MARKETING
STRATEGIES FOR
SUCCESS
Analysing Market Data
Analyse the usefulness of
marketing information to
support Stan Todd’s decision to
acquire the Total Sports Fitness
Division
Identify two pieces of evidence which (1) support and (2) argue
against Stan Todd buying the Total Sports Fitness Division
1. Look at the data
2. What does it
show?
3. Cause?
4. Evidence provides
support or
argument?
Summary
Marketing Evidence IN FAVOUR of the
acquisition
Marketing Evidence AGAINST the
acquisition
1. % Sales growth increased for three
main competitors 2006 – 2008
• Virgin Active 3.3%
• Bannatynes 41.5%
• David Lloyd 10.39%
Spend on subscriptions fell by 2.7%
from 2004 – 2008
•Fall in Demand?
•Prices falling due to increase in
competition could lead to pressure on
margins and necessity to cut costs
2. Number of new memberships in
new facilities and like for like
increase in memberships.
• Positive, although like for like
increase is minimal
Number of new clubs opening
Increase in competition in an already
highly competitive market.
Possible response from competition to
maintain market share in a saturated
market
Remember to use the information within the case
study.
• Rising levels of obesity as indicated by Stan
Todd – correlation with growth in spending
on sports and fitness
• Start of 2009, Target Fitness clubs generating
operating profits of £22.9 million (compare to
Virgin £(1.7), Bannatynes £14.1m and David
Lloyd 39.6. Target Fitness had annual
revenues of £138.7 million.
Usefulness of the data
Depends on
• Accuracy, source and validity of data – table 2 does
not indicate source.
• Ability of STL’s management to interpret and use data
Additional Information
• % Sales Growth for Target Sports, how does it relate
to competition
• Consumer Spending forecasts on Fitness Industry for
next 5 years
• Qualitative information