Page 11 - CIMA MCS Workbook August 2018 - Day 2 Suggested Solution

SUGGESTED SOLUTIONS

EXERCISE THREE (MARKETING)
Email
To: Jessica Treewood
From: You
Date: Today
Subject: RE: Marketing

Marketing mix

The marketing mix represents the variables a company can change so as to meet customer needs
profitably and efficiently. The 4Ps model is a popular framework for discussing this.

Product

GymFit membership is based on a ‘no frills’ concept and is on a no-contract basis. It is also
possible to access gym facilities on a daily basis by purchasing a day pass.

Members have access to high quality fitness equipment, work-out areas, can attend classes and
arrange individual coaching from a fitness instructor. The extensive use of technology reduces the
need for on-site staff e.g. receptionists and offers a simple online joining process, with the ability
to book classes online.

There is scope to further use technology to improve our offering to our members in the future.
We could e.g. develop a specialised fitness app offering tailored personal training advice/
programmes or go down the route of immersive experiences or video-on-demand.

Another idea that would enhance our offering would be if we consider offering courses such as a
six week course to improve lifestyle, enabling members to discover how to understand calories,
manage their weight, improve their confidence and perhaps quickly prepare healthy meals. They
could attend weekly meetings with a coach at the gym and meet others with similar goals, giving
them motivation and support.

Price

GymFit offers relatively low gym membership fees as a result of its ‘no frills’ concept. There are
three type of membership: solo, two gym and bundle membership (where the member can
access gyms nationwide).

A further split could be offered in terms of membership; that being off-peak membership. Access
would be limited to off-peak hours where members could enjoy a lower price if they train at
quieter times (we are open 24/7 afterall).

We could also give consideration to varying the price according to the age of the members e.g.
discounts for Senior Citizens and children. Another option would be to offer a discount for family/
couples membership. The latter could not only increase demand but also save on transaction
costs.

Another idea would be to not only offer day passes, but also week passes, for those not ready to
commit to full membership. Not only that, but we could also offer corporate membership at a
saving of e.g. 10% when a company signs their employees up to a corporate package.

KAPLAN PUBLISHING 67