FINAL PROJECT

Total grade
SUBJECT NAME: SERVICES MARKETING

LECTURE: Le Thi Mai, Ph.D.

SEMESTER: 1st, 2023-2024

STUDENT’S NAME: Signature’s students

1. Nguyen Thi Khanh Linh -20070230
2. Nguyen Khanh Huyen- 20070199
3. Vu Khanh Huyen - 21070432
4. Hoang Sach Kien - 19071050
5. Nguyen Anh Quan- 21070043

SUBMISSION DATE: 11/6/2024

DECLARATION: We declare that

 No part of this project has been copied from any other person’s work except
where the due acknowledgement is made in the text.
 We agree that the contributions of each member are as following:

Student name Percentage of Contribution

1. Nguyen Thi Khanh Linh 20%

2. Nguyen Khanh Huyen 20%

3. Vu Khanh Huyen 20%

4. Hoang Sach Kien 20%

5. Nguyen Anh Quan 20%

Total 100%

Signature (Group leader): …………………………….Date: 11/6/2024

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 Table of contents
PART I. INTRODUCTION. ................................................................................................... 3
1. General Information .......................................................................................................4
2. Mission, Vision and Core Value ....................................................................................4
3. Environment analysis in VietNam ................................................................................. 5
PART II. UNDERSTANDING SERVICE PRODUCTS, MARKETS, AND
CUSTOMERS OF ELITTE. ...................................................................................................5
1. Current marketing situational analysis ...........................................................................5
2. Segmentation, Targeting and Positioning of Elite Fitness .............................................8
PART III. SERVICES MARKETING OF ELITE FITNESS( Marketing Mix (7Ps)) ... 11
1. Product Decision. .........................................................................................................11
2. Pricing .......................................................................................................................... 16
3. Place And Distribution .................................................................................................18
4. Promotion. (Service Marketing Communication 5Ws) ............................................... 20
5. Process ......................................................................................................................... 27
6. People ...........................................................................................................................29
7. Physical Evidence ........................................................................................................ 31
PART IV. OPPORTUNITY ANALYSIS SWOT MODEL ANALYSIS. ........................ 33
1. Opportunity Analysis for Elite Fitness ....................................................................... 33
2.SWOT Model Analysis for Elite Fitness ...................................................................... 34
PART V. RECOMMENDATION AND CONCLUSION. ................................................ 36
1. Recommendation ......................................................................................................... 36
2. Conclusion ................................................................................................................... 38
PART VI. CASE STUDY ...................................................................................................... 39
1. Summary case study. ................................................................................................... 39
2. Recommendation for case study .................................................................................. 39
PART VII. REFERENCE ..................................................................................................... 40

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 List of Figures

Figure 1: Leading fitness gym brands in Vietnam as of March 2023, by number of studios 5

Figure 2: Revenue of some fitness gym brand in Viet Nam ............................................................6

Figure 3: Positioning map of Elite Fitness ...................................................................................10

Figure 4: Components of a services product’ Elite ......................................................................11

Figure 5: Home page of Elite Fitness ...........................................................................................13

Figure 6: Registering on the website ............................................................................................ 13

Figure 7: Employee consultant at Elite Fitness ............................................................................14

Figure 8: Lockers at Elite Fitness ................................................................................................ 14

Figure 9: The training schedule at Xuân Diệu Club in June ........................................................15

Figure 11: Website of Elite Fitness .............................................................................................. 23

Figure 12: Instagram account of Elite Fitness ............................................................................. 23

Figure 13: Youtube Channel of Elite Fitness ............................................................................... 24

Figure 14 : Service processes of Elite Fitness .............................................................................27

Figure 15 : Function of Elite Fitness ............................................................................................29

Figure 16 : SWOT Model Analysis for Elite Fitness .................................................................... 34

List of Tables

Table 1: Customer segmentation of Elite Fitness ...........................................................................9

Table 2: The workout programs at Elite Fitness .......................................................................... 12

Table 3: Membership Tier of Elite Fitness ................................................................................... 16

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 PART I. INTRODUCTION.

1. General Information

Elite Fitness is a chain of five-star sports clubs in Vietnam with top international standards.
The Elite fitness brand was born in 2010 and has now been 14 years old. The achievements
so far are that there have been 14 clubs opened nationwide, of which 10 clubs were opened in
Hanoi, 1 clubs in Vinh, Da Nang and 2 clubs in Ho Chi Minh City. Elite Fitness is not simply
a sports business. Moreover, for Elite, it is also the passion and enthusiasm of the founders in
raising awareness and providing support to the Vietnamese community regarding health and
exercise. Elite believes that everyone can find strength in their lives - to live healthier and
stronger. That is the core factor for success.

Elite Fitness is famous for its diverse and quality services. With modern and diverse
equipment, customers have every convenience to achieve their health goals. In particular,
personal training services help create personalized exercise plans and achieve the best results.
A variety of guided classes and fitness groups such as yoga, pilates, zumba, and boxing help
customers find their interests and fitness goals. In addition, restorative physical services such
as massage and spa help customers have a relaxing and regenerating experience. More
importantly, Elite Fitness creates a positive and supportive community, helping customers
achieve their best health and performance.

2. Mission, Vision and Core Value

Vision: Elite fitness wishes to become a pioneering multi-industry economic group, aiming
for creative, quality and sustainable investment in Vietnam

Mission: Elite's mission is to bring the right awareness to the community about physical
training to have great health and spirit, to always be steadfast in overcoming all challenges in
life.

Core-Value: At Elite fitness we focus on 5 main core values ​ ​ including

Connection: Elite Center wants to connect with customers, colleagues and connect itself with
work

Mastery: Elite fitness wants to master their work so that no one has to remind them or be
delayed because of their work.

Human core: For the club, the top priority is members and customers. Elite Fitness was born
for the Vietnamese market and people

Maximize: Elite always tries to maximize efficiency and productivity, while also improving
service quality and service, and innovating facilities.

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Teammates: Here, we always enhance team spirit. The company cooperates within
departments and between departments to achieve the highest work performance.

3. Environment analysis in VietNam

Overall, the revenue of the sports services industry has grown strongly with a positive
double-digit CAGR in recent times in Vietnam. The market is considered to be developing
with high potential for future expansion, including both urban center and suburban areas.
Thanks to various factors supporting growth, including brands spending large amounts of
money to promote their brands, they have raised health awareness among people in the age
group (15-64 years old). According to Ken Research, the total accessible market in Vietnam
for sports services is increasingly expanding.

Demand for fitness services in Vietnam is expected to increase due to people becoming
increasingly health conscious, a sharp increase in disposable income, the development of
organized fitness centers and increasing penetration high of gyms in suburban areas. This
market is predicted to have a compound annual growth rate of 19.5% in revenue during the
period 2018-2023 and reach more than 3.5 billion USD by 2035.

PART II. UNDERSTANDING SERVICE PRODUCTS,

MARKETS, AND CUSTOMERS OF ELITTE.

1. Current marketing situational analysis

1.1. Competitors.

Figure 1: Leading fitness gym brands in Vietnam as of March 2023, by number of studios

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 Figure 2: Revenue of some fitness gym brand in Viet Nam

Elite Fitness holds third place in terms of number of facilities, which shows they have a
strong presence but focus on quality and premium service. While California Fitness and
Curves focus on expanding their facility network to serve more customers, Elite Fitness
chooses a different direction, targeting customer experience and service quality.

California Fitness leads with revenue of nearly VND 900 billion in 2022, reflecting a strong
presence. Elite Fitness, with revenue of 300 billion VND, maintains stability in the high-end
segment. City Gym reached 400 billion VND, showing strong development. FIT24 has lower
revenue, about 100 billion VND, but still grows steadily. Elite Fitness focuses on service
quality and customer experience, while California Fitness and City Gym expand their reach
and attract a larger customer base.

