WHEN GROUP FITNESS GOES TRIBALGOES TRIBAL

IHRSA 9TH ANNUAL

ASIA-PACIFIC FORUM

TU MAI NEI NGA TOA Leader: Let your hands quiver by your side

Hands on hips,

Hands down by your side (still)

Be steadfast

Let me be at one with the earth

Hi aue hi

Ancient ancestors/warriors of old bestow upon us strength and leadership

Group: Standing here are the new warriorsGroup: Standing here are the new warriors

We haka in fury at sedentary lifestyles

Obesity is our adversary Let us do battle

Let your mind, body and spiritual essence be revitalised

Through the breath of life

Leader: At the separation of earth from sky all potential was released into this world

Group: Therefore, let your true potential be known

Reveal your inner strength & power

Hold fast to the challenge

Let us unite as one global entity

Yes it is , Yes it is, Yes it is This we decree.

MILLIONS OF PEOPLE EVERY WEEK PARTICIPATE IN OUR CLASSES IN PARTICIPATE IN OUR CLASSES IN

14000 CLUBS IN OVER 70 COUNTRIES

LEAD BY A TRIBE OF 80,000 INSTRUCTORS THAT WOULD FILL JAWAHARLA STADIUM

FROM CIRCUS TO CIRQUE DU SOLEILFROM AEROBICS TO LES MILLS GROUP FITNESS

• 12,500 members

• Current membership €75 per month

• 10,000+ GF visits/week

• GF 55% of total Club Attendances

GROUP FITNESSTRIBAL MECCA

LES MILLS AUCKLAND NEW ZEALAND

• GF 55% of total Club Attendances

• Membership retention rate 80%

• 5,000m2 Fitness Only Club : 2,000m2 GF Area

• 4 studios – largest is 700m2 :

• Over 150 classes per week

• 1 full-time GFM and a full-time assistant

• 65 instructors (independent contractors)

• 35% EBITDA

A TRIBE IS A CONNECTED GROUP ON A MISSION CHAMPIONED BY A LEADER. • Tribes, big and small, are among us.

Individualism as a social concept is declining declining

TRIBES MATTER NOW

• Silos of interest groups that are more interested in their “cause” than the money

• They typically believe the status quo sucks and say no

• Tribes can change our world, more than • Tribes can change our world, more than money or factories. They can change politics and align large numbers of people because they want to connect

TRIBES ARE A SOCIETAL REALITY HIGHLIGHTED BY THE POPULARITY OF SOCIAL NETWORKS• FACEBOOK is the most visited with more

than 500 million active users than 500 million active users

• 50% of our active users log on to FACEBOOK in any given day

• Average user has 130 friends

• People spend over 700 billion minutes per month on FACEBOOK

THE INDIAN FACEBOOK TRIBE IS ENORMOUS

• Currently 15 404 180 Users

• 10th largest group in the World• 10th largest group in the World

• Population Penetration 1.31%

• Online Population Penetration 19.02%

TRIBES GIVE ORDINARY PEOPLE THE POWER TO LEAD AND MAKE BIG CHANGE

• To be a successful Tribal leader be • To be a successful Tribal leader be prepared to turn into a “heretic.”

• Heretics don’t let rules or religion get in the way of their faith

• Heretics find the true believers, a group that is disconnected but has a yearning

TO START A TRIBE YOU MUST ASK 3 QUESTIONS

• Who are you upsetting?

• Who are you connecting? • Who are you connecting?

• Who are you leading?

TRIBAL LEADERS HAVE THESE COMMON TRAITS• Challenge

• Culture

• Curiosity

• Charisma• Charisma

• Communicate

• Connect

• Commit

SPORT TRIBAL LEADERMIHKA SINGH• He was called ‘the flying Sikh.’ Pride of Punjab.

Pride of the Sikhs. Pride of India. He did what no Indian did at the time.

• He ran -- as a profession. Singh is on this list for gold medals won in the Asian Games in 1958

Challenge

for gold medals won in the Asian Games in 1958 and 1962. But he’s also here for the medal he narrowly missed in the 1960 Rome Olympics, a race in which he finished faster than the standing world record.

