Pure Gym Marketing Essay: Orientation, Analysis, Strategies, And Mix.

Company Overview

Pure gym, a lean gym operator, is the UK's largest health and fitness provider. In 2015 the company acquired LA Fitness and has a total of 930,000 members across its 176 gym sites in the UK.

Pure Gym focuses on creating good gym work out experiences, removing extras such as saunas and steam rooms and introducing affordable membership with no contractual commitment (Hardy, 2017)

The gym offers 21st century consumers flexibility through its pay-as-you-go model. Memberships are sold solely online, making it easy and accessible for customers to access subscriptions at the press of a button.

Continuously focused on innovating, Pure Gym experiments with virtual fitness classes, which can be made available to users on demand, or on a timetabled basis.

In 2016 Pure Gym expanded significantly, opening sites in shopping centres and retail parks across the UK. Expansion remains a priority for the business, with plans to open an additional 20 – 25 sites by the end of 2017 and up to 300 gym sites in total by 2020 (Kilgannon, 2017).

As a newly joined marketing assistant of the Pure Gym marketing team, you have been asked by the director to write a report addressing the following task areas:

a. Describe the selling and marketing orientation concepts

b. Pure Gym uses the marketing orientation approach in business. Explain the benefits of this approach versus other concepts. Please provide examples of how Pure Gym demonstrates they are taking a marketing orientation approach.

a. Describe marketing environment analysis and discuss why it is important for Pure Gym prior to setting a marketing strategy

b. Using secondary research identify two (2) macro environmental factors that impact Pure Gym's marketing decisions. Discuss whether these factors create marketing opportunities or threats for Pure Gym

c. Discuss two (2) factors in Pure Gym's micro environment that should be monitored

d. Using secondary research identify and explain two (2) internal environmental factors that could be considered as strengths in Pure Gym's operation, from a marketing perspective

The Marketing Director has announced a new objective for the company:

To launch six (6) youth gyms for 13-19 year olds in London, by April 2018

a. Discuss the importance of market segmentation in planning a marketing strategy for Pure Gym

a) Using the 7ps, Identify and describe Pure Gym's current marketing mix ensuring you provide detailed descriptions

b) Propose a revised marketing mix (covering all the 7ps) for the launch of the six (6) youth gyms in London. Memberships will be available to buy from the Pure Gym website (think about the areas of the mix that will need to be changed and explain the reasons for each change)

Pure Gym will be having the alignment of all the functions with the strategic outlook of meeting the requirements regarding the customers. This assists in defining the role of the staffs in a more clear manner. Marketers are required performing meticulous research for uncovering the requirements as well as conveying the messages that will be explaining the beneficial aspects. Production should be focusing on enhancing the products for meeting the requirements of the customers.

PureGym Limited is a chain of no frills fitness clubs in the United Kingdom. The chain is situated in Leeds and is having gyms across the UK. It is regarded as the largest gym chain Britain by membership having almost 450,000 members currently signed up and having plans for opening gyms by 2020. PureGym is keeping its prices low and ensuring that they are simple as well as easily understandable. PureGym is designing as well as maintaining the highest standards with state-of-the-art equipment. There is also no contract and an individual is having the freedom for joining as well as leaving whenever they desire. There is also the option of joining, booking classes as well as cancelling the membership online. There is private ownership of PureGym by CCMP Capital and other investors.

PESTLE Analysis:Political Factors

Political issues will be including the policies of the government or legislation. In respect of a fitness organization such as PureGym, there is very less concern relating to the restrictions of trade as well as taxes.

Economic Factors

Economic issues are considered being a major factor in respect of a fitness organization. Fitness organizations such as PureGym are considered to be the providers of leisure services. There might occur a decline in the number of customers when there will be an economical downfall. Individuals will not be interested in spending their money on leisure activities when they are having a less disposable income (Kim 2016).

Sociocultural Factors

Population demographics are considered being a significant factor that will be influencing a fitness organization like PureGym. This will be including the aspects of age, sex as well as income of individuals. There is high demand from the young as well as old individuals regarding fitness as well as physical development. PureGym is situated in various urban centres of the UK and is considered to be the strength regarding the business.

Technological Factors

While the technological factors might be favouring PureGym in respect of providing high barriers to entry in respect of the new entrants, it might be a concerning matter in respect of the high demand as well as customer’s expectations. Equipments that are highly developed as well as the requirement of expert staff will be making it challenging in respect of health and fitness centres to make an entry into the market (Keegan 2015). Similarly, in respect of competing with the current competitors, PureGym should be having the awareness of the technological developments as well as offer the latest fitness equipments for the customers.

Situation Analysis: External Analysis

Legal Factors

Since PureGym is a health and fitness organization, the legal issues are taken into consideration relating to the matters of health and safety. There is the requirement of having strict rules and regulations in regard to the quality of equipments that are used. Every staff is required having better qualification as well as effective training. This as a result, will be having an influence on the cost regarding the employees (Villarejo 2015).

