PROPOSED MARKETING STRATEGY TO INCREASE NUMBER OF CUSTOMERSTROUGH EXPERIENTIAL MARKETING (STUDY CASE: A YOGA STUDIO IN JAKARTA SELATAN)

Ghassani Nabila Tanri, Nila Armelia Windasari

Institut Teknologi Bandung, Indonesia

ghassani_nabila@sbm-itb.ac.id, nila.armelia@sbm-itb.ac.id

Abstract

In May 2021, a new workout studio focusing on yoga classes officially launched. The yoga studio located in a very accessible area in South Jakarta. After a year of growing slowly, in the 3rd quarter of 2022 the studio faced a stagnancy on the number of customers. The studio’s marketing activites has only been focusing on its activation on social media specially Instagram which has successfully increased the followers number but failed to convert it into the studio’s customers by signing up for the classes. The studio then started to do some effort in another form by doing a special event collaborating with other brands resulting in new customers. The effort has shown the studio a high potential to acquire more customers, it also brought the studio to realize that the intangibility of their service can’t be promoted only through digital marketing. Based on this realization, a deeper reasearch then conducted to propose a new marketing strategy for the studio. Knowing the business issue of the studio, after analyzing the business situation, a root cause analysis then conducted using Current Reality Tree (CRT) resulting in 3 root causes. These root causes then led to some findings on the literature review and formed the conceptual framework which consisted in physical experience, servicescape, and brand collaboration that leads to customer’s experience resulting in patronage. Based on the findings, a online survey using questionnaire was conducted. The data proceeded using the multiple linear regression method by seeing the significance number then drawn into partial regression plot. After analyzing the result, the solution and implementation plan then formed.

Keywords: yoga studio, experiential marketing, physical experience, servicescape, brand collaboration, customer’s experience, patronage

Introduction

Physical activity has been proven to maintain healthy body weight, improve mental health, quality of life, and overall well-being. Besides that, it also helps to prevent several diseases. Physical activity refers to various forms of movements such as running, cycling, swimming, and other sports that are available at any level. Based on a percentage by the World Health Organization (WHO), current global estimates show 81% of adults don't do enough physical activity. This high percentage is caused by increased use of technology for work, shifting transportation patterns, and rising sedentary lifestyles (who.int).

During the Covid-19 pandemic, consumers in Indonesia are adopting a more ‘health and hygiene-oriented lifestyle. Based on a consumer survey across Indonesia by SurveySensum in partnership with the Mobile Marketing Association (MMA), there are 7 keys of health and hygiene activities increasing due to Covid-19. The 7th highest key activity is sports/fitness activity with an 18% increase. This data shows that the sports/fitness industry in Indonesia is growing.

Figure 1. Key Activities Increasing due to Covid-19 in Indonesia

Source: SurveySensum, Jakarta Globe, Channel News Asia

The data above reflected the growing interest in the idea of wellness living. Due to the busy lifestyle in Jakarta, it is believed that rising levels of stress and workload increase awareness of keeping a healthy balance of the body and mind which has become a popular trend among communities. Harvard Health Publishing stated that yoga, an ancient practice, has grown in popularity in today’s fast-paced society, providing many mental and physical benefits. Yoga helps to develop inner awareness, become mindful, boost weight loss and weight maintenance, enhance fitness, and have cardiovascular benefits.

In May 2021, a new workout studio focusing on yoga classes officially launched. The yoga studio is located in a very accessible area in South Jakarta. After a year of slow growth, the studio's customer base reached a halt in the third quarter of 2022. The studio's marketing activities have solely focused on its activation on social media, particularly Instagram, which has successfully increased the number of followers but has failed to convert them into studio’s customers by signing up for classes (Yuan & Wu, 2008). The studio then began to make an effort in another form by hosting a special event in collaboration with other brands, which resulted in new customers. The effort revealed to the studio a high potential for acquiring more customers; however, it also revealed to the studio that the intangibility of their service cannot be promoted solely through digital marketing (AMEUR, Keltouma, & SOUAR, 2015). Based on this realization, further research need to be conducted.

