The Product Package in Spa Called Botonia - Essay Example

Introduction The product package will belong to a spa called 'Botonia'. The organisation is a Spa located in London. It will be situated in Eltham which happens to be thirty minutes away from central London. The package was designed for the hard working residents of London who may need to indulge in a little luxury but have minimal time to do so. The Spa has met this need by bringing luxury close to home. Some of the services that are offered in the Spa include nutritious foods and drink offerings, yoga classes, Turkish Sauna, Yoga massage, hot stones therapy, reflexology, deep tissue massage and holistic message. The package will be a special offer on weekends where clients can get a 2-day body and mind treatment. On the first day, clients will receive transport through a luxurious, state-of-the-art limousine. Upon arrival, customers will undergo detoxifying treatment. Thereafter, they will be given healthy and nutritional drinks. All these activities will culminate into a luxurious and exquisite overnight stay. On the second day, customers get energising treatment, smoothing and transport back to their homes. The product package targets affluent members of society who work for long hours under high pressure environments. The product is supposed to bring comfort closer to them thus eliminating the need for taking long hour journeys to access this service. The package will cost approximately 350 pounds. Organisational details The organisation is essentially a combination of various tourist attraction packages. (Barlon, 2006) It is basically a leisure spot with a calm ambience and serene environment. Its services fall under the following categories; Combining health and beauty; the organisation deals with important but neglected aspects of beauty. By offering people nutritional and healthy foods and drinks, they will be revitalising their body and mind. Detoxifying treatment is also a method that will accentuate one's beauty. Clients are given vegetables and fruits strictly. When the body gets rid of all toxic elements, then it is able to function normally. This positive reaction is displayed externally through glowing skin and a flat tummy. Therapy centres; the purpose of services offered under this section of the organisation is to make clients unwind and relax. It is a sort of past time activity. Other benefits that can be linked to this service include improved health since most of the activities will boost blood flow to the all parts of the body. Relaxation is quite important for people working in high stress environments. When the body is subjected to too much stress, it may react negatively. Some of the ways it could do this include increased blood pressure and overworking of the heart. Therapy provides a natural but sure way to ensure that one's body system revitalises and that they are able to function properly. Activities that fall under this section include hot stones therapy, reflexology and deep tissue message. Psychological remedies; the organisation also offers ways in which the mind can work better. The main service under this category is through yoga classes. Yoga helps clients get in touch with their spiritual side and also helps them to put focus back into their lives. This is administered through a yoga expert who conducts classes for interested parties. Idea generation Many Londoners rarely have time to travel outside the country. But this does not mean that they do not need to indulge in a little luxury. Most of them have the financial ability but may not have the time. (Barney, 1991) This package is meant to encourage local tourism. There is a need to make a package especially for locals. Tourism does not necessarily have to target people from other parts of the world. It can be tailored to suite local needs. A spa was specifically chosen for this business venture because many people in the region are getting more and more familiar with the product offering. It was seen that there are many hard working people in London. But there is a lot of hustle and bustle in the city. Some people may desire to get away from all the noise and pressure of the city. This was why a spa was chosen because it is an oasis of calm in a desert of noise and crowds. Every single day, some people may feel the urge to take some time out and replenish their lost energies; what other perfect way is there to do this other than through a Spa. All the extra services that come on the side are intended on appealing to the expensive tastes of the affluent. It is a well known fact that such members of society feel the need to pampered and treated exclusively. This was why the idea of limousine was chosen. Suites within the Spa premises will also be equally luxurious to appeal to the fine tastes of the affluent. The organisation will be providing accommodation implying that there will be rooms which clients can select. Because the place is meant for effluent members of society, it will have executive suites designed in a different manner so that customers can take their pick. Once customers get inside their rooms, they will have a beautiful view of the serene atmosphere surrounding them. The organisation will need to add some features while customers enjoy the services on offer. Some of these include extra music in the background when enjoying a massage or a sauna treatment. It will also include mini TV sets in rooms that are not therapeutic in nature for example in the food and drinks sections. Screening of ideas A