California Fitness: This is also the health brand with the largest scale in Vietnam based on
the number of gyms. Currently, California fitness has over 37 clubs across the country with
training environments equipped with the best equipment. California is completely focused on
Fitness and holds a market share of more than 70% as of October 2022. To date, according to
statistics, more than 500,000 customers have chosen California as a place to practice and use
the service.

California Fitness services include Yoga, Dance, Group Monthly cost of this fitness center is
about 670,000 VND - 3 million 2 VND/month

Fit24: Fit24 is the leading European standard fitness and yoga center in Vietnam. This is a
high-end gym and yoga system with many branches in Hanoi. The gym is fully equipped with

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modern equipment and a team of professional and enthusiastic trainers. Fit24 offers a variety
of fitness services to suit all your needs and goals.

Fit24 provides gym services: Fit24 provides a variety of gym exercises for everyone, from
beginners to professional exercisers. The exercises are scientifically designed to help you
improve your health, increase your strength and physique. Practice yoga: Fit24 has a variety
of yoga classes, suitable for all levels and interests. Yoga helps you relax your mind, increase
flexibility and improve overall health. Personal training and other services: Fit24 also
provides other services such as steam bath, sauna bath, swimming pool,... to help you relax
after exercise.

Fit24 service prices may vary depending on the branch and type of service you choose.
However, in general, Fit24 service prices are average compared to other gyms and yoga
studios in Hanoi, ranging from 500,000 VND - 1,200,000 VND/month.

City Gym:City Gym is a modern and reputable gym chain in Vietnam, featuring advanced
equipment and airy space. City Gym offers a variety of services such as a gym with modern
machines, cardio areas, free weights and functional training. Group classes such as Yoga,
Zumba, BodyPump, BodyCombat, Cycling are held under the guidance of experienced
trainers. Personal training (PT) services help customers create exercise and nutrition plans
that suit their personal goals. City Gym also offers sauna and spa services, nutritional
consultation, periodic health checks, and sportswear sales. Amenities such as free wifi, safe
storage area and spacious parking are also guaranteed.

Membership card prices range from 600,000 VND to 1,200,000 VND/month, long-term cards
range from 5,000,000 VND to 10,000,000 VND/year. City Gym often has promotions and
discounts. With diverse services and reasonable prices, City Gym is the ideal choice to
improve your health.

In short, Elite Fitness and California Fitness & Yoga both target the high-end customer
segment with modern equipment, spacious space and diverse services. Elite Fitness stands out
with its luxurious design and services from gym, yoga, pilates to swimming, and a team of
professional trainers, but the price is quite high. In contrast, City Gym and FIT24 focus on
the mid-range customer segment with reasonable prices. All Gym clubs also provide modern
equipment and similar services, with a dynamic and convenient design. Overall, choosing
between these gyms depends on each person's needs and budget. Elite Fitness and California
Fitness are suitable for those willing to pay more for premium services, while City Gym and
FIT24 are good options with reasonable prices and quality service.

1.2. Customers.

Elite Fitness focuses on market segmentation to better understand the needs and desires of
each customer group. Today, the gym industry market is growing strongly by 20% per year.
Therefore, Elite also divides into many special customer segments. Here, there are gyms for
VIP members with high income, gyms for students, and office workers with average income.
Instead of taking a general approach, they analyzed and identified the unique characteristics
of each customer segment, from beginners to professional exercisers.

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Elite Fitness creates unique services and offers based on the needs and preferences of each
customer segment, from beginners to professional exercisers. The Center's trainers design
programs to suit customers' needs. In addition, Elite also sets up personalized exercises to suit
each person's physical needs.

Elite Fitness not only creates service packages and incentives suitable for each customer
group but also creates a suitable environment and experience, thereby effectively attracting
and retaining customers. This helps them build a loyal customer community and bring
sustainable development to the business.

1.3. Company

On the corporate front, Elite Fitness has built a business strategy shaped by creating
differentiation and uniqueness in the market. They not only focus on providing regular
workout and fitness services, but also emphasize on creating an exceptional customer
experience and delivering real value. An important part of this strategy is market
segmentation and creating unique services and offers for each specific customer group.
Instead of taking a general approach, they have focused on understanding the needs and
preferences of each customer, thereby meeting and exceeding their expectations.

Elite Fitness also invests in building strong relationships with customers through support
programs and dedicated service. This helps them create customer loyalty and create a
community of customers who are loyal and passionate about the brand. In line with the club's
mission, which is to bring proper awareness to the community about physical training to have
great health and spirit, to always be steadfast in overcoming all challenges in life.

Ultimately, creating differentiation and uniqueness in the market helps Elite Fitness maintain
its position and cope with competition from competitors. By focusing on segmentation and
creating unique customer experiences, they can continue to grow and expand their market
effectively.

By 2022, Elite Fitness has recorded a revenue of 453 billion VND, an increase of more than
250 billion compared to last year. Besides, Elite Fitness also earned a profit of more than 6
billion VND during the year. This is an impressive number to prove Elite Fitness's service
quality to customers in particular and to competitors in general.

2. Segmentation, Targeting and Positioning of Elite Fitness

2.1. Market segmentation

Customer segmentation is a key strategy that helps Elite Fitness be more effective in targeting
marketing, personalizing customer experiences, and optimizing resources. Elite customer
segmentation involves understanding different customer groups based on specific criteria.
Here is Elite Fitness' approach to analyzing customer segments:

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Geographic City Elite focuses on large, densely populated cities such as Hanoi
and Ho Chi Minh City. HCM, Da Nang, Vinh

Demographic Age 20-30 30-50

Gender Male and Female: Women may be interested in

yoga or Pilates classes, while men may favor
weight training or boxing.

Occupation Students, Office Office worker,

Worker Freelance work, Others

Income Medium to High income

Psychographic Lifestyle Fitness enthusiasts, Fitness enthusiasts,

casual gym goers, interested in health and
lovers of beautiful relaxation.
bodies

Character People who love People who value

beauty, extrovert, sustainability and
youthful, dynamic dynamism.

Behavioral Frequency Elite divides customers into occasional and

regular users to help personalize customer
engagement strategies

Favorite Because Elite offers a variety of services, it's

activities important to understand whether customers prefer
group classes, personal workouts or specific
activities to help customize services.

Table 1: Customer segmentation of Elite Fitness

In short, customer segmentation by demographics, psychographics, and behavior helps Elite

Fitness effectively target marketing and improve customer experience. According to
demographics, customers can be classified by age, gender and income, for example different
age groups have their own fitness goals and preferences, men and women may prefer
different types of exercise. different workouts, and high-income customers may be interested
in premium services. Psychographic segmentation is based on the customer's lifestyle,
personality, and values. People with a fitness-obsessed or health-conscious lifestyle will have
different needs, while an introverted or extroverted personality can influence the choice
between group classes or individual workouts. Finally, behavioral segmentation is based on
membership type, frequency of use, and preferred activities. Customers can be classified by
monthly or annual membership packages, how often they use the service, and preferred
activities such as group or individual training. These segments help Elite Fitness personalize
marketing, develop tailored programs, and improve customer experience, thereby increasing
satisfaction and driving business growth.

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 2.2 Targeting Strategy.

With Elite fitness, the main strategy is the differentiation strategy to create unique and
different points for products and services compared to competitors such as California Fitness,
City Gym, FIT24,...

Differentiation strategy: Elite Fitness's differentiation strategy focuses on market

segmentation and creating separate offers for each customer group. In this way, they not only
differentiate themselves from the competition, but also create a unique experience and bring
exceptional value to customers. Advertising unique offers helps them attract attention and
create a deeper connection with customers. Although it requires higher costs, this strategy
helps Elite Fitness build a loyal customer community and bring sustainable development to
the business. At the same time, creating differences and uniqueness in the market also helps
them maintain their position and cope with competition from rivals.

