Virgin Active UK: Applying Marketing Principles and Practices

This report examines the marketing principles and practices employed by Virgin Active, a prominent health club chain in the UK. It delves into the company's positioning strategies, including segmentation, targeting, and positioning (STP) analysis, to understand how Virgin Active establishes its brand image and attracts its customer base. The report also analyzes the marketing mix (product, place, promotion, and people) to evaluate the effectiveness of Virgin Active's marketing efforts in the UK market, covering aspects such as the range of fitness services and facilities offered, the strategic placement of health clubs, promotional activities, and the role of skilled trainers. The report concludes by reflecting on the overall success of Virgin Active's marketing strategies in maintaining a competitive edge and fostering customer engagement. Desklib provides a platform for students to access similar solved assignments and study tools for academic support.

Principles and
Practices of Marketing
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Table of Contents
Introduction.....................................................................................................................................3
Positioning of the company Virgin Active......................................................................................3
Marketing mix of Virgin Active .....................................................................................................3
Product........................................................................................................................................3
Place............................................................................................................................................4
Promotion....................................................................................................................................6
People..........................................................................................................................................6
Evaluation of effectiveness of marketing efforts ............................................................................6
Conclusion ......................................................................................................................................6
References ......................................................................................................................................7
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Introduction
Marketing is defined as the process of promoting goods and services in order to induce
customer base of an organisation and to generate more revenues. An organisation is hihgly
indulged in marketing function as to effectively position its brand in the market and enhance
experience of consumers. In present time, the scope of marketing has increased to a significant
and companies are involved in formulation of various constructive strategies to effectively
promote marketing functions. This purpose of this report is to develop understanding of concepts
and strategies related to marketing function in context to an organisation. For the present report,
Virgin Active is chosen as the organisation on which this study is based. Virgin active is a chain
of health clubs which was established in 1999 and is headquartered in London, England. The
club has its presence in UK, Italy, south Africa, Australia, Singapore and three other locations.
This report discuss the elements of marketing mix considering its operations of UK. It also
discuss strategic decisions and relevant taught theories in its marketing efforts. This report
further reflects upon the effectiveness of their marketing efforts.
Positioning of the company Virgin Active
Market positioning is the quality to influence the customers view regarding a particular
product or brand. The objective of this method is to maintain the brand image in the eyes of the
its customers. Virgin active is UK based company which runs a chain of health clubs in various
countries such as South Africa, Botswana, Singapore, Australia etc. The company was founded
by Richard Branson in 1999 at Lancashire, UK.
Segmentation is the first step in STP analysis in which an organization has to create
various customers segments based on specific criteria and characteristics that a company has to
choose. It includes four types of segmentation such as Geographic segmentation, Demographic
segmentation, Behavioural segmentation and Psycho-graphic segmentation. Virgin active
segments their customer groups by conducting a research on customer's view about the health
and fitness clubs. The company basically does two types of segmentation that is Geographic and
Demographic (Kotler and et.al., 2019). They conduct geographic segmentation to find the
appropriate place to open a fitness club, so that the locality that lives nearby can afford to pay the
monthly or yearly charges of the gym. They also conduct demographic segmentation to find the
target customers according to the traits like gender, age or income.
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After segmentation the next strategy is to target the segmented groups according to
different factors such as profitability of each group, the potential growth of each group, etc. It
helps the organization to analyse the view of customers towards the company. It has been
evaluated that virgin active health clubs involves the selection of customers groups to provide
them the best services and to enhance the overall profitability of the company.
Positioning strategy is the last element of STP process, in which the company has to
create product positioning and marketing mix that is most likely appeal to the selected audience.
It allows an organization to set their product or service apart from the competition in the minds
of targeted customers. There are three positioning factors that helps a company to gain a
competitive advantage such as symbolic positioning, functional positioning and experimental
positioning (Craig Andrews, Shimp, 2017). With respect to Virgin Active, they develop new
strategies that includes various aspects such as demand of health and fitness club, quality of the
equipments in the gym, etc. to establish a good position in the market. These strategies helps the
company to achieve its goals in more effective and efficient manner. The company had the
whole grip of the fitness market by providing their customers best service by charging a lower
price for the gyms and providing the better quality of the equipments. This organization focuses
on providing each of its customers a better training to improve their health and body structure
that moreover increases the brand image of the fitness club in the eyes of the public.
Marketing mix of Virgin Active
Product
This element of marketing mix refers to the products and services that is provided by an
organisation in order to cater to the requirements of consumers. It is one of the major element
which have direct influence over consumers and their engagement in a company. In context to
Virgin Active, the company deals in providing services associated with health and fitness. This
chain of club has its presence in a number of locations offering a range of fitness product and
services to consumers. This company has effectively promoted its marketing functions through
developing their brand image by supporting a range of fitness activities. It aims at achieving
maximum customer engagement for the purpose of establishing goodwill and generating high
revenues. The company provides its customers with equipments for the purpose of performing
various exercises. This virgin active within UK aims to attract a number of individuals of
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different age groups towards availing their fitness services and facilities. Fitness and health have
became a top priority among individual and this was further emphasized more during the period
of pandemic as individuals were trying to engage in physical activities to make their immune
system strong to fight with Covid-19 virus. The virgin active provides individuals with a place
and equipments where fitness freaks and health enthusiasts could perform a range of workouts.
