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Table of Contents

Summary .......................................................................................................................

Introduction ...................................................................................................................

2. Marketing

3. Marketing

3.1 PESTLE Analysis...................................................................................................................


3.2 Five Force of

Competition:............................................................................................................ 7
4. Internal


6. Segmentation, Targeting,


...................... 16

Executive Summary

The purpose of this report is to conduct Market Audit of Golds Gym. In the current
environment it is very important for organizations to identify their position in the market, capture
opportunities and overcome their weaknesses. In this report, the market philosophy, market
environment and other important aspects crucial for determining the position of an organization
were considered. The report provides a detailed analysis for the organization to identify the
different opportunities and achieve the changes and stand out in the tough competition. The data
to conduct to the market audit of Golds Gym was collected through primary and secondary
research. An interview was conducted with the Sales Manager of Golds Gym Ibn Battuta
branch, Mr. Ramon Resurrection Jr., to determine the different issues faced by this particular
branch. The supporting data for this audit was collected from online databases, covering articles
and website related to the organization being researched.

1. Introduction

Golds Gym was launched in 1965 in the State of California (United States of America)
in which homemade equipment created by Joe Gold was used. Joe, irrespective of having very
less amount of money, had big dreams to provide the opportunities to the different body builder.
He was also attracted by sports and fitness. Due to his passion, he was able to attain an
international fame through a movie Pumping Iron featuring Arnold Schwarzenegger and Lou
Ferrigno. After recognizing the needs of fitness, the franchise program for Golds Gym was
created. In different cities, Golds franchise branches were opened (Goldsgym.ae, 2016)
In UAE, Golds Gym is considered as a reputable gym operating in 21 locations. It has its
branches spread out in 30 countries, and over 600 location globally. Ibn Battuta Golds Gym
opened its doors for the people of United Arab Emirates. The facility is located on 20,000 sq. ft.
of area, in which personal training, robotic parking and special classes are offered. The Gym has
300 club members. Golds Gym succeeded to develop more than 22 different clubs in 14
different locations by 2014. The company is also planning to expand its business in GCC and
open more than 10 clubs to provide gym facility to different countries such as Oman, Qatar,
Bahrain and Kuwait (Al Ahli Holding Group, 2015). The Ibn Battuta branch of Golds Gym
offers world class facilities and a developed platform for individuals to realize their fitness
dreams. (Goldsgym.ae, 2016)

2. Marketing Philosophy

Marketing philosophy assures that the objectives set by the organization could be attained
while ensuring customer satisfaction. In todays competitive environment, the success of the
organization lies on the satisfaction of the customers. Hence it is essential that organizations
make sure that they meet the needs of their customers (Huang and Sarigll, 2012).
The UAE market is considered as the emerging market wherein the people are provided with a
wide range of choice, from international brands to luxury products, which they can select as per
their need and requirement (Lovelock, Patterson, and Wirtz, 2014). Golds Gym in UAE can be

seen as a beneficial opportunity for the brand in its effort to attain success similar to its local
branches in California which received global success. The brand is aiming to differentiate itself
using the non-cookie cutter approach aimed to provide each facility with unique characteristics,
depending on the area of the club and the lifestyle of its members. With this creation of
differentiation, the brand aims to pursue for excellence and by the year 2020 which is also the
year of Dubai Expo to be held, it aims to build a strong position in the market.
In UAE, it is common to find people visiting local gym facilities that are in abundance, however,
the point to note here is the lack of dedicated and trained facilities. Despite of the high existence
of local gym facilities, Golds Gym is seeking to attract customers by providing a wide range of
fitness equipment and support services current not found in the local facilities. Another factor
they are targeting is the provision of more room (Space), better gym environment, different
exercises and professional expert supervision with consultation from its fitness trainers.
It has been seen that there are a number of health clubs that are established in UAE, and the
number is increasing. This can be associated with the fact that people in UAE are health oriented
and look for balance their lifestyle by taking gym membership and working out. They find this
was easier as compared to changing their lifestyle completely, while achieving their health goals
such as weight loss, bodybuilding, or others. The Gold's Gym in Ibn Battuta gate has targeted
and applied the above concept by providing the people (in and around Ibn Battuta) a place to
work out under professional direction, with the right equipment and with a dedicated trainer. This
is clearly evident from the increase in members of the gym from 195 to 300 since 2014
(Goldsgym.ae, 2016).
The philosophy behind the reason why people join a gym has indicated that people join for a
particular season, a goal to meet and this may extend to a particular period or for the whole life.
There are short term and long term reasons. Short term reasons that make people to join the gym
include marriage, special occasions, or sports preparation. On the other hand, long term reasons
include the aim to adopt a healthy lifestyle and to be healthy by working out, throughout their
whole life. Also it is seen that people take positive as well as negative effects results seriously. If
a person has been training consistently and is not achieving their personal aim, they do not want
to give up and continue. Alternatively, they may become disappointed, and quit. However, people