• At a time without byzantine 25th-century shoe technology, Singh ran barefoot for most of his career

SPORT TRIBAL LEADERPRAKASH PADUKONE • ‘The Gentle Tiger,’ though his opposition post-

1971 would likely object to the moniker; it was at about that time that Padukone dramatically augmented the aggressiveness of his game.

• Won the All England Championships cup in 1980,

Charisma

• Won the All England Championships cup in 1980, and put India in the same league with the game’s superpowers.

• Mild mannered, dignified, focused and still actively paying back the sport he loves, Padukone can still be seen gliding gingerly on the court at his Bangalore sports academy, playing against youngsters who look on in awe and admiration.

SPORT TRIBAL LEADERVISHWANATHAN ANAND • Anand doesn’t just look like a scientist, he

prepares for his game like one. He has decimated former champions with the precision of a physicist dismantling an atomic bomb, blowing the likes of Kasparov, Karpov and

Curiosity

blowing the likes of Kasparov, Karpov and Kramnik out of the water.

• World champion, grandmaster, Arjuna awardee, Chess Oscar winner, padma shri, padma bhushan, padma vibhushan and a global ambassador to the brainy sport. He may live his life in black and white, but Anand’s achievements are a brilliant rainbow on India's sports horizon

SPORT TRIBAL LEADER KAPIL DEV• Captained India to the 1983 World Cup aloft.

• He was India’s first true pace bowler. He bowled injury free.

• As national team captain Dev codified the phrase “Kapil’s Devils” in sporting lore. And he

Culture

did it when no one gave a lanky lad from Haryana a chance,

• Retired as the highest wicket taker ever, anywhere and one of the best cricketing all rounders of all time.

SPORT TRIBAL LEADERSUNIL GAVASKAR• First man to cross the unthinkable milestone of

10,000 runs in test cricket and surpassed Sir Don’s record for test centuries.

• Gavaskar batted in an era when the dangerous West Indian pace quartet was at peak ferocity. He didn’t wear the protective helmets of today,

Commit

He didn’t wear the protective helmets of today, he didn’t have modern day umpires ruling a no ball for more than one bouncer per over.

• His opening partners changed dozens of times throughout his career, but the captain always held up his end.

• He did it all seemingly without breaking a sweat and smiling, always, all the way to the commentary booth where he now sits.

SPORT TRIBAL LEADERSACHIN TEN• Widely regarded as one of the greatest batsmen

in the history of cricket.

• He is the leading run-scorer and century maker in Test and One day International cricket

• Only male player to score a double centrury in

Communicate

the history of cricket.

• When he joined Twitter and began racking up followers at the rate of almost 4,500 an hour.

• Within the first 24 hours, followers reached almost 80,000, sparking a media frenzy and countless tweets about the so-called god of cricket joining the social networking site

GROUP FITNESS TRIBAL LEADERS BETO & JOHNNY G

200 000 results 127 000 results

GROUP FITNESS THOUGHT LEADER PHILLIP MILLS• Founder and CEO of Les Mills International • Pioneer and “Thought Leader” in the global

fitness industry and “revolutionized”the modern group-exercise experience.

• He is also an author and a public advocate for the environment and sustainability in business.the environment and sustainability in business.

• Competed at the 1974 Commonwealth Games in the 110m hurdles, and 1978 both 110m and 400m hurdles.

• He attended the University of California at Los Angeles on a track and field scholarship, and graduated with a degree in philosophy in 1978.

547 000 results

GROUP FITNESS PROGRAM LEADERS

324K Results72M Results

1.3M Results

1.2M Results 1.5M Results 1.6M Results

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THERE IS A BIGTHERE IS A BIGPROBLEM IN THE WORLD

http://www.youtube.com/watch?v=R8r4jSQAvj8

PLANET OBESITY IS AT EPIDEMIC LEVELS

• 300 Million people now obese• Obesity rates that have risen three-• Obesity rates that have risen three-

fold or more since 1980 in some areas of North America, the United Kingdom, Eastern Europe, the Middle East, the Pacific Islands, Australasia and China.

OBESITY IS OFTEN FASTER IN DEVELOPING COUNTRIES

• Increased consumption of more energy-dense, nutrient-poor foods with high levels of sugar and saturated fats, combined with reduced physical activity

INDIA IN GRIP OF OBESITY EPIDEMIC

• The study that looked at the burden of overweight citizens in six countries --Brazil, China, India, Mexico, Russia and South Africa -- has found that between South Africa -- has found that between 1998 and 2005, India's overweight rates increased by 20%.

