PaThe data for FC's product were collected through the interview with Patrick van Zuilen, which can be found in Appendix 4. FC in Ede provides a product that allows their members to do physical exercises to achieve their wellness and fitness' goals. The product of FC is a membership card, which allows customers to enter their gym based on the kind of subscription they have chosen. The benefits of the membership is the option to achieve fitness and wellness goals. However, the benefits could also be socializing as they get to know new people. It can solve the problem of overweightness and health problems. Moreover, the membership of FC differs to their competitors.
The selection customers can choose from are:
- Fitness subscription: This allows them to make use of the gym and all the equipment's that FC offers. However, they can also make use of the group lessons which are: Bootcamp, Circuit Fitness, Cycling, Pump, Zumba and Yoga.
- Boxing subscription: It allows them to follow boxing lessons that is given by a boxing coach.
- Boxing and fitness: This is a combination of where customers can make use of everything from the fitness and boxing packages.
- M/V pas: This is a subscription that focuses on married couples and allows them to get a fitness subscription for both of them for a cheaper price than two separate subscriptions.
- Brazilian Jiu Jitsu: Customers can follow Jiu Jitsu lessons which is given by a Jiu Jitsu coach with this package.
- All in: This is a combination of all the subscriptions that FC offers and allows the customer to make use all the facilities for one price.
The unique selling point of FC is that their members are able to make use of coaching and trained supervision, which enables customers to achieve their fitness and wellness goals quicker. The customers who makes use of this service learn how to properly execute techniques and the proper work out methods for their physique. This enables them to train individually in the future. FC has a resting lounge where members can relax after training they also have the opportunity to purchase food and drinks at their bar. There is a changing and shower room so members can change and shower after their work out. They also provide lockers that are free of charge to allow customers to lock up their possessions safely. FC provides free equipment that members can make use of during the class when they do not want to purchase the equipment, such as boxing gloves for boxing lessons. The gym equipment are of good quality and offers a wide of variety, but also is there a big amount of similar equipment of some due to their popularity.
Fit Centrum is located in the centre of Ede. Therefore, it is nearby supermarkets, malls, food shops, electronic shops and more. The convenience of their location is that their members are able to shop before or after training, because a lot of places are in the area. The distribution of the product of FC is through a direct channel. Which means that the product will go to the customer without a third party. When customers wants to get the product, they can obtain it through two options, the first option is through their website and their second option is to go to the FC gym in Ede. With the website they are able to choose the product, fill in their information and sign the contract or they can do this directly at the gym. To be able to communicate easier with the customers FC trainers makes use of WhatsApp where they are able to contact them regarding the training or questions. FC members are also able to contact them for questions through website, e-mail, Facebook or the phone.
Figure.2: Direct Channel (Verhage, 2010).
The data for FC's price were collected through the interview with Patrick van Zuilen, which can be found in Appendix 4. For the pricing FC makes use of value based pricing. This means that they determine the value of their product instead of looking at the costs of producing. The product value are the benefits the product provides to their customers. Price elasticity defines how the product demand changes with price adjustments. They deal with an elastic product, which means if a price increase occurs, the product demand will fall. When the price falls, an increase in demand will occur. The price that FC offers compared to most competitors in Ede are higher. However, they do not offer the same sports bundle combinations as FC does. They use product line pricing to attract customers that would want to subscribe for only one of the sports facilities. The product bundle pricing of FC is the differentiator between them and their competitors, the pricing can be found at appendix 3. FC uses product bundle pricing to attract customers that would like to benefit from an all-in package that is offered at a cheaper price than having separate subscriptions.
For example with the product line prices, the boxing subscription is priced at €25 and the fitness subscription at €24,50, which is a total of €49,50. With the product bundle price of the boxing and fitness subscription, a customers is able to do the same thing. However, for the price of €35 the product bundle is more attractive as they save an amount of €14,50 and can make use of the same services. The customers could also choose for the all in service, which cost €40 and allows them to make use of all the services FC provides.
The data for FC's promotion were collected through the interview with Patrick van Zuilen, which can be found in Appendix 4. FC makes use of the pull strategy for promotion, which means that their promotion strategy is focused on motivating the consumers to come to FC. As for marketing, FC makes use of traditional marketing as they send the same message to all their customers. FC tries to attract their customers through their website and social media platforms. Seasonal promotions are the best times for FC to promote, as it offers special discount for a certain time of a year. An example for this is at end of the year as a lot of people make New Year resolutions to get in shape and losing weight. They can us this knowledge for a promotion opportunity. For example, they can use sales promotion as promotion tool by give potential customers attractive discount or gym goodies if they sign up before the New Year. Their competitors are doing this already. One of them is basic fit, whom offers new customers free registration, a complimentary product like a bag or towel and 3 subscription months for free.
