Sales Management

Sales Management – VLCC Service delivery

of 33 Indian Institute Of Planning & Management UGP-FW/2007-2010

SALES MANAGEMENT

Project Topic: Effectiveness of Channels in Service delivery

ofVLCC

Under The Guidance Of

Mr. Pritam Sharma, VLCC Preet Vihar

NEW DELHI

STUDENT NAME: ISHMEET SINGH KOHLI

BATCH: UGP FW 2007-2010/ PGP FW 2008-2010

Ph.: 9999971855

EMAIL: [email protected]



ACKNOWLEDGEMENT:

At the onset we would like to express our enormous gratitude towards Mr. Pritam Sharma’ for

his continuous encouragement and guidance throughout our research work. His approach helped

us converting ideas into definable results. We thank him for his timely guidance.



INDEX

S.No. Contents Page No.

1. Abstract 4

2. Introduction 5

3. VLCC – A Corporate Profile 7

4. Brand Recognition 10

5. Corporate social responsibility 12

6. A Company with a Vision 15

7. REVIEW AND RESEARCH 17

8. 7 P‟s of VLCC 19

9. The Solution, Insights, and Results 31

10. Bibliography 33



Abstract

Sales channels are the tactical delivery arm of any business and need to be aligned with market

conditions, customer needs, and company-specific objectives. But too often, misalignment

between customer needs and the ability of the sales channels to meet them can create

performance gaps that can threaten a company‟s financial performance. Why the threat to the

bottom line? Because of the costs associated with delivering ”value” as well as poor sales

performance caused by loss of customers, competitors seizing market share, and unfavorable

channel partners.



Introduction

Starting as a single center in New Delhi in 1989, VLCC is today the leading chain of health,

beauty and fitness centers in India and GCC. Widely recognized for its scientific weight loss

solutions and therapeutic beauty approach, it offers services over a quarter million square feet of

retail space across nearly 225 centers in 75 cities across India and the UAE.

Established as the leader in the Indian beauty, health and fitness industry, VLCC is today

regarded as an authority in the business of wellness. Having pioneered the concept of complete

well-being, both inside and outside, VLCC has further integrated into product and brand

extensions -- VLCC Personal Care range of products (www.vlccpersonalcare.com) and VLCC

Institute (www.vlccinstitute.com).

The guiding vision of VLCC Group is “Transforming Lives”. By “Transforming Lives”, we

imply transforming self, spreading happiness and transforming future. These three pillars have

been the hallmarks of our Company since it was founded by Mrs. Vandana Luthra in 1989. They

remain the foundation upon which we continue to build our 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 90 cities, 1 in Kathmandu, 10 locations in

UAE, 2 in Oman, 1 in Bahrain and 1 in Al Ain. The VLCC Group, a „Super brand‟, serves as an

umbrella for all its other brands – VLCC Health Care Ltd., VLCC Personal Care Ltd. and VLCC

Institute of Beauty, Health and Management, VLCC Day Spa & VLCC Nutri-Diet Clinic. VLCC



services provide holistic wellness, as a service, marrying scientific research and traditional

therapies.

Having served around 10 million customers since its inception, VLCC, today, has achieved an

iconic status across the world and is India‟s largest and most preferred Slimming, Beauty &

Health brand.



VLCC – A Corporate Profile

With over 225 centers and over a 10 million satisfied customers, VLCC has achieved an iconic

status, and is easily the biggest and the most recognized wellness brand to have emerged out of

the Indian subcontinent. In essence a Slimming, Beauty & Fitness brand, VLCC has built its

reputation on, and is widely known for, its highly effective scientific and safe, lifestyle

modification based weight management solutions and the therapeutic approach of its beauty

services. However, the company‟s services and offerings straddle almost the entire spectrum of

the health and beauty segment.

