Conversely, the industry
also faces specific challenges. These include an aging population
structure that poses future concerns about the need for extensive
training to cope with high technology requirements.

Political Factors
- Government public health policies promoting exercise and healthy
eating (world health organization, 2020), that would affect the
demand for health and fitness products/services, influencing
consumer behavior and driving interest in fitness activities.
Economic Factors
- Vietnam's transition to a free-market system, cited by World Bank
(2023), has propelled the country from poverty to middle-class
status. It is now one of the fastest-growing economies in East
Asia.
- According to Source of Asia (SOA), before 2023, there will be about
36 million Vietnamese people who will jump into the
middle-income class.
- According to Statista (2021), 72% of participants pay for sports,
while 28% use it for free. Of those who pay, 32% spend up to
300,000 VND per month, 26% spend between 300,000 VND and
500,000 VND per month, 7% spend between 500,000 VND and
700,000 VND per month, and 6% spend over 700,000 VND per
 month.

- According to World Bank data, Vietnam's GDP (Gross Domestic

Product) reached 408.80 billion US dollars in 2022. Vietnam's GDP
value equals 0.18 per cent of the global economy (source : World
Bank). The above data shows that most of Vietnamese people may
be willing to spend a part of their income on health and fitness
services. As a result, the demand for the health and wellness
strengthening or human health business will be tremendously
strong.

- The above data shows that most of Vietnamese people may be

willing to spend a part of their income on health and fitness
services. As a result, the demand for the health and wellness
 strengthening or human health business will be tremendously
strong.

Social factors
- Under UNFPA (2023), Vietnam has experienced a historic high in
the percentage of young individuals within its population. Currently,
21.1% of the total population falls in the range of 10-24 years. This
presents a unique demographic opportunity for Vietnam, as the
presence of a young and productive population group allows for
the potential acceleration.
- According to Tram Anh Pham (2023), Vietnam has rapidly
urbanized, with urban areas expanding at a 2.8% annual rate,
making it one of the fastest-growing countries in the region. The
urban population has been growing at over 3% per year. As of
September 2022, Vietnam's urbanization rate reached around
41.5%, with 888 urban areas.

Technological factors
 - Ngoc Nguyen's report on Statista reveals that mobile application
downloads in Vietnam have reached 3.49 billion. These apps
provide convenience for consumers by enabling personalized
training programs without direct interaction, while businesses can
efficiently reach their target customers.
- As technology advances, gym providers are integrating it into their
fitness programs to deliver enhanced results to customers
(IMPULSE_ADM 2022).

Environmental factors
Increasing environmental awareness among consumers can
impact their preferences for eco-friendly fitness products,
sustainable packaging, and environmentally-conscious business
practices. To attract and retain customers, health and fitness
businesses should incorporate eco-friendly initiatives and
effectively communicate their environmental efforts (MA, SE-A, JD
2022).

Legal factors

Health and safety regulations: require businesses to prioritize the

well-being of their customers. This entails maintaining clean and
safe facilities, ensuring proper equipment maintenance, and
adhering to hygiene standards to create a safe environment for
patrons (Nguyễn Thị Diễm My, 2023).
4, Segmentation Analysis :

According to Leak K (2020), market segmentation is important to

divide the market into smaller segments based on common
consumer characteristics. This business allows for effective
targeted marketing strategies. It is important to note that market
segmentation requires experimentation with different variables
independently and in combination to gain valuable insights into
market structure (Kotler and Armstrong, 2007, page 191). This
report categorizes customers into smaller groups based on
consumer behavior, psychographics, geography, demographics,
and consumer behavior.

Consumer Behavioral and Psychographics

- Consumer behavioral and psychographic segmentation plays a
critical role in shaping health and fitness market. There are four
distinct customer groups in the health and fitness industry:
1. According to Falardeau E (2021), wellness enthusiasts (23%)
are concerned about their mental and physical health. They
prioritize their overall health and are motivated by personal
performance, identity, and achieving balance in life.
2. According to Falardeau E (2021), the researcher-tester
(10%) actively seeks unique and creative experiences.
They are early adopters, eager to try new products or
 services ahead of others. They enjoy exploring novel
approaches and are open to experimentation.
3. Falardeau E (2021) describes traditionalists (11%) as
customers who dedicated to their established athletic habits
and routines. They resist change, struggle with adopting new
methods, and prefer to stick with what they know, remaining
loyal to their existing habits.
4. According to Falardeau E (2021), the passive participant
(55%) is a customer who does not prioritize fitness but may
occasionally engage in fitness activities or try certain fitness
services. They lack strong intrinsic motivation to exercise but
have the potential to develop it over time. As their internal
motivation grows, they will likely to transition into other
customer archetypes.

