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Kantar: Brand power
Liz Terry looks at which operators are most recognised by consumers, using Kantar’s latest brand insight
Brand expert, Kantar, has curated a selected ranking of health club operators and overlaid consumer insight data to show how they perform in relation to perceived value and consumer awareness.
The research sample used to create the insight was comprised of consumers who are ‘category users’, ie, are or have been members of a health club.
Many operators are not included, so the list is not comprehensive, but it does give valuable insights into customer sentiment, which is an area of growing interest for the sector.
The rankings are part of the Kantar BrandSnapshot powered by its BrandZ service, which delivers intelligence on 10,000 brands in more than 40 markets, offering a quick read on each brand’s performance.
Listed in the health and fitness operator segment are Pure Gym, David Lloyd Leisure, Fitness First, Virgin Active, Nuffield Health, JD Gym and Everyone Active. Also assessed are Crossfit, Les Mills and Peloton.
Awareness rankings
The overall ranking of consumer brand awareness – based on a sample of 401 people and assessing the brands by the percentage of people who are aware of them when prompted – shows Pure Gym as the UK health and fitness operator with the highest level of consumer awareness in the group at 92 per cent.
DLL comes in at 78 per cent – the same position as fitness brand Peloton – with Fitness First close behind at 76 per cent.
Virgin Active is next at 72 per cent on a par with Nuffield Health, with JD Gyms on 78 per cent and Everyone Active on 41 per cent.
Crossfit comes in at 73 per cent and global brand Les Mils Mills at 50 per cent – this is likely because the Les Mills brands, such as Body Pump, have higher rates of consumer recognition than the name of the company.
Insight into perceptions of pricing
Kantar also assessed perceptions around pricing, finding a wide range of results.
Pure Gym is seen as ‘great value’ by consumers, as is JD Gyms, with this meaning, as expected, that they ‘deliver great value to customers at a low price point’. Kantar says this leaves room for the brands to leverage their strong position in negotiations and offer premium extensions, as well as advertising their value.
In the next category, Fitness First and Everyone Active are seen as ‘value’ brands, which Kantar says means they rely on pricing to sustain business, but in the longer term could benefit from brand-building. Advice is to communicate price advantage when compared with competitors and emphasise quality and value in marketing.
Virgin Active is seen as ‘margin risk’, which, according to the insight, means it “could be in trouble if it doesn’t demonstrate value to its members’. Kantar recommends investing in the brand and limiting the use of price promotions to those that will drive people to do a trial. Also to create ‘bundle’ options to improve value perception, potentially using a ‘good, better, best’ strategy.
David Lloyd Leisure is seen as ‘high priced’, meaning it needs to ‘ensure brand associations are well supported and that it ‘could be losing custom at the point of sale’. Advice from Kantar in this situation is to ensure smaller ‘unit sizes’ are available for consumers – for example, as a trial or an affordable treat – and to reframe the value by using less quantifiable concepts such as time, happiness and pleasure in messaging.
Nuffield Health is seen as ‘overpriced’, meaning it might ‘risk the need to rely on price promotions’, which is interesting, given Nuffield is currently running a ‘no joining fee and get two months free’ offer (@ 1 March 2024).
Kantar did not seek to establish if consumers value Nuffield’s links to the medical sector and its more holistic offering or the effect this is having on perceptions.
In its report, Kantar advises Nuffield to identify weakness in brand perfections, especially among non-customers and seek cost reductions to lower price levels, while also checking if the operation is over-depending on price promotions.
Demand power
Kantar has measures it calls ‘Demand Power’ which it uses to assess a brand’s power to capture significantly more volume of business and ‘Future Power’, which indicates its potential to gain value share in the future. It also assesses ‘Pricing Power’ – the ability to command a price premium.
Looking at these measures one at a time, Pure Gym comes top for Demand Power with a score of 20.8 per cent with DLL a distant second at 12.1 per cent.
Fitness First sits at 10.8 per cent, Virgin Active and Nuffield Health at 8.4 per cent and JD Gyms at 9.3 per cent. Everyone Active is at 5.4 per cent.
Demand Power estimates a brand’s volume-share based on brand associations. Calculated from measures of how ‘meaningful’, ‘different’ and ‘salient’ the brand is, Demand Power is reported as a percentage.
