1. The Australian Sports Commission conducted market research to better understand participation in sport and physical activity. They identified 10 consumer segments among Australian adults based on their motivations, attitudes, needs and barriers related to sport participation. 2. Two key segments that show potential for increasing club membership are "Sidelined Sportsters" - lapsed members who value team sports but lack time/money, and "Club Wary" - those interested in casual sports but concerned about club commitments and social pressures. 3. To attract these segments, clubs may need to offer more flexible options that address concerns around time, cost and commitment levels.

1. FUTURES JAMThe future of sport & physical activity:
Understanding trends & market opportunities
#VHinnov

2. welcome
join the conversation on twitter with
@VicHealth
@DoingSomeGood
#VHinnov
David Hood
@DavidAHood
Julian Waters-Lynch
@jwaterslynch

4. why the innovation challenge?
Less than a third of Australians get enough physical activity every
day. While many of us play traditional club sport to keep active, it’s
not the answer for everybody.
Recent trends show that participation is shifting. People are
gravitating towards individual and fitness- based sports. Lifestyle,
adventure and alternative sports are on the increase and people are
choosing to participate in activities such as jogging, aerobics, cycling,
group fitness training, fun runs and even military obstacle courses!
More and more people are looking for flexible, social and less
structured ways to get active. So, let’s give it to them!

5. what is the innovation challenge?
The VicHealth is looking for new ideas to get more Victorians
physically active.
We’re challenging you to take sport and physical activity in a
new direction.
You could share in a pool of $400,000 in start-up funding to
test your big idea and make a big impact.

6. what are VicHealth looking for?
Ideas that address the following criteria:
1. Get more people physically active
2. Point of difference: be clever, timely and unique.
3. Equity: reach the hard to reach and move the hard to move.
4. Scalability: able to be expanded, upscaled or transferred
5. Sustainability: will be able to stand on its own two feet.
6. Partners: recruited a project team that brings a unique perspective
7. Sharable: documented your project so we can share it online
8. Ready to roll!: must be able to test within 12 months

7. 1. Dive in to:
• Trends in technology, sport and physical activity to make sense of
them and understand what's driving them
• The needs and values of individuals and communities in your target
market to design better services
2. Explore innovative approaches to idea creation and design of
services - including design thinking and lean startup
3. Discover innovative approaches, programs and initiatives changing
the face of sport and physical activity in Australia and around the world
what’s in store for today’s jam

8. creating the conditions to
spark great ideas

10. http://uxthink.wordpress.com/2010/01/10/apple-design-proces/

12. 1. Be present.
Focus on what you’re doing right now and pay
attention to every aspect of what you’re doing: to your
body, your senses, your thoughts.
2. Accept everything as an offer.
Receive thoughts, ideas, questions or comments of
others as a gift.
3. There are no mistakes.
Only invitations into a new level of creativity: breaking
patterns and allowing new ones to emerge.
4. Make everyone else look good.
You do not have to defend or justify yourself or your
position - others will do that for you and you do that
for others.
5. Be changed by what is said.
Accept your reaction as an opportunity to take a new
or expanded perspective to inspire new ideas.
6. Keep the energy going.
No matter what is given, or what happens, accept it
and keep moving.
7. Serve the good of the whole.
Always carry the question, "How can I best serve this
situation?"
8. Yes and ...
Fully accept what is happening and what is being
offered, and add a NEW piece of information - that is
what allows it to be adaptive, move forward and stay
generative.
Inspired by 7 Basic Improv Principles with thanks to Michelle James (creativeemergence.com)
creative jammin’ principles

13. "If at first, the idea is
not absurd, then
there is no hope for
it." - Albert Einstein

16. why use a human-centred design approach?
“Because it can help your organization connect better with
the people you serve. It can transform data into actionable
ideas. it can help you to see new opportunities. It can help to
increase the speed and effectiveness of creating new
solutions.”
!
http://www.ideo.com/work/human-centered-design-toolkit/

17. http://www.nitibhan.com/2013/01/reflections-on-design-thinking-for.html

18. https://dschool.stanford.edu/

19. shaping great ideas
1. Start with why.
Why are you doing this? What do you believe you can
change? What do you believe you can make different/
better/easier? What do you believe is possible?
2. Build your understanding of the context. Observe. Listen. Learn. Enquire.
3. Identify your target audience.
Who are you designing your service or product for? Be
specific it’s not everybody.
4. Get to know your target audience.
Seek to understand their needs and aspirations, what
motivates them and their challenges. Develop user
personas to provide valuable insights.
5. Identify what problem you are solving for your
target audience.
How does your idea help them to get what they need or
what they value? How does it help them to overcome
challenges and barriers?
6. Prototype and test ideas
Gain insights into customers’ needs by designing and
deploying the smallest amount of functionality possible
(AKA your minimum viable product/service). You can then
evolve the solution based on the insights provided by early
adopters.

