Achieving differentiation in the fitness industry

Sarah Stowe

Expansion remains a key focus for Anytime Fitness Australia, and the brand has a renewed focus on raising its profile on both a local and national scale as a means of staying ahead of the pack.  

Anytime recently opened its 350th club, and co-founder Jacinta McDonell-Jimenez told Franchising it’s likely another 50 will open in 2014. 

“It looks like we’ll end up with 400 stores by the end of the year, and we will definitely have some organic growth next year – I expect us to potentially open another 50 sites in 2015,” she says.

The brand has established a rather pervasive presence in the six years that it’s been in operation within Australia, and additional sites will be determined based on need.

“Now it’s really about trying to strategically fill in the spaces where our members are probably travelling too far to get to one of our clubs.

“Our brand is really about accessibility for our members, so we want to make sure that we are in a convenient location no matter where they live or work,” she adds

SUCCESS IN NUMBERS

Despite the growth of the 24/7 fitness model in Australia, McDonell-Jimenez says both the business and individual clubs are performing positively.

“The clubs are all doing really well, they are still growing year on year and we haven’t had any unsuccessful clubs – we haven’t had any closures which is great.”

There’s been a 10 percent growth in clubs opening over the past 12 months, meanwhile total member numbers across the network have increased by 39 percent.

Individual club member numbers are also up, increasing by 27 percent over the same period, and McDonell-Jimenez says existing franchisees are also eager to snap up additional sites. 

“Franchisees are getting stronger and stronger in our multi-site ownership, which is a positive trend, and our yield is increasing as well, so the revenue per club is going up.”

DIFFERENTIATION

Anytime’s marketing strategy very much revolves around cementing the brand as the industry’s top player.

“We are really consolidating on being the largest group of clubs and really trying to be seen as the number one brand within the fitness industry.

“I think there’s been a real shift with that over the last six to 12 months with people really starting to recognise our clubs, or they might have a friend who is a member. Our marketing strategy is about really trying to capitalise on that strength – the strength of numbers,” McDonell-Jimenez (pictured below) explains.

Raising the profile of the brand, both on a local scale through individual franchisees, as well as a national perspective is also key. 

“We want all of our franchisees to be known and respected in their community for being more than just a good gym, so it’s important that they support local community events.

“That’s a real focus of ours, we place emphasis on the local events that our franchisees are running and we are looking towards national events, which has started with the work I am doing with The Hunger Project.”

EVERY BUSINESS NEEDS A STORY 

Looking to franchise your concept or open a new franchised business? McDonell-Jimenez suggests you ask yourself whether there’s actually a need for the business.

“I think there needs to be a genuine desire from the consumer for the busines. You need to really build on that and look at why the business is different, and it’s not necessarily about the fact that, for example, its products are 10 percent cheaper than another business.”

She advises people ask themselves the following:

  • What is the personality behind the business?
  • What does the business stand for?
  • What is different about the business?
  • Why should the consumer even care what I am doing?

“I think that’s what consumers are really starting to want to know before they get involved with a business or brand, they don’t just buy products for the sake of buying products anymore, they want to know more about the people behind the brand and what the brand really stands for, so my advice would be to have a really strong story around your brand,” she says.

“There needs to be a compelling story as to why they would buy your products over someone else’s, and it can’t just be that it looks a little bit prettier, because people are looking for more than that.”