health and fitness center vlcc

Are You suprised ?

PAGE 26

EXECUTIVE SUMMARY

The project deals with the study of Vandana Luthras Curls and Curves centers in New Delhi. We surveyed their product profile, customer base and prospects. A sample study of attitude of customers base and prospect .A sample study of the attitude of the present customers through questionnaires was conducted

It was found that VLCC has emerged as the most popular slimming and beauty center. The target segment of VLCC comprises of both males and females pertaining to the varied age group of 13 to 65 years. Female customers comprise of 72% of the total clientele. The upper class customers are satisfied with the services offered by the centers and willingly pay the requisite charges. But middle class people consider it to be more expensive than its rivals. The promotional campaign of VLCC includes advertisements in newspaper and magazines, distribution of handbills and brochures in the main residential areas of New Delhi. Satisfied customers are the best agents of advertising through word of mouth.

The changes proposed by our research will help in increasing the target market of VLCC by designing programmes to attract the college students, middle class people and executive males. In order to achieve identification of VLCC as a perfect health and fitness for both men and women advertisement through cable network and sponsorship programmes in target segments will be more effective.

Introduction

The process of technological advance and liberalization have brought about a new way of life among the urban socialities, city dwellers are generally status conscious and imitate the affluent life style of the upper strata. Boys and girls spend most of their time in watching TV channels, Computers and push-button gadgets are at their disposal. They take non-nutritive junk food they have no time for outdoor sports. So they put on weight at an early age. Adults lead a sedentary life being engrossed in the pursuit of their ambitions so put bellies, wide hips and obesity cover most of the housewives, executives and businessmen.

During the last decade a new wave of heath consciousness has emerged among the urbanities. The fad of today is slim is in. Bulky ones are trying to knock off a few kilos. The objects of health-trend at present is threefold; to look good; to look slim and young and to be fit.

In order to meet these demands a number of health clinics/weight loss centers have come up and gained in business. They attract numerous customers. But getting thin is not synonymous with getting Fit. Many weightless clinics act as money making machines. Physicians and enlightened public opinion become apprehensive about the role such centers played. A dire need was felt for a sliming health-cum beauty center run on scientific basis.

Vandana Luthra Curls and Curves with sixteen centers in Delhi has projected itself as an ideal clinic for complete body care with minimum side effects. It caters to the basic needs of the customers on scientific basis using German technology. Imported German equipment administered by trained technicians leads inevitably to weight loss. VLCC also helps body firming and body shaping. The center advises the customers on a proper diet and exercise programme. Thus the center offers both physical and mental benefit ensuring longer life and happier outlook.

We have observed and studied the working of VLCC at three Delhi centers. We have interacted with their staff and customers. We have utilized primary and secondary sources of information. Our observations and conclusions are recorded in the succeeding chapters of the project report.

OBJECTIVE

To identify, study and analyze the general business environment for a health and fitness service.

To identify and analyze the existing and potential market for fitness centre.

To undertake customers segementation, targeting and positioning.

To develop a plan for setting up a SBU in health and fitness centre.

To develop a viable service portfolio.

To prepare a maketing mix strategy to tap the existing market and also the potential market.

SCOPE OF THE PROJECTThe project involves the study of the existing health and fitness market centres and devising market of detailed marketing plan covering the financial aspects and other aspects required for a viable business feature. It includes conducting survey among the customers and the existing centres. It also included the devising of various promotion techniques in terms of impact and response. The informations regarding marketing size, cost factors, marketing strategies were collected and realized from the survey conducted.

Methodology

The approach followed by the group is explained underneath:

Data source:1) The data was collected from primary and secondary sources.

2) Primary data was collected through questionnaire and one to one personal interviews.

3) Secondary data was collected from magazines and articles in newspaper.

Research approach:

The approach adopted was customer survey and interactive sessions with people.

Research instrument:

Research instrument used was an objective questionnaire and personal interviews with people and clinic manager of VLCC.

Sampling plan:

Sample Size: The sample size for the convenience of the group was 43.

Sampling Procedure: The process undertaken was random sampling at various places in Delhi.

