Increasing Membership at Yuhas

Performance Training:
Through Pricing Specials, with
Enhanced Online Presence and
Marketing Techniques


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INCREASING MEMBERSHIP AT
YUHAS PERFORMANCE
TRAINING:
THROUGH PRICING SPECIALS,
WITH ENHANCED ONLINE
PRESENCE AND MARKETING
TECHNIQUES

Prepared for
Tim Yuhas
Owner
Yuhas Perfomance Training



Prepared by
Tyler Egan
Tyler Lieb
Alden Burns





April 15, 2014


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Memorandum

TO: Tim Yuhas, Owner
FROM: Tyler Egan, Tyler Lieb, Alden Burns
DATE: April 15, 2014
SUBJECT: Increasing Membership at Yuhas Performance Training



Here is the report we have been working on this past semester on increasing membership at Yuhas
Performance Training (YPT).
After analyzing your gym compared to others in the area, it is evident that the membership rates at YPT
are considerably less than other surrounding gyms. This is mainly due to the high membership costs and
sub-par marketing techniques. In order for this gym to grow and become more profitable, increasing
membership is vital.
There are multiple steps that can be taken to solve this low membership problem. First, we need to find
ways to attract people who prefer a more traditional gym. To do this, YPT needs to improve their online
presence, lower prices, and optimize marketing strategies to draw in more clients. Also YPT can attract
more customers by focusing on bringing in groups such as families or teams.
During our research we found the majority of the local population is generally older with a high
disposable income. We need to take advantage of this by targeting this demographic and also their
children. With this in mind, we need to consider transforming this gym to attract athletes and families
alike.
We believe that if the gym follows these steps included in this report that membership numbers will
increase and allow Yuhas Performance Training to prosper.
Thank you for the opportunity to work with your company and we appreciate all of the support
throughout this process. If you have any questions regarding this report feel free to contact us at any time.






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Table of Contents

Page

Executive Summary ...........................................................................................................................5
Introduction ....................................................................................................................................... 6
The Low Membership ........................................................................................................................6
Yuhas Performance Trainings Membership Costs Tower Above their Competitions ......................6
Problems Obstructing YPTs Effective Online Presence ................................................................7
Website Lacking Critical Information .............................................................................7
Inactivity in Social Media ..............................................................................................8
Past Ineffective Marketing Techniques .........................................................................................9
Strategies to Increase Membership at YPT ....................................................................................10
Plans to Decrease Membership Costs ..........................................................................................10
Improving Gym Reputation Through Website Enhancements .......................................................11
Increasing YPTs Social Media Presence ....................................................................................12
Strategies to Improve Marketing to Attract More Clients ..............................................................12
Conclusion ..........................................................................................................................................13
Works Cited .......................................................................................................................................15
Appendix ............................................................................................................................................16

