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What Does Your Fitness Club Stand For? Part 1

Ray Algar, Healthy Business Conference Gothenburg Sweden 2007

What Does Your Fitness Club Stand For? Part 1

  1. 1. What does your fitness club stand for? The business case for building a unique business Part 1 © Ray Algar – Oxygen Consulting 2007
  2. 2. Find out more about me here
  3. 3. … or Google me
  4. 4. I want to talk about creating a unique and different fitness club business
  5. 5. I will talk about computers, Coca-Cola, a chair, an airline and fitness clubs…it will make sense!
  6. 6. PART 1 - today Why clubs need to be unique and different
  7. 7. PART 2 - tomorrow Four fitness clubs that members love
  8. 8. Why does your club need to be unique and different?
  9. 9. Everywhere, we are faced with more and more choice
  10. 11. Let’s look at Sony laptop computers
  11. 14. Welcome to the fitness club market
  12. 15. This is how customers may see you!
  13. 16. So it becomes a fight over price
  14. 17. Fly for free
  15. 18. Are fitness clubs becoming commodities like coffee beans?
  16. 19. Winners and losers
  17. 20. REAL competition …welcome to New York
  18. 21. More competitors will be arriving – just give it time
  19. 22. Great price for Swedish members
  20. 23. Time to focus on extraordinary service?
  21. 24. <ul><li>If you offer no differentiating features with your club, then customers may see you as a commodity </li></ul>
  22. 25. So consumers have choice, but how good are these clubs?
  23. 26. Let’s go on-line and find out
  24. 27. The health club experience – the real uncut version
  25. 32. 64% 36% All opinions 53% 47% Prospective members 95% 5% Past members 60% 40% Current members Negative opinion Positive opinion
  26. 33. 95% 5% Past members Negative opinion Positive opinion
  27. 34. Do clubs care?
  28. 35. … during the tour, yes!
  29. 36. ‘ the best salesman ever’
  30. 37. ‘ cup of coffee bought for me and all the trimmings’
  31. 38. ‘ I remember how friendly the sales lady was in trying to get me to join up’
  32. 39. … but after the honeymoon period
  33. 40. ‘ After the initial session, they have never checked my circumstances or how I was doing over my two years of membership’
  34. 41. ‘ The clubs are not interested in their members’
  35. 42. ‘ Once I had joined, she (sales staff) would blank me when I said hi to her’
  36. 43. Membership factors: 87% negative – cancellation, notice period, debt collectors
  37. 44. Read this before you sign
  38. 45. ‘ I was not aware of the 12-month commitment period until I tried to cancel and had not been given a copy of the contract’
  39. 46. ‘ Beware smiling salesman offering “great deals” and asking you to sign contracts with very small print’
  40. 47. ‘ I visited once before diagnosed with breast cancer. I informed the manager…sent five letters. No response apart from letters from the debt collection agency’
  41. 48. Chandler wants to quit the gym
  42. 49. Friends video
  43. 50. Would they recommend to family, friends and colleagues?
  44. 52. 317 reviews 10% promoter rate for 6 chains
  45. 53. 22% highest chain 7% lowest chain
  46. 54. … during the tour, yes!
  47. 56. Little positive word of mouth being harnessed
  48. 57. Welcome to low-cost, budget clubs Door left wide-open for budget clubs 183 Kr/€19/month
  49. 58. 159 Kr/€17/month
  50. 59. 75 Kr/€8/month
  51. 61. “ There will be no UK mid-market clubs in five years” – Budget chain Director
  52. 62. Differentiate or die <ul><li>If you don’t have a differentiating idea to drive your club then offer a great price! </li></ul>
  53. 63. So, where do you want to be? Striving to provide a remarkable service or competing on price?
  54. 64. So, we need a strong purpose
  55. 65. ‘ Stand for something, or fall for anything’ Malcolm X
  56. 66. The challenge is for members to feel a strong sense of belonging and connection
  57. 67. Members need to fall in love with your club
  58. 68. Porsche creates passionate customers
  59. 70. A strong purpose provides a compass for your club
  60. 72. A strong purpose helps your fitness club and brand to become unique
  61. 73. When you are different and valued, customers will pay more
  62. 74. Coca-Cola 20Kr/€2.12 Supermarket own brand - 3 KR/€0.30 590% premium
  63. 75. Herman Miller - A company with a strong purpose
  64. 76. Is this the most comfortable office chair in the world?
  65. 77. Yours to own and love for 13,500 Kr/€1,440
  66. 78. So, what is your club going to stand for?
  67. 79. ‘ Stand for something, or fall for anything’ Malcolm X
  68. 80. A small company can have a very big cause
  69. 81. Market positioning is creating a clear, distinctive and attractive market position in the minds of stakeholders
  70. 82. Market positioning helps your fitness club and brand to become unique
  71. 83. It needs to be exciting, different and valued
  72. 84. Positioning map – car brands Exclusive Affordable Luxurious Fun/Great driving experience Porsche Ferrari Aston Martin Jaguar Massarati BMW Mini Smart Skoda Audi TT Mercedes Bentley ? VW Beetle
  73. 85. Which of these do you want your fitness club to own? Convenient Friendly Exclusive Fun Affordable Relaxing Effective Profess- ional Attributes
  74. 86. Professional
  75. 87. Effective
  76. 88. Relaxing
  77. 89. Affordable
  78. 90. Exclusive
  79. 91. Friendly
  80. 92. Convenient
  81. 93. Fun
  82. 94. Developing your market position. What do members love about your club?
  83. 95. What do members want from your club?
  84. 96. Can new research of members, staff, suppliers create insights for a positioning strategy?
  85. 97. Be clear on the attribute you want to own
  86. 98. Developing a positioning statement: The friendliest fitness club you will ever join
  87. 99. Some other fitness club positioning statements
  88. 102. This should NOT be a superficial slogan. It guides everything you do
  89. 103. Bringing your market positioning to life What the club will measure Brand Value Market position Physical attributes & systems How staff communicate and act
  90. 104. Bringing your market positioning to life 2. Brand value Caring 3. System Member tracking system 4. Staff Actions Work hard to achieve member objectives 1. Positioning The friendliest club you will ever join 5. What the club will measure Members judge staff engagement
  91. 105. What if my fitness club/brand has no distinctive qualities?
  92. 106. Discover one. Make it the best it can be. Make it impossible for a competitor to copy
  93. 107. Key points and actions
  94. 108. Discover the unique market position that you wish to hold
  95. 109. Ensure it is clear, distinctive and profitable
  96. 110. Measure actions against your market position
  97. 111. Ensures the brand lives and breathes your market position
  98. 112. Aim to make your club/brand remarkable
  99. 113. Ensure you have the resources to execute the strategy?
  100. 114. Ensure you have the passion and patience to achieve your unique position?
  101. 115. PART 2 - tomorrow Four fitness clubs that members love
  102. 116. Thank you Read more in Mastering Health Club Management, my new book – 195 Sk/€20 (325 Sk) www.oxygen-consulting.co.uk

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