© 2006 les mills international limited les mills group fitness formulas click to edit master text...

© 2006 Les Mills International Limited© 2006 Les Mills International Limited

LES MILLS GROUP FITNESS FORMULASClick to edit Master text styles

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© Les Mills International 2004 1



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TAKE YOUR GROUP FITNESS BUSINESS

TO THE MAX


LES MILLS GROUP FITNESS FORMULAS Click to edit Master text styles

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© Les Mills International Ltd Group Fitness Management 2007

TODAY’S TOPICS The Future of Group Fitness

The Size of the Group Fitness prize

Introducing Les Mills International

Group Fitness powered by Les Mills

The Four Drivers of Group Fitness

1) LES MILLS™ Group Fit Formulas

2) LES MILLS™ Group Fitness Training

3) LES MILLS™ Group Fitness Management system

4) LES MILLS™ Group Fitness Marketing materials

Next Steps



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THE FUTURE OFGROUP FITNESS



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Experience and transformation economies are booming (1)

Wellness spending in the US alone will surpass one trillion dollars by 2010 (2)

Health clubs are at the sharp end of the experience economy - gym attendance is becoming the biggest sport in the world (3)

(1) Pines and Gilmour, The Experience Economy 1999(2) Paul Zane Pilzner; The Wellness Revolution: How to make a fortune in the Next Trillion-Dollar Industry

2002(3) Phillip Mills; 2004

FUTURE MARKET FOR GROUP FITNESS



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(4) Phillip Mills; 2005(5) James J. Annesi; Effects of Minimal Group Promotion on Cohesion and Exercise Adherence 1999(6) IHRSA Retention Report 2004

Group Fitness is the vanguard of the fitness industry and has huge potential as a form of entertainment (4)

“90% of all exercisers report that they would prefer to work-out in a group.” (5)

“Increase in group fitness participation is a key indicator of club growth and profitability” (6)

FUTURE MARKET FOR GROUP FITNESS

Group Fitness is at the sharp end of the experience economy!

Example: Evolution of the exercycle

1980 Old-fashioned stationary bike

1985 Computerised bike

1990 Cardio theatre

1995 Spinning class

1999 RPM™

CREATING MORE ENTERTAININGEXERCISE ENVIRONMENTS



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THE SIZE OF THEGROUP FITNESS PRIZE



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THE SIZE OF THE PRIZE

CALCULATE CURRENT OCCUPANCY

Calculate total square metres of your Group Fitness studio(s)? _______

Divide this number by 4 (if using metres) or 40 (if using feet) (1) _______

This number represents your Maximum Class Capacity (MCC) _______

How many classes are at:

75% MCC, or _______

Between 30% - 75% MCC, or _______

Less than 30% MCC _______

Ask yourself these questions:

How much of the prize am I giving up with my present programming?

How much of the prize could I gain with better programming?

WORKBOOK

SHEET 1

(1) Les Mills International recommends circa 4 square metres or 40 square feet per person



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EXAMPLE OF SINGLE STUDIO WITH CAPACITY OF 30

Current weekly attendance = 500

Target weekly attendance = 1,000

500 extra attendances ÷ 1.75* = 285 new members

285 x (cost of membership= $142,500$500 annualised)

Achieve 75% of income = $106,875



* Average member attendance per week - IHRSA 2004




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EXAMPLE OF SINGLE STUDIO WITH CAPACITY OF 30

How much would you spend to achieve $142,500 extra member revenue?

Increased GFM wages and incentives $ 6,000 Increased instructor wages and incentives $ 8,000 Studio improvements $ 7,500 Additional marketing costs $ 8,000 Licence fees $ 2,500 Increased training costs $ 2,500

TOTAL $34,750

Return on investment (on $142,500) 410%

Return on investment (on 50% of income - $71,250) 205%




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ADDITIONAL FACTORS IF YOU HAVE VERY BUSY STUDIOS

Independent research confirms that members at Les Mills’ licensees visit their facilities on average 2.9 times per week*

At Les Mills Auckland, busy studios provided a number of profitable benefits:

improved retention

ability to increase membership prices significantly over time

new members due to the reputation of Group Fitness

Ultimately, Les Mills Auckland chose to invest in increased Group Fitness space to maximise attendance levels while accessing all the other benefits of group exercise as a competitive advantage

* AC Nielsen Survey, 2006




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Add up your weekly class attendances

TOTAL ____________

What could this be if your instructors were delivering world-class, life-changing experiences every time?

