About GOLD’S GYM

Gold’s Gym started in Venice California in 1965, and soon became the hotbed for the
development of training techniques, equipment and nutritional concepts that formed the
foundation for the modern fitness revolution. In 1975, Gold’s Gym received international
attention when it was featured in the major motion picture, ‘Pumping Iron’. It was thus
effectively established as the ‘Mecca of Bodybuilding’.

Today, Gold’s Gym has over 680 facilities. It is the largest international gym chain in the
world recognized for its passion, unique heritage, and experience as the final authority in
fitness and lifestyle.

The India chapter of Gold’s Gym started in 2002, when the first Gold’s Gym India branch
was set up at Nepean Sea Road, Mumbai and now it covers various Tier I and selected Tier II
cities. Gold’s Gym India has slowly and steadily carved its name in the Indian market and
built a reputation to reckon with.

GOLD’S GYM: SEGMENTATION, TARGETING AND POSITIONING

Segmentation
Gold’s Gym segments its market on many dimensions. These include:
• Psychographic (lifestyle) characteristics: Gold’s gym, being in the fitness industry,
caters to the needs of health& fitness enthusiasts, athletes, sportsmen & body-builders
and those for whom looking good is a pre-requisite in their profession (example:
models, air hostesses).
• Demographic: Based on age and working status, Gold’s gym targets mostly the youth,
students, young adults and working population (15- 55 years of age). People in this
generation are health conscious right from the beginning and think of joining a gym
as a lucrative investment.
• Benefit segmentation: Gold’s gym offers a healthier lifestyle and a better looking
body. It boosts the self-esteem and confidence. Thus, it delivers social and positive
emotional benefits to its members.
• Usage-situation segmentation: Gold’s Gym offers special services under a personal
trainer to those who need to lose weight quickly and urgently. For example, to-be
brides who need to look good in time for their wedding, models/air hostesses who’ve
just give birth, etc.
Under the VALS framework, the target segments are :
• Innovators: Successful, sophisticated people with high self-esteem; having abundant
resources and being receptive to new ideas and upscale, niche services.
• Achievement-motivated segment- Achievers &Strivers who are goal-oriented people
using products& services that demonstrate success to their peers
 • Self-expression motivated segment- Experiencers who desire social and physical
activity.
Targeting
The target market for Gold’s Gym would be the youth segment (students and young adults)
and the working population. These would fall in the 15-55 years age group.
For these individuals, looking and feeling good is a priority and they are willing to pay a
price to achieve this. They view Gold’s Gym’s membership as an investment in a better
lifestyle. The aspirational needs of acceptance and self-esteem are fulfilled.
For working professionals, joining a gym is also a way of socialising and busting stress. Plus
professionals like models, air-hostesses &athletes, for whom being fit is imperative, are also
targeted.
Positioning
Gold’s Gym has positioned itself as a very classy, expert and wholesome provider of fitness
and well-being. It is not merely a gym but a provider of a better lifestyle. Their interiors are
done tastefully with full-length wall mirrors, soothing wall paints, good music and plenty of
space. They have different sections for different workouts (like cardio, free weight area,
strength training), a swimming pool &squash courts, a massage room, steam room and a juice
bar.
Everything is very scientifically planned ensuring pleasant customer experience. It’s revered
the world-over for providing the finest equipment and fitness knowledge to help its members
achieve their individual potential.

MARKETING MIX OF GOLD’S GYM

Gold’s Gym product strategy is to attract and retain business. The main goal of the gym is to
promote a positive atmosphere and unforgettable experience that helps their clients lead a
healthy lifestyle.

Gold’s gym has positioned itself in the market as a fitness centre for upper middle and middle
class

Product

Gold’s gym offers exceptional product coupled with pleasing experience to promote repeat
business. One of the ways to separate themselves in the product offerings such as providing
state of the arts exercise equipment, professional trainers leading exercise classes, and
personal training helping with nutrition advice. By offering these products helps maintain
high quality standards for the Gold’s Gym. Gold’s Gym primary focus is exercise, that is
what their gym offers and thus their primary products are exercise equipment for aerobic &
cardio.
Furthermore to expand on Gold’s Gym's product strategy it includes supporting services such
as tanning, hydro massage, sauna, and steam rooms they offer. The product levels are core
benefit which is buying the right to exercise.

