Principles and Practices of Marketing: Virgin Active Case Study

This report provides a comprehensive analysis of Virgin Active's marketing strategies, focusing on the marketing mix (4Ps) and the STP (Segmentation, Targeting, Positioning) model. It examines how Virgin Active positions itself in the market and how the elements of the marketing mix reinforce this positioning. The report details Virgin Active's product mix, pricing strategy, place (distribution) strategy, and promotional activities, including advertising, public relations, and social media marketing. It also reflects on the strategic decisions made by the company in relation to established marketing theories. Furthermore, the report discusses how Virgin Active evaluates the effectiveness of its marketing efforts through key performance indicators (KPIs) and social media feedback, highlighting the importance of customer satisfaction and continuous improvement in their marketing strategies to maintain a competitive edge in the fitness industry.

VIRGIN ACTIVE

TABLE OF CONTENTS
2. INTRODUCTION.......................................................................................................................3
MAIN BODY..................................................................................................................................3
3. Positioning...............................................................................................................................3
4. Four of the marketing mix P’s are used to reinforce positioning............................................4
Reflection of strategic decisions and theories.............................................................................6
5. The way company X evaluate the effectiveness of its marketing efforts................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

2. INTRODUCTION
Marketing mix refers to the various areas that focuses on the comprehensive marketing
plan. Marketing mix includes the common classification, that includes the 4Ps of marketing, this
refers to the place, promotion, price, people and product. Virgin active is a gym/ fitness
providing company. The report includes marketing mix, 4Ps of marketing and STP model of
modern marketing. The report also contains reflection of strategic decisions and its relation with
the theories or model. The report is consisted of analysis of the marketing mix and 4Ps of
marketing. The KPI system and social media comments also plays a very important role in
measuring the effectiveness of the Virgin active.
MAIN BODY
3. Positioning
STP (Segmenting, targeting and positioning)
STP(Segmenting, targeting and positioning): the STP is a marketing model, that help in
analysing the product offering and a method to communicate its benefits and value to the specific
group of people. This model is helpful in identifying the most valuable kind of customer’s
(Mun, Park, and Woo, 2022). By which they can develop products and marketing messages
informed to them. STP stands for: Segmentation of market: this refers to, segmenting the market as per the different groups
of people, such as on the basis of gender, age and behaviour, Targeting the customers: customers can be targeted through their income groups. Such as
high, average and low income group of people. This refers to the customized products for
different income group of customers.
 Positioning of product : this refers to placing of the right product at the place and right
time. A product should always be placed or positioned as per its need in the market, like
where the product should actually be placed in which location, at which time. In order to
reach its desirable customers.

4. Four of the marketing mix P’s are used to reinforce positioning
A marketing mix is a comprehension of 4ps:place, product, price, promotion. It is a
strategy to identify the position of the company. Marketing mix of the company define the
functioning of a company in competitive market. It is defined as the marketing tool that is used
by the firm to determine its objectives in the competitive market. The four Ps has been used to
know the concept which has been evolved to determine the concepts of person, process, and
physically evidencing a product.
The application of marketing mix will apply on the Virgin Active UK. The virgin active
is a company providing gym facilities to its customers. Its focus is on building the strength,
stability, stamina and soul. It has 1.4 million members across the world that are treated with care
respect and attention.
The marketing strategy of virgin actives covers the 7P's (Product, Price, Place,
Promotion, People, Process, Physical evidence) of the marketing mix. Several strategies like
product innovation, promotion planning etc. are used. Based on the marketing mix of virgin
active, these marketing strategies helps in achieving success.
Virgin active marketing mix and its strategy:
Product mix
The marketing mix for a fitness business is their services. For determine the marketing
mix of the fitness centre it is important to identify what kind of products and services they are
offering. The virgin active has created two groups for providing its services, the group in which
the club is divided are; YOUNG HEALTH GROUP, KIDS GROUP. The company is providing
its services on packages of one month, three months, one year. The customers are required to
choose their suitable as they like(Warrink,2018.). The packages are easy to be cancelled
whenever required by the customers. The strategy used by the fitness centre is risky but it is
proven to be successful for the health and fitness centre. The pressure to perform good and
provide better serves increases as there are options for the customer to walk out of the gym at
any time. These leads company to introduce new equipments that are not used by the other gyms.
And to indulge professional trainers to increase the proficiency of the gym.
Price mix

