Marketing Planning: A Critical Business Analysis of Gym Group

This report presents a critical business analysis of The Gym Group PLC, focusing on its activities within the UK. It includes a situation analysis covering financial and non-financial goals, the mission statement, core competencies, and sustainable competitive advantages. The report also features an industry and environmental analysis, including sector trends, customer segmentation, a PESTEL analysis, and key drivers for change. Furthermore, it provides a competitor analysis, examining major competitors and their strategies, customer analysis, portfolio analysis, and SWOT analyses for both the company and its major competitors. The analysis uses various resources, including financial databases, industry reports, and marketing strategy frameworks, to provide a comprehensive overview of The Gym Group PLC's business environment and strategic positioning.

Running head: CRITICAL BUSINESS ANALYSIS OF THE GYM GROUP PLC
Critical business analysis of the Gym Group PLC
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1CRITICAL BUSINESS ANALYSIS OF THE GYM GROUP PLC
Table of Contents
1. Situation analysis.........................................................................................................................2
Financial and non-financial goals:...............................................................................................2
Mission statement:.......................................................................................................................2
Core competencies:......................................................................................................................2
Sustainable competitive advantage:.............................................................................................3
2. Industry and environmental analysis-..........................................................................................3
Customer segment:......................................................................................................................3
PESTEL analysis:........................................................................................................................3
Environmental analysis:...............................................................................................................3
Sustainable competitive market:..................................................................................................4
3. Competitor analysis.....................................................................................................................5
Major competitors:.......................................................................................................................5
Strategies:....................................................................................................................................5
Customer analysis:.......................................................................................................................5
SWOT Analysis:..........................................................................................................................6
References........................................................................................................................................8

2CRITICAL BUSINESS ANALYSIS OF THE GYM GROUP PLC
1. Situation analysis
Financial and non-financial goals:
Revenue generation of about 58.3 million euro with an increase of 36.1%. The group
adjusted EBITDA2 of 17.5 million with an increase of 28.0%. The adjusted profit before tax
outstands to 7.0 million Euro, gaining an increase in an upward direction with 8.4%. The
statutory profit before the tax of the firm decreased by an amount of 14.4% to an amount of 5.1
million Euro due to increase in the exceptional costs amounting to 1.0 million Euro.
Satisfaction of the investors, and making sure that the shareholders obtain an equal proportion of
the profit. They aim for shareholder satisfaction and make efforts by undertaking a suggestion of
the shareholder as well as that of the stakeholders. The firm aim to reach at the top position
within the consumer market, by obtaining a major proportion of the market by satisfying the
consumer needs.
Mission statement:
The company claims that “By focussing on consistently improving the member experience in our
gyms, growing the estate with excellent new sites and continually refining our operating model, we
deliver sustainable, profitable growth and a strong return on capital”.
Core competencies:
They provide subscription at a minimal price in comparison to other rival firms. The
equipment’s available are a recumbent cycle, running machine, upright cycle, and the elliptical
cycle. Much more cardio machines are available.

3CRITICAL BUSINESS ANALYSIS OF THE GYM GROUP PLC
Sustainable competitive advantage:
Innovation in equipment’s, lowering the economies of scale in order to lower the fixed
cost per unit. The threat for entry of the firm is minimal as the company believes that within the
dynamic competitive market there is like a chance for the rival firms to beat the industry.
2. Industry and environmental analysis-
Customer segment:
The customer segment comprises of youngsters to adulterers. Taking into consideration
such consumer market the business firm has equipment’s targeting the adult's group for
undertaking cardio exercises.
PESTEL analysis:
The business firm operates about 90 different centres across the region of the UK. The
company offers GYM membership in order to generate new business opportunities. The
subsidiaries comprise of The Gym Group Midco2 Limited, The Gym Group Operations Limited,
The Gym Group Midco1 Limited, and The Gym Limited. The gym operates on multiple building
types where there are different kinds of equipment for different kinds of cardio.
Environmental analysis:

