Marketing and Management for Global Gym and Fitness Culture

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Question:

Discuss about the Marketing and Management for Global Gym and Fitness Culture.

Answer:

Executive summary

Anytime Fitness, a famous gym in Australia serves its clients with a variety of health amenities in the best locations. Anytime Fitness has opened its health club in various locations of Australia only because to expand the business in global manner. In this business report, there is a detailed discussion about several factors, which are significant for conducting the daily operations of Anytime Fitness. This report is separated in different sections and each section deals with the different topic. Marketing environment and marketing mix of Anytime Fitness is discussed in explained manner. However, there are also some flaws and gaps in the operation process of Anytime Fitness. At the end of this report, there are relevant and adequate recommendations that are effective enough to mitigate these flaws within the concerned organisation.

Clear and brief description of the market in which Anytime Fitness operates

The demand of fitness industry increases with the demand and criteria of the clients in today’s fast forward lifestyle. A large number of people prefer to consume junk food instead of healthy, nutritious homemade food; therefore, there are more instances of various diseases only because of obesity. The trend of the fitness industry is growing in consistent manner in different cities of Australia because of obese inhabitants, who seek healthy life. The fundamental credit of the increasing boom in the fitness industry because everybody becomes conscious of flaunting the well-groomed muscles and body. Luettgen et al. (2012) have suggested that mainly young people become more conscious of maintaining the physique and health. The fitness industry in Australia has a large scope and possibilities as from the recent study, it has been reflected that at last 34% place is captured by this industry. The culture of gym has made its positive move towards the fitness industry in order to help people to get in proper shape with the help of interesting and effective exercise equipments. A perfect and healthy body can fight several health issues, such as, heart disease, obesity and diabetes. The lack of physical activity and the preferences of consuming unhealthy fast food are the key factors of the success of fitness industry (Khan et al. 2012).

Anytime Fitness successfully operates functions in the fitness industry of Australia since few years. Anytime Fitness offers clients 24 hours gym facility within cheap prices. The geographic expansion of fitness centre and gym is closely associated with the population distribution of a country. The success of Anytime Fitness solely relies on the premises location close to the workplace and house of the clients. Mainly the organisations in fitness industry concentrate on building gym within either the shopping areas of suburban or the metropolitan areas. A large number of revenues are depended upon the establishment of the fitness organisation. Anytime Fitness offers the clients to experience the enjoyment of excellent, exercising as this organisation is the biggest community in the Fitness industry of Australia.

Summary of the marketing environment (micro, macro environmental forces and trends)

Microenvironment factors of a business involve the suppliers, competitors, marketing intermediaries, distributors, customers and public, which are completely controlled by the higher management of the organisation. The micro environmental factors suggest the existing and immediate environment of an organisation, which has capability to damage the brand image and the daily activities in proper manner.

Suppliers:

The adequate number of availability of the suppliers has great impact upon the fitness organisation. The suppliers of Anytime Fitness involve those, who supply exercise equipments, trainers and the housekeeping stuffs.

Competitors:

Anytime Fitness encounters a heavy competition level in the fitness industry of Australia from its competitor companies, such as 24 Hour Fitness Worldwide, Bally Total Fitness Holding Corporation and Curves International. These entire mentioned competitor fitness organisation in Australia are famous for providing a perfect workout place and equipments to their clients. Anytime Fitness has opened minimum 400 clubs in various cities of Australia to capture a strong position in the fitness industry of Australia (Anytimefitness.com.au 2016). The higher management of Anytime Fitness follows the advanced technologies in order to give a tough fight to the competitor companies in the fitness industry of Australia.

Distributors:

The distributors of Anytime Fitness involves several popular international brands of fitness and exercises equipments to provide the clients a sense and ideas of international exercising trend and practices (Lake and Lauder 2012).

Consumers:

The most important factor in the microenvironment of a business is the customers as the fundamental aim of the system of value delivery is to cater appropriate services to the targeted customers. In the opinion of Kliot and Ghanim (2012), only with satisfying the demand of customers, an organisation can create a firm and strong relationship with the customers, which is perfect and effective to earn the revenue for the organisation. The constant changes in the attitudes towards the fitness and health have established a huge target market for Anytime Fitness in various cities of Australia. The clients of Australia has a large variety of options for exercising centre, therefore, Anytime Fitness should incorporate effective strategies to retain its clients for further success.

New entrants:

There are always possibilities and scope for the new entrants in the fitness industry of Australia only because of the health conscious inhabitants of Australia. Any fitness organisation, which is capable enough to offer more or less same facilities like the Anytime Fitness is cheaper prices then, it will be serious threat for this company. As the physical activities and exercise are beneficial for maintaining both the psychological and physical well-being, therefore adults are engaging themselves in physical exercise according to the public health guidelines (Teixeira et al. 2012).

