The Marketing of Heavens Beauty Spa - Essay Example

Heaven’s Beauty Spa Abstract The study tackles the marketing plans and proposal of Heaven’s Beauty Spa. The company aims to provide a luxurious service at affordable prices. The establishment targets various sets of markets---based on the psychographic segmentation. The company has packages for single ladies, for men, and special ideas for teens and couples. The study also gives attention to the competitors, their market, strategies and anticipated courses of actions. In addition, it explores the competitive strategies that the organization intends to take to acquire its own market share. Marketing Plan 3 Executive Summary This project introduces the Heaven’s Beauty Spa, an establishment which will be providing lavish spa services at practical prices. The company will be located at Hackensack, New Jersey, which has a daily interchange of about 60,000 vehicles. (The Importance of Skin Care, 24 Oct. 2008), ‘While beauty may only be skin deep, people have placed an importance on looking young and healthy. Looking good seems to do wonders for confidence and self-esteem. But as the saying goes, beauty is more than skin deep. Skin is important for so many other reasons. It acts as a barrier between the organs and the outside world.’ Heaven’s Beauty Spa provides the cheaper opportunity for people to have their skins professionally treated. The company will be offering seven (7) types of massages, including the Heaven’s Beauty Spa signature massage, foot and hand paraffin, foot and hand spas, body scrubs, and facial services. The major goal of the establishment---and its primary key to capture the attention of its market---is its quality service at reasonable prices. Marketing Plan 4 There are incalculable numbers of spa services around New Jersey. Therefore, it is undeniable that Heaven’s Beauty Spa will be facing numerous competitors. The recognition and intensified examination of its competitors, as well as the needs of the market, however, can assist the Heaven’s Beauty Spa to formulate pricing policies and strategies to maximize its market share. This also tackles the promotional tools which will be utilized by Heaven’s Beauty Spa to communicate to its market. The dealings with fitness centers, sports clubs and travel agencies are also part of the company plan to perk up the market allocation. Mission. The company’s major purpose is to be one of the top leisure establishments in New Jersey. It is set to be able to penetrate the middle class and class A markets. The establishment also aims to focus on providing first-rate services at inexpensive rates. Why pay more, when they can have it for less? The Heaven’s Beauty Spa, with its incredible location, aspires to give to the public exceptional treatments and therapies in a sensitive setting. Marketing Plan 5 Product Description Heaven’s Beauty Spa will be introducing to the market a different picture of life’s simple pleasures. The company will be giving a new depiction of what affordable relaxation truly is. It will give its customer a chance to experience excellent services at reasonable prices. The organization believes that people do not truly need to spend much to have a feel of luxurious spa treatment. With creativity and imagination, Heaven’s Beauty Spa will give people the option to spend their money on more valuable recreation ideas. Heaven’s Beauty Spa will offer facial cares, encouraging the public to seek trained personnel to take care of their skins. The company will provide wrinkle treatments with the use of skin rejuvenating creams, facial skin or pore tightening, facial treatments which include blackheads and whiteheads removal, utilizing facial suction and facial massage which will gently lift the facial muscles. The company will also provide various types of body massages. As one of the most popular forms of massage in the United States, Heaven’s Beauty Spa will let its clients---especially those who prefer the gentle or soft sort of massage---to try its own version of the Swedish massage. Other types of massages which will be provided by the company would be: the chakra massage, Shiatsu, Acupressure massage, Aromatherapy, Thai Massage, and the Marketing Plan 6 Heaven’s Beauty Spa massage which is a combination of trigger point massage, and zero balancing therapy. The Heaven’s Beauty Spa massage will be performed by two therapists per client, each pace is choreographed to achieve a soothing result to the weary customer. Body scrubs, as well as hand and foot spas, hand and foot paraffin---are also part of the company proposal. The business will also have manicure and pedicure services. Heaven’s Beauty Spa will also have packages for customers to choose from. Combinations of various types of massages, facial services and foot spas can be combined for specific sets of prices. The company will also provide packages for couples, which will be a fun treat for numerous pairs to enjoy the therapies or massages great with discounts. The Spa business is a booming industry in New Jersey. The need to cope to the strenuous world has brought about the yearning for the type of business. There are countless establishments offering holistic therapies and different types of treatments. Some even provide house calls and office services to make their business more personal. Indeed, it was once considered as a form of indulgence, but it can now be considered as inevitability. Marketing Plan 7 Target Market The company considered market segmentation (demographic and psychographic) to clearly identify the viability of the business: (Segmenting the Spa Market, 13 April 2004) ‘Demographic Segmentation. ‘Demographics are the fundamental characteristics used to assess market segments and measure psycho-graphics. Whereas geographic segmentation asks “where are the customers?” demographic and psycho-graphic segmentation ask “who are the customers?”   