How a fitness services provider successfully increased the number of center count by 10 and achieved market leadership in Organized Fitness segment

Background and Challenge
Client’s Background:
  • The largest Sports and Fitness Club in the Middle East with around 15 years of experience in Fitness industry throughout Saudi Arabia and a network of 140 branches, offering a unique product through brand fitness time.
Challenges Faced by Client:
  • Challenges in accessing Market Assessment: The client wanted to undertake the comprehensive market assessment and identified a list of organized and unorganized fitness service centers in KSA. Hence, they contacted Ken Research and Strategy Advisory to execute the exercise for them.
  • Difficulties in Curating a Industry Report : In addition, The client needed assistance on wanted to understand Potential in KSA fitness Services market with understanding detailed assessment on market size, classification by Target Audience, segment and consumer profiles, hence they outsourced this activity to Ken Research.
Fitness Service Industry at Glance:
  • The rising number of health clubs and gyms with personal training and the latest fitness equipment is attracting consumers to health and fitness clubs.
  • As part of the Vision 2030 plans, the Saudi Government launched the National Transformation Plan, which aims on encouraging the health and wellness among individuals in the country and advancing the number of physically active individuals in the Kingdom, from 13% to 40% by 2030.

Approach and Recommendations
Phase 1: Provided the study on fitness services market and ecosystem of players
  • Ken collaborated with its client to curate a detailed market assessment and feasibility check of market size for Fitness Service Industry in KSA.
  • Ken Research’s Team also curated a list of major players operating in fitness services across the country to build up a quality Ecosystem of the market.
  • These discussions gave the client possible indication to get a know-how of the Fitness Services Industry in KSA.
Phase 2: Key Analysis of customer behaviour and competition analysis
  • The second phase of work focused on analyzing the detailed landscape on competition across major competitors and cross compared them across 25 operational and financial parameters to understand penetration.
  • The study included deep dive analysis on the parameters including Operational and Financial Performance, Business Model and more to construct a quality financial model for the client.
  • This helped the client to get clarity on new financial model for their operations with eminent and noteworthy Primary Research by Ken Research in short span of time duration.
Phase 3: Quality Recommendations and advisory for the client
  • After identifying and analyzing the market, ken provided end customer analysis basis age, price preference, income and other aspects and white space and niche existing in the market future outlook and
  • Ken Research delivered a quality recommendations to the client basis major clusters/locations and upcoming hubs for medical fitness service industry, revenue stream and more that helped the client to gain future opportunities with high profitability check.
  • Ken has provided a clear road map to the client and customer survey conducted by the team was able to support the client to understand the white space and gaps that exists in the demand
Result and Conclusion
Identification of the right TAM
  • üThe client  has been able to successfully get holistic view for the fitness services Industry to the client with detailed assessment on market size and competition framework

Valuable Insights on overall Industry
  • üThe client has successfully able to get insights on feasibility analysis and scope for ] Fitness Center in KSA which enabled them to get better clarity for market entry.

Detailed landscape on competition
  • Team has detailed landscape on competition across major competitors and cross compared them across 25 operational and financial parameters to understand penetration

Business Impact
  • 10

    New fitness centers added, Achieved market leadership in Organized Fitness segment

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