Consulting Planet Fitness
I explored Planet Fitness' strategic issues, provided a recommendation & ways in which they should be implemented. Click here to read a paper
analysis to support the recommendations.
Current Standing
1992
2004
2014
2015
2020
2022
Founded in Dover, NH
Sponsored NBC'S "Biggest Loser"
Opened international locations
IPO'd
COVID pandemic pushed them back
Influx of membership sign-ups in 2nd quarter
Strategic Issues
1. Slowdown in new store developments and remodels, and lower equipment replacement sales
2. Losing volume from general consumer demand
Recommendation
Reach a new market & enhance current value-creating activities
Implementation #1
Why Acquire The Gym Group?
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The Gym Group has 56.3M members, 19 M&A deals, and 63,173 clubs resulting in favorable marketing conditions.
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Their precedent transactions resulted in a $350M deal acquired by PureGym (2019) & a 100M deal acquired by RSG Group.
The Gym Group has
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226 locations in the U.K.
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Mission is to break down barriers to fitness
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Memberships start at $10.32/mo
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High-spec equipment, exercise classes, and tech
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What Are The Synergies With Acquisition?
1. Lower Costs
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Similar product offering
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Achieve higher economies of scale
2. Access to Markets and Customers
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200+ sites
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810,000 members
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Seasoned European leaders
3. Negotiating Leverage Over Suppliers
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Similar equipment
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Larger orders
Implementation #2
Reducing low margin amenities to maintain low membership prices
and increase bottom line
Increasing profits by limiting operating overheads such as unnecessary perks
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Tanning beds
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Massage chairs
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HydroMassage beds
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Total Body Enhancement Equipment
Offering more amenities to Black Card Memberships
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Coupons/Discounts
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Lululemon
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Nike
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Adidas
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Referral Sweepstakes - Benefits both the company and consumer
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Black Card members who joined through referral will be able to enter a bi-annual sweepstakes to win a gift card from one of the companies above
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