List of Illustrations

Figures Page

1. YPTs monthly membership
costs six times that of local competition ... 7

2. YPTs website is visually appealing
yet lacks key features. 8

3. Social Media usage has sky rocketed
and optimization is crucial 8

4. Median household income of $92,500
leaves many with a surplus of disposable income ....... 10

5. The local population is of older age
so attracting families is key ..... 11


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Executive Summary
This report analyzes Yuhas Performance Trainings (YPT) current marketing plan and strategies and
presents recommendations for increasing membership.
Membership is too Low
The main reason for low membership is the high prices the gym charges. Currently, the cheapest
membership is $199 per month, which only allows the member to work out twice a week. Though YPT is
not a traditional gym, this price scares away many potential members, especially when there are cheaper
alternatives in the area.
Yuhas Performance Training also does not market itself the way it needs to for the gym to increase its
membership. Though it has experimented with newspaper ads, direct mailings, radio ads, social media,
and trial memberships, none have seemed to work. Word of mouth and YPTs reputation have truly been
the only effective tools that get more people into the gym.
Changes are Needed
Yuhas Performance Training realizes that it needs to increase its current membership. Though
membership will start to rise soon due to college athletes and students returning home in the coming
month, changes are needed to the current marketing plan. As inflation in the economy starts to rise, it is
necessary for the gym to turn a higher profit. That means it needs to increase its revenue stream.
Recommendations
Fortunately, there are a number of marketing techniques that YPT can try. YPT has only scratched the
surface of techniques that can bring more people into the gym. Though some techniques and ideas may
prove more costly at first, it will increase membership and revenues in the long run. A few of the major
ideas outlined in this report are:
1. Add New Pricing Promotions Currently, there is only an $89 one-month trial. The gym needs to
begin using more promotions, such as a possible one-week free trial followed by a reduced one-
month rate. Also, there should be a family pricing discount when families sign up together.
2. Increase Online Presence Changes need to be made to the gyms current website. Changes
include adding a list of professional athletes who train there and testimonials from them. Also,
include a biography of Tim Yuhas and the trainers whowork at YPT. Additionally, YPTs social
media presence needs to be improved. YPTs Facebook page needs to be more active, and Twitter
and Instagram accounts need to be created
3. Improving Marketing Strategies By properly promoting the superior training of YPT and
targeting the family sector the gym can bring in more customers. Along with this, YPT can
introduce weight loss and weight lifting challenges to increase an exciting atmosphere helping
YPTs word of mouth reputation.
These changes are necessary for YPT to increase its membership. It will take time, effort, and money up
front, but they will help the gym in the long run. These changes will generate new excitement about the
gym, and increase its membership, which will increase profits. The current members of YPT love the gym
and new members will as well, once they give it a try.
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Increasing Membership at Yuhas Performance Training
Introduction
The low membership rate at Yuhas Performance Training (YPT) has been a constant problem for years.
The gym provides superior quality training, compared to traditional gyms in the surrounding area, and
more people should be taking advantage of the unique training experience.
The main reason for low membership is the high price the gym charges. The cheapest membership is
$199 per month, scaring away many potential members to cheaper alternatives in the area. To make up
for this many marketing strategies have been tested and inevitably failed. Though membership will begin
to rise with the return of college athletes, the gym needs a more stable flow of income. With inflation
rising YPT needs higher revenues, meaning they need more members.
The purpose of this report is to investigate YPTs past marketing strategies and propose ways to improve
its presence in the community. While the prices could be slightly decreased, they could not be changed
dramatically enough to compete with the large chain gyms in the area. This means the main goal of this
report is to tailor recommendations to make the gym more popular and to convince people this training is
clearly worth the money. However, discounts are needed to get this process started.
Constructing this report meant researching the demographics of New London County and getting to know
the clients we needed to target. According to Nielson, a website specializing in demographics, the
majority of the population is of older age with a median household income of $92,500. Also the highest
percentage of the population lied within the 45-54 age group, which is a positive sign since targeting this
age group can bring in families with high disposable income.

The Low Membership
Yuhas Performance Trainings relatively low membership numbers is a problem that needs to be
addressed as soon as possible. With high prices and little to no marketing a business can only last so long
relying on word of mouth and few loyal customers. Along with this, the focus on training athletes is
beneficial during the summer months, however once school begins the gym lacks the necessary clientele
to bring in profit.
Yuhas Performance Trainings Membership Costs Tower Above their Competitions
To begin, the high prices at YPT are the main cause of the insufficient membership numbers. The first
thing people usually look into when joining a gym is the cost. This is a problem YPT needs to address as
their cheapest monthly membership costs $199 while most other tradition chain gyms are around $20 -
$30 dollars a month, as you can see from figure 1 below.
Figure 1 illustrates the monthly cost for a gym membership for other local gym, as well as the price for
YPT. As seen in the graphic the price of $199 is six times higher than most of the other gyms in the area.
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35
10
35
20
15
0
199
0
50
100
150
200
250
Snap
Fitness
Planet
Fitness
Work Out
World
Anytime
Fitness
HS Gyms
(non
students)
HS Gyms
(students)
YPT
Cost of Monthly Gym Membership
Not to mention this $199 membership only allows a member to work out twice a week; so if a member
would like to work out more often this gap only intensifies.