• Currently, almost 1 in 5 men and over 1 in 6 women are overweight. In some urban areas, the rates are as high as 40%.

OBESITY IS THE ROOT OF NON COMMUNICABLE DISEASES• By 2030, nearly 70% of all global deaths will be

from NCDS like cancer, diabetes, and respiratory and heart disease. respiratory and heart disease.

• 80% will be in the less wealthy nations like India

• Up to 80% of heart disease, stroke and type-2 diabetes and over a third of cancers can be prevented by eliminating shared risk factors, mainly tobacco use, unhealthy diet, physical inactivity and the harmful use of alcohol.

This is the greatest holistic health challenge facing the world, and our industry is perfectly positioned to play a

WHAT CAN THE FITNESS INDUSTRY DO ABOUT IT?

big part in the solution. We are the exact opposite of the cigarette and junk food companies and we have an intimate relationship with a big percentage of the world’s wealthiest people.

There are four major ways we can

contribute:

1. Become advocates

2. Green our facilities

3. Get a lot better at what we do

4. Create a green mission

THE BIG TRENDS -HEALTH, COMMUNITY AND EXERTAINMENT •Health club attendance has become the biggest adult “sport” in the Western World.

40

50

60

US Adult Fitness Club Participation 1960 -2040

World.

•Its has traditionally lacked the excitement and social engagement of sports and behaved more as gyms than as true health clubs.

•The faster we can change that, the bigger our future!

0

10

20

30

40

1960 1970 1980 1990 2000 2010 2020 2030 2040

• We have big role to play

• Traditional Health Care is failing

• By 2016 the cost of the US Health system will be $4.1 Trillion per year

THE FUTURE – GYMS OR HEALTH CLUBS

system will be $4.1 Trillion per year

• Health system is deteriorating almost as quickly as increasing.

• Massive need for preventative focus

• Health and fitness facilities are the future of effective preventative health care

Paul Zane Pilzner: The

Wellness Revolution: How to

make a fortune in the Next

Trillion Dollar Industry 2002

GROUP FITNESS IS A LARGE ACTIVTY SEGMENT • In the US group Fitness represents

44.4 Million Group Fitness participants 44.4 Million Group Fitness participants and growing

• This segment is an opportunity to grow “community” within a club and create “clubs within the club”

GROUP FITNESS IS AN ACQUISITION WEAPON1. 90% of all exercisers report that they would prefer

to work-out in a group 2. 60% of members report that Group X is the #1

choice of service or amenity that they are interested in

3. 26.4% of new members join to participate in Group X 3. 26.4% of new members join to participate in Group X classes

4. “Multiple Group X Studios with Fantastic Classes” is the 2nd most important factor in making a decision to join a health club (behind “Professional staff and knowledgeable trainers”).

5. Increase in Group X participation is a key indicator of club growth and profitability

1. Participation in group activities correlates with higher retention.

2. Improving the average number of visits per week a member makes to a club by one will lead to a 3% increase in a club’s retention rate.

3. Group X members average number of visits per week is 2

GROUP FITNESS IS A RETENTION & REFERRAL TOOL

3. Group X members average number of visits per week is 2 versus non Group X <2

4. Retention rates are higher for Group X members than for machine members.

5. Satisfied Group X members tend to refer new prospects at a rate 3 times greater than any other member types.

1. BODYPUMP participant frequency of visit is 3.4 average visits per week versus industry average of <2

2. BODYPUMP participants have more intention to renew their membership than those who don’t do Group X (72.2% vs. 63.4%)

3. 65.7% of BODYPUMP participants believe that Group X is

BODYPUMP® VALIDATES THE GROUP FITNESS RESEARCH

3. 65.7% of BODYPUMP participants believe that Group X is an important motivator in keeping them at the club long-term

4. 71.8% of BODYPUMP participants are “Very Likely” or “Extremely Likely” to continue taking BODYPUMP classes in the next 12 months

5. 74.7% of BODYPUMP participants are more *likely to recommend a friend join their club than those who don’t do Group X (67.4%) *“Very Likely” or “Extremely Likely”

