Marketing Plan for Snap Fitness Essay

Executive SummaryWith todays society stressing a great demand for flexibility, and ease of angleler to goods and services, a trend has emerged for extended profession hours for service organizations. One of the main profiteers of this trend is lyceum franchises. With over 1 billion sight in the global population organism overweight, and the wind slightness present economic uncertainty leading to longer working hours for closely people, there is a demand for less rigid opening and gag law hours of middle schools. Consequently, the boom of the 24 hour lycee came or so.3Cs AnalysisThe next section contains an analysis of the comp both, node and contentions of fling seaworthiness. Analysis of the Comp whatsoeverThe play fitness franchise has be be intimate a global leader within the budget health club industry since starting in 2003. It has since established a large guest human foot of over 1 integrity thousand million fellow members in over 2000 clubs worldwide and 100 clubs finishedout Australia (Sloan, 2014). stop somatic fitness provides a 24/7 service with limited catered contact hours ranging from 30 to 40 hours per week, and utilises a no-contract retribution system. Additional services intromit heights quality targeted fitness classes, nutritional consultation and gateway to accredited individual(prenominal) Trainers. kidnapping seaworthiness was ranked by Entrepreneur clip as No.1 Best in Category for fitness franchises in 2009. As well, Inc. Magazine at No. 16 on its annual Inc 500 which is a list ranked by Inc Magazine of privately owned businesses. ( sally fittingness, 2014)client AnalysisA lyceumnasium derriere essentially recruit any type of individual bear oned in fitness to sign up beca put on of the variety of services get throughered, much(prenominal) as weights, badgerio machines, multitude fitness sessions, dietitians etc.. This world said, 60-70% of fracture physical fitness customers in Austr alia atomic number 18 already experienced gym users who just want to get in and get started upon connector (Australian Leisure, 2010). This leaves slightly 30-40% of members to be inexperienced gym usersthat entrust require help acquiring started, whether this is by group fitness sessions or personal training sessions. Snaps Fitness arrive aters low prices and the gyms are open 24/7 meaning capability Snap Fitness members are seeking convenience rather than quality. Snap Fitness doesnt have facilities such as saunas and pools etc. that different(a) gyms such as Fitness First regularly feature and the size of these gyms are smaller in comparison to other big gyms such as Goodlife, and Genesis.This means that Snap Fitness give generally drag people who work out recreationally a few seasons a week as opposed to a bodybuilder who is training for competitions and would put on from these additional services. In Australia 13% of the total adult population get in in fitnes s activities. Within this segment the nigh significant demographic is the age group bracket is 15 to 34 years in both the female and male segments and females aged 34 to 54 years. boilersuit there is greater female (16% of the population) participation then male (9.4% of the population) across all age brackets (Australian Bureau, 2009).Analysis of the CompetitorWith the food market for gym-goers being so extensive, there constitutes steep competition between gyms for patrons. One such competitor of Snap Fitness is Jetts gym. A social status with Jetts is slightly more pricy than Snap, costing $13.95 per week, with an additional joining fee of $89 and $59 for an admittance card. Jetts also despatcher an advance 12 month membership, costing $549, paid in mavin lump sum at the condemnation of joining. Jetts offers its members 24/7 overture to all of its 200+ clubs in Australia with the use of the filch card, delivering a high level of convenience for its members (see fig ure 1.2). However with Jetts, as opposed to Snap Fitness, once the card is registered in the certificate system, no further registration is required to gain entry to multiple clubs the card is usable immediately, creating convenience for its members. (Jetts, 2014) However, unlike Snap Fitness, Jetts has no member benefits to sell outlets or other service centres. Jetts has received a Canstar award devil years racetrack. For the years of 2012 and 2013, Jetts was voted as the No.1 gym chain in Australia for customer satisfaction. (Jetts, 2014)Another similarly competitive gym is Stepz. As well as operating 24/7, Stepz is entirely Australia owned, with clubs only within Australia. While this, to virtually people, would be a selling point, italso poses a terror to Stepz whereby is creates less convenience for its patrons by having fewer clubs members can attend (see figure 1.2). (Stepz, 2014) A Stepz Memberships costs $13 a week, with a one-off joining fee of $89, payable upfron t and an access card fee of $55, with