1. Introduction
With more competitors enter the Fitness industrial, well understanding of marketing situation and make appropriate marketing strategy is becoming more and more important for Fitness First Australia. This report will discuss Fitness First Australia’s marketing situation, analyze its strength/weakness/opportunity/threat, and pay particular attention on its goal and strategy formulation.
2. Fitness First Australia Pty Ltd marketing situation
2.1 Industry overview
Australian Fitness industry generates around one billion AUS dollars revenue per year, and there are 3356 gyms and health centers in Australia, hiring more than 20,000 employees in 2016.
2.2 Marketing situation
Fitness industry grew strongly in last five years, its …show more content…
More than 65% Australian aware Fitness First brand, and its effort of improving service and the resent rebrands successfully dispel its “Finance First “reputation. Good reputation and brand awareness are critical while people make a decision of which gym to join. Fitness First owned 19.4% of market share in Australia fitness industry, and enjoy high member satisfaction and member loyalty. Major income of Fitness First is from membership fee. Dominant market share, high member satisfaction and loyalty increases the potential of profitability of Fitness First. Fitness First has strong management team, and managers and staffs are getting paid more than industry’s average salary. A highly motivated team can build highly innovative culture and can result on sales growth and high retention rate both for members and staffs. Fitness First also has high willing of using new technology to improve member experience and staff productivity, and the economic scale keeps the cost of new technology in a low level. High technology makes significant difference on member experience especially for members under 40 years old.
3.1.2 Weaknesses
Fitness First’s human resource costs and operating cost are high in comparison to their competitors in order to provide outstanding products and services. As a result, membership fee is higher than budget fitness clubs. Many price-sensitive customers choose Crunch, Fit n Fast instead of joining Fitness First. High operating cost also stop Fitness First expand its brand to lower income but high residential density suburbs like Blacktown in Sydney. Penrith, Granville, Auburn and Rockdale club have proven a failure of Fitness First trying to make profit in this segment.
3.2 External
With more competitors enter the Fitness industrial, well understanding of marketing situation and make appropriate marketing strategy is becoming more and more important for Fitness First Australia. This report will discuss Fitness First Australia’s marketing situation, analyze its strength/weakness/opportunity/threat, and pay particular attention on its goal and strategy formulation.
2. Fitness First Australia Pty Ltd marketing situation
2.1 Industry overview
Australian Fitness industry generates around one billion AUS dollars revenue per year, and there are 3356 gyms and health centers in Australia, hiring more than 20,000 employees in 2016.
2.2 Marketing situation
Fitness industry grew strongly in last five years, its …show more content…
More than 65% Australian aware Fitness First brand, and its effort of improving service and the resent rebrands successfully dispel its “Finance First “reputation. Good reputation and brand awareness are critical while people make a decision of which gym to join. Fitness First owned 19.4% of market share in Australia fitness industry, and enjoy high member satisfaction and member loyalty. Major income of Fitness First is from membership fee. Dominant market share, high member satisfaction and loyalty increases the potential of profitability of Fitness First. Fitness First has strong management team, and managers and staffs are getting paid more than industry’s average salary. A highly motivated team can build highly innovative culture and can result on sales growth and high retention rate both for members and staffs. Fitness First also has high willing of using new technology to improve member experience and staff productivity, and the economic scale keeps the cost of new technology in a low level. High technology makes significant difference on member experience especially for members under 40 years old.
3.1.2 Weaknesses
Fitness First’s human resource costs and operating cost are high in comparison to their competitors in order to provide outstanding products and services. As a result, membership fee is higher than budget fitness clubs. Many price-sensitive customers choose Crunch, Fit n Fast instead of joining Fitness First. High operating cost also stop Fitness First expand its brand to lower income but high residential density suburbs like Blacktown in Sydney. Penrith, Granville, Auburn and Rockdale club have proven a failure of Fitness First trying to make profit in this segment.
3.2 External