36

PACKING CLASSES IS MORE IMPORTANT THAN MAKING MONEY

• Creating massive social energy • Impacting as many people as you can

within your local the community• Fighting sedentary lifestyles and

“globesity”

LIFE CHANGING FITNESS EXPERIENCES EVERYWHERE EVERYTIME

EVOLUTION OF INDOOR CYCLING

• 1980s Stationary Bike

• 1990s Computerized Bike

• 1995 Indoor Spin classes• 1995 Indoor Spin classes

• 2000 RPM classes

• Safer, Better Results, More Social, More Fun, More People

2010 - LES MILLS AUCKLAND CYCLING 2000 VISITS PER WEEK PAYING $5 PER CLASS

RECIPE FOR CREATING A PERFECT CLASS

79

69

64

17

24

25

3

6

7

0

1

2

0

1

0

The type of class

Instructor’s ability

Time of class

GROUP FITNESS PARTICIPATION DRIVERS

64

52

52

32

25

33

29

37

7

13

14

22

2

4

1

1

0

1

2

8

Time of class

Instructor’s personality

The music

Ambience of the fitness room

Extremely important[5] 4 3 2 Not important at all[1]

CREATING A PERFECT ie BODYPUMP CLASS

• Music accounts for 50% of the overall program score, Warmup, Legs/Squats and Chest. Collectively, the first three tracks account for around 40% of the tracks account for around 40% of the overall music score

• Choreography accounts for 20% of the overall program score. Legs/Squats, Arms/Biceps and Shoulder/Arms account for around 42% of the overall choreography score

WORLDS BEST MUSIC AND CHOREOGRAPHY BY DESIGN • Largest licensing contracts for original

music

• Largest producer of cover music

• Professional Choreography Teams

• Professional Production and Editing

• Annual Budget over US$2.5M

STAGES OF CONNECTION FROM MEMBER TO INSTRUCTOR

Member

• Sympathiser

• Fan• Fan

Instructor

• Ally

• Hooked On

MEMBER TRIBAL EVENTS CREATE SUSTAINABILITY• Quarterly Events

• Member Social Retention• Member Social Retention

• Member Referral

• Instructor Teamwork

• Club Teamwork

LEADING GROUP FITNESS INSTRUCTOR TRIBES • Recruit on Essence

• Train using holistic mix of Sport Science and Performing Arts

Choreography

Technique“Physical Execution”

Connecting““Communication””

• Offer progression from Competency to Mastery

• Provide ongoing up-skilling and social networking

• Provide vertical and horizontal career opportunities

Choreography

Coaching“Teaching Skills”

Fitness Magic“Theatre Skills”

GROUP FITNESS INSTRUCTOR CAREER PROGRESSION

• International Presenter DVD

• National Trainer/ Presenter

• Regional Trainer/Presenter

• Group Fitness Manager

• Instructor

• Member

Calling CareerJob

GROUP FITNESS INSTRUCTOR LOYALTY

Brand

value

• Direct correlation between brand value and quality of tribal connection

• Les Mills Instructors place a high

Quality of Tribal connection

Brand

value

• Les Mills Instructors place a high value on being part of a global movement to improve people’s health and fitness.

INSPIRE YOUR TRIBE WITH A POWERFUL PURPOSE

LEAD A MOVEMENT BASED ON ASPIRATIONAL VALUES

• Be World Class

• There is an army of you

• We believe we can

THE NEW GENERATION OF TRIBAL INSTRUCTORS• Purpose Driven• HAKA• HONGI • Physicality• Clothes• Hair Styles • Tatoos• Social and Education Events

THE POWER OF STORIES

• Tell stories that will be told

• These become legends

• Stories are the DNA fabric of your heritage heritage

• Moments of delight

• Moments of remarkable

TRIBAL BUSINESS AND SUSTAINABLILITY

People will do anything for the tribe when people believe their leaders are working in the best interest of the tribe. If the cause is compelling enough, the tribe will climb the highest mountains. But, when it appears that the leaders are simply leaching off the backs of the tribe, the cause dies.

WHEN GROUP FITNESS GOES TRIBALGOES TRIBAL

IHRSA 9TH ANNUAL

ASIA-PACIFIC FORUM