Gold's Gym Market Research

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TABLE OF CONTENTS

Topic Page Number

Section I: Executive Summary 2

Section II: Introduction 3

Section III: Research Methods Used in the Study

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Section IV: Findings and Conclusions of the Study

11

Section V: Proposed Strategic Plan 12

Section VI: Bibliography 16

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I. EXECUTIVE SUMMARY

Business  Overview:  Gold’s  Gym  is  an  athletics  center  in  Redmond,  Washington  who  aims  to  help  their  customers  reach  their  fitness  goals.    They  have  11-­‐12,000  customers  in  their  75,000  square-­‐foot  facility.  Gold’s  Gym  earns  around  $2-­‐3  million  per  year.    

Research  Methods:  These  following  research  methods  were  used  in  our  study:  

   Key  Findings:  

• Gold’s  Gym  offers  a  variety  of  membership  opportunities  • Gold’s  Gym  is  not  found  on  any  social  media  platform  • Their  location  is  has  slow  traffic  during  the  hours  of  11am-­1pm  • The  Generation  Z  is  an  underserved  market    

Proposed  Strategies:

Problem:  Gold’s  Gym  is  in  need  of  a  new  generation  to  target  as  customers.  We  have  been  asked  to  create  a  market  research  manual  to  develop  a  new  generation  of  Gold’s  Gym  customers,  as  well  as  recommend  promotional  strategies  in  order  to  reach  them.  

Golds  Gym  Website  Analysis  

Secondary  Research  

Gold's  Gym  

Employee  Interview  

Gold's  Gym  Target  Market  Survey  

• Create  a  Twitter  handle  in  order  to  connect  with  customers  • Offer  opportunities  for  high  school  sports  teams  to  train  at  the  gym  at  a  

discounted  rate  • Implement  human  resources  campaigns  to  educate  the  employees  about  

how  to  market  to  Generation  Z  and  communicate  with  them  effectively  

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II.  INTRODUCTION  A. Description of the Business or Organization

Golds’ Gym specializes in helping members find their own

strengths through fitness. As the most recognized name in

fitness, the company realizes that strength comes in many

forms; whether that be strength as a friend, strength as a

parent, or strength as a person. This mission of Golds’ Gym is discovering strengths and

highlighting them through healthy diets, education, and physical progress. Monthly, the

Redmond location of Golds’ brings in two to three million dollars monthly through

membership purchases and exercise class opportunities. They offer two different types of

memberships for their customers; first is their most popular option, the multi-club card.

This card will give members the opportunity to get involved in three or more clubs

throughout their time as a Golds’ member. The clubs include different classes, for

example spin classes and hot yoga. This gives the member a variety of choices for their

membership. The other option is a single club membership card, which gives the member

one choice of class during their membership.

With eleven thousand customers at their Redmond location,

Gold’s employs sixty-five full-time employees and seventy-

three part-time instructors. In their 75,000 square foot

facility, the employees strive to create the best customer

service experience. When a customer enters the doors of

Golds’, they are greeted by a front-desk consultant right

away. The consultant will seat them, put their information in the Golds’ system, and go

over the different membership offers. After treating the customer to a tour of the

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facilities, the consultant will then explain the specifics of becoming a member. This

includes pricing, office hours, and popular amenities.

B. Description of the Community

The city of Redmond benefits from a unique partnership between local government,

business and the community, to create a truly “business friendly” environment. This

ecosystem allows big business to

access a richly skilled, technology-

savvy workforce while the encouraging

smaller businesses to flourish and

grow. A number of world renowned

Global 500 corporations already call

Redmond home including Microsoft,

Genie, Aerojet, Honeywell, Nintendo,

and AT&T. They, along with other national and globally recognized names, employ

hundreds of thousands in the Puget Sound Region. Our ultimate goal is to create lasting

business relationships between these companies and Golds’ Gym Redmond.

Redmond fosters a thriving and innovative community. Located in the beautiful Pacific

Northwest and surrounded by the Puget Sound region, Redmond is fast becoming the

place to be for culture, cuisine and overall quality of life. Continuously being developed

by the City of Redmond, its community-based lifestyle and vast accessibility to outdoor

recreational opportunities makes Redmond the place where residents expect to stay for

generations. Locally-based, world-class educational institutions help staff the city’s

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leading-edge employers, making Redmond an ideal destination for the most dynamic and

diverse companies.

