FUTURE OF GROUP FITNESS May 2012

MEMBERSHIP UNLEASHED
FUTURE OF FITNESS

1 LES MILLS INTERNATIONAL © 2011

THE FUTURE OF FITNESS Health & Fitness
CHALLENGES
facility attendance has
§ LES MILLS white paper highlights become the biggest
big challenges we face if we are to adult “sport” in the
survive Western world. Bigger
1.  Aging obese markets than football, tennis
2.  Fitness Seekers want other options
and golf combined
3.  Play drives activity
4.  Activity must offer something more


FUTURE CHALLENGES
AND OPPORTUNITIES
1.  The number of people who fit our
current offerings is reducing
reflected in a population that is
aging and suffering from obesity

2.  Fitness seekers want better
quality products, more control and
mobility, and ultimately more
choice in how they exercise


FUTURE CHALLENGES AND
OPPORTUNITIES
3.  “Play drives activity” with growth in two
distinct areas:
§  Blends of game, sport and dance will offer fitness
and activity that are driven by fun, pleasure and
sociability
§  ‘Exergaming’ consumers will seek fitness and
activity as a game driven by enjoyment.
§  Technology will evolve this segment into
‘exertainment’ with rich sensory experiences, and
eventually virtual realities that involve movement,
social networks, escapism and new experiences.


FUTURE CHALLENGES
AND OPPORTUNITIES
4.  Activity offers ‘more’…
§  ‘Relationships and community’, in
which people seek
communication, connection, and
shared experiences
§  ‘The search for meaning’, in which
people place emotional, social and
spiritual integrity at the core of
their beings
§  Low-tech solutions like returning to
nature, opting out or disconnecting
§  New techniques like proactive
medication


HOW LES MILLS PARTNERS GO FROM GOOD TO GREAT

LES MILLS INTERNATIONAL © 2011

1. THEY IMPLEMENT THE LES MILLS GX SYSTEM


2. THEY USE THE RIGHT PROGRAM SOLUTIONS


AND SIMPLE BRANDED MEMBER ONBOARDING MODELS

Personal Training
Small Group Training
Group Fitness Training
Event Training

9 LES MILLS INTERNATIONAL© 2011

3. THEY COMMIT TO REGULAR WORLD CLASS INITIAL
AND ADVANCED INSTRUCTOR TRAINING


4. THEY USE THE NEW CLUB PERFORMANCE TOOLS


5. THEY IMPLEMENT A ROBUST GX REPORTING SYSTEM


6. THEY HOST BROADWAY CLASS GX EVENTS
§ Point of sales training that leverages
group fitness as a key membership
sales tool
§ Les Mills has formulas for hosting
launch and relaunch events, on 3
different budgets, that are proven to:
– enhance member retention and
acquisition
– deliver significant ROI
– transform group exercise into a profit
centre


7. THEY BUILD BROADWAY CLASS ENVIRONMENTS
§ Using the best professional
functional and aesthetic design
you can afford
§ Pay special attention to
–  Lighting
–  Capacity Space
–  Flooring
–  Staging
–  Wall décor and mural
–  Sound & Microphones
–  Exits/ Entry points
–  Equipment Storage
–  Window/Mirror Clings


ENVIRONMENT EFFECTS
ATTENDANCE

THE AMBIENCE OF THE STUDIO.

70% MEMBERS RATE AS A KEY ATENDANCE DRIVER.

Neilsen Research ( 2008)

ENVIRONMENT.
CREATE MORE A COMPELLING AMBIENCE.


ASPIRATIONAL WALL MURALS.
USE SIMPLE INEXPENSIVE PHOTO BLOWUPS.
Inexpensive effects – photo blow-ups
.

§  Les Mills World of Fitness, Auckland*, New Zealand
§  12,000 members – current membership NZ$110 per month
§  5,000m2 / 53,500 ft2 Fitness Only Club
§  2,000m2 / 21,500 ft2 Group Fitness Area
§  4 studios – largest is 700m2 / 7,500 ft2
§  Over 150 classes per week
§  50%+ of total attendances
§  65 part time Instructors
§  9,000 + Group Fitness visits per week
§  M’ship retention rate 80% (IHRSA formula)

*City of 1.5M people with 175 health clubs


26

7. THEY LEVERAGE THE NEW US CONSUMER LES
MILLS PUMP INITIATIVE
§  Beach Body LES MILLS
PUMPTM Home DVD
§  Biggest marketing initiative
since the global launch of
BODYPUMPTM in 1997
§  Multi Million $$ Infommercial
§  Massive consumer drive of
new members to sites with
LES MILLS Programs
§  US launch May 2012


CLUB PERFORMANCE METRICS
LES MILLS GLOBAL STUDY 2011-2012


GX POWERED BY LES MILLS FROM GOOD TO GREAT

§  THE AVERAGE LES
MILLS LICENSEE
FACILITY HAS
500 MORE MEMBERS
PER CLUB THAN THE
GLOBAL AVERAGE

(1) Scoreboard Round 1 and 2
(2) Scoreboard Round 2



§ THE MAJORITY OF LES
MILLS™ PARTICIPANTS
WANT TO CONTINUE TO
TAKE LES MILLS™ IN NEXT
12 MONTHS



§ LES MILLS GX MEMBERS
ATTEND THEIR FACILITIES
ALMOST TWICE AS OFTEN

AC Nielsen (2010); IHRSA Consumer Report USA (2011



§ THE MAJORITY OF LES
MILLS™ PARTICIPANTS
WOULD ABSOLUTELY OR
STRONGLY RECOMMEND
LES MILLS™
PROGRAMS TO THEIR
FRIENDS AND FAMILY
AC Nielsen (2010); IHRSA Consumer Report USA (2011)



§ LES MILLS LICENSEES
TEND TO HAVE HIGHER %
OF CLUB ATTENDANCE
PARTICIPATING IN
GROUP EXERCISE



§ LES MILLS CLASSES
ATTRACT HIGHER
TOTAL CLASS
ATTENDANCE THAN
OTHER CLASSES, ON
AVERAGE



§ THE AVERAGE LES MILLS
LICENSEE ATTRACTS
AROUND 600 WEEKLY
GROUP EXERCISE
ATTENDANCES THROUGH
THE YEAR(3)


YOUR NEXT STEP

Schedule a Membership Growth Strategy Review
No Cost, No Risk, No Obligation
steven.renata@lesmills.com


FUTURE OF GROUP FITNESS May 2012

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FUTURE OF GROUP FITNESS May 2012