FastYoga Quick Stretch: New Brand Concept
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Brand & Concept Development © 2009-2010 Crosscut Ventures, LLC. All rights reserved. Confidential. Do not forward electronically or by any other means without prior written permission and consent. March 2, 2010 LA Fitness Exploratory Meeting
description
Revolutionizing Yoga for the Masses
Transcript of FastYoga Quick Stretch: New Brand Concept
Brand & Concept Development
© 2009-2010 Crosscut Ventures, LLC. All rights reserved. Confidential. Do not forward electronically or by any other means without prior written permission and consent.
March 2, 2010
LA Fitness Exploratory Meeting
Consumer Problem
People realize stretching is good for you but they can’t reach.
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Business Problem
Gyms have so much space they can’tfill.
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Challenge
93 of Americans don’t practice yoga%
94 of Americans don’t stretch their body%
53 of Americans can’t touch their toes%
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Opportunity
Enhance the relationship with 1.5MM LA Fitness members
by giving each their own s p a c e to stretch.
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Solution
Repurpose 800 sq. feet or a racquetball court equivalent.
Design into a premium yoga and stretching studio. Create
a new destination, charge a monthly premium fee.
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Idea
“A space to feel better”
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Concept
Improve the awareness of yoga and stretching by creating a
singular space, and atmosphere for LA Fitness members
use, adjacent to their unique fitness regimens and routines.
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Insight
Gym members know they should stretch, and that yoga is
‘good for you.’ Instead, they chase immediate gratification
with new and unproven techniques. Yoga and stretching have
been taken for granted.
If they can trust the experience and immediate benefits of yoga
and stretching today, they will be motivated to adopt both for
a lifetime.
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Brand
Fast Yoga Quick Stretch is a modern ‘take’ on two traditional
and distinct human activities - yoga and stretching. When
united the two enhance the human capacity for complete
body-to-mind enhancement.
Fast Yoga Quick Stretch is space that immediately feels better,
by engaging and shaping the body to balanced and restorative
wellness.
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Product
Space that intuitively feels better because of what you can do
with it. Fast Yoga Quick Stretch studios are designed to
efficiently inform and promote yoga and stretching mutually.
Adaptable to any environment, Fast Yoga Quick Stretch
enables anyone to learn how to improve their overall fitness
and enhance their lifestyle.
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Why now?
Fit
ness L
evel
Convenience
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Why LA Fitness?
Under-utilized space creates zero cash flow. U.S. racquetball
participation has been declining through attrition since 2001,
as a new generation of gym members don’t play.
LA Fitness has 300 gyms in the United States, most with
multiple racquetball courts. In the Northeast, specifically
Bergen County - New Jersey, there are 12 retail outlets that
account for at least 36 courts.
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Reason to Believe
LA Fitness is a leader in fitness innovation, dedicated to
providing community to its members, complete with the latest
techniques, helping them achieve and maintain their fitness
lifestyles.
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Pricing
$5.00 per month for unlimited access at any LA Fitness
location. Offer to existing and new membership levels,
utilizing trainers and sales for awareness and conversion.
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Sales
Fast Yoga Quick Stretch can raise membership at LA Fitness
and drive incremental revenue per member. LA Fitness
trainers and sales staff are ideally suited to capture new
recruits for Fast Yoga Quick Stretch, creating awareness and
indoctrination of a new premium service.
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• Assume the average LAF unit has 10,000 members at $40 per
month
• Assume a minimum of 3 racquetball courts with 10%
occupancy
• Assume an acceptance rate of Fast Yoga Quick Stretch of 20%
of total membership or 2,000
• New Math: 2,000 x $5.00 x 12 = $120,000 per annum
• Old Math: 10,000 x $40 x12 = $4,800,000
• Revenue Benefit: $120,000 or 3% of gross revenue per unit
Example
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• 1 unit: $120,000
• 10 units: $1,200,000
• 20 units: $2,400,000
• 50 units: $6,000,000
• 75 units: $9,000,000
• 100 units: $12,000,000
Scalability
Pure incrementalprofit
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• Innovative use of existing space
• Create a branded destination
• Simple and easy for members to use
• Human capital vs capital, minimal upfront investment
• Create leadership and distance from competitive set
• Revenue-generating idea
Benefits
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