2.3. Positioning services.

Looking at the positioning map, Elite fitness is in the high price range and the level of luxury
for the brand to the masses is also high. In this map, there are 2 selected criteria: price and
level of luxury. Prices range from low (500,000 VND/month) to high (3,200,000
VND/month). This criterion reflects the quality of the gym - the higher the price, the higher
the quality. The second criterion is the luxury of the brand. This level of luxury is assessed
from the equipment in the gym, quality of service,...Elite is in a high price position and the
level of luxury is also high compared to its competitors.

Figure 3: Positioning map of Elite Fitness

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 PART III. SERVICES MARKETING OF ELITE
FITNESS( Marketing Mix (7Ps))

1. Product Decision.

Figure 4: Components of a services product’ Elite

Note: Orange - Facilitating Supplementary Services
Red - Enhancing Supplementary Services

a) Core Services: Enhancing Overall Health through Diverse Workout Experiences and
Supportive Environment

Elite Fitness offers a variety of fitness and sports services such as Gym, Yoga, Aerobic,
Belly dance, K-POP dance, and more, combined with relaxation and entertainment
facilities, including all-season swimming pools, jacuzzi, sauna rooms, steam rooms, and a
bar. Elite Fitness provides a diverse workout experience and a supportive environment to
enhance comprehensive health for customers.

Here is a detailed list of the workout programs at Elite Fitness:

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LesMills Exclusive Fitness Yoga Other Classes
Classes
Bodypump Swimming Yoga Therapy E-class
Bodycombat Zumba
BodyJam - Basic Swimming Basic Yoga
RPM - Advanced Swimming Pilates Mat
- Children's Swimming Yoga Orientation Pound Rockout
- Hydrotherapy
Advanced Yoga Pilates Reformer
Gym Aqua HIIT
Specialized Yoga
- Body Transformation
- Women's Gym
- Personal Training for
Seniors
- Sports Correction
- Teen Sports
- Boxing/Kickboxing
- Stretching
- Personal Training 1:1

Table 2: The workout programs at Elite Fitness

b) Supplementary Products

Facilitating Supplementary Services

Information: Customers can find detailed information about workout packages, amenities,
additional services, class schedules, sessions, opening hours, and other factors through the
official website of Elite Fitness or can receive information directly via the hotline or in-
person consultation at the gym.

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 Figure 5: Home page of Elite Fitness

Order-taking: Elite Fitness assists customers in booking appointments and registering

for workout packages and membership cards through the hotline or by registering on the
website. Customers can make appointments directly at the gym or through the hotline to
ensure they have suitable workout times according to their schedules.

Figure 6: Registering on the website

Billing: Elite Fitness provides detailed and accurate invoices for workout packages,
services, and facilities used. Invoices are provided regularly or for each specific
transaction, helping customers understand the fees and services they have used.
Additionally, invoices are designed to display information clearly and comprehensively,
making it easy for customers to check and identify payments.

Payment: Elite Fitness offers multiple flexible payment methods to meet customer needs.
Customers can choose payment methods such as credit cards, cash, or online payments
through e-wallets, or mobile banking accounts.

Enhancing Supplementary Services

Consultation: Elite Fitness' customer service team is always ready to assist and advise
customers throughout the service usage process, addressing any concerns and meeting all
customer needs. In addition, Elite Fitness' experienced and enthusiastic trainers will
provide guidance and instructions to customers on the workout process, provide suitable
exercises, and guide the correct use of workout equipment.

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 Figure 7: Employee consultant at Elite Fitness

Hospitality: Elite Fitness creates a friendly and welcoming environment for all customers.
The staff are always enthusiastic and ready to assist when customers request. Each
customer visiting the gym will be directly assisted by an assigned staff member. This
helps meet the needs of customers quickly. Additionally, the center also designs a
relaxation area for customers to rest after each workout session without time limits.

Safekeeping: Elite Fitness provides safe and convenient security and parking services for
customers. Additionally, each customer is provided with a personal locker and allowed to
bring a personal lock to ensure their safety and autonomy.

Figure 8: Lockers at Elite Fitness

Exceptions: During the service usage process at Elite Fitness, special requests may arise
from customers requiring a departure from normal operating procedures. These requests

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 often relate to individual needs such as medical, religious, and personal disabilities. Elite
Fitness is committed to accommodating these requests flexibly and professionally. In the
event of complaints or issues, Elite Fitness is committed to fair and flexible restitution to
ensure customer satisfaction.

c. Delivery Process

How the different service components are delivered to the customer

Workout Schedule: Elite Fitness provides a flexible and easy-to-use workout schedule
system on the official website and mobile app. Customers can choose and schedule workouts
according to their preferences.

Figure 9: The training schedule at Xuân Diệu Club in June

Facilities: Elite Fitness ensures adequate space and equipment for each customer. Entry and
exit times to the gym are strictly managed to avoid overcrowding and optimize the experience
for each user.
No Membership Tier Features
1 Silver - Lower cost

- Work out within specific time frames

- At 01 Elite Fitness Club

2 Platinum
- Full-time workout

- At all Elite Fitness Club

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3 Passport - Full-time workout
- At all 14 Elite Fitness Clubs nationwide

Table 3: Membership Tier of Elite Fitness

The nature of the customer’s role in those processes

Staff-Customer Interaction: Elite Fitness' staff and trainers are willing to assist and engage
with customers in all aspects of the workout process. Customers can interact and participate
in the workout process in the best way for them.

The prescribed level and style of service to be offered

Appointment Management: Elite Fitness manages the number of people working out in each
room strictly to ensure the best quality for each workout session. The level and style of
service are adjusted to be appropriate and meet the desires of each customer.

2. Pricing

The price element in the marketing mix strategy of Elite Fitness plays a crucial role in
attracting and retaining customers. Pricing the membership packages not only reflects the
value of the services Elite Fitness provides but also needs to be competitive within the market
and align with the target market segment.

Value-Based Pricing

Elite Fitness employs value-based pricing, ensuring customer satisfaction while asserting the
brand’s superior quality. Offering a wide range of diverse fitness and spa services such as
Gym, Yoga, Aerobics, Belly Dance, and K-POP Dance, along with relaxation amenities like
a four-season swimming pool, jacuzzi, sauna, bar, and complimentary towel service, Elite
Fitness provides a comprehensive and enriching experience. The center’s modern, elegant,
and sophisticated design creates a comfortable and motivating environment for members.
High-end equipment from renowned brands like Technogym and Life Fitness, paired with a
professional, enthusiastic, and highly skilled team of trainers, maximizes workout efficiency
and helps achieve fitness goals. This perfect blend of features not only justifies the higher
pricing but also ensures that customers are investing in a high-quality lifestyle and health
experience at Elite Fitness.

Membership Packages and Pricing

Silver Package: 3,000,000 VND - 5,000,000 VND for 12 months. This package targets
customers seeking basic training at a fixed center during specified time slots. It is ideal for
individuals who have a routine schedule and prefer a consistent workout environment.

Platinum Package: Approximately 10,000,000 VND for 12 months. Designed for customers
desiring full-time access at a specific center, this package offers full amenities and services,

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catering to those who require flexibility in their workout schedule and access to all facilities
without restrictions.

Passport Package: 31,000,000 VND - 33,000,000 VND for 24 months. The premium
package allows unlimited access to all Elite Fitness centers, making it perfect for customers
who travel frequently or prefer a variety of workout environments. It offers the highest level
of flexibility and access to all services and facilities across multiple locations.

Promotions and Discounts: Elite Fitness consistently offers promotions aimed at attracting
new customers and retaining existing ones:

· 14-Day Free Trial Package: This package provides an excellent opportunity for
potential customers to experience Elite Fitness's services before making a long-
term commitment. It allows individuals to explore the facilities, attend classes,
and engage with the trainers without any financial obligation.