Price

The pricing of the various products varies from franchisee to franchisee depending upon the
variation in the infrastructure and the location. However, the base price is set by the company
below which a franchisee cannot go.

The pricing of the Gold’s gym is fairly competitive and the gym offers a variety of lucrative
packages to choose from suiting according to the specific need of the customer.

Place

The Gold’s gym serves its customers through a large network of over 700 branches spread
across the world. It also gives the facility to the travelling customer to go and workout in any
of the branches worldwide by showing the travelling card issued by the home branch.
However, this facility can be availed only 14 times per branch per year.

Promotion

The company promotes its brand through advertising. Advertising is a critical component in
promoting any business, and an area that Gold's Gym has excelled in for nearly 43 years.
Their track record of effective, award-winning advertising campaigns has established Gold's
Gym as the most recognized name in the fitness industry worldwide. They are proud of their
advertising and encourage all franchise owners to take advantage of this important aspect in
gaining a competitive business.

The gym also gets into various king of associations with movies and brand to promote its
brand through various channels. One such latest campaign was that of association with sony
pictures movie ‘Karate Kid’.

People

The gym’s staffs for administrative work as well as the fitness trainers are appointed by the
franchisee only. The gym has various certifications and training programs which each of the
employee have to go through for their respective job.
In fact, Gold’s Gym India has launched India’s very first International Fitness Management
Institute-Gold’s Gym University (GGU). It offers certificate courses in Fitness Management,
Personal Training and Group Exercise Instructing. Covering a spacious 400 sq feet area at the
Gold’s Gym, Nepean Sea Road locality, Gold’s Gym University covers a range of subjects to
comprehensively address and ensure the best international brand practices in India.
Thus, it can be seen that the company lays great amount of emphasis on training its
employees and its training is one of the best offered in the country.
Process
 The process followed by Gold’s gym is standardized to a certain extent with some
customization to address specific requests of customers. Once a new customer visits the gym,
he/she is first asked to fill a ‘Guest Courtesy Form’ which contains basic information, fitness
goals, past gym experience (if any) of the customer, seriousness to achieve the fitness goals.,
etc. Then a body composition analysis is done in order to understand the body structure and
provide specific or customized programs/guidelines to achieve their desired goal. Following
this, the customer is shown the various facilities at Gold’s Gym and explained the benefits
that could be derived out of it. Also, information is provided to the customers regarding the
certified trainers, world class equipments and other facilities which differentiates Gold’s
Gym in the market. After the entire process, once the customer is prepared to join Gold’s
Gym, he/she is asked to fill up the membership form and payment for the same is accepted.
Physical evidence
The first and the most important physical evidence is the gym itself, i.e., the facility. Other
physical evidence are the various equipments the gyms offers like treadmills, elliptical
machines, stationary cycles, and stair-climbers, free weights and strength equipment. Also,
the employees and the trainers are also part of the physical evidence of the services.

SERVICE BLUEPRINT

Gold’s Gym’s Gym’s exterior, Gym’s Receptionist,

Physical Evidence website, ads. Building, Parking lot, Entryway, Lobby Area
Neighbourhood Doorman

Customer Actions Learns about gym, Goes to reception/

visits website Arrives at Gym Enters the Gym Help desk
Line of Interaction

Onstage Contact
Backstage Contact
Support
Employee
Line
Line
of of Processes
Actions
Internal
Visibility
Employee Actions Interaction
 Equipments, training Registration form,
Physical Evidence area, trainers, other membership card
members, juice bar, Parking Assistance, Open the Greet, answer
spa/steam bath, etc. Valet door, Greet queries & give
detailssuitable
Select about service
Customer Actions membership scheme, Fill
Visits the training Decides whether to registration form, make
If YES payment
rooms & facilities avail service or not