which the member has access to any Stepz club Australia-wide. (Stepz, 2014) As too with Jetts, Stepz has no membership perks for gym members that exist outside the gym, i.e., retail force outs, etc. Stepz employs a tactic whereby the number of members allowed to enrol in each club is limited. This is done to provide the members with a more personalized service, and the staff can cater to the members needs more specifically. Also, by limiting the number of patrons, it ensures that there will rarely be a wait period to use gym equipment. (Stepz, 2014)In todays market, there exist other types of rival services in the gym racket. Not gyms that offer round-the-clock service, rather gyms that cater specifically to the oddment needs of their patrons gyms such as Curves. Curves is a peculiarly designed gym cater explicitly to the needs of women. Founded in 1992 in Texas, today Curves has clubs in over 70 countries, with over 300 clubs in Australi a alone. Curves is the largest company being analysed in this competitor analysis (see figure 1.2).Memberships at Curves cost $18.24 a week, with a $149 joining fee. By far out of Snap, Jetts and Stepz Curves is the to the highest degree expensive gym (see figure 1.1). However, Curves, unlike the others, has tailor- look at programs targeted directly at women, for women, by women. This creates a community among the club members and enables the staff and trainers of Curves to have a competitive edge in the service industry, offering a one-of-a-kind service catering only to the needs of women. (Curves, 2014) Gyms such as Curves and Contours (another gym aimed specifically at the needs of women) has created a whole crude market segment, which poses a threat to existing generic gyms, and even those that are 24 hours. Gyms that are specially designed for women may take business away from other gyms such as Snap, as a result of such gyms not exhibiting greater dedication or focus to i ndividual needs of groups in the market segment (ie. Female gym-goers).Analysis of the 4PsProductMembership entitles the user access to all the gym equipment (includingcardio and weights), group example sessions and, one initial free PT introduction session with a qualified teacher including a weight and measure, guidance while using machines and an initial workout plan. Optional membership add-ons include PT sessions, consults with a qualified dietician and 8 week altercates.PriceSingle membership, joint membership and family memberships are obtainable. The price for single membership is $25 a fortnight this currently includes group workout sessions and access to all types of training equipment. Joint and family memberships are generally charged at a discounted rate such as $17 each a fortnight for a family membership consisting of a husband and wife. A membership with Snap is not a lock-in contract, and in addition to the fortnightly fee there is a one-off joining fee of $99, paid upfront and a further $29 for the Snap access card.PlaceA typical location for a Snap Fitness outlet is a high profile business strip or mall, with cafes, small convenience stores and a post office. Locations normally have access to close parking and provide a well lit out(prenominal) to ensure the safety of clients using the premise during irregular hours. Currently the most successful Snap Fitness business is located in Milton and by location analysis it was found that Snap Fitness Strathpine also possesses umpteen of these important location characteristics (Australian Leisure, 2010).PromotionSnap Fitness promotes itself as a convenient (open 24/7 and membership grants access to any Snap Fitness location) and budget gym with a focus on physical wellbeing of young adults. Snap Fitness often has one center of attention promotion consisting of a limited, one time offer of free joining and 1 week free gym access. If this offer is not running potential difference members do still get a free one day ravel. Snap Fitness also have offers for current gym members such as refer a friend and get a month free. A consistent message present by dint ofout promotional material is that there are no membership contracts. This means that if a member wants to leave it is a simple fulfill and will be no cancellation fee.With a gym membership to Snap Fitness Strathpine, the member receives perks from organizations affiliated with Snap Strathpine. These benefits include a buy one, get one free scheme at the Strathpine Hyperbowl bowling alley, a 10% discount at Mega Choice and Mega Party variety stores, lunch deals at remote Jacks Bar & Grill, and more. (Snap Fitness, 2014)Analysis of guest Service Strategies (People/Processes)Quality customer service is key to an organisations survival in todays market. For gym owners, the revenue source is in direct proportion to the membership base i.e., if gym owners arent able to get people through the door, their acquire will plummet. In order to ensure a gym maintains