In the 3rd quarter of 2022, the yoga studio’s number of customers were stagnant. By the data shown below, in July 2022, 102 out of 127 classes are only attended by 1-9 people meaning only half of the ideal total people/class which is 18 people/class. The studio’s marketing strategy has only been focusing its activities on Instagram which has increased the followers only and not succeeding on acquiring more people to sign up for the classes (Hauser, 2007). Compared to its mature competitors, the studio has not been able to form its own community. In August 2022, the studio collaborated with a sportswear brand on a special yoga class held at the studio, the collaboration brought some new customers to join the studio’s regular classes. This kind of strategy can help the studio to increase the number of its customers. But, in order to generate a satisfying outcome, the studio needs to do a deeper research.

Table 1. Yoga Studio Class Fee

Source: Yoga Studio Company Profile

The objective of this research is to analyze and propose a marketing strategy to increase the number of the yoga studio’s customers. There are three objectives of this research to analyze the factors that influence the stagnancy of customer numbers of the yoga studio, to discover the factors that would help the yoga studio to increase the number of customers, and to create the implementation plan of the proposed experiential marketing strategy for the yoga studio (Smilansky, 2009).

Metode

For this research, the data will be collected as primary and secondary data collection. The data will be collected through an online survey using a questionnaire. The questions are related to one’s interest, experience, and preference in the yoga studio’s services. It will be specified on how experience, servicescape, and brand collaboration has an impact on potential customers' interest in joining the studio.

The extension of simple linear regression to incorporate many explanatory variables is known as multiple linear regression. In both scenarios, we continue to refer to the explanatory variables as being linearly combined because we believe that the relationship between the response variable and these factors is linear (Gray, 2005). Although it has extra terms, the equation for multiple linear regression has the same form as the equation for basic linear regression (Tranmer, 2020).

This research will be using two data collection methods which are primary and secondary. The business issue will be discussed resulting in an action plan for further implementation, so the primary data collection will be collected as a quantitive approach through an online survey using questionnaires, and the secondary data collection will be collected through a research-based published or unpublished reports, journals, and books that are related to the business issue and any theories related to the research.

Hasil dan Pembahasan

1. Analysis

An online survey through questionnaire was conducted to see the importance of physical experience, servicescape, and brand collaboration in getting people to join the yoga studio. The data then processed using regression method to find the significance and coefficiency of each aspects to joining the yoga studio.

Physical Experience & Servicescape

ANOVA^a
Model		Sum of Squares	df	Mean Square	F	Sig.
1	Regression	35.286	4	8.821	4.493	.002^b
	Residual	386.739	197	1.963
	Total	422.025	201
a. Dependent Variable: What factors are important for you when joining a yoga class? b. Predictors: (Constant), How helpful is the signage to you?, How accessible is the yoga studio's location to you?, How efficient is the yoga studio's layout flow to you?, How do you think about the yoga studio's equipment? (Yoga mat, yoga block, yoga strap, yin bolster, yin ball, dumbbell, pilates ball, pilates band, disinfectant spray, etc)

Coefficients^a
Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.
		B	Std. Error	Beta
1	(Constant)	4.771	.718		6.649	.000
	How accessible is the yoga studio's location to you?	-.139	.100	-.111	-1.392	.166
	How efficient is the yoga studio's layout flow to you?	-.473	.173	-.263	-2.735	.007
	How do you think about the yoga studio's equipment? (Yoga mat, yoga block, yoga strap, yin bolster, yin ball, dumbbell, pilates ball, pilates band, disinfectant spray, etc)	.058	.195	.030	.300	.765
	How helpful is the signage to you?	.081	.158	.042	.511	.610
a. Dependent Variable: What factors are important for you when joining a yoga class?

The regression plot of both factors above shows that the more factors that are important when joining the yoga studio, the smaller the perception of the efficiency of the layout flow and vice versa (Ali & Raza, 2017).