market research was conducted among members of the London population. Fist of all, a survey was done of all the leisure activities present in the City. It was found that there are beauty treatments, health and beauty centres, therapy centres, Yoga centres, sports centres, Men's grooming, manicures, pedicures, Spas, Indoor sports and gym and fitness centres. All these activities were suitable for both locals and tourists alike. On interviewing a certain sample and looking at the market reports around the City, it was found that Indoor sports and gyms are not as lucrative as they were a while back. There is a saturation of gyms in the area. (Bitner and Booms, 1981) The research also found that these days more and more people are looking for less passive ways to spend their leisure time. Although places like cinemas were common, residents are now looking for more healthy ways of spending their past time. Other types of activities were eliminated from the list of ideas after a specific market was identified. The well-to-do in society can provide a solid market for the product. Their earnings or fortunes are dependable, most of them rarely bargain and businesses can make enormous profits by targeting this group for their products. This was the reason why the idea of a Spa package was chosen. Although it may be an expensive venture at the onset of business, it will bring back a lot of returns as it progresses. This is because one requires minimal amounts of cash to run the business yet there will be a steady inflow of revenue. Concept testing The idea can actually work because it was taken to the public and received a positive response. The concept was taken to senior labourers in the corporate world; most of them held managerial positions. Around ten companies were chosen at random. Most of them were interested in it. The part that caught most people's attention was the weekend package as this is something that no other Spa in London offers. They were delighted by the fact that they would be given free transport to and from their residential areas in a limousine. (Kotler, Philip, Keller and Lane, 2005) Business analysis Possibility of success The idea can make money because this is not the first time a Spa is created in London. There are many Spas in the City but the main difference between this idea and what others have in the market is its special features. Most Spas have not come up with the concept of free transport. Also most of them specialise in one area of service. This idea will be unique in that customers can access most services all under one roof. It was found that most Spas in the City were centred on beauty and health treatment but they would leave out other holistic services like Yoga. Clients were forced to move from one area to another in search of all the services they require. But this particular idea provides everything under one roof so customers do not have to disrupt their sessions to move to another location. Another issue that gives the idea a unique selling point is the fact that customers are spared from using their own transport. The Spa is located slightly off Central London so customers will need some form of transport. Other competitors would normally have left the issue of transport to the discretion of the client. Yet the use of such an approach can be quite taxing since customers will incur extra expenses. Besides this, they may find it inconvenient especially when they lack any other means to get to their destination. The idea will make money because it will be charging a fee of three hundred and fifty pounds for the entire two-day package. Other Spas in London are slightly more costly. For example, one may find that a body treatment costs somewhere between eighty to one hundred and twenty pounds, then one might find that yoga classes go for one hundred and fifty pounds per session. If one adds all the amounts charged by specialised Spa services, one may find that the cost is way beyond what this specific Spa will be charging i.e. three hundred and fifty pounds. (Hotel benchmark, 2002) Possible segments The Spa will attract a variety of clients. One of the segments will be based on age. It will be made up of Spa enthusiasts who simply want to have secluded and serene moments to themselves. This will mostly be the older generation; most of these ones will be over the age of forty. Services tailored for this segment will include holistic and deep tissue massage, secluded saunas and aromatherapy. On the other hand there will be a segment for the younger generation. They will have a common steam bath where a number of people can gather around and interact. This will be a place to get to know each other and groups most likely to be interested in this are the younger generation. Most of them will lie between the ages of twenty five and thirty five. Examples of services that will be included in this category are yoga classes and saunas. The reason why these services fall under this segment will be because both services will be done in an open space where people from all walks of life can interact. Segmentation will also be based on price. (Chekitan and Schultz, 2005) The first category here will include those who want to experience the entire weekend package. Most of the people falling under this category will be those ones paying the three hundred and fifty pounds. Others who may not be able to afford the whole package or who may not have time have the option of selecting single packages. For example, there will be a single Turkish sauna