Context Analysis and Promotional Objectives of Fitness First. Word Count: 500. William Hanrahan Student Number: Feb-08

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1 Context Analysis and Promotional Objectives of Fitness First Word Count: Feb-08

2 Promotional Objectives With the background information I have given in this assignment, I have created a key objective for Fitness First: Increase the number of members aged by 30% before January 2010 It s a behavioural objective, Fitness First should use more personal selling to develop new accounts, this will increase the amount of trials and encourage other members to rejoin the club and be made aware of other promotions. Prospects are open to offers and promotions of all kinds and the biggest job is to publicise them most efficiently. Overview of Stages Involved To achieve its objectives, Fitness First will employ a pull strategy, with most prospects aged between age group, Fitness First could look to become more relevant to this group who already perceive them as a young, fresh brand by increasing their a presence in schools, colleges and universities. Specifically focusing on internet and Face To Face Marketing in order to increase brand awareness. The adverts will show the benefits of healthy lifestyles, demonstrated by athletic models on golden beaches, giving the consumer the idea about getting in shape for summer, having a beach body and that it isn t too early to start. Contextual Analysis - Customer Context Population trends by socio economic group are an important influence on ability and prosperity to spend on fitness club membership. Consumers from the AB and C1 socio economic groups are the most likely to use health and fitness clubs regularly. Most are light TV viewers so this medium isn t an effective target, Newspapers and Radio is likely to be more effective. This group has most free leisure time and most disposable income to spend on visiting a fitness club; they are better informed and concerned about healthy eating and benefits of exercise. 2

3 Prospects include a third of all adults and this may be the best compromise for the marketing plan target. This will also reinforce current member s beliefs and help create loyalty. Prospects aspire to use a fitness club at some point in the future. Two thirds are lapsed users and may consider doing so again. Prospects include those within the year old age group with financial commitments acting as a barrier. Business Context Fitness first clubs target the affordable fitness sector of the market, they don t feature the facilities associated at the premium end of the market such as a swimming pool or restaurant, and this is reflected by competitive pricing including off-peak membership and low joining fees. Mintel categorise the standard user of a club like Fitness First to shop in Marks and Spencer s or Sainsbury s, I find this interesting as recently I was approached by a sales rep from Fitness First in Sainsbury s offering free week trials. This is an effective way of influencing prospects to join and in my eyes, it improves their reputation, it makes the public more of aware of the Fitness First brand. Increased competition between operators has encouraged lower levels of loyalty among members by offering incentives to attract members. Fitness first could look to see if they can reward loyalty for extended membership. Internal Context Fitness First is the largest club operator in the UK in terms of number of sales and number of members. In the UK, the company has continued its steady expansion while focusing more attention on improving performance and profitability. The culture at fitness first is stated on their website Every single Fitness First member counts. They put their success down to their biggest assets, the management, staff, instructors and trainers. They mention that in return Fitness First gym has created a business that supports its gym and employees and talents of everyone and rewards outstanding performance. 3

4 External Context PEST analysis is an effective way to analyse external impacts on the product. This requires examining political, economic, social, technological environments Political Government policy has potential to influence the market, specific initiatives could benefit the industry but there s also a broader push on the part of the government to try and promote healthy eating and exercise, possibly resulting in more people seeking gym membership. Economic Factors such as utilities prices and wage rates will affect numerous aspects of the company, Fitness clubs costs will rise and members may need to prioritise their spending as cuts are made on their disposable income, especially in the prospect group. Social Lifestyle factors such as growth in convenience foods and home entertainment have resulted in more sedimentary lifestyles, consumption levels of alcohol are rising which will effect gym participation and subscription. In today s celebrity culture there s lots of pressure to look better and have better bodies; this has influenced the levels of people who want to improve themselves. Technological It s important that the Fitness Club have up to date machines to compete with others and satisfy the needs of the members. Fitness first use technology to target the public in an effective way, text messages with special offers and online free trial vouchers. 4

5 Opportunities Prospects said they d be encouraged to join a health club with a doctor s recommendation, there s an opportunity to get GP s to play a more active role in the market. Women aged 65+ gym membership is high compared Men 65+, I suggest an opportunity for Fitness First would be concentrating on a joint membership scheme and encouraging Women to get their partners to join them. Threats There is a potential threat from the new format of No Frills gyms, they are basic, low cost and can have low membership, and it s also possible other activities are competing with gyms for example the Indoor Ski runs Another threat is that from the high street stores, as cost of machines come down, people can buy equipment to use at home. Bibliography of sources used Fill, C. (2005) Marketing Communications. 4 th Edition. Prentice Hall Fitness First Website ( Mintel. (April 2005) Health and Fitness Clubs. 2 nd Edition. 5

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