Lifestyles Fitness and Globalization - Essay Example

?Marketing Report on Lifestyles Fitness Introduction The globalisation initiative has not only intensified organisations but also enhanced the bargaining power of customers as they have a large pool of product choices at their disposal. Nevertheless, the 21st century customer demands more value from service providers for exchange of money; therefore, quality maintenance and improvement has become foremost for survival and growth. Indeed, the globalised world is highly competitive and challenging for enterprises because of rapid changes in external business environment. The more informed (through marketing research), flexible and adaptable a firm is, the greater the probability of its success and development. Unequivocally, firms have greater emphasis on marketing research to generate useful information that in turn facilitates in modifying business strategies, in decision-making and problem-solving. For instance, the emergence of mass media has greatly affected / influenced the attitudes, perceptions, behaviours, beliefs and lifestyles of people all across the globe, thereby creating new challenges for a firm to thrive in contemporary environment. Marketing research (exploratory, descriptive and causal) is also beneficial in analysing the business potential and viability of products. In addition, it enables the firm to gain insight over underlying factors and critical risks after which firms could amend their strategic objectives and product lines. Nevertheless, the research enables the firms to identify gaps in consumer markets, to innovate and differentiate their procedures and products followed by attainment of cost leadership. An important advantage of marketing research is that it facilitates change management initiatives. In other words, it helps replacing the old workplace rules, regulations, requirements and criteria by new workplace standards and roles so that the organisations could flourish in an absolutely uncertain, unpredictable, unclear, unstructured and unexpected business environment. A professional or private sports / fitness club initiates marketing research after problem identification (for example – when sales decline because customers are switching to other centres, when top facilities in centre unable to attract maximum customers due to flaws in marketing strategy, when competition increased after inauguration of new clubs at nearby locations and other issues, when customers all across the city are unaware of the club’s product offerings etc.). In simple words, the research enables a sports / fitness club to draw useful inferences regarding external environment and to compare differences in their actual and perceived strengths. Having assessed the aforementioned, the club could then implement more ‘effective’ marketing and advertising strategies that can be utilised to enhance the profitability and long-term monetary gains. This paper will demonstrate the marketing strategies adopted by Lifestyle Aquatic Fitness Centre - a UK based sporting, exercising and gyming centre that provides premium quality fitness services to public across Liverpool. Nonetheless, Lifestyle Fitness has always focused towards brand recognition, innovation, differentiation and value proposition because these aforementioned are the foundations of success and sustainability of any group or business organisation. Indeed, the strategic planners pay special attention to maintain and improve service quality through induction of new equipment, training courses, facilities and sporting activities because it enhances market reputation and goodwill among stakeholders and customers. Total Quality Management principles such as benchmarking, continuous learning and experimentation etc. are adopted for value creation, which then lead to improvement in sales and profitability. Without any doubt, the aforementioned provides Lifestyle a competitive edge over rivals such as Greens Health, Hercules Health & Fitness Centre, Novotel Liverpool, Absolutions Health Clud and others etc. in fitness and sporting industry . Lifestyle Fitness clubs is a unique, full of entertainment, sporting and fitness club that takes into account a customer’s leisure needs after which it designs its internal club atmosphere. Lifestyle’s mission statement is "more people, more active, more often". Therefore, the club always prioritises customers’ satisfaction and need fulfillment over monetary gains. The suggestions and ideas from members are highly appreciated and put into practice where feasible. In addition, the club has inclination to expand in lucrative UK market by inaugurating operations in other lucrative counties so that it could maximise its financial gains. The company would like to accomplish its mission by continuous focus on innovation, differentiation and expansion of services portfolio (Fitness Venues Report, 2011). As far as the research methodology for preparation of the case study is concerned, it is worth mentioned that the author has used internet to access secondary information and conducted face-to-face interviews with managers of Lifestyle Aquatic Fitness centre to obtain first hand information. Nevertheless, the primary research helped expanding the secondary information on marketing strategies garnered from Lifestyle’s official website. 