Waiting Room & Locker Area

ANOVA^a
Model		Sum of Squares	df	Mean Square	F	Sig.
1	Regression	132.849	4	33.212	22.626	.000^b
	Residual	289.176	197	1.468
	Total	422.025	201
a. Dependent Variable: What factors are important for you when joining a yoga class?
b. Predictors: (Constant), Waiting Room and Locker - Physical-senses, Waiting Room and Locker - Cognitive, Waiting Room and Locker - Affective, Waiting Room and Locker - Physical-feels

Coefficients^a
Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.
		B	Std. Error	Beta
1	(Constant)	1.942	.128		15.223	.000
	Waiting Room and Locker - Cognitive	.502	.116	.270	4.344	.000
	Waiting Room and Locker - Affective	.076	.098	.049	.780	.436
	Waiting Room and Locker - Physical-feels	.103	.153	.043	.673	.502
	Waiting Room and Locker - Physical-senses	.369	.061	.391	6.086	.000
a. Dependent Variable: What factors are important for you when joining a yoga class?

There are two factors that have significant differences, namely Cognitive and Physical Senses in the Waiting Room & Locker room. Affective and Physical-feels can be stated to have no significance in the factors that are important when individuals joining the yoga studio.

Main Studio

ANOVA^a
Model		Sum of Squares	df	Mean Square	F	Sig.
1	Regression	131.102	4	32.776	22.194	.000^b
	Residual	290.923	197	1.477
	Total	422.025	201
a. Dependent Variable: What factors are important for you when joining a yoga class? b. Predictors: (Constant), Main Studio - Physical-senses, Main Studio - Affective, Main Studio - Cognitive, Main Studio - Physical-feels

Coefficients^a
Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.
		B	Std. Error	Beta
1	(Constant)	1.936	.127		15.297	.000
	Main Studio - Cognitive	.265	.104	.168	2.552	.011
	Main Studio - Affective	.005	.086	.004	.062	.951
	Main Studio - Physical-feels	.388	.138	.194	2.817	.005
	Main Studio - Physical-senses	.318	.057	.364	5.535	.000
a. Dependent Variable: What factors are important for you when joining a yoga class?
There are three factors that have significant differences, namely Cognitive, Physical-feels, and Physical-senses in the Main Studio. Affective factors in the Main Studio can be stated to have no significance in the factors that are important when individuals joining the yoga studio.

Toilet and Shower

ANOVA^a
Model		Sum of Squares		df	Mean Square		F	Sig.
1	Regression	121.550		4	30.388		19.923	.000^b
	Residual	300.474		197	1.525
	Total	422.025		201
a. Dependent Variable: What factors are important for you when joining a yoga class? b. Predictors: (Constant), Toilet and Showers - Physical-senses, Toilet and Showers - Physical-feels, Toilet and Showers - Affective, Toilet and Showers – Cognitive
Coefficients^a
Model			Unstandardized Coefficients			Standardized Coefficients			t	Sig.
			B		Std. Error	Beta
1	(Constant)		1.894		.157				12.029	.000
	Toilet and Showers - Cognitive		.564		.086	.430			6.578	.000
	Toilet and Showers - Affective		-.020		.079	-.016			-.247	.805
	Toilet and Showers - Physical-feels		.074		.120	.038			.616	.538
	Toilet and Showers - Physical-senses		.223		.062	.228			3.587	.000
a. Dependent Variable: What factors are important for you when joining a yoga class?

There are two factors that have significant differences, namely Cognitive and Physical-senses in the Toilet and Showers. The Affective and Physical-feels factors in the Toilet and Showers can be stated to have no significance in the important factors when individuals joining the yoga studio.

Brand Collaboration

How likely are you going to come on a special event in collaboration with a local sports brand?

ANOVA^a
Model		Sum of Squares	df	Mean Square	F	Sig.
1	Regression	5.185	1	5.185	2.488	.116^b
	Residual	416.840	200	2.084
	Total	422.025	201
a. Dependent Variable: What factors are important for you when joining a yoga class?
b. Predictors: (Constant), How likely are you going to come on a special event in collaboration with a local sports brand?

It can be seen that the Sig value is greater than 0.05, thus, there is no variation between the two variables. In other words, H0 is accepted, which implies that there is no relationship between special event in collaboration with a local sports brands and joining the yoga studio (Walter, Ritter, & Gemünden, 2001).

Coefficients^a
Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.
		B	Std. Error	Beta
1	(Constant)	3.440	.463		7.435	.000
	How likely are you going to come on a special event in collaboration with a local sports brand?	-.171	.109	-.111	-1.577	.116
a. Dependent Variable: What factors are important for you when joining a yoga class?