Figure 1
YPTs cheapest monthly
membership costs at least 6 times
the amount of other gyms in the
area.




These other gyms do not provide the one-on-one quality training that Tim Yuhas prides his company on,
so some price difference is to be expected. On the other hand, this large of a price discrepancy is
alarming. This is a big difference over one month but over the course of the year this gap widens.
Comparing YPT and Snap Fitness the second highest costing gym, the yearly amount spent on a
membership would be $2,388 and $420 respectively. This is a difference of $1,968. That scares away a
lot of potential clients.
The price is definitely an obstacle that is proving to be the most difficult for YPT to overcome in
attracting members. If YPT wants to continue to grow and keep up with inflation, they need to address
this issue first.
Problems Obstructing YPTs Effective Online Presence
Though YPT currently is an active member of the online community, its presence is lacking in many key
areas. Their current website which is visually appealing and easy to navigate still lacks features that could
enhance their reputation. Due to the growth of social media in the past decade their online presence in
such mediums has become just as important as the website itself.
Website Lacking Critical Information
Taking a quick glance at YPTs website, there arent many issues with it. As you can see from Figure 2
below the website is very polished and easily navigated. The website describes different types of training
programs and gives examples of sample workouts. However, there are other areas of the site that lack
information and depth. The website gives no mention of who the owner is and his credentials. There is
also nothing there about any of the trainers that work underneath him. Additionally, it makes no mention
of any of the professional athletes that train there, such as Rajai Davis (Detroit Tigers), Pete Walker
(Toronto Blue Jays), John McDonald (Los Angeles Angels) or Kara Lawson (Washington Mystics) (See
Appendix 1 for list of all professional athletes). The absence of these features reduces the credibility of
the gym which is a problem considering the high prices.
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Figure 2
This is a screen shot of YPTs
website and as you can see it is
visually appealing and easy to
navigate.



Inactivity in Social Media
Social Media is becoming increasingly more and more important for small business as a way to connect
with their customers. As you can see below in Figure 3, social networking usage has grown exponentially
the past 6 years. Furthermore, the increase in usage is also consistent among the older age groups, which
is important later in the report. The growth of social media allows for businesses to interact with their
customers yet this opportunity must be optimized.



Figure 3
Social networking usage has been rapidly growing for all age
groups and optimizing social media is crucial.





YPT currently has a Facebook page, which is updated couple of days with things like videos of members
working out, healthy eating tips, updates on the professional and college athletes that train there, and
general news and notes about the gym. However, these updates are not frequent enough. High school and
college age athletes check Facebook at least once a day. For the Facebook page to truly work, it needs to
be a large part of the updates people see when they scroll their newsfeed. Members and potential
members may go days without seeing anything from YPT on Facebook. This keeps YPT fresh in their
minds and hopefully something they think about often.
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Twitter and Instagram are two other social networking sites that have recently become extremely popular.
Currently, YPT does not have a Twitter or an Instagram account. On YPTs website, there is a link to the
owners personal Twitter account, which is not extremely active. Also, the tweets that he sends out are the
same thing that is on YPTs Facebook page. In each tweet, there is a link to the Facebook post that it
corresponds with. Instagram is also another social networking site that YPT does not utilize. Instagram
allows people to post pictures. Both Twitter and Instagram could be used to help attract new members.
Past Ineffective Marketing Techniques
Over the past couple years YPT has tried many marketing techniques to draw more attention to the gym,
however all of these have come with little to no success. Some of the recent strategies that have been
used by YPT include:
Running ads in local newspapers
Advertisements over local radio stations
Direct mailings to targeted households of a certain income
Hiring someone to manage their Facebook account
Trial memberships
These marketing techniques were a good start, however they were not executed properly, and have not
resulted in higher membership rates. When YPT hired an outside party to run their Facebook account
they ended up getting scammed out of their money. This person simply got people from across the
country to like the YPT Facebook page, and never posted information updating people on the gym. Even
though the increased likes originally seemed like a good thing, it was found out the new likes came from
people in different states who would never actually attend YPT. These actions resulted in YPT having to
fire their manager of their Facebook account causing the loss of thousands of dollars.
The newspaper and radio advertisements were a good start, however they were not enticing enough to
draw in new customers. These ads were mostly run to get YPTs name out there, instead of promoting
the unique benefits and features the gym has to offer. Had these advertisements talked about what
separates YPT from other gyms then there would have been more interest generated.
Due to the lack of success from these marketing techniques, word of mouth has been the only successful
way to attract new customers. While this has been working to an extent, it is not a reliable way to get a
gyms name out there. A better marketing technique would generate a buzz about our gym amongst a
much larger demographic.
YPT needs to begin placing the appropriate information into advertisements and direct it at potential
customers. With an effective marketing strategy, YPT will be able to stop relying on word of mouth, and
begin to attract a greater number of people to the gym.



