The health and fitness industry is far from uniform – the offer varies greatly depending on each fitness brand’s price range. Based on the pricing strategy, which market segments exist for today’s gyms, and which one is altering the current landscape?

Premium fitness centers: These are luxurious high-end gyms. Customers pay a high price to enjoy exclusive benefits – greater availability of machines reduced classes, spa treatments, more comfortable changing rooms and bathrooms, etc. In this price category, customers get what they pay for, and they don’t skimp on details.

Mid-range fitness centers: Gyms in this segment are characterized by their sense of community, backed by a strong brand. This family environment provides a collective experience where staff plays a fundamental role, supporting clients to create more personal atmospheres. While some believe this segment is in decline, mid-range centers like Anytime Fitness thrive with a strong community behind their brand, giving customers the personal treatment they need to achieve their training goals.

Low-cost fitness centers: This type of club offers great deals at very low prices. Members generally do not pay annual contracts and enjoy high-end machines and the latest technology with 24-hour access. Gym chains like Basic-Fit, with aggressive expansion plans, are reaping the rewards of growth in popularity in this segment – opening centers in the right places at attractive prices, thus capitalizing on the business model’s economy of scale.

Selective Business Expansion Opportunities vs. Dominance Tactics

Expansion plans based on the strategy of a large number have stopped working in this highly competitive market. To grow sustainably, it is no longer enough to place a new center on every corner and try to gain market share by increasing clubs’ number. The cost of each failed center in a constantly growing market weakens the brand. For this reason, business expansion opportunities must be associated with a key component of location, where new openings are selected only when market conditions in the area are favorable.-concentration of potential customers, number of competitors in the neighborhood, etc. Many fitness brands have already experienced that growing in numbers doesn’t always mean growing in profits. This selective expansion strategy, defined by the location factors of new clubs, is what makes the difference between a long-lasting expansion plan and one that results in high costs and few benefits.

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Location Intelligence For Sustainable Expansion Plans

The first step in defining a successful expansion plan is to identify your target customers – the target audience likely to join the gym at a certain price. Are they men and women between the ages of 30-40, with family and full-time employment? Or are they college kids living with their parents? It is important to know who the target audience is and where to find it. This is where Location Intelligence can help. Once the target customer has been defined, Location Intelligence technology makes it possible to find areas with a high concentration of this type of audience. In today’s fitness market, the demographic and social factors that shape each potential location’s environment are more important than ever.

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