Tactical marketing plan JOY Jagadish PATRA

 

Introduction Spa comes from Latin word means for health by water . Lemonade™ The Wellness Spa established in late 2012 , in consultation with the country's top spa expert is the in house spa of Hotel Holiday Resort located at Puri,Odisha,India the 2nd most visited city by pilgrimage tourists in India.

Surrounded by the resort's lush landscaping and breathtaking view of the sea, Lemonade offers tranquility, privacy and pampering treatments ,featuring from full body massages to shorter duration massages for foot, head, back , neck and shoulder.

Lemonade™ also presents new facials and body treatments with june jacobs, the creator of three global skin care lines , unique body treatments include de-tan body scrub and masks options like exotic green tea ,coffee and chocolate to name a few.

Special spa journey's like a jet Lag package, beauty essentials journey and men's package are the other many reasons for customers to rejuvenate at the Lemonade spa.

Lemonade’s pampering treatments leaves a refreshed and beautiful feeling among the guests during their stay at the beach resort . Lemonade's wellness services & regimes combined with the best of international experiences brings about the union of mind body and soul.

Come Discover A New You.

Executive Summary

•  The Strategic Problem is the flat growth in sales for the last two years due to low awareness of the benefits of spa treatments.

•  The Strategic Opportunity is to drive customer walk in’s of adult guests staying in the resort to achieve annual sales of $100,000 by 2017.

•  Critical insight: Although the resort welcomes on an average 5727 tourists per month only 6% of adults are converted to avail a spa service ,a market opportunity to tap in more revenue per customer.

•  The Strategic alternatives are : a)  A 60:40 mix of modern & traditional Ayurveda treatments b)  A 75:25 mix of modern and traditional treatments

•  The Strategic recommendation is to have a treatment mix of 75:25 and revamp the marketing strategies in order to increase our market share and customer reach.

A wellness spa features services focused on one’s well-being and vitality, includes relaxation and rejuvenation therapies.

Lifestyle : Health and Beauty Industry - Overview

Lifestyle  in  Health  &  Beauty  

Ayurveda  spa   Medical  Spa   Wellness  spa   Thermal  spa   Hammam  spa  

SPA  

Facials   Hair  salons  Body  Treatments   Hands  &  Feet  care  

Industry  

 Sub-­‐Industry  

Segment  

Treatments/Services  

The spa industry is part of of health and beauty market which are characterized by a substantial methods of treatments and services

Spa and wellness industry - overview The global wellness industry represents a market of nearly US$ 2 trillion as opposed to the Indian spa & wellness Industry, which is a US$ 9.8 billion market  

Spa  Industry  in  India,  Market  size  2007-­‐2011  ($9.8bn)  

Spa  Industry  in  India,  EsQmated  Market  size  2012-­‐2017  ($14.5bn)  

During the next three years we estimate that the Indian spa & wellness industry will grow at a CAGR of 20% to reach $14.5 bn. Growth in the industry is due to increasing affluence among young transitional.

Puri welcomed 10Mn tourists in 2014 from all over India comprising of families,corporates,couples and leisure guests and more than 40% stayed at beach front resorts.. *Exhibit : Puri’s Demographics  

Tourists have different knowledge about the wellness of a reliving massage at a spa hence tend to opt for unprofessional beach side masseuses and traditional Ayurveda massage.

An untapped Market potential of 4mn people is the spa industry’s scope to capture in Puri.    

Spa  industry  in  India  

Spa  industry  in  Puri  

The Market Attractiveness for the spa industry is medium in Puri, India

Although Puri doesn’t have many wellness spa with very low rivalry for market share , there is still an existing demand for relaxation massage services among tourists.

  Mitigating Factors: •  There is a rise in local beach

masseuse offering massages at dirt cheap prices substituting spa’s value proposition

•  The spa industry is now

attracting large number of domestic entrants and international players with new disruptive techniques ,a threat to local spa brands

4  

5  

3  2  

2  

Threat  of  subsQtutes  

Threat  of  New  Entrants  

Bargaining  power  of  buyers  

Bargaining  power  of  suppliers  

Rivalvry  among  compeQtors  

Lemonade is competing against several other relaxation service offering brands in the city

Lemonade stands second among competition in sales, relative market share of 0.8x.

