Goodlife Fitness

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INTRODUCTION

1.1

Company Background

In Canada, the fitness market was growing at approximately 6 percent a year due to some reasons like demographic changes, marketing programs and preference of individuals. GoodLife Fitness Clubs was founded by David Patchell-Evans in 1979 as a sole proprietorship. Philosophies of the company were to provide health, fitness and self-esteem so that people feel better about themselves. GoodLife has become Canada’s largest health club chains, with 40 clubs in Ontario and Quebec by May 2000 with over 70,000 members. Head office of GoodLife was located in London, Ontario with the role of providing leadership and support for the franchisees and company-owned clubs. From the beginning, the company’s goal was to provide the best in equipment, facilities and high-quality service with a well-trained staff. Based on GoodLife’s philosophies and goals, the company has built its business on highly trained staff, innovative programming and reinvesting in its facilities. Apart from this, GoodLife’s strategy to raise the bar of service excellence and bring a new professionalism to fitness industry was also reason accounted for their success. This is how they position themselves and make them so different from clubs which traditionally run by sports jocks who did not take a professional approach in managing their operations. The GoodLife motto, “Measurable Constant Improvement”, underlaid its plan to grow to 100 clubs by 2004.

The GoodLife Kitchener Club was the top performer among GoodLife chains and it reopened at new location with better and newer facilities in 1998. Most new members joined the club through referral program and ads in a local free weekly newspaper, The Pennysaver. There are four groups of associates serving the club: sales, customer service, personal training and service associates. Most of the associates were on a part-time basis and all of them were involved in selling.

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1.2

The 7 P’s of Marketing

There are several key issues we have to consider in a successful marketing. These considerations were known as the 7Ps – product, price, place, promotion, people, physical evidence, and process. In this case, GoodLife offers various types of fitness programs as their product. Innovative fitness programs such as tanning, aerobic programs, strengths and cardiovascular training offer good selections to fulfill different needs of different customers. GoodLife also provides a wide range of cardio equipment and weights for their customers to choose from. The price for a new membership at GoodLife varied depending on different package or promotion. The company has developed an innovative client billing system with debited monthly membership fees ranging from $30 to $50 and excludes the needs for large up-front annual fee upon signing up. For the location, over 40 clubs were distributed in a dense work population across Ontario and Quebec, Canada. The amount of advertising spending in GoodLife was about 6 percent of revenues by using “call to action” versus a “branding” approach. However, the company gave more weight on “call to action” approach by spending heavily in print ads like Yellow Pages and The Pennysaver. They also free 1 week trial for new members through referral program. People involve in Goodlife are sales associates, personal trainers, customer service and service employees and also members who are joining the club. The physical evidence includes facilities exterior like exterior design, signage, and surrounding environment and also interior like best facilities, high-quality equipment and clean environment. Processes at Goodlife begin with enquiry in which sales associate would show customers the club and discuss the benefits of membership with them. Service employee was then introduced new members to the club and its philosophy through a series of programs on fitness and equipment use while personal trainers worked with individual club members on...
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