The Dreamy Day Spa is a full-service day spa dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable price/value relationship. We will also maintain a friendly, fair, and creative work environment, which respects diversity, ideas, and hard work. Market research indicates a specific and growing need in the area for the services Dreamy Day Spa will offer in the market it serves. This market strategy will be based on a cost-effective approach to reach this clearly defined target market. This approach will utilize resources to create awareness of the spa and encourage customers to benefit from the convenience and services it offers. Dreamy Day Spa will focus on its client requests, specialty services, premier products, and competitive pricing. Their mission is to supply services that enhance clients’ physical health, appearance, and mental relaxation.
Evidence of market need / primary research results
Results for this survey are based on interviews conducted in the Park Slope area, sample of 20, ages 16 and older living in or close to Park Slope.
The interviews were conducted on Saturday 5th to Sunday 6th of February 2011, with a total of 20 interviews. The 20-35 age group was oversampled, almost half of the total sample. The distribution of race was almost equivalent; whites include only non-Hispanic whites, blacks include only non-Hispanic blacks. Hispanics are of any race. Survey interviews were conducted only in English. The interviews were conducted by four interviewers who were purposely placed in front of the two competitors, D’Mai, and Sage spa.
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Only 5 candidates said they were satisfied with their usual spa. The young and old are different in many aspects of their lives. Young people are mostly going to relax and enjoy their free time, while old people are going to the spa for therapy. 70% of the candidates were indifferent at first when they learn the coming of Dreamy Day Spa. Their opinions changed when they compared the difference of the services price given at Dreamy Day Spa compare to other spas.
Dreamy Day Spa marketing Objective.
The marketing objective is to promote rapid growth and profitability through effective implementation of our market strategy.
Service and product offering
Dreamy Day Spa offers therapeutic massage services, body treatments, facials and anti-aging treatments, waxing services, hair services; nail treatments, and makeup. Services are provided by licensed therapists, aestheticians, and nail technicians.
Facials
Quick Results Facial
Customized Facial
Stress Relieving Spa Facial
Oxygenation Facial
Powerful Surface Peeling Facial
Pumice Peel Manual Micro-dermabrasion Facial
Acne-clearing Treatment Facial
Body Scrubs and Wraps
Aroma Therapy Oil Wrap
Herbology Body Polish
Mud Therapy Body Mask
Trissage Body Smoothing
Micro Treatments
Kerafole Elbow Rescue
Herbology Hand Retexturizer
Lip-Conditioning
Multi-task Eye Mask
Massages
Classic / Swedish Massage
Swedish
Back, Shoulder, Neck
Reflexology
Pregnancy Massage
Stress Reliever Massage
Deep Tissue
Hot Stone Massage
Combination
Combine any Classic massage with a Specialty massage for an hour and a half of total pampering.
Express
Reflexology
Spa Packages
Nail Treatments
Manicure
Pedicure
Acrylic
Spa Pedicure
Pedicure
Fills
Pink & White Fills
Signature Manicure
Oil Manicure
Polish Change
Nail Repair
Hair Services
Haircut
Shampoo & Blow Dry
Long Hair and Up Styles
Bang Trim
Weddings
Coloring
Single Process
Double Process
Color Correction
Weaves and Highlights
Partial Weaves
Perms & Straightening
Chemical Straightening
Permanent Waves
Spiral Perm
Customer Service
All of our employees have been highly trained. Since this is a service industry, unsurpassed customer service will be our primary goal. This aspect, among others is what will set us apart from our competitors. We will strive to offer superior service that will make our clients desire to return. Each customer will be assigned to a specific technician in the spa. This will encourage a strong employee-client relationship. This type of dedication and customer loyalty will keep our clients returning and referring friends and family
Target Market
Our target market is primarily the Park Slope residents and employees. This is a young market with a great deal of potential. It consists of the following three groups:
Business Women: This group makes up the majority of our target market. There are a significant number of young women (25-45 yrs old) that live and/or work in Park Slope. We will be advertising by placing fliers at local grocers, bars, restaurants, etc. with ads that stress the benefits of relaxing and self-indulgence at our spa. Location will be are primary advantage. This group most likely has been to one of our competitors. We will key in on the fact that we are right around the corner. We will also have spa packages available for the busy business woman.
Homemakers, College Students, Service Industry Professionals (bartenders, servers, beauticians, etc.), and other Industries: This group makes up a quarter of our target market. Price will be our advantage to this market. We will be advertising to this group by placing ads at local grocers, apartment complexes, college bulletin boards, and direct mailers. We will also have coupons to encourage this group to take advantage of the benefits that previously have been associated with high income individuals.
Business Men: This group we hope to reach because they represent a significant percentage of the population of Park Slope. We hope to accomplish this by overcoming the beliefs that day spas are just for women. We will be placing brochures and ads at local health clubs that emphasize the importance of stress relief and massage therapy in developing muscle tissue. We have also developed spa packages for the healthy male.
