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Marketing plan for PureBliss

Executive Summary:

Pure Bliss Day Spa is a full-range service day spa offering relaxing and pampering services in the most exotic environment to the targeted customers like travelers, business women, men, youth through variety of membership packages and programs. Being located in the downtown Orlando of Florida, the SPA attracts many visitors from the tourism sector, corporate sector and the working men and women. In order to sustain the existing competition pure bliss is planned to start up 35 therapy rooms, in 7,000 square foot facility with contemporary equipment and a total cost of $180000. Pure Bliss follows a penetration pricing strategy making their prices very low starting from $35 far below the competitors offering quality services and products, high customer satisfaction for continuous value relationship. Selection among variety of services and Spa packages, Accessibility of Products to carry out and Personal Client services and Competitive Pricing to fit into the budget are the main key strategies planned for PureBliss success. The Company is planned to achieve a break even of sales by the 2nd month of start up yielding a profit of $16806.4878 by the end of 3rd month.

 

1.1 Objectives

1. Achieve 3000 customer base list by the second month of

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start up

2. Achieve $180000 sales by third month after opening by performing 25 services per day.

2. Achieve $20,000 in profits by the end of 6 months of opening by performing 30 services per day.

3. Have a local client return rate of 90% by the end of the first 12 months.

5. To offer 55 services per day by the end of the first year.

 

1.2 Mission

The mission of Pure Bliss is to run a world class customer service centers in a profitable way and make the services available to all kinds of visitors in an affordable way.

1.3 Plan to make Success

1.      Customer Satisfaction: 100% satisfaction of the visited customer is the first motto and strategy to build up reputation and recurring and loyal customers.

2.      Promotion through corporate presentations: Marketing through word of mouth is the prime strategy plan along with other sales strategies

3.      Technical Expertise: Proving the services through technical expertise and professionalism is the other factor planned for success.

4.      Fitness of services: Matching services to different categories and types of customers to fit their need and pocket is another strategy for success.

2.0 Company Summary

Pure Bliss is a contemporary luxury spa located in the beautiful trendy district of downtown Orlando. Pure Bliss is an intimate experience of uncompromising luxury for those who want to relax, take pleasure in body healing, and receive state of the art facials, body treatments, and massages by top of the line professionals.

Central Business District is the area which experiences a variety of visitors and daily work man including women, men, and youth and is developing as a fastest business centre. Pure Bliss is a just ahead of the turn of the area to make it away from rush and easy to reach by local bus service, Linx. The unique advantages of the location for Pure Bliss are its near ness to the local people as well as no other SPA in and around the zone up to 100 Kilometers.

The profile of the Pure Bliss Day Spa customer consists of the following geographic, demographic factors:

Demographic Prominence:

Downtown Orlando demographics include a Total population of 15,016 living with in 1 Mile area and 1,327,979 within 15 miles. Total households within 15 miles is 496,511 with female population of 669, 460 accounting to 50.40% and Male population with 658,510 to count and 49.60% of total population. The Population density is 1,878.70 sq/mi. with different race and ethnicity like American Indian, Eskimo, Aleut, Asian, African, Hawaiian, White, Hispanic ethnicity etc.,

The populations include 49% of married, 29% of never married and 5.505 of separated, 5.20% widowed, 11.10% divorced couples out of 1,047926 population who are above 15 years. The region has 742,633 employees and 59, 807 business establishments with the area of 15 miles. The average vehicle availability is 1.9, making the commute easy for everyone. Majority of the population (20.90%) falls in the income range of $ 50,000 – $74,999 household income range, and the average household income counts to $ 63,279 in the area. The people are educated and have sense for personal appearance and have strong awareness of the mental and physical well being and fitness. The large number of gyms and saloons shows evidence for the fact.  Also the preliminary market research confirms the people’s perception on associating with SPA as a prestigious form of “self-pampering”, which became a necessary part of their work life.

