SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL

FULFILLMENT OF GRADUATE DEGREE IN BACHELOR OF

BUSSINESS ADMINISTRATION WITH COMPUTER AIDED
MANAGEMENT

UNDERSTANDING CONSUMER
BEHAVIOUR FOR BRAND
DEVELOPMENT
SUBMITTED BY:
Aditya Srivastava
BBA (CAM) (2007-2010)
044151907

INDUSTRY GUIDE FACULTY GUIDE

Mr. MAYANK SEHGAL
AREA HEAD MARKETING
MBS GYMKHANA LTD

1
 TO WHOM IT MAY CONCERN

This is to certify that ADITYA SRIVASTAVA, undertook training on

UNDERSTANDING CONSUMER BEHAVIOUR FOR BRAND
DEVELOPMENT from 4th June 2009 to30th July 2009.

Ms. Shikha Gupta has successfully completed the projects under the guidance of
Mr. Mayank Sehgal and Nikita Singh. She is a sincere and hard-working student
with pleasant manners.

We wish all success in her/him future endeavors.

Signature
NIKITA SINGH
CORPORATE MARKETING HEAD

Signature
MAYANK SEHGAL
AREA HEAD MARKETING

2
 CERTIFICATE OF ORIGIN

This is to certify that Mr.ADITYA SRIVASTAVA, a student of Graduate Degree

in BBA(CAM), Chanderprabhujain College of higher studies, Narela has worked
in the MBS GYMKHANA LTD, under the able guidance and supervision of
MR. MAYANK SEHGAL, AREA HEAD MARKETING, MBS GYMKHANA
LTD.

The period for which she was on training was for 8 weeks, starting from 4th.june
2009 to 30th.July 2009. This Summer Internship report has the requisite standard
for the partial fulfillment the Graduate Degree in BBA(CAM). To the best of our,
knowledge no part of this report has been reproduced from any other report and the
contents are based on his experience.

Signature

(Ms. ANCHAL CHHABRA)

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 ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide Mr.Mayank Sehgal, Area

Head Marketing, MBS Gymkhana Ltd, for his able guidance, continuous
support and cooperation throughout my project, without which the present work
would not have been possible.

I would also like to thank the entire team of MBS Gymkhana Ltd., for the constant
support and help in the successful completion of my project.

Also, I am thankful to my faculty guide Ms. Anchal Chhabra of my institute, for

her continued guidance and invaluable encouragement.

Signature
ADITYA SRIVASTAVA

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 TABLE OF CONTENTS

Chapter No. Subject Page No.

1 Executive Summary 7

2 Overview 8
a. Objectives 10
b. Research methodology 12

3 Background to the problem 17

4 Review of literature 19

5 Marketing strategies 26

6 Industry Profile 30

7 Major Players 36

8 Company Overview 43

9 SWOT analysis 61

10 Findings and Analysis 68

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EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY

Training at Fit India has given me thorough insight into the Indian Health industry sector. Fit
India is a new fitness center that is established in Guwahati.

I was assigned to work in the MANAGEMENT department which looks after the sales,
memberships and corporate services of Fit India. Under Marketing division there has been a
further subdivision into various groups which handle the different marketing solutions provided
by the organization.

As a part of my training I was required to find out the “Understanding of consumer behavior”

The significance of this dissertation is four-fold:

 To provide a snapshot of the health club market in Guwahati, India.

 To reveal trends in the health and wellness industry with special reference to Fit-India
fitness centre.

 To identify the demography of the users of Fit-India fitness center.

 To define marketing strategies to be used by ‘Fit-India health club’

I covered four areas in the duration of the survey, as follows:

1. Personal Marketing/Relationship Marketing/Corporate Marketing

2. Cold calling/Customer Relationship Management
3. Responsibility as a Manager
4. Drafting a Case / Presentation
OVERVIEW

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Fit India is one of the newly established fitness center in Guwahati. Fit-India promises a healthy
and balanced life to you. In a short span from its launch of services, Fit India is one of the most
respected names in the Indian Fitness sector and has acquired an enviable list of customers.

Our mission is to provide fitness solutions to people by using our team of expert trainers and
dieticians. Spread in thousands of square feet in approved commercial premises with
extraordinary ambience, Fit India is one of the club with a combination of luxury and
professionalism. Excellent interiors with state-of-the-art infrastructure and highly advanced
equipments have contributed to the success of our Brand.

With exotic spas and different facilities, Fit India guarantees a more relaxed and fit you.

Relationship marketing is a valuable element when it comes to a successful business. This

marketing type focuses on the fact that customer retention and the overall satisfaction of those
customers as a whole is an essential component to the overall success of a business. There were
marketing campaigns conducted which implemented the use of direct responses in order to
confirm the basis of the relationship marketing practice.

The scope of relationship marketing is to zoom in on a particular audience when it comes the
promotion of certain services and various products. This form of marketing takes the interests of
the people that it is seeking to appeal to, and uses that information in order to appeal to the
senses of these people. Relationship marketing is a key component to creating, and building long
term relationships that can be productive, beneficial, and long lasting to all of the individuals,
clients, and businesses involved.

FitIndia health and fitness club is the place to relax, retreat, and re-connect. The staff makes sure
you have everything you need to be perfectly comfortable.

It Provides facilities & services for:

 Main workout area

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  Cardio Area/ Theatre
 Group Exercises Classes
 Aerobics
 Gymnasium & SPA

Objectives

Primary Objectives:

 To provide a snapshot of the health club market in Guwahati, India

 To reveal trends in the health and wellness industry with special reference to Fit-India fitness
centre

 To identify the demography of the users of FitIndia fitness centers.

 To define marketing strategies to be used by ‘Fit-India health club’

Secondary Objectives:

 Personal Marketing/Relationship Marketing/Corporate Marketing

 Customer Relationship Management/Direct Marketing
 Responsibility as a Manager
 Presentation

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METHODOLOGY

Choice of research design

Despite the difficulty of establishing an entirely satisfactory classification system, it is helpful to

classify marketing research on the basis of the fundamental objectives of the research.
Consideration of the different types, their applicability, their strengths, and their weakness will
help the student to select the type best suited to a specific problem.

The three general types of research are as follows:

1). FUNDAMENTAL RESEARCH

2) ANALYTICAL RESEARCH

3) DESCRIPTIVE RESEARCH

Descriptive research includes surveys and fact finding enquiries of different kinds. The major
purpose of descriptive research is description of the state of affairs as it exists at present. In
social science and business research we quiet often use the tern ex post facto research for
descriptive research studies. I have used this research in order to accomplish my project. What I
did in my project report is explained below.

First, I had to know about FitIndia Gym . Before doing the survey I had to know about the
competitors available. Since marketing is a important issue that is mostly look after by the
managers hence I had to trace the market and segment.

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SAMPLING TECHNIQUE USED & SAMPLE SIZE - WHY?

