This document analyzes the potential expansion of Fit 'n Well into the New Zealand fitness industry. There are opportunities for growth due to resolutions to exercise more and increasing youth involvement. However, there is also competition from established brands and a risk that some memberships are not renewed. Overall, the report recommends expansion given the lucrative industry trends and Fit 'n Well's reputation for quality customer service could allow it to become a major competitor. Focusing on solutions to drive membership renewal is also advised.

1. New Zealand
Fitness Industry
Expansion Analysis
Report
By Jono McGlashan
http://nz.lifestyle.yahoo.com/b/womens-health/2321/this-is-your-year/

2. Introduction
• There are many
opportunities that
could lead to success
if Fit ‘n’ Well were to
expand http://www.abc.net.au/news/stories/2008/08/17/2337662.htm
http://www.resumebear.com/blog/index.php/2009/02/09/skills-not-to-list-on-your-resume/
• However there are
also possible risks
• And there is
competition
• This presentation aims
to give insight on the
New Zealand fitness
industry and whether http://travel.webshots.com/photo/1298668514044178294FTsUAu
or not the expansion
of Fit ‘n’ Well would
be a rewarding
business decision.

3. Opportunities for success
• New year’s resolutions have recently resulted in
membership inquiries increasing by 40% .” (Todd, 2007) Due
to the appealing idea of losing excess holiday weight.
• This provides a prime opportunity for businesses like Fit ‘n’
Well to expand with the possibility of a substantial amount
of membership inquiries.
• Gym’s have been taking on kids as there is an increase in
demand for children and teenage training.
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4. • Including the younger generation in the targeted
market proves to be a great opportunity for success in
the future.
• The fitness industry has taken a positive turn for success
• Previous business transactions have proven New
Zealand’s industry to be lucrative with certain deals that
can be described as “A very substantial transaction by
fitness industry standards” (Steeman, 2007)
http://www.spokanefitnesscoach.com/

5. Possible Risks
• Public facilities have intruded on the same profit providing
purposes of private businesses.
• This may cause turbulence among private facilities
• People are paying for their memberships but neglecting
their gym attendance with only 70% of memberships
being renewed (Brown, 2008).
http://www.webguild.org/2008/09/is-social-media-risky.php

6. •“When you have only got 10
per cent of the population
exercising and more than 50 per
cent overweight and all of the
downstream health issues we
are facing that tells me there is
growth in the industry” (Brown,
2008).
•There is therefore likely to be
an exponential growth in
memberships from the
population of people with
weight and health issues.
http://www.lesmills.co.nz/weight%20management%20home.cfm

7. Competition
• Traveling to a gym is
inconvenient
• Time management is a
major factor for people not
attending gyms
• Many people are self
conscious in such a public
environment
• Simone Rank, for example,
offers her services as a
mobile personal trainer
http://www.lesmills.co.nz/choose_a_personal_trainer.cfm

8. •This established form of business meets the demand
of many New Zealanders
•It is hard for a new business to establish itself with
major competitors like:
•Les Mills
•Club Physical
•City Fitness
•These organizations are already well known as New
Zealand's leading fitness competitors
www.sportsonline.com.au/images/Products/6404.jpg

9. •There is the
possibility the
competitors will
stomp out any new
competition.
•A new competitor
would have to bring
exciting methods that
would appeal to the
New Zealand public.
http://www.womens-self-defense-instruction-online.com/ultimate-
karate-footstomp.html

10. Recommendations
• Fit ‘n’ Well SHOULD
expand to New Zealand
because in my opinion:
• The industry is proving to
be lucrative and attractive
• Fit “n” Well’s reputation
for clean/modern
facilities and quality
customer service has
great potential to
establish Fit ‘n’ Well as a
main competitor.
• Expanding before the new
year would be essential in
gaining the most possible
memberships than any
other time of year.
http://fitness102.wordpress.com/category/boot-camp-exercises/

11. •Fit ‘n’ Well should aim to
include children and
teenagers in the targeted
market because of the
increase in demand and the
young generation being the
future of the fitness and
health of New Zealand
•Invest time in producing a
solution to increasing the
percentage of membership
renewals.
http://blogs.citypages.com/sports/index.php?page=2

12. Conclusion
• The information discussed was gathered to help Fit ‘n’
Well’s decision on whether expanding to New Zealand
would be a successful business decision.
• In an industry there will always be competition, but with
competition comes opportunity.
• Introducing a company into a new country will always
include possible risks.
• However with the many opportunities this decision
provides and the potential growth of New Zealand’s
fitness industry. The quality customer service and
clean/modern facilities of Fit ‘n’ Well would quickly rise as
a competitor in the New Zealand Fitness Industry.
http://www.lunerouge.org/spip/article.php3?id_article=967