 

 

Geographic Prominence:

Our immediate geographic market is the Central Business District  which is busiest among downtown encountering intense development, some of which include the 400′ 55 West on Church Street, The Vue a 426′ condo development soon to be the second tallest in the city, Tradition Towers, twin 415 ft buildings just west of Lake Eola, and PremierTrade Plaza, a large mixed-use development consisting of two office towers and a residential tower, called Solaire. A 12-screen movie theatre is planned as well.

The area is developing with high-level of highrises with an occasional skyscraper and contains many nightclubs and bars including Big Belly Brewery, Antigua, Blue Room, Mako’s, Rhythm & Flow, The Lodge, Independent Bar, and The Social. The commercial aspects of the region include SouthTrust Bank, and Wachovia, Bank of America, SunTrust Center with SunTrust Tower and Lincoln Plaza and City Commons with CNL Centers I and II, City Hall. SunTrust Center includes SunTrust Tower and Lincoln Plaza making it much busy trading centre.

2.1 Company Ownership

PureBliss Day Spa is a Sole proprietorship owned by Mr. XYZ, who worked as SPA director in some of the well renowned SPAs around the world. Having experience in exposure to different country customers,  he wants to establish the SPA in Orlando downtown to make it a cause to further develop the area.

2.2 Start-up Summary

The following table outlines start-up expenses related to leasing, build-out and start-up expenses in opening PureBliss Day Spa. The bulk of the start-up costs will be invested by the owner and the remainder will be funded through short-term financing. The start up financial requirement of the company is as follows:

Starting expenses: $ 89,300

Start up assets: $ 88,000

Planned Investment: $ 140,000

Loan: $ 40,000

The details are presented in the form of following statements:

Table- 1: Start up Costs:

Start-up Costs

Requirements

Start-up Expenses

Legal
$1,800
Printing, stationery, bags, grand opening coupons
$4,500
Brochures
$650
Construction/Design
$55,000
Insurance
$3,000
Rent
$16,500
Advertising
$3,000
Accountant
$750
Linens
$4,100
Other
$0
Total Start-up Expenses
$89,300
Start-up Assets

Cash Required
$40,000
Start-up Inventory
$8,000
Other Current Assets
$40,000
Total Assets
$88,000

Total Requirements
$177,300
 

 

Table-2: Start up Funding:

 

Start-up Funding

Start-up Funding

Start-up Expenses to Fund
$89,300
Start-up Assets to Fund
$88,000
Total Funding Required
$177,300

Assets

Non-cash Assets from Start-up
$48,000
Cash Requirements from Start-up
$40,000
Additional Cash Raised
$2,700
Cash Balance on Starting Date
$50,000
Total Assets
$90,000

Liabilities and Capital

Liabilities

Current Borrowing
$40,000
Long-term Liabilities
$0
Other Current Liabilities (interest-free)
$0
Total Liabilities
$40,000

Capital

Planned Investment

Owner Investment
$140,000
N/A
$0
Additional Investment Requirement
$0
Total Planned Investment
$140,000

Loss at Start-up (Start-up Expenses)
$90,000
Total Capital
$50,000

Total Capital and Liabilities
$90,000

Total Funding
$180,000
 

 

 

 
Chart-3. Funds vs Liabilities for Pure Bliss:

 

 

 

 

3.0 Products and Services

Luxurious state-of-the-art therapeutic treatments are offered to cater the services to different categories of customer groups like Women, men, youth, couples and are offered in the form of special Spa packages with discounts and special offers.

Hydrotherapy, aromatherapy, body massage, deep tissue or Swedish massage, deep cleansing, facials, pedicures, manicures, tanning rooms, heated stone massages, hot tubs, etc. are the main line of therapies.

The following is a brief list of the services and products that will be offered at the spa:

– Facials and Skin Care Treatment: European, corrective, therapeutic, and relaxing, Glycolic Acid and acne treatments.

– Nail services: Sculptured manicures, pedicures, and paraffin treatments.

– Total Body Treatments: Full body massage, body wraps, reflexology treatments.

