Académique Documents
Professionnel Documents
Culture Documents
Access to this document was granted through an Emerald subscription provided by emerald-srm:460141 []
For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service
information about how to choose which publication to write for and submission guidelines are available for all. Please visit
www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of
more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online
products and additional customer resources and services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication
Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.
Mukesh and Naina, owners of “Fit in” fitness point, were assessing the results of their recent Institute of Management,
customer-centric marketing initiatives, which were astounding. They, of course, were elated Ahmedabad, Ahmedabad,
at the individual weight and fat loss successes. Concurrently, the couple was also hoping India.
for some positive outcomes for their business. “Fit in” is based in Ahmedabad on the ninth
floor of a high-rise building, which happens to house a shopping mall, multiplex theatre and
several food joints. Beta-Gamma is one of the most prominent shopping malls located in
Vastrapur – a prominent locale in Ahmedabad. The shopping mall boasts of housing
famous food joints and apparel stores. There is a residential complex close by and an
internationally acclaimed hotel at a distance of some 100 feet from there. The multiplex
theatre has five screens and is being run on a franchisee basis by a leading multiplex
theatre chain.
Ahmedabad
Situated in the mid-western territorial bounds of India, the state of Gujarat houses its
commercially significant city, Ahmedabad[1]. Named after the local ruler, Ahmad Shah[2]
(1411-1442) of the Muzaffarid dynasty, Ahmedabad is known for its very rich cultural
heritage and Mahatma Gandhi’s association with the region, in particular. Ahmedabad is
also known for Vikram Sarabhai’s achievements as well as the successful “Gujarat-model
of economic development” in the country. The best management school in India – Indian
Institute of Management (IIM), Ahmedabad – vying for top position in the global B-School
ranking charts – is also located in Vastrapur locale of the city. There are numerous places
of tourist interest a few miles away from the main city. The city is unique in that there is an
amazing blend of the “old” and the “new” cultures. Post-independence, this blending has
tapered off a little; however, this cultural juxtaposition may be witnessed in the interior
quarters of the city. Commerce is a flourishing activity in the city and the city is
acknowledged for its commercial and trading successes. Also, with the ongoing drives for
globalization of economy, the business matrix has changed a lot. In the health-care sector,
for instance, niche segments have made a mark of their own.
DOI 10.1108/EEMCS-05-2013-0046 VOL. 8 NO. 2 2018, pp. 1-19, © Emerald Publishing Limited, ISSN 2045-0621 EMERALD EMERGING MARKETS CASE STUDIES PAGE 1
Therefore, fitness is assuming importance in the lives of the people. In fact, it is becoming
a status symbol with people flaunting their membership cards in social circles.
The Indian health-care industry, which comprises hospitals, medical infrastructure, medical
devices, clinical trials, outsourcing, telemedicine, health insurance and medical
equipment, is expected to reach US$160bn by 2017[3]. An important component of the
health-care industry is the fitness and slimming industry. The latter is said to be estimated
at Rs 60,000 crore (2012 figures)[4]. The fitness industry is currently pegged at US$0.78bn
and is stated to grow at a CAGR of 25 per cent to reach US$2.4bn by 2015[5]. The sector
comprises both products (equipments and medicines) as well as services (physical and
experiential exercises).
Local and branded players dominate the Ahmedabad market. For instance, there are a
number of international players which are occupying the competitive landscape. Likewise,
there are some family-run fitness centers which operate in a niche segment. A brief on the
Downloaded by Narsee Monjee Institute of Management Studies University At 05:02 06 December 2018 (PT)
key market players operating in the Ahmedabad’s fitness industry and their marketing
strategies are provided in Table I. Gold’s Gym rests its forte in personal training,
physiotherapy and aerobics. Intensity Gym has a select location in Bopal (a locale in
Ahmedabad) and has been in specializing in weights and strength training, cardio and
functional training, zumba and aerobics besides diet and nutrition counseling. Black
Panthers Health Club provides services across weight-loss, body building, inch loss, figure
shaping, aerobics, etc. While some of the competitors are providing localized services in
select locations, others such as Talwalkers and Gold’s Gym have spread out themselves in
major locales of the city. They do offer attractive offers as well to win customers. For
instance, Vala’s Fitness Centre offers monthly (one month, three months, six months) and
yearly packages for subscribing services linked with gym, cardio, aerobic exercises.
