Ray Algar & Melissa Rodriguez
oxygen-consulting/think-tank
Discuss why and how the low-cost gym    sector is growing internationally
Neutral perspective
50% lower                     than                country average                     price Scope to                      ...
Digital             infrastructure    Lowattendance                     Simplicity               MARKET               DRIV...
What do UK consumers think of the    low-cost gym experience?
FitSpace     The Gymmembers       Group           ex-members
TextFitSpaceMembers
20%     80%First gym   Previous gym experience
How much do you agree with        the following statements?0 = Strongly              5 = Strongly  disagree               ...
How much do you agree with the following statements?                                                            3.3       ...
How much do you agree with the following statements?                    3.9             4.1            4.3                ...
How likely are you to recommend this gym?0 = Not all all            10 = Definitely    likely                  recommend
How likely are you recommend FitSpace?                   7.6           7.8                 8                  8.2         ...
Net Promoter Score  0-6              7-8             9-10Detractor        Passive         Promoter
Example - 1,000 member club   200            400            400Detractors      Passives      Promoters             40% - 2...
Net Promoter Score              0          10            20            30         40                                  19  ...
UK 2010 Net Promoter Score study             0             12.5                25                37.5                  50 ...
Still a member in six months time?                     7.6                    7.85                        8.1             ...
Out of industry Net Promoter Scores          0                           40                          80                   ...
Text         The Gym          Group       ex-members
17%            Males - 60%      83%First gym    Previous gym experience
How much do you agree with the         following statements?0 = strongly                           5 = strongly  disagree ...
How much do you agree with the following statements?                 3.4                                      3.5         ...
How much do you agree with the following statements?     4     4                                                          ...
How likely are you to recommend this gym?0 = Not all              10 = Definitely all likely               recommend
How likely are you recommend The Gym?                    7                        8                          9            ...
Net Promoter Score             0         10           20               30             40                 4                ...
Where are members now?                           31%                         Male 66%          69%Joined a different gym  ...
How long a member?More than one year       7%              Unsure                5%      0-3 months                       ...
26% of this group hadexperience of other gyms                           0-3 months                              27%
Shall we try                  OK, let’s go tryanother gym?            ...36% of this group        went on to join another ...
How likely to recommend to a friend - by clubBirmingham                7.9                                           8.5  ...
“No frills, low-cost gym.Especially important for     us students!”     Female member   The Gym, Birmingham               ...
“The friendly atmosphere,knowing you are safe andnot being judged by staff”      Female member    The Gym, Birmingham     ...
“Cleanliness and amount of    equipment available”      Female member    The Gym, Birmingham                             1...
“There was a lack of staff. Isearched for 15 minutes before finding staff. I cancelled after       going just once”        ...
“Provide more supervison       from staff”      Female member     The Gym, Brighton                           6/10
“I would have liked a private     changing cubicle”         Male member      The Gym, Birmingham                          ...
Leading international low-cost gym brands - clubs                                           At September 2011             ...
Leading international low-cost gym brands - clubs                                                At September 2011       5...
Planet Fitness - club growth                                      387                          309                        ...
€70,000-                 €184,000                  existing                    gym                                 €184,00...
How members rate Planet Fitness on Yelp 19       16        12         20         6 1 star   2 stars    3 stars    4 stars ...
“I love Planet Fitness. Why?Because I will never find another      gym in NYC this cheap.Seriously, I spend more on peanut ...
“This gym is WAY tooovercrowded and there is notenough equipment to use so I  decided to buy and bring      some of my own...
Planet Fitness - EBITDA margin (3 clubs)                                   39%                                            ...
123,332 likes
276 ‘likes’ per club
5,854 followers
5,854 followers
Global 500 Franchise List              Planet Fitness Year                  Rank  2011             81 2010              15...
“To become the world’s largest    fitness club company”       Michael Grondahl, CEO
Are low-cost gyms good                     ?   for the industry?
A compelling story  for consumers
Journalists are excited       by them
They are challenging clubs    to examine their   member proposition
“It has focussed me on ourspecific proposition - Why become   a member of Holmes Place?” Neil Burton, CEO Holmes Place Cent...
Some key questions                     ?
Do you see a low-cost        or a more  ‘operationally intimate’                        ?future for your business?
What is the underlying purpose    driving your business?                          ?
What do you want your business         to stand for?                         ?
What type of business are youpassionate about developing?                         ?
What will be your legacy to      this industry?                        ?
Steve Jobs1955 - 2011
oxygen-consulting/think-tank
2011 Global Low-cost Gym Sector Report - Ray Algar
2011 Global Low-cost Gym Sector Report - Ray Algar
2011 Global Low-cost Gym Sector Report - Ray Algar
2011 Global Low-cost Gym Sector Report - Ray Algar
2011 Global Low-cost Gym Sector Report - Ray Algar
2011 Global Low-cost Gym Sector Report - Ray Algar
2011 Global Low-cost Gym Sector Report - Ray Algar
2011 Global Low-cost Gym Sector Report - Ray Algar
Upcoming SlideShare
Loading in …5
×