– Beauty Products: Ready to use product range of creams, oils, lotions, high end-cosmetics, massage packages, hair nourishing packages, manicure and pedicure packages etc., for Full skin care line of facial and body.

– 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.

4.0 Market Analysis Summary

In an around the Orlando there are  nearly 20 or more SPA services offered through specialized SPA centers as well as a part of grad hotel services. However, Orlando being the Florida’s vacation gateway contributes a high percentage of Spa Industry revenues total $12 billion annually from 12,000 spas in the U.S. and Canada (ISPA). The growth of Day Spa industry is growing at 25% accounting for over $7 billion per year.

There are many luxurious and special therapy SPA centers in the Main Orlando, there is very less number of such facilities in the downtown creating a vast need for the pampering services. Though Buena Vista Palace Day Spa in Walt Disney World Resort offers 60 varieties of services, the citizens still need a more convenient and nearest place to go and take Spa services.  The price rates of SPA services range from $60-$ 150 for different packages per hour, there is segmentation who requires a more competitive price for different packages.

4.1 Market Segmentation

Pure Bliss is targeting the customer range with in the 15 mile radius of Centre Business unit with a household income over $35,000 as Downtown Orlando has 65 % of population falling in this category. Being located on the highway to many other commercial and public utilities, like Disney land and banks the Spa can attract secondary market segment like tourists, sportsmen and businessmen who stays in a local hotel.

PureBliss is targeting at the following 3 types of customers:

Ø  Young Business Women: PureBliss main target segment is Young business or working women between the age group of 22-35 yrs old that live and/or work in Downtown Orlando. Placing fliers at local grocers, food courts, restaurants and in commercial complexes like clothing stores, etc., will be the prime promotional strategies. Corporate advertisement and special packages will also be the strategies to attract this segment. Sensual educating brochures and free trail offers will also be on place for their reach.

Ø  Homemakers, College Students, Service Industry Professionals. We estimate that this group makes a quarter of our target market. Price and features of therapies are  an advantage to this market. The individuals who never step into a Spa probably because of the high industry prices will be attracted with tagging prices on low end.  College bulletin boards, local grocers, apartment complexes, and direct mailers will be the promotional channels to reach this segment. Coupons will also be the other plan of promotional activity to encourage recurrent customers from this segment.

Ø  Business Men: This segment is one of the growing markets in and around the world beauty and pampering industry. So we want to capture this market, by placing brochures and ads at gyms, local health clubs that emphasize the importance of stress relief and massage therapy to get rid from the stressful day work. We are planning to promote ‘Membership cards’ and Spa packages for this segment.

 

4.2. Competitor Analysis:

Pure Bliss while offering the varied services, faces competition from the business segments like – 1) Salons with Day Spa Services, 2) Heath & Beauty Products,  3) Hotels with Spa Services and 4) Medical Spas

The major Spa line competition comes from the following competitors.

–          Though Buena Vista Palace Day Spa in Walt Disney World Resort offers 60 varieties of services, the citizens still need a more convenient and nearest place to go and take Spa services. Situated in beautiful 10,000-square-foot facility with a unique European-style, providing more than 60 spa services, including massages, body treatments, and facials with complimentary access to our fully equipped fitness center for day and night gives a tough competition to the new comer like PureBliss.

–          Grand Floridian Spa & Health Club at Disney’s Grand Floridian Resort offering relaxation services through pampering massages, facials, body treatments along with state-of-the-art fitness machinery at an elegant, full-service spa and health club is another competitor of Purebliss.

–          The Spa at Disney’s Saratoga Springs Resort offers massages, facials along with pure indulgences reminiscent of the healing spas in the 12,000-square foot facility with a specialization in children’s facials and nail treatments offering complete family packages.

–          Situated in 4,600 square, the European style, Lighthouse Resort and Day Spa offers massage therapies, facials, aromatherapy, manicures, pedicures, waxing, steam room, sauna, mud wraps, and other healing body treatments.

