4. -COST GYM SECT
OW OR
L
AL
RE
OB
PO
2011 GL
RT
A STRATEGIC INVESTIGATION INTO A DISRUPTIVE NEW SEGMENT
Researched and written by Ray Algar, Oxygen Consulting UK in association with Precor
www.oxygen-consulting.co.uk
Tuesday, 20 March 12
6. Part 1 Part 2
Why is the How do low-cost
low-cost gym gyms compete?
sector emerging
Part 3
Part 4
How is the low-cost
What is your
gym sector
strategic response?
developing
Tuesday, 20 March 12
7. Part 1 Part 2
Why is the How do low-cost
low-cost gym gyms compete?
sector emerging
Part 3
Part 4
How is the low-cost
What is your
gym sector
strategic response?
developing
Tuesday, 20 March 12
8. LOW
ATTENDANCE
TO LEGACY
CLUBS
CONSUMER DIGITAL
SENTIMENT TO INFRA-
MARKET
LEGACY CLUBS STRUCTURE
DRIVERS FOR
LOW-COST
GYM
CHANGING
SIMPLICITY
CONSUMER
Tuesday, 20 March 12
9. LOW
ATTENDANCE
TO LEGACY
CLUBS
CONSUMER DIGITAL
SENTIMENT TO INFRA-
MARKET
LEGACY CLUBS STRUCTURE
DRIVERS FOR
LOW-COST
GYM
CHANGING
SIMPLICITY
CONSUMER
Tuesday, 20 March 12
19. Part 1 Part 2
Why is the How do low-
low-cost gym cost gyms
sector emerging compete?
Part 3 Part 4
How is the low-cost What is your
gym sector strategic response?
developing
Tuesday, 20 March 12
20. How a low-cost gym competes
Low-cost gym Mid-market gym
100
75
50
25
0
Price Join online Opening hours Club design Range of facilities
Core Factors
Tuesday, 20 March 12
21. How a low-cost gym competes
Low-cost gym Mid-market gym
100
75
50
25
0
Technology Hospitaility Salaried staff
Core Factors
Tuesday, 20 March 12
29. How much do you agree with
the following statements?
0 = Strongly 5 = Strongly
disagree agree
Tuesday, 20 March 12
30. How much do you agree with the following statements?
3.5
Average Response 3.9
3.9
Has all facilities I need 4.1
Receive emails
Staff available to provide free advice
Staff approachable
Tuesday, 20 March 12
31. How much do you agree with the following statements?
3.9 4.1 4.3 4.5
4
4.2
Average Response
4.2
Friendly atmosphere
4.5
Always feel safe
Helping me to become healthier
Excellent value for money
Tuesday, 20 March 12
32. Still a member in six months time?
7.6
7.9
8.1
7.7
Average Response 7.9
8.1
Males
8.1
All members
FitSpace is first gym
Females
Tuesday, 20 March 12
33. How likely are you to recommend this gym?
0 = Not all all likely 10 = Definitely recommend
Tuesday, 20 March 12
34. How likely to recommend FitSpace?
7.60 7.80
8.00
8.20
7.7
7.8
Average Response
7.9
8.1
Males
Members with experience of other gyms 8.2
All members
Members for whom FitSpace is first gym
Females
Tuesday, 20 March 12
35. Net promoter score
0-6 Detractor 7-8 Passive 9-10 Promoter
Tuesday, 20 March 12
36. Example 1,000 member club
200 400 400
Detractor Passive Promoter
40%-20% = NPS 20%
Tuesday, 20 March 12
37. Net Promoter Score
0 10 20 30 40
19
22
NPS SCORE
28
37
Age group - 25-34 37
Males
All members
Females
Age segment - 16-24
Tuesday, 20 March 12
38. UK Net Promoter Score Survey
21% 27%
Public and Private clubs
Public sector -16%
Private clubs
Source: Leisure Net/The Retention People 2010
Tuesday, 20 March 12
39. Raise Reduce
Web Staffing
levels
Create Eliminate
Simple Non-core
proposition facilities
Tuesday, 20 March 12
41. Part 1 Part 2
Why is the How do low-cost
low-cost gym gyms compete?
sector emerging
Part 3
Part 4
How is the low-
What is your
cost gym sector
strategic response?
developing?
Tuesday, 20 March 12
43. Low-cost Mid-market Premium
48
45
10
UK Club Openings - January - December 2011
Source: The Leisure Database Company 2012
Tuesday, 20 March 12
44. Summary of Leading International
Low-Cost Gym Brands
52
38
CLUBS
54 USA
141 GERMANY
17
19
70
NETHERLANDS
447 80 SWEDEN
AUSTRIA
BRAZIL
23
RANKING 1 2 3 4 5 6 7 8 9 10
COUNTRY ORD M E
E
PO
R GE
RS
SO
BRAND Planet McFit Clever Fit Easy Basic Fit Fitness24 Fit for Smart Fitinn Kingdom
Fitness Fitness Seven Free Fit of Sports
Tuesday, 20 March 12
66. Part 1 Part 2
Why is the How do low-cost
low-cost gym gyms compete?
sector emerging
Part 3 Part 4
How is the low-cost What is your
gym sector strategic
developing response?
Tuesday, 20 March 12
67. “I’ll just say here until they go away!”
Tuesday, 20 March 12
70. Your club is threatened
by substitutes
Quit JoinUse
Join specialist
Buy
low-cost
online
The “club” anmachine
App’
homegym
community
studio
Tuesday, 20 March 12
71. What is your club’s
compelling purpose?
Tuesday, 20 March 12
76. -COST GYM SECT
OW OR
L
AL
RE
OB
PO
2011 GL
RT
A STRATEGIC INVESTIGATION INTO A DISRUPTIVE NEW SEGMENT
Researched and written by Ray Algar, Oxygen Consulting UK in association with Precor
www.oxygen-consulting.co.uk
Tuesday, 20 March 12