How to run a successful fitness gym in Lincoln Literature Review
I will collect and analyze analyze the successful gym’s gym’s business strategy (popular (popular or upscale) , location and the surrounding environment, management model, equipment selection, marketing tools, publicity publicity methods. 1. Exer Exerci cise se and and fit fitne ness ss
!hysical fitness is not only one of the most important keys to a healthy body, it is the basic of dynamic and creative intellectual activity" (#ohn. $. %enedy). &he initial anatomy of people reserves them to the right to move freely and our body requires movement for the muscles and bones to thrive. $rom the beginning of our historically verified time, there has been mention of sports. In the complete beginning movement was used for survival purposes, like hunting for food, procreating and providing habitable space. 's civilization civilization set in sports started training and pusing their their body to potential potential to to be the victor victor.. ata from the distant past past are not available, available, but but it is reasonable to spectaculate spectaculate that early humans had considerably higher caloric ependitures ependitures per unit of body weight than do modern individuals (*ooper, +-) 's time progressed so did physical activity. /ven in the industrial period, after the first steam engine was developed and as agricultural ways had already been established with a society of people who grew their own food, the average person still burned more calories than nowadays. 's the technological technological era kicked in, physical activity declined declined for the average person person but as most observers observers have stated there was an increase in recreational recreational sports. sports. 0ports had reached a new level of participation. &raining had become a real option for all classes and physical activity rates slowly began to rise again towards the end of the +th century. 't this time, more people had the option to train to become an athlete. athlete. &his started started including including a package deal, deal, having a personal personal trainer, trainer, eating eating a good diet and creating a generally more socially acceptable image of health. &owards the end of the +th century eercise became an image and a lifestyle. !eople from all backgrounds wanted to be a part of this world. &herefore a niche developed for businesses. !ersonal training had now become an all people’s people’s game. 1ithin the fitness world people were getting heavier and bulkier. bulkier. Introducing a new fashion and new take on body building. In the fashion industry models were getting skinnier and fitter making the general public yearn for a similar physique. In this manner, personal training training was bound to follow follow.. 1
In the beginning of the +-st century healthy living had become a trend that every person wanted to be a part of. 's levels of obesity rose in the 2nited 0tates from the development of fast food and energy saving devices, training and higher health standards followed.
2. Motivations
&here are numerous work on gyms dealing with participants’ motivation to go to the gym (*rossley, +34 workin, +4 workin 5 1achs, +64 7averty 5 1right, +-4 0tern, +84 0tewart, 0mith, 5 9oroney, +-). It is argued that one of the main motives is the desire to achieve a certain physique that conforms to contemporary aesthetic ideals (e.g. workin, +). *rossley (+3) asserts, that for some participants the gym is an escape from everyday life where people can :turn off consciousness and submerse themselves in eercise’ (*rossley, +3, p. ;). 7averty and 1right (+-) assert that going to the gym may provide individuals with a heightened sense of morality as going to the gym is in itself :a demonstration of desire to be a good citizen, to achieve and practice individual health responsibilities’ (7averty 5 1right, +-, p. <6). 2.1.
Consumption
$amily recreation needs and higher standards of living created growth in private fitness and health clubs, though trends towards busier consumer lifestyles and the economic downturn now mean that consumers seem less able to commit to regular fitness, sports and competitions (%eynote, +-). =espondents state that they do not have time to eercise, find it un>en?oyable, and become intimidated and@or anious (9intel, +6). 's health and fitness is leisure time based, lifestyle is an important factor. 1hilst many indicate sport is important to them, lack of time@energy or financial reasons inhibits consumption (%eynote, +-). Aegative attitudes seem more prevalent than positive ones towards eercise. 2.2.
Demand caracteristics
Bym fitness classes are popular fitness activities (%eynote +-), although 9intel (+6) highlight walking and ?ogging as prevalent, high frequency and trending. Bym $itness classes help introduce a social element to classes and activities attracting between 3C and --C of consumers (9intel, +<). =egular users of health and gym fitness clubs use more involved decision making as they perceive more risk (*ampbell, +-). *onsumers eercise in a group or on their own, but social bonding need is highly unpredictable in individuals (Dlachopoulos, 2
+8) . 0ingular consumers’ epectations towards the levels of service offered by staff depend upon their self>responsibility levels (9arandi 5 Earris, +-). 2.!.