who aim to have a healthy life, they do not quit the gym until or unless they have a concrete
reason of leaving their gym practice (Al Ahli Holding Group, 2015).
Golds Gym Ibn Battuta has been able to understand the requirement of the residents and have
developed a concept that they need. They have developed a platform that can keep the gym and
exercise enthusiasts motivated to work out, and this is the key driving force that is leading to
their growth. The brand has also taken different steps to promote its image; being known for the
place where the celebrities train themselves such as Jessica Alba and Jim Morrison, they attained
a good position among the people.

3. Marketing Environment

Various studies have indicated that accessibility and location are the most vital factors
that individuals consider while selecting a fitness centre. For buying the membership of the
fitness centre, time, dedication and financial commitment both play a very important role. In
order to promote their centres, it has been seen that the different fitness centers or the gym
provide attractive discount membership offers with host of health and fitness related benefits.

Fitness industry has grown in leaps and bounds due to the splurging demand of the consumers.
This demand is based on the demographics and culture of the population where young adults,
adults and middle aged individuals feel the need to follow a fitness regime due to better
awareness regarding health and wellness. The target market of the fitness industry are individuals
between the ages 15 to 49. These individuals are conscious about their looks, and hence want to
maintain a healthy fitness routine. Another noticeable trend is the increasing awareness about
health and wellness that augmented the demand for the different fitness centers. In Dubai, people
are shifting towards the healthy lifestyle where they are now more focused on adopting different
healthy activities such as weight-loss or detox programmes. It has been witnessed that most
people enrol themselves to various gyms in the month of January to pursue their New Year
resolution of losing weight or being fit during the course of the year. Additionally, the promotion
of different fitness activities and the awareness programs by the government could be a good
way of promotion for the gyms.

3.1 PESTLE Analysis


This covers the different taxes that are imposed by the government. It is been seen that the
businesses are required to adapt accordingly to the local political and legal conditions. There are
different health and safety rules and regulations are needed to be followed by Golds Gym to
reduce the chances of accidents and injuries. Also, it should abide by the local rules on culture
and society, and make sure that its staff or members do not violate the rules and the regulations.
The inflation rate of UAE could have its impacts on Golds Gym Ibn Battuta (Khaleej Times,
2016). The decline in the inflation rate indicates that the people would be getting the chance to
spend more. This means that they would be able to spend on the extra activities such as attaining
a gym membership for health benefits. The interest rates are seen to be declining due to which
people are seen to saving more and opportunities are created for the gyms.
The trend of a healthy lifestyle is seen to have increased considerably in UAE, which is clearly
evident by the growing awareness on eating habits, diet, local events, etc. Due to the awareness
provided from social media, Gold Gym can benefit as it is also focussed on aiding people in
maintaining a healthy life, and would be attaining advantage to people.
By attaining the advance gym equipment and making the effective use of technology, Golds
Gym could easily attract the residents in UAE. Customers like to work out in a gym that has
professional standards and trainers. The equipment clearly reflects the condition of the gym, and
makes a decision point in whether or not a person will join the gym or not. Also, given the
technological growth in UAE, Golds Gym can easily procure standard professional equipment
with low regulations, to meet its customer needs.
Caring about the environment and taking a sustainable step towards green living can help Golds
Gym Ibn Battuta. Today, people are becoming more aware of health habits and are trying to cut