Proper seating
arrangement,
Onstage Contact Maintain clean
Employee Actions desk

Line of Visibility
Maintenance of Maintenance of Ensure presence Proper
website, issuing ads parking lot, & training of training of
Line of Interaction gym’s building doorman staff
Backstage Contact
Employee Actions

Line of Internal Interaction

Line of Interaction
Support Processes
 Line of Interaction Work-out area, Rooms, Towels,
Equipment, Locker soap, oils, water
room, Trainer, Bar setting, quality, therapist, Gym’s
Lighting, Air decoration & temperature and Exterior,
Provide Assistance in filling form
Physical Evidence seating Parking Lot
quality, other attendants
members, Music Issue membership card, prepare
work-out schedule for new
Uses other facilities member according
Finish to his
Customer Actions Begins training &
Visits the Juice like shower, preference, allot
session andtrainer
work-out,
bar massage sauna, leave
Manages locker
Line of Interaction swimming pool

Quick preparation of
membership card, give
Onstage Contact information on
Employee Actions unoccupied trainers

Line of Visibility
Registration System,
Member Database
Line of Interaction
Backstage Contact
Employee Actions

Support Processes
 DEMAND AND CAPACITY MANAGEMENT AT GOLD’S GYM

The gym works proactively

Greet & talk within the process of matchingGive
Take order, the fluctuating
instructions demand with the fixed
member,the
capacity. Generally, Prepare
demand forPrepare,
the gymGivegoes up in
forthe month
sauna, give of May, June, and July.
Say goodbye,
course chart, order to
This pattern is because of the summer vacations, when a lot of students
massage and go for gym.Get the
advice on weights, backstage provide soaps, member’s car
Such spurt cardio, give demos, employees,
in demand is handled by the gym by giving attractive packages and heavy
towels, shampoo
select music, etc. deliver the order
discounts during the lean hours, so as to make use of capacity available in an optimum
manner. For e.g., the gym normally offers 20% - 25% discount for the membership of one
month whereas in case of lean hours, it offers hefty discounts as much as 35-40% which is
referred to as ‘silver hours package’. Thus by varying the pricing of the packages the demand
Studying the Maintain Menu Prepare room,
is matched with the capacity.
member’s details, refill
card, clean the Process
decide some utensils & fruits soap/shampoo,
Theorganization follows
work-out a breakshift
routine system where maximum
dry thefloor
floorstrainers are allotted inofthe
completion
& vegetables session
4 hours slot in the morning, i.e. from 6am to 10am, and 4 hours slot in the evening, i.e. 5pm
Line of Internal Interaction
to 9pm.

Line of Interaction Maintenance of Maintenance of

hygiene, Billing and hygiene, training Maintenance
equipment, music purchase staff, Inspecting of facilities,
system, ACs records supplies, Usage & Parking lot, etc
Billing details,
Inventory status
 ANALYSIS & INTERPRETATION

Customers Profile:

Demographic Segmentation:

Membership Status:

Customer Expectations and Buying Behaviour

Reason for Joining a Gym: (Demographic Segmentation, Values in percentage)

Interpretation:

The reason for joining a gym varies across different age groups where people below 18 years
of age give maximum preference to losing weight and increasing muscular size and strength.
People in the age group 18-25 years have diverse requirement with priority given to body
tone and increasing muscular size and strength followed by losing weight and general fitness.
On the other hand, people above 35 years give high preference to general fitness and cardio
maintenance.

On analyzing the needs based on gender, it is seen that male customers demand more of
general fitness and muscular size and strength where as female customers demand for body
tone and losing weight.

