tough mudder/planet fitness sponsorship activation proposal - academic project

7/18/2019 Tough Mudder/Planet Fitness Sponsorship Activation Proposal - Academic Project

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Sponsorship ActivationProposal



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Table of Contents

Property

I. Tough Mudder Property Overview…………………………………………………………………3

II. Exposure………………………………………………………………………………………….4-5

a.

Participants and Spectators………………………………………………………………..4 b. Media Outlets……………………………………………………………………………...4

III. Inventory……………………………………………………………………………………………5

a. Signage…………………………………………………………………………………….5

b. Tickets……………………………………………………………………………………..5

IV. Intellectual Property…………………………………………………………………………….…..6

V. Hospitality………………………………………………………………………………………..…6VI. Current Sponsors……………………………………………………………………………………6

VII. Property Media Buys……………………………………………………………………………..…7

VIII. Property Image and History………………………………………………………………………...7

Brand

I. Planet Fitness Brand Overview……………………………………………………………………9

II. Brand Equity………………………………………………………………………………………10

a. Awareness……………………………………………………………………….……….10

b. Benefits………………………………………………………………………………..…10

c. Intellectual Property………………………………………………………………...……11d. Price…………………………………………………………………………………...…12

e. Symbolic Benefits…………………………………………………………………..……12

f. Experiential Benefits………………………………………………………………..……13

g. Favorability………………………………………………………………………………13

h. Strength……………………………………………………………………………..……13i. Uniqueness ………………………………………………………………………………13

III. Customers and the Purchase Scenario……………………………………………………………14

a. Demographics and Psychographics…………………………………………...…………14

b. Loyalty…………………………………………………………………………………...14

IV. Competitors and Partners………………………………………………………………………….15V. Brand History……………………………………………………………………………………...17

Activation Plan

I. Targeted Products/Services………………………………………………………………………..19

a. Sales Goals………………………………………………………………………………19

b. Brand Building Goals……………………………………………………………………19c. Philanthropic Goals………………………………………………………………………19

II. Sales Activation……………………………………………………………………………………20

a. Intellectual Property……………………………………………………………………...20

b. Retailers…………………………………………………………………………….……20

c. Sales Promotions…………………………………………………………………………21

d. On-Site Event Promotions…………………………………………………………….…21III. Sponsor Media Buy……………………………………………………………………………..…22

a. Advertising………………………………………………………………………….……22

b. Online and Social Media…………………………………………………………………22

IV. Hospitality………………………………………………………………………………………....23

V. Annual Report…………………………………………………………………………………..…24a. Studies……………………………………………………………………………………24

b. Complete Sponsorship ROI………………………………………………………...……24



! 3

Tough Mudder is probably the toughest event on the planet. Events are hardcore 10-12 mile obstacle

courses designed by British Special Forces to test all-around strength, stamina, mental grit, and

camaraderie.

The Next Big Thing in Fitness:

Tough Mudder is a movement seeing explosive growth, from three humble events in 2010 to fifty nine

events across 6 continents in 2013. This year, Tough Mudder events will be enjoyed by 900,000

participants and 450,000 spectators, a combined direct audience of 1.35 million.

Not a Race, a Lifestyle:

Participants in Tough Mudder have an incredibly positive view of the brand. Over one-thousand of them

have the logo permanently tattooed on their bodies.

Media Frenzy:

The press loves. Tough Mudder has been featured in publications like The Wall Street Journal, Men’s

Fitness, ESPN, Forbes, and The New York Times, among many others. Tough Mudder media features have

achieved 300 million impressions.

Workout Fanatics:

Tough Mudder participants are among the most engaged consumers on the planet. They are athletes with

mental toughness and grit, predominantly males aged 22-40 with an income above $80,000, and willing to

spend on their training and fitness needs. Tough Mudders come from diverse backgrounds including

endurance athletes, weightlifters, firemen, policemen, military, and bankers.

Social Media Mavens:Tough Mudder web properties are expected to see growth in 2013, with 30 million YouTube views and

5 million Facebook fans, all reachable with the click of a mouse.

Amazing Event Marketing Opportunities:

The courses at Tough Mudder events are ripe with opportunity for signage and sponsorships. Courses cover

10-12 miles and consist of 25 highly-visible obstacles.

Respected Brands:

Some of the world’s most respected brands already know that advertising with Tough Mudder is a winning

engagement. Notable sponsors include Under Armour, Degree, Camelbak, Dos Equis, Clif Builders Protein

Bars, and Bic Razors.

Good Corporate Citizens:Since 2010, Tough Mudder has raised over $5 million for the Wounded Warrior Foundation.



!4

Exposure

The Tough Mudder property is currently held in 59 locations across six continents, with events in North

America, Japan, Australia, New Zealand, and a number of countries in Europe. The race has attracted 1.35

million participants and spectators this year and a combined base of 2.3 million participants and spectators

since its inception in 2010. For this upcoming season, the Tough Mudder events will have 900,000

participants and 450,000 spectators directly taking part in their events.

In the press, Tough Mudder has received press attention from a number of trusted publications. The

property has reached 300 million impressions in print and broadcast media. The property has been featured

in:

Spectators

2010 8,000

2011 60,000

2012 225,000

2013 450,000

Participants

2010 20,000

2011 140,000

2012 460,000

2013 900,000

News outlets to Date

The Wall Street

Journal

Fortune.com ABC News Outside Magazine

Men’s Fitness Los Angeles

Times

Forbes.com New York Post

ESPN W Penthouse Daily News Men’s Journal

FOX & Friends BBC News Travelet Boston Magazine

ABC Nightline CNBC Fox News Shape

ESPN Playbook VH1 The Washington Post Ask Men

National

Geographic

Maxim Huffington Post Business Insider

Bloomberg New York Times Washingtonian Forbes Sports Money

MSNBC CNN Sports Illustrated

0!

