If your
business
doesn’t stand
for something
f thi
get lost and
stop wasting
p g
everyone’s
time

The case for building a compelling
business purpose
Ray Algar, Strategic Marketer
Oxygen C
O Consulting
li
Leisure Industry Week Conference
UK September 2009

You’re going to love or
g g
hate this presentation

A business that knows why it
exists can seize future
opportunities

Some companies take the
p
purposeful road – others don’t

No of Failed UK Businesses
39,000
2010
Estimate
36,000
2009
22,600
2008
16,000
2007
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

?
That’s 1 in 50 UK companies

36 UK restaurants/bars went
/
bust every week during 2008

No of Failed UK
Private Health Clubs
2009 ?
2008 96
2007 112
2006 121
2005 132
2004 61
2003 68
0 20 40 60 80 100 120 140

?
1 in 45 UK private health
clubs failed in 2008

Why do businesses fail?

Management failures

Loss of market

Will these companies be
p
missed by customers?

The world never misses
mediocre companies

“A lot of company strategies are
generic, bland, ambiguous, vague
uninteresting and undifferentiated”
undifferentiated
Professor Dave Rendall

Does the world still need
video stores?

…or book stores?
or

…traditional estate agents?
traditional

…or travel agents?
or

The web is fundamentally
disrupting many traditional
business models

Why this matters

Meet
M t Jill

Jill is surrounded by choice
y
in her life

36

37

38

39

Jill often finds the
choices traumatising 40

Jill’s problem is that many
p y
products look very similar

Brighton
Gym
Leeds
eeds
Gym
London
Gym
42

Something out of the
ordinary is required to grab
Jill’s attention

Meet Rainer Schaller
McFit CEO

46

Growth of McFit
Budget Clubs
7222
2009 780,000
6931
2008 700,000
6180
2007 550,000
,
6118
2006 416,000
416 000
0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000
Members/Club Members
47

‘Create a business we
can be proud of’

Create a drinks company that
makes it easy for people to
be healthy

100% fruit – no compromise

Authentic to the core

10% profits donated
fit d t d

Loved by customers

Is Innocent
flourishing?

2 million drinks sold
each week

65% UK smoothie
market share

£100 million t
illi turnover

£6 million profit
illi fit

From nowhere to the world’s
world s
third largest phone maker in
g p
two years

This club
chain
h i
collected 26
tonnes of
food
for young
mothers and
babies

Is this the world s most
world’s
environmentally friendly
y y
health club? 64

Joe wanted to make
Gainesville the healthiest
place to live in the USA

Customers love
these companies

If they closed they would
y y
be genuinely missed

Can this be said for the
majority of businesses
we experience?

Fit
Bodies
Ltd
Who misses
medicore companies?

Does the world need a water
brand just for dogs?!

Eddie Izzard has just done
j
a remarkable thing

Is this the world’s first
free gym?

So, what
,
does your
business
stand for?

Stand for
something
or fall for
anything

This company has
p y
generated buzz

The web allows remarkable
things to spread rapidly

Who i R
Wh is Ray Algar?
88
Al ?