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What does your fitness club stand for: Ray Algar (MBA) IHRSA European Convention Lisbon Portugal October 2008
 

What does your fitness club stand for: Ray Algar (MBA) IHRSA European Convention Lisbon Portugal October 2008

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Presentation delivered to delegates at the IHRSA European Convention in Lisbon October 2008 by Ray Algar (MBA)

Presentation delivered to delegates at the IHRSA European Convention in Lisbon October 2008 by Ray Algar (MBA)

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    What does your fitness club stand for: Ray Algar (MBA) IHRSA European Convention Lisbon Portugal October 2008 What does your fitness club stand for: Ray Algar (MBA) IHRSA European Convention Lisbon Portugal October 2008 Presentation Transcript

    • What does your fitness club stand for? The business case for building a powerful business b i purpose Presented by Ray Algar MBA, MA Managing Director Oxygen Consulting UK IHRSA European Congress Lisbon October 2008 © Ray Algar – Oxygen Consulting 2008 1
    • Themes we will explore 2
    • Understanding how to reduce the i d h impact of f competitors 3
    • Creating a strong purpose versus short term h marketing campaigns 4
    • How a strong business purpose creates a deep d and lasting connection with members 5
    • Exploring companies that customers l h love 6
    • Why does your club need y y a compelling purpose? 7
    • Everywhere, Everywhere consumers face more choice 8
    • 9
    • 10
    • 11
    • 12
    • 13
    • 14
    • 15
    • Co pet g bus esses Competing businesses can now look the same 16
    • UK G Gym Danish Gym 17
    • Consumers begin C b i to select on price p 18
    • So companies fight for the lowest price 19
    • €6.40 €6 40
    • 21
    • Great price for S Spanish i h members 22
    • Time to focus on extraordinary service? 23
    • REAL competition …welcome to New York l t N Y k 24
    • Club Closures - UK 140 132 121 112 120 100 68 Number 80 6 61 60 N 40 20 0 Year Year Year Year Year ending g ending g g ending ending g ending g 2003 2004 2005 2006 2007 25
    • So consumers have choice, but how good are these clubs? h d h l b ? 26
    • Let’s go on-line a d et s o e and find out 27
    • 28
    • 29
    • 30
    • 31
    • 32
    • Customer Positive Negative Type opinion opinion Current 40% 60% Past ? ? Prospective ? ? All types 36% 64% 33
    • Positive Negative g opinion opinion Past 5% 95% members 34
    • Positive Negative g opinion opinion Prospective 47% 53% members 35
    • Do clubs care? 36
    • …yes, during the y , g tour 37
    • ‘the best salesman the ever’ 38
    • ‘I remember how I friendly the sales lady was in trying to get me to join up’ 39
    • …but after the honeymoon period 40
    • ‘Af ‘After the i i i l session, they h initial i h have never checked how I was over two years of membership membership’ 41
    • ‘Clubs ‘Cl b are not interested ti t t d in their members’ 42
    • Membership f b hi factors: 87% negative 43
    • ‘I was not aware of the 12- month contract until I tried to cancel’ 44
    • Chandler wants to l leave the gym h 45
    • Friends video 46
    • 47
    • Would you recommend this club to your family and friends?
    • 1 in 10 (10%) promoter rate for 6 large club chains
    • 22% highest chain 50
    • 7% l % lowest chain 51
    • Little positive word of mouth 52
    • €17/month 53
    • €13/month
    • Fit for Free €9 90/month €9.90/month
    • 56
    • Outdoor classes 58
    • Outdoor gyms 59
    • Home exercise 60
    • Video gaming 61
    • Online Health Clubs 62
    • Mobile personal trainers i 63
    • Wearable activity tracking 64
    • 65
    • MiCoach by adidas 66
    • So, So the choice for clubs is a remarkable service or competing on price? i i ?
    • How fitness clubs can fight back 68
    • Clubs need a strong purpose 69
    • A strong purpose helps your fitness b fi brand to d become unique 70
    • When you are unique and valued, members will pay more 71
    • Coke & supermarket own p brand - €2.12 v €0.30 590% premium 72
    • Cl b need to create real Clubs dt t l value for members 73
