Premium Essay

Gnc Customer Loyalty

In: Business and Management

Submitted By viviantutuji
Words 626
Pages 3
Customer Loyalty
2013 (Promotion change)
GNC new Member Pricing Program known as the Member Price Program (allows members to access GNC's products at a reduced cost) A previous GNC loyalty program, known as Gold Card, has nearly 7 million active members who will be transferred to the new program.
For GNC, which sells commodity items such as vitamins and supplements that customers are likely to repurchase on an ongoing basis, a strong loyalty program can be a true differentiator from its competition. The brand believes its new pricing program is just that.
- In less than 2 months, GNC Holdings has added 3 million new customers to its Member Price Gold Card loyalty program that rolled out during May and June
Company accomplished its primary goals regarding the new Membership Price Gold Card customer loyalty program: * New Gold Card member acquisition * Increased flexibility to manage pricing * More transaction growth spread throughout the month * Improved price perception * Better program awareness among new customers.

Most significantly, the new Membership Gold Card program addressed the biggest customer complaint against the previous version of the program, which was the inability to use the card throughout the month. Under the new Member Price program, customers save up to 50% on every item everyday at any GNC store or on their website.

Under the old program, customers paid $15 for a one-year membership and received 20% off purchases during the first week of every month. The fee is the same fee for the new program, but discounts are now available anytime.

As the program rolls out and customers take advantage of everyday member pricing, GNC will micro-target its customers based on their buying patterns. The effort's goal is for consumers to benefit from a deeper dialogue with GNC.
GNC has high hopes that the outreach will draw…...

Similar Documents

Free Essay

Gnc and the 4 P's

...Second Final Business Analysis Project Assignment TA: Jason Steinberg (jss467) Product: GNC offers a diverse array of health and wellness products that all promote consumer weight loss, strength gain, and increased athletic ability. GNC Pro Performance AMP Amplified 100% Whey Protein is one of the firm’s top-selling products and is the most popular whey protein offered by GNC. This particular line of whey protein benefits all consumers from athletes and fitness enthusiasts to the average buyer looking to lose weight and improve overall strength and conditioning. GNC Pro Performance AMP Amplified 100% Whey Protein serves as both a daily meal replacement and as a supplement for workouts to aid in muscle recovery and development. The hydrolysates in the whey protein help the body’s cells process, store, and release amino acids in order to accelerate time needed for the body to recuperate. This is important for athletes who are straining their bodies regularly and need to be functioning well at a cellular level. Whey protein hydrolysates meet daily protein requirements and maximize muscle growth, helping to satiate feelings of hunger thus cutting fat and lowering body fat percentage in consumers. GNC Pro Performance AMP Amplified 100% Whey Protein is offered in chocolate and vanilla flavors to satisfy customers’ tastes and preferences, thereby appealing to a wider range of people and prospective buyers. One of GNC’s biggest competitors is Bodybuilding.com, an online retailer...

Words: 1305 - Pages: 6

Free Essay

Gnc Company Overview

...GNC stand for General Nutrition Corporation and is just that, a company that provides general nutrition and supplements for differing lifestyles. GNC has made it a point to welcome all lifestyles and all nutrition based consumers, however most stores are comprised of at least 50% sports nutrition and this is the main money maker for the company seeing as most sports nutrition supplements are the pricier items. However this does not stop them from offering any and all supplements online at www.gnc.com and gives the company a much wider and international presence in the market. Overseas and locally herbal supplements are very popular, however is undoubtedly obvious that the main target market are those looking to “live well” (the company’s motto)( "GNC: Vitamins, Supplements, Minerals, Herbs, Sports Nutrition, Diet & Energy and more - We're committed to exceeding your expectations."). The target market of active young adults is a perfect market for this firm seeing as most products are expensive and require a resupply every month, and since these products supplement a lifestyle, most of GNC’s customers see these expensive products as necessities and not luxury goods. The nutrition industry is a multi-billion dollar industry and in 2010 generated just shy of $30billion. That same year, $1.8 billion of that pot went into GNC’s pockets. (CITE) GNC holds only about 6% of the industry but has a fairly steady growth rate and expects to control roughly 10-12% within the next few......