Limitations

1) The size of the sample surveyed was small .Therefore the result may not be accurate.

2) The sample method used was convenient sampling.

3) There are number of services provided by VLCC but all the services are not present at one centre.

4) The sample findings show that people surveyed consist mainly of upper middle class. As a result of which the findings may not give a complete picture of segmentation, Targeting and Positioning of a health and Fitness centre.

5) The Income Tax Authorities conducted raids on the premises and offices of all the VLCC in Delhi. Files and records pertaining to the income ,expenditure and profits were seized and sealed during the last week of August. This hindered our project work. The officials whom we approached were tight lipped as a result we were not given access of there financial statement.

6) Some of the customers were not able to devote their attention and spare adequate time in filling the questionnaire because of their busy schedule.Segmentation

Segmentation has been done on the following basis:-

1)Psychographic

2)Demographic

Age Group

Gender

Income

OccupationPsychographic Segmentation

1)The psychology of the 77% VLCC customers is that they are

conscious about their looks.They like to keep themselves fit.

2)19% of the customers felt that their decision to join VLCC was

a result of the Family pressure.

Demographic Segmentation

1)37% of the customers are in the age between15-24 years.

2)31% of the customers are in the age between 25-34 years.


4)16% of the customers are above the age of 45 years.

1)42% of the customers are from middle class families whose families

monthly income lies between Rs 10,000-Rs30,000

2)37% of the customers are from the High class families whose families

monthly income is above Rs 50,000

3)19% of the customers family income lies between Rs 30,000-Rs 50,000.

4)As the awareness for keeping oneself fit is rising, it can be seen that

2% of the VLCC customers come from the lower income group.

72% of the VLCC customers are females as compared to the 28% of males.

1)Among the various VLCC customer,25% of the customers are self employed. They are Monetarily good and spend a good percentage of the income in maintaining themselves as well as their customers.

2)35% of the customers are Homewives. They are very conscious about their looks.

3)21% of the customers are Professionals.As they are on jobs,their healths and looks reflects their and their companys reputation.

4)19% of the customers are students. They are either over weightor

Target Segment

The Target segment of our client VLCC comprises of:

1. People of all age groups.

2. They are targeting both carrier women & housewife. Although housewifes are more than working women.

3. VLCC is targeting both male & female but ratio is 3.5:6.5 for males: females.

As per our survey the percentage of housewives is the highest i.e.35% . The percentage of women is 72% as compared to 28% of male client.

Re-Targeting

After evaluating each segment & the present customer number, we thought that there are certain segments, which VLCC is overlooking.

Firstly, a segment comprises of college going students can also be roped in. This is coz the younger generation is getting more and more conscious of there looks.

Secondly, a VLCC can retarget itself to attract executive men who are conscious of their look & want to look slim & feel good about themselves.POSITIONING

After choosing a particular target segment the next step is to position the brand (VLCC) According to the needs & wants of people.

1. VLCC is thought to be as a very expensive slimming center compared to various other competitions as most of its outlets are established in very posh areas.

2. The institution is thought to be catering to the female section of the population. This can be due to the following facts

- the concept was originated by- Mrs. Luthra

- maximum of the staff comprises of women

- the name Vandana Luthras Curls & Curves is feminine in nature.

3. The center is currently positioned mainly as a weight loss center as maximum percentage of income is earned from the weight loss packages.

4. VLCC is not considered to be a young and a cool place. The adds which VLCC is using to attract customers comprises of men & women who are above the age of 25 as a result of which only house wifes and carrier women are attracted by it.

5. VLCC is very tactfully trying to place itself in the minds of the customers by using the punch line shaping your confidence.

RESULT

After through analysis of the data collected we reached to the following result.

We find out that total number of clientele is approximately 2lakhs all over India and the growth rate has doubled as compare to last yr.

The male and female ratio 2.8: 7.2

For most of the customers VLCC is the first health center they have joined in an attempt to lose weight. Before joining VLCC they indulged in various slimming activities such as:

1) Walking 2) Dieting

3) Exercises 4) Grandmas remedial measures

There are various channels of media, which inform the customers about VLCC

(1) Newspaper Advertisement: - comprises of 72% of the total advertising media. It is most popular with the clients especially there Before and After weight loss adds.

