How to run a successful fitness gym in Lincoln

Literature Review
I will collect and analyze the successful gyms business strategy (popular or upscale) , location
and the surrounding environment, management model, equipment selection, marketing tools,
publicity methods.
1. Exercise and fitness
Physical fitness is not only one of the most important keys to a healthy body, it is the basic of
dynamic and creative intellectual activity (John. F. Kenedy). The initial anatomy of people
reserves them to the right to move freely and our body requires movement for the muscles and
bones to thrive. From the beginning of our historically verified time, there has been mention of
sports. In the complete beginning movement was used for survival purposes, like hunting for
food, procreating and providing habitable space. As civilization set in sports started training and
pusing their body to potential to be the victor. Data from the distant past are not available, but it
is reasonable to spectaculate that early humans had considerably higher caloric expenditures per
unit of body weight than do modern individuals (Cooper, 2013)
As time progressed so did physical activity. Even in the industrial period, after the first steam
engine was developed and as agricultural ways had already been established with a society of
people who grew their own food, the average person still burned more calories than nowadays.
As the technological era kicked in, physical activity declined for the average person but as most
observers have stated there was an increase in recreational sports. Sports had reached a new
level of participation.
Training had become a real option for all classes and physical activity rates slowly began to rise
again towards the end of the 20th century. At this time, more people had the option to train to
become an athlete. This started including a package deal, having a personal trainer, eating a good
diet and creating a generally more socially acceptable image of health. Towards the end of the
20th century exercise became an image and a lifestyle. People from all backgrounds wanted to be
a part of this world. Therefore a niche developed for businesses. Personal training had now
become an all peoples game. Within the fitness world people were getting heavier and bulkier.
Introducing a new fashion and new take on body building. In the fashion industry models were
getting skinnier and fitter making the general public yearn for a similar physique. In this manner,
personal training was bound to follow.

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In the beginning of the 21st century healthy living had become a trend that every person wanted
to be a part of. As levels of obesity rose in the United States from the development of fast food
and energy saving devices, training and higher health standards followed.

2. Motivations
There are numerous work on gyms dealing with participants motivation to go to the gym
(Crossley, 2006; Dworkin, 2003; Dworkin & Wachs, 2009; Laverty & Wright, 2010; Stern, 2008;
Stewart, Smith, & Moroney, 2013). It is argued that one of the main motives is the desire to
achieve a certain physique that conforms to contemporary aesthetic ideals (e.g. Dworkin, 2003).
Crossley (2006) asserts, that for some participants the gym is an escape from everyday life where
people can turn off consciousness and submerse themselves in exercise (Crossley, 2006, p. 43).
Laverty and Wright (2010) assert that going to the gym may provide individuals with a
heightened sense of morality as going to the gym is in itself a demonstration of desire to be a
good citizen, to achieve and practice individual health responsibilities (Laverty & Wright, 2010,
p. 79).
2.1. Consumption
Family recreation needs and higher standards of living created growth in private fitness and
health clubs, though trends towards busier consumer lifestyles and the economic downturn now
mean that consumers seem less able to commit to regular fitness, sports and competitions
(Keynote, 2010). Respondents state that they do not have time to exercise, find it un-enjoyable,
and become intimidated and/or anxious (Mintel, 2009). As health and fitness is leisure time
based, lifestyle is an important factor. Whilst many indicate sport is important to them, lack of
time/energy or financial reasons inhibits consumption (Keynote, 2010). Negative attitudes seem
more prevalent than positive ones towards exercise.
2.2. Demand characteristics
Gym fitness classes are popular fitness activities (Keynote 2010), although Mintel (2009)
highlight walking and jogging as prevalent, high frequency and trending. Gym Fitness classes
help introduce a social element to classes and activities attracting between 6% and 11% of
consumers (Mintel, 2007). Regular users of health and gym fitness clubs use more involved
decision making as they perceive more risk (Campbell, 2013). Consumers exercise in a group or
on their own, but social bonding need is highly unpredictable in individuals (Vlachopoulos,

