Oxygen Case Study

776 Words 4 Pages
Established in Tehran, Iran in 2003. Oxygen (Royal and Pro) is a full-service gym in Iran with only 2 differentiated branches which are located in Tehran. They offer the latest services, equipment’s like the latest cardiovascular and services for strength training with wide range of group exercises, massage, spa, pool and also high qualified staffs to help all kinds of people achieve their individual potential through fitness. Above all, you will experience an enthusiastic environment loaded with a wide range of individuals.
Likewise with any business endeavor, there are some industry-particular knowledge and cautious arranging which needs to be done to have a successful gym. Various key variables will have vast influence in the achievement
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They classified their customers into different groups, then they selected to attract the wealthy people and targeted them, at last they made their gym in the mind of them. Which means they applied the STP process well. (Marketing Principles, 2014)
Their pricing is also following their strategy, only ones are able to afford their membership packages that have been targeted. So no matter what they are going to gain more and more profits day by day.
Staffs of a gym generally interact with members so only the qualified ones should be hired and this is what Oxygen group are doing. They gathered some of the well-known fitness trainers and instructors which are experienced and high qualified professionals which are really dedicated to help individuals achieve their wellness objectives.
Choosing the right location for their gym is one of their success factors. It is easily accessible for the market that they targeted. They targeted the wealthy people so gyms are located in an area which large population of them live there, which is North of Tehran. With offering plenty of free parking for their valued customers. (Scarborough and Cornwall,
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E. Deming, argued that success for small businesses requires “delighting” customers. (Cadden and Lueder, 2012)
Just like the first idea that came to their minds, building something that can beat every single gym in town and no one can compete with it in the same market, they made it unique to attract loyal members so targeted segments find it attractive and they are going to make more and more profit, which is the most important purpose of all businesses all around the world.
One of their best strategies is giving free memberships to national athletes and famous people therefore it will give them the guarantee that these gyms are completely differentiated from the other ones, using them to as a marketing tool to achieve their short and long term objectives.
As a recommendation, if they want to exist in this market and making more profit they need to expand, in main cities of Iran which they can apply their strategies as well, also there are more strategic locations in the Capital, Tehran which they are not covering them so by covering other tactical locations as well they are going to attract more

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