Acme Fitness Gym in the university city of Oxbridge has been operating for several years and have especially focussed on collecting accurate data since 2014 with the hope that more data will drive better decision making. They do not have a marketing strategy and have little idea of how to market their gym as most of their business comes through word of mouth and referrals.
They do some local marketing (newspaper advertising from time to time), but struggle to recognise any correlation between what they do and sales achieved. They recognise year on year the trend is very similar but they are unable to explain it.
They believe their gym has the best facilities and offers the best deal in the region. The staff are motivated and well trained and the gym has an excellent conversion ratio for walk-ins.
Your job is to analyse the sales data since 2014 and provide a possible interpretation before going on to suggest a marketing strategy for Acme. You will be required to prepare a presentation with your proposals.
Clients sign up on the basis of a monthly fee of just £25, which they are contractually tied to paying for a year before the contract comes up for renewal.
The new signups data is presented below. It is then followed by similar data that has broken down the signups into age categories. Have a look at both graphics before speculating as to why it seems to follow the same pattern year on year. Once done look at the model answer – how far do you agree with its conclusions?
A quick look at the graphics seem to show that for each of the years that accurate data has been collected there have been significant peaks in January and September/October. Additionally figures show steady growth in the early to mid-summer before dropping off again by August. The worst times of year for new signups appear to be August and November/December.
The most likely explanation is
- The January peak is made up of people with good intentions to lose weight after the Christmas period and to get into better condition as a New Year’s resolution.
- The early to mid-summer performance is likely to be due to people wanting to achieve a beach body before going on holiday, and by August it is too late and this is why there is a sudden drop off.
- The September / October peak coincides with the new academic year and is likely to be influenced by an influx of new students who attend the nearby university. This conclusion is supported by the data in the Age Demographic chart. Furthermore parents who have sent their children off to school may well make up a part of this increase in business as they look to use the extra spare time they now find themselves with.
Now you have looked at the data put together a marketing presentation that you think will help Acme to achieve greater sales. You may wish to consider the following areas.
- When do you want to target your marketing?
- Who do you want to target with your marketing?
- What methods do you wish to use to get Acme’s name out in the public domain and how will you go about achieving this?
Consider how you can use skills that have already been developed to make your presentation more communicative and interesting for the target audience. You may wish to revise work done on looking at communicative theory, Making an Effective Powerpoint Presentation and Storytelling.
© Text and Images by Richard Horton 2018 (Omega Support Services)