Positioning Intangibles: Service Marketing at Rigs Fitness UK - Essay Sample

Introduction

Positioning intangible products to the consumer is a tasking endeavor because it involves the sale of products the consumer cannot own. Effective service delivery entails the proper presentation of experiences to the consumer. Service marketing refers to a range of strategies used to sell intangible products (Wirtz and Lovelock, 2016, p.3). Rigs Fitness will be used to discuss what service marketing entails. It is the UK's leading gym that offers an array of fitness training. Customers visiting Rigs can choose to develop functional fitness, Olympic weightlifting, strength and conditioning, yoga, and boxing training. It promises to assist clients in realizing their specific goals, which may be sports-oriented, athletic-physic focused, or mobility and flexibility-centered (Rigs Fitness, 2019 b). Rigs Fitness has several purpose-built facilities that are tailored to customer needs. It has four power tracks with lifting platforms, a full-sized pro-boxing ring, elite equipment that includes battle roper, sleds, and power rollers, strongman equipment, dumbbells, kettlebells, and bumper plates (Rigs Fitness, 2019a).

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Summary of Marketing Context

The value of the UK private health and fitness club market stood at PS3.234 billion in 2018 (Mintel, 2019, p.2). It is predicted that by 2023, the market will be valued at PS3.519 billion, with a predicted best-case value of PS3.744 billion (Mintel, 2019, p.2). As of 2018, there were an estimated 5.8 million customers of private health and fitness services in the UK (Mintel, 2019). One of the factors contributing to the positive growth of the market is the existence of low-cost gym operators who offer services that are both affordable and convenient for the consumers. Low-cost gyms are critical players in the market, with the possibility of up to 100 such facilities opening up each year, and offering round the clock services. The market is highly competitive and dynamic and is marked by a rise in gym franchise operations. Another contributor to the increased opportunity for gym facilities is the closure of high-street, with the resulting vacant retail units providing ample space. While almost every fitness facility has some level of adoption of technology in its operations, it is noteworthy that the role of personal interaction remains unmatched.

Rigs Fitness' has many direct competitors. Some of the industry's major players are PureGym, The Gym Group, Anytime Fitness, and DW Fitness First (Mintel, 2019, p.3). Indirect competitors include wellness centers, sports academies, and community fitness centers. The health and fitness industry offers numerous options for bodybuilding and wellness services. However, Rigs Fitness has carved a niche in the physical fitness area. In 2018, Rigs Fitness were winners of the national gym of the year (Rigs Fitness, 2019a). This impressive performance followed a similar performance at the regional levels in 2017, where it emerged winner of the regional gym of the year awards for Midlands and Wales (Rigs Fitness, 2019a). It has shown positive progress in its performance since being voted the UK's best new gym in 2013 and the best functional training center in 2016 (Rigs Fitness, 2019). Many factors have contributed to their performance. The facility boasts of a strong team of the coaching staff. It also appeals to customers of different ages and gender. The variety of services, including fat loss, body toning, and physical training attracts customers with different goals.

Analysis of Service Quality

The service industry is sustained through the asynchronous exchange of value between service providers and consumers. It plays a leading role in determining the stability of the micro and macroeconomics. Gym and Fitness services offered by Rigs Fitness are intangible and are perceived through what the customer achieves as improved physical strength and body shape. To realize this value, the customer must invest their time and commitment to the schedules and dietary requirements as advised. This element is essential for the sufficient enjoyment of the particular service offered because just like products, services have a life span. Its perishability arises from the fact that the service cannot be inventoried. This limitation also provides a challenge for Rigs Fitness since low membership translates into a loss of revenue, considering the operational costs that have to be met. As a solution, Rigs Fitness offers a free pass to attract new customers. Additionally, it provides discounted services that help it to operate competitively.

