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Business Strategy Of A Health And Fitness Company- A Case Study On Fitness First, UK

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Make a report on the industries - health  and fitness industry and make a executive summary  and clear  and concise  target  market, segments and positioning. Make  comments on both Micro  and Macro environmental  forces  affecting the company.



Marketing of the companies are considered to be the most important aspect to intrigue the presence and development within the selected market and consumer segments (Armstrong et al., 2012). The present aspect within the health and fitness consideration is to be applied and considered within the different organizations, which are present in the same sector. There can be probable aspects and observations to the changing consumer needs and those are to be considered with the perfect attention towards the specific needs and requirements. The health and fitness companies need to develop the understanding and attainment to the consumers with the perfect business presentation and business capitalization. In this report, the company, which is considered, is Fitness First, which is the largest privately owned fitness, and health club and these are also analyzed with the different marketing and business frameworks for developing the knowledge and understanding about the business strategy (Teece, 2010). The marketing aspects and environmental aspects are considered and developed within the present report and the effect on consumer perception and consumer behaviour is addressed within the company.

Fitness First UK Information:

The company Fitness First is owned by Oaktree Capital management and is considered as the largest privately owned health and fitness club chain in the world. The company was established in 1993 and at present, the chain is consisting with almost 550 clubs worldwide and consisting with 1 million members in more than 15 countries. Within the UK itself only, there are almost 100 clubs of Fitness First clubs consisting with approximately 250000 members. The company has also acquired Living Well Lady clubs owned by the Hilton group of companies in Australia (, 2015). The company has also acquired the Healthland chain consisting of almost eleven clubs and thus the company has spread its presence in all over the world. The company has specific target segments and consumers in different countries with different business propositions and there were different marketing and promotional activities integrated within the business scenario and business attention within the health and business segments.

STP strategy:

The business strategy of the company is consisted with different attributes like segmentation, targeting and positioning strategy and those are also integrated with in the business approaches (Armstrong et al., 2012). The STP strategy of the Fitness First is discussed here also for attaining the perfect opportunity and development criteria with the prospective criteria and attention.

Segmentation strategy:

The segmentation is an important aspect of the marketing and business prospect and those are to be adjusted and justified within the selected consumer segments for developing the correct attention to the market. The company Fitness First has segmented the market with different demographics and psychographic variables and those are also based on the geographic location integration with the proper attainment and development of the strategy (Kapferer, 2012). The company has segmented the consumers based on their earning or income segment, their demographics like age and other variables are selected. Then there are psychographic attentions towards the health and conscious details, which are also segmented within the consumers. The professional and non-professional both types of the consumers are to be adjusted and dedicated within the segmented market.

Targeting strategy:

The people who are targeted within that mass market are specially clarified within the income range and age with their psychological attention towards the health and fitness. In today’s world, there are different consumers like the middle-aged women homemakers or the professional people who are more considerate about their health and fitness. The socio-economic class of people AB and C1 are more attainted by the fitness and health perspectives and they are the most targeted customers by the company. The consumers would be more attentive towards the fitness clubs at their leisure time and they are also considering for better lifestyle and better opportunities. The company Fitness First has rightfully targeted the people with specific need and requirements and the people who are able to join the Fitness First clubs with sufficient amount of earnings.

Positioning strategy:

The Fitness First has tried to position itself as the premium fitness club and thus it has tried to establish itself as more convincing business entity with perfect attention towards the business and marketing opportunities. The company has been integrated with the specified commercial buildings or high-end places with the perfect attention towards the specific consumers (Buhler and Nufer, 2012). There are different office workers and professional people been targeted by this strategy and also the company has tried to open its clubs in the high society ends where the blue collar people can join the fitness clubs. The company has tried to be evaluated with the specific services and products integrated within the positioning system and that can be critically analyzed with the dimensional mapping with the competitors. The dimensional mapping can give a more clear idea about the company’s positioning.

