Day Spa Marketing Plan

Industry Overview:

There are an estimated 12,100 spas throughout the United States. In the U.S. the largest spa category, accounting for seven of every ten spas, is day spa. Resort and hotel spas are the second largest, with club spas, medical spas, mineral spring spas and destination spas respectively trailing. Geographically speaking, the distribution of spas in the U.S. generally parallels that of the population distributions with the largest region being the North East.

According to the ISPA (The International SPA Association) in 2003 there were approximately 136 million spa visits made in the U.S. Sixty percent (60%) of these visits were to day spas while 27% were to resort and hotel spas and the remaining 13% were spread across the four other types of spas. The U.S. spa industry generated an estimated $11.2 billion in revenues in that same year. Fifty two percent (52%) of a spaÐ'ÐŽÐ'¦s revenue is gained from its treatment rooms. Despite being the largest segment, day spas, accounts only for just under half of that revenue at 49%

The Kline Group research suggested a strong growth (2003-04) in the spa market close to 11% from driving forces such as:

Ð'„Ð"Џ High levels of media attention

Ð'„Ð"Џ Increased number of product brands

Ð'„Ð"Џ Greater consumer awareness of market products/benefits

Ð'„Ð"Џ Lower price points relative to surgical and non-surgical procedures

Ð'„Ð"Џ Anti-aging trend continues

Between 2002 and 2004 studies from the ISPA concurred with an annual growth rate of 12%. Since its growth rate peak in 2000 at 51%, the number has gradually moderated.

As in any industry, demand is the driving force that determines how well the industry performs.

Competitive Profile:

With the largest population of day spas being located in the North East region the competition is tough but not unbeatable.

Top Competitors in DaiSpaÐ'ÐŽÐ'¦s market include:

Ð'„X Elizabeth Grady, Framingham, MA

Hair, nails, body treatments, facials, make-up (direct competitor)

Ð'„X Paul Conzo Day Spa and Hair Salon, Worcester, MA

Manicures, Pedicures, Body Wraps, Hair, Nails, Spa Treatment Packages, Facials, Glycol Peels

Ð'„X Ardan Salon & Day Spa, Wellesley, MA

Nail Care, Micro Dermabrasion, Therapeutic Massage, Body Treatments, Waxing, Facials, Hair Care, Hot Stone Massage.

Ð'„X Serene-Scape Day Spa and Salon, Marlborough, MA

Advanced Skincare, Body Wraps, Body Scrubs, Facials, Gentlemen Services, Make up Services, Manicures, Massage, Maternity Services (pregnancy massage), Reflexology, Waxing, Yoga.

S.W.O.T. Analysis:

Strengths:

Ð'„Ð'« Strong relationships with suppliers of beauty products that offer credit arrangements, flexibility, and response to special product requirements.

Ð'„Ð'« Excellent well trained staff, offering personalized customer service.

Ð'„Ð'« Location: providing an easily accessible location for customers.

Ð'„Ð'« Environment: providing an environment conducive to giving professional service in an attractive, relaxing atmosphere.

Ð'„Ð'« Convenience: offering clients a wide range of services in one setting, and extended business hours.

Ð'„Ð'« Reputation: reputation of the owner and other technicians as providing superior personal service.

Ð'„Ð'« Great referral benefits for clients.

Ð'„Ð'« In-store complimentary juice bar and refreshments.

Ð'„Ð'« High client loyalty.

Weaknesses:

Ð'„Ð'« Access to capital.

Ð'„Ð'« Cash flow will be unpredictable.

Ð'„Ð'« Have no current client base.

Opportunities:

Ð'„Ð'« Growing market with a significant percentage of our target market unaware that of our companyÐ'ÐŽÐ'¦s exsistance.

Ð'„Ð'« Continuing opportunity through strategic alliances for referrals and marketing activities.

Ð'„Ð'« Benefiting from high levels young professionals in the area.

Ð'„Ð'« Continuing awareness of spa industry and its importance to health.

Ð'„Ð'« Increasing sales opportunities beyond our 20-mile target area.

Ð'„Ð'« Internet potential for selling beauty products to other markets.

Ð'„Ð'« Expansion into other markets.

Threats:

Ð'„Ð'« Competition from a current high profile day spas.

Ð'„Ð'« Salary commission structure of employees.

Ð'„Ð'« Dramatic changes in economy.

Ð'„Ð'« Potential new competitors in the area

Target Market:

Our target market is primarily the Natick/Framingham residents and employees. This is a moderately aged market with a great deal of potential to build among younger clients.

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