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2008) . Singular consumers expectations towards the levels of service offered by staff depend
upon their self-responsibility levels (Marandi & Harris, 2010).
2.3. Influential factors
Self-concepts influence the level of concern towards own weight, fitness levels as well as anxiety
associated with encountering other members, staff and equipment ((Marandi & Harris, 2010).
Psychological involvement in health and fitness influences levels of activity importance to the
individual, their level of interest and frequency of cognition (Woolf, 2008). Deeprooted
psychological preoccupations with gender or body consciousness/former health, mental or
emotional problems influence consumers interest and motivation and how health club empathy
is assessed (Marandi & Harris, 2010), in fact, psychological variables like perceived health status
may be better predictors of health behaviors than demographics (Wetzel, 1989). The image of a
fit body is increasingly a mark of social standing and for some segments the drive is to look good
rather than feel healthy (Dworkin & Wachs, 2009). Needs may depend upon racial, cultural and
religious factors. For example, true empathy with the needs of ethnic sub-groups can add greatly
to service value for those consumers, conversely for experienced users, the artifacts and
equipment are paramount (Marandi & Harris, 2010).
3. Consumer behaviour in gym fitness business
Consumer behavior (in consumer business context) is referred to as the study of when, why,how,
where and what people do or do not buy products. It blends elements from psychology,sociology,
social psychology, anthropology and economics. It attempts to understand the buyer decision
making process, both individually and in groups. It studies characteristics of
individualconsumers such as demographics and behavioral variables in an attempt to understand
people'swants. It also tries to assess influences on the consumer from groups such as family,
friends,reference groups, and society in general .Customer behavior study is based on consumer
buying behavior, with the customer playing the three distinct roles of user, payer and buyer.
Relationship marketing is an influential asset for customer behavior analysis as it has a
keeninterest in the re-discovery of the true meaning of marketing through the re-affirmation of
theimportance of the customer or buyer. A greater importance is also placed on consumer
retention,customer relationship management, personalization, customization and one-to-one
marketing.In Addiction our main motive was to study the consumer behavior of the clients in
respect todemographics. According to demography Kaushambi (Ghaziabad) is not high locality

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areawhere people can afford an annual gym worth 30000 thousands. So according to the area
theannual gym scheme was offered at 15000 which was quite reasonable according to the
localitywhereas in south extension branch the same scheme was offered at 45000 thousands
which people can afford easily.
Consumer behavior as 'the process and activities people engage in when searching for, selecting,
purchasing, using, evaluating, and disposing of products and services so as to satisfy their
needsand desires'.
As the new decade creeped in and the new century approached, a time has come to reflect
uponand predict the consumer's behavior in the marketplace. Many things have changed since
the endof mass marketing and the beginning of market segmentation.In the past females never
carved for gymnasiums, but which the changing environment femaleswant fitness programmes to
keep them fit.
Addiction according to the changing consumer behavior designed special female
fitnessprogrammes. Contrary to popular belief, weight and resistance training is very
importantfor women of all ages. Instructed properly under the tutelage of Addiction's trainers,
therisk of injury is mitigated to non-existent levels.
To address the other concern or inhibition as it may be appropriately described. Weight training
programs at Addiction are not designed to make you look like "masculine". Strength training
programs for women ensure well-balanced, injury free lifestyles for modern living.

4. Making a mark-branding the gym

If we think only big corporate names need to think about things like brand names, think again.
The brand says a lot about us and our business, and that's as true for a local gymnastics gym as
itis for a multi-national conglomerate. In this we look at how creating a strong brand for our
business can help us set ourselves apart and lay the right foundation for the growth of our
business. Our brand is more than just our business name or the logo on the newspaper ad. It is
our corporate identity. An effective brand tells people who you are, what you do and how you do
it,while at the same time establishing your relevance to your customers.Your brand is how your
business is perceived by customers. If your brand has a high perceivedvalue, you enjoy many
advantages over your competition, especially when it comes to pricing.Why do you think people