Sample design is a definite plan of obtaining some items from the whole population. The sample
design used in this project is two state sampling i.e. Cluster and convenience. In the probability
sampling methods, each items in the sample is chosen one at a time from a complete list of
universe elements. In marketing research practice, it will sometimes be more expedient to select
clusters or groups of universe elements, rather than to choose sample items individually.

SAMPLING
1. Sampling Technique : Non probability sampling

(A non probability sampling technique is

That in which each element in the

Population does not have an equal

Chance of getting selected)

2. Sample Unit : people who work in Gym.

3. Sample size : 50

4. Method : Direct interview through questionnaire.

5. Data analysis method : Graphical method.

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 6. Area of survey : Lal Ganesh ( Lokhra)

7. Timing of survey : 05:00 pm to 10:00 pm

DATA COLLECTION TOOLS

 Primary data. The major source of primary data was the information and questionnaire
collected from the journal and the customers. The information collected from the journals
and the trainer can also be referred to as the primary data.

 Secondary data. The major source of secondary data was the reference books and
company’s website. The company’s articles and magazines were also referred to for the
information.

GYM ACTIVITY- METHOD USED FOR DATA COLLECTION

I. Questionnaire was prepared keeping the objective of project in mind.

II. Questions were asked to respondents as regards to there willingness to join the Gym.

III. The help of questionnaires conducted direct interviews, in order to get accurate
information.

IV. Customer has approached me for accurate information about the Gym.

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BACKGROUND OF THE PROBLEM

Brands are some of the most valuable assets companies own. The overall goal of thisis to analyze
the brand management decisions that must be madeto build, measure, and manage a brand.
Particular emphasis is placed onunderstanding psychological principles at the consumer or
customer level thatwill improve managerial decision-making with respect to brands

“Fit India” is a new brand that has entered newly in the health. Consumers and retirement homes
have turned brain-fitness games and exercises into commercial hits, so now some consumers and
employers are incorporating them into wellness programs that promote health for the mind as
well as the body. As there are many health and fitness clubs that are already major players in this
market. Fit India has to create its brand awareness in the mind of the customers.

Upon completion of the project we

 have to attain a thorough understanding consumers develop brand attitudes and

behaviors,

 know the issues, techniques, and decision options in analyzing, planning and managing
brands,

 be able to apply the acquired knowledge to make informed and more successful decisions
in real-world branding problems.

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Consumer behavior is the fundamental to marketing as marketing is concerned with supplying
and anticipating customer requirements; therefore understanding how customers behave is at the
very heart of the marketing concept. To understand the consumer behavior was the main aim as
the behavior of the consumer differ according the demography.

The major players with Fit India in the market were Gold gym which is an internationally
acclaimed gym, second is Fitness First which is again an international player and has over 50
centres in India. Thirdly Talwalkar’s which started from Mumbai and now has 18 centres across
India.

LITERATURE REVIEW

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LITERATURE REVIEW

CONSUMER BEHAVIOR

Consumer behavior (in consumer business context) is referred to as the study of when, why,
how, where and what people do or do not buy products. It blends elements from psychology,
sociology, social psychology, anthropology and economics. It attempts to understand the buyer
decision making process, both individually and in groups. It studies characteristics of individual
consumers such as demographics and behavioral variables in an attempt to understand people's
wants. It also tries to assess influences on the consumer from groups such as family, friends,
reference groups, and society in general .Customer behavior study is based on consumer buying
behavior, with the customer playing the three distinct roles of user, payer and buyer.

Relationship marketing is an influential asset for customer behavior analysis as it has a keen
interest in the re-discovery of the true meaning of marketing through the re-affirmation of the
importance of the customer or buyer. A greater importance is also placed on consumer retention,
customer relationship management, personalization, customization and one-to-one marketing.

In Fit India our main motive was to study the consumer behavior of the clients in respect to
demographics. According to the area the annual gym scheme was offered at RS 10000 which
was quite reasonable according to the locality.

Consumer behavior as 'the process and activities people engage in when searching for, selecting,
purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs
and desires'.

Consumer behavior yesterday, today and tomorrow

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The individual-oriented consumer behavior of the post will change a more collective style in the
1990s.

As the new decade creeped in and the new century approached, a time has come to reflect upon
and predict the consumer's behavior in the marketplace. Many things have changed since the end
of mass marketing and the beginning of market segmentation.

In the past females never carved for gymnasiums, but which the changing environment females
want fitness programmes to keep them fit.

Fit India according to the changing consumer behavior designed special female fitness
programmes. Contrary to popular belief, weight and resistance training is very important
for women of all ages. Instructed properly under the tutelage of Fit-India's trainers, the
risk of injury is mitigated to non-existent levels.

To address the other concern or inhibition as it may be appropriately described. Weight training
programs at Fit India are not designed to make you look like "masculine". Strength training
programs for women ensure well-balanced, injury free lifestyles for modern living.

BRAND AWARENESS OF “ADDICTION”AMONG CUSTOMERS BY

FORMULATION OF DIFFERENT SCHEMES

Increasing brand awareness is one of the major goals of the company. Addiction also to increase
the brand awareness and their clientale launched different schemes according to demography. As
on 25th dec 2018 Fit India introduced an inaugural offer scheme “BUY 1 YEAR
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SUBSCRIBTION IN RS 10000 ONLY”. In a month’s time they had a sale of Rs 2.6 lakh in that
month. The members who joined in the first month were around 26. The inaugural scheme was a
great success. It was more than what the company had expected.

Another scheme that was introduced was rupees 35/- per day for an annual gym. It came out to
be rupees 12775/- for a year.

A monthlyscheme was also introduced in which the member could avail gym facility in just
rupees 1999/-.

To increase the brand awareness of the company the marketing strategies adopted by the
company were:

 Direct marketing
 Telemarketing
 Couponing
 Co branding
 Door to door leaflet marketing
 Advertising in newspapers
 Direct mails.

MARKETING
STRATEGIES

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MARKETING STRATEGIES – “ADDICTION”

DIRECT MARKETING

Direct marketing was a sub-discipline and type of marketing. There were two main definitional
characteristics which distinguished it from other types of marketing. The first was that it attempts
to send its messages directly to consumers, without the use of intervening media. This involved
commercial communication (direct mail, e-mail, telemarketing) with consumers or businesses,
usually unsolicited. The second characteristic was that it focused on driving a specific "call-to-
action." This aspect of direct marketing involved an emphasis on trackable, measurable positive
(but not negative) responses from consumers (known simply as "response" in the industry)
regardless of medium.

Direct marketing is attractive to many marketers, because in many cases its positive effect (but
not negative results) were measured directly. For example, we send out five thousand
solicitations by mail, and three thousand customers were tracked as having responded to the
promotion, we could say with some confidence that the campaign led directly to the responses.
The number of recipients who are offended by the junk mail/spam, however, were not easily
measured.

