SPA Centers Help to Relieve People's Stress and Health Conditions - Research Paper Example

INDUSTRY ANALYSIS According to the International Spa Association (ISPA), there are approximately 12,000 SPA Centers across USA and Canada (The Modern SPA Goes Mainstream 2011). Collective revenues amount to approximately $ 13 Billion as of 2009 with growth of about 16% per year, making the SPA business the leading seller in the wellness industry (ISPA Releases 2009 US SPA Industry Statistics 2011). There is a growing opportunity for those wanting to embark in the health and wellness business because people are now becoming conscious of their health conditions, turning to SPA centers to relieve their stress and tension. Sunnyside Wellness and SPA Center sees this as an opportunity to establish, thrive and grow its SPA and Health Center in Naperville, Illinois. Management believes that people will continue to look for the perfect SPA services that would match their varied needs and requirements. This is what management would like to penetrate and win. To achieve a winning edge over competitors, Sunnyside Wellness would also like to diversify its services, concentrating not only on beauty and relaxation services, but on encouraging healthy eating as well. It is with this intent that management decided to incorporate into its products and services the Sunnyside Nutrition Program, which includes cooking classes and consultations with dieticians. Only health recipes would be introduced in its cooking programs, and a licensed dietician will provide consultation services and also evaluate the recipes being taught. Diversification allows Sunnyside to expand its market reach and attract even those who are not really into the beauty and wellness programs into availing its products and services. The nutrition program will attract another niche market, which will contribute to the profitability of the whole company. In summary, the Wellness industry has a healthy environment that encourages creativity among its players. Creativity comes in the form of mixing and matching product packages that best suit the market’s needs. I. DEFINITION OF MARKET SEGMENT/NICHE 1. Differentiation strategy Focused Marketing Strategies – Facing stiff competition from other older and well-established SPA and Wellness Centers, Sunnyside recognizes the need for it to be more critical in its marketing strategies, focusing on the right people and ensuring that the communication materials and activities are indeed precise, direct to the point, and enticing to the target market. The management boasts of its strategic marketing efforts, maximizing available networks and machineries to penetrate the market and convey to them the desired message. Diversification – the company’s holistic approach towards healthy living puts an edge over competitors. While competitors focus on wellness services alone, Sunnyside puts premium on overall health and wellness by investing in facilities, programs and resource persons that would bring the target market added knowledge on healthy eating. The company’s ability to venture out of the typical definitely makes them stand out over the rest. Intensive Market Knowledge - as a service type of business, it is crucial for Sunnyside to be able to identify in particular the trends in Beauty and Wellness industry to come up with a good mix in terms of its products and services. As such, it capitalizes on a good market research, resulting to the identification of particular products and services for a targeted market segment. Creation of multiple opportunities from a single line of expertise – Beauty and Health Care may be innovated and transformed into a pool of other services that are also geared towards the total well being of the customer. As a result of researches, the products and services that are Morocco inspired shall be mixed with influences from Asia and Europe to come up with inventive, yet effective products and services. More importantly, the organic cooking class concept will allow the company to expand its market base, ranging not only those who wish to avail of the wellness services, but also to those who want to embrace the healthy lifestyle by being conscious of their diet, and going out of their way to learn how to eat healthily. Service quality – Sunnyside will send its service crew to various trainings and seminars to ensure the highest level of service quality is being rendered. Beauty consultants as well as expert dieticians will be hired to ensure the effectiveness of the programs to be offered. II. UNIQUE SELLING/ VALUE PROPOSITION Sunnyside Wellness and SPA Center is your one-stop wellness center, offering services that nurture your physical and inner strength. Our holistic approach guarantees effective products and services that care for your health needs. III. POSITIONING AMONG COMPETITOR’S OFFERINGS There is no direct competitor as far as its Sunnyside Nutrition Program is concerned. No other SPA and Wellness Center offers cooking class and diet counseling within its scope of business. The company will compete heads on with its SPA and Wellness Services but will stand out in its efforts to offer cooking classes under its Nutrition Program. IV. PRODUCT OR SERVICE LINE Organic Cooking Classes - Sunnyside Wellness will devote an entire team to run and manage its cooking school. With its goal to introduce to its patrons the concept of healthy eating, several short term courses that teaches student how to create organic meals will be offered. This SPA Center will essentially be the haven for health conscious food lovers. It would be the ultimate food experience for those who want their food healthy, but are also craving for variety and to do away from the bland taste of traditional vegan food choices. The courses will offer both nourishment and good experience to the target market, teaching them how to incorporate in their lifestyles the art of eating healthy not just by feeding them, but more importantly by teaching them how to cook the right recipes for them. SPA and Wellness – body scrubs, skin lightening, body wrapping, herbal wraps, derma abrasion, stretch mark and blemishes treatment, anti-aging, facials, make-up, skin care, waxing, polishing and anti-care treatments. Massage/ aromatherapy – includes Reiki, Shiatsu, Stone Therapy, Aromatherapy, Swedish and Sunnyside’s signature