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are prepared to pay exorbitant money for brand items? Perceivedvalue; perceived value as a
result of very effective brand promotion resulting in high recognition.
As the Addiction logo reflects in its punch line Discover a new you in YOU. This suggeststhat
Addiction promises you the results and changes in your activities and stamina.The main reason
for creating our own brand is to differentiate ourselves from your competition.Gymnastics
programs can be located blocks apart from each other. You need to constantly belooking for ways
to set yourself apart from your competition. Our brand can do that for us.Another good reason
for creating our own brand is to make our marketing more effective andefficient. You don't have
to spend your time with a new client explaining who you are, what you do and how you do it.
Our brand can already communicate that for us. You can spend your timefocusing on students
rather than educating your customers about your business
.
Your brand needs to say who you are, what you do and how you do it. It needs to do all
thesethings at the same time as establishing your relevance to your prospective customers. It
isabsolutely essential as you build your own brand, that you have a firm grasp of who you are.A
good place to begin thinking about your mission is to put yourself in the shoes of your
customers. If you're in the market for a gymnastics club, what things are important to you?
Different people will be looking for different benefits but you can bet that they want their childto
be safe and well cared for. Cost is also likely to be high on the list as is the training they
willreceive. These things will be highly important to some and less important to others. So focus
onthe benefits that are likely to be highly relevant to the majority of your target market.
Your mission statement might read something like "Discover a new you in YOU That's a
prettygeneral statement and if you decide to focus on a particular niche of the gymnastics
market.When we created our brand, we kept the who, what and how firmly in mind but also use
the brand to establish our relevance to our target market and build credibility with that market.
5. Situational Analysis
To assess the strategies that the fitness business groups used to overcome threats and seize
opportunities, the following were used: PESTEL analysis (Political, Economic, Social,
Technology, Environmental & Legal factors), SWOT (Strengths, Weakness, Opportunities and
Threats) analysis, and Porters Five Forces. These analyses influence change and through change
individuals become happier as they live healthier lives. These analyses assist the researcher of

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gym fitness business to understand effective marketing strategies and their customers bargaining
power.
5.1. PESTEL Analysis
Choice ad preferences are common action among customers and it gives a variety of options
from which to choose. According to PESTEL (2012), the overall general idea of PESTEL
Analysis implies that the household preference level involved Marketing choices greatly
influences the preference of the Customer and the purchasing power; this makes it easy for the
customer to make decisions based on the marketing patterns (Rogers, 1999).
Political factors
Political outcomes influence the ownership level of investments and international trade relations
between countries, i.e. the UK and South Africa. Good political structures allow for the efficient
allocation of resources by households and firms without much government intervention. Such
structures do assist in dealing with market failure from an economic perspective (PESTEL,
2012). Politics can have an impact on the health of on peoples ability to join various gym clubs
such as the Brighton Health and Racquet Club and the Riverside Health and Racquet Club,
Chiswick.
Social factors
Social factors relate to aspects such as changes in family dynamics, lifestyles, demographics and
cultural changes (PESTEL, 2012). According to Armstrong and Kotler (2003), the social
strategies are based on the family systems and the status of an individual in a particular locality.
Members of the Gyms clubs would only desire to do some exercises depending on the cultural
practices and the taste preferences of that particular population. Demography influences the
marketing strategy of the Lincol Health and Gym Club; it is affected by the population
distribution and takes into account gender type, the prevalent age group and the occupation of
individuals (Lincol US, 2012).
Economic factors
Economic factors refer to interest rates, taxes, exchange rates and growth in the economy. All
these strongly influence the marketing strategies in Gym services (LincolUS, 2012). According
to Milberg (2004), various production systems are linked to international trade and the collapse
of one may result in the poor performance of other economic factors. Macroeconomics
stimulates the type of product and pricing-mix strategy that could be set for Gym Clubs

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(Scanning the Marketing Environment, 2011). Lincol Health and Racquet Clubs industry
managers can avoid this threat through capitalising on opportunities of international expansion
and the use of gym services that are readily available (Lincol ActiveUS, 2012).
Technological factors