20. START
WITH
WHY

21. People don’t buy what you do they
buy why you do it. ~ Simon Sinek

22. Less than a third of
Australians are getting
enough physical activity to
benefit their health.

23. This can lead to increased risks
of chronic disease and mental ill
health, and has been estimated
to cost the Australian economy a
total of $13.8 billion each year.

24. Increasing participation in physical
activity has health, social and economic
benefits. As well as the health gains to
be made by preventing chronic disease,
the benefits include promoting mental
wellbeing and social connections, and
increasing productivity.

25. Why are you here?
What are you currently
working on in relation to
sport & physical activity?

27. what are trends?
A trend is defined as an important pattern of social, economic
or environmental activity that will play out in the future.
A megatrend is defined as a major shift in environmental,
social and economic conditions that will substantially alter
the way people live. Megatrends occur at the intersection of
multiple trends.

28. exploring the future

30. THE FUTURE OF AUSTRALIAN SPORT
SIX MEGATRENDS SHAPING THE SPORTS SECTOR
Probable
Plausible
Preferable
Possible
Scenarios
Wildcard

31. “The more people are
locked into committed &
contracted activities the
more time fragmented they
become. Consequently they
seek, often serendipitous,
opportunities to play or
watch sport that fit into a
busy schedule.”

32. 1. A PERFECT FIT
Participation rates in aerobics, running, walking, along
with gym membership, have all risen sharply over the
past decade while participation rates for many
organised sports have held constant or declined.
People are increasingly playing sport to get fit, rather
than getting fit to play sport.
For such people the notion of winning is changing.
They are more concerned with beating a personal
time or fitness target than beating a competitor.

33. “Adventure sports provide
people with an opportunity
to break free”

34. The rise of lifestyle, adventure and alternative sports which are
particularly popular with younger generations. These sports
typically involve complex, advanced skills and have some
element of inherent danger and/or thrill seeking.
They are also characterised by a strong lifestyle element and
participants often obtain cultural self-identity and self-
expression through these sports. These sports are likely to
attract participants through generational change and greater
awareness via online content (e.g. YouTube, Facebook, Twitter).
There is strong viewer demand for extreme sports videos on
the internet and television. These sports are also finding their
way into the Olympic Games with the most recent addition
being BMX cycling introduced at the 2008 Beijing Olympics.
International associations for skateboarding and rock climbing
are making substantial efforts to have these included as
Olympic sports in the future.
2. FROM EXTREME TO MAINSTREAM

35. “The Homeless World Cup really
changed my life and introduced me to a
whole new culture and whole new
world.”

36. The broader benefits of sport are being increasingly
recognised by governments, companies and
communities. Sport can help achieve mental and physical
health, crime prevention, social development and
international cooperation objectives.
Sport for children and adults is an effective means of
helping to reduce the rising rates of obesity and chronic
illness. If managed appropriately, it can be an effective
mechanism to help achieve social inclusion for
marginalised groups and reduce crime rates.
Sport can also build bridges to other countries and
achieve overseas aid, peace, development and foreign
policy objectives.
3. MORE THAN JUST SPORT

37. “It's not the disability that defines you; its how
you deal with the challenges the disability
presents you with. We have an obligation to
the abilities we DO have, not the disability”

38. Currently 14% of Australians are over 65. This is
forecast to reach 25% by 2056.
!
18.5% of Australians have a disability and 52% of
people over 60 have a disability.
!
25% of Australians are foreign-born and Australia
will become more multicultural in the future.
Different cultures have different sporting
preferences and recreation habits.
!
This will change the types of sports we play and
how we play them. To retain strong participation
rates, sports of the future will need to cater for
senior citizens.
4. EVERYBODY’S GAME

39. The last Asian Games were held in
2010 Guangzhou, China and
featured 9,704 athletes from 45
nations competing over 16 days in
42 sports and 58 disciplines at 476
events, supported by 60,000
volunteers.