Hammam Treatment, a Turkish Bath which is a variant of the classic steam bath (Turkish Bath. 2008). Sunnyside will offer this using its own brand of oil and herbs imported from Morocco. Nutrition Counseling – Hand in hand with its Organic Cooking Program are counseling sessions implemented by resident and consultant-dieticians. The objective is to assist customers in identifying the right nutritional needs and diet programs suited to them. We will only hire highly trained and licensed individuals specializing in each service. As such, our clients will be assured that they are in the best hands and that they are being given 100% quality services. We would also offer after- sales and follow-through services. Sunnyside will likewise provide value added services such as free follow up consultation and packaged costs for two or more services availed at one time. This way, the company would be able to create loyal base of customers that would do repeat purchase and availments of the services. On top of this, loyalty programs such as frequent buyer concepts shall be introduced. Each loyal customer shall enjoy an added treat from the company, which will encourage him or her to go back for more. Sunnyside will also sell all natural beauty products that aim to sustain the effects of its services. These products are reasonably priced and the management will ensure 100% effectiveness of the products being sold. V. MARKET SIZE Sunnyside’s target market includes company executives, managers and employees of large and medium corporations located in Napperville and in neighboring cities. These are the people who work on a full-time basis and do not have the time to visit their favorite spa or salon center to avail of the services they desire. These are also the people exposed to work-related stress and would want to achieve a state of ZEN through availing of our massage services. Young professionals would love the idea of a cooking school right in the middle of a wellness center. This does not only allow them to indulge in their favorite beauty and wellness services, but also to learn new skills. They are also target market for diet counseling and monitoring. Secondary target market would be housewives who want to accomplish their salon and spa requirements within the comfort of their homes. VI. MICHAEL PORTER’S 5 FORCES FOR SUNNYSIDE WELLNESS CENTER Buyer Power As a service company, SPA and Wellness Centers can command prices and be creative with the services incorporated in their service packages to justify the fees. This kind of business appeals to consumers with sufficient disposable income to be spent leisure services. Target market has strong buyer power, and can well spend their hard earned money for a few hours of guaranteed wellness and health care – an advantage to increase profitability of Sunnyside Wellness. Supplier Power The SPA business is a growing business, and alongside its growth is the emergence of suppliers for this type of industry. Sunnyside may choose to get its supplies from several stores in Illinois, or can choose to get materials probably at cheaper costs from other states. Alternatively, raw materials may also be bought from other countries, specifically Morocco, where management has drawn inspiration for its aromatherapy services. The demand for raw material is high; there is also strong supplier power. Sunnyside Wellness and SPA Center has potential to contract the services of one these many suppliers and turn this into a long term relationship that outlines profitability amid various factors such as economic conditions. Threat of new products Again, the SPA and wellness business is a growing business. Companies need only to become creative in their product offers to get a share of the market. There will always be new innovations in the wellness industry, and the chance that better services will come along to threaten the existing ones is high. Companies should always be on their toes and have a watchful eye to ensure competitiveness. There is a very high threat for new entrants. Threat of substitutes SPA home service is one of the services that may be considered substitutes. Home service is much more convenient for the target market, but client homes don’t offer the same facilities as being in the salons. There will always be groups that would want to have a share of the market, without having to go through the rigors of putting up a spa business. There will also be culinary schools that will offer short courses for the same cause. There is very high threat of substitutes. Degree of Rivalry. In the wellness industry, competition is stiff. Remove the frills and the wellness themes, and these SPA centers basically offer the same service. The distinction happens with how creative each competitor’s product development team is, such that they can create an entirely different experience for each and every customer with their enhanced services. As such, rivalry is definitely high for this type of industry. VII. MICHAEL PORTER’S GENERIC STRATEGY Companies can achieve competitive advantage by making its products and services stand out from among its competitors, and by offering competitive prices. As mentioned, Sunnyside Wellness’ has a slightly diverse target market, having two major services being offered: the SPA and Wellness segment, and the Nutrition Programs. Though it targets the health conscious individuals in particular, these have two separate market focus, and although the company aims to have their customers patronize both offerings, it is highly possible that there are individuals who would prefer one over the other. Not to be outdone in the pricing game, Sunnyside guarantees to have very competitive prices compared to other SPA and Wellness centers, such that they will incorporate more value added features into their packages and offer incentives that would encourage the clients to not just go for the one-time deal but subscribe to a program that would encourage them to keep coming back for other services. SPA packages will be offered on a per session, and on a per program basis, such that clients will have a reason to have a regular schedule. As a differentiation strategy, the highlight of the company is its Nutrition Program, which caters to the group of people who intend to focus more on their food intake. The diet counseling segment definitely adds to the