Marketing and Communications: Pure Gym Case Study

This case study explores the introduction, organizational structure, management approach, and strategic objectives of Pure Gym, one of the largest fitness chains in the UK. It also discusses the promotional mix theory and target audience response.

MARKETING AND
COMMUNICATIONS

Table of Contents
PART 1............................................................................................................................................1
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
Introduction of an organisation..............................................................................................1
TASK 2............................................................................................................................................2
Analysis of Organisational structure of Company ................................................................2
TASK 3 ...........................................................................................................................................2
Modern management approach that could be used ...............................................................2
TASK 4 ...........................................................................................................................................3
Innovative strategic management objectives .........................................................................3
CONCLUSION ...............................................................................................................................4
PART 2 ...........................................................................................................................................5
INTRODUCTION...........................................................................................................................5
1. Promotional mix Theory ....................................................................................................5
2. Uses of promotional mix theory for selection....................................................................5
3. Target audience and their response....................................................................................5
4. Chosen Channel and its justification..................................................................................6
5. Key message to be deliver ................................................................................................6
6. Use of AIDA Marketing Theory .......................................................................................6
7. Feedback collection ...........................................................................................................7
..........................................................................................................................................7
REFERENCES................................................................................................................................8

PART 1
INTRODUCTION
Pure gym is one of the biggest fitness chains in the world which has more than 445,000
members who are currently affiliated with the organisation. There are more than 300 places
where its franchise is open. It is Britain’s largest chain that assist people in building a fitness. the
company has recently acquired another company with a name of LA fitness. The fitness
organisation is owned by private entity with a name of CCMP capital and various other investor.
After buying out their main competitor LA fitness in UK the company is said to be on path of
becoming one of the largest gyms in the continent.
TASK 1
Introduction of an organisation
Pure Gym is a chain of fitness clubs in UK. It is one of the largest gym of Britain nation.
Gym facilitates service of 24 hours in a day. It provides services of exercises, Fixed and free
weights, however such clubs do not have swimming pools or Saunas facility. It is planning to
have around 300 gyms clubs by 2020 (Smith and Zook, 2011). It has around 4,45,000 members
currently signed up and attracting youngsters, adults of different ages. The company also have
an app using which anyone can search for nearest Pure Gym club and make bookings for
exercise classes. Also members of club are given login code and password through which they
can take many advantages. The cost charged by such gym are usually less. Thus, it is rapidly
growing company in the sector of fitness. It is a private fitness firm founded in 2009,
headquartered in Leeds, United Kingdom. The club has presence in around 300 places and
operates in fitness and health club industry. It is an organisation which provides guidance and
assistance in fitness and health. People from every age from teenagers to adult are taking
facilities of such clubs. They have recently acquired its biggest rival LA fitness and on the
direction of becoming largest gym in United Kingdom. Managing such fitness clubs are not easy
for managers. They need to adopt different strategies and plans to deal with their rivals.
Retaining vast number of members and attracting new one is always a challenge. Now-a-days
technological changes also affected such firm in a bigger manner. Equipments are getting useless
due to introduction of new ones. Thus, to be competitive and dynamic is really important for an
organisation like Pure gym to always be profitable.
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TASK 2
Analysis of Organisational structure of Company
Pure Gym is a private limited company with share capital. Organisation business is listed
as “Active” and it Currently has 4 number of directors. The company has large number of human
resources available. It presently has around 1200 people working for them and provide various
services to members of the club. Pure Gym has 2 subsidiaries also. Company has Chief
Executive Officer, Chief Financial Officer, Chief Operational Officer and two non-executive
directors currently working. The fitness club is owned by CCMP Capital and various other
investors. It is serving most of the areas of UK. Thus, one of the biggest and leading fitness and
health club in Continent. The organisation first director was Margaret Anne Garnett. The
company earn great amount of revenue even after providing services with low cost to members.
Retaining such vast number of members is not easy but organisation is still following one of the
best strategies. Thus, moving towards opening more and more clubs. It is planning to have
around 300 Gyms by 2020. one can get membership in such club with around 10 to 25 pounds
cost. Spending such less amount is not a big deal for people to maintain their health and fitness.
Organisation is expanding their business regularly and giving tough competition to their rivals.
These clubs are having all the facilities like other fitness centres except swimming pools, saunas,
and racquet court. The majority of their gym are open 24 hours a day, 7 days a week and 365
days a year. Members can even join online with a mobile app of Pure Gym and get facility from
same by paying monthly with no contracts.
