Case study on sports connection plc

1. Introduction

There are five different Sports Connection clubs in the Liverpool. In order to attract more customers, these clubs provide variable offers and frequently change their strategy to the customers at every month. For these reasons, as the chain of the health club operating, the sport connection plc recently evaluates the effects of various elements of their marketing strategy and gives four questions to answer.

According to the Sports connection clubs, there are rough two market strategies. One of them is Referral Programme, which means company will award the new member who bringing other new members. Another one called deadline effect. It is quite different with Referral Programme, …show more content…

It means January has the most efficient effect on the membership. The reason of this situation is that the January is the first month in the year. People have the New Year resolution to lose the weight. Another reason is the weather is too cold, some proper ate sports can build healthy body to defend the cold. In the model, the June’s coefficient is just -165.5000. The less new membership joins in the clubs. In the summer, some people will not attend the gym class because the weather is too hot, people will easily get to sweat and tired too go to gym, so some people quit the membership. Also it can be seen in the graph, the Adjusted R-squared is equal 0.500023. It means the relation between the membership and month factor is quite significant.

Dependent Variable: Q

Method: Least Squares

Date: 12/04/11 Time: 06:05

Sample: 2009M01 2010M12

Included observations: 24

Variable
Coefficient
Std. Error t-Statistic Prob.

C
1417.500
78.60715
18.03271
0.0000
JANUARY
297.5000
111.1673
2.676147
0.0202
FEB
-24.00000
111.1673
-0.215891
0.8327
MARCH
170.5000
111.1673
1.533725
0.1510
MAY
57.00000
111.1673
0.512741
0.6174
APRIL
122.0000
111.1673
1.097445
0.2940
JUN
-165.5000
111.1673