Spa Wellness Industry

7/27/2019 Spa Wellness Industry

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IndexChap.

No.Chapter Name Page No.

1 Introduction to Wellness Industry 1

2 Human Resource (People) 12

3 AVARNA Services 14

4 Marketing and Promotion 27

5 Financial Aspect 33

6 Future Prospects 37


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Chapter 1Introduction to Wellness Industry

In 19th century, Herbert Spencer coined the phrase survival of the fittest. Cut to 21st century and it

wont be an exaggeration if we just tweak the phrase a bit and term it, survival of the prettiest. In our

country, the fixation with looking good as well as feeling great has grown by leaps and bounds in just

about a decade or so. No wonder then that the beauty industry is worth Rs.12, 600crore today and is

growing at approximately 30 per cent every year. Beauty along with wellness ranks just next to health

which is a $3 trillion industry in India.

This rapid growth has come from higher purchasing power, the advent of foreign television channels,

changing lifestyles, greater awareness of treatments and more jobs where the appearance counts. The web

of the wellness and beauty industry has grown at such a rapid pace that parlours around the cornerhave been transformed into new-age makeover centres, style hubs and fitness temples.

Given the scope of this sunrise industry, anyone who opts for a career in it will positively have no regrets

to talk of. The beauty industry not only offers a range of careers from the high-end super specialty jobs to

the more basic skilled ones, but is also expected to generate 23,000 new jobs by the year 2014.


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Dietetics, cosmetology, dermatology, cosmetic surgery, image styling, make up and hair styling are some

of the many options that one can choose from in the beauty industry. Not only are the pay packages more

than satisfactory, the growth rate of this industry is bright enough to be confidently banked upon.

For example, in 2002, there were around 2,000 dermatologists in the country, the number has more than

doubled today. The starting salary of a cosmetic surgeon, to quote another example, can go upto

Rs.50,000 when working with an organisation and in established independent practice, one can quote

his/her price.

Coming to the wellness industry, it wont be inappropriate if we term it as life-infusing for our stress-

laden lives. Spas, yoga ashrams, fitness centres and alternative therapies like ayurveda, reiki, acupuncture

and naturopathy all come under the canopy of the wellness industry and have immense potential as

careers.

Naveen Gaur, CEO, Amatrra Spa, says, I expect the wellness industry in India to grow almost ten times

in the coming years. He further adds that Peoples lifestyles have forced them to look at wellness.

Getting pampered and feeling good are still on the list, but of primary importance is the desire to get

relief from lifestyle ailments like insomnia, hypertension and so on. While the global fitness industry is

over $ 300billion, growing at rate of 10 per cent annually, the Indian industry is about Rs.300 crore but

growing at 40 per cent. Both the beauty and wellness industry are set to expand exponentially. So make

up your mind.


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Opportunities in Wellness IndustryCosmetologist - Background in science and human anatomy suffices for cosmetology (starting monthlysalary is Rs.15,000-40,000). Cosmetic surgery (Rs.50,000 upwards) and dermatology (Rs.10,000-20,000)

require a degree in medicine followed by a specialisation in the desired area.

Fitness instructor Can join a reputed institute to become a yoga instructor (10,000-15,000), or a gymtrainer 7,000-20,000). After completing programmes ranging from a few months to three years you can

become a certified trainer. You may be catering to individuals or small groups depending on area

requirements.

Dietician - A dietician or a nutritionist (Starting salary Rs.10,000-25,000 per month) needs to have ascience background with knowledge of biology, chemistry and microbiology. A PG diploma, if not

masters, is the minimum required qualification in this field. An ability to empathise also comes in handy.

Stylists - Turn into an image consultant (Rs.15,000-no upper limit) and all you need is an eye for fashion,style and design. No formal education is required. To be a make up artist (Rs.7,000-35,000) or a hair

stylist (Rs.8,000-15,000) all you need is professional training from a credible institute.

About the Spa and Salon:

The ancient concept of a spa (literally, Sanitus Per Aqua in Latin orMineral Spring) revolves around the

therapeutic powers of water fortified with the powers of minerals (primarily zinc, magnesium and iron)


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Spas are the most frequents and sought- out destination, thanks to the feel good -factor they engender.

