Getting a business ready to sell
Fitness Edge, was a locally owned exercise facility specializing in fitness classes and personal training. Opened in 2000, they offered individual, family, and senior memberships. Beginning in 2008, membership began a steady decline of 8 – 14% per year. Membership hit an all time low in January 2013. The average membership for the first six months of 2013 was down 20.5% from the previous period.
Competition from the other two exercise facilities, along with weak brand awareness, was taking its toll. After researching past promotions and the competitive landscape, we encouraged Fitness Edge to lower their monthly membership price by $10 effective January 2013.
The objective of the campaign was to increase the client’s brand awareness and boost the number of people inquiring about the gym as well as the number of people opening new memberships. The campaign targeted men and women between the ages of 13 and 75 in Lowell, Indiana. The client offered classes and programs specifically targeted to teens and seniors, as well as more typical programs.
Our strategy was to catch the attention of the New Years resolution market with an eye-catching, but welcoming promotion. We created a double sided, full color, insert that was distributed to subscribers of the regional newspaper. It was also mailed to non-subscribers in a weekly, abbreviated print edition. The insert debuted in mid January to catch the attention of the New Years resolution crowd. We followed up by distributing the insert again in early March and mid May to keep the campaign momentum going. Each publication of the insert had the same look and feel, but highlighted a different key feature of Fitness Edge.
We complimented the inserts by using outdoor advertising with the same look and feel to build brand awareness. We utilized a billboard program that rotated our campaign between four strategically placed regional billboards.
The results that led to stabilization
F rom the campaign, monthly membership inquires jumped from 1-2 people per month to 8 people per month.
For the first six months of 2013, there were 63 new memberships on average each month. That was an increase of 32% from the previous year.
The campaign also increased revenue 6.2% for the first six months compared to the previous year.
Fitness Edge was thrilled with the strong increase in revenue, especially after lowering their monthly price to remain competitive.
Keys to Success
- Adjusting pricing to compete with current market conditions
- Creating customized, consistent advertising
- Repetition, repetition, repetition
- Doing the market research to understand the growth potential