Macro and Micro environmental factors:

Micro and macro environmental factors are to be developed and framed for understanding the business details and those are to be critically linked and analyzed within the specific variables, which are to be considered and accepted.

Macro factors:

The macro or environmental factors are external factors, which are to be discussed and developed with separate understanding and framework details within the company’s future prospects and attributes. The company has to understand those factors and then critically incorporated those within the specified factors like political, economic, cultural, technology etc (Armstrong et al., 2012).

Political and legal:

The political and legal framework in any country is to be properly applied to the business and club’s policies as the Fitness First is oriented to the people’s health and fitness attributes, the clubs are to be bound by the local and regional laws and governing policies (Hui, 2011). In that respect, there should be policies and legislations abide by for opening and intriguing new clubs and new branches to be opened in various sectors.


The economic activities are to be also properly integrated within the business conditions and business orientation as the economic opportunities within a country will be more developed and attained within the perfect economic activity within the selected country or global influences. The Fitness First clubs are presumed and positioned as the premium clubs and thus they are opened in the selected regions where the people have the purchasing power for the products and services offered by the club.


The socio cultural aspects are also the most important options to be included within the society and those are to be highlighted and developed within the personal and professional details of the social class of people. As told before, the socio economic class of AB and C1 are the most likely customers for the Fitness First. The changing social and cultural aspects are favourable to the Fitness First as the people are perpetual towards the health and fitness attributes in the changing society. In UK itself, due to high obesity and higher health attenuation rate, the health and fitness objectives are to be attained and perceived more by the consumers.


Technology plays a significant role in the business attention of the Fitness First as there are different instruments and products, which are to be adjourned and integrated within the services offered by the Fitness First. The clubs are to be associated with the latest and most improved technical instruments to deliver the people with appropriate services and offerings (Hui, 2011). In other way, technological advancements like digital and social media involvement or the MIS integration is also required within the club for presenting and developing the more sustainable and profitable business context.


Lastly, the environmental aspects of the company are to be justified and developed within the specialised affects and advancements within the system. The company Fitness First has the opportunity and intention for integrating the environmental consideration for the clubs and those are to be developed within the business context of the clubs (Liu and Nie, 2011). The products, operational and services are to be adopted within the environmental adaptation, which are to be properly integrated within the environmental standards and collaboration.

Micro factors:

Then her are micro factors which are more integrated with the internal factors for attaining the perception and business details for the company. There were separate offerings and policies for each variable and those are like the internal operations, stakeholder, employees etc (Teece, 2010).


Consumers are the most important micro factors as the consumer depicts the services and the products, which are to be offered. The Fitness First is a service company and thus the fitness and health services are to be provided according to the consumers. The marketing and advertisements should be likewise which are to be adopted and developed within the specific consumer needs to attract more consumers.


Employees are the face of the organization and they are to be trained and perceived as the most important internal factors for the companies. The Fitness First is the fitness club and the services are provided by the employees only who are to be adjusted with the company’s vision and mission (Dunn et al., 2012). With more sustainable and perceived services, the company can retain and maintain their consumers and for that the employees are to be trained and introduced with the business and service quality within the company Fitness First.


Suppliers are the people who provide the raw materials to the companies and in this case, the instrumentation companies or the other service companies which might integrate within the services of Fitness First. They are to be properly associated with the dedicated services to reach the required quality and business association.


Stakeholders are the people who are directly influenced by the operations of the company. They can be the consumers, the shareholders the employees or the society as a whole. The operations and business context should be beneficial to the companies and those are to be adjusted and developed with the perfect attention for attaining the profitable and sustainable business proposition (Dunn et al., 2012).


Media or promotional aspects are also important for a service company like Fitness First and those are required to be more attained with the positive aspects of the company. The negative media attention can decrease the reliability and opportunity of the company and those are to be sustained and perfectly matched with the business operations of the Fitness First (Yi, 2011).