Environmental Factors

Environmental factors will be affecting a health and fitness organization such as PureGym in significant ways. There is high consumption of energy since the equipments are running on electricity. As a result, the laws relating to the environmental protection will be taken into consideration.

Supplier’s bargaining power

When there is the existence of an increasing number of substitute inputs, suppliers will be having less bargaining leverage over the producers. This is because of the competition within the substitutes. Greater competition will be affecting the analysis of the fitness industry. When the inputs relating to the critical production are similar, it is considered easier to do the mixing as well as matching of the inputs that does the reduction of the supplier’s bargaining power, which is considered to be a positive aspect in respect of PureGym. Also, the high level of competition within the suppliers will be acting towards the reduction of prices regarding the producers. This is also considered being a positive aspect in respect of PureGym. Since, it is easy to do the switching of the suppliers, there will be less power of bargaining. Low supplier switching costs will be positively influencing the PureGym (Villarejo 2015).

Customer’s bargaining power

When there are large number of customers, a single customer will be having the tendency towards bargaining leverage. Limited bargaining leverage will be assisting the health and fitness organization like PureGym.

Threat of new entrants

High requirements of capital will be meaning that an organization is required spending a huge amount of money for competing in the market. High requirements of capital will be positively influencing the analysis of PureGym.

Threat of substitutes

Low cost of switching to substitutes regarding the health and fitness industry will be having a significant influence and as a result, will be having a long-term positive influence on this entity that will be adding to its worth.

Threat of rivalry

Large industries will be allowing the multiple organizations and will be producing in respect of prospering without the aspect of having the requirement for stealing the share of the market from one another. Therefore, large industry size is considered being a positive aspect in respect of PureGym. When there occurs rapid revenue growth amongst the industries, there is very less possibility for them to do competition, since the overall size of the industry is growing as well (Podnar 2013). The only means of having a growth in the slow growth industries is stealing the share of market from the competitors. Fast industry growth will positively be affecting the health and fitness centre as PureGym.

Five Forces Analysis

Strengths

The major strength of PureGym is considered being the membership fee. Members are required paying few dollars on a monthly basis towards using the facilities as well as services. Moreover, the health and fitness centre will be prioritizing upon the aspect of flexibility, which is considered being very much necessary in the current scenario. PureGym is providing flexible offers in respect of the busy members.

Another major strength regarding PureGym is to have the free zone policy. This policy is effective in attracting average individuals rather than being considered to be a centre exclusively for the body builders.

Another strength related with free zone policy is having a free personal training as well as the capability for using machines for attaining the comfort that is needed within the gym.

Weaknesses

The key weakness that is having the requirement of significant focus is related with the fact that PureGym is having limited options that is concerned with the equipments regarding exercise as well as facilities the health and fitness centre is providing in comparison to the other fitness centres. For minimizing the threat, PureGym will be offering group workout lessons for compensating in respect of the equipments as well as facilities that it is lacking.

Another weakness is considered being the annual membership fee. Majority of customers might considerer it to be a hidden cost. To minimize the threat, PureGym will be scrubbing off the fee in respect of the students since they are forming a large percentage relating to the target market.

Opportunities

The opportunity associated with PureGym is that since, it is affordable and individuals are having the feeling of great value to be present in their services, the members are having the preference of doing the retention of their membership cards. This is because, the services that are provided are considered being of the same quality but having a lower cost, unlike the other health and fitness centres that are considered to be expensive, particularly during the summer holidays.

Threats

The significant threat to PureGym is associated with the fact that the other surrounding gyms are offering discounts in respect of their customers that is increasing their scope to expand their target market. Irrespective of the financial restraints, PureGym should be offering a discount on the membership fee for minimizing the threat. In addition, for earning a competitive advantage over the other fitness centres, PureGym is required providing various promotional campaigns for its customers (Pauwels 2013).

Task 1: Marketing Orientation

The major objective of PureGym is expanding its market and opening new branches in other locations within the UK. The health and fitness centre is aiming towards the opening of new fitness centres in the major cities with the UK and attracting new members in respect of its sustainability.

In the first year, the management will be focusing towards the increase of the awareness relating to the brand since many individuals in the new markets are not having the awareness relating to health benefits. The organization is also aiming towards employing different marketing strategies for taking over the UK market within a span of 2 to 4 years (Varey 2015).

For improving the organizational performance within the new markets like the UK, PureGym will be using various strategies like diversification, market penetration, as well as product development. This is significant because PureGym will be having the ability to do the diversification of its services such as doing the introduction of new method of exercising. Moreover, with the help of establishing new branches in major cities within the UK, PureGym will be undertaking the promotion of market penetration as well as development (Kim 2016).