–          The Grande Lakes Ritz-Carlton Spa offers a unique healing touch with its citrus-inspired beauty treatments for relaxation retreat.

–           Acqua-A-Unique Day Spa – Rejuvenates mind body and spirit with it’s truly Aquatic treatments.

–           Mandara Spa at the Walt Disney attracts the customers through its soothing surroundings with an overwhelming array of individual day spa programs, according to their tastes.

–           Luxurious treatments like traditional Swedish massage, rejuvenating aromatherapy body treatments, are also offered in 4,000 square foot fitness center &Spa at the Marriott World Center

–           Hair design, is also offered in Shala Salon & Spa Full-service Salon/Spa along with skin care, deep tissue massage, Swedish massage, hot stone massage, air brush tanning, bridal hair and makeup, manicure and pedicure. Two locations, the Peabody Hotel and Sand Lake location in Plaza Venizia. This spa cans become a competitor for Pure Bliss in the training segment.

–          Canyon Stone massage, featuring smooth volcanic stones and a choice of massage technique including Swedish and Shiatsu is the specialty of Canyon Ranch Spa Club at the Gaylord Palms Resort and Convention Center.

–           Deep kneading massage, and its Moor Mud Detoxifying Body Wrap, among many offerings at the 10,000 square foot haven of relaxation are the unique features of Papillion the Spa – Experience a signature, located at the Westgate Resort in Turkey Lake Road.

 

4.4: SWOT analysis:

 

Strengths:

Variety of features in the luxurious ambience and stringent customer service are our prime strengths. Technical expertise of the staff and innovative promotional strategies like penetration pricing, free and discount coupons, with awareness programs is also an additional great advantage to capture the market share. In-store complimentary juice bar and refreshments is an additional feature of compatibility to the customer.

 

Weaknesses:

Remoteness to modern life style is one of the factors to be waited for the publicity among the people. Rising up the 50% capital and arrangement for the initial cash flow is also another hindrance for the starting operations, due to the unpredictability of money market trends. Fresh start up with no client data base is also another weakness..

 

Opportunities:

Growing market size for Spa business

Increasing working and business women in the area, who is a major target to us

No near competitors in the proximity

High prices of other competitors

Less service features of the competitors

Increasing opportunities and development area with in the 15 mile radius in downtown Orlando

Increasing internet potentiality for the product sales.

 

Threats:

Major threat from highly established, branded Day spas.

Highly payable technicians and demand for qualified technicians

Increasing administrative expenses

Unknown economical and business cycles

Potential new competitors in the coming futures

 

4.5. Marketing promotions:

Pure Bliss adopts the Marketing mix that is comprised of the approaches to pricing, distribution, advertising and promotion, customer service, and product offering.

Pricing:

As discussed in the previous sections, Pure bliss want to adopt Penetration pricing strategy to enter in to the market and to capture the market share of the above mentioned competitors. We will offer many discounts for multiple services. For example, the price for a Relaxing facial is $35 and an Aromatherapy Full Body Massage is $55 per hour. An additional discount will be given if the client wishes to receive both services. And for the adoption of multiple services among the listed services like manicure and pedicure and other treatments, an increased discount of 10% will be applied. Pure bliss offers the 15% lowest prices than all the competitors which is a promotional campaign through fliers for sure success in the market.

Distribution:

A very less storage space is allocated for the products within the location. But most of them are published and made available for ordering through brochures and website pages. The products ordered from website and teleservices will be directly delivered from the manufacturers where pure bliss will only get additional commission without taking much responsibility for distribution.  Products are also distributed in the form of redeemable gift certificates fro pure bliss products.

Advertising and Promotion:

We will be placing fliers and brochures at Grocery stores, businesses and health clubs, Petrol bunks in the area. Advertisements and promos will be displayed on bulletin boards of local colleges, Apartment complexes in residential areas of Orlando buildings. The brochures will be offered with coupons for discounted and coupons for free trial offer to attract the initial client base. As per our preliminary research we came to know that customers prefer word of mouth to opt for such services in the form of referrals. Hence we reward our customers with discounts additional coupons for bringing in the customers. The referred customers will also be encouraged in the form of discounts.