Based on the PESTEL analysis, this segment has positive

and negative aspects. Social factors show an increasing
number of health-conscious consumers who prioritize
healthcare services. However, the health and fitness market
faces challenges due to unhealthy lifestyles. Despite this, the
growing population of health-conscious consumers and their
preference for healthier options create a solid foundation for
market growth. This presents an opportunity for the industry
to adapt to changing consumer needs and preferences.

Geographic
- The fitness centre strategically situated on or in near close to a
university/college campus and suburban areas. It recognizes the
unique preferences and requirements, offering convenient fitness
options in near close to their homes. Being in an obvious location
is crucial as it enhances the chances of attracting potential
members to the health club. When individuals pass by the fitness
centre and can easily imagine incorporating it into their daily
routine, they become more inclined to contemplate becoming a
member. (Market Insurance, 2019).
Demographic
- Age: Potential customers are Gen Z people, working people,
even the elder.
- Income level: for customers with a mid and upper-range
range income of around 4,436 USD (Duc Minh, 2023).
- Gender: Male & Female
- Lifestyle: Aim to appeal to individuals who care about a
health-conscious lifestyle, including those seeking weight
management, sports performance enhancement, general
fitness improvement, or stress reduction. It caters to the
diverse needs and interests of individuals who prioritize their
well-being and are committed to maintaining a healthy and
active lifestyle.

5, Recommendation:
Based on the analysis, the most attractive segment for an industry
player to focus on in the future within the health and fitness
industry is the "level income & urban areas" segment. This
segment offers attractive opportunities for businesses in the
industry for the following reasons:
- High Disposable Income: The "Affluent Wellness Seekers"
segment has a significant disposable income, allowing them
to allocate a considerable budget towards their health and
fitness goals. They are willing to spend on high-quality
products, premium memberships, luxury wellness retreats,
and personalized services.
- Demand for Exclusivity and Customization: The "Affluent
Wellness Seekers" segment values exclusivity, personalized
experiences, and tailored services. They appreciate offerings
 that customized to their individual needs and preferences.
This segment seeks high-end fitness facilities, personalized
training programs, concierge services, and access to niche
wellness practices.
- Lifestyle Aspiration: The "Affluent Wellness Seekers" segment
embodies a certain lifestyle associated with health, luxury, and
well-being. They are willing to invest in products and services
that align with their aspirations and help them project a certain
image of wellness and success.

- To target this segment, industry players should consider the

following strategies:
1. Premium Offerings: Develop premium products and
services that cater to the specific needs and
preferences of this segment
2. Customization and Personalization: Provide
personalized experiences and tailored services to meet
the individual requirements of this segment.

6, Marketing Mix:

Nowadays, many people, especially those of working age, prioritize

convenience, high productivity and time-saving. Our business
recommends a distance training app with tailored exercises and
classes. The application created by Heros Fitness and Yoga
 provides convenient exercise opportunities for people in all parts
of the country.

Product Strategy

Core customer
value:
- At the core product
level, marketers must
prioritize offering
customers benefits that
effectively solve their
problems or address
their needs (Mahesh,
2023).
- In this case, the remote
training application not only provides customers with fitness
services and diets. And gives them the convenience and
satisfaction of exercising what they enjoy and care for.
- The target customers are young people and workers who want to
have a healthy body and save time and travel costs. As a result, we
designed a product that meets their needs.

Actual product:
- Name: “FitEZ” is a name that combines two
outstanding features of the product: “Get Fit in an
Easy way". This name has the potential to attract
target users. It successfully represents the product
and communicates our core value of promoting
health and convenience.
 -“Fit”: Strongly reflects the customer's purpose when looking
for this type of service. A healthy body, a strong spirit.
-"EZ": An abbreviation for "easy" commonly used in
Generation Z. The uniqueness of this name conveys a sense
of dynamism, flexibility, youthfulness, and simplicity.

- Feature: FitEZ provides customers with online training

courses, ideal diets and daily reminders. Users can practice
anywhere, anytime IF they have an internet connection.
Online workout packages will have lower prices so
customers can save time and money with the same effect as
going to the gym.

- - Packaging and Stylish: Our target customers are the Z

generation and working people. The packaging of FitEZ
reflects a contemporary aesthetic, youthful colors,
incorporating sleek and trendy elements to enhance its
overall appeal while ensuring minimalist and elegant criteria..
while also ensuring effortless recognition for consumers,
which also arouses the customers' interest. According to
Good Good Report (2022), break the dull and monotonous
rules. Today's youth who love creativity and novelty cannot
ignore the colorful housing design style with vivid colors
interwoven with artistic qualities. Therefore, with the above
design features, FitEZ can successfully attract potential
customers.

