The rise and rise of TALWALKARS PRESENTED BY: BISHWAJEET JHA GEETHIKA REDDY
OBJECTIVE What is entrepreneurship…. How an idea is capitalised… What are the challenges faced… How to earn profit….How to make yourself distinctly visible among others…
THE IDEA GENERATIONPrashant talwalkar was a keen cricketer but didn’t quitemake it to top league so, he decided to join his familybusiness. He identified the gap that is prevailing in the fitness segment and worked on it. He changed Talwalkars from a company that ran gymnasiums , to one that runs health clubs and spas. He changed the business which used to struggle to open 3-4 gyms a year to one that comfortably opens 30-40 gyms in a year now.
Cont….. In the development He is a hands-on of Talwalkars Mr. He is formally the manager who isAnyone can dream Anant Gawande CFO by involved in but those dream has also played a designations but is everything aboutneeded execution, very important role closely involved in Talwalkars-fromand that’s what Mr. who brought the operations as well selecting sites andTalwalkar has done financial acumen which plays a helping design , with hard-match and the important role in interiors to buying energy and drives partnership has the profitability of equipment and flourishes ever TBVF. training. since.
SALIENT FEATURESTalwalkars Better Value Fitness (TBVF) traces its roots to thefirst gym set up by the late Vishnu Talwalkar in 1932.Leading fitness chain of India with over 100,000 members inmore than 100 health clubs over 52 cities.The company offers a diverse suite of services, including gym,spas, aerobics, and health counseling.The company revenue has risen 3-times between FY08-11,while its profit have risen over 3.6x during the same period.
Idea That Clicked….. They initially started More focus was with gyms but later shifted towards on it was changed to family gyms and nothealth clubs which is towards bodybuildingnow widely accepted gyms.as compared to gyms. Fitness centers all across the country Women was givenhas been designed by extra care as they keeping customers were the best payers view in mind and as they are more Talwalkars culture health and beauty resonates in all the conscious. gyms.
Challenges Faced The next one is cost of equipment as most of The biggest challenge them is imported. This is was and is the soaring now being overcome byprice of real estate which making direct deals withhas gone up by 3x in two the manufactures and years. even the import duties has much been reduced by govt.Next biggest challenge is The next challenge iselectricity which remains quality of staff as it is aabsent for 10-12 hours in service sector and its not many cities so the possible to keepbusiness has to be run on customer happy for 365 generators contributing days. to high rise in cost.
The Execution….. Talwalkar select location for the opening of new gym with population above 0.6 million. To avoid any direct competition from other gym they make sure they should open at least 1 km away from them. As they operate in service sector they make sure that people should have the same feel of Talwalkar anywhere they are working out. All the customers are served by well trained professionals and not by learners or trainees. They use hands on management technique in order to control the whole process which includes working on customer feedback to management.
Market Opportunities The proportion of people in the age groupIncreasing incidence of of 20-44 is projected to diseases making the go up from 37% in people more health 2006 40% in 2016 who conscious. are considered as prime market for fitness club. Talwalkar is now As the country is helping the vanity developing so as the customers i.e. those mind set of people is people who want tochanging and they are look good and arenow considering to go mainly focused onto gym for healthy life. leading a healthy life.
New InitiativesPlanning to expand overseas mainly to tap IndianDiaspora who are familiar with this brand. Planning to open slightly different type of gyms in the cities having population less than 0.6 million. Introduction of new pricing format in these small cities in order to tap mid income people and students. In longer term they will be launching things related to health and fitness like sportswear, sports nutrition, etc.
Business Drivers • There are nearly 170 towns with population lessLaunching in Tier II/III than 1 million population, as per the 2001 census. • The affordability factor of a HI FI gym membership cities would open up this large market for the company. • There are several suburbs/pockets in cities, which Deeper penetration are attractive markets for the company but not large enough to sustain a full-service Talwalkars into cities gym. • With a small sized format, HI FI gyms can be rolled out in 8- 10 weeks, against 14-16 weeks for a typical Talwalkars gym. Faster Rollout • This enables the company to spread its brand presence at a comparatively faster rate.
Business Strategy –Sales & Marketing Key promotional events in The company also does recent past include being aggressive sales and Official Fitness Partners for‚ promotion activities at the Talwalkars Kingfisher The company is constantly Company has also recently local level (each gym Calendar Girls Event, 2011 ‛ looking to promote brand launched its TV commercials location), running various and co branding activities "Talwalkars“ on to reach a wider audience on attractive schemes through with some of the leadingnational/regional platforms. the national platform. the year including New Year national consumer brands, scheme, Valentines Day’s viz. Café Coffee Day, Reliance scheme, Women’s Day Communication and scheme etc. Britannia Nutri Choice.
Conclusion The two most The most important important bases for As they are operating thing for the successAnyone can dream, development and in service sector its of business is but those dreams success of idea is necessacary to continuous workingneed execution and hands on understand the on the idea and givethis is the basic for management of psyche of the the customer a feelsuccess of an idea. resources and next is customer. of best service management of quality. funds.