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Marketing ManagementStrategic Marketing Plan – Study and Analysis

for Gold Gym

Marketing Management - Group 7 EPGDIB 2014-16

Submitted by:Akshay (4A) | Sachin (36A) | Kavita ( 19A) | Richa (33A) | Ashirvad ( 9A)

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The analysis and report includes following: 1. Problem Statement2. Introduction3. Background4. Segment, Targeting & Positioning5. Market Strategy6. Marketing Mix7. SWOT Analysis8. Marketing Mix9. Porter’s Five Force Analysis10. Implementation Plan11. Accounting Information12. Conclusion13. Bibliography

Marketing Management - Group 7 EPGDIB 2014-16

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1. Problem statement The Brand Gold's Gym is growing; the people are becoming more conscious, we keep introducing more programs and equipment but the awareness is growing at a very small pace. Only 2 percent of the population in India actually goes to a health club or a gym.- Being an American brand, how should we adapt to create a positive brand-image in the minds of the consumers in India and differentiate from the clutter of other Indian fitness brands?- What should be the marketing plan to make gymming an integral part of daily lives in India?• In this age of internet technology and hungry Indian public expecting information on the best priced and most offers from their fitness centre, how can we use social media to keep and attract new customers keeping in mind the brand positioning and design process that can give Gold's Gym on advantage in the Indian markets.

• Gold's Gyms have identified areas of weight loss and gain programs and health issues as the new areas of growth: what are the other areas of growth that can increase the penetration of health & fitness for Gold's Gyms in India?

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Gold's Gym India is the largest international gym chain in the world recognized for its passion, unique

heritage, and experience as the final authority in fitness and lifestyle. Gold's Gym has cut out for itself

84 gyms in India with another few under construction

2. Background

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3. MARKET AND INDUSTRY: Estimated Indian Health, Wellness & Fitness Industry Size 2500-3000 crores Industry - Highly fragmented and unorganized Competition – Many and growing. The Gym and Fitness Industry in India is evolving and growing at 25% and India is indeed a growth story in the making. Earlier it was predominantly dominated by the male population. Today we see 45 % of the members being female. Education and access to the internet has changed

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4. SEGMENTING, TARGETING AND POSITIONING:

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Sex

Male

Female Age

10-1819-25

26-3536-45

46-6565+

Marital

Statu

sSin

gle

Married

Place o

f Resi

denceUrb

anVilla

ge

Family

Size

Small

Medium

Big

Educati

on

Middle Sch

ool or L

ower

High Sc

hool

Graduate

Profes

sional

Degree

Occupati

on

Worke

rs in (F

actory,

Clerk,

Junior Staff

)

Junior Man

ager

Middle Man

ager

Senior M

anag

er

Directo

r, CEO

etc..

Worki

ng Stat

us

Worki

ng

Housewife

Studen

t

Unemploye

d

Retired

0

0.2

0.4

0.6

0.8

Gym Membership

Gym Membership

4. SEGMENTING, TARGETING AND POSITIONING:

Educating clients on the right aspects of Fitness.

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5. MARKET STRATEGY

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6. MARKETING MIX

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Product:Health Care Services:AerobicsCyclingBoxingYogaMuscle TrainingDiabetes & Obesity Control

Price:Penetration Pricing:quality exercise and body work out services at competitive costDiscounted rates if you wish to workout between 10 to 5 pm

Place:Main Areas of Urban City, Easy to reach Free parking transferable to another person or Gold's Gym in Indiaaccess to Gold's Gym worldwide

Promotion:Internet, newspapers, magazines, television and radio Brochures for creating awareness in the market about their health care services; they will bedistributed in major health care seminars and eventsSpecial packages for students, housewives and seniors too.

6. MARKETING MIX

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7. SWOT ANALYSIS

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15Fundamentals of International Management - Assignment No. 1 by Group 7 EPGDIB 2014-16

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8. Porter’s Five Force Analysis

Threats of New Entrants- IncreasingThe threat of new entrants is always at hand if there is a possibility of a profit. But start-up funding and fixed cost is high for a fitness center.

Threats of Substitutes - Low to MediumCrossFit centers.Yoga Centres

Bargaining Power of Suppliers- LowMany Gyms

Power of Buyers – Medium to High

Competitive Rivalry- High

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Implementation Plan:Conduct market surveys • Visit people in the community, do a one on one interview with a small size of people to understand their needs. • Conduct group meetings • Speak to some people that go to gyms and some that don't. Analysis:What is it that is required to be done based on the likes, beliefs and preferences of the Indian people? What are they looking for in a gym? How do we cater to their needs and how do we get them to the gym? Keep in mind, we do not want to know what our competitors are doing. It has to be purely on individual feedback.Strategy:Analysis to be studied and strategies to be planned accordingly. Sample Size: 100 per city (At least 4 cities, 2 metros, 2 tier II cities) Gold's Gym is present in 39 cities (cities can be selected based on convenience)

18Fundamentals of International Management - Assignment No. 1 by Group 7 EPGDIB 2014-16

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Gold's Gym, Dallas, cracks the list at No. 10. Industry sources, which did not have access to Gold's Gym's financial documents, estimated for Club Industry that Gold's Gym had $135 million in 2013 revenue. Gold's Gym reported that it had 661 clubs at the end of 2013.

Club Industry counts only corporate club revenue and revenue derived from franchise fees for franchisors on the list. Other media outlets had different figures for Gold's Gym revenue. Hoover's, a subsidiary of The Dun & Bradstreet Corp., lists Gold's Gym revenue at $80.9 million. InsideView, a software as a service company, listed Gold's Gym revenue at $1.2 billion, but that likely consists of all revenue produced by Gold's Gym corporate and franchised clubs, sources say.Recently, Gold's Gym acquired all 23 clubs from The Rush Fitness Complex, Knoxville, TN, which is No. 31 on this year's Top 100 Clubs list with a reported $44.8 million in 2013 revenue.

http://clubindustry.com/profits/top-100-health-clubs-2014

11. Accounting Information

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