Cohort 8 - MMI-Marketing Plan For A FITNESS - STUDIO
Cohort 8 - MMI-Marketing Plan For A FITNESS - STUDIO
Cohort 8 - MMI-Marketing Plan For A FITNESS - STUDIO
Cohort 8 – Marketing
Assignment
Product / Service
Creed Fitness is aiming to offer a holistic fitness experience is to the customers through both
online and offline channels. Exercise, mental health, healthcare, diet, and medical treatment are all
included. It would be one among very few in the nation to provide tele-fitness or e-fitness services.
Additionally, it is hoping to expand to 130+ gyms through franchise. Creed Fitness will position
itself as a well-known name in the fitness sector. It hopes to tap into the healthcare market which
is expected to increase three-fold to Rs 8.6 trillion by 2024.
Strength Training A group session led by a fitness trainer focused on muscle building
with weights
Cardio (High Complete weight loss program customized to each customer based
Intensity / Low on their BMI and preferences
Intensity)
Muscle Tone & Intensive version of strength training geared to everyone through a
Fit personal trainer and diet chart for superior results
Cross-Fit Designed specifically for individuals who are looking to build their
Training endurance, stamina, and agility. Super intensive program like athlete
training programs
Boxing Combination of heavy cardio and endurance building program.
Customers are given exposure to boxing led by trainers with boxing
background
Yoga Using different Yoga methods like Hatha Yoga, Advanced Yoga
designed to provide strength, flexibility, and relaxation
Zumba Dance A fun induced group sessions designed specifically for weight loss
Fitness targeted all age groups
Meditation Be it managing stress and anxiety, improving sleep quality,
improving focus, or exercising your body-mind combined, there are
many formats available as per the users’ needs.
Market Research
Founded in 2016, the health tech start-up Cult Fit is our direct competitor offering digital and
offline experiences across fitness, nutrition, and mental wellbeing like what Creed Fitness is
planning to offer. This sector is fast growing especially after pandemic as per Statista.
Consumer Insights by Statista clearly shows that significant majority of target audience are
looking for two major factors before deciding on the purchase.
• Ready to gladly pay for the service if it offers convenience.
• Looking to book the sessions or services online.
People returning to the gym after COVID-19 lockdown in India, by age group
Company Competitors
• Aiming to provide end to end fitness • Cult fit is growing aggressively since their
services to wide range of customers. inception making them our direct
• Focused on variety of fitness sessions. competitor with similar services offering.
• Offers Strength training, High intensity • They positioned themselves as New Age
training, Muscle building, Low- Fitness brand promoting through
intensity cardio, Boxing, Yoga & innovative campaigns and celebrity
Zumba Dance. endorsed events.
• Competitive Advantage – Offering • The brand positions itself as genuinely
“One App” Solution integrating all caring about people’s health, urging
services from sessions booking to people to understand their bodies better.
online training classes seamlessly all in
one place.
Customers Collaborators
• Promotion through social channels like • Partnering with “Social media
Facebook, Instagram, and word of Influencers” & “Fitness Influencers” for
mouth. Also focused on Referrals. promotion.
• More than 70% discover fitness studio • Fitness influencers can do a significant
through online channels and more than contribution to the growth story, by
20% through references from friends making it a cultural trend.
and family. • Building an online community is very
• 60% of gym & fitness club members essential to social promotion.
state that they tend to book services • Additionally, Collaboration with other
online. offline fitness brands like supplementary
• 41% of gym & fitness club members diet, equipment and athleisure clothing
are innovators or early adopters of new category would make a strong product.
products.
Category Analysis
Opportunities Threats
• Market segment is growing • Already established fitness studio can
exponentially. tap into the Tier 2 cities.
• Unlike Tier1 cities which is crowded • Lack of fitness trainer and possibility of
Tier2 cities are still untapped. losing trainers to competitors.
• Customers from tier 2 cities are much • Rise of substitutions – Gyms inside
more goal oriented and self-motivated. apartment and home fitness studio.
