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Marketing Environment
According to a report by Mordor Intelligence (2019), people are becoming increasingly conscious about their fitness thereby creating a significant demand for fitness equipment. Another report by Allied Market Research (2020-2027), the global fitness equipment industry is expected to grow at a CAGR (Compound Annual Growth Rate) of 3.5% to have a value of $15.2 billion. Monkii 360, a resistance training equipment can be considered to be a part of home workout segment, a growing segment for fitness equipment. The growth is driven by people having less time to go to gyms and the time flexibility provided by the home gym. Since the consumers as well the businesses operate in an environment (and not in vacuum), there can be several factors that impact the decision-making so there is a need to understand the marketing environment in which the product has to be marketed (CIPD, 2020). Based on the framework by CIPD (2020), a PESTLE (Political, Economic, Social, Technological, Environmental, and Legal) analysis is used to explain the marketing environment for the product as below. The PESTLE analysis is conducted based on insights from various sources (Kestenbaum (2019), Market Watch (2019); Mordor Intelligence (2019); and Allied Market Research (2020)).
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The first aspect that is being analyzed is the impact of political environment on marketing. According to CIPD (2020), this aspect is concerned with the level of intervention by the government. In case of the analysed product, there is not much impact of political aspects on the marketing of the product. This could be attributed to the fact that the product’s presence globally is still in its early stages for it to be influenced by political factors. However, as the product becomes available in multiple countries and its operations are dependent on the diplomatic relationship of many countries as products are manufactured in one country and sold in other, the impact of political aspect will increase.
The second aspect that is being analyzed is the impact of economic environment on marketing. According to CIPD (2020), this aspect is concerned with the demand and supply of a product. There is a significant impact of economic conditions on the marketing of the product. For marketing to be effective, the economy must be growing so that people have the disposable income to spend on the home fitness equipment.
The third aspect that is being analyzed is the impact of the social environment on marketing. According to CIPD (2020), this aspect is concerned with the attitude and shared beliefs of customers. There is a significant impact of social conditions on the marketing of the product. Kestenbaum (2019) argued that working out in a community is a growing trend in the fitness industry. Kestenbaum (2019) added that working out at home is only confined to people who do not have time to gyms. The underlying reason behind the above trend is that exercising is now seen as a fun experience and not hard work.
The fourth aspect that is being analyzed is the impact of technological environment on marketing. According to CIPD (2020), this aspect is concerned with the manner in which there is a communication between a business and consumers. There is a significant impact of technology on the marketing of the product as new products are being offered in the market due to different technological advancements. Monkii 360 is itself an example of technological advancement. Also, technological advancements are making it easier to monitor the health of an individual.
The fifth aspect that is being analyzed is the impact of environment on marketing. According to CIPD (2020), this aspect is concerned with the manner in which a business ensures that it is both sustainable and ethical. There is not much impact of environmental conditions on the marketing of the product. However, there are certain aspects that need to be looked at: People are becoming increasingly conscious of the environment so it is necessary that the material and packaging does not cause damage to the environment.
The sixth aspect that is being analyzed is the impact of legal environment on marketing. According to CIPD (2020), this aspect is concerned with the manner in which a business markets its products within a regulatory framework. There is a significant impact of legal aspects on the marketing of the products. This is because most of the fitness equipment are proprietary products and are covered by intellectual property laws. However, due to divergence in intellectual property laws across countries, it is a possibility that knock-off products are sold in different markets.
Reference List
Allied Market Research. (2020). Fitness Equipment Market. Allied Market Research. https://www.alliedmarketresearch.com/fitness-equipment-market.
CIPD. (2020). PESTLE Analysis. CIPD Asia. https://www.cipd.asia/knowledge/factsheets/pestle-analysis.
Kestenbaum, R. (2019). The Biggest Trends in Gyms and The Fitness Industry. Forbes. https://www.forbes.com/sites/richardkestenbaum/2019/11/20/the-biggest-trends-in-gyms-and-the-fitness-industry/#6a6873607465.
Mordor Intelligence. (2019). Home Fitness Equipment Market- Growth, Trends, and Forecast (2020-2025). Mordor Intelligence. https://www.mordorintelligence.com/industry-reports/home-fitness-equipment-market.
Market Watch. (2019). Fitness Equipment Market 2019 | What are the key factors driving the growth of the Market? Market Watch. https://www.marketwatch.com/press-release/fitness-equipment-market-2019-what-are-the-key-factors-driving-the-growth-of-the-market-2019-09-13.