VLCC‟s chain of education and training centers, the VLCC Institute of Beauty, Health &

Management provides technical training not only to students wishing to take up beauty and

nutrition as a career but also imparts training to professionals in the field wishing to upgrade

their skills. In addition, VLCC manufactures and retails the exclusive VLCC Personal Care line

of over 100 herbal/Ayurveda skin-care, hair-care and body-care products as well as a range of

functional foods like fortified honey and isabgol-a dietary fibre supplement.

Scientific Weight Management

To tackle the growing epidemic of obesity - often called a silent killer - VLCC has

revolutionized weight loss and weight management solutions. Its unique holistic approach works

without any appetite suppressants, medication, crash diets, food supplements or invasive

surgeries. At VLCC every weight-loss plan is customized. Every client is given a tailor made



program, keeping in mind cultural eating patterns and individual lifestyles. Medical history,

Body Mass Index (BMI) and Body Composition Analysis (BCA) are also key factors that are

considered. Accordingly, a safe modification in food intake and lifestyle is advised and a passive

and physical activity regimen is worked out, while intensive counseling continues at every stage.

In addition, every weight-loss program is supplemented with essential body firming, toning and

detoxifying therapies to help keep the skin firm and toned throughout the weight-loss process.

Extensive research has shown that VLCC's programs have a higher than average success rate

when it comes to weight-loss and its management, and they are effective in providing solutions

to obesity-related ailments and diseases in men and women of all ages.

Beauty Treatments & Services

For VLCC, beauty is more than merely skin deep. Its beauty therapies and corrective treatments

can undo years of abuse or neglect and give a new lease of confidence. For a start, all beauty

therapies and treatments offered here are developed in-house after undergoing stringent tests to

eliminate any risk of side effects. And every service, from the most basic beauty solutions to

highly specialized beauty treatments, is delivered by expert cosmetologists, dermatologists and

therapists. In addition, because we provide knowledge-based solutions, time is spent to carefully

analyze, identify and understand a client's skin type, and its problem areas, before a suitable

treatment is recommended. Apart from its highly effective skin care solutions, VLCC also offer

an extensive range of innovate and advanced hair care as well as styling solutions.



VLCC Spa

The VLCC Spa offers various luxurious therapy options that are drawn from the wisdom of

ancient cultures from traditional Balinese therapies to blissful Thai massages. The spa experience

strives to achieve the ultimate harmony between the physical and the mental realms of the

individual. At VLCC, we have mastered the art of wellness for the body, mind and soul. With

unique focus on the traditional Indian sciences of Ayurveda and Yoga, VLCC Spa creates a

skillful synthesis between age-old therapies and modern spa technology. The range of wellness

treatments available are de-stress, detoxification and cleansing, deep relaxation, anti-aging,

weight and inch loss, guidance in the area of nutrition and exercise.

VLCC Personal Care

The VLCC Personal Care Line consists of over 100 skin-care, hair-care and body-care products

retailed from 10,000 outlets through over 150 distributors, providing solutions for skin care,

Body firming and Shaping, Foot Care, Hair Care, Pain Relieving. All products are herbal /

Ayurveda in nature and have been formulated to suit all skin and hair types. The products are

made from special blends of botanical extracts, nutrients and aromatic oils, which are unique and

highly effective product formulae. The secret of why VLCC beauty treatments work so well lies

in the careful balance of activity, hydration, nourishment and protection, which rebuilds the

skin's natural defenses from the inside - from the cell to the surface.



Brand Recognition

Nearly two successful decades at the forefront of the health and beauty revolution has won

VLCC its fair share of honors. It is the world's first slimming, fitness and beauty corporate to get

the ISO 9001:2000, quality certification. It is also the first company of its kind in the world to get

the SA: 8000 (Social Accountability) certification for implementing global corporate social

responsibility standards. The VLCC Group has also been awarded the ISO: 14001 certification

for meeting global environment safety norms, again a world's first for an organization in its line

of business. VLCC's achievements have been recognized by its induction into the hall of fame

for brands by being awarded the Super brand status.

VLCC has over the years received a host of awards for excellence and women entrepreneurship.

Some of them include:

Images Retailer of the Year Award 2004, 2005 & 2006 (Health & Beauty category).