The Lincol Gym Clubs group utilises TV and radio media when marketing its chocolate products
(Lincol ActiveUS, 2012). Thus, the gym services are threatened by innovative competition. The
fact that it is part of a mass-marketed corporation that is mature has influenced the marketing of
its brands (Kotler and Armstrong, 2004). Gym marketers have to find ways to keep the Gym
services competitive in the industry that is producing other modern, innovative services like
online training lessons and cheaper gyms.
Environmental factors
According to Gym ActiveUS, (2012), the Lincol Gym Clubs marketing environment bases its
customers distribution strategies on micro- and macro-environmental forces. The Gym Active
marketers keep up to date on good environmental practices through introducing recycling of
training machines, use of environmentally friendly machines and through employing greener
living schemes.
Legal factors
The introduction of age and disability discrimination legislation in US has changed the
legislation in health clubs. In the Gym Club, to correct the market outcome, new systems and
procedures have had to be developed to cater for all the population
Porters Five Forces
The elements involved in marketing are mainly the marketing dynamics and the type of
advertising mechanism employed; this impacts on the potential that a customer has in terms of
the market specifications and aspects of population distribution in terms of whether he/she can
easily be reached in a given locality.
Bargaining power of customers
Gym Club, whose customers have high bargaining power, are offered services that are slightly
different from services offered by other clubs. Lincol Gym Club discriminates between gold
customers and the less valuable customers (lead customers) (Doug 2008). The bargaining power

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within the health club market is extremely high due to the low switching options and due to the
presence of many online training options.
Pressure from substitute services
The substitute threat to Gym Active is not high because other training institutes are small and
offer little competition. The Lincol Gym Club has a medium substitute over the Riverside Health
and Racquet Club, Chiswick (Gym ActiveUS, 2012). According to Barrows (2009), critical
vulnerabilities of a competitive brand results in the better performance of the substitute brand.
Bargaining power of supplies

The Virgin Active Health Clubs group has a centralised system for purchasing supplies. The
supplies bargaining power is low; supplier bargaining power is inclined to be more effective for
smaller clubs rather than the larger health clubs. The Virgin Active Health Club groups
centralised department tends to have enough services to allow for core control and specialisation
in particular supplies and to target customers (Karjainen, 2009).
Threat of new entrants
The threat of new entrants into the health club market is low due to the health clubs huge capital
investments. Lincol Health and Racquet Clubs supply consolidation helps to avoid the market
imperfections and threats from various new entrants. Gym Active follows the direction of
development though exploiting competencies in the supply and demand market to avoid the
threats from new entrants. CSFs (change in critical success factors) are greatly encouraged in the
health market to ensure that emphasis is put on discouraging new entrants.
Competition and rivalry among firms
Gym club competition is high due to low switching costs. Through their wide knowledge of
competitive advantage, Gym Active managers have set up a strategy that will achieve a
continuous competitive advantage (Porter et al. 1980). Brighton Health and Racquet Clubs
managers know how to develop effective competitive strategies and avoid short-term strategies
that may be overtaken by the other firms. The low switching cost among various health firms
has led to increased competition.
SWOT Analysis
In my research I was able to identify the strengths, weaknesses, opportunities and threats (SWOT
Analysis) that prevail in the Virgin Active Health Clubs.