Mineral springs in ancient times were renowned for their therapeutic values, especially in Rome where

hundreds of Roman baths did double duty as bath houses and health centres.

Over time, resorts and accommodation mushroomed around these springs where people congregated.

However, at this stage these spas were still therapeutic .Gradually, more and more people started

thronging these spas to tackle stress and lifestyle related disorders.

Where these were no natural springs, canny entrepreneurs build mind-body rejuvenation centres and

fitted them with modern gadgets. And voila..!! the modern spa was born.

Today, many good salons across the world offer a day spa facility- with or without wet services (Jacuzzi

sauna- steam) as people are scrunched for time to visit a real spa. Here, they can detox, de-stress and

rejuvenate themselves without bothering to leave town.

Key trends in Spa & Salon:As Global players in the Hospitality sector expand across Indian cities, accompanying them are the spa

and the body treatments firms that expect an immense growth potential in the country.

Growing demand of medical spa is also noticed in the last few years. The people are more vibrant to

experiment various massage therapies, and exploring hidden healthy treatments. Foot massage, body

massage, neck and back massage and other exfoliation therapies are among the most popular services.

While body treatment and massage, which are integral aspects of spa , and not new for Indians as they

have known similar techniques from ayurveda, the very concept of spas is expected to boom the ayurveda

massage segment as well.

The Swedish massage, German body treatment and Thai massage are the most popular therapies across

all spa centres.


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The most targeted customers for the sector were females but with the changing trends and growing

wellness and health consciousness, the new targeted customers are men a segment which is registering

about 80% growth annually.

In India, a spa treatment is considered to be a luxury, with the increase in disposable incomes and

increase in accessibility due to the growth of spa across the country, a spa treatment has become

affordable to the rising middle class.

Key

Trends

Targeting

teens and

men.

Foreign

players

entering the

market.

Growth in

Medispas.

Increasing

affordability,

no longer a

luxury.


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Types of Spas: Ayurvedic Spa, a spa in which all treatments and products are natural and it's often used as

alternative medicine.

Resort/Hotel Spa- It is located within a resort or hotel. It offers spa services, fitness classes and spacuisine alongside less health choices like steaks and burgers. It's a good choice when one person

wants spa and the other golf. It also works for business travellers and families. Cruise ship spa, a spa

aboard a cruise ship providing professionally administered spa services, fitness and wellness

components and spa cuisine menu choices.

Day spa, a spa offering a variety of professionally administered spa services to clients on a day-usebasis.

Dental spa, a facility under the supervision of a licensed dentist that combines traditional dentaltreatment with the services of a spa.

Destination spa, a facility with the primary purpose of guiding individual spa-goers to develophealthy habits. Historically a seven-day stay, this lifestyle transformation can be accomplished by

providing a comprehensive program that includes spa services, physical fitness activities, wellnesseducation, healthful cuisine and special inteAvarna programming.

Garden spa, an outdoor spa used for bathing and self cleansing Medical spa, a facility that operates under the full-time, on-site supervision of a licensed health care

professional whose primary purpose is to provide comprehensive medical and wellness care in an

environment that integrates spa services, as well as traditional, complimentary and/or alternative

therapies and treatments. The facility operates within the scope of practice of its staff, which can

include both aesthetic/cosmetic and prevention/wellness procedures and services. These spas

typically use balneotherapy, employing a variety of peloids.

"Balneotherapy treatments can have different purposes. In a spa setting, they can be used to treat

conditions such as arthritis and backache, build up muscles after injury or illness or to stimulate the

immune system, and they can be enjoyed as a relief from day-to-day stress."]


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Mineral springs spa, a spa offering an on-site source of natural mineral, thermal or seawater used inhydrotherapy treatments.

Mobile spa, a spa which provides services at home, hotels, or wherever you are.

Reasons to visit a Spa & Salon: Relaxation or stress relief Pamper oneself Feel better about oneself Result of gift certificate Improve mental health Improve physical health Improve appearance Celebrate special occasion

ResearchIn the initial planning of the companys strategies, we need to identify the important aspects of

marketing. We need to target the right market place, with the right amount of price, have some of the

effective promotional strategies which will help us to make place between the people. We need to keep in

mind the budget that we are investing into the new venture and what kind of returns do we expect for

our efforts. The location was selected taking into consideration its proximity to residential areas, the

University of Pune and it is also close to the business centre.