TELEMARKETING

The second most common form of direct marketing used was telemarketing in which we
contacted consumers by phone. By this process many of the consumers were informed about the
different schemes.

People interested could register on the phone also to avail the special schemes.

COUPONING
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Coupons in newspapers and magazines cannot be considered direct marketing, since the
marketer incurs the cost of supporting a third-party medium (the newspaper or magazine);
coupons were designed specifying different schemes available for the month of July. Coupon
were the most effective way to increase the brand awareness and sales of the company

CO BRANDING

To put in the words of inter-brand definition, "Co-branding is a form of co-operation, in which

all the participants' brand names are retained."

Co-branding as, "two or more well-known brands combined in an offer" like Addiction and
Kazo (the apparel brand) and each brand sponsors expect that the other brand name will
strengthen the brand preference or purchase intention and hope to reach a new audience.

Most companies have explored co-branding at one time or another. But few have realized its full
potential. While there are many forms of co-branding; before a company can decide which
option makes the most sense for its situation, it must fully explore four main types of co-
branding.

DOOR TO DOOR LEAFLET MARKETING

Leaflet Distribution services were used extensively by the health industries, and many other
business focusing on a local catchment Business to consumer business model, similar to direct
mail marketing, this method is targeted purely by area.

DIRECT MAILS

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The most common form of direct marketing is direct mails sometimes called junk mail, used by
advertisers who send paper mail to all postal customers in an area or to all customers on a list.

Any low-budget medium that can be used to deliver a communication to a customer can be
employed in direct marketing. Probably the most commonly used medium for direct marketing is
mail, in which marketing communications are sent to customers using the postal service. The
term direct mail is used in the direct marketing industry to refer to communication deliveries by
the Post Office, which may also be referred to as "junk mail" or "ad mail" or "crap mail" and
may involve bulk mail.

INDUSTRY PROFILE

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INDUSTRY PROFILE

BUSINESS OF GOOD HEALTH

A modern day gym is a facility where you work out, meditate doing some yoga, feel good with
some aerobics exercise, and relax your senses with a day spa and then look good by grooming at
the saloon. Personal trainers get more and more pro-fessional and gyms make sure your follow
the diet prescribed by providing the meals at your doorstep! This industry combines luxury and
exclusivity to the experience of a fitness centre with a professional approach to help individuals
develop to the best of their needs.

Not many years ago a plump Sridevi or a flabby Rishi Kapoor were accepted as superstars by
their fans. Things have changed now and today, the badshaahs of the in dustry require six-pack
abs and the queens need lissome charms to woo their fans. A well-toned body is not merely a
requirement but an obsession. The craze among the Bollywood stars is only a reflection of the
society that is getting serious about battling the bulge. Encashing this trend are the modern
gymnasiums that are adopting a comprehensive approach to the health and well being of its
members.

Gymnasiums have thrived for long in small apartments converted into exercise dens. However,
with popular international health chains entering the country and do-mestic players getting
organized, this new base of theirs is becoming a haven for the fit-ness freaks. Largely referred as
'fitness or health centers’, these are no less than 10,000 sqft in area and include a work out area,
yoga studios, aerobics studios, sauna and steam rooms, day spas, swimming pools, massage
centres, food courts servingholistic food and even DVD libraries ensur-ing relaxation and
entertainment!

As per recent estimates, the fitness and wellness segment in India can be valued at Rs 2,500
crore. The growing segment and increasing number of health conscious Indians is attracting
global players. For instance, Fitness First, UK's popular international chain of health dubs,

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recently made its debut in India. Vikram Aditya Bhatia, the managing director of Fitness First
India Private Ltd, describes the facility as a large-format gym.

Apart from modern equipment and machines, members can avail free beverages and DVD
library. "The idea is to create a place other than the place to love and work. The comfortable
ambience would encourage people to spend quality time here," says Bhatia. The first center has
come up in Gurgaon and next will open soon in Connaught Place in New Delhi. It will be spread
over 24,000 square feet. The company plans to invest Rs 12-16 crore in each dub and Rs 200
crore over the next three years in India. The center promises to provide five-star fitness at
afford-able prices. The membership is available at Rs 3000 per month ex-clusive of taxes. If one
opts for a per-sonal trainer, Fitness First offers a wide variety of packages ranging be-tween Rs
600 to Rs 1,500 per session. Another popular international chain Gold Gym already has its
presence in India. It offers the latest equipment and services including group exercises, personal
training, cardiovascular equipment, spinning and yoga, while maintaining its core weight lifting
tradition. Additional facilities include steam, luxury massages and a juice bar.

The idea of complete fitness centre hasattracted many entrepreneurs as well. Take for instance,
the two IIM Ahmedabad graduates Nikhil Vaswani and Rohit Shankar. Their brainchild
Wellocity is a ‘wellness centre’ offering programs customized to your requirements. The USP of
this centre is to focus on “helping you implement the programs” essential for your fitness. Our
extensive service lines ensure that the requirements of your wellness programs are fulfilled and
obstacles experienced in your path to wellness are minimized.

It is well known that a healthy diet plays a significant role in keeping your body fit. Yet
maintaining that diet is the biggest obstacle given the modern hectic lifestyles and temptations of
fast food. A side from gymnasium that offers a customized workout package. Addiction offers an
aerobic studio, a yoga studio, a kickboxing center, a day spa and saloon. The centre takes care of
providing the right atmosphere to exercise. While live DJ creates lively ambience at the
gymnasium, peppy music provides an ideal setting for aerobics workouts.

A healthy mind is vital for attaining a healthy body. What better way to unwind your mind
through yoga or may be a relaxing massage.

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THE RISE OF THE GYM THROUGH HISTORY

Many of us have gym membership or attend classes at a local gym on a frequent basis: in India,
gyms are a million industry, and it's estimated that 12% of the population regularly attend the
gym.

But fifty years ago, gyms as we know them today just didn't exist.

Ancient Greece: The First Gyms

The word "gym" is a contraction of "gymnasium" - derived from the ancient Greek word
gymnasion. The ancient Greek gymnasiums were places where athletes trained for public games
such as the Olympics. Many had libraries (going a bit further than the traditional stack of
magazines in modern gyms...)

19th Century Gyms: Schools, Colleges, YMCA and Turners

After the ancient Greeks, gyms disappeared for centuries. Medieval and Renaissance life was
physically arduous enough, and ordinary people got all the exercise they needed working on the
land and carrying out chores.

By the 19th century, though, schools and colleges were building gymnasiums (and even today,
the word "gym" means "school gym class" to many people). The YMCA also built a number of
gyms for physical exercise and social sports and games.

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During the mid 19th century, the Turnvereins (gymnastics unions) movement led to the founding
of Turners, German-American gymnastics clubs. These had a political as well as an athletic
element.

1930s - Boxing Gyms

A form of gym known as the "boxing gym" began to appear in the 1930s, with the founding of
CusD'Amanto's Gramercy Gym in Manhattan in 1939.These gyms were to train fighters and
boxers - not places for general exercise.

