A gym chain operates 90 clubs across eight cities at Rs 2,400 a month. Below it, budget chains charge Rs 900 with basic equipment. Above it, boutique studios charge Rs 6,000 for classes with named trainers. Membership has been flat for two years; renewals are 38%. Exit surveys say 'not using it enough' more than any other reason. Average visits per member per month is 4.2. Its advertising emphasises equipment breadth and club count.
Work out what the brand stands for today, name the gap, and recommend specific changes with reasons. Say what should not change.
100 points, 60% to pass.
Renewals of 38% against 4.2 visits a month is the whole diagnosis: people are not leaving because of price or equipment, they are leaving because they did not build a habit. Advertising equipment breadth speaks to a purchase decision the member has already made and says nothing about the usage problem. The middle position is defensible — it is the pricing that is stuck, not the brand — if the promise changes from access to attendance. Structured programmes, booked slots, cohorts and accountability are what the boutique competitor is actually selling at Rs 6,000. Strong answers say what to stop paying for (equipment breadth advertising) to fund it.