2. Scenario
• Meet Bill & Shirley Armstrong
• They own 12 Fit “n” Well Fitness
Centres in Australia
3. Scenario
They are thinking of expanding their business into New Zealand
And have hired me to prepare a Management Consulting
Report about the NZ fitness industry
4. Investigation
First I investigated
these themes:
Involvement of Main
Population in Competitors
Clubs and within the
Recreational Industry
Centres
Issues
within the And here’s
Industry what I found:
5. Involvement of Population in Clubs
and Recreational Centres
Members of Gyms and
11.8 Fitness Centres
34.9
Average percentage of
total population who
are Members of Sports
and Recreational
Centres
In terms of region, Hawkes Bay had the
highest proportion of active adults at
41%
Followed by North Harbour at 40.2%
Auckland was also in the list of regions
above national average.
6. Main Competitors within the Industry
Les Mills International
• Annual turnover =
over $150 million!
• A range of classes taught worldwide – in over
10,000 gyms!
7. Issues within the Industry
• Funding issues lead to
gyms having to close
down as they are not
able to meet the
demand in the area
• Research shows people tend to drop out of fitness
programmes, or even not show up at all
8. Recommendations
I used the results of my investigation to come up with some recommendations for Bill
and Shirley
My recommendations:
• Open the first fitness centre in the North Harbour region
• This region has the 2nd highest proportion of active adults, and is close to New
Zealand’s largest city – Auckland
• Meet with the local council and discuss:
• Facility requirements for the area – so the council doesn’t open a subsidised
community centre and cause Fit “n” Well to lose members
• Possible funding from the council – this will allow Fit “n” Well to charge lower
membership fees, making it more attractive for potential members