Case Study

1. How Do You Grow a Premium
Brand ?
Akshay Pandey 2014003
Ankur Mukherjee 2014007
Nikita Bindal 2014215

2. Company Background
 Transition was a series of ultra-premium health clubs
 Target-Senior executives, frequent business travellers and singles
 People who liked the extra attention for a premium price
 Located in all major cities across the world
 Enjoyed first mover advantage
 Elite organization-No competition
 Fee structure-$600 initiation fee, plus $2500/year for membership
 Operated through 5-star Printemps Hotels

3. Case Background
 Transition started facing problems
 Margins were shrinking
 Sales growth had flattened
 Operating expenses rose
 Pay premium to chefs and coaches
 Fitworth new campaign targeted Transition
 Customized and affordable fee structure
 Reciprocal membership alliance with Japan’s Mind and Body spas & England’s True Worth clubs
 Clarkhouse entered the Health Club segment
 Top-rated hotel chain
 Available at more than 250 locations

4. Problem Statement
How to make Transition profitable again?

5. Available alternatives
Tie-up with Ambassador hotels
• Well respected international chain
• Segment lower than Printemps or
Clarkhouse
• Opportunity for expansion
• Different target market
• Package pricing
Remain a Niche
• Continue operation as before without
compromising on pricing or reputation

6. Our Solution
 Collaborate with Ambassador to start a new chain of Health Club
 New brand shouldn’t be linked to Transition
 Should be in line with Ambassador’s image
 Competitive pricing (Clarkhouse)
 This way it can compete in both segments

7. Way Ahead for Transition
 Add sports training and/or beauty treatment (Parlour)to Transition’s services
 Test in remote locations, implement if successful
 Children & wives become members as well as Future prospects for Transition
 Advertise Transition as a niche family health solution
 This would help in bringing the average age down without hampering reputation