Service Quality Assignment- Anytime Fitness Group PDF

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RMIT BACHELOR OF BUSINESS (MARKETING) MKTG 1268 SERVICE QUALITY

CLASS: LF01 GROUP 11 LECTURER: KWOK WAI LENG

Submitted by:

Saw Su Min

S3684647

Muhammad Zasli Bin Juma’eh

S3648404

Mak Siow Moon

S3709267

Poon Wei Heng

S3709368

Ray Cheng

S3683947

Dillon Tan

S3684522

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Contents EXECUTIVE SUMMARY ............................................................................................................ 6 1 Introduction and Business Overview ........................................................................................... 7 1.1 Background Information ....................................................................................................... 7 1.2 New Service Innovation ........................................................................................................ 7 1.2.1 Categorization of New Service Concept ........................................................................ 8 1.2.2 Driver of New Service .................................................................................................... 8 1.3 Positioning of New Service ................................................................................................... 9 1.3.1 Target Market ................................................................................................................. 9 1.3.2 Target Positioning of New Service ............................................................................... 10 1.3.3 Key Competitors ........................................................................................................... 11 1.3.4 Competitive Advantage and Appeal ............................................................................. 12 2 Analysis of New Service Concept Idea and Marketing Plan ..................................................... 13 2.1 Product and Branding .......................................................................................................... 13 2.1.1 Product .......................................................................................................................... 13 2.1.2 Core and Supplementary Services ................................................................................ 14 2.2 Pricing and Revenue Management...................................................................................... 18 2.3 Distributing Services ........................................................................................................... 22 2.4 Promotion ............................................................................................................................ 23 2.4.1 Direct Marketing through Email................................................................................... 23 2.4.2 Anytime Fitness Website/Outlets ................................................................................. 24 2.4.3 Sales Promotion ............................................................................................................ 24 2.4.4 AnytimeHealthy Ambassador....................................................................................... 25 2.4.5 Social Media ................................................................................................................. 26 2.4.6 Bus-Stop Billboard ....................................................................................................... 27 2.4.7 Customer Loyalty Program .......................................................................................... 28 2.5 Service Environment ........................................................................................................... 29 2.5.1 Ambient Condition ....................................................................................................... 29 2.5.2 Spatial Layout and Functionality .................................................................................. 31 2.5.3 Signs, Symbols and Artifacts........................................................................................ 32 2.5.4 The Russell model of Affect......................................................................................... 32 2.6 Process................................................................................................................................. 34 2.6.1 Service Blueprint .......................................................................................................... 34 2.6.2 Fail Points and Poka-Yokes .......................................................................................... 37 2.7 People .................................................................................................................................. 39 2.7.1 Selecting the Right People for the Job.......................................................................... 39 4

2.7.2 Ensuring the frontline has high service standard .......................................................... 39 2.7.3 Motivation of own people............................................................................................. 39 3 Conclusion ................................................................................................................................. 40 Appendices .................................................................................................................................... 45

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EXECUTIVE SUMMARY This report focuses on the thorough analysis of a new service concept called “AnytimeHealthy” that our team has designed for Anytime Fitness to gain a competitive advantage. The core service is to provide customized meal plans according to an individual’s fitness goals and dietary needs. To evaluate the feasibility of this idea, the report consists of information gathered and the application of theories together with concepts of service quality.

Our target market selected for this new service concept are millennials and therefore detailed analysis of their characteristics have been done to ensure they get optimal benefits from it.

Our analysis includes 7Ps of service to project an image and implementation of our concepts and results. Value-Added Pricing Strategy will be adopted to enhance the product by adding perceived values through intangible benefits such as knowledge of macronutrients and ease of convenience. AnytimeHealthy’s service will be promoting our products through digital and traditional marketing to attract our target audience.

Building a cafe as part of the gym that acts as a central kitchen will be the main collection point and delivery point for distributing services island wide. The service environment will be focusing on the external and internal environment that Anytime Fitness will provide for its consumers. Hiring the right people for the job will enhance the service standard that Anytime Fitness will provide. Lastly, a detailed service blueprint together with its potential fail points and poka-yokes have also been outlined in detail.

In conclusion, this new service line extension serves to aid Anytime Fitness to differentiate themselves from their competitors and provide its target market with top quality service to cater to their specific needs.

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1 Introduction and Business Overview 1.1 Background Information Established in 2002, Anytime Fitness is a 24-hour health and fitness club originated from America. They have expanded its market to 4,000 locations in 30 countries. One unique selling propositions of Anytime Fitness is they aim to be convenient and affordable for everyone.