Likewise, Parsana Wellness provides membership packages for three months, six months
and one year. A 24 ⫻ 7 Fitness centre provides premium membership offers by granting
privilege cards to its members.
Fit in
“Fit in” primarily caters to the weight and fat loss programmes. Apart from this, the centre
also offers gymnasium facilities for its regular clients. Mukesh and Naina are married and
are in mid-30s. “Fit in” is barely two years old and was kick-started with the support of the
couple’s meager savings. Earlier, the couple worked as physical instructors in a local
school. However, owing to the school’s permanent closure, the couple conceived the idea
of starting a business venture dedicated to the provision of fitness facilities. There were a
number of reasons why they picked this venture. For one, both were fitness freaks
themselves. Not a day would go by without some physical activity or other. They would go
for a walk and do some meditation at home. Should it be rainy outside, they would do
aerobics indoors. They had motivated some of their neighbors and close friends as well
and would invite them to do exercises together. Second, in those years, Ahmedabad was
in its initial stages of the learning curve as far as developing health consciousness was
concerned. The typical Gujarati cuisine is very oily, and most of the food items are fried in
vegetable fat. People are prone to health ailments – in particular, obesity. Obesity is a
cause of concern in India, and Gujarat ranks among the top-notch states in the obesity
charts[6]. The couple saw an opportunity in the health and fitness sector by providing
fitness solutions to combat the menace of obesity among the residents.
Initially, the fitness centre was housed in two rooms with a cover area of about 1,200 square
feet. Presently, the fitness centre has expanded to a cover area of 4,000 square feet. “Fit
in” is located at a strategic point in Vastrapur, being close to several residential colonies
around that area. In the start-up phase, the couple would personally design pamphlets and
distribute them in the neighbourhood. They would stick some of the advertisement bills on
the notice boards of the residential complexes. Or, they would make cold calls on some of
physical trainers and instructors on a contractual basis, instead of hiring costly employees?
Should the rendering of personal advisory services be delegated to these employees,
which were, hitherto, being provided by the couple themselves and were counted among
the fitness centre’s USP?
Whenever a new member would join “Fit in”, Mukesh and Naina would try to get to know the
client on an individual basis by providing personalized attention. They would administer a
personal training session to the client on the first day itself. A “Fit in” kit was given to the
client. This kit contained their “Fit in” identity card, diet diary, self-monitoring notepad,
measuring tape, calculator, pen and voucher plans. The diet diary would contain the
prescribed diet schedule for the week, which needed to be followed rigorously. The
self-monitoring notepad was meant to record the exercise schedule, daily weight and
“inch-loss” measurements, twice a day. For those preferring gym services, details
regarding the physical activity per hour and daily diet were scribbled in the notepad.
As soon as the client entered the premises of “Fit in”, he/she would be greeted with
appropriate salutations. The client would be introduced to other members as well. Thus,
there was an informal atmosphere at the centre. Both Mukesh and Naina would further
facilitate this welcoming gesture by conducting competitions among the clients themselves
by dividing the groups into pairs of two’s and three’s. Such camaraderie evolved quite
successfully and boosted the development of personal ties among the clients. In fact, the
fitness centre would appear more like a place to “hang-out” with their companions, rather
than being a place to “work-out”.
However, as the membership increased, achieving this socio-emotional building up of ties
was becoming difficult. Thus, Mukesh and Naina had to figure out how to ensure that while
all this social networking goes on, there is a concomitant increase in membership.
Therefore, they wondered if any change in the operating strategy was required. With
growing fitness and health consciousness among the people, it was important to project
their message to attract as many clients as possible.
The couple’s belief in staying fit and healthy is summed up in the tag-line used against the
“Fit in” centre’s name – “Keeping fit is our topmost priority!” (Exhibit 1) The logo was simple
enough. There were three slender cylindrical figures of three different colours arranged in
a unique manner. All figures were slender to underscore the key philosophy of “Fit in”, that
is, staying fit and being in shape. “Fit in” believes in environment-friendliness and hence the
colour green was used to depict the logo. Mukesh and Naina placed an emphasis upon
being vegetarians. As such, the alphabets of “Fit in” were coloured in blue to visualize blue
waters of the ocean, which would give tranquillity to the restless mind. Furthermore, the
logo was emblematic of the progress made in individual fitness by being associated with
“Fit in”. The underlying purpose of designing the logo of “Fit in” was to facilitate
camaraderie among the clients and promote a healthy life style among them.