• Targeting expansion in Tier2 cities • Impact of economic downturns –
would help accelerate the product Recession and inflation can cause
growth. customers to rethink on membership
• Value-added Services – Can charge renewal.
premium by offering diets, workout • Negative impact of overcrowding –
food, premiumization of membership Some locations might get jam packed
with extra perks. during peak hours causing
• Offer franchise model to accelerate inconvenience and deter them from
expansion. membership renewal.
Competition
Threat of Substitutes
• Local gyms
• Fitness centres inside
apartment society
• Extensive collection of
free fitness apps in iOS
& Android app market
• Leisure activities like
Running, SPORTS and
SWIMMING
Market Segmentation
Market segmentation is the process of dividing our target market into specific groups. Each
group requires different products or services and needs a different marketing mix. By targeting
specific markets, we can promote our services more effectively rather than just targeting the
“average” customer. Through market segmentation, we can communicate our message more
effectively. All of this results in giving the business a marketing edge over the competitors. To
determine market segments, it needs to be analyzed the needs and wants of each segment.
Several different factors to divide your target market such as:
• Demographics
• Interests, behavior, and attitude
• Location
• Characteristics
• Purchase and usage situations
In our project we conducted the survey and based on the analysis we found out that the
following segment of market exists for the gym or fitness centers.
1. Sports
This target group is already heavily involved in sport. They love to play sport and always take
the time to get a session of tennis in, play football or squash. They may even play at a
competitive level. These people use your fitness center to improve their agility, strength, and
endurance to make them better players in their field.
Generally, this group of consumers are highly motivated and already have the knowledge
needed to train. What they need from a gym is the right fitness equipment, activities, and space
that support the needs of the sport they love.
2. Health Needs
The health needs group is looking to get healthier, increase strength and maybe lower their
cholesterol. They have possibly been sent by the doctor to improve their health and your gym
is the first stop on their journey.
A person looking to get healthier may need a bit more help, encouragement, and guidance.
They can benefit from personal trainers and expert advice. They will need much more
encouragement and special attention than your regular gym-goer.
3. Making Friends and Socialize
One of the top reasons to join the gym is to meet new people. Fitness is a great way to make
friends and socialize. This target group is less interested in the health benefits that come from
the gym and more focused on making friends.
These types of people tend to be moderately fit and are active enough to join in classes. To
attract this type of person, think about adding fun and energetic classes. Create a space where
people can interact after they work out like a juice bar or cafe.
4. Peak Performance
These people are at the top of their game. They are highly motivated and very fit. They are
constantly looking to achieve their personal best. Whether it is beating their own running time
or excelling at bodybuilding, these people are extremely focused.
A benefit of this group is that they tend to be long-term clients. On the other hand, due to their
expertise, they tend to dominate certain areas of the gym and may intimidate some of the newer
members.
5. Losing Weight
Finally, the losing weight market segment is a goal-orientated group. This group has joined the
gym with the intention of losing weight. The most effective approach for this group is to be
very welcoming and accepting of all shapes and sizes.
This group needs support and motivation delivered by a professional. Try offering a six-week
weight loss program or really utilize your personal training services you have available.
6. Demographic Variables
Men are more competitive than women and young people are more competitive than their older
counterparts (Cashman, 1998). Young and single people are keen to exercise, improve their
physical image, meet people of the opposite sex, and satisfy their social needs. However, as
one grows older, physical appearances may be harder to maintain due to the lack of time and
motivation, the inconvenience and the additional responsibilities arising from one’s job and
family. For married and older people, improving one’s physical image (extrinsic motivation)
and social needs are likely to become less important.
Undoubtedly, physical exercise (intrinsic motivation) can improve the quality of life.
Nonetheless, an individual’s survival is not necessarily jeopardized immediately by a lack of
physical exercise. Moreover, it is not necessarily important for all demographic groups at the
same level. However, at an extreme, the lack of physical exercise may cause many.
Major physical problems, such as obesity, high blood pressure, coronary heart disease, Etc. It
may reasonably be argued that physical exercise is somewhat important for all age groups.