It is an old saying that the higher the price of products the company is required to create
high value for the customers. The prices offered by the virgin active are little high as compare to
other fitness centre. The pricing model used by the company is customer based pricing model. In
this model the company tries to provide a price that a customer should receive value for which
they have paid(Thabit and Raewf 2018). Virgin active has a policy of providing free trails for a
fixed period that makes it different from the other competitors.
Place mix
Virgin active with aim to attract large number of the population has located in an area
that is easily accessible by the people. They are focusing on providing convenience to customers
such as parking facilities and large spaces(Stead and Hastings, 2018). In order to provide a
healthy environment virgin active has been situated in an area that provides natural light and to
motivate the customer for work out they have designed the club in a unique way.
Along with the fitness club they have also builded spa zones, cafes, body classes in order
to provide various services under one roof. To survive in the competitive market the virgin active
is proving the services that are not provided by the other gym clubs. It is one of the leading
fitness club across the UK, it has nearly over 170 clubs and in total more than 900000 members.
With the providing services at the location they are also providing the services online as
well. Their policy is to focus on the customer satisfaction. Their comfort is utmost important so
the individual can choose to workout from home or by physically attaining the workout sessions.
For initiating the online+membership, they have created a virgin active app.
Promotional mix
Virgin active is fully aware of the importance of the advertising and creating the brand
value of the company. The focus area of virgin active is to attract customer at the globe stage.
For promoting its brand it uses various strategies that are as follows:
Advertising
The company is using advertisement strategy to promote its brand. The company is
advertising its services on various platform that are on televisions, radio, social media, website, s
its video series. The company use a slogan on every advertisement that is “get active with us”.
The advertising is done to target the customer from the 5 to 50 years age group of the
country(The Marketing Mix and the 4Ps of Marketing).
Public relations and publicity.

to maintain the image of the company, the company keeps face to face interactions with
public on a regular basis.
Events and experience
The company has entered into the partnership with the Rugby football union it's the
largest lifestyle brand, so it will help in attracting the customers of this brand as well. It has
entered into the three-year agreement to bring a digital fitness programme. It is also running
breast cancer awareness programmes every year.
Social media marketing.
It is using various well-known apps to promote its club. It is using Facebook to create its
own page on which all the details related to the club are provided to reduce the difficulties
associated with advertising its services.
People mix
People mix refers to the strategies which involves the direct interaction with the public to
survive in the market. Virgin active employs the trainer with the experience and having
knowledge of handling the customer. The staff working at the club is very supportive, and they
are available to help anytime(Lim 2021). This strategy is used to generate high customer loyalty.
Virgin active employs its employees on a permanent basis and the personal employ themselves,
so they have to pay a fixed price to the club.
Reflection of strategic decisions and theories.
a).
The 4Ps of marketing is a model that enhances the elements of the marketing mix. These
4Ps helps in taking the product and services to the market. it also helps to define the marketing
options in reference of price, product, promotion and place, which helps in offering meets of
customer needs, wants and demand (Jensen, R., 2022). By the 4Ps of marketing mix it is found
that, it plays a major role in the distribution and in maintaining the flow of goods, it is because it
ensures that the product must be placed at right place at the right time. if there will be no proper
placement of product will have held, the customers are likely to look somewhere else for the
product they needed or want.
The 4Ps of marketing helps in knowing the taste and preferences of the customer’s taste.
It is found that the marketing mix is a study, that solves all the problems of the business. It helps
virgin active in identifying the elements of products that includes the design, packaging,

branding and product improvising (Miao, and et.al 2022 ). It also helps in finding the elements
of price that includes pricing methods such as completion and discounts. Adopting this strategy
helps in finding out the potential of virgin active in respect of its effectiveness and efficiency. It
is also helpful in expansion and development of the business. The marketing mix aims to the
betterment of the business, in terms of profits, product development, placing product, promotion
of the product and the prices of the product. Placing the products at the right place at the right
time will lead to the high sells of the business.
Figure 1 : Promotion at Virgin active
(Source: Virgin active, 2021)
b).
Marketing mix includes the product, price, place and promotion. Keeping all these 4Ps at
right place at right time will results in effective development of the business. Analysing of
marketing mix involves the product development, that helps in betterment of product as per the
requirement of the customers in the market (Nian, and Sundararajan, 2022). The placing segment
is considered with location, in which the product has been placed, this decides the requirement of
the product in a particular area according to the needs of the customers (Hagen, and et.al 2022).
Putting the products in right place will help in covering great market by Virgin active. It will

result in huge profits and high sells of the product. analysis of the pricing sector results that, the
price should be relevant according to the customers of the market.
The promotion sector aims to the advertisement and to promote the product. Analysing
this sector refers to, promote the product it will helpful in building awareness about the product
in the market (Karray, Martín-Herrán, and Sigué, 2022). A well promoted and advertised
product is likely more popular in the market, this results in great sells of the product. Business
should make sure that an effective promotion of product plays an important role in making a
good place in customer’s mind. Positive promotion leads to create more popularity and more
customers for the product.
The most important role is played by the people in marketing mix. Because they are the
one who are directly affected by the product. People uses the product and sends reviews or
feedback about the product, which is the most important aspect in reference of growth and
development of the business (Zhang, and et.al 2022). People will create mouth publicity of the
product, that can be good or bad as per the quality of the product. The Marketing mix will impact
positively towards the growth and overall development of the business. This strategy helps in
making new strategies for the Virgin active. It will help in the betterment of the business. The
positive impacts of the marketing mix beneficial in making big profits. This will also impact
positively on the development of the product by taking the feedbacks and reviews of the
customers.
c).
Referencing the marketing mix strategy with STP marketing model, the STP stands for
Segmentation, Targeting and Positioning. This model is a popular because of using the top down
method by aiming at how a business can address to its customers (Cavusgil, and et.al 2022). The
STP marketing model is a most common and familiar strategic approach in the modern
marketing. This is one of the most commonly applied and used marketing models in practice, by
marketing experts they credit it for efficient, streamlined communications practice.
There are three major parts that are covered under STP, relating the product with
segmentation, because if the products are segmented such as for babies, youngster and adults.
This segmentation helps in reaching the products correctly to the customers as per the needs and
wants of the customers, it is easy to achieve the segmented market but the that product for
business. Targeting refers to the target of group of customers, who are perfect for the existing