TASK 3
Modern management approach that could be used
Managing such large group of clubs is not an easy task. Management get influenced by
various internal and external factors (Kitchen and Burgmann, 2010). Modern view point of
management is to make their employees productive and improve their efficiency which could be
possible by implementation of best modern management approach (Modern management
approach. 2017). The detail of such approaches are as under-
System approach- System approach was developed by Herbert A. Simon. He suggested
that an organisation should work as a system which comprises of regular interaction and
interdependent elements. Such interaction will definitely make coordination at work so that
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assigned tasks can be done fast and easily. He further suggested that all the sub system should
have to work for fulfilment of common goals and objectives. Pure Gym have to follow system
approach to make better coordination among their large numbers of employees. Thus, each
element of an organisation work towards accomplishment of organisational goals.
Contingency approach- This approach is also known as Situational approach. It is one of
the key to effective management. According to this approach, appropriate decision and actions
needs to be taken at right time. It is managerial action that decides where an organisation stands.
Environment in which a firm works is getting dynamic and each decision needs proper
considerations. The approach argues that there is no one universal principle to manage any
company. Company like Pure Gym also come across various situations and maintaining healthy
relations with members of clubs are important. Retaining existing members for club is necessary
as there is lot of rival presence in UK. Thus, decision need to taken with due consideration about
situation. Problems of management are different under different situations and to be handle as
per its demand. It is an improvement over system approach where elements are dependent on
each other for making decisions (Khan, and Khan, 2012).
Thus, Pure Gym should follow Contingency or situational approach by taking appropriate
decision at the right time and make their firm competitive in terms of its rivals.
TASK 4
Innovative strategic management objectives
Every organisation set their target to be achieved at the pre-determined time frame. It is
most important for the current and future health of business. Goals are decided after considering
different analysis such as Strength, Weaknesses, Opportunity and Threats (SWOT) analysis or
Porter's Generic strategy matrix. The strategic goals of Pure Gym should be pre-defined, so that
all employees will put their efforts to achieve such objectives. The strategic objectives of
management can be-
Increasing marketing shares- Increasing market shares can be one of the strategic
objective of Pure Gym. There are lots of rivals present in fitness and health care sector. Recently
organisation has acquired LA fitness organisation to increase its customers (Ketter, and
Avraham, 2012). Currently, it has around 4,45,000 members working. They are planning to
expand their clubs number to around 300. This might be one of the strategic objective of firm.
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Strengthen Financial resources- Availability of financial resources will definitely be one
of the strategic objectives of Pure Gym. They need new technologically upgraded equipments
which will incur huge amount of money. The same will be fulfilled by having financial resources
in hand. Also for expanding business and growths prospects can be achieved by same. If a
company have strong finance in hand they will take more risk in their business to get a
competitive advantage over others. Pure Gym is also trying to expanding their clubs and serve
every part of UK. That will get possible by having enormous Financial resources.
Innovation- Innovation is one such thing every organisation wants to deal with. An
organisation get competitive advantage over its rivals if they adopt creative technology that will
attract more and more customers. Working in a dynamic environment is not easy. Pure Gym also
want to get ahead in terms of their rivals.
Action planning- Action taken by manager of an organisation defines where a business
stands. These action are very important for business organisation. Action helps in achievement of
organisational goals and objectives. Action planning is the identification of top five objectives of
an organisation. Pure gym should consider action planning as one of their main task. Also
development of Smart goals and objectives are of utmost importance for an organisation.
Productivity- Human resources are life blood of an organisation. Management of around
200 clubs is not an easy task (Huhman, 2010). Improvement in efficiency and productivity of
employees of firm can be one of goals. This is always necessary to improve overall performance
of business organisation. Thus, Business can achieve its goals and objectives.
SWOT analysis-
Strength- Pure Gym already has around 4,45,000 customers. It is one of the strength of
company which definitely helps in attract more customers. If members of club search out their
references then, more customers get attracted towards business (Castronovo, and Huang, 2012).
Thus, strategies should be made in a way that old members will get discount for bringing new
members in club.
Weakness- Presence of rivals in fitness and health care sector and design a layout with
such equipment will definitely need more cost. Cost management is always vital to determine
profitability of firm. Lacking in money will lead to failure of business.
