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What does your fitness club stand for? The business  case for building a unique business Part 1 © Ray Algar – Oxygen Consu...
Find out more about me  here
… or Google me
I want to talk about creating a unique and different fitness club business
I will talk about computers, Coca-Cola, a chair, an airline and fitness clubs…it will make sense!
PART 1 - today Why clubs need to be unique and different
PART 2 - tomorrow Four fitness clubs that  members love
Why does your club need to be unique and different?
Everywhere, we are faced with more and more choice
 
Let’s look at Sony laptop computers
 
 
Welcome to the fitness club market
This is how customers may see you!
So it becomes a fight over price
Fly for free
Are fitness clubs becoming  commodities like coffee beans?
Winners and losers
REAL competition  …welcome to New York
More competitors will be arriving – just give it time
Great price for  Swedish  members
Time to focus on extraordinary service?
<ul><li>If you offer no differentiating features with your club, then customers may see you as a commodity </li></ul>
So consumers have choice, but how good are these clubs?
Let’s go on-line and find out
The health club experience – the real uncut version
 
 
 
 
64% 36% All opinions 53% 47% Prospective members 95% 5% Past members 60% 40% Current members Negative opinion Positive opi...
95% 5% Past members Negative opinion Positive opinion
Do clubs care?
… during the tour, yes!
‘ the best salesman ever’
‘ cup of coffee bought for me and all the trimmings’
‘ I remember how friendly the sales lady was in trying to get me to join up’
… but after the honeymoon period
‘ After the initial session, they have never checked my circumstances or how I was doing over my two years of membership’
‘ The clubs are not interested in their members’
‘ Once I had joined, she (sales staff) would blank me when I said hi to her’
Membership factors: 87% negative – cancellation, notice period, debt collectors
Read this before you sign
‘ I was not aware of the 12-month commitment period until I tried to cancel and had not been given a copy of the contract’
‘ Beware smiling salesman offering “great deals” and asking you to sign contracts with very  small print’
‘ I visited once before diagnosed with breast cancer. I informed the manager…sent five letters. No response apart from let...
Chandler  wants  to quit the gym
Friends video
Would they recommend to family, friends and colleagues?
 
317 reviews 10% promoter rate for 6 chains
22% highest chain 7% lowest chain
… during the tour, yes!
 
Little positive word of mouth  being harnessed
Welcome to low-cost, budget clubs Door left wide-open for budget clubs 183 Kr/€19/month
159 Kr/€17/month
75 Kr/€8/month
 
“ There will be no UK mid-market clubs in five years” – Budget chain Director
Differentiate or die <ul><li>If you don’t have a differentiating idea to drive your club then offer a great price! </li></ul>
So, where do you want to be? Striving to provide a remarkable service or competing on price?
So, we need a strong purpose
‘ Stand for something, or fall  for anything’  Malcolm X
The challenge is for members to feel a strong sense of belonging and connection
Members need to fall in love with your club
Porsche creates passionate customers
 
A strong purpose provides a compass for your club
 
A strong purpose helps your fitness club and brand to become unique
When you are different and valued, customers will pay more
Coca-Cola 20Kr/€2.12 Supermarket own brand - 3 KR/€0.30 590% premium
Herman Miller - A company with a strong purpose
Is this the most  comfortable  office chair  in the world?
Yours to own and love for 13,500 Kr/€1,440
So, what is your club going to stand for?
‘ Stand for something, or fall  for anything’  Malcolm X
A small company can have a very big cause
Market positioning is creating a clear, distinctive and attractive market position in the minds of stakeholders
Market positioning helps your fitness club and brand to become unique
It needs to be exciting, different and valued
Positioning map – car brands Exclusive Affordable Luxurious Fun/Great driving experience Porsche Ferrari Aston Martin Jagu...
Which of these do you want your fitness club to own? Convenient Friendly Exclusive Fun Affordable Relaxing Effective Profe...
Professional
Effective
Relaxing
Affordable
Exclusive
Friendly
Convenient
Fun
Developing your market position. What do members love about your club?
What do members want from your club?
Can new research of members, staff, suppliers create insights for a positioning strategy?
Be clear on the attribute you want to own
Developing a positioning statement: The friendliest fitness club you will ever join
Some other fitness club positioning statements
 
