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Marketing Plan in The celebrity Fitness (Kuala


Lumpur, Malaysia)

Data April 2011

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Mojtaba Saeidinia
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Celebrity Fitness

MARKETING PLAN

MOJTABA SAEIDINIA
Matrix No: 012011030010
DMK 5013 Marketing Management
Prof. Dr. Ahasanul Haque
MAY 2011

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Celebrity Fitness

TABLE OF CONTENTS

PAGE

I. Introduction .... 2

II. Executive Summary...... 2

III. Membership Types... 3

IV. Target Market.. 4

V. Marketing Strategy........ 4

VI. SWOT Analysis.... 5

VII. Core and Supplementary Elements.. 8

VIII. Marketing Plan...... 9

IX. Services Marketing 8ps...... 10

X. Area of Improvements Needed....... 11

XI. Comparison Study...... 13

XII. Evaluation of Results.... 15

XIII. References.... 16

Appendix...... 17

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Celebrity Fitness

I. Introduction:
Celebrity Fitness is one of Asia's largest health and fitness club operators, by number of clubs
and members. Celebrity Fitness currently has 27 clubs in 3 different countries, and operates 3
different gym brands: Celebrity Fitness, Celebrity Fitness Express, and Celebrity Fitness VIP.
Every Celebrity Fitness club offers tailored personal training, yoga, and aerobic fitness programs
for its members.

II. Executive Summary:


John Franklin , an early employee of 24 Hour Fitness in California and a fitness business
veteran, founded Celebrity Fitness in Jakarta in 2003 with a group of experienced fitness
industry executives, and commenced operations in February 2004 with the opening of Jakarta's
groundbreaking EX club. The Celebrity Fitness name was chosen for a reason: to convey that
each member can exercise as if they are a celebrity. The clubs are designed with Hollywood and
Beverly Hills' standards in mind, to pamper and give first quality service to our members.
Staying true to the entertainment ambiance, Celebrity Fitness' venues are exclusive malls so
that members can conveniently shop, dine or go to the cinema after working out in the gym.

Celebrity Fitness pioneered the concept of combining a fitness center and


entertainment ambiance in Indonesia. Moreover, Celebrity Fitness contributes tremendously to
the increased awareness of health and fitness in its operating markets today. Celebrity's gym
experience proved hugely popular, prompting the group to expand its gym network in Jakarta
and grow overseas (starting in 2005 with the 1 Utama club in Kuala Lumpur). As the premier
regional fitness center, Celebrity Fitness constantly pushes to provide the best service to its
members by tailoring programs and offerings for our members' satisfaction.

In December 2007, Navis Capital Partners ("Navis") united with Celebrity Fitness. Navis
contributes its various resources to assist Celebrity Fitness as it expands its product offerings in
its existing markets and abroad.

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Celebrity Fitness

Celebrity Fitness is the fastest growing fitness company in Asia with 41,000 active
members in Jakarta alone. The clubs in Surabaya, Kuala Lumpur and Penang have been getting
enthusiastic, positive feedback from members. Celebrity Fitness enjoys its image as a trendy
destination for the vigorous, urban and cosmopolitan community and will continue to strive to
provide a multitude of high quality, exciting, and entertaining work-out experiences to our
membersno matter what their fitness levels are. Celebrity Fitness launched India with the
club at JMD Mall Gurgaon, and will continue to develop the organization and expand our gym
network in the near future.

The company's corporate headquarters are located in the downtown business district of
Jakarta, Indonesia, and there is a regional corporate office in Kuala Lumpur.

III. Membership Types:

Celebrity Fitness has offered different types of membership packages since it opened, which
can generally be grouped in two categories: Terms (all membership fees are pre-paid upfront)
and Dues (membership fees are paid on a monthly basis). There are also different packages for
members who only want access to one club, as opposed to members who want access to all
clubs. All-clubs memberships are sometimes referred to as 'passport' memberships in the
industry. Since 2009, Celebrity Fitness sells primarily Dues memberships. The company also
offers corporate membership packages for corporations aiming to improve the health of their
employees.