Health and fitness customers in the UK can be considered progressive. As of 2018, about 14 percent of the UK adult population had taken part in an online workout. The increased use of technology to consume health and fitness translates to reduced consideration for physical availability at a private health and fitness club or a boutique studio. Women score higher than men as regards the preference for online workouts. Social media plays an integral role in enabling that such services reach the consumers. Social media sites such as Facebook and YouTube are the preferred platforms for the customers. To successfully market its services, Rigs Fitness needs to perform a market segmentation. Presently, Rigs offers tiered service packages. The premium subscribers are the most profitable and enjoy exclusive services. To increase its competitiveness, the company provides information to its customers, as well as give them discounted services.

Service consumption is realized in three stages. There is the pre-purchase stage, service encounter, and post-encounter. As regards health and fitness services, the pre-purchase stage places little consideration of tangible attributes. Hence, health and fitness services are not enjoyed until the customer personally subscribes and avails themselves for the service. The service experience stage is where the active interaction with the customer begins. Customers subscribe, avail themselves to the facility, and experience what they have paid for. The final stage, the post-encounter stage, involves a review of the service (Mintel, 2019). Rigs Fitness performs well in as far as its interaction with customers is concerned. Foremost, the payment plans are affordable. Secondly, it has invested in modern, attractive fitness tools and equipment, and have a great team of coaches.

Recommendations for Service Improvement

The 7 Ps marketing is an essential strategy for a business to map out its competitive plan (Jain, 2017). It is offering a practical framework on which the business evaluates its strategy and designs the right mix of elements to realize its goals. The seven aspects of this model. The first element is the product or the service in the case of the service industry. Second is the price, which spells out how the business can adjust its pricing model to realize value for both the customer and the business. Thirdly, there is a place, which defines the distribution options that exist for the maximum positioning of product or service for convenience to the customer. The fourth element is the promotion. This element takes into consideration the available distribution channels that maximize product and service placement, as well as customer segmentation. The next element is physical evidence, which involves how the business appeals to its customers with regards to its investments. Sixthly, there are the element of people. Lastly, the component of partners that considers the engagement between the business and other industry players (Jain, 2017). The 7Ps can be applied to Rigs Fitness.

As regards the element of the product, Rigs Fitness needs to produce more online workout content. Besides content derived from social media sites such as YouTube and Facebook, the second-best area for health and fitness participation is gym visits joined via an aggregator website. Regarding the element of pricing, Rigs needs to maintain its prices below PS40 (Mintel, 2019, p.6). Presently, only 18 percent of health and fitness providers price their products at about PS15 (Mintel, 2019, p.7). Lowering its prices for basic subscriptions will help to attract more customers. With regards to the place, it is noteworthy that location is a leading driver than price. Customers are more likely to go to a gym with a friend. Therefore, placing facilities close to communities will give Rigs a competitive edge. With regards to promotion, the role of social media cannot be ignored. However, Rigs need to note that online word-of-mouth works best. Thus, using its loyal customers to market its services will be a positive move.

As regards physical evidence, Rigs has attractive equipment. However, selecting facilities that are strategically located and branding them well will distinguish it from its competitors. As regards people, it is noteworthy that the human experience is essential. Therefore, Rigs Fitness needs to introduce internal programs that enable its workforce to realize personal and team growth. This approach will develop the right attitudes for handling customers. Lastly, Rigs must consider partnerships with other players such as those that offer yoga, wellness services, nutritionists, and researchers so that it continuously improves the quality of its services.

References

Jain, M.K., 2017. An analysis of the marketing mix: 7Ps or more. International Journal of Advanced Higher Education Research & Development, 1(7).

Mintel, 2019. EXECUTIVE SUMMARY: HEALTH AND FITNESS CLUBS the UK, JULY 2018[PDF] (pp. 1-10). London: Mintel Group Ltd.

Rigs Fitness, 2019 b. What to expect at Rigs Fitness - Elite Performance Centre. Retrieved 2 August 2019, from http://www.rigsfitness.co.uk/elite-performance-centre/

Rigs Fitness, 2019a. Birmingham's Multi-Award-Winning Gym - Birmingham's Multi-Award-Winning Gym. Retrieved 2 August 2019, from https://www.rigsfitness.co.uk/

Wirtz, J., and Lovelock, C., 2016. Services marketing. World Scientific Publishing Company.