The company offers a wide range of variety in equipments and machines including treadmill,
elliptical machines, dumbbells, benches and bikes which enables individuals to exercise and
perform several physical activities. The chain of health clubs across all locations of UK recruits
highly skilled and competent trainers having perfect expertise in the area of gyming and fitness.
The company has induced its marketing efforts through emphasizing upon the relevance of their
services and facilities provided (Chaffey & Ellis-Chadwick, 2019). It enables individuals to
focus upon their health and physique through providing guidance and individual attention for the
purpose of constructively performing workouts. It offers their customers with special classes and
training sessions for the purpose of inducing its customer base and to make their brand stand out
in the market. This health club also indulged in offering numerous online classes which allows
individuals to gain expertise in fitness area for bodybuilding or satisfying other aspects for
health-conscious individuals. In addition to this, this club also supports leisure activities of
individuals through offering pool facilities as well as a place to indulge in racquet play. The
company also deals in offering spa facilities to individuals which provides them with a place to
relax and a way to deal with sore muscles. Moreover, this health club allows individuals to turn
their passion into career through availing professional training courses provided by the company
including dynamic reformer Pilates. The health club supports and facilitate a range of activities
of individuals and provides a place where they can perform physical workouts, enhance their
swimming skills and indulge in other leisure activities like racquet playing and spa facilities.
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figure 1: a variety of facilities available at virgin active
Place
This chain of health clubs has been established in a number of locations within UK
making it one of the most prominent and popular health club there, specially in London. Virgin
active is maintaining its presence and operating its activities over 38 clubs all over the UK and it
owns major number of clubs in London and other locations of UK including Bromley,
Northampton and Solihull. From Leeds and all the way down to Brighton, there clubs are
expanded in multiple locations which indicates its prominent and relevant market presence.
These clubs are having different sections for supporting a range of physical and leisure activities
which includes Pilates studios, pioneering grid classes, proper swimming pools. The wide range
of facilities that these clubs provide lead individuals to indulge in active lifestyle and involve
them in leisure and passionate hobbies. The club has its support office which is located in
Central London and is home to department of finance and IT where they host major courses. It is
attempting at effective marketing strategies through expanding its presence and catering to
requirements of individuals belonging to different regions (Richelieu and Webb, 2021). The
wide availability and approachability to club ensures maximum customer engagement and offers
a wide range of physical and spa facilities over its several locations. The large number of clubs
that are located in UK makes it stand out in the market and indicates its dominant presence
which induces its customer base. The health clubs of virgin active provides its customers with a
place ensuring constructive set up and a range of modern and trendy equipments. The place of
company's operations are supported by its systematic setup which ensures availability of
expensive equipments facilitating highly suggested workouts. The health clubs owned by virgin
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active let their customers avail the facilities supporting their leisure activities which including
pristine pool and racquet playing area. The ambience at their many clubs are accommodated with
steam room which enables people to indulge in relaxation activities where they could enjoy a
soothing experience. The names of the health clubs located at central London includes
Aldersgate, Broadgate, Canary Riverside, Chelsea, Bank, Moordale and several others (Virgin
Active, (2022)).
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figure 2: Gym floor at Aldersgate

Promotion
Virgin active is actively engaged in promotion of its brand to a great extent through
active engagement on online platforms as well as through advertising. The company aims to
attain maximum engagement of individuals through involving in huge marketing efforts. This
health club conducts and organise online and offline marketing campaigns through which it
attempts to maximise customer engagement and try to communicate their values by encouraging
interaction with its fellow members. The company maintains interaction and communicate with
individuals through providing relevant information on its official website. The organisation had
made available a range of information on google which clearly states where and how it performs
their operations. In order to induce their marketing efforts, the club communicate its values and
vision through its online websites and maintains a brand image. Moreover, the attractive pictures
of their facilities and ambience direct individuals towards availing its services as it denotes high
brand value and well established operations of their clubs. It provides a range of pictures
showing individuals working out along with showcasing of their pristine and beautiful
swimming pools as well as their relaxing and spa zones. In addition to this, the company is
engaged in constructive marketing efforts through actively engaging in posting content and
interacting with audience on their YouTube and Instagram platforms. The virgin active owns a
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figure 3: Relaxing area at Aldersgate

separate Instagram account for its UK operations where it actively promotes its values and
services through posting content and promoting its activities. The club owns 42.1k followers on
its Instagram account and it interact with its clients through these platforms. In addition to this, it
also has its YouTube channel where it has 5.7k subscribers (Upadhyay, Paul and Baber, 2022).
