How to Sell Gyms to Millennials
What's the best strategy to persuade Millennials to subscribe a Virgin Active membership if they don't know about the brand, feel disconnected to it and think the gyms are too expensive? Four students of the MSc in Marketing Management, Vera Ambrogiani, Davide Colombo, Martina Rizzi and Daniele Capozucca (pictured below) proposed a new format called Livin' Club, smaller gyms located in the heart of the cities with a warm, cosy, homey atmosphere. Yesterday morning their project won the "Y Generation" contest during a ceremony that took place in Aula Perego. Luca Valotta, President of Virgin Active Continental Europe, congratulated them and the other nine teams that reached the finals. "I've heard more ideas today than in the last ten years of boring marketing meetings", he said half-jokingly.
It all started in mid-October when the students of the "Understanding Consumers" and "Marketing dei servizi" classes of the MSc in Marketing Management were invited by Virgin Active to study the behavior of the Millennials, i.e. young people aged 18-28. Who are they? How do they behave? What do they buy? How do they get information? The aim was to identify the best way to attract a target not used to physical activity indoors. Divided into thirty groups tutored by the teachers of the two courses, respectively Stefania Borghini and Antonella Carù, before Christmas the students presented their projects in classroom. Only the top ten had access to the final yesterday. They were judged by a jury of Virgin Active representatives, journalist Fabrizio Lucidi (Il Giorno), and blogger Daniela Schicchi (Articolo Femminile).
"The learning-by-doing teaching model" Borghini says "allows students to take on the company's challenges and have the chance to apply what they learned in the classroom. Whilst working in a team with colleagues they haven't chosen makes them face real stress levels". At first the task seemed daunting: Virgin Active is a successful company, but its core target is aged 25-45. "They were discouraged. It looked like they couldn't do anything about it. Once they overcame the crisis, they finally understood what is a marketing challenge. If they had only studied success cases they wouldn't have learned how to solve the problem effectively".
Bocconi students have suggested Virgin Active offer new tailor-made services: study rooms so that students might attend the gym in the afternoon; flexible membership options; outdoor activities; apps with new features; partnerships with car sharing and carpooling services to reach out-of-town gyms; equipment booked in advance. And also, a new communication strategy to change price perception; partnerships with sporting events; flash mobs; meetings in schools and universities; interactive sports challenges; a better social networking.
"We have stolen you a lot of ideas", confessed Federica Galgani, Head of Marketing of Virgin Active. "Some of them are already part of our 2015 acquisition campaign". Members of the winning team got a three-month membership. All the participants received a starter pack featuring gadgets like earbuds and water flasks that the students themselves suggested to distribute to Virgin Active members. Graziano Coccettini, HR Director of Virgin Active, disclosed that two internships will be offered to the best students that took part in the "Y Generation" contest. The challenge goes on.