    • Th challenge is for members The h ll i f b to feel a strong sense of g belonging and connection 74
    • Members need to fall in love with your club 75
    • Football fans NEVER switch clubs 76
    • Porsche creates passionate customers 77
    • 78
    • What is your club’s purpose? 79
    • What are we as individuals passionate about? 80
    • What does your club stand for? 81
    • ‘Stand for something, or fall forstand for change I anything’ Malcolm X 82
    • Purpose goes deep inside the company 83
    • To organise the world’s information 84
    • ‘The Body Shop ceased to be just another trading b i h di business. IIt became a force for social change’ g 85
    • A strong purpose provides a compass for your club 86
    • C Companies with a i ith strong purpose gp p 87
    • 88
    • Innocent smoothie 89
    • A third space for thi d f connecting p p g people 90
    • 91
    • 7,000,000 7 000 000 92
    • 93
    • To help protect y our priv acy , PowerPoint prev ented this external picture from being automatically downloaded. To download and display this picture, click Options in the Message Bar, and then click Enable external content. 94
    • Brands with a cause B d ith ou pe o outperform their rivals e as 95
    • A small company can have p y a big and compelling purpose 96
    • Here’s two fitness clubs with a purpose that members love 97
    • Gainesville Health & Fitness Center 98
    • Meet Joe Ci lli Cirulli 99
    • Joe s Joe’s purpose 100
    • To make Gainesville the healthiest community in America 101
    • ‘It was a 3 5 year project. 3.5 j t We accomplished it in 2003’ p 102
    • ‘We then changed our We mission to keeping Gainesville the healthiest community in America‘ America 103
    • ‘To keep Gainesville healthy p y one business, one person, one child at a time’ time 104
    • Club has engaged 60% of G i f Gainesville’s workers ill ’ k 105
    • ‘The hi d l ‘ h third place i in members lives’ members’ lives 106
    • ‘Extraordinary Extraordinary commitment to helping people - a consistent level of service that far exceeds the th ordinary’ di ’ 107
    • 108
    • ‘We define integrity as always We doing the right thing even when no one is looking’ h i l ki ’ 109
    • ‘Members get results’ Members results 110
    • Free eight week cancer recovery programme 111
    • Free childcare 112
    • Gold G ld well city ll it award 2003 113
    • IHRSA i d t industry visionary award y 114
    • World fitness centre 2001 115
    • Members stay on average 40 months 116
    • Families have grown up at Joe’s centre ’ 117
    • 3 employees have worked with Joe for 31 y years 118
    • 23,000 23 000 members 119
    • Questions 120
    • Here s Here’s another fitness club with a strong purpose 121
    • Welcome to Eco Fit Brazil: Is this the most environmentally friendly fitness centre in the world? 122
    • 123
    • R d Reduce, re-cycle and l d re-use philosophy p p y 124
    • Save water, materials from renewable sources 125
    • Solar power 126
    • Ozone-treated pool to reduce chemical use 127
    • Organic philosophy 128
    • More than a fitness club – an environmental academy i l d 129
    • 2,000 classes for the whole family each month 130
    • Works with Greenpeace, Brazilian Institute for the Defence of Nature & other environmental charities 131
    • Ecokids – environmental awareness courses for children 132
    • Questions 133
    • These clubs have a clear purpose? 134
    • They will leave a strong legacy or history 135
    • If these clubs closed today they would b missed b h ld be i d by members? 136
    • These members will not leave for another club 137
    • Members LOVE these clubs 138
    • These clubs generate g an external buzz 139
    • Members lives are being improved 140
    • Staff are passionate and having fun 141
    • Do not imitate these centres … find your own purpose 142
    • Get behind a strong purpose NOT short term marketing campaigns 143
    • It helps you to become valued b members l d by b and unique 144
    • …and makes the and competition irrelevant 145
    • Free chapter download 146
    • www.oxygen-consulting.co.uk www oxygen-consulting co uk 147
    • Who is Ray Al Wh i R Algar? ? 148
    • Questions 149