500,000!

1,000,000!

1,500,000!

2010! 2011! 2012! 2013!

0!

200,000!

400,000!

600,000!

800,000!

2010! 2011! 2012! 2013!



! 5

The Tough Mudder property has a substantial following in social media, currently commanding an

audience of 2.2 million facebook fans and 17,000 YouTube subscribers. Projections for the current year

predict Tough Mudder’s online following to grow to an estimated 5 million Facebook fans and 30 million

YouTube video views by year end.

Web traffic analysis of ToughMudder.com reveals excellent information about the Tough Mudder

consumer.

*These charts show information relative to the general internet population and how popular

toughmudder.com is with each of the following audiences.

According to Google AdWords there are 823,000 Global Monthly searches and 550,000 U.S. monthly

searches for the term “Tough Mudder” on Google.

Consumers which participate in Tough Mudder events and are exposed to marketing messages on the event

course are generally 76% male, 24% female, between the ages of 22 and 40 and have an average income of

$80,000 per year.

Inventory

Signage

The Tough Mudder course holds huge potential for branding opportunities and sponsor messaging. The

race winds through a total of 10-12 miles of terrain and forces participants to complete 25-30 obstacles.

Obstacle signage is currently sold to sponsors, providing them with ample locations to place marketing

messages in places that participants not only pass but interact with. All race participants see advertisements placed on the race course. Additionally, YouTube broadcasts of each race enable sponsored outdoor

marketing and advertisement to be viewed by a larger audience after the event on the web.

Tickets

Participants pay to enter the event. Ticketing price ranges from $90-$155, depending on when registration

is completed. Participants pay less if tickets are ordered ahead of time and well in advanced of the race

date. Spectators are not charged for admission to events. Since no admission is charged, sponsors do not

receive any ticketing benefits.

Ex: green shows an over –

representation and red displays an

under-representation of the listed

demographics

!



!6

Intellectual Property

The Tough Mudder brand has excellent brand recall among participants. The company reports that 1,000

individuals have chosen to tattoo the logo on their bodies. Intellectual property includes the sport itself, as it

is unique from other marathons, triathlons, and individual athletic events. Course setup, obstacles, and web

properties are also wholly owned intellectual properties of the Tough Mudder brand.

Currently, many sponsors have activated sponsorship by use of signage at events. The main sponsor

activation of advertising rights involves branding obstacles on the course. Degree Men sponsors the twelve-

foot wall known as Everest. Clif Builders protein bars sponsors monkey bars. Dos Equis has placed signage

on dangling electrified wires that shock participants as they run under them, known as the Electroshock

Therapy obstacle. All sponsors have published press releases acknowledging their relationship with the

Tough Mudder property and all of their logos are listed on the website and in YouTube content on the

company’s channel.

Hospitality

Tough Mudder sponsor Dos Equis currently sponsors a hospitality area. Post event parties are held after the

completion of the race and participants are offered one free beer with entrance. All participants and

spectators are given access to the hospitality areas where beer is sold.

Current Sponsors

Tough Mudder’s current sponsors (9 total) include CamelBak, Bic razors, Degree for Men, Clif Builders

protein bars, Dos Equis, FRS Healthy Performance, 24 hour Fitness, EAS Nutrition and Under Armor.

These products represent sponsor product areas of hygiene, fitness, outdoor equipment, energy bars/health

food, and alcohol. Along with their sponsorship several of these companies have included special discounts

on the “Deals for Mudders” section of the Tough Mudder website.

Product categories that are not currently represented include healthcare, waste management, and

automobile manufacturers. There is also opportunity for business-to-business corporate branding as their

current sponsors all focus on consumer products.

Dos Equis: 2 year sponsorship as exclusive beer sponsor of Tough Mudder. Current unique sponsor

opportunity includes the Dos Equis Post Party, which is held at the end of the course. The Post-Party

consists of a live band, Dos Equis Beer, Celebrity Keg Toss, awards, and Tough Mudder tattoos on site.



! 7

Under Armour: sponsorship worth between $2M and $3M deal for 2 years giving the clothing maker

exclusivity in the footwear and apparel categories of Tough Mudder events; employs signage and a branded

obstable and activation space at the finish line. The current sponsorship that Tough Mudder has with Under

Armour allows Under Armour to sell Tough Mudder Apparel on their website and collect rights fees.

Additionally, a percentage of each purchase goes toward the Wounded Warrior Project, which Tough

Mudder has supported extensively. Also, Tough Mudder upcoming events are posted on their Under

Armour page to cross promote their brand.

Property Media Buys:

Tough Mudder’s media strategy has centered around public relations. Word of mouth stemming from

media attention has made Tough Mudder a grassroots marketing effort. This new entity has been featured

in numerous magazines, newspapers, and online blogs. By leveraging positive press attention, Tough

Mudder did not need to spend a fortune and promoting their product. They have achieved 300 million

impressions from all different forms of media. (FN TM)

The Tough Mudder website offers a place for donation, opportunities to purchase tickets or sign up for a

race, and provides a detailed schedule of where they next races will be held. They provide the customer

with Tough Mudder gear, offer tips for training for the obstacle course, and they give the customer a

chance to interact with one another via social media.

