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PureGym Marketing Research

The study is about what solution PureGym should take to increase its sales in the UK market, it demonstrated PureGym's situation in 2021. The purpose of the study was to find possible solutions for PureGym to increase its sales according to its situation.

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​Summary

PureGym:

  • is a gym and fitness operator in the United Kingdom. 

  • was established by serial entrepreneur Peter Roberts in 2008.

  • has around 34% of the market share in the low-cost fitness market. The Gym Group is its largest competitor. 

  • has been affected by a drop of around a third in its business revenue in 2020 as the worldwide COVID-19 crisis.

  • is facing a serious threat of sales dropping because of its competitors and the new trend of online training.

Background

PureGym's Background & Business Analysis

Market share of the UK fitness operators (PureGym & its competitors) and SWOT analysis were used to analyze PureGym's business.

PureGym background & business analysis
PureGym SWOT

Problems

Management Decision Problem

What solution should PureGym take to increase sales in the UK market?

Marketing Research Problem 

Investigate consumers' preferences and factors in choosing gym membership.

Research Objectives

1. Identify the key factors consumers take into consideration in choosing a gym operator/membership.
2. Identify PureGym competitors.
3. Evaluate how well existing PureGym (membership) meet consumers’ needs.
4. Suggest possible solutions for increasing sales of PureGym in the UK market.

Research Methods

Key Findings

1) Qualitative Research: One-to-One Interview x 2

The qualitative research was conducted separately with two selected participants who are between eighteen to twenty-five years of age, with experience in working out in a gym regularly with an activated gym membership currently.

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Covered Areas:

  • The general attitude toward gym centres

  • Price and purchase of gym membership

  • Attitude toward brand 

  • The perfect image of gym centres or memberships

  • Advertising

Key Findings of Qualitative Research

  • PureGym has a good reputation and a large structure in the UK. Overall, PureGym got the highest score in general in comparison with its competitors.

  • Covid-19 do affect the consumers’ willingness and frequency of going to a gym centre, it is mainly depended on their individual attitude.

  • Price, service convenience and actual experience are the factors to consider. Price had been mentioned mostly and placed as the heavier factor in choosing a gym centre or a gym membership.

  • Brand image, loyalty and the level of liking the brand would affect the willingness of purchasing or recommendation to their friends. 

  • The two participants have different opinions towards the advertising of PureGym. It might depend on their preferences.​

Research Framework

Service Convenience

Price Perception

Loyalty

External Search Effort

Attitude Toward the Ad

Consumers’ Willingness of purchasing a membership of PureGym

 Increase Sales in UK

Control Variables:
How much do consumers like the brand Gender

2) Quantitative Research: Online Questionnaire

In the quantitative research, an online questionnaire had been used to question the respondents. By using convenience sampling, the sample size was aimed at 50. As a result, 54 valid responses had been collected.

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Covered Areas:

  • Service convenience (access)

  • Price perception (store comparison)

  • Loyalty (willingness to pay more)

  • External search efforts (information) 

  • Attitude toward the ad (Overall)

  • Consumer willingness of purchasing the membership

  • How much the consumers like PureGym

  • Gender & Age 

PureGym Pie chart.png

Key Findings of Quantitative Research

  • The majority of respondents like PureGym the most among the four lead gym operators in the UK.

  • 96.3% of respondents have neutral to positive ratings toward PureGym while 3.7% of the respondents have negative ratings of PureGym. 

  • The majority of respondents (83.4%) with neutral to positive ratings on PureGym believe the consumption of buying a gym membership of PureGym is worth it. It could be hypothesized that if the consumer does not have negative feelings about PureGym, the willingness of purchasing a membership of PureGym of the consumer will be high.

  • Over 80% of the respondents believe that PureGym’s membership can fulfil their needs.

  • Service convenience is the only factor that has a significant relationship with consumers’ willingness of purchasing PureGym’s membership in the UK. It would be hypothesized that if the consumer thinks the service convenience of PureGym is high, they will be more willing to purchase a membership from PureGym. 

Solutions

Conclusions

Service convenience had been confirmed by the quantitative research after the qualitative research. There is a positive significant relationship directly between service convenience and the consumers’ willingness of purchasing a PureGym membership in the UK. However, the price which was repeatedly mentioned in the qualitative research had been proved differently with the result of quantitative research which the price is not significant with the purchase willingness. It might because of the limitation of the research which affects the accuracy due to the small sample size.

Recommendations

To boost PureGyms’ UK market sales,
PureGym can:
1. Add more gym hotspots 
2. Provide free parking
3. Adjust the policy of members entering the hotspot
4. Achieve a real 24 hours operation (Hire night shift on-site staff &      Provide 24 hours online live chat service) 

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