ICICI Bank Retail Excellence Award 2005 (Health & Beauty).

The Institute for Marketing Management (IMM) - Award for the Woman Entrepreneur of

the Year 2004.

Whirlpool/Gr8 Magazine - Award for the Woman Entrepreneur of the Year 2004.

The FICCI Ladies Organization, (FLO) honored the endeavors of Smt. Luthra for

promoting a healthy way of life by felicitating her as a Successful Business Woman in

the Health & Fitness Category, April 20, 2005.

Amity Woman Achiever Award for promoting Health and Fitness Solutions, 2006.



Outstanding Businesswoman award by PHD Chamber of Commerce & Industry, 2007.

VLCC Alive was awarded the Most Admired Retailer of the Year -Innovative Concept at

Images Retail Awards 2007.

Witnessing Mrs. Luthra‟s steadfast dedication towards liberating women through

education and empowerment, the Department Of Industrial Policy and Promotion,

Ministry of Commerce & Industry Govt. of India, made her a member of the Task force

on women entrepreneurs. Rajeev Gandhi Women Achiever 2008.



Corporate social responsibility

As a small token of appreciation to the society that gave it everything, and to transform lives in a

different way, VLCC has instituted the VLCC Foundation. This foundation provides health and

education assistance to the underprivileged and has also established rehabilitation centers for the

physically challenged. VLCC has formed alliances with leading professionals in a drive to

eradicate diseases caused by obesity and promote scientific research on the same. As part of this

initiative, it also promotes the Anti-Obesity Foundation, an independent body that creates

awareness about the problems of obesity and the steps required for its eradication. The

organization is one of the few sources that actively disseminate information on nutrition, food

preparation, healthy diets and lifestyles. Business and society are interdependent. The wellbeing

of one depends on the well-being of the other. Corporates have to redefine their roles in the

discharge of their social responsibilities towards community, besides the government-initiated

developmental programs directed towards improving the health and living standards of the

people at large.

VLCC has defined its Corporate Social Responsibility along two broad dimensions. One is

directly through eradicating obesity and educating the public at large about the scourge that it is

and secondly through its support to institutions that are committed to the cause of improving the

well-being of the under privileged sections of society. VLCC believes that the beauty inherent in

every one of us can only shine in a just and fair society, where equal opportunity is not just a

dream. As a small step towards realizing this vision, VLCC has instituted the „VLCC

Foundation‟. This Foundation undertakes activities for the development of local communities

and works in association with many NGOs to transform lives.



Apart from a beauty training school that VLCC runs at Sangam Vihar, the group has also

supported various other social initiatives of non-profit organizations, Tsunami relief and others.

VLCC has also instituted the “VLCC Foundation” which runs programs to provide health and

education support to the underprivileged and rehabilitation schemes for the physically

challenged. The Foundation also actively organizes health check-up camps in cardiology,

gynecology and diabetes, among others. VLCC, through VLCC Foundation, has also embarked

on a drive to raise funds both directly and through its network to trust NGO‟s with a record of

deploying funds fruitfully in projects in line with the national objective of eradication of poverty.

VLCC has made commitments with recognized NGO‟s whose existing contribution towards the

poorer section of the society is distinctively visible

The Foundation works in association with the following –

1. Ministry of Women and Child Welfare, Government of India

VLCC Foundation provides vocational training to women in shelter homes to make them

employable in the beauty industry.

2. Khushii

VLCC Foundation provides employable skills to under privileged women as well as supports

children in the remedial schools.

3. Tamana and Amar Jyoti



VLCC Foundation supports the education of children financially. Also undertakes training to

groom the children with vocational courses.

4. Help Age

VLCC Foundation has created an educational package on wellness for the elderly.

From providing health & education assistance to the underprivileged through specialized courses

to establishing rehabilitation centers for the physically challenged, VLCC Foundation strives to

make a difference.