40. Population and income growth throughout Asia will
create tougher competition and new opportunities for
Australia both on the sports field and in the sports
business environment.
Asian countries are investing heavily in sports
capabilities and, especially in the case of China, have
rapidly improved gold medal outcomes at the Olympics
over recent decades.
As disposable incomes grow, the populations of Asian
countries are becoming more interested in sport. This
may create new markets for sports television, sports
tourism, sports equipment, sports services and sports
events.
5. NEW WEALTH, NEW TALENT

41. “Basketballer Andrew Bogut tops
Aussie athletes on young rich list”

42. Market forces are likely to exert greater
pressure on sport in the future. In some
sports, elite athletes have had considerable
pay rises and large sponsorship deals. This has
not occurred in other sports.
Sports with high salaries may draw athletes
away from those with lower salaries.
Loosely organised community sports
associations are likely to be replaced by
organisations with corporate structures and
more formal governance systems in light of
market pressures.
The cost of participating in sport is rising and
this is a participation barrier for many people.
6. TRACKSUITS TO BUSINESS SUITS

43. Themes & Drivers
Technology
Organisation
Tribes & Trust
Experience
Now

44. “Experiences in the sharing economy derive their
value from that unique personal experience from
local experts that customers typically cannot get
from large corporations.”
“The currency of the new economy is trust”
“Shaping serendipity”

52. Fondo is a mindset. While there is a
concrete goal associated with
completion, a truly successful fondo
means doing more than just covering
the distance requirement. It means
deviating from the normal routine. It
means going on an adventure.

53. Strava is a community of athletes from
all over the world. We are a tribe.
Alone or together, we strive. Strava
lets you experience what we call
social fitness - connecting and
competing with each other via mobile
and online apps. No matter the
weather, day after day, we prove
ourselves.

64. LARPing

65. joggling

66. aerial yoga

67. slacking

68. chess boxing

69. swamp soccer

70. wife carrying

71. octopush

72. bossaball

73. extreme ironing

74. Themes & Drivers
Technology
Organisation
Tribes
Experience
Now

75. WORLD CAFÉ

76. WORLD CAFÉ ROUND ONE
What trends are you noticing in
your community, club or sport?
1. In technology?
2. In interests and behaviour?

78. MARKET SEGMENTATION STUDY
AUSTRALIAN SPORTS COMMISSION

80. ASC market research
• The Australian Sports Commission (ASC) in consultation
with sport sector partners identified a need for research to
better understand what is driving the Australian
community’s participation in sport and other types of
physical activities.
• Market Segmentation involves dividing a market into
groups of people/consumers with similar needs, attitudes
and behaviours.

81. The purpose of the Market Segmentation Study for both
Adults and Children was to uncover, explore, identify and
clearly articulate the different motivations, attitudes, needs
and barriers that influence people’s decisions and
behaviours in relation to sport and, in particular, participation
in club-based sport.
The study is designed to help clubs understand the market
and more effectively target their approaches to particular
segments.
ASC market research

82. MARKET SEGMENTS
ADULTS

83. key insights
1. Sport delivery that focuses on competition rather than fun and
enjoyment
2. A lack of flexibility around the scheduling of sport in traditional
sporting clubs
3. Organising individuals and teams according to talent rather than
retaining friendship groups
4. Limited opportunities for people with limited sports competency
to join sporting clubs
5. Self-consciousness amongst adolescents and embarrassment by
their lack of sporting ability.

84. market segments: adults
The Study identifies ten consumer segments among the
Australian adult population.
Current club member segments:
1. Loyalists
2. Socially Engaged
3. Sport Driven
4. Apathetic Clubbers
!
!
Non-club member segments:
5. Sidelined Sportsters
6. Club Wary
7. Ponderers
8. Self Focused
9. Sport Indifferent
10. Sport Atheists

85. segments of non-club members
Segments with high
potential for acquisition:
5. Sidelined Sportsters
6. Club Wary
7. Ponderers
!
!

86. sidelined sportsters

87. sidelined sportsters
Sidelined Sportsters are into sport and value the opportunity it provides to have some personal time,
relax and break their routine. They particularly enjoy being part of sports teams, with the camaraderie
and friendships it engenders. The competitive aspect of sport is also a key component in their
enjoyment.
They would be quite comfortable at sports clubs and with their ability to hold their own in a sporting
context. They were often members of clubs as children (even up to adulthood) and it will not have always
been their choice to stop but rather their changing circumstances.
They retain a very positive perspective on clubs and the social and physical benefits of being involved.
What they need is greater flexibility from clubs, but they don’t necessarily see this as a club’s
responsibility. They see it as being their barrier, that they simply have other priorities and they cannot
commit as much time or money as they might have in the past.
This is a key target group for acquisition as they have all the hallmarks of keen but lapsed sports club
members. Indeed they may have been Loyalists or Socially Engaged when they were younger or before
they stopped being a member. Additionally, given their interest in sport overall, there may be
opportunities to attract this segment with products outside of the traditional club offer that address
concerns with time and cost commitments.