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Introduction to Avarna Spa & Salon:

Our spa & salon is named AVARNA Spa & Salon. AVARNA, which means Nature, is a boutique place

that you can relax by having masseurs to give you a massage in stylish types of rooms. The reason that we

provide different type of rooms is because we want our customers to feel excited every time they visit us.

New atmosphere gives more potential for customers to try more than once if the service quality is in the

level that satisfies customers. Our spa focuses on providing many types of treatments for individuals,

foreign tourists, and business people who want to release the stress.

AVARNA Spa & Salon aims to be the premier Spa & Salon in Pune in the near future. Through a unique

combination of offered services and products, we will quickly gain market share. AVARNA Spa& Salon

will provide customers with a relaxing, rejuvenating atmosphere where all of their mind and body needs

can be met.

This business plan provides detailed financial information; it includes the basic strategic information

necessary for initial establishment and operation of AVARNA Spa & Salon. This document outlines the

tactics for business growth, methods, procedures for operation, and infrastructure management.

Address:- 91, Supreme Centre, ITI Road, Aundh, Pune, Maharashtra 411007.

020 2589 6647


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About the Company

AVARNA Spa & Salon offers a wide variety of mind and body healing services and products. The salonaspect of the business provides both males and females with any type of hair styling services. The spa

business is devoted to providing various services including massages, body works, and energy works. This

is all done in a relaxing, serene setting. AVARNA Spa & Salon is a start-up, up-scale beauty salon and spa

located in Aundh, Pune. We offer a full range of hair care, skin care and spa treatments for the whole

family. Our professional and personable staffs strive to offer you nothing but the best customer service,

products and treatments available. We focus on making each customers visit with us enjoyable, fun, and

relaxing.

AVARNA Spa & Salon's hours of operation are Sunday through Saturday 10:00 a.m. to 10:00 p.m. We will

process all online appointment requests within 24 hours. No personal information will be sold to any

third party under any circumstances. We are centrally located near businesses and residential

neighbourhoods at Aundh and thus our target audience will be middle class and upper middle class of

this area. We believe that this is critical to our initial success and long-term growth.

Why Aundh??Aundh is an affluent suburb in the North-West ofPune inMaharashtra, India. It is known for its poshlocalities. Since around mid-1990s it has developed significantly as a residential area with proximity to

the University of Pune, the Governors house and one of the Software Technology Parks of India

atHinjewadi. Aundh can be divided into the old Aundhgaon and the newly constructed suburban areas.

This clearly states that reaching the working class, residential class, housewives, middle class and upper

middle class would be possible only through being at the epicentre of Aundh.
http://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/University_of_Punehttp://en.wikipedia.org/wiki/University_of_Punehttp://en.wikipedia.org/wiki/Software_Technology_Parks_of_Indiahttp://en.wikipedia.org/wiki/Hinjewadihttp://en.wikipedia.org/wiki/Hinjewadihttp://en.wikipedia.org/wiki/Software_Technology_Parks_of_Indiahttp://en.wikipedia.org/wiki/University_of_Punehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Pune


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MissionAVARNA Spa & Salon will provide a comforting, yet stimulating, atmosphere in which customers will be

able to relax both their body and mind, reconnecting their daily lives to their true purpose through a

wide range of services including massage, body works, energy works, and hair styling. AVARNA Spa &

Salon will establish itself as a dependable destination to which they can always come to escape the stresses

of life, and rejuvenate their energies, their souls, and their lives. We look forward to making you look and

feel fantastic!

VisionIt is our vision to enhance our clients natural beauty from the inside out. We see ourselves as

providing avant-garde beauty and wellness services at all times. Hence, we aim to make the everyday

ordinary as extraordinary.

Keys to Success:1. Quality and skilled employees familiar with energy work and oriented to a soothing spiritual

disposition.

2. Establish trust within the community that each customer's needs will be taken care of during every

visit.

3. Easily accessible location.4. Effective advertising.


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Chapter 2Human Resource (People)The cornerstone of the personnel plan is to maximize productivity and minimize the labour burden on

the companys operating expenses. As we grow, we expect to see steady increases in our personnel to

match the increase in sales.

