Principles and Practices of Marketing: The Gym Group Strategy Analysis

This report provides a detailed analysis of The Gym Group's marketing strategies, focusing on the principles and practices employed by the UK-based fitness club. It begins with an introduction to The Gym Group, highlighting its history and vision. The report then critically evaluates the marketing mix elements (product, price, place, promotion) used by the company in its UK operations over the past three years to reinforce its market positioning. It examines the company's pricing strategies, distribution channels, and promotional activities, including recent campaigns targeting teenagers. The report also includes an STP (Segmentation, Targeting, and Positioning) analysis to identify The Gym Group's target market and competitive differentiation. Furthermore, it discusses the strategic decisions made by the company in its marketing efforts, linking them to relevant marketing theories. Finally, the report assesses the effectiveness of The Gym Group's marketing efforts, considering various factors that contribute to its success.

Principles and practices
of marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Marketing mix elements in UK operations to reinforce its positioning within the last three
years.............................................................................................................................................3
Marketing mix of The Gym Group..............................................................................................5
STP analysis of The Gym Group.................................................................................................9
Strategic decisions and relevant taught theories in marketing efforts of The Gym Group..........9
Effectiveness of marketing efforts.............................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The process of marketing is the significant function for an organisation and is the broader
concept that includes research, product design and development, promotion of products or
services. The principles and practices of marketing are concerned with the marketing ideas that
are used by a business in order to evolve effective marketing strategies. Principles of marketing
are those on which promotional strategies are designed. Practices and principles of marketing
helps an organisation in introducing products or services of the company to its customers. Within
this report, The Gym Group is a UK-based organisation that is taken into consideration to
demonstrate various prospects of this portfolio (Ayestarán, 2021). This report involves critical
evaluation on using various elements of marketing mix which are used by the company in its
business operations of United Kingdom. Moreover, strategic decisions along with the relevant
theories in marketing efforts of organisation are also going to be discussed in this portfolio.
Furthermore, there will also be a critical evaluation on the effectiveness of marketing efforts of
the respective company.
MAIN BODY
About the company
The Gym Group is a fitness club within the United Kingdom and was listed on the
London Stock Exchange in the year 2015. The organisation was founded in the year 2007 by
John Treharne and the first site of this company was in the West London. The respective
organisation has around 160 gyms having 668000 members in total. Some of the sites of The
Gym Group were acquired from Lifestyle Fitness and EasyGym. The Gym Group offers health
as well as fitness facilities of higher qualities at low cost (Bhatt, 2022). The vision of the
respective organisation is “To have a high performance level, diverse as well as engaged
manpower that love what they do. The organisation is an inclusive bunch and all people come
altogether in order to provide exceptional services to members and clients and to fellow
teammates”.
Marketing mix elements in UK operations to reinforce its positioning within the last three years
Positioning is referred to the concept of marketing that helps in creating boundaries that
states what the business is requiring for marketing their products as well as services. At
positioning stage, marketing department of The Gym Group develop a favourable influence of

products as well as services based on their potential customer-base. It is only possible through
using different elements of marketing mix that consists of product, price, place and promotion.
Positioning in products: Main motive of product positioning is totally supported by marketing
mix. The Gym Group is positioning its services within the market-place according to the
expectations of market share. Marketing mix facilitate organisation in making an analysis of
services that are provided by company and also analyses that services offered by organisation are
according to the perceptions of customers or not (Bush, Bell and Middlewood, 2019). Then it
positioned services of company in same way.
Positioning in price: The tool of marketing mix perform very huge amount of research that are
associated with the psychology of the pricing. The Gym Group is offering its services of superior
quality at higher prices. Therefore, they are positioning their services with the greater values
because of greater value of the brand and no compromises within the quality of the services.
Positioning in place: Within Gym industry, it is not easy for the players to reach out to their
potential customers. For this purpose, The Gym Group has to choose the most effective approach
in order to reach out to its market share. The tool of marketing mix facilitates the company in
making an analysis of the locations where the organisation can offer its services. The Gym
Group that operates 190 gyms across the United Kingdom analysed revenues got increased and
thereby profitability within the company.
Positioning in promotion: The promotion component of the marketing mix is referred to the
advertisements as well as performance of another promotional activities together with the group
of people. This element of the marketing mix helps The Gym Group in identifying the target
market as well as introducing effectiveness within the promotional activities (Donthu and et.al.,
2021). Within past three years, The Gym Group has introduced a new marketing campaign in
order to encourage as well as empower the teenagers that are from the age group of 16 to 18
years old. This is done for them so that they can take their first step towards working-out within
an objective to improve fitness of teen along with tackling exam anxiety.