It currently has around 45,000 members although its peak membership periods in Malaysia
normally begin at the start of the year and just after festive periods such as Hari Raya.

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Celebrity Fitness

IV. Target Market:

Target marketing linked to all members of society with all ages in this company because
nowadays bodybuilding is a popular sport in the community which means all of the population
in society could be a new customer. Obviously the main goal is the youth between 15 to 30
years old in this company because they have more free times than other people and also for
youth Fitness is most important issue to more attention and they have physical ability
necessary to do Heavy exercise.

V. Marketing Strategy:

As a service user Celebrity Fitness Kuala Lumpur, Celebrity Fitness as a fitness pioneer lifestyle
in Kuala Lumpur is a success. Strategies invite people to try the facilities for free and by opening
a high price first and then lower the offering price. Consumers usually tied with a one-year
agreement to use credit cards.

Positive thing that can be drawn:

1. Motivating a healthy lifestyle

2. Opening hours are long.

3. Encouraging the spirit of sport.

4. Could meet Indonesian artist

It is negative:

1. Strategy rather force people join your club members.

2. Bound to one year and fined 500,000 during stops, without explaining at the time of joining

3. Fitness consultant who after selling to the customer. If customers want to quit rather not
care.

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Celebrity Fitness

4. House music that is too tight. Target Market is only suitable for the generation of 18-35
years.

5. The members are bound by a year who want to quit do not want to renew again because of
bad experiences

6. Jam consultant working for too long working hours exceeds the Department of lab our, Sales
manager too chase the target.

Things that need to be corrected:

1. Trainers are not only serving as motivation for money. Since all customer needs are served
well.

2. Sales consultants who only chase the target. When a customer wants to transfer the card or
sell the card to be helped. After-sales service still exists not ignore it.

VI. SWOT Analysis:

Strength

Celebrity fitness have well maintain and modern gym equipment. This will let the
customer enjoy the finest equipment at celebrity fitness.

Online presence: Each member will have access to shop, schedule and supplement
provided online. All scheduling will be automated for fast and efficient communication with the
members.

Knowledgeable and friendly staff: Celebrity fitness staff consists of professionally


trained personnel that have a true passion for helping the customer and caring for the needs of
its members. This becomes apparent when you look at the staff's professional background.

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Celebrity Fitness

Clear vision of the market need: Celebrity fitness offer individual membership as well as
corporate membership for company. This will create very loyal, passionate members.

Celebrity Fitness offer Classes such as Body combat, Kickboxing, Yoga, Street jam,
Aerobic and many more new classes. This will keeps members interested and loyalty to the
club.

Celebrity Fitness offer numerous of gym center at Klang Valley that located on shopping
complex. This will offer flexibility to customer to choose their nearest fitness center.

Weakness

Although Celebrity Fitness has built a loyal following, but the brand is not yet a
household name.

Celebrity Fitness high membership fees relative to traditional gyms: Celebrity Fitness
services may not appeal to potential customers with a limited budget like student and fresh
graduate.

Celebrity Fitness also inability to work on a high volume business model.

Celebrity Fitness also using high costs of attracting a large corporate client. This will
decrease the turnover.

Celebrity Fitness also encounter high staff turnover because most of the front-line
employee are fresh graduate or part-timer

Competitors such as Fitness First offer a lot more fitness center to it member compare
with Celebrity Fitness.

Opportunity

Todays reputation and reliability of this company is a great opportunity to attract


clients and this trust is obtained according to the good record.

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Celebrity Fitness

Keeping costs in down and giving various discounts especially to students is one of the
companys opportunity to attract new customers.

Also updated and new equipment and professional trainers are opportunity for this
company.

