Tillies Day Spa High-End Destination - Term Paper Example

? Tillie’s Day Spa Marketing Plan for Marketing Vision Tillie’s Day Spa is a high-end destination that offers a comprehensive spa experience. Itoffers an unmatched experience with chic and comfortable rooms that are equipped with cutting edge technology for services such as pedicure, manicure, foot massage and therapy, facials, body massage and much more. Goals CEO's Goals: Determine the optimal number of employees and payroll for executives Devote at least 30% of the budget to marketing activities Marketing Goals: Achieve $35,000 in sales four months after opening by offering up to15 services per day Have a customer return rate of up to 85% by the end of the first year Expand the number of services offered to 45 by the end of the first year Provide services that are customized as per the client’s requirements Strategic Goals: Establish as a high-end, profitable beach business for top quality, customized spa facilities in Virginia Tactical Goals: Establish exclusive contract with travel agents to attract tourists Provide exclusive membership to clients to all beach events including beach parties and theme nights Establish presence on social media including Twitter and Facebook Establish an employee training program by arranging workshops with foreign trainers Implement an electronic customer feedback system Establish employee rewards and discount program after one year of service Purpose Tillie’s Day Spa seeks to offer a wide-range of tailor-made spa services by foreign qualified and certified professionals for all generations, primarily those between 25-45 years of age. Marketing efforts shall be aimed at providing a glamorous decor with special lighting, textiles and music in the spa tents/rooms along with aroma therapies with scented, exotic candles and 100% natural lotions and oils. Picture Tillie’s Day Spa will attract its clients through social media, hotel referrals as well as wedding planners to try its services. Upon reaching the venue the customer is welcomed by female dancers from around the world with specific days allocated to each type of dance. For instance, African dance will be held on Mondays whereas, belly dancing on Saturdays. The customer chooses with room to enjoy the spa services in, depending on his/her preferences and mood. Upon leaving with a look as fresh as a flower the customer returns and brings along her co-workers and neighbors for company as well as earning the reward points that will be added to her loyalty card upon the number of referrals she makes. This way the customer base expands as the elites and executive women continue to pour in to enjoy this high-end, sophisticated ambience. Staff shall greet these women with smiling faces and a glass of their favorite cocktail drink and escort them to their rooms. Special attention shall be paid to cleanliness. However, the staff shall not be dressed in uniform but as per the respective themes that will vary on a daily basis. These themes include African, American, Thai, Arabian and various others. Gap Dashboard The Gap Dashboard shall be used to address primary goals that will form the basis of marketing, tactical, strategic and personal decisions. Some tactical goals, however, shall not be tracked via this dashboard but through the Milestones chart. Key marketing metrics shall be accounted for by the Gap Dashboard every 3 months during the first year and bi-annually thereafter. Hence, actual results shall be compared against these goals to observe any variances. Marketing goals primarily include revenue and sales maximization of Tillie’s Day Spa along with the attainment of high customer return rate in a period of 3 years. The strategic goal of becoming a top quality day spa in Virginia shall be measured by attestation of ASQ Certification. Personal goals shall pertain to the increased involvement of the CEO in marketing activities, most importantly establishing PR with hotels and high-end restaurants. The following tactical goals shall be measured quantitatively: Ideal Customer Day Spas usually have a narrow customer base including working women who want to relax after a day’s hard work or socialize with their friends/neighbors during weekends. Tillie’s Day Spa caters to this need to socialize and enjoy a comfortable day by offering a luxurious, exotic experience with the highest quality and 100% natural products used for the services provided. Foreign trained professionals know their way; therefore, customers do not have to worry regarding the quality of staff. Market Description Tillie’s Day Spa seeks to cater to customers with the following profile: Women and other young adults primarily between 25-45 years Household income above $25,000 Working women Visitors staying in high-end hotels Located around Virginia Beach Seek exotic multi-cultural experience (including Thai, Malay, American, African and others) Enjoy socializing over weekends Families coming to enjoy the beach during weekends/vacations Remarkable Difference Tillie’s Day Spa first opened their doors to customers in 2000. Tillie’s Day Spa has been developed as the one-stop Spa destination for customers who look for massage with pure oils, a well-trained staff and a decor that shall set standards for others in this field. Whether you are opting for a social outing with your co-workers or taking out precious time to pamper yourself, Tillie’s Day Spa is the right place. Differentiators There is a myriad of spas offering massages, oil treatments, pedicures, manicures and various other services in every nook and corner of the city. This does not make them a one-stop destination. Tillie’s Day Spa’s motto of “Feel beautiful” and “Pamper your soul” is something which is reflected in our devotion to the highest level of customer service. We want our customers to set their minds free from the ‘results’ that the spa treatment would bring and indulge in luxury as their bodies are pampered with the finest fragrances, oils and lotions from around the world. Furthermore, we