Target Audience
Creed Fitness targets customers of any age group starting from the age of 18 to above 60 ages
and positioned itself to be one stop body studio catering to all fitness goals. During our survey,
we noticed that almost all of them are relying on their rational reasoning while making
purchase decisions. Hence, focusing on top 2 criteria is very important.
Based on our survey – Primary criteria for any customer to take a gym membership is
LOCATION. Hence, we need to strategically open studios within a 3 - 5 km radius from the
concentrated residential areas. Almost all customers selected the option which was in closer
proximity to their homes. 1 in 10 consumers opted for the option which was in their
neighborhood. This shows that the consumers are ready to select the closest option even if they
must compromise on any one of their criteria. Additionally, there is possibility to lure people
working in business organizations within the 5 kms radius. Secondary Criteria is
EQUIPMENT & AMENITIES – Customers are very keenly looking for the fitness studio
ambience and the amenities. Customers are also very much aware while screening for the
quality of equipment available at the fitness studio.
CRITERIA
Brand Name Celebrity
2% Endorsement
2%
Cost (Subscription /
Membership)
Location /
5%
Proximity
36%
Trainers
9%
Hygiene
16%
Equipments &
Amenities
30%
For E.g., If the target city = Pune. It is a vibrant city with a mass of population working majorly
in IT Industry. As our focus area location is Koregaon park in Pune, an important element of
the demographics of this target market is the fact that most of the people who reside within
5kms radius have a relatively high household income in comparison to other parts of the city.
They can be referred to as High-Net-worth Individuals (First Class).
Blending our survey data and consumer insights data from Statista.com, the picture is very
clear that majority of Gym & Fitness consumers are concentrated in Megacity / Tier 1 Cities
with 5+ miln. Inhabitants. Our Major focus would be to target these Tier 1 Cities to push and
scale the brand swiftly. These cities would be ideal choice to scale and reach profitability in a
short period of time because they have a major advantage – PREMIUMIZATION. According
to our survey – The average price of gym subscription by Indian respondents is ~ Rs. 20,000/-
per annum, implying high willingness to pay. However, given a situation when there are two
or more similar options, customers always went for the option which they felt was “Value for
Money.” The option need not have to be the cheaper one.
Marketing Strategy
In view of launching the Creed Fitness GYM we are implementing the differentiating strategy as
we are looking to offer unique services along with the usual fitness equipment and convenience
related benefits. We will be targeting customers of varying ages, mixed gender floor, with various
interests. Our primary goals are to ensure people and our members are fit, healthy, and able to
defend themselves. Creed ensures that we are the solution for a flexible and welcoming atmosphere
to help combat this issue. Creed does not have any fitness standards. A person can walk in who
has not done a push up once in his or her life, and a bodybuilder would be equally welcome. Our
business encourages people of all ages to work out in a fun and dynamic fashion. For adults,
Regular Pro-Level workouts will help with weight loss and regulation, and for teenagers and young
persons, it will help with their development of discipline and self-confidence along with keeping
them fit and gaining muscles.
Creating a perceptual map with the "trainer-focused vs. convenience-focused" and "equipment-
heavy vs. other facilities heavy" dimensions for gyms would involve plotting various gyms on a
two-dimensional graph based on how consumers perceive them on these attributes.
Attributes:
1. Trainer Focus vs. Convenience Focus: This dimension evaluates whether a gym is more
focused on offering personalized training services or prioritizes convenience regarding location,
accessibility, and ease of use. It ranges from "Trainer-Focused" to "Convenience-Focused."
2. Equipment Heavy vs. Other Facilities Heavy: This dimension assesses whether a gym places
more emphasis on providing a wide range of exercise equipment or offers a variety of other
facilities and amenities such as swimming pools, saunas, or group fitness classes. It ranges from
"Equipment-Heavy" to "Other Facilities Heavy."
Different gyms are positioned in relation to trainer focus, convenience focus, equipment emphasis,
and other facilities.