How likely are you going to come on a special event with free discount voucher from local sports brand for every person?

ANOVA^a
Model		Sum of Squares	df	Mean Square	F	Sig.
1	Regression	9.646	1	9.646	4.678	.032^b
	Residual	412.379	200	2.062
	Total	422.025	201
a. Dependent Variable: What factors are important for you when joining a yoga class?
b. Predictors: (Constant), How likely are you going to come on a special event with free discount voucher from local sports brand for every person?

The Sig value shows 0.032 which means it is smaller than alpha (0.05 > 0.032) so H0 is rejected. It can be ascertained that there is a significant variation between special event with free discount voucher from local sports brand for every person and joining the yoga studio.

Coefficients^a
Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.
		B	Std. Error	Beta
1	(Constant)	3.816	.513		7.435	.000
	How likely are you going to come on a special event with free discount voucher from local sports brand for every person?	-.252	.116	-.151	-2.163	.032
a. Dependent Variable: What factors are important for you when joining a yoga class?

Based on the regression plot above, it can be seen that giving discount vouchers is inversely proportional to the increase in important factors when individuals joining the yoga studio.

How likely are you going to come on a special event with a giveaway from local sports brand?

ANOVA^a
Model		Sum of Squares	df	Mean Square	F	Sig.
1	Regression	6.040	1	6.040	2.904	.090^b
	Residual	415.985	200	2.080
	Total	422.025	201
a. Dependent Variable: What factors are important for you when joining a yoga class?
b. Predictors: (Constant), How likely are you going to come on a special event with a giveaway from local sports brand?

It can be seen that the Sig value is greater than 0.05, thus, there is no variation between the two variables. In other words, H0 is accepted, which implies that there is no relationship between special event with a giveaway from local sports brand and joining the yoga studio (Lefroy & Tsarenko, 2013).

Coefficients^a
Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.
		B	Std. Error	Beta
1	(Constant)	3.502	.465		7.524	.000
	How likely are you going to come on a special event with a giveaway from local sports brand?	-.181	.106	-.120	-1.704	.090
a. Dependent Variable: What factors are important for you when joining a yoga class?

2. Solution and Proposed Implementation Plan

Based on the research result analysis, below is the solution and proposed implementation plan to be conducted in the first quarter of 2023.

Physical Experience & Servicescape

1) Layout

Compared to other aspects such as location, equipment, and signage, layout is the only significant factor based on the research result analysis. Apparently, the yoga studio’s layout flow needs to be rearranged to be more efficient.

The existing layout above shows that from the entrance of the studio, guests are directly facing towards the main studio and the receptionist is nowhere near the entrance to greet them which most of the time confuses guests on which way to go as they have to confirm their reservation, place their belonging in the locker, and sometimes go to the toilet before entering the main studio.

Figure 2. The Yoga Studio Existing Layout

Source: Author

The proposed layout above shows that the receptionist is near the entrance, guests can directly notice the reception area and confirm their reservation, and also be directed to the locker, toilet, and main studio. Making this proposed layout is more efficient than the existing.

Figure 3. The Yoga Studio Proposed Layout

Source: Author

2) Cognitive

A space with lots of texture is quieter than an open space with clean, shiny surfaces. Highly reflective textures resulting in sound waves bouncing around all of the spaces for extended periods. As the background noise builds, the rooms in the facilities become less functional in engaging the cognitive aspect.

3) Physical feels

Physical feels aspect is related to making one feel energized, comfortable, relaxed, well-being, strong, reassured, and pleased. Natural elements are known to make people feel more relaxed and less anxious, especially in a closed space (Countryman & Jang, 2006). Decades of research confirm that some colors consistently evoke specific emotional responses. For some example such as; yellow is the only warm color associated with relaxation, green is a soothing, calming color which associated with balance, harmony, and nature, and blue is a color that communicates fresh, calm, and serenity.

4) Physical Sense

Physical sense aspect is more into sensory items such as spaciousness, pleasant lighting, pleasant temperature, good ventilation, good humidity, pleasant smell, and pleasant acoustics. These items are related to the room lighting types, air conditioning, room freshener, and wall types.