Tough Mudder is heavily involved with social media. The property currently has a LinkedIn, Facebook,

Twitter, and YouTube channel. On LinkedIn consumers are given chance to work for the company. The

property uses Facebook to post interesting videos and give updates on races. The company’s Twitter allows

the customer to interact with and follow Tough Mudder personnel.

Tough Mudder is highly involved with YouTube; they post all sorts of videos about the race, training, and

the after party. YouTube seems to be extremely important to their social media success. Their videos are

wildly popular and provide an excellent platform for sharing experiences from past events to attract

interest.

Property Image and History:

Tough Mudder is the “Premier Obstacle Course in the World.” It was designed to mimic British Special

Forces training. This event is meant to build camaraderie and the point is to have everyone finish. It is a 10-

12 mile obstacle course that hundreds of thousands try to accomplish. Tough Mudder events are part of a

59 event series that take part all over the globe from the United States to Australia.

Tough Mudder was founded Co-Founded by two Harvard graduates, Will Dean and Guy Livingstone (FNINC.) They launched their first event on May 2, 2012 at Bear Ski Resort in Allentown, PA (FN BBE). In

their first race they expected only 500 participants, however they sold 4,500 tickets (FN BBE). Tough

Mudder is a company that will continue to spread. People enjoy the sport and it continues to grow rapidly

today. Tough Mudder gives their spectators and participants with something to always cheer about.

At this point there is no technology that has changed the event. They have not been able to figure out how

to broadcast the races so people at home can watch. They continue to grow the course and add new

obstacles every year.



!8

Since its inception, Tough Mudder has been affiliated with the Wounded Warrior Project. In their first race

they raised about $200,000 for the project (FN BBE). The company continues to have a strong relationship

with the charity today. The ToughMudder.com home page has a Wounded Warrior donation count, which

displays the amount of money that has been donated to the charity in real time. At this point they have

raised around $5 million for the project and social responsibility continues to be a core tenet of their

business model. (FN TM).



! 9

As the most innovative health club brand in the United States, Planet Fitness is known for a lot of

things – our absurdly low prices, our Lunk™ Alarm, and most of all perhaps, for our Judgment Free

Zone® philosophy, which means members can relax, get in shape, and have fun without being

subjected to the hard-core, look-at-me attitude that exists in too many gyms.

The Best Value in Fitness:

Planet Fitness provides its members with a positive workout environment including clean facilities, all newequipment, and free personal training all for only $10 per month 1.

The Judgment Free Zone:

Planet Fitness gyms take pride in fostering an inclusive and friendly attitude, creating a place where people

of all shapes, sizes, and ability levels can enjoy staying in shape. Planet Fitness gyms discourage workout

behaviors that make others uncomfortable like loud grunting, dropping weights, and judging others. People

that work out in Planet Fitness are there to better themselves in a positive and happy way2.

The No Frills Health Club:

Planet Fitness keeps its cost low by making sure that they deliver just what customers want—a clean and

encouraging environment to work out in—not necessarily a gym with the biggest lap pool or the best juice

bar. Planet Fitness’ gyms always provide customers with the best new equipment, a wide variety of weightsand cardio machines, clean locker rooms and showers, tanning beds, and a friendly helpful staff 3.

Available (almost) Everywhere:

Planet Fitness has 600 locations and is still growing fast. Chances are anywhere you go, a Planet Fitness

gym is close by to keep you in shape and on schedule with your workout routine. Planet Fitness Black

memberships are available for $29 per month and allow customers to work out at any gym in the Planet

Fitness network 4.

A Broad Web Audience:

Planet Fitness currently has over 262,000 Facebook fans and receives over 200,000 website visits per

month, giving the company an excellent way to communicate with its members5.

A Responsible Company:

Planet Fitness is a proud sponsor of The Breast Cancer Research Foundation and has raised more than

$600,000 for the cause.

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1 (Planet Fitness, 2012) 2 (Dougherty, 2012) 3 (Adams, n.d.) 4 (Planet Fitness, 2012) 5 (Quancast Corporation, 2011)



!10

Brand Equity:

Brand Awareness:

Planet Fitness is a well-known national brand that has over 600 locations nationwide. It has become thefastest-growing gym chain and regularly engages in television and outdoor advertising6.

Functional Benefits:

Planet Fitness differentiates itself from competitors on the basis of two main factors: the value of their

service and the judgment free environment of their gyms. The brand is known for key attributes like their no-pressure approach to fitness and their inclusion of all types of customers regardless of experience7.

Value:

With memberships starting at $10 per month, Planet Fitness is able to reach a much larger base of

customers and appeal to consumers who are sensitive to price8.

By offering add-ons to their basic level of membership, Planet Fitness gyms can also appeal to members

who want additional functional benefits like tanning services and discounts on food and beverages at the

gym. Premium memberships start at $29 per month9.

Monthly payment structures keep membership flexible, all resulting in a great value for member dollars.

Judgment Free Zone:

Planet Fitness offers functional benefits to customers in the way of the environment of their health clubs.By recognizing that most consumers don’t fit into the segment of hardcore bodybuilders and are often made

uncomfortable by competitive weightlifting, the gym has positioned itself as a “Judgment Free Zone”

accepting of everyone. Planet Fitness’ brand positioning helps it to appeal to a larger consumer base10.

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!6 (Planet Fitness, 2012) 7 (Adams, n.d.) 8 (Planet Fitness, 2012) 9 (Planet Fitness, 2012) 10 (Dougherty, 2012)



! 11

New Equipment:

Planet Fitness provides its customers with a wide array of new brand name workout equipment. Staff focuses on making regular rounds of the facility to keep equipment and grounds clean11.