product (McLeay, and et.al 2022.). Relating the target sector with people of marketing mix,
because targeting people in the market is the fore most duty of Virgin active, in order to attain its
objectives effectively. The positioning is refers to the location of the product, it means that
position or place the product at the right place at time right. Placing the products at right places
in the right time will results to reach at their right customers. Therefore, STP is most relevant
with linking the study of marketing mix. This model is used in market research and knowing the
taste and preferences of the customers, that helps virgin active in planning new strategies for the
growth and development of their business.
5. The way company X evaluate the effectiveness of its marketing efforts
Measuring the effectiveness of Virgin active, using KPI data
KPI data and social media comments. KPI stands for the key performance indicator. It is
quality measurement system that measures the values for the quality of data at scaling points at a
certain density of measurement. The data quality key performance indicators operationalize data
quality dimension. The KPI system is used in measuring the quality of data effectively. It is
useful in measuring the effectiveness of the business by measuring the :
 Customer acquisition cost: This cost refers to the amount of money an organization
Spends on gaining new customer’s. It is useful in measuring the return on investment of efforts
to upgrade their customers. CAC is calculated through adding the costs associated with
converting prospectus into customers, and diving that amount by the number of new customers
are acquired by the organization. Customer satisfaction value: The customers' satisfaction value relates to the creation of
superior satisfaction of the customers. If the customers are enough satisfied, they will
purchase the products again and again. This results in knowing the strength of the
organization, which helps in measuring and evaluating the effectiveness of the business
in the market.
 Revenue per customer: the revenue per customer measures the average income per user
measures the amount of money that an organization will expect to generate from an
single customer. This is calculated by dividing the total income of the business by its
total number of users. It is a effective tool that measures the effectiveness of business.

 Sales target: It is the most important tool in identifying the effectiveness of the business
in the market, because it refers to the total target expected sales vs. the total sales by an
organization. This is useful in measuring the total effectiveness of the business.
These are some examples of KPI, that helps in measuring the effectiveness of the business.
Social media is a digital technology that helps in sharing of ideas, views, thoughts and
information. The transmission is done through building of virtual networks and communities.
The social media comments are the part of sharing views, reviews and feedbacks on a particular
subject (Barjak, and et.al , 2022). These social media comments are useful in measuring the
effectiveness of Virgin active. The comments can negative and positive, that helps in measuring
the positive and negative results of the business. Posted comments on social media, gives an idea
of followers or customers who are influenced by Virgin active. It counts the number of
comments of followers who are sharing their views about the company, and giving their
feedbacks about the products. These feedbacks and views are useful in development of the
business. Therefore, social media comments and KPI system is successful a way of measuring
effectiveness of Virgin active. The social media likes and shares also plays a very important role
in measuring the effectiveness of the business, because the large number of likes on a products
post is directly relevant to its demand in the market. The product which is more liked and shared
by the followers is more liked by customers and it has more demand in the market. A product
gets popularity as per its counts on likes and shares on social media. More the likes and shares
means more the product is in demand. Accordingly, it is helpful in evaluating and measuring the
effectiveness of the business in the market. Social media is the most trending and commonly
used by the customers in now days. Therefore, it is now used as a measurement tool to check the
effectiveness of the business. The effectiveness can be measured through the number of
subscribers of the business, or the number of views the post is getting on its social media. These
factors of social media are useful in checking and measuring the effectiveness of the business.
CONCLUSION
From the above report it is concluded that the 4Ps of marketing mix plays an important
role understanding the market and customer’s taste and preferences. That helps in improving the
product. The 4Ps refers to the product, promotion, place, price and people. These factors are
considered very important in order to understand and acquire the knowledge about the taste and
preferences of the customers. The report summarizes that STP (segmenting, targeting and

positioning) of the product. The STP helps in attaining the organizational objectives effectively
and efficiently. This is also concluded that from the above report that, KPI system and social
media comments plays an important role in measuring the effectiveness of Virgin active. The
reflection of strategic decisions and the analysis of marketing mix using a relevant model, that
helps in identifying the effectiveness of marketing mix strategy in an organization.

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