(2) Recommendation: - 23% of the customers have joined because it was recommended to them by friends or families

The health center offers a number of service combinations such as: -

Weight loss: - vibration, tummy tucking, inch loss, body shaping & firming.

Gymnasium- sauna, steam& workout

The price charged by VLCC for it services are:-

(i) The cost incurred for joining the gym is 3000/-month

(ii) Price for weight loss is 1200/-month

Advantage of VLCC over it Competitors

1. Services provided by VLCC are excellent.

2. Reputation of VLCC is very good compared to other health centers.

3. People get curious as well as encouraged by the Before and After weight loss adds.

4. The punch line used by VLCC shaping your confidence is very motivating

Todays customer is willing to pay high price for premium services.

Being healthy & fit is not only limited to a individuals physical being but also includes his mental set.

Although a few clients complaint about the poor functioning of the machines in the gym. VLCC still enjoys maximum percentage of market shares for any health and fitness center.

Swot analysis

Strengths

VLCC enjoys a brand image in the market. The main strength of VLCC is that it has branches at all the prime geographical locations in the city. These are located with a close proximity to the various residential areas which are middle income households. All the centers have physicians, psychologists and gynecologist who are trained to give personal attention to each and every customer. VLCC also provides additional facilities including gym, sauna bath and steam bath at some of its centers.

WeaknessThe main weakness of VLCC is the high cost because of which the low income group can not even think of joining it.

Only bulky people think of joining it.

OpportunitiesHealth is Wealth, The awareness can be seen among the health conscious people which gives VLCC a great opportunity to open its centers all over Delhi and increase its network as it already has sixteen centers in Delhi. The living standard of the people is rising with the increasing income. People are more convinced by western techniques of reducing weights rather than going for morning walks because it is easier and faster.

ThreatsOpening up of new sliming centers who are offering the same services at a lower price pose a big threat.

CONCLUSIONS

After going through the various results of the research the Overall picture of VLCC that has emerged is

As many people are becoming more and more health conscious these days, there is a high increase in number of people joining health centers. This can be seen in increase in number of people joining VLCC.

There is definitely a communication gap between the way VLCC is positioning its brand image and the Way people perceive it.

VLCC has a very good reputation in the market, which attracts the customers and impresses people. As a result VLCC has the maximum market share.

The services provided by VLCC are amazing. From the head of the clinic to the lowest ranked staffs, all are very helpful and cooperative.

The upper middle class can mainly enjoy services provided by VLCC only because they charge a very high price from them

RECOMMENDATIONS

We put forward the following set of recommendations for better functioning of VLCC.

VLCC should be diversified into a total body clinic for complete heath care based on Western German technology.

Online counseling to customers by trained psychologists and Dieticians.

The institute of beauty, health and management should provide distant education and training to health conscious customers

A systematic feedback and follow-up services should be provided for ex-customers. Provision of readymade nutritive food packages at reasonable price to customers.

Increase the current market segment by targeting the middle class through TV media.

Students of colleges should be given discount in fees charged for fitness center.

They should mention the name of few of the specialists\mentioned who all comprise of a panel of doctors

They should also provide programs for stress, strain, various aches & pains as these issues are related to a persons health.

To follow any of the recommendations, it is necessary a thorough cost analysis should be done and only if it is proving to be beneficial should they be followed.

References 1. Kotler P; Marketing Management 1994, 8th Edition, Prentice-Hall.