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 6. Marketing strategies for gyms fitness
The strategies available to fitness gyms can be divided, according to the spectrum of the
resources they refer to, into: generic (overall) and specific for marketing mix elements. The first
category includes the strategies differentiated according to the competitive position (relative
market share) for the leader, challenger, follower and specialist. Another approach belongs to
Porter (1980; 1990) and refers to the strategies of cost leadership, differentiation or focus. Often
encountered is Ansoffs (1965) product-market matrix with its four strategies. In what follows
are presented the overall strategies used by the four categories of competitors, because there may
be noticed differences in gyms approaches to market according to their market position and the
specific strategies.
Market leaders dominate the other actors and have the initiative to change prices, to innovate
services and products, distribution, communication, promotion (Kotler & Kettler 2012, p.321)
physical evidence, personnel or processes. However, they must remain alert at all times to
competitors actions that could threaten their market position (Dunning 2008, p. 72), especially
in a business environment subject to the trend of internationalization of investors. They can
resort to the expansion of the total market by attracting new customers who do not practice sports
for various reasons, such as high prices, inadequate location or hours ofoperation, or to attract
non-practitioners. They can increase the frequency of use through existing or new services and
facilities. They may also try to protect the current market share through good defensive and
offensive actions or to increase their market share by introducing new services, facilities or
locations and innovative ways of distribution, price adjustments etc. Among the strategies
challengers can use are the attacks on the leader, on the similar size companies that have
financial problems or of other kind (prices too high, obsolete facilities, amenities or services), or
on smaller firms. Follower's strategy is to imitate the leader. The obvious advantage of this
strategy is that it minimizes the costs with innovation and familiarization of buyers and the
associated risks. Specialists strategies refer to adequate management of the narrow market
segments they approach. Thus, their tasks refer to the creation, expansion or protection of niches,
taking advantage of the good knowledge of their consumers. Whatever position held,
differentiation from competitors through any element of the marketing mix remains a key
strategy for long-term success of any fitness gym.

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Specific strategies account for the elements of the marketing mix or for a combination of them.
Regarding basic and complementary services, fitness gyms can count on the introduction of new
products and services or on the imitation of the strongest competitors. No matter what, it is
advisable to try to differentiate themselves from competitors. Customization and adaptation of
services, quality or assortment are measures commonly used by market leaders. The price levels
of subscriptions to gyms tend to be correlated with the quality of physical evidence (machines,
equipment, interior design, staff training), but also with the image they want to convey to the
outside (Cheben 2006). Finding the best price - offer ratio and its right level is not easy, and
often the price has to be established especially against the competition. Fitness gyms, depending
on their overall strategy, their costs, the profit target, the market context, may fix the price at the
same level, above or below the competition. If large halls, those that are part of a national or
international chain can afford to set prices at a higher level, the local and smaller ones are forced
to rely on price and location to attract customers. Thus, they can try to offer the best price-service
ratio or the lowest price on the market. Distribution strategies refer to facilitating the sale of
subscriptions to the gym, the booking or cancellation of a place in training sessions, the
visualization of occupancy in sports programs etc. For this purpose, during recent years, gyms
have started using computerized reservation systems, in addition to the existing staff. The
promotion budget of fitness gyms is linked to their size. The small, local sports gyms must rely
on word of mouth promotion and other guerrilla promotion activities (flyers, social networks
pages, visibility brought by a good commercial venue, own webpages, sports TV shows), point
of sale advertising, promotions. Sports gyms are trying to acquire professional equipment, to
design a pleasant and functional space, to provide proper ambient conditions (temperature,
lighting, humidity, smell, sound), to properly signal internal and external spaces. The
servicescape is decisive in defining quality (Nickson et al 2002, p. 17) of a fitness facility. In
the area of personnel, gyms must first recruit qualified personnel or provide it with the necessary
training. Young, energetic people are preferred, even at the risk of a high fluctuation of
employees. Training should also refer to customer relations and orientation towards teamwork, to
active involvement in formulation and implementation of quality policy (Sharma & Karub 2014),
to transmitting company's expectations for employees. However, studies in the field (Fawcett,
Rhoads, Burnah 2004; Lloyd 2005) did not find a correlation between personnels skills and
positioning as a high-quality gym, ambience and amenities being considered most important.

