Market Segmentation, and Product Positioning Service Description and Situational Analysis In the competitive business environment, organizations have to deal with the complexity of rising customer expectations and greater workspace demands. Managers of any organization are challenged with the need to continually motivate employees to sustain high levels of customer satisfaction. According to Starters, author of the book “Taking Care of the People Who Matter Most, the employees are truly the most powerful medium for conveying the brand to customers (Starters, 008).
Employer sponsored wellness programs have been on the rise in recent years; according to a survey conducted to 361 organizations in the Chicago area by the Rush University Medical Center, the organizations are highly interested in engaging employees in healthier behaviors by encouraging healthier lifestyle habits. The organizations are realizing that implementing wellness initiatives has the potential to boost productivity and reduce indirect medical costs (Rush University Medical Center, 2012).
Organizations such as Johnson & Johnson have embraced health and illness programs towards reducing risks such as unhealthy eating, physical inactivity, and obesity among their employees, using these programs to establish company-wide performance goals Monsoon & Johnson, 2012). This philosophy of caring for employees is the cornerstone of The Magnificent Mile of Wellness. The Magnificent Mile of Wellness is a Chicago-based company providing leisure, wellness, and recreational services for the employees of our corporate partners.
The company’s strategic mission is to provide a secure, comfortable, and relaxed environment in which corporate employees can have a place to take advantage of on heir lunch times and/or breaks by engaging in activities that will assist in relieving the stress associated with their personal and work environments, as well as promoting a healthier way of living. The Magnificent Mile of Wellness has also created its own wellness drink called Magnificent Life Juice that promotes energy and health which is bottled up into a tasteful beverage which consumers will be sure to love.
Customers that come to The Magnificent Mile of Wellness will have access to the following services: * Juice bar with organic deli * Weight management and nutrition programs Wellness professionals to support individual lifestyle changes * On-site trained medical personnel * Private rooms with message services * Employee Assistance Program(EPA) providing counselors and therapist * TV rooms * Private phone cabins * Public computers * WI-IF * Personal lockers * Pool tables, fastball tables, and other game tables The overall marketing strategy is not only aimed at increasing customers and sales, but also touches on developing strong partnerships Witt associated partners and increasing the overall health and wellbeing of the future workforce of tomorrow. Foreign Market The Magnificent Mile of Wellness is looking to tap into a foreign market which is currently shifting towards the promotion of healthier lifestyles.
After researching different markets we have decided that the Western European market would be an ideal fit for our services and product. There’s an overall sense of healthy living in this area and we feel that we can bring our wellness concepts to these groups and receive much interest from businesses and the general community. Target Market and Segmentation The Magnificent Mile of Wellness will be located in the heavily populated area of downtown Chicago; specifically in the Non Center at 200 E. Randolph SST. Chicago, Illinois. The firm will primarily be looking to partner with organizations with operations in the health and well-being industry.
This is based on the commitment of these types of organizations towards the delivery of quality care to the people, which can be reflected by giving priority to the wellness of their own employees; therefore representing reduced entry barriers for the company. According to the Economic Census in 2007, the Chicago Metro Area was ranked 3rd among U. S. Metros in the number of businesses in the Health Care and Social Assistance sector with 23,636 establishments (Economic Census, 2012). Therefore, this location will allow the company to increase awareness among potential partners and customers. Our bottled drinks will be sold in grocery and convenient stores throughout the US, some examples include Wall Mart, 7 Eleven, and Food lion. Figure 2. Health care and social assistance businesses in Chicago Metro counties: 2007.
This figure illustrates the counties with higher number of businesses in Chicago metro area. The company’s expansion strategy is broken down into three proposed phases, aligned with the company’s core mission and objectives: Phase nee: (United Health Care) – The company’s main focus will be on developing a long lasting positive relationship with United Health Care. After the first successful year of operations, The Magnificent Mile of Wellness will look to expand its brand by offering their services to other firm’s within the NON center. Phase two: (Health industry companies) – The company’s main focus will be on developing partnerships with various firms within the health and service industries.
This will leverage the expansion goals of the company and assist the objective of promoting a healthier workforce. Phase three: (Everyone) – The company’s main focus will be on developing lifelong relationships with not only businesses in the health and service industries, but all companies of different sectors and industries. Market Size and Trends According to the Bureau of Labor Statistics, industries and occupations related to health care, personal care and social assistance, and construction are projected to have the fastest Job growth between 2010 and 2020. The health care and social assistance sector is projected to gain the most Jobs (5. Million), followed by professional and business services (3. Million) (Bureau of Labor Statistics, 2012). In addition, the businesses corresponding to the Health Care and Social Assistance are accounted for 11% of the market; which represents the third largest industry in the Cook County. This figure illustrates the number of businesses, classified by their corresponding industry, and the percentage that this number represents in comparison with the total number of businesses in Cook county Target Audience As an introductory strategy for the company, The Magnificent Mile of Wellness’s target market consists of the major corporation of United Health Care, located in the midtown area of Chicago.
Because the company is located in a corporate environment it will primarily focus on middle aged working individuals with the following demographic and cryptographic characteristics: * Ages 24-65 * Single/Married * Middle-high Income individuals * High School Graduates or higher level of education * Individuals seeking to improve their overall health, and productivity at work The Magnificent Mile of Wellness’s research staff conducted a market research study which revealed the following: * 77% of individuals said they would like more time or lunch * 85% of individuals said they would like a more convenient facility to enjoy their free time * 92% of individuals said they would like to decrease their stress levels * 89% of individuals said they felt if they were healthier they would be more productive at work The above results confirm the pre conceived notion that the proposed target market that The Magnificent Mile of Wellness intends to reach will not only be receptive but warrants the services that The Magnificent Mile of Wellness will render.
Market Position Even though organizations have started to offer and sponsor wellness programs to heir employees, there are still many organizations that do not have the resources to provide these types of services. For instance, according to the Bureau of Labor Statistics, only 57% of small establishments (those with fewer than 100 employees) provide access to medical care benefits. Figure 4. Large, medium, and small establishments: Access to selected benefits, private industry, March 2012 (Bureau of Labor Statistics, 2012). The information from figure 4 shows that The Magnificent Mile of Wellness is an affordable way to integrate the employer sponsored wellness programs in organizations of any size.
By specializing in providing the services described in this document, The Magnificent Mile of Wellness can generate valuable knowledge and experience that can be used to provide the benefits of an economy of scale; therefore be the outsourcing company for the leisure and recreation spaces for the corporate workforce in the US. SOOT Analysis By offering services that are unique and most importantly convenient, The Magnificent Mile of Wellness will be able to create a strong brand name that will promote long-term partnerships, enabling the company to overcome many of its weaknesses and threats. By focusing on the competitive advantages that the company has, The Magnificent Mile of Wellness will be able to capitalize on its strengths which will lead to realizing its opportunities.