Readers have come to value the physical book – unless it’s one they don’t want to be seen holding


exactly the same thing, only better and often cheaper. Television can’t do everything that radio can. Readers have come to value the physical book, unless perhaps it’s one they don’t want to be seen holding on their commute. There’s something special about holding a vinyl LP. Benefi ts that ensure survival and


growth can be emotional or functional. Unless it’s a direct replacement, price is only one element of the marketing mix – and this is as true for the gym market as it is for every other one.


EFFECTIVE SEGMENTATION In fact, the mid-market is a pretty good place to be – if you get it right. It’s clear at the moment that low-cost offerings are popular, but these tend to thrive when times are hard and incumbents have taken their eye off the ball: while Aldi and Lidl are currently driving the grocery market, a key reason for this is that the mainstream mid-market operators were complacent. They failed to give their customers good reasons to keep using them, and they failed to spot significant changes in shopping behaviour.


June 2015 © Cybertrek 2015 There’s almost certainly going to be


consolidation before things turn around, but it would be a brave pundit who forecasts the death of the grocery mid- market. The leading players have woken up and are reviewing, re-confi guring and re-presenting themselves so they have a distinct positioning in the new landscape. Sound familiar? So how does a mid-market gym


operator get it right? We’re constantly told we need to differentiate, to create a clear space that’s easily understood, and to stick to it. We can – and should – do this by understanding the neighbourhood where the gym sits, by listening to members (not forgetting leavers, to understand why they didn’t want to stay), by understanding their emotional as well as their physical needs, and by investing in the right equipment, facilities and staff. And by charging the right price for that differentiated offer. There’s only point in differentiating


if it’s in ways that are meaningful to the customer. A large pub company I know which has 750 pubs does this successfully. It has six core brands,


ranging from gastro pubs through traditional locals, city centre and sports pubs to family-orientated offers where provision is made for the kids to let off steam. Each pub is assigned to a brand according to the location, what the customers there want, and what they’re most likely to buy. Customers in all markets are


driven by a range of factors which – depending on the individual member’s characteristics – are ‘dialled up or down’. We all know the person who’s driven by value, or convenience, or personal service and so on. Price is obviously another of these factors, but with gyms, other factors are likely to include staff numbers, staff attentiveness and expertise, sophistication of equipment, amount and range of equipment, size of premises, facilities, classes, information, support, ‘extra curricular’ activities and changing facilities (size, style etc). Some of these will be hygiene factors


– what you have to offer just to get into the consideration set – and some will be real differentiators. An effective segmentation will let you determine


Read Health Club Management online at healthclubmanagement.co.uk/digital 47


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