Virgin Active Gym: The Best Place To Shape Your Life Harvard Case Solution & Analysis

INTRODUCTION

Sales manual is an important part of the sales department of any company. It serves as a “how to do” guide for the sales representatives of a company for achieving success. It does not tell the sales force or the sales representatives of the organization, how you should sell your product, but to whom, when and where also. The sales manual aligns all of the sales staff with the rest of the company and its ultimate objectives. It instills a motivating factor within the sales representatives to seal the deals for the company. The sales manual for any business focuses on the four strategic areas of any business’s sales model which are customer, product, relationship and presentation strategies. The sales manual for the Virgin Active Gym has been developed below which describes each of the four components of the sales manual.

DEVELOPING A RELATIONSHIP STRATEGY

The relationship strategy for the Virgin Active Gym will emphasize on building relationship with the employees. The most common employees coming to the Gym would be between the age brackets of 15 years to 35 years. These would comprise of lower level employees and the senior managers. The mission of the Gym would be to offer the employees an environment of convenience and comfort where they come and relax and feel refreshed (Narus, (1990)). The staff at the Gym should show outstanding performance in terms of professional appearance and professional attitude. All the staff working at the Gym should be polite and have outstanding communication skills. They should maintain a friendly atmosphere with the employees.

PROFESSIONAL ATTIDUDE

The trainers should have the best communication skills, as they should speak in the language of their employees (Berry, 1983). They should be able to control their volume, pitch, intonation and speaking pace. One should try to avoid the monotonous voice as this will make the client feel bored and ultimately, the client will lose interest. The same trainer should be assigned to train a customer so that the relationship could be created with the Gym. The employees should feel that Virgin Active is not a normal Gym but rather it is a health club. They should also feel that they have not been tied up in any contract with the Gym, but instead they should feel that they have created a relationship with the Gym.

This makes the relationship strategy of the company very personal and the employees start to feel that they are an important part of the club and in return they start to stay for more time in the clubs even after their work hours. The trainers and all the staff at Virgin Active Gym should formulate the positioning of the Gym in such a way that all the employees get a feeling that they are part of a club where they are going to achieve all of their personal goals with complete enjoyment and healthy lifestyle touch rather than focusing only on the bodybuilding mindset where the looks matter.

DEVELOPING A PRODUCT STRATEGY

            Developing an innovative product/service strategy within the Gym is as important as developing a relationship with the employees. First of all, the Gym needs to be unique in terms of the range of services that it offers to its employees. The Gym should be established as an out of the box institution which also offers other benefits such as boot camps, Zumba, Yoga.

            The pricing of the health club services would be as follows:

Cost of the Membership of the Gym: 

For lower level employees (18 years to 25 years) rates would be: £ 35

For senior managers (25 years to 40 years) rates would be: £ 50

Payment at the end of each month: 

For lower level employees (18 years to 25 years) rates would be: £ 25.95

For senior managers (25 years to 40 years) rates would be: £ 35.95

Pay As You Go:

For lower level employees (18 years to 25 years rates would be: £ 3

For senior managers (25 years to 40 years) rates would be: £ 5

PROMOTIONAL ACTIVITIES

Most of the initial subscriptions should be free for initial employees in order to attract the employees. It has been proven through research that those employees that are offered different promotional coupons or offers have a 68% pass rate and they ultimately prefer that health club. For instance, if the first month’s membership is free then 20% of the employees would be enticed to join the health fitness club (Weitz, 1990). On the other hand, if further offer is given on the joining fee, such as half joining fee, then it would attract 15% more employees to join the club. This might put a burden over the company and cost might increase for the Gym initially, however, it is going to benefit the business in the long run.........................

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