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The Originator of Budget Clubs - The Success Story

The Originator of Budget Clubs - The Success Story. Presented by Kenny McAndrew. 1. History. 2002 The shock of the 15€ membership 2004 Going it alone 200 6 1 st Budget Club opens 2007 July – FitSpace doubles to 2 Clubs 2007 October – doubles again to 4 Clubs

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The Originator of Budget Clubs - The Success Story

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  1. The Originator of Budget Clubs - The Success Story Presented by Kenny McAndrew

  2. 1. History • 2002 The shock of the 15€ membership • 2004 Going it alone • 2006 1st Budget Club opens • 2007 July – FitSpace doubles to 2 Clubs • 2007 October – doubles again to 4 Clubs • 2008 February – doubles again to 8 Clubs • 2008-10 Consolidation to profitability • 2011 Expansion

  3. Big Gyms With loads of kit...

  4. What do you get? • 150+ pieces of gym equipment • Separate free weights areas • Virtual spin classes • Stretch areas • PT (reps level 3) conduct Inductions • Duty Manager (1st Aid qualified) on duty • Join Zone • Other areas (Ladies only / quite area / PT area)

  5. Now the Smart bit...

  6. ü Central Server (Hosted?) FitSpace Solution Home/Office 2. Customer fills in personal details and accepts membership rates 3. Customer fills in pre-exercise questionnaire 2 3 4. Joining fees included as part of 1st DD 1 1. Customer logs onto website 4 • Customer fills in Direct Debit form (via Harland's Gp) 10 10. Customer enters gym via turnstile 5 9 6 9. Customer issued with proximity membership card 6. Customer books an induction session 8 7 8. Customer goes to gym and enters PIN number into the kiosk 7. Confirmation screen displays all details entered and issues a PIN number

  7. The Who question?

  8. Food for thought... • 10-12% of the local population are members of a health Club / gym / sports centre at any one time. • There is a direct correlation between obesity and low income. • (Low income diet & Nutritional Survey 2007 for Foods Standards Agency) • Private health Clubs and Gyms (and a number of local authority leisure facilities) are based in the majority, in middle to higher income areas Experience of Gyms Past = 45% New = 20% Current = 35%

  9. Marketing Warfare Flanking - High Guerrilla Defensive Guerrilla Offensive Guerrilla Guerrilla Flanking - Low

  10. The Future Slide with permission from Ray Algar Low-Cost Gym Sector report 2010.

  11. 1. Segmentation of the Budget sector (Europe) Premium Budget – Big Fitness + Classes & other facilities. 20-30€ (£15-20) Budget - Big Fitness, clean and simple 15-20 € (£10-15) Hard Budget - Smaller Fitness, basic and hard core 10-15 € (£7.50-10) Grunge Budget - Warehouse, temporary & basic fitness 5-10 € (£4-7.50) 2. More Automated Full height turnstiles with Biometric entry Automated Electronic Marketing & Programmes

  12. Summary • Budgets Gyms are the fastest growing sector of the Fitness Industry • They can offer fantastic value for money to the consumer • They need large investment, a sound business plan and robust and sophisticated IT. • They open up Fitness to those who have never been able to afford it before. • Future • They will squeeze the middle market • They will become segmented • They will become more automated.

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