Marketing Ymcanyc

2000

HEALTHTRAX FIVE YEAR PLANNING PROCESS

Submitted by Amar Khadey

MEMBERSHIP DEVELOPMENT

I. Financial Outlook

A.) Annual revenue trend for Y-T-D 2000

Health & Wellness Programs / Adult Membership

1999 2000 2001 2002 2005

Total Revenue 1,500,000 1,593,068 1,750,000 1,850,000 2,250,000

Net Operating

Revenue

378,838

525,000

595,000

750,000

PR/

Revenue 45% 41.6% 38% 35% 35%

Average

Dues $52 $58 $60 $60 $65

Adult Members 1900 2001 2100 2200 2500

# Adult Lockers 250 250 250 250 250

% Capacity 93 93 94 95 96

Adult Retention 55% 60% 62% 63% 65%

B.) The plan will focus on continued membership growth at an average rate of 5%, hence year ending 1999 a 5% growth and Y-T-D 2000 a 8% growth.

The plan for the 2000 fiscal year will be on net member growth of 5%. The Membership retention rate will be at 60% for the 2000 year.

C.) The single largest category with consistent growth, has been the 21yrs old - 45 yrs old segment. Over the past year 1999, we have seen a growth rate of 8%. The growth rate in Family Memberships has been the rising star over the last two years with 10% growth but have anticipated a decline in the number of Family Membership to be sold, for several reasons:

1.) The implementation of the new pricing strategy, over the past year contributed to stagnant growth. For 2000, the concentration will be on retention rate improvement and volume growth rather than on price increase. We have committed to keep rates steady for the next year and focus on quality improvements and program value.

2.) The rates over the past two years have been on pace with this strategy and will see the final product by year-end 2000. The 1999 plan had an effect, not only in the growth of revenue but in the overall net loss in total members. We are forecasted to see a slight gain in net members for 2000 (5%).

3. ) Operating capacity is a vital component with respect to revenue growth and net member gain/loss. As Healthtrax approaches capacity we will need to begin to realize the impact operating capacity on membership development. We are in the process of addressing these issues and others as it relates to programming, by the way of our master planning process. As we fast approach we will realize the importance of providing quality enhancements in the area of Fitness programming in order to keep retention rates increasing, by way of our personal counseling program, stayfit, personal training and group exercise classes.

II. Membership Development & Expansion

A.) Over the last year the Membership Department has had a major impact on sales, tracking, relationship marketing, database marketing and promotion in accordance with the Best Practices Principles. The continued growth in Membership is not by chance, we have developed a very high-end system which will ensure the continued success of the department in the years to come. The following are the key attributes of the sales system in place:

1.) The training of staff in all areas of customer service and sales.

2.) A realization that the most important component of the sale is the tour & close.

3.) The ability to target markets and effectively tailor a membership package to meet the needs and wants of different membership segments. For example, new members are targeted based on specific market segments characteristics such as interest, age and membership type. Specific packages are also tailored to meet the needs and wants of p.p. expired members, tours, and guest pass purchasers.

4.) Effectively cross-market membership packages and programs to current members. (database marketing)

5.) Aggressive telemarketing and accurate response tracking systems used to gage the needs and wants of members and potential members.

6.)Effective communication to all Members via. newsletters, program brochures, and special promotional events.

7.) Ability to track and monitor all sales activity on a qualitative basis.

8.) Reward system to recognize "star" salespeople.

9.) Provide accurate and pertinent information in all sales areas to the customer.

10.) Keen ability of senior management to recognize and mold the various personalities in the sales team to sell and better serve the customer and to hone their skills for specific tasks to ensure a smooth flow in the Membership Sales Office.

B.) The most important aspect in achieving and exceeding budget is the strong commitment and dedication from staff as well as secure plans to deliver the goods and services to the member. We have engaged a Senior Management Team to review not only potential shortcomings abut also have effective solutions to any problems. Included in this team include the Executive Director, Building Director, Service Director, Business Health Program Director and Business Director. As a team, each has an equal decision in the day-to-day operations and managerial finance outcomes to the overall success of Center operations.

C.) With respect to Membership Development, the team has reviewed suggestions on the expansion of space, equipment purchase, facility cleanliness, marketing coordination and overall service to members. We plan to continue operations of our current plan, with a focus on effective communications, marketing and advertising campaigns geared to current customers, so that we may consolidate our costs efforts in Membership / Fitness / Program areas to effectively run an external adverting