The model we have created is inspired by the price point and offering that has proven successful in other markets
Copenhagen – and aim to have six sites open in Denmark by the end of this year, with additional plans to franchise or partner internationally. SATS has also, separately from Ingerslev, opened three Fresh Fitness clubs in Norway.
A MEETING OF MINDS What the two parties bring to the table are investment on SATS’ part and a safe pair of hands in Ingerslev. As Johan Nilsson, strategy and concept director at SATS, explains: “SATS has the ambition to attract as many customers as possible across the market, so we need more than one concept in our portfolio. We were looking for different concepts that would bring in new population groups to SATS and were also actively looking for operators outside our own organisation that would be able to manage such a business. “Our owners were approached by
Rasmus, who was looking for investors in the online venture he had set up. That discussion ended instead with a discussion about a new budget club concept for the Danish market. As we were also working on a new budget concept for Norway at the time, we thought there was great potential to explore synergies and accelerate the pan-Nordic growth plan.”
march 2011 © cybertrek 2011 The partnership model, Nilsson says,
has several benefi ts. “The fi rst is that it’s vital, when developing a new model, that the new business is not infl uenced by the existing organisation’s view of the market and existing culture, preventing it from being innovative enough. It’s been a deliberate strategy by SATS to fi nd a partner outside our existing organisation to operate the new budget chain. “The second reason is that a joint
venture is a type of strategic partnership that gives both parties a clear role, on equal terms, to infl uence the development of the business. “The third benefi t is that we have found
a perfect management team and partner in Denmark. We have contributed with fi nancing and core competencies, while our partners have brought local market knowledge and a network, plus experience in running daily operations.”
SIZING UP THE COMPETITION
“In Denmark there are three main players,” says Ingerslev, “Fitness World, SATS and fitnessdk, with Fitness World by far the largest with more than 225,000 members – a 40 per cent market share. “Fresh Fitness is still very new to the
market and is the only very low-cost operator. We charge 17 a month,
Space maker: The gym has been designed specifi cally to create a feeling of space
while our nearest competitor, Fitness World, charges 30 a month. “The model we’ve created is inspired
by the price point and offering that has proven successful in other markets. I believe what we offer is comparable to those clubs, with adaptations for the Danish market.” It’s a long term, sustainable pricing strategy, he adds:
“Starting too high and having to cut fees later just comes across as an initial rip-off.”
WHAT’S ON OFFER Both Fresh Fitness locations were chosen for high population density: one in central Copenhagen and one in the university suburb of Amager. Both clubs measure 1,300sq m (13,990sq ft) with the capacity for anywhere between 6,500 and 9,000 members – a seemingly huge number but one made possible by clever design and based on Ingerslev’s theory that budget members attend the gym less frequently, allowing membership to be higher without overcrowding. The gyms offer as many stations in their smaller fl oorspace as many of the higher-
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