Gold’s Gym – Flexing its Muscle Through Marketing

golds gym logoGold’s recently signed an exclusive deal with American Marketing Works, a L.A.-based licensing firm, to serve as licensor for the Gold’s Gym name and logo. AMW, which this month relocates to Carson, Calif., also will handle the manufacture and distribution of Gold’s Gym apparel for men and women.

Marvin Winkler, chairman/president of AMW, says licensees already have snapped up marketing rights for accessories, home gym gear and sunglasses. By late March, licensing will be complete, he speculates. At that time, AMW and Gold’s Gym officials together will launch a search for an ad agency to handle the account, which he pegs preliminarily at about $1 million. Media will include fashion and health magazines as well as body-building publications.

“Five years from now, I think we’ll be a major force in the fitness industry,” says Joe Bozich, Gold’s national director of marketing and sales. He adds that Gold’s 30-year association with the body-building movement gives its name a high level of credibility among athletes and casual fitness buffs alike. “The people who run our clubs have a lot of knowledge and the people who train at our clubs are real serious,” he says.

Gold’s with some 300 fitness clubs worldwide, expects to add several hundred new units in Europe and is pushing into Japan, Greece and Australia as well.

Ten years ago the firm ventured into producing unisex, durable workout wear to sell through its clubs. Two years ago, riding the body-building boom, Gold’s branched out to sell its clothing at specialty sportswear and upscale department stores, moving merchandise with trade advertising and word of mouth.

“We started getting bombarded with calls from people who wanted to know where to buy our apparel,” says Bozich. “The demand was much more than expected.”

According to BAR/LNA, Gold’s only spent some $22,600 for the first six months of 1989 on advertising (handled in-house) for its men and women’s apparel. Bozich declines to give financial details on the privately held firm.

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