Mcs 2020 Pbl Assignment 1 Gaia Fitness
Problem Statement
The problem in this situation is that major competitor, Cali Fitness, has announced its official closure in four months and Gaia Fitness can greatly capitalize on this opportunity with the open market share that will become available. The budget to advertise and market Gaia Fitness is limited which will make it difficult for the business to market itself effectively to the new potential members. However, if Gaia Fitness is able to attract this new client base, they can keep in competition with other major competitors emerging in the city. The following are recommendations on how to solve this problem.
Recommendations
1. Buy the Clientele List
Our first recommendation is to make a deal to buy the clientele list of Cali Fitness. Using their client list we would use the client’s phone numbers and email addresses to communicate to their members directly to offer a discount on membership and to emphasize the same community and programs that Cali Fitness offered. To minimize the fact that most gym memberships are not renewed past trials and first year memberships, we would only buy the client list that has the loyal long-term memberships (A member for greater than a year). This way we can attract the loyal customers that are lost to Cali Fitness and attract them to Gaia Fitness.
2. Start Using More Social Media Our second recommendation for Gaia Fitness is to start using more social media promotion in addition with their strong presence on Facebook. People from all over the world do not only use Facebook on a daily basis, but also use Twitter, YouTube, LinkedIn, blogs, Google+, etc. If Gaia Fitness can start using these other popular social media hubs to do their advertisements/promotions, then it will be a successful marketing strategy to increase publicity and word of mouth buzz, which will ultimately increase sales. Social media can also be used to create polls and open forum boards that can give crucial feedback and could
The problem in this situation is that major competitor, Cali Fitness, has announced its official closure in four months and Gaia Fitness can greatly capitalize on this opportunity with the open market share that will become available. The budget to advertise and market Gaia Fitness is limited which will make it difficult for the business to market itself effectively to the new potential members. However, if Gaia Fitness is able to attract this new client base, they can keep in competition with other major competitors emerging in the city. The following are recommendations on how to solve this problem.
Recommendations
1. Buy the Clientele List
Our first recommendation is to make a deal to buy the clientele list of Cali Fitness. Using their client list we would use the client’s phone numbers and email addresses to communicate to their members directly to offer a discount on membership and to emphasize the same community and programs that Cali Fitness offered. To minimize the fact that most gym memberships are not renewed past trials and first year memberships, we would only buy the client list that has the loyal long-term memberships (A member for greater than a year). This way we can attract the loyal customers that are lost to Cali Fitness and attract them to Gaia Fitness.
2. Start Using More Social Media Our second recommendation for Gaia Fitness is to start using more social media promotion in addition with their strong presence on Facebook. People from all over the world do not only use Facebook on a daily basis, but also use Twitter, YouTube, LinkedIn, blogs, Google+, etc. If Gaia Fitness can start using these other popular social media hubs to do their advertisements/promotions, then it will be a successful marketing strategy to increase publicity and word of mouth buzz, which will ultimately increase sales. Social media can also be used to create polls and open forum boards that can give crucial feedback and could
Bibliography: Finger, S. (1997, October 1). How to sell your Client List. Nail Magazine. Retrieved from http://www.nailsmag.com/article/40705/how-to-sell-your-client-list Marketing Donut. (2010). Retrieved from http://www.marketingdonut.co.uk/marketing/internet-marketing/social-media-and-online-networking/how-to-use-social-media-to-attract-consumers Powell, A. (2013, january 06). Retrieved from http://www.annettapowellonline.com/social-media-marketing-attract-new-customers Conrad, C. (2008, September). Maximizing Referral Promotions. Retrieved from http://www.smartclubmarketing.com/member-articles/maximizing-referral-promotions/