Importance of Different Attributes

AGE Membership Certified Brand Facilities Flexible Ambianc
Location Equipments
GROUP Price/Scheme Trainer Name Provided Timing e

Less than
3.75 3.5 3.45 3.25 4 4 3.25 4
18
18-25 3.29 3.80 4.20 3.92 3.03 3.12 3.82 3.24
26-35 3.33 3.69 4.30 4.00 3.57 3.27 4.10 4.15
Above 35 3.27 3.90 4.00 4.00 3.10 3.14 3.90 3.63

Attributes Male Female Overall

Membership Price/Membership
3.26 3.47 3.32
Scheme
Location 3.56 3.57 3.56
Equipments 4.25 3.89 4.15
Certified Trainer 3.74 3.85 3.78
Brand Name 3.12 3.50 3.22
Facilities Provided (Spa, Steam 3.23
3.11 3.45
Bath, Air conditioning, etc.)
Flexible Timing 3.61 3.42 3.56
Ambiance 3.60 3.92 3.70

Interpretation:

For people below 18, attributes like brand name, facilities provided and ambience play a
major role in his/her selection of a gym. On the contrary, for the age group of above 35,
attributes like equipments, certified trainer and location play a major role to select a particular
gym.

For males, equipments and certified trainer are the most important attributes while for
females the ambience and the equipments are the most important attributes to select a
particular gym.

Here, we can apply Anova-Single Factor test to determine if all the factors are equally
important or there is some difference between them as considered by the people when
selecting a particular gym.

Null Hypothesis, H0: The respondents give equal importance to all the factors, mentioned
above, when selecting a particular gym.

Alternate Hypothesis, H1: The respondents do not give equal importance to all the factors,
mentioned above, when selecting a particular gym.

Groups Count Sum Average Variance

3.324358 1.0592492
Membership Price/Membership Scheme 67 223
2 1
3.557164
Location 67 239 0.9434645
2
Equipments 67 278 4.149253 0.5870646
 7 8
3.776119 0.6223428
Certified Trainer 67 253
4 3
3.223880 0.8738127
Brand Name 67 216
6 5
Facilities Provided (Spa, Steam Bath, Air conditioning, 3.234509 1.0117593
67 217
etc.) 7 8
3.557164 0.8172772
Flexible Timing 67 239
2 5
3.701492 0.7842605
Ambiance 67 248
5 2

Source of
SS df MS F P-value F crit
Variation
8.285714 9.8945256 1.26E- 2.02691
Between Groups 58 7
3 7 11 1
442.149 0.837403
Within Groups 528
3 9

500.149
Total 535
3

Interpretation:

Since, p value < 0.05, hence, Null Hypothesis, H0 is rejected.

Therefore, Alternate Hypothesis, H1 is accepted. Hence, the respondents do not give equal
importance to all the factors when selecting a particular gym.

Therefore, 1-sample T-test can be applied to determine the factors that are significant for the
respondents to select a particular gym and the factors for which the respondents are
indifferent.

Assumption: The test value considered for the test is 4 on a scale of 1 to 5.

The sample size is 67 and the corresponding t value is 1.625, i.e. t (tabulated) = 1.625

The factors are:

• Membership Price/Membership Scheme

Null Hypothesis, H0: The number of respondents who consider membership

price/membership scheme as an important factor is equal to the number of respondents who
do not consider membership price/membership scheme as an important factor.

Alternate Hypothesis, H1: The number of respondents who consider membership

price/membership scheme as an important factor is greater than the number of respondents
who do not consider membership price/membership scheme as an important factor.

Test Value = 4 95% Confidence

Interval of the
 Difference
T df Sig.(2 Mean Lower Upper
Tailed) Differenc
e
Membership -3.086 66 .003 3.32 -.64 -.14
Price/Scheme

Interpretation:

Here, t (calculated) = -3.086

Since t (calculated) < t (tabulated), therefore, Null Hypothesis is accepted.

Hence, number of respondents who consider membership price/membership scheme as an

important factor is equal to the number of respondents who do not consider membership
price/membership scheme as an important factor. In other words, respondents are indifferent
to membership price/membership scheme.

• Location

Null Hypothesis, H0: The number of respondents who consider location as an important
factor is equal to the number of respondents who do not consider location as an important
factor.

Alternate Hypothesis, H1: The number of respondents who consider location as an

important factor is greater than the number of respondents who do not consider location as an
important factor.

Test Value = 4 95% Confidence

Interval of the
Difference
T Df Sig.(2 Mean Lower Upper
Tailed) Differenc
e
Location -.880 66 .382 -.44 -.34 .13

Interpretation:

Here, t (calculated) = -.880

Since t (calculated) < t (tabulated), therefore, Null Hypothesis is accepted.

