Consumer Decision Making Process on Gold’s Gym & Health Club

Submitted by :Vishnoo Preethi, Vikas, Vipul, Tarun,

Vijay

Introduction

ObjectiveTo understand the Consumer Decision making towards selecting Gold’s Gym & health club to enhance the existing services, increase footfall and revenues.

Gold's Gym International, Inc. is an American chain of international co-ed fitness centres originally started in California by Joe Gold. Each gym features a wide array of exercise equipment, group exercise classes and personal trainers to assist clients. Its headquarters are in Dallas, Texas. 100+ centres in India.

Research Methodology

Brand name, Convenience, Selection of equipment, Price, Proximity to House/Work, fitness concern in consumers, marketing strategies, additional services

Consumer decision making process

1. Which is the most important expectation from Health club? (psychographic)

• Better Results

• Customer Service

• Convenient from home or work

• Wide selection of equipment

• Price

• No constraints (Contracts, Parking, etc.)

2. Are you concerned about the brand of

health club you are joining?

• Yes (demographic and psychographic)

• No

3. Where did you hear about us?

• Friend (geographic)

• Phonecall from us

• Newspaper

• Internet/Website

• Facebook / Twitter and other social media

• Club Visit

4. At what distance you prefer the Health club to be?

• Between home and Work place (psychographic)

• <3Km from workplace

• <3Km from home

• Distance doesn’t matter

5. Ideal Amount you’d be willing to spend on a Health club per yr?

• INR Below 10,000 (demographic)

• INR 10,000 to 15,000

• INR 15,000 to 20,000

• INR 20,000 to 30,000

• INR 30,000 +

6. Since how long have you been concerned about your health and fitness? (behavioural)

• <1 Month

• 1-6 Months

• 6-12 Months

• > 1 Year

7. How many other Health clubs you have tried in past? (behavioural)

• 0

• 1

• 2

• 3

• 4+

8. Would you be interested in taking

“pay as go/attend classes” at a Health club?

• Yes (psychographic)

• No

9. Do you prefer personal trainers in health clubs for fitness services? (Psychographic)

• Yes

• No

10.Do you want health clubs to produce 24*7 service? (psychographic)

• Yes

• No

11. Would you be interested in having Beauty services in Health club?

• Yes (psychographic)

• No

12. What kind of advertisement do you want to see for a health club?

(Behavioural)

• Informational

• Realism

• Scare tactics

• Humour

• Motivational

• Other (Please mention)

13. How important is the crowd/environment in the club to you?

(Behavioural)

• Very Important

• Important

• Irrelevant

Consumer Decision Making Process

• Need recognition – It includes need for losing weight, taking shape, health requirements, making friends, sports focus

• Information Search – The information regarding Gold’s Gym can be gathered from Friends, Phonebook, Newspaper, Internet/Website, Facebook / Twitter and other social media and Visiting Clubs

• Evaluation of Alternatives – The alternatives are evaluated through comparison among various health clubs based on parameters like brand, location, convenience, price, working hours, training services, customer service, etc.

• Decision to join health club- Outcome of the evaluation develops likes and dislikes about alternative products or brands in consumers. This attitude towards the brand influences a decision as to join or not by consumers.

• Post Purchase behaviour - A satisfied consumer is a silent advertisement. But, if the health club does not yield desired satisfaction, negative feeling will occur and that will lead to the formation of negative attitude towards brand. This phenomenon is called cognitive dissonance. Marketers try to use this phenomenon to attract user of other brands to their brands. Different promotional-mix elements can help marketers to retain his consumers as well as to attract new consumers.

Needrecognition

Informationsearch

Evaluation of alternatives

Purchasedecision &

action

PostPurchaseBehavior

Segmentation StrategyCustomer survey interpretation: 58.3% customers falls under psychographic category 16% will be delighted if focus done on geographic segment enhancing

Process PlanningSearch method- Contacting people who have liked “Gold's Gym India” and pitching to acquire them. Sending mailers to people who have liked other fitness chains’ pages like ‘Anytime Fitness’, ‘Fitness First’,

‘Ozone Fitness’, etc. Also same procedure followed for other popular Facebook pages like ‘Fitness’, Sports (Various

categories), ‘Yoga’, ‘Running’, ‘Parkour’, ‘Crossfit’, etc.

Alternative solution Associate with secondary sources like

IndiaMart, JustDial, to find contact numbers of persons interested in fitness related services. By this way geographic segment can be rounded up

Active Public relations campaigning activities to improve promotional activities

Partnering with other firms (for bundled/coupled discounts and offers) which promote health and well being; eg. Subway, Spas, Salons, Yoga centers, etc.

Conducting and Sponsoring Sporting/Well being/Healthy living/Awareness events.

Partner with startups like Urbanclap and Fitpass for business development and leads.

Outlet Selection Criteria Finding a spot more accessible to

geographic segment chosen Residential areas vs Malls vs Corporate

Buildings (Depending on major target audience)

Presence of Competition: Setting up in an area which already has a similar brand may not be fruitful.

Post-Purchase Feedback

“Regular Diet plan check for all Customers, Weekly calls”

“Membership plan updates shared with the Customers”

“Live feed with the Trainers to maintain connection”

“Sharing Client testimonials to make them feel the ownership”

“Understanding the Customer’s perception on the basis ofValue for Money, Staff Attitude, Facilities, Trainer’s Quality, Diet Plan”

“Personal interaction at reception on a regular basis”

Recommendations & Conclusions

Proximity to home/workplace is an important parameter for consumers. They are not willing to travel a long way in deteriorating traffic conditions. Outlet Location and Target Audience should be chosen accordingly

Discounts and Offers are expected by Indian consumers (Couple Discounts, Festive Discounts, etc.) A Health club should not skimp on these.

A huge no. of people have tried multiple health clubs in the past, client retention is a problem. There should be Loyalty bonuses/Rewards/Discounted plans for long term customers(1 yr+, 2 yr+, 3 yr+).

Indian consumer is very price sensitive. Apart from Discounts, there should be easy to join plans, (1 month, 2 months, 3 months, etc) at decent prices.

People are more interested in going for “Pay as you go/attend classes” instead of all classes ( Yoga, Cycling, Crossfit, Etc.) and Gym membership coupled into a single package. There should be more customizable customer friendly plans.

No. of Trainers and Quality of trainers is an important parameter. There should be a healthy no. of certified trainers available at all times depending upon no. of people in the club.

Crowd/Environment in a Health club matters a lot to the urban consumer. The crowd/environment should be kept in check by the management (Overcrowding, Suitable Music, Cleanliness, etc.)

Customers like to be appreciated/engaged. There should be rewards/incentives for motivated clients (eg. VIP pass, Supplement Reward, etc.) Celebrity visits can also be organized.