Closing the distance between what we know and

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A look at the Australian Fitness Industry, some key statistics related to the Australian popoulation and the challenges the Fitness Industry faces given what we know today. Ideas are presented as to ways to re-shape the industry.

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Closing the distance between what we know and

  1. 1. Closing the Distance Between What We Know, and What We Do! Grant Gamble
  2. 2. Reduce the gap between what you know and what you do . . .
  3. 3. . . . and help reduce the gap between what the average Australian knows and does!
  4. 4. Most people’s view of life . . . HEALTHY DEAD 45 76
  5. 5. . . but for 95% of us it can look like this 45 90 HEALTHY DEAD
  6. 6. Interesting Fact: <ul><li>Australians are better educated on the benefits of fitness and wellness today than at any point in history . . . </li></ul>
  7. 7. Interesting Fact: <ul><li>Yet 83% of the Australian population are not doing enough exercise to significantly improve their health </li></ul>
  8. 8. Question: Why is the gap so great between what the average Australian knows and does?
  9. 9. . . . when <ul><li>Exercise options abound </li></ul><ul><li>Our climate makes outdoor activities ‘easy’ </li></ul><ul><li>People are exposed to the benefits of exercise at bus stops, on billboards, on TV, in the tabloids and beyond . . . </li></ul>
  10. 11. AND, closer to home . . . <ul><li>Prices for ‘fitness’ continue to drop or remain frozen in many cases* </li></ul><ul><li>Personal Trainers are proliferating </li></ul><ul><li>Studios are popping up on every street corner </li></ul><ul><li>Express Clubs are springing up everywhere </li></ul><ul><li>*On average 70% of clubs polled in the AFIS2010 intend to freeze or reduce rates in the coming 12 months – courtesy of EzyPay </li></ul>
  11. 12. So with all these things in our collective favour why are we fighting harder today than ever for a slice of the seemingly ‘fixed’ active exercisers discretionary spend?
  12. 13. Perceived Costs versus Benefits of Pursuing a Healthy Lifestyle PERCEIVED COSTS PERCEIVED BENEFITS NOT PERCEIVED TO BE THE SOCIAL NORM IT’S HARD TO KEEP TRACK LONG TERM HEALTH BENEFITS LOOK & FEEL BETTER SHORT TERM IT’S A LOW PERSONAL PRIORITY I’M NOT AT RISK IT’S TOO MUCH EFFORT REQUIRES TOO MUCH DEPRIVATION PURSUING A HEALTHY LIFESTYLE
  13. 14. Perceived Fears of Clubs versus Benefits of Joining PERCEIVED RISKS PERCEIVED BENEFITS THERE WON’T BE ANYBODY IN MY SITUATION IF I DON’T ATTEND THEY DON’T CARE LONG TERM HEALTH BENEFITS LOOK & FEEL BETTER SHORT TERM I’LL BE SURROUNDED BY BEAUTIFUL PEOPLE I’M JUST A NUMBER AT THE GYM I’M NOT GOOD AT EXERCISE I’LL BE LOCKED INTO AN ONEROUS CONTRACT JOINING A CLUB WHAT IF I SIGN UP AND THE CLUB CLOSES? I DON’T WANT TO DEAL WITH THE ‘ HARD SELL’
  14. 15. DOWNSIDE UPSIDE THERE WON’T BE ANYBODY IN MY SITUATION IF I DON’T ATTEND THEY DON’T CARE LONG TERM HEALTH BENEFITS LOOK & FEEL BETTER SHORT TERM I’LL BE SURROUNDED BY BEAUTIFUL PEOPLE I’M JUST A NUMBER AT THE GYM I’M NOT GOOD AT EXERCISE I’LL BE LOCKED INTO AN ONEROUS CONTRACT GETTING ACTIVE WHAT IF I SIGN UP AND THE CLUB CLOSES? I DON’T WANT TO DEAL WITH THE ‘ HARD SELL’ NOT PERCEIVED TO BE THE SOCIAL NORM IT’S HARD TO KEEP TRACK IT’S A LOW PERSONAL PRIORITY I’M NOT AT RISK IT’S TOO MUCH EFFORT REQUIRES TOO MUCH DEPRIVATION
  15. 16. Progression of attitudes, and the ‘Stages of Change’
  16. 17. And because we do not effectively help people move through these stages we end up ‘fighting’ over a very finite number of participants each year!
  17. 19. Add to this the fact that . . . <ul><li>Today we are competing with . . . </li></ul><ul><ul><li>Narrow margins </li></ul></ul><ul><ul><li>Discounting driven by major players, growing competition, and market demand </li></ul></ul><ul><ul><li>Diversifying populations </li></ul></ul><ul><ul><li>More marketing mediums than we ever imagined </li></ul></ul><ul><ul><li>Increasing resistance from consumers* </li></ul></ul><ul><ul><li>* 64% of expired members said they would never rejoin – AFIS2010 Courtesy of EzyPay </li></ul></ul>
  18. 20. Compounded by . . . <ul><ul><li>Spiraling costs </li></ul></ul><ul><ul><li>Ever increasing options for discretionary spending </li></ul></ul><ul><ul><li>Poor overall industry image </li></ul></ul><ul><ul><li>And ‘the great outdoors’ </li></ul></ul>
  19. 21. How has this paradox occurred? <ul><li>Gym closures </li></ul><ul><li>Inflexible contracts </li></ul><ul><li>Overstated care </li></ul><ul><li>Under performance </li></ul><ul><li>Hard sell </li></ul><ul><li>The ‘projected image’ of the gym user </li></ul><ul><li>Lack of ‘entry type programs’ </li></ul><ul><li>Lack of industry cohesion </li></ul>
