Marketing Strategy

Marketing Strategy

Health club has emerged as one of the booming leisure industries which have been shaped up by the continued social influence of clients and the shifting demographic profiles. As pointed out by Smith (2008, p.82), health clubs have deployed more sophisticated leisure business entity that has presented the industry as a global economic determinant. She notes that with the services ranging from membership entitlement, reinforced client’s views, and motivational instruction, the health clubs have flourished as a reproduction arena for social stratifications. She states that the clubs have primarily promoted the use of physical fitness as an avenue of enhancing ethical mode in building personal character. It has thus interested most a good percentage of the general population. She notes that health clubs incorporate fitness programs that are not only intended to enhance vocational development, but also to ensure that personal productivity is increased.

According to Smith (2008, p.79), a health club continues to offer dynamic experience to its clients based on the value at which the club is judged and its ability to creating membership as it enhances its social connections. She points out that the health club marketing strategy should be stratified by services that not only highlight the cost for membership, but also present a distinguishing feature between the club and other clubs. She notes that the construction of health clubs, offering other healthcare services rather than being the usual leisure lifestyle business, has continued not only to boost its economic productivity, but also offer occupational satisfactions. This shows that a health club must transform and orient itself in a manner that competes for people’s discretional time and the corresponding disposable income.

Therefore, the economic productivity, social construction, and physical health fitness associated with health clubs establish the need of enhancing an effective marketing strategy. In addressing the marketing strategy of health clubs, the write-up identifies a branded health club chain and its marketing strategy and value creation process. It also analyzes and evaluates the key strengths and weaknesses of the existing marketing strategy. Moreover, the write up uses appropriate theories in suggesting alternative strategic approaches for increasing the market share, profitability, value creation, and sustainability of the health clubs.

Virgin Active Health Clubs

According to Branson (2010,p.86), Virgin Active Health Clubs is a global branded health club chain with excellent customer services that offers innovative, and value for money health club experiences. He points out that the health club chain comprises of more than one million members across the 251 globally situated clubs that are located in Africa, Europe and Australia. The health club chain normally initiates effective marketing and planning strategies that ensure that the health clubs have a clear roadmap of driving business growth through relentless addressing significant customer issues. He states that it is such marketing strategies that have made Virgin Active Health Clubs be a globally recognizable business entity.

As pointed out by Branson (2010, p.87), Virgin Active Health Clubs continuously exploit effective marketing strategy across its braches so as to effectively satisfy consumers. For instance, he notes that the South Africa’s Virgin Active which is a strong economic determinant in the country with more than 94 health clubs have launched an effective marketing strategy. He points out that the Virgin Active in South Africa has stratified its marketing strategy by enhancing close and successful working relationships with the country’s health insurance providers. By doing this, the health club not only intends to offer valuable rewards to its members at discounted gym membership entitlement in encouraging healthier lifestyles, but rather provides ground for more membership. He admits that this is one of the existing marketing strategies that create a valuable service rendering process that suits the disposable income from the customer.

According to Jacobs (2011, p.1), Virgin Active Health clubs normally sign a business agreement with key business entity in marketing their services. She notes that Virgin Active Clubs have engaged in an extensive business expansion bringing more health fitness services to the people. For instance, she points out that the Virgin Active health club branch in the United Kingdom signed an agreement in acquiring the UK’s Esporta business. She notes that such efforts were effectively initiated by the Virgin Active in 2005, when it acquired six clubs from Esporta in Spain in an attempt to enhance its service delivery process. She points out that the UK’s Esporta business operates 35 health and fitness clubs with additional 20 racquet clubs with membership of more than 150,000. The Esporta business provides the Virgin Active health club with strategic business involvement which enhances its ability in driving its economic scale. For instance, she notes that the Esporta’s racquets clubs present the Virgin Active club with additional diverse services to its members enabling them to enjoy various rights between clubs associated in the Virgin Active estates.

Hammond (2011, p.1) points out that Virgin Active Health clubs incorporated innovative In Touch member program as a marketing tool from which they receive feedback on the quality of services they offer. She points out that with 75,000 annual membership feedbacks in each health club branch, the Virgin Active Health clubs have focused on accepted investment planning strategies. For instance, she notes that the health club chains have been able to improve on gym equipment, showers and changing areas, and initiating effective group exercising programs.

As pointed out by Butcher (2010, p.1), Virgin Active Health clubs chain has deployed mobile coupons in their centers to help in enhancing customer marketing campaign. He asserts that the mobile coupon marketing strategy is based on technology enhancement in promoting mobile voucher redemption for their members. They intend to use such technological market strategies to ensure that more new members are able to enjoy the excellent range of fitness services rendered in their health fitness clubs. He claims that the Virgin Active uses mobile voucher technology not only to track and obtaine effective consumer data regarding the clubs’ fitness services, but also to prevent fraudulent practices that mark the faces of most health clubs.