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Opportunities- It is becoming biggest group of clubs in continent, providing services all
over United Kingdom. Still business is expanding in UK and opportunities to increase clubs
outside nation is more.
Threats- Technological changes can be greatest threat to fitness clubs. Any people will
like to work out on new technological equipments (Albarracin, Johnson, and Zanna, 2014).
External environment will definitely possess threat to firm. Dealing in such environment is
always risky.
PESTEL Analysis-
Political- Political environment always have influence on business organisation. Pure
Gym should consider Political aspects of business. Rules, regulations and freedom given by
Government covered under such factors. The main motive of government is to make economic
balance in a country.
Economic- Economy of United Kingdom has been growing over the years. Pure Gym is
operating their business in fitness and health care sector. The growth in the sector must be given
emphasise. Also presence of rivals in sector make it competitive.
Socio-Cultural- Organisation work through people and there task is serving lives of UK.
Exercises classes and various fitness tips are given to people of United Kingdom to make their
health better.
Technological- Any organisation like Pure Gym should be more curious about their rivals
technology up gradation. If changes are not adopted timely, it will result in lose of loyal
customers which eventually lead to failure of business.
Environmental- The environment in which Pure Gym is working should have to be
considered. United Kingdom government is also keen towards improvement in health care and
fitness sector to make people lives better. Definitely it will influence working of an organisation.
Legal- Legislation is always needs to be follow. Any disobey in follow up of rules laid
down b y government will lead business towards failure. Also investment and starting up of
business in UK is not easy. Foreigners have to face number of difficulties to deal with formalities
and procedure.
CONCLUSION
By this report, it has been concluded that any organisation working in dynamic
environment should have to adopt best management approach to be competitive. Pure gym is one
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such organisation which has large number of members. An organisation should have to develop
some their strategic goals and work towards fulfilment of same. Pure GYM wants to expand their
number of clubs to around 200 by 2020, that might be their one of the goals. It will be achievable
by the application of suitable strategies. The company is engaged in providing exercise and
fitness training to different age groups. It is a leading fitness and health care firm in UK and has
presence in most of part of nation. The majority of their gym are open 24 hours a day, 7 days a
week and 365 days a year. Also cost charged by such firms are generally lesser. Thus, Pure Gym
is a successful firm today.
PART 2
Covered in poster
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REFERENCES
Books and Journals
Albarracin, D., Johnson, B.T. and Zanna, M.P. eds., 2014. The handbook of attitudes.
Psychology Press.
Castronovo, C. and Huang, L., 2012. Social media in an alternative marketing communication
model. Journal of Marketing Development and Competitiveness. 6(1). p.117.
Huhman, M., 2010. Impacting behavior by integrating health communication and
marketing. Health communication. 25(6-7). pp.617-618.
Ketter, E. and Avraham, E., 2012. The social revolution of place marketing: The growing power
of users in social media campaigns. Place Branding and Public Diplomacy. 8(4). pp.285-
294.
Khan, A. and Khan, R., 2012. Embracing new media in Fiji: the way forward for social network
marketing and communication strategies. Strategic Direction. 28(4). pp.3-5.
Kitchen, P.J. and Burgmann, I., 2010. Integrated marketing communication. John Wiley & Sons,
Ltd.
Smith, P.R. and Zook, Z., 2011. Marketing communications: integrating offline and online with
social media. Kogan Page.
Cummins, J. and Mullin, R., 2010. Sales promotion: How to create, implement and integrate
campaigns that really work. Kogan Page Publishers.
Papasolomou, I. and Melanthiou, Y., 2012. Social media: Marketing public relations’ new best
friend. Journal of Promotion Management. 18(3). pp.319-328.
Tiago, M.T.P.M.B. and Veríssimo, J.M.C., 2014. Digital marketing and social media: Why
bother?. Business Horizons. 57(6). pp.703-708.
Varadarajan, R., 2010. Strategic marketing and marketing strategy: domain, definition,
fundamental issues and foundational premises. Journal of the Academy of Marketing
Science. 38(2). pp.119-140.
Weinberg, B.D. and Pehlivan, E., 2011. Social spending: Managing the social media
mix. Business horizons. 54(3). pp.275-282.
Online
Modern management approach. 2017. [online]. Available through
<http://www.yourarticlelibrary.com/management/modern-management-theory-
quantitative-system-and-contingency-approaches-to-management/25621> [Accessed on
18th November 2017].
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