Driving Factors Behind the Rise of Low-Cost Gyms
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Presentation by Ray Algar to attendees of the IHRSA 2012 Convention held in Los Angeles, March 2012. Discussion at: www.oxygen-consulting.co.uk
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Driving Factors Behind the Rise of Low-Cost Gyms
- 1. What is driving the low-cost gym sector? Ray Algar, Oxygen Consulting Tuesday, 20 March 12
- 2. Ray’s great Ray sucks! ihrsa.org/evalutation Tuesday, 20 March 12
- 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
- 5. Neutral perspective 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
- 10. Tuesday, 20 March 12
- 11. Tuesday, 20 March 12
- 12. Tuesday, 20 March 12
- 13. Geiz ist geil! Tuesday, 20 March 12
- 14. Tuesday, 20 March 12
- 15. Tuesday, 20 March 12
- 16. Tuesday, 20 March 12
- 17. “Clever me!” Tuesday, 20 March 12
- 18. 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
- 22. Tuesday, 20 March 12
- 23. Charge it! Tuesday, 20 March 12
- 24. Tuesday, 20 March 12
- 25. @ = 100% Tuesday, 20 March 12
- 26. Tuesday, 20 March 12
- 27. M.e.e. Meeting Expected Experience Tuesday, 20 March 12
- 28. 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
- 40. Low-cost airline video 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
- 42. Momentum 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
- 45. Tuesday, 20 March 12
- 46. Broad facility focus Well-equipped gym Showers Tanning Locker Room Vending Juice bar Group Exercise Narrow facility focus Tuesday, 20 March 12
- 47. Tuesday, 20 March 12
- 48. Hut - Portugal Fitness Tuesday, 20 March 12
- 49. Tuesday, 20 March 12
- 50. Low-cost does not mea n an inferior consumer experience Tuesday, 20 March 12
- 51. - Denmark Fresh Fitness Tuesday, 20 March 12
- 52. Tuesday, 20 March 12
- 53. roup - UK The Gym G Tuesday, 20 March 12
- 54. Tuesday, 20 March 12
- 55. The Gym Group video Tuesday, 20 March 12
- 56. - Germany McFit Tuesday, 20 March 12
- 57. Tuesday, 20 March 12
- 58. Rainer Schaller, McFit CEO video Tuesday, 20 March 12
- 59. Fitn ess - USA P lanet Tuesday, 20 March 12
- 60. Planet Fitness Video Tuesday, 20 March 12
- 61. Bonga- M exico Tuesday, 20 March 12
- 62. Tuesday, 20 March 12
- 63. Fast - Australia Fit n Tuesday, 20 March 12
- 64. itness - USA B l in k F Tuesday, 20 March 12
- 65. 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
- 68. Tuesday, 20 March 12
- 69. Many clubs developed on 20th century thinking 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
- 72. Make 40% EBITDA Tuesday, 20 March 12
- 73. “To improve lives through fitness” Tuesday, 20 March 12
- 74. Commit to raising your club’s bar because ‘average’ now means... Tuesday, 20 March 12
- 75. Irrelevant 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