2. Case Study The researcher will specifically throw light over Lifestyle’s target market, segmentation, differentiation and positioning, marketing and advertising strategies in detail in this chapter. The researcher will demonstrate and evaluate the strategies that are utilised by Lifestyle sports club in order to maximise profitability (i.e., through increased purchase behaviour of both new and existing consumers). It should be emphasised that the club managers are aware of the fact that competition among individuals in corporate arena has intensified mental / psychological pressure, work – family conflicts and time restrictions; therefore, they have created and designed fitness centres in such a way that could maximise convenience and comfort, mollify pressures and alleviate work-related tension. In fact, the core objective is not only offering physical fitness services (workouts) but also mitigating mental worries and boredom to refresh club members. The club has inducted the ‘best cardiovascular and resistance equipment - whatever the age, fitness, size or ability’ of members (Lifestyle Website, 2011). Lifestyles strongly convicts that a haphazard club does not entice fitness and entertainment seeking personnel; therefore, the management argues that setting a distinctive internal atmosphere and display is their most important business marketing strategy. Indeed, fitness equipment, machinery and instructors are all secondary components because interested personnel first prioritise club’s environment where they could relax, refresh and exercise. Lifestyle, therefore, fulfills this consumer demand by instilling an enjoyable, clean and ‘non-intimidating atmosphere supported with audio-visual entertainment and stylish surroundings’ (Lifestyle Website, 2011). For instance, Lifestyle is a council funded fitness regime based in Liverpool with an aim to become market leader in industry by offering premium quality fitness / sporting / entertainment / clubbing services. Lifestyle's objective is to get people in the community more active and promote sport development because recreational activities lead to creation of a healthy and prosperous society. Nevertheless, the club’s fitness and exercise programmes not only provide internal satisfaction to members but also save their precious money they would have spent on medicines and health expenses. Lifestyle managers believe that community development is possible only when individuals become smart, dynamic and burden-free with zero mental worries and psychological pressure. For this purpose, they have established 15 centres across Liverpool and have 38 centres across UK while some openings are in pipeline. 2.1 - Target Market Lifestyle Fitness has a very broad target market, which comprises of customers from all the classes and age groups. In other words, the club targets entire community and tempt customers usually from elite, upper – middle and middle – middle social classes. For instance, Lifestyle offers sporting and fitness programmes / services / products to teenagers, young adults, middle – aged and elderly market segments. The club also targets business personnel and corporates by offering unique fitness and sport packages that could best meet all desires of executives / self employed who have soporific routine and hectic tiresome schedules. 2.2 - Market Segmentation Lifestyle has segmented its broad target market into five major groups, which include full- and part-time students (teenagers and young adults), senior and middle-aged citizens, couples, and families with children. In general, the fitness centre has also segmented UK market into different geographic regions such as North and South Wales, West and East Midlands, N. West and N. East etc. The club does consider the demographic factors such as age, gender, marital status, education and others etc. before designing its services packages, formulating advertising campaigns and offering discounts. For example, the centre has been targeting teenagers and young adults (between 15 – 24 years) by offering leisure, gaming, music, videos, fitness packages, fitness accessories and apparel, sporting activities and healthcare programmes (instructors’ advices). Next, Lifestyle Fitness also segmented its customers after analysing their tastes, living standards, life styles and other psychographic factors. For example, the membership programmes differ for customers from different social classes. Elite and upper – middle groups (no compromise on facilities, service quality and environment) are offered extensive programmes and permitted use of all facilities because they could afford. Similarly, the middle class young adults could use Aqua and Class packages to meet their preferences. Behavior segmentation overlaps (to some extent) with psychographic segmentation because it also includes consideration of consumer behaviors, life styles, perceptions, attitudes, beliefs etc. Hence, managers at Lifestyle also offer free counseling to members with rigid mindsets towards exercising and fitness. There are certain weight management programmes that aim to target aforementioned. 2.3 – Core Marketing and Promotional Techniques The first core marketing technique used by Lifestyle representatives is that they personally meet customers to provide information regarding facilities, discounts, guidance, fitness level, membership benefits etc. In this way, individual attention is given to potential members and their ambiguities are clarified. The second technique is offering promotional discounts to new members who show up for the first time at Lifestyle centres. The third technique is about taking advantage of location, which is obtained when Lifestyle inaugurates new centres in areas with surrounding schools and educational institutions. This is mainly an attempt to attract full- and part-time students (and to save their transportations costs and time involved in traveling). The fourth marketing techniques is offering special services for groups that have special needs, i.e. swimming times for Muslim women who can only have female staff supervising. In this way, a relatively medium sized segment of Muslim and Asian women with religious constrictions is also targeted with fitness services. The fifth useful technique is spreading news of Lifestyle by word of mouth. Also, Lifestyle has also established a referral program known as “Earn when you burn” for members who bring new members. Commissions and fee-waivers are offered to existing members on referrals. Another unique marketing technique is offering 1-day free gym passes to potential members that provide them access to all club facilities for a whole day. Instructors warmly welcome such new comers and use their persuasive capabilities to find a handful of new members. Finally, the company’s overall marketing programme has proven effective because it utilises direct marketing, personal selling and network marketing components for enhancing members’ base, increasing sales turnover and profitability. 