Assignment

on

Healthcare and Fitness

(Gold’s Gym)

Ms. Pallavi Chandwaskar

Ms. Rashmi Nadange

Submitted by:

Name Roll Number

Sushant Nadarge P41

Soham Paradkar P37

Abhishek Dhamne P01

Gaurav Samel P09

Nitesh Manikkoth P16

Urvi Bhalla P47

Submitted on: 15 Feb. 13

Submitted to,

Type of process-

People processing as include tangible action to people’s body. And also active involvement

by a member is required.

Service Process:

The service process at gym is as follows :

Orientation-

Whenever a new customer enters the gym he/she introduced to various sections like

“cardiovascular, weight training, aerobic, yoga, steam bath, shower, massage room, changing

room, locker” of gym.

After showing the gym a customer is introduced with various membership types like annual

membership, six months membership, quarterly membership. Information about various

membership package, discounts and number of instalments in which a customer can make

payment is given.

Then formalities like filling of an application form, payment of fees are completed. Then a

membership card is given to new member and the following day a customer is called for

“Body Assessment Test”.

Depending upon the results of “Body Assessment Test” trainer, training and diet program is

assigned to the member. ‘Workout card’ which contains the entire workout routine and

attendance for a month is handed over to a new member.

During very first month of training, a member is introduced with various workout equipments

installed in a gym. And introduction about using those equipments is given to avoid

accidents.

Personal Training-

The process provides an on call personal training staff for the entire membership. All the

trainers are certified, responsible and caring individual. They are referred as “Friendly Fitness

Professionals” Any member can apply for a personal trainer for proper personal training and

making, implementing a plan that will help him/her achieve fitness goals.

Market Positioning-

Started in 1965 by Joe Gold in Texas Gold’s gym has become pioneer in health care and

fitness industry. In 1975, Gold’s gym received international attention when it was featured in

the major motion picture (Oscar winner) “Pumping Iron”. It was thus effectively established

as the “Mecca of Bodybuilding”.Gold’s gym claim to be the largest chain of gyms in the

world with more than 700 locations in 30 countries. It has positioned itself as a premium

brand in healthcare and fitness sector. In India they target high profile people. Gold’s gyms

workout area are equipped with state of art workout equipments and offers various group

exercises like group cycling, Pilates, Latin dance, yoga and stretching through its Gold’s

Group Exercise program.

Gold’s gym was a first gym in the world to introduce the “Cardio Cinema” concept, which is

an actual movie theatre inside the facility with treadmills instead of seats. Gold’s gym now

has more than 50 “Cardio Cinemas” throughout the United States of America, more than any

competitor.

In India, Gold’s gym started its operations in 2002. The first branch was set up near “Nepean

Sea Road, Mumbai”. In the next few years the number grew to 65 branches in India. Though

it has tough competition from local players like ‘Talwalkar’s, Avenjue, true fitness, The gym,

Endurance’ it is acknowledged for its unrivalled success in providing the finest equipment

and fitness knowledge available to help its member achieve their individual fitness goal. It

follows a globally proven fitness training module with state of the art infrastructure and

delivery methodology and continuous up gradation through training programs. With certified

trainers and nutritional counselling, Gold’s gym provides a comprehensive approach to the

health and well being of its member. Whether member’s goal is to burn fat, gain muscle,

build strength, increase flexibility and endurance or improve cardiovascular health, Gold’s

gym has the atmosphere and experience they need.

Logo-

Tagline-

Initially tagline for Gold’s gym was, “No-frills gym for serious weightlifters”.

However over the years they have changed their tagline in order to appeal more broad

class of consumers.

In 2004 they came up with new tagline-“Train Anyway!”

Currently their tagline is –“Change your body. Change your life!”

5 Service quality dimensions-

1. Tangibles

2. Reliability

3. Responsiveness

4. Empathy

5. Assurance

1. Tangibles-

This dimension includes physical facilities, equipments and appearances of personnel.

