Market Orientation Approach of Pure Gym
The ever increasing consciousness for healthy living and fitness awareness has led to the rise of fitness clubs, gyms, slimming centers and health clubs all round the globe. Such growth has helped in the growth of the fitness industry in the United Kingdom as well. The country provides a good market for as there are consumers who are keen to have strict fitness regimes for their healthy life styles. The Pure Gym Limited is one of UKs most flourishing chain of fitness and health training clubs. Established in 2009 by Peter Roberts in Leeds in the UK, this fitness chain provides a 24-hour service to the members. The chain started with four clubs in Leeds, Manchester, Wolverhampton and Edinburgh and now it has 176 gyms all over the country from Aberdeen to Southampton. The fitness chain now targets at opening 250 to 300 gym centers in the UK by 2020 (Cave 2017).
The aim of this report is to find out the distinct marketing strategies that the fitness chain has adopted in its plan of expansion in the UK.
Figure1. Logo of Pure Gym launched in 2015
(Source: Official website of Pure Gym.)
Marketing orientation in a business means an approach that focuses on selling products to consumers depending on their tastes, likes, dislikes and preferences. While the selling orientation approach focuses on raising conscious desire in the mind of the consumers to buy what the business wants to sell (Terho et al. 2015). A company which adopts a market oriented approach constantly tries to understand the needs of its customer base and strives to meet them through its products and services. The Pure Gym chain has adopted the market orientation approach in its business model.
The market orientation approach helps the businesses to plan its products and services according to the needs of the consumer. Particularly in the leisure industry, where the every individual customer needs his or her own personalized and customized services such an approach has helped the Pure Gyms to lay the foundation of their business on this idea. The Pure gym chain was founded with the basic aim of providing health and fitness training clubs in the UK. But gradually the chain grew up as UK’s most successful fitness chains. The reason behind this success was the fact that at the time of inception of Pure Gym UK had leisure clubs and night clubs that encouraged membership for a contract period and therefore the Pure Gyms came up with a fresh approach of a 24 hours service at affordable prices unlike its contemporaries. According to the founder Peter Roberts, there are three factors that have contributed to the success of Pure Gym. They are- Affordable price, Lack of Contract and 24 hours service. Apart from this, the brand also explored on the possibilities of a virtual market by starting online sessions and health classes through its website. They also offer free classes and sessions specially designed for students.
Marketing Environment of Pure Gym
Figure 2: Webpage of Pure Gym
(Source: Official website of Pure Gym)
The marketing environment of a business or firm refers to all the external and internal factors that affect and influence its functions and operations. Marketing environment is divided into two types- micro and macro (Kotler et al. 2015). The micro environment refers to the internal forces and actions that function within the organization affecting and influencing its operations. The organizational structure, stake holders, producers, suppliers, distributors and retailers constitute the internal environment. The fitness centers of Pure Gym, the trainers and instructors, the customers all constitute the internal environment of the fitness chain.
The macro environment consists of all the political, economic, social, technological, environmental and legal factors surrounding a business or firm. The Pure Gym operates in the UK therefore, the overall environment of the country, its political, economic, demographic factors, policies, laws and regulations that determine operations of the leisure and fitness industry, the technological research and development in health and medicines are what encompass the macro environment of the fitness chain. The Pure Gym chain in order to run its operations successfully has to understand in a holistic manner all the legal bindings, political affiliations, economic status of the population it is catering to (Nilsson and Ballantyne 2014).
Two factors that have affected the marketing decisions of Pure Gym chain are: economic and technological.
The Pure Gym operates in the UK which is the fifth largest economy in the world in terms of purchasing power. The fitness industry is lucrative here as the industrial development has led the citizens to a mechanical life style where physical exercise is the only key to good health. As per the report of the United Nations 81.9 % of the population in UK is urban. This provides a variant market segment for the growth of the fitness industry. The standard of living and the quality of life of the people are very high. By offering affordable prices for its gym sessions in a diverse range the Pure Gym chain have covered the majority of the urban population. The market segmentation of the consumers has also proved profitable for the fitness brand. The technological development has helped the brand to be able to create its online platform. The access to internet, mobiles and broadband has enabled them to introduce concepts like ‘online or virtual gym classes’, tutorials and free trainings (Cave, 2017).
Factors Affecting Marketing Decisions of Pure Gym
The Pure Gym chain operates throughout the UK and its expansion is still on the rise. But the number of employees allocated to each such fitness center is very less. Hence, the company can increase the number of employees in each of its centers by employing more than two trainers, self employed trainers and can also include dieticians and physicians (Karen, 2015). This will be an additional benefit to the customers who will be able to relate their issues while undergoing the trainings and exercises.
Another important aspect is that the fitness brand can also try and explore resources to maintain the various equipments and machinery used in their centers. They can also create centers with machinery specially designed only for a particular segment of consumers. A proper maintenance of the machineries will also lead to an effective reduction of cost for the brand.
The factors of Pure Gym’s micro environment which can be regarded as its strength are its organizational policies and its customer base.