88. club wary

89. club wary
The Club Wary are very positive about sports, though they want to enjoy their sport at a slightly less serious
and competitive level. It is as much about challenging themselves and doing something active with friends.
Club Wary are not particularly critical of clubs but from past experiences as members, they have some
reservations. While they appreciate the social and emotional benefits that clubs can offer, they see clubs as
requiring significant commitment and lacking in flexibility. The Club Wary do not always feel they will fit in at
clubs and can be slightly self conscious about playing sport with others. These are not unlike Sport Driven
(who are club members) in that they would prefer not to get heavily involved in the social and administrative
aspects of the club, instead their preference is just for sports and facilities. There are more multicultural
members in this segment than in others.
The Club Wary are a realistic target for acquisition, but clubs need to be proactive in seeking them out and
communicating with them. They want to get more involved in sports clubs but often don’t know where to
find information. Direct mail (inviting them to a demonstration) and local newspapers are ideal sources
coupled with easily accessible online information.
To attract this segment, clubs and or sporting opportunities beyond the traditional club structure will need
to avoid a sense of over commitment or competition (both in time and cost) and obligation when messaging
and in the products offered.

90. ponderers

91. ponderers
Often married with children at home, they are active people but commitments to work and family
take up much of their time. They fit in a reasonable amount of physical activity but this is mainly
recreational and focused on activity that can be done alone and often on an ad hoc /irregular basis.
Essentially, they try and do activity around other commitments.
They do not need to be convinced about the benefits of sport and physical exercise and they derive
strong personal satisfaction and achievement from participation. Typically they were members of
clubs into adulthood, until for practical reasons they felt they had to give up. They have a fairly
positive view of clubs both socially and as a way to support health and fitness but they will be
weighing this up against the time and cost involved in being a member.
Though less competitive than many other segments, most show at least some interest in joining
clubs. Clubs can be seen as a way to escape their normal routine, and membership would be
embraced with flexible participation and cost options. Encouraging membership is about
convincing them they can join without the fear of neglecting their other commitments. Additionally,
there may be opportunities to attract this segment with products outside of the traditional club
offer that address concerns with time and cost commitments but provide an avenue to encourage
fitness and sport participation.

92. MARKET SEGMENTS
CHILDREN

93. key insights
1. providing sport delivery that focuses on fun and enjoyment
rather than competition
2. providing products and services that are inclusive; promote equal
treatment; and focus on fun and participation regardless of skill
level and ability
3. providing a variety of pricing packages and different types of
membership that allow for flexibility of attendance and time
commitment
4. identifying the potential for growth opportunities with regards
to sport club membership by understanding the needs of
different segments and the products they may be attracted to

94. segments of existing club members

95. segments of non-club members

96. thrifty enthusiasts

97. The Thrifty Enthusiasts make up around one in 20 Australians aged five to 13 years and are the
smallest of
the non-club member segments. They are very positive about physical activity and sport in terms of
the physical, mental, social and self improvement benefits, and don’t personally have any barriers to
sport participation. While they don’t do physical activity with a club, most do organised physical
activity through other organisations, school or courses. They are also participating frequently —
five times a week on average. Similarly, parents of the Thrifty Enthusiasts are very positive towards
clubs despite only one in 10 being current members.
This segment has high acquisition potential, with 80 per cent interested in future club membership
(the same number have been members in the past). There are few perceptual barriers to joining a
club, however cost of participating in club-based sport is a barrier.
To appeal to this segment, clubs should consider products that centre on making club-based sport
more accessible through flexible membership pricing options, two-for-one memberships and
providing value for money in terms of multiple sports. More flexibility with participation times is
also appealing for parents. Children in this segment — as well as their parents — need to feel that
clubs are inclusive and promote equality regardless of skill level.

