Competitive Landscape: Gym Market

Part
01
of four
Part
01

Competitive Landscape: LA Fitness, Life Time Fitness, 24 Hour Fitness

As indicated in the spreadsheet, LA Fitness currently has 705 fitness clubs, Life Time Fitness currently has 129 clubs, and 24 Hour Fitness has 430 clubs all around the US. LA Fitness and Life Time Fitness both targets individuals and families of all ages, while 24-Hour Fitness primarily targets women aged 25-54 years old, and men 25-54 years old.

COMPETITIVE LANDSCAPE: LA FITNESS, LIFE TIME FITNESS, 24 HOUR FITNESS

1) LA Fitness

A) Company Overview

  • LA Fitness is an American fitness club chain which was founded in Southern California in 1984.
  • LA Fitness currently has over 10,000+ employees all around the US.
  • LA Fitness continues to increase and expand their state-of-the-art clubs around the US continent in order to focus on the "one lifelong benefit valued by everyone: good health."

B) Number of U.S. locations

C) Pricing

D) Competitive advantage

  • LA Fitness set themselves apart from other competitors by providing additional services such as racquetball courts, full sized basketball courts, a variety of fitness classes, sports leagues, and several other amenities, aside from their usual gym amenities, in every club in the US.
  • Diversity of their locations so that every LA Fitness locations are accessible for everyone.
  • Their appeal to many age groups, from children as young as 12 year old to senior groups with their SilverSneakers program.

E) Target audience

  • LA Fitness, together with their wide range of amenities and trained staffs, gives multiple number of workout services and options to family members of all ages and interests.

2) Life Time Fitness

A) Company Overview

  • Life Time is a privately held comprehensive health and lifestyle company, which was founded in 1992 in Brooklyn Park, Minnesota, by CEO, Chairman and President Bahram Akradi.
  • Life Time currently has 32,000 employees, and 10,500+ fitness professionals/coaches in the US.
  • Life Time is committed to a health and happy life for their members by providing unparalleled athletic lifestyle resorts that go beyond fitness.

B) Number of U.S. locations

C) Pricing

  • Standard: $29 Joining Fees, which includes standard enrollment, onboarding session, and 1 month of group swim lessons for kids.
  • Stronger Together Bundle: Up to $380 of enrollment value, which includes onboarding session, 1 month of group swim lessons for kids, one personal training session, and 150 LT BUCK$.

D) Competitive advantage

  • Life Time Fitness' competitive advantage are their focus on services, amenities, and value, and their comprehensive product offerings, which helps them have top position in the health and wellness industry.

E) Target audience

  • The target audiences of Life Time Fitness are individuals, couples and families of all ages.

3) 24-Hour Fitness

A) Company Overview

  • 24-Hour Fitness is a health, wellness, and fitness company based in San Ramon, California, and founded in 1983.
  • 24-Hour Fitness is a leading fitness industry pioneer with about 4 million members and more than 11,000 employees all around the US.
  • Their mission is to help people all around the US improve their lives through fitness.

B) Number of U.S. locations

C) Pricing

  • Pricing varies depending on locations, access level, and payment plan chosen.
  • Access levels are Multiple Clubs and One Club only.
  • Payment plans are Basic Monthly Payment Plan, Commitment Monthly Payment Plan, and Limited Term Prepaid.
  • In addition to monthly dues, members will be charged an annual fee worth $49.99.

D) Competitive advantage

  • One of the competitive advantage of 24 Hour Fitness against its competitors is their diversity. They treat team members, guests, members, and all people with respect, fairness, and dignity, which then leads to the attraction of the best talents and members from the broadest range of people.

E) Target audience

  • The primary target audience for 24 Hour Fitness are women aged 25-54 years old, with secondary focus on male prospects aged 25-54 years old.
Part
02
of four
Part
02

Competitive Landscape: Anytime Fitness, Equinox

Anytime Fitness and Equinox are only similar insofar as they both offer fitness. However, for the most part they are different. Anytime Fitness is a franchise fitness company while Equinox is a full service luxury and fitness sports center Their offerings are different as Equinox offers luxury services that Anytime does not. These are but a few of our findings, please see the attached spreadsheet rows 2 – 7 and columns F and G.

ANYTIME FITNESS

Company Overview

Number of U.S. locations and Pricing

Competitive advantage and Target Audience

EQUINOX

Company Overview

Number of U.S. locations and Pricing

Competitive advantage and Target Audience

  • Equiox Fitness offers a variety of services to include pilates, spa, personal training, classes, magazine, shop and hotel. Since there is this variety, members benefit from discounts on spa services and the shop, complimentary personal training, fitness assessment and pilates sessions.
  • In addition, members have access to cold towels, saunas, steam rooms, various kinds of products, filtered water, complimentary coat check, locker rental, and laundry service plus unlimited classes already included in the membership fee, a kids club, and access to exclusive events.
  • They are positioned as a lifestyle brand designed for persons seeking after improved lifestyles.
  • They target both males and females with a type-A personality who are pursuing improved fitness.
  • This includes people aiming for a life of high performance.