Pricing power
Pricing power is calculated only by asking those who would consider purchasing the brand, with a score of 100 representing the “justification of the brand’s equity to the category’s average price”.
David Lloyd scored most highly at 103, with PureGym close behind with 102 and JD Gyms at 100.
Everyone Active and Fitness First tied at 98 and Nuffield Health came in at 97. Virgin Active was at 95.
In the supplier group, Peloton was 107, Crossfit 102 and Les Mills 99, showing they have high levels of consumer awareness when it comes to value.
Future power
Kantar also measures ‘Future Power’ – the probability that a brand will grow value share in the next 12 months, based on the strength of current brand associations. This measure is expressed as an index, where the average score is 100.
Everyone Active comes out on top with 124 – one of the highest scores – with PureGym second with 113 and David Lloyd with 109.
JD Gyms is next with 105, then it jumps to Fitness First with 93, Nuffield Health with 92 and Virgin Active with 86.
Kantar analysis also contains a SWOT analysis, created based on scores, with advisory notes relating on standardised variables and each one is detailed below
More: www.kantar.com
Selected health and fitness operators: the percentage of people who are aware of the brand when prompted
All respondents are category users
Pure Gym 92%
David Lloyd Leisure 78%
Fitness First 76%
Virgin Active 72%
Nuffield Health 72%
JD Gyms 68%
Everyone Active 41%
© Kantar Group and Affiliantes 2022
• Your brand has a distinctive personality and is seen as inclusive, respectful and egalitarian
• Your brand is a bit cheaper than others and seen as fair value for money. Make sure to communicate your price advantage over competitors
• Kantar BrandZ data shows no specific weaknesses for Everyone Active
• Consumers find your brand attractive and effective, making it highly meaningful for them – can you leverage this further?
• You’re converting prospects into customers really well
• This is a small brand which is primed for growth. It is challenging well and threatens the larger brands in the category
• Many consumers are loyal to one brand in your category, so ensure you invest in brand-building
• You’re a brand in demand with potential to attract more people if they knew you
• You’re primed for growth – make sure you activate across all channels to realise growth
• You may struggle to leverage marketing activity until you can raise brand awareness
• PureGym is likely to be growing over the next year and may steal your share
© Kantar Group and Affiliantes 2022
• You have lots of regular users – make sure you build your brand through delivering a great experience
• Your range of products and services is appreciated
• There’s room to improve awareness of your brand
• Too many non-trialists are apprehensive about the brand. How can their pre-conceptions be overcome?
• Your brand’s salience is low
• This brand is not in a successful position, being a small brand with weak equity
• You are not justifying your brand’s current price
• You brand lacks differentiation in some areas
• You’re top of mind with more consumers than are currently using you – can you exploit this mental advantage?
• Your brand is seen to make peoples’ lives better – leverage this in your positioning and communication ideas
• You have a very well-defined brand personality
• Target Virgin Active to steal share from: they are most vulnerable in the short term
• Many consumers are loyal to one brand in your category, so ensure you invest in brand-building
• You’re a brand in demand with potential to attract more people if they knew you
• Your customers are actively looking for an alternative
• Everyone Active, PureGym are likely to be growing over the next year and may steal your share
• Based on the number of considerers, your levels of purchase/usage are low. Check your activation around decisions at the point of sale
© Kantar Group and Affiliantes 2022
• You have lots of regular users – make sure you build your brand through a great experience
• Your brand has a distinctive personality
• Consumers have a meaningful connection with your brand
• Your range of products and services is appreciated
• You are very familiar to consumers
• Your customers tend to reject alternative brand choices
• This is a strong brand with potential to grow further. Current marketing is effective and should be sustained
• You're well known but not enough people have tried the brand
• Many trialists wouldn't consider buying the brand again. Could the brand experience be enhanced?
• You brand lacks differentiation in some areas
• Too many non-trialists are apprehensive about the brand. How can their pre-conceptions be overcome?
• Many consumers are loyal to one brand in your category, so ensure you invest in brand-building
• You're top of mind with more consumers than are currently using you – can you exploit this mental advantage?