Target Market Segment Strategy
As individual as our clients are, they seem to fall into one of four general categories: Injury Recovery, Self-Pampering/Relaxation, Alternative Care Users, and Athletes. Besides the obvious differences in the style of massage or treatments each of these prefer, they also represent separate groups for marketing and retention purposes. In addition, the booming anti-aging market is an additional momentum builder.
The Injury recovery group is usually referred by a Chiropractor, self-referred through our listing on the American Specialty Health Network site, or referred by another client who found massage helpful during an injury recovery. Marketing to this audience is done indirectly, through the referring parties.
Clients who have the disposable income to indulge in massage and body treatments for self-pampering or relaxation are the core of our long-term repeat customers. These clients will come once a week to once a month for years, and often refer other family and friends. This type of client can be difficult to find – an ad in the local alternative news weekly (especially with a coupon for $5 off) or a donation to a charity auction may result in a one-time visit, or a long-term client. Another source of usually one-time visitors is the Gift Certificate – friends pampering friends for a birthday or other special occasion. Our desired location will provide an excellent demographic to provide this type of client.
The third group is Alternative Care users. These people mistrust allopathic medicine, and prefer to use chiropractors, naturopaths, herbalists, and acupuncturists. A local networking group of alternative care providers is a great way to get referrals, as well as placing posters on other practitioner’s offices, and ads in the local alternative newspaper.
The final group is another backbone of this business – the amateur athletes. There is a large population of runners and bicyclists in the local area, as well as out-of-town participants who return for annual events, and book massages during those times. They are a very loyal group, and will readily give word-of-mouth recommendations, especially if they see massage as having given them a specific boost to their performance. They will give word-of-mouth recommendations, especially if they are satisfied by given services that specifically boost their performance. This group will cross over from the Injury group, and become long-term clients after the specific initial injury has healed. They also tend to have chronic injuries or pain, especially as they age, which can encourage them to become repeat clients
Competition
Due to the popularity of the spa trend, there are many spa business opened up in this recent year in park slope. The competitors that we concern are those spas that located in the same area. There are eight spas already excluding our Dreamy Spa in park slope. However, compare to the size, investment, style, target market, and image, there are two main spas, which seems to be our effective competitors.
Dream Day Spa potential competitors in Park Slope come from the following two-day spas: D’mai urban Spa and Sage Spa Urbana. D’Mai Urban Spa has good reviews and a very good name in the industry. Their pricing is very high comparing to others spas in the area, but they can get away with it because of the location and market they serve. The next is Sage Spa which is highly rated (voted Brooklyn’s#1 spa on citysearch.com). Sage Spa has been in existence since 2004. They will be our largest competitors. They major share of our target market. We hope to attract and serve many of the client s that they are currently serving. Dreamy day Spa competitive advantage over D’Mai urban spa and sage Spa consists of moderately lower prices, personal appointments, confidentiality, products that are formulated for all ethnic groups. Dreamy Day Spa is offering expert massage and holistic facials in a beautiful serene setting. We show concern for what matters to our customers. Individual attention, personal tailored sessions are our guide. We are proud and passionate about what we do. Dreamy Day Spa always listens to his customers; Train his staff to be always helpful, courteous, and knowledgeable.
What will set Dreamy day spa apart from the competition is the commitment to provide all of these specialized services in one convenient location. The basic market need is to offer a variety of services at reasonable prices, for the owe-it-to-yourself clients, through a personalized spa that offers excellent service and treatment that encourages people to pamper them.
Market Summary
We possess good information about our market and know a great deal about the common attributes of our potentially loyal clients. We will leverage this information to better understand whom we serve, their specific needs, and how we can better communicate with them.
The profile of the Dreamy Day Spa customer consists of the following geographic, demographic, psychographic, and behavior factors:
Geographic
Our immediate geographic market is the park Slope and near neighborhoods area, with a population of 65,047. The Park slope encompasses 68,000 square miles of geographic area in need of our products and services. Park Slope is home of New York City major employers. There are eleven hotels in or near Park Slope. We are concerned with their customers and workers who could be a very important asset to our establishment. Park slope has a relatively young population base. Over half of the total population is between the ages of 14 and 44. The predominately young age distribution is most likely associated with the high number of multi-family housing units within the city that are attractive to young persons. The current information median age was 34 years. Park slope contained a relatively well educated population in 2000. Census data indicated that overwhelming majorities, approximately 86%, of the residents are high school graduates and 66% of the high school graduates have some college education.
