Spa Industry in the USA - Essay Example

Marketing Plan of Spa – Missing Parts Recommendations The competition in the U.S. Spa industry is very high therefore, to attract the target market, more direct promotional tools will be used To maintain product uniqueness, innovation services will be offered In addition to the product uniqueness the atmosphere of Spa will play a major role to improve the experience of the customers, therefore entertaining atmosphere and relaxing environment are very important for Generic Strategies The marketing strategy of the proposed business will be the differentiation focus strategy because Vigor will target narrow market by fulfilling their demand and offering product uniqueness.

AdvantageTarget ScopeLow cost product uniquenessBroad (Industry-wide)Cost leadership strategyDifferentiation strategyNarrow (Market segment) Low-cost Focus strategyDifferentiation focus strategyPromotion Promotional tools will be used to position the company as a quality provider of Spa services. Moreover, because of the changing trends in the industry, the target market will be also attracted through the positioning of the Spa as ‘an entertaining and relaxing place’. Organizational PlanIn the beginning employee training will not be possible and the company’s focus will be to hire only experienced and trained staff.

However, at later stages more specialized training will be given to employees. For staffing purposes, the job descriptions will be developed and the ads will be given on the website and in the printed media. Proper interviews and tests will be conducted to hire the staff. Legal Plan Vigor will be created as a partnership among the three partners. The Partnership Agreement will be assigned by the three partners and they will have unlimited liability which means that in the case of the dissolution of the company, the personal assets of the partners can be also claimed by the creditors.

No corporate taxes will be imposed and each partner will be liable to pay his personal tax at the rate of tax applicable to him individually. In the future, if the company expands and we plan to establish more branches of the Spa, then we may plan to convert our legal structure into a limited partnership or corporation. Insurance Plan At Vigor, strong contacts will be established with healthcare providers. In collaboration with health insurance companies, Vigor will offer insured services to its customers.

Most of the people coming to Spas and taking massage therapies are unaware that when a physician prescribes massage therapy then it is usually paid for by insurance. If insurance will not cover the expense of clients, the difference will be charged to the client. To handle insurance coverage, management software will be purchased. Vigor will also maintain a list of acceptable insurance companies and their clients will be handled. Financial Plan Sources of funds: The three partners will contribute equally to start the partnership.

Each partner will contribute $200,000 and no additional payment will be required. Quality Program To ensure quality services, high-quality products of good brands will be used. While servicing the customers their needs and wants will be understood. Moreover, regular customer feedback will be also taken to ensure high service quality.