How Do You Grow a Premium Brand? (HBR Case Study and Commentary)
Gordon Johnston has taken his elite health-club concept from the germ of an idea to the pinnacle of success. But the most difficult decision in managing his company lies ahead. Gordon must figure out how to lead Transition fitness clubs into the next phase. In each of the 15 years since Transition's flagship club opened in New York City, its sales have doubled. The company boasts fitness trainers handpicked by Olympic medalists, health-conscious cuisine by in-house chefs, huge facilities in prime locations, and reciprocal memberships at other Transition clubs worldwide. But recently, the company's margins have been shrinking. An aging membership could mean problems for future expansion. And new, upscale competitors are challenging Transition's flat-rate pricing policy. Will Gordon have to run fast to stay in one place? Should he change Transition's pricing policy? In 95205 and 95205Z, William Campbell, Robert J. Dolan, Anita K. Hersh, Peter H. Farquhar, David Aaker, and Mary Shelman offer advice on this fictional case study. THIS CASE STUDY INCLUDES BOTH THE CASE AND THE COMMENTARY. FOR TEACHING PURPOSES, THE REPRINT IS ALSO AVAILABLE IN TWO OTHER VERSIONS: CASE STUDY ONLY, REPRINT 95205X, AND COMMENTARY ONLY, REPRINT 95205Z.