• You're a brand in demand with potential to attract more people if they knew you
• Based on the number of considerers, your levels of purchase/usage are low. Check your activation around decisions at the point of sale
• Your brand has high price perceptions with a risk of consumers trading down. Make sure your products are available in affordable packages
• Your customers are actively looking for an alternative
• Operators such as PureGym and Everyone Active could pose a future threat to your market share
© Kantar Group and Affiliantes 2022
• This is a strong brand with potential to grow further. Current marketing is effective and should be sustained
• Your customers tend to reject alternative brand choices
• Your range of products and services is appreciated
• You are very familiar to consumers
• Many trialists wouldn’t consider buying the brand again. Could the brand experience be enhanced?
• There is room to improve awareness of your brand
• Many consumers are loyal to one brand in your category, so ensure you invest in brand-building
• You’re top of mind with more consumers than are currently using you – can you exploit this mental advantage?
• Your brand is seen as best value – leverage this position among customers.
• You’re a brand in demand with potential to attract more people if they knew you
• Everyone Active, PureGym could pose a future threat to your market share
• Based on the number of considerers, your levels of purchase/usage are low. Check your activation around decisions at the point of sale
© Kantar Group and Affiliantes 2022
• You are very familiar to consumers
• You have lots of regular users – make sure you build your brand through a great experience
• There is high demand for your brand from consumers
• Being a popular, safe choice is driving customers to your brand
• Your customers tend to reject alternative brand choices
• Your salience alone will be helping to drive sales/usage
• This is a strong brand with potential to grow further. Current marketing is effective and should be sustained
• You have the advantage of consumer repeat purchase habits
• Your perceived price advantage is driving current sales/usage
• Your brand is convenient, fitting easily into consumers’ everyday lives
• Many trialists wouldn’t consider buying the brand again. Could the brand experience be enhanced?
• Many consumers are loyal to one brand in your category, so ensure you invest in brand-building
• You’re primed for growth – make sure you activate across all channels to realise share growth
• Your brand is seen as best value – leverage this position among customers.
• People trust your brand – use it to your advantage!
• You’re top of mind with more consumers than are currently using you – can you exploit this mental advantage?
• Everyone Active could pose a future threat to your market share.
• Your customers are actively looking for an alternative
• Based on the number of considerers, your levels of purchase/usage are low. Check your activation around decisions at the point of sale
© Kantar Group and Affiliantes 2022
• Your brand is a bit cheaper than others and seen as fair value for money. Make sure to communicate your price advantage over competitors
• This is a brand competing well in its market. It’s a mid-ranking brand likely to retain its share
• You are very familiar to consumers
• You have lots of regular users – make sure you build your brand through delivering a great experience
• Your brand lacks differentiation
• Many consumers are loyal to one brand in your category, so ensure you invest in brand-building
• You’re top of mind with more consumers than are currently using you – can you exploit this mental advantage?
• Target Virgin Active to steal share from: they are most vulnerable in the short term.
• You’re a brand in demand with potential to attract more people if they knew you
• Everyone Active, PureGym are likely to be growing over the next year and may steal your share
• Based on the number of considerers, your levels of purchase/usage are low. Check your activation around decisions at the point of sale
• This is a large brand but lacks the equity to drive future growth and is therefore at risk
© Kantar Group and Affiliantes 2022
• You are very familiar to consumers
• You have lots of regular users – make sure you build your brand through a great experience
• This is a brand competing well in its market. It’s a mid-ranking brand likely to retain its share
• Your range of products and services is appreciated
• There is still room to improve awareness of your brand
• Too many non-trialists are apprehensive about the brand. How can their pre-conceptions be overcome?
• You’re well known but not enough people have tried the brand
• Your brand’s salience is low
• This brand is not in a successful position, being a small portfolio with weak equity
• Consumers are questioning your pricing and value for money: you need to invest in your brand or risk relying on promotions
• Your brand has distinctive assets, so use them across your advertising and touch points
• Many consumers are loyal to one brand in your category, so ensure you invest in brand-building
• You’re top of mind with more consumers than are currently using you – can you exploit this mental advantage?
• You’re a brand in demand with potential to attract more people if they knew you
• You are at significant risk of losing share in the next year
• Your customers are actively looking for an alternative
• Other operators are likely to be growing over the next year and may steal your share
• Based on the number of considerers, your levels of purchase/usage are low. Check your activation around decisions at the point of sale
© Kantar Group and Affiliantes 2022