Patrick van Zuilen stated in the personal interview October 19rd, 2016 that Fit Centrums assets is “the total package for customers providing a wide variety of services next to gym, such as Boxing, Jiu Jitsu, Bootcamp, Circuit Fitness, Cycling, Pump, Zumba and Yoga”. By providing a wide range of services they are able to differentiated themselves from the market. Looking at the pricelist of FC for every subscription, it is beneficial for customers to take the all-in subscription if they would like to subscribe to at least two of the sports. It will become even more favourable if they are interested in following more sports. Therefore, FC is offering more services for less compared to their competitors. The location is also a strength of FC, because instead of going to several locations it can now be found at one location. Another strength of FC is that they deliver quality services, by making sure that the customers are heard and that their feedback is important. FC uses the feedback from their customers, to improve the customer experience within their gym. Patrick van Zuilen gave an example of how FC uses their feedback in the personal interview. He states that “we started with boxing lessons, because customers wanted it. We added the sport to our product and afterwards the lessons were getting too crowded and customers were saying to prefer to have extra lesson so we did.'' Therefore, FC acted on the feedback and introduced more lessons. This lead to less crowded classes and it kept the customer satisfaction high as well as the quality of the classes and therefore their services. Moreover, FC really makes an effort to engage with their customers, making them feel comfortable and loved by their customers (P. van Zuilen, personal communication, October 19rd). This is also considered a strength, because when customers are satisfied and feel taken care off, it creates a good atmosphere and strengthens brand loyalty.
Customer relationship is important for FC as they try to help their customers as good as possible. However, according to Patrick van Zuilen “Each employee has their strong points, but some employees could excel or develop in certain skills as there is room for improvement”. Moreover, he stated that a few employees do not always interact with customers as much as he likes them to (P. van Zuilen, personal communication, October 19rd, 2016). Therefore, a weakness is that not all customers are getting helped correctly or employees do not try to help the customers at all. Another weakness is that FC is located in the city centre of Ede and it is quite a good location. Patrick van Zuilen mentions that ‘' few people live nearby and are located further from the center. If we look at Basic Fit they have two locations here in Ede one in the center of Ede and another located at Peppelensteeg. In the past people that were located far from the center would have to travel to work out as there were not that much options. Nowadays, Basic Fit expanded to Peppelensteeg. Where it is more populated than at the city center and they made it more attractive for people to just work out there''. This enables people to easily switch to competitors as it is closer to them rather than a bike ride of 10 to 15 minutes to the city centre. Price is another weakness FC offers a wide range of different programs and is customer service targeted. Their competitors are less customer service targeted and only focus on offering a low price for the customer. The low price comes with the lack of providing quality. Nonetheless, price is a heavy weight factor for potential customers when making the decision to switch gyms and subscriptions.
Nowadays there are a lot of opportunities in the fitness and wellness industry. Lots of companies make use of trends and hypes to attract more customers. Examples of trends are CrossFit, boot camps and healthy lifestyles promoted by celebrities (McCall, 2016). By making use of trends that keeps rising, they can attract more people. However, it will be difficult to keep up with all the trends. Therefore, it is recommended to only select the biggest on holding trends that will allow them to gain more customers. Also, there is an opportunity for FC to compete with their competitors. An identified opportunity is to consider 24/7 access to the gym. However, FC should investigate if there is demand for this concept and if the cost of operations are lower than the revenues generated. 24/7 could be attractive as customers will be able to work out more often, have more flexibility with their schedules and this might attract potential customers that work irregular shifts. This will mean that FC has to install an automated door system and employ more people to have at least one employee for the night shift to keep an eye on the gym and maintain the customer service level. However, this opportunity will increase costs. Nevertheless, the opportunity will increase their customer service value and attract a wider range of customers. Additionally, another possibility for them is to invest in energy saving equipment or make use of green electricity. Sun panels could be an option, which in the long term will save them a lot of money and in the future even generate money.
The threats is the increasing competition in the market. If the fitness and wellness industry is doing well, more competitors will entry the market or competitors could expand their business (Rabobank , 2016). Another threat is that the market demand can shift. For example consumers would rather do outdoor sports or online workout than indoor gym (McCall, 2016). It could also be that consumers are getting less interested in fitness, which is a big threat as it will decrease the income. At last, regulations could also be a threat as in the future it could be possible that the government could issue laws or regulations that could negatively affect the gym.
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