Commercial Director Hannah Thomsen

Summary

Hanna Thomsen, the Commercial Director at PUM, provides an insightful overview of the company's position in Denmark's fitness market. Operating as a market leader in the value segment, PUM offers accessible, quality fitness experiences at affordable prices, differentiating itself by focusing on functionality over luxury. The company employs a data-driven approach to pricing, marketing, and customer engagement. PUM faces challenges in a discount-driven industry but aims to shift the focus towards the value of fitness. With strategic partnerships and ongoing market research, PUM is positioned to remain a dominant player in the competitive fitness landscape.

Takeaways

• 😀 The company is a market leader in the Danish fitness sector, focusing on a 'value segment' offering affordable fitness services without luxury features like saunas or massage chairs.
• 😀 The fitness business is highly data-driven, leveraging large volumes of customer data to make precise decisions on marketing campaigns and pricing.
• 😀 The company uses a variable pricing model for each fitness center, adjusting prices based on factors such as demand, location, and center condition.
• 😀 Their core revenue comes from fitness memberships, which constitute 90% of their total sales, while product sales and personal training sessions contribute the remaining 10%.
• 😀 The company offers three primary membership types: Core (access to one center), Plus (access to multiple centers), and Unlimited (access to all centers in Denmark).
• 😀 A key competitive advantage is the large number of fitness centers across Denmark, providing accessibility that no other competitor can match.
• 😀 The company is working to reduce its reliance on discount-driven marketing campaigns and aims to enhance the perceived value of fitness products.
• 😀 They focus on local community engagement, with campaigns often involving staff and loyal members to promote the brand and attract new customers.
• 😀 The company is monitoring trends in mental health and well-being, recognizing the growing interest in these areas within the fitness market.
• 😀 There is interest in expanding partnerships with public entities, especially in the areas of rehabilitation for patients and elderly care, though this is still in its early stages.
• 😀 The company conducts extensive market research, collecting both qualitative and quantitative data from current and potential members to better understand customer needs and market trends.

Q & A

What is the role of Hanna Thomsen in the company?

Hanna Thomsen is the Commercial Director at the company, and she has been employed since October 2020.

What is the company's market position in the Danish fitness industry?

The company is the market leader in the Danish fitness industry and operates in the 'value segment,' offering fitness services at an affordable price without luxury amenities like saunas or massage chairs.

How does the company differentiate itself from competitors in the fitness market?

The company differentiates itself through its large number of centers, providing high accessibility for members. This is something no other competitor can match, as members are likely to find a nearby center, regardless of their location in Denmark.

What are the three primary membership types offered by the company?

The three primary membership types are: 'Core' (access to one center), 'Plus' (access to several centers within a price range), and 'Unlimited' (access to all centers in Denmark).

What percentage of the company's revenue comes from fitness subscriptions versus product sales?

90% of the company's revenue comes from fitness subscriptions, while 10% comes from the sale of products like drinks, protein bars, and personal training sessions.

What is the concept of 'variable pricing' used by the company?

The company uses variable pricing, meaning each fitness center has its own pricing based on factors like supply and demand, center location, and the state of the facility. For example, centers with fewer members may have lower prices, while busier centers may have higher prices.

How does the company use data to enhance its marketing efforts?

The company is highly data-driven and uses a large dataset to estimate the effectiveness of different campaign texts and promotions for various member segments. This allows them to meet their budget targets with high precision.

What challenges does the company face in its marketing efforts?

A major challenge is the strong culture of discounts in the Danish fitness market. Many people expect to always get fitness services at a discounted price, which the company is trying to shift by emphasizing the value of the fitness product.

What is the company's strategy to combat the discount-driven culture in the fitness market?

The company aims to gradually reduce the pressure for discount-based marketing and focus on promoting the broader benefits of fitness, such as physical and mental health, and the experience of attending fitness classes.

How does the company gather feedback from members and the broader public?

The company collects feedback through various methods, including surveys, focus groups, and brand tracking. They also analyze member behavior and opinions to gain insights into the broader fitness market in Denmark.