Indeed, Mukesh and Naina were very successful in kick-starting the new venture. For one,
both were natives of Vastrapur area in Ahmedabad where the fitness centre was located,
and this helped them in winning the clients and convincing them easily. Their first client was
their neighbour living next door. Second, they had a large social circle owing to their
association with their previous employment in the school. The faculty of the school became
increasingly interested in the new venture of Mukesh and Naina – initially, for the sake of
“trying it out”, and, gradually, for becoming full-time members of the centre. By the third
month of their running the “Fit in”, 20 clients had come from the school. Incidentally, the
couple were also members of Buddhism (Soka Gakkai)[8]. Many of the members chanted
the “Daimoku” for curing their ailments. The members had a monthly meeting, where they
would retell their stories of “victory” in their personal lives. Being happy and leading a
happy life was very important for all – this was the underlying message in such meetings.
Thus, that monthly meeting was reserved for the members to share their successful life
experiences and how they had overcome their troubles by chanting prayers to the
Almighty. For instance, one of the members was a depression patient. She had been
hospitalized thrice for her treatment. Doctors had cautioned her that should there be any
further attack of depression, she would have serious complications. Her personal life was
fraught with many problems, and she would join the fellow members in chanting prayers.
Mukesh and Naina convinced her that physical activity and meditation would help her get
out of such recurrent depression bouts. Similarly, another member was suffering from
chronic diabetes. Being a successful technocrat, she was unable to take out time for
pursuing any physical activity. Naina made her realize that a “regular” “Fit in” package
would work best for her. Another member was overly obese. He had undergone liposuction
operations thrice, but his weight would refuse to settle down at a respectable figure.
Mukesh persuaded him to join their fitness centre and impressed upon him the benefits of
regular work-outs and aerobics. During one such meeting, Mukesh and Naina addressed
the members and recounted how they had lost their employment and were facing immense
trouble in making ends meet; how they decided to kick-start a fitness centre; and how they
II
Downloaded by Narsee Monjee Institute of Management Studies University At 05:02 06 December 2018 (PT)
Philosophy
“Fit in” believes in social networking to let the clients enjoy their work-out regimen with zest.
With increasing friendships and healthy relationships, members will be motivated to
maintain and continue with their fitness schedule. The service delivery is based on mutual
understanding which is instantly initiated when a member joins the centre. The staff are
highly encouraging and supportive to the members. Mukesh and Naina handle most of the
advisory and training aspects without charging any extra costs.
Members
Currently, there are 120 members (as of October, 2007) who have enrolled themselves
under different plans. Most of the members are females with an average age of 32 years.
Most of the members were the friends of Mukesh and Naina, while other members hailed
from nearby residential areas. Being highly satisfied with the services, the members
provide ample referrals to “Fit in”. The members encourage their relatives to join “Fit in”,
and, get discounts in return.
Functionality
As mentioned earlier, “Fit in” caters to obese as well as regular health-conscious
customers. It is a self-sufficient fitness centre with well-maintained fitness equipment like
motorized treadmills, exercise bikes, elliptical trainers and strength equipment. There are
20 cubicles which are each 10 by 5 ft, with a “vibrations” machine each catering to body
toning, inch-loss and individual oil massaging. Each cubicle has a small couch with a
side-table on which the machine and other necessary articles are placed. There is separate
attire for the individuals who are being massaged and administered toning in these
cubicles. There is a helper who assists in making preliminary and wounding up
arrangements for the machine set-up. Separate staff administer the conduct of these
individualized services for men and women. There is a separate hall for conducting fitness
classes and member workouts. Men and women engage in workouts together. The staff
comprises contractual trainers and massagers: there are three cleaners, two security
guards, eight helpers and two receptionists. Till now, all the staff members have stayed with
the centre. Because the current employees were paid well, they were satisfied with their
work and did not express any grudges at all. There are no attrition issues at all. In fact, what
is lacking was manpower itself. “Fit in” is badly in need of more employees. However,
surprisingly, efforts are not being made by Mukesh and Naina in that direction. Their only
concern is maintenance of a solid customer base.
Mukesh and Naina design the diet chart and schedule for each client, which is revised
on a weekly basis depending upon the individual results. The diet chart ensures that a
balanced nutritive diet is given to the client every day (Exhibit 2).
Programmes
Downloaded by Narsee Monjee Institute of Management Studies University At 05:02 06 December 2018 (PT)
The clients who have enrolled themselves exclusively for the weight-loss programme have
options from the following:
Festival pack: Special discounts are being offered during the festival season.