Important considerations related to employees Our employees will take a good care of clients and do everything to satisfy clients. Every massager is well-trained, before massagers are accepted by our organization, they need to

be trained at least 3 months.

Every six months, every massager has to participate in training programs such as body massage,facial massage, foot spa, and hand spa.

We will provide the English course once every week after work so that every employees andcommunicate with our foreign clients.

Every employee must have good manner and be very polite to our clients

Avarna Spa & Salon (HR Bifurcation)SPA

2 owners who are well

experienced in the field.

1 external experienced

employee.

5 freshers who will also be

trained from time to time.

SALON1 owner who is well experienced

in the field.

1 external experienced

employee.

4 freshers who will also be

trained from time to time.

EXTERNAL AFFAIRS2 owners would take care of

other external affairs such as

marketing, R & D, etc.

There will be 2 staff members

involved in house keeping.

1 receptionist.


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The employees of the month will be voted in order to motivate our employees The prizes will be given to the employees of the month as well The manger will be responded in everything in the spa and also has the right to make any

decision in the emergency cases.

The receptionist is responsible for receipt of payments and ensuring that the accounts aremaintained properly at the end of the day.

Motivating and Retaining Staff

Maintaining regular communication with employees-Our spa will give out the internal newsletter for our

employees every month, including memo, bullet

board, or meeting to motivate our employees.

Complimenting-We also give a reward for the employees of the month.

Setting Clear Objectives and performance standard-Our employees must understand clearly about the mission and objective so that they can provide services

to our customer and the same level or better than the setting standard.

Advancement Opportunities-Our Spa will provide training courses to our employees. For masseuse, first we will provide them the body

massage course, then when they know everything about body massage, and can work effectively, so will

move up to the next level which is facial massage.


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Chapter 3AVARNA Services

AVARNA Day Spa will provide customers with personal beautifying and relaxation services and

complimenting products, as well as guiding in specific forms of energy work.

Salon services

RATE CARD OF AVARNA SALONSALON

Service Time in minutes Rate

Hair Salon Services Haircuts (wash, cut / style) - 150 onwards Hair Colouring and Highlights - 500 onwards


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Hair and Scalp Treatments. - 750 Hair shampoo and Conditioning. - 250 Hair Relaxers and Perms. - 1000-1200 Hair Curling, Reconstructing and Weaving - 1000

Nail Salon Services Manicures - 200 onwards Pedicures - 250 onwards Hand conditioning - 350 Nail repair and sculpting - 400

Facial Quick Results Facial 45 600 Customized Facial 45 800 Stress Relieving Spa Facial 45 1000 Oxygenation Facial 45 1300 Powerful Surface Peeling Facial 45 1350 Pumice Peel Manual Micro-dermabrasion

Facial

45 1400

Other Salon Services Acne-clearing Treatment Facial 45 1050 Bleaching 30 400 Waxing 50 onwards Threading 35 onwards


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Hair Salon Products: Shampoos.

Conditioners. Extra hair treatment. Pre-styling products. Hair styling products. Hair finishes. Brushes and hair tools.

Skin Care, Nail and Beauty Products: Face skin care products. Body skin care products. Makeup. Makeup tools. Nail polish products. Nail finish products. Nail tools. Perfumes. Bed and bath products.


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Spa services:Today's busy, modern world offers many advantages but is at the same time a challenge for the human

mind and body. Constant stress and pressure weigh heavy on our minds while long sitting and workinghours as well as a permanently wrong posture give strain to our body. While a lot of people are

disappointed with the treatment that allopathic medicine offers, those who have experienced Spa

Treatments and procedures are often convinced by the results: they feel better, muscles could relax, strain

and stress was lifted and pain could thus be reduced.

Aromatherapy

This word Aromatherapy comes from the fusion of two words- Aroma which means smell and therapy

which means to cure.

Reportedly founded in 1937 by a French research chemist, "the art of aromatherapy" remains popular in

European countries and has now gained complete acceptance in today's spas.

Aromatherapy lays a great stress on the usage of essential oils. These oils are extracted from the plants bythe methods of steam distillation and cold-pressing of flowers, fruits, bark and roots.


