A Question of Perspective?
The analogy of the full glass perspective can be applied to the fitness industry. On the one hand we can say that the fitness industry has huge potential - so far we have attracted just under 12%* of the population as members of fitness facilities and therefore there is a huge untapped market just waiting to be enticed into fitness. This untapped market is not, however, homogenous and different approaches are needed to reach the elusive ones.
Segmenting markets is a means of understanding and targeting new and existing consumer groups and Mosaic is a user friendly demographic system that segments consumers into 11 groups and 61 richly defined types.
Who are UK Fitness Consumers?
The third National Audit of Fitness Consumers has profiled live fitness members from 856 UK gyms, using the Mosaic demographic system, to paint a national picture of who is and, by implication, who isn’t yet participating in fitness.
The findings from the recent National Audit has revealed that operators are starting to attract members from a range of social backgrounds, with, not surprisingly, public fitness facilities attracting more of their membership from a broader social range. The most prominent types of people who use a fitness gym are: ‘Original Suburbs’, ‘City Adventurers’ and ‘Counter Cultural Mix’. These 3 types alone (out of a total of 61) account for over 11% of gym members. Perhaps not surprisingly, there are significant differences between the types of people that use private gyms compared to those using public sector gyms.
Prominent Types of Private Health Club Members
‘City Adventurers’ is the most prominent Mosaic type, accounting for the largest proportion of private health club members. This type generates 5% of members, whilst only representing 1.4% of the UK population as a whole. Private health clubs are very successful at attracting these types of people, much more so than public fitness facilities which attract 2% of its members from this type – this is, however, still greater than the UK population of 1.4%.
‘City Adventurers’ tend to be young high flyers living in city centre locations and earning high salaries. Typically these people are aged 25-34 years, they are not married, are in good health and live in city flats. The majority also have degree level qualifications.
The second most dominant type amongst private health club members is C19 (Original Suburbs), which accounts for 4.5% of members. This type is also the fourth most prevalent type within the public sector, generating 3.6% of members, so a good ‘overall’ type for fitness. This type makes up just 2.6% of the UK population so it’s over-represented within the both public and private sectors. This type generally comprises middle aged families with children of school age. They are generally 35-44 years old, live in semi-detached properties in suburban locations and have high household incomes.
Financial Models Used to Describe Fitness Members
9.4% of private health club members can also be classified, using Experian’s financial strategies model, as ‘Up & Coming Elite’. This describes young, single, wealthy people who live in fashionable areas of major metropolitan cities such as London and Edinburgh. They rent high-value flats either on their own or sharing with a partner or friends. Many have recently graduated, some having gained masters or doctorates, and have now landed well-paid, professional jobs.
Many are still paying off student debts but their high disposable income means they like to enjoy expensive pleasures in life such as fine food and wine, designer clothes, the latest electronic gadgets or tailor-made trips abroad. They are prepared to go overdrawn to maintain this lifestyle and credit card usage is also extensive.
As they spend a lot of time at work and socialising with friends their preferred channel for managing finances is broadband Internet, where they appreciate the convenience with which they can open accounts, buy stocks and shares, or check on any investments. In addition, they also like the ease of conducting their financial affairs over the telephone and so are frequent users of telephone banking services. Just 2.02% of the UK population fall within this type, but it’s very over-represented within private health clubs, accounting for 9.4% of members.
8.3% of private health club members and 6.7% of public gym members are classified as ‘Looking to the Future’ types. These are generally young people who live mainly in rented accommodation, some council assisted. Many work in professional occupations, although there are some who are self-employed and run their own businesses. Unemployment can sometimes be an issue. Most live with partners or share accommodation, and some families have young children.
People classified as ‘Looking to the Future’ have an optimistic outlook and are comfortable using one of their credit cards to finance holidays or lead a full and active social life. However money problems can occur, resulting in overdrafts or the occasional incidence of a CCJ.
The youth of this Type, along with their interest in the latest technology means the number of households with broadband is high, and it is used for on-line banking as well as leisure.
Prominent Types of Public Sector Gym Members
In many cases, people who use public fitness facilities are vastly different from the private clubs. The most common types of people using public fitness facilities are ‘Industrial Grit’, ‘Low Horizons’ and ‘Sprawling Subtopia’.
4% of public fitness members are classified by the type ‘Industrial Grit’. They are characterised as self sufficient families traditionally reliant on industrial employment, living in older terraced and semi-detached housing. People from this type tend to be full nested families with strong family focus and modest incomes. They are regular TV watchers and football match supporters.
3.7% of public fitness membership comes from the ‘Low Horizon’ type. These people generally rely on councils for housing and transport and few people have bought their own homes. They tend to be families with school age children on low incomes. This type makes up 2.6% of the UK population and public fitness facilities are having good success in attracting this type. This can only be a good thing as generally, this type is often in poor health.
‘Sprawling Subtopia’, again accounting for 3.7% of public gym members, are characterised as middle aged, middle income, owner occupiers living in semi-detached housing. Generally aged 45-59, they have dependent children and are in good health. 3.1% of the whole UK population is from this type, so it is over-represented when it comes to fitness.
The National Audit of Fitness Consumers also highlights that public fitness facilities attract a higher percentage of their membership from a closer proximity to their centre than private health clubs. The findings show that 69% of public members live within 2 miles of their gym facility compared with 54% of private members living within 2 miles of their club. If we extend this to 3 miles, public gyms attract 81% of their members from this area, compared to 73% of members at private clubs.
Making Fitness Attractive to Other People
To make fitness attractive across a broader market, fresh approaches are needed within the marketing mix: new delivery mechanisms, different pricing, varying services and the appropriate communication depending on the market segment targeted.
Clubs are very good at targeting the affluent, the professionals, the young, the well-off and the economically successful families. But there are other consumer segments to go for.
Looking at other industries, we can see how invention has extended either their product lifecycle or their market reach.
Insurance companies have had to follow Direct Line’s lead away from traditional delivery into direct and internet channels as a means of meeting customer needs for lower costs. Have clubs fully explored online memberships?
Some would-be consumers of fitness are put off by price. However, with different delivery mechanisms, could health club memberships be offered at more affordable rates with less frills? Could clubs offer fitness advice and opportunities outside the club at lower fees and where groups are naturally congregating?
Retail giants like Tesco have dominated by extending their products into convenience services such as home delivery. How are clubs considering offering more convenience to attract new members or retain existing members?
Marks and Spencer’s sustainability strategy ‘no plan B’ will be one to watch as it sets itself tough targets to adapt to a changing world. This consumer issue has not hit our industry fully yet and therefore it’s an opportunity to be grasped!
The boutique hotel sector is an interesting example to study to see how their re-invention in the heavily branded hotel industry has led to better performance than their brand competitors in the key performance indicators of occupancy and RevPAR (according to PKF Consulting). Clear positioning, marketing to the individual and offering outstanding service have led to better profit margins and therefore a rewarding model to follow.
There is no one solution to the untapped opportunity to convert non fitness enthusiasts. Using the National Audit’s findings, however, will reveal other segments of the UK population that could be ripe for fitness.
Be Smart – Use Intelligence!
Smart businesses use available intelligence to understand and stay ahead of the market. The offer of free intelligence is therefore something to be grasped with both hands. The Leisure Database Company will be offering a free group Mosaic profile report again in the future, so be smart and get involved.
* 2008 FIA State of the Fitness Industry Official Figures