In order to understand the macro environmental factors of Anytime Fitness, PESTLE analysis will be appropriate.

Political

·         There is liberal-capitalistic democracy in Australia, which helps to resolve any kind of political barriers within the country. Therefore, the management of fitness organisation has to follow strictly the rules, regulations while importing and exporting exercise equipments (Maconachie and Sappey 2013).

Economical

·         As Anytime Fitness has opened more than 400 health club in various cities of Australia, therefore, it recruits the local employees to continue the fitness business. It actually helps to reduce the level of employment rate in Australia (Anytimefitness.com.au 2016).

·         The inflation rate has direct influence on the operations of Anytime Fitness.

·         According to Rumbach (2013), the constant increasing labour costs have affected the business of the fitness industry in Australia since few years.

Social

·         Zumba, a dance workout, which has been popular in this contemporary world and the inhabitants of Australia prefer this to regular gym. Therefore, the management of Anytime Fitness has planned to offer Zumba classes to its clients (Luettgen et al. 2012).

·         The income distribution of the inhabitants has impact on the enrolling process of Anytime Fitness.

·         Some cultural norms and regulations also hamper the business strategies of Anytime Fitness (Padmasekara 2014).

Technological

·         Anytime Fitness is famous for providing the technologically advanced health and exercises equipments to its members.

·         Even the equipments used by the Anytime Fitness are sophisticated and modern, which attract the new generation customers than the traditional way of exercising (Middelkamp and Steenbergen 2015).

·         Anytime Fitness uses modern process of advertising, promoting and marketing such as engaging the social media platform (Facebook, Twitter, Snap chat, Instagram and official online website).

Legal

·         A sudden hike in the service tax has influence on the business of Anytime Fitness.

·         Regional laws, rules and regulation also have impact upon the regular activities of Anytime Fitness.

Environmental

·         Anytime Fitness is conscious about the proper management and maintenance of resources.

·         Anytime Fitness provides services according to the transformation of climate, such as in the season of winter, the management arranges open-air session of exercising in green environment (Chang and Yang 2013).

·         The management of Anytime Fitness is also conscious about the maintenance of workplace health for the safety and security of the customers.

Table 1: PESTLE analysis

(Source: Hong-bo 2013)

Trends:

Vasylenko (2016) has mentioned that the basic concept of fitness is becoming popular in today’s modern lifestyle and everybody prefers to look gorgeous with perfect body shape. Anytime Fitness has installed contemporary exercising machines (electronic treadmill, abs machine) in order to meet the current trend. The management of Anytime Fitness has conducted initial business with the help of local partner. The franchising policy helps Anytime Fitness to enhance the business in faster process for reaching the highest position in the fitness industry. The busy lifestyle of the customers hardly leaves time to exercise for getting perfect health and physique. Therefore, Anytime Fitness has clearly understand the contemporary trend of guilt customers for not being concerned about the lifestyle and offer a perfect place, equipments and trainers to get in shape again. The trend of Yoga attracts an individual only because of it different arrangements of losing weight (Broad 2012). There are new Yoga practitioners, who completely transform the idea and concept of doing Yoga.

The market segmentation and the target of Anytime Fitness

Market segmentation involves proper marketing strategy with division of broad target market such as businesses, consumers with different requirements, priorities and interests. As opposed by Daglish et al. (2014), every organisation segments its market before launching any product or services with adequate implementation and design of potential strategies to attract the targeted consumers. The market segmentation of Anytime Fitness is following:

Geographic: Anytime Fitness has started business in various cities of Australia, such as Melbourne, Adelaide, Perth, Sydney, Canberra and Brisbane. Anytime Fitness has opened 400 health clubs throughout these geographical regions (Anytimefitness.com.au 2016).

Demographic: Anytime Fitness targets mostly all age group customers, who are suffering from obesity and fitness obsessed individual. However, although, all types of age group are targeted, the innovative and modern health equipments of Anytime Fitness attract mainly youngsters of Australia. Demographic segmentation is not so much powerful in consideration with the other segments.

Psychographic: Mainly high class of people can afford the membership fee of Anytime Fitness as the price of membership is a bit high than the other available gym in Australia. Modern and trendy inhabitants are the major target of Anytime Fitness. The average wage of inhabitants in Australia is ranged in between $70, 67.45- $87,842.42.

Behavioural: The status and usage rate of the customers are suggested as behavioural segmentation. The management of Anytime Fitness also focuses the attitudes of the clients, as it is an important factor to offer the appropriate services. However, behaviours can be changed over time (Nikolaidis and Theodoropoulou 2014). Therefore, Anytime Fitness should change the strategies to meet the changing behaviour of the customers.