2. Batra R; Myer John G; Aaker David G. Advertising Management 1999, 5th Edition, Prentice-Hall India.

BIBLIOGRAPHY

1. Country Wide Raid On VLCC. The Hindustan Times (Pg1) 31st August 2001.

2. Health And Fitness Magazines August 2001.

3. VLCC Plus.com

annexures

Customer Questionnaire

1. Name:

2. Date of Birth:

3. Address:

4. Telephone:

5. How did you come to know about this Fitness Centre:

a. Newspaper

b. Friends

c. T.V

d. Leaflets

e. Others (specify)

6. Reasons for joining the fitness center:

a. Peer pressure

b. Conscious of self image

c. Family pressure

d. Others (specify)

7. How much money are you willing to spend for fitness purpose:

a. 0-1000

b. 1000-2000

c. 2000-3000

d. 3000-5000

8. How are the services available:

a. Excellent

b. Good

c. O.K

d. Bad

9. Status:

i) a. Single b. Married

ii) Student

a. Under graduate

b. Graduate

c. Post graduate

iii) Working

a. Self employed

b. Professional

c. Others (specify)

iv) Housewife

10. Why do you prefer this centre & not others:

a. Near to home

b. Satisfied with facilities available

c. Reputed

11. What type of package do you avail:

12. Do you think it is the best health & fitness centre in your city:

a. Yes

b. No

Consumer Profile

Sex:- males-12 respondents

Females-31 respondents

Age:-

(i) between 15-24 years ----16

(ii) between 25-34 years ----13

(iii) between 35-44 years ---- 7

(iv) 45 & above years ---- 7

Marital status

married ---- 27

unmarried ---- 16

Occupation

student ---- 8

self employed -- 17

professional -- 9

housewife -- 15

1. How did you came to know about the fitness center?

Newspaper ------31

Overleaf ------ 2

Friends ----- 10

2. Most influential factor in your decision making to join VLCC?

Family pressure -----8

Conscious of self image ----33

Reputation ---- 2

3. How are the services available

Excellent ---- 22

Good ---- 12

Ok ---- 3

Satisfaction 6

4. What is monthly income of your family?

0----10000 1

10000----20000 17

20000----30000 8

30000----50000 16

5. How much are you willing to spend for fitness purpose

0----10000 5

10000----20000 20

20000----30000 7

30000----50000 11

6. Why do you prefer this center?

Near to home 24

Satisfied with 14

Reputed 5

Gym 13

Inch losstummy& 9

hips

Heat Therapy 21

On the above positioning map the variable taken in X-axis is service and Y-axis is atmosphere. The map endorses the view that VLCC stands high both on Service and Atmosphere criteria.

What weighs most on your mind?

Health and Fitness Center

Vandana Luthras Curl and Curves

Submitted By:

NameRoll No.

1) Abhishek Saxena02/A

2) Gaurav Batra14/A

3) Sunny Malhotra39/A

4) Nachiketa Mohapatra25/A

5) Swati Chandra45/A

Submitted To:

Ms. Meenakshi Gupta

(Faculty Member, Marketing)

Towards fulfillment of Post Graduate Diploma in Business Management.

FORTUNE INSTITUTE OF INTERNAL BUSINESS

CONTENTS

EXECUTIVE summary 1 Introduction 2

OBJECTIVES 3

METHODOLOGY4

LIMITATIONS5

MAJOR SECTIONS

Segmentation 6Targeting 11Positioning 12 RESULTS 13

Swot Analysis 15 conclusion 16

recommendations17

references18

bibliography19

annexure 20

ACKNOWLEDGEMENT

We are thankful to the following persons for their kind co-operation and able guidance for helping us in our project successfully.

Mrs. Anju Malik. Country manager-marketing VLCC

Mrs. Vandana. Clinic Head.

Mrs. Marina. Clinic Manager.

Ms Ekta Dietitian , Personal Point

Finally, we extend our sincere thanks to all those people who have given relevant Information as to the needs and wants of customers.

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1)Among the various VLCC customer,25% of the customers are self employed.

They are Monetarily good and spend a good percentage of the income in

maintaining themselves as well as their customers.

2)35% of the customers are Homewives. They are very conscious about their

looks.

3)21% of the customers are Professionals.As they are on jobs,their healths and

looks reflects their and their companys reputation.

4)19% of the customers are students. They are either over weightorr weight or conscious

of self image.

Segmentation


1)Demographic

Age Group

Gender

Income

Occupation

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students19%

housewives35%

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students19%

housewives35%

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health and fitness center vlcc

Documents

customers base

present customers

satisfied customers

upper class customers

female customers

numerous customers

curves centers

identification of vlcc