2.4 – Advertising Media Traditional This should be Lifestyle Fitness allocates significant budget for advertising and promotion of its services and goods through traditional media. The company uses print media (newspapers, magazines, brochures and pamphlets.), radio, and television / electronic media for publicity of store location and promotion of sporting centres. The company benefits financially from its well-established brand name, which brings new customers on regular basis. Internet and Social Media Lifestyle largely uses internet media for publicity and promotion of services / goods. Websites such as www.apple.com are used for providing public information about promotional deals, location of company stores, fitness articles, contact numbers etc. In addition, customers may fill membership form online and register as new members. Lifestyle has also been effectively using Social Media that allows participation between a brand and consumers. It is not a push of information rather a conversation because the company listens, analyzes and responds to consumer reviews and suggestions. The fitness centre has created a new layer of influencers, mainstream media, bloggers, digital influencers, and consumers that promote Lifestyle’s brand across UK. Lifestyle uses online digital communities such as Face book, Twitter and You Tube. Official fan pages and groups have been designed at Face book and Twitter that post news, promotion, events, commercials and related videos. Similarly, the company uses YouTube for exercise tips and publicity, event coverage and members’ reviews. Miscellaneous Media Billboards and Sign Boards are also used as they have proven to be a very effective marketing strategy for a very long time, mostly on top of a high-rise building and/or in front of a public building with a lot of daily traffic passing by. 2.5 – Product-Market Expansion Matrix Market Penetration This option is about targeting existing products to existing consumers in the market through aggressive informative, persuasive and reminder advertising campaigns. Nevertheless, the strategy also includes price reductions, sales discounts, rebates etc. as it helps the company in increasing brand awareness, popularity and sales in the short run. Lifestyle uses this strategy when it opens new centres across Liverpool or any other county. In addition, discounts are also offered to students during summer vacations to increase sales of certain goods and services. Market Development This strategy is about marketing existing products across new markets to enhance sales volume and profitability. It is worthwhile to mention that Lifestyle Fitness has been planning to establish new stores outside Liverpool to reduce dependence on revenue streams from a particular territory. Upon interviewing, the manager expressed that they would not only setup traditional gym centres in new markets like Lancashire and Wolsingham but also establish multi-purpose fitness centres like Lifestyle Aquatic in Liverpool. For instance, the megastores will also be opened in new cities for selling fitness products and apparel. Product Development Another market strategy of Lifestyle Fitness is product development, which is about innovating existing brands and developing new products for existing consumers to increase market share and financial gains. Indeed, it should be highlighted that the instructors at Lifestyle develop a separate mix of fitness exercises for each customer depending upon his / her fitness level. Next, the modern gym techniques are also adopted to formulate workout programmes, thereby ensuring top service quality. News services such as gaming, sporting, aquatic ventures etc. are constantly added in product portfolio. In short, the club strongly convicts in innovation, service differentiation, value proposition and brand recognition to obtain clear, distinctive and unique image in the minds of consumers. Lastly, the club replaces old cardiovascular machines such as treadmills, cycling and others etc. with modern equipment for convenience and comfort of customers. Diversification Lifestyle diversifies its business by not only offering fitness programmes and gym facilities but also the accessories and apparel are marketed at Lifestyle shops. In addition, special services such as swimming and sporting activities are also offered as part of diversification strategy. 2.6 - Membership Costs If you visit Lifestyles regularly we recommend that you sign up to one of our membership schemes and save pounds. Pay monthly by direct debit – pay first month at the time of joining. Membership Adults Couples Family (2 adults and children under 16 at same address) Junior/Senior citizens/Full time students TOTAL ?30 ?52 ?60 ?21.20 PLUS ?26 ?44 ?56 ?18 AQUA PLUS ?20 ?34 N/A ?13.50 AQUA ?13.50 ?21.50 ?25.50 ?10 CLAS ?25.50 ?44.25 N/A ?18.30 Sources LS Fitness UK (n.d). Lifestyle Fitness UK Ltd / Pocket Innovation Ltd: Terms and Conditions” Lifestyle Fitness [Online] Available at www.lsfit.co.uk/2_documents/Terms%20&%20Conditions.pdf Liverpool Government (2011) “Lifestyle Fitness” Liverpool.gov.uk [Online] Available at http://www.liverpool.gov.uk/leisure-parks-and-events/leisure-facilities/ Fitness Venues Report (2011). “Lifestyle Fitness centres reviewed” Fitness Venues [Online] Available at http://www.fitnessvenues.com/uk/lifestyle-fitness-leisure-centres Minter, M.K. (1998). Organisational behaviour. In Contemporary Sport Management (eds J.B. Parks, B.R.K. Zanger and J. Quarterman (1998). pp 79 – 89. Mintzberg, H. and Waters, J.A. (1985). Of strategies, deliberate and emergent. Strategic Management Journal, 6, 257-272 Reppel, A.E., Szmigin, I. and Gruber, T. (2006). The iPod phenomenon: identifying a market leader’s secrets through qualitative marketing research. Journal of Product and Brand Management, 15(4), 239-249. Schempp, P. (1993) Constructing professional knowledge: a case study of an experienced high school teacher. Journal of Teaching in Physical Education, 13(1), 2–23. Company’s official website www.lifestylefitness.co.uk An Interview with Fitness Centre Officials Read More

 

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