Amenities:

Planet Fitness offers free personal training, locker rooms with showers, and

tanning facilities.

Intellectual Property:

Planet Fitness owns the Planet Fitness logos and has trademarked certain phrases like “Judgment Free Zone” and “Lunk,” a term used to describe the

weightlifting fanatics that it seeks to avoid. The company consistently uses the

colors of purple and yellow in its branding and typically uses gear cogs in their advertising which are consistent with its logo design12.

Planet Fitness has recently engaged in marketing campaigns to raise brand awareness. Campaigns center

around television and outdoor advertising which has been successful in presenting people with the Planet

Fitness branding and intellectual properties while communicating key functional benefits13.

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!11 (Planet Fitness, 2012) 12 (Quinn, 2011) 13 (Planet Fitness, 2012)



!12

Price:

Planet Fitness has positioned itself as a low-cost gym to consumers. Comparatively, it is much cheaper than

other competitors.

Gym Name $/Month

Fitness 19 $14

Youfit $10

Equinox Blink $20

Fitness for $10 $10

Chuze Fitness $10

Gold’s Gym $29.99

LA Fitness $29.99

Planet Fitness $10

24 Hour Fitness 29.99

Symbolic Benefits:

Planet Fitness brands itself as an inclusive and less serious type of gym and focuses more on the imagery of

what their customers are not rather than trying to create symbolic imagery of what their customers are. This

is an interesting strategy that results in users defining the symbolic benefits of a Planet Fitness membership

themselves, rather than associating themselves with people in the brand’s advertising14.

Planet Fitness brands themself as “your gym” and reinforces inclusion through materials emphasizing that

“you belong.” They avoid taking members that may make others uncomfortable by grunting, judging

others, dropping weights, or exhibiting other types of “lunk” behavior as displayed popularly in their

television advertising pieces that poked fun at stereotypical bodybuilders. Planet Fitness largely avoidsusing people in their advertising except in television ads, which contrast tacky bodybuilders with the

portrayed Planet Fitness employees, who are always in shape but not seen as fitness fanatics15.

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!14 (Quinn, 2011) 15 (Adams, n.d.)



! 13

Experiential Benefits:

Planet Fitness provides its members with many experiential benefits while still avoiding some of the more

expensive amenities associated with pricier gyms. The company focuses only on the experiential benefits

that are necessary to having a good gym experience and does away with many of the high-end experiences

that other gyms embrace like juice bars, saunas, pools, and outdoor workout facilities16.

The Planet Fitness experience is one of practicality; focusing mainly on the central functional benefits that

make the service a pleasing experience, like working out on new, clean equipment in a stylish, safe, andlow-pressure environment17.

Favorability:

Users view the Planet Fitness brand as favorable. Reviews of the gym typically cite it as a place that

includes people of all sizes, shapes, and ability levels. Customers enjoy the friendly and non-intimidating

environment. Staff is viewed as friendly and helpful and the facilities are seen as clean and inviting.

Negative items associated with the brand involve the gym cancelling membership for users that grunt whileworking out. Although it is a popular form of promotion, people reviewing the gym spoke negatively about

a health club holding pizza and cupcake parties as well as offering tootsie rolls at the door 18.

Planet Fitness supports charities involving breast cancer research and received a fair amount of press

coverage surrounding its donation of more than $600,000 to a breast cancer research organization. The

gym’s public support of a good cause increases its favorability in the eyes of consumers. In addition to

charity work surrounding breast cancer, Planet Fitness has become a major sponsor of The Biggest Loser,

seeking to draw associations between a popular television series that helps obese people get back into shape

and its own welcoming and friendly fitness environment.

Strength:

The Planet Fitness brand can be summed up in the words value and belonging. Both principles are

reinforced heavily in the gym’s branding and marketing materials.

Uniqueness:

Planet Fitness positions itself as a unique type of gym that doesn’t fit in the traditional category of health

clubs. It seeks to provide an inclusive and pressure free environment for people to work out in. Planet

Fitness differentiates by making their gym a fun environment rather than gearing themselves to serious

fitness enthusiasts that demand more features in a gym.

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!16 (Planet Fitness, 2012) 17 (Adams, n.d.) 18 (Quancast Corporation, 2012)



!14

Customers and the Purchase Scenario:

Demographics:

Since a majority of members are recruited through Planet Fitness’ website, the following demographics are

definitive of its consumers:

Psychographics:

Planet Fitness caters to the average health conscious consumers that are not meathead weightlifters, but

rather enjoy being fit and having fun19. Typically consumers

Loyalty:

Planet Fitness gained popularity and continues to grow its brand through consumers desire to engage with

the brand and using the gym regularly. The gym’s basic level “no contract” memberships are what fuel the

consumer’s initial interest, while the basic interior amenities and cleanliness of the gym keep members

returning. Since memberships include the option to drop at any point in time, Planet Fitness must maintain

an attractive and effective workout/exercise environment that meets the needs of its health conscious yetrelaxed consumers in order to keep engagement. The “Judgment Free Zone” and “Lunk Alarm” policies

that Planet Fitness institutes are both aimed at deterring those “meathead” body builders from droppingweights and grunting excessively, which can make many health conscious (not muscle centered) members

self conscious and feel deterred.

Since Planet Fitness if a franchise based company, the cancellation process varies by location, however

Planet Fitness franchise owners typically make it pretty simple to drop the membership. The cancellation process in started in person or by certified mail with written notification by the date of the month in which

your membership began; memberships cannot be cancelled via fax, phone, or email20.

