STRATEGIC PROJECT

COMPANY PROFILE
• It was founded by Mrs. Vandana Luthra in 1989. They
remain the foundation upon which we continue to build
their success today.
• By redefining wellness, VLCC revolutionized this industry
and acquired the status of India’s largest health and
beauty brand.
• Today VLCC is the single largest player in the organized
sector with a pan-India presence of nearly 225 outlets
across 75 cities,
• The guiding vision of VLCC Group is “Transforming
Lives”. By “Transforming Lives”, we imply transforming
self, spreading happiness and transforming future.
 VISION
• To ensure a better quality of life for everyone, by
adopting and pursuing ethically and socially relevant
business practices aimed at shaping up people’s
confidence and making Fitness, Health and Beauty
Care accessible to all sections of our society.
 DIVERSIFICATION OF VLCC
• Weight loss programs.
• Beauty treatment and skin care services.
• VLCC spa.
• VLCC personal care products.
 PROBLEM IDENTIFICATION
• In vlcc weight losing program advertisement they didn’t
mention, that people have to go through rigorous diet and
exercise program and people don’t want to waste their
money and time for this.
• VLCC weight loosing program people are suffering from a
skin allergy due to the vibrators and itching and burning
skin problem on their stomach. Acc. to people they
complained about that they got hormonal imbalance due
to electric shocks after their weight lose program.
• People are also suffering after effects of weight loss
program like..
•

•  
• 1)Flabby skin all around body and look like a female
2) Muscular weight got reduced and fat weight got
increased.
3) Knee pain, back pain, joints pain 
4) Exhaustion
5) Bone pain.
6) Skin wrinkled and has turned to an aged skin.
• As VLCC charges a very high cost for their weight lose
program but inspite of this they are not even giving
any guarantee to their customers. Customer had
gone to enquire about their weight loss program.
 PORTER’S FIVE FORCES MODEL
THREATS OF NEW ENTRANTS:
Threat from new entrant is low because VLCC is a well
established brand in the Indian market. Therefore any
new entrant in the market would face competition from
VLCC.
BRGAINING POWER OF CUSTOMERS:-
It is very low. The reason is that VLCC offers packages to
its customers. VLCC does provide discount schemes to its
customers to retain its loyal customers but bargaining is
an issue that is generally not addressed by VLCC.
• BARGAINIG POWER OF SUPPLIERS:
It is high the reason being, VLCC is well established brand,
there is no other competitor as copmparison to this.
• THREAT OF SUSBSTITUTE PRODUCT:
It is very high, because there are lots of products in the
market which ready to compete with VLCC .
• COMPETITIVE RIVALRY WITHIN THE INDUSTRY:
Since there are many players in the market besides
VLCC, any change in price, quality, technology, service or
innovation by one firm would definitely affect the other
firm. Thus, the intensity of rivalry within an industry is
high.
 VALUE CHAIN ANALYSIS
• Inbound logistics: 
VLCC consists of a large chain of fitness centers and spas. The
products for beauty treatments are usually developed in
consultation with the professional parlor expertise at the
research and development facilities.
• Operations:-VLCC offers personalized solution oriented
therapeutic beauty treatments in skin and hair. The services
to each individual are analyzed by a specialist– Beauty
Consultant / Doctor/Dermatologist and only then they are
administered.
• Outbound operations:- The products of VLCC are sold
through its own centers and selectived retail outlets.
• Marketing and sales:- VLCC promotes its products and
services though advertisements in pamphlets and
newspapers and magazines. VLCC also offers discounts to its
customers during festive seasons.
• Services:- Apart from this, we offer specialized
treatments, regular beauty care services – and help our
clients to achieve and maintain vibrant good looks from head
to toe.
BCG MATRIX
• Stars 
Foot care solutions. 
Skin care solutions.
• Question marks
 Pain relieving solutions.
• Cash cows.
 Body firming and shaping solutions.
• Dogs.
 Lip care.
 SWOT ANALYSIS

• Strengths:- 
Strong capital base.
Strong brand equity.
Focusing all age groups.
Diversified product range.
Discounts for customers
• Weaknesses:- 
The pricing strategy.
Target market.
Product availability
• Opportunities:- 
Strategic locations and infrastructure.
Indian market getting more fitness and health conscious.
Increasing Indian economy.
• Threats:- 
Inflation.
Competition.
Unexplored markets.
GRAND STRATEGY