Threat

Nowadays according to the world economic situation and all the community groups,
should be possible to keep costs in down level because the high costs is one of the potential
threat to loss customers and hence market..

As you know, now according to rival and strong companies, this company have to using
creativity and marketing strategies to attract customers, otherwise they easily are absorbed by
rival companies.

Another threat for these companies is their equipment which is not updated because
customers is always looking for new technologies and updated equipment and if the company
cannot provide this need, they do not continue their Cooperation with company.

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Celebrity Fitness

VII. Core and Supplementary Elements:

Core values: a fitness workout place

Supplementary Elements

Payment: Celebrity Fitness offer flexibility of payment for their gym membership.
Customer can choose to pay a sum of money by cash for certain year of services or they can
subscribe to EPP (easy payment plan) for payment by credit card.

Billing: Celebrity Fitness will issue a contract to customer regarding the sum of cash their
need to pay for the membership , if by EPP the contract will clear stated the duration and
monthly installment.

Information: Celebrity Fitness has salesperson located at each of their fitness club, if
customer walk-in their will explain the services available like location of each fitness center,
fitness classes available, personal trainer service and pricing.

Consultation: Celebrity Fitness has salesperson located at each of their fitness club,
member will get consultation whether their current weight is health or not, what fitness classes
fit them, which fitness center nearest to them, personal trainer services their required and
price that meet their need.

Hospitality: Celebrity Fitness required their staff to be dressed in formal in order to


show respect toward their customer, speaking in a polite manner and also language that
customer comfortable.

Safekeeping: Celebrity Fitness offers a free locker for the member to keep their
belonging while gym at the fitness center.

Exceptions: Besides fitness place like gym, classes and kickboxing: Celebrity Fitness also
offer exception like steam room and sauna room for the member at rest room.

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Celebrity Fitness

VIII. Marketing Plan:

One of the things that separates celebrity fitness Coaches from those out of work is a fitness
marketing plan. While it may sound surprising, it is true that most fitness Coaches out there are
good at what they do. So the differentiating factor often lies in the way that they choose to 'sell
their skills'.

A fitness marketing plan will determine whether or not you have any Customers to train. So if
you want to know the secret formula that has enabled the best trainers to have their hands full
of clients, you will be surprised to know that it is commission or word-of-mouth that is behind
their success.

In fact word-of-mouth can be the cheapest and the most potent marketing tool when it comes
to the business of fitness training. Often referred to as 'third party endorsements', referrals
need you to just do your job properly. There are no other expenses behind this fitness
marketing plan.

If you are good at what you do and thus your clients are satisfied, then it is highly likely that
they will recommend you to people within their respective circles of influence. So it may be
their family, friends, colleagues or other acquaintances who may be hearing a nice word or two
about you and getting to know how you work.

The best part is that, for this to happen you did not have to make a single sales pitch or publish
a paper-ad, So much for an expensive and time consuming fitness marketing plan.

So if you are confident that you are being able to make your customers happy by keeping them
in shape or even perhaps getting them into shape, then you might as well take a proactive
approach to harness the power of referral marketing. The key here is not to be coy about what
you are trying to do, but at the same time not being too aggressive with your approach.

So there is nothing wrong in asking an existing client for some contacts whom you would like to
approach, provided you give him a good reason such as the fact that you may be trying to

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Celebrity Fitness

expand your business. If you can take your client into confidence then he or she may give you
some useful leads.

You can also try to Proposal one or two free workout Meetings for friends and family of your
constant customers. There is a good chance that some of them may get hooked on to your
methods and then sign up as regular members.

Eventually as a part of this fitness marketing plan, you may start a 'rewards for referrals'
program.

IX. Services Marketing 8ps:

Product elements: Celebrity Fitness objective is offer a place for customer to fitness
workout. Besides the core value, Celebrity Fitness also provided supplementary services like
fitness classes, personal training services, free drinking machine, sauna room, steam room and
swimming pool.