down on any activity that affects the environment. By promoting its sustainable side, Golds
Gym can develop and attain a competitive advantage which will lead it to an increase in sales.
3.2 Five Force of Competition:
Porters five field of forces provide the understanding about the competitive environment.
New Entrants:
It could be said that the threat of the new entrants is high as the fitness industry is growing and it
would continue to grow. There are no dominating centers at present as barriers to enter the
market is low. The trend of the consumers suggest that people select the fitness centers by seeing
the location and the cost rather than the brand name. There are different factors that make the
industry attractive for new entrants. The only barrier that seems for the entry is the investment
that is required to establish a facility.
The bargaining power of the suppliers is low as there are plenty of suppliers in the market that
provide gym equipment. Every gym needs to equip itself with new equipment and adapt latest
gadgets and technologies. Hence, the suppliers are working towards developing customer
friendly and effective equipment to entice the fitness centres. To remain competitive in this
market, the suppliers are forced to keep the prices low. This makes the bargaining power of
suppliers low.
The bargaining power of the buyers is high in the fitness sector. In the case of Dubai, as most
people own their own vehicles, people dont mind travelling to a centre even if it is a bit far from
their place if they offer value for money services. Golds Gym provides the long-term
membership for the people so that the members could be retained. The low price provided to the
customers allow them the use the services and also to increase the customers. The high prices of
the gyms also make people to think about whether to join the gym or not.
The competition is tough and therefore the threat for the substitutes is high as people can opt for
other activities such as the outdoor sporting activities or yoga. Sporting activities like biking or

running are a cheaper option as compared to going to a gym. But activities also depend on the
conditions of the weather. The in-house exercise equipment is also a substitute and it is common
among the people having high income to buy the exercise machines and use them at their homes.
Another substitute in Dubai is the gym available for residents within their own residential
4. Internal marketing

Internal marketing is the task that is related to the hiring, motivation and the training of
the staff in the effective way to serve the customers. It is very important for a successful
organization to make an effective use of the different strategies to serve their customers
(Mitchell, 2012). The objective of internal marketing is to develop an internal environment due
to which the consciousness of the person is seen to be proliferating at every level. Internal
marketing plays a very important role as it is about motivating the internal functions that can
help in satisfying the customers. By developing the internal environment in the effective way, an
organization could create a strong value of its brand (Huang and Sarigll, 2012).
Golds Gym is seen to be caring about its employees. The COO Nitesh Seebran values his
employees and believes in empowering them through which they could easily attain the goals
and the objectives set by the management. In order to provide its employees with the sense of
being valued, they want to establish a mutual trust with the employees. The management respects
their employees, care for their needs and welcome the ideas suggested by the different employees
for the company. For instance, the Ibn Battuta branch conducts telephonic surveys and the
opinion polls from time to time to understand the issues faced by the employees and accordingly
take actions to resolve the issues.
5. SWOT Analysis

Strength: The first strength of Golds Gym Ibn Battuta is being an international company which
gives more value to its brand name and thus makes it easier for the people to subscribe to the
gym because they are already familiar with the name. Golds Gym is also well reputed for the
quality of their staff especially the instructors. Another strength is the flexibility in the