ELEMENTS OF DEMOGRAPHIC SEGMENTATION 1. Age 2. Sex 3. Family size and status 4. Income education and occupation 5. Religion or culture 6. Social class   PSYCHOGRAPHIC SEGMENTATION   (Segmenting the Spa Market, 13 April 2004) ‘Psycho-graphic segmentation creates a complete profile of your market’s values, attitudes, product purchase behaviors and lifestyle preferences. For example: “Women between ages 35-45 with combined income over $50,000 is now extended to “Women between ages 35- Marketing Plan 8 45 with combined income over $50,000 who purchase health products and beauty magazines, and organic food.’   ELEMENTS OF PSYCHOGRAPHIC 1. life style/attitudes 2. personality 3.purchase habits benefits sought 4. usage rate and loyalty 5. price sensitivity  (“elastic” or “inelastic”)   The Spa business has a wider-ranging target market, in comparison to other businesses. The Heaven’s Beauty Spa is aimed to provide services to single women--- these individuals are the ones who have the capacity to pay for, and the need for the spa. Singles tend to splurge on pampering themselves since they do not have children to take care of. Single men are also eyed as the company’s major market. Men, in this day and age, are now more open and more conscious of how they look. Gone are the days when men were embarrassed to have their facial treatments. Men can now be as vain as women. Heaven’s Beauty Spa targets middle class personalities, aspiring to help these people to enjoy the rewards of their hard works with the prices they can truly afford. Major problem with spa companies and other leisure services is that the main focus is the high end market, that Marketing Plan 9 despite its efforts to come up with affordable prices, the company simply cannot make it. The overhead expenses are just too high to cut down the cost of the services. Or some companies give low prices, brought together with poor services. In line with this, Heaven’s Beauty Spa intends to impart something that the middle class people can pay for---which, even high end customers can enjoy. Heaven’s Beauty Spa is directed to target the couples, as well as women in their late forty’s and fifty’s who should still be conscious of their fitness and looks. The company’s goal is to make mature women realize that it today is the best time to pamper themselves. The market segmentation helps the establishment in clearly identifying the customers, their differences, as well as the variation on their needs and preferences. However, Heaven’s Beauty Spa also wishes to explore the possibility of making a teen-friendly establishment, wherein a section or display room for teens will be provided, allowing them to choose colorful and fancy nail polish, adorable designs suitable for their age. Creams fit for their skins will also be made available, making certain that the young misses will enjoy the sweet aroma of the blends of different scents of fruits and flowers. Marketing Plan 10 Teens are often taken for granted in spa salons and other beauty establishments. Most beauty shops give focus on middle ages, believing that they are the ones who badly need the services. However, it is always better to start early. Prevention is always best. Marketing Plan 11 Competitive Strategies The best tactic that Heaven’s Beauty Spa will be utilizing not just to keep up to its challengers---but also to be ahead of its competitors---is to find ways to be able to offer excellent services at lower prices. The company is responsive to the fact that there are a great number of contenders when it comes to spa services. The realization of the fact that the struggle is stiff only makes the establishment attempt harder and to do better. Dieci Spa is a lifestyle spa that also offers health and beauty rejuvenation. (Dieci Spa, n.d.) ‘Dedicated to total rejuvenation, the spa at dieci is the perfect escape from everyday stress. With a spa menu that offers 14 facial treatments, 11 massages, 8 body treatments, as well as, 3 hydrotherapy tub therapies; clients are able to choose from a variety of services. Several spa packages are available for those who wish to spend a few hours or a full day of beauty and wellness. The day spa at dieci is the ultimate Italian spa experience without leaving New Jersey.’ The company may be considered as a close competitor, since its charges are also not as high as other spa companies. Therefore, it can be concluded that Dieci also aims to the middle class market. The establishment has reached out to its target market through its website, which, potential customers can easily access and visit. The website is consistently arranged; sections are meticulously divided, providing easy entrée and pleasurable browsing of services. Marketing Plan 12 Another company which may be deemed as a competitor is the ‘The Fountain Spa’. The company does not have a very impressive website, yet it is more distinct when it comes to its customers. Menu of services are specified according to the target market. Items are titled as ‘Men’s Spa’, ‘For Couples’, ‘Facials for Men and Women’, ‘Teen Spa’---which makes the menu more precise, and which can actually be appreciated by the clients. However, The Fountain Spa does not seem to give much focus on website marketing. The pages do no have much photos, descriptions are not as elaborated as necessary, the spa information even gives a strict impression. On the other hand, the company evidently has excellent services to offer. The competitors---evidently have successfully