Fitlife Health Club: Comprehensive Business and Marketing Report

This report provides a comprehensive analysis of Fitlife Health Club, a leading Australian health club chain. It begins with an executive summary and company background, detailing Fitlife's mission, vision, values, goals, and objectives. The report then conducts a SWOT analysis, identifying the company's strengths, weaknesses, opportunities, and threats. A BCG matrix is used to analyze the product portfolio and guide future offerings. Market segmentation is explored, outlining target demographics, geographic considerations, and socio-cultural factors. A competitor analysis compares Fitlife with key rivals, evaluating financial performance, market share, strengths, and weaknesses. Finally, the report examines the marketing mix, providing insights into the strategies employed by Fitlife to achieve its business objectives. The report provides a detailed overview of the competitive landscape and strategic recommendations.

Activity 2

Table of Contents
Executive summary..........................................................................................................................2
Company background......................................................................................................................2
Competitor Analysis........................................................................................................................7
Key Statistics....................................................................................................................................8
Marketing mix..................................................................................................................................9
References......................................................................................................................................11

Executive summary
Fit life health club management serves as one of the industry leaders in the sport and
fitness segment. This club provides multiple services to its customer across the country. This Fit
life health club is grown from last two decades and plays critical role in the Australian economy.
The health and wellbeing industry is a dynamic sector and it has been developed since from last
decades. An evaluation of company strength, external opportunities and threats., weakness help
in preparing strategic analysis and marketing plan. Therefore in the present situation the
following key drivers which shape the health and wellbeing industry.
Company background
Fitlife is a private organization which is based on Sydney based Australian club chain.
This club have 182,000 active members in Australia in its 70 health club. Fitlife club is one of
the leading club who server different type of offers to its customer. Its different club in different
area provide facility such as swimming, Gymnastics hall, classes for Yoga body attack, bat
burner etc and recreation hall which include table tennis, badminton and net ball.
Mission, Vision and values
Mission statements: Mission of fit life club is to engaged in community and to provide
innovative health clubs to its customers. It want to deliver lifestyle program which can encourage
people of all background, ages and abilities to live health and active life.
Vision Statement: Vision of fit club is to provide high quality services to customers it give
priority to gymnastics, wellness and quality fitness through innovative program and services
which result in suitable changes in lives of those who join fitness club.
Values: Fit club is stimulated for promoting the quality of life to everyone who join their
organization on the basis of quality, energy, accountability, diversity, integrity, care,
responsibility etcs.
Statement of goals and objectives
Goal of Fit club for the next two year is as follows:
 To make distinction product and to continue premium pricing
 To commence innovative standard of living and healthy program
 To expand the retail part of the company so that it can easily increase fitness and lifestyle
program to begin in new marketplace

 To Build a Physio-gym cultures
General objectives
 To increase profit of organization upto 20% within a one year.
 To increase sale of its product upto 18% within a 15 month
 To enhance
 the customer retention rate every year till the next five year.
Specific marketing objectives
 To build up one or two wellbeing and fitness program till the end of year 2017
 Commence the fitness bar in the most income generating and competitive health club in
next 6 month.
Situation analysis is one of the reason
SWOT analysis
Strength of fitness club
 The strength of fitness club is that it
have excellent brand awareness, market
leadership and strong brand image in
market.
 It used advance technology which help
Fit club in providing high quality and
innovative services to its customer.
 It promote culture diversity and
innovative culture to customer with the
support of high class trainers.
 There are high number of equipment
available in club which is used by
trainer in peak hours.
 One of its another strength is that it
organize special classes for the elderly
and children and allow it parents to
work out freely.
Weakness
 One of its weakness is that fit club
charged high cost in which it include
services delivering, maintainece charge
and labour cost.
 Its online presence is very weak due to
which their are lots of people are not
aware of its products and services.
 Due to high price structure it attract less
international students which enable its
competitor to get chance for hiring
international student.