VLCC Foundation is a partner to professionals in the drive against health problems caused by

obesity. WHO estimates that there are close to 50 million obese Indians and VLCC is committed

to eradicating obesity through its various initiatives, working as it does closely with the medical

profession to educate target audiences about prevention of obesity. To promote scientific

research and create awareness about the dangers of the disease, VLCC celebrates 26th November

as the Anti-Obesity day. The Foundation disseminates information on nutrition, food preparation,

healthy diets and lifestyle problems related to obesity. In close association with the medical

fraternity and VLCC‟s Research & Development, the Foundation has developed new and safe

ways to fight obesity by conducting awareness programs, training camps, and workshops.



A Company with a 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 Slimming,

Beauty & Health accessible to all sections of our society.

Awards & Recognition

The greatest reward, which VLCC enjoys, is the trust and faith that millions have in its name.

VLCC today is a brand synonymous with Slimming, Beauty & Health.

It has the distinction of being the world‟s first Health and Beauty corporate to get the ISO

9001:2000 certifications.

VLCC has over the years received a host of awards for excellence and women entrepreneurship.

Some of them include:

The „Super brand‟ status - one of the most recognizable brands in the country today.

Images Retailer of the Year Award 2004, 2005 & 2006 (Health & Beauty category).

ICICI Bank Retail Excellence Award 2005 (Health & Beauty).

The Institute for Marketing Management (IMM) - Award for the Woman Entrepreneur

of the Year 2004.

Whirlpool/Gr8 Magazine - Award for the Woman Entrepreneur of the Year 2004.



Best Beauty & Wellness company- Mega Excellence Award.

The FICCI Ladies Organization, (FLO) honored the endeavors of Mrs. Luthra for

promoting a healthy way of life by felicitating her as a Successful Business Woman in

the Health & Fitness Category, 2005.

Amity Woman Achiever Award for promoting Health and Fitness Solutions, 2006.

Outstanding Businesswoman award by PHD Chamber of Commerce & Industry, 2007.

VLCC Alive was awarded the Most Admired Retailer of the Year -Innovative Concept

at Images Retail Awards 2007.

Witnessing Mrs. Luthra‟s steadfast dedication towards liberating women through

education and empowerment, the Department Of Industrial Policy and Promotion,

Ministry of Commerce & Industry Govt. of India, made her a member of the Task force

on women entrepreneurs.

Rajeev Gandhi Women Achiever 2008.

Award for Woman Super Achiever in Retail by the Retail Congress- 2009.

Women Business leader in Health Care- 2009- Women Leaders in India Forum.



REVIEW AND RESEARCH

Vandana Luthra’s Curls and Curves (VLCC) was founded in 1989 by Vandana

Luthra – a pioneer in the slimming and beauty industry in India. VLCC is the leader in the

slimming and beauty industry in India, The Company derives half of its turnover from slimming

and the other half from the beauty and cosmetology lines of businesses. VLCC Health Care Ltd

is targeting a turnover of Rs 1,000 crore by 2010 from its domestic and international healthcare

and personal care products business, and expects to come out with its initial public offering

(IPO) during the 2009-10 fiscal.

Expansion plan

Mr. Yogesh Sethi, Chief Operating Officer, and head of the domestic healthcare business, said

that the company had chalked out an aggressive expansion plan that involved setting up a total of

300 health care centers and 100 training institutes over the next two years. The numbers as of

now are 100 and 10 respectively.

Tier-II, III towns

"VLCC is looking at tier-II and tier-III towns to put up fitness centers as well as training

institutes," Mr. Sethi said, adding that company-owned as well as franchisee route would be

adopted. With the western and northern regions being the traditional strongholds for its business,

VLCC will focus on the southern region in the coming months, and also add centers in Siliguri,

and some towns in Assam.



The company has three arms (domestic health care, international business and personal care

products) and currently gets 70 per cent of its revenue from the domestic health care business.

Mr. Sethi said that with the number of VLCC centers in West Asia poised to grow to 28 from the

existing five, the ratios would be realigned and all three units would generate equal revenues in

the coming years.