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Strategies to Increase Membership at YPT
Increasing membership will involve a committed effort from the owner and employees to take the
following steps and recommendations laid out in the following sections. By providing members with
special pricing options, improving their online and community presence the gym will attract more
members and increase the companys profits.
Plans to Decrease Membership Costs
Understanding the gym provides unique high quality training from profession level trainers, the higher
price is to be expected. The key is to attract more members to offset or better yet, bring in more money
than is lost by the lower membership prices.
The gym could choose from a number of options listed here, which are all aimed to attract more members
through providing lower prices:
Family membership plans
Group or team memberships
Free trials or discounted first time members
First, the gym should institute family plan pricing. This would be the most affective and beneficial to the
company in attracting both athletes and older aged members, alike. As stated before and illustrated below
in Figure 4 and Figure 5, thanks to the Nielson website, is the demographics of New London County.

Figure 4
The median household income of New
London County is $92,500 leaving many
families with a high amount of disposable
income.


Figure 4 displays the household income of the area in which YPT is located. With a median household
income of $92,500, these families have the necessary disposable income that could be invested in
receiving a safe and effective training regimen. Further research into the population age only increased
the validity of these findings.
As seen below in Figure 5, the age group in which the majority of the population resides is 45 to 54 years
old. This is the age group that would have this high disposable income and generally families as well.
This is definitely encouraging that providing family discounts would bring in more members. This is also
a positive in the sense that this area would be more willing to spend the extra money on a quality gym
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membership and training program. Due to this research, the safer and higher quality training provided by
YPT would suit well in attracting families, who have the necessary funds and care for their childs safety.


Figure 5
The highest percentage of the local
population is within the 45-54 age
group, which is the perfect age
group to target families with higher
disposable income.