shall support community trade in this process by donating 10% of the proceeds every month to underprivileged groups to promote fair trade. Core Strategy Tillie’s Day Spa’s external marketing strategy shall be based on portraying it as a luxurious, ethical and perfectionist brand that provides customized services. Since the products are 100% natural (and therefore cause no damage as opposed to that caused by chemicals and “parabens” in most facial and body treatments) customers may want to return for frequent visits. Desired results include the following: Holding 4 beach events every month Offering a comprehensive retail line consisting of candles, lotions and other treatments Retailing the high-end items at $40-$65 per item with the aim of recovering 150% of costs Achieving a response rate of 70% through marketing communications Achieving a 40% return rate of customer visits within the first year of their first visit Achieving an average per person revenue of $90-$100 per hour Achieving a capacity utilization of approximately 75% by operating at 10 hours per day, 7 days a week Core Branding Elements The primary message is “Pamper your soul, surrender yourself to Tillie’s Day Spa” which is a comprehensive concept that combines facial, body and hair treatments of all sorts. The core elements include: Social media Hotel referrals Discounts by partner travel agents Fundraising Menus Exotic lamps and lighting Advertisements (Print and online) Beach events (parties, club nights, valentine’s special etc.) Product/Service Innovation Tillie’s Day Spa attracts customers by offering an exclusive, peaceful and unique spa experience. Professional customer service, 100% natural products and ethical trade of products differentiates Tillie’s Day Spa from its competitors. Our market can be divided as: Prospects: Any customer that has contacted the company via website or hotel referrals or who has received discount coupons. Customers: At least one visit enjoyed at Tillie’s Day Spa. They’ve shared positive feedback and look forward to visiting us again. Premium Customers: They visit us on a regular basis; that is, at least 4 times a month and have referred to at least 2 customers in the past four months. Price Rationale Tillie’s Day Spa’s services shall be priced at a higher rate than the market average. Whereas spas in lower-income areas charge as little $30-40 per hour, our Spa would offer premium priced services ranging between $90-100 per hour. The premium price justifies the fact that the products are 100% pure and free from harmful “parabens” and are being ethically traded. A standard practice would be to offer 10% discount on the customer’s first visit with subsequent price promotions offered through print and social media. Facebook fans will receive an exclusive 20% discount on all visits for up to 1 month from the customer’s first visit. Loyalty card will be provided to regular and premium customers which includes reward points upon every visit. Marketing Materials Although a printed press kit shall not be used, it can be made on the basis of the items available on Tillie’s Day Spa’s Facebook page and website. This shall serve as a press kit during relationship building events with organizations (hotels and travel agents in this case) that provide referrals. It is important to note that this press kit shall not be sent to customers but shall be sent to organizations. The press/marketing kit will include: Case statement – This shall address the need for socializing on the beach spa Difference summary – This shall address the beach events along with the different themes (Thai, Malay, Arabian, African, American and others) for each day or week Menu of services along with their prices Description of previous beach events with the associated customer testimonials List of upcoming beach events General feedback of customers FAQs - with information on timings, directions and parking. Selection of press articles Web Plan The website of Tillie’s Day Spa will serve the following purposes: Provide information with an eye towards attracting customers to try out services Inform customers about the beach events, prices, timings and other information to allow customers to plan their visits accordingly Prospect customers shall be enticed by providing photographs of the exotic, peaceful and luxurious environment and decor of the spa. A web “application or app” of a 360 degree virtual tour shall be provided to engage customers and give them an idea of what their visit shall be like. A mobile app shall also be developed that shall allow customers to book their visits and take appointments in advance as they are on the move. As for existing customers, they shall be able to plan and manage their visits online. The interface shall allow for customers to customize what their visits would be like along with the estimated price and time those services shall require. Social Media Plan Regular “tweets” via Twitter shall enable customers to stay abreast with all promotions, even through alerts on their mobile phones. Pictures of beach events shall be uploaded on Facebook and paid sponsorship shall enable the page to be advertised on Facebook to gain greater fans. User comments shall display important information pertaining to menu and prices of the spa. The company website shall redirect customers to the Facebook page where “fans” will get a discount of 20% discount on all visits for up to 1 month from the customer’s first visit. Lead Generation Plan Tillie’s Day Spa will generate leads through the following ways: Advertising: Fliers- these shall include the website and Facebook page details along with contact details for booking appointments. Fliers shall be distributed along with bills of high-end restaurants or night clubs. Print advertising including newspapers- these shall include seasonal promotions such as those related to Valentine’s Day, Mother’s Day, Prom nights, Halloween and New Year’s Eve. Text messages through local mobile service providers- these shall feature an