**Source: The Hindu Business Line Thursday, Apr 26, 2007

Positioning

The company uses a positioning strategy of 'Scientific Body Solutions' and not just one of a

slimming center.

Segmentation & Targeting

The management at VLCC has segmented the market as:

Needy Customers: Those who come to clinics on seeing the advertisements in the print

and non-print media. The company gets about 10% of its revenues from this segment.

Smart Customers: People who rely more on word of mouth referrals and would normally

visit many clinics before deciding on which clinic to join.

Professionals (such as doctors) who could refer potential clients to VLCC.

The management of VLCC feels that the first segment is saturated and has decided to focus on

professionals to get referrals.



7 P’s of VLCC

Product

VLCC uses the latest German technology of cellotherm treatment for providing a guaranteed

weight loss program. Different gadgets are used for target area reduction, body firming and

figure shaping and body curving. The two major areas in which VLCC operates are:

1. Weight Loss Program

Weight loss program of VLCC is highly scientific that helps the client achieve a gradual and

study weight lost Application & Challenges at the rate of 4-5 kgs a month. Besides making the

client attractive, it offers a scientific solution to overcome health problems. Some features of this

program are:

No Appetite Suppressants: There are no non-physiological measures like appetite

suppressant drugs and anti-obesity drugs used to control food intake. The effectiveness of

Weight loss because of anorectics appears to be quite high, but since, safety has always

been a matter of discussion, their use is completely avoided in VLCC. The food intake is

modified to achieve healthy caloric deficit in a natural way.

No Crash Dieting: This is completely out from the VLCC‟s weight loss program. Here

there are two phases in the management of obesity. The first phase involves weight

reduction and the second prevention of weight gain through weight maintenance



program. Substantial reduction in body fat as well as lean body mass results in decreased

energy expenditure. Hence there is a tendency in weight loss to reach a plateau. To avoid

it, VLCC has very strong monitoring and counseling sessions to achieve permanent

change in dietary habits to change the energy balance.

Scientific Monitoring through Clinical Investigations: A representative sample of clients

is put through various clinical investigations like lipid profile, urine analysis, other blood

investigations etc. It has often been observed that there has been a direct relationship

between weight loss and improvement in lipid profile. Such investigations also help in

providing a „double check on the functioning of the slimming program‟.

Diet Modification: VLCC has very strong monitoring and counseling sessions to achieve

permanent change in dietary habits to change the energy balance. Besides the quantitative

Support, complete care is taken to provide right percentage and quality of calories from

carbohydrates, proteins and fats. Foods providing empty calories are cut down and low

calorie foods are encouraged to provide not only less calories but also enhance the intake

of fiber, vitamins, minerals and antioxidant nutrients protect against oxidative damage

and improve defense mechanisms. All kinds of artificial foods, even the foods rich in

preservatives are completely discouraged in VLCC‟s weight loss programs.



2. The Weight Loss Food Guide Pyramid (A Guide to Daily Food

Choices)

The Weight Loss food guide Pyramid is an outline of what to eat each day based on the Dietary

Guidelines. It's not a rigid prescription but a general guide that lets the customer choose a

healthful diet that's right for him. The Pyramid calls for eating a variety of foods to get the

nutrients you need and at the same time the right amount of calories to maintain healthy weight.

Lifestyle Counseling: A behavior modification program involves the identification of

factors that cause the maladaptive eating behavior.

The program dairy is very useful in keeping a track of a client‟s behavior regarding food. In

any self-change program, a dairy is an essential ingredient because it helps in

Keeping a daily record of your food intake.

The degree of hunger & emotional state.

Time taken to eat a meal/food.

The place where it was taken.

The simultaneous activity association with it & the quantity of food consumed.

Some problem areas can be

Eating left over to avoid wastage

Snacking while watching the TV

Eating very rapidly.



Another method could be by asking a few questions, whereby a counselor can determine the

behavior/habit, which contributes to overeating the wrong kind of food. Once the problem

areas are identified, the subject & counselor together initiate changes. VLCC offers a

guaranteed weight-loss program, without using any 'crash diet' weight loss technique.