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Rubio & Aragon (2009) conclude that SMEs managers must focus on personnel management
and technology, innovation and quality to get the estimated results. Strategy decisively influences
the performance of small and medium enterprises (Payne, Kennedy, Davis 2009). Whatever the
strategy chosen, or whether it is independent or a combination, gyms must constantly monitor the
market situation and adjust, if necessary, their strategy. The chosen strategy must be supported by
the available resources. According to Leitner and Guldenberg (2010), combined strategies are a
better alternative for SMEs, and the alteration of the generic strategy can lead to results as good
as those when strategy is not changed.
7. Marketing tools
Direct Marketing
Direct marketing was a sub-discipline and type of marketing. There were two main
definitionalcharacteristics which distinguished it from other types of marketing. The first was
that itattempts to send its messages directly to consumers, without the use of intervening media.
Thisinvolved commercial communication (direct mail, e-mail, telemarketing) with consumers or
businesses, usually unsolicited. The second characteristic was that it focused on driving aspecific
"call-to-action." This aspect of direct marketing involved an emphasis on trackable,measurable
positive (but not negative) responses from consumers (known simply as "response"in the
industry) regardless of medium.
Direct marketing is attractive to many marketers, because in many cases its positive effect
(butnot negative results) were measured directly. For example, we send out five
thousandsolicitations by mail, and three thousand customers were tracked as having responded to
the promotion, we could say with some confidence that the campaign led directly to the
responses.The number of recipients who are offended by the junk mail/spam, however, were not
easilymeasured
Channel
We also used media such as door hangers, package inserts, magazines, newspapers,
radio,television, email, internet banner ads, digital campaigns, billboards.
Telemarketing
The second most common form of direct marketing used was telemarketing in which
wecontacted consumers by phone. By this process many of the consumers were informed about

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thedifferent schemes.People interested could register on the phone also to avail the special
schemes.
Couponing
Coupons in newspapers and magazines cannot be considered direct marketing, since themarketer
incurs the cost of supporting a third-party medium (the newspaper or magazine);coupons were
designed specifying different schemes available for the month of July. Couponwere the most
effective way to increase the brand awareness and sales of the company
Cooperate Marketting
Addiction had corporate tie ups with Ienegizer, Rock man search group. We customized our
schemes for different branches and offered special discounts to the employees of both
theseorganizations.
Co Branding
To put in the words of inter-brand definition, "Co-branding is a form of co-operation, in whichall
the participants' brand names are retained."
Co-branding as, "two or more well-known brands combined in an offer" like Addiction andKazo
(the apparel brand) and each brand sponsors expect that the other brand name willstrengthen the
brand preference or purchase intention and hope to reach a new audience. Most companies have
explored co-branding at one time or another. But few have realized its full potential. While there
are many forms of co-branding; before a company can decide whichoption makes the most sense
for its situation, it must fully explore four main types of co- branding.
Door to door leaftlet marketing
Leaflet Distribution services were used extensively by the health industries, and many other
business focusing on a local catchment Business to consumer business model, similar to
directmail marketing, this method is targeted purely by area
Direct mails
The most common form of direct marketing is direct mails sometimes called junk mail, used
byadvertisers who send paper mail to all postal customers in an area or to all customers on a
list.Any low-budget medium that can be used to deliver a communication to a customer can
beemployed in direct marketing. Probably the most commonly used medium for direct marketing
ismail, in which marketing communications are sent to customers using the postal service.
Theterm direct mail is used in the direct marketing industry to refer to communication deliveries

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bythe Post Office, which may also be referred to as "junk mail" or "ad mail" or "crap mail"
andmay involve bulk mail.
8. Finding the Proper Site for a New fitness Gym Business
The next factor to discuss in the review of literature is about finding a site. This concerns with
looking at freestanding buildings or mall sites, renting or purchasing the building, choosing
warehouse/industrial park space at a bargain or committing it all to prime retail. These are just a
few of the questions that need to be considered before getting the first space or before expanding
into another location.
These are also important issues to understand because each one has an effect on the rent factor,
which drives the business plan, which determines the chances for success in the business. A
number of factors that determine the strength of the location must be considered. The key is not
the individual factor but how all the factors total up in relationship to each other.
For example, one site might have great visibility but the mall or town has unusual restrictions on
signage, which might cancel out the value of the site. As you review the factors, look at how
each one affects the other and that a good site for a new fitness business would be one with the
strongest total of all the factors.

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