· 30-Day Unlimited Trial Package: Designed to encourage customers to immerse

themselves in Elite Fitness's offerings fully, this package allows individuals to
experience the full range of services without worrying about time or location
limitations. It provides a comprehensive trial period for customers to evaluate the
suitability and effectiveness of the gym's facilities and programs.

Incentive Pricing for Long-Term Utilization:

Elite Fitness incentivizes customers to opt for long-term subscription packages by offering
more favorable pricing compared to short-term subscriptions. By choosing a long-term
commitment, customers can enjoy significant cost savings while benefiting from
uninterrupted access to the gym's facilities and services. This pricing strategy not only helps
stabilize revenue for Elite Fitness but also fosters long-term customer engagement and loyalty.

Market Segmentation and Pricing:

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Targeting the high-end market segment, Elite Fitness's package prices are generally
positioned higher than many competitors. However, this pricing strategy is justified by the
superior service quality and the numerous accompanying amenities provided by Elite Fitness.
The premium pricing accurately reflects the exceptional value that customers receive,
including access to state-of-the-art facilities, professional trainers, and a wide range of fitness
and spa services.

Dynamic Pricing Strategy:

Elite Fitness adopts a dynamic pricing strategy to effectively compete and meet market
demands. Prices can be flexibly adjusted based on factors such as center location, time of
year, and special events. For example, during peak seasons or in high-demand locations,
prices may be slightly higher to maximize revenue. Conversely, during off-peak periods or to
attract customers to newer locations, promotional pricing or discounts may be offered. This
dynamic approach to pricing allows Elite Fitness to optimize revenue while ensuring
customer satisfaction and market competitiveness.

3. Place And Distribution

Place: Elite Fitness employs three primary methods to improve the customer experience.
They make use of various digital platforms, including their website, mobile app, social media,
and email marketing, to deliver current information and advertise their services, classes, and
promotional initiatives. This ensures that the content remains relevant and easily accessible.
Furthermore, within their facilities, they utilize signage, flyers, and display screens to
increase awareness about upcoming events and new programs.

Moreover, Elite Fitness provides a hospitable atmosphere at their front desks and with their
advisors who aid customers in selecting membership plans and tailored services. Additionally,
they provide convenience through their online platform for signing up for memberships,
granting customers the flexibility to join from any location. Their state-of-the-art amenities,
coupled with a skilled team, offer customers an optimal environment to avail themselves of
their services. Additionally, the emergence of online services such as virtual classes and
fitness tracking applications brings about convenience and adaptability, eliminating
geographical and time constraints. This caters to a broader range of individuals and enables

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customers to seamlessly incorporate their wellness routines into their hectic schedules. This
combination of traditional and digital approaches guarantees that customers benefit from both
face-to-face guidance and the convenience of digital resources, resulting in a holistic and
tailored experience

.
Figure 10: Locations of Elite Fitness Club

Distributions: Elite Fitness has successfully established a prominent presence in Vietnam as

one of the leading premium gyms and fitness, with a total of 14 clubs strategically positioned
throughout the country. These clubs are primarily located in major urban areas such as Hanoi
and Ho Chi Minh City, ensuring convenient access for a wide range of neighborhoods. In
Hanoi, Elite Fitness has clubs situated in Xuân Thủy, Nguyễn Chí Thanh, IPH, Lý Thường
Kiệt, and Xuân Diệu. Meanwhile, in Ho Chi Minh City, fitness enthusiasts can find Elite
Fitness establishments in Thảo Điền, Phạm Ngọc Thạch, and Đồng Khởi. Furthermore, Elite
Fitness has expanded its reach to other important cities, including Da Nang (Vĩnh Trung
Plaza), Vinh City, and Hạ Long, guaranteeing that individuals passionate about fitness across
Vietnam can enjoy the benefits of their exceptional facilities and services. Elite Fitness
facilities are predominantly situated in urban regions, particularly in the central business
districts and commercial hubs of prominent cities such as Hanoi and Ho Chi Minh City. This
deliberate positioning guarantees convenient accessibility for their intended customer base,
which primarily consists of professionals and urban dwellers. Although a few clubs may be
located on the outskirts of city centers, they are typically still within urban areas and easily
reachable via public transportation or private vehicles. The emphasis on urban settings
enables Elite Fitness to capitalize on the extensive and expanding market of fitness
enthusiasts in Vietnam's vibrant cities.

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Additionally, As of June 2024, there are no indications or reports suggesting that Elite Fitness
is engaging in franchising activities in Vietnam so in the future if there is any expansion of
the brand it will be company-orientated. Currently, all Elite Fitness clubs in Vietnam appear
to be under the ownership and operation of the company.

4. Promotion. (Service Marketing Communication 5Ws)

4.1 Who
To begin with, the staff at Elite Fitness will serve as brand ambassadors, effectively
conveying the promotional message directly to customers. Equipped with extensive
knowledge of service packages, promotions, and a genuine passion for fitness, the sales team,
personal trainers, and receptionists will offer personalized consultations, address any
inquiries, and inspire potential customers to join. The personal trainers, armed with their
expertise in nutrition, training techniques, and practical experience, will guide customers
through their workouts, enabling them to experience the exceptional quality of service at Elite
Fitness. Moreover, the professional and friendly reception team will always be prepared to
warmly welcome and assist customers throughout their fitness journey, fostering a
comfortable and professional training environment.

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In addition to the staff, Elite Fitness will also harness the influence of key opinion leaders
(KOLs) in the fitness and healthy lifestyle domains. Collaborating with these KOLs will
enable the brand to reach a broader community, establish trust, and enhance brand awareness
through social media posts, reviews, and genuine experiences shared online. Simultaneously,
media partners such as reputable newspapers, magazines, and professional advertising
agencies will support Elite Fitness in creating and executing innovative campaigns across
various online and offline platforms, ensuring maximum exposure to the target audience.

Elite Fitness' promotion strategies are carefully designed to appeal to a wide range of
customers, taking into account their different demographics, lifestyles, and fitness goals. The
gym offers exclusive benefits to its loyal members, who are typically between the ages of 25
and 45, have stable careers, and disposable income. These members value high-quality fitness
experiences and are enticed by perks such as priority booking, personalized training plans,
and discounts on advanced classes or spa treatments. To encourage inactive members to
return, Elite Fitness provides enticing offers such as complimentary personal training sessions,
discounted renewal fees, and access to new programs that reignite their passion for fitness.
These members may be facing time constraints or experiencing a decrease in motivation, so
these offers are designed to help them overcome these obstacles. Young professionals
between the ages of 18 and 35, who are looking for a social and dynamic fitness experience,
are attracted to after-work classes, themed events, and group challenges.

On the other hand, busy individuals with demanding schedules are offered time-efficient
workouts, express classes, and online training options for maximum flexibility. Middle-aged
and older adults aged 45 and above are provided with tailored programs that address age-
related concerns such as joint health and balance. Additionally, social activities that foster a
sense of community are offered to this age group. Elite Fitness also appeals to health-
conscious individuals of all ages and backgrounds by promoting a holistic approach to fitness.
This includes nutrition workshops, healthy cooking classes, and partnerships with wellness

21
brands. Beginners, regardless of their age or fitness level, are welcomed with introductory
packages, personalized guidance, and a supportive atmosphere to make their journey into a
healthier lifestyle easier. Furthermore, Elite Fitness caters to specialized segments such as
athletes and fitness enthusiasts by offering high-performance training programs, access to
cutting-edge equipment, and sports-specific conditioning.

4.2 What

Strategic Objective: To become the leading luxury fitness destination in the city, offering
top-notch facilities, personalized training programs, and exclusive amenities to cater to the
needs of elite clientele.