Premium  4  *  Hotels  

Economic  Hotels  &  Beach  Side  masseuses  

Local  Ayurveda  spas  

•  Mayfair  Resorts  •  Toshali  Resort  

•  Hotel  Gandhara  •  Hotel  Santana  

•  Ayurshree  spa  •  Ayurveda  mahavidalya  

Lemonade has strong brand loyalty and brand presence relative to competitors

Lemonade’s Relative SWOT Analysis

Relative Strengths

• Brand awareness is related to Holiday Resort’s 3 decade old reputation in hospitality • Large product mix targeting different segments and needs of travellers • Excellent technology, innovation, ambience and expertise • Inimitable competitiveness

Relative Threats

• Low priced competitor • Increase in local massuse at the beach • Decrease in demand of toursits visits • Retaining skilled man force is another hurdle for the industry

Relative Opportunities

•  Increasing tourist arrivals by 10.6% YoY •  New technolgy development in spa industry •  Increasing demand for lifestyle products •  Create employment for locals

Relative Weakness

•  Demand variation among guests •  Weak attraction & retention of local

residences and foreign tourists •  Less local partnerships •  Underutilization of capacity

Lemonade’s countable salient beliefs are its strong elements that alleviates the brand reputation.

Lemonade proposes superior value among its competitors ü  Superior operations

High skilled staff trained to expertise by professionals hired from Spa institute.

Open 7 days a week with 12 hours of operation

ü  Superior Technology

Latest design and ambience with ultra finish and imported massage accessories

ü  Superior Branding, Offering & Positioning

Uniquely branded as a spa brand subsidiary of Hotel Holiday Resort for future franchise expansion

ü  Superior Access

Located right around the swimming pool adjacent to all recreation areas gains superior visibility

Superior Branding

Superior Data

Superior Inputs

Superior Offering

Superior Customers

Superior Operations

Superior Customer Segments

Superior Technology

Superior Access

Superior Collaborati

ons

Superior Agility

Superior Positioning

Lemonade’s competitive positioning in the market is relatively strong among competitors  

Lemonade needs strategic investment on marketing and emphasize on increasing customer penetration from current 35% to above 60% and protect its position to disrupt the market

The spa industry is booming and consumer expectation are becoming more discerning and sophisticated leading to assessment of well informed services on offer

Consumers mainly comprise a young population with rising income levels and the increasing need to look good and feel good, which has led these young consumers to seek wellness solutions to meet lifestyle challenges

Toshali Resort’s Ayurveda spa

Lemonade Spa

Mayfair Resort’s spa

Perceived Performance

Rela

tive

Pric

e

Inferior Superior

Low

High

Others

Lemonade’s strategic pricing attracts all range of customers as it is averagely placed between the premium and economic pricing Lemonade offers different treatments with differentiation in values for different market segments. Customer loyalty index of 75 due to 75% loyal and repeat customers but only 15% new customers  

*Exhibit:  Com

peQtors  a

nalysis  

Significant customer base is directed within the resort

Marketing and targeting customers/guests of other and nearby hotels with no spa facility will enforce walk in of customers and

IN  HOUSE  GUEST  85%  

OTHER  HOTEL  11%  

FOREIGNERS  1%  

VISITORS  2%  

LOCAL  1%  

CUSTOMER  ACQUISITION    

•  Only 3586 in house guests of the resort avail a service at the spa per year with 70% privilege membership redeeming discount of 20%

•  Adult in house Customer

attractiveness is 6%

•  Locals and guests of other hotels are the biggest untapped customer base

Lemonade’s customer life time value is highly positive

Holiday Resort’s 47000 privilege members are its frequent customers who have nearly 5-8 repeat visits a year with a customer retention of 88% and are Lemonade’s brand loyal customers with 90% rated excellent .

Customers value more and are driven towards full body and express massage

CUSTOMER RETENTION AND LIFETIME VALUE

Customer Retention

Cus

tom

er L

ife

Local Ayurveda Spa

Holiday Resort Average CR 88%

Toshali Resort Average CR 67%

50% 100% 75%

Mayfair Resort Average CR 80%

6%  

37%  

5%  

31%  

9%  3%  

10%  

POPULARITY  INDEX  

0%  10%  20%  30%  40%  50%  60%  70%  80%  90%  

100%  

EXCELLENT   GOOD   AVERAGE  

FRIENDLINESS/HELPFULNESS  

CLEANINESS  

THERAPIST/TREATMENT  

AMBIENCE  

OVERALL  

Exhibit  :  Gue

st  fe

edback  fo

rm  

The  center  of  in,luence  for  the  spa  are  the  massage    therapists  

A highly skilled and trained therapist is a must need for high conversion rate of customers and captive customers to prefer and purchase

•  A receptionist : welcomes and assists the guests to understand about benefits of spa treatments

•  Massage therapist: recommend and educate the customers according to their relaxation need

•  Aesthetician : suggests treatment of skin, hands

and feet for better foliating results

Exhibit  :Em

ployee  Produ

cQvity  

The spa industry can be greatly influenced by economic conditions as it is adjacent to leisure industry

P  •  Government wears multiple hats in its roles as a provider, facilitator,

enabler, and regulator in the industry.