For physical experience and servicescape improvements, below is the proposed implementation:

Table 2. Implementation Table

Room / Area	Item	Estimated Fee
1. Waiting Room & Locker Area	Receptionist re-layout	-
	Install rugs in the middle of the room	IDR 5.000.000
	Replace downlight with warm white 3000K	IDR 600.000
	Install 2 spotlight above receptionist	IDR 200.000
	Add room diffuser on reception table	IDR 400.000
2. Main Studio	Remove wall mirror	IDR 1.500.000
	Wall treatment using textured neutral tone paint	IDR 2.500.000
	Replace the flooring with doff finished neutral wooden colored vinyl	IDR 3.500.000
	Replace existing downlights with dimmable and multi-colored downlights	IDR 1.800.000
	Replace mounted air conditioner with centralized air conditioner	IDR 10.000.000
	Add room diffuser	IDR 400.000
	Install integrated sound system	IDR 7.000.000
	Install wall acoustic	IDR 5.000.000
3. Toilet & Shower	Replace downlight with neutral white 5000K	IDR 400.000
	Install exhaust	IDR 2.000.000
	Add room diffuser	IDR 400.000

Brand Collaboration

Based on the research result analysis, the significance shows when offered a free discount voucher for every event participant. This means the potential customers are driven by promotion. Other than the discount voucher, the promotion could be in the form of a goodie bag and trial size product.

For this special event collaboration, a new brand will be chosen since the brand proposed before showed no significance. The brand chosen is Strongbee, a well-known workout class booking platform. Considering The yoga studio and Strongbee already have an established partnership, Strongbee also has held several successful collaboration events, has good partnerships with many health and beauty brands, and has 10.000+ active users. This would bring great potential for the studio to organize a special event collaboration and acquire more customers as the result.

The special event collaboration will consist of a special class: sensory vinyasa led by the studio’s teacher Inez at the main studio. The class type is chosen based on the highest percentage of online survey results using a questionnaire adding some of the factors of physical experience and servicescape, the teacher is chosen based on the data of the highest demand class of the studio for the last 3 months. The special class will be available to book via studio admin and Strongbee app as a form of profit sharing, both parties will promote each other by placing each other’s logo on every social content related to the special event collaboration, also the studio and Strongbee will hand out a goodie bag of class discount voucher and free product(s) sponsored by health & beauty brand(s) for every participant.

For brand collaboration, below is the proposed implementation plan:

Table 3. Brand Collaboration Implementation Plan

Party	Item	Estimated Fee
The Yoga Studio	Teacher: Inez	IDR 2.000.000
	Special Class: Sensory Vinyasa	Based on physical experience and servicescape improvements proposed implementation
	Venue: Main Studio	-
	50% booking slot via studio admin	-
	Strongbee logo placement on social content related to the special event collaboration	Sponsored
	Class discount voucher	Sponsored
Strongbee	Banner on app	Sponsored
	50% booking slot on the app	-
	Goodie bag: free product(s) of health & beauty brand(s)	Sponsored

3. Justification of Implementation Plan

Physical Experience & Servicescape

After careful consideration and budget allocation, the yoga studio is only able to focus on improving some of the physical experience and servicescape factors for the re-layout of the receptionist and main studio first. The re-layout doesn’t required any cost since it will only require moving some loose furniture such as the receptionist desk, chair, and waiting benches. For the physical experience and servicescape, the priority is to focus on items that are adding the missing factors such as:

1) Cognitive

The color of the wall and ceiling treatment in the main studio is plain cool white and 1 side of the wall is full of mirror, resulting highly reflective surface. Without having to remove the wall mirror and replace the flooring vinyl which will go over the yoga studio’s budget, treating the wall using textured neutral tone paint will terminate the highly reflective surface, engaging the cognitive aspect.

2) Physical feels

Since the interior of the main studio is neutral-colored dominant, it needs some colors to engage the cognitive aspect. Adding permanent treatment with certain colors is not suitable with the overall interior of the yoga studio, so replacing the existing downlights with dimmable and multi-colored downlights will be the solution. It will allow the teachers to change the lights’ color according to which emotional responses to stimulate during any class.