Tactical Objective: To achieve this, Elite Fitness Gym focuses on providing a wide range of
high-quality equipment, hiring experienced and certified trainers, offering specialized classes
such as yoga and Pilates, and creating a luxurious and welcoming environment for members
to feel motivated and inspired.

4.3 How

Elite Fitness uses a variety of communication channels. By deploying engaging social media
campaigns, personalized emails, and collaborating with key players in the fitness industry,
Elite Fitness effectively conveys its brand message and core values .

Messaging Strategy: State compelling messages focusing on the benefit of joining Elite
Fitness, success stories of current members, promotion offers, and informative content related
to fitness and wellness. Provide excellent customer service to ensure customer satisfaction
and loyalty. Leverage customer feedback to further refine products and services.

Customer Orientation: Offer complimentary introductory classes to allow potential

customers to experience KickFit firsthand, addressing any hesitation about trying a new
workout routine. Meanwhile offer a variety of class times throughout the week to
accommodate busy schedules, ensuring accessibility for working professionals and
individuals with other commitments.

4.4 Where

Marketing communication channel: Elite fitness is using online media channels: Website,
Facebook, Instagram, Tiktok and Youtube

To dig deep and get the most in-depth information. We will be segmenting the
communications channels. Elite Fitness has implemented a multi-faceted promotional
strategy to effectively connect with and captivate a wide range of potential members across
various online platforms. At the core of this strategy is the website, which serves as a
comprehensive hub of information for individuals from all walks of life who are interested in
learning more about Elite Fitness' services, locations, pricing, and class schedules. The
website is designed to cater to the needs of both those seeking information and those ready to
join, with clear and concise communication, high-quality visuals, and user-friendly interfaces
such as online registration forms.

22
 Figure 11: Website of Elite Fitness

To visually showcase its cutting-edge

facilities, diverse range of classes, and
satisfied members, Elite Fitness
leverages Instagram. Through the use
of high-quality photos and videos, the
gym effectively captures the dynamic
and vibrant atmosphere of its
environment. Additionally, user-
generated content that inspires and
reinforces the brand's commitment to
results and community is shared on
this platform. TikTok, on the other
hand, is utilized to engage with a
younger audience by creating short and
captivating videos that feature trending
fitness challenges, workout tutorials,
and humorous content related to gym
culture. By integrating positive
reviews about equipment, space, and
trainers, Elite Fitness creates content
that resonates with this demographic.

Figure 12: Instagram account of Elite Fitness

For those seeking more in-depth content, Elite Fitness utilizes YouTube as a platform to
share longer-form videos. These videos include detailed exercise demonstrations by expert
trainers, providing valuable guidance to viewers. Success stories are also shared to inspire
and motivate individuals. Additionally, behind-the-scenes glimpses of the gym foster a sense
of transparency and community, while nutrition series and meal-prep videos cater to those
who are interested in a holistic approach to wellness. By strategically leveraging these
different platforms and tailoring the content to each audience, Elite Fitness effectively

23
reaches and engages its target demographic, establishing a strong online presence that
translates into real-world membership growth.

Figure 13: Youtube Channel of Elite Fitness

4.5 When ( Outstanding time to launch new products, new services, change logos,...)

Timing decision: Elite Determine the schedule for implementing communication campaigns:
Outstanding time to launch new products, new services, and schedule announcements.

Announcement of operating hours during the New Year holiday

24
Announce the time to open the health examination workshop for members

Time 07/12/2023 by Elite

15KM LIMITED CHALLENGE | OUTDOOR RUNNING WORKSHOP

2023

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 - The center provides training schedules for regular customers.
- The center regularly launches seasonal promotions:

Capitalizing on Seasonal Trends:

Elite Fitness in Vietnam strategically leverages seasonal trends to entice new members and
maintain the interest of current ones. For instance, during the New Year's resolution period,
they introduce initiatives such as "Năm mới, vóc dáng mới cùng Elite Fitness!" (New Year,
New Body with Elite Fitness!), which include reduced membership fees, personalized
training sessions, and exclusive rewards to inspire individuals to commence their fitness
journey. Promotions encompass a 20% discount on new memberships for the initial 3 months,
a "Buddy Up for Fitness" offer where bringing a friend results in a complimentary month of
membership for both, and complimentary body composition analysis and tailored fitness
evaluations for fresh members. As the summer temperatures rise, Elite Fitness unveils the
"Elite Summer Shape Up" campaign, showcasing invigorating workouts, nutritious recipes,
and advice on remaining active outdoors. They even host outdoor group fitness sessions like
the "Sunset Yoga Series" in picturesque settings and a "Summer Slim Down Challenge"
featuring fitness tasks, nutritional advice, and rewards. Furthermore, they collaborate with
local juice bars to provide exclusive discounts on healthy beverages to members. As the
back-to-school season nears, Elite Fitness targets students and professionals resuming their
routines after the summer hiatus with the "Back to School, Back to Elite" campaign,
underscoring how their amenities can aid in regaining fitness levels and establishing a
wholesome lifestyle.

Elite Fitness collaborates with educational institutions and businesses to provide unique
discounts for students, group fitness classes on campus, and customized wellness packages
for corporate employees. To celebrate the Tet holiday, Elite Fitness launches the "Healthy
and Prosperous Tet with Elite Fitness" campaign, highlighting the significance of prioritizing
health and fitness during the festive season. The campaign includes advice on maintaining a
balanced diet, workout routines, and themed classes such as "Tet Fitness Fusion," "Lion
Dance Workout," and "Healthy Tet Cooking Workshop," incorporating cultural elements into
the fitness programs. This comprehensive approach ensures that Elite Fitness remains
attractive and relevant year-round, effectively engaging and retaining members by addressing
their changing needs and goals.

Embracing the "4.5 When" Concept:

"4" - Optimal Timing: Select the most suitable time to launch a campaign by considering
seasonal patterns, industry happenings, and data-driven insights.

".5" - Unexpected Surprises: Infuse marketing campaigns with elements of surprise or

spontaneity to captivate attention and generate excitement. This may involve time-limited
offers, surprise giveaways, or impromptu events. By adhering to these principles and
embracing the "4.5 When" concept, KickFit Sports can strategically time its marketing
initiatives for maximum impact, resonate with the intended audience, and solidify its position
as a premier fitness brand in Vietnam.

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 5. Process

5.1. Designing service processes

Figure 14 : Service processes of Elite Fitness

5.2 Describe about each process.

Step 1: Customer go to the fitness center

Customers choose the nearest center with convenient transportation as a place to regularly
practice. Customers use personal or public transportation to get to the Elite center.

Step 2: Parking

When arriving at Elite Fitness, customers will be guided to the center's parking lot. Here the
parking location is kept with good security and parking tickets are accepted. Members need
to check the information on the parking ticket to ensure accuracy. In addition, if a parking fee
is required, members will be informed of the amount to be paid and during the parking
process, members need to keep the parking card carefully to avoid loss.

Step 3: Check in

Upon arrival at the prestigious Elite Fitness establishment, patrons are met with a cordial
reception from the diligent personnel. Whether they choose to present their membership card
or make use of the user-friendly mobile application, the check-in process is smooth and
efficient. The reception area, meticulously crafted with sophistication and coziness, offers a

27
hospitable environment for members to inquire, request assistance, or unwind prior to
commencing their exercise routine. The amiable nature of the staff and their eagerness to help
guarantee that members are esteemed and properly looked after as soon as they enter the
premises.

Step 4: Locker room

Members will then move on to the luxurious locker rooms, which have been created as a
peaceful sanctuary to elevate the entire experience. These locker rooms feature large lockers
that offer plenty of room to securely store personal items. Private showers stocked with
premium toiletries, soft towels, hair dryers, and grooming stations are easily accessible,
enabling members to rejuvenate themselves before or after exercising. The locker rooms are
kept in impeccable condition, guaranteeing a spotless and sanitary setting for everyone.