Brand Engagement:

Engagement of the Planet Fitness brand is completely the choice of the consumer. Planet Fitness has positioned itself as a gym that offers a “no contract” membership, allowing consumers to engage

themselves month-to-month with no minimum term required. As a result, the Planet Fitness must adhere to

their “Judgment Free Zone” and “Lunk Alarm” policies that make people want to be there rather than need

to be there; other gyms place an emphasis on making consumers feel like they need to be at the gym in

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 19 (Planet Fitness, 2012)20 (Planet Fitness, 2012)



! 15

order for the members to get benefit out of there higher cost of membership and minimum monthly

agreement. 21

Purchase Decision:

Decisions to purchase the Planet Fitness memberships are made primarily online through their websitewww.planetfitness.com. The website allows users to choose the Planet Fitness franchise location that is

closest and most convenient for the consumers and then provide them with the membership offers that their

location offers. While there is a ‘reception‘ type area located at the in-store gym locations, there are nosalespeople22.

Purchasing Information:

When consumers are comparing Planet Fitness with competing gyms, Planet Fitness utilizes their central

primary online membership form through locating the closest Planet Fitness franchise location to your zip

code and then providing pictures of the layout of that individual gym, its membership offers, and other

benefits. The best part about the membership sign-up is that there are no hidden costs. The costumers’ total

amount due at checkout it listed at each step of the process. Additionally, the traffic to the Planet Fitnesswebsite has been steadily increasing since October of 2012. Typically the website averages around 100,000

monthly visits, however due to the recent New Year’s (and new year’s resolutions) the Planet Fitness

website has steadily increased to reach 161,888 visits at the end of January 2013.

Many of Planet Fitness’ competitors do not have picture of gym condition or layouts and surprise members

with hidden costs end the end of checkout (if they even offer the convenience of applying online).

Competitors and Partners:

Brand:

! Fitness 19 - “Affordable Membership that won’t break the bank”

! YouFit - Symbol YF, “No Pressure, No Obligation”

! Equinox Blink - Has the original Equinox Symbol, Branded as “Blink Fitness”

! Fitness for $10 - Symbol ($10), Branding is the name “Fitness for $10”. “Change your body.

Keep your change.”

! Chuze Gym - “Less Attitude. More Fitness.” ! Gold’s Gym - Gold’s Original Symbol.

! LA Fitness - LA Fitness Original Symbol.! Planet Fitness - Original Symbol. “Burn Calories. Not Cash.”

! 24 Hour Fitness - Brand is the name.

Product:

! Fitness 19 - Offer the consumer an affordable gym membership, on the website they stressalways being affordable.

! YouFit - Offers there perspective member’s a friendly environment at a cheap price.

! Equinox Blink - Gives the consumer a cheap way to work out with Equinox, Blink focuses on

selling the low price that they have provided for their consumer.

! Fitness for $10 - Stating their creed in the company name. They want the consumer to know

instantly that they are offering low prices.! Chuze Gym - Also telling the consumer about the low price to join the gym, however they

stress fitness more to get consumer in to shape.

! Gold’s Gym - User their history, brand image and awareness to attract customers.

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 21 (Planet Fitness, 2012)



!16

! LA Fitness - Is big on selling the total package, they target families. They want everyone in

the family to workout together. They stress a family friendly environment.

! Planet Fitness - Offers their prospective consumer low prices, and a no hassle friendly

environment. That makes people feel comfortable at all times. They call it their “Judgment

Free Zone.”

! 24 Hour Fitness - The gym that never closes, they sell to their customer a gym anytime vibe.

Major Competitors

Planet Fitness business model has caught on the past year. Around the United States you have seen

many gym corporations copy Planet Fitness business model: Fitness for $10, Fitness 19, Equinox

Blink, Chuze Fitness). These gym chains are Planet Fitness Primary Competitors. Where as the other

gym chains have not decided to follow Planet Fitness’s business model and they are the secondary

competitors: Gold’s Gym, LA Fitness, and 24 Hour Fitness. These competitors have not changed their

business model to compete with Planet Fitness, however they still have substantial amount of

followers.

Market Share, General Budget:

Distribution Channel:

Planet Fitness equipment is supplied by FreeMotion Fitness(http://www.answerfitness.com/135/planet-

fitness-gym-reviews-gym-and/)23. FreeMotion Fitness sells all types of equipment from Cardio

machines to workout machines. They pride themselves on sustainable product that is durable.FreeMotion Fitness makes their own equipment; they are a US based company that supplies Planet

Fitness with their state of the art cardio equipment.

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!22

Answer Fitness23

(Snyder, 2012)

Gym NameMonthly

Membership Cost

Number of

Members

Total (11,161,800)

Market Share %

Fitness 19 $14 800,000 7%

Youfit $10 4,000 0.03%

Equinox Blink $20 2 Million 17%

Fitness for $10 $10 3,000 0.02%

Chuze Fitness $10 4,800 0.04%

Gold’s Gym $29.99 3.5 Million 20%

LA Fitness $29.99 1.25 Million 11%

Planet Fitness $10 3.6 Million 32%

24 Hour Fitness 29.99 504,000 4%



! 17

Brand History:

Planet fitness originated in 1992 when co-founder of Planet Fitness, Michael Grondahl, bought out a

gym that was struggling financially.24 His plan was to significantly reduce prices so that they could

compete with all of the exercise alternatives. Planet Fitness began to quickly grow and expand due to

their low membership fees and were able to compete on a larger scale with the other larger and moreexpensive gyms. As of December 27th, 2012, Planet Fitness opened up their 600th gym in the United

States.25

Planet Fitness is a key member of the breast cancer awareness community, and they raised $600,000

dollars for the Breast Cancer Research Foundation.26 At the moment, Planet Fitness is one of the most

recognizable brands involved with raising money for breast cancer awareness.