a competitive edge in the fitness industry, it is essential to provide a consistent level of high quality customer service. This plays a significant role in member acquisition and retention. It is imperative that the quality of customer service is always top priority, to ensure repeat customers and positive word-of-mouth. (Fagan, 2013)A recent study has shown that customer referrals is the main reason why new customers hear about a business, or come into the business with 30% of people stating a current member referred them. (Lewis, 2014) Snap Fitness offers a variety of customer services, such as being open 24 hours having friendly, qualified staff efficient handling of complaints strong community front line through accessible initiatives and business partnerships no lock-in contracts 24 hour security surveillance member benefits (i.e., retail discounts) and having innovative facilities to ensure convenience and hassock for members, such as having access to treadmills, cross trainers, rowing machines, free weights, waste and change rooms, bathroom amenities, stretching areas and group fitness rooms. (Snap, 2014)Snaps main customer service strategies are promotions with neighbouring establishments, corporate tie ups, and social media facets. In March of this year, Peter Taunton, CEO of Snap Fitness, launched an initiative to concord with National Public Health Week in the US. With word compulsive by the force of social media outlets, Snap Fitness, starting April 7, was offering septenary days of free workouts, with no further obligations to Snap. This complimentary week was offered in support of public health and to get people motivated, and get potential members throughthe door. (Taunton, 2014) With a strong presence within the community through ongoing social initiatives and partnerships with neighbouring establishments and other corporations, Snap fitness consolidates its standing as a people-friendly gym with a community-orientated outlook, making itself as attractive as possible for potential members.Analysis of the Service EnvironmentOne of the most significant problems Snap Fitness faces is during peak training multiplication when the facilities are prone to becoming overcrowded (more demand than supply of equipment). Gym users dislike this in general because of waiting times for machines and weights, and as a result some will completely avoid these peak times favouring a more recluse training environment. This is a difficult issue to resolve as Snap Fitness always wants more members, but at the same time if too many members are at the gym at a certain time members can become unsatisfied. Another issue with Snap Fitness is their process of making the entry cards inactive. It was found through a sentiment analysis (appendices) identified card denial as a significant area of dissatisfaction amongst users as often they have to come back during man hours to resolve the problem. Thi s problem stems from direct debits not elucidation and is made worse by the fact that clients arent notified when this occurs (appendices blueprint).Members of Snap Fitness have had to travel to the gym and be denied access, before realizing their card has been made inactive. A minor issue Snap Fitness faces is that its front prognosticate is not always manned even during staffed hours. There are windows of time when all personal trainers who are in the gym are on the floor with clients, this could be for many reasons including assisting with a workout or concern to the facility. During this time if someone calls the gym or comes in to enquire about joining there may be no one available to meet these requests. This can lead to missed opportunities in gaining new clients, and a reputation for bad customer service.RecommendationsIn relation to the issue of equipment use during a session, one of the most viable solutions is to implement peak and off peak membership options. The way this would work is for people who choose to go to the gym during peak times would pay the rates currently being offered and would be able to alsogo to the gym in off peak times. The members who purchase off peak membership are allowed access to the gyms at off peak hours for a discounted membership price. These members have the woof to attend during peak times when they swipe their card to enter the gym, except a small fee will be charged to their fortnightly bill enabling the membership to be flexible. It is worth noting that Snap Fitness aims to be a cheapjack, convenient gym, so without the option of expanding and adding more equipment, this is one of the best ways to encourage members to train at different times and prevent an overcrowded gym.The issue of card access can easily be solved through a change in the communication process meaning gym members should be informed if their salary doesnt decease prior to the card being deactivated. This could be done by an automatize text message or a phone call from a staff member