Step 5: Spend time for gym

Upon securing their personal items, individuals proceed onto the vast gym floor, a vibrant
environment where fitness goals are realized. The cutting-edge equipment, thoughtfully
chosen to accommodate a variety of fitness objectives, is ready for their exploration. There is
a wide selection of cardio machines available, including treadmills, ellipticals, and stationary
bikes, many of which offer stunning views of the cityscape. The strength training section
features an extensive array of free weights, barbells, dumbbells, and resistance machines,
enabling members to tone and strengthen their physique. Moreover, the functional training
area allows for dynamic movements and bodyweight exercises. Group fitness sessions,
guided by skilled trainers, present an enjoyable and inspiring way to vary workouts and
interact with other fitness enthusiasts.

Step 6: Personal training programs(PT)

In order to elevate their fitness journey, numerous individuals choose personalized training
programs (PT). These individualized sessions, led by certified trainers, aim to optimize
outcomes and assist members in attaining their unique objectives. The trainers conduct
thorough evaluations to comprehend each member's fitness level, preferences, and constraints.
Subsequently, they develop customized workout plans that cater to specific requirements, be
it shedding pounds, building muscle, or enhancing overall fitness. Throughout the sessions,
the trainers offer professional guidance, motivation, and responsibility, ensuring correct form,
technique, and safety.

Step 7: Restroom

Following an energizing exercise session, patrons have the opportunity to utilize the
luxuriously equipped bathrooms. These contemporary and roomy amenities provide a
peaceful setting to rejuvenate and re-energize. Individual cubicles, elegant countertops, and
plentiful mirrors establish a cozy area for personal grooming. The bathrooms are diligently
maintained and supplied with premium hand soap and towels.

Step 8: Check out

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After finishing practicing and resting, customers return to the Locker room to retrieve their
belongings, check all personal belongings and return to the reception desk to complete
departure procedures. The customer then took the car and left

6. People

Figure 15 : Function of Elite Fitness

Staff: Elite Fitness recognizes that its greatest asset lies in its people, both the staff and the
member community. They invest heavily in building a strong team with the right skillset and
fostering a positive and inclusive environment for everyone. Trainers are the cornerstone of
this approach. Elite Fitness goes beyond just certifications, seeking passionate individuals
with diverse specializations – whether you need help with strength training, weight loss, or
injury rehabilitation, there's a trainer perfectly suited to guide you. Experience is equally
important, with a range of trainers catering to beginners, those looking to take their fitness to
the next level, and experienced athletes. But qualifications and experience are just part of the
equation. Elite Fitness prioritizes trainers with exceptional communication skills who can
explain exercises clearly, motivate clients, and build genuine rapport. Their enthusiasm and
passion for fitness are contagious, creating a supportive and encouraging atmosphere that
makes workouts enjoyable and effective.

Members: Beyond the trainers, the member experience is paramount. Customer service
representatives exemplify friendliness and approachability, making new members feel
welcome and comfortable from the moment they walk in. Their deep knowledge of the gym's
facilities and services allows them to answer questions thoroughly and efficiently, ensuring a
smooth transition into the Elite Fitness community. Problem-solving skills are another key
strength, enabling them to address member concerns and resolve issues promptly, fostering a
sense of trust and reliability. Sales representatives are adept at explaining various

29
membership options and highlighting the benefits of joining Elite Fitness, not just focusing
on selling memberships but on finding the right fit for each individual's goals.

PT: The team extends beyond trainers and customer service. Group fitness instructors are
certified and experienced, leading engaging and effective classes that cater to a variety of
interests and fitness levels.

Maintenance staff: plays a crucial role in keeping the gym clean, equipment functioning
flawlessly, and creating a safe environment for everyone. Finally, strong leadership from
management is essential. They provide clear direction, foster a positive work environment

30
where all employees feel valued and respected, and set the overall tone for the gym's culture.
This positive and inclusive environment extends to the clientele as well.

Understanding their target market allows Elite Fitness to tailor services and create a
welcoming atmosphere for that demographic. Whether it's young professionals seeking a
quick workout after work, families looking for activities they can do together, or athletes
training for competitions, Elite Fitness caters to a diverse range of members. They actively
promote community building through social events, group fitness classes, and online
communities, encouraging interaction and camaraderie among members. Ultimately, Elite
Fitness recognizes that a strong team and a welcoming, inclusive community are the pillars of
member satisfaction and long-term success.

7. Physical Evidence

Elite Fitness cultivates a premium and professional image through its physical environment,
attracting and retaining customers seeking a superior workout experience.These elements
help brands attract and retain customers.

Immerse Yourself in Sophistication:

Modern Grandeur: Elite Fitness boasts a modern and luxurious interior design. Spacious and
airy, the use of high-quality materials like marble, granite, and wood creates a comfortable
and serene atmosphere.

Color Psychology in Action: Elite Fitness employs a strategic color scheme. White promotes
cleanliness and freshness, while carefully placed accents of black and a signature color (red,
blue, etc.) exude energy, professionalism, and strength – reflecting the brand's core values.

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 Experience Unmatched Equipment:

Cutting-Edge Technology: Elite Fitness invests heavily in state-of-the-art equipment from

leading global brands. These training rooms, designed to international standards, offer
specialized areas for a truly comprehensive workout.

Beyond the Basics: Elite Fitness goes beyond standard gym equipment. They provide a wide
range of group fitness classes like yoga, Pilates, Zumba, etc., all led by NASM-certified
trainers. This ensures expert guidance and a variety of training options.

Elevated Amenities: For a truly holistic experience, Elite Fitness offers extended utility
services. Imagine unwinding after a challenging workout in their Califresh water bar, Jacuzzi
massage pool, or sauna room (amenities may vary by location).

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 Service with a Smile:

Your Comfort is Our Priority: Elite Fitness prioritizes exceptional customer service. Their
well-trained staff, sporting a professional uniform, are always available to assist you,
ensuring you feel valued and supported throughout your fitness journey.

Exclusive Perks: Elite Fitness understands the importance of value. They regularly offer
attractive promotions and discounts, making premium fitness even more accessible.

A Space that Inspires:

Elite Fitness goes beyond just equipment and amenities. They curate a motivating
environment. Imagine working out in a spacious, modern, and inspiring space. The
sophisticated and elegant design, often incorporating natural light and upbeat or calming
music, creates an energetic and passionate atmosphere that fuels your workout and keeps
you coming back for more.

PART IV. OPPORTUNITY ANALYSIS SWOT MODEL

ANALYSIS.

1. Opportunity Analysis for Elite Fitness

Elite Fitness have built a reputation for innovation and personalized care, making them a top choice
for anyone serious about transforming their health. But there's always room for growth, and exciting
opportunities await to take Elite Fitness to the next level. Here's a breakdown of potential
opportunities Elite Fitness can leverage to grow their business

Capitalizing on Health and Wellness Trends: Elite Fitness can expand its offerings to include
specialized programs like weight management or prenatal fitness, and host workshops on nutrition
and mental health, fostering a holistic approach to wellness. Secondly, technological advancements
present new possibilities. Live and on-demand virtual classes cater to members with busy schedules or
a preference for remote workouts. Partnering with wearable tech companies allows integration of
fitness data, enabling personalized workout plans. Thirdly, Elite Fitness can address evolving needs
and preferences by diversifying class offerings beyond traditional options, and building a strong sense
of community through social events and fitness challenges. Additionally, features like online class
booking, membership apps, and childcare services can enhance convenience and flexibility for
members.

Strategic Partnerships: Elite Fitness can unlock further potential through strategic partnerships.
Collaborations with corporations can offer discounted memberships or on-site fitness classes for
employees, promoting workplace wellness and a healthier workforce. Partnering with healthcare
providers, such as doctors or physical therapists, allows for the creation of specialized fitness
programs tailored to patients with specific needs. Additionally, collaborations with nutritionists or
fitness influencers can broaden service offerings by providing consultations, workshops, and
programs that extend beyond traditional gym memberships.