Elements that make up the brand of Planet Fitness are that the Planet Fitness experience is hassle free;

it is a no judgment zone, clean, stylish and is cheaper than its competitors. They pride themselves on

having a comfortable place to work out and exercise while not being disturbed by zealous body builders or intimidated by the other gym goers. “It’s the best deal on the planet” is one of their major

slogans.27 They are the gym of the average fitness lover, or anyone trying to get into shape without

feeling judged while exercising.

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 24 (Planet Fitness, 2012) 25 (Snyder, 2012) 26 (Dougherty, 2012)



!18



! 19

Sponsorship Activation Plan

SMART Goals:

S pecific

Measurable

Attainable R ealistic

Time Sensitive

Targeted Products/Services

Product 1:

Tough Fitness outdoor classes (a class that consists of conditioning specific to training available to Planet

Fitness members for Tough Mudder Races, a type of group training activity that does not exist in Planet

Fitness’ current offerings. The classes will be offered at an upgraded level of membership from Planet

Fitness’ currently offered black and gold memberships and will be called the Orange membership )

Product 2:

“Tough Mudder Approved” in-gym circuit (a labeled workout routine that directs Planet Fitness usersthough a circuit of in-gym machines and activities that exercise the muscle groups that are most used in a

Tough Mudder race (comparable to Planet Fitness’ current “30 minute workout” circuit)

Brand Building Phrases:

• “Everyone’s Gym”

• “Tough is for Everyone”

Sales Goals

Product 1 Sales Goal: Over the next 12 months, upgrade 10% of Planet Fitness’ current members to the

Orange membership level.

Product 2 Sales Goal: Over the next 12 months, increase membership to all Planet Fitness locations within

50 miles of a scheduled Tough Mudder event by 100 members.

Brand Building Goals:

Product 1 Brand Building Goal: In the next year, achieve 75% recognition of the partnership between

Tough Mudder and Planet Fitness among current members.

Product 2 Brand Building Goal: In the next year, increase agreement among Planet Fitness members with

the statement that “Tough is for Everyone” by 25%.

Philanthropic Goals:

Tough Mudder is a strong supporter of the Wounded Warrior Project and Planet Fitness supports the efforts

of The Breast Cancer Research Foundation; with these two philanthropic foundations touching to many

Americans, why not support those Tough Mudder participants who are racing to support a fellow family

member or friend affected by either cause?

Additionally, Tough Mudder and Planet Fitness will also partner with EarthShare. EarthShare is a nonprofitorganization that is dedicated to creating awareness and developing effective ways to solve critical climate

issues within the last 25 years. EarthShare is primed with helping clean and sustaining the environment, so



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partnering with and outdoor sporting event is a symbiotic relationship. A week before each of the 59 Tough

Mudder events, the communities and EarthShare will do a sweep of the course to ensure the cleanliness of

the grounds. The partnership plans to earn $500,000 annually for EarthShare.

Sales Activation

Intellectual Property:

Planet Fitness will incorporate Intellectual Property into the Tough Mudder brand in several steps. First,

Planet Fitness will create a new exercise plan that is the official exercise training class of Tough Mudder.

Planet Fitness currently has two levels of membership, Black and Platinum. This new membership will be

called the Orange level membership. Tough Mudder’s official colors are orange and black.

We will have logos on each and every Tough Mudder approved pieces of exercise equipment to

differentiate which machine is specifically used for Tough Mudder training. During events we will let the

participants and the spectators to use the demonstration and it will increase the intrigue of the consumer to perhaps join a Planet Fitness, due to its alliance with Tough Mudder. This exercise equipment will be in the

Hospitality box, as well as a group warm-up area before the race called Everyone’s Stretchand led by

Planet Fitness trainers.

In Planet Fitness stores, we will place Tough Mudder decals on each of the “Tough Mudder Approved”

pieces of exercise equipment that comply with the Tough Mudder circuit training program.

Retailers:

We will use several methods of sales promotion. Planet Fitness and Tough Mudder are companies that

share many levels of symmetry. For example, Planet Fitness is “everyone’s gym” and Tough Mudder is arace anyone and everyone can accomplish. One of our sales promotions is that when a participant reaches

the finish line, they receive a medal presented to them by Planet Fitness representatives with a sticker

entitling them to their first month free for engaging in a Planet Fitness membership for bringing in their

medal while joining. This will encourage anyone who is not a member to join and continue their training in

a Planet Fitness gym.

We will put the machines in the store and put decals on each machine. Letting our consumers know thatthese machines are ‘Tough Mudder approved.’ At the event we will offer a Planet Fitness hospitality box.

The hospitality tent will include product trials and demonstrations. All equipment at the event will have the

Tough Mudder logo on it.

At Planet Fitness gyms around the country we will offer a new membership known as the Orangemembership. This level of membership will offer Planet Fitness members numerous new services

pertaining to the Tough Mudder event, including group training classes that take members through

occasional circuits that work out the muscle groups that they’ll use in an event.

Planet Fitness will sell membership at the Tough Mudder event and will offer sales promotions and

hospitality with our “Tough Stretching” area. We will also raise funds for EarthShare due to our partnershipand plan to raise $500,000 annually. This partnership will allow EarthShare to gain notoriety in the eye of

the public as well as bring recognition to the fact that Tough Mudder and Planet Fitness are both

environmentally conscious. There are 59 events around the world, and the potential for EarthShare to earn a

greater profit than we anticipate is apparent. We will have the communities, partnered with EarthShare,

clean the site a week prior to the event.