Also special introductory and awareness programs about the fitness and stress removal therapies will be conducted to promote the services to corporate business men and women with offers of membership cards and free trial coupons. This is a major target area to promote and capture the market for Pure bliss.

 

Customer Service:

We offer experienced, proficient and hygienic services to all the customers without fail. Since satisfied customer is a double account in our industry we treat customer with utmost care and we give individual personal care to each customer type. We give counseling and then refer the treatment according to the budget. Not only that we support the customer with the home to carry products to sustain the therapy effect for longer time. All of our employees are highly trained in customer service.  And each customer will be assigned to a specific technician who acts as their personal counselor in the spa to encourage a strong employee-client relationship. The dedication of employees keeps our customers coming back along with other friends and family as referrals.

 

 

4.6. Sales Forecast and Breakeven for Purebliss:

 

We are planning to achieve a break even of sales with in the first 3 months. The average service price being $ 60 per visit for customer we plan to have sales around $175293.23 in t he first month resulting in a loss of $ -4706.772 and by the second month we are planning to have increased sales revenue of $ 196806, yielding a profit of $ 16806.4878. This is expected to constantly increase up to 1 year being the expenses constant for 1year.

And the sales forecast fro 5 years counts the variable expenses and still found to be profitable after the deduction of expenses. Table -5 Forecasts for 5Years predicts the profit and loss up to 5 years for Pure bliss.

 

 

 

Table-4. Sales Forecast for 12 months

 

Sales Forecast of Pure Bliss for 12 months

1st month ($)
3rd

month ($)
6th month ($)
12th month  ($)
Potential visitors to Pure Bliss Spa

2921.5538
3280.10813
3306.66771
3319.9475
Average Unit Price of  service in $

60
60
60
60
Total Sales

175293.23
196806.4878
198400.0626
199196.85
Total Expenses

180000
180000
180000
180000
Profit/Loss at the end of period
-4706.772
16806.4878
18400.0626
19196.85
 

Table- 5. Forecast for 5Years:

 

Profit/Loss for 5 years

2008
2009
2010
2011
2012

Population taken as constant living in 15 miles radius
1327979
1327979
1327979
1327979
1327979

% of potential customers
0.0025
0.003
0.004
0.0055
0.0065

Potential visitors to Pure Bliss Spa
3319.948
3983.937
5311.916
7303.8845
8631.8635

Total Sales
199196.9
239036.22
318714.96
438233.07
517911.81

Expenses
180000
200000
220000
240000
260000

Profit/Loss
19196.85
39036.22
98714.96
198233.07
257911.81

 

Time frame to start up the marketing activities:

We are planning to start up the marketing activities as the facility is being already identified. Once we get the initial funding that we require from outside we will be starting up the marketing activities to start building the client data base. The assumed date of start up will be September 2007 and the plan of action is as follows:
Start date
End date
Responsibility
Budget
Business plan
8/15/2007
8/30/2007
Owner

Fitting of facility equipment
9/1/2007
11/30/2007
Owner
$50,000
Hiring of Professionals & Staff
10/1/2007
12/20/2007
Owner
$5,000
Promotional activities
11/1/2007
12/30/2007
Owner
$10,000
Start up of Operations
1/1/2008

Owner
$2,000
 

References:

 

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Day SPa Business Plan, accessed on August 12 2007, available from <http://www.bplans.com/Sample_Business_Plans/Beauty_Salon_and_Day_Spa_Business_Plans/Day_Spa_Business_Plan/executive_summary.cfm>
 

Shaunta Pleasant, Making A Solid Spa Business Plan, accessed on August 12 2007, available from < http://ezinearticles.com/?Making-A-Solid-Spa-Business-Plan&id=110641
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