Family pack: Special discounts are being offered depending on the number of
members joining the centre from the same family. For referrals, there are further
discounts.
Working women/men pack: Flexible schedules are being designed for the working
men/women as per their work timings and time-management.
Morning pack: These sessions are for two hours each in the morning starting from
6:00 a.m. to noon. (6:00 a.m. to 8:00 a.m.; 8:00 a.m. to 10:00 a.m.; 10:00 a.m. to
12:00 p.m.)
Afternoon pack: These sessions are for two hours each in the afternoon starting from
12:00 p.m. to 4:00 p.m. (12:00 p.m. to 2:00 p.m.; 2:00 p.m. to 4:00 p.m.)
Evening pack: These sessions are for two hours each in the evening starting from
4:00 p.m. to 8:00 p.m. (4:00 p.m. to 6:00 p.m.; 6:00 p.m. to 8:00 p.m.)
Furthermore, each of these packs has the following categories:
5 kg weight loss and inch loss programme (5-month programme).
10 kg weight loss and inch loss programme (8-month programme).
15 kg weight loss and inch loss programme (10-month programme).
Exclusive diet programme (variable duration programme).
Exclusive yoga programme (variable duration programme).
Combo packs (variable duration programme).
As far as the “regular” clients are concerned, there are three categories:
Body toning programme (variable duration programme).
Body-building programme (variable duration programme).
Exclusive yoga programme (variable duration programme).
Combo packs (variable duration programme).
Further, the package may be modified depending upon the period for which a particular
member is interested in pursuing the programme. The rigour of the regimen depends
on the stage where one has joined the programme. For a new-comer, the schedule is
not so strenuous. However, as time passes by, the schedule begins to change.
1. 4 h duration: Rs 1,400/month.
2. 8 h duration: Rs 4,500/month.
Clientele
The fitness centre attracts people from all age groups. While the youth are attracted to
the fact that the centre offers gymnasium benefits and body-building activities, the
middle-aged have weight-loss in their wish-list. “Fit in” appears to have a magic wand
to cater to all these things. Some of the clients were advised by doctors to practice yoga
under a trained instructor and “Fit in” has the requisite training facilities for providing
yoga lessons. Therefore, light breathing and physical exercises are advised for such
clients. Then, there are boys and men who wish to have a body built like some of the
Downloaded by Narsee Monjee Institute of Management Studies University At 05:02 06 December 2018 (PT)
film-stars and other celebrities. Or, there are some very obese women in their 40s
aiming to have body toning like models. Aspiration levels are very high, indeed. Some
of the clients suffer from ailments which entail prohibition of certain strenuous
exercises. Further, there are demands that the duration of the packages should be
reduced. Clients want quick solutions for their problems. It is difficult to convince them,
at times, that the benefits of regular exercises would show in due course of time.
Besides, there is a miniscule section of customers who are so emaciated that they want
weight-gain. “Fit in” is able to cater to this coterie of demands and manages its clients’
needs with commitment.
Pricing
“Fit in” charges a one-time initiation fee along with the stipulated membership fee,
depending upon the plan which they choose. The initiation fee includes the I-card charges,
one personal training-cum-monitoring session with body fat testing and nutritional
consultation. Further, should the client need additional personal training sessions, such
services are liable to be charged in addition. There are two categories for pricing: monthly
and package-wise. Pricing for all the offers ranges from 200 per month to 4,500 per
package. Discounts are being offered for festival packages and loyal customers (those
who are the clients of the fitness centre for more six months).
III
Moving forward
Mukesh and Naina are good at diet prescriptions and providing trained physical exercises.
However, they do not offer dietary supplements/tonics/health drinks or medicinal products,
which may bring about the desired results aspired by the customers. People claim that do
not have the time for visiting gym/fitness centers. They would rather have some capsules
bygone months, I have lost 45 pounds. Thanks to Mukesh and Naina! They work very hard
on us. Flexible timings at the fitness centre help me in attending to my work and home as
well”.
Aflah: “I have been associated with “Fit in” for a little more than 3 months. I will stop availing
the services of the fitness centre this month. I had joined the fitness centre primarily for the
weight-gain purpose. However, my friends advise me that a homeopathic solution would
better solve my problem. There is a fool-proof guarantee for the effectiveness of the
medicine. However, I am afraid I do not have faith in the fitness solutions as far as long-term
effects are concerned”.