33
Market Expansion: Market expansion presents another avenue for growth. Opening new gyms in
populated areas taps into a wider clientele, while premium membership tiers with perks like personal
training or exclusive classes cater to a high-end market.

By implementing some of these opportunities, Elite Fitness can position itself as a leader in the fitness
industry, attracting new members and increasing customer retention.

2.SWOT Model Analysis for Elite Fitness

Figure 16 : SWOT Model Analysis for Elite Fitness

STRENGTHS:
Reputation for Luxury:Elite Fitness is known for its premium facilities, equipment and services,
meeting the needs of customers looking for an upscale workout experience. The gyms are equipped
with modern equipment, luxurious spaces and additional amenities such as saunas, swimming pools
and relaxation areas. The focus on quality and detail in design not only brings a sense of comfort but
also creates a classy workout environment that is different from conventional gyms.
Qualified Staff: Elite Fitness's team of coaches and staff are carefully selected and all have
professional certificates. Not only are they experienced, but they are also capable of providing
personalized instruction, ensuring a safe and effective workout environment for every member. The
professionalism and extensive knowledge of the staff help build trust and create favorable conditions
for members to achieve their fitness goals.
Variety of Classes: Elite Fitness offers a diverse range of classes, suitable for many different interests
and needs of members. From yoga, pilates, zumba to high-intensity classes like HIIT and kickboxing,
these diverse options not only keep workouts interesting but also help members explore and
experiment with different workout methods. . Innovating and regularly updating classes also
contributes to long-term member retention.
Established Brand: With many branches in Hanoi, Elite Fitness has built a strong brand recognition
and has a loyal customer base. This widespread presence not only facilitates reaching new customers
but also strengthens the trust of existing members. The Elite Fitness brand has become a symbol of
quality and reputation in the fitness industry, helping to create a solid competitive advantage in the
market.

34
The harmonious combination of these factors has helped Elite Fitness not only stand out but also
maintain its position as one of the leading gyms in Vietnam.

WEAKNESS:

High Membership Costs and Limited Locations: Due to its high-end positioning, Elite
Fitness's membership fees may be higher than many other gyms, which may make some
potential customers hesitant. While the quality of service and facilities are strong points, the
high fees can be a barrier for those on a limited budget or those not ready to invest heavily in
training. Currently, Elite Fitness only operates primarily in Hanoi, which limits their reach to
a wider customer base across Vietnam. Focusing on just one city can also eliminate
opportunities to attract and serve potential customers in other areas where there is also high
demand for premium fitness services.

Focus on In-Gym Experience: Elite Fitness focuses on the in-gym workout experience with
less emphasis on virtual or remote workout options. This can leave members who prefer to
workout at home or can't afford to go to the gym feeling excluded. In today's climate, where
online workouts are becoming more popular, the lack of these options may reduce Elite
Fitness's appeal to some customers.

High Dependence on Traditional Equipment: High reliance on traditional gym equipment

may not meet the needs of those who prefer equipment-free exercises or outdoor activities.
Body weight exercises or outdoor workout programs are growing in popularity, and the lack
of these options may reduce the flexibility and variety of workout programs at Elite Fitness.

These weaknesses may affect Elite Fitness's ability to expand and attract customers. However,
recognizing and overcoming these weaknesses can help them grow stronger in the future.

OPPORTUNITIES:

Growing Health & Wellness Trends: The growing health and wellness trend is a huge opportunity
for Elite Fitness. By tapping into this growing interest, Elite Fitness is able to offer specialized
programs and workshops, targeting specific target groups such as the elderly, pregnant women, or
those just starting out. beginning of practice. These programs not only attract new customers but also
retain existing members through diverse and useful services.

Technological Advancements: Technology is changing the way people work out, and Elite Fitness
can capitalize on this by integrating smart wearable technology and offering virtual workout classes.
Devices like smartwatches and trackers can help exercisers track progress and improve workout
effectiveness. Additionally, offering classes online or through a mobile app will expand the reach of
services, meet the needs of those who cannot go to the gym and increase convenience for all members.

Strategic Partnerships: Strategic partnerships with businesses, health service providers, or fitness
influencers can expand Elite Fitness's services and reach. These partnerships may include providing
exercise programs to employees of large companies, or working with medical professionals to
develop rehabilitation and exercise programs for people with health problems. specific health issue.
Collaboration with influencers also helps increase brand awareness and attract more potential
customers.

Market Expansion: Expanding your market by opening new locations in growing areas or
offering premium memberships with additional benefits is a viable strategy. Elite Fitness may
consider opening more branches in other big cities besides Hanoi, or even mid-range cities

35
with increasing demand for high-end training services. Premium memberships may include
services such as personal trainers, nutrition consultations, or other exclusive experiences.

These opportunities, if exploited properly, can help Elite Fitness not only expand its scale but
also improve service quality, thereby strengthening its position in the fitness and health
industry in Vietnam..

THREATS:

Increased Competition: The fitness industry is constantly evolving with the emergence of
new gyms and cost-effective options. This creates fierce competition and could affect Elite
Fitness' membership numbers. New gyms often apply attractive pricing strategies and
promotions to attract customers, requiring Elite Fitness to constantly improve services and
marketing strategies to maintain its position.

Economic Downturn: Economic fluctuations could impact consumers' disposable income,

leading to a decline in gym memberships. When the economy struggles, costs for non-
essential services like gyms may be the first to be cut. This requires Elite Fitness to have
contingency plans and flexible service packages to respond to these economic changes.

Technological Disruption: Online workout platforms and at-home workouts are increasingly
popular, potentially threatening the traditional gym membership model. With their
convenience and low cost, home workout apps and online services like video classes can
attract a large number of consumers. Elite Fitness needs to integrate technological elements
into its service to compete, such as developing online workout programs or offering its own
app with workouts and progress tracking.

Regulatory Changes: Increasingly stringent health and safety regulations can lead to higher
operating costs. New regulations may require gyms to upgrade equipment, improve hygiene,
or adopt new safety measures, all of which can cause significant financial pressure. Elite
Fitness needs to be prepared to comply with these regulations and seek effective solutions to
minimize costs.

By leveraging its strengths and addressing its weaknesses, Elite Fitness can capitalize on the
available opportunities and mitigate potential threats. This will allow them to maintain a
competitive edge and ensure long-term success

PART V. RECOMMENDATION AND CONCLUSION.

1. Recommendation
1.1. Issue 1

Currently, Elite Yoga and Elite LesMills staff rely on foreign staff, who are recruited because
of their expertise in the yoga and LesMills industry, but this has its advantages and
disadvantages when operating in the local market. Regarding the advantages, recruiting
foreign staff will bring a lot of knowledge and professional skills, which can help improve the
quality of services provided by the company. However, the presence of many foreign staff in
the gym also poses many challenges in terms of language barriers and cultural barriers, which

36
need to be carefully considered. Language barriers are what prevent foreign trainers from
transmitting knowledge and communicating with customers. A necessary condition for a
company to be able to provide good service to customers is that they must communicate
effectively with customers and ensure that the transmission goes smoothly. Different
countries will have different cultural norms and values. If expatriate staff do not fully
understand the local culture, they may unintentionally misunderstand or offend local customs
and traditions, which can result in customer dissatisfaction or even negative customer
publicity that can impact the company’s image.

Recommendation: Elite can provide training on Vietnamese cultural taboos and

communication. This training will help them better understand the local culture, customs and
communication standards. As a result, foreign employees will have effective ways to deal
with cultural differences so that they are not too big, thereby building positive relationships
with customers and local colleagues. In addition, Elite can consider recruiting foreign
employees who have lived in Vietnam and have some understanding of the culture. Local
employees can provide valuable insights into customer preferences, competitors and market
trends.

