Electronic Retailer - May 2012 - 24

LEADING A FITNESS REVOLUTION

epidemic to the forefront and garnered industry recognition as the 2011 Marketer of the Year.

A Fitness Foundation
In 1996, Congdon joined GuthyRenker, bringing with him brand marketing experience from his stint at Procter & Gamble. It was during his time at the company that he met Daikeler, a seasoned marketing professional who hailed from leading DR marketing firms like Quantum, National Media and Synchronal Corp. Most notably, he co-founded TelAmerica Media, where he created 8-Minute Abs. The two men collaborated on multinational marketing campaigns and eventually decided to launch their own business venture. Daikeler secured funding from 20 angel investors and in 1998, formed Product Partners along with the Beachbody brand. During those early days, they had no idea the business would evolve into a fitness company. “We basically said let’s try proven categories in the direct

“Instead of being the industry that tricks people into fitness gimmicks, this could be the industry that literally is responsible for ending the trend of obesity in this country.”
– Carl Daikeler, co-founder, chairman and CEO
taking a pill to lose weight while they slept. We knew there was a population of people who weren’t buying the other products on TV because they knew they were fake.”

response television space and whichever one works for us, that’s who we’ll be,” notes Daikeler. This was by no means a shot-in-the-dark business strategy, but a natural gravitation toward fitness and nutrition. Congdon adds, “I think we were destined to be what we became because we both liked being in shape and enjoyed our respective sports and activities.” The key was developing effective products with brand recognition that earned consumers’ trust. Daikeler says DRTV served as the foundation for the Beachbody business model. However, the industry veterans believed many of the DR fitness products on the market at the time lacked substance, and although successful, offered false guarantees and quick gimmicks. “The products that promised results without any effort posed serious challenges to our business model, which promoted hard work,” notes Daikeler. Yet products like Tae Bo and Bowf lex, he says, showed it was possible for “legitimate fitness to sell on TV.” Beachbody strived to think outside the box with its infomercials and buck the DRTV trend. Daikeler recalls “media agencies, telemarketers and other marketing peers in the DR business saying, ‘You’re crazy if you think you can sell something that looks hard on TV!’” C ongdon ex pla i ns , “We separated ourselves from the competition by appealing to consumers who understood that our products really worked rather than marketing to people who The ‘Super Workout’ at the Beachbody Coach preferred the easy way out by Summit 2011. 24
electronicRETAILER | May 2012

Brand Equals Brawn
In 2001, Beachbody marked its first hit with Power 90, a 90-day in-home boot camp. The company celebrated the success of its second hit, Slim in 6, a year later. In fact, the product crossed over the $100 million sales mark in 2004. Then in 2005, Turbo Jam helped increase Beachbody’s revenue even more. “Once we saw the success of Power 90 and Slim in 6 and that a percentage of customers were willing to devote five days a week to hard work, that fed our ambition to see how far we could go by creating P90X. It’s our biggest hit product to date,” affirms Daikeler. “P90X really set the tone for the commitment the company would make to being a frontrunner in developing inhome fitness programming.” That meant holding the company and the brand to a higher standard. “Jon and I remember a moment when we were talking about the prospect of selling an Ephedrine-based supplement for weight loss and Jon said, ‘This is the kind of decision that you can never turn back from. We’ve created goodwill with our Power 90 and Slim in 6 customers. If we break that promise, we will become a very different company … and probably not the company that you nor I want to be.’” Daikeler refers to it as their “watershed moment.” Like any direct response marketer, the company is bombarded by a constant onslaught of people pitching their products. He says they turn down about

Chris Frawley Photography



Electronic Retailer - May 2012

Table of Contents for the Digital Edition of Electronic Retailer - May 2012

Calendar of Events
Your Association, Your Bottom Line
Industry Reports
FTC Forum
eMarketer Research
IMS Retail Rankings
Jordan Whitney’s Top Categories
From the Executive’s Desk
Cover Story Leading a Fitness Revolution
ERA’s in Your Corner on the Key Issues
10 Secrets to Slashing Production Costs
Guest Viewpoint
Teleservices
Creative
Legal
Fulfillment
Member Spotlight
Advertiser Spotlight
Bulletin Board
Advertiser Index
Classifieds
Rick Petry
Electronic Retailer - May 2012 - cover1
Electronic Retailer - May 2012 - cover2
Electronic Retailer - May 2012 - 3
Electronic Retailer - May 2012 - 4
Electronic Retailer - May 2012 - 5
Electronic Retailer - May 2012 - 6
Electronic Retailer - May 2012 - Calendar of Events
Electronic Retailer - May 2012 - Your Association, Your Bottom Line
Electronic Retailer - May 2012 - Industry Reports
Electronic Retailer - May 2012 - 10
Electronic Retailer - May 2012 - 11
Electronic Retailer - May 2012 - 12
Electronic Retailer - May 2012 - FTC Forum
Electronic Retailer - May 2012 - eMarketer Research
Electronic Retailer - May 2012 - 15
Electronic Retailer - May 2012 - IMS Retail Rankings
Electronic Retailer - May 2012 - 17
Electronic Retailer - May 2012 - Jordan Whitney’s Top Categories
Electronic Retailer - May 2012 - 19
Electronic Retailer - May 2012 - From the Executive’s Desk
Electronic Retailer - May 2012 - 21
Electronic Retailer - May 2012 - Cover Story Leading a Fitness Revolution
Electronic Retailer - May 2012 - 23
Electronic Retailer - May 2012 - 24
Electronic Retailer - May 2012 - 25
Electronic Retailer - May 2012 - 26
Electronic Retailer - May 2012 - 27
Electronic Retailer - May 2012 - ERA’s in Your Corner on the Key Issues
Electronic Retailer - May 2012 - 29
Electronic Retailer - May 2012 - 30
Electronic Retailer - May 2012 - 31
Electronic Retailer - May 2012 - 10 Secrets to Slashing Production Costs
Electronic Retailer - May 2012 - 33
Electronic Retailer - May 2012 - 34
Electronic Retailer - May 2012 - Guest Viewpoint
Electronic Retailer - May 2012 - 36
Electronic Retailer - May 2012 - 37
Electronic Retailer - May 2012 - 38
Electronic Retailer - May 2012 - Teleservices
Electronic Retailer - May 2012 - Creative
Electronic Retailer - May 2012 - Legal
Electronic Retailer - May 2012 - Fulfillment
Electronic Retailer - May 2012 - 43
Electronic Retailer - May 2012 - Member Spotlight
Electronic Retailer - May 2012 - 45
Electronic Retailer - May 2012 - Advertiser Spotlight
Electronic Retailer - May 2012 - Advertiser Index
Electronic Retailer - May 2012 - Classifieds
Electronic Retailer - May 2012 - 49
Electronic Retailer - May 2012 - Rick Petry
Electronic Retailer - May 2012 - cover3
Electronic Retailer - May 2012 - cover4
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