Marketing mix of The Gym Group
The marketing strategy of The Gym Group analyses the organisation with the model of
marketing mix that includes 4Ps (Duan and Agalakova, 2019). The Gym Group is a fitness club
within the UK and is offering its health as well as fitness facilities of greater qualities and at low
cost. The company is making use of this kind of tool for combining tactics as well as strategies in

order to promote the brand awareness along with enhancing the sales volume. The marketing
mix of The Gym Group is discussed as below:
 Product: This is considered as heart of marketing mix because all operations of
marketing mix begin with a product or a service. The Gym Group has a wide variety of
exercise equipments such as strength training as well as cardiovascular equipments. The
organisation also provide certified and personal trainers to each person in order to act as a
guide for the particular programs (Hajoary, 2018). The respective company provides
classes of exercise for the groups that involves Pilates, Aerobics, Yoga, Latin Dance,
Group Cycling, Power Yoga, Boxing Studio, Basketball Court and many more.
 Price: The Gym Group is considered as a world-recognised health and fitness chain with
the superior quality equipments as well as training programs. The company adopted a
premium pricing strategy in order to offer its services because it has a faith that its
services of superior quality deserve the premium prices. In order to attract more
customers, the organisation is offering discounts to its new customers such as rebate for
its first few months. Prices of athletes are higher for the normal customers because they
need more formal training.
 Place: It is defined as physical distribution or place deals along with the transfer of
ownership of products or services from manufacturer to market share. In context to The
Gym Group, the organisation is having around 160 gyms and its first site was in West
London. The organisation is following direct channel of distribution in which the
customers of the company are directly taking health as well as fitness services from the
business.
 Promotion: This element of marketing mix includes various methods through which a
product or a service of the company can be promoted or advertised in order to capture a
large number of customers within the market place. This strategy helps the organisation
like The Gym Group in achieving higher level of sales volume as well as profitability
within the business (Hamilton, 2019). The respective organisation is using various
promotional tool for advertising its different health as well as fitness services such as
social media, online and offline marketing, digital marketing, etc. that would help
company in gaining a wide number of market share. The Gym Group is also organising

promotional campaigns to promote and advertise its high quality services to its potential
customer-base.
Promotional mix and activity:
Advertising
Advertising is related to the stimulation of demand of the product and services in the market with
the use of different types of tools and techniques (Key, Czaplewski and Ferguson, 2019).
Advertisement is one of the most important aspect of the business which helps to attract the
customers towards the company. The gym group is one of the fitness gym chain which operate

their business 24 by 7. It is very important for the management of group that they used effective
advertisement to promote their services in the market. There are different types of advertisements
are present in the market which can be used by management such as television advertising and
many more.
Public relations and publicity
The business of gym is one of the growing business of the world under which the public relations
plays a important role in the success of the organisation. It is essential for the managers of
company that they develop effective relations in the market which helps the company to increase
their visitors in the gym (Linda Wasche, 2021). Publicity is related to unpaid advertisement of
the company which is done due to happening of any controversy by the media coverage.
Sales promotion
It is related to those tool of the marketing under which the company has provide free gifts and
extra benefits on the sale of their product and services in the organisation. It is one of the
successful method of marketing which can be used by the management of Gym group. The
management of the group can provide the track suit on the admission on any customer in the
gym. This initiative of the company not only increases the admission of the customers but also
increases the loyalty of customers towards the company. It is very important for the managers to
advertise their sales promotion scheme in the market.
Personal selling
It is one of the most important method of marketing under which the company has appoints
different types of employees in the organisation which has reached to the houses of customers
and makes advertisement of their product and services in front of their customer. The
management of gym group can also used this method to advertise their services. It is essential for
them to appoints large number of employees and makes them able to convey the features of the
product (Listrova, Matviienko and Solomyna, 2020). The employees are provided proper training
so that different types of skills can be developed inn their personality.
Direct marketing
It is related to those market which the management of the organisation has used mail
services in marketing of their product and services. It is very important for the management of
The Gym group that they develop list of the potential buyers and used them in their marketing.

These mail addresses can be used by the management to advertise the features of their services
which they provide to their customers.
STP analysis of The Gym Group
The model of STP helps the organisation in identifying the best as well as the most
attractive target market for satisfying the needs and wants of the potential customers. In context
to The Gym Group, the three stages of STP model are explained as under:
 Segmentation: Within this stage, the company segments the market into different
categories and parts that states profitable, actionable as well as accessible along with
having potential growth (McLaughlin, McLaughlin and McLaughlin, 2018). It includes
different market segments like age, location, behaviours, etc. In relation to The Gym
Group, the company uses a mix of age group as well as location segmentation strategy
for targeting its potential market share and fulfilling their requirements.
 Targeting: At this stage, the organisation targets the best and the most attractive market
segments among the different segments of the segmentation stage. In context to The
Gym Group, the company has targeted age group of 18 to 45 years old people. It tends to
diverse the segmentation when it comes to customers with different taste as well as
preferences.
 Positioning: This is last stage of STP model and helps an organisation in differentiating
its products and services from its competitors that are available within the market place.
In context of The Gym Group, the company should use the promotional strategies of
social media platforms like Facebook, Twitter and Instagram, digital marketing, offline
marketing through print media and many more.
Strategic decisions and relevant taught theories in marketing efforts of The Gym Group
Strategic decisions intends to provide a competitive edge to the businesses and make
efforts for changing overall direction as well as scope of the organisation. These decisions are
significant for the organisation as they help in creating sustainable as well as healthy
environment of business (Odlin and Benson-Rea, 2021). The process of framing strategic
decisions involve different steps that are to be taken into consideration by the respective
organisation in order to overcome the problems or issues within business. In order to develop the
process of strategic decision-making, the administration of The Gym Group are required to
follow these different steps that are given as follows:

 Defining problems: It is first step at which managers of The Gym Group identify
problems that are occurred within the organisation. It is significant to define the
problems because by overcoming these issues the company can gain competitive
advantages also.
 Gathering information: This is the second step in which the administrators of the
company concentrates on accumulating information or data in relation to the problems
that are discussed in above step (Raciti, 2022). Information can be gathered through
making connections with different stakeholders of the business like employees,
customers, suppliers, shareholders an other people of The Gym Group.
 Developing and evaluating alternatives: Managers of The Gym Group can develop
different alternatives for the purpose of solving the problems that are occurred within the
business. These managers can take the suggestions from its workforce, customers and
many other people. This facilitates in gaining new thoughts that are crucial for the
business organisation. After evolving the alternatives, administration of the company is
required to examine those options for selecting the best which is suiting their needs.
 Selecting best operation and its execution: The Gym Group is needed to adopt the best
operation that is crucial for initiating the most attractive operation within workplace.
Administrators of company are required to get all members in order to initiate strategic
decisions because they can impact operations of business.
 Monitoring: At this stage, superiors of The Gym Group are required to monitor and
control strategies in order to check whether they are effectively employing or not within
workplace.
Marketing theories
There are various kinds of marketing theories that facilitates the company in the process
of attaining organisational goals and objectives and some of these theories are explained as
below:
Porter's Generic Theory helps in providing competitive benefits to the organisation and
such type of model consists of three strategies. The description of this model is given as follows
in context to The Gym Group:
 Cost leadership: The key objective of such strategy is to develop competitive edges for
the business and it also helps in facing competitors. This strategy allow The Gym Group

in increasing profit margins along with an aim of reducing overall business cost that
provides opportunities to them in enhancing customer-base.
 Differentiation: It assists company like The Gym Group in differentiating its services
from those of the rivalries within market (Rusko, 2018). The company can adopt new
technologies or making changes within their offers.
 Focus strategy: The main focus of this strategy is on declining overall business cost
along with differentiating organisation's services from services of its competitors. It can
be adopted by managers of The Gym Group in order to gain competitive advantages over
competitors.
Ansoff Matrix is another model that analyse different marketing strategies to attain
business growth. This model helps the company in taking decisions about actions that can be
taken as per market scenario. Explanation of different marketing strategies in given as under in
relation to The Gym Group:
 Market Penetration: In context to The Gym Group, existing services of company are
introduced in existing markets to enhance market share. Company has to adopt new
strategies like promotional strategies, reducing service price, etc. to gain new customer-
base.
 Product development: According to this strategy, new services of The Gym Group are
introduced within existing markets. Organisational managers should focus on research
and development process to expand service variety. This process helps managers in
understanding perceptions of market share and designing innovative solutions.
 Market development: The Gym Group can enter into new markets along with their
existing services and can expand market geographically or in new market segments (van
Scheers, 2018). By using highly updated technology, the company follow such strategy to
extend business operations in new market.
 Diversification: As per this strategy, The Gym Group can enter with its new services in
new markets. But this strategy involves higher risks as both services and markets are
new. However, risk can be lessen by diversifying its health and fitness services from
those of its competitors that assists company in achieving greater profitability.

Effectiveness of marketing efforts
Marketing efforts are considered as organisational resources that are dedicated by it for
fostering goods and services. Companies like The Gym Group make these efforts for enhancing
awareness of services or products to its potential customers to increase profitability.
 Marketing reach expansion: It assists in ensuring effectiveness of marketing efforts and
is significant for market expansion. By making such efforts The Gym Group can expand
its business in new regions along with customers recommendations and frame successful
services.
 Sales performance: It helps The Gym Group in its business growth and success though
evaluating marketing effectiveness (Yngfalk and Yngfalk, 2020). Increment in service
offerings results in enhancing profitability of company and depicts positive sign of
marketing efforts of organisation. The company is required to consider changes within
sales through price deviations.
 Customer responses: This is a reaction given by organisations to queries and actions of
market-base. Managers of The Gym Group can take responses through online mode and
customer click rate which allow them in revealing business performance. Efforts that are
made online provides business opportunities through receiving responses from market
share.
CONCLUSION
From above explanation of the report, it has been concluded that marketing concept is
associated with different business activities that are adopted by the company in order to enhance
its market share. Within this existing portfolio, the tool of marketing mix has been explained in
detail along with the positioning of its 4Ps in context to the given organisation. Moreover, there
has been also a description on the concept of strategic decisions in which different steps of taking
such decisions have been mentioned. Along with it, various kinds of marketing models also have
been explained within this portfolio that helped the business in achieving its objectives and goals
in an effective manner and also facilitated it in chasing competitive benefits over rivalries in
market. Furthermore, marketing efforts effectiveness has been discussed within this portfolio
involving different ways that assisted company in achieving its business growth and success.