How to Handle & Outsmart the Competition Your BTS Strategy ERIN KELLY

1. How to Handle & Outsmart the CompetitionYour BTS StrategyERIN KELLY

2. Sal’s 08 Visit to BTS Offices, Atlanta GA

3. BTS Offices, Atlanta GA

4. M. Best Practise – How to Handle & Outsmart the Competition • Objective • To communicate the primary differences between Les Mills and BTS, and convince key decision makers to chose the superior product • Strategies • Highlight key differences • Music • Regionalized support • Benefits of brand awareness • Regionalized training and event opportunities • Don’t focus on why NOT to choose BTS, but instead why they SHOULD choose Les Mills (Don’t be negative about the competition) • Communicate that is is NOT a point of differentiation to utilize BTS to compete with other Les Mills licensed facilities • Take the opportunity to “over-service” the facility

5. M. Best Practise – How to Handle & Outsmart the Competition • Actions • It is essential to have a face to face with the decision makers • This is something that the competition can often times NOT provide • Offer to provide a master class - seeing is believing • Be sure to address any concerns, hesitations, or misrepresentations around Les Mills • Utilize support materials to bolster our case • “Why to chose Les Mills” • References and testimonials • 4. Timing: • Be FIRST to create the relationship – beat the competition to the punch • Know the prospect's timeline of execution • Always be proactive and responsive • 5. Target: • Anyone and everyone considering the competition!

6. M. Best Practise – How to Handle & Outsmart the Competition • 6.Cost • Be prepared to match the price of our competitors • Master classes • Time and travel • Other possible incentives • Free month(s) at time of start up • Initial training incentives • Equipment financing • Event admission tickets (quarterlies) • Music • Clothing • 7.Result: • Les Mills becomes the ONLY choice

7. M. Worst Practise – How to Handle & Outsmart the Competition • 5 Things to Avoid • Don’t bash the competition, but professionally articulate their weaknesses • Lack of market share and growth since inception • Lack of brand awareness • Under-capitalization • Non-regionalizaton and lack of support infrastructure • Don’t get into a price war • Don’t take things personally • Don’t be defensive - always be professional • Don’t give up on a prospect even if they select the competition – there is always a chance they may become a Les Mills licensee in the future