PlatinumEssays.com - Free Essays, Term Papers, Research Papers and Book Reports
Search

Fitness Industry Gyms

By:   •  July 1, 2019  •  Essay  •  7,543 Words (31 Pages)  •  471 Views

Page 1 of 31

Fitness Industry - GYMS

Table of Contents

1. Fitness Industry - GYMS 3

2. Target Segments of AF, FF and VA 3

3. Value Curve of AF, FF and VA 4

4. Marketing Strategy of AF, FF and VA 4

5. Evaluation and Comparison of the Three Brands (AF, FF and VA ) 9

65. Recommendations 10

76. References 12

87. Annex 14

1. Fitness Industry - GYMS 3

2. Target Segments of AF, FF and VA 5

3. Value Curve of AF, FF and VA 6

4. Marketing Strategy of AF, FF and VA 7

5. Recommendations 13

6. Evaluation and Comparison of the Three Brands (AF, FF and VA ) 16

7. Reference 19

1. Fitness Industry - GYMS

With growing awareness on wellness and health coupled with the hype on athleisure and rising affluencewealth, there is an increase numbersing demand of gym goers and yoga followers. Consumers are more willing ly in paying the to pay for gym membership for gym and fitness centres, which provided a sweet spot to such buoyant industry. Globally, there are over 180,000K fitness clubs, estimated to have earned $84 billion from their 145 million members. (Sena, 2018)(Sena, 2018). Gyms and fitness centres varied from a floor space with equipment and machines for cardio and weight training, to posh-designed fitness clubs with pools, spas and personalised trainers. A comparison of a no-frill gym to a spa-like fitness clubs, all matters – the price. However, the differentiation of thesese gyms and fitness centres’ amenities differentiation caters to different segment of consumers. In this paper, our group intends to explore 3 different gyms and fitness centres, namely: Anytime Fitness, Fitness First and Virgin Active. Adapting the 4Ps – Price, Place, Promotion and Product, we will look at all their marketing strategies and provide our evaluation of these three3 mentioned brands. Given that all three3 brands have clubs globally, we will focus on looking at theirese 3 brands fitness centres in Singapore. Refer to Annex A for “About the Brands”.

Anytime Fitness (“AF”)

The Anytime Fitness is a 24-hour health and fitness club where it aims to be the “average joe” franchise gym with modern facilities for the everyday person, not to the top nor cheap and industrial. AF’s headquarter is located in Woodbury, Minnesota, the United States of America (USA). The company were founded by Chuck Runyon (current CEO), Dave Mortensen and Jeff Klinger in the early 1990s. As the fitness industry is booming, they found opportunity to expand their business plan and started their first franchise of AF in Cambridge, Minnesota.

The AF’s mission is all about helping people thrive through a fit and active lifestyle. They believe that the mission should similar to their employees, where they encourage their employees to improve their health and fitness levels, in return, it increases their energy and productivity, and lower their healthcare spending e.g. medical sick leave. Their Employee Wellness Program makes it possible for companies of all sizes to encourage wellness at work.

Fitness First (“FF”)

Fitness First has approximately 380 clubs across 13 countries including Singapore since it was founded in 1993. Over the years, it has grown to become the largest fitness brand in Southeast Asia with an unrivalled network of more than 230,000 members around the world. It prides itself on its trusted brand and continuously revitalize the business with the latest technology, qualified staffs and well-equipped amenities. Fitness First’s purpose is clearly demonstrated in its mission statement “We are the fitness leaders who inspire our members to go further in life”.

FF offers memberships to public for at least 14 years in age and above. It targets the mass market segment with users whom are typically looking out for a full gym membership that provides a wide range of services from fitness classes (yoga, zumba, kickboxing etc.), personal training sessions to fitness equipment usage, at a price that is value-for-money.

Virgin Active (“VA”)

Virgin Active has close to 240 fitness clubs nowadays, spread across 8 countries. It invests in up-to-date equipment and innovative training classes; qualified and professional personal trainers and a wow-ed amenities like pool, spa and sleeping pods. It prides itself to treat all members with respect, care and attention and facilities welcome everyone of different age. VA launched way back in 1999 under the Richard Bronson’s Virgin Group. Sir Richard Bronson was firmed to “build the best, state-of-the-art club on the market, providing genuine value for it customers, in first class surroundings”. (Marketing and Strategic Analysis of Virgin Active, 2018). VA opens membership to all ages, young and old, adopting a differentiated marketing. VA differentiates itself from other brands fitness clubs via its place, product, promotion and price like the available amenities and services.

2. Target Segments of AF, FF and VA

The In the fitness industry, each of the centers have distinct target segment. fFollowing table helps us illustrates the target segments of each of the 3 brands.similarities and differences.

Fitness Centers Target SegmentsDifferences

Anytime Fitness (“AF”) It adapts a franchise business model.

Open 24/7; being located mostly in the neighborhoods instead of business districts

Targets lower-income customers or customers who prefer to pay less and enjoy a basic workout with a no-frills experience

Fitness First (“FF”) Target middle income group including at homemakers and middle-class working adults, young professionals and homemakers who are looking for value-for-money service through accessing great variety of classes and equipment

.

Virgin Active (“VA”) Provides services and facilities to decrease stress levels of professionals, like sleeping pods and experiential showers.

Target high income group working - and affluent individuals, working professionals; more exclusive crowd who enjoys to be associated with the prestigious branding of VA and be seen working out with the latest equipment, unique classes and posh facilities with VA fitness centers at business district and upmarket shopping/residential areas.

Similarities Differences

Anytime Fitness (“AF”) Wide spread of fitness clubs/outlets across many countries, globally

Provides convenience; gym centres are centralized or populated places

Personal Trainers

Selection of classes for members

Referral programs, leverage social media platforms as promotion channels

1 membership, international access Franchise business model.

Open 24/7; affordable price and being located mostly in the neighborhoods instead of business districts

Fitness First (“FF”) Target mass market audience such as homemakers and middle-class working adults.

Virgin Active (“VA”) Additional services and facilities to decrease stress levels of professionals, like sleeping pods and experiential showers. Target working and affluent individuals via allocating VA fitness centers at business district and upmarket shopping/residential areas

3. Value Curve of AF, FF and VA

To further illustrate the three brands differences in the marketplace, we have created the value curve. Refer to Annex B for the Value Curve.

Based on the above, the three brands’ value propositions are certainly very different. The “Price” is every differentiated across all three. AF is low, followed by FF and then VA due to the different target group as explained in point 4. When it comes to “Quality of Equipment”, VA is high followed by FF and then AF. This reflects clearly the price of membership. AF being the cheapest for membership price, their equipment is geared towards basicdecent. Whereas, VA portraysed certain status as their target market involvesare majority professionals who want the space to workout with the latest, branded and more sophisticated equipment. In general, iff anythe potential customers want to sign up for gym memberships, they will look at their willingness to pay will depends on the price,, conveniencet as well as facilities and services available. Therefore, a middle -income professional tends to sign up with AF or FF whereas for a high-income professional would most likely to sign up with VA.

4. Marketing Strategy of

...

Download:  txt (50.9 Kb)   pdf (204.2 Kb)   docx (35.1 Kb)  
Continue for 30 more pages »