Their mission is to “enrich lives through better health, convenience, community, and inspirationdriven franchise ownership” (Anytime Fitness, 2018).

Research has shown that Singaporeans have more disposable income and are willing to splurge to feel healthier and better (Melissa L, 2014). Despite the fact that Singaporeans are spending more time exercising, they are not eating correctly.

1.2 New Service Innovation At AnytimeHealthy, we have a package that offers professional health consultation that focuses on nutrition. Along with educating, we will also be preparing personalized meals according to the

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individual’s daily nutritional needs based on their own goals. These goals will be set and discussed under the direction of qualified and licensed food nutritionists and personal trainers.

We will be focusing specifically on working professionals who are already too busy with their lifestyle to even plan their nutrition and caloric intake.

1.2.1 Categorization of New Service Concept

Figure 1. Four broad categories of services

AnytimeHealthy falls under ‘People processing’ and ‘Mental Stimulus processing’. People processing. AnytimeHealthy programs require members to be physically present to have a 1-to-1 consultation with the nutritionist to find out goals, daily needs, and food preference. Mental stimulus processing. During the interaction, Nutritionist from AnytimeHealthy will be educating members about the importance of nutrition. 1.2.2 Driver of New Service Singaporeans today are adopting healthier lifestyles and are looking for a healthier diet. A survey by Nielsen Global Health showed that 57% of Singaporeans showed interest in following diets that are health conscious (Nielsen Global Health, 2017).

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The obesity rate in Singapore is rising, leading to the number of adults having more illnesses and a less active lifestyle (Health Promotion Board, 2016). This causes Singaporeans to relook at their bad eating habits and be more aware of the food they consume. The outcome of their unhealthy eating habits and sedentary lifestyles makes them realize the importance of leading a healthy lifestyle.

This emerging trend of eating healthily and leading an active lifestyle is further fueled by the successful implementation by the government through education programs in schools and health campaigns. In a national day speech by Prime Minister Lee in 2017, he encouraged Singaporeans to live healthier and add exercises into their daily routine. Prime Minister Lee also said that bad nutrition is the main factor that causes many types of illnesses such as diabetes which may lead to heart failure and kidney failure (Jalelah A, B, 2017).

Eating a well-balanced diet along with an active lifestyle have never been so well-received before and Singaporean’s consciousness on this issue was likely spurred by Prime Minister Lee’s national day speech on this topic about the importance of nutrition and exercise.

1.3 Positioning of New Service 1.3.1 Target Market

Demographic

PRIMARY

SECONDARY

Millennials

Generation X

● 20 to 34 years old

● 35 to 54 years old

● Working, Studying

● Working

● Fresh graduates looking

● Retiree

for jobs Psychographic

● Shopping,

Partying,

Workout,

Outdoor

● Shopping, Family Events, Outdoor Activities

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activities

● Entertainment, Socializing

● Travelling,

Fashion,

Health and wellness ● Celebrity

and

● Retiree ● Political, Business opinions

Peers

influence Behaviour

● Relaxation, Happiness

● Rewarding, Happiness

● Mid to High Loyalty,

● Low loyalty

Frequent Switches

● Mid-level users

● Willing to spend, Heavy user, Potential user

We have targeted millennials as our primary target as they are more health-conscious and less price-sensitive. When it comes to health, millennials today place more emphasis on working out and eating well (Fong, 2018). They also care a lot about their appearance and are willing to pay more to look and feel good (Tan-Wijaya, 2017).

1.3.2 Target Positioning of New Service

Figure 2. Positioning Map of New Service 10

Anytime Fitness is new with the food services. Hence, they are venturing into new segments to differentiate themselves from their competitor.

1.3.3 Key Competitors Direct Competitors - Ultimate Performance

Figure 3: Ultimate Performance The direct competitor has limitations regarding the options where consumers can collect their food. They only offer two options, either buying at the gym directly or by the delivery which requires them to have a minimum order of 2 meals a day for 5 days (Ultimate Performance, 2018). For AnytimeHealthy, we have no delivery restrictions and we allow customers to collect at various gym outlets and collection booth in CBD, where the majority of our target market is.

Ultimate Performance only offers 1000 or 1400 calorie options (Ultimate Performance, 2018). As individuals have different goals, the macronutrients should be calculated according to their individual body composition. As compared to Ultimate Performance, AnytimeHealthy competitive advantage would be to offer the option of meal preparations that are customised accordingly to the different goals that target users have, be it to gain muscle, lose weight, all according to their own body composition and lifestyle.

With these competitive advantages, it will increase the value offered to consumers and help us stand out among the competitors.

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Indirect Competitors - Saladstop!

