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Detailed info abt Service Mgnt at Gold's Gym
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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.
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.