The Olympian “Les Mills” first opened the gym in 1968 and has been expanding its branches ever since including its Wellington branch in 1982, the gym I am focusing on (Les Mills, n.d). Les Mills is a one-stop comprehensive and full service gym located in Wellington. It offers facilities assisting in attaining active and healthy lifestyles through its extensive services.
Les Mills is a business providing a service with the goal of helping its consumers lead healthy and active lifestyles in central locations in Wellington.
Market Environment: The market is a considerable size in Wellington. Gyms like Jetts and City Fitness are key contributors to that size. Gyms vary in size and what they offer, they may be gender exclusive gyms, small stand alone gyms, large chain gyms, outdoor based training, and so on. Trends in the market consist of; attentive staff with relevant qualifications and a range of services within the gym (personal training, classes, good equipment). Customers within the market are in the “age of obesity” and generally concerned with “weight loss, muscle toning cardiovascular fitness, stress management and injury prevention/rehabilitation,” (The New Zealand Institute of Health and Fitness (March 2009).
External Environment: Les Mills has many competitors as all gyms offer many of the same things. However all differ in internal features to set themselves apart from their competitors to target certain markets. Les Mills competitors are gyms like Jetts and City Fitness, and extend beyond gyms alone but also businesses which offer fitness, health and weight loss services, such as paddleboarding companies, Bikram Yoga and Jenny Craig.
Internal Environment: Les Mills offers a strong motivational culture, this is important in gyms, to motivate their costumer in achieving their goals. Les Mills staff are all well trained, personable people who create a motivational culture within the gym. They also offer the facility of personal training, Les Mills also offers a very wide range of equipment and workout machinery, as well as running classes.
Competitive analysis: The gym market is an oligopoly-structured market. It consists of many small and large gyms. Gyms generally charge similar amounts for their services but price competition and calling can occur to gain customers over their competitors. Jetts and City Fitness charge less for memberships, however they attrac3t mostly to students or adults with lower incomes as they charge a more affordable fee.
MACRO Environment analysis:
Gyms, like majority of businesses were and are affected by the post 2007 recession, which changed consumer-spending patterns. Les Mills had to factor that into its membership cost and how to market itself. Demographics impact Les Mills. Its locations need to be close to their target market. It seats customers who have disposable income to spend on membership costs. Due to the age of obesity there is increasing importance on fitness and health. This is predicted to become more trend in the future. Technological Environment: The Internet has changed the face and conduct of business. Les Mills has adapted to this by creating a website. The technological environment is not highly influential as they are a location-based service, but it is important in terms of communicating with their customers.
(Heinz Weihrich (n.d).)
Economic struggle/recession: The 2007 economic recession lead to a decrease in its customers. Prior to the crash they had more disposable income. New Entrants: New entrants with innovative ideas extending beyond Les Mills services is a threat to membership levels, and impact upon profit. Expanding target market: Les Mills could branch out to consumers who otherwise workout in the outdoors. Introducing Nutrition as a core aspect of the services offered. This would give it a competitive edge against competitors, as well as competing against weight loss competitors such as Jenny Craig.
Good reputation: Les Mills is a well known, reputable and trusted. It has been operating since 1968. This allows for word of mouth among consumers. Innovative culture: Les Mils innovative marketing ideas such as, popular fitness classes and 24-hour services has set them apart from competitors and allowing them to charge more for memberships. Location: They are locate near customers generally working in corporate fields who can afford to pay higher subscriptions for convenience in city centers. Cost of running services: The classes Les Mills run are costly, as they need to supply the facilities, equipment, and trainers to run them.
(Heinz Weihrich (n.d).)
Target Market: Les Mills Target Market consists primarily of those in established jobs who have the additional disposable income to spend on a gym membership, typically priced higher than most other gyms.
Les Mills could increase its membership levels by attracting a wider base of consumers, perhaps those whose interests lie in fitness but don’t like always being confined to a gym, who enjoy getting outdoors. A marketing idea that introduces a weekly activity such as Standup Paddle Boarding sessions where they take groups of people out on the water each week. The advantage of this is that it attracts customers interested in trying something new, as well as ones who have experience in it. It also strengthens their sense of community and culture in the gym because paddle boarding as a team is a social way to exercise, as opposed to running on a treadmill for example.
Heinz Weihrich (n.d). The TOWS Matrix— A Tool For Situational Analysis. Retrieved from http://www.usfca.edu/fac_staff/weihrichh/docs/tows.pdf
MPlans (n.d) Health Fitness Marketing Plan. Retrieved from http://www.mplans.com/health_fitness_marketing_plan/situation_analysis_fc.php Andrew Weber.(n.d) Fitness Industry Analysis 2014 – Cost & Trends. Retrieved from https://www.franchisehelp.com/industry-reports/fitness-industry-report/ The New Zealand Institute of Health and Fitness. (May 2009). A profile on the New Zealand fitness industry (article). Retrieved From http://www.nzihf.co.nz/media-resources-1/articles/a-profile-of-the-new-zealand-fitness-industry Les Mills (n.d) Welcome to Les Mills. Retrieved from http://www.lesmills.co.nz/join-us/?club=1836&plan=fbabd202-741e-df11-9eaa-0050568522bb,c3280ab8-741e-df11-9eaa-0050568522bb