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Aromatherapy massage is particularly suited to conditions involving stress or improving emotionally-

related conditions.

Stress and stress-related conditions such as insomnia Headache Digestive disorders Premenstrual syndrome (PMS) Back pain

Each essential oil has different healing properties. For example, some calm while others energize. Here

are some widely used essential oils and their properties:

Calming chamomile, lavender, geranium Uplifting ylang ylang, clary sage, rose, neroli Energizing rosemary Cleansing rosemary Decongesting eucalyptus, pine, tea tree

Aromatherapy services offered:Cosmetic aromatherapy is the usage of essential oils for cosmetic

purposes. You can use them to improve the look and feel of your skin and

hair care. This type of treatment is very popular in salons and parlours.

Massage aromatherapycombines the powerful soothing effects ofmassage with the benefits of aromatherapy.

In this method a mixture of essential oils is made and is massaged on the

body by expert masseur. It is an excellent healing method. Aromatherapy

massage releases the powerful emotions in the body thus healing you

completely without the side effects.
http://altmedicine.about.com/od/headache/http://altmedicine.about.com/od/digestivedisorders/http://altmedicine.about.com/od/premenstrualsyndromepms/http://altmedicine.about.com/od/chronicpain/http://altmedicine.about.com/od/chronicpain/http://altmedicine.about.com/od/premenstrualsyndromepms/http://altmedicine.about.com/od/digestivedisorders/http://altmedicine.about.com/od/headache/


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Olfactory aromatherapyworks by spraying the essential oils in yoursurroundings either by diffusion or inhaling. To enjoy the benefits of olfactory

aromatherapy by inhaling, rub a tiny amount on your handkerchief or on the back

of your palms. You can also mix the essential oils with distilled water and spray it in

the air to enjoy the fragrance.

Ayurveda Massage Therapy

Ayurvedais a gift to the world from Gods own country, Kerala. Located in the subcontinent of India,

Kerala is the seat of all Ayurveda learning and practice.

Our ayurveda body treatment will drive away all physical suffering, control several dreaded disabilities,

ward off the middle age syndrome, retard the aging process and provide unlimited curative powers for

body and mind by repairing the worn out tissues, revitalizing the body, increasing memory power,

improving vigor and vitality and make oneself physically and mentally fit.


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Ayurveda Services offered:1. PIZHICHIL is a relaxing, soothing and rejuvenating treatment with

medicated warm oil used in a continuous stream for a definite periodfor the whole body (excluding head & neck). It is used to effectively

treat arthritis, ageing, general weakness, paralysis etc.

2. NJAVARAKIZHI is a whole body massage using medicatedmilk-porridge made into a bundle. It is an immune-enhancing

rejuvenation therapy and is made use of in recuperation periodof injury and trauma, muscular wasting, arthritis, general

weakness, paralysis etc.

3. ABHYANGA MASSAGEAlong with other massage techniques it is given to help the bodyexpel toxins from the body as quickly as possible. This is a full body massage with medicated oils

to balance specific conditions. The oils used contain herbs and ingredients that pacify the

unbalanced Vata, Pitta, and Kapha energies.

4. SHIRODHARA is a mixture of cooling and balancing herbaloils and medicated ghee is trickled over the forehead in a

continuous warm stream in a quiet, soothing atmosphere. This

is a special Ayurvedic treatment that gives total relaxation to

mind and body, and is the best way to pamper yourself after a

hard stressful day.

Our treatments include relaxing body to face massages that will add to the glow on your body as well as

on your soul and will leave you to look absolutely stunning. You can be rest assured that all these

treatments, massages and other Ayurvedic measures will satisfy you to your hearts content and leave a

smile on your face so much that you will crave for more!!!


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Hot Stone MassageThe hot stones are usually made of basalt, a type of rock that

is rich in iron, so they retain heat. River rocks are normally

used because they are so smooth - they have been smoothed

over time by the river's current.

The stones are immersed in water and heated in an electric

heating device until they are within a certain temperature

range. The stones may be placed at specific points on the

back, in the palms of the hand, or between the toes.

The warmth of the hot stones improves circulation and calms the nervous system.

