.. apartment complexes in Maryland Heights. 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, Cancun. 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. 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.
Service/Product Offering: The following is a brief list of the services and products that will be offered at the spa: o Facials and Skin Care Treatment: European, corrective, therapeutic, and relaxing. Glycolic Acid and acne treatments. o Nail services: Sculptured manicures, pedicures, and paraffin treatments. o Total Body Treatments: Full body massage, body wraps, reflexology treatments. o Courses/Training: Stress relief and stress management courses, training on the benefits of Aromatherapy and home uses of essential oils, dietary and nutritional training, and yoga classes.
o Beauty Products: Full skin care line of facial and body products, herbs, and essential oils. Target Market Our target market is primarily the Maryland Heights’ residents and employees. This is a young market with a great deal of potential. It consists of the following three groups: Young Business Women: This group makes up the majority of our target market. There are a significant number of young women (22-35 yrs old) that live and/or work in Maryland Heights. 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.), Other Industries: This group makes up a quarter of our target market. Price will be our advantage to this market. These individuals probably have not been to a day spa because of the high industry prices. We have overcome this obstacle with our low pricing. 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. Young Business Men: This group we hope to reach because they represent a significant percentage of the population of Maryland Heights. 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.
Keys to Success The keys to success in our business are: Location: providing an easily accessible location for customers. Environment: providing an environment conducive to giving relaxing and professional service. Convenience: offering clients a wide range of services in one setting, and extended business hours. Reputation: reputation of the owner and other employees as providing superior, knowledgeable personal service SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing Endeering Day Spa. Strengths Strong relationships with suppliers of beauty products that offer credit arrangements, flexibility, and response to special product requirements.
Excellent well trained staff, offering personalized customer service. Location: providing an easily accessible location for customers. We are currently the only day spa located in the City of Maryland Heights. Environment: providing an environment conducive to giving professional service in an attractive, relaxing atmosphere. Convenience: offering clients a wide range of services in one setting, and extended business hours.
Reputation: reputation of the owner and other technicians as providing superior personal service. Great referral benefits for clients. In-store complimentary juice bar and refreshments. High client loyalty. Weaknesses Access to capital.
Cash flow will be unpredictable. Have no current client base. Opportunities Growing market with a significant percentage of our target market unaware that we exist. Continuing opportunity through strategic alliances for referrals and marketing activities. Benefiting from high levels young professionals in the area.
Continuing awareness of spa industry and its importance to health. Increasing sales opportunities beyond our 20-mile target area. Internet potential for selling beauty products to other markets. Expansion into other markets. Threats Competition from a current high profile day spas.
Salary commission structure of employees. Dramatic changes in economy. Potential new competitors in the area Competition Competition in the area comes from the following three day spas: Green Door Spa Plaza Frontenac: Green Door has a very good name in the spa industry. They have been around for a long time. Their pricing is very high but they can get away with this because of the location and market they serve.
They are associated with prestige and a certain amount of glamour is represented here. Although we arent specifically targeting the same clientele, we would like Endeering Day Spa to also represent prestige and glamour. Ginger Bay Manchester: Ginger Bay has also been around for several years. They will be our largest competitor. They located less than 10 miles from our spa.
They have the major share of our target market. We hope to attract and serve many of the clients that they are currently serving. Our advantage is that we offer the same services but at a significantly lower price. We are also located closer to our target market. Cary Obriens-St.
Charles: Cary Obriens is new to the industry. They have a lot of new clients and are comparatively priced. They offer many of the same services we will be offering and also have a full service hair salon. This is a major advantage for them. However, they are located in St.
Charles, which is approximately 10 miles away. There is a lot of traffic during some of our peak hours of operation. Our target market lives in Maryland Heights and if they are currently clients at Cary Obriens, we feel that they would prefer not to deal with the traffic heading toward St. Charles. Marketing Organization Heather Deering, the owner, is the one primarily responsible for marketing activities. This is in addition to her other activities, and she does depend on some outside resources for mailings and graphic design work. Heather intends to delegate responsibilities for special event planning to Matt Deering.
Personnel Plan The personnel plan calls for a receptionist who will greet customers and receive payments for services and products. There will be one nail technician, three estheticians, and a massage therapist. Everyone but the receptionist will be contract workers, and will be paid a sliding commission scale based on the amount of revenue created. 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 Endeering Day Spa, there will undoubtedly be obstacles to overcome in the near future. Heather and Matt Deering have dedicated a tremendous amount of time and effort in developing a product that meets the needs of their target market.
They must not stop here. In order to be successful, they will need to continue market research and listen to the demands of their market. The industry is booming and with careful planning and marketing, the Deering’s will be on their way to a prosperous and successful future. Marketing and Advertising.