going for forty pounds; there will be yoga classes without any other service on the side going for fifty pounds and a single massage going for thirty pounds. The purpose of segmentation by price is to allow customers to customise the services at the Spa to suit their body needs. Profile of customer The customer will be someone from the corporate world or a highly successful business person. It is also likely that they will be residents of London. However, this does not eliminate the chance of getting some foreigners who may want to see the good things offered in town. Most people who visit Spas are well to do clients. Because of their lifestyle, some of the services offered here will benefit such people. It is also very likely that these customers will establish a long term relationship with the business once they are satisfied with services on offer. They will also spread word around to their colleagues and this may result in substantial benefits to the business. Also, the customers involved will vary in age. Some of them will be slightly younger while others will come from the older generation. Competition Since the product will be targeting local tourists, then competition will emerge from various sectors of the hospitality industry. (Hotel benchmark, 2002)Five star hotels or hotels targeting the affluent will be a source of competition because some of them offer similar services such as sauna, healthy foods and accommodation. The organisation will also face competition from gym centres, day treatment centres and even other Spas. Examples of Companies that offer similar services to this new organisation in London include; BlissLondon located in Slaone Avenue Agua at Sanderson located at Berbers Street Porchester Spa locate at Queensway Nickel Spa located at Convent Garden Botonia will have an edge over all these other Spas because it will provide the most comprehensive package among all the ones listed above. Bliss London is known for its exclusive massages, Nickel Spa offers love handle treatment; this service will also be offered in Botonia's package, Porchester offers deco baths and massages at an affordable price. However, the same thing will be available at the former organisation's package. The only difference is that we will be charging a cheaper price for it. Agua at Sanderson offers sauna treatments; these will be available at Botonia and Bliss London prides itself in the way they give good massages. This will be a skill available at the new organisation. As it can be seen from all the above organisations, most of them specialise in one area. None of them can boast of a comprehensive package like the one available at Botonia. Their prices will also be inferior to the ones offered at Botonia. This is the reason why latter organisation will have an edge over all the others. Organisational ability to carry out the task The organisation will be not need new staff members. Most of them already have papers showing their qualifications in the art of aromatherapy, beauty treatment, yoga and other specialist activities. It will not be necessary to do some scouting on all the available experts. However, there will be need for health and nutrition experts and limousine drivers. Before any new staff members are hired, there will be a need to do a practical interview. Here, a randomly selected client will be subjected to free detoxifying treatment or any other service and then they will be required to give their opinion. If the potential employee receives positive recommendations from customers, then she will be hired. There are very may qualified health experts in London who may not be employed. So the organisation will not have a tough time finding them. Advertisements for the vacancies will be placed in newspapers and short listed candidates will be contacted. (Kasper and Gabbott, 2006) The organisation has the necessary experience to venture into this sector because it is well versed with the services synonymous with tourism. It has also understood the hospitality industry thoroughly. Besides this, the organisation is well aware of good customer service practices and will implement this during service provision. It realises the importance of making the client satisfied and comfortable. It also has all the business skills necessary to ensure success while running such a business. Brand positioning Botonia will be the most important package offered by the Company. Because of its exceptional character traits, it is quite likely to succeed. However, if it does not, there will be other smaller packages offered independently that will bring in revenue to the Company. (Doyle, 2000) Botonia will bring in 350 pounds per head every week. Supposing that the Spa receives about thirty clients per week, they will be able to bring in 10,500 pounds per week. This implies that the monthly revenue from that product package specifically will be 48, 000 pounds. Therefore, there will be an annual income of 504,000 ponds. If the initial investment into the business is roughly one million pounds, then chances are that profits will start flowing in the second year. It should be noted that although revenue will exceed initial expenditure, there will be some running expenses that need to be included in the budget. This is why the business will be stable after one year. The initial investment will include buildings improvements (detoxifying rooms, secluded saunas). Operating cost will include payments to workers, creams, electricity and others. Plan for delivery The Place will be located