RESEARCH STRATEGY

Our research team used a combination of approaches to complete this competitive analysis of Anytime Fitness and Equinox Fitness. Among the sources used were industry reports, official company websites and databases such as Bloomberg, Craft and Crunchbase. Since pricing was not found on the website of Equinox, that information was sought and found on customer review sites. One site that especially helpful in that regard was Best Company. Overall, the information was found and can be viewed on the attached spreadsheet.
Part
03
of four
Part
03

Competitive Landscape: Planet Fitness, Orange Theory

In 2019, Planet Fitness has more than 1,800 gyms in the United States, while Orangetheory Fitness has about 1,000 gym studios. Details on these two companies have been provided in columns H-I of the attached spreadsheet. Below are some findings.

PLANET FITNESS

  • Founded in Dover, NH, in 1992, Planet Fitness' mission is to enhance people's lives by providing a high-quality fitness experience.
  • Independent businessmen or women own more than 95% of its stores.
  • The gym, founded by Michael Grondahl, implemented a low-cost business model by reducing the price.
  • It aims to establish 4,000 stores nationwide.

ORANGETHEORY FiTNESS

  • "Orangetheory is a science-backed, technology-tracked, coach-inspired group workout designed to produce results from the inside out."
  • It is one of the world's fastest-growing franchise companies, based in the US (over 700 locations in the US).
  • The physiologist, Ellen Latham designed this interval-based workout franchise.
  • Its primary target audience includes women around the age of 35 and men aged 36, earning between $80,000 and $100,000 annually. However, it recently found that it got younger audiences comprising 18 to 25-year-old women and men.
Part
04
of four
Part
04

Case Studies: New Gym Growth

Tapout Fitness was established in 2014. In 2019, Tapout Fitness has expanded to 25 locations across the US.

TAPOUT FITNESS

COMPETITIVE ADVANTAGE
EVIDENCE OF GROWTH
GROWTH FACTORS
  • Tapout Fitness is advertising and powering its popularity by hosting WWE Superstars such as Summer Rae, Natalya, among others. It has celebrity trainer and fitness instructors such as Amy Dixon in its chest.
  • The gym is the official fitness and training partner of WWE.

FITNESS 1440

  • Fitness 1440 is one of the unique gyms, which provide access through a variety of training sessions, providing stress-free ambiance with collaborated theater during workouts, and offers sauna after workouts. The gym also offers scheduled areas for meditation and Zumba programs.
  • Fitness 1440 was established in 2011.
COMPETITIVE ADVANTAGE:
  • Fitness 1440 has competitive features like personal training, group exercise, sauna, private boot camp, yoga and age-wise programs such as kids fitness, silver sneakers, ladies x, among others.
EVIDENCE OF GROWTH
GROWTH FACTORS
  • Fitness 1440 is partnering with several companies like Lynx Services, to expand its membership base.
  • The fitness center is boosting its goodwill by partnering with Sweet Angel, which donates whenever a member checks-in to the local Fitness 1440 gym's Facebook page.

RESEARCH STRATEGY

Initially, we searched for lists of new big-box gyms which are not large, nonexclusive boutique studios, and long-established gyms in the US and which are not mentioned in the request. We located several articles and reports listing top and best big-box gyms, such as Franchise Direct, the Active Times, Greatest, Men's Journal, among others. Through these sources, we located either huge gym chains or boutique studious, but not specific big-box gyms.

After deep-diving into multiple gyms across various gym databases and listings, we locate two gyms - Tapout Fitness and Fitness 1440, after expanding scope unto eight years of establishment since most of the gyms quoted themselves as 10-20-year experienced establishments in our research. Details on the number of members were not quoted publicly by most of the gyms, so the growth was determined based on their statistics of location expansion from the year of establishment as evidence of growth.
Sources
Sources

