Ray Algar, Healthy Business Conference Gothenburg Sweden 2007

1. What does your fitness club stand for? The business case for building a unique business Part 1 © Ray Algar – Oxygen Consulting 2007

2. Find out more about me here

3. … or Google me

4. I want to talk about creating a unique and different fitness club business

5. I will talk about computers, Coca-Cola, a chair, an airline and fitness clubs…it will make sense!

6. PART 1 - today Why clubs need to be unique and different

7. PART 2 - tomorrow Four fitness clubs that members love

8. Why does your club need to be unique and different?

9. Everywhere, we are faced with more and more choice

11. Let’s look at Sony laptop computers

14. Welcome to the fitness club market

15. This is how customers may see you!

16. So it becomes a fight over price

17. Fly for free

18. Are fitness clubs becoming commodities like coffee beans?

19. Winners and losers

20. REAL competition …welcome to New York

21. More competitors will be arriving – just give it time

22. Great price for Swedish members

23. Time to focus on extraordinary service?

25. So consumers have choice, but how good are these clubs?

26. Let’s go on-line and find out

27. The health club experience – the real uncut version

32. 64% 36% All opinions 53% 47% Prospective members 95% 5% Past members 60% 40% Current members Negative opinion Positive opinion

33. 95% 5% Past members Negative opinion Positive opinion

34. Do clubs care?

35. … during the tour, yes!

36. ‘ the best salesman ever’

37. ‘ cup of coffee bought for me and all the trimmings’

38. ‘ I remember how friendly the sales lady was in trying to get me to join up’

39. … but after the honeymoon period

40. ‘ After the initial session, they have never checked my circumstances or how I was doing over my two years of membership’

41. ‘ The clubs are not interested in their members’

42. ‘ Once I had joined, she (sales staff) would blank me when I said hi to her’

43. Membership factors: 87% negative – cancellation, notice period, debt collectors

44. Read this before you sign

45. ‘ I was not aware of the 12-month commitment period until I tried to cancel and had not been given a copy of the contract’

46. ‘ Beware smiling salesman offering “great deals” and asking you to sign contracts with very small print’

47. ‘ I visited once before diagnosed with breast cancer. I informed the manager…sent five letters. No response apart from letters from the debt collection agency’

48. Chandler wants to quit the gym

49. Friends video

50. Would they recommend to family, friends and colleagues?

52. 317 reviews 10% promoter rate for 6 chains

53. 22% highest chain 7% lowest chain

54. … during the tour, yes!

56. Little positive word of mouth being harnessed

57. Welcome to low-cost, budget clubs Door left wide-open for budget clubs 183 Kr/€19/month

58. 159 Kr/€17/month

59. 75 Kr/€8/month

61. “ There will be no UK mid-market clubs in five years” – Budget chain Director

63. So, where do you want to be? Striving to provide a remarkable service or competing on price?

64. So, we need a strong purpose

65. ‘ Stand for something, or fall for anything’ Malcolm X

66. The challenge is for members to feel a strong sense of belonging and connection

67. Members need to fall in love with your club

68. Porsche creates passionate customers

70. A strong purpose provides a compass for your club

72. A strong purpose helps your fitness club and brand to become unique

73. When you are different and valued, customers will pay more

74. Coca-Cola 20Kr/€2.12 Supermarket own brand - 3 KR/€0.30 590% premium

75. Herman Miller - A company with a strong purpose

76. Is this the most comfortable office chair in the world?

77. Yours to own and love for 13,500 Kr/€1,440

78. So, what is your club going to stand for?

79. ‘ Stand for something, or fall for anything’ Malcolm X

80. A small company can have a very big cause

81. Market positioning is creating a clear, distinctive and attractive market position in the minds of stakeholders

82. Market positioning helps your fitness club and brand to become unique

83. It needs to be exciting, different and valued

84. Positioning map – car brands Exclusive Affordable Luxurious Fun/Great driving experience Porsche Ferrari Aston Martin Jaguar Massarati BMW Mini Smart Skoda Audi TT Mercedes Bentley ? VW Beetle

85. Which of these do you want your fitness club to own? Convenient Friendly Exclusive Fun Affordable Relaxing Effective Profess- ional Attributes

86. Professional

87. Effective

88. Relaxing

89. Affordable

90. Exclusive

91. Friendly

92. Convenient

93. Fun

94. Developing your market position. What do members love about your club?

95. What do members want from your club?

96. Can new research of members, staff, suppliers create insights for a positioning strategy?

97. Be clear on the attribute you want to own

98. Developing a positioning statement: The friendliest fitness club you will ever join

99. Some other fitness club positioning statements

102. This should NOT be a superficial slogan. It guides everything you do

103. Bringing your market positioning to life What the club will measure Brand Value Market position Physical attributes & systems How staff communicate and act

104. Bringing your market positioning to life 2. Brand value Caring 3. System Member tracking system 4. Staff Actions Work hard to achieve member objectives 1. Positioning The friendliest club you will ever join 5. What the club will measure Members judge staff engagement

105. What if my fitness club/brand has no distinctive qualities?

106. Discover one. Make it the best it can be. Make it impossible for a competitor to copy

107. Key points and actions

108. Discover the unique market position that you wish to hold

109. Ensure it is clear, distinctive and profitable

110. Measure actions against your market position

111. Ensures the brand lives and breathes your market position

112. Aim to make your club/brand remarkable

113. Ensure you have the resources to execute the strategy?

114. Ensure you have the passion and patience to achieve your unique position?

115. PART 2 - tomorrow Four fitness clubs that members love

116. Thank you Read more in Mastering Health Club Management, my new book – 195 Sk/€20 (325 Sk) www.oxygen-consulting.co.uk