at Eltham. The reason why this particular location was chosen was because it is quite near Central London which is the place where most professionals are found. Therefore, people will leave their places of work and access the Spa as soon as possible. Besides, free transport will make things even easier for them. Botonia can be made successful by constantly educating staff members on the need to treat customers well. Staff members will also be required to respond to clients' needs as soon a possible. Once one of the drivers receives a call to bring in some clients, then they will be expected to respond as quickly as possible. In this business the customer will always come first. Distribution in this case will refer to the transportation of clients to the business premises. Because we are offering a service, clients need to be at the point of delivery. In this case, there will be no commodity carried to the client. Test marketing This will be done by selecting the same people who were asked earlier about their opinion concerning the Spa. The Company will choose five people from five different organisations. It will pick them up using their free transportation. Thereafter, it will take them to the Spa and give them the 2-day package. Afterwards, it will sample their opinions. However, the five different people will not come in at the same time to minimise chances of influencing one another's opinion. (Chekitan and Schultz, 2005) Launch The product package will be launched in Central London with the help of a well known celebrity who will endorse the product. It will be done in a top class hotel where various corporate professionals will be located. There will be a lot of media attention surrounding the product so that people are aware about it. The launch will be covered in magazines and newspapers alike. However, the organisation may not use television as this may not captivate the intended audience. The purpose of the launch is to highlight the availability of this package, contents of the package and where to find the Spa service. On top of this, the launch will appeal to the right target audience as magazines publishing this article will most likely be high profile magazines. It is very likely that the launch will be done as soon as the business renovations are completed. This may occur during the summer season. This will be an appropriate time because the warm season can be quite strenuous on the body thus necessitating a visit to the Spa. Price, Promotion and advertisement The package will most likely cost three hundred and fifty pounds. However, if the circumstances on the ground dictate a change in price then it will be adjusted accordingly. Because the product will be new in the market, the organisation will use a market entry strategy. This is when the price of a new product is lowered so as to attract clients. Then after the package has solid and dependable clients, it will increase the price so as to maximise on profits. Promotion will incorporate two categories advertisement additional features (Cannon, 1986) The Company will offer some free services whenever a client comes back for three consecutive weekends. Women will receive free eye brow tweezing while men will receive any service in male grooming that costs less than thirty pounds. Such additional features will encourage customers to come back to the Spa for more. Advertisement will be done through the internet where the product package will be described in full details on the Company website. Advertisements will also be placed on Google and other well known search engines. There will be some pictures of the Spa showing the Turkish Sauna and some people doing yoga. There will also be some colourful pictures of the surrounding atmosphere to capture people's imagination. The Company will display these very pictures in selective magazines and newspapers. The purpose of the advertisements will be to highlight the public about availability of the service, where to get it and the benefits that come from the service. Conclusion Botonia' package will be one that stands out from all the rest. It has a comprehensive package and will not require too much resource input. Besides this, the product will be quite affordable compared to other offerings in the market. Because of these traits, the product will do well in the market. (Barney, 1991) References: Barlon, K. (2006): The concept of the marketing mix Presentation on marketing management, Volt 1, Oulu University -Finland Barney, J. B. (1991): Firm Resources and Sustained Competitive Advantage, Journal of Management, 1 (January), Bitner, J. and Booms, B. (1981): Marketing strategies and organizational structures for service firms, in Donnelly, J. and George, W. Marketing, American Marketing Association, Chicago. Cannon, T. (1986): Basic marketing, principles and practice, 2nd edition, Holt, Rinehart and Winston, New York Chekitan S. D and Schultz, D. E (2005): In the Mix: A Customer-Focused Approach Can Bring the Current Marketing Mix into the 21st Century, Marketing Management v.14. Doyle, P. (2000): Value based marketing, Wiley, Chichester. Hotel benchmark (2002): Budget hotel Proving Resilient retrieved from; www.hotelbenchmark.com, accessed on 07/03/08 Kasper, H. V and Gabbott, M. (2006): Services Marketing Management: A strategic perspective'2nd edition, John Wiley and Sons Kotler, Philip, Keller and Lane (2005): Marketing Management, Prentice Hall Michael J. B (1985): Marketing strategy and management, Macmillan publishers' Ltd, London. Read More