membership payment as well as the different possibility to manage the membership such us to
transfer it to another person or to freeze it, which allows adapting to the members needs.
Weaknesses: The parking facility is one of Golds gym biggest weaknesses, which can be a
significant element in choosing one gym over the other. Because parking facility for Glod Gym
is very limited it is easy for a client to go for a membership in Fitness First Ibn Battuta because
they can easily park their car without paying any additional fee.
Opportunity: There are many opportunities in the sport industry such us the technological
improvement and the health conscious new population which is very concerned about its
physical appearance and health. So going to the Gym is one of their number one priorities, which
increases the number of joiner of the Gym. Also, thanks to social media, training has become a
new trend and a must in ones daily life, where everyone is posting a picture of its favourite
Zumba class or weighting a dumbbell.
Threats: For Golds Gym Ibn Battuta Gate, the major threat is its rival Fitness First located just
few meters behind it. Offering similar or better service Fitness First has build a strong brand
image over the years. Another important threat is a high customers turnover rate. Many
individuals come to Dubai only for few years either for work or another reason. That is why it is
really difficult to keep a stable number of customers, which is an uncontrollable variable.
6. Segmentation, Positioning, Targeting
Segmentation, positioning, and targeting are three important and fundamental concepts in
marketing management, which help to deliver the right product to the right customer using
efficiently the resources and communication strategies (Wind, 1978). We will discuss these three
concepts and we will show how Golds Gym has applied them in its marketing strategies.
6.1 Segmentation
There is no company that can afford to offer its products and services to the whole population
because of the lack of resources and information. That is why it is important to select which
individuals from the population to serve in order to allocate the resources and the budget
efficiently. Segmentation refers to the process of Grouping together customers with similar
product preferences and buying behaviour, of which are similar among themselves and
different from the others (Venter, Wright, & Dibb 2015). Golds Gym Ibn Battuta has clearly


divided the market into distinctive segments. There are four common basis of segmentation that
are used, which are: Geographic, Demographic, Psychographic, and behavioural (Wind, 1978).
Geographic Segmentation
Geographic segmentation relates to the process of segmenting the population based on the
location. Examples of this segmentation can be by country, city, region, or neighbour. Golds
Gym, is using geography as a base to segment the market. It is an international company doing
business in different countries and cities across the world, and within one city the segments
differs because people living in one neighbour may not be from same social class or income level
as others. Thus, segmentation from geographic perspective is important for Golds Gym Ibn
Battuta strategy.
Demographic Segmentation
Demographic segmentation relates to choosing the clusters upon their age, race, ethnicity, and
religion. It is important to divide the population based on demographic criteria to deliver the
right service. For the sport industry the service provided to adults is very different from the one
provided to children. Religion is also significantly important. For instant, some Muslim women
cant take sport classes with men and use mix facilities. For the branch of Golds Gym in Ibn
Battuta it has a clearly segmented the market based on age and nationality.
Psychographic segmentation
Psychographic segmentation refers to the process of clustering the population to groups that
share similar values, attitudes, and lifestyles (Weinstein, 1994). For Golds Gym Ibn Battuta it
clearly uses psychographic to segment the market because it is important to have members
sharing the same values and life style as to create homogeneity and a pleasant atmosphere inside
the gym.
Behavioural segmentation
The perception of the benefits that one seeks from a product defines the behavioural
segmentation (Orth, 2004). Golds Gym is dividing the market into clusters based on their
perception of the benefits provided, the quality of the instructors, the facilities, importance and
other benefits that customers seek from a Gym.
6.2 Targeting


After dividing the market into these segments, which are homogeneous between themselves and
different from the others, we concluded that Golds Gym Ibn Battuta branch is targeting the
The target segments:

Geographically: since this branch is located in Ibn Battuta Jabal Ali, it is targeting the

people who live in this area and nearby which includes: Jumeirah Lakes Towers, Springs,
Discovery Gardens, Marina, and JBR.

Demographically: According to the sales managers the majority of the members are aged

between 26 and 40 years old. In addition to a small percentage of teenagers. 6O% of the
members are male and the remaining female. From the nationality perspective, this branch has a
significant segment of Indians, followed by Philippinos, then a small percentage of Arabs who
belong to the middle class.

Psychographic: The cluster targeted by Golds Gym are individuals who are conscious about

having a healthy lifestyle and they care a lot about about their physical appearance. They crave to
achieve self actualization even if it takes them long hours of intensive workout to become fit and
have a sculpted body.

Behavioural: The target segment seeks benefits form heading to the Gym and taking classes.

These members are concerned about the package of benefits that the Gym has to offer them as
well as the payment flexibility. The package provided by Golds Gym Ibn Batutta is different
from the one provided by other branches. For instance the swimming pool doesnt exist as well
as some Training classes.
6.3 Positioning
Brand positioning refers to a product having a distinct and clear position in the customers mind
different from the competition (Sinha, 2015). It defines what a brand stands for and what benefits
it provides. It is an important concept that differentiate two brands and determine the succuss of a
specific brand.


