Les Mills Situational Anaysis

Luke Richards-300311784

1. Executive summary
Les Mills is a New Zealand based and world renown gym franchise. The owner Philip Mills, has created a variety of high quality fitness facilities around New Zealand, opening the 10th and latest club in Britomart, Auckland in 2010. Les Mills is renowned for holding the title of
Worlds Best Fitness Classes and for their high standard of operations, making them one of the leading competitors in the New Zealand gym industry. The purpose of this report is to identify and target potential market segments. By reaching these specific ‘segments’, Les Mills can increase their client basis by appealing to a wider market audience.

The Situational analysis conducted for Les Mills revealed that, the New Zealand gym industry is expanding substantially from influences, such as increased health awareness and fitness craze’s including group exercise classes. These factors provide large potential for Les Mills to expand their client-basis. The analysis also provides Les Mills with an insight into their current position on the competitive scale, which shows they are the New Zealand leader in quality and standard of operations and also second to Jetts for satisfaction. Various external factors such as the political and economic environment, prove to benefit and hinder the gym industry and Les Mills. For example, government laws and regulations creating a stable market environment, or the economic downturn negatively effecting discretionary spending levels. Conducting a TOWS analysis identified, positive and negative factors of Les Mills current market strategy and position, by revealing various Threats, Opportunities, Weaknesses and
Strengths. One specific and important factor for revealing Les Mills ideal target market, is the weakness that Les Mills membership fees are relatively more expensive then other competitors in the gym industry. Based on this evidence Les Mills should target a market of high income earning adults and the baby

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