Reference no: EM132104315

AIlen Goldschmidt loves exercise and fitness. At age 42 he survived a cardiac scare in which doctors first believed a heart attack had taken place. Even though subsequent tests determined such was not the case, Allen was told that being overweight and in poor physical condition might at some point lead to an actual episode. In response, he moved from a sedentary lifestyle to an activity-based approach to keeping trim and healthy.

After several months of developing his own program With the help of a fitness trainer, an opportunity arose. Allen was able to purchase a fitness center from an individual who was moving out of town and wanted to sell as much of the business intact as possible. Allen and his trainer created a system that they named Phase 2. Their idea was that Phase 1 was an under-represented aspect of staying healthy: diet and lifestyle. They designed a pro- gram that encouraged members and visitors to eat right (low sugar, low salt, low fat, low calorie) but also to sleep in regular cycles and take steps to avoid the effects of stress, which can lead to other bad habits, such as alcohol abuse.

Phase 2 would be the fitness aspect. The center would provide both individual training and group activities including Zumba and other exercise programs. Customers could create individually tailored programs for special events, such as marathon training or getting into a smaller sized dress or suit for a class reunion. Group activities would stress socialization and having fun as parts of getting fit.

The building Allen purchased contained a walking track, a swimming pool, and a wide variety of exercise equipment including free weights, weight training machines, treadmills, and more specific devices such as Stairmasters. A dining area was added to serve snacks and light meals, but also to provide a location for cooking classes to be taught by experts in quality nutrition.

Allen was aware of the competition in his area. A Gold's Gym operated in the same city, as did a Curves, which focused on attracting women to a 30-minute workout program. He believed his combination of Phase 1 and Phase 2 would make it possible to stand out from the competition. He hired a local advertising and promotions company to help him find the right mix of people to become regular clients.

question: Are there any business-to-business segmentation opportunities present? Why or why not?