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Bally Totally Fitness

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Bally Totally Fitness
Bally Totally Fitness Case Study
1. What is this case about ?
This case presents a case analysis concerning Bally Total Fitness a leading US health club operator. It focuses on Bally’s competitive challenges financial difficulties and implementation plan.
It gives us a presentation of Bally’s history and its current situation from a leading firm to the difficulties faced last couple of years (Stock price collapsed and competition intensified); it also provides us a market analysis of the U.S club health industry, consumer demand and challenges.
This paper provides us also informations about Paul Toback the new CEO of the firm his past genuine decisions to generate more revenues in Bally total fitness club as a vice president the new products he introduced (nutritional products, juice bars at the club) and the new strategy of the firm since he has become the new CEO of Bally in 2002, taking new decisions on pricing (rise enrollment fees and monthly dues) and marketing (no more hard bodies but new adds with various people) in order to get over the difficulties faced by bally Fitness and the effects those decisions had on the firm.

2. Segment the US Health Club industry (combining applications, clients and technology variables), select the most relevant segments and identify their respective Key Success Factors.

Client Variable
-Gender
-Age
-Distance
-Income
Applications Variable
-Owner-operated club
-Franchised club
-Design and management company
-Health spa
Technology Variable
-Aerobic and weight machine
-Swimming pool
-Personal trainer
Health Club Industry Axis(Applications Variable& Technology Variable)

Owner-operated Club
Franchised Club
Design and Management Company
Health Spa
Aerobic and Weight Machine

Swimming Pool

Personal Trainer

Key Success Factors in Health Club Industry

3. Assess the attractiveness of the most relevant segments.

Applications Variable
-Owner-operated club
Owner-operated club chains, like Bally
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