POTENTIAL TOTAL ____________

Take the difference between these two numbers, divide it by 1.75 (IHRSA average member weekly attendance) and multiply it by your annual membership rate

POTENTIAL INCOME GAIN $ ____________

Assume a 50% success rate of the income gain to be conservative

50% POTENTIAL INCOME GAIN $ ____________

CALCULATE REVENUE

WORKBOOK

SHEET 2

THE SIZE OF THE PRIZE FOR YOUR CLUB

WHAT IF YOU WERE THE BEST IN:

Your suburb?

Your city?

Your region?

Your country?

WHAT WOULD IT DO FOR:

Your break-even?

Your retention?

Your sales?

Your profit?

MANY CLUBS JUST WANT TOBREAK EVEN IN GROUP FITNESS

RECOGNISE THE BUSINESSPOTENTIAL OF GROUP FITNESS

• Club of 1,470 members• Annual GF re-launch • Signed up140 new members • Euros 6,000 investment• Euros 62,000 income • >10 times payback • 4 hour evening concert • Theatrical event • 400 attendees • 200 non-member guests • 70% conversion rate • Cross-club teamwork



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GROUP FITNESS POWERED

BY LES MILLS



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Licensed to over 11,000 clubs in more than 70 countries

Occupying 20% of world’s health clubs’ Group Fitness timetables

Servicing the world with a unique global agency network

60,000 Les Mills’ certified elite fitness instructors

In excess of 4 million consumers per week doing Les Mills’ classes

INTRODUCING LES MILLS INTERNATIONAL



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Les Mills World of Fitness, Auckland, New Zealand

11,000 members - Membership average Euros 60 per month

5,000m2 / 53,500 ft2 Fitness-only club

2,000m2 / 21,500 ft2 Group Fitness area

4 GF studios - largest is 700m2 / 7,500 ft2

Over 150 classes per week

50% of total attendances

65 part-time instructors

7,000+ Group Fitness visits per week

LES MILLS AUCKLAND – CLUB BASEDGROUP FITNESS MODEL FOR THE WORLD



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Source: Conversa Global CVM Study 2004

Notes: (1) Sample size n = 644; Countries n = 10

38% of fitness clubs surveyed believed there were no competitors for LES MILLS™ programmes

Ratings by Les Mills’ licensees were on average 25% higher than those given to Les Mills’ competitors

Key reasons why clubs purchased LES MILLS™ Group Fit Formulas were:

recognition of the contribution to growing and retaining membership

the quality of the programmes

demand from club customers

INTERNATIONAL RESEARCH REVEALS STRENGTH OF THE LES MILLS™ SYSTEM



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THE FOUR DRIVERSOF GROUP FITNESS



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THE FOUR DRIVERS OF GROUP FITNESSWORKING HARD TOGETHER

GROUP FITNESS MARKETING MATERIALS

GROUP FIT FORMULAS

GROUP FITNESS TRAINING

GROUP FITNESS MANAGEMENT SYSTEM



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GROUP FIT FORMULAS



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Programme development means identifying the most popular activities people want

Functional strength training

Mind / body

Martial fitness

Step training

Indoor cycling

Sports conditioning / HiLo

Dance

Create easy-to-follow, results-driven, enjoyable choreography

Use current Top 40 music with maximum appeal to the widest market

Base your programme development on commercial reality. Be cautious of short- term fads

DRIVER ONE

WHAT DO PEOPLE WANT?MODEL FOR PROGRAMME DEVELOPMENT



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Identify the largest market categories

Using pre-choreography produced by world-leading instructors

Test and refine the programmes in live club situations

Listen to thousands of songs each quarter for music selection

Always base our programmes on a commercial programme formula

Programmes developed to meet consumer needs based on independent market research

EXAMPLE of sustainable Group Fit Formulas

DRIVER ONE

WHAT DO PEOPLE WANT FROM GROUP FITNESS?



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Ride the rhythm for the athlete within

The real weights workout where I feel strong and get challenged

The lively step workout where I get lifted

The dance workout where I get high on the feeling of dance

The cardio conditioning workout inspired by sports training

The martial arts workout where I am unleashed

The yoga, tai chi, pilates workout where I feel strong and centre, long and

strong

The low-impact workout that lets you choose just how hard you workDRIVER ONE

THE ESSENCE OF THE LES MILLS™ GROUP FIT FORMULAS



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DRIVER ONE

WHAT GROUP FIT FORMULAS DO CLUBS WANTTHE GLOBAL MIX – JUNE 07

Across its range of 8 GF formulas , Les Mills has licensed approx. 37,000 programmes to over 11,000 clubs

BODYPUMP™

BODYCOMBAT ™

BODYFLOW®

RPM ™

BODYJAM ™

BODYATTACK ™

BODYSTEP ™

BODYVIVE ™

9,952



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DRIVER ONE

More than 90% visit their clubs at least twice a week to specifically take part in Les Mills’ classes(1)