C. Overview of the Business’s Current Target Market

The primary target market for Gold’s Gym Redmond includes men and women ages 35-

54. This market includes the working public, especially those who

are employed by the nearby corporations like Microsoft and

Nintendo. These men and women have stable work hours, like a 9-5

shift, and earn an annual income of greater than $50,000. In

addition to their work life, they live in a suburban area in the town

of Redmond, preferably within a 10 mile radius of the gym to make

for an easy commute. The secondary target market is retired male and females, ages 65-

74. This market includes Redmond citizens who are no longer working and have time to

go to the gym around the hours of 1-4pm.

Geographics Demographics Psychographics Residents of Redmond Men and women Works a 9-5 shift Lives within 10 mile radius of the Golds’ Gym location

Ages 35-54 Like individualized attention when it comes to creating an exercise program

Lives in a suburban area

Annual income of greater than $50,000

Lives a healthy lifestyle

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The secondary target market is retired male and females, ages

65-74. This market includes Redmond citizens who are no

longer working and have time to go to the gym around the

hours of 1-4pm.

Geographics Demographics Psychographics Residents of Redmond Men and women Retired Lives within 10 mile radius of the Golds’ Gym location

Ages 65-74 Like individualized attention when it comes to creating an exercise program

Lives in a suburban area or retirement home

Annual income of greater than $50,000

Likes to keep in shape at an older age

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 III.  RESEARCH METHODS USED IN THE STUDY  

A. Description and Rationale of Research Methodologies Selected to Conduct the Research Study

Table #1: Research Goals

Primary Research Rationale

We have conducted extensive primary research in order to gain specific and

important information on Gold’s Gym as a whole. This includes information regarding

their target market, customer trends, special offers/deals, corporate partnerships, popular

amenities, and a close look at what a typical day at the gym would look like. This

reaserch includes 3 in-depth interview with the general manager and receptionist at

Gold’s Gym, a local gym-goer, and an employee. Next, we have utilized a focus group in

order to centralize our information even further with surveys to xxx amount of students

How  to  serve  Generation  Z  

Learn  about  Gold  Gym's  marketing  strategies  

Gain  necessary  background  information  of  Gold's  Gym  

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attending high school (Z generation). Table #2 will provide more information regarding a

description of our primary research.

Table #2: Primary Research Personal Interview

Description: Our personal interview with Michael Allen (General Manager) took place on September 18th, 2014 at Gold’s Gym in Redmond, WA. Rationale: Our rationale for this personal interview was to learn more about the Gold’s Gym facilities, advertsing, marketing strategies, and the day-to-day process that occurs. This helped us to discover possible target markets that Gold’s Gym could better serve to.

Survey #1

Description/Rationale: We created a survey sepcifically for athletes who not only would apropriately higlight our target market, but provide facts and details for us to narrow down how we can attract more customers from Generation Z.

Survey #2 Decription/Rationale: We created a second survey for non-atheletes in order to further our exploration of generation Z and how we can not only attract athletes, but non-atheletes as well. This will provide us with information needed in order to create new marketing strategies fro Gold’s Gym.

Secondary Research Rationale

Our secondary research includes necessary information needed in order to gain

more background knowledge of Gold’s Gym. We used online websites, social media

sites, and print advertisements to further expand our knowledge of target market trends

and specific marketing strategies. Using the interent as a major source of our secondary

research, we found it most helpful in discovering what outlet customers, specifically

Generation Z, use, want, and need the most as a means of accessing information to

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Gold’s Gym. Table #3 will provide more information regarding a description of our

secondary research.