Figure 4: SaladStop! Saladstop is one of the indirect competitors identified. Unlike AnytimeHealthy, Saladstop does not emphasize on macronutrients or individuals’ dietary goals and requirements. Both Saladstop and AnytimeHealthy provide delivery services and the option of dining in (Saladstop, 2018). Indirect Competitors - YOLO

Figure 5: YOLO YOLO serves halal-certified food where customers can customise their meals with the option of dining in or having it delivered. YOLO also offers a wide range of options in terms of the number of days or meals catered. Although they have any in-house nutritionist preparing all the meals, YOLO’s services do not focus on individual’s macronutrients (YOLO, 2018).

1.3.4 Competitive Advantage and Appeal Together with its core business, AnytimeHealthy will extend its main service by offering nutritional consultation and healthy personalised meals. With millennials being health-conscious, this creates a demand for it.

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Additionally, we can help consumers save time on grocery shopping, meal preparation, and not having to wash their kitchen utensils. With the additional time, they can focus on more productive tasks.

2 Analysis of New Service Concept Idea and Marketing Plan 2.1 Product and Branding 2.1.1 Product We would be setting up our core product with Anytime Fitness’s mission in mind, which is “to enrich lives through better health, convenience, community” (Anytime Fitness, 2018).

People have the misconception that being healthy is just about lifting weights and looking good without concerning about their food choices (Norris, R 2018). However, according to a research by Huffington Post (2017), for someone with a typical weight loss goal, the general rule is that 75% comes from diet and only 25% is from exercising.

A survey by Nielson (2017) which focuses on young adults states that 79% of Singaporeans are now making an effort to improve dietary choices to prevent unwanted health conditions like obesity, 75% of the surveyors are also willing to pay more for food that advocates positive health benefits.

Our personalised meals will be planned, prepared and customised for unique’s individual and their different set of goals to allow consumers to reach a health standard they are happy with.

We will be setting up a cafe for Anytime Fitness members as an extension of our service line, at our Serangoon Nex outlet. The cafe will act as a central kitchen and a collection point where food will be prepared and delivered to the CBD and various gyms. The CBD collection booth will be set

up

because

it

is

where

the

majority

of

our

target

market

is.

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Lastly, in accordance with their mission which is ‘to help enrich lives of members through community’, the cafe can also allow the public to relax after their work-out and have meals there as well, an attempt to bring like-minded individuals to come together.

2.1.2 Core and Supplementary Services

Figure 6: The Flower of Service

AnytimeHealthy core service is preparing customised meals to consumers with different needs and goals with the support of 8 supplementary services.

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Facilitating Services Delivery Information

● Information on packages and details about the importance of calculated meals will be provided online for interested consumers.

● Reviews, feedbacks and overall achievement results are encouraged on social media where people can enquire and clear doubts regarding our services. With the power of word-ofmouth, research has shown that consumers will be more inclined to check out an unfamiliar brand using the perceived judgement of users who have used the product. (Boon, L & Cindy, C 2014)

● Visual images of sample meals are available online, giving consumers a better understanding of the food consumed. Information on price and ingredients is available too. Order-Taking

● Due to the nature of our service, it is necessary for customers to be physically present at the gym to take the necessary measurements and interact with the nutritionist so that personalised meals would cater to the goals of customers more efficiently and effectively. ● The first round of order-taking will be done by the nutritionist. The customer will be shown a folder consisting of the different 5 meal choices and number of meals. Instead of filling up lengthy forms, the nutritionist will note down any special dietary preferences or requests and key into the database. ● Subsequent rounds of order-taking can be done online at the customer’s convenience. Customers will key in their unique membership identification code and plan their meals for the whole month.

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Billing

● The amount payable will first be notified to our consumer before the invoice is issued, making the billing process accurate to ensure efficient workflow and clear any miscommunications before payment being made.

● Aside accuracy, the billing and invoice processes is aimed to be efficient as customers may get frustrated due to the long waiting time. Payment

● We will offer a few payment methods; cash, cheque and credit card. It is necessary to make sure the cashier have enough cash to provide change.

● For customers making payments through cards, we must make sure the machine is portable so that customers do not have to leave their seats to make payment. Enhancing Service Delivery Consultation

● We can establish the desired meal plan for each individual by inquiring consumer’s requirements such as food preferences, time frame and other factors.

● The nutritionist will recommend insightful suggestions to consumer’s customised meal plan.

● Consumers would be able to visualise where they will be in the long-run, embracing positive change after completion of the customised package.

● “Solution selling” is used to persuade and see which package is 16

most suitable for our consumers. Hospitality

● Customers will always be greeted ...