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Evoe Spring Spa

Essay by   •  February 4, 2018  •  Case Study  •  1,829 Words (8 Pages)  •  947 Views

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MARKETING MANAGEMENT

GROUP ASSIGNMENT – 1

PGPM Class of 2018

Division – A

Group Name – A7

Group Members:

Ashwini Kumar

Dhani Savla

Divay Jain

Nilesh Singh

Ritayan Chatterjee


Group Assignment - 1        MARKETING MANAGEMENT – 1                                Group – A7

EVOE SPRING SPA – A POSITIONING DILEMMA

Genesis Of Evoe Spring Spa:

Gopal Raman, Anil Kumar and Sumit Gupta – former employees of multinational corporations (MNCs) had planted the seed of Evoe Spring Spa in August 2010. Stressful corporate jobs and frequent travel had them longing for a relaxing massage. Despite their well-paying jobs, they could not afford the exorbitant prices charged for regular massages at those plush hotels they stayed at while travelling.

The basic premise for their venture was:

  1. Indians’ increasing need to de-stress; and

  1. Their belief that spa visits could become part of the consumers’ lifestyle, if spa services could be made more affordable and if they could address cultural barriers associated with Spas. 

“Evoe” was chosen as the name of the venture, which is an exclamation invoking Dionysus, the Greek God of Revelry.

Indian Wellness & Spa Markets – A Snapshot

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WELLNESS MARKET


2010 : INR 490 Bn

2013 (Expected): INR875 Bn

CAGR : 20%

Curative & Preventive

Physical Enhancements

Beauty Care

Therapies

(Cosmetic Treatment, Slimming

(Salons & Parlours)

(Wellness food, Fitness

products & Services)

services, suppliments)

SPA Market

2010 : INR 4 - 5 Bn

Source: Pricewaterhouse Coopers’, “Wind of Change: The Wellness Consumer”

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Group Assignment - 1        MARKETING MANAGEMENT – 1

Group – A7

Indian Wellness Market And Spa Consumer Analysis:

As the Indian consumer continues to evolve, players will need to innovate in order to keep pace with ever changing needs and develop sustainable models for growth.

“Consumers used to view the spa as an indulgence. However, this is changing, and we are investing in educating them that there are tangible health benefits associated with spa treatments.”

-        Anurag Kedia, Director, The Four Fountains Spa

Barriers for Evoe:

  • The spa space in India was nascent.

  • While demographic changes in age and income, increase in health awareness due to greater media penetration caused a phenomenal rise in the wellness sector; there were several barriers to spa segment welcoming consumers.
  • Consumers often perceived spas as beauty salons or as massage parlors.
  • The perception of Spas as mere massage parlors has led to negative connotations.
  • Most Indian consumers with paucity of time during weekdays and pressure to balance family life.

Raman knew from his past experiences of defining and driving marketing strategy that choosing the right segments and finding a strong and relevant positioning were the most difficult decisions to be made, and hence, Evoe decided to pursue a four-stage sequential process to arrive at Brand positioning and consumer segments. This involved:

  1. “Understanding the Consumer” using focused group discussion (FGDs), which ensured diversity by including men and women, spa consumers and non-spa consumers in the age group of 25 to 55 years;

  1. “Identifying Consumer Segments” using positioning maps coupled with secondary research and observational data;
  1. “Consumer Value Proposition” in order to define core values Evoe stood for and building their brand step by step based on brand ladder concept; and
  1. “Positioning Choices” which were based on core values defined for Evoe.

Outcome Of Indian Wellness Market And Spa CONSUMER ANALYSIS:

As is evident from the analysis approach used by Evoe, the whole process can be termed as a

Segmentation, Targeting and Positioning (STP) Process. The outcome of FGDs and further analysis revealed the below mentioned four consumer segments:

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Group Assignment - 1        MARKETING MANAGEMENT – 1

Group – A7

1. Snails:

  • Guided by habit, convenience and affordability

  • Unwilling to make major lifestyle changes, except in case of ailment or evident medical condition.
  • Affordability a major concern and a key factor for decision making.
  1. Climbers
  • Mixed behaviors across age groups
  • The younger members showed an inclination towards experimenting and spending on new items. They had high aspirations and were influenced by celebrities and liked to emulate by following the same fitness regime.
  • Want instant gratification and to compete with peers.
  • Up for limited spending but are very careful regarding their spends
  1. Racers:
  • Typically urban adults above 25 years of age
  • Closely followed health and wellness information.
  • Relatively more brand conscious.
  • Inclined towards organic, wellness products and are quite modern in their outlook.
  • Willing to spend provided they were convinced about the benefits.
  1. Sprinters: 
  • Urban working professionals in the age group 25-49 years
  • Act as opinion leaders
  • Have high levels of awareness regarding global wellness programs
  • Perceive SPAs as a lifestyle statement – more of a high order solution for their general well being.
  • Belong to the extreme end of the spending spectrum.

Positioning Concept Choices For Evoe Spring Spa:

  1. Affordable Indulgence:

  • Spas, which were once the privilege of a few, were now being brought within everyone’s reach.
  • People broadly understood what spas were and if prices were lowered, many more people would be motivated to try spa therapies.
  • This positioning concept preserved the consumers’ perception of spas as “feel-good” experiences, but did not seem to convince consumers that this “once-expensive” experience was now available at an affordable price point.

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Group Assignment - 1        MARKETING MANAGEMENT – 1

Group – A7

  1. Affordable Health:
  • Emphasis on awareness of the scientifically proven health benefits of spa therapies.
  • This positioning concept was easier to communicate considering health was taken seriously by the target consumers and was a tangible proposition, however, in this approach, delivery of a serious health benefit was required to attract new users.
  1. A Little Vacation:
  • A different vacation experience - Spas as a vacation spot to relax.
  • This positioning concept assumed that consumers would be amenable to different kinds of vacations to seek rest and relaxation. Only served an answer to a segment of users who prioritized “being with family on a weekend”.
  • The proposition was built on existing need for vacation such that the entire family could go to a spa retreat closer to home for a vacation. However, the challenge was to change the attitude towards vacations and the frequency of vacations.

QUESTIONS:

1.  Which Segment Is Most Appropriate For Evoe Spring Spa To Target And Why?

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Market Consolidation

Market Extension

(Low Risk)

(Moderate Risk)

Sprinter, Racer

Climber-Young population

Ansoff Matrix

Product Development

Diversification

(High Risk)

(High Risk)

...

...

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