January 1, 2010
TVNZ NZ marketing awards
Global boomer
Originally published in NZ Marketing November-December 2009, page 22

Les Mills' Bodyvive is generating global sales
Les Mills leverages a megatrend
Fairfax Media
Supreme Award
Colmar Brunton
Customer Services Award
Winner
Les Mills
The people
Jenny Denton, Marketing Manager
Everyone knows Les Mills. What’s less well known is that Les Mills programmes are licensed to more than 12,600 fitness clubs and gyms in 75 countries, through a network of international agents.
In response to strong demand for a programme relevant to baby boomers, Les Mills introduced Bodyvive in 2007 and created an international sensation.
Background
Les Mills International (LMI) was founded in 1997 to develop a music-based exercise system for health and fitness facilities. Every three months the programmes are relaunched with new choreography and music.
Bodyvive was launched ten years later in response to the fastest-growing sector of the Les Mills market: baby boomers seeking a low-impact exercise option.
The demographic shifts in gym membership were hinted at 2002, when reports showed that senior members in the US were increasing faster than any other group: by 2006, 68 percent of fitness club members were 35 or older, up from 43 percent in 1998.
Intensive, six-week trials in real-club situations also shaped the final format of Bodyvive. Feedback from trialists was gathered and analysed for Les Mills by ACNielsen Research, and confirmed the widespread appeal of the Bodyvive mix of integrated, aerobic, resistance and stretching/mobility exercises. Some 81 percent of responses from trialists aged over 40 showed they were either “satisfied” or “very satisfied” with the class and, importantly, 86 percent said they would “recommend” or “strongly recommend” the programme to others.
Bodyvive was reviewed by an international panel of industry experts, whose feedback was invaluable in shaping its final form. Among the panel members were Colin Milner, chief executive of the International Council on Active Aging; Peggy Buchanan, corporate spokesperson on older adult fitness for IDEA; and Cedric Bryant, chief science officer for the American Council on Exercise.
What’s new
A Les Mills programme development team was established in 2005, headed by creative director Emma Barry. The prototype for Bodyvive was subsequently produced in early 2006 and submitted for trials in selected fitness clubs in five countries: the US, the Netherlands, the UK, Australia and New Zealand. It was launched worldwide in early 2007.
Boomers now represent the world’s largest single population group—about 30 percent of the total. In fact, 25 percent of health-club members areaged 53 and older. Boomers have a high degree of health consciousness and there is an increasing likelihood of health insurance sector or government financial support for fitness programmes benefiting this group.
Extensive research was undertaken on the positioning of the product to ensure it appealed to the demographic. This included the choice of colours, programme name, imagery and music. Because of the need for such a programme, there were no key competitors.
Bodyvive has a clear point of difference from the existing suite of Les Mills programmes. It also has a higher price—to ensure Les Mills agents can charge second-tier pricing for existing clubs and primary pricing for new clubs, and to make the sales process as easy as possible.
Messaging
The new programme was launched at the 2007 annual IHRSA convention, the most important industry event of the year, and attended by industry leaders and media from around the world. Throwing a ‘champagne launch’ of Bodyvive at IHRSA ensured maximum publicity.
A direct mail message was sent to all licensees and an array of marketing resources was made available online, including a promotional DVD, posters, banners, print advertisements and radio advertisements. A detailed PR plan ensured targeted messages were received by club owners, instructors and media.
The Bodyvive programme received great publicity, including the cover of Club Solutions magazine in the US. The strategy in the US was to launch Bodyvive to coincide with favourable high-impact coverage from one or two industry magazines and then work with publications on feature articles of interest to their readership.
Results
After just one year in the market, 1,500 Bodyvive licences had been sold to clubs worldwide. As of March 2009, the programme was available in 2,089 clubs globally generating $1.2 million annually. The purchasing of Bodyvive equipment has brought in an estimated $500,000 since its inception and music sales for the past year amounted to $405,000.
Training of around 6,000 Bodyvive instructors worldwide has generated approximately $1.7 million. The four markets where Bodyvive is most popular are the UK, US, the Netherlands and Asia–Pacific.
Clubs are successfully using Bodyvive to entice new members. The launch of Bodyvive in Fitness Concepts, Massachusetts, delivered 42 new members and made over US$20,000 in revenue.
Clubs and consumers embraced the new programme and it continues to receive high praise—not just from the baby boomers but from de-conditioned people and those returning to the gym after sustaining injuries. It opened up new markets, such as clubs with older demographics and not-for-profit facilities and community centres. A randomised controlled trial in 2008 to investigate the physical and mental training benefits of Bodyvive found that it is a fat-burning cardio and functional strength and endurance training programme that boosts energy levels, reduces stress and feelings of depression.
In 2010, a 20-minute Bodyvive workout will be available to eight million consumers in 50 countries, when it appears as one of two Les Mills workouts on Nestlé Fitness cereal packets.
Finalists
Air New Zealand
Air New Zealand identified a frustrating aspect of domestic travel, common to all airlines, and set out to make it much better for its customers, giving the brand strong and genuine differentiation in the face of new market entrants.
A genuine customer-led marketing approach, the campaign is a powerful demonstration of how non-traditional ideas can generate huge word of mouth and unpaid media coverage. It was a gutsy call to put the entire awareness budget behind an idea like Cranial Billboards, and one that paid off in spades.
The campaign succeeded in managing the introduction of a far-reaching change in how customers travelled domestically. That this programme was deployed without any customer confusion or disruption and with such a massive positive impact on how the country regards the Air New Zealand brand is testament to its success.
Tourism New Zealand
The 100% Pure New Zealand campaign is recognised globally for both its execution and effectiveness. Its message has remained relevant and powerful through everything that the world has thrown at it, including the current global economic issues. And it has been the most successful that New Zealand tourism has ever seen.
Westpac Online Banking Services
From simplification of sign-ups, to above-the-line communications, all efforts were aligned to winning what Westpac called the ‘online banking priority battle’ with great success. With almost ten percent of New Zealanders actively using Westpac’s Online Banking, and substantial growth continuing in key demographics, Westpac is well placed to deliver further growth and increased retention and customer satisfaction scores.
While the target was substantial, the result was equal to that target, with usage growth of 21 percent, and the total number of registrations coming within one percent of objective. This amazing lift propelled Westpac past all competition to be the bank with New Zealand’s highest online banking penetration.