1960s and 1970s - Early Gym Chains

Gold's gym chain, still going to day, was founded by Joe Gold in 1965 in Venice, California,
which became a landmark for bodybuilders (despite the dirty state of its equipment). Joe Gold
founded the World Gym chain in 1977.

1980s - Corporate Gyms

More and more gym chains were founded during the 1980s, including 24 Hour Fitness (1983)
and LA Fitness (1984).

Do you work in an office building with its own gym? The trend of corporate gyms began in the
1980s, too, as employers began to take on a greater responsibility for employee's health

Try This Today? If you work for a company without a gym, ask your boss about getting
corporate membership with a local chain - or get together with a bunch of colleagues and
approach the gym yourself.

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1990s onwards - Mass Popularization

Today, lots of people are or have been gym members - people who would never call themselves
"bodybuilders", "fighters" or even especially sporty. New gym chains have sprung up over the
past couple of decades; Lifetime Fitness in 1990, Equinox Fitness in 1991, and Virgin Active in
1999.

Widespread celebrity gym-going has encouraged the boon in gym membership, and gyms look
set to be popular for decades to come.

Try This Today? If you've thought about joining a gym, or going to an exercise class, give it a go
(most gyms offer free trials). You don't have to be "sporty", fit or co-ordinated to enjoy modern
gyms.

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MAJOR PLAYERS

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MAJOR PLAYERS IN INDIAN HEALTH CLUB INDUSTRY

GOLD GYM

Gold’s Gym started in Venice California in 1965, and soon became the hotbed for the
development of training techniques, equipment and nutritional concepts that formed the
foundation for the modern fitness revolution. In 1975, Gold’s Gym received international
attention when it was featured in the major motion picture, ‘Pumping Iron’. It was thus
effectively established as the ‘Mecca of Bodybuilding’.

Today, Gold’s Gym has over 680 facilities. It is the largest international gym chain in the world
recognized for its passion, unique heritage, and experience as the final authority in fitness and
lifestyle.

The India chapter of Gold’s Gym started in 2002, when the first Gold’s Gym India branch was
set up at Nepean Sea Road, Mumbai. In the next few years this number grew, and today Gold’s
Gym has cut out for itself 18 gym facilities in various cities of the country in Mumbai - at
Nepean Sea Road, Bandra, Worli, Santacruz, Andheri, Chembur, Mulund and Vashi and outside
Mumbai at Chennai, Ahmedabad, Baroda, Surat, Bangalore, Pune, Noida, Ludhiana, Kolkata,
Jaipur, Jalandhar and outside India in Dhaka, Bangladesh.

Gold’s Gym India has slowly and steadily carved its name in the Indian market and built a
reputation to reckon with.

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FITNESS FIRST

Fitness First Gym & Health Club started as a single health and fitness club in Bournemouth, UK
in 1992.

Since then, it has grown quite a bit - we're now the largest gym, health and fitness club group in
the world with more than 1.5 million Fitness First members in over 550 clubs worldwide. In Asia
Pacific alone, we have over 140 clubs! But we still keep that Fitness First one-health club
mentality - every single Fitness First member counts.

It has a motto at Fitness First that sets us apart – Real People, Real Results. We're proud to say
that more people achieve their health and fitness goals with Fitness First than at any other fitness
club!

As the fastest growing fitness chain club, it will continue to deliver on its promise of guaranteed
value and its aim is to help you achieve your fitness goals - a simple formula with a proven track
record of success!18 countries, over 500 clubs, 1.4 million members and growing worldwide.

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POWERHOUSE GYM

Powerhouse gym India is brought to you by Q’s Fitness Studio. Q’s Fitness Studio was started in
the year 1999. It was in the year 2005 when Q’s Fitness Studio brought Powerhouse Gym to
India. Powerhouse Gym had a launch of its Indian operation on 26th November 2005 with state
of art 6000 sqft area facility at Concorde Co-op Housing Society, Ns Road No 10, Juhu.

Two existing braches running under Q’s Fitness Studio are now called Powerhouse Gym.
Powerhouse Gym India is a Ltd Company concern of Powerhouse Fitness Ltd, the chairperson,
Ashok Gupta who has a Master Franchisee for SAARC Countries (India, Nepal, Bhutan,
Pakistan, Bangladesh, Srilanka and Maldives).Powerhouse Gym India has state of art facilities,
be it equipments, technology and fitness programs that are required to get the desired results for
the members.

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TALWALKAR’S

Established in 1932, Talwalkar’s Better Value Pvt Ltd (TBVF), commonly famous as
Talwalkar’s, is India's largest chain of health centres. It has 45 ultramodern branches across
major cities in the country, with 50,000 members.

Talwalkar’s' phenomenal growth can be attributed directly to the trust our customers have in us,
and the benefits they derive from our expert advice, personalized supervision, on-going facility
upgrades, result-oriented approach, and above all from Talwalkar’s' immense know-how and
experience in this field over 75 years of existence.

Talwalkar’s was founded by the late V.R.Talwalkar in 1932, as a single one-room facility in City
light, Mumbai. Son Madhukar Talwalkar’s gave the business a new direction by imparting a
scientific, disciplined and customer-friendly perspective to the fitness and health regimes offered
at the gyms. Today, Talwalkar’s gyms are perceived not as a meeting place for boisterous
bodybuilders, but as a health centre where customer health priorities are managed with
sensitivity and care. The user-friendly environs and world-class facilities make the Talwalkar’s'
experience wholesome and encouraging.

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CELEBRITY FITNESS

Celebrity Fitness was founded by John Franklin in 2003, and commenced operations in
February 2004 with the opening of Jakarta's groundbreaking EX club. The Celebrity Fitness
name was chosen for a reason: it is meant to convey each member can exercise as if they are a
celebrity as the clubs are designed with Hollywood and Beverly Hills' standards in mind, to
pamper and give first quality service to our members. Staying true to the entertainment
ambiance, Celebrity Fitness' venues are exclusive malls so that members can conveniently shop,
dine-in and go to the cinema after working out in the gym.

Celebrity Fitness pioneered the concept of combining a fitness center and entertainment
ambiance in Indonesia. Moreover, Celebrity Fitness contributes tremendously to the increased
awareness of health and fitness in its operating markets today. Celebrity's gym experience
proved hugely popular, prompting the group to expand its gym network in Jakarta and grow
overseas (starting in 2005 with the 1 Utama club in Kuala Lumpur). As the premier regional
fitness center, Celebrity Fitness constantly pushes to provide the best service to its members by
tailoring programs and offerings for our members' satisfaction.

In December 2007, Navis Capital Partners ("Navis") partnered with Celebrity Fitness. Navis

31
will bring its various resources to assist Celebrity Fitness to expand its product offering in its
existing markets, as well as internationally.