The Pure Gym chain operates mainly with the policy of providing fitness and training facilities at affordable prices. The success in this regard is determined by their win over the much hyped notion that whatever is cheap is low in quality. The striking balance that the fitness chain has achieved in providing flexible training and gym sessions without contracts at affordable prices to a varied range of consumers have proved very profitable for the brand (Lloyd and Payne, 2013).
The chain caters to the health and fitness needs of a variety of consumers ranging from children to adults. With special packages at concessional rates for students and different affordable prices for regular as well as online users it has penetrated very deep into UK’s leisure industry market.
A marketing strategy consists of the entire plan of events and activities meant to promote a particular product or service to the customers (McDonald and Wilson, 2016). The fundamental goal of marketing strategy is to increase sales and achieve a sustainable competitive advantage. The concept of sustainable competitive advantage refers to the capacity of a firm or company that provides it an edge over its competitors.
Market segmentation refers to the policy of dividing the market into specific divisions or segments depending on the similar buying habits and preferences of the customers. It is basically the process of dividing the entire market into specific divisions to create strategies to sell products and services according to the tastes of these specific target groups. A market is heterogeneous in general and to take a customer centric approach it is very important to understand the diverse needs, wants, desires, likes and dislikes of the different types of customers that exist in the market (Armstrong et al., 2015). The Pure Gyms are based in such a heterogeneous market of UK where there are customers from different age groups, backgrounds and economic status. Some customers might have started coming to the gyms because they want a healthy lifestyle in general while, there may be some who had come to avoid some ailments. There are children, adults and even elderly people who constitute the customer base. Therefore, in order to meet the specific needs of every individual customer it is very important for the Pure Gym to divide the market into various segments.
Micro and Macro Environment of Pure Gym
The market segment selected for the new chains of Pure Gym’s centers are the youth between the age group of 13 to 19 years.
In case of the Pure Gym chain which is planning to launch new fitness centers between the age group of 13-19, the marketing mix can be explained in the following manner:
Product: The products of Pure Gym chain in regard to the customer target of Pure Gym are the various offers for fitness training packages. The products can be fitness classes; both physical and virtual or online sessions and special classes during exams for example, these sessions can help the students to relax and be stress free or improve concentration, flexible timing classes where the customers have the freedom to choose their session timings.
Place: The products can be made available in all the centers as well as through the online website of Pure Gym.
Price: The price should be kept low keeping in mind the fact that the target group is mostly students. Price can be made affordable by giving facilities like free classes for a week or different slabs of discount for customers who have stayed for different durations. For example, 15% discount for students who have taken sessions for three weeks.
Promotion: The promotional mix shall consist of a good advertising and promotional. Online advertisements, print advertisements and audio-visual advertisement with catchy headlines could be used to. The promotional strategy can be designed in such a manner that it highlights the concept of ‘affordable cost for youth with flexible timings’. The age group of 13 to 19 years is basically students who are in the schools and high schools so campaigns can be designed to highlight the need for a ‘healthy body for a healthy mind’. There can also be special offers like the liberty to get special discounts if the student is unable to come for his sessions during exams. This flexible strategy will help retain the customers by making them feel ‘special’
People: The people are the one who will plan and execute the promotional strategy from the trainers, fitness experts, and sales promotion agent to the organizational head of the Pure Gym chain.
Processes: The customers will first of all log in to the Pure Gym website and enroll as members or just o to a Pure Gym center and enroll as member. The payment can be made online after the completion of the sessions or can be made in parts. There can also be a process by which if the customer as enrolled as member once he can remain a member for lifetime.
Marketing Strategies of Pure Gym
Physical evidences: The physical evidences will be the results of reduction in weight, increase in activeness, reduction in calories, increase in concentration and good metabolism.
The Pure Gym fitness chain can effectively work with the above communication plan to launch its set of new health and fitness centers for the youth.
This story board is used to describe the communication plan undertaken to launch a new chain of fitness centers of Pure gyms for youth of 13-19 years of age. The communication plan is designed in line with the AIDA theory to gain maximum profitability of the business.
Products: Free Classes, Online Classes, sessions, Special Sessions during exams, loyalty cards.
Place: The products are available online as well as in the website of Pure Gym. Customers just need to enroll as members.
Price: Price is kept low keeping in mind the target group is student community.
Promotion: Online advertisements, print advertisements and audio-visual advertisement with catchy headlines. For example: ‘turn fat to fit’ or ‘tread down your tones’.
People: The individuals who are involved in the entire process from the sales agent to the organizational head, the fitness trainers and employees.
Processes: These refer to the processes of enrolling as members, payment modes, online classes and sessions.
Physical evidences: The physical evidences will be the results of reduction in weight, obesity, increase in activeness and reduction in calories.
Conclusion
The Pure gym chain is UK’s leading fitness chain providing affordable and flexible health and fitness sessions to its customer base. The chain has targeted its cliental base by providing a flexible approach of offering contract free sessions and classes to customers. The pioneering concept of introducing 24 hour gyms in the whole of UK has also made it a brand recognizable in the field of all time fitness centers. The gym chain also needs to monitor its internal environmental factors of employee allocation and resource allocation to convert into a center of excellence in fitness industry business. The ambitious plan of launching new chains of fitness centers is not free from obstacles. But a well built communication plan with an effective marketing and promotional strategy will help achieve this goal.
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