Consumer perception and behaviour about Fitness First:

Consumer perception and behaviour is to be properly adjusted and compiled within the company’s future attainment and services as the consumer’s perception and development is to be adjusted with perfect collaboration with the business objectives (Surujlal and Dhurup, 2012). If there is, any Gap between those two then he companies might lose the consumers and the business.

Consumer perception:

The company Fitness First has tried to establish themselves with the effective marketing and positioning concepts and there are several expansion and market development strategies been covered and developed within the present business context. In this respect, the company Fitness First has the opportunity and consideration to develop the consumer perception with the offerings and services from the company. The company has initiated with the rebranding strategies with rebranding opportunities with the perfect consideration and development of the business processes (Perreault, 2011). There is logo and brand statement rebuilt and those are to be presented within the consumer market with more emphasis on future prospects. The Fitness First has not tried t o be premium by integrating swimming pool or other extra assets but it has tried to provide the best instruments and services to the people with sufficient help and consideration. The company has tried to consider the specialised offerings by the services towards the consumer with the proper establishment of management and services with the help of trainers and employees (Grant, 2010). The company has tried to reposition itself with premium fitness service provider and the company Fitness First has also tried to establish the correct business segmentation within the mass market for attaining the proper consumers.

Consumer behaviour:

Then there is consumer behaviour to be attained within the business proposition and those are to be properly induced with the customer perception and brand image of the company. The consumers who are more selective to the health and fitness attributes are entertained and comprised of the separate entity (Wenjuan, 2012). The consumers and the market segments are to be properly constituted with the sufficient information and offerings and thus the rebranding and marketing campaigns are essential for the company. The company has tried to introduce the fitness and health option as a lifestyle factor to the consumers and thus they have tried to give the better look and feel for the brands.

Marketing Mix strategy:

The marketing mix strategy is comprised of different marketing variables like product, price, promotion, place, process, people and physical evidence (Armstrong et al., 2012). These aspects are to be properly advised and developed within the business segment and those are to be properly executed within the marketing objectives. There are different products and services which are offered by the company Fitness First.


The most intrigued product of the company is the service towards the consumers and those are related to the health and fitness activities within the consumers. There are fitness clubs been introduced and those are the main products of the company (Chen et al., 2010). Apart from that, yoga and lifestyle classes are integrated within the products also.


The company has tried to reach the people by considerable pricing but also had tried to maintain the service quality and quantity with the higher pricing solution. The pricing strategies are to be varied with the different aspects of company’s objectives (Thompson, 2014).


The place is the physical place where the product or service is to be considered. In this aspect, the Fitness First has tried to open the clubs in the professional and high end regions where the selected target groups can easily reach. Also the company is present in more than 15 countries and thus there is sufficient presence of the Fitness First in different aspects.


The promotion is a bigger attribute and Fitness First has accumulated with different promotional activities within the company’s services. The company has tried to integrate with the social and digital media for consideration of the digital aspects and those are intrigued within the promotions (Buhler and Nufer, 2012). The Fitness First also have rebranding strategy and thus the logo, design and the objectives are changed and those are incorporated within the promotions. The company is also a partner to the Olympic and other big events which gave them the promotional sustainability.


The process consists of different ways and frameworks to consider with the service offered by the Fitness First. The processes are considered to the making awareness to the consumers to providing them with good services as per the requirement in health and fitness.


The people are the employees and the trainers who are considered with the services to be approved and delivered within the Fitness First (Wenjuan, 2012). The people are to be knowledgeable and experienced enough to understand the different objectives and then to consider the proper services for the consumers.

Physical evidence:

Physical evidence is mainly the attribute of the services and the products which are targeted and delivered to the consumers with the proper attention to the various fitness and health concerns. The types and features of the instrumented are to be executed and maintained properly for the physical evidences integrated.


