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

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

    1. 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
    2. Themes we will explore 2
    3. Understanding how to reduce the i d h impact of f competitors 3
    4. Creating a strong purpose versus short term h marketing campaigns 4
    5. How a strong business purpose creates a deep d and lasting connection with members 5
    6. Exploring companies that customers l h love 6
    7. Why does your club need y y a compelling purpose? 7
    8. Everywhere, Everywhere consumers face more choice 8
    9. 9
    10. 10
    11. 11
    12. 12
    13. 13
    14. 14
    15. 15
    16. Co pet g bus esses Competing businesses can now look the same 16
    17. UK G Gym Danish Gym 17
    18. Consumers begin C b i to select on price p 18
    19. So companies fight for the lowest price 19
    20. €6.40 €6 40
    21. 21
    22. Great price for S Spanish i h members 22
    23. Time to focus on extraordinary service? 23
    24. REAL competition …welcome to New York l t N Y k 24
    25. 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
    26. So consumers have choice, but how good are these clubs? h d h l b ? 26
    27. Let’s go on-line a d et s o e and find out 27
    28. 28
    29. 29
    30. 30
    31. 31
    32. 32
    33. Customer Positive Negative Type opinion opinion Current 40% 60% Past ? ? Prospective ? ? All types 36% 64% 33
    34. Positive Negative g opinion opinion Past 5% 95% members 34
    35. Positive Negative g opinion opinion Prospective 47% 53% members 35
    36. Do clubs care? 36
    37. …yes, during the y , g tour 37
    38. ‘the best salesman the ever’ 38
    39. ‘I remember how I friendly the sales lady was in trying to get me to join up’ 39
    40. …but after the honeymoon period 40
    41. ‘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
    42. ‘Clubs ‘Cl b are not interested ti t t d in their members’ 42
    43. Membership f b hi factors: 87% negative 43
    44. ‘I was not aware of the 12- month contract until I tried to cancel’ 44
    45. Chandler wants to l leave the gym h 45
    46. Friends video 46
    47. 47
    48. Would you recommend this club to your family and friends?
    49. 1 in 10 (10%) promoter rate for 6 large club chains
    50. 22% highest chain 50
    51. 7% l % lowest chain 51
    52. Little positive word of mouth 52
    53. €17/month 53
    54. €13/month
    55. Fit for Free €9 90/month €9.90/month
    56. 56
    57. Outdoor classes 58
    58. Outdoor gyms 59
    59. Home exercise 60
    60. Video gaming 61
    61. Online Health Clubs 62
    62. Mobile personal trainers i 63
    63. Wearable activity tracking 64
    64. 65
    65. MiCoach by adidas 66
    66. So, So the choice for clubs is a remarkable service or competing on price? i i ?
    67. How fitness clubs can fight back 68
    68. Clubs need a strong purpose 69
    69. A strong purpose helps your fitness b fi brand to d become unique 70
    70. When you are unique and valued, members will pay more 71
    71. Coke & supermarket own p brand - €2.12 v €0.30 590% premium 72
    72. Cl b need to create real Clubs dt t l value for members 73
    73. Th challenge is for members The h ll i f b to feel a strong sense of g belonging and connection 74
    74. Members need to fall in love with your club 75
    75. Football fans NEVER switch clubs 76
    76. Porsche creates passionate customers 77
    77. 78
    78. What is your club’s purpose? 79
    79. What are we as individuals passionate about? 80
    80. What does your club stand for? 81
    81. ‘Stand for something, or fall forstand for change I anything’ Malcolm X 82
    82. Purpose goes deep inside the company 83
    83. To organise the world’s information 84
    84. ‘The Body Shop ceased to be just another trading b i h di business. IIt became a force for social change’ g 85
    85. A strong purpose provides a compass for your club 86
    86. C Companies with a i ith strong purpose gp p 87
    87. 88
    88. Innocent smoothie 89
    89. A third space for thi d f connecting p p g people 90
    90. 91
    91. 7,000,000 7 000 000 92
    92. 93
    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
    94. Brands with a cause B d ith ou pe o outperform their rivals e as 95
    95. A small company can have p y a big and compelling purpose 96
    96. Here’s two fitness clubs with a purpose that members love 97
    97. Gainesville Health & Fitness Center 98
    98. Meet Joe Ci lli Cirulli 99
    99. Joe s Joe’s purpose 100
    100. To make Gainesville the healthiest community in America 101
    101. ‘It was a 3 5 year project. 3.5 j t We accomplished it in 2003’ p 102
    102. ‘We then changed our We mission to keeping Gainesville the healthiest community in America‘ America 103
    103. ‘To keep Gainesville healthy p y one business, one person, one child at a time’ time 104
    104. Club has engaged 60% of G i f Gainesville’s workers ill ’ k 105
    105. ‘The hi d l ‘ h third place i in members lives’ members’ lives 106
    106. ‘Extraordinary Extraordinary commitment to helping people - a consistent level of service that far exceeds the th ordinary’ di ’ 107
    107. 108
    108. ‘We define integrity as always We doing the right thing even when no one is looking’ h i l ki ’ 109
    109. ‘Members get results’ Members results 110
    110. Free eight week cancer recovery programme 111
    111. Free childcare 112
    112. Gold G ld well city ll it award 2003 113
    113. IHRSA i d t industry visionary award y 114
    114. World fitness centre 2001 115
    115. Members stay on average 40 months 116
    116. Families have grown up at Joe’s centre ’ 117
    117. 3 employees have worked with Joe for 31 y years 118
    118. 23,000 23 000 members 119
    119. Questions 120
    120. Here s Here’s another fitness club with a strong purpose 121
    121. Welcome to Eco Fit Brazil: Is this the most environmentally friendly fitness centre in the world? 122
    122. 123
    123. R d Reduce, re-cycle and l d re-use philosophy p p y 124
    124. Save water, materials from renewable sources 125
    125. Solar power 126
    126. Ozone-treated pool to reduce chemical use 127
    127. Organic philosophy 128
    128. More than a fitness club – an environmental academy i l d 129
    129. 2,000 classes for the whole family each month 130
    130. Works with Greenpeace, Brazilian Institute for the Defence of Nature & other environmental charities 131
    131. Ecokids – environmental awareness courses for children 132
    132. Questions 133
    133. These clubs have a clear purpose? 134
    134. They will leave a strong legacy or history 135
    135. If these clubs closed today they would b missed b h ld be i d by members? 136
    136. These members will not leave for another club 137
    137. Members LOVE these clubs 138
    138. These clubs generate g an external buzz 139
    139. Members lives are being improved 140
    140. Staff are passionate and having fun 141
    141. Do not imitate these centres … find your own purpose 142
    142. Get behind a strong purpose NOT short term marketing campaigns 143
    143. It helps you to become valued b members l d by b and unique 144
    144. …and makes the and competition irrelevant 145
    145. Free chapter download 146
    146. www.oxygen-consulting.co.uk www oxygen-consulting co uk 147
    147. Who is Ray Al Wh i R Algar? ? 148
    148. Questions 149

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