Bodywise Health Spa: Product Assessment - Research Paper Example

Product Reassessment. Executive summary In the recent past, organizations have adopted a way of increasing productivity when faced with economical, social, technological or environmental changes and that is through change management. However, these organizations have resulted to marketing strategies as an addition to that. To achieve these marketing strategies an organization must identify and understand environment dynamic forces which include; PEST, competitors, customers and itself. In this article, I will use an example of a company called Bodywise Health spa. Bodywise Health spa is an organization offering a complete day spa and body workout experiences to small medium sized businesses that offer health services to their employees. The spa will offer massage in different variety of styles including traditional massage, deep tissue work, hot stone massage, pregnancy, reflexology, sports and others. (Bplans, 2010). Treatments on body and face using the best products such as Pevonia’s Anti Free Radical Treatment and Vitamin C Antioxidant Facial are offered by the health spa. The latter also uses special latest techniques and anti aging products. The challenge The product to be marketed by Bodywise Health spa will include body creams and jellies, which have different purposes on the body. The spa’s mission is to ensure that the client get their value work through quality services. The ultimate goal is to ensure that the customer does not only comes back once but more and more often, not forgetting other referrals. The spas main strategy is to use any opportunity available in the market their products and services to customers. Best products on creams and lotions will be used. A classy environment that is relaxing, comfortable and enhanced by smooth music, lighting, decor will be available. Feedback mechanism will also be used to get client’s needs (Afuah, 2004). Projected sales of the product will be approximately 2 million dollars after every month excluding services which will also be projected to generate an income equivalent to the same amount. These are the major challenges of the organization which have to be faced by the entirety and a major conclusion met. Situation analysis Customer number is of major concern to any organization. Turnover will be a major consideration in formulating which marketing strategies to be used. Their type and their numbers are also equally important so as to bring a variety of the products to fit in the various types of customers. It will target potential clients both male and female within ten mile radius within our location at a busy plaza in the city. Both individual employees/self employed and non employed employees are also placed in the plan. In order to acquire clients, the spas will implement a very aggressive marketing and networking in the business community through advertising in the media and going to the business premises to carry out presentations, followed by offering the best services in the health spa business. Skilled therapists and trainers include the personnel. Their prices are also competitive in the area so will give a better financial advantage. Pricing approach includes; penetration pricing, promotional pricing and premium pricing. Penetration pricing is normally put first and includes setting the prices very low to gain market share. Promotional pricing comes in order to enable the business to buy for long term. Premium pricing will be used lastly which involves setting a very high price of the unique product to gain competitive advantage from the other competitors in the market. Social sites like face book, twitter, you\tube will be of great marketing help, and also in the company’s website. Sales promotion using short term incentives to encourage business to respond and undertake some activity and personal contact between Bodywise Health spa and prospective business clients through face to face meetings and tele-marketing will help maintain they spas competitive edge. The success of the business is mostly determined by the location. The spa is located at strategic places within the outskirts of the town with focus on management, sales and marketing and ensuring massage and aesthetician therapies to the employees are done up to standard. With these tactics the potential of the profit to the organisation is maximised potentially by a direct-care giver over a one or two person operation without any sales, marketing or management background. The managers have conducted a major feasibility study on all spas in the country and taken ideas from the best spas. Mistakes have also been noted down and worked on them to make them their best opportunity. Collaborators Bodywise Health spa should take into consideration the option of forming a subsidiary of its own to enhance a wider marketing area. However, the subsidiary is answerable to the main office but the accounts are prepared separately, later consolidated. Through this marketing collaboration, more sales are done; more customers come into the picture hence more profits which will be indeed a major boost. Joint venturing with a different partner who may not necessarily be doing the same business as spas but who will help maybe in the manufacture of their products like the jelly bottles, stickers and application tools. Though profits generated will be shared because of the nature of the business, it will be better than nothing. Hence more income is generated. Reliable, strict, well maintained distributors will be of major help. Lateness by any distributor is a major setback to the organisation which is profit oriented. Such distributors should be discarded with an immediate effect. Honesty is of major concern to any organisation regarding its distributing agent it is working with to avoid unexplained disappearances of products. Climate Macro environmental P.E.S.T. analysis, i.e. political and legal environment, economic environment, socio-cultural environment and technological environment. Political and legal environment should be friendly. If the political scenario puts a major risk to the going concern of the business, then the best option would be to relocate. In the context of legal framework, the simplicity to get a working permit should be a great consideration. Since no organisation is allowed to operate without a valid licence. Bodywise Health spas organisation is in the best location since the local government authority is a well managed piece of institution hence no difficulty in acquiring a licence, unlike other spas, hence no termination of services whatsoever. This is a direct flight to greater sales. Economic factors like higher interest rates may be a major problem because if this organisation was to be started using borrowed money, it would be much harder to take a loan to start the business thus a major discouragement to invest in it. Gradual taxation changes will have an effect on the financial statements of Bodywise Health spas. Fluctuating profits , in most cases will be to a downfall will be of keen interest to the investor, so Bodywise Health spas was placed in a location with a steady taxation rate. If the national income increases, it will mean that there will be a demand for the creams and jellies from the organisation, hence more profits. In the near future, this organisation will be in the advancement stage where it will be exporting its final product. In the happenings that the currency is strong, it will make exporting more difficult since prices will rise in the foreign currency. Social/cultural factors such as changes in trends will have an impact on the jellies and creams. They must be in the most fashionable state as at that time. Demand for obsolete product would go down and also will sales hence low profits. In this organisations environment, the population is ageing so more anti ageing products are being produced hence Bodywise should be on the first lane to achieving this specific products. Technological factors affect the organisation in many ways. First technological advancement in products will in most cases lead to more demand from consumers and therefore more sales. Therefore it should be of consideration. Online shopping is a better way to do business to people who cannot be able to reach the premises hence more sales resulting to more profits. Distribution plans and problems. Any distribution plan is mainly factored by aggressiveness of the distributer. A good distribution strategy will eventually yield the best yield, since it is a major problem hence aggressiveness. References Afuah, A. (2004). Business models: A strategic management approach? New York, NY: McGraw-Hill NA. Gentian spa-financial strategic analysis review. Market research. Com. http://www.marketresearch.com/product/display.asp?productid=2817772 Berry, T., and Wilson, D. (2000). On target, the book on marketing plans: how to develop and Implement a successful marketing plan. Eugene, OR: Palo Alto Software, Inc. Read More