Lifetime Fitness 2006 Annual Report Download - page 17

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membership growth until targeted capacity is reached. Once the center has reached its targeted capacity, marketing
efforts are directed at keeping membership levels stable and at growing other in-center services to existing members.
Marketing plans for each center are formulated on an annual basis and reviewed monthly by marketing and center-
level sales personnel. At monthly intervals, a comprehensive situation analysis is performed to ensure sales and
retention objectives are meeting the goals of the center’s business plan.
Leveraging the LIFE TIME FITNESS Brand
We are building a national brand by delivering products and services in the areas of exercise, education and nutrition
at an attractive price. We are further strengthening the LIFE TIME FITNESS brand by growing our Experience Life
magazine, our internationally-recognized triathlon and our line of nutritional products.
Education. We work to educate people by offering educational information and tips on our Web site,
www.lifetimefitness.com, and by distributing Experience Life to most of our members. Our Web site offers various
educational features, including healthy cooking recipes, health news and exercise tips. The Web site also has
interactive functions that allow a user to ask exercise or fitness questions.
Our Experience Life magazine includes an average of 98 full-color pages of health tips and insights, articles
featuring quality-of-life topics and advertisements and has a current circulation of approximately 625,000 copies to
all of our members, non-member subscribers, households in new market areas and selected major bookstores
nationwide. Experience Life averages 36 pages of advertising per issue and is expected to be published 10 times in
2007. In 2006, Experience Life was honored with a top national prize for excellence in use of editorial illustration
and a Minnesota Magazine Publications Association gold medal for Overall Excellence.
Athletic Events. Our annual Life Time Fitness Triathlon attracted participants from 40 states and 13 countries in
2006, as well as national sponsors. The Life Time Fitness Triathlon offers a professional division for one of the
sport’s largest prize purses. The event draws significant selected local, national and international media coverage.
We also launched the Life Time Fitness Triathlon Series, a partnership with the Nautica New York City Triathlon,
Accenture Chicago Triathlon, Kaiser Permanente Los Angeles Triathlon and the Life Time Fitness Triathlon. This
Series provides professional athletes with the opportunity to compete from race to race for a chance to win their
portion of a total prize purse worth more than $1.0 million. In addition to the Life Time Fitness Triathlon, we
organize several shorter run/walks during the year, such as the 5K Reindeer Run in most of the cities where we have
centers and the Torchlight Run and Turkey Day 5K in Minneapolis, Minnesota, as well as indoor triathlons in some
of our centers.
Nutritional Products. We offer a line of nutritional products, including multi-vitamins, energy bars, powder drink
mixes, ready-to-drink beverages and supplements. Our products use high quality ingredients and are available in our
LifeCafes and through our Web site. Our current nutritional product line focuses on four areas, which are daily
health, weight management, energy and athletic performance. Our weight management products work safely and
effectively to manage weight. Our formulations are created and tested by a team of external scientific experts and
each formulation undergoes extensive testing. We use experienced and professional third parties to manufacture our
nutritional products and commission independent testing to ensure that the product labels accurately list the
ingredients delivered in the products.
Our Employees
Most of our current model centers are staffed with an average of 250 full-time and part-time employees, of which
approximately 11 are in management positions, and all of whom are trained to provide members with a positive
experience. Our personal trainers, registered dieticians, massage therapists, physical therapists and cosmetologists
are required to maintain a professional license or one of their industry’s top certifications, as the case may be. Each
center typically has a general manager, an operations department head and a sales department head to ensure a well-
managed center and a motivated work force.
All center employees are required to participate in a training program that is specifically designed to promote a
friendly, personable environment at each center and a consistent standard of performance across all of our centers.
Employees also receive ongoing mentoring, and continuing education is required before they are permitted to
advance to other positions within our company.