Words: 455 - Pages: 2

Premium Essay

Marketing Plan

...and a set of processes for creating ,communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. Defining Marketing An organizational function and a set of processes for creating ,communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.  Marketing Management is the art and science of choosing target markets and building profitable relationships with them.  Structure of Flows Manufacturer markets Services, money Government markets Services, money Services Services, money Taxes Taxes, goods Taxes, goods Taxes, goods Money Money Consumer markets Intermediary markets Goods, services Goods, services Resources Resources Resource markets Money Money. . QUALITY IN MARKETING Quality has three dimensions Meeting and striving to exceed customers’ requirements. The absence of variation. Total organizational commitment. The best indicator of quality is customer satisfaction. Understanding the Marketplace Needs, wants, and......

Words: 1214 - Pages: 5

Free Essay

Marketing Plan

...prepared for Marketing BUSN3190N, taught by Professor Robert Everton. Table of Contents Page 1. Executive Summary……………………………………………………………………. 3 2. Background 3 3. Strategic Focus and Plan 3 Mission Statement 3 Goals 3 Competitive Advantage 4 4. Situation Analysis 4 SWOT Analysis 4 Competitor Analysis 5 Company Analysis 6 Customer Analysis 6 Industry Analysis 6 5. Market-Product Focus 6 Marketing and Product Objectives 7 Target Markets 7 Points of Difference 7 Positioning 8 6. Marketing Program 8 Product Strategy 8 Price Strategy 8 Promotion Strategy 9 Place Strategy……………………………………………………………………….. 11 7. Financial Projection…………………………..….…………………………………….. 12 8. Organization………………………..….……………………………..…………………..12 9. Bibliography………………………..….…………………………………………………13 1. Executive Summary 2. Background KS Inc, is a sports science company that will sell and distribute Pink Power, a pre-workout supplement for women exclusively through the internet website KSInc.com, Vitamin Shoppe, and GNC, giving customers 24-hour access to purchase from the website daily. Pink Power will become a juggernaut pre-workout and will include very necessary nutrients such as: Glutamine, Micronized Taurine, Amino Acids, Glucosamine, Fish Oil, Flaxseed Oil, Geranium Stem, and Schizandrol A. KS, Inc. has made the world’s first exclusive female pre-workout supplement in the history of......

Words: 4835 - Pages: 20

Premium Essay

Nestle

...creating and maintaining positive relationships with its suppliers all over the world. Due to the large purchasing power of Nestlé, and because the suppliers of agricultural commodities offer a product that is far from unique, Nestlé holds more bargaining power than its suppliers. Aside from this, Nestlé prefers to create and preserve long-term relationships with its suppliers as this helps to ensure the quality of the raw materials being purchased. In addition, Nestlé also offers useful advice to its suppliers on how to perform more efficiently to minimize unnecessary costs. Bargaining Power of Customers Customers have a large amount of bargaining power regarding their consumption of Nestlé products. As stated previously, there are close substitutes for Nestlé products which allows for the preferences of the customer to be very influential. Nestlé understands the power of the customer and has taken specific steps to meet the needs of its products consumers. Specifically, Nestlé is incorporating health and wellness into the creation of its products as society has started becoming more health conscious. Competitive Rivalry within the Industry Nestlé is a powerhouse in the food processing industry but so are Kraft Foods and Groupe Danone. These companies, among others, are in a constant and continuous battle to outperform one another. Regarding advertising alone, these companies spend hundreds of millions of dollars in an attempt to appear more desirable than......

Words: 3316 - Pages: 14

Premium Essay

Lululemon Case Study

...lemon has 47 manufacturers for its fabric * High competitions among the suppliers which reduce the cost of product to maintain the position * They can easily switch from one supplier to another for their fabric Bargaining power of the buyers. * It is high * Customer has many option to switch to low cost products. * Easily switch to the other brand New entry barriers * It's moderate in industry * There are already many players in industry like Nike, under armour which mainly focus on different market which is outdoor game like football, basketball which is men’s wear. * Lulu lemon is basically for the women wear. There are many players who design for women like Lucy, athleta, Gap, Bebe but they for sports wear not for yoga appeal. Rivalry among sellers into the industry * Bigger brand has more influence into the customer * Brand image play bigger role customer buy product because of brand name * Continuously innovation and new technology updates product which is similar to the other brands * Number of stores effect to increase sales and capture the market among the industry Substitute products * Substitute products are high * Customer can use other low cost dress for yoga like cotton shirt ,shorts,tees * Nike, under armour ,adidas offering sports appeals can substitute yoga clothing Swot analysis Strength * Strong relation Lulu lemon has strong relation with fitness......

