CASE ANALYSIS

TITLE: CLUB YOUNG AT HEART

A number of recent events have renewed public interest in fitness group in Makati. First,
obesity has been the subject of concern in the past four years. TAF Clubs (Trim and Fitness
Clubs) have been established in Makati schools for students found to be obese after their
medical examinations. Obese students are required to report for special classes while their
classmates have their recess break. These classes see the students engaging in the exercises
and partaking of healthy food for their snacks. Second, the government through the Sports
Council introduced the Fitness Workout which was the fitness program for everyone. The
results were fantastic. Most individuals, especially the under forty generation were now
interested in looking fit and trim.

In response to the public urge to be slim, fitness clubs were springing up in the market place
like mushrooms after the summer season. But the industry had not yet caught the attention
that invites government regulation.

The multitude of fitness outfits set their sights on the youth market – twenty to thirty-five years
old, who seemed to go to the centers because of some combination of social atmosphere and a
desire to stay in shape. The overweight, over-age forty group – the people who really needed
fitness help – were not addressed by the industry.

The idea of starting a fitness club designed exclusively for people over forty was discussed by an
entrepreneurial class at the university. Nellie, an aggressive student, was keenly interested in
the idea, and several class members asked her to present her version of this entrepreneurial
opportunity. Standing in front of the group, Nellie made the following presentation:

As an entrepreneur, I see the idea of a fitness centre for established people over forty
years of age a good business opportunity. According to my observation, people over
forty years may be out of shape, but that is not really their concern. What they want is
to
stay healthy, to look young and above all, not to have too much fat around the waist. In
my opinion, the over-forties need these health clubs more than the young people.

I would call the venture Club Young at Heart, signifying that it is for men and
women in their forties, fifties, and even sixties. The following are some specifics:
 * Location: Free standing, near apartment complexes and residential areas in an
upper-class part of town.
* Décor: Luxurious, with plush carpets, brass fixtures, and so on; nothing cheap
or flashy. Attendant at the front door, dressed in snappy red suit and
cap, to park customers’ cars. Large bay windows with a lovely view of the
outside and plush sitting areas. Changing rooms clean and bright. Attendant
on hand distribute towels and give massages.
* Atmosphere: A private, exclusive club atmosphere, dignified but friendly. A
social feel, a place where you would like to run into neighbors and
friends. Only for forty-, fifty- and sixty year olds, with age limit strictly adhered to. No
children.
* Instructors: In their forties, qualified and competent, cheerful and not
intimidating. Dressed in loose track suits. Men and women who are
good- looking but not necessarily with perfect physiques. Sensitive to older
peoples’ egos, careful about when to give advice and when not to.
* Snack bar: Salads and sandwiches, fresh fruit and health foods, served with
freshly squeezed orange juice and fruit punches. Waitresses in maid
uniform to serve customers.
* Facilities: Weight room, spacious swimming pool, squash and spa facilities,
exercise room/gym.
* Programs: For women: short but through workouts run by women well-known
in the community. For men: more rigorous workouts, run by prominent
businessmen. Instructors not necessarily in good shape but
knowledgeable in first aid and able to work closely with their groups.
* Advertising: Emphasis on the social experience. A place to get fit with dignity.
Exclusively for the establishment – ages forty to sixty. Media: high-fashion
magazines and prominent newspapers.

After she made her presentation, she asked the audience, “Now that you get the idea, what do
you think about the concept as a viable business venture? What more information do you
need before you make a decision? If you think it is a viable business venture, where do we go
from here? `if you do think this is a good business opportunity, tell me why?”

REQUIRED:

Give your responses to Nellie’s questions.