invitation regarding a grand opening celebration following the launch of the Spa. Referrals: Customer referrals Hotel referrals Travel agent referrals Advertising Medium Print Northern Virginia Magazine Northern Virginia Daily Style Weekly Service Providers for Text messages Cricket Sprint AT&T T-Mobile Verizon Wireless Loyalty Product/Service Offerings Tillie’s Day Spa’s beach events shall be focused primarily on women who aim to socialize with their co-workers, friends or neighbors, thereby replacing the “kitty parties”. Each event shall incorporate activities based on customer requests, including mini competitions such as the “most groomed woman” and “best dressed woman” of the night. Winners would get complimentary products wrapped in a basket such as scented candles, lotions, body mists etc. These events would be free of cost to those customers who bring a companion (non-member) along whereas a fee of $30 shall be charged to those who do not. Accommodations shall be made strictly on a first-come-first-served basis. Marketing Calendar Daily marketing activities include the following: Devote at least 5 hours a week to photo shoots of the Spa including the pre-launch photos. Meet for 1 hour to review customer feedback at the end of each day Devote 2 hours each day to write pitch articles for posting on the Facebook page Devote 1 day per week to plan for non-profit/fund raising events to be held once each month The following marketing activities have to be undertaken on a monthly basis for a total of 30 hours devoted to the marketing theme on a monthly basis. This breakdown shall be prepared at least 2 weeks prior to the 1st of the next month. Critical Numbers The critical numbers for Tillie’s Day Spa shall be tracked via salesforce.com which is an online database used for tracking leads, rate of referrals etc. Furthermore, data from POS system at the billing counter of the Spa shall be seamlessly transferred to CRM system. This shall enable the company monitor key marketing metrics along with customer demographics which shall enable more focused marketing campaigns. A weekly report will be generated which shall be used as feedback during weekly and monthly marketing meetings. Sales Forecast The price of services shall increase by 7% on a monthly basis owing to the cost of advertising and PR activity along with initial setup costs. The price per hour shall increase by 5% whereas the price of retail items shall increase by 2% each month. The retail line is expected to be bought by customers that visit regularly. Discount to first-time visitors along with Facebook fans has been accounted for in the cost of sales. However, the primary costs are those associated with salaries of professionals as well as retail items. Marketing Expense Budget A 5% annual increase shall be seen in the regular marketing expenses. This does not include the category of “Service Processes” which is bound to increase with increase in clientele. The total marketing budget will have a three-year average of $120,000 as shown in the monthly and annual graphs below: Key Marketing Metrics Leads, including referrals, positive word of mouth from customers (testimonials) are expected to be major drivers of growth. Premium clients shall grow consistently as the business grows. Prospect clients shall qualify as leads once they contact the company or receive coupons. Lead conversions are expected to increase exponentially over time. SWOT Strengths One of the biggest strengths of this business is its USP of providing treatment of various sorts with 100% natural, “Paraben” and chemical free products. Furthermore, the products are obtained through fair trade which means that the business is socially responsible and cares for the community. This would enhance the goodwill and reputation of the business and allow it to get a premium price. Furthermore, the upper class will be targeted which is less responsive to recessions or any fall in income. Hence, the business’s survival shall be guaranteed during tough economic times as well. Furthermore, the Spa shall not just target occasions; that is, it shall not simply be occasion-oriented but a lifestyle choice. It shall offer a wide range of services (including manicure, pedicure, facials, massage and various others) thereby offering a complete experience as opposed to one-off services. Weaknesses The premium price could make the services less affordable to many customers, thereby narrowing the customer base. This could mean over dependence on a narrow customer base which mainly comprises of working women. Furthermore, the quality of certification or education does not guarantee best results. Some individuals are more talented “naturally” compared to others. Hence, hiring employees with the right skill set and attitude is a tough job and could take a few disappointed customers initially before things get right. It would be difficult to manage the “hygiene” level that the staff maintains because, in this case, the personal hygiene of staff will translate into hygienic contact with customers. Opportunities Since tourists will get to try the services of this Spa, it could open up venues for international expansion in the long term preferably 5-10 years depending on the demographics of the tourists. Furthermore, the business could tie up with popular high-end hotels in the locality in future to expand its operations. Also, the business can hire brand ambassadors such as famous local celebrities to promote the brand once the business generates sufficient funds for this. Threats Since the Spa business is saturated; therefore, competition is expected to lower sales as the concept is replicable to a great extent. Already established brands that have access to greater resources and that enjoy high brand equity could give a tough time to the business in the long run. Furthermore, Spas from Bangkok or other countries could set up here and offer much lower rates, thereby attracting a large customer base and making customers switch from this spa to their spa. Read More