3. Beauty Treatment

It also has a compact variety for beauty treatment, such as:

Laser Superior with Scanner: For the treatment of fine wrinkles, scar tissue, pimples, falling

hair, skin tags, warts and other skin imperfections.

Mel fade: Revolutionary skin-lightening treatment that dissolves pigmentation permanently

in chlosma, acne scars, etc.

Skin Freezer: Advanced treatment for acne, acne nodules and hard pigmentation.

Ionos: Useful for skin detoxification to remove dirt and grime, skin toning and removal of fat

tissues from the face.

Microbiolifter with Frimator: Rotatory machine used in combination with dermabrasive

creams for refining scar tissue, smoothening skin, etc.

Oxygenated steamer: Incorporates medicated serums/liquids into the skin for various

treatments like acne, oily skin, dry skin, etc.; is also used for toning and firming the skin.

Facial vacuum suction: Useful for transferring fat from one area of the face to the other, i.e.,

double chins.

Skin stimulator: Emits warm steam to open pores to stimulate blood circulation in

combination with various herbs to soften comedowns.



Enzyme therapy: For lifting and toning of skin. Used in combination with microbiolifter to

speed up the end result.

Thermodyn: Incorporates medicated creams into deeper tissue for skin detoxification, skin

tightening, pore refining, etc.

Depitron: Permanent hair removal from the body. Painless & scar-less procedure that

effectively helps Hirsutism problems arising out of any thyroid or genetic disorders.

High Frequency Treatment: Effective for hair problems like falling hair, rough and dry hair,

dandruff, etc.

The beauty/cosmetology service acts as a complement to the slimming service being offered at

the clinics.

Pricing

VLCC charges Rs.1200 per kg of weight lost. Pricing is generally premium as compared to the

competition in the market. But it is not exclusivist in the sense that even middle class people can

afford the services with their rising disposable incomes; but it is targeted mainly at the upper &

upper-middle class. But, the basic premise on which VLCC‟s pricing is based can be put forward

best in their own words as – “Quality comes at a price”. The prices charged are program specific

rather than session specific – thus the customer knows specifically how much she has to pay for

the whole program.

Place



Most of the clinics are situated in and around Delhi. There are 14 clinics in the NCR region.

VLCC also has a presence in Mumbai, Chandigarh, Calcutta, Chennai and Ludhiana. All VLCC

centers are open from 10am to 7pm all 7 days a week. VLCC does not have a franchisee system

but does have Joint Ventures with parties who make a monetary contribution but are not

involved in day-to-day running of the business. The collaborator recoups his money in about 3

years.

Promotion

VLCC advertises very regularly in the print media such as newspapers. The company has an

advertising budget of 12% of sales and has allocated approximately Rs. 108 cr. for this purpose.

Besides VLCC has more recently started conducting seminars on obesity and other related health

issues? Prominent doctors are invited here and this helps in getting clients as referrals from the

doctors. The winter months are considered as lean seasons for this industry and discounts are

offered to clients during these months. Though the company does not believe in giving member-

get-schemes, as the feeling is that a satisfied customer is the most important patron for the

company. As the main target comprises women for any slimming center, VLCC has entered into

a tie-up with Smartbahu.com – a women‟s portal owned by Dabur. To be a little different from

the competition, VLCC has decided to change its advertising and has received presentations from

O&M, HTA and Lintas for the current year. The conventional “Before and after” form of

advertising does have an impact in new markets but not so much in saturated markets.



The slimming and beauty divisions of VLCC complement each other. A customer who

completes a slimming session is given a free trial offer on some beauty products and these acts as

an inducement for the customer to buy the other gamut of beauty products offered by the

company. In fact there is a 50-60% conversion rate of customers from slimming to the beauty

divisions. Beauty is a repeat business unlike slimming.

