Fitness market research notes PDF

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BTEC Level 3 Marketing research...

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Health and fitness market 

Is the market growing?

There are roughly 6.7 thousand health and fitness clubs in the United Kingdom with approximately 9.7 million members. The number of low cost fitness clubs grew in 2020, with Gym Group accounting for 175 clubs with 794 thousand members, generating a total annual turnover of 2.2 billion British pounds. The majority of fitness clubs generates a turnover between 150 and 350 thousand British pounds or less. Health and Fitness Market is worth in UK more than £5 billion for the first time. 

Who are the main producers?

The companies holding the largest market share in the Gyms&Fitness Centres in the UK industry include: -David Lloyd Leisure Ltd-provides the perfect destination to stay fit and healthy, facilities include state-of-the-art gyms, heated indoor and outdoor pools, top-class racquets facilities, well-equipped group exercise studios and luxurious spas. Clubrooms for eating, drinking and socialising and also, kids activities and crèche. -Nuffield Health- is the UK’s largest healthcare charity that promotes and maintain health and healthcare, provides services such as beauty suite with treatments for relieving stress, health assessments, healthy weight programme, hydrotherapy, swimming lessons and Children’s Creche and Junior Programme. -Pure Gym Ltd-it is Britain’s largest gym chain by membership, being the first to gain 1million members offering fitness studio, clean and spacious changing rooms, entrance pods, vending machine. -Virgin Active Ltd- offering a range of services such as swimming, studios for dance, relaxing places, spa, gym floor, grid floor and cycle studio -The Gym Group Plc-down explained -Dave Whelan Sports Ltd -Bannatyne Fitness Ltd-provides the opportunity to take advantage of the extensive health club facilities and personalised services including access to expert personal trainers and complimentary fitness evaluations when joining 

What is their target market? -Around 8.9 million people in England take part in fitness activities for at least 150 minutes per week, of which women are slightly more active than men. -in the UK, 1 in every 7 people is a member of a gym.

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-earlier, spending on fitness and taking gym membership was seen as a luxury, but now it has become a part of people’s lifestyle. Growing urbanisation, rising middle class, and increasing disposable incomes are boosting the need for gyms. - UK has the biggest fitness market in Europe after Germany -The most highlighted fitness trends in UK for 2020 are, according the surveys, wearable technology including fitness trackers, smart watches, HR monitors and GPS tracking device -Group training defined as more than five participants work together -Body weight training for preventing the obesity in UK -Exercise is Medicine is a global health initiative that focuses on encouraging primary care physicians and other health care providers to include physical activity assessment and associated treatment recommendations. -Fitness programs for older adults -Their target audience, according for many statistics is people aged between 25-40 -The most crowded hours showed in statistics highlights that 25% of members attending between 5-7pm, 20% between 1-3 pm and another 20% between 7-9am -Statistics also show that the most crowded days are Monday and Wednesday Health and fitness industry provides fitness facilities, specifically gyms and health clubs. These organisations typically provide services on a membership basis, and benefits include the use of exercise equipment and weights, personal training, group classes and other club facilities. COMPETITORS: -One of the biggest competitor of the industry is The Gym Group, founded in 2007, offering low cost gym facilities in the UK. They offer 24/7 service, no contract gym membership, having 794.000 members with 175 gyms 

What media could a gym business use to market its products? -offering corporate wellness initiatives (corporate image), run promotions on social media(promotional advertising and social media), hold charity competitions, digital marketing, send automated reminders to clients

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Market Share Gyms and fitness centres industry has a low level of market share concentration, as top four companies are estimated to account for just over %20 of the total industry revenue. Despite large companies such as Virgin Active, David Lloyd Clubs and Bannatyne Group having a strong presence in the market, these are a large number of small independent gyms operating in UK. Unique selling points for gym and fitness businesses -the only gym in the city with sauna or spa -the only gym to have outdoors and indoors pools -the only gym in your price category to offer personalised training plans -the only gym with 24-hour access -the only gym with free parking -women only gyms -premium full-service health clubs