Celebrity Fitness is the fastest growing fitness company in Asia with 41,000 active members
just in Jakarta alone. The branches in Surabaya, Kuala Lumpur and Penang have been getting
enthusiastic, positive feedback from members. Celebrity Fitness enjoys its image as trendy
destinations for the vigorous, urban and cosmopolitan community and will continue to strive to
provide the best fitness experience possible. Celebrity Fitness launched India with the club at
JMD Mall Gurgaon, and expects to open more clubs in its existing markets in the near future.

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COMPANY OVERVIEW

33
INTRODUCTION (Company overview)

“Experience the best moments of life”

LIST OF SEPARATE ENTITIES OF MBS GROUP

Club 61 Inc

Club 61 Inc is the oldest branch of MBS group which is the service provider of gym and spa.

Addiction gym and spa

MBS Group runs its gymnasium by the brand name of “Addiction”. It has 8 branches all over
Delhi and NCR.

MBS Securities
MBS Securities deals with shares and stock market

MBS PROPERTIES

MBS has a real estate business.

34
COMPANY PROFILE

History

Addiction was known by the name of Club 61 when Mr. Manmohan Daga, BrijmohanDaga
and ShreemohanDaga opened this health club. Later when they recognized some significant
efficiency in the company they thought of expanding and sharing the business knowledge. All
manner of business people (corporate trainees, fund managers, venture capitalists, management
consultants) need to get up to speed quickly regarding companies, industries, sectors,
technologies, regulations. In the dynamic economy and environment that we inhabit, these needs
arise frequently and their fulfillment is important for people to make the right business decisions
and decisions for their healthy life.

They learned – through various previous experiences – how most business people go about this
learning process: hunting down articles on the Internet, calling friends of friends and making
people aware about the need of health fitness after a hectic corporate life. We decided that we
would help to solve this problem for customers of knowledge by publishing guides and articles
that explained how health industries functioned. We spent around a year and half putting
together these primers before we were ready to begin selling them.

As they began talking to potential customers – primarily those of the higher income groups who
could invest money for fitness programs – we heard a good response. These potential customers
explained that it was a great idea to keep yourself fit and active. We realized the need of the
people and came up with different schemes and packages according to the different income
groups. As of a good response from the customer level we came up with another branch in South
extension and slowly and gradually in Janakpuri, Vikaspuri, East patelnagar, Shalimar Bagh with
the intention of connecting people to our firm who would become our clients. Hence, the brand
name ADDICTION was born.

35
MBS GROUP (Addiction Health Fitness Club)

MBS Group, is an independent primary health firm providing the customers with customized
tools and services to accurately meet their physical fitness needs, markets and industries. It
manages Delhi and NCR’s leading chain of health clubs.

The Addiction Gym Trademark is associated with service and quality. Addiction has one of the
largest expert training team who support this constantly growing health chain.

Addiction is a chain of unique and premier health club in Delhi and Noida. Addiction promises a
healthy and balanced life to you. In a short span from our launch of services, Addiction is one of
the most respected names in the Indian Fitness sector and has acquired an enviable list of
customers.

Our mission is to provide fitness solutions to people by using our team of expert trainers and
dieticians. Spread in thousands of square feet in approved commercial premises with
extraordinary ambience, Addiction is the only club with a combination of luxury and
professionalism. Excellent interiors with state-of-the-art infrastructure and highly advanced
equipments have contributed to the success of our Brand.

36
It Provides solution for:

 Physical fitness

 gymnasiums

 backaches

 weight reduction programs

 Aerobics

 Massages

 Group exercise classes

37
ADDICTION “the brand”

 Strong consumer base of approximately 19000 people belonging to the upper class of our
society.

 Fitness industry has been experiencing an unprecedented building and branding boom.

Our vision is to provide fitness solutions to people by using our team of expert trainers and
dieticians

Our mission is to become the largest chain of fitness center in India.

We take up our corporate responsibility to work for people of society to make them Healthy and
Health – risk free.

ADDICTION “the uniqueness”

Addiction’s corporate goal is to continue strengthening its leadership position in the fitness
industry through the persistent development of products, while continuing to set the standards for
quality excellence, customer satisfaction and product support.

We are Different.

We are Unique.

We are Addiction.

38
MARKET PRESENCE

 8 CENTERS TODAY
 5 CENTERS UNDER DEVELOPMENT
 20 ADDITIONAL SITES IDENTIFIED

39
BUSINESS DIVISIONS

 Gymnasium service: Addiction offers health services in all the 8 centres in Delhi and
NCR and 3 centres in Jaipur and it is one of the leading health service industries, based
on the number of customers

 Spa service: The group offers steam, sauna and showers services with the time duration
of one hour prior to appointments

 Massage service: It offers service for full body massage for the time span of one hour
subject prior to appointments

40
ADDICTION CLUB VALUES…

Innovation

Addiction will be generating and implementing entrepreneurial and innovative ideas,

which will create new growth engines.

Customer First

Addiction is committed to deliver services beyond the expectations of the customer in

order to satisfy the customer.

Performance culture

Addiction compares its processes and performances against world class standards. It
distinguishes between performers and non performers by valuing achievement at the
individual and team level.

Valuing Partnership

Addiction is committed to build exemplary relationship with its partners, which stand on
the principles of mutual trust and mutual growth

Valuing people

Addiction nurtures an environment where people are respected and their uniqueness is
valued. They believe that their employees are the key differences.

Responsible Corporate Citizenship

41
 Addiction is committed to make a positive and pre active contribution to the society. As a
responsible corporate citizen, it abides by all the environmental and legal norms

Ethical Practices

The highest ethical standards are maintained in all internal and external relationships.
Misuse or misinterpretation of any kind is not entertained

ADDICTION VISION STATEMENT & BRAND POSITIONING

In the upcoming years Addiction will be the most admired brand in India:

 Loved by more customers

 Targeted by top talent
 Benchmarked by more business

“In a service industry like fitness, people live a brand 24X7. It’s all about
experience and for Addiction ‘Brand consumer experience’ says Director,
BrijmohanDaga, MBS group ltd.

That’s now, but when fitness industries began in India a decade ago, the brand
was all about aspiration. That’s understandable, an annual gym package costs
about Rs 30000/- .

Naturally, the target customer was clearly defined: elite, up market professionals
and entrepreneurs. “We positioned Addiction as an aspirational and lifestyle
brand, in a way that trivialized the price in the mind of the consumer. It was
pitched not merely as a health service, but as something that gave him a badge
value”

42
 Addiction was on a power trip: logo was black, uppercase bold lettering, and the
base line was “experience the best moments of life”. From day one, it was decided
that the brand should always connote leadership- be it in services, innovations or
offerings.

This was also a time when customers needed to be educated: interest levels were high, but
customers exposure to the fitness world was limited. Addiction took out full and half ads in
newspapers, answering queries like “how to keep fit?”, “how to reduce weight?”

