Brand Health Check: Gyms

Much like the hardened smoker who makes an annual rash and drunken vow to quit the evil weed in the new year, for many pledged gym-goers, the thought remains just that, and they continue to lead the life of a sloth-like sybarite.

What must be more worrying for the gym chains, however, is the evidence suggesting that those who already hold memberships, which can cost upwards of £700 a year, are planning to cancel them.

Research by price-comparison site moneysupermarket.com shows that gym membership is a luxury for which consumers are not willing to pay in 2009. Its findings showed that 14% of gym members are lapsed users who admit to rarely going to the gym and are therefore planning to cancel their memberships to save money; a staggering 42% want to keep going to the gym but cannot afford it. Few expect that all respondents who fall into one of these two camps will actually cancel their memberships, however, there is little doubt that gyms are under pressure and that subscriptions will decline.

How can gyms get people through the doors? We asked Joanna Mitchell, marketing manager for Lonely Planet magazines, and Marc Nohr, managing partner, Kitcatt Nohr Alexander Shaw.

Joanna Mitchell marketing manager, Lonely Planet magazines

In the current climate, people are more concerned about saving pennies than losing pounds, so it's no wonder that fitness clubs are feeling the strain: they're expensive, stuffy and stuck in the 80s.

With my wedding fast approaching, I'm definitely watching my waistline, but it's the green gym I'll be using this New Year.  A walk in the Lake District is a lovely way to spend a winter's day.Nothing beats wrapping up in lots of layers and donning your wellies to take a bracing walk in the countryside - and it's free.

But if walking is not your thing, there are plenty of other, cheaper alternatives to the gym that are also good for your physical and mental health.

Dance classes are very much in vogue with the success of Strictly Come Dancing; what about yoga in the local village hall; or stay inside where it's warm with family and friends and play on your Nintendo Wii.

Remedy

• Fitness clubs should think more about outdoor activities, as well as more sociable classes that cost less to run. They should create a fun environment, rather than sticking to the same old 'join free' offers that are always available.
• Brands should take their lead from Nintendo, and offer consumers something different and enjoyable.
• Better value is going to be an absolute necessity across all markets to see any brands through the current difficult economic climate. People will be forced to spend their money more wisely - and brands that adapt and respond to these more-demanding consumers will be the ones that endure.

Marc Nohr managing partner, Kitcatt Nohr

Been to a gym yet this year? If so, you will know they're packed - they always are in January. But moneysupermarket.com research tells us that some gym members never go, and so will be cancelling their memberships. Nothing new there - gyms have always had attrition problems.

The same research tells us a much bigger constituency say they can't afford to go to a gym in the current climate. OK, so gyms clearly need to look at their pricing models and innovate with their product offerings.

Commentators point to the trend toward people exercising at home, or outdoors - which is, of course, a threat to conventional gyms. But it's also an opportunity for gyms to apply their imaginations to doing things differently. People show no evidence of wanting to exercise less, and demographics suggest core gym-growing groups are growing.

Plenty of people lack the motivation to exercise alone, and more generally, the social aspect of health clubs remains a key driver of demand. So, there are lots of reasons to be cheerful.

Remedy

• Stop generalising about the gym-going public. Some will never go, some will always go. Let's understand the waverers better. It's time to get real customer insight at segment level.
• Low-cost clubs may thrive, the others will need to introduce more differential pricing, including a lower basic tariff.
• Product innovation is key. Are gyms buildings that rent out their space to members, or are they selling health and fitness? Send trainers into parks, sell programmes online, introduce 'wellness' initiatives.
• Government funding for exercise is out there - gyms should get a slice.