LES MILLS CORE COMPETENCY Les Mills Group Fitness

LES MILLS
CORE COMPETENCY
Difficult to
Duplicate – are
licensed out
Superior to
Competition in NZ
domestic market
Les Mills
Group Fitness
Programmes
CORE
COMPETENCY
Applicable to
multiple situations;
8 different types of
classes, also have
personal training
programmes, and
team training
Market Share graphs
• Market share acquisition is 1215620
• Is 22222 acquisition in 5 years of the 1215620
total overweight adults in New Zealand
Balanced Scorecard
Financial
Performance
Goals
Measures
Value and Capabilities Match
Value
Requirements
Distinctive
Capabilties
Les Mills Marketing
Interactive marketing
Customers and
Consumers
Personal trainers
Consultants
Staff
Don’t deliver
Are they unleashed
Employees
External Marketing
Brand promise:
Unleash yourself
Or
Passionately driven
for a better you
Company
Internal Marketing
Have the largest personal
training team
LMI Master trainers
Group Fitness instructors
LM staff are highly sort
after overseas
Market Attractiveness: Business
Position (MABP) Matrix
Market Attractiveness
High
Med
1
Med
Low
Group Fitness Programs
1
Weight loss Products and
Services
2
Fitness Club Concept
Day Spa, Tennis, Pools etc
Technology
Products/Services
1
Low
Business Position: Ability to Compete
High
2
3
3
3
Low Price/High Value
Strategy
2
Customer Value Picture – need to rate
on scale of 1-10
BODYPUMP etc
BodyTrainer
Personal Training Programs
JUMPSTART
Group Fitness Programmes
Team Training Programs
Weight loss
BOOTCAMP
SPARTAN
LOOK BETTER NAKED
LOOK EVEN BETTER NAKED
Body Trainer REVOLUTION
Quality
Gym Equipment
Overall Facilities and Services
Availability
Spa’s/Saunas and Changing
areas
Les Mills Instructors, Les Mills
certified
Strong Trainer-Customer
Relationship (Friendly)
Availability/Quality of
Staff/Gym Hours
Customer Value
Opening Hours
Image and Reputation
Price and Charges
Other financial costs
Overall Cost and Price
Non-financial Costs
Sense of Community
Pride
Membership Fee
Weekly/Month Rates
Additional costs for
services/programmes
Time to Gym
Waiting time/Capacity
Constraints
The Say-Do Triangle
What we say
i.e. Advertising
Brand
Perception
What others
say and
do/Unplanned
messages
What we Do
i.e. Experience
and price
Value Delivery
Choose Value
Deliver Value
(What)
(How)
Communicate
Value
(Marketing)
Brand Equity (could use for strat?)
Organisations
Presented Brand
Brand Awareness
External Brand
Communications
Brand Equity
Brand Meaning
Stakeholders
Experience with
Organisation
Good slide to show increased retention in strat – Called
Hierarchy of Effects Model
Awareness (90%)
Knowledge/Comprehension (70%)
Liking (40%)
Preference (25%)
Trial (20%)
REPURCHASE
REGULAR USE
5%
KPIs – Balanced Score Card
Financial
Measures
Learning and
Innovation
Measures
Balanced
Score Card
Management
Control
System
Internal
Business
Process
Measures
Customer
Measures
Metrics
Marketing Metrics
Brand Equity
Meterics
Competitive and
customer metrics
Familiarity
Strategy
Awareness of
coprate goals
Internal
Communications
Profitability
metrics
Market
Penetration
Culture
Perceived calibre
of employer
Etc
Product and
Portfolio metrics
What they think
about brand
Outcomes
Relative
employee
satisfaction
Etc
Customer
profitability
metrics
What they feel
New Product
metrics
Commitment to
corporate goals

Sales and
channel metrics
Loyalty
Employee
retention
Pricing metrics
Availability
Perceived
resoruce
adequacy
Innovation Metrics
Internal Marketing
Metrics
Promotion
metrics
Appetite for
learning
Advertising
media and web
metrics
Freedom to fail
Financial Metrics
Customer brand
empathy
Internal Process
Metrics
Where
to
compete
Market Attractiveness by Customer Group
High
Government /
Education /
Health
Major
Accounts
Other
Copy
Shops
Margin
Consumer
Product
Dealers
Retail
Computer
Dealers
Business
Partners
Low
Low
= Size of Bubble Indicates Revenue Size
Revenue Growth
High
Strategic Group Map
High
Les
Mills
Body
Tech
Curves
Copy
Shops
Citi
Fitness
Conto
urs
Price
Club
Physical
YMCA
Jet
Fitness
Uni-rec
centre
Low
Low
= Size of Bubble Indicates Revenue Size
Quality
High
Financial Metrics
Membership
Price
Revenue
Sales
Volume
Market
Share
Profit
Direct Costs
Drivers of EBIT
Drivers of EBIT
Increase Volume
Strengthen Loyalty of
Existing Customers
Support System &
greater Personalisation
Increase Revenue
Communicating with
your customers
 Actions to cement your
customers loyalty

Communicating with
competitors’ customers
 Actions exploiting where
competitors’
vulnerabilities lie
 Actions that better the
competitors’ offering

Decrease Cost
Grow EBIT

Eliminating costs,
including labour
costs, that can be
reduced or
eliminated without
destroying customer
value
Change Mix

Presenting preferred
bundle of products
and services for
customers
Increase Price

Exploit Vulnerability of
Competitors
New Technology
Systems offer greater
motivation
Understanding price
/ quality trade-off
Diversify into Body
Management Market
Average Weekly Membe
Rate
Number of Members
x
Driver Tree Analysis
x
46 000
52
New Member ship Sold per Week
(Joining Fee)
New Memberships Sold p.a.
x
$77 332 000
x
Average Membership Sales Price
(Joining Fee)
+
Cost of Customer Acquisition
$6 104 000
52
+
$1 000 000
Marketing
Number of Part Time Staff
$3,000,000
123
Personal Trainers
Rent From Personal
Trainers
x
$1 900 000
260
Hours per Week
Hours
Average Rent
$7 308 pa
x
Gross Margin on Les Mills
International Ltd
x
51
6,240
168
Average Wage Rate
x
8
Days Weeks Open
52
$16.00 p hr
(Not Included)
FTEs
x
Labour
$15 027 168
x
+
Overheads
Hours
Hours per Day
8
Average Wage Rate
$23.00 p/h
Loan Payments
+
x
10
Loan Monthly Instalments
Other
(power/equip/upgrades)
297
617 760
Number of Gyms
$30 802 468
Weeks Open
Other (Admin)
+
-
269
Membership Consultants
Commission
-
$71 228 000
$40 425 532
14 000
$99
Gross Margin on
Membership
Les Mills Profitability
Weeks Open
Revenue from each member
$1 651
Membership Revenue
$31.75 pw
x
Days Open
260
Customer Acquisition Margin
Les Mills Potential
Revenue
Total Adult
Population
×
Proportion that enquire
at Les Mills
×
3%
57%
47%
100%
Actual proportion of
People who sign up
Customers who should
sign up
25890
$4 403 221 212
Total Population who
want to get fit
Incidence Rate of
People who want to
get fit
Number of People
who come into Gym
$39715260
2 870 418
×
55086
Club to Hub
New Memberships
1 636 138
×
Market
Revenue
$25 998 444
Proportion of people who
actually sign up
Les Mills
Margin
47%
×
$10 323 608
Les Mills
Direct Costs
×
$29.50
Average Price
Per Test
Les Mills Increase
in Market
Share
= Input
Driver