In 2007, the rules of game changed. The focus now was on the endless possibilities of
technology to make life good and healthy and advertising became two pronged, a service driven
that showcased new offerings like the Spouse membership, students membership that showed an
emotional communication that showed younger people.

The following year Addiction adopted the “Discover a new you in YOU” positioning, which
is also the current tagline. Now, the emotional angle was predominant- and stark, black and
white imagery to stand out in what was becoming a highly commoditized, crowded market.

“Customer service would prove more critical,We were very clear that Addiction will be a service
led brand” says director.

RELATIONSHIP MANAGEMENT

Accordingly, Addiction was the one of the fitness service providers to start customer centres,
where customers could pay their bills, apply for new memberships.

The way to the future, though, seems to be through scheme innovations such as pay for two
quarters get two quarters free, spouse membership in which second one gets 50% off, corporate
memberships.

43
The customer care centres, too, are metamorphosing into “relationship centres”, where members
cannot only pay their bills and have their queries answered. “what matters is what the customer
wants”, points out Area head.

Based on there vision statement their product Promotion strategy and Ad campaign is based.
Addiction is an successful brand. It has visible advertising.

Promotions, whose need is increasingly being felt by the surging services sector, will click if
they realize marketing objectives and reinforce brand values.

Other precautions too need to be taken in the case of promotions. For instance, too many
promotions can be detrimental to the health of a brand.

A brand, which is perpetually on price off, would not only lose key brand attributes but
also consumer interest. The consumer’s reasoning being if a product is cheaper now, does it
mean I was being overcharged earlier?

Similarly, if a brand is always doling out freebies, sales would be affected when there are no
freebies on offer. Marketers agree that no matter the market segment, for any promotion to be
successful it has to be a part of an overall marketing strategy and not a one-off sales driving
initiative.

44
ADDICTION CLUB: A FACT FILE

Name: MBS Group Limited

Business Description

Provides health services, aerobics, yoga, machinery and services to corporate) already defined

above.

Established July 07, 2006, as a Private Limited Company

Highlights

 Market leader with a market share of Delhi subscribers at 23.6%.

 Highest addition of 500 customers in a single quarter.

 Cash Profit of Rs. 12.75 lakh in one month

 Net Income of Rs. 15.25 lakh

Operational Network

Provides Gym and spa services in all the 8 centres in Delhi.

OrganisationStructure
As an outcome of a restructuring exercise conducted within the company; a new integrated
organizational structure has emerged; with realigned roles, responsibilities and reporting
relationships of Addiction’s key team players.

45
INCREASING MEMBERS RATIO WITH INCREASING BRAND
AWARENESS

MAJOR PARTICIPANTS

46
 MANAGEMENT STRUCTURE

MANMOHAN
DAGADIRECTOR
,MBS

U.S
BRIJMOHAN
DAGA

DIRECTOR,MBS

(MD, Global
Operation, U.S)
SHREEMOHAN
DAGA

DIRECTOR ,MBS

VIKASP SHALIM JANAKP SHOPPR SECTO EAST SOUTH KAUSH

URI AR URI IX R-25 PATEL EXTENSI AMBI
BAGH MALL NAGAR ON
MANAGER
MANAGER MANAGER MANAGER
MANAGER MANAGER
MANAGER MANAGER
TARUN TARUN NIKITA MAYANK
TARUN NIKITA MAYANK MAYANK

47
ADDICTION EXPANDS BUSINESS IN INDIA

ADDICTION INDIA’S one of the largest chain of health centres, has intensified the pace of its
expansion spree with the inauguration of eight new health centres across Delhi in a record span
of one year. In continuation with their mission of creating a healthier India, new Addiction health
centres are now fully operational in Jaipur, Delhi, Noida. With an investment of over Rs 4 crore
each Addiction health centres comes equipped with a gymnasium, counseling room, weight
loss/gain programs, cardio, spinning, resistance and free-weight training equipment. The
company plans to reach the 18 centres mark by this year-end.

Elucidating the rationale behind opening eight new centres together, BrijmohanDaga, managing
director, MBS group said, “Lately, the fitness industry is seeing a paradigm shift with people
aspiring for complete wellness rather than just staying fit. At Addiction, we are completely in
sync with consumer’s needs. Besides opening new health centres in cities and smaller towns, our
effort has been to introduce new services/facilities on a regular basis to help provide a complete
wellness package to our members.”

Speaking about the company’s focus on corporate membership aspect, Brij explains, “Corporate
membership will be a new focus area for us this year. With surging work pressure and stress
related ailments rampant amongst the corporate crowd, we felt the need to offer specialized
fitness packages to them at a discounted fee. We already have few large corporate firms availing
this service.”

Spacious and well-designed areas, elegant interiors, clear demarcation of space for different
types of work-out and state-of-the-art fitness equipments. Besides every centre has trained
personnel, which includes personal trainers, dieticians, physiotherapists and masseurs. The
instructors and nutritionists undergo intensive training prior to assuming their role. The trainers
secure high level certification after undergoing the training. Addiction soon plans to start the
hitherto untouched field of clinical exercises

48
KEY DEVELOPMENTS IN THE COMPANY

MBS Group and Ienegizer announced an agreement for the employees of Ienegizer for corporate
tie ups. Addiction customized special schemes for the employees of Ienegizer. Through this
collaboration, Ienegizer clients will be able to leverage Addiction’s functional expertise in help
to keep them healthy. The partnership represents a new and strengthened way of providing
employees a good way to keep themselves healthy.

MBS group was looking forward for the tie up with Kazo. It was a cross promotional activity, to
promote both the brands.

MBS group and Big Cinemas also announced an agreement for co branding. The privileged
customers of Addiction were offered special discounts at Big cinemas and likewise customers of
Big cinema who purchased tickets worth 1000/- were given 25% discount on addiction’s annual
schemes.

MBS Group and the Rock man search company announced a collaborative agreement designed
to strengthen the access to lead a healthy life after a hectic corporate life.

MBS group said, “Lately, the fitness industry is seeing a paradigm shift with people aspiring for
complete wellness rather than just staying fit. At Addiction, we are completely in sync with
consumer’s needs. Besides opening new health centres in cities and smaller towns, our effort has
been to introduce new services/facilities on a regular basis to help provide a complete wellness
package to our members.”

MBS Group announced to open 5 centres more by the end of 2009.

49
FRANCHISES

 East Patel Nagar- 9/14, New Delhi - 110008

 Shalimar Bagh - Unit No. 226-227 (Second Floor), 'Shop In Park'

 VikasPuri - #MF-2, Sonia Complex, 2nd Floor, Delhi-110018

 Noida- 2nd Floor, Shopprix Mall, Sector-61.