98. ponderers

99. ponderers
Ponderers make up one in five Australian children aged five to 13 years. They are less likely to come from
higher income households (mostly under $70k per annum) and are over-represented by the culturally
and linguistically diverse (CALD).
Ponderers are generally less active in sport than other children and are less likely to do organised
activities (three in five) however most do participate in physical activity for exercise or recreation. In
general, Ponderers have relatively positive attitudes toward sport especially in terms of the fun and
social elements of sport participation.
While Ponderers don’t need to be convinced about the benefits of sport, they do have some reservations
about clubs being too authoritative and competitive — in turn taking the fun out of sport. Their parents
are less engaged in clubs and their perceptual barriers will need to be addressed as they are likely to
perceive clubs to be inflexible and demanding of time beyond sport. Parents may also have concerns
about the costs of participating in club-based sport.
Ponderers are a potential segment for acquisition as they show a high interest in sport involvement if
they had information on how to go about it, as well as high interest in club membership (three in five).
For this segment, clubs will need to provide opportunities for fun and social participation without overt
competitiveness. They must also address practical concerns about cost and commitment.

100. “In line with the changing consumer
preferences, both Market Segmentation
Studies identified that sports will need to
adapt their offerings if they are to stay
relevant to the Australian consumer.”

102. design thinking

103. what are personas?
Personas are fictional representations of your target
audience that help you to understand them better. Well
thought out and well researched personas make it easier for
you to design and deliver services that meet your target
audience’s specific needs and expectations, while addressing
their unique challenges and communicating in their language.
!
The strongest personas are based on market research in
combination with insights gathered through conversations,
surveys and interviews with your target audience.

106. What’s their history in
relationship to sport &
physical activity?
What’s their routine? Daily,
weekly, monthly, annually?
What are their personal
goals around health &
fitness? What motivates
them?
What are the challenges
they face to engaging in
physical activity? What are
the constraints/barriers?
What sort of experience are
they looking for? What sort
of interaction do they want
to have with others/you?
What sort of thing might
you expect them to say
about their ideal experience
and why they love it?

107. LIGHTNING
TALKS

109. "Lean Startup" is a system for developing
a business or product in the most
efficient way possible to reduce the risk
of failure.
It is an approach for launching businesses
and products that treats all product and
business ideas as assumptions (or
hypotheses) that must be validated by
rapid experimentation in the
marketplace. The approach relies on
scientific experimentation, iterative
product releases, and customers
feedback to generate validated learning.

110. “The fundamental activity
of a startup is to turn
ideas into products,
measure how customers
respond, and then learn
whether to pivot or
persevere. All successful
startup processes should
be geared to accelerate
that feedback loop.”

111. lean startup
The core idea is validated learning. Otherwise we ‘achieve
failure’ building something that no one wants.
The key is to identify assumptions - would people actually buy
or do this? Not by building the whole product, but by building
a Minimum Viable Product (MVP).
“..the minimum viable product is a test of a specific set of
hypotheses, with a goal of proving or disproving them as quickly as
possible. One of the most important of these hypotheses is always:
what will the customer care about? How will they define quality?”

114. “By the time that product is ready to be
distributed widely, it will already have
established customers.”

115. The challenge is to identify an
experiment that will test the assumption
- this is validated learning.

116. What are your assumptions?

117. What experiments could you do to
test your assumptions?

118. shaping great ideas
1. Start with why.
Why are you doing this? What do you believe you can
change? What do you believe you can make different/
better/easier? What do you believe is possible?
2. Build your understanding of the context. Observe. Listen. Learn. Enquire.
3. Identify your target audience.
Who are you designing your service or product for? Be
specific it’s not everybody.
4. Get to know your target audience.
Seek to understand their needs and aspirations, what
motivates them and their challenges. Develop user
personas to provide valuable insights.
5. Identify what problem you are solving for your
target audience.
How does your idea help them to get what they need or
what they value? How does it help them to overcome
challenges and barriers?
6. Prototype and test ideas
Gain insights into customers’ needs by designing and
deploying the smallest amount of functionality possible
(AKA your minimum viable product/service). You can then
evolve the solution based on the insights provided by early
adopters.

120. what’s next?
1. Apply. Find out all you need to know and submit your
application for the VicHealth Innovation Challenge at
http://challenge.vichealth.vic.gov.au/
Get in quick as applications close Friday 29 August.
2. Join us for the Rapid Prototype Workshop next
Tuesday 12 August. Register here. It’s FREE!
3. Get out there and start testing your ideas!

121. thanks for joining us!
We work with pioneering communities,
organisations, leaders & entrepreneurs
to build pathways to better futures.
!
doingsomethinggood.com.au