  20. 22. Commoditization! And possibly the most problematic of all . . .
  21. 23. So what is the answer . . . ?
  22. 24. . . . there is no ‘Magic Pill’, but there are a myriad of ways for us to shift our thinking, and ultimately our outcomes.
  23. 25. ‘ SIMPLE’ SOLUTIONS (raise your hand if one peeks your interest) <ul><li>Raise prices </li></ul><ul><li>Form a co-operative </li></ul><ul><li>Niche your club </li></ul><ul><li>Outperform consumer expectations </li></ul><ul><li>Reduce costs </li></ul><ul><li>Diversify offerings </li></ul><ul><li>Create ‘clubs’ within the club </li></ul><ul><li>Clubs without walls </li></ul>
  24. 26. INCREASE THE # OF POTENTIAL PARTICIPANTS (raise your hand if one peeks your interest) <ul><li>Decrease the intimidation factor at your club </li></ul><ul><li>Make it ‘easy’ for beginners </li></ul><ul><li>No contract options </li></ul><ul><li>Offer ‘low usage’ memberships </li></ul><ul><li>Enlist partners, e.g. physicians </li></ul><ul><li>Support a national marketing campaign </li></ul>
  25. 27. JOIN THE ‘REALITY BUZZ’ (raise your hand if one peeks your interest) <ul><li>Get on the social media bandwagon* </li></ul><ul><ul><li>Have live video of elements of the club </li></ul></ul><ul><ul><li>Have live video of elements of the club </li></ul></ul><ul><ul><li>Stream PT sessions to the web </li></ul></ul><ul><ul><li>Create vignettes for the web </li></ul></ul><ul><ul><li>Stream group exercise classes </li></ul></ul><ul><ul><li>Send video messages to clients </li></ul></ul><ul><ul><li>* 3.5% of Clubs reported success through Social Media in 2009 – AFIS2010 – Courtesy of EzyPay </li></ul></ul>
  26. 28. INCREASE YOUR ‘FLEX-ABILITY’ (raise your hand if one peeks your interest) <ul><li>Provide custom memberships, e.g. </li></ul><ul><ul><li>‘ No frills’ through to </li></ul></ul><ul><ul><li>All the ‘bells and whistles </li></ul></ul><ul><ul><li>Time ‘loaded’ memberships </li></ul></ul><ul><li>Enhance your online presence </li></ul><ul><ul><li>Allow account access online </li></ul></ul><ul><ul><li>Encourage bookings online </li></ul></ul><ul><ul><li>Sign-ups online </li></ul></ul><ul><li>Use email to enhance your communications* </li></ul><ul><li>*58.3% of members prefer email communications – AFIS2010 Courtesy of EzyPay </li></ul>
  27. 29. BROADEN YOUR OFFERINGS (raise your hand if one peeks your interest) <ul><li>Introduce ‘Discover Programs’ </li></ul><ul><li>Add ‘retreats’ to your offerings </li></ul><ul><li>Partner for ‘Exercise Holidays’ </li></ul><ul><li>Make ‘Short Term Programs’ a LT strategy </li></ul><ul><li>‘ Senior Centric’ classes </li></ul><ul><li>‘ Kid Centric’ programs </li></ul>
  28. 30. BROADEN YOUR OFFERINGS (raise your hand if one peeks your interest) <ul><li>Go ‘Low Tech’ (Outdoor and Urban training)* </li></ul><ul><li>Go 24 . . .** </li></ul><ul><li>Leverage the Group Training ‘opportunity’*** </li></ul><ul><li>No contract terms**** </li></ul><ul><li>* 39.4% Club Owners AND Members saw this as a major growth area – AFIS2010 – Courtesy of EzyPay </li></ul><ul><li>** 31.4% of Club Owners and Members saw 24hr Club as a significant growth area – AFIS2010 - Courtesy of EzyPay </li></ul><ul><li>*** 40.8% of Club Owners and Members saw Group Training as a significant growth area – AFIS2010 - Courtesy of EzyPay </li></ul><ul><li>**** 46.3% of Club Owners and Members saw No Contract Terms as a significant growth area – AFIS2010 - Courtesy of EzyPay </li></ul>
  29. 31. SHAPE YOUR STRATEGIES (raise your hand if one peeks your interest) <ul><li>Rejoin on a NO Contract Membership* </li></ul><ul><li>Cross-train your Fitness Team to do tours/sales** </li></ul><ul><li>Utilise your space more effectively </li></ul><ul><li>* 51.5% of Ex-Members said they would rejoin on a No Contract Terms basis as opposed to 7.6% on basis of rejoining at the same rate as they left – AFIS2010 - Courtesy of EzyPay </li></ul><ul><li>** 49.5% of members/ex-members would prefer a Trainer to tour them over 2.2% by a Sales Consultant – AFIS2010 – Courtesy of EzyPay </li></ul>
  30. 32. Is there a solution amongst those very simple ideas?
  31. 33. What are you going to do to differentiate yourself?
  32. 34. To stand out from the crowd?
  33. 35. Or create a new market outside of the ‘Red Ocean’ we compete in today?
  34. 36. Bibliography <ul><li>The 10 Top Consumer Trends Impacting the Fitness Industry in 2010 – Celeste Kirby-Brown & Simon Hall </li></ul><ul><li>Australian Fitness Industry Survey – EzyPay Celeste Kirby-Brown & Simon Hall </li></ul><ul><li>ABHI Segmentation Report - GfK Blue Moon </li></ul><ul><li>Australian Better Health Initiative - GfK Blue Moon </li></ul><ul><li>ABHI – Phase I Campaign Evaluation - GfK Blue Moon </li></ul>

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