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Sales Promotions:

We plan to incorporate a sales promotion into the event itself. At the end of every race, we plan to give

each participant of the race a medal, which serves as a Planet Fitness coupon. The medal will be a token for

a first free month of membership to a Planet Fitness gym. We will also use a sales promotion of thestretching tents, “Tough Stretching”. We will demonstrate our mission that this is everyone’s gym and that

we care about our customers in and out of the gym. We will stretch them before the event to deter the

possibility of injury. Everyone can stretch, so we plan to stick to our moniker that we are everyone’s gym by allowing anyone to use the hospitality tent and stretch with Planet Fitness professionals.

We plan to have a web presence that increases in value with in the next year. When you sign up for an

event through Tough Mudder’s website, the site will give you the option to also sign up for the closest

Planet Fitness near you. Also, when you are on the Planet Fitness website, there is a function that allows

you to be directly linked to the Tough Mudder website so one can sign up through either website. Each

website has a direct link to one another. We will have our sales promotions available to both the spectators

and participants.

There will be opportunities to cross promote our product and service with a current sponsor of Tough

Mudder. We chose to partner with Under Armor and create a new brand called, “Planet Armor”. Planet

Armor is a new line of clothing that is the official outfitter of Tough Mudder events. Our administration atPlanet Fitness worked with Under Armor to create a design that is for “everyone”. The clothing line will

launch at the start of the Tough Mudder season. Tough Mudder is worldwide, so the partnership with Under

Armor, the name Planet Armor seemed to fit for our cross promotional objective. We plan to raise money

through Planet Armor and the membership sign-ups through “everyone’s stretch” hospitality tent.

On-Site Event Promotion:

The game day promotions of Planet Fitness is “everyone’s stretch” and the use of the Tough Mudder

approved Planet Fitness exercise unit. Each member of the participants are able to use the stretching tent

and it is a part of internal hospitality. This example of game day promotions helps enhance brand imageand brand equity because it means that the every day gym cares about everyone because they will stretch

anyone so no injuries will occur during the event. Prospective customers may see our inclusive stretchingtent and say to themselves, “They are invested in our well-being,” or agree with the fact that Planet Fitness

really is for everyone. Planet Fitness will help their potential customers see that it is not just a normal gym,

it is a caring gym that accepts everyone.



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Sponsor Media Buys

Advertising:

In addition to the “Everyone’s Gym” campaign, Planet Fitness brand has recently began pushing their new

slogan “No Gymtimidation” in their marketing campaigns, especially with recent television commercials

the brand has launched so far in 2013. Currently, only about 15 percent of Americans belong to gyms. Thismarketing slogan signifies the brands push to attract those other 85% of Americans who don’t and have

never belonged to a gym. This slogan for Planet Fitness runs parallel with the philosophy for the Tough

Mudder property, which describes itself as not a race but a challenge and says, “Mudders do not take

themselves too seriously.”

Outlets:

In keeping with the current Planet Fitness marketing outlets, Tough Mudder would be incorporated into a

Planet Fitness television commercial, website, billboards, and public transportation advertisements.

• Television: The strongest effort to portray the cross promotion of the Planet Fitness brand with the

Tough Mudder property will be done on television, where our message and unity can be clearly

portrayed. This television ad will show the evolution of an individual identifying a challenge inlife (Tough Mudder) and joining/working with Planet Fitness members to meet that challenge

when it comes time to compete in the event. The importance of facing life’s challenges as a team

(not alone) will be highlighted promoting the core idea behind Tough Mudder; while

simultaneously showing the inclusive and friendly attitude that Planet Fitness fosters.

• On Location: The Tough Mudder property logo will be used at Planet Fitness Gyms, especially

where Tough Mudder training classes are held and on the membership cards for those members in

the PF Orange card membership. This membership will be included in the marketing partnership

with Tough Mudder and only cost $5 more per month and include Mudder training classes.

Reusable water bottles branded with both the Planet Fitness and Tough Mudder logo’s will be

given to these members and available for purchase to all at the gyms. At Tough Mudder events,

Planet Fitness will hold a brief stretching and warm up session (open to any Tough Mudder

participant) before the events starts, complete with tents, fans/water misters, and other promotional

items.

• Billboards and Public Transit: Billboards will show the partnership through our join “ToughFitness: We’ll help you meet the challenge” initiative. Billboards will be a clash of the Tough in

white font with orange and black background (from Tough Mudder logo) and “Fitness” in yellow

font with purple and black background (from Planet fitness logo.)

Online Engagement:

• Existing sites: Since both Planet Fitness and Tough Mudder have substantial online reach,audiences will be directed to their existing sites that will be updated to emphasize the partnership.

Tough Mudder currently has a webpage dedicated to “Tough Mudder Boot Camp Training,”

which will now be sponsored by Planet Fitness and be used for Tough Mudder trainees in their

gym. Also, on both the Tough Mudder event sign-up page and the Planet Fitness membershipsign-up page each brand will highlight the benefits of using the other in coordination with their

own.

• Social media: Facebook will also be a key online cooperative marketing outlet; Tough Mudder’s

Facebook page having 2.2+ million fans and Planet Fitness having 260,00+ fans. This will be a

great avenue for each brand to collect data to measure consumer awareness of the partnership,

obtain consumer input, unique promotions, etc. Cross promotion through linking brand pages in

posts or promoting a joint prize (discounted Planet Fitness membership at Planet Fitness and a



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discounted Tough Mudder rate for all Planet Fitness members) through social media would be a

great initiative to get consumers involved with both the brand the property simultaneously.