Opportunities
 Fit club have opportunity to expand its
business in different country which
help in gaining competitive advantage.
 It can improve quality assurance
through providing training and
development facility to its trainers
 Fit club have only internal number of
direct competitor in its target market
and present market.
 It have Iron man loyalty program for
retaining customer for longer period of
time.
Threats
 One of threat of Fitclub is fast growing
health, wellbeing related app and
gadgets which reduce the customer
base.
 There is availability of wide range of
free health and wellbeing resources in
the internet which teach people the way
of doing exercise.
 Lower cost competitor is one of its
another weakness which is one of the
biggest threat.
 Product portfolio and BCG matrix
 With the use of BCG growth matrix
below it help fitlife club in offering
collection for next five years.
BCG Matrix
BCG matrix is a growth market share matrix, Fit life club is offering portfolio for the next five
year which is as follows
Market
Growth Rate
(Cash Usage)
High Relative Market Share
(Cash Generation)
High Low
Stars Question Marks (new markets)

 Fitness activity for elder
people and
FatBurner
 Zumba
 Fitness activity for children
 BodyAttack

 Coaching far from club
through video calling
 Health Bar
 Loyalty card program for
regular customer
 One or two fitness activity
 Physio-gym

Low
Cash Cows Dogs
 Swimming classes for
younger children
 Personalised weight lifting
programs
 One-on-one training
sessions
 Boxing
Yoga
 Cycling avctivity
 Full Body Lift
 entertaining activities
 Martial arts

 Kendo
Market segmentation and the marketing mix
Current target segment in which target demographic and geographic segmentation
1.
Gender: Male/Female
Age: [0-5]: special yoga classes for children
[5-17]:martial arts, ,.Swiming classes for children, special yoga classes for children etc.
[17-60]: all type of activity including yoga
[60 and above]: seniors activity
married Status: Couple classes for married not for individual.
[Married, pregnant]: aqua exercise programs

[Married, with dependants]: Mums and Bubs Yoga, special children programs, etc.
[ Mums and Bubs Yoga all activity and assistance.
Generation: [Builders/Traditionals]: seniors activity
[Generation Z]: swimming classes, special children programs, martial arts,etc.
Income Level: High level
Socio culture segmentation
Activities: , gym, , weight-lifting, running, cycling, cardio, martial arts, boxing, kendo, squash, , table
tennis, sessions, badminton, netball, Pilates, yoga, and group classes, Swimming, martial
arts, kendo
profit
Sought:
strong lifestyle, ease (location – omnipresence), leisure, entertainment, tension decrease,
fair diet, weight control, enhance body mass, social interaction, and value for money
Loyalty: repeated customer, first-class loyalty
Lifestyle: Hobbies and free time activities 
Health and way of living 
tip performers 
sports education focus 
Social
Class:
Middle group: midway professional, organizational or trained
inferior Middle group: managerial, accountant, junior managerial or specialized
higher Middle group: higher professional, clerical or expert
Interests:  Lose weight and body-muscle toning
 Cutting-edge tools and facilities
 Individual/team sports programs including strength, swimming, weightlifting,
physical exercises, etc.
 Have a reasonable diet and nourishment program
 Personalised classes for different needs and age groups
 Self-fulfilment
 retain a healthy standard of living and encourage health conditions
 Have leisure and recovery activities

Competitor Analysis
Competitor
Financial
Performance
(%, ’11-15)
Market
share
(‘15-‘16
)
Value to customers Strengths Weaknesses
Fitness First -13.4 36.3%  best staff The biggest  huge cost

