Lifetime Fitness 2007 Annual Report Download - page 17

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11
Grand Opening Phase. We deploy a marketing program during the first month of a center’s operation that builds on
our pre-opening efforts. The reach and frequency of the advertising campaign culminate when all households within
a strategically designated trade area, based on local access considerations, housing density and travel patterns,
receive targeted advertising. Simultaneously, prospective members receive special invitations to grand opening
activities and educational seminars designed to assist them in their orientation to the center. Our corporate clients
receive special enrollment opportunities, as well as invitations to open house activities.
Membership Growth Phase. After the grand opening phase, marketing activities and costs decrease as drive-by
visibility and word-of-mouth marketing become more influential. The goal of each center is to achieve consistent
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 high-quality centers, products and services in the areas of exercise,
education and nutrition at a great value. 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. Core to our member commitment is the delivery of educational information that supports healthy and
active lifestyles. We uphold this by offering healthy-way-of-life features, news, tips and recipes on our Web sites,
www.lifetimefitness.com and www.experiencelifemag.com, providing classes at our centers and distributing our
award-winning Experience Life magazine to most of our members.
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 615,000 copies to
all of our members, non-member subscribers, households in new market areas and selected major bookstores
nationwide. Experience Life averages 35 pages of advertising per issue and is expected to be published 10 times in
2008. In 2007, Experience Life was honored with a top national prize for excellence in best overall design and best
how-to article and a Minnesota Magazine Publications Association gold medal for Overall Excellence.
Athletic Events. Our annual Life Time Fitness Triathlon, held in Minneapolis, Minnesota, attracted participants from
40 states and 11 countries in 2007, 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, consisting of the
Nautica New York City Triathlon, Accenture Chicago Triathlon, Kaiser Permanente Los Angeles Triathlon, the Life
Time Fitness-produced Toyota U.S. Open Triathlon in Dallas and the Life Time Fitness Triathlon. This Series, open
to all athletes, 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, the Torchlight 5K Run and Turkey Day 5K in Minneapolis, Minnesota, the Run Wild 5K Fun Run & Walk
in Phoenix, Arizona, as well as indoor triathlons in many 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 help manage weight. Our formulations are created and extensively tested by a team of external
scientific experts. 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.