Words: 1606 - Pages: 7

Premium Essay

Rite Aid Analysis

...health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, and other everyday and convenience products. Rite Aid also offers various photo processing services. Rite Aid runs its stores through its Wellness Plus loyalty program, Wellness format stores, private brands, and their strategic alliance with GNC, a leading retailer of vitamin and mineral supplements. Rite Aid has opened 2,100 GNC stores within their stores as of March 2013, which is approximately 47% of all stores. SWOT analysis can be used to identify Rite Aid’s strengths and weaknesses. The company’s key strength is its brand recognition and relatively large number of stores across the nation. It has geographic concentrations on both coasts and can leverage economies of scale in its value chain. Rite Aid also offers a wide range of products. However, the company has low customer satisfaction and limited offering of in-store services. Additionally, the company has a large amount of debt outstanding. Current demographic trends will lead to 40 million Medicare and Medicaid enrollees over the next thirty years, which provides tremendous growth opportunities for Rite Aid in the form of new prescription customers. The greatest threat to Rite Aid is competition from big box and grocery retailers. Rite Aid employs a hierarchical structure in which functional group heads report to the Chief Executive Officer. This appears to be the industry norm as most of......

Words: 3178 - Pages: 13

Free Essay

Competitive Analysis of Walgreens and Cvs Pharmacies

...Care Plus CVS/pharmacy, Care Plus, and Rx America to providing pharmacy benefit management services to employers, insurance companies, and other organizations. Their online retail sales operate under the name CVS.com offering most of the same products as the retail stores. CVS/Caremark also offers customers the ability to refill prescriptions online.1 According to the Walgreens 2011Annaul Report, Part 1; as of August 31, 2011, there were 8,210 retail locations in 50 states, the District of Columbia, Puerto Rico and Guam operated by Walgreens. Additionally, Walgreens operates 357 Take Care health clinics. The 8210 retail locations are broken down into 7,761 drug stores, 355 worksite facilities, 83 infusion and respiratory services facilities, 9 specialty pharmacies, and 2 mail service facilities. Walgreens currently employs 247,000 people. Their online operations include offering includes most of their general merchandise from beauty products to health and wellness products including home medical equipment. The company has added mobile applications for mobile devices that allow customers to refill prescriptions, download weekly promotions and through location services customers can find a Walgreens drugstore near their location.2 History Consumer Value Stores (CVS) Caremark opened their first retail store in 1963 is founded in Lowell, Massachusetts by brothers Stanley and Sidney Goldstein and partner Ralph Hoagland. The operation the pharmacy departments did not occur......

Words: 10113 - Pages: 41

Premium Essay

Whole Foods Swot Analysis

...Joe's. The company also acquired Amrion, a company specializing in nutraceuticals (natural supplements with pharmaceutical-type benefits), creating considerable competition with General Nutrition Centers (GNC) nutritional supplements and dietary products. Additional competition is taking place in traditional grocery stores incorporating some organic products on to their shelves. 1. (b) The attractiveness of this industry and its potential for profit are functions of Michael Porter's five competitive forces model: barriers to entry, bargaining power of both suppliers and buyers, the threat of substitute products, and the depth of competition among rival companies. Barriers to Entry Currently, Whole Foods has no significant barriers to entry. Americans are becoming more food and health conscious and Whole Foods is catering to this demand by becoming the premier outlet for all-natural, organic food products, while creating a unique, cohesive brand. The company is growing a loyal customer base, and is offering the majority of its products at competitive prices. With more than 300 stores located in the US, the UK and Canada generating twice the revenue per square foot as almost all its competitors, the capital requirements for success are solid, and the switching costs for customers are low. Perhaps the only real barrier to entry is the minimal 3% requirement by the government for organic farming. With farmers only producing such a small supply of organic product, the lack......