"nfluential factors
0elf>concepts influence the level of concern towards own weight, fitness levels as well as aniety associated with encountering other members, staff and equipment ((9arandi 5 Earris, +-). !sychological involvement in health and fitness influences levels of activity importance to the individual, their level of interest and frequency of cognition (1oolf, +8). eeprooted psychological preoccupations with gender or body consciousness@former health, mental or emotional problems influence consumer’s interest and motivation and how health club empathy is assessed (9arandi 5 Earris, +-), in fact, psychological variables like perceived health status may be better predictors of health behaviors than demographics (1etzel, -686). &he image of a fit body is increasingly a mark of social standing and for some segments the drive is to look good rather than feel healthy (workin 5 1achs, +6). Aeeds may depend upon racial, cultural and religious factors. $or eample, true empathy with the needs of ethnic sub>groups can add greatly to service value for those consumers, conversely for eperienced users, the artifacts and equipment are paramount (9arandi 5 Earris, +-). !. Consumer #eaviour in gym fitness #usiness
*onsumer behavior (in consumer business contet) is referred to as the study of when, why,how, where and what people do or do not buy products. It blends elements from psychology,sociology, social psychology, anthropology and economics. It attempts to understand the buyer decision making
process,
both
individually
and
in
groups.
It
studies
characteristics
of
individualconsumers such as demographics and behavioral variables in an attempt to understand peopleFswants. It also tries to assess influences on the consumer from groups such as family, friends,reference groups, and society in general .*ustomer behavior study is based on consumer buying behavior, with the customer playing the three distinct roles of user, payer and buyer. =elationship marketing is an influential asset for customer behavior analysis as it has a keeninterest in the re>discovery of the true meaning of marketing through the re>affirmation of theimportance of the customer or buyer. ' greater importance is also placed on consumer retention,customer relationship management, personalization, customization and one>to>one marketing.In 'ddiction our main motive was to study the consumer behavior of the clients in respect todemographics. 'ccording to demography %aushambi (Bhaziabad) is not high locality 3
areawhere people can afford an annual gym worth thousands. 0o according to the area theannual gym scheme was offered at -G which was quite reasonable according to the localitywhereas in south etension branch the same scheme was offered at ;G thousands which people can afford easily. *onsumer behavior as Fthe process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needsand desiresF. 's the new decade creeped in and the new century approached, a time has come to reflect uponand predict the consumerFs behavior in the marketplace. 9any things have changed since the endof mass marketing and the beginning of market segmentation.In the past females never carved for gymnasiums, but which the changing environment femaleswant fitness programmes to keep them fit. 'ddiction
according
to
the
changing
consumer
behavior
designed
special
female
fitnessprogrammes. *ontrary to popular belief, weight and resistance training is very importantfor women of all ages. Instructed properly under the tutelage of 'ddictionFs trainers, therisk of in?ury is mitigated to non>eistent levels. &o address the other concern or inhibition as it may be appropriately described. 1eight training programs at 'ddiction are not designed to make you look like HmasculineH. 0trength training programs for women ensure well>balanced, in?ury free lifestyles for modern living.