E  •  Consumers mainly being young population, their spending on wellness

have a direct co relation with the economic effect on their incomes

S  •  Cross gender massage is opposed & discouraged in the pilgrimage city •  Locals tend not to prefer spa services over traditional home remedies

T  •  Rise in new home based relaxation equipment’s that rejuvenates the

body without a need of a therapist

The Strategic Opportunity is to drive customer walk in’s of adult guests staying in the resort to achieve annual sales of $100,000 by 2017.  

The Strategic Problem is the flat growth in sales for the last two years due to low awareness of the benefits of spa treatments.  

Vision :

Become a premier benchmarking brand in the Puri, India’s spa business .

Goal :

Enhance customer relationship and acquire the highest number of customer in the market

Objective :

Drive in 9500 customer annually to optimize potential and increase sales to $1000,000 by 2017

Marketing strategy :

①  The competitive advantage of lemonade is its best customer solutions and best product variety

②  Lemonade will use existing resources under the preview of Hotel Holiday Resort to market its brand

③  The competitive intensity is high and aggressive

④  The target market would be the floating population i.e. the upper middle class tourists who visit the city

Strategic Alternatives :Decision tree

Lemonade’s  MarkeQng  strategy  

60:40 mix of modern & traditional

Ayurveda treatments  

Marketing investment of 15%

75:25 mix of modern and traditional

treatments  

Marketing investment of 25%

Adding more Ayurveda treatments to the menu with a 60:40 mix will increase familiarity with the benefits of a spa treatment

- Focus on product that market is well known for,i.e Ayurveda as the traditional indian massage therapy - Attractive to new old styled customers - canabalizing competitiors share

- High competition and precision in skills is required - Losing innovation to a new treatment which is more modern and international - Modern treatments will be demanded to adapt traditional style

- Quick gain in sales by 20% of $8000 -$10000 annually - Controlled marketing expenses

- High cost of set up and training of therapists,investment of $3500 - Loss of potential long term perpetual revenue growth of CAGR 18-22 % - Decrease in modern product portfolio of services

60%  ayurveda  treatments  

COSTS  BENEFITS  

CON’s  PRO’s    

Ascend- Ayurveda full body massage accounted 14.6% of total body treatments and was positioned 3rd Among popularity rankings of body treatments

Going ahead with a 75:25 product mix of modern and traditional menu will expand lemonade’s customer reach

- Create diffrentiation among competitors offering - Unique value proposition in services - Wide scope of flexibility in innovation to engage customer - Increase in customer life time & retention

- Risk in deviating from current market need to new methods - Extensive requirement of awareness among customer to choose new modern style treatments - Need for variety in therapists and specialisation

- High impact on long term growth in sales,perpetual growth of 20-22% - On track of international standards,high functional value

- Hiring of spa consultant for R&D in international treatments and implementation for continous innnovationation at a cost of $ 5000 - Higher NPV

75:25  mix  of  treatments  

COSTS  BENEFITS  

CON’s  PRO’s    

Concentration of modern treatments will open up area for continuous innovation strengthening brand and competitiveness

 

The Strategic recommendation is to have a treatment mix of 75:25 and revamp the marketing strategies in order to increase our market

share and customer reach.

Ø  Increase in sale to $95000 by 2017

Ø  Attain high brand value

Ø  Aggressively capture the Spa market with unique value proposition of modern treatments

Tactical Marketing Plan

Marketing plan solutions

Attractive 75%

Price OK 75%

No Purchase 35%

Not Attractive 25%

8.2% Purchase 65%

24%

57%

6%

Not Aware 40% 23%

Aware 60%

High Price 78%

Market Share

Leakage

An SDI of 40.1 indicates less than half of our potential has been realized and there is still a considerable market share growth

Market Share Index

Increase in marketing spending will capture the customer leakages through its promotion and communication strategy

Lemonade’s potential customer serve market to 50% will require extensive push marketing

Lemonade’s four pillars of branding

Esteem

• Customers know lemonade from Hotel Holiday Resort’s goodwill value

• Perceived as high on quality standard and cordial treatment

• Desired brand in comparison to competitors

Knowledge

• Highlight Lemonade’s phrase “Come discover a new you”

• Educate guests with image and explanation of the modern treatments benefits

Differentiation

• Treatment mix variety caters to different customer needs

• superior innovation in treatment method

• Best customer experience with skillful therapists

Relevance

• DeTanning and De pigmentation appropriate to skin repair

• Facial,pedicure and manicure for beautification

• Full body massages with hot stone and scrub for reduction in strictness and severity

Current Presence Future Performance

Echi

bit

Evaluating the pillars of Lemonade’s brand visualizes high potential to future growth

Lemonade’s differentiating components reinforces its brand value and preference among customers hence must be addressed in marketing.

