For HealthMark, as with any business, there are many possible categories by which the market could be segmented.  The following salient variables form the basis for HealthMark’s current market segmentation:

Regarding age (and in a positively correlated way, income), there are 2 basic groups.  The first involves consumers that are teenage to 30-- younger fitness goers.  Generally this age group has been raised during a time when fitness and exercise have been considered an important part of daily life for both males and females.

The second group involves consumers that are 30 and older.  While many people in this age group participated in the fitness revolution of the last few decades, there also exist a large percentage of this group that have never made fitness a part of their every day life. This is due to many factors (e.g. lethargy, intimidation, lack of knowledge, and lack of incentive).

In the correlated dimension of income runs a parallel stratification.  More specifically, hiring a personal fitness trainer requires a reasonable amount of disposable income.  Generally, the group over 30 will be further along in their careers and families, will have established income levels and be more likely to afford personal trainers.

Another important way to segment our market is by types of fitness facilities:

-	public gyms
-	private homes
-	corporate sites

Public Gyms
Public gyms represent a large percentage of HealthMark’s current marketshare (70%) and therefore represent an important segment.  However, there are several issues that detract from this market segment’s desirability.  First, public gyms require a percentage of the fees generated by personal training companies (generally around 10%), thereby cutting into HealthMark’s profit margins.  Secondly, this market segment is more competitive, since it has been the most obvious focus for personal trainers, providing a ready-made target market of fitness-oriented people.  Because it is more competitive, lower-priced (and lower quality or less skilled) trainers are available.  In addition, many public gym customers already have a lot of knowledge about fitness and exercise equipment and therefore do not value HealthMark’s personalized and integrated approach as much as consumers who have little to moderate knowledge of the fitness world. 

Private Home Gyms
Private home gyms currently represent a smaller slice of  HealthMark’s  marketshare (20%), but an important one.  This segment often provides dedicated and long-term customers who have invested in a home facility and are willing to make the most of their investment with high quality personal training.  In spite of this fact, this market segment has limited growth potential since the number of people with home gyms is growing at a pace only consistent with the general growth in the fitness industry.

Also, according to a 19xx  Fitness and Health survey about 60% of people with private gyms are in the “do it yourself” category.  People in the  “Do it yourself” category often already have advanced knowledge of fitness and believe that building their own gym will save them both the expense and hassle of going to a public gym. These people do not represent an ideal target market for HealthMark since they already have advanced knowledge of fitness and obviously want to mitigate the expense associated with their fitness routine.

The people representing the 40% of the private home gym market who are using gyms as a way to start out in their fitness endeavors do represent an attractive but complex market.  Their age is more likely to be above  30 since they can afford a home gym.  However, from a marketing perspective it is difficult to find and market to these people since they are not concentrated in one location.

Additionally, the very wealthy home gym buyers that represent the upper end of this segment (famous athletes, personalities, actors, etc.) are the prime target market for Joe Dakota’s “intensity and image” position in the personal fitness marketplace.  In this market The Dakota Team is very competitive and owns more marketshare than HealthMark.

Corporate Gyms
The corporate gym segment poses a limited threat resulting from new entrants.  This currently is not the prime target for either the high-end trainers (e.g. The Dakota Team) or the current public gym set.  Certainly as this market becomes more visible competitors will turn their focus towards it, but HealthMark has an opportunity to enter the segment and establish a strong customer base before competition becomes intense. This segment represents a very attractive arena from a marketing perspective because it is comprised of a concentrated group of professionals (assumably possessing disposable income) within the target age range of 30-55.  Also, it is believed that corporations will cooperate because of the value-added service HealthMark provides and the inherent benefits realized by the organization. Some of these benefits involve safety training (for mitigating workplace injury), advertising and increased use of the corporate fitness facility, and overall increased health of the individual employees.  These benefits have very real and positive implications for both improved attendance, increased productivity, insurance advantages, and reduced healthcare costs for the corporation.

This segment also has the advantage of free indirect advertising (generating interest and momentum among the potential market) because when a corporation opens a new fitness site,  there is often great employee interest and excitement as the employees perceive they are being given an added benefit of employment.  This is a time when many people who have never found the time or desire to get a fitness routine off the ground make new resolutions, goals and commitments to “getting in shape”.  Often these people are looking for a way to implement their plan and stick with it, and are thrilled to have a personal training partner to come alongside them and help them meet their goals.

In addition, most corporate gyms offer use of the facilities at little or no charge to the company employees (and sometimes even their families).  Therefore, employees do not feel like they are “spending twice” when they pay for personal training (as in a public gym situation).