SOM Project

Group 7
 ABOUT THE COMPANY

 An American chain of international co-ed fitness centers (gyms)

 Founded by Joe Gold in 1965
 Considered a landmark in bodybuilding world
 Featured in a major motion picture, Pumping Iron (1977), post
which the gym received an immense popularity and attention
 INDIAN CHAPTER

 Indian journey Started in 2002 in Mumbai

 Now in 60 cities with 120 gyms
 It is acknowledged for providing the finest equipment and
fitness knowledge available
 With state-of-the-art infrastructure it follows globally proven
fitness training modules and delivery methodology with an
essential focus on continuous up gradation through training
programs.
 With qualified nutritional counsellors and certified trainers, it
strives to be a comprehensive solution to the health and well-
being of its member.
 GOLD’S GYM RANCHI

 Established in 2013
 Located in Doranda
 The franchise comes under
the Regular category
 1200 members with 750 of
them being active.

 The gym is headed by the Managing Director, Ajit Akshay and the
Central Manager Mr. Kumar Devendra Singh looks after the day to day
operations of the gym.
 The Gym has 40 employees and is kept open since 05:30 in the
morning to 22:00 for all segments. .
 COMPETITORS & ENVIRONMENT

 Upscale locality

 Attracts high
income
segments
 As per JustDial,
there are more
than 60 gyms
in Ranchi.

Three major competitors

 Service concept

Service Concept-Gold’s Gym

Core Attributes Peripheral Attributes

Physical attributes Interactional attributes

Equipment
 Arrangement of equipment  Responsiveness of trainers
 10 Threads mills  User friendly website o Personalization of workouts
 4 Cross Trainers  Proper maintenance of based on customer’s goal
 10 spinners with TRX equipment  CRM maintenance
training  Training to new joiners  Workout motivations and
 weights from 5 - 100  AC in proper working assistance
pound conditions  Customer friendly service
 Yoga Mats  Space for personal  Continuous feedback for
 Gym Balls workouts improvements
 SERVICE CHARACTERISTICS

Customer participation: Customer participation is the most important factor for the
service offered by the Gold’s gym.
Simultaneity: The customer must go to the gym & consume the service while it is
being provided by the trainer.
Perishability: Inventory here is the gym equipment, which is for the members of the
gym. Here definition of the perishability is the life of the equipment, which is again
depend on the continuous servicing and daily usage time.
Intangibility: Gym equipment are tangible but trainer services are intangible, results
can be seen only after working out for few days.
Heterogeneity: Service provided to every user is different, as people join gym for
different reasons like body building, weight loss, weight gain, being fit, cardio exercise
etc. These service also depend upon the existing BMI or physical fit.
Non-transferable ownership: Physical facility usage, gym equipment are shared
services and owner ship is not transferred to the customer.
 SERVICE PACKAGE
Supporting Facility:
Gold’s gym is located in Doranda which is accessible very easily.
interior design is very good, walls are setup with mirrors and motivation quotes to
encourage the workout of the customers.
Gym occupies two floors of the complex I.e. ground and first floor
The Gym hosts major world class equipment, with 10 treadmills by the Brand
Freemotion. We noted that three of them were not working and needed repair.
The Gym has 4 Cross Trainers by Free motion again out of which 1 was out of order.
The Spinning Room has 10 spinners along with TRX training equipment.
The weights section had weights ranging from 5 to 100 pounds and also has a
stepper.
The Machine Section has Machines by Hoist.
The Group Exercise Room has Yoga Mats, Gym Balls.

Facilitating goods: Gym has wide variety of trainings sessions ranging from weight
loss to Yoga and meditation.
 SERVICE PACKAGE
○ Information:
○ Rate Chart
○ Offers
Weekly schedule
Progress Card
Fitness advice
 SERVICE PACKAGE
Explicit services:
Trainers are trained professional in fitness regimes.
They provide diet plans based on the customer’s exiting information and their goal to
achieve.
They are have tie up with the oil brands to promote good eating habits.

Implicit services:
 They have specific parking allotted for the Gym customers.
 They provide a convenience of working out anytime between 5.00 am to 10.00 pm.
 Music is being played during the workout session and TV which plays AV of gym
workout techniques.
 Sofas and magazines in the waiting area to avoid boredom
SERVICE BLUEPRINT
 Approach to service system design

Customer as Co-producer Approach

Customer is present whenever the service is being produced.
The following features illustrate some of the contributions that
customers can make in the delivery of services:

Self-Service:
The customer are the ones who themselves exercise, use gym
equipment and machines thus creating self-service mode.

Smoothening Service Demand:

Here as customers are co-producers of the demand, service can be
smoothened by adjusting their gym timings to match the trainers
and machine availability.
 Approach to service system design

Production Line Approach

Service Standardization:
Services need to be standardized across all the trainers and across
the locations; it also creates uniformity in service quality and easy
control.