Australia  Good tool
and services
fitness club in
all over the
world
formation
 Locking
contracts
 functional
hours
Goodlife
Health Club -3.7 20.1%
 Cheaper
option for Fitness
First
 Family-
friendly
 Modern
facilities
 Strong
public image
 Unstaffed
gyms
 Most
dominant in
QLD, SA and
WA
 24-hour
access
 Press
presence (The
Biggest Loser)
 Locking
contracts
 Operating
hours
 Weak
coverage in NSW
Anytime
Australia +159.1 12.9%
 Low-budget
 24-hour
access
 Wide
presence
 Strong
public image
 Unstaffed
gyms
 24-hour
access
 Proven
franchise
model
 Limited
facilities
 Staff
unavailability
 Only focus on
gyms
 Not family
oriented
Jetts
Fitness +180.6 7.2%
 Low-budget
 24-hour
access
 Wide
presence
 Strong
public image
 Unstaffed
gyms
 24-hour
access
 Limited
facilities
 Staff
unavailability
 Only focus on
gyms
 Not family
oriented
 Costly
franchise model
YMCA +26.0 8.3%
 Family-
friendly
 Low-budget
 Teen gym
 Pools
 Programs for
disabilities
 Community
focused
 Strong
public image
 Wide
presence
 various
exercise
programs
 No
nutrition
programs
 Religion
imposed
 Operating
hours
 Not classy
outlook
 Outdated
equipment
 Too crowded

Fernwood
Women’s
Health
Clubs
-9.3 6.1%
 Wide
presence
 Customer-
centric approach

 Niche
market
 Strong
public image

Customised
programs
exclusive to
women
 Pregnancy
support
 Nutrition
programs
 Threatened
by Curves,
Contours and
EnVie
 Unisex gyms
with women-only
sections capturing
the market
Genesis
Fitness +145.6 4.9%
 Diversity in
nutrition and
exercise
programs
 Women only

 High
quality image
 Flexible
membership
 Child
minding
 Classy gym
and fitness
centre
experience
 Weak online
presence
 Operating
hours
 More gym
focused
 No seniors
programs
Key Statistics
Revenue Annual Growth 2010-2015 Annual Growth 2015-2020
$2.3bn 3.6% 4.3%
Profit Employment Health Clubs
$256m 23,000 3467
Products & Services Main Age Group
Interested
Total Member
Interest
Male
Breakdown
Female
Breakdown
Aqua Programs 46-55 24% 1% 23%
Martial Arts 16-36 32% 26% 6%
Pool 9-66 64% 30% 34%
Nutrition Program 21-61 76% 41% 35%
Boxing 19-31 18% 17% 1%
Kendo 22-35 3% 2% 1%
Recreational 6-45 42% 28% 14%

Gymnastics
Mums and Bubs
Yoga 25-38 32% 0% 32%
Body-Mind-Spirit 18-65 38% 6% 32%
Children Programs 4-14 29% 18% 11%
BodyPump 18-45 27% 7% 20%
FatBurner 18-45 33% 17% 16%
Zumba 18-45 19% 1% 18%
BodyAttack 18-45 21% 5% 16%
Gym - Weightlifting 15-50 88% 56% 32%
Gym – Cardio 15-50 88% 48% 40%
Figure 14: Utilisation of products & services based on gender and age groups
State Number of Clubs Population Member/Club ratio State Supply
NSW 1334 6786546 6240 35.4%
VIC 867 5098768 7123 2.8%
QLD 764 4765473 6901 21.0%
WA 421 2267546 5788 13.6%
SA 167 1898650 9259 5.8%
ACT 68 398273 4453 3.4%
TAS 50 498926 9812 2.5%
NT 19 227683 13320 0.6%
Grand Total 3265 21950693 67230 100%
Marketing mix
There are different element off marketing mix which company can used for launching its new
product and services which are as follows
Product: Fit life club is now required to make product which are different from its competitor so
that it can easily increase the sale . it have equipment which help delivering new product to its
customer. this product help company in gaining competitive advantage.
Place: Fit life club need open its club near the city area or place where people can easily visit,
firm open it retail store where people are unable to come then it may face issues in visiting
Promotion: It can promote its product on social networking site so that it can easily target large
number of people for selling its product and services.

Price: Fitlife company used penetration pricing strategy in which it keep price of its product
high and can easily increase the profit