Demographics
Female. · Single or recently married. · No children. · Have attended college. · A household annual income in excess of $78,528 · Age range of 25 to 45 years, with a median age of 34. · Rents apartment or owns their home, townhouse and/or condominium valued at approximately $88,000. · Work in a professional/business setting in Park Slope and its surrounding areas. Behavioral and Psychographics · Personal appearance is a priority. · Has strong awareness of the necessities of mental well being and physical health · Associates spas as a prestigious form of “self-pampering
Pricing
The pricing structure will be one that is extremely competitive with other spas. We will offer many discounts for multiple services. For example, the price for a Relaxing Facial is $30 and an Aromatherapy Full Body Massage is $50 per hour. If a client wishes to receive both services, a 5% discount will be applied. If three or more services are performed, a 10% discount will be applied. Our base prices alone are over 20% lower than our competitors. This is one of our key advantages. Distribution: All beauty products and services will be distributed at the spa. We will be developing a website in which customers can purchase products and gift certificates.
Advertising and Promotion
We will be placing fliers and brochures at businesses and health clubs in the area. We will be placing ads on bulletin boards of local universities. We will also be placing ads at many of the apartment complexes in Park Slope. This is where the majority of our target market lives. The ads will include coupons for discounted or free services in an effort to build an initial client base. Our research has shown that word of mouth is the best advertising for this type of business. We will also ask clients for referrals, and reward them with discounted or free services depending on the number of clients they bring. We will also offer discounts to the new clients who have been referred. There are plans for a drawing that will offer a free trip to, say, Hollywood. A client would simply refer new clients to us, and we will place a card in a box for each client he or she brings. The more they bring the more chances they have of winning the trip.
Market Trends & Growth Potential
The day spa industry market is experiencing a tremendous growth spurt. The industry is expected to realize a rapid increase over the next five years. This is primarily due to the increased awareness of the health benefits associated with the industry. This growth also comes from more and more individuals seeking a variety of forms of stress release. Day spas typically teach individuals how to accomplish total mind and body health with the implementation of natural elements into their daily routine. Another factor that could be affecting this growth is the increased number of men that are also taking a stronger interest in their mental and physical health. Prior to 1990, less than 20% of the targeted males had even been to a day spa. This percentage has been rapidly increasing. In 1999, according to Maxim magazine, over 50% of young businessmen have a health routine that includes a regular visit to a day spa for a massage. The outlook for this market is very prosperous. It is still in its growth stage and market projections have determined that it will continue to be in this stage for quite some time.
SWOT Analysis
STRENGTHS
High level of professionalism
Variety of treatment procedures
Low price comparing with other spas
Our spa also has its own website that can help promote the spa and will provide online booking. Appointment and online contacts of the customers which will feel very convenient
WEAKNESSES
Services are about the same as the other spa, and it is a new spa within the area, it is hard to keep up with competition. We have to try hard in term of the promotion.
Cash flow will be unpredictable.
Have no current client base.
Increase of the competition by the appearance of new spas
OPPORTUNITIES
Finding surrounded environment such as trend can acknowledge us to the customers.
Nowadays, people are very concerned about their health which is one of our biggest opportunities.
THREATS
Similar effect of treatment
Increase of the competition
Same style of promotion
Conclusion
Like any new ventures, there are many risks involved in opening a new business. Although, a significant amount of market research supports the opening of the Dreamy Day Spa, there will undoubtedly be obstacles to overcome in the near future. We have dedicated a tremendous amount of time and effort in developing a product that meets the needs of our target market. In order to be successful, we will need to continue market research and listen to the demand of our market. The industry is booming and with careful planning and marketing, we will be on our way to a prosperous and successful future.
appendix a
Participants name:
Patrick Ramirez
Latisha Smith
Cornelia Sonde
Aurelien Gerard
Naima Elatrech
Claude Rivel
Sinium Lee
John Stamos
Mr & Mrs Jackson
Kelly Lenardon
Mark Morford
Robert Reed
Dreamy Day Spa Survey
Full Name: __________________________
E-Mail (optional):
Sex
â-¡Male
â-¡ Female
How old are you?
â-¡Under 25
â-¡25-35
â-¡36-45
â-¡46-55
â-¡56-65
â-¡Over 65
Are you currently working?
â-¡Employed
â-¡Retired
â-¡Unemployed
â-¡Student
What is your annual Income?
â-¡0-$25,000
â-¡$26,000-$35,000
â-¡$36,000-45,000
â-¡$46,000-$65,000
â-¡$66,000-$85,000
â-¡$86,000-$100,000
â-¡Over $100,000
How often do you visit a Day Spa?
â-¡6 – 10 times a year
â-¡More than 10 times a year
â-¡Never
What is your favorite Spa treatment?
â-¡Facials
â-¡Massages
â-¡Special Packages
â-¡Body treatments
â-¡Nails treatments
â-¡Hair services
â-¡Makeup
How much do you spend on an average visit?
â-¡Under $100
â-¡$100-200
â-¡over $200
When visiting a Day Spa, do you go…?
â-¡Near your home
â-¡While traveling
â-¡ alone
â-¡With a friend
â-¡With spouse
How likely are you to refer someone to spa?
â-¡Highly likely
â-¡Somewhat likely
â-¡Least likely
â-¡Not at all
â-¡1 – 2 times a year
â-¡3 – 5 times a year
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