Each and every branch of Gold’s gym is equipped with state of art and world class

workout equipments. The gym has adequate number of Treadmills, Cycling, Elliptical

machines for Cardiovascular exercises. In weight lifting section gym has multi gym,

Incline bench, Utility bench, declined bench, shoulder press bench, vertical knee raise

dip, Hyper extension, Squat racks, Glut-ham machines, Flat bench, Multipurpose bench,

Cable cross over, Compact cable cross over, cable column, plate loaded machine series

equipments like supine press, shoulder press, triceps extension, lat pull down, leg extension.

Gym also has shower,steam bath, locker(permanent/temporary), massage facilities. The gym

also has “Body Assessment Test” machines that used to analyze percentage of fat, muscle

in body.

Entire gym is equipped with CCTV cameras for the purpose of video surveillance of area

and to keep watch on trainers.

Appearance of trainers has significant impact on any gym’s ability to get clients. The

trainers have to be in proper shape and look healthy. Because members may feel

unconfident in being trained by out of shape trainer.

Gold’s gym is aware of this fact and it has skilled, experienced and in shape staff of

trainers. Who present themselves as a role model, a personality to be followed.

2.Reliability-

This includes ability of gym to perform the promised service dependably and accurately.

People at Gold’s gym are truly committed to offering the community an affordable, fun

and friendly environment that is managed with uncompromising integrity, reliability and

professionalism.

The Gold’s gym provides its new members an unconditional, 30 day, 100% money back

guarantee. If any member is not happy with the service being provided by the gym in first

30 days he/she can cancel membership and will get 100% refund. Even the gym will not

charge its member for 30 the days. That’s how confident they are that every member who

joins them is going to like them.

3. Responsiveness-

This includes willingness to help customers and provide prompt service.

The Gold’s gym is known for its prompt service. Trainers are there to assist gym members

any time when they need it. Most important thing in a gym a member looks for is

“Spotter”. When a member cant push further or cant lift those heavy weight and about to

give up what he looks for is a spotter. The role of this spotter is carried out efficiently by

those professional trainers.

4. Assurance-

This includes knowledge of trainers and their ability to inspire trust and

confidence.(i.e. competence, credibility and security).

To ensure that trainers meet all the requirements and possess great knowledge of

fitness Gold’s Gym Fitness Institute offers the most exciting and up-to-date education

pathway to gain industry leading qualifications as well as ongoing training in all

aspects of the fitness industry.

5. Empathy

This includes caring and individual attention that the trainers provides its client.

Like discussing with member, knowing area of problem where the member is not making

progress, consulting the member regarding diet, training etc.

Service Gaps-

Gaps in service are the differences between a present quality of service and the ideal

quality of service of a company. They are important factors because Gold’s Gym need to

focus on and should know how to reduce or eliminate those service gaps. If there are a

lot of gaps in the service, the Gold’s Gym will have to face serious problems and it will be

difficult for it to survive in such stiff competition.

Quality gaps are classified as-

1. Positioning gap

2. Specification gap

3. Delivery gap

4. Communication gap 5.Perception gap

1. Positioning Gap

Pertains to manager’s perceptions of member’s expectations and the relative importance

consumers attach to the quality of dimensions.

2. Specification Gap

The difference between what management believes the client wants and what the

members expect the business to provide.

3. Delivery Gap.

The difference between the service provided by the trainers and management and the

specifications set by Gym management.

4. Communication Gap.

Exists when the promises communicated by the Gym Management to the member do not

match the member’s expectations.

5. Perception Gap

The difference between the member’s internal perception and expectations of the

services.

Service Guarantee at Gold’s Gym-

The Gold’s gym provides its new members an unconditional, 30 day, 100% money back

guarantee. If any member is not happy with the service being provided by the gym in first

30 days he/she can cancel membership and will get 100% refund. Even the gym will not

charge its member for 30 the days. That’s how confident they are that every member who

joins them is going to like them.

Customer relationship management-

Under their CRM program they have Gold’s Gym Retention Program(CRM).

This email based retention program contains targeted/customized emails that are sent to

members based on where they are in the member lifecycle. The program supports new

member, existing members and at risk members automatically. The Gold’s Gym can also

create customized emails for any segment of its database and send through the Ad

Builder. In 2012 several exciting enhancements to the CRM program rolled out. New

features such as prospect nurturing, enhanced ad hoc template and optimized creative will

help drive higher retention and engagement rates with its members.