Place and time: Celebrity Fitness has 8 fitness centers at Klang valley that strategic
located at shopping complex. This will easy for member to choose which nearest to their home
or work place. The operating of Celebrity Fitness is from 6am to 12 pm, this will enable member
to visit the fitness center at their convenience time.

Promotion and education: Celebrity Fitness had been doing promotion with banner and
flyer at their fitness center. On banner and flyer it also stated the membership plan. Besides
this they also are doing promotion on Face book, Friendster and twitter: regarding their
membership plan, answering feedback from user, latest promotion and fitness classes schedule
from them.

Price and other user outlays: Celebrity Fitness offer special discount for student and
corporate customer. Customer also can choose to pay full amount in cash or EPP by credit card.

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Celebrity Fitness

Besides this, personal trainer also will be provided at discounted price and member will enjoy
discounted price for buying supplement product.

Physical environment: Celebrity Fitness create very sporty and celebrity image for their
member. All the equipment provides are in good condition and modern. The fitness center
equipped with comfortable lightning, suitable music and TV program. All staff will be dressed in
formal.

Process: Celebrity Fitness also provided member with instruction how to body building
or slimming program. Member also can give their feedback regarding the club operation. Each
machine with given instruction to use of the fitness machine or equipment and make sure the
equipment is up-to- date.

People- Celebrity Fitness staff had certified trainer certificate that approved by
international body, this will ensure all information member get is professional. Team building
also had been implementing by Celebrity Fitness to ensure smooth team work to serve the
customer better.

Productivity and Quality: Celebrity Fitness management always will be on fitness center
to monitoring the member behavior and what is their want or need. Continuous improved had
been done to improve the services quality like member will enjoy discount benefit from
selected retailed in the shopping complex. The fitness equipment is up-to-date and fitness
classes are what the member wants.

X. Area of Improvements Needed:

Changing room: changing room section need to be more hygiene by implement a


schedule of cleaning for every 1 hour.

Secured-locker system: Currently Celebrity Fitness provide locker but member need to
bring along lock. So Celebrity fitness needs to implement secured-locker system for it member

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Celebrity Fitness

that just need to flash their card at locker to lock. By implement this can ensure that the locker
is more secured and avoid hijacking by thief.

Bathroom area: management need to be more cautious about the facilities provided, by
having a routine check-up, maintaining the liquid inside the shampoo liquid machine and make
sure each of the bathrooms consist of soap holder. Bathroom area needs to confirm with water
supplying and if the issue really unavoidable, management need to inform the member before
they enter Celebrity fitness.

Gym area: Frequently check about the weight machine and weight equipment is very
important because it can avoid the machine/equipment breakdown that causing inconvenience
to it club member and wasting their time. The duration to fix up the spoil machine/equipment
is very important, so the management need to set a faster time frame to repair each of the
machine/ equipment.

General facilities: General facilities need improvement in swimming pool, towel services
and indoor studio. At the start swimming pool need to be more hygiene and the level of
chlorine amount need to fill accordingly the international standard because if more will bring
harm to club member skin or hair. So a routine checkup for swimming pool must be handling
carefully to avoid dissatisfaction to club member. Besides this, the towel provided to member
need to be at good condition, clean and without stink on it. By this, it will increase the
satisfaction of member because it creates a good feeling when using the tower. At last the
indoor studio needs to be increase the space because to meet the demand of member that
wants to attend the class. With this, all members can attend the class and it will increase the
satisfaction of member.

Services and security: Free juice services must be included at Celebrity fitness because it
will increase the image of Celebrity fitness that always provided add-on services to its member
and really care about the member satisfaction. Besides this, the frontline staffs at Celebrity
fitness needs to attend training regarding customer services because it will improve the front
line staff in customer first attitude. By training and free juice it will increase satisfaction of

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Celebrity Fitness

club member. At last for security concern Celebrity fitness need to implement a computerized
automated gate at the club entry because it can block unauthorized person to enter the club
that will bring harm to the club member. With security tighten up, the club member will be
feeling more safety when doing their work-out and it surely will increase the satisfaction of club
member.

