CASE STUDY

Please read the case study below. It summarises a market research brief provided by your client called Fun Fit. Remember this is a fictitious company.

Market Research Brief

Company Background

Fun Fit is a fictitious gym chain in Singapore that provides its members with a combination of exercise and spa facilities. Fun Fit has positioned itself uniquely in the market as “the most luxurious gym in Singapore”. This gym offers 50 group exercise classes every week taught by the best-certified trainers, one-on-one personal training sessions, saltwater pools, sauna, and steam room, luxury massages, a healthy juice bar, WiFi access, and a relaxation lounge. And, from certain locations, members can enjoy scenic views of Singapore’s iconic skyline.

Capitalizing on trends of health and wellness, Fun Fit has experienced tremendous growth in the last 8 years. Fun Fit balances between having enough locations to make it convenient for members but not so many that the gym loses its exclusivity. It has expanded its network and now has 10 locations around Singapore. Fun Fit has 3,000 members on its database.

Current Situation

The fitness industry in the Asia-Pacific is worth US$16.8 billion (S$22.8 billion), according to a 2019 report by Deloitte and the International Health, Racquet, and Sportsclub Association. The region’s health and fitness industry grew by 5.7 percent a year between 2014 and 2018, according to a US-based market research agency, and is expected to hit 6.4 percent annually between 2018 and 2023.

There are several factors driving this rapid growth – many people are stepping up their pursuit of a healthier lifestyle, there is rising popularity of athleisure wear, and boutique gyms have given the fitness industry a new lease of life. There are many different types of gyms on offer to Singaporeans. Some gyms position themselves on providing maximum convenience to members (e.g., central locations and 24/7 opening hours); others position themselves on offering unique fitness experiences (e.g., HIIT classes, barre, and pole dancing studios); lastly, others position themselves on delivering luxury (e.g., premium trainers and facilities). Fun Fit has adopted this last position based on luxury.

Fun Fit has achieved consistent and strong growth in Singapore, especially considering this increasingly competitive landscape. Fun Fit believes it is more important than ever before to understand its members and enhance the member experience at every touchpoint. More specifically, Fun Fit’s CEO would like to ensure the company has a solid understanding of who exactly their members are and what their members think, feel, need, and want in relation to their health and fitness.

Market Research Requirements

Based on the above summary of the company background and current situation, the CEO of Fun Fit (your client) would like to better understand their member profile and their members’ experiences with Fun Fit gyms.

More specifically, your client has asked you to propose a market research project that addresses the following four research objectives:

1. To understand the usage habits of members when they visit a Fun Fit gym.
2. To understand members’ perceptions and attitudes towards the Fun Fit brand.
3. To identify Fun Fit’s member segments and describe the profile of the typical member.
4. To identify the factors that drive member experience with Fun Fit gyms.

The client has requested that you include two phases of market research in your proposal, each addressing particular research objectives, as outlined below:

Phase 1: A qualitative study to explore the usage habits, perceptions, and attitudes of Fun Fit members.

Phase 2: A quantitative study to measure the member profile and their experiences at Fun Fit’s gyms.

Sample requirements: Although Fun Fit cannot survey all 3,000 members on its database, it does want to ensure the results are representative of all members. In particular, the CEO wants to ensure that members from each of the different gyms (remember that Fun Fit has 10 locations across Singapore) are included in the sample. Fun Fit are prepared to pay for a more accurate and representative sample – however, the cost of their sample should be balanced with the benefits.

ASSESSMENT QUESTIONS

You need to complete ALL four (4) questions below. Ensure you respond to these questions adhering to the instructions and requirements stated on pages 1-2.

Your responses to these questions will comprise the proposal to the client, Fun Fit.

All of the information you need to complete these questions is contained in the case study and the knowledge and skills you have learned throughout the semester.

QUESTION 1

This question relates to Phase 1 (qualitative study) of the market research project and more specifically, Research Objective #1 about member usage habits.

You decide to recommend an observational method to address this research objective. Which specific observational method do you recommend and why? In your answer, identify the four unique characteristics of your recommended observational method, and discuss the advantages and disadvantages of observation as a data collection method in general. Explain to the client why observation is a useful research method for Phase 1 and for their project overall. List and briefly explain four (4) examples of what can be observed about Fun Fit members to address Research Objective #1.

Note: It is important that you apply relevant theory to the Fun Fit case study and the specific question i.e., do not repeat theory abstractly with no application to the case.

QUESTION 2

This question relates to Phase 1 (qualitative study) of the market research project and more specifically, Research Objective #2 about member perceptions and attitudes.

The client would like to conduct either interviews or focus groups to address this objective. Which of these research methods do you recommend and why? In your answer, define, compare, and contrast both interviews and focus groups in order to justify your recommendation. Explain to the client why your recommended research method (interviews or focus groups) is useful for Phase 1 and for their project overall, including how your recommended method will build on the observational data from Assessment Question 1 (above). Drawing on the principles of interviewing techniques, list and briefly explain four (4) different questions that would be relevant to include in either your interview guide (if you recommended interviews) or your discussion guide (if you recommended focus groups). You should make these questions specific to the Fun Fit case study and present the questions in an appropriate order for your interview/discussion guide.

Note: It is important that you apply relevant theory to the Fun Fit case study and the specific question i.e., do not repeat theory abstractly with no application to the case.

QUESTION 3

This question relates to Phase 2 (quantitative study) of the market research project and more specifically, Research Objective #3 about member segments and profiles.

For Phase 2, the client has prepared a survey in advance, which includes questions about members’ characteristics and experiences. You can see this survey on pages 8 to 10.

Considering the sample requirements given in the market research brief (page 4), make a recommendation on the specific sampling method that should be used in this research. In your answer, define the sampling method and outline the process of this sampling method, i.e. how it would be implemented for Fun Fit, in particular. Further, explain the recommended sampling method’s advantages and disadvantages and justify why it is the most appropriate sampling method in this case.

Note: It is important that you apply relevant theory to the Fun Fit case study and the specific question i.e., do not repeat theory abstractly with no application to the case.

QUESTION 4

This question relates to Phase 2 (quantitative study) of the market research project and more specifically, Research Objective #4 about the member experience.

In order to understand member experience and identify factors that drive positive vs. negative outcomes for members, the client requests that you outline a data analysis plan for their survey (pages 8 to 10).

For each of the following hypotheses, please state:

• The most correct inferential statistical test
• The test type
• The number of variables involved
• The specific variables involved from the survey and the level of measurement scale each variable is expressed upon
• A justification for why the proposed test is correct for the hypothesis

You can present this information in a text or a table.

1. Hypothesis 1: The average rating of the importance of convenient location is greater than the importance of premium reputation.
2. Hypothesis 2: Overall satisfaction with Fun Fit is greater amongst members who prefer to work out in a group versus those who prefer to work out on their own.
3. Hypothesis 3: Member experience with Fun Fit is positively associated with the average number of times visiting per month.
4. Hypothesis 4: Preferred group exercise class is associated with the number of times visiting Fun Fit per week.
5. Hypothesis 5: The facilities a member has used at Fun Fit is associated with the location they most frequently attend.
6. Hypothesis 6: Likelihood to recommend Fun Fit to others predicts $ amount members are willing to pay for monthly membership.
7. Hypothesis 7: Importance of value for money differs between levels of yearly income.
8. Hypothesis 8: Gender, employment status, previous use of group exercise classes, and previous use of personal training predict satisfaction with the class schedule.