Spa Treatment Packages example essay topic

Industry Overview: There are an estimated 12,100 spas throughout the United States. In the U.S. the largest spa category, accounting for seven of every ten spas, is day spa. Resort and hotel spas are the second largest, with club spas, medical spas, mineral spring spas and destination spas respectively trailing. Geographically speaking, the distribution of spas in the U.S. generally parallels that of the population distributions with the largest region being the North East. According to the ISPA (The International SPA Association) in 2003 there were approximately 136 million spa visits made in the U.S. Sixty percent (60%) of these visits were to day spas while 27% were to resort and hotel spas and the remaining 13% were spread across the four other types of spas. The U.S. spa industry generated an estimated $11.2 billion in revenues in that same year.

Fifty two percent (52%) of a spa's revenue is gained from its treatment rooms. Despite being the largest segment, day spas, accounts only for just under half of that revenue at 49%The Kline Group research suggested a strong growth (2003-04) in the spa market close to 11% from driving forces such as:"I High levels of media attention" "I Increased number of product brands" "I Greater consumer awareness of market products / benefits " "I Lower price points relative to surgical and non-surgical procedures" "I Anti-aging trend continues Between 2002 and 2004 studies from the ISPA concurred with an annual growth rate of 12%. Since its growth rate peak in 2000 at 51%, the number has gradually moderated. As in any industry, demand is the driving force that determines how well the industry performs. Competitive Profile: With the largest population of day spas being located in the North East region the competition is tough but not unbeatable.

Top Competitors in DaiSpa's market include:" X Elizabeth Grady, Framingham, MAH air, nails, body treatments, facials, make-up (direct competitor) "X Paul Congo Day Spa and Hair Salon, Worcester, MA Manicures, Pedicures, Body Wraps, Hair, Nails, Spa Treatment Packages, Facials, Glycol Peels"X Ard an Salon & Day Spa, Wellesley, MAN ail Care, Micro Dermabrasion, Therapeutic Massage, Body Treatments, Waxing, Facials, Hair Care, Hot Stone Massage". X Serene-Scape Day Spa and Salon, Marlborough, MA Advanced Skincare, Body Wraps, Body Scrubs, Facials, Gentlemen Services, Make up Services, Manicures, Massage, Maternity Services (pregnancy massage), Reflexology, Waxing, Yoga. S.W.O.T. Analysis: Strengths:" Strong relationships with suppliers of beauty products that offer credit arrangements, flexibility, and response to special product requirements". Excellent well trained staff, offering personalized customer service". Location: providing an easily accessible location for customers". Environment: providing an environment conducive to giving professional service in an attractive, relaxing atmosphere". Convenience: offering clients a wide range of services in one setting, and extended business hours".

Reputation: reputation of the owner and other technicians as providing superior personal service". Great referral benefits for clients". In-store complimentary juice bar and refreshments". High client loyalty.

Weaknesses:" Access to capital". Cash flow will be unpredictable". Have no current client base. Opportunities:" Growing market with a significant percentage of our target market unaware that of our company's existance".

Continuing opportunity through strategic alliances for referrals and marketing activities". Benefiting from high levels young professionals in the area". Continuing awareness of spa industry and its importance to health". Increasing sales opportunities beyond our 20-mile target area". Internet potential for selling beauty products to other markets". Expansion into other markets.

Threats:" Competition from a current high profile day spas". Salary commission structure of employees". Dramatic changes in economy". Potential new competitors in the area Target Market: Our target market is primarily the Natick / Framingham residents and employees. This is a moderately aged market with a great deal of potential to build among younger clients. Please note, although DaiSpa is a unisex spa, initially marketing will focus a great deal of promotion toward women.

Market groups: Business Women (22-35) This group makes up a majority of our target market. There are a significant number of young women (22-35 yrs old) that live and / or work in the Natick / Framingham area. We will be advertising by placing fliers at local grocers, bars, restaurants, etc. with ads that stress the benefits of relaxing and self-indulgence at our spa. Location will be are primary advantage.

This group most likely has been to one of our competitors. We will key in on the fact that we are right around the corner. We will also have spa packages available for the busy business woman. Homemakers, College Students, Service Industry Professionals (bartenders, servers, beauticians, etc.) This group makes up a quarter of our target market.

Price will be our advantage to this market. These individuals probably have not been to a day spa because of the high industry prices. We have overcome this obstacle with our low pricing. We will be advertising to this group by placing ads at local grocers, apartment complexes, college bulletin boards, and direct mailers. We will also have coupons to encourage this group to take advantage of the benefits that previously have been associated with high income individuals. Business Men (25-45) This group we hope to reach because they represent a significant percentage of the population of Natick / Framingham area.

We hope to accomplish this by overcoming the beliefs that day spas are just for women by highlighting and directing their attention to the! SS unisex! " aspect to skin care. We will be placing brochures and ads at local health clubs that emphasize the importance of stress relief and massage therapy in developing muscle tissue. We have also developed spa packages for the healthy male. Key Objectives" "I Maintain an easily accessible location for customers " "I Provide and environment conducive for customers to feel safe and open to treatments by safeguarding their privacy and upholding the highest standards of professionalism" "I Convenience: giving clients the ability to make services available from a call on the road, a standing appointment, etc. Offering clients a wide range of services in one setting, with extended business hours."I Reputation: reputation of the owner and other employees as providing superior, knowledgeable personal and professional servicePositioningSummaryTactics in the Marketing Mix The average price in the U.S. of a spa treatment is $75.

The average cost per massage is $76, while the average cost per facial is $80. U.S. spas earn an average of $172 per square foot, $143 per spa visit and $277 per client, annually. DaiSpa's pricing plan will be one that is directly competitive in the market, while attempting to parallel the average incomes. We will offer innovative packages to provide savings to the customer for repeat services and immediate upfront cashflow. i.e. offering all facial treatments with 6, 12, & 24 tiered series packages saving the client anywhere from $35-$300. Distribution of our offered products will be on display and available for purchase at the salon or via the internet site. The pricing will be similar to that of industry standards striving to compete with beauty specialty stores that sell spa and salon products. Advertising and promotion will be subtly force full to if nothing else to get you excited and intrigued.

Plant the! SS we should check that place out! " seed. We will be running an extensive and quite costly advertising and promotion strategy. Radio, some local television during the prime news hours, drop leafs in major magazines, news print, bus sides, living and entertainment media.

We will also be making brochures with our product and service menu available at local venues with coinciding business i.e. health clubs, surgical offices, & medical offices. We will also place ads on bulletin boards of local universities and apartment / condo complexes. Service / Product Offering The following is a brief list of the services and products that will be offered at the spa: o Facials and Skin Care Treatment: European, corrective, therapeutic, and relaxing. o Nail services: Sculptured manicures, pedicures, and paraffin treatments. o Total Body Treatments: Full body massage, body wraps, reflexology treatments... o Beauty Products: Full skin care line of facial and body products, herbs, and essential oils.