From Part 03
Quotes
  • "Planet Fitness was founded in 1992, in Dover, NH. In the beginning, it operated much like every other gym in its small hometown and catered to the same small percentage of the population in the U.S. who worked out and belonged to a health club."
Quotes
  • "Planet Fitness also announced today that it reached its 1,500th location with the opening of its club in Durham, North Carolina on December 28, one of several clubs to open the last week of December ahead of the New Year. The Company has over 10.5 million members and also recently announced its expansion into Panama, with existing international locations in Canada and the Dominican Republic."
Quotes
  • "Planet Fitness offers two types of membership: the $10 or Black Card membership. The $10 membership is the basic package without many perks beyond unlimited access to that particular gym. The Black Card Membership costs $21.99/month."
Quotes
  • "Planet Fitness has 12.2 million members worldwide and aims to “cement its position as the largest and most accessible high-value, low-cost fitness option in the market,” plus target the current 80 percent of the U.S. population that is without a gym membership, according to the statement."
Quotes
  • "Orangetheory is a science-backed, technology-tracked, coach-inspired group workout designed to produce results from the inside out. The hardest part of our workouts is showing up - we make it simple for you to push yourself, be your personal best and give you more. MORE results. MORE confidence. MORE Life. More than a gym. Because you shouldn’t live to exercise. You should exercise to live. "
Quotes
  • "How many locations — and members — does the company have in the U.S.? Are they all franchised-owned? We currently have 901 locations [for a total of more than 1,000 worldwide] and over 700,000 members. Of our locations, 877 of are franchised-owned."
Quotes
  • "Membership rates vary depending on where you live. We talked to Orangetheory, and they told us there's a range of membership packages to choose from, from Basic (4 classes for $59/month) to Elite (8 classes for $99/month) to Premier (unlimited classes for $159/month). "
Quotes
  • "For example, Orangetheory believed its main target audience was women around the age of 35 who made an annual income between $80,000 to $100,000. Its smaller target was 36-year-old men who made a similar income. However, in the past two months, Orangetheory found it has more of a following among younger audiences, specifically 18- to 25-year-old women and men. "
Quotes
  • "The gym chain has been on a growth streak in recent years. It has more than 1,800 gyms in the United States, an uptick of about 60% compared to three years ago. Planet Fitness says it has the potential to reach 4,000 nationwide in the long run."
Quotes
  • "Orangetheory, another HIIT franchise with roughly 1,000 US locations, also uses video screens to remind users of routines and exercises."
From Part 04
Quotes
  • "Our founder launched FITNESS:1440™ in 2011, on the premise of giving more than we take. FITNESS:1440™ exists to provide the resources, insights, and support you need to feel your best."
Quotes
  • "Set to open this fall, San Angelo’s Fitness 1440 will be the sixth in Texas, with 41 locations nationwide. "
Quotes
  • "Fitness 1440 is doing corporate fitness programs with other companies over the years. Every week, Decuicies and Steven Polyshyn of Lynx have been meeting or holding conference calls weekly in preparation for this event."
Quotes
  • "At FITNESS:1440™, we want to support your community and fund the causes you believe in. Let us know how we can commit to changing your world. "
  • "Through our partnership with Sweat Angels, every gym member has the opportunity to make a difference in the world. Each time you check-in to your local gym’s Facebook page, Sweat Angels makes a donation to a great cause."
Quotes
  • "Founded in 2014, Tapout Fitness is part of the Tapout brand family. Tapout is owned and operated by two powerhouse brands;"
  • "Currently, we have more than 25 locations in development in the United States, and will have more than 500 domestically and internationally over the next 5 years."
  • "Larger studios have a full range of cardio and free weight equipment members can use any time. "
  • "Tapout Fitness branded boxing, kickboxing, boot camp and high intensity interval training (HIIT) classes, which are complemented by some of today’s hottest group fitness programming."
  • "Some clubs are even open 24 hours a day, so members will never miss a workout."
Quotes
  • "Tapout is WWE’s official fitness and training partner, so this gives Tapout Fitness built-in credibility, extended reach and exposure,” CEO Ben Crosbie says."
  • "The Tapout brand is a joint ownership by Authentic Brands Group (ABG) and World Wresting Entertainment (WWE), which provides Tapout Fitness with access to extraordinary brand marketing and assets. "
  • "Tapout Fitness hosted a grand opening workout event with WWE Superstars Alicia Fox, Lana, Summer Rae, Natalya, Alexa Bliss and Naomi, E! News host Maria Menounos and in collaboration with Amy Dixon, celebrity trainer and fitness instructor"
  • "Tapout Fitness also offers a “conversion box model” for gyms that have generic programming and are struggling in the face of increasing competition. “This already includes two Manhattan clubs, a 26,000 square foot and 44,000 square foot location,” Crosbie continues. "
  • "Tapout Fitness plans to add more than 14 locations to its brand in 2017"
Quotes
  • ""Tapout is aggressively growing its Texas footprint, targeting 15-20 Houston market locations, as well as concurrently expanding into the Dallas market.""
  • "Tapout's new 5,314-square-foot Houston location, on the north east corner of Rayford Road and Birnham Woods Drive, includes areas for proprietary Tapout branded classes, state-of-the-art strength and cardio equipment, as well as lockers, showers and changing rooms and a merchandise/retail space."
  • "Tapout Fitness is excited to establish its first location in the market and bring its branded fitness studios to Houston; studios offer proprietary high intensity interval training (HIIT) classes with movements inspired by boxing, kickboxing and other martial arts,""
Quotes
  • "Currently, the gym has around 1,000 members, who pay roughly $29 per month. Membership specials for the grand opening will likely offer dropping the membership fee."
  • "Fitness 1440 has 29 locations nationwide and is always looking to expand."