market appeal of the business. VIII. SELLING STRATEGY Total Wellness. This is Sunnyside’s tagline that will appear in all advertising efforts, logos and promotional activities. This tagline connotes that the store will provide its customers with a total sense of wellness, not only in terms of physical appearance, but also the relaxation of the mind and the emotions. The promise is to give the customers complete satisfaction for every service being offered. IX. PRICING STRATEGY Sunnyside Wellness is a holistic SPA center that aims to achieve total wellness by enhancing activities as much as encouraging healthy eating among its client base. To be able to compete heads on with the competitors, Sunnyside will play the pricing war to attract its target market. First, it will decrease the average cost of a service by 10% to be able to gain the reputation of being one of the cheapest in the area. On top of this, it will offer after-sales services such as free follow up consultation or free follow up haircut given a specific time. These value added service will definitely provide the customers more value for their money. Sunnyside will also offer beauty and wellness products that would reinforce the services being offered. Aroma therapy-based health care products would be offered at a relatively lower cost, and may even be bought at still a lower price if sold in bulk. More importantly, its Organic Cooking Program shall be implemented hand in hand with local culinary schools. It will tap the services of both full time and consultants to offer the classes. Consultants/ Free lancers will defray operational costs and would result to lowering of course rates. X. PROMOTIONAL METHODS Above the Line Advertising A successful launch is always accompanied by a tri-media campaign to ensure that the target market is reached. However, due to the limited advertising and promotions budget, it chooses to advertise mainly via radio plugs in local radio stations in Naperville. Repeat exposure via radio advertisements would spark interest among listeners. Among the three mainstream media, radio is considered to be the most cost efficient as it requires the advertiser a fixed advertising cost, yet it allows the product to be continuously stimulating the consciousness of its listeners. Merchandising Strategic merchandising is the key to promote the new business. Billboards and signage, announcements in key points within the city play a vital role in the company’s promotions plan. Sunnyside will ensure that the brand, as well as the home service details is displayed in two major billboard sites in two main entry points to the city. It will also display mini billboards and signage in public places such as shopping centers, supermarkets, subways, train stations and bus stations. Billboards should contain the brand name Sunnyside, as well as a short description of what is being offered. An enticing photo of two of the store’s top products should be shown also, together with its contact details. The phone numbers, the website and the email addresses should be shown in the advertising materials as well. There will be leafleting activities in areas where applicable. Target areas are university vicinities, and places with high foot traffic. Promotional Activities There will be discount and privilege offerings for frequent patrons, and a loyalty card to ensure repeat purchase among the market. Patrons who call in at least 5 times in one month gets the Sunnyside membership card which entitles them to special privileges and incentives on their next purchase. There will also be periodic raffle promos and pocket events that aim to draw in people into the center. Internet Marketing Internet Marketing has become popular because Internet access is becoming more widely available and used. Well over one-third of consumers who have Internet access at home report to using the Internet to make purchases (What is Internet marketing 2011). Moreover, statistics show that internet users increase at a rapid rate that in five years’ time, it is predicted that 80% of United Kingdom’s population will have a computer with Internet access at home (Advertising 2007). With this, Sunnyside sees an opportunity thru Internet Marketing. Since target market is students and employees who are heavy internet users, Sunnyside finds the potential of offering their products and services through a company website which lists down the entire menu, and other pertinent details regarding the services. Customers could even request for home service online, and expect the service within the specified time. Sunnyside will also tie up with other complementing brands such as book shops and magazine stands, and maximize co-branding and cross advertising in these companies’ websites. Schedule Of Advertising Sunnyside targets to launch the business in June 2009. Two weeks prior to store opening, management will start announcing this new business venture through leafleting in strategic areas such as flyer inserts in national papers and other similar publications. Simultaneous during the launch date, the billboard shall be placed in the two strategic spots within the city, and shall be displayed for the first three months of operations. The effort shall be sustained by mini billboard displays in approximately 20 other locations in the city. The Official Website shall be made available from the very first day of operations. Word of mouth via internet shall be utilized thru advertisements in some of the city’s local and tourist websites. Sunnyside will also post in social networking sites such as Facebook, Multiply among others to be able to make the rounds to target buyers online. Reference List Advertising 2011. March 28, 2011. http://www.weblinx.biz/advertising.htm Eaglewood Resort and SPA 2011. March 28, 2011 from http://www.eaglewoodresort.com/ ISPA Releases 2009 US SPA Industry Statistics. Hospitality.net. April 2, 2011. http://www.hospitalitynet.org/news/154000320/4042313.search?query=spa+industry+statistics The Modern SPA Goes Mainstream. SPA Getaways on msnbc.com. April 3, 2011. http://www.msnbc.msn.com/id/6909621/ns/travel-spa_getaways/ Turkish Bath. Wikipedia. March 28, 2011. http://en.wikipedia.org/wiki/Hammam What is Internet Marketing 2011. March 28, 2011 from http://www.what-is-net.info/what-is-internet marketing.html?gclid=COCs9JiE5YoCFQQeTAod5w7UyA Read More