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

Background and Client Introduction

Our client, the largest Sports and Fitness Club in the Middle East with a legacy of 15 years, operates across 140 branches in Saudi Arabia. The organization sought to scale its operations and enhance market penetration but faced significant challenges in assessing the market landscape and understanding consumer behavior.

Ken Research stepped in as a strategic partner to address these gaps by providing a data-driven approach, leveraging industry insights, and deploying McKinsey's 7S Framework to deliver impactful solutions.

Challenges Faced by the Client

1. Market Assessment Deficiency: Difficulty accessing a comprehensive assessment of the fitness services industry in Saudi Arabia, including identifying organized and unorganized players.
2. Consumer Segmentation Insights: Lack of clarity on market size, customer segmentation, and white space opportunities.
3. Strategic Roadmap: Absence of a robust business model and strategic plan for scaling operations while ensuring profitability.

Approach and Solution by Ken Research

Ken Research meticulously applied McKinsey's 7S Framework to develop a tailored solution:

1. Strategy

Ken Research delivered a three-phased strategic roadmap:

• Phase 1: Market Ecosystem Study
  • Conducted a feasibility analysis and curated a list of over 100 organized and unorganized fitness service providers in KSA.
  • Mapped key players and assessed the potential for growth.
• Phase 2: Competitive and Consumer Analysis
  • Benchmarked 25 competitors across operational and financial metrics.
  • Conducted customer behavior analysis segmented by age, income, and price preferences.
• Phase 3: Strategic Recommendations
  • Identified high-potential clusters and proposed a market entry strategy.
  • Delivered a financial performance model tailored to the client’s operations.

2. Structure

The proposed strategy emphasized a hub-and-spoke model, optimizing operational efficiency across the client’s network of 140 branches.

3. Systems

Ken Research introduced:

• Data dashboards for real-time market tracking.
• A competitive intelligence system to monitor industry dynamics.

4. Shared Values

Aligned with the client’s vision to promote health and wellness, the strategy leveraged Saudi Arabia’s Vision 2030 objectives, which target a rise in physically active individuals from 13% to 40%.

5. Style

Ken Research fostered a collaborative engagement style, involving the client in iterative feedback loops to refine recommendations.

6. Staff

Provided training modules to empower the client’s teams with the tools and insights required for market execution.

7. Skills

Equipped the client with a comprehensive understanding of market dynamics and financial modeling through detailed reports and presentations.

Results and Impact

The collaboration yielded measurable business outcomes:

• Market Leadership: The client successfully established 10 new fitness centers, achieving leadership in the organized fitness segment.
• Tangible Insights: Detailed assessment of 25 competitors and consumer insights facilitated informed decision-making.
• Strategic Clarity: Identification of Total Addressable Market (TAM) and whitespace opportunities enabled a scalable growth plan.

Business Impact

Ken Research's recommendations mapped short- and long-term market opportunities, ensuring sustainable growth for the client.