2011 Global Low-cost Gym Sector Report - Ray Algar

1,743 views

Published on

Presentation by Ray Algar, Oxygen Consulting and Melissa Rodriguez, Research Manager, International Health, Racquet, and Sportsclub Association (IHRSA)

IHRSA European Conference, Milan, Italy, October 2011

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,743
On SlideShare
0
From Embeds
0
Number of Embeds
196
Actions
Shares
0
Downloads
0
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

2011 Global Low-cost Gym Sector Report - Ray Algar

  1. 1. Ray Algar & Melissa Rodriguez
  2. 2. oxygen-consulting/think-tank
  3. 3. Discuss why and how the low-cost gym sector is growing internationally
  4. 4. Neutral perspective
  5. 5. 50% lower than country average price Scope to Heavyoperate 24 technology hours and web use DEFINITION LOW COST GYM Ability to operate Predominantly a with a single gym-only person proposition
  6. 6. Digital infrastructure Lowattendance Simplicity MARKET DRIVERSChanging Affordabilityconsumer Consumer sentiment towards clubs
  7. 7. What do UK consumers think of the low-cost gym experience?
  8. 8. FitSpace The Gymmembers Group ex-members
  9. 9. TextFitSpaceMembers
  10. 10. 20% 80%First gym Previous gym experience
  11. 11. How much do you agree with the following statements?0 = Strongly 5 = Strongly disagree agree
  12. 12. How much do you agree with the following statements? 3.3 3.5Average Response 3.9 3.9 4.1 Know first name of staff team Has all facilities I need Receive emails Staff available to provide free advice Staff approachable
  13. 13. How much do you agree with the following statements? 3.9 4.1 4.3 4.5 4.1 4Average Response 4.2 4.2 4.5 Delivers on website promise Friendly atmosphere Always feel safe Helping me to become healthier Excellent value for money
  14. 14. How likely are you to recommend this gym?0 = Not all all 10 = Definitely likely recommend
  15. 15. How likely are you recommend FitSpace? 7.6 7.8 8 8.2 7.7 7.8Average Response 7.9 8.1 8.2 Males Members with experience of other gyms All members Members for whom FitSpace is first gym Females
  16. 16. Net Promoter Score 0-6 7-8 9-10Detractor Passive Promoter
  17. 17. Example - 1,000 member club 200 400 400Detractors Passives Promoters 40% - 20% = 20
  18. 18. Net Promoter Score 0 10 20 30 40 19 22NPS SCORE 28 37 37 Age group - 25-34 Males All members Females Age segment - 16-24
  19. 19. UK 2010 Net Promoter Score study 0 12.5 25 37.5 50 22 19 41Net promoter score Detractors PromotersSource: NPS Leisure, Health & Fitness Sector, Leisure-net, The Retention People 2010
  20. 20. Still a member in six months time? 7.6 7.85 8.1 7.7 7.8Average Response 7.9 7.9 8.1 Males Members with previous gym experience Member for more than one year All members FitSpace is first gym Females
  21. 21. Out of industry Net Promoter Scores 0 40 80 72 35 NPS 33 15 14Apple - computers Subaru - cars Jumbo - supermarketsCitybank - banks Sky - internet
  22. 22. Text The Gym Group ex-members
  23. 23. 17% Males - 60% 83%First gym Previous gym experience
  24. 24. How much do you agree with the following statements?0 = strongly 5 = strongly disagree agree
  25. 25. How much do you agree with the following statements? 3.4 3.5 3.7 3.7 Staff available to provide free advice All the facilities I needed Friendly atmopshere Helped me become healthier person
  26. 26. How much do you agree with the following statements? 4 4 4.1 Always felt safe Email with advice Provided everything promised on website
  27. 27. How likely are you to recommend this gym?0 = Not all 10 = Definitely all likely recommend