Next, the company could attempt to attract groups of friends or even small teams by providing group
discounts. This would help attract customers by lowering the membership price and also give friends to
work out with. Furthermore, this option would help the companys reputation and gain valuable word of
mouth from its new clients. If YPT is able to attract teams this could also gain a network with coaches in
the community who could recommend his gym, which would again lead to more members.
Finally, YPT could offer new members either a free month trial or a couple month-discounted rate. This
would be an effective method in attracting more clients, as the price is generally the problem in the low
membership numbers. By implementing this plan it would allow people to test the training without being
financially obligated to pay two hundred dollars a month right off the bat. This would also allow the
trainers to work with more people and prove to them this training is worth the investment.
Improving Gym Reputation Through Website Enhancements
The first major change that YPT needs to make to their website is the addition of a biography page about
the owner and the other trainers. A simple head shot and short biography including their college degrees
and which schools they earned them at, past and other relevant work experience, and the sports that they
play will help potential customers see that YPT is run by trained professionals.
Another addition that could be useful to the website would be adding a history of the gym page. Show
where YPT got started, its different locations, and how it has evolved would add a touch that connects
with potential members.
People will feel like they are closer with the gym and the owner with this. Finally, professional and
Division I college athletes need to be mentioned and utilized more. There needs to be a page that lists all
the professional and college athletes that train there. People will be drawn in when they see names of
players from different sports that they recognize. It also will show people that athletes of the highest
caliber train there because they believe it is the best in the area. Another way YPT can utilize its
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professional and college athletes by having them give testimonials, either written or on video. Currently,
there are video testimonials on the website, but these are only from the adult members who dont have the
influence professional athletes do (See Appendix 2 for Mike Boyle Strength and Conditioning
comparison).
Increasing YPTs Social Media Presence
The biggest change to YPTs Facebook page is that needs to be updated a lot more frequently. YPT
should want to flood peoples news feeds, keeping the gym in the front of their minds. At a minimum,
there need to be at least three updates per day. Possibly a healthy eating tip of the day, one video of
someone working out, and another picture that can be anything from a member, to an update about a
professional or college athlete. Another thing that YPT could do on Facebook would be to have an athlete
of the week award. Here, they would select one person from the gym who had a great week and another
person whos playing sports professionally, in college, or in high school. This again would put the word
out there that they train high quality athletes and make them better at their sports.
Another change that needs to be made is the addition of a YPT Twitter and Instagram account. Social
networking is key to a businesss success and only having a Facebook page does not cut it anymore.
Though there is a Twitter account that the owner runs, one specifically for the gym needs to be created.
An Instagram account also needs to be added to YPTs social media repertoire. These two accounts, plus
their Facebook page would make it nearly impossible for someone who follows at least two of them to go
a day without seeing anything from YPT.
Strategies to Improve Marketing to Attract More Clients
Implementing a better marketing strategy will help YPT attract new members; some who may have never
known this gym existed. Employing a better strategy will require advertisements and promotions to
include appropriate, intriguing information on the gym. In addition, it is essential that these new
marketing strategies be directed at the correct audience.
The past marketing techniques used the correct mediums for a good marketing strategy, but were
unsuccessful in attracting new members due to the poor execution. So going forward YPT should
maintain using the same channels of distribution, just with a more precise message. The mediums that
should be used going forward include:
Newspaper ads
Radio ads
Direct mailing lists
Advertisements via social media websites (Facebook, Twitter, Instagram)
The advertisements that will be in the newspapers and on the radio need to describe what sets YPT apart
from the traditional gyms. It is important to distinguish YPT as a different training experience. By
placing information about the characteristics of this gym, like the turf training area, the audience will
begin to develop an understanding of what this gym is. YPT has to establish itself as an alternate, better
place to train than a standard gym.
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Every advertisement should also give the consumer an extra incentive to attend this gym, through trial
memberships or discounted rates for a limited time. This will allow people to try out the gym and get
them to understand the unique experience that YPT has to offer. Once people begin to try it out they are
more likely to stay with YPT, and spread positive word of mouth.
Targeting these ads to the right demographic is just as important as the information contained in the
ads. It is extremely important for YPT to focus a most of its marketing efforts on parents with kids aged
12-18 in a 15-mile radius of the gym. YPT should not focus any marketing efforts outside of this radius
due to the fact that it is very rare for someone to travel a long distance to go to a gym.
There are many benefits of YPT directing their advertisements towards adults with kids aged 12-
18. Middle and high school students make up the majority of the members at YPT, however it is
extremely rare that they are the ones paying for the membership. Since the parents are the ones who pay,
they should be the audience who sees what benefits YPT has to provide.
Directing advertisements towards parents will also increase the amount of people who are aware of our
advertisements. Since it is the parents who read the newspaper and listen to the radio, it would not be
effective to target students with ads. In addition, advertising YPTs new family discount rates will entice
parents to sign up their whole family.
Another possible form of advertising to grab customers attention is to hold in-house challenges. These
could include weight loss and weight lifting competitions. Providing prizes for these competitions would
truly excite the members. This will provide a fun and encouraging atmosphere in the gym, and provide
the gym with promotional opportunities. To begin, YPT can promote the challenge to bring in more
clients and those participating are likely to spread the word of this competition helping the gyms
reputability.
By aiming YPTs advertisements at the appropriate audience with exciting information on the gym, YPT
will begin to see an increase in membership as a direct result of its advertising.