4CRITICAL BUSINESS ANALYSIS OF THE GYM GROUP PLC
Political factors: The local government conflict with the other neighbour countries will
lead to disinvestment from the venture bodies. The level of tax
structure causes the profit maximization strategy.
Economic analysis: There still exists a big question of whether the economy is operating a
perfect competition market, monopoly market, and oligopoly market.
Another factor as such that the interest rate of that particular country
will directly cause the growth and development phase of the business
firm.
Social factors: The number of complaints that is taking place is increasing. Moreover,
the majority of the consumer is from a lower class then the business
firm fails to promote a premium quality product.
Technological
factors:
The gym equipment’s and the safety equipment’s are required to be
replaced with that of the new ones.
Environmental
factors:
The Company make use of renewable sources of technology in order to
deliver its responsibility towards the environment. The company also
makes use of recycling technique in order to optimise the generated
waste. The company raise awareness in regard to the endangered
species and to go green.
Legal factors: The Company has sole copyright and patent rights on its property. The
company make use of employment law. The company also introduces
health and safety law. The company makes an effort to protect its

5CRITICAL BUSINESS ANALYSIS OF THE GYM GROUP PLC
consumer-related data.
Sustainable competitive market:
The company make use of the market experts and professionals in order to understand the
dynamic changes within the business environment. Beside upon the recommendation of this
expert the company undertake steps to deal with the business related problems.
3. Competitor analysis
Major competitors:
Bad Co.
Lewis Bailey Fitness.
Sports Direct Fitness.
Fitness First.
Diamond Gym Haydock, and many more.
Strategies:
The rival firms provide the same quality business but comparatively at a lower price in order
to give the competition the concerning firm. The rival firms even make use of similar kinds of

6CRITICAL BUSINESS ANALYSIS OF THE GYM GROUP PLC
equipments in order to attract the interest of the consumer. The rivalry firm conducts
promotional campaigns and events by giving discounts and coupons.
Customer analysis:
The consumer market of the gym business is dynamic and composed of different segments of
the people such that, the youths and the youngsters demand the chest and muscle building
equipment’s that are of huge cost. On the other hand, the adult's sections of the consumer market
demands the cardio exercise machines. The women’s of the consumer market demands for the
trend-mills and other peace practising exercises.
Portfolio analysis:
SWOT Analysis:
Competitors:
Strength:
The competitor has a major proportion of brand loyalty within the market.
Weakness:
The rival firms are unable to generate new business due to high competition in the economy.
Enterprise Inns
Fuller Smith &Turner
Greene King
The Gym Group PLC.

7CRITICAL BUSINESS ANALYSIS OF THE GYM GROUP PLC
Opportunities:
Making use of the new technologies and ringing innovation within the gym environment will
bring about new business related opportunities such as new entry by mean of membership.
Threats:
The frequent changes in the consumer market can outdate the present innovation technologies.
Thus making use of new technologies will generate new business prospects.
Firm:
Strength:
The company make use of the new equipment and eco-friendly measures. Moreover, the firm
makes use of the awareness programme for health promotion.
Weakness:
The huge competition within the market has made the business firm fail to occupy a major
proportion of the consumer market.
Opportunity:
The firm makes use of professionals and experts. Thus bringing in new business prospects.
Threats:
The other rival firms in order to complete within the competition try to provide attractive
schemes and offer in order to attract the attention of the consumers.

8CRITICAL BUSINESS ANALYSIS OF THE GYM GROUP PLC
References
Gym Equipment | Pay As You Go | 24 Hour Gym. (2019). Retrieved from
https://www.thegymgroup.com/equipment/
Marketing Management and Strategy by Peter Doyle.
masterinvestor.co.uk, C. (2019). Pump up your portfolio with The Gym Group - Master
Investor. Retrieved from https://masterinvestor.co.uk/equities/pump-up-your-
portfolio-with-the-gym-group/
The Marketing Planning Process by Phil Megicks, Ray Donnelly, Graham Harrison.
Use Ibis World UK and Mintel Reports for industry information.
Use Osiris or Fame database for the financials.
www.tggplc.com. (2019). Our Strategy | About us | The Gym Group. Retrieved from
http://www.tggplc.com/about-us/our-strategy
www.The Gym.plc.co.in. (2019). The Gym Group Plc PESTEL & Environment Analysis.
Retrieved from https://www.The Gym.plc.co.in/term-paper/9116-The-Gym-Group-Plc-
Pestel-Analysis
www.thegymgroup.com. (2019). The Gym Group | Low Cost Gyms | Open 24/7 | No Contract.
Retrieved from https://www.thegymgroup.com/