Table #3: Secondary Research Internet Websites: 1. Gold’s Gym website:

http://www.goldsgym.com/ 2. OneRedmond website: http://www.oneredmond.org/ 3.Five Tips For Marketing To Generation Z: http://www.forbes.com/sites/theyec/2013/12/16/five-tips-for-marketing-to-generation-z/ 4. Generation Z Spending Habits: http://www.businessinsider.com/generation-z-spending-habits-2014-6

Social Media: Twitter Facebook Instagram Yelp

Print: Gold’s Gym direct mail Gold’s Gym Extra Newsletter Gold’s Gym coupons

B. Process Used to Conduct the Selected Research Methods

Gold’s Gym Eployee Interview: Prior to meeting with Michael Allen of Gold’s Gym,

we created a portfolio of possible questions to lead the interview in the direction we were

hoping would produce all of the information necessary to start the research project. We

used our secondary research of the Gold’s Gym website, Facebook page, direct mail

flyers, and other background information to guide the executives.Throughout our

interview with Michael Allen at the Redmond Gold’s Gym location, we inquired about

their underserved market, their promotion techniques, and their primary target markets.

Please refer to the following graphic for some of the questions we asked during our

interview:

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Target Market Survey: We developed and sent out an extensive survey in order to gain

information about our target market, or Generation Z. The participants of our survey

ranged from ages 11-19. The information we gathered included daily exercise habits and

preferences, as well as feedback from customers. Our ultimate goal of this survey was to

see if our target market primarily athletes, as well as if they were interested in having

group gym practice sessions at Gold’s Gym Redmond. After distributing an online survey

to multiple marketing classes of Woodinville High School, we received 72 completed

surveys. Our most important and effective question in the survey was “Where do your

sports trainings take place?” This lets us know whether or not our target market already

participates in the group sessions offered at Gold’s Gym, or somewhere else. Here are

few short examples of questions we asked on our surveys:

What  is  your  primary  target  

market?  

Which  market  do  you  feel  is  

underserved  at  Gold's  Gym?  

What  is  your  customer  service  

process?  

Which  is  your  most  popular  membership  option?  

What  is  your  most  effective  

promotional  technique?  

The  Underserved  

Market  

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Group  Trainings  

Yes  

No  

Where  Participants  Practice  

Gym  or  Athletics  Center  Somewhere  else  (\ield,  etc.)  

IV. RESEARCH METHODS USED IN THE STUDY

A. Findings of the Research Study According to our survey, although 85% of our survey participants have group trainings

for their team sports, only 24% of those utilize a gym to carry out those practices. This

shows that there is a great need for gyms to enter the market and offer team trainings for

those 73% who do not go to a gym like Gold’s. In addition, 98% of those surveyed

admitted to using a punchcard to earn rewards and loyalty, as well as admitting that they

would use a punchcard if Gold’s Gym offered one. Below are pie charts that explain the

data said above.

Athletes

Does your sport require practices? Does your sports team have group trainings?

Where do your trainings take place?

Non-Athletes

What do you do most often for exercise?

Do you wish to get more daily exercise? Which do you like best? Individual exercise, group exervise, or classes (yoga, cycling. etc.)?

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B. Conclusions Based on the Findings Through our research studies, including surveys and interviews, we have discovered that

there is a need for sports teams to work out at

discounted rates through a gym or athletics

center. Thanks to our survey, we concluded our

original hypothesis that Gold’s Gym can dive

into the market of team sports, especially in

surrounding high school areas. For example,

Gold’s Gym can invite sports teams from Redmond High School, like the Women’s

soccer team, to train at their Gym at a flat rate to not only gain a new market within

Generation Z, but also create a sense of community between the surrounding Redmond

area. We can add the data we gathered from the survey question about the punchcards as

well, giving teams an incentive to keep coming back and training for an award or

discount. This bring in a new target market then previously described to us through our

interview at Gold’s Gym, which was middle aged men and women.

V. RESEARCH METHODS USED IN THE STUDY

A. Objectives and Rationale of the Proposed Plan

In regards to the product and service the Gold’s Gym offers its customers, we wish to not

change anything. We feel that Gold’s Gym holds itself to a high standard of fitness

education and exercise equipment and we just want to help them reach an underserved

marketing. As for the Redmond location, we feel that having Gold’s Gym in the heart of

the city is essential to the transportation used by our target market (high school students

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in Generation Z) where they can personally transport themselves in cars- or take busses

when needed. What we do want to change, however, is how Gold’s Gym can promote to

this market.