Conclusion
Yuhas Performance Trainings low membership rates have been a pressing issue that needs to be
addressed. The companys high prices scare away potential members, who would benefit from the unique
quality training, hurting the companys profits.
This low membership problem is something that can be overcome if the company adheres to the
following steps:
1. Provide discounted memberships: Primarily family discounts that will attract the entire family.
Group or team discounts to attract more members and build a network with coaches in the area.
Also free or discounted trials in an attempt to expose people to the quality training provided by
YPT. These discounts will allow for the company to compete with the surrounding gyms.
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2. Update Online Presence: Improve the current website through the addition of trainer
biographies, a history of the gym, and utilize the professional athletes that train there. Also,
update the Facebook page more frequently and create Twitter and Instagram accounts for the
gym.
3. Improve Marketing Techniques: New marketing strategies need to be implemented that focus on
advertisements towards parents with kids aged 12-18. These new advertisements need to show
the audience what separates YPT from a traditional gym. By using improved newspaper and
radio advertisements YPT will be able to attract more people to their gym.
These recommendations may take some time to implement but if the owner and employees at Yuhas
Performance Training dedicate themselves to following these steps the membership numbers should
improve.

















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Works Cited
"Adult Performance Programs." Mike Boyle Strength & Conditioning. N.p., n.d. Web. 15 Apr. 2014.
<http://www.bodybyboyle.com>.
"Athlete Alumni." Mike Boyle Strength & Conditioning. Mike Boyle Strength & Conditioning, n.d. Web.
23 Apr. 2014. <http://www.bodybyboyle.com/athlete-alumni>.
Madden, Mary, and Kathryn Zickuhr. "65% of online adults use social networking sites." Pew Research .
Pew Research Center, n.d. Web. 12 Apr. 2014. <http://www.pewinternet.org/2011/08/26/65-of-online-
adults-use-social-networking-sites/>.
"MyBestSegment." PRIZM. Nielsen, n.d. Web. 12 Apr. 2014.
<http://www.claritas.com/MyBestSegments/Default.jsp?ID=20&menuOption=ziplookup&pageName=ZI
P%2BCode%2BLookup#>.
"Programs." EXOS Formerly Athletes' Performance. EXOS, n.d. Web. 23 Apr. 2014.
<http://www.athletesperformance.com/programs/>.
"Welcome to Yuhas Performance." Yuhas Performance. N.p., n.d. Web. 15 Apr. 2014.
<http://www.yuhasperformance.com/>.













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Appendix

1. Professional Athletes
Rajai Davis (MLB, Detroit Tigers)
Pete Walker (MLB, Pitching Coach, Toronto Blue Jays)
John McDonald (MLB, Los Angeles Angels)
Andrew Carignan (MLB, San Francisco Giants)
Anthony Giansanti (MLB, Chicago Cubs)
Eric Campbell (MLB, New York Mets)
Kara Lawson (WNBA, Washington Mystics)
Adam Rand (MLL, Chesapeake Bayhawks)
Patrick Sharp (NHL, Chicago Blackhawks, expressed interest in training this summer)

2. Mike Boyle Strength and Conditioning Comparison
Yuhas Performance Training was designed to model Mike Boyle Strength and Conditioning
(MBSC) in Boston, Massachusetts. YPT is basically a scaled down version of Mike Boyles gym,
but offers the same type of workouts to both athletes and adults. However, YPT did not mold its
website after MBSC. MBSC offers pages where they list all the professional athletes that train
there, as well as testimonials from these professionals, trying to convince people to come to the
gym. Another gym similar to both YPT and MBSC, Athletes Performance located in Phoenix
Arizona also, uses this strategy with its website. If YPT could do something like this with their
professional athletes (See Appendix 1), it would benefit the gym and bring in more members.