Division of Labor:
The trainers are being assigned based upon specialization like
weight loss trainer, Zumba trainers or body building trainers.
 Competitive Advantage

Brand Name

Location

Facility & Equipment

Trainers

Servicescape
 Service winners, qualifiers
and losers

○ Service Losers:
○ Service losers are not maintain the confidentiality of the
customer information, discrimination of the customer based
upon their attributes, basic hygiene
○ Service Qualifiers:
○ Experienced and Professional staff
○ Well equipped facility & equipment
○ Service Winners:
○ Customization bonds are strong at Gold’s gym as trainers
provide personal attention to customers and keep asking them
about their progress.
○ Social bonds is perhaps the pillar for Gold’s gym as trainers &
management maintain close interpersonal relationships with the
customers. Also, most customers come at Gold’s in their own
groups; friends or family.
○
 SERVICESCAPE DESIGN
Exterior:
Landscape: The Gym is attached to a same complex along with Hotel Yuvraj
Palace, and Baylen de Louis Salon and Spa. The Gold’s Gym occupies the
Ground and the first floor, the Swimming Pool also known as Aqua 4 seasons
is in the Basement and the Salon comes up on the second floor. The Hotel
Yuvraj Palace come to the right in the picture.

Parking: The Gym shares its Parking space with the adjacent Hotel Yuvraj
Palace, and the Baylen de Louis Salon and Spa. The entire area can afford a
parking of 15 cars and around 30 two-wheelers.

Signage: The First floor of the complex clearly shows the hoardings of Gold’s
Gym making it easy and convenient for customers to trace the gym

Exterior Design: The Exterior Design as we can see is quite basic as

compared to the ones we see in Tier 1 cities and hence, doesn’t fancy the eye.
 SERVICESCAPE DESIGN
Facility Interior:
Ground Floor:
1. As one enters, there is a guard station where one has to make an entry of arrival
and exit.
2. Next comes the lobby area where the receptionists are seated who entertain the
new and existing customers. The sofas kept in this area look worn out and need to
be replaced.
3. The lobby area offers Newspapers and Health Magazines for customers to browse
through and a notice board to apprise customers of any changes or offers.
4. Post this, one has to pass through a Biometric Scanner (does not work) to enter
the Gym area.
5. The Accounts Office and the Managers Office sits on this floor and the Manager’s
office hosts the BMI Scanner and the weighing Machine (Timings: 7 AM to 11 AM).
6. Now, the ground floor of the gym also has the male and female locker rooms and
wash areas. The Locker rooms are fit with CCTV Cameras to keep a check on theft.
7. There are over 100 lockers and the locker rooms are equipped with Air Fresheners
by Wick.
 SERVICESCAPE DESIGN
○ 8. Post the Locker rooms, there is an entry to the Steam Room and the
Wash Areas. These areas are not covered by CCTVs to protect the privacy
of the customers.
○
○ 9. After our interaction with the customers we were made aware of the
fact the Steam Room works on rare occasions and is mostly shut.
○
○ 10. The ground floor also has Ambrosia Cafeteria which serves Fruits,
Smoothies (INR 100-120/-), Sandwiches (110-150/-), Juices (INR 70/-) and
Eggs (INR 10/- per piece). The customers are unhappy with the vendor at
the cafeteria and say that he is rude.
○
○ 11. There are two Water Dispensers on the ground floor, both are branded
(Eureka Forbes and Aqua Guard).
 SERVICESCAPE DESIGN

○ Air Quality: The Entire space is equipped with Llyod central AC which maintains an
ambient temperature for a workout.

○ Sound and Music: The Sound system employed by the Gym is one of the best in cla
with speakers from Bose. The Music that is played here is mostly EDM. It is quite
upbeat and hippie which is actually required in a Gym.

○ Employee Uniform: The Trainers have a common uniform but the other staff are
usually in casuals.

○ Virtual Servicescape: The Virtual servicescape is actually quite young, energetic an

exciting and has been developed by the pioneers in web design Mack and Mark Co.
The Virtual service is a great insight on the culture and quality that the customer ca
expect when one joins Gold’s Gym.
 ROLE OF E-SERVICESCAPE

○ Below details are available on their website:

○ 1. Join the Gym online
○ 2. Offers
○ 3. Locate any Gold’s Gym in India
○ 4. Joining the Gold’s Gym Fitness Institute
○ 5. Instructions for opening a Franchise
○ 6. G Nation
○ 7. Links to Gold’s Gym’s Social Media handles
 ETHICAL ISSUES

• OVER-PRICING
• OVER-PROMISING HEALTH OUTCOMES
• LONG TERM CONTRACTS
• BEHAVIORAL GUIDELINES
• PRODUCT QUALITY
• QUALIFICATION OF TRAINERS
• CUSTOMER PRIVACY