People get hot stone massage for a variety of health conditions:

Back pain and aches Poor circulation Osteoarthritis and arthritis pain Stress, anxiety and tension Insomnia Depression

Hot Stone Services offered:1. LaStone: It includes, chakra balancing, clearing, hot stone

massage with a specific protocol, spinal layout, neck stones, chakra

stones, hand stones toe stones for balancing the elements and may

include sage burning. This uses basalt stones, marble stones,

Petoskey and or jade stones. Hot and cold stones may be used.


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2. Thera-Stone or Therapeutic Stone: Follows a traditional Hot Stone Massage protocol, but utilizesmore hand manipulation and other therapeutic modalities to take the massage to another level.

Thera-Stone massage may incorporate, stretching, articulation of the joints and trigger point into

the service.

3. Tibetan Himalayan Hot Stone Massage: The treatment drawson traditions described in the ancient Tibetan medical text, the

Gui Shi. The treatment uses 48 hot stones and fragrant

herbs and oil to relieve tension from the body. Hand-carved

by a monk in Katmandu, the soft river stones are marked with

eight auspicious symbols.

Applied to key points on the body, the heated stones create sensations of comfort and warmth;

expand blood vessels and calm the nervous system.

4. Euro Stone Facials:Warmed stones are used to diffuse the heat into the skin and to helparomatic oils penetrate deeper. It provides an immediate

release in the muscles of the face.

The benefits provide a deeper elimination of toxins and

blockages with a lymphatic draining massage. Skin

firmness and vibrancy is improved whilst reducing

redness with the hot & cold. It will provide deeper

relaxation of the muscles with the heat of stones and a synergistic approach with the aromatic

oil.

5. HotStonePedicures:A relaxing full pedicure for your feet followed by a hot stone massage onyour calves and feet.


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Thai yoga MassageThai massage is unlike other types of massage. More than

just a hand massage, the Thai version is more like a passive,

full-body exercise that resembles yoga postures. While

classic massage in the west are relaxing and therapeutic,

Thai massage also energizes the body and makes it more

flexible. Over the centuries, different kinds of Thai massage

have evolved in Thailand. Knowing the differences will help

you make the right choice should you decide to learn it for yourself one day.

Thai massage has the following benefits:

Relaxes Reduces Stress Improves circulation Increases energy Increases flexibility Improves range of motion Centers the mind and body

You are usually asked to bring or wear comfortable clothing to the massage. A typical Thai yoga

massage is a 60 minutes to two hours long.

Thai Yoga Massage services offered:1. Northern yoga Massage: The northern lineage rules Chiang

Mai in the north. The northern lineage is more relaxed and

gentle. Many of the Thai massage experts in the United States

today learned the art in Chiang Mai.


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2. Southern yoga Massage: The southern lineage,is predominant in Bangkok. The southern lineage

uses a stronger, more energetic style.

The standard massage routine is also performed in

a slightly different order in each lineage. Some say

that the southern style is better for therapeutic

massage, and the northern version for general

treatment.

RATE CARD OF AVARNA SPASPA

Products/Services Time in Minutes Price Hand Ritual (Spa) 45 mins 200 Foot Ritual (Spa) 60 mins 300 Body Scrub 60 mins 800-1200 Body Wrap 60 mins 800-1200 Fish Spa 30 mins 400 Lip-Conditioning 30 mins 350

Body TreatmentsAromatherapy

Cosmetic Aromatherapy 90 mins 800-1500 Massage Aromatherapy 90 mins 1000-1750 Olfactory Aromatherapy 90 mins 800-1200

Ayurveda Therapy Pizhichil 90 mins 1500-2000 Njavarakizhi 90 mins 1200-1700


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Abhyanga massage 90 mins 800-1200 Shirodhara 90 mins 800-1600 Chakra Balancing Massage 90 mins 900-1800

Hot Stone Therapy LaStone 90 mins 800-1000 Thera-Stone or Therapeutic Stone 90 mins 800-1200 Tibetan Himalayan Hot Stone Massage 90 mins 800-1100

Euro Stone Facials90 mins 800-1700

Hot Stone Pedicures 90 mins 800-1500Thai yoga Massage Therapy

Northern Massage 90 mins 1000-1800 Southern Massage 90 mins 1000-1900

ExpressA great way to work that one area that's giving you

trouble.