3) Physical sense

There are several points to reach the physical sense aspect through the interior of the main studio. The pleasant lighting could be reached through natural light by the window and artificial light by the dimmable and multi-colored downlights. Since the cost of installing centralized air conditioner is over the budget, relying on the existing mounted air conditioner and air circulation by the window is enough to reach the pleasant temperature, good ventilation, and good humidity for now. Currently, the main studio has no room fragrance installed, thus it is necessary to add room diffuser in some corner. The studio is located in a housing area where the area is not busy and noisy, meaning wall acoustic installation is not needed in the meantime.

Below is the accepted implementation plan that will be proceeded in the first week of February 2023.

Table 4. First Week Implementation Plan

Room / Area	Item	Estimated Fee
1. Waiting Room & Locker Area	b. Receptionist re-layout	-
2. Main Studio	b. Wall treatment using textured neutral tone paint	IDR 2.500.000
	d. Replace existing downlights with dimmable and multi-colored downlights	IDR 1.800.000
	f. Add room diffuser	IDR 400.000

Brand Collaboration

After the physical experience and servicescape improvement implementation plan has been done, the studio then will conduct the special event collaboration with Strongbee. The special class is based on the new features to increase the physical experience and servicescape, introducing a whole different experience at the studio (Tynan & McKechnie, 2009). This special event collaboration has high potential to increase the yoga studio’s number of customers because of the factors mentioned before.

Below is the accepted implementation plan as proposed that will be proceeded in the second week of February 2023.

Table 5. Second Week Implementation Plan

Party	Item	Estimated Fee
The Yoga Studio	Teacher: Inez	IDR 2.000.000
	Special Class: Sensory Vinyasa	Based on physical experience and servicescape improvements proposed implementation
	Venue: Main Studio	-
	50% booking slot via studio admin	-
	Strongbee logo placement on social content related to the special event collaboration	Sponsored
	Class discount voucher	Sponsored
Strongbee	Banner on app	Sponsored
	50% booking slot on the app	-
	Goodie bag: free product(s) of health & beauty brand(s)	Sponsored

The total cost for the accepted implementation plan is IDR 6.700.000. The accepted implementation plan will cover the cost of the priority items for the physical experience and servicescape improvement and special event collaboration.

Kesimpulan

This research provided insights to solve the yoga studio’s business issue mentioned in the first chapter. After analyzing the effort that the studio has previously done, the causes of the business issue then discovered, the conceptual framework was formed, a survey was conducted and analyzed, then resulting in an implementation plan. Based on the research, the three research questions answered: 1. Through a root cause analysis, the studio’s business issue of is caused by three root causes. The first root cause is no customer experience, this is caused by lack of customer interest which made stagnant number of purchase. The second root cause is uninteresting offers, this is caused by the ordinary experience given by the studio, which didn’t show customer loyalty, then resulting in unformed community. The third root cause is small targeted market that is caused by average brand awareness. These three root causes all resulting in stagnant number of customers for the studio. 2. After discovering the root cause of the studio’s business issue, based on the literature review explained, the conceptual framework was formed. The conceptual framework consist of physical experience, servicescape, and brand collaboration which will lead to customer’s experience that will result in patronage. Based on the conceptual framework, a research was designed and conducted through an online survey with a questionnaire. The data of the survey then analyzed, resulting in several significant factors such as; the efficiency of the studio’s layout flow, the cognitive, physical feels, and physical senses aspects of teh studio’s waiting room & locker area, main studio, and toilet & shower interior, and free discount voucher for every special event collaboration participant. 3. Based on the significant factors from the data analysis of the survey result, an implementation plan for the studio was proposed. After a careful consideration, based on the studio’s priority and budget allocation, only several items from the proposed implementation plan can be conducted in the near future. The first one is the re-layout of the receptionist to get more efficient flow. The second one is to improve the of the main studio’s interior by treating the wall with textured neutral tone paint, installing dimmable and multi-colored downlights, and adding room diffuser to engage the cognitive, physical feels, and physical senses aspect. The third one is to conduct a special event collaboration with Strongbee that consists of a special yoga class led by a high demand teacher of the studio, introducing a whole new experience at the main studio, and free goodie bag of health & beauty brand(s) product(s) sponsored by Strongbee partnership. This accepted implementation costs IDR 6.700.000 and will be conducted in February 2023.

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