TSI

Elizabeth Hansen

Neisha Lestrade

Reena Temburni

WHAT IS TSI? The Town Sports International (TSI) is largest

health club company in Northeastern United States since 1974

The network of clubs includes 135 locations NYSC, BSC, PSC, and WSC; as well as 3 locations in Switzerland

They offer state-of-the-art equipment and one-on-one training

Their main goal is get you fit They currently have more than 350,000

members accessing their facilities Member satisfaction is guaranteed

DEMOGRAPHICS OF INDIA

MAP OF INDIA

POPULATION Second most populous country Estimated 1,129,866,154 (in 2007) Population Growth Rate is approximately

1.38% Average 2.7 children born per woman Birth Rate is 22.29/1000 Death Rate is 6.58/1000 Life Expectancy

Males 66.28 years Females 71.17 years

REGIONS, LANGUAGES, RELIGIONS Official language is Hindi with a subsidiary of

English Many regional languages, dialects, and sub

dialects are prevalent (e.g. Telugu/ Telengana, Urdu, Tamil, Malyalam, Gujurati, etc.)

Religions (by percentage) Hinduism- 80.4% Islam- 13.4% Christianity- 2.3% Sikhism- 1.9% Buddhism- 1.1% Jainism- .4% Other .5%

NATURAL RESOURCES Main resources

Iron Ore Bauxite Crude Steel Manganese Ore Aluminum

Secondary resources Mica blocks Splittings Barites Chromites

Third largest producer of coal

Significant sources of Titanium Ore Diamonds Limestone Gold

INFRASTRUCTURE General Modes of Transportation

Cars Buses Auto Rickshaws Metros

Long-Distance Transportation Railroads Waterways Airports Seaports

AIRPORTS AND SEAPORTS

INDIA’S IMPORTS AND EXPORTS

Crude Oil Machinery Gems Fertilizer Chemicals Electronics

Cotton Textile Products (silk, etc) Jute Products Tea Coffee Agricultural Products Jewelry Engineering Products Chemicals Leather Manufacturers Services

Imports Exports

WHY OPEN LOCATIONS IN INDIA? It is a growing economy where businesses

are flourishing The growth of IT business in India New Delhi, Chennai, Mumbai, and Hyderabad

are big cities in which business opportunities have increased

Its Gross Domestic Product (GDP) currently stands at approximately $1 trillion, and boasts of a 9.1% growth rate- services sector makes up 60.7% of GDP

POTENTIAL RISKS

ECONOMIC RISKS As of July 26, 2008, India confronts a 12.01%

inflation rate and unemployment in 2006 was recorded at 7.8%.

As of November 18, 2008 the exchange rate of the Rupee is 49.27 to the US dollar, 64.01 to the Euro, and 80.45 to the UK pound.

The Rupee’s value has fallen recently as a result of the global financial crisis

POLITICAL RISKS Recent events in Mumbai shows one of the

biggest risks in opening locations in India: terrorist attacks

There is a short supply of highways, modern bridges, world-class airports, reliable power, and clean water

Poor existing infrastructure is being crushed by rapid economic growth and development and cannot keep up with the level of progress

Government is corrupt

SOCIAL/ CULTURAL RISKS Women may not feel as comfortable working

out in the same vicinity as men Some religious reasons may factor into

layout and design, as well as the more public areas (such as entrances)

Being a new company, members of other facilities may have a brand loyalty (and possibly a sense of national pride)

COMPETITORS Talwalkars is a fitness club that has locations

in many of the big cities, including New Delhi, Chennia, Mumbai, and Hyderabad (http://www.talwalkars.net/)

Established in 1932 They are the largest gym chain in India Offers the same style of equipment as the

majority of gyms TSI owns and operates, personal training

TSI BUSINESS STRUCTURE

TSI BUSINESS STRUCTURE TSI will enter India as a wholly-owned

subsidiary It is primarily a centralized organization and

will maintain the consistency all locations adhere to, such as services offered, membership information, personnel structure

The only difference would be physical layout of the location to satisfy the comfort level of all members

Personnel will receive onsite training

PERSONNEL Employ certified physical therapists and

nutritionists from local colleges Seminars for employees to enforce business

conduct and business policies. Employees will also be knowledgeable in

every area of the club including classes, schedules, new machines, proper execution of exercises, the latest trends in fitness, and new offerings to help current clientele as well as gain new ones.

THE UNIFORMITY OF TSI Will offer the same services and classes as

the American locations (e.g. Zumba dance, Spin classes, yoga, aqua-aerobics, etc)

Will use the same equipment and facilities as all other locations

Will offer personal training, one-on-one consultations, group training

Have access to other locations depending on membership level and website to monitor progress

Will use the same database as all TSI fitness locations

FACILITIES AND EQUIPMENT

TSI DATABASE

Finances Personnel records Employment

opportunities Potential staff Promotions and

events Schedules Company Statistics

Barcode scanner with keypass

Personal information Last scanned/visit Location Membership type Payments Appointments

Firm Based Client Based

SAMPLE KEYPASS

START UP COSTS Land/Building

Between $1 to $4 million Equipment/Machines

LifeFitness Machines range between $1000 to $3000 per unit

Televisions ranging from $600 to $2000 per unit Non-tangible

Trainers Consultants Legal and Licenses

FUNDING TSI is publicly traded company it would be

possible to sell stock, issue bonds or issue an IPO

Sponsors Tech firms Bollywood and sports celebrities

Co-op or paid internship with local colleges with physical therapy, sports medicine, and nutrition students

PROMOTION Using a pull strategy of promotion in order to

attract more clients/members Bollywood and sports celebrities promoting,

ribbon-cutting ceremonies Advertising on television with

aforementioned celebrities or in movies Advertising with banners and pop-ups on

popular Indian websites targeted at a younger demographic

WHO WILL BENEFIT? Young professionals who want to get fit, lose

weight, tone up, or gain muscle People with diabetes Anyone looking to relieve stress in a healthy

way College students wanting to apply their new

knowledge while making money