 
This should NOT be a superficial slogan. It guides everything  you do
Bringing your market positioning  to life What the club  will  measure Brand  Value Market  position Physical  attributes ...
Bringing your market positioning  to life 2.  Brand   value Caring 3.  System   Member  tracking  system 4.  Staff   Actio...
What if my fitness club/brand has no distinctive qualities?
Discover one. Make it the best it can be. Make it impossible for a competitor to copy
Key points and actions
Discover the unique market position that you wish to hold
Ensure it is clear, distinctive and profitable
Measure actions against your market position
Ensures the brand lives and breathes your market position
Aim to make your club/brand remarkable
Ensure you have the resources to execute the strategy?
Ensure you have the passion and patience to achieve your unique position?
PART 2 - tomorrow Four fitness clubs that  members love
Thank you Read more in Mastering Health Club Management, my new book –  195 Sk/€20 (325 Sk) www.oxygen-consulting.co.uk
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What Does Your Fitness Club Stand For? Part 1

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Ray Algar, Healthy Business Conference Gothenburg Sweden 2007

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  • Transcript of "What Does Your Fitness Club Stand For? Part 1 "

    1. 1. What does your fitness club stand for? The business case for building a unique business Part 1 © Ray Algar – Oxygen Consulting 2007
    2. 2. Find out more about me here
    3. 3. … or Google me
    4. 4. I want to talk about creating a unique and different fitness club business
    5. 5. I will talk about computers, Coca-Cola, a chair, an airline and fitness clubs…it will make sense!
    6. 6. PART 1 - today Why clubs need to be unique and different
    7. 7. PART 2 - tomorrow Four fitness clubs that members love
    8. 8. Why does your club need to be unique and different?
    9. 9. Everywhere, we are faced with more and more choice
    10. 11. Let’s look at Sony laptop computers
    11. 14. Welcome to the fitness club market
    12. 15. This is how customers may see you!
    13. 16. So it becomes a fight over price
    14. 17. Fly for free
    15. 18. Are fitness clubs becoming commodities like coffee beans?
    16. 19. Winners and losers
    17. 20. REAL competition …welcome to New York
    18. 21. More competitors will be arriving – just give it time
    19. 22. Great price for Swedish members
    20. 23. Time to focus on extraordinary service?
    21. 24. <ul><li>If you offer no differentiating features with your club, then customers may see you as a commodity </li></ul>
    22. 25. So consumers have choice, but how good are these clubs?
    23. 26. Let’s go on-line and find out
    24. 27. The health club experience – the real uncut version
    25. 32. 64% 36% All opinions 53% 47% Prospective members 95% 5% Past members 60% 40% Current members Negative opinion Positive opinion
    26. 33. 95% 5% Past members Negative opinion Positive opinion
    27. 34. Do clubs care?
    28. 35. … during the tour, yes!
    29. 36. ‘ the best salesman ever’
    30. 37. ‘ cup of coffee bought for me and all the trimmings’
    31. 38. ‘ I remember how friendly the sales lady was in trying to get me to join up’
    32. 39. … but after the honeymoon period
    33. 40. ‘ After the initial session, they have never checked my circumstances or how I was doing over my two years of membership’
    34. 41. ‘ The clubs are not interested in their members’
    35. 42. ‘ Once I had joined, she (sales staff) would blank me when I said hi to her’
    36. 43. Membership factors: 87% negative – cancellation, notice period, debt collectors
    37. 44. Read this before you sign
    38. 45. ‘ I was not aware of the 12-month commitment period until I tried to cancel and had not been given a copy of the contract’
    39. 46. ‘ Beware smiling salesman offering “great deals” and asking you to sign contracts with very small print’
    40. 47. ‘ I visited once before diagnosed with breast cancer. I informed the manager…sent five letters. No response apart from letters from the debt collection agency’
    41. 48. Chandler wants to quit the gym
    42. 49. Friends video
    43. 50. Would they recommend to family, friends and colleagues?