PureGym will use this significant strategy for marketing their services. Segmentation is having the involvement of identifying the different segments of the market, which is depending upon the demographics. PureGym did the segmentation of its market depending upon the demographics through the establishment of different fitness centres within the UK. To target the market, PureGym will be analyzing the potential of the market regarding various cities. This will be majorly targeting the high-class areas in the cities (Keegan 2015). After making decisions relating to the target market, PureGym is required positioning itself as a distinctive health and fitness centre that offers quality and affordable fitness services.

PureGym does its designing as well as its services in a manner that will be maintaining its organizational brand name, which will be offering quality and effective services. One of the tactics that is being used will be ensuring that there is the adherence of quality in respect of retaining its present customers as well as attracting the new ones. A marketing mix is considered being a significant tool that will be used by PureGym for helping it in marketing its services (Farhana 2014).

• Product – Pure Gym is providing health and fitness services. Members are provided with the scope of accessing different exercising products such as weights, tread-mills, jump ropes and many more.
• Price - The prices that are offered at Pure Gym is depending on the membership plan. Concerning the market oriented approach of the gym, there exists various plans at competitive rates that encourages the fitness enthusiasts towards joining the health and fitness centre.
• Place – The location of Pure Gym is in the UK and therefore, majority of the government policies as well as other factors relating to UK will be influencing the business (Farhana 2014).
• Promotion – Pure Gym is particularly targeting the health and fitness magazines, TV shows as well as newspaper columns. This is making sure that Pure Gym is appealing to the fitness enthusiasts who will be mostly interested in taking up their services.
• Physical Evidence – As because, Pure Gym has been receiving very good ratings from the clients and is not suffering any crisis in regard to the absence of proper management of fund, the marketing plan that has been chosen by Pure Gym is therefore, considered to be functioning in the correct manner (Schimdt 2016).
• Process – This aspect is referring to the way by which the presentation of the product is done to the clients. One of the internal strengths of Pure Gym is the outstanding customer service that is being provided by the fitness experts and the process to deliver a product can be regarded as being correct.
• People – The market-oriented approach of Pure Gym is targeting the people and placing the customers within the centre of the business. This effective method has been employed by Pure Gym (Schultz 2014).

• Product – The new six youth gyms will be providing the scope of doing cross-fit training, Pilates and Kickboxing along with the conventional exercising products as because, the youth generation are getting more and more inclined towards the off-beat training processes.  
• Price - The new six youth gyms that will be getting launched in London are required increasing the number of services that the gyms will be offering. This activity will be assisting in having the requirement towards regulating the prices. There should be the implementation of the most suitable plan regarding a person along with the price in the website of Pure Gym. This will be adding to the outstanding customer service that is being provided (Blakeman 2014).
• Place – The new six youth gyms needs to be placed in those places where there is the maximum gathering of the youth population such as the near the colleges, shopping malls as well as the corporate offices . They should also be located in the places where the majority of individuals will be able to afford the gym membership.
• Promotion – The new six youth gyms are required ensuring that they are being featured in some of the most well-known forums for health and fitness. They are required employing social media marketing as well as using the different platforms that includes social networking sites such as Facebook as well as Twitter for advertising themselves to the public (Luxton 2015).
• Physical Evidence – The new six youth gyms will be tying up with some big event organizers that will assist them in getting noticed by the enthusiastic customers who will be interested in enrolling themselves with the gyms (Pavlou 2015).
• Process – The new six youth gyms can provide certain value added services for their clients such as providing reiki teachings and meditation classes by creating awareness among the youth through the commencement of certain seminars in the colleges and shopping malls and getting them attracted to participate in these classes.
• People – The new six youth gyms can also implement the functional approach in addition to the market-oriented approach for improving the awareness of the youth generation regarding the significance associated with the health benefits of joining a health and fitness centre (Fill 2016).

Strategy	Purpose	Tactic	Duration	Amount budgeted
Sales promotion	For improving awareness of  customers	Discounts	3 months	£4000
Advertising	Creating awareness	Television and Radio	6 months	£6000
Internet marketing	Creating awareness	Podcasts and social media	3 years	£5000
Total				£15,000

PureGym will be evaluating as well as determining the effectiveness related with the marketing strategy within the new markets. The success will be upon the strategy used that will include the product sales, financial status after a particular period as well as effectiveness relating to distribution. PureGym will be determining its ability to perform via different methods of control like Return on Investments and to receive feedback from the customers majorly through social media (Brunello 2013).

Conclusion 

To conclude, it can be stated that after the gradual increase in focus, the competitiveness of Pure Gym will be increasing within the market. There will be an increase in the market share of the company and the scope of a new competitor making an entry into the market will be low. There will also occur a definite increase in brand loyalty. The market-oriented approach of Pure Gym is targeting the people and placing the customers within the centre of the business.

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