Lemonade’s value proposition – “Customer experience”

1. Market

Focusing on young tourists in the city

2. Value Experience Hospitality linked with

Holiday Resort’s premium brand at

attractive price

3. Offerings

High quality services and treatment mix for all

needs

4. Benefits Smooth and gradient

skin Relaxation & revitalization

5. Alternatives & Differentiation

Expertise treatments & innovative

methods .Branded beauty products

6. Proofs

Proliferating skin, Rejuvenating Experience

5. Alternatives & Differentiation

6. Proofs

Lemonade’s creates a memorable experience that the market values most, the refreshment of body and mind.

Communication Strategy to create interest among customers

End user target market i.e the tourists will be influenced with online engagement prior to arrival and pushed once they check-in. Achievable share of voice of 75%

Influencers  • Referral  code  &  Return  mailer  • Discount  vouchers  • Short  podcasts  on  TV’s  at  the  resort  • Cross  selling  with  in  house  restaurant    

Partnerships  • Collaborate  with  online  booking    portal  to  offer  privileges  

• Cross  Promote  with  other  budget  hotels  with  no  SPA  

Direct  CommunicaFons  • InvitaCon  Calls  to  in  house  guests  • Email  adverCsement  along  with  the  reservaCon  vouchers  

• Facebook  &  Trip  advisor  Page  engagement  • Website      

Media  CommunicaFon  • Local  TV  ad  • Discount  flyer  distribuCon  at  check  in  • Billboards  at  railway/bus  staCon    • Blogs  &  YouTube  channel    

PUSH    communicaQons  

PULL    communicaQons  

Exhibit  :  Faceb

ook  &  Trip

 adviso

r  page,  Distrib

uQon

 Flyer  

Marketing performance and budget timeline plan

2014  2015  2016  2017  

55.00  66.00  

79.20  

95.04  

Sales  g

rowth  ra

te  

($  000’s)  

Actual    MarkeFng    Plan  

MarkeFng  Investment   Sales   NMC  

MarkeFng  ROS  

MarkeFng  ROI  

Influencers    =2000$   $15000   $3268   19%   183%  Partnerships    =$2000   $15000   $3668   24%   183%  Media  CommunicaQon    =  $5000   $20000   $4891   22%   98%  Direct  CommunicaQon    =  $2000   $45000   $11005   27%   550%  TOTAL    =  $11000   $95000   $23232  24%   211%  

Marketing campaigns projected annual sales growth will result in $66000 in 2015 and future growth of $95000 by 2017 burgeoning our customer served and market share

Lemonade’s  sale  will  exponenQally  rise  in  long  term  with  immediate  markeQng  strategy    

BIBLIOGRAPHY  •  Mayfair  Hotels  :hhp://www.mayfairhotels.com/mayfair-­‐puri/spa.html    

•  Lonely  Planet  India  :hhps://books.google.com/books?id=vK88ktao7pIC&printsec=frontcover#v=onepage&q&f=false    

•  Toshali  sands  resort  &  spa  :hhp://www.toshalisands.com/ayurveda.html    

•  Hotel  santana  :  hhp://www.indiasantana.com/relax.html  The    

•  Chariot  resort  &  spa:  hhp://www.thechariotpuri.com/spa.html    

•  Ayurved  school  :  hhp://www.panchakarma.com/gopabandhu-­‐ayurved-­‐mahavidyalaya-­‐puri-­‐orissa-­‐p-­‐504.html    

•  Ayurshree  Spa  :  hhp://www.lonelyplanet.com/india/orissa/puri/acQviQes/health-­‐wellness/ayurshree-­‐spa  hhp://  

•  JustDial.com  www.justdial.com/Puri/Ayurvedic-­‐Treatment-­‐Centres-­‐For-­‐Massage/ct-­‐10030315    

•  Orissa  tourism  policy  and  staQsQcs  :hhp://orissatourism.gov.in/portal/Portals/0/pdf/StaQsQcs%20at%20a%20Glance.pdf  

•  Company  Financials    

•  Lemonade  spa’s  POS  reports  

Exhibit  1:  DistribuQon  Flyers  

Exhibit  :  Menu  Pricing   Exhibit  :  Discount  voucher  

Exhibit  :  Tripadvisor  Page  

Exhibit  :  Facebook  Page  

Exhibit  :Sale  Report  and  discount  redemption  

anita  15%   laxmidhar  

8%  

pintu  19%  

sachin  18%  

sunita  19%  

urmila  21%  

TREATMENTS/SERVICES  

Exhibit  :Employee  Productivity  

Exhibit  :  Guest  Assesment  Form  

Guest  Feedback  Form  

Exhibit  :  Average  Temperature  in  Puri  Exhibit  :  Demographics  of  Puri