at the gym. When a payment is declined Snap Fitness members should be given time (48 hours would be appropriate) to resolve this issue and make the payment. If a member still fails to make the payment after this 48 hour window they should then be informed that their card will no longer permit access to the gym until a payment is made. This will ensure members are always informed of when their payments dont clear and if a member is unable to make this payment they can then contact Snap Fitness and work out a different payment method. A way for the manned counter be solved is having very clearly defined hours designated to man the desk (clear signage of hours at the patronize front and on all advertisement material including pamphlets).During this time there would always be someone answer phone calls and talk to people who physically enter the gym to respond to questions about joining. This way its clear when it is appropriate to ente r the gym to ask questions in person and when the best time to call up would be. Phone messages should be unploughed track of and returned during these staffed desk hours to ensure all customer enquiries are being answered in a timely manner. From the evaluation conducted the recommendation with the most benefit would be introducing a distinction between on and off peak membership. This dodging could attract a lot of new members because people who train at off peak times at other gyms would see how cheap this option is and consider transferring.People already signed up to Snap Fitness could also beinterested in cheaper memberships and could change their workout times from on peak to off peak, which would reduce some of the hole in the gym. This would then help to reduce overcrowded gyms during peak times, which would then join on the enjoyment of on peak members because they would have less waiting time for equipment. Currently the gym is often close to empty at off peak times an d having this extra influx of people there at these odd hours is extra money Snap Fitness could capitalize on with its 24/7 system.AppendicesAppendices 1Price positioning map broad(prenominal) PriceCurvesSnap FitnessJettsStepzLow PriceAppendices 2 size of it positioning mapLarge in sizeCurvesSnapJettsStepz trivial in sizeSmall in sizeAppendices 3 mill AnalysisSWOT AnalysisStrengthsWeaknessLarge established client baseKnown brand nameCustomised workoutsWell trained staff/ PTsOpen 24/7Can go to any Snap Fitness centreNo contracts monthly payment planYoga & fitness classesRange of machine types7 day trial periodAccredited dieticianLockers to secure valuables8 week challenge programs club bondingLimited staff resources not always mannedWaiting times for equipment in peak timesSmaller gym less equipment, space and more demand on staffOpportunitiesThreats potentiality partnerships/ sponsors currently have some with local businesses (e.g. cafe discount) New membership types e.g. based on consumption times/typesPaying for one group class without buying a membershipAdditional services e.g. locomote room, juice barNew health trends types of classes offered e.g. ZumbaCommunity orientation magnify existing complexesDiscounts for localsWidespread competition such as home gyms and other similar companies such as Jetts Unmotivated staffDecreased interest in fitnessBeing a small, budget gym expanding upon opportunities could deter clients as they prefer a smaller business accepted Service BlueprintWithin this blueprint several key bottlenecks were identified, these include contacting the gymBooking into sessionsEquipment usageUpdated Service BlueprintReference tendencyAbout Us Overview. (2014). Retrieved quaternary May, 2014, from http//www.curves.com.au/about-curves/ About Us. (2014). Retrieved 1st May, 2014, from http//www.snapfitness.com.au/about-us/ About Us. (2014). Retrieved 4th May, 2014, from http//stepzfitness.com.au/about-us/ Australian Bureau of Statistic s. (2009). Feature article 2 health and fitness centres and gymnasia (no. 4156.0.55.001). Canberra, Australia. Australian Leisure Snap Fitness Plans for 200 Clubs. (2010). Retrieved from Current Levels of Customer Satisfaction at a CrossFit Gym. Digital Commons USU. Retrieved from http//digitalcommons.usu.edu/cgi/viewcontent.cgi?article=1241& scene=gradreports Curves Community. (2014). Retrieved 4th May, 2014, from http//www.curves.com.au/community/ Fagan, L. (2013, October 4). What is gym customer service? Retrieved from http//blog.gyminsight.com/2013/10/what-is-gym-customer-service/ http//global.factiva.com.libraryproxy.griffith.edu.au/redir/default.aspx?P=sa&an=NLJ0000020140217ea2h0000q&cat=a&ep=ASEhttp//www.ausleisure.com.au/news/snap-fitness-plans-for-200-clubs Lewis, S. (2013). An Online Customer Service Survey to envision Memberships. (2014). Retrieved 4th May, 2014, from http//stepzfitness.com.au/memberships/ Prices. (2014). Retrieved 3rd May, 2014, from http//www.jetts.co m.au/prices Public Health Week. Retrieved from