Four P's of Marketing : Beachbody
By: Beonka32 • December 7, 2015 • Business Plan • 2,354 Words (10 Pages) • 1,850 Views
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Beachbody Marketing Initiatives -4P’s
Beonka L. Robinson
Northwood University
MBA: 652/654 Strategic Marketing
November 29, 2015
Required Primary Secondary Ignored
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Beachbody Marketing Initiatives -4P’s
As stated by Neil Borden of Harvard Business School, the marketing mix can be described as “the use and arrangement of product, price, place and promotion to describe the strategic position of a product in the marketplace (Dolan, 2000). Beachbody’s marketing mix stresses mixing the different activities in order to create and implement their marketing strategy. Each factor in the marketing mix plays a key role in the success and/or failure of marketing their at-home fitness workouts and services.
Product
The physical product that Beachbody offers to consumers is DVDs, specifically at-home workout videos. The workouts provided in the videos range from a mix of cardio, strength training, and yoga to try to reach a diverse group of people. However, Beachbody typically appeals to a narrow market segment such as people who enjoy working out without fitness equipment or attending the gym (Murray, 2011). The intangible service and benefits associated with their product include fitness, weight loss, and other essential health benefits, none of which are guaranteed. Beachbody’s goal is to help people achieve their personal goal to become fit. (Team Beachbody Home, n.d.). The results and success of how well the total package of benefits work is almost solely determined and obtained by the consumers, but Beachbody has taken their intangible services further and also provides customer with online and physical support, motivations, and supplemental products to ensure that consumers achieve their target (Murray, 2011).
The Beachbody brand and company’s reputation has entered into a very profitable fitness market and has continued to grow over the past 15 years based on the industry’s current position if their actual numbers are unavailable. As of September of 2015 the revenue for the fitness industry was roughly around $30 billion, with an annual growth of 2.2% (IBISWorld, 2015). Based off Beachbody product reviews back in 2011, P90x was one of the company’s popular workout videos. The instructor of the videos, Tony Horton, became very well-known and the product had a “strong reputation as a workout routine that delivered results” and effective (Murray, 2011). Another upcoming popular brand and name for the company was Shaun T and his Insanity Workout and Hip Hop Abs.
Recently, Shaun T and his newer videos such as T25 and CIZE are getting a lot of attention. According to customer reviews, the downside of the programs were that they had lower stick rates than people with gym memberships and working with a personal trainer. On the contrary, customers did like the fact that unlike gym memberships and the hassle of monthly payments. Customers enjoyed the fact that they did not have to buy a new workout every month. This could be a negative customer value from a business perspective, but Beachbody continues to create and sell new products.
In addition, other vehicles that drive the value of the product is Beachbody’s post sale technical support and services, convenient availability, and word-of-mouth references. After products are purchased, customers had the basic customer service support for assistance as well as add-on club membership online through Beachbody.com. For an additional monthly cost, customers have access to recipes, online support community, and other helpful tips and videos (Team Beachbody Home, n.d.). This component was set up to assist in promoting customers continuity and commitment. Beachbody has tried to position themselves as a leader in this field (Murray, 2011) and this is a distinct differentiation from its competitors, but may seem a bit pricey for what the online service does. At roughly $40 per month for the full access, customers have less expensive and some free online alternatives that they may value more if price is a factor.
Pricing
Depending on how new each product is, Beachbody bundle package programs range from $45 up to $250. As the demand goes down for older versions of workout programs, Beachbody lowers the price and introduces newer versions or completed new programs. If a customer only buys the standard package, a customer will pay on average for a new workout roughly $75-$180. The program packages come in different levels; Essential Package, Ultimate Package, and Extreme Combo package. The bigger the package the more savings in comparison to customers purchasing those same items individually. If a larger lump sum payment is an issue, an option that they offer is month payments. Typically, their payment plans are 3 equal monthly payments, the first payment including a one-time shipping and handling fee. Cash and check payment options are not available (Team Beachbody Home, n.d.).
The risks that Beachbody face is the $12-$15 fitness DVDs sold at Wal-Mart, Target, and other retail locations where fitness DVDs are sold. For the most part, Beachbody sells their DVDs in bundles, and is rare that you can only purchase one DVD. Their products are designed where they consist of a 5-6 DVD collection of 1-2 exercise on each disk. There are only a few options to purchase one individual disk for their programs are 30-90 days long which limits their ability to offer the workouts on only 1 DVD. However, compared to other online fitness business, Beachbody is the price leader and prices are comparatively lower the competition giving them additional comparative advantages in the marketplace.
Place
The past few weeks, I have conducted personal research of where Beachbody shows up and how they place the visibility of their product. Social media, online, and television are Beachbody’s main sources of communicating product information to customers. Competitors like BodybyVi and Herbalife do not advertise their products on TV. Advocare has very few commercials, but Beachbody is heavily engaged in promoting their videos through infomercials. However, social media has been a very effective means of communication and visibility. Beachbody has a competitive advantage using infomercials since they are able to reach an even larger audience.
Beachbody does not promote all of their different products on one program. They focus on one workout video per infomercial. 21 Day Fix, T25, and the new workout CIZE are the most recent products being aired. At any given time, Beachbody as up to 6 infomercials running at once. The infomercials feature the creator of each workout program, testimonials, and before and after photos of customers. The findings of the time and channels it aired on and the shows that aired before and after were interesting. Beachbody airs during primetime workout times starting at 4 a.m. to 7 a.m., sporadically during 11 a.m. to 12 p.m., and again 6 p.m. to 12 a.m.
Beachbody occasionally makes appearances on shows such as Good Morning America and other daytime TV. Each showing last only 30 minutes, coming on back to back, normally the exact same program for over two hours. Common channels it appeared on include local cable channels, TvMall, ShopTV, UShop4, and many more. Most of the channels are already designed to promote to sell products all day. Other programs that air before and after include other fitness, health conscious, and beauty products. These products range from green tea, Nutribullets, makeup and anti-aging products, and other health foods.
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