Words: 1854 - Pages: 8

Premium Essay

Naked Juice Brand Profile

...Juice’s general manager. “Naked Juice is brand that strongly resonates with consumers. We are all about 100 percent juice and using the best bare naked fruit in all of our products.” Brand Price: During November of 2006 Naked Juice Company was sold to PepsiCo at a little over 350 million dollars. The company will be added to its Tropicana division’s portfolio of brands, and it will be designated as one of Pepsi’s healthy-food offerings. This can help Naked in finding better places for sale. With an average price of $3.00 per bottle of juice Naked makes 25 drinks and has annual sales of more than $150 million. (Ceibs 2005) Brand Core Value: If competition lowered its price, consumers would still purchase Naked brands because of brand loyalty and brand quality. They are loyal to the Naked Brand because Naked Juice has proven to be of value to the consumer. It always tastes good and makes a point of tasting better than generic brands. Brands Primary competitors: Naked Juice’s main competitor within the super-premium juice category is Odwalla, which is owned by Coca cola, PepsiCos competitors. . Other Naked competitors include Hansen’s Natural and Bolthouse Farms. Brand Logo: Tag: “Nothing to Hide” Brand Design & Packaging: Naked is the fist nationally distributed brand to utilize 100 percent recycled bottles. (ReNEWabottle) Which they estimate will reduce Virgin Plastic Consumption By 8.1 Million Pounds Per Year. Simpler and consistent design architecture......

Words: 1695 - Pages: 7

Premium Essay

International Management

...collected: OFFICE USE ONLY BUS323DINTERNATIONAL MANAGEMENTMAJOR PROJECTOSIM INTERNATIONAL LTD | | | Lecturer’s Name: Dr. Juergen Rudolph TEAM MEMBERS LIANG TIANSHU JOEL (30767088) GOH WEI SIONG (32045172) LEE WEI TECK BRANDON (32091107) CHENSON ANG (32097446) LIM MING YAO (32129481) TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY 6 2.0 INTRODUCTION 7 3.0 INDUSTRY BUSINESS DESCRIPTION 8 4.0 COMPANY DESCRIPTION 9 5.1 TYPE OF BUSINESS 9 5.2 LEGAL STRUCTURE 11 5.3 HISTORY/MISSION/GOALS/OBJECTIVES 11 5.4 COMPANY PRINCIPALS/OWNERSHIP STRUCTURE 12 5.0 PRODUCT/SERVICE FACTORS 13 6.5 PRODUCT/SERVICE ANALYSIS 13 6.6 CUSTOMER PROFILE/DEMAND ANALYSIS 14 6.7.1 MARKET SUMMARY 14 6.7.2 MARKET SEGMENTATION 15 6.7 COMPETITIVE SITUATION 20 6.0 ENVIRONMENTAL FACTORS 22 7.8 SWOT ANALYSIS 22 7.9 PESTLE ANALYSIS 26 7.10 HOFSTEDE’S CULTURAL DIMENSIONS 30 7.11 GOVERNMENT CONSTRAINTS/INCENTIVES 32 7.0 BUSINESS STRATEGIES 33 8.12 MODE OF ENTRY 33 8.13 PRODUCT POSITIONING 33 8.14 MARKETING MIX 35 8.15 DISTRIBUTION AND LOGISTICS 37 8.16 ESTIMATED SALES/SALES MIX 38 8.17 PRODUCTION/SERVICE STRATEGIES 39 8.0 FINANCIAL PLANNING 41 9.18 COST ANALYSIS/FUNDING/CASH......

Words: 12161 - Pages: 49

Premium Essay

Apple Watch Marketing Plan

...provide consumers with the opportunity to select the storage capacity that suits them best; 8GB or 16GB. Pricing The first generation Apple Watch prices will be reduced with the launch of the new Apple Watch 2. The prices of the Apple Watch 2 will most likely be similar to the current prices of the original Apple Watch launch when it was first released. Appearance | Starting Price | | 38mm: $34942mm: $399 | | 38mm: $54942mm: $599 | | 38mm: $10,00042mm: $12,000 | Distribution The Apple Watch 2 will be available for sale to consumers at the locations below: * Online * Apple Store * Major Retail Stores (i.e. Walmart, Best Buy, AT&T, etc.) * Sporting and Goods Stores (Nikes, Sports Authority, GNC, etc.) Advertising Apple Inc. will continue to promote this new product through social media, television commercials, billboard posting, word of mouth (WOMM), the internet, etc (Kotler & Keller, 2015). Market Segmentation Apple has segmented themselves as a company that produces a high quality, high priced item that caters to the needs and wants of everyone. They seek to provide a product that meets the needs of the middle to upper class, but they also try to meet the needs of the lower class by producing different price variations of their well-known products. Every product they make, including the watch, has different price variations for each consumer they are trying to get. Apple does a great job of not trying to only......