The company constantly promotes their values and activities through maintaining active
engagement with posting on YouTube as well as Instagram. On its YouTube channel, it
promotes activities like yoga, cardio, aerobics and communicate the importance of services and
facilities that the club provides. Moreover on their online websites they are involved in
constructive marketing efforts through directly interacting with individuals with providing a
range of activities. On their online sites, the club provides access to a range of courses, training
or memberships offers which can be availed at any time through individuals. This health club
provides all the required information on its online website with their contact number and various
options of joining and book a class etc. virgin active attempts to position its brand and promote
its activities mainly through interacting with customers online with providing all the values and
activities of its clubs (Virgin Active, (2022)).
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People
This element of marketing mix is associated with the stakeholders which are related to
the existence and operations of an organisation. In context to the virgin active, its major
stakeholders are its consumers and employees. The health club is operating in numerous location
s within UK owning a range of expertise and highly skilled professionals supporting the course
of operations in its health clubs. People associated with the virgin active are mainly its staff
members including trainers, professionals, support team, beauty and spa personnels and its client
s and members availing their services. There are a range of highly qualified professionals in the
health clubs of virgin active which are recruited for supporting a range of facilities and services
within the organisation. Employees are highly skilled having great expertise in the field of
fitness within the clubs of virgin active. The staff of virgin active are actively engaged in the
activities of virgin active and promote its values through maintaining personal interaction with
clients and regular members of the virgin active. The other stakeholders that are associated with
the company and come under this category of marketing mix are the members of the club which
are treated with respect, care and attention. The CEO of this chain of health clubs is Matthew
Bucknall who has constructively performed marketing efforts and positioned the company in a
market full of potential rivals. The club owned a range of personal coaches which are indulged in
providing individual attention to its regular clients. The club owns other staff members which are
qualified in spa activities and highly skilled in the area of massaging which is a core facility of
these clubs. The company has set certain standards to protect the interest of their stakeholders
majorly including its employees and clients and ensure strict compliance with these standards.
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Through their human stories the company aims to inspire existing members as well as future
members by featuring them and discussing their open and honest experiences. The company is
determined to commit to create a diverse and inclusive workplace where everyone feels the sense
of belongingness and maintains good interpersonal relationships.
Evaluation of effectiveness of marketing efforts
Effectiveness of marketing is the technique to measure and analyse that the strategies are
working properly which helps the company to meet their goals effectively to maximize the profit
and minimize the costs of the company. Virgin Active health clubs advertises their products and
services to make ensure that the company is still present in the market. The various strategies
used by the company are like introducing the loyalty schemes, to encourage customers to buy
their products, etc. helps them to expand their customers. The various ways of evaluating the
marketing plan that is considered by Virgin Active health club is discussed below:-
 Return on investment:- It is considered as the crucial criteria in the marketing plan
which gives an idea to the company that the money which is invested on advertising the
products provides profit or loss at the end of the financial year. This is the reason why
Virgin Active health club always measure the total amount that is invested on
advertisements and campaigns versus the amount of profit from the sale.
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 Customer responses and reactions:- These responses and reactions helps the Virgin
Active health club to modify the marketing plans and ideas so that it can attract more
customer's. This will help the organization to increase their customer base level that
moreover increases the sales and profitability of the company.
 Marketing partner response:- The marketing partner of Virgin Active helps them to
understand the effectiveness of marketing plan. They uncover the effectivity of the
efforts that is made by the company to create awareness about the product. This helps
the organisation to work more and improve the efficiency of the marketing plan.
 Reviewing Sales Number:- By reviewing the number of the sales it helps the firm to
determine whether the marketing is effective or ineffective. If the sales of the company
has increases as compared to the previous year it depicts that the marketing plan is
effective and if the sales has decreases it means the marketing plan is ineffective.
 Marketing expansion:- Marketing which make it ways into the new regions of the UK
by word of mouth of the customers or the natural growth due to providing an effective
product or service indicates that the marketing plan is effective and successful
(Toffoletti and Thorpe, 2018).
 Outside Salespersons Feedback:- Salespersons are those people who sell the products
or services to the customer's in the market. Feedback from these people who work on
the field are very much effective feedbacks that the company should consider and
improvise the marketing plan to attract more customer's. It helps the Virgin Active
health club to acknowledge about the effectiveness of the plan from their salespersons
and then get the ideas from them to improvise the marketing plan.
 Action of Competitors:- Competitors are the companies which are providing the
identical product or service to the consumers. The action of competitors can tell the
company about their performance, if the competitors are trying to do more campaigns or
advertisements it shows that the company is doing well and the rivalries wants to
compete but if the competitors are not doing any campaigns it depicts they are doing
great and the company have to focus on improving their marketing plan.
Conclusion
From the above report, it has been concluded that Virgin active conduct the process of
marketing in an effective manner ensuring its success and viability in the long run. The
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