STRATEGY #1: TWITTER

According to our survey 81% of our participants were avid Twitter uses. We wish to

bring the Twitter handle, @GoldsRedmond, to life in order to reach

the younger generation. Through this Twitter account, we can talk

with our customers and invite them and their sports teams to train at

our faciliites. Our ultimate goal is to reach out to surrounding high schools and local

sports clubs and provide them with the opportunity to train at Gold’s Gym, at a well-

known and well-equipped facility.

STRATEGY #2: VISITING HIGH SCHOOLS

We first want to reach out to the student athletes at Redmond High School by inviting

one of our trainers to speak with the students about the opportunites

provided at Gold’s Gym Redmond. By personally connecting with

our customers, we feel that the student athletes and their teams will

be more likely to become members with our gym.

STRATEGY #3: HUMAN RESOURCES CAMPAIGN

In addition, we will implement a human resources campaign where our employees will

have one-hour trainings every Wednesday in order to be able to communicate with our

new target market effectively. These meetings will consist of how to effectively run our

Twitter accounts, speak to students at high schools clearly, and also general customer

service techniques.

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STRATEGY #4: PUNCH CARDS

Ontop of this, we want to implement punch cards for

the teams, where every five sessions with a Gold’s

Gym trainer gets the team one free hour-session. We

feel that this would reach our market because 100%

of our survey participants say that they would utilize a

punch card if given one by Gold’s Gym. We want to tap into this market by providing

punch cards to customers in order to create a loyal customer base. With our combonation

of punch cards, new social media accounts, and human resources campaign, we feel

strongly that Generation Z will be effectively reached by Gold’s Gym Redmond.

5 sessions, get 1 free!

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B. Proposed Activities and Timeline

We will start our promotional campaign on September 1st, 2015, which is the day that

Fall Season Sports commence for High Schools in the area. After one month of

implementing our changes to Gold’s Gym Redmond, we will conduct a meeting with the

Human Resources department, employees, trainers, and management to assess the

effectiveness of our promotional plan. If we see positive changes in customer loyalty,

sales, and employee satisfaction, then we will continue the process detailed above. If

there are little to no changes in these areas, then we will re-evaluate with our surveys and

Create  @GoldsRedmond  Twitter  handle  

Communicate  with  our  customers  over  Twiter  and  promote  our  upcoming  class  and  training  

schedules  

Announce  over  Twitter  the  implementation  of  our  punchcard  program  

Train  our  employees  one  hour  a  week  through  our  

Human  Resource  campaign  

Have  trained  emplyees  and  Gold's  trainers  speak  at  local  High  Schools  and  hand  out  punch  cards  to  

student  athletes  and  sports  teams  

Offer  customer  surveys  at  the  door  to  gather  

information  on  how  the  customers  found  out  about  

Gold;s  Gym  

Assess  how  many  new  customers  in  the  \irst  month  of  our  plan  have  been  coming  due  to  our  

new  techniques  

Keep  @GoldsRedmond  regularly  updated  with  news  and  current  events  

Measure  the  success  of  our  punch  card  campaign,  Twitter  followers,  and  

human  resource  campaign  and  re-­‐evaluate  

September  1st,  2015   September  2nd,  2015   September  5th,  2015  

September  6th,  2015  September  14th,  2015  September  16th,  2015  

 September  18th,  2015  

 September  19th,  2015  

 September  30th,  2015  

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employee interviews to find out the weaknesses and threats in the campaign and develop

strengths and opportunities accordingly.

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VI. BIBLIOGRAPHY

Method Information

Websites Gold’s Gym website: http://www.goldsgym.com/ OneRedmond website: http://www.oneredmond.org/ Five Tips For Marketing To Generation Z: http://www.forbes.com/sites/theyec/2013/12/16/five-tips-for-marketing-to-generation-z/ Generation Z Spending Habits: http://www.businessinsider.com/generation-z spending-habits-2014-6

Personal Interviews Michael Allen- General Manager of Golds’ Gym Redmond

Surveys Survey Website: Surveymonkey.org