 South Extension - #E-17, NDSE Market, Part II, Delhi-110049

 Janakpuri – Lower Ground Floor, C 3/11 , Janakpuri

 Kaushambi – LGF, Pacific Mall, Kaushambi

50
SWOT ANALYSIS

51
ANALYSIS

SWOT ANALYSIS

Following is the SWOT Analysis for ADDICTION

STRENGTH WEAKNESS

 it’s fast  Price Competition from

 it has different schemes at best
affordable prices
 it has special offers for spouse
membership
 it has national and international
certified trainers
 its membership schemes varies
according to the demography
Powerhouse and Talwalkar’s
 Untapped central region of
Delhi market
 It can be difficult to understand
the different market Structure.

 Latest technology and low cost  Competition from upcoming health

advantage. industries.
 Huge market.  High customer churn.
 National and international
expansion and Exposure
 Richness of facilities for target
customers
 Usage of best machines and
technology of the future.

OPPORTUNITIES THREATS

52
STRENGTH

 VERY FOCUSED ON FITNESS:Addiction is largely focused on the fitness of the

consumers; around 73% of the revenue comes from the gymnasiums

 EXCELLENT SCHEMES IN BEST AFFORDABLE PRICES: It has been found

that majority of the customers look for suitable schemes and this is one of its major
strength.

 PRICING ACCORDING TO DEMOGRAPHY: Prices of all the branches varies

according to the locations. It is like a healthy contribution from our side.

 CUSTOMER CARE SERVICES:Customer care services of Addiction have been found

excellent by all its users. 90% of the respondents are satisfied by its customer care services.

WEAKNESS

 PRICE COMPETITION FROM POWERHOUSE AND TALWALKAR’S:Addiction

is facing tough competition from the service providers like POWERHOUSE and
TALWALKARS as these two are offering services at a low rate.

 UNTAPPED CENTRAL REGION OF DELHI.Although Addiction have strong Presence

throughout the Delhi but still they are far away from the central part and generally this part is
53
 covered by Fitness Firstand Gold gym so indirectly Addiction is loosing revenue from the
centralregion.

OPPORTUNITIES

 LATEST TECHNOLOGY AND LOW COST ADVANTAGE The costs of

introducing health services for Addiction are marginal in nature, as it needs only to
augment its equipment capacity and increase the number of base stations. The number of
machinery it has covered already works to its advantage as putting more base stations for
the full coverage. Besides such cost advantages, it has also other cost advantages for the
latest machine technology. As a late entrant into the market, it has dual advantage of
latest technology with modern features, unlike other private gym operators who started
their service more than 4-5 years back.

 HUGE MARKET The market for health industries is presently expanding at a

phenomenal / whopping rate every year and there is still vast scope for Addiction to
enter /expand in this market. Many customers are lookingtowards Addiction for
providing the service to them. With its wide and extensive presence in all the areas,
Addiction poised to gain a big market share in this segment when it expands its services.

THREATS

 COMPETITION FROM OTHER UPCOMING HEALTH INDUSTRIESIt is time

for Powerhouse gym to improve/expand its services. Fierce and cut-throat competition is
already in place with the markets ever abuzz with several reductions and announcement

54
 of attractive packages, trying to grab most of the ‘mind share’ of the ‘king’ - ‘the
consumer’, whose benefits are increasing with passing of everyday. If Powerhouse is not
innovative and agile, its service will be a flop. It needs to be proactive with attractive
packaging, pricing and marketing policies lest its presence in the market be treated with
disdain by the private companies.

 HIGH CUSTOMER CHURN There is high customer churn i.e. they can come and go
as they please resulting in bad debts.

55
THE FUTURE OF THE HEALTH FITNESS INDUSTRY

Building fitness for the future

Health and fitness has always been a key driver to increasing participation in the India
encouraging people to improve their personal fitness levels through regular visits to health and
fitness facilities including gymnasiums, health clubs and fitness suites.

With the current focus on healthy, active lifestyles and the government’s increasing concern
about inactivity levels and obesity, what are the innovative opportunities to be explored for the
health and fitness industry?

In ‘building fitness for the future’ this seminar will reveal the findings of the first-ever National
Audit of Fitness Consumers, profiling users and identifying future fitness trends. To drive up
participation rates the industry will require professional well trained staff to provide high quality
services. What skills are required and what training opportunities are available to inspire and
motivate staff to be the best?

Find out about the latest health and fitness initiatives and campaigns, partnerships and projects as
well as hearing from national award winners who are leading the way in setting standards for the
future of the fitness industry.

The results of the first-ever National Audit of Fitness Consumers – a profile of more that 1.8
million health and fitness club users have been revealed.

This, the largest survey to date, will have far reaching consequences for health and fitness
operators and local authorities in the future provision of health and fitness services and the
government in tackling national initiatives such as obesity.

Data was collected from some 668 public and private leisure centres, health clubs and fitness
centres giving an insight into fitness participation in the UK. The survey profiled 1.8 million

56
health and fitness consumers, providing a valuable source of business intelligence for health
clubs and sport centres.

Managing health and fitness gymnasiums and clubs requires special skills and knowledge across
a broad range of areas. Does the industry have the necessary resources, skills and training
opportunities required to build fitness for the future? Are employees positive about remaining in
the fitness industry? Are they happy with their employers, degree of responsibility, hours of
work, job security, remuneration packages and career development prospects? A recent salaries
survey claimed fitness industry wages are rising – is this the case, and is it sufficient to motivate
and retain staff?

With the government now looking towards the active sport and recreation sector to help achieve
its physical activity targets, the industry must make sure it is providing a high quality service
using well trained and professional staff.

57
FINDINGS AND ANALYSIS

58
FINDINGS AND ANALYSIS

a) In the month of May when Addiction came up with its inaugural scheme then the
clientale raised to 200 in which following was the distribution of members according
to the type of schemes.

 Quarterly membership – 110

 Yearly membership – 60
 Spouse membership - 30

59
b) In the following 15 days the number of clientale reduced as there was no scheme applicable. The
number of new members dropped to 62. The membership distribution was

 Quarterly membership –32

 Yearly membership – 12

 Spouse membership -18

60
c) Addiction adopted different marketing strategies to increase its brand awareness and study the
consumer behavior. It came up with different schemes which a person can easily afford. After the
introduction of these schemes the clientale again raised to 305.

1. Monthly membership @ Rs 1500/- in sunny hours (11:00am -17:00pm)

2. Rs 35/- per day for an annual gym

3. Couple membership @ 50%

4. Monthly membership @ Rs 2400/- in regular hours (6:00am -10:00pm)

5. Buy a Quarter gym get a month absolutely free

With increasing brand awareness and introduction of new schemes lead to increase in the number
of the clientale.

61
CONCLUSIONS

62
CONCLUSION

 Addiction is the one of the market leaders in Delhi. There are number of customers
who are using service of more than one health service provider. But Addiction is the
most preferred brand in Delhi according to its reasonable prices. It is the most
preferred gym in Delhi. Addiction plans to have a wide with more than 100 sites so
their service is being used by people living in inner parts of the area.

 In case of Addiction the customers who have traveling jobs, finds Addiction network
strong in other cities also.