Al-hadhrami: “I am a hexagenarian now. I have been advised by my personal doctor to
opt for regular yoga and meditation. I shall be completing one month of association with
the fitness centre next week. I am afraid that all through this period of my association
with the “Fit in”, I have not been instructed to perform the traditional Yoga “mudra”. Most
of these postures are a modern aerobic legacy. I think I would prefer to join a nearby
Yoga centre where the experts- specializing in Yoga studies- instruct the attendees”.
Moreover
Despite the efforts of “Fit in” to provide best services to the customers, the membership
was tapering off. Investment and attention per member seemed to be declining over
time. Mukesh and Naina were thinking of alternative operating plans for ensuring that
their time be better managed, and their expertise in offering professional advice should
also proceed in an equitable manner. Till now, theirs was the lone fitness centre in the
area. At the same time, it was possible that new competitors would be grabbing the
nearby spaces, and this would be a major setback to “Fit in”. There are yoga centres
run by professionals. Some of the leading brands like VLCC and Talwalkars have plans
of capturing the Ahmedabad market[9]. Thus, retaining members was a big challenge
before the couple. Third, to ensure that their venture remains a success in the fitness
space, they were wondering about the manpower management issues. Fourth, there is
an internationally acclaimed hotel in the vicinity. “Fit in” should attempt to link up with
the hotel and offer its services there as well. Alternatively, the hotel guests may also visit
the centre for availing its services. Manpower may be shared with the hotel or additional
manpower may be recruited by Mukesh and Naina. Finally, it was curious to note that
among the clientele, not one was a child or an adolescent. Obesity among children and
Keywords: adolescents is increasing. But Mukesh and Naina did not target this segment for
Marketing, widening its customer base. Besides, depsite offering day-care facilities for kids; they
Fitness, did not convince their guardians to involve the latter in physical training. Surprisingly,
Customer relationship they did not convince the students studying in the previous employment; they only
management tapped the faculty members. Is “Fit in” losing out somewhere? (Tables I-IV)
2005 1 2 3 2 1 0
2006 0 0 2 1 0 0
2007 1 1 1 0 0 1
Rent 0 0 0
Other 50 50 50
Total operating expenses 7300 17250 19325
Profit before interest and taxes ⫺2400 48026 44675
EBITDA ⫺2300 48126 44775
Interest expense 1200 1300 1450
Taxes incurred 1500 1600 1750
Notes
1. http://en.wikipedia.org/wiki/Ahmedabad (accessed 12 October, 2016).
2. http://en.wikipedia.org/wiki/Ahmed_Shah_of_Gujarat (accessed 12 October, 2016).
3. www.ibef.org/industry/healthcare-india.aspx (accessed 12 October, 2016).
4. www.business-standard.com/article/companies/indian-wellness-industry-to-touch-rs-1-lakh-
crore-by-2015-study-113080500653_1.html (accessed 12 October, 2016).
5. www.researchandmarkets.com/reports/2113983/fitness_and_slimming_industry_in_india_20111
5 (accessed 12 October 2016).
6. http://en.wikipedia.org/wiki/Obesity_in_India (accessed 12 October, 2016).
7. This is merely a designation for the staff members offering physical training and education to the
children.
8. http://bharatsokagakkai.org/ (accessed 12 October, 2016).
9. Both of them eventually did come up in Ahmedabad. VLCC has, for instance, two centres in
Ahmedabad. Talwalkars have three centres in Ahmedabad.
Exhibit 2.
6:00-6:30 AM Milk; Eggs; Oatmeal; Honey-Lime Juice; Lemon water; 150 ml (liquid);
Vegetable salad; Fruit juice; Fruits; Green/Cinnamon/ 75 gm (solid)
Black/Chamomile Tea
9:00-9:30 AM “Idli”a; Sprouts; Boiled lentils 75 gm
1:00-2:00 PM Brown bread; Brown rice; Meat; Fish; Eggs; Salad; 100 gm
Fruits; Vegetables
5:00-5:30 PM Fruit juice; Fruits; Light snacks; Tea 40 gm (solid);
100 ml (liquid)
7:30-8:30 PM “Idli”; Brown bread; Fish; Meat; Eggs; Salad; Fruits; 80 gm
Vegetables
Note: ahttp://en.wikipedia.org/wiki/Idli (accessed 13 October 2016)
Corresponding author
Stuti Saxena can be contacted at: stuti.razia@gmail.com