VLCC has appointed Ogilvy & Mather (O&M) as the creative agency for all its business

verticals in India, including the slimming & beauty services, day spas, beauty & nutrition

training institutes, VLCC Nutri-Diet Clinics as well as the VLCC Personal Care line of skin-care,

body-care and hair-care products. For the Middle East, including UAE, Bahrain and Oman,

VLCC‟s creative duties are being handled by Dubai-based Bates Pan Gulf, the region‟s leading

marketing communications group.

In addition, VLCC has also appointed Media Contacts, the global interactive media network of

Havas Digital to deliver strategic and actionable marketing insights across digital media. Its

CRM initiatives will be managed by 141 Sercon, a WPP group company & one of the largest

specialized “below-the-line” marketing services agencies.

VLCC has also engaged one of the largest BPO companies, Aegis Communication, an Essar

Group Enterprise to manage its domestic call center operations. Commenting on the new

appointments, Mr. Sandeep Ahuja, Managing Director, VLCC Health Care Ltd. said, “VLCC is

a very special brand with tremendous momentum and we are committed to strengthening its

leadership position in the wellness domain. The appointment of O&M and top specialists in the

areas of CRM and internet market is in keeping with the VLCC Group‟s target of achieving



superlative growth in the next two years both in India and overseas through a finely tuned focus

on R&D, customer delight and best-in-class marketing initiatives. ”

VLCC also offers pre-wedding packages, which includes Weight loss, Figure correction, Face

and double chin correction, Detoxifying facial, special beauty packs, Thermophorosis and

Iontophoresis.

Process

There is a certain degree of standardization across all clinics. But each customer also gets a

customized package. The body composition analysis is done for every individual, which gives

basic metabolic rate, lean weight, fat weight, water composition and also the target weight

depending on the activity of the person. With knowledge of above inputs, the complete program

for weight loss is planned and executed. VLCC has programs for spot reduction, giving weight

loss only on specific areas like stomach, hips and thighs. After specific weight loss there is a

special package, which helps in firming and toning the loose skin and muscles.

All clinics of VLCC are treated as SBUs and a sufficient degree of empowerment is given to

employees at each of these clinics. There is no interference in the day-to-day affairs of clinics by

the head office. The clinic managers have been empowered to offer discounts on their various

schemes and do not need to seek sanction from the head office for the same.

VLCC also offers a unique cellotherm program for weight loss, as mentioned before – this

program has been used successfully in Germany before for harmless weight-loss treatment



without any side effects or inconvenience. They are the only licensee in India for this treatment –

thus providing them some sort of technology patent. Also, no special diets or artificial food

packets are used. For inducing fat loss, VLCC relies on the following modification procedures:

Dietary Modification: Calories lost 500 k Cal per day.

Behavior Modification: Calories lost 100 k Cal per day.

Activity Modification: Calories lost 150 k Cal per day.

Fat Disintegration System: Calories lost 400 k Cal per day.

This implies just about 30% of fat loss is affected through machines and the other 70% does not

involve machines.

Here is a summary of the general outcome of weight loss achieved through the weight loss

program:

Total calories lost per day = 1400.

Thus, Total calories lost per week = 1400x7 = 9800

According to the law of nutrition, for every 7700 calories lost a person loses 1 kg.

So, a person loses approximately 1.28 kgs. per week

This amounts to approximately 5.12 kgs. In a month because of the program.

To measure post-purchase satisfaction customer satisfaction surveys are conducted to get

feedback from customers on the quality of service being provided.



People

Each clinic has 2 in-house doctors, 2 panelists, a nutritionist and a nurse. Beauticians and hair

experts are engaged in active research to offer the latest in cosmetology to their clients.

VLCC academy of beauty & health offers intensive courses in beauty, health & nutrition.

To motivate employees, performance based incentives are offered.

Physical Evidence

VLCC has clinics in all regions of Delhi and NCR (National Capital Region) and is rapidly

expanding operations in other cities also. The ambience of all clinics is standardized according to

company policies and designed to appeal to clients – both present and prospective – so that a

consistent brand image so portrayed to the customers of VLCC.

What do VLCC’s customers really value?