 In case of Powerhouse gym, again the problem is maintenance and variability in

schemes and there is lot of congestion, therefore the customer prefers Addiction
where our clientale is limited and each customer get the machinery.

 As with the introduction of Spa business with respect to Gym operators is not up to
the mark but Spa business is still growing. The operators are opting it keeping in view
it as a side business.

 There is huge scope for Addiction to have gym operators opt for massage services.

 Majority of customers are happy with after sales services of Addiction

 Addiction has a very strong distribution network with almost 75% of the centres in
Delhi are associated with Addiction brand while as the distribution network of
Powerhouse gym is on a lower scale.

63
.

RECOMMENDATIONS

64
RECOMMENDATIONS

 Addiction branding is good in more than half of the centres and the remaining needs
attention, such as big glow sign boards, banners and they require more visibility and
to match with the big brand image of Addiction.

 The company should focus on its operations in central Delhi areas.

 80% of the sales is because of formulation of good schemes. So that has to be

managed.

 The company must focus on creating awareness about latest schemes related to gym
and spa services

65
BIBLIOGRAPHY

66
BIBLIOGRAPHY

BOOKS:

International marketing by Kotler

WEBSITES:

www.addictionindia.com

www.gymnasium.com

www.fitnessworld.com

www.healthindia.com

www.google.com

NEWSPAPERS:

Economic Times May-2008

The Hindustan times

The Times of India

67
ANNEXURE
(CASESTUDY)

68
Case study
Addiction Health Clubs

Addiction was formed in 2006 and is now one of the Delhi and NCR’s leading health club
operators with an impressive expansion schedule. Addiction comprises of large out of town multi
facility health and clubs and smaller city centre fitness units, branded 'club 61'.

Whilst Gymnasium, SPA and Aerobics play an important part in the multi facility units, fitness is
central. Usually featuring an indoor and outdoor pool, with all new clubs benefiting from a
separate Aerobics hall, Addiction members can expect the highest standards of exercise
technology at affordable prices.

Already with 8 centres across the Delhi and NCR and 3 in Jaipur (Shopprix mall, Noida,
Vikaspuri, Shalimar bagh, Kaushambi, South Extension, East Patel Nagar, Janakpuri) Addiction
plans to increase this number and to open a club in Sector-25 and Expressway sector- 93, Noida
opening at the end of the year.

69
The Issues

The fitness industry is renowned for its rapid growth in the Delhi and NCR. Most places in the
Delhi now have at least one facility either Gym or Spa. The intensity of the industry means that
the larger leisure companies are having to look closely at their marketing programmes to
overcome high competition and ensure effective training methods are in place. Many have
implemented training and retention programmes to increase customer retention and also enable
staff to move up the career ladder within their own company.

To meet increasing member requirements and to avoid high levels of complaints. Customer
turnover is also an issue for most leisure focused companies, fast paced membership programmes
and hectic lifestyles mean that companies can be constantly promoted or left. Realizing that
individual customers behaved differently under different demography. Addiction wanted to
investigate this further to maximize potential and focus ability on strong demographical
characteristics and marketing programmes to retain the members and for further new
enrollments.

Group Training Manager for Addiction Health Clubs comments, "It is common to find young
and vibrant staff in senior roles in our clubs, but the speed of promotion can mean awareness of
management styles and procedures are not properly developed. We need to be aware of our
customers behaviors’ in order to understand their motivators and assist them in different
membership programmes."

The Solution

In 2009 Addiction introduced different membership schemes according to the demography as

part of their marketing and retention programme and to compliment the company's forward
thinking and 'issue aware' management style.

70
The company assesses an individual’s behavior in the work environment. The test poses a series
of questions, taking no more than seven minutes to complete. The test is used to trace behavioral
patterns of the customers and predict likely capacity to invest.

Addiction have profiled all of the different roles within the company to establish behavioral
differences and preferred requirements of each role. The manager creates a profile of a position
against which a candidate can be compared.

Director comments "Using the test from day one has enabled both senior management and
employees to get involved. Working together with staff and management teams has enabled us to
compare customer requirements to daily capabilities to ensure we have a well rounded and
accurate services."

Customers are requested to complete the test process starting with the verbal process. The result
helps the management to understand customer’s strengths and weaknesses and clarify their
requirements. It generates awareness by charting customer’s likely behavior and operating styles
and provides an indication of how their behavior could be modified for their own and the
company’s best interests.

The results from the test has enabled centre management teams to generate competency profiles
and establish attitudes, knowledge and skill levels.

"The decision for a more comprehensive HR plan followed the growth of the company. The tools
have complimented and enhanced the process of requirements of the customer and gives the
knowledge to plan for the future "The increased knowledge has made them more aware of the
needs of our customer and the requirements . This will have a positive impact on the business."

One example of this was highlighted at the Kaushambicentre when a young business graduate,
completed the test. The results indicated that she wanted more schemes which were less
expensive and time consuming to reduce the body fat and cholesterol.

Addiction used the test as a questioning tool to investigate her goals in more detail. Addiction
addressed this and she is now receiving further training in the gym at rupees 35 per day under the

71
subscription of Annual gym. Addiction has many plans of working with the management team to
plan for the expansion of the business.

“The test has complemented and enhanced the process of understanding ‘consumer
behaviour’ and given us knowledge to plan for the future”

72
 Questionnaire

1. What is the average age of customers?

(a) 16- 20 (b) 21-25 (c) 2 6-30

(d) 31-35 (e) 36 and above

2. What is the best priority?

(a) Gymnasium (b) Spa

(c) Body massages (d) Cardio

3. Why Addiction Gym is famous?

(a) Affordable fees (b) Trained Coaches

(c) Best Equipments (d) Others

4. Is Addiction Gym is a perfect Health Club?

(a) Yes (b) No

5. Is Addiction Gym is affordable for middle class people?

73
 (a) Yes (b) No

6. Was the environment suitable for workout?

(a) Yes (b) No

7. How many average people workout daily?

(a) 20-30 (b) 31-40

(c) 41-50 (d) 50 and above.

8. Have you come across any complaint?

(a) Yes (b) No

9. Are you satisfied with the services provided?

(a) Yes (b) No

10. Do you suggest any suggestions?

(a) Yes (b) No

11. If yes then what can it be?

(a) Better Coaches (b) Fees

(c) Quality (d) Inner Management.

74
Summary

Addiction consistent growth over the past 2 years has enabled them to introduce the test.

The policies have enabled Addiction Training Department to implement procedures that
encourage customers and management teams to get involved with personal and corporate
development.

"As the industry continues to grow and becomes more competitive, having the right scheme for
the right customer is critical. However it is essential to ensure that the staff is happy and that
management teams adopt a style that compliments the consumer behavior in order to achieve
maximum results. It has given us a better understanding of what motivates members to enable us
to continue our aim to improve personal, team and corporate goals.”

75