Hence, number of respondents who consider location as an important factor is equal to the
number of respondents who do not consider location as an important factor. In other words,
respondents are indifferent to location.

• Equipments

Null Hypothesis, H0: The number of respondents who consider equipments as an important
factor is equal to the number of respondents who do not consider equipments scheme as an
important factor.

Alternate Hypothesis, H1: The number of respondents who consider equipments as an

important factor is greater than the number of respondents who do not consider equipments
as an important factor.

Test Value = 4 95% Confidence

Interval of the
Difference
T Df Sig.(2 Mean Lower Upper
Tailed) Differenc
e
Equipments 5.262 66 .000 .15 .31 .68

Interpretation:

Here, t (calculated) = 5.262

Since t (calculated) > t (tabulated), therefore, Null Hypothesis is rejected.

Hence, number of respondents who consider equipments as an important factor are greater
than the number of respondents who do not consider equipments as an important factor.
 • Certified Trainer

Null Hypothesis, H0: The number of respondents who consider certified trainer as an
important factor is equal to the number of respondents who do not consider certified trainer
as an important factor.

Alternate Hypothesis, H1: The number of respondents who consider certified trainer as an
important factor is greater than the number of respondents who do not consider certified
trainer as an important factor.

Test Value = 4 95% Confidence

Interval of the
Difference
T Df Sig.(2 Mean Lower Upper
Tailed) Differenc
e
Certified 2.168 66 .034 -.22 .02 .40
Trainer

Interpretation:

Here, t (calculated) = 2.168

Since t (calculated) > t (tabular), therefore, Null Hypothesis is rejected.

Hence, number of respondents who consider certified trainer as an important factor are
greater than the number of respondents who do not consider certified trainer as an important
facto

• Brand Name

Null Hypothesis, H0: The number of respondents who consider brand name as an important
factor is equal to the number of respondents who do not consider brand name as an important
factor.

Alternate Hypothesis, H1: The number of respondents who consider brand name as an
important factor is greater than the number of respondents who do not consider brand name
as an important factor.

Test Value = 4 95% Confidence

Interval of the
Difference
T Df Sig.(2 Mean Lower Upper
 Tailed) Differenc
e
Brand -5.489 66 .000 -.78 -.85 -.40
Name

Interpretation:

Here, t (calculated) = -5.489

Since t (calculated) < t (tabulated), therefore, Null Hypothesis is accepted.

Hence, number of respondents who consider brand name as an important factor is equal to
the number of respondents who do not consider brand name as an important factor. In other
words, respondents are indifferent to brand name.

• Facilities Provided (Spa, Steam Bath, Air conditioning, etc.)

Null Hypothesis, H0: The number of respondents who consider facilities provided as an
important factor is equal to the number of respondents who do not consider facilities
provided as an important factor.

Alternate Hypothesis, H1: The number of respondents who consider facilities provided as
an important factor is greater than the number of respondents who do not consider facilities
provided as an important factor.

Test Value = 4 95% Confidence

Interval of the
Difference
T Df Sig.(2 Mean Lower Upper
Tailed) Differenc
e
Facilities -2.672 66 .009 -.77 -.57 -.08
Provided

Interpretation:

Here, t (calculated) = -2.672

Since t (calculated) < t (tabulated), therefore, Null Hypothesis is accepted.

Hence, number of respondents who consider facilities provided as an important factor is

equal to the number of respondents who do not consider facilities provided as an important
factor. In other words, respondents are indifferent to facilities provided.

• Flexible Timing

Null Hypothesis, H0: The number of respondents who consider flexible timing provided as
an important factor is equal to the number of respondents who do not consider flexible timing
as an important factor.

Alternate Hypothesis, H1: The number of respondents who consider flexible timing as an
important factor is greater than the number of respondents who do not consider flexible
timing as an important factor.