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-Gyms include activities such as yoga to boost revenue -Budget gyms offer low prices achieved by using cheaper sites -Traditional gyms offer tennis courts, indoor and outdoor pools, crèches, relaxing programme Price cycle -On average, a membership fee is about £40 a month, you can cut the cost by shopping around to check the prices of non-for-profit gyms and non-gyms exercise classes, and seeing what pay as you go contract free options are available -price of the gym depends on location and type of gym -a low cost can offer for £15 and a traditional gym up to £70 per month External influences POLITICAL -Staff need to be trained and qualified fitness professionals -UK Regulations labelled obesity as a disability-encouraging more people to use gyms to cut down on obesity -During lockdown the government close the gyms -the government is trying to minimise the gym activity ECONOMIC -The interest rates and inflation involve a low level so the income and demand for gym membership will increase -unemployment rates during lockdown increased involving financial difficulties for people -economic growth in recent years SOCIAL -1 in every 7 people in UK is a member of gym -ageing population that requires more equipment -during lockdown, people might have mental health problems and the gyms and fitness centres could be a great way for relieving the stress -obesity crisis -One motivation for joining a gym is to meet new people -shift work and homeworking are common in the UK -on average, Britons work 43.6 hours per week -25% of adults in England are obese and 62% of adults are overweight TECHNOLOGICAL -Increase in the use of supplements -according to surveys, the most wished 2020 fitness trend in UK is wearable technology -Advancement and variety in types of gym equipment -a number of fitness apps have now been introduced to provide fitness programme during lockdown for free cost -Growth of the internet means that homeworking has become more common LEGAL -The Data Protection Act 1998 controls how businesses store and use customers’ personal information -advertising codes of practice ensure that all advertising is honest and accurate -The Trade Descriptions Act 1968 ensures that false or misleading information cannot be included in any advertising -Direct debit regulations are in place to control how membership fees can be collected

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ENVIRONMENTAL -a congestion charge zone introduced in central London in 2003 aimed at reducing congestion and traffic in the city centre -a level 7 pollution warning alert was placed on Central and West London in 2015, with the London Mayor advising people to spend less time outside to protect their health -the 2011 census shows that there is overcrowding in Inner East and South London, with four boroughs being overcrowded by 30% or more

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Other marketing campaigns Answer: There are two television advertising costs: buying adverts the spots between TV shows in the UK. Rates for the smaller digital channels start around £50 to £150 for daytime and £150 to £300 for peak time. TV adverts during Good Morning Britain or Lorraine can cost between £3,000 – £4,000. Billboard rental costs in the UK vary according to the size and location of the billboard. Typically, a standard billboard costs £500-£600 for 2 weeks and smaller advertising panels like bus stop shelter advertisements cost £240-£270 for 2 weeks. The average cost of billboard advertising is around £200 per week for a standard 48-sheet hoarding. An ad on the side of a bus stop on a busy high street could cost around £300 for two weeks' exposure. For upper-to-mid funnel objectives like impressions, video views, or link clicks, McCoy recommends a minimum budget of $100 over a minimum of two to three days. ... If you're going after a lower-funnel objective, you should give yourself more budgets and more time.

$100= 75,15 GBP Small circulation newspapers offer advertisements for at least $70. An ad in a mass circulated magazine, however, can cost thousands of dollars. Always remember that publications offer discounts and contracts for multiple run advertisers. $70=52.61GBP So, what will it cost? As a rule of thumb, radio advertising is charged at a rate of approximately £2 per thousand listeners at one time. To clarify, if a show has 100,000 listeners at 10am, then buying a 30-second spot at that time will cost you £200. The late show's 10,000 listeners at 11pm would only cost £20. Leaflet distribution costs vary depending on the type of leaflet drop campaign you are running. For shared distribution, you can pay from £25 per 1000 leaflets to £40 per 1000 leaflets. Solus distribution is a bit more premium so you can expect to pay £50-£80 per 1000 leaflets

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Looking at the most popular website builders available, you can expect to pay between £3/month and £10/month for a basic plan, and around £15/month to £30/month for a more advanced plan that includes a fully-featured ecommerce solution. Nationally, the average cost of social media marketing is £200 to £500. £95per 1,000 leaflets-leaflets distribution

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Example of campaign? David Lloyd Clubs is an example of competitor health club business which has used TV advertising campaigns as part of a marketing campaign to promote their clubs. He also used newspaper and magazine advertising to promote their clubs. It is over £30.000 for a full-page colour advertisement in the Daily Mail. The cost of local newspaper can vary greatly on average it costs in excess of £250for a quarter page of advertisement. A full page advertisement in a magazine with a readership of 5000 people will cost at least £200.

Social media-the faster method of reaching CUSTOMERS Marketing consultants offer a range of social media support packages. A basic set up fee for Facebook, Twitter and Google+ is around£150.The monthly management fee which include two-three updates per day is around £250 per month.

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Radio advertising A week long campaign for 30 second advert £500 on a local station £2500 on regional station Upwards £10.000on a national station

TRENDS        

Wearable technology High-intensity interval training (HIIT) Group training Training with free weights Personal training Exercise is Medicine Body weight training Fitness programs for older adults.

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