An organisation should understand the demand and criteria of the customers before targeting them for providing a particular product or services. According to Woodhouse (2014), it is the fundamental role and responsibility of an organisation to list various types of consumers, who suffer from different kind of problems. The members of the higher management of Anytime Fitness discusses about the relevant questions that may appear in the mind of the customers before enrolling to the exercise session of it. The experts of Anytime Fitness have separated the customers according to their location and their personal preferences. After that Anytime Fitness has discussed about who will be benefitted from the health services of this gym. Even before targeting customers, an organisation should have clear and transparent idea and concept about the market (Wong et al. 2014). As Anytime Fitness encounters with a strong level competition from its competitor companies like Hour Fitness Worldwide, Bally Total Fitness Holding Corporation and Curves International, therefore, the management should offer suitable services, which these companies are unable to offer the customers. Anytime Fitness can build and maintain a perfect reputation only after targeting appropriate customers. Anytime Fitness also thoroughly analyses the specific areas of expertise of the company and performs an adequate market research only to know whether the company possess relevant knowledge of Australia. Anytime Fitness mainly targets the fitness-obsessed individuals, health conscious and obese inhabitants of Australia (Luettgen et al. 2012). Both the men and women are the unique and innovative equipments of this particular gym attract the targeted clients of Anytime Fitness, however, young male and female, which is capable to offer international quality health services. Broad (2012) has mentioned that, in this fast forward lifestyle nobody prefers to go gym in order to gain knowledge about the health equipments in the gym, however, they come with an established fitness goal. Anytime Fitness uses social media platform to attract their targeted customers.

Behaviour of the segmented customers

Behavioural segmentation separates the segmented customers solely based upon their behaviour towards a particular product or services.  As opined by Howley and Thompson (2012), the behaviour of the customer helps an organisation to decide the suitable marketing management. There are various factors involved with the decision-making process of consumer and it influences the business purpose of the organisation. The consumer behaviour greatly influences the business of Anytime Fitness also as it determines the satisfactory factors of the customers. The behaviour of the segmented customers of Anytime Fitness is closely associated with the successful service offers, cost of the provided services and the basic standard and quality of the services both within the gym and outside. However, Anytime Fitness is perceives appropriate strategies to maintain a good relationship with the consumers with the help of social media, such as Facebook, Twitter, Instagram and official online website of Anytime Fitness. Caulfield (2012) has suggested that the consumer behaviour transforms according to the transformation of the industries. It is an obvious fact that the behaviour of the customers of a thematic and entertainment park will be different from the consumer behaviour of a fitness organisation. In Anytime Fitness, there is a firm relationship in between the positive communication of customers and the dimension of the service quality. However, Bouchard et al. (2012) have determined that demographic factors are significant enough to affect the perceiving process of customer expectations of the service quality of Anytime Fitness. The behaviour of the segmented customers of Anytime Fitness is to stay fit and to lose weight for getting a perfect physique. The consumers mainly select their preferred gym according to the membership cost, the availability of modern exercise equipments, session of the gym, potential trainers and the location of the gym. The customers of the fitness industry become more educated about the maintenance of the perfect health and it actually helps several gyms to improve the quality of the services for catering more number of customers than the previous ones. The management of Anytime Fitness has perfectly understood the behaviour of the targeted consumers and has tried to provide effective services to them (Werle et al. 2015). Even Anytime Fitness has analysed the segmented consumer behaviour in detailed manner for getting a clear and transparent view about the satisfaction level from their gym as it has the capability to enhance the sales revenue of this gym.

Marketing mix of Anytime Fitness in order to target the segmented customers

Marketing mix of an organisation helps to target the segmented customers with proper strategies. According to Maffetone (2012), the four Ps are closely related with the marketing mix such as, product, promotion, place and price. The fundamental importance of the marketing mix is solely dependent upon the ability of helping the business determining the suitability of services or products for specific targeted and segmented customer base. The 4Ps of Anytime Fitness is following:

Product

Anytime Fitness is famous health club, which is concerned to provide the excellent health services to the targeted customers with modern and technologically advanced equipments. All the equipments and the gym trainers are innovative, interesting and unique considered and compared to the other existing gym in various regions of Australia. Even Anytime Fitness provides a large variety of health equipments to retain its customers. Anytime Fitness offers a large number of strength and weight training machine in order to handle the crowd during peak hours that is from 4 Pm to 9 PM every day. The management of Anytime Fitness offers personal trainers with no additional costs to help the members and implements the improvement of the services and the health machines and equipments (Anytimefitness.com.au 2016). There are massage chairs, which help the members to cool down their body after heavy work out session and assistant in the gym to answer the important query of the members. Anytime Fitness also offer a huge and variety range of dumbbells, treadmill and other important machines. Anytime Fitness even provides cooler drink such as energy drink, protein shake and regular drinking water. There is also facility of using towel and paper towel with no additional costs.