On the other hand, Hickson (2010, p.1) points out that the Virgin Active uses marathon activities and events as a marketing strategy to promote their health club brand.  He states that the Virgin Active has established a five-year marketing strategy of sponsoring the London Triathlon events. Through the UK based Virgin Active health club, it has initiated an integrated marathon campaign in its website which provides real-life training instructions. Moreover, he points out that the Virgin Active announced the launching of various triathlon related fitness products that will train and prepare its participating members. He notes that such indoor triathlon activities which primarily aim at children and families are intended to not only use the Virgin Active fitness products health wisely, but also to boost the health club brands.

Strengths of Existing Virgin Active Health Clubs’ Marketing Strategy

Bird & McEwan (2011, p.59) point out that the existence of the new digitized technologies have strengthened the processes under which the marketing strategy is laid down and implemented. They note that the existence and compatibility of digitized programs in initiating the Virgin Active health fitness feedback programs have made it easier in enhancing marketing strategy. For instance, the customer feedback program that Virgin Active health clubs initiated decentralizes the clubs’ operations to consumers thereby creating business loyalty. They note that this has assisted the Virgin Active Health clubs in doing away with the traditional service delivery approaches which undermine consumer participation in the business. According to them, the Virgin Active feedback program is intended to engage with consumers elaborately addressing their concerns so as to offer lifetime membership to them. As they point out, well embedded customer-centric values that are inhibited during active customer participation are essential in enhancing business sustainability and profitability.

Additionally, Butcher (2010, p.1), points out that the efficiency of the mobile technology in promoting Virgin Active health clubs’ services has the strength of the marketing strategy. He notes that Virgin Active clubs’ members normally find it efficient to use the mobile voucher technology in obtaining their services. This makes it easier to implement the marketing strategy. He points out that the programs are designed in a manner that gives a consumer ample time not only in accessing free health fit services, but also as a campaign tool for more membership. For instance, he points out that the customers texting short word codes such as ‘VIRGINACTIVE’ to 60040, are able to receive a free day-long health fitness gym pass. Such customers’ motivation strategies normally instill customers’ loyalty to the business which is essential for the business sustenance and profitability.

According to Heffernan (2011, p.1), another key factor that strengthened the marketing strategy of the Virgin Active Health Clubs is the adequate financial capital. He points out that these health clubs are part of the Virgin group Companies that are owned by the billionaire Richard Branson. He notes that Branson has utilized his financial capital advantage as a tool in opening various Virgin Active Health clubs in different locations globally so as to stratify their marketing strategies. For instance, Richard Branson’s Virgin Group launched a Virgin Active health clubs expansion project that would see the use of $40 million in Australia in establishing more chains in promoting its marketing agenda (Hammond 2011, p.1).

On the other hand, Butcher (2010, p.1) points out that the credibility of the existing Virgin Active health clubs marketing strategy is what strengthens its proficiency in the market arena. He notes that the principle of initiating mobile voucher technology as a way of preventing fraudulent processes, promotes the clubs credibility. This has in turn enhances the enrollment of more new members. Moreover, he points out that the ability of the Virgin Active clubs to initiate mobile voucher campaign process especially in Britain has proven to be the main phase of implementing such marketing strategy.   

According to De & Meyer (2008, p, 153), the strong marketing reputation associated with Virgin Active health clubs is another key strength that has promoted its existing marketing strategy. They point out that the Virgin Active clubs have presented real valuable services to their customers. This has enabled them be ranked among the highly global competitors in the international market places. They note that the regular provision of health fitness related services and products by Virgin Active clubs have promoted their brand awareness. This has made it easier for them to initiate any marketing strategy.  Moreover, they point out that the personal reputation of Virgin Active Health clubs co-founder Richard Branson has branded the image of the organizations which has promoted its marketing efforts. This not only offered the members an opportunity to participate in the Virgin Active sponsorship campaign, but it instilled a sense of belonging to both the members and the general staff employees.

On the other hand, De & Meyer (2008, p, 155) point out the Virgin Active clubs’ organizational strength as another key factor that has promoted the implementation of their marketing strategy. They note that the Virgin Active integrated organizational structure is performed in a manner that does not present the businesses in federal perspective to be dictated by common investor. Therefore, the Virgin Active club initiated organizational structure that enables each member and the staff to actively participate in the service rendering thereby enhancing its marketing strategy. For instance, they note that global sponsoring of membership participation in the London Triathlons by Virgin Active clubs have promoted their brands which in turn strengthens its marketing strategy implementation process.

As pointed out by Hammond (2010, p.1), the ideal physical locations of Virgin Active Health Clubs together with the availability of adequate resources have been the key factors that strengthened their marketing strategy. She notes that the Virgin Active health clubs are situated in major cities such as Mid City Center and Sydney in Australia. This has effectively and adequately given the middle class the opportunity of enjoying their services. She asserts that the redefined gym experiences characterized by world class facilities are primarily enticing enough in attracting stakeholders’ participation in stratifying and implementing marketing strategy.

