Gym Buddies

A sounding branding exercise

UK singer Alesha Dixon has inked a four-year profit-sharing deal with the LA Fitness gym chain. The partnership is part of a massive £30M marketing drive in 2010 by the gym’s owners The Kirk Sandall company. The revenue share deal – based on the company’s success over the four year period – will see the singer acting as the face of the company. In addition she will work alongside the LA Fitness board devising new dance and exercise routines and advising on health and fitness issues. Each month the singer will offer personal advice and health tips via a column on the company’s website.“I chose to work with LA fitness because they have a great product that’s accessible to everyone. I’m really looking forward to helping them develop the business” said Dixon.

The gym chain is rolling out a £1M integrated campaign as part of its partnership with the singer/presenter. The six-week campaign will include outdoor, digital, press ads and direct marketing. In addition Capital Radio is offering listeners the chance to take part in a workout with Alesha at an LA Fitness club in London. LA Fitness hopes the strategic partnership will increase membership sign ups threefold in January 2010 compared to January 2009.

So what?: The once buoyant gym marketplace – which saw gains of 23% between 2004 and 2008 – has been hit hard in the economic slump. With membership numbers dwindling the various fitness chains are pursuing ever more aggressive marketing tactics in order to secure new converts. Alesha Dixon herself has been racking up a number of brand alignments post her appearance (and subsequent return as a judge) on UK dance talent show ‘Strictly Come Dancing’. Ad and campaign deals with Ford, Veet, Nectar, Robinsons, and the clothing label Dune have followed, to name but a few. What is interesting about this particular deal is that is more than just a straightforward endorsement partnership. This time it’s performance related, as opposed to walking away with a cheque after a photo shoot. Dixon’s remuneration is going to be based on the success of the chain over the course of the deal, with estimates suggesting her top end earnings could ultimately be three times bigger than the lowest she could net. What this means from the brand’s perspective is that Alesha – much like the attendees at the gym – is going to have to work this deal as hard as she can in order to get the best results.

“Celebrity endorsements are becoming ever more complex. This kind of revenue share deal is enticing to both parties as not only does it prompt greater commitment from the celeb (Alesha Dixon) but also a deeper level of brand affiliation for LA Fitness”
Alistair Thompson, Events & Partnership Manager, MTV

www.lafitness.co.uk/alesha