reached out to the target market. Corresponding to the stiff competition, Heaven’s beauty spa is set to intensify its advertising and promotions, which includes flyers, billboards, magazines and radio commercials. The company will also put up its website to make certain that its market will be able to have an easy access and that there will be a higher probability to be examined, and possibly to be considered by the prospective customers. Marketing Plan 13 It is expected that competitors will also try to lower their prices as a competitor give his services at lower costs. Most spa companies cannot easily drop their prices, for numbers of reasons. Spas are service oriented companies---its main product is its people. The labor cost cannot possibly be cut down, instantly, for a long period of time. The competitors, who may be paying their people the minimum wage, plus overhead costs---will find it hard to reduce their prices for a long time. Heaven’s Beauty Spa can give lower costs for it will not be spending as much as the competitors are consuming. The company, having its own place at the heart of the city, with an estimate of 60,000 cars daily, does not need to lease a place elsewhere. The organization has recognized that there is a huge difference between an expensive spa service and the one that is fairly priced. The reason is that to be able to provide excellent service, companies need to employ highly trained professionals and lease strategically located comfortable spaces. The edge of Heaven’s Beauty Spa is that it has creatively refurbished its place without having to spend too much; it can have its own website without the need of hiring experts for updates and contents; it has its own space, lease fees are not part of monthly expenditures. With the ability to offer lower sets of prices, while giving the same or even better services---the company believes---can truly arrest the interest of the market. Marketing Plan 14 Pricing Heaven’s Beauty Spa has taken into consideration several pricing strategies: (Pricing Strategies, n.d.) ‘There are many ways to price a product:’ Penetration Pricing. The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. Economy Pricing. This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Product Bundle Pricing. Here, sellers combine several products in the same package. The company has decided to use the economy pricing and product bundle pricing. The company expenses, including the renovations, website, maintenance, marketing and other expenditures are maintained at lesser amount to be able to present an economical outlay to the customers. The estimated company expenses are as follows: (What does Fixed Cost Mean, n.d.) ‘Fixed Cost: A cost that remains constant, regardless of any change in a company's activity.’ Marketing Plan 15 The company fixed cost would be the Labor Cost and the Taxes. The Heaven’s Beauty Spa will not have a monthly rent expense, since the owner has its own place in the business district---which will greatly help in minimizing the company expenses. (Variable Costs, n.d.), ‘Variable costs are corporate expenses that vary in direct proportion to the quantity of output. Unlike fixed costs, which remain constant regardless of output, variable costs are a direct function of production volume, rising whenever production expands and falling whenever it contracts.’ Variable Costs: Utilities: Facial Creams Hand Creams Foot Scrubs Body Scrubs Body Creams Scented Oil Candles Other Supplies Suggested Price List: Facial: Wrinkle Treatment $80 Pore Tightening Treatment $75 Marketing Plan 16 Face Rejuvenation with Vit. A, C, & E $75 Facial Deep Cleansing with Massage $50 Massage: Swedish Massage $50 Chakra $110 Shiatsu $85 Acupressure $75 Aromatherapy $75 Thai Massage $70 Signature Massage $150 Hand Spa $25 Hand Paraffin $12 Manicure $12 Foot Spa $35 Foot Paraffin $18 Pedicure $18 Whole Body Scrub $70 Back Scrub $50 Legs Scrub $50 Mud Scrub $60 Marketing Plan 17 The prices were made based on the estimated labor costs and approximation of materials, which include creams, candles and other items that are indispensable to attain a relaxing and soothing experience. The company has also taken into account the marketing or advertising expenses incurred. However, the marketing costs cannot be possibly immediately placed on the prices of the services being offered, since the benefits of marketing will also be taking effect for several months, therefore, the expenses must be apportioned to the numbers of months of the advertising. With 6,000 cars that pass across the street plus the foot traffic per day, the company is convinced that it can have at least 2,000 customers. With this figure, Heaven’s Beauty Spa is certain that it can truly be ahead of its competitors. Marketing Plan 18 Channels of Distribution The Heaven’s Beauty Spa does not provide tangible items to customers, however, the establishment believes that they can increase or maximize the company revenue by coordinating with other businesses which may have the same set of clients or market. The company has created promotional tools which can be distributed to the fitness centers or sports clubs. The company will also be giving away flyers and leaflets to the travel agencies aiming to target the tourists to try the Heavens’ Beauty Spa. The establishment will also be having its magazine advertisements which will be released in leading travel and leisure magazines. The company, being located at the heart of the business district, will be easily accessible to the market. The establishment can be in touch with its potential clients through its strategic setting. The business will also provide list of services for customers, which, of course, can also be verbally elaborated by the staff. Marketing Plan 19 Promotions Samuel, Anthony wrote, ‘Advertising is one of the many marketing tools that are used to attract attention of prospective customers to a business or its products or services. The more effective an advertising campaign, more the customers it draws, and with greater frequency. Advertising is part of the overall marketing strategy of a business, which includes public relations, promotional programs, signage, incentives, newsletters, and word of mouth, among other strategies. The aim of a marketing strategy is to use advertising, along with these other tools, for maximum impact.’ Heaven’s Beauty Spa expects to get a hold of its own market share by openly establishing an image that lets the customers know that the company offers sensible options. The company will be having its own website, the owner and manager, being tech savvy and having the ability to do maintenance, updates, and contents, the company just needs to pay for the web hosting fee, which is approximately $20/year and the web design, which is about $80. The website will have its main sections: ‘The home page’, this is where the products and services are displayed. The menu will also include: ‘About Us’, wherein information or details about the company will be provided,; ‘Contact Us’, which will provide the contact details of the company such as email address, telephone numbers, facsimile numbers; ‘The Services’, this will Marketing Plan 20 meticulously depict the spa services which the company provides; this section will also have its subsections, which will include the menu for each target market. The website will also have a ‘Photo Gallery’ where customers can check out the facilities of the spa. The company will also have packages, combining a variety of treatments and therapies to come up with a more appealing price. The company stands firm with the idea that it needs to be able to carry out methods that will bring about sound charges to its target customers. The ability to bring different services together can actually make its menus more customer-friendly and tempting. The Heaven’s Beauty Spa will also have its radio commercials, deeming that the company has selected the best times to get in touch with its sought out market. The radio commercial will be aired for five months, which result to a company expenditure of $ 24,000.00. The total amount of $ 5,580.00 will be paid by the establishment for the print ad campaign. It will have its back cover page ad in New Jersey Life Magazine and a half-page print ad in Silk Purse Women Magazine. Marketing Plan 21 An outdoor advertising had also been selected as an effective means of capturing the market. Heaven’s Beauty Spa will also be investing $ 30,000.00 for the signage. Ten thousand pieces of flyers or leaflets will also be distributed by the company. A full color tri-fold paper, 11”x17” costs $1,460.00. These marketing means will be distributed to sports gyms and travel agencies to expand the market of Heaven’s Beauty Spa. The company will also have membership promos for its loyal customers. The consumers will get discounts when they accumulate the required points as they frequent the establishment. Marketing Plan 22 Promotional Budget This section particularly explicates the details of marketing tools which will be utilized by the company. The amount, as well as the frequency and the other significant elements of the advertising had also been specified. Radio: The Heaven’s Beauty Spa will be airing its radio commercial at New Jersey 101.5 Fm Radio and WPRB FM. The ad will run 7am everyday, for first two months; 6pm for the third month and 8pm for the fifth month. The company availed the $600 package of 30 second spot for one week. $600 * 2(radio stations) * 20 weeks = $24,000 for 5 months. Print Ad Proposal: One-Half Page Print Ad - $1,905 Back Cover - $3,675 Magazine trim size is 8.375” x 10.875” Colored/Glossy Heaven’s Beauty Spa will be having a one-half page print ad in Silk Purse Women magazine for its May issue. The company will also be having its back cover ad in New Jersey Life magazine for its June edition. The company is expected to pay $ 5,580.00 for its print ad campaign. Billboard: The billboard, to create identity will be an enlarged version of the print ads. Billboard Advertising Cost : $2,500/month Billboard Size : 48’ wide and 14” high. The organization has appreciated the advantages of outdoor advertising. Billboards are seen and noticed by a wider market. The company is determined to have at least two billboards along Hackensack and Englewood for six months. The estimated cost is $30,000.00. Flyers: The cost of 10,000 pieces of leaflets, text-gloss, tri-fold paper is $ 1,460.00. Reference List Dieci Spa, 20 March 2009 from http://diecispa.com/spa.html Pricing Strategies, 21 March 2009, from http://www.marketingteacher.com/Lessons/lesson_pricing.htm Resources for Entrepreneurs. 21 March 2009, from http://www.gaebler.com/Television-Advertising-Costs.htm Samuel, Anthony (18 April 2007), The Critical Importance of Advertising. 20 March 2009 from http://tools.devshed.com/c/a/Website-Advertising/The-Critical-Importance-Of-Advertising/ Segmenting the Spa Market, (13 April 2004). 20 March 2009, http://www.spatrade.com/knowledge/idx/19/072/The_Spa_Consumer/article/ The Importance of Skin Care, (24 Oct. 2008), Morefocus Group, Inc. 21 March 2009 from http://www.mindbodyfocused.com/articles/body/hair-and-skin-care/index.php Variable Costs. 20 March 2009 from http://www.streetauthority.com/terms/v/variable-costs.asp What does Fixed Costs Mean? 20 March 2009, from http://www.investopedia.com/terms/f/fixedcost.asp Read More