Weaknesses of the Existing Virgin Active Health Clubs’ Marketing Strategy

According to Butcher (2010, p.1), the Virgin Active Health clubs are not technologically efficient in designing customer feedback programs that promoted marketing strategy. He points out that the existing mobile voucher technology that is used by the Virgin Active clubs in Britain is a program designed by Eagle Eye Solution Company in England. The lack of such program designing knowledge has put the Virgin Active Health clubs at risks especially when such programs breach the organizational privacy thereby selling its marketing strategy to their business opponents.  In addition, he points out that the Virgin Active Health Clubs in such cases have to use a lot of money to employ special experts who train both the staff and the members on the effective usage of the programs. For instance, the mobile voucher technology is mobile based retailing marketing services that promoted business to customer participation which if not effectively deployed can result into membership withdrawal.

Hammond (2010, p.1) points out that the localization of the Virgin Active Health Clubs at the major cities affects their products’ and services’ marketing and selling at the local levels. He notes that Virgin Active Health clubs have established high class health facilities in most of the urban cities globally. This undermines the impact of their marketing strategy at the local level.  As Bird & McEwen (2011, p.61) point out, marketing strategy is only effective if the organization is able to dispose its marketing activities to all the marketing centers to adequately capture the interest of consumers. Therefore, they note that  limiting the marketing activities to the urban areas theVirgin Active Health club neglects the local population which plays an important role in enhancing it marketing strategy.

On the other hand, Anderson (2009, p.1) points pout that the laws which govern the terms and conditions of Virgin Active Health clubs normally hinder the implementation of its marketing strategy. He notes that the section of these laws at times restricts non-members access to their sites. This has in turn worked to bar the principle of selling their services and products to the customers in enhancing new membership enrollment. Moreover, he points out that the Virgin Active Health Clubs’ laws and regulations normally restrict complimentary visit even to non residing members. This also undermines the members experience in coping with the new marketing strategy. For instance, the UK Virgin Active Health Club normally offers complimentary visit to only its eligible members who are above 18 years old and reside in the United Kingdom, but are not currently members of the club (Anderson 2009, p.1). He points out that this normally limits the marketing activities and strategies that surround the complimentary visit that sensitizes members experience and knowledge concerning new marketing services.

Alternative Approaches of Increasing Virgin Active Health Clubs’ Market Share and Profits

As pointed out by Sears (2010, p.3), Virgin Active Health Clubs should initiate an effective advertisement campaign that promote their brand identities, and images that stir the consumers into their marketing processes. He notes that this approach can be illustratively accomplished through the utilization of the cognitive dissonance theory by the marketing personnel of these health clubs. According to him, the cognitive dissonance theory stipulates that the business entity should build their products and services in a high class and sophisticated manner that leaves the customers with demanding for only the best. He points out that Virgin Active Health Clubs should offer high quality products and services that inhibit superiority and uniqueness to their consumers.  

Sears (2010, p.4) points out that Virgin Active Health Clubs must rightfully deploy cognitive dissonance theory in effectively displaying their image so as to attract more new members. He notes that the health clubs should create a marketing image that depicts consumers as intelligent people who are characterized by good tastes.  This creates a positive expression on consumers’ involvement with the health clubs which not only increases new membership enrolment, but also enhances a high profitability marketing strategy.  For instance, Virgin Active Health Clubs should not portray themselves as health fitness centers that offer health assistance to physically disordered people such as the obese. He points out that the effective utilization of cognitive dissonance in their campaign marketing strategy can essentially create customers’ loyalty thereby leading to their sustainability.

According to Briggs, Qureshi & Reinig (2006, p.10), Virgin Active Health Clubs should utilize information technology to increase their organizational ability in creating value through intellectual capital. They point out that this is clearly stipulated in the Satisfaction Attainment Theory (SAT) that gives an insight in the involvement of each stakeholder in enhancing organizational value creation.  They note that the new digital information technology presents a professional social interactive networking that is essential in promoting and marketing business activities. For instance, social web based sites such as Facebook and Twitter, if properly incorporated in the Virgin Active Health Clubs’ organizational system will encourage stakeholders participations. This will enable these health clubs earn more intellectual capital from their stakeholders. Such additional capitals can be utilized in creating valuable products and services.

On the other hand, Argandona (2011, p.1) points out that deploying the theory of neoclassic in marketing strategy is the best way of creating effective economic value that enhances profitability.  He notes that the neoclassical theory states that the income incurred through consumer purchases is greater than the cost of producing the products and services. In addition, he points out that the theory depicts the need for Virgin Active Health Clubs to provide products that are able to satisfy the present customers’ needs without losing any future value. He notes that doing so, it is certain that the Virgin Active Health Clubs’ customers would still be willing to pay much higher prices for their products in future thereby increasing the profits. Therefore, Virgin Active Health Clubs should effectively use better technologies and resources in creating their neoclassical model of increasing their profit margins.

Conclusion

In conclusion, the write up has highlighted the market strategy as an essential tool in enhancing organizations’ marketing shares, profitability, value creation, and sustainability. It has pointed out the need for organizations to use financial capital investment as evident in the Virgin Active Health Clubs in expanding their chains by promoting their marketing strategies. There is also need for business organizations to use effective advertising strategies that promote their brand identities and image in creating consumers loyalty for their sustainability. Moreover, the paper has established the need for business to embrace new digital technology as a marketing tool that promotes stakeholders participation. This would enable them to adequately exploit the profitable intellectual capital from their stakeholders thereby increasing their ability for value creation.