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Fitness First

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Elaine Tang

on 25 May 2015

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Transcript of Fitness First

Fitness First
Situation Analysis - PESTLE
• Government campaign
• Political issues
• Tax Policy

The Value Net
25-44 year old male/female

- Fitness First club established in Bournemouth in 1993
- Offering the best equipment, various classes, and additional facilities
- Target market are female/male age 25-44 with high level income
- Opened in Australia in 2000
- Significant decline shown in year 2012
- Market share is 16.8%

Internal analysis (VRIO)

Ensure they have an efficient and effective business model
• Fitness industry has changed radically over the past 5 years
• 24-hour gyms have expanded heavily across Australia
• Fitness First is lacking heavily what is perceived as a valuable resource
• 24-hour access
• Low membership costs
• Accessibility

Strategy Recommendation
-Discounts on signing up family and friend
-The longer the contract the cheaper the membership
- No joining fee every season
- Advertisement: newspaper, television commercials, fitness magazine and radios

Structural Change
- Operate 24 hours
- Slash 4 membership to 2
- Have a concept fitness center
- Add multiple fitness classes

Interact with the target audience through campaigns
Free boot camp to cooperation close to Fitness first center

- More competitors are out there giving better flexibility and prices for consumers.
- Remove the trade-off between quality and cost to deliver more for consumers
- Loyalty System:
- 10 times a month for a free lanyard
- Over 3 months for a free shaker
- Over 6 months for a free t-shirt
-Over 12 months (1 month free)
- Monitoring of members / Statistics on peak hour etc (What classes are popular)
- Free PT lessons when you first join up

Fitness First Marketing Mix
1. Fitness First has 78 gym in Australia
2. Most of the gym located in CBD and Shopping mall

Vision :
“We are Fitness Leaders who inspire people to go further in life.
Across the world we align 10,000 members of staff under this purpose, working to bring health and fitness into more people’s lives. “

Mission :

“We ensure that we remain at the cutting edge of fitness innovation,
that we are engaging our staff into an ethos of service and fitness expertise and updating our clubs - rolling out the refurbishments across the globe.”

- Fitness first is not easily accessible compared to other gyms that are open (24/7)
- Dropped down on rankings to second after anytime fitness
- Timetable classes does not fit everyone’s schedule
- Fitness first app


• GFC Aftermath
• Increase in rent expense
• The total industry value is 0.3% of GDP
• Trend of 24/7 gym
• Possible decline in next 5 years

• 64% of age 15 and over participate in sport
• 47% people work out regularly
• 28% of Australians were obesse
• Trend of TV weight-loss program
• High-level income people participate the most

• Materials development
• Technological advances
• Consumer preference and usage change

• Health and safety Law
• Consumer law
• Member Protection
• Contracts

• High energy consumption
• Geographical location
• Climate


Fitness gear/apparel
In conclusion, it may seem like a challenge for Fitness First to compete with budgeted gym such as Anytime Fitness, unless they change their business strategy. For Fitness First to remain competitive they must be proactive and change their pricing strategy, marketing strategy and re-evaluate their business structure. As mentioned above with the recommended strategy, Fitness First should be able to sustain a competitive edge and see potential growth capturing the target audience, as they have the resources and years of background experience in the fitness market.
Suggested Positioning
Open 24/7
More locations
Lower fees
Update gym equipment
Improve Fitness First website/App
Outstanding customer care

• Rarity of resources is a crucial element in building and sustaining a competitive advantage
• Fitness First is regarded as a premium gym
• Constantly upgrading their equipment
24-hour gyms are equalling if not providing better equipment
Cleanliness: Shared bathrooms rather than private bathrooms
Large gyms are restricting them from expanding to rural areas
However, they do offer fitness classes and facilities such as pools

• Offer a ladies only area, members lounge, suana and steam room, and swimming pools
• Their large facilities ensure they are capable of accommodating and maintaining
• 24-hour gyms are usually too small to accommodate such facilities
• However, these facilities do come at a cost
• Higher membership costs in order to attain profits needed for maintenance

• Is Fitness First organized, ready, and able to exploit their resources and capabilities in such a way to gain a competitive advantage?
• Business structure and resources need to be aligned
• Amend weaknesses identified through the VRIO analysis and implement changes
• Ensuring that they will be able to be competitive in today’s everchanging fitness industry

Imperfectly Imitable:
Organizational Exploited
1. Group Fitness Classes
2. Personal Training
3. Team Workouts
4. Freestyle Group Training

Fitness First has higher membership price than its competitors

Fitness First has 2 type of membership contract:
1. Prepaid contract
2. Full contract

1. Has 2430 gym club around the world
2. Cheaper price than Fitness First
3. Operates for 24/7

1. Has fewer training programs than Fitness First
2. Has fewer equipment and space


1. Innovation
2.New market
3.Emerging markets

1.Political risk
2.Government Regulations
3.Substitute Products
4.International competition
Huan Tang 11620958 Brendan Thadanabath 12021667
Kevin Tjong 11822970 Andy Lam 11426691
Ernest Catic 11727322 Melinda Tang 12017873
Ullima Firmanda 11828035

Fitness first positioned itself as a premium gym facility as it is a full service gym, however this would lead to a higher cost for members to join in.This will go up against competitors which provide a cheaper membership pack but limited facilities.

* Cheaper alternative i.e. budgeted gyms

* Anytime fitness targets anyone

Key findings

* Ages 15 – 34 account for 48.4% in industry revenue

* Ages 35 – 54 account for 32.4% in industry revenue

* Ages 55 and over 19.2% in industry revenue

Fitness first should focus on ages 35 – 54 but should not neglect the biggest revenue group of ages 15 – 34.

-Anthony McDonough (2014), marketing director of FFA, said “FF is more expensive than your average gym, we tend to go only into inner urban areas, with fairly high social demographic
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