Armand Fitness Centre

1. Armand's problem:

Armand The Man have a problem with their customer retention. Because it customer dropped almost 40% and it impact proportionally in profits earned.

2. Define and explain all possible causes of Armand's problem!

Few possible details of Armand's problem causes:

a. The atmosphere that it created adversary with the strategy. Armand would like to modeled the gym not only for man (for woman also), but he creating a "macho and no mercy" atmosphere. It's a little bit irritate woman's customer with that situation. The atmosphere creating "for man" mindset. Probably, most of customer left or dropped in woman segment.

b. If Armand want to reach woman segment, not only room should be separated, but the trainer should be separated, because of the woman segment different with the man segment. Most of man would like to have "a well maintained body shape" and the man body shape can look by the muscle. But different situation with woman segment although woman also need a good body shape but it rather not shown with a muscle, so that Armand could hired a liscensed beauty consultant, because woman also concerned in a beauty part which not really concerned in man segment.

c. Armand stated that every customer is different, so Armand need to add a few programe for customer needs. Through his 23-step conditioning course, it isn't concern in customer needs. It only based on product orientation not in customer orientation.

d. Through maximizing worker capacity is not the answer, but he must align the worker capacity with the customer come. Keeping his staff busy can bring a negative impact to worker's productivity, because business is not the answer, but its about their productivity.

e. Through maximizing capacity of its equipment also not the answer. He try to enforce customer to follow the equipment capacity and it will give the negative impact. Customer can irritate wth that enforcement.

f. Based on information, seems, Armand only survey the membership fees in his business coverage.

g. Armand hire a worker not based on the experiences. He only hire a graduated people who interest in athletics. Athletics business needs people designed for a trainer who well know about the athletics and health.

h. He will have more problem if he doing the accountant suggestion to raise up the annual fees. Because raising the annual fees is not the answer. Raising up the annual fees can be done if it followed by the customer raise. Because the condition he faced is the downturn of customer retention, and its not the time.

3. After all possible causes defined, estimate the causes that has the most influence to

the problems and explain your reason!

Possible causes of Armand's problem, is the differences between the strategies and activities. There are no synchronize both strategies adopted and activities implemented.

4. Based on your findings about the most influencing causes, what should Armand done? And what will be the expected result?

Should Armand done:

a. Redesign the atmostphere in his gym. With a "macho and no mercy" atmosphere can reduce or maybe loss woman's customer retention.

b. Hire a lisenced beauty consultant to accommodate woman's segment. It will take a cost, but if Armand wants to exist in