Life Time Fitness<br />By: Brittany Chatterson<br /> MKTG 6000 – Dr. Kohler<br /> May 8th , 2011<br />
History<br /><ul><li>Bahram Akradi opened the first health club in July of 1992 in Brooklyn, Minnesota.
This location sold 2,702 memberships in it’s first year of business.
1998 was the year that FCA, Ltd. officially changed its name to Life Time Fitness, Inc.
The company currently operates in 20 states and has 91 exercise and recreation centers.
In 1994, the company was reporting $4 million in revenues, which has grown significantly to $912.8 million at the end of 2010.
The clubs offer swimming pools, basketball and racquet courts, child care, spas, dining services, climbing walls and 400 pieces of exercise equipment (Hoover’s Company Profiles, para 1).</li></li></ul><li> Promotional Campaign<br />“I CAN DO IT ALL IN MY LIFETIME”<br />http://www.youtube.com/watch?v=okXNRSd_IM8&feature=player_embedded<br />
Promotional Campaign Continued….<br /><ul><li>Offers customers many activities that they can do in their life time to keep themselves healthy, motivated, and active all in one location.
Fitness program options include; Weight Loss, Group Fitness, Personal Training, Cardio, Strength Training, Yoga, Pilates, Assessments & Testing.
Sports activities include; Basketball, Running, Cycling, Swimming, Tennis, Racquetball, Squash, Rock Climbing, Events and Races, Triathlons, and Golf.</li></li></ul><li>Promotional Campaign Continued…<br />Family activities include; Child Center, Kid’s Fitness, Family Swim and Lessons, Birthdays, and Summer Camps<br />Resort activities include; Lifespa and Salon, Lifecafe, Nutrition, and Experience Life Magazine<br />
Competition<br />Bally Total Fitness<br />“FOR PEOPLE WHO LOVE FITNESS AND LIVE A HEALTHY LIFESTYLE”<br />Wants customers who are motivated, have fitness goals and are interested in achieving them.<br />“And, as the trailblazer in personal training, Bally continues to successfully educate and motivate thousands of members each year to fulfill their personal fitness goals” (Bally Total Fitness Website, para 5).<br />Gold’s Gym<br />“KNOW YOUR OWN STRENGTH”<br />Wants customers to find their inner strength and find their goals.<br />“Today more than ever, people are looking for strength. Whether it’s the strength to be a better parent, the strength to overcome diabetes or the strength to be a better athlete- strength comes in many forms” (Gold’s Gym Website, para 6).<br />
Competition Continued…<br />Life Time Fitness <br /><ul><li>Memberships: 613,000
Fitness Centers: 91</li></ul>**All information is based on fiscal year 2010**<br />Gold’s Gym and Bally Total Fitness<br />Gold’s Gym:<br />Memberships: 3.5 Million<br />Fitness Centers: 700<br />Public Relations: Spent $1 Billion in 2010<br />Bally Total Fitness:<br />Memberships: 3.5 Million <br />Fitness Centers: 270<br />Currently under investigation for invalid past due letters mailed to over 11,000 former club members.<br />Filed bankruptcy in 2007,2008 and 2009.<br />
Life Time Fitness’s Revenue from 2001 -2010<br />This revenue performance chart was taken from Life Time Fitness’s 2010 annual report and proves that the marketing and promotional campaigns are working in favor of the company as it has proven to increase their revenue year after year.<br />
Marketing- Mix<br />Product:<br />Memberships<br />Nutritious Items, energy drinks and much more at the LifeCafe<br />Variety of exercise equipment<br />Variety of classes to be a part of<br />Variety or activities<br />Salon and Spa<br />Price:<br />Trial membership is Free and allows you to try out the gym before purchasing a membership<br />Memberships are approximately $50.00 a month for the Gold Membership and $60.00 a month for the Platinum Membership with a one time enrollment fee.<br />Currently Life Time Fitness is offering memberships with a $0.00 enrollment fee.<br />Place:<br />Operates 91 exercise and recreation centers in 20 states.<br />Centers average size are 100,000 square feet.<br />Headquartered in Chanhassen, Minnesota<br />Promotion:<br />Offers a member advantage program in which members can get discounts at businesses that wish to participate, such as hotels, restaurants, clothing stores, etc. An example is Great Clips Imax Theatre is currently offering 1 free admission with a paid admission to Born to Be Wild in 3D. Also, a clothing company called, Mainstream Boutique is offering 25% off any item.<br />Offers a MyLTBucks rewards program that allows members to earn dollars and purchase items on the website.<br />
Marketing Principles – That have made Life Time Fitness Successful<br />Price<br />Product<br />Promotion<br />Place<br />Product Differentiation<br />Loyalty/Rewards Programs<br />Adhering to customers wants, needs and desires<br />Reaching Target Markets: Families, young, middle-aged and older people who want to live a healthy lifestyle.<br />
References<br />Answers.com. Ed Dinger. March 15 2011. Hoover’s Company Profiles. 4 May 2011. http://www.answers.com/topic/life-time-fitness-inc<br />“I Can Do It All In My Lifetime”. YouTube, 4 May 2011. Video. 27 Dec. 2010 http://www.youtube.com/watch?v=okXNRSd_IM8&feature=player_embedded.<br />The Leader in Fitness. Bally Total Fitness. 4 May 2011 http://www.ballyfitness.com/company.aspx<br />Gold’s Story. 2011. Gold’s Gym. 4 May 2011. http://www.goldsgym.com/golds/<br />2010 Annual Report- Life Time Fitness. 8 Mar. 2011. Life Time Fitness Inc. 4 May 2011 http://investor.lifetimefitness.com/phoenix.zhtml?c=136737&p=irol-latest<br />