Words: 4087 - Pages: 17

Premium Essay

Business Plan

...creates brand loyalty among customers. The same strategy that gains market share through perceived quality or cost savings may create loyalty from consumers. The company must continue to deliver quality or value to consumers to maintain customer loyalty. In a competitive market, when a product doesn't maintain quality, customers may turn to a competitor (Kelchner, L. n.d.). Although the quality of a product is very important, it equally important to know how and where to sell a product for it to be successful. Natural Vitality Energy Drink will be distributed through grocery stores, drugstores, Walmart, SAMS, GNC, on college campuses and libraries, and L.A. Fitness. It is important that Vitality Energy Drink have a specific distribution strategy to maximize revenues and to increase competiveness and sales. Natural Vitality Energy Drink is manufactured by Starrs to the Skye Beverage Company and all of the products will be distributed from the manufacturing company straight to the designated sellers. Risk management is a significant function in organization/business today. Companies undertake increasingly complex and ambitious projects, and those projects must be executed successfully, in an uncertain and often risky environment (Learning to Prioritize Risks, n.d.). Risk Management Matrix No. | Risk | Level of Risk | How to Mitigate? | New Level of Risk | 1. | Competition Risk | High | Price products at a reasonable price | Moderate | 2. | Potential customers not......

Words: 4684 - Pages: 19

Free Essay

Consumer Behavior: Brainfluence

...Summary Section 1: Price and Product Brainfluence. This section starts with the idea that the less pain customers experience when paying, the more they buy. Certain approaches are used to help with the pain. Bundling products are perceived in a better way since it is hard to evaluate how fair the deal is. Credit cards also help since there is no physical cash going out of pocket. The exposure to price in a constant way is also detrimental in the purchasing behavior. The use of money cues in advertising is also very popular but it strongly depends on the product you are trying to sale to determine if this is a good idea or not. Money images increase selfish behavior so this would be appropriate to satisfy selfish needs like financial independence. Customers set in their mind certain prices for different categories of products and marketers take advantage of what they call anchoring. For example, releasing the IPhone 6 at a premium price and months later dropping the price to make it look like a bargain when in reality still very expensive. However, certain premium products wont work with this strategy and a clear example is wine which the higher the price, the higher the benefit perceived. Decoy marketing is a very interesting concept because you can boost sales by just manipulating the different options you offer. A decoy option makes other options look like a better value and this happens because our brain is always ready to compare. There are 2 ways to do this, by......

Words: 7168 - Pages: 29

Premium Essay

Olam Report

...to Singapore Global Talent Pool launched signature ‘Rite of Passage’ programme. All new joinees posted to tough locations in emerging markets. Listed on the Singapore Exchange volume handled Rainforest Alliance and Guardian Group Awards for sustainability 2.1m Ha of land under Olam management 3.9m Hewitt Associates, RBL Group and Fortune Award for Global Top Companies for Leaders farmers directly supplying Olam Soluble coffee plant in Vietnam inaugurated, signalling our extension into midstream activities Traded volume crossed 10m MT mark 135 global processing units 1989 1990 1996 1998 2002 2005 2006 2007 2009 2010 2011 2012 2013 13,800 customers Headquarters moved to London Private Equity investments from Russell AIF, IFC and Temasek Holdings Traded volume crossed 2.5m MT mark Launch of acquisition phase starting with Queensland Cotton Holdings, Australia and Universal Blanchers, USA. Significant upscale of Packaged Foods’ downstream operations through the acquisition of OK Foods, leveraging African consumers Our move into upstream started with the acquisition of Timbercorp’s almond orchards in Australia US$40m invested in 190 CR&S initiatives, including staff costs 58.5% ownership by Temasek Holdings following Voluntary General Offer Asian Human Capital Award for innovative and impactful people practices FY1989 FY1994 ...

Words: 89982 - Pages: 360