Test Value = 4 95% Confidence

Interval of the
Difference
T Df Sig.(2 Mean Lower Upper
Tailed) Differenc
e
Flexible Timing -.270 66 .788 -.44 -.25 .19

Interpretation:

Here, t (calculated) = -.270

Since t (calculated) < t (tabular), therefore, Null Hypothesis is accepted.

Hence, number of respondents who consider flexible timing as an important factor is equal to
the number of respondents who do not consider flexible timing as an important factor. In
other words, respondents are indifferent to flexible timing.
 • Ambiance

Null Hypothesis, H0: The number of respondents who consider ambiance provided as an
important factor is equal to the number of respondents who do not consider ambiance as an
important factor.

Alternate Hypothesis, H1: The number of respondents who consider ambiance as an

important factor is greater than the number of respondents who do not consider ambiance as
an important factor.

Test Value = 4 95% Confidence

Interval of the
Difference
T Df Sig.(2 Mean Lower Upper
Tailed) Differenc
e
Ambiance -.552 66 .583 -.30 -.28 .16

Interpretation:

Here, t (calculated) = -.552

Since t (calculated) < t (tabulated), therefore, Null Hypothesis is accepted.

Hence, number of respondents who consider ambiance as an important factor is equal to the
number of respondents who do not consider ambiance as an important factor. In other words,
respondents are indifferent to ambiance.

Value Given to Fitness services (in terms of willingness to pay)

Interpretation:

Some people give high value to such services and are ready to spend more than Rs. 2000 per
month where as others are willing to spend not more than Rs. 1000 per month.

It can be seen that approximately 93% of people who are members or have been the members
of Gold’s Gym are willing to spend more than Rs. 2000 per month to avail fitness services.
On the contrary approximately 89% of the people who have never joined Gold’s Gym are
willing to spend less than Rs. 2000 per month for a gym.
Customer Perception
Current Members Never Joined Gold's
Perception compared to other gyms & Past Members Gym
Value for Money 3.65 3.25
Membership Schemes 3.45 2.95
Equipments 4.5 3.8
Trainer or Instructor 3.9 3.5
Facilities Provided (Spa, Steam Bath, etc.) 3.75 3.65
Flexible Timing 3.7 3.55
Ambiance 4.1 3.75
Floor Area Available 4 3.6

Interpretation:

There is a difference between the perception of non members and members of Gold’s Gym in
all the attributes of Gold’s Gym. This difference is very high in case of membership schemes,
equipments especially. Overall, members have a better perception of Gold’s Gym facilities
than non members which is indicative of the fact that being a member of Gold’s Gym and
experiencing the services at Gold’s Gym helps in the formation of a much better perception
of the gym. This implies superior service standards met by Gold’s Gym.

Satisfaction Level of the Members:

Interpretation:

Gold’s Gym is successful in satisfying most of the attributes a customer expects in a gym.
The average level of satisfaction of the members is above 3.5 on a scale of 5 for almost all
the facilities it provides. The maximum satisfaction is derived from the quality of equipment
provided, the degree of responsiveness from instructors/trainers and from the ambiance of the
gym as a whole. The Gym can however work to improve the responsiveness of the support
staff a little as the level of satisfaction from them is the lowest.

Average Satisfaction Level on Progress towards Desired Goal

Average
Tenure satisfaction
level
Less than 1 year 3.77
 1-2 years 4.07
2-3 years 4.11
Greater than 3 years 4.20
Overall 4.00
Interpretation:

It is seen that the customers of Gold’s Gym are highly satisfied with the level of progress
towards their goals as the average level of satisfaction is 4 on a scale of 5. The average
satisfaction level is above 4 for the members who have been in the gym for more than 1 year.
However for members whose tenure is less than 1 year, it is 3.77 which is probably due to the
fact that they need more time to get favourable results.

Members willing to upgrade their membership in Gold’s Gym

Interpretation:

Out of the 38 current members covered in our survey 87% of the members want to continue
with Gold’s Gym and upgrade their membership level in the gym. This indicates the high
satisfaction level of most of the members of the gym and helps the gym to retain its members
easily.

