MARKETING STRATEGY FOR GOLD`S GYM 5
MarketingStrategy for Gold`s Gym
MarketingStrategy for Gold`s Gym
Foundedin 1965, Gold`s Gym is an international level fitness center startedby Joe Gold in California. The fitness center is headquartered in theUnited States’ state of Texas in Dallas (Gold`s Gym, n.d). As afitness center frequented by many celebrities, the aim of thismarketing strategy is to formulate a target market and the marketingmix of the gym. From a perspective of the HRM, this marketingstrategy will explore the services and pricing strategies, types ofworkers the business involves, related costs of workers, productdistribution and the essential marketing mix for the gym.
Themain services offered by the fitness center are fitness and gymfacilities for both health fitness and for sport fitness. The pricingstrategy of the fitness center is formulated with two main segments,the up market customers and the low-end customers. The up-marketcustomer pricing is higher and contains facilities set with specialfeatures and high-class equipment. According to Mink et al (2014),this will create a fashionable appeal, the high-income customers whoare conscious of the changes in fashion and style. In this segment,the gym will set a determined number of private gym cubes, which willbe exclusively for special customers and VIP guests. On the other endof the segment, the gym will admit general clients in the standardexecutive section of the fitness centers with standard pricing rates.
Anothermain target market will be segmented in terms of the countries andcontinents where the gym is situated. The differences in the pricinglevels will be maintained based on the economic levels of the countryas well as the number of customers in each country. To match thecompetition in these countries, the gym will establish a set ofprices that conform with the pricing levels of the industry in eachof the countries. In the same strategy, the services to be offeredwill vary with the country where the franchise is operating from.This means that the owners of Gold’s Gym will be at limited libertyto vary their fitness services and gym facilities in accordance withthe environment.
Gold’sGym uses both permanent and temporary workers in the implementationof its strategies both in marketing and in the general operations ofthe gym. The balance of the two ends of workers depends on thedecisions of the franchise owners and also depends on the market.Kotlerand Armstrong (2010) arguethat the favorable market leads to increased demand for moreemployees by a business. Therefore, the market performance as well asthe laws of the host country will influence the type of workers.However, the organization recommends that all Gold’s Gym centersmust have enough workers who are professional.
Thecosts associated with permanent workers are fixed to the business andrecurs with every financial period of a the business (Boyes, 2011).Therefore, Gold’s Gym will anticipate a certain level of sales thatwill be able to cover the costs of the permanent employees as well asother fixed cost elements. On the other hand, temporary workers arepart of the variable costs of the labor costing. According to Farriset al (2010),variable costs vary with the production units of a business. In thecase of Gold’s Gym, the costs of temporary employees will becovered by the services offered at the fitness facility. This isbecause the need for temporary employees will depend on the level ofoperational activities and the number of the customers to be servedat the center.
Thenumber of customers directly affects the pricing strategies of thefitness center. This is because of the economies of scale thatcustomers present, especially on the hiring of employees (Lamb &McDaniel, 2008). According to Aaker(2006), thelarger number of customers, the better the possibility anorganization has to reduce the costs involved in running anorganization. Therefore, Gold’s Gym will work to increase thenumber of customers with a view of reducing the prices. This willmake the fitness center competitive in the market and makes themarketing function easier and friendly.
Gold’sGym has distributed its services and fitness centers across the globethrough the franchise system. Under the franchise, Gold’s Gymstandardizes the quality of services offered in order to maintain thebrand status of a lucrative gym service. However, most of theadministrative operations are located in the main headquarters inIrving, Texas.
Thepromotion of the company’s products will be done at two levels, atthe franchise level and at the headquarters level. The headquarterswill do promotional campaigns at the global perspective by targetingglobal media as the main channel of advertising. This will be aimedat creating global awareness of the brand and informing the world ofthe reliability of the brand. The second level promotion will be doneby respective franchise owners in different countries. This way,every owner of the Gold’s Gym franchise will establish promotionalmessages that are consistent with the global marketing messages. Atthe same time the franchise owner will design a promotion thatresponds to the unique market of the country of operation.
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