    44. 52. 317 reviews 10% promoter rate for 6 chains
    45. 53. 22% highest chain 7% lowest chain
    46. 54. … during the tour, yes!
    47. 56. Little positive word of mouth being harnessed
    48. 57. Welcome to low-cost, budget clubs Door left wide-open for budget clubs 183 Kr/€19/month
    49. 58. 159 Kr/€17/month
    50. 59. 75 Kr/€8/month
    51. 61. “ There will be no UK mid-market clubs in five years” – Budget chain Director
    52. 62. Differentiate or die <ul><li>If you don’t have a differentiating idea to drive your club then offer a great price! </li></ul>
    53. 63. So, where do you want to be? Striving to provide a remarkable service or competing on price?
    54. 64. So, we need a strong purpose
    55. 65. ‘ Stand for something, or fall for anything’ Malcolm X
    56. 66. The challenge is for members to feel a strong sense of belonging and connection
    57. 67. Members need to fall in love with your club
    58. 68. Porsche creates passionate customers
    59. 70. A strong purpose provides a compass for your club
    60. 72. A strong purpose helps your fitness club and brand to become unique
    61. 73. When you are different and valued, customers will pay more
    62. 74. Coca-Cola 20Kr/€2.12 Supermarket own brand - 3 KR/€0.30 590% premium
    63. 75. Herman Miller - A company with a strong purpose
    64. 76. Is this the most comfortable office chair in the world?
    65. 77. Yours to own and love for 13,500 Kr/€1,440
    66. 78. So, what is your club going to stand for?
    67. 79. ‘ Stand for something, or fall for anything’ Malcolm X
    68. 80. A small company can have a very big cause
    69. 81. Market positioning is creating a clear, distinctive and attractive market position in the minds of stakeholders
    70. 82. Market positioning helps your fitness club and brand to become unique
    71. 83. It needs to be exciting, different and valued
    72. 84. Positioning map – car brands Exclusive Affordable Luxurious Fun/Great driving experience Porsche Ferrari Aston Martin Jaguar Massarati BMW Mini Smart Skoda Audi TT Mercedes Bentley ? VW Beetle
    73. 85. Which of these do you want your fitness club to own? Convenient Friendly Exclusive Fun Affordable Relaxing Effective Profess- ional Attributes
    74. 86. Professional
    75. 87. Effective
    76. 88. Relaxing
    77. 89. Affordable
    78. 90. Exclusive
    79. 91. Friendly
    80. 92. Convenient
    81. 93. Fun
    82. 94. Developing your market position. What do members love about your club?
    83. 95. What do members want from your club?
    84. 96. Can new research of members, staff, suppliers create insights for a positioning strategy?
    85. 97. Be clear on the attribute you want to own
    86. 98. Developing a positioning statement: The friendliest fitness club you will ever join
    87. 99. Some other fitness club positioning statements
    88. 102. This should NOT be a superficial slogan. It guides everything you do
    89. 103. Bringing your market positioning to life What the club will measure Brand Value Market position Physical attributes & systems How staff communicate and act
    90. 104. Bringing your market positioning to life 2. Brand value Caring 3. System Member tracking system 4. Staff Actions Work hard to achieve member objectives 1. Positioning The friendliest club you will ever join 5. What the club will measure Members judge staff engagement
    91. 105. What if my fitness club/brand has no distinctive qualities?
    92. 106. Discover one. Make it the best it can be. Make it impossible for a competitor to copy
    93. 107. Key points and actions
    94. 108. Discover the unique market position that you wish to hold
    95. 109. Ensure it is clear, distinctive and profitable
    96. 110. Measure actions against your market position
    97. 111. Ensures the brand lives and breathes your market position
    98. 112. Aim to make your club/brand remarkable
    99. 113. Ensure you have the resources to execute the strategy?
    100. 114. Ensure you have the passion and patience to achieve your unique position?
    101. 115. PART 2 - tomorrow Four fitness clubs that members love
    102. 116. Thank you Read more in Mastering Health Club Management, my new book – 195 Sk/€20 (325 Sk) www.oxygen-consulting.co.uk

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