Fit ‘n’ Well Limited

Alexander McKenzie #1324023

Bill and Shirley from Fit ‘n’ Well limited wish to expand into New Zealand.

However, first of all they should consider…

Opportunities & Risks…

The Business Environment…

New Zealand has the seventh highest gym membership per capita in the world.

50 % of New Zealanders are overweight and only 10% of the population belong to or exercise at a gym

International fitness franchises such as Fitness First and Richard Brandson’s Virgin Fitness are showing interest in the New Zealand industry

The New Zealand Fitness industry is very competitive with over 175 gyms in Auckland alone

The Economic Environment…

Even though the world economy is in a recession it is expected that memberships will increase by 2.2% in 2009

New Zealand has not felt the full effects of the economic recession and things expected to get considerably worse before they get better

Many people do not go for their first work and therefore a third of members do not renew their memberships

Unemployment in New Zealand is expected to rise in 2009

The Obesity Crisis…

New Zealand has the seventh highest obesity rate in the world

Nearly twice as many New Zealand adults are over weight or obese compared to the world average

One third of the adults in New Zealand are not physically active enough to benefit their health

86% of overweight kiwis said they prefer exercise as their method of weight loss

Fit ‘n’ Well Limited should expand into New Zealand as there are opportunities, that outweigh risks, to be exploited in New Zealand.

Fit ‘n’ Well Could Capitalize On New Zealand Opportunities By…

Implementing policy's such as ’reward for you first visit’ to combat the thrid of the members that never go.

Using Les Mills group classes, thus tapping into an already strong clientele base. And associating themselves with the already high standards of Les Mills.

Charging less fees the other gyms. This can be done by charging more for the group classes.

Also a ‘money for every kilogram you loose’ policy to attract members as they feel like they are getting something back .