90 mins 1500-3000


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Spa Group EventsIf you are bringing a group dont forget to pre -plan spa arrangements for your guests. Our Group

Coordinator will be happy to ensure your spa appointments are scheduled, and that you and your group

are indulged.

Product levelCore productCore product is the products or services that customers are looking for. Our spa core product is providing

the sense of relaxation and relieve. We offer unforgotten memories to the guests which they would like to

come back.

Facilitation ProductWe will provide free hot drinks after the treatment, so customers are still relaxed mode. Moreover, we do

want customers feel relaxation but still in chic style, so we decorate our spa with many themes such as

water fall and the beach.

Augmented ProductThe sample aroma will be hand in to the first time guest, so they wont forget our spa and come back to

use our product.


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Chapter 4Marketing and Promotion

Spas & Salons rely on marketing and advertising to build a loyal customer base; because the bulk of

customers are local and so the promotional efforts should be designed to work for the community. As spa

& salon owner, we may not have the budget for large, lavish advertising and marketing efforts. For a

more manageable and affordable plan, we choose campaigns that are easy to manage and dont require a

large cash outlay.


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The listed are our different ways in which we will be marketing our products:

Online Presence:

We are using Web marketing as a means ofadvertising, because its powerful and it can be very effective,

and its here to stay. When researching spa options, consumers often start online. So we have maintained

an online presence to ensure that spa shows on search engines and have also build a simple website that

contains our contact information, location, list of services and prices. We have also increased our online

visibility by taking out digital advertisements in places customers will look local beauty blogs, local travel

websites such as snap deal.com, dealsonyou.com, dailydeals.com and social media sites like Facebook and

Twitter by including photos of the spa treatment rooms and detail location and contact information,

providing links to articles about spa-related topics like taking care of your skin, how to handle a first spa

visit. Another vital aspect of raising our visibility and exposure on Google is to get other sites to link to

our site. It's generally referred to as getting back-links or incoming links. This technique will bring us the

optimal benefit when the sites linking to us are well-established, have a similar theme to our site, or are

considered an "authority site". The ultimate authority sites from which to get links are health sites,

medical tourism, and other forms of tourisms.

Improve your online visibility Increase web site traffic Convert more web visitors into customers Build customer loyalty Ensure greater spa profit.


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Membership CardsPay RS1500/- and 4 people can become members on one card (can be family or friends) and all 4 people

can get20% discount on all services provided in the salon at all its branches every time they visit the salon.Penetration Pricing Strategy:Penetration pricing is setting a relatively low initial entry price, usually lower than the intended

established price, to attract new customers. The prices at AVARNA are comparatively less than the ones

offered by others as we have adopted Penetration Pricing Strategy.

In-store Advertising: -Show product demos or related videos.Offer beauty tips, healthy recipes, and discounts on your services.

Create an e-mail listGet regular customers as well as first-timers to subscribe

to mailing list for spontaneous promotions and unadvertised

specials. We even offer our guests a special deal on their

birthdays.

Happy HoursThere would be specific hours in the day during which people can avail discounts during those particularhours. Happy Hours will be for 2 hours a day, on Tuesdays.

Tie ups for College Festivals & Events:-College Festivals have gained importance in recent times and have also become a very important medium

to advertise. Right from the local shops to MNCs, everyone these days uses college festivals/events to

advertise their products. It is also economical as compared to other mediums of advertising.


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Weekly deals:Every 50thcustomer of the week would be given 40% discount.

.

Monthly deals:Every 100

thcustomer of the week would be served for free.*

Special discounts:Housewives:Providing discounts to housewives on weekdays between 3 to 6.Working class:Distributing discount vouchers to employees whose team

performance is the best and as well as individual performance.

Students:Sponsoring events of colleges and again distributing discount

coupons in the events.

Outdoor AdvertisingExpenditures on advertisement is considered as profitable investment. Advertising is a process which

makes goods and services popular. We can also say that advertising is a technique of influencing the

minds. Different mediums that we have used for advertising purpose are Radio, Magazines, Posters and

Cinema Slides.

Newspaper Advertising: -The reach of Newspapers is increasing & so is it becoming a very effective medium advertising,

everything, right from items of daily use to high end products is advertised. We will include our

brochures in the leading newspapers.


