Transition was a series of ultra-premium health clubs that catered to senior executives and frequent travelers with a premium price tag. However, Transition started facing declining margins and profits as new competitors entered the market offering more affordable options. The document proposes collaborating with the Ambassador hotel chain to start a new health club brand at a more competitive price point to expand the target market while Transition focuses on adding new services like sports training and beauty treatments to attract families and remain profitable as a niche brand.

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