Most focused ‘P’ of service management-

Though Gold’s gym focuses on 8 P’s of service management like-people, process,

product, promotion, price, physical evidence, process and profit, their most focused P of

service management is “Physical Evidence”

Gym interior design should ideally reflect the activity, vigor and vibrancy of such a

facility. From the tiles on the floor to the colors on the walls- everything should support and

enhance the energy levels of the place.

Optimal utilization of the space is competitive advantage the Gold’s Gym has over its

competitors. High ceilings and free space ensures there’s ample circulation to keep the

workout area fresh.

Lighting plays an important role in exercise space. The Gold’s Gym typically uses arrays of

luminaires, multi-bulb fixtures with a casing and optics, in its main spaces to shed

light. Architects put careful consideration into lighting levels based on the tasks being

attempted by exercisers, to set a mood or theme for the activity.

The gym also has murals and pictures that are motivating , large life size mirrors add to

the environment of the Gym. A hi-fi Music system, large screen televisions, LCD

displays in front of treadmill and elliptical machines makes the workout session

enjoyable.

Blue Print of Gold Gyms-

Strategies to manage capacity and demand-

To increase the capacity, the Gold’s gym may consider creating some new facilities and

upgrading the existing equipment in order to attract potential customers. Constructing a

Spa centre is an appropriate situation to attract both business and leisure customers. The

gym area should be including sauna, steam, massage and other treatment facilities. On the

other hands, they should purchase some extra cardiovascular machines and recruit more

trainers. To increase the demand , gym manager can evaluate the results based on those

new facilities, establishing potential customer and setting up discount packages. E.g. In

off season(Rainy season) 20 %, 40% off on annual membership, discounts on group

admissions, free diet consulting, free trial for a month of personal training service etc.

Pricing strategies of Gold’s Gym-

Determining the price for a service can be a significant challenge for any organization.

There are number of variables to consider such as ‘will the price be competitive?.What

price will optimize gym capacity? Can special event pricing be adopted?’

The Gold’s Gym uses premium pricing strategy as its target is high class and higher

middle class people. Following are various pricing strategies adopted by Gold’s Gym-

1. Free Trials-

Some people may not spend their money on annual gym membership until they can try it

out first. Every person has a unique set of workout needs, and offering free trial, such as a

free membership that lasts a week or a month can give potential customer an opportunity to

see if facility suits their needs. The free trial at Gold’s gym gives management a chance

to make a good impression and convince the customer to continue with full membership.

2. Introductory rates-

Gold’s gym uses another tactics to attract potential customer. E.g. In rainy season, on

festival occasion like diwali, 31st, Christmas The Gold’s Gym comes with its introductory

offers. It offers 40% off for first 5 months on subscription of annual membership.

3. Discounts for family and friends-

Family and friends often go to gym together, which can make gym membership a

group decision. Most of the times 4-5 college friends joins gym together or more than 2

family members joins gym together. And here they expect discount on group

admission. The Gold’s Gym provides 10% off on couple admission. Gold Gyms add extra

month in the membership of its existing member on referring the gym to others.

Integrated Marketing communications (Promotion Mix) of Gold’s Gym-

1. Advertising

Advertising is a critical component in promoting any business, and an area that Gold’s

Gym has excelled in for nearly 43 years. Their track record of effective, award-winning

advertising campaigns has established Gold’s Gym as the most recognized in the fitness

industry worldwide.

A. Elevator advertising-

Stickers showing two muscular arms were pasted outside the lift doors. Another

sticker showing the torso of the body builder with arms stretched was pasted on the inside

of the lift wall. When the lift door opened, the arms parted

and looked as if the man is forcing the door open.

.

2. Personal Selling-

Selling the membership of the gym is the core task of sales team in Gold’s Gym. They have

to convince people how Gold’s gym is better than any other competitor in the market.

3. Sales Promotion-

The Gold’s Gym distributes free coupons, on which coupon holder can get a free trial of the

service for a month. The Gold’s Gym also distributes free samples and trial packs of

nutritional supplements like Hydro builder, Whey protein and Weight gainer.