XI. Comparison Study:

Fitness first is a major player for fitness industry in Malaysia. Comparisons have been made
make between fitness first and celebrity fitness. The finding shows fitness first offer something
that have been miss out or not on par by celebrity fitness:

11 clubs at Klang valley compare with Celebrity fitness only have 8 clubs. This will let
customer feel Fitness first have more option to choose and more convenience.

Personalized audio visual entertainment, whether you enjoy watching music videos,
news or the latest sporting event. Celebrity fitness also offers audio visual entertainment but
cant personalize and just can watch what they offer. This will let customer feel Fitness first
have more option to choose and fulfill their needs.

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Celebrity Fitness

Member lounge & juice bar: place to unwind after your workout. Relax, read the papers,
chat with other members and friends as well as enjoy complimentary soft drinks, tea and coffee
in the members lounge for free. Celebrity fitness doesnt offer any of free drink or lounge. This
exception sure will increase loyalty of Fitness First member and attract more customers to
them.

DVD & VCD rental: Fitness first is the first chain of health clubs to introduce a members'
complimentary DVD/VCD facility. Today, members have a choice of over 500 top movie titles to
choose from at absolutely no cost. Videos are provided on a 48-hour loan service and all need is
your membership card. Celebrity fitness doesnt offer these services. This exception sure will
make the customer happier of Fitness First because they do something of the expectation.

Security: For the convenience and safety of Fitness First members, all entries to the
clubs are based on computerized automated gates where only members can access the clubs by
swiping their membership cards at the gates. Celebrity fitness doesnt offer these services. This
safekeeping will increase the Fitness First member trust.

Online customize program: Fit Sync offers the security of your own personalized account
and verification password. Whether it is verifying your own sessions, tracking session balances
on-line or through electronic mail updates or monitoring your Personal Training package
validity, Fit Sync is the online system to help you plan and get the most from your Personal
Training program. Celebrity fitness doesnt offer these services. The hospitality of this program
is something Celebrity Finest need to learn about it.

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Celebrity Fitness

XII. Evaluation of Results:

According to research presented we found that celebrity fitness is one of the famous and
successful companies in the sports market and has managed companies with their plans and
strategies.

I think this company has been successful so far but according to the present competitive
market among all companies have their own plans and build strength, for example, one of the
basic tasks is more advertising than past in society for people To communicate with company's
brand. When people need to select a reputable brand to ensure, celebrity fitness can be the
best choice for them.

Celebrity Fitness company with continues current trend and improve it can be more successful
than before and allocate a larger share of the market to itself.

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Celebrity Fitness

XIII. References:

1. www.celebrityfitness.com

2. California Press Release, Bernama News

3. Miss Malaysia finalists learn the Zumba, The Star

4. Celebrity Fitness JMD, the Hindu Business Line.

5. http://www.wikipedia.org/

6. http://EzineArticles.com/3184448

7. www.infotoday.com/mls/jun99/how-to.html

8. http://EzineArticles.com/?expert=Chris_McCombs

9. www.celebrityfitness.co.id/index.php/locations/malaysia.html

10. www.websitemarketingplan.com

11. www.celebrityfitness.co.id/.../174-celebrity-fitness-enhances-gym-network-in-

malaysia.html

12. www.celebrityfitness.co.id/.../171-celebrity-fitness-1st-marketing-gathering.html

13. www.marketing-interactive.com/news/1558

14. www.fitnessbusinessinterviews.com/fitness-marketing-plan-that-kills-zach-hunt/

15. www.ehow.com/fitness-marketing

16. www.biztree.com

17. www.marketplace-live.com

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Celebrity Fitness

Appendix:

1. Member card

2. Membership agreement

3. Official receipt

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