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Irresistible GWP offers:The acronym GWP stands Gift with Purchase. As the name

suggests, a GWP is an item that is presented to the client whenhe/she spends above a specified amount on beauty treatments or

skin care products. The Gift with purchase(free item) could be

anything from cosmetics, salon voucher, white plush slippers,

perfumes drawer liners, candle gift set, product samples, mini

fragrance oil etc.

Spin & Win:-Wheel of Fortune is a lottery device consisting of a wheel which is spun horizontally, Articles or sums to

which certain marks on its circumference point when it stops being distributed according to varying

rules. Customers availing services will be given a chance to spin the Wheel of Fortune & will be givendiscounts or offers as per what the wheel point towards. *

Other Marketing Options: Client Acquisition Corporate Programs New Generation Marketing Pre-opening marketing

strategies

Public Relations Client Retention Programs Holiday Promotions Measuring Your Marketing

Effort

Promotions and Events


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Porters Five forces ModelThe original competitive forces model, as proposed byPorter, identifiedfive forceswhich would impact on

an organizations behaviour in a competitive market.

These include the following:

The rivalry between existing sellers in the market. The power exerted by the customers in the market The impact of the suppliers on the sellers. The potential threat of new sellers entering the market. The threat of substitute products becoming available in the market.

Understanding the nature of each of these forces gives organizations the necessary insights to enable

them to formulate the appropriate strategies to be successful in their market (Thorsby, 1998).

Threat of new entrants- very high

Virtually no entry barriers. Any person can forey into

the business without complications.

Bargaining power of buyers- MediumAlthough its a high growth industry with stiff competition

within rival firms, there is no uniformity in product or

pricing.Operators price the offering as per the package. Hence

the end user has limited bargaining power when it comes topricing or bundling in all additional services.

Bargaining power of suppliers- HighCurrentlythere are very few suppliers of trained

manpower or products. These suppliers enjoy a

relatively commanding bargaining power.

Threat of substitute- Very lowThere is very low threat of substitute products. The

automated massage chairs and other products

available in the market do not in the real sense offer

any threat, as it cannot replicate the spa experience.

Rivalry within the industry- HighLargely localised and unorganised market. Hardly any players

with PAN India presence and operating with a corporate

structure. The industry is limited or no brand recall/ value.,

competition among firms int he industry is very stuff and at a

local level.
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Chapter 5Financial AspectInitial investment: Rs. 10 lakhs

Initial Cash DeploymentParticulars Amount

Rent Deposit Rs.1,00,000Legal charges Rs. 25,000

Equipments & Other Fixed Assets Rs. 2,00,000

Interior Cost Rs. 4,00,000

Working Capital Rs.2,75,000

Total Rs.10,00,000

Cost Budgets Monthly Rent for Premises: Rs. 50,000 Average monthly expense on electricity: Rs.30,000 Staffing: Average Monthly Budget

Employees

Salary per

employee

Total salary per

month

2 Experienced

Employees 30,000 each 60,0009 Freshers 12,000 each 1,08,000

2 House-keeping 6,000 each 12,000

1 Receptionist 10,000 each 10,000

Total 1,90,000


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Revenue Budgets From spa & salon services

Month

No. of

customers

per day

No. of

customers in

the month

Avg. amt spent

by each

customer

Revenue

generated for

the month

1st

month08 to 12 300 200 60,000

2nd

month15 390 300 1,17,000

3rd

month40 1040 300 603,12,000

4th

month

onwards

60 14,040 400 56,16,000

Total 61,05,000

From sale of other products: Rs. 50,000 Total revenue generated: Rs.61, 55,000


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Profit & Loss Account as on 31st December, 2012Particulars Amount Particulars Amount

To Material Consumed 3,00,000 By Sales Products Services 50,000

61,05,000

To Legal charges 25,000

To Rent 6,00,000

To Electricity 3,60,000

To Salaries 22,80,000

To Advertising & Marketing 5,00,000

To Salary to Directors 9,00,000

To Miscellaneous (Pantry

Supplies, stationary, repairs

etc) Expenses

1,80,000

To Depreciation 1,20,000

To Provision for Taxation 2,67,000

To Net Profit after tax 6,23,000

61,55,