● Upper Right Quadrant: Gyms positioned in this quadrant are perceived as both trainer-
focused and equipment-heavy while also emphasizing convenience. These gyms likely provide a
comprehensive fitness experience with well-trained staff, a wide range of equipment, and
convenient locations. They may attract fitness enthusiasts looking for personalized guidance,
ample equipment, and a convenient workout experience.
● Upper Left Quadrant: Gyms in this quadrant are perceived as trainer-focused and
convenience-focused but not equipment-heavy. These gyms prioritize personal training and a
convenient location but may not offer an extensive array of exercise equipment. They may attract
individuals seeking personalized guidance and convenience in a gym close to their location.
● Lower Right Quadrant: Gyms located here are perceived as equipment-heavy but not
necessarily trainer-focused or convenience-focused. These gyms offer a wide range of exercise
equipment and might appeal to self-motivated individuals who prefer to work out independently.
However, they may not prioritize personalized training or convenient locations.
● Lower Left Quadrant: Gyms in this quadrant are perceived as neither trainer-focused nor
convenience-focused and may not emphasize being equipment-heavy. These gyms might offer a
basic gym experience without a strong focus on personal trainers, convenience, or extensive
equipment. They may attract budget-conscious individuals looking for a straightforward gym
option.
CREED FITNESS comes under the UPPER RIGHT QUADRANT as the customer perceives
this as Equipment heavy and convenience focused. Our gym is prioritized more on superior quality
equipment with fitness focused ambience and a convenient location. It attracts individuals seeking
personalized guidance and convenience close to their location.
Price setting also has a close relationship with the gym’s cost structure and, as we intend to provide
much more value to the customer.
The GYM’s pricing strategy will be to command a premium price, as it has been seen that closest
competitors are average gym chains, so customers should know that they are paying for a fitness
center with the best machinery in a peaceful environment and professional employees. Also, the
investment required will be considerable compared to other gyms (for the size of the facilities and
the machinery required), which is also a reason why membership fee will be high. The Economic
Times also affirms that charging a high price in the introduction stage is a good option, as it is the
way that the company must express that the new product has unique and new features.
Below is the pricing structure for Creed Fitness:
Tier Monthly fees Annual renewal fee Annual fees
White Card ₹2,499 ₹1,499 ₹31,487
Black Card ₹2,999 ₹1,999 ₹37,987
Gold Card A 3-month special program for ₹4,999
The standard White Card Membership costs ₹2,499 a month plus a one-‐time start-up fee ₹499
and a ₹1,499 annual membership fee. Unlike most gyms, there is no minimum length of time
members must keep this package. The White Card Member has unlimited use of the fitness
equipment as well as personal training. The upgraded membership, called a Black Card
Membership, costs ₹2,999 a month, no start-up fee, plus a ₹1,999 annual membership fee. Black
Card Members are required to maintain this membership status for a minimum of twelve months.
The Black Card Member truly receives a lot of value for the price. As Black Card Members, our
customers enjoy unlimited tanning, full use of fitness equipment, all other trainings include like
Zumba, Martial Arts, Boxing and Kick Boxing, Pilates, etc. and half off all cooler drinks including
protein drinks. Tanning services and the use of the fitness club facilities gives Black Card Members
more value than they could ever receive if they bought these services separately. The average fee
for unlimited tanning is around ₹2,499 a month and average monthly fee for a gym- membership
is around ₹2,999 plus no hidden fees for extra services.
To attract a younger demographic during the summer months we are adding a third membership
option, the Gold Card Membership. This will cost the customer a flat fee of ₹4,999 for three
months, June through August. There will be no other fees associated with the Gold Card
Membership. Gold Card Members can enjoy unlimited tanning and full use of fitness equipment.
To add more perceived value to the fitness club, we will waive all start up fees for senior citizens
and students with valid student identification. Creed Fitness charges all fees when they are due on
a monthly basis to either the members’ checking account or a credit card, making payment hassle
free. This also makes many members less likely to discontinue membership.
Creed Fitness wants to be positioned as a premium brand and as a price leader in the fitness
industry. We can do this because we give out lots of benefits and services apart from using
machines that are necessary for most fitness customers.