Hospitality:

At Tough Mudder events planet fitness will focus on Internal Hospitality. We want to reward the consumer,local employees, and local managers the chance to be involved with a Tough Mudder event. Planet Fitness’

slogan is “Everyone’s gym”; Tough Mudder has a similar slogan and they believe that “Anyone can be a

Mudder” and race in an event.

Planet Fitness members when signing up for a Tough Mudder will be given a sales contract which will

make the member aware of what will be offered at the Tough Mudder event. Planet Fitness and ToughMudder want to offer these consumers, local employees, and local managers a chance to remember

something special they did at the race, and will provide them with a commemorative medal upon

completion of the race.

Before the event Planet Fitness will be offering an event shuttle from local gyms and will inform the

consumers of the shuttle offerings via email blasts to everyone who has signed up with Planet Fitness for a

Tough Mudder event. The email will include all information about the shuttle: when it will arrive, when it

will depart, and also post race arrangements.

Planet Fitness will have their tent before the race and during the race. The pre race tent, which will be

known as “Everyone’s Stretch” tent, where the consumer has a chance to work with Planet Fitness trainersto warm up before the event. The trainers will give the participants tips on how to stay dehydrated and

loose before the race. Planet Fitness will also provide product trials, and demonstrations at the hospitality

tent with cardio equipment that is Tough Mudder Approved. The trainers will give demonstrations as well

as educate the participants on how to use the equipment. Participants will also have the chance to try the

Tough Mudder approved equipment.

During the event the local employees and managers will be catered to inside the hospitality area. Planet

Fitness will provide food and beverages. They will also partner with Dos Equis, who is the official beer

sponsor of the event. Dos Equis will provide the beer for the hospitality tent. On the tent the slogan will

read “The Most Interesting People on the Planet.” Planet Fitness is philanthropic partner is Earth Share. Atthe hospitality box the reusable Planet Fitness and Tough Mudder water bottles will be given out to all in

attendance.

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Annual Report !

At the center of any successful marketing relationship are the facts and figures that justify the two brands’

continued relationship. To help ensure the renewal of successful sponsorships year after year, Tough

Mudder will prepare annual reports for all of its sponsors. The items below outline the plans to measure the

success of the sponsorship agreement and activities between Tough Mudder and Planet Fitness.

Pre and Post Event Attitudinal Studies:

At the time of signup for a Tough Mudder, either through the Tough Mudder website, the Planet Fitnesswebsite, or in a Planet Fitness gym, the participant will be given the option to complete a short surveyregarding their understanding of the Planet Fitness brand building goals as outlined in the SMART Goals insection 1. Surveys will measure differences in attitudes toward the brand before and after encountering the

sponsorship activities that Planet Fitness has engaged in at the event. To encourage completion, Planet

Fitness will offer a free upgrade to an Orange level of membership to anyone completing the survey.



!24

Within the survey, questions will measure the respondent’s recognition of the two brands’ sponsorship

arrangement, the agreement with the idea that “Planet Fitness is everyone’s gym,” and the agreement with

the idea that “Tough is for Everyone.” Planet Fitness hopes to see a 75% recognition of the sponsorship

among members, a 60% recognition of the slogan “Everyone’s Gym,” and a 25% agreement with the idea

that “Tough is for Everyone.”

Similar studies will be offered to participants before and after the event regarding their perception of the

favorability of the Planet Fitness brand.

On-site Sales Studies:

As a part of the Planet Fitness on-site presence at Tough Mudder events the gym will be signing up new

members. Sales data on new membership subscriptions will be collected and compared on a percentage

basis to the percent response or conversion of other Planet Fitness sponsorship activities.

In-store Sales Studies:

To determine whether offering training for Tough Mudder events increased loyalty among existing

members, data will be collected on the percentage of members in area gyms that upgraded their

membership to an Orange level. Planet Fitness expects 10% of members to upgrade to the Orange level of membership.

To determine whether offering a free month of membership to race participants increased sales, the annual

report will include the number of membership subscriptions that were started under the promotion offered

by the sticker on the back of race participants’ medals.

Email Marketing Studies:

Open rates and response rates on co-branded marketing communications over email will be collected and

compared to past Planet Fitness campaigns to arrive at a figure of the value that using the intellectual

property of Tough Mudder brand in email marketing adds to Planet Fitness’ communication lists.

Complete Sponsorship ROI:

Finally, the annual report should summarize the complete return on investment of the sponsorship for

Planet Fitness in two sections; ROI in sales dollars and in brand building metrics.

The report should seek to quantify the direct sales dollar increase associated with membership sign ups at

their 59 events and through the medal discount program, as well as any new membership sign-ups for the

Orange membership and the sales dollar differences between existing members’ subscriptions and theupgrade to the Orange membership. The total should be computed into an easy-to-share document that

breaks down the income to expense ratio related to the event and shows the amount of money that eachdollar spent generated for the sponsor. Additionally, the annual report should express the customer lifetime

value of each member that the sponsorship arrangement generated for Planet Fitness.

The report should also seek to quantify changes in attitudes and brand recognition associated with thesponsorship. This information should be available from the survey studies of the sponsorship’s brand

building goals and should be arranged in the document in terms of the percent change in key attitudes

towards the Planet Fitness brand among respondents.

Sponsorship renewal instructions should be included in the annual report.



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tough mudder/planet fitness sponsorship activation proposal - academic project

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