$. Ma%ing a mar%randing te gym
If we think only big corporate names need to think about things like brand names, think again. &he brand says a lot about us and our business, and thatFs as true for a local gymnastics gym as itis for a multi>national conglomerate. In this we look at how creating a strong brand for our business can help us set ourselves apart and lay the right foundation for the growth of our business. ur brand is more than ?ust our business name or the logo on the newspaper ad. It is our corporate identity. 'n effective brand tells people who you are, what you do and how you do it,while at the same time establishing your relevance to your customers.Jour brand is how your business is perceived by customers. If your brand has a high perceivedvalue, you en?oy many advantages over your competition, especially when it comes to pricing.1hy do you think people
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are prepared to pay eorbitant money for brand itemsK !erceivedvalue4 perceived value as a result of very effective brand promotion resulting in high recognition. 's the 'ddiction logo reflects in its punch line iscover a new you in J2". &his suggeststhat 'ddiction promises you the results and changes in your activities and stamina.&he main reason for creating our own brand is to differentiate ourselves from your competition.Bymnastics programs can be located blocks apart from each other. Jou need to constantly belooking for ways to set yourself apart from your competition. ur brand can do that for us.'nother good reason for creating our own brand is to make our marketing more effective andefficient. Jou donFt have to spend your time with a new client eplaining who you are, what you do and how you do it. ur brand can already communicate that for us. Jou can spend your timefocusing on students rather than educating your customers about your business . Jour brand needs to say who you are, what you do and how you do it. It needs to do all thesethings at the same time as establishing your relevance to your prospective customers. It isabsolutely essential as you build your own brand, that you have a firm grasp of who you are.' good place to begin thinking about your mission is to put yourself in the shoes of your customers. If youFre in the market for a gymnastics club, what things are important to youK ifferent people will be looking for different benefits but you can bet that they want their childto be safe and well cared for. *ost is also likely to be high on the list as is the training they willreceive. &hese things will be highly important to some and less important to others. 0o focus onthe benefits that are likely to be highly relevant to the ma?ority of your target market. Jour mission statement might read something like Hiscover a new you in J2" &hatFs a prettygeneral statement and if you decide to focus on a particular niche of the gymnastics market.1hen we created our brand, we kept the who, what and how firmly in mind but also use the brand to establish our relevance to our target market and build credibility with that market. '. (ituational )nalysis
&o assess the strategies that the fitness business groups used to overcome threats and seize opportunities, the following were usedL !/0&/7 analysis (!olitical, /conomic, 0ocial, &echnology, /nvironmental 5 7egal factors), 01& (0trengths, 1eakness, pportunities and &hreats) analysis, and !orter’s $ive $orces. &hese analyses influence change and through change individuals become happier as they live healthier lives. &hese analyses assist the researcher of 5
gym fitness business to understand effective marketing strategies and their customers’ bargaining power. 5.1.
PESTEL Analysis
*hoice ad preferences are common action among customers and it gives a variety of options from which to choose. 'ccording to !/0&/7 (+-+), the overall general idea of !/0&/7 'nalysis implies that the household preference level involved 9arketing choices greatly influences the preference of the *ustomer and the purchasing power4 this makes it easy for the customer to make decisions based on the marketing patterns (=ogers, -666). Political factors
!olitical outcomes influence the ownership level of investments and international trade relations between countries, i.e. the 2% and 0outh 'frica. Bood political structures allow for the efficient allocation of resources by households and firms without much government intervention. 0uch structures do assist in dealing with market failure from an economic perspective (!/0&/7, +-+). !olitics can have an impact on the health of on people’s ability to ?oin various gym clubs such as the Mrighton Eealth and =acquet *lub and the =iverside Eealth and =acquet *lub, *hiswick. Social factors
0ocial factors relate to aspects such as changes in family dynamics, lifestyles, demographics and cultural changes (!/0&/7, +-+). 'ccording to 'rmstrong and %otler (+), the social strategies are based on the family systems and the status of an individual in a particular locality. 9embers of the Byms clubs would only desire to do some eercises depending on the cultural practices and the taste preferences of that particular population. emography influences the marketing strategy of the 7incol Eealth and Bym *lub4 it is affected by the population distribution and takes into account gender type, the prevalent age group and the occupation of individuals (7incol N20, +-+). Economic factors
