Q1.Through quantitative analysis, assess the sports product/consumables offered by other franchises, to determine if there is additional opportunity vis a vis sports bar offerings, etc.
24 Hour Fitness offers stiff competition to Gold’s Gear gym. Research on the web page of the two gyms depicts that 24 Hour offers a much diverse studio class which includes; active aging, martial arts, dance, cycle, yoga, cardio, and pool among others (24 HOUR FITNESS, n.d.). Though some of the availed services are also available for Gold’s Gear members, the clear stipulation on the website of 24 Hour Fitness by far surpasses that of Gold’s Gear gym (GOLD'S GEAR, n.d.). In addition to this, 24 Hour Fitness has an efficacious system for care of the elderly known as the “Active Classes for Aging Well” that are lacking in Gold’s Gear gym.
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Q2. Also through quantitative analysis, evaluate the size/needs of their senior member demographic with the intent of assessing ancillary services/programs to promote muscle maintenance for senior members in whom that muscle maintenance typically diminishes in later years.
As people get older, the strength and size of the muscle deteriorate and the ability to exercise retards tremendously. In this instance, it becomes imperative that these elderly members be supervised with utmost care. However, according to the reviews on yelp, the customer focus is terrible. Most of the employees lack courtesy and the institution lacks a specific system to cater for the needs of the elderly (GOLD'S GEAR, n.d.). The focus should aerobic rather than anaerobic as is the norm of the company. A good customer service builds a positive image for an institution and enhances its ability to meet the set goals and objectives. Poor customer service tends to get rid of consumers who are in turn lured by other instituions.
Q3. Develop a strategic plan whereby Gold’s Gym can better address the aerobic fitness segment (in that anaerobic fitness is the franchise’s legendary forte).
Emerging trends are seeing a transformation in almost every realm of human activities and physical exercise is no exception. Despite the renowned reputation of Gold’s gym, it is imperative that swift measures be incorporated to ensure that the company eradicates the norms imposed by society. The first effective step to enhancing this, is by first lessening the stress on masculinity. Most consumers are only concerned to stay in shape rather than gain huge muscles like body builders. Secondly is by enhancing public perception through advertisements that stress on a friendly exercising environment (Shank, & Lyberger, 2014). . A positive public perception enhances loyalty of consumers and boosts sales thus widening the customer base of an institution.
Q4. Assess which international markets offer the most promise for prospective franchise expansion. Also, whether a strategy of market penetration (more franchises in existing markets) or market development (creating franchises in new countries/markets) is to be preferred. (Or, a strategy of diversification where both strategies are pursued.)
Globalization has seen companies invade new markets to widen the consumer base for effective competition. Know more than ever education on the essence of staying fit on health have seen more and more people access training institutions. Developing countries, particularly Africa, offer lucrative opportunities for operations. This is because there is less competition in these countries, cheap labor, and low costs of operation (Shank, & Lyberger, 2014). In addition to this, there is a short supply of equipment for exercising. The most efficacious strategy would be developing more franchises as it would enable a more hands-on approach to reaching the clientele.
Q5. Assess current Gold’s Gym membership fees, to determine how modification of such pricing might enable the franchise to more effectively compete with price-sensitive competitors. Then, to determine if price modification is even a desirable objective of the Gold’s Gym organization.
The current charges for exercising though, variable in different in various places is generally in two options. The first is by making a down payment of $149.99 and then follow up monthly payments of $29.99. This amounts to a total of $509.87 per annum. On the other hand, a second option is available where a down payment of $49.99 is made followed by a monthly payment of $39.99 (GOLD'S GEAR, n.d.). However, the two are quite costly as compared to other competitors. When the firm invades a new market, the price could be slashed to attract demand. After which, build of quality would enhance the restoration of prices to the normal (Shank, & Lyberger, 2014).
References
24 Hour Fitness (n.d.). Retrieved November 24, 2018, from https://www.24hourfitness.com/health_clubs/amenities/test_urs.html
Gold's Gear (n.d.). Gold's Gear Retrieved November 24, 2018, from https://www.goldsgear.com/
Shank, M. D., & Lyberger, M. R. (2014). Sports marketing: A strategic perspective. Routledge.
