Electronic Retailer - May 2012 - 25

99 percent of them because they’re very disciplined about what Beachbody offers on TV.

The Brand Evangelists
As much as DRTV has been the main driver toward generating sales from the company’s DVD sales, the internet has been a critical component in sustaining customer loyalty and generating priceless word-of-mouth. In 2001, the company made a concerted effort to develop strong relationships with its customers by creating one of the only products to bear the Beachbody brand name, Team Beachbody. Daikeler’s goal was to establish the largest community of health and fitness-related peer support in the world, devoted to a three-pronged approach: 1) stay active, 2) improve your nutrition and 3) share the experience with people around you. The online community took off like gangbusters. “Carl realized that they were becoming brand evangelists and if we gave them the ability to do some marketing for us, we could also transcend DRTV and grow our company without having to make a hit product every year to succeed,” says Congdon. “That was a very interesting moment because most of the time in the DR industry, the business model is to make a hit on TV, build a lot of awareness and demand and then blow it out at retail,” explains Daikeler. Instead, Beachbody made a bold decision: Rather than put its products in retail and undermine the strength of its TV model, the company would follow a network-marketing model by turning Beachbody brand evangelists into entrepreneurs. Thus, in 2007, the company unveiled the Team Beachbody Coach Network, the first multi-level marketing (MLM) business focused on a holistic approach to fitness and weight loss. The database comprises 7 million people and leverages $100 million a year in advertising. The MLM currently has more than 70,000 distributors – or what the company refers to as Team Beachbody Coaches. “When we launched the Team Beachbody network, it was like a light

went off and we realized this business model of fitness, good nutrition, peer support and financial rewards might actually be the one thing that could end the trend of obesity in this country,” says Daikeler. “When somebody has a financial incentive to lose weight and keep it off because they get paid when they inspire somebody else to lose weight and keep it off, they’re

more likely to stay the course. They could get a share of the revenue created by their hard work.” Think of it as a symbiotic relationship that links DRTV to network marketing. He adds that the financial reward doesn’t exist anywhere else in the industry today. What’s more, the company went one step further by developing a group of products exclusive to the

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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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