/conomic factors refer to interest rates, taes, echange rates and growth in the economy. 'll these strongly influence the marketing strategies in Bym services (7incolN20, +-+). 'ccording to 9ilberg (+;), various production systems are linked to international trade and the collapse of one may result in the poor performance of other economic factors. 9acroeconomics stimulates the type of product and pricing>mi strategy that could be set for Bym *lubs 6
(0canning the 9arketing /nvironment, +--). 7incol Eealth and =acquet *lub’s industry managers can avoid this threat through capitalising on opportunities of international epansion and the use of gym services that are readily available (7incol 'ctiveN20, +-+). Technological factors
&he 7incol Bym *lubs group utilises &D and radio media when marketing its chocolate products (7incol 'ctiveN20, +-+). &hus, the gym services are threatened by innovative competition. &he fact that it is part of a mass>marketed corporation that is mature has influenced the marketing of its brands (%otler and 'rmstrong, +;). Bym marketers have to find ways to keep the Bym services competitive in the industry that is producing other modern, innovative services like online training lessons and cheaper gyms. Environmental factors
'ccording to Bym 'ctiveN20, (+-+), the 7incol Bym *lubs marketing environment bases its customers’ distribution strategies on micro> and macro>environmental forces. &he Bym 'ctive marketers keep up to date on good environmental practices through introducing recycling of training machines, use of environmentally friendly machines and through employing greener living schemes. Legal factors
&he introduction of age and disability discrimination legislation in 20 has changed the legislation in health clubs. In the Bym *lub, to correct the market outcome, new systems and procedures have had to be developed to cater for all the population Porter’s Five Forces
&he elements involved in marketing are mainly the marketing dynamics and the type of advertising mechanism employed4 this impacts on the potential that a customer has in terms of the market specifications and aspects of population distribution in terms of whether he@she can easily be reached in a given locality. Bargaining power of customers
Bym *lub, whose customers have high bargaining power, are offered services that are slightly different from services offered by other clubs. 7incol Bym *lub discriminates between gold customers and the less valuable customers (lead customers) (oug +8). &he bargaining power
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within the health club market is etremely high due to the low switching options and due to the presence of many online training options. Pressure from substitute services
&he substitute threat to Bym 'ctive is not high because other training institutes are small and offer little competition. &he 7incol Bym *lub has a medium substitute over the =iverside Eealth and =acquet *lub, *hiswick (Bym 'ctiveN20, +-+). 'ccording to Marrows (+6), critical vulnerabilities of a competitive brand results in the better performance of the substitute brand. Bargaining power of supplies
&he Dirgin 'ctive Eealth *lubs group has a centralised system for purchasing supplies. &he supplies bargaining power is low4 supplier bargaining power is inclined to be more effective for smaller clubs rather than the larger health clubs. &he Dirgin 'ctive Eealth *lub group’s centralised department tends to have enough services to allow for core control and specialisation in particular supplies and to target customers (%ar?ainen, +6). Threat of new entrants
&he threat of new entrants into the health club market is low due to the health clubs’ huge capital investments. 7incol Eealth and =acquet *lub’s supply consolidation helps to avoid the market imperfections and threats from various new entrants. Bym 'ctive follows the direction of development though eploiting competencies in the supply and demand market to avoid the threats from new entrants. *0$s (change in critical success factors) are greatly encouraged in the health market to ensure that emphasis is put on discouraging new entrants. Competition and rivalry among firms
Bym club competition is high due to low switching costs. &hrough their wide knowledge of competitive advantage, Bym 'ctive managers have set up a strategy that will achieve a continuous competitive advantage (!orter et al. -68). Mrighton Eealth and =acquet *lub’s managers know how to develop effective competitive strategies and avoid short>term strategies that may be overtaken by the other firms. &he low switching cost among various health firms has led to increased competition. S!T "nalysis
In my research I was able to identify the strengths, weaknesses, opportunities and threats (01& 'nalysis) that prevail in the Dirgin 'ctive Eealth *lubs. 8
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Mar%eting strategies for gyms fitness
