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The Crunch Club

a).The Crunch Club is a fitness and health club that has a truly unique design. The uniqueness of

this club derives from the fact that it has been designed with variations of style that match the

different tastes of its members. It is a fitness club that has a spectacular mix of modern and

classic materials, furniture and lighting. The crunch is a tranquil and luxurious haven in the city

centre. The ambience of the club combines with its superb infrastructure to offer the members

one of the best recreational services in Manhattan.

The fitness club is more expensive compared to other gyms but well worth it. The club

has lots of classes; it is fairly clean and has a nice set up. Club crunch was founded in 1989 by

Doug Levine. Crunch is a fitness centre that is bold and has vibrant expression of fashion,

entertainment, music and style. The crunch is considered to be one of the world’s leading

entertainment and fitness and has various locations in New York, San Francisco, Miami,

Chicago, Atlanta and Mission Viejo.

Crunch has a welcoming environment to people from all walks of life, regardless of size, shape,

sex or ability. The gym changes the way the world looks at entertainment and fitness and creates

programs like urban rebounding, fire-fighter workout and cycle karaoke. The crunch club gym

targets a group of 18-34 years old. This is the group of people who have jobs with high stress.

These are the people who like to work out mostly in a gym and desire for personal training and
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expert advice. The group also tries out speciality workouts to spice up the gym routine. Crunch

targets a population of over 45 million clients.

The Crunch Brand

The crunch brand is the key to success, growth and lasting value. The brand stands for the

recognition of far exceeds of crunch’s geography. It also stands for fitness and entertainment.

The brand adds in apparel and accessories for men and women, crunch magazine, radio, lifestyle

book series, music compilation CDs and chart topping exercise videos. The brand aims at

projecting big images.

b). The competitive advantage that Doug Levine continues to enjoy derive from the fact

that he ahs learnt to diversify into more segments of his members. Initially he had designed the

club as one exclusively for men. But later he expanded the structure, design, and facilities of the

club so that women too could join. This was made possible by his inclusion of aerobics facilities

which were particularly popular with the women folk. This was a strategy that paid off because

the number of men and women who enrol at the facility has continued to grow exponentially

over time. Despite of crunch growing male customers, they did not visit the studio in large

numbers as expected.

One of the most formidable operational strategies that Levine enlisted was the shift from

the pay-per-visit system to the membership system. Through this tactic Levin was able to attract

and retain more clientele who have since become passionately attached to the facilities. To

further this objective, he expanded the facilities so that they were more around Manhattan to

increase the catchment potential of the business.

c).This brought up operational concerns because it illustrated Levine’s change of the

current fitness concept. Creation of more unusual group exercise concepts that were nowhere
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else became another bargaining ground through which the gyms fended off competition from

rival units. He increased the number of phone lines from 4 to 20 so as to provide a higher level of

customer service.

The crunch finances experienced some exponential growth because the gyms relied entirely on

its own internally generated funds instead of seeking loans. They expanded their investment and

got new machines, which was made possible through the pre-selling of memberships.

d).The sports life acquisition is a good fit for the crunch fitness club because of three

main reasons that include the new facilities that were acquired, the membership base, and the

pricing alterations. Through the acquisition Crunch managed to bring in its fold the facilities

which included the Olympic size swimming pools and the squash courts. There was also the pre-

existing membership that would naturally expand Crunch’s client base. Moreover the revision in

the pricing regime would serve to attract more clients as new members would join in from the

catchment area.

e). Conclusion

The management should be changed from time to reduce dormancy. In that way the

business will grow abundantly. They should reduce their operating fee and give discounts to the

members. Thus they will be encouraging the members to bring in more members to the club.

They should be changing the work out routines and introduce new ones often so as to make the

members feel great and enjoy their routines.

The crunch should step up its purchases of new machines from time to time and much

these purchases by recruiting more technical assistants at the facilities. The development of

children’s fitness club will also help them grow and fend off competition in the fitness industry.