Nearly 40% visit at least 4 times a week to take part (2)

Average of at least 2.9 visits a week compared to IHRSA estimate of 1.75 visits (3)

75% of members surveyed said they might change clubs if they stopped offering Les Mills programmes (4)

Over 90% said they would definitely recommend Les Mills programmes to their friends (5)

INDEPENDENT RESEARCH REVEALS THE STRENGTH OF THE LES MILLS™ SYSTEM

(1- 5) AC Nielsen Survey 2006

Notes: Sample size n = 1002 Country: USA



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GROUP FITNESS TRAINING



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Build on instructor strengths to create stars

Choreography

Technique“Physical Execution”

Coaching“Teaching Skills”

Fitness magic“Theatre Skills”

Connecting“Communication”

DRIVER TWO

FIVE KEY ELEMENTS OF TEACHING



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Module training

Certification

Quarterly workshops

Advanced instructor training

Technique intensives

Quality assessments

Team training for quarterly launch

Individual tuition

Distributor driven

Club driven

A QUALITY GROUP FITNESSTRAINING PROCESS

DRIVER TWO



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.

* Recruitment needs to reflect the essence of each programme

1. Group Fitness Manager selects instructors for Module*

2. Group Fitness Manager prepares instructors for Module

3. Instructors attend LES MILLS™ Module training for 2 or 3 days

4. Group Fitness Manager coaches instructors to be class-ready

5. Group Fitness Manager ensures instructors submit videos

6. Les Mills assesses instructor videos up to 12 weeks post-Module

7. CERTIFICATION

DRIVER TWO

WORKING SIDE BY SIDE TO CERTIFY INSTRUCTORS



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DRIVER TWO

TRAINING NEEDS WORLD CLASSGROUP FITNESS RESOURCES



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Key findings Score

Overall score across all instructors 8.2

Les Mills’ instructor training and certification 8.3

Importance of being part of a global family 8.8

Percentage of instructors who viewed Les Mills as having no competition 38%

Percentage rating for importance of being part of a worldwide movement to improve people‘s health and fitness 70%


Notes: (1) Sample size n = 4,218; (2) Sample size n = 928 DRIVER TWO

GLOBAL INSTRUCTOR RESEARCH ON

LES MILLS™ TRAINING SYSTEMS



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Instructors place a high value on the LES MILLS™ training system in each region, while gaining substantial inspiration and reward from being part of a global movement to improve people’s health and fitness.


Notes: (1) Sample size n = 4,218; (2) Sample size n = 928 DRIVER TWO

GLOBAL INSTRUCTOR RESEARCH ON

LES MILLS™ TRAINING SYSTEMS



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GROUP FITNESS MANAGEMENT

SYSTEM



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1. Create a Group Fitness scorecard

2. Maximise your Group Fitness timetable

3. Recruit world-class Group Fitness instructors (and keep them!)

4. Organise great Group Fitness instructor training

5. Develop the best Group Fitness studio you can afford

6. Create a Group Fitness marketing plan

7. Plan for Group Fitness success

8. Hire, or be, a world-class Group Fitness Manager

DRIVER THREE

THE GROUP FITNESS MANAGEMENT SYSTEM IS BUILT AROUND 8 KEY ELEMENTS



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Interactive workshops about the 8 Key Elements of Group Fitness Management where attendees learn about:

The importance of measuring attendances

Using attendance data to create successful timetabling

How to find world-class instructors

What training is required to create world-class instructors

The impact of studio design on member experience

Innovative marketing strategies to build attendances

Key factors to consider when creating a plan for success

What it takes to be a truly great Group Fitness Manager

DRIVER THREE

GROUP FITNESS MANAGEMENT SYSTEM

TOOLS TO DRIVE BUSINESS SUCCESS 1



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DRIVER THREE

GROUP FITNESS MANAGEMENT SYSTEM TOOLS TO DRIVE BUSINESS SUCCESS 2 Club Group Fitness Coaches in each agency

Most comprehensive online GF Management guide available e.g.

Instructor interview guide and recruitment campaigns

Instructor assessment and self assessment forms

Studio design guide and checklists

Launch and re-launch manuals

Budget templates

GF Management interview guide and self assessment forms

Online timetable creator

Group Fitness case study database - Group Fit P.R.O.F.I.T.