&he strategies available to fitness gyms can be divided, according to the spectrum of the resources they refer to, intoL generic (overall) and specific for marketing mi elements. &he first category includes the strategies differentiated according to the competitive position (relative market share) N for the leader, challenger, follower and specialist. 'nother approach belongs to !orter (-684 -66) and refers to the strategies of cost leadership, differentiation or focus. ften encountered is 'nsoffOs (-63G) product>market matri with its four strategies. In what follows are presented the overall strategies used by the four categories of competitors, because there may be noticed differences in gymsO approaches to market according to their market position and the specific strategies. 9arket leaders dominate the other actors and have the initiative to change prices, to innovate services and products, distribution, communication, promotion (%otler 5 %ettler +-+, p.+-) physical evidence, personnel or processes. Eowever, they must remain alert at all times to competitorsO actions that could threaten their market position (unning +8, p. <+), especially in a business environment sub?ect to the trend of internationalization of investors. &hey can resort to the epansion of the total market by attracting new customers who do not practice sports for various reasons, such as high prices, inadequate location or hours ofoperation, or to attract non>practitioners. &hey can increase the frequency of use through eisting or new services and facilities. &hey may also try to protect the current market share through good defensive and offensive actions or to increase their market share N by introducing new services, facilities or locations and innovative ways of distribution, price ad?ustments etc. 'mong the strategies challengers can use are the attacks on the leader, on the similar size companies that have financial problems or of other kind (prices too high, obsolete facilities, amenities or services), or on smaller firms. $ollowerFs strategy is to imitate the leader. &he obvious advantage of this strategy is that it minimizes the costs with innovation and familiarization of buyers and the associated risks. 0pecialistsO strategies refer to adequate management of the narrow market segments they approach. &hus, their tasks refer to the creation, epansion or protection of niches, taking advantage of the good knowledge of their consumers. 1hatever position held, differentiation from competitors through any element of the marketing mi remains a key strategy for long>term success of any fitness gym.
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0pecific strategies account for the elements of the marketing mi or for a combination of them. =egarding basic and complementary services, fitness gyms can count on the introduction of new products and services or on the imitation of the strongest competitors. Ao matter what, it is advisable to try to differentiate themselves from competitors. *ustomization and adaptation of services, quality or assortment are measures commonly used by market leaders. &he price levels of subscriptions to gyms tend to be correlated with the quality of physical evidence (machines, equipment, interior design, staff training), but also with the image they want to convey to the outside (*heben +3). $inding the best price > offer ratio and its right level is not easy, and often the price has to be established especially against the competition. $itness gyms, depending on their overall strategy, their costs, the profit target, the market contet, may fi the price at the same level, above or below the competition. If large halls, those that are part of a national or international chain can afford to set prices at a higher level, the local and smaller ones are forced to rely on price and location to attract customers. &hus, they can try to offer the best price>service ratio or the lowest price on the market. istribution strategies refer to facilitating the sale of subscriptions to the gym, the booking or cancellation of a place in training sessions, the visualization of occupancy in sports programs etc. $or this purpose, during recent years, gyms have started using computerized reservation systems, in addition to the eisting staff. &he promotion budget of fitness gyms is linked to their size. &he small, local sports gyms must rely on word of mouth promotion and other guerrilla promotion activities (flyers, social networks pages, visibility brought by a good commercial venue, own webpages, sports &D shows), point of sale advertising, promotions. 0ports gyms are trying to acquire professional equipment, to design a pleasant and functional space, to provide proper ambient conditions (temperature, lighting, humidity, smell, sound), to properly signal internal and eternal spaces. &he servicescape" is decisive in defining quality (Aickson et al ++, p. -<) of a fitness facility. In the area of personnel, gyms must first recruit qualified personnel or provide it with the necessary training. Joung, energetic people are preferred, even at the risk of a high fluctuation of employees. &raining should also refer to customer relations and orientation towards teamwork, to active involvement in formulation and implementation of quality policy (0harma 5 %arub +-;), to transmitting companyFs epectations for employees. Eowever, studies in the field ($awcett, =hoads, Murnah +;4 7loyd +G) did not find a correlation between personnel’s skills and positioning as a high>quality gym, ambience and amenities being considered most important. 10
