Fitness First, the Leisure Industry

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Service Marketing

Individual Assignment

Fitness First
The Leisure Industry

Contents

Introduction……………………………………………………………………….2

Brief Overview…………………………………………………………………….2

Market Size and Forecast………………………………………………………2

Competitors…………………………………………………………...…………..4

Marketing Environment
External Environment…………………………………………………………..5 Internal Environment………………………………………………………....12

Opportunities and Threats………………………………………………..….12

Strategic Service Marketing Issues .................................................14

References……………………………………………………………………….16

Appendix:…………………………………………………………………………17

Introduction
This paper will be focusing on the leisure industry; it is narrowed down to fitness clubs sector and fitness first for woman is the chosen organisation for study. This paper will be discussing the size and competitive structure of the sector. The current internal and external marketing environment will be assessed as well as the opportunities and threats facing the sector. The similarities and differences between the current service marketing strategies of the sectors major players will be summarised and an analysis of Fitness First for women key strategic service marketing issues will be illustrated for the next five years.

Brief Overview
Definition: Fitness clubs are privately owned, commonly managed as profit making businesses. Some clubs belong to employers or hotel groups, but still fall within the private sector. They are sometimes called ‘health and fitness clubs’ or, more commonly, ‘gyms’. As standard, a health club offers a well-equipped fitness room (gym) and showering and changing rooms, but the larger clubs also offer swimming, sports and/or beauty treatment facilities, together with sophisticated catering and social programmes. The largest of these clubs join with sports clubs to offer tennis and other sports. Private fitness clubs derive most of their revenues from charging annual membership fees. In addition to annual subscription income, joining fees — a one-off initial payment — are common among the more expensive, exclusive clubs. Additional income is made from catering, events and beauty treatments. (Mintel Reports Health and Fitness Clubs - UK - May 2007) Market Size and Forecast

UK health and fitness clubs market size trends, 2002-12

Members Index £m Index Average revenue per member £m at 2007 prices Index
m (£)
20023.67711,799724902,07183
20033.96771,934774892,14186
20044.20812,044824872,21889
20054.35842,110854852,21989
20064.68912,266914842,33494
2007 5.17 100 2,496 100 483 2,496 100
20085.641092,6961084782,595104
20096.101182,8701154702,651106
20106.571273,0701234672,753110
20117.081373,2701314622,875115
20127.551463,4441384562,940118

SOURCE: Mintel Reports Health and Fitness Clubs - UK - May 2007

According to the “Health & Fitness Market – Focus on Clubs & Equipment UK 2007”recently published by AMA Research the UK health and fitness market was worth an estimated £3.45 billion in 2006 and is forecast to grow by around 4-5% per annum over the 2007-10 period. The Private Health club industry experienced reasonable levels of growth over the past two years. Growth rates in the Local Authority sector have continued to improve due to higher levels of refurbishment and investment over the last two years. The performance of the Commercial Fitness Equipment sector is very much dependent on that of the Health Club Market and consequently growth in the sector has slowed in the last two years, though the market is still valued at over £200 million. However, growth levels have remained reasonable, as the health club market has continued to expand in terms of numbers of outlets. The Home Fitness Equipment market remains challenging, having grown slowly over the last two years as...
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