Golds Gym position itself as a Gym facility that offers to the customer a package of benefits
including quality machines and qualified instructors, to help its members achieve their fitness
goals and build up muscles. It is clear on customers mind that the focus is on shaping the body
and burning out these additional calories for a healthy lifestyle. Either using the machines
supervised by the instructors or taking part of a class, Golds Gyms promises to be a way to
achieve your goals at a lower price compared to its competitor Fitness First which is highly
positioned in terms of price.
7. Marketing Mix
Gold Gyms marketing mix is comprised of the following approaches to product,
place, promotion and pricing.
Product: According to the marketer E. Jerome McCarthy four Ps classification, a
product is an item that satisfies the customers demands, which can be a tangible
good or an intangible service. (McCarthy, Jerome E, 1964). The product of our
interest is the Golds Gym Ibn Battuta Gate that offers a wide range variety of
exercise training services ranging from fitness workouts with a fully equipped cardio
area to group exercises that varies from pumping high kicking workout such as Body
Combat, Body Pump, to a more relaxed calming balanced approach to well-being
group classes like Pilates, Yoga. This facility is also fitted out with a hard driving
indoor cycling studio. Always concerned about their members wellbeing, Golds
Gym provides personal and group training from their gym instructors.
Place: As service delivery cannot be transported or stored, it is essential that the
service product is located at the right place. (Juneja, 2016) Golds Gyms branch
chosen for our report is located in the 11th floor of Ibn Battuta Gate in the area of
Jabel Ali, which is easily accessible by the residents of Discovery Gardens and Jabel
Ali community. It is an extensive facility providing state of the art fitness equipment
and exercise machines. This mixed-use facility covers one of Dubais busiest areas
and serves a diverse multinational clientele of members, mainly from United
Kingdom, India and Philippines. According to Ali Al Samahi, Head of Ventures, Al Ahli
Group. Our strategy is to find a suitable location in Dubais most densely populated


urban areas, to make sure our audiences and members can find us easily. Once
theres a Golds Gym near your door, theres really no excuse to stop you from
starting a rewarding fitness journey. Golds Gym wants to promote the benefits of
health and fitness throughout the UAE.
Promotion: Promotion is the business of communicating with potential customers.
It represents the various aspect of marketing communication. In the case of Golds
Gyms, it has a strong communication mix for the Middle East as for them promotion
is essentially about finding the right mix of media helping them to reach a wider
audience, a concise target groups. In fact, they use multiple communication
channels including traditional communication channels, mainly focusing on digital
marketing, advertising has been done by Golds Gym through social media such as
Facebook, Instagram in order to increase awareness and create brand loyalty.
Campaigns such as the Golds Gym Alive took place last year in Dubai on Kite
Beach, in which over 500 participants performed various form of group exercise
such as Yoga, Volley Ball, Zumba free of charge in a public domain inspiring people
to have fitter lifestyle. Also, every month Gold Gyms prepares various type events
in order to target the right customers. Recently the Big B event took place (a four
hours event with different group classes such as Body Pump, Body Combat and
Body Attack); Open Day encouraging members to bring their friends, giving away
free Golds Gym T-shirts.
Price: Price defines the actual amount the end user is expected to pay for a
product. In other words, price is the amount the consumer must exchange to
receive the offering. (Singh, 2012). In fact, how the service or product is priced will
affect how it is sold. The brand image that Golds Gym has built in the Middle East
over the years is high compared to its competitors such as Target Gym, Fitness
Factory, MMA Fitness, and its price is slightly lower compared to its main competitor
Fitness First. According to Ramon, Golds Gym Ibn Battuta Sales Manager, Although
most members apply for the Annual Titanium Membership (2999 AED), Golds Gym
offers various memberships meeting different needs: Bronze Membership (3
months); Silver Membership (6 months); Gold Membership (Monthly). Each including
fully equipped membership facility, cardio area with state-of-the art entertainment