=ubio 5 'ragon (+6) conclude that 09/s managers must focus on personnel management and technology, innovation and quality to get the estimated results. 0trategy decisively influences the performance of small and medium enterprises (!ayne, %ennedy, avis +6). 1hatever the strategy chosen, or whether it is independent or a combination, gyms must constantly monitor the market situation and ad?ust, if necessary, their strategy. &he chosen strategy must be supported by the available resources. 'ccording to 7eitner and Buldenberg (+-), combined strategies are a better alternative for 09/s, and the alteration of the generic strategy can lead to results as good as those when strategy is not changed. 7. Marketing tools Direct Marketing
irect marketing was a sub>discipline and type of marketing. &here were two main definitionalcharacteristics which distinguished it from other types of marketing. &he first was that itattempts to send its messages directly to consumers, without the use of intervening media. &hisinvolved commercial communication (direct mail, e>mail, telemarketing) with consumers or businesses, usually unsolicited. &he second characteristic was that it focused on driving aspecific Hcall>to>action.H &his aspect of direct marketing involved an emphasis on trackable,measurable positive (but not negative) responses from consumers (known simply as HresponseHin the industry) regardless of medium. irect marketing is attractive to many marketers, because in many cases its positive effect (butnot negative results) were measured directly. $or eample, we send out five thousandsolicitations by mail, and three thousand customers were tracked as having responded to the promotion, we could say with some confidence that the campaign led directly to the responses.&he number of recipients who are offended by the ?unk mail@spam, however, were not easilymeasured Channel
1e also used media such as door hangers, package inserts, magazines, newspapers, radio,television, email, internet banner ads, digital campaigns, billboards. Telemarketing
&he second most common form of direct marketing used was telemarketing in which wecontacted consumers by phone. My this process many of the consumers were informed about
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thedifferent schemes.!eople interested could register on the phone also to avail the special schemes. Couponing
*oupons in newspapers and magazines cannot be considered direct marketing, since themarketer incurs the cost of supporting a third>party medium (the newspaper or magazine)4coupons were designed specifying different schemes available for the month of #uly. *ouponwere the most effective way to increase the brand awareness and sales of the company Cooperate Marketting
'ddiction had corporate tie ups with Ienegizer, =ock man search group. 1e customized our schemes for different branches and offered special discounts to the employees of both theseorganizations. Co ran!ing
&o put in the words of inter>brand definition, H*o>branding is a form of co>operation, in whichall the participantsF brand names are retained.H *o>branding as, Htwo or more well>known brands combined in an offerH like 'ddiction and%azo (the apparel brand) and each brand sponsors epect that the other brand name willstrengthen the brand preference or purchase intention and hope to reach a new audience. 9ost companies have eplored co>branding at one time or another. Mut few have realized its full potential. 1hile there are many forms of co>branding4 before a company can decide whichoption makes the most sense for its situation, it must fully eplore four main types of co> branding. Door to !oor lea"tlet marketing
7eaflet istribution services were used etensively by the health industries, and many other business focusing on a local catchment Musiness to consumer business model, similar to directmail marketing, this method is targeted purely by area Direct mails
&he most common form of direct marketing is direct mails sometimes called ?unk mail, used byadvertisers who send paper mail to all postal customers in an area or to all customers on a list.'ny low>budget medium that can be used to deliver a communication to a customer can beemployed in direct marketing. !robably the most commonly used medium for direct marketing ismail, in which marketing communications are sent to customers using the postal service. &heterm direct mail is used in the direct marketing industry to refer to communication deliveries 12
bythe !ost ffice, which may also be referred to as H?unk mailH or Had mailH or Hcrap mailH andmay involve bulk mail. +. ,inding te -roper (ite for a ew fitness /ym 0usiness
&he net factor to discuss in the review of literature is about finding a site. &his concerns with looking at freestanding buildings or mall sites, renting or purchasing the building, choosing warehouse@industrial park space at a bargain or committing it all to prime retail. &hese are ?ust a few of the questions that need to be considered before getting the first space or before epanding into another location. &hese are also important issues to understand because each one has an effect on the rent factor, which drives the business plan, which determines the chances for success in the business. ' number of factors that determine the strength of the location must be considered. &he key is not the individual factor but how all the factors total up in relationship to each other. $or eample, one site might have great visibility but the mall or town has unusual restrictions on signage, which might cancel out the value of the site. 's you review the factors, look at how each one affects the other and that a good site for a new fitness business would be one with the strongest total of all the factors.
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