  28. 28. How likely are you recommend The Gym? 7 8 9 7.4 7.5Average Response 7.5 7.6 8.5 Members with previous club experience All members Males Females The Gym was first gym member joined
  29. 29. Net Promoter Score 0 10 20 30 40 4 20NPS SCORE 21 22 36 Age group - 35-44 Males All ex members Females Age segment - 16-24
  30. 30. Where are members now? 31% Male 66% 69%Joined a different gym Not joined another gym
  31. 31. How long a member?More than one year 7% Unsure 5% 0-3 months 27% 7-12 months 26% 4-6 months 35%
  32. 32. 26% of this group hadexperience of other gyms 0-3 months 27%
  33. 33. Shall we try OK, let’s go tryanother gym? ...36% of this group went on to join another gym
  34. 34. How likely to recommend to a friend - by clubBirmingham 7.9 8.5 Brighton 7.4 7.4 Liverpool 7.4 7.4 Males Females
  35. 35. “No frills, low-cost gym.Especially important for us students!” Female member The Gym, Birmingham 10/10
  36. 36. “The friendly atmosphere,knowing you are safe andnot being judged by staff” Female member The Gym, Birmingham 10/10
  37. 37. “Cleanliness and amount of equipment available” Female member The Gym, Birmingham 10/10
  38. 38. “There was a lack of staff. Isearched for 15 minutes before finding staff. I cancelled after going just once” Male member The Gym, Liverpool 2/10
  39. 39. “Provide more supervison from staff” Female member The Gym, Brighton 6/10
  40. 40. “I would have liked a private changing cubicle” Male member The Gym, Birmingham 5/10
  41. 41. Leading international low-cost gym brands - clubs At September 2011 17 19 23 38 52 Kingdom of sports Fitinn Smart Fit Fit for free Fitness24Seven
  42. 42. Leading international low-cost gym brands - clubs At September 2011 54 70 80 141 447 Basic Fit Easy Fitness Clever Fit McFit Planet Fitness
  43. 43. Planet Fitness - club growth 387 309 22.5% compound 258 annual growth rate 2010 2009 2008
  44. 44. €70,000- €184,000 existing gym €184,000- 1,393 - €575,0002,223 sq.m new Planet Fitness gym Club Membership Franchise from business €4.75/month model
  45. 45. How members rate Planet Fitness on Yelp 19 16 12 20 6 1 star 2 stars 3 stars 4 stars 5 stars
  46. 46. “I love Planet Fitness. Why?Because I will never find another gym in NYC this cheap.Seriously, I spend more on peanut butter each month!” Male member Planet Fitness, New York
  47. 47. “This gym is WAY tooovercrowded and there is notenough equipment to use so I decided to buy and bring some of my own” Female member Planet Fitness, New York
  48. 48. Planet Fitness - EBITDA margin (3 clubs) 39% 54% 42% Club - 25th Percentile Club - 50th Percentile (median) Club - 75th Percentile
  49. 49. 123,332 likes
  50. 50. 276 ‘likes’ per club
  51. 51. 5,854 followers
  52. 52. 5,854 followers
  53. 53. Global 500 Franchise List Planet Fitness Year Rank 2011 81 2010 157 2009 116
  54. 54. “To become the world’s largest fitness club company” Michael Grondahl, CEO
  55. 55. Are low-cost gyms good ? for the industry?
  56. 56. A compelling story for consumers
  57. 57. Journalists are excited by them
  58. 58. They are challenging clubs to examine their member proposition
  59. 59. “It has focussed me on ourspecific proposition - Why become a member of Holmes Place?” Neil Burton, CEO Holmes Place Central/Eastern Europe
  60. 60. Some key questions ?
  61. 61. Do you see a low-cost or a more ‘operationally intimate’ ?future for your business?
  62. 62. What is the underlying purpose driving your business? ?
  63. 63. What do you want your business to stand for? ?
  64. 64. What type of business are youpassionate about developing? ?
  65. 65. What will be your legacy to this industry? ?
  66. 66. Steve Jobs1955 - 2011
  67. 67. oxygen-consulting/think-tank

×