system, unlimited access to Golds Group Exercise (GCX), Free Parking, Wifi access
throughout the club, locker, showerMainly pricing depends on the facility that is
offered, as they have different kind of branches ranging from Club A (more
expensive) to B, C Golds Gym has an interesting pricing strategy offering special
discounts for Etihad Guest members, for instance.
People: People are a defining factor in a service delivery process, since a service
is inseparable from the person providing it. (Juneja, 2016). It is considered to be
the major focus when an company carries out a marketing strategy. (Dobrescu,
2012). Golds Gym employs around 3.5 million members worldwide. Customer
service training for the staff has become a top priority for the gym. In fact, only
qualified and experienced personal trainers and group exercise instructors are hired.
According to Ramon, Golds Gym Ibn Battuta Sales Manager, there are 4 instructors
(3 male and 1 female) full-time and freelancers providing group classes. Internal
Marketing in Gold Gyms is very strong as they provide internal events every month,
in which there is a club launch, where all the staff get to know what is the promotion
and the plan of the month in order to create awareness internally. What makes
Golds Gym stand a part is the healthy mix of different nationalities, their tag line is
Stronger together which refers to the variety of nationalities working together
through different platforms and it is what certainly what helped build a strong brand
offering the best fitness class in the industry.
Process: The process service delivery is essential as it ensures that the same
standards of quality service is constantly available and delivered to customers.
(Magrath,1986). Therefore, Golds Gym has this concern about how well they
sustain their offering. Combining diverse amenities while delivering the ultimate
fitness experience with the best personal training is part of the process. The service
offered, the reach they have in the market and the brand legacy makes what Golds
Gym is now. For instance, once you register to Gold Gyms Ibn Battuta, you are
gifted a free Golds Gym bag, when you give 10 contact numbers that might be
interested in joining the gym, you get a T-Shirt, members are regularly invited to
different kind of events via email, to attend the biggest Zumba Festival in Dubai


Physical Evidence: Since services are intangible in nature most service providers
strive to incorporate certain tangible elements into their offering to enhance
customer experience. (Juneja, 2016) In fact, Gold Gyms invest heavily in their
interior design and decoration to offer an unique experience to their members.
Every single detail is carefully thought out, from the layout to the branding. The
decor of the cardio area is clean, providing a relaxed ambiance, whereas its
entertaining indoor cycling studio is decorated with bright colors giving a vibrant
feel while maintaining a sense of fun associated with the brand. Motivational quotes
such as Know your own strength are all around the gyms wall creating a
supportive, energetic atmosphere to encourage their members committed to
achieving their goals.8.

8. Recommendations
The Golds Gym at Ibn Batuta needs to resort to a series of promotional activities to attract new
customers. In order to promote the brand more effectively, different activities that includes
promotion of various health and fitness related programmes. Also, the management could
provide attractive and feasible discounts to entice the customers. They should make the effective
use of social media to promote their services in UAE. The branch should launch its own
Facebook and Instagram accounts and spread awareness regarding this particular branch and its
activities. Various success stories of clients achieving their fitness goals through Ibn Battutas
Golds Gym will can be shared on these social media platforms. The management should also
liaise with their fitness trainers to influence clients and encourage word of mouth publicity that
can help create a good brand image and reputation for this branch of Golds Gym.

Recommendation :

Golds Gym would have to improve its Branding in the area. As Golds Gym
indications are not clear in the area of Ibn Battuta Gate.

Golds Gym should improve the visibility of the display of its Logo in the
entrance of the building.


Golds Gym Ibn Battuta Gate should improve its accessibility as the parkings
are limited.

Promote different group class more heavily. In fact, Golds Gym Ibn Battuta
took out Belly Dancing classes last month because of lack of sufficient members
interested in this particular group class.

Because of a slightly high instructors turnover rate and a high number of freelancers, it makes the internal
marketing quite difficult to implement. Golds Gym should have a higher number of permanent instructors in
order to enhance the communication between all the employees and staff to better serve the customer and
increase its satisfaction.

Golds Gym Ibn Battuta should also target a new segment, which is the kids by offering them suitable classes
ranging from dance to martial art.










Al Ahli Holding Group 2015. Golds Gym UAE wins international laurels. Al
Ahli Holding http://alahliholdinggroup.com/golds-gym-uae-wins-internationallaurels/
Golds Gym









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