Question

You're opening up a new gym which will consist of all new and innovative machines (unlike which are seen in any gym) and you're supposed to market it and get members for he same? what price will you be charging them and why?

Answer 1

Since the equipments are new, innovative and not found in any other gyms meaning thereby they are unique and have the potential to create appeal among the outdoor enthusiasts, athletes and sports people. I will thus follow the Skimming or premium pricing strategy for the products while selling them and target high end customer base for offering the gym membership so that only those prospects are approached who can afford the equipments and prime memberships. My prices for such items will be set high in the begining but will then be gradually declined once the market evolves so as to capture larger market base once the adequate returns from the investments made in such equipments are gained. Moreover the prices for the items will be set in accordance to the average industrial trends so that the price stays competitive and relevant in the industry. The price will also represent the value preposition of the innovative products being offered by highlighting their significance and benefits.

I will charge them moderately high then rest of the offerings to position the gym and equipments in their minds as superior than the rest and endorse them through popular faces or celebrities. This pricing strategy will help me to maintain a strong threshold in the highly competitive environment and will help to attract more profits also.

In order to promote the equipments in the market i will use celebrity endorsement and co-branding. I will advertise the gym through hiring celebrities as brand ambassadors such as athletes or sport people who will create appeal among customers and help to build trust among customer base. Cobranding will involve associating the name of gym with currently recognized brand to gain publicity and build awareness among customers.

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Thanks dear student.. Hope this helps... Rate if satisfied... Comment for any changes or confusions. :) stay safe