Price

The membership price of Anytime Fitness includes various ranges, such as the initial joining fee is $99 and 12 months membership fee is $755.40 (Anytimefitness.com.au 2016). However, all these fees vary from one club to another with established membership conditions and terms. There is also free trial sessions offered by Anytime Fitness, with the help of this process, the members can understand about the provided services and after that can enrol in the gym. There is a start up and admission fee while enrolling into Anytime Fitness. However, Anytime Fitness also offer annual membership package. Anytime Fitness involves premium and super premium packages at minimum price. These packages are truly value for money as these packages includes unlimited gym usage in every locations of Australia. These package holders enjoy unlimited protein drinks in the gym. Anytime Fitness also offers special prices during new years and other special occasion of Australia. Anytime Fitness is a bit low priced gym in the fitness industry of Australia.

Place

Anytime Fitness operates its functions in the major cities of Australia such as Sydney, Perth, Brisbane and Melbourne, Queensland and Adelaide. Anytime Fitness has its health club in order to cater a large number of customers. The management of Anytime Fitness has decided to open gym in the prime location of working hub and college, universities area. As the location of the gym is most significant part to attract a large number of customers, therefore, Anytime Fitness selects appropriate locations for opening the gym in crowded locality from where the inhabitants can reach the gym by 10-15 minutes. Anytime Fitness grows in rapid manner in the fitness industry of Australia with providing a tough competition to the competitor companies in Australia (Anytimefitness.com.au 2016).Anytime Fitness usually avoids the location of its competitor companies and operates own functions in separated location.

Promotion

In present days, the advertisement of Anytime Fitness appeared radio and television as it can be considered as their main approach and method of promotions in Australia. Even Anytime Fitness promotes the services, price list and other relevant information in the social media, such as Facebook, twitter and the online official page of the organisation. During the opening of new club, Anytime Fitness offer promotional prices to the existing and new members. The promotions of Anytime Fitness focus to attract the average persons as well as fitness obsessed individuals in order to provide an easy solution to get in perfect shape in a relaxing and inviting environment without more intimidating. Anytime Fitness uses internet advertising in potential manner and their advertisements appear with different key words such as affordable gym, weight loss and personal trainers (Anytimefitness.com.au 2016).Anytime Fitness takes help of some restaurants, who prepare healthy and nutritious food to the customers during the promotion. This kind of promotion raises awareness against the obesity, which has become a burning issue in Australia and New Zealand. Anytime Fitness Mobile App also helps the clients to gain information from the personal trainers regarding health and exercises.

Table 2: Marketing mix of Anytime Fitness

(Source: Andreasson and Johansson 2014)

Recommendation to develop the marketing effort of Anytime Fitness

Although Anytime Fitness enjoys a strong position in the fitness industry of Australia, still with effective and adequate recommendations, it would be possible for this organisation to grow more in this particular industry.

The higher management of the marketing team of Anytime Fitness should enhance the gym membership sales with providing the clients more facilities such as free trials before membership period, which its competitor gyms in Australia fails to offer.

Anytime Fitness should invest money in developing a good website, which is capable enough to provide relevant and trust worthy information regarding the services, expert areas and the testimonials of the company. With software development experts, Anytime Fitness can make a good and interesting website design that can attract more client than the existing ones.

In the blog of Anytime Fitness, the marketing management should update regular activities of the gym, images of workout sessions and proper advices.

Anytime Fitness should use the process of digital marketing in order to promote and target the segmented customers.

Anytime Fitness can offer flash special on the anniversary of the gym and hire potential trainers to increase the customer service sales and customer retention.

Anytime Fitness should try a completely new and different marketing tactic in order to attract the customers.

Anytime Fitness should begin social media contests in order to cater a large number of clients.

The management should improve and maintain the mobile app of Anytime Fitness.

Above-mentioned recommendations are appropriate enough to align various marketing efforts and strategies to improve and execute a proper marketing plan. These recommendations will help Anytime Fitness to attain the best position in the fitness industry of Australia. Anytime Fitness enjoys its opportunities and strengths in the fitness industry of Australia with a large number of memberships. This particular gym is effective to provide an environment of flexibility and judgement free zone philosophy to its members, which help the organisation to hold a better position both in market share and in the fitness industry of Australia.

References

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Anytimefitness.com.au (2016) Home Page Available at https://www.anytimefitness.com.au/ [Accessed on Sep 5, 2016]

Anytimefitness.com.au (2016) Terms and Conditions Available at https://www.anytimefitness.com.au/terms-and-conditions/ [Accessed on Sep 5, 2016]

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