1.2. Issue 2

Currently, the fitness market in Vietnam is growing, and there is high competition between
fitness clubs and gyms. Elite faces fierce competition challenges in the fitness market in
Vietnam with competitors being centers established in Hanoi earlier than California or such
as Curves, City Gym, etc. These centers have a stable customer base with a variety of
services and affordable prices, helping them attract a large number of customers to register
for membership. Competitors with foreign investment such as: Calidas fitness Keangnam, 25
Fit, Jetts Fitness, Horison hotel, etc. These competitors are not only strong in scale and
operating history but also have strong financial potential and the ability to invest in marketing.
To compete with these companies. Financial potential is also gradually losing its position
when Fitness companies open large buildings in Hanoi such as Keangnam, The Garden,
Ciputra, etc.

Recommendation: Solution to link e-wallet and Elite Fitness

Elite offers the "FitRewards" program linked with VnPay e-wallet with the aim of retaining
existing customers, increasing interaction to attract new customers. Customers using VnPay
to pay for service packages at Elite Fitness will receive special discounts, for example:
customers who link their VnPay account to their Elite Fitness membership account will
receive a 10% discount on all service packages, customers who register for the first time for a
wallet or service at Elite will receive 3 months, 6 months or 1 year of free training. For
example: If you register for the first time because of VnPay, you will receive an additional 3
months if you buy a Silver card, 6 months if you buy a Premium card, and 1 year if you buy a
Passport card. With each time using VnPay wallet to pay, customers receive bonus points
based on the amount spent when using the e-wallet. Customers can accumulate points and
redeem them for gifts or special offers, such as gift cards, free training software, sports shirts,
etc. This method will not take much of the customer's time. Thus, both sides benefit: Elite
will attract a large number of customers from the VnPay wallet, and VnPay will also have the
opportunity to thank their customers. This is a cost-effective and highly effective solution.
Elite only has to bear the cost of printing promotional materials with the VnPay and Elite

37
logos. The flier will contain all the necessary information about the promotion program and
the necessary procedures when you want to register for this program. In addition, the wallet's
customers have the ability to pay, including many different levels. Promotions through
VnPay will make the information more reliable, thereby the marketing effect will be very
high.

1.3. Issue 3 Innovation Plans for Elite Fitness Marketing Services

Analysis of the situation of Elite Fitness in Vietnam highlights both the strengths and
challenges of the company in the competitive fitness industry. Although the company is
proud that its gym infrastructure, equipment, interior design and diversification of exercises
according to customer needs have always been invested heavily, the incident of Elite
revealing information of more than 500,000 customers has seriously damaged the reputation
of this sports club system. This has caused many long-time members to turn their backs,
reducing the reputation of customers and increasing the negative view of Elite in the fitness
community. The relatively high membership fees, which can be prohibitive for customers on
a tight budget, and the crowded facilities in crowded areas are significant disadvantages
(Fit24 with an average monthly training fee of around 1,100,000 VND/month and Getfit Gym
& Yoga with a price of around 349,000 - 499,000 VND/month, the price at Elite Fitness
(500,000/month - 1,200,000 VND/month) is currently quite high in the industry. In addition,
the company's limited presence outside major cities suggests an untapped market potential.
This misleads many potential customers into thinking that the center only caters to high-
income earners who enjoy luxury and world-class fitness services. As a result, they tend to
choose local fitness centers over Elite Fitness.

Recommendation: We think that the company needs to get closer to customers and provide
them with full service information as well as wholeheartedly support and introduce specific
service packages that suit their conditions. In addition, the company's marketing department
should also have more creative marketing campaigns and strategies to attract new customers
to the activities of the fitness center. A large number of customers use many social networks,
so California can take advantage of this to market itself on Facebook, Tiktok, Zalo,
Instagram, ... combined with live broadcasts, vlogs with celebrities, KOLs. Along with that,
they should regularly offer promotions, or discounts to customers on specific occasions to
stimulate them to continue using their service packages.

2. Conclusion

Elite Fitness’s achievements so far demonstrate their sincere efforts in promoting the growth
of the business every day. Because of the success of the 7Ps strategic plans, Elite Fitness has
always been at the top of the fitness market for many years, although there have been some
challenges, the company has maintained its high position. Although Elite Fitness still has
certain difficulties in its operations, these are not problems that can be solved overnight, so
they can handle them carefully to successfully overcome all these obstacles to become even
stronger in the future. Customers can feel the passion and high level of commitment of the
company in providing the best services in the health and fitness industry. Elite Fitness will
continue to expand, build a training environment and continuously improve the quality of
experience for all customers.

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 PART VI. CASE STUDY

1. Summary case study.

In 2020, Elite Fitness had a serious incident where the personal information of 500,000
customers was exposed. This incident not only caused a loss of customer privacy, but also
caused confusion and anxiety in the community. Sensitive information such as names,
addresses, phone numbers, and bank account information may have fallen into the hands of
untrustworthy people, posing a great risk of information abuse and identity theft. Elite's
customer data information was publicly traded on a deep web, and when the incident
occurred, the club did not notify customers, causing many potential risks. This incident has
created confusion and anxiety in the Elite Fitness customer community. Customers may no
longer trust the company's ability to protect their personal information, which can lead to a
loss of customers and negatively affect the company's reputation. The loss of personal
information can lead to serious financial consequences for customers. From 2020 onwards,
Elite's net profit has been negative. In 2020 and 2021, Elite reported a loss of nearly 30
billion VND and more than 80 billionVND, respectively. Revenue dropped sharply by nearly
200 billion VND in 2021, down more than 58%. The appropriation of bank account
information can lead to the loss of money or misuse of customers' assets, and they may be
held liable and their financial lives affected. The information disclosure has had a major
negative impact on Elite Fitness. The company faces loss of reputation, loss of customers,
and possible legal lawsuits arising from the privacy breach. At the same time, restoring
customer trust will also be a major challenge for the company.

What lessons did Elite Fitness learn from this data breach and what can it do to rebuild
trust with customers after this leak?

Personal information security is a minimum requirement in data management,

especially in the service industry, the security of customers' personal information is extremely
important. After this information leak, Elite suffered a lot of property loss, lost customer trust
and greatly affected the company's image. Elite Fitness had to apply strong security measures
to prevent unauthorized access and misuse of personal information. Elite needs to regularly
check and evaluate its information security system. This includes checking for security
vulnerabilities, implementing new security measures and improving data management
processes. Periodic assessments will help Elite detect and fix security issues in a timely
manner.

2. Recommendation for case study

First, Elite Fitness should establish a dedicated customer support service to answer
questions, provide updates, and support affected customers. Responding quickly and
professionally to customer requests and complaints will help restore trust and rebuild
relationships.

In addition, Elite Fitness should evaluate and improve its information security system.
The company should implement stronger safeguards to prevent unauthorized access and
misuse of personal information, such as using data encryption, two-factor authentication,

39
security vulnerability testing, and ensuring reliable data management processes. Elite Fitness
can establish clear policies and procedures for data management and privacy. Internal
regulations must be followed and internal checks must be put in place to ensure compliance
and accountability in the management of customer data.

To rebuild Elite’s image in the eyes of customers, the company should establish a close
relationship and communicate closely with customers by regularly sending notices about
security measures, updating policies and procedures, and listening to customer feedback.
Good communication between Elite Fitness and customers will help build trust and rebuild
relationships. If customers have been affected by a data breach, Elite Fitness should consider
providing reasonable compensation and resolving complaints promptly and fairly. This will
help rebuild trust and show that Elite Fitness is responsible and cares about its customers.

Elite's customer data information was publicly sold on a deep web. When an incident
occurred, the club did not take any action to notify customers, causing many potential risks.

40
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