Augmented product level:

- This level involves adding extra features and services to a
core product to increase its value and stand out from
competitors (Ranjhaa, shaharYar A 2023). For FitEZ, here are
some potential enhancements:
- Personalized workout plans: Offer users tailored workout
plans based on their fitness goals, preferences and current
 fitness level, include exercise recommendations, duration,
intensity, and frequency customized to individual needs.
- Nutrition guidance: Offer users nutritional information, meal
plans, and dietary recommendations to support their
exercise routine. This includes calorie tracking,
macronutrient analysis, recipe suggestions, and guidance for
healthy eating habits.
- Allow seamless integration with popular intelligent
wearables or fitness devices, like fitness trackers or
smartwatches, to sync data such as heart rate, step count,
and sleep quality. This integration provides users a complete
overview of their health and fitness data in a single platform.
- Community and social features: connect users with similar
individuals, share their achievements, and participate in
challenges or competitions. This social element promotes
responsibility, support, and a friendly, competitive
environment among users.

Pricing Strategy:
- Pricing strategies can differ (Panel, 2023). FitEZ aims to
offer affordable fitness courses inspired by Heros Fitness &
Yoga. To achieve this, the recommended pricing strategy is
market penetration pricing. This approach involves setting a
lower price to attract a large customer base (Wells, T. 2023).
By offering the FitEZ course at 399,000 VND for one month,
the company ensures accessibility for customers, especially
considering their higher disposable income. This competitive
pricing is anticipated to encourage customers to make bulk
purchases, resulting in high sales volumes for FitEZ.

Promotion strategy
- Free sampling: is the activity of distributing free product
samples to customers, to promote sales (Stumpf et al., C &
May, RM 2005). We can reach our clients' potential by giving
 them 1-3 days of free workout sessions on the app or
introducing some discount packages.

- This is an experimental type of follow-up that engages

customers broadly and pulls them into memorable.
- Buzz marketing via digital marketing: To effectively reach the
public and maximize the strategy's impact, it is crucial to
incorporate digital media marketing, including collaboration
with key opinion leaders (KOLs) and influencers. FitEZ can
partner with popular young influencers and individuals who
share a passion for health and fitness, such as
Changluvfitness, Chanhealthy, Dang Beo, and others. These
influencers can promote FitEZ through their social media
accounts on platforms like TikTok, Facebook, and Instagram.
- Based on data from We Are Social, Vietnam had 76.95
million social media users at the start of 2022, which
accounted for approximately 78.15% of the total population.
Therefore, partnering with influencers on these platforms
enables our company to reach a broad target customers,
maximizing our profits and brand exposure.
- Regarding digital marketing, we can employ several
strategies to attract customers to FitEZ. One approach is to
create compelling videos, articles, and short stories that
highlight the appealing aspects of FitEZ, emphasizing its
benefits and the enjoyment it brings. Short videos, in
particularly, are viral among Vietnamese audiences and have
 become the preferred form of content consumption
(VnExpress, 2022).
- Additionally, utilizing paid advertising on social media
platforms is a valuable tool as it allows us to target specific
customer segments effectively. For instance, taking
advantage of YouTube Ads, we can filter the viewers of our
ads based on factors such as age, region, and interests. By
doing so, our advertising efforts will reach customers more
precisely and accurately, increasing the effectiveness of our
marketing campaigns.

Place strategy
- Distribution channels and locations:
1. We will place advertisements directly in areas with high
population density that suit the company's customer
targets, such as Dong Da District, Thanh Xuan District
and Bach Kinh Xay Alley,...
 2. Online retailer: App stores, CH plays, Play stores, etc.
are some of the largest mobile app stores in the world.
So, FitEZ will be available on these app stores.
3. Website: The website is a central hub where users can
access and download the app. Furthermore, the
website provides an opportunity to showcase the app's
features benefits and offer additional information to
potential users.

7, Conclusion:
This study uses PESTEL analysis and market segmentation
to investigate market potential in health and fitness industry.
It highlights the industry's growth potential and describes the
specific customer groups that Heros Fitness & Yoga should
focus on when launching new goods and services. This
report also includes a complete marketing toolbox spanning
the 4Ps (product, price, promotion, place) to help the
business succeed with its new product, FitEZ, in the coming
five years.

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9, Appendices

The End