Understanding that customers value is critical, because a business wins when it addresses

customer needs better than its competition. It can also enable a business to adjust each

customer‟s service to the appropriate level. For example, one customer may value a sales

representative visit while another prefers to place orders by phone. Unfortunately, without direct

feedback from their customers, many companies rely on internal biases or outdated practices in

serving customers, such as a ”one size fits all” approach or a simple customer segmentation

using internal measures such as revenue and growth to determine service levels. This can lead to



under- or over-serving customers. Under-serving can cause customers to feel neglected and

migrate to the competition. The costs of over-serving hit your bottom line and can prevent your

sales force from going after new business opportunities.

How effectively do VLCC’s channels meet customer needs?

Without a well-defined view of channel capabilities, a company cannot fully understand how

well their channels satisfy customer needs. Channels can provide value to customers in many

forms, such as:

Product information

Informal consultative advice

Technical support access

Transactional support

Within these areas, each channel will likely have different levels of capability. The challenge is

defining what these capabilities are, when services should be provided, and to which customers.

Effectively meeting your customer needs should lead to a higher level of customer satisfaction

and better use each channel‟s core competencies.

What does it really cost to serve customers?

Companies measure their overall business performance on revenue and profit margin.

Unfortunately, a company can show an overall increase in profitability, yet still be leaking

margins in serving certain customers. This is because they probably do not understand the true

cost of serving their individual customers. While financial systems typically capture the sales



revenue and gross margin for each customer, they often do not capture other costs that impact

profitability, such as:

Cost of sales visits (e.g., sales resource time and expenses)

Freight costs

Product testing

Payment terms

Poor understanding and management of the true cost to serve a customer can keep them from

being a profitable customer.



The Solution, Insights, and Results

The company‟s first step was to study and understand the current state, which revealed that a

dramatic readjustment of channel coverage and performance would be required to fully exploit

growth opportunities in the marketplace.

The cost analysis was very revealing. The majority of selling expenses could be attributed to

serving traditional multinational customers. By contrast, little was spent on acquiring new

customers and markets. It was unclear whether the money spent on existing customers was

actually required or simply a legacy of how business had been done over the years.

The company then looked at each customer segment to identify the most profitable customers

and greatest growth potential. It concluded that the needs of the price-sensitive customers could

be met by a “skim” strategy; Improving channel performance is only the first step in the journey.

Ongoing channel maintenance is vital to effectively executing any channel strategy. Key

considerations for maintaining channel performance include:

Securing organization-wide support. Ongoing channel management is

not limited to the sales function. The Human Resources group can identify employees

with the applicable skills to move from field sales to a telesales role to support the new

channel model. IT involvement is essential, as technology should support each channel,

including inquiry handling, contact management, and transaction support. In addition,

Finance needs to be responsible for measuring and reporting channel performance.

Consequently, without collaboration across the organization, effective channel

management would not be possible.



Properly measuring results. Most companies measure sales performance with

revenue targets rather than profitability metrics. If sales force performance is measured

on revenue alone, the sales force may look effective in meeting sales goals, but they may

be sacrificing margins. Aligning sales performance with profitability targets should drive

the appropriate sales force behavior. These metrics should extend to channel partners and

be evaluated regularly to yield the biggest increases to the bottom line.

Practicing ongoing channel management. Market dynamics and customer

needs are constantly evolving, and companies need to react to these changes. In some

cases, sales managers can share this responsibility, but many do not have the capacity to

dedicate additional time to channel management. To address this problem, many

companies have appointed channel managers to oversee channel performance and adapt

the sales channels as required. Ongoing channel management can lead to a more

effectively run business as the sales force has clear focus and channel partners know their

targets. Management has the necessary information to identify underperforming channels

and react to changes in the market. All of these contribute to bottom-line growth.



Bibliography

http://www.wikipedia.org/

http://books.google.co.in/

http://vlcc.co.in/

http://vlccpersonalcare.com

http://www.wikipedia.org/

http://books.google.co.in/

http://vlcc.co.in/

http://vlccpersonalcare.com/

Sales Management

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