Creed Fitness often runs promotions where members can join for only ₹2,499, waiving the start-
up fee for White Card Members; this is usually done around the New Year’s resolution time, which
is a peak time for new members. Our competitors just cannot match the value we bring to our
members. When we look at what members can get at Creed Fitness, we see how Creed Fitness
blows the competition out of the water.
Place / Convenience
Creed Fitness is located at Koregaon Road in Koregaon Park. This is a prime location for Koregaon
Park residents and Viman Nagar & Kalyani Nager residents to be targeted as an expansion of our
current market share as it is within 5km driving distance from the Creed Fitness GYM. Through
the convenience of location, price, and services we will be able to capture some of this market with
further promotions. Creed Fitness can be reached by car in 5 minutes from Koregaon Park or
Kalyani Nagar. It is also realistically within walking distance about a 15-minute walk. If you like
to bike it can be reached in 10 minutes or less. The building itself is very easy to spot with its
signature purple and yellow colors marking the outside of the facility. Currently, this locality has
the most rapid growth, so this is an area we consider for opening our brand Creed Fitness.
Promotions / Communications
Creed Fitness is currently using social media (Digital Marketing) and Print media as their main
method of promotions. The message of the Creed Fitness comes across in the form of humor,
which is very clever at getting potential customers to listen. Creed Fitness also uses ₹3000 as
joining fee promotion for White Card Members to get new customers to their gym. The
promotions, as well as the physical layout do target the hardcore fitness elite who can make the
gym atmosphere more intimidating. Creed Fitness is targeting the average person, who wants an
easy solution to getting in shape in an inviting and relaxing atmosphere.
Initially Creed Fitness can expand their market share by expanding their demographic to include
younger students and high school students. Although students must pay to use it during the
summer months for 3 months membership which is why we are creating the Gold Card
Membership. Creed Fitness will put out flyers around campus and outside restaurants to increase
awareness of the facility among peoples. We will also hand out free pens on any campus nearby,
as well as give away t-‐shirts at athletic events to help reach the college students. Apart from these
following strategies will be used to create more brand awareness.
1. Provide Free Private Training Sessions
Offering free private training sessions attracts new members and show off a gym’s expertise.
Create a landing page on the gym website and promote the offer on social media or through
email marketing to generate a buzz. We can keep the steam going by scheduling sessions
during off-peak hours so potential members get a personalized experience. It is essential to
consider the costs and potential downsides of offering free sessions before diving headfirst into
free private training sessions. The costs of a trainer’s time and any required equipment for the
session need consideration. People who are not interested in a long-term commitment is a
potential downside. Still, showcasing a trainers’ skills and generating excitement around a gym
make it a worthwhile marketing effort.
2. Host a Six-Week Challenge
Motivate current members, attract new ones, and build a sense of community by hosting a six-
week challenge! Use a hashtag challenge as a promotional gym tool. Create a unique
expression like #SixWeekSweat to encourage participation and generate excitement. We can
decide on a theme for the challenge, such as weight loss, muscle gain, or endurance training to
get started. Promote the challenge on social media and make it competition worthy by offering
prizes or recognition for the winner, encouraging participants to share progress online and
support each other. Providing a fun and engaging challenge helps people achieve fitness goals
while fostering a sense of loyal community around the gym. Hosting a challenge does require
planning and resources, so make sure that is in the budget.
3. Run a Raffle or Competition
Running a raffle or competition is another great way to promote the gym. Costs are associated
with a prize, but a well-executed raffle pays off with new member sign-ups. Consider offering
a month of free membership, fitness packages, or a prize with branded merchandise. The key
to a successful raffle or competition requires participants to submit contact information, share
a post on social media, or bring a guest. Offering Incentives, such as a reduced rate for members
who refer guests that join the gym, encourage better engagement. There is always the risk that
someone with little interest in signing up wins, but gym advertising still pays off with new
leads gained. The friendly competition or excitement from a raffle is a fun way to engage the
community and generate interest.