The company Fitness First has been present in the fitness and sport market and the company has been trying to integrate and implement the lifestyle segment within the proper products and services developed. In this aspect, the company has also acquired and attained with other fitness clubs. The company has tried to emphasize on the tangible and intangible assets and there are scope to introduce more customized services to the consumers. The company is especially considering the high end consumers and the clubs are opened at the particular regions with the segmented consumers present (Thompson, 2014). There can be scope for expansion also if the company is more intrigued with the mass market and can be diversified with the fitness and health attributes to the mass market consumers.


It can be concluded from the above discussed report that the company Fitness First has been present in the fitness and lifestyle segment market and it has been properly analysed with the business proposition and objectives (Murata, 2011). The company Fitness First has been thoroughly intrigued within the fitness classes and clubs and those are oriented towards the segmented market. As per the present business scenario, the market objectives and market orientation are also reconsidered and the company Fitness First has obtained the changed branding and marketing policies (Thompson, 2014). Thus there are proper objectives and business orientations to be framed based on the different theoretical framework and those are responsible for making the Fitness First as the most successful health club.



Armstrong, G., Kotler, P., Harker, M., & Brennan, R.(2012) Marketing : An Introduction. Pearson Prentice-Hall, London, London

Buhler, A., & Nufer, G. (2012). Relationship marketing in sports. Routledge.

Chen, H. D., Chao, F. X., Chen, H. J., Pan, L., & Li, D. M. (2010). A Study on the Managing Strategy on Large Commercial Fit Clubs in China [J]. Journal of Beijing Sport University, 10, 009.

Dunn, A. L., Buller, D. B., Dearing, J. W., Cutter, G., Guerra, M., Wilcox, S., & Bettinghaus, E. P. (2012). Adopting an evidence-based lifestyle physical activity program: dissemination study design and methods. Translational behavioral medicine, 2(2), 199-208., (2015). Company background. [online] Available at: [Accessed 12 Jan. 2015].

Grant, R. M. (2010). Contemporary strategy analysis and cases: text and cases. John Wiley & Sons.

Hui, W. A. N. G. (2011). An analysis of the profit patterns of our country fitness clubs [J]. Liaoning Sport Science and Technology, 1, 006.

Kapferer, J. N. (2012). The new strategic brand management: Advanced insights and strategic thinking. Kogan Page Publishers.

Liu, G. F., & Nie, L. (2011). Research on the Influence of Brand Image on Customer Loyalty in Fitness Club. Journal of Beijing Sport University, 10, 007.

Murata, H. (2011). The Business of Aging: Ten Successful Strategies for a Diverse Market. In The Silver Market Phenomenon (pp. 279-294). Springer Berlin Heidelberg.

Perreault, W. D., Cannon, J. P., & McCarthy, E. J. (2011). Basic marketing: A marketing strategy planning approach. McGraw-Hill Irwin.

Surujlal, J., & Dhurup, M. (2012). Establishing and maintaining customer relationships in commercial health and fitness centers in South Africa. International Journal of Trade, Economics and Finance, 3(1), 14-18.

Teece, D. J. (2010). Business models, business strategy and innovation. Long range planning, 43(2), 172-194.

Thompson, W. R. (2014). Worldwide survey of fitness trends for 2015: what’s driving the market. ACSM's Health & Fitness Journal, 18(6), 8-17.

Wenjuan, L. R. N. (2012). On the Study of Information Demand of Consumers in Fitness Club——Perspective from Purchase Experience and Product Knowledge [J]. Journal of Capital Normal University (Natural Science Edition), 1,016.

XU, J., & WANG, Z. R. (2010). Study on America Sports Fitness Service Industry Development and the Enlightenments [J]. Journal of Nanjing Institute of Physical Education

(Social Science), 5, 023.

Yi, D. U. (2011). Our Country's Sports Fitness Clubs Business Ideas Based on 4C Marketing Theory [J]. Journal of Hebei Institute of Physical Education, 5, 007.


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