Customer Loyalty

Interpretation:

In the Indian Fitness Industry Gold’s Gym has positioned itself as a premium service
provider with high quality equipments, certified trainers, etc. There are many other gyms in
the NCR region that provide similar kind of services, but still Gold’s gym have been able to
retain about 70% of their customers for more than a year which shows their loyalty towards
the gym.
 Average
Recommendation to Friends/Relatives: Score(on a scale
of 1-5)
I am currently a member of Gold's Gym 4.08
I never joined Gold's Gym 3
I want to join Gold's Gym 3.75
I was a member of Gold's Gym but not a member
4
currently
Overall Average 3.70

The average score for the likelihood of recommending Gold’s Gym to friends and family for
the entire sample was 3.70 out of 5, which shows that the perception of gym members for
Gold’s Gym is satisfactory. All the people who are or were the member of Gold’s gym have a
high likelihood of recommending the gym to others which shows their loyalty and high
satisfaction level.

Competitive Analysis:
As already concluded, Gold’s Gym is a leading player in the fitness market. The major
players who pose a challenge are Talwalkars and Fitness First who cater to similar
customer segment.

SWOT Analysis
Strengths

• World class standardised equipment in all its branches, is the major strength of Gold’s
Gym.
• It is supported with certified trainers which specialise according to area of focus or the
specific needs of the clientele.
• Service portfolio extends from the regular services provided by fitness centre providers
to extra services focussing on the overall wellness of the individual like spa, sauna,
steam, massage, yoga etc.
• Ancillary services include juice bar, separate counters for protein shake etc.
• In Delhi NCR, Gold’s gym chain has wider area coverage i.e. more number of branches
as compared to its competitors.
• Minimum floor area of 7000 sq feet.

Weakness

• The price range of services offered by the gym is higher than its competitors
• This higher price range restricts the clientele to upper middle class and thus, indirectly
restricts target market.

Opportunities

• The fitness industry is growing at a fast pace and is expected to grow further providing a
lot of growth opportunities to these service providers.
• High incidence of diseases coupled with more and more people growing health
conscious.
• Increase in affordability and spend in this sector.

Threats

• High customer churn

• Immense competition from local service providers

LEARNING
This project helped us understand the perception of people about the organization, the service
standards and the efforts made by the organization that lead to the achievement of such high
standards. Apart from the strengths mentioned earlier the other reasons for such high service
standards can be attributed to:

• Internal Marketing: The employees of Gold’s Gym are hired by the franchisee but
all the employees including support staff need to go through 1 month standard
training procedures conducted by the organization. This ensures the delivery of
standardized services where every small detail is given due attention.

• Interactive Marketing: The training provided to all the employees and support staff
affects the way they interact with the customers which is the most critical aspect of
service delivery. Each and every member is given due attention on a regular basis by
the employees so that their progress can be monitored effectively. This adds to the
“feel good factor” of the customers. The responsiveness of the employees can be
judged from one instance as mentioned by a customer:
“I was delighted to see the immediate response of the medical staff of Gold’s
Gym when I sprained my ankle while using a treadmill.”
The empathy level of the Gold’s Gym staff is also commendable as they celebrate
special events like birthday, anniversary of the premium customers by offering them
free services on that day. A customer states:
“I was overwhelmed when I was greeted by all the staff members and also
received a free spa on my anniversary.”
RECOMMENDATION
• The facilities provided at different branches in NCR region should be standardized so
as to meet the expectations of customers who shift from one branch to other. This will
reduce the customer gap which arises due to the difference between the expected
service and perceived service which is due to the difference in service levels in terms
of facilities provided in different branches.

• Gold’s Gym specifies a particular dress code, i.e. track pants and T-shirt, for its
members. Most of the Indian women are not comfortable working out in the presence
of male members especially in track pant and T-shirt. Hence, a separate time slot of
approximately 2 hours should be provided for the women members exclusively.

• Gold’s Gym should use television advertisements as a medium of promotion more

frequently in addition to the print ads in newspapers, internet ads. Advertisements
showing the Equipments, Ambiance, Spa, wash rooms and other facilities will
provide better exposure to the people about the facilities at Gold’ Gym and create a
good image about the gym in the minds of the customer.