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Marketing Management

Strategic Marketing Plan Study and Analysis


for Gold Gym

Submitted by:
Akshay (4A) | Sachin (36A) | Kavita ( 19A) | Richa (33A) | Ashirvad ( 9A)
Marketing Management - Group 7 EPGDIB 2014-16

The analysis and report includes following:


1. Problem Statement
2. Introduction
3. Background
4. Segment, Targeting & Positioning
5. Market Strategy
6. Marketing Mix
7. SWOT Analysis
8. Marketing Mix
9. Porters Five Force Analysis
10. Implementation Plan
11. Accounting Information
12. Conclusion
13. Bibliography

Marketing Management - Group 7 EPGDIB 2014-16

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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2. Background

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 another4
few under construction

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

4. SEGMENTING, TARGETING AND


POSITIONING:

4. SEGMENTING, TARGETING AND


POSITIONING:
Gym Membership
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0

Gym Membership

Educating clients on the right aspects of


Fitness.
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5. MARKET STRATEGY

6. MARKETING MIX

6. MARKETING MIX
Product:
Health Care Services:
Aerobics
Cycling
Boxing
Yoga
Muscle Training
Diabetes & Obesity
Control
Place:
Main Areas of Urban City,
Easy to reach
Free parking
transferable to another
person or Gold's Gym in India
access 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 be
distributed in major health care
seminars and events
Special packages for students,
housewives and seniors too.
Price:
Penetration Pricing:
quality exercise and body work out
services at competitive cost
Discounted rates if you wish to workout
between 10 to 5 pm

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7. SWOT ANALYSIS

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

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8. Porters Five Force Analysis


Threats of New EntrantsIncreasing
The 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
Medium
CrossFit centers.
Yoga Centres
Bargaining Power of SuppliersLow
Many 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)

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

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11. Accounting Information


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 Fitne
ss 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
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