Online GF Managers forum



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DRIVER THREE

LES MILLS™ Group Fitness recruitment campaigns

GROUP FITNESS INSTRUCTOR RECRUITMENT



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Simplified framework to assess the 5 Key Elements of teaching

Easy-to-understand instructor priorities

Powerful tool to support ongoing, in-house training

Building towards mastery

DRIVER THREE

GROUP FITNESS ASSESSMENT TOOL



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DRIVER THREE

GROUP FITNESS TIMETABLE CREATOR



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DRIVER THREE

GROUP FITNESS LAUNCH AND RE-LAUNCH MANUALS

DRIVER THREE

ONLINE CASE STUDY DATABASE



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DRIVER THREE

BEST PRACTICE CASE STUDY: LEVITE JCC, BIRMINGHAM, ALABAMA

• Facility of 2,250 members• Only 8% capacity usage in GF 18

months ago • Quickly reduced Instructor team from

50–20 people • Average attendance in class was 4-8

people • Launched Les Mills programs in March

2005 • Successful freestyle classes maintained • Today 88% capacity usage in Les Mills

classes • 82% retention • 59% of total attendances are from GF



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DRIVER THREE

BEST PRACTICE CASE STUDY: LEVITE JCC, BIRMINGHAM, ALABAMA

• Only one studio available • GF Manager negotiated use of other

space for classes • Deliver 65 land classes per week • 45 classes in the studio, 20 in other

facility venues • Premium priced in the area • Very high quality in Instructor team • Instructor team to reach 40 people• Minimum of 20% male attendance in

Les Mills classes • Rank in the top 10 out of 250 JCCs in

USA



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GROUP FITNESS MARKETING MATERIALS



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DRIVER FOUR

E-CLUB: YOUR ONLINE MARKETING TEAM

© 2006 Les Mills International Limited

Abs & Butt

OR

OR

DRIVER FOUR

REAP THE BENEFITS OF MARKETING BRANDS

WHAT WOULD YOU RATHER MARKET?

http://www.dogpile.com/info.dogpl/clickit/search?r_aid=8C6C760B535A42D3A518F32D24E76460&r_eop=11&r_sacop=11&r_spf=0&r_cop=main-title&r_snpp=11&r_spp=3&qqn=Ys%3B-Ys%3A%3A&r_coid=372380&rawto=http://www.nikeshoesbusiness.com/nike-shox/nike-shox-Ride-1.htm

http://www.dogpile.com/info.dogpl/clickit/search?r_aid=8C6C760B535A42D3A518F32D24E76460&r_eop=15&r_sacop=15&r_spf=0&r_cop=main-title&r_snpp=15&r_spp=3&qqn=f3%27RRGpJ&r_coid=372380&rawto=http://www.nikeshoesbusiness.com/nike-shox/nike-shox-Ride-1.htm

1. Les Mills™ Group Fitness Formulas

2. Quarterly event campaigns

3. Outdoor campaigns

4. Imagination campaign

5. Black-and-white series

6. Fantasy campaign

7. Life-changing campaign

8. What’s in it for me campaign

9. Shape your future campaign

10. Tree campaign

© 2006 Les Mills International Limited

DRIVER FOUR

E-CLUB SOME OF THE CAMPAIGNS AVAILABLE



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Les Mills’ sales team contacts club

Club signs licence agreement

Training of instructors undertaken

Instructors sign instructor agreement

Instructors enrol in auto-ship

Instructors submit video for assessment and final certification

Les Mills’ regional account managers actively assist the club in launching the new programmes to its members

Licensee club relaunches the programme every quarter to coincide with Les Mills’ new quarterly release

HOW DO I SIGN UP AS A LES MILLS LICENSEE?



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1. Review Group Fitness scores

2. Contact regional Les Mills’ distributor

3. Select two programmes to launch in the next 3 - 6 months

4. Update licence agreement

5. Book instructor training

6. Re-book Group Fitness Management training

NEXT STEPS FOR CURRENT LICENSEESTO LAUNCH MORE PROGRAMMES



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Research shows that licensees enjoyed greater business benefits when they schedule more than 50% of the timetable with LES MILLS™ programmes and offer 5 or more LES MILLS™ programmes


Notes: (1) Sample size n = 4,218; (2) Sample size n = 928

NEXT STEPS FOR CURRENT LICENSEESTO LAUNCH MORE PROGRAMMES



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Les Mills:

Is the undisputed world leader in Group Fitness

Has over 25 years’ expertise in creating and perfecting its Group Fitness system, used in over 11,000 clubs worldwide

Spends millions of dollars annually to ensure its products are world-class

Has a safety review process, comprising medical and fitness industry professionals who review each programme before its release to the market

Is continually innovating to improve existing products and bring new products to the market

LES MILLS OFFERS UNPARALLELED DEPTH OF EXPERIENCE IN GROUP FITNESS



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Where do you see yourself?

Ready to sign up

Interested but need more information

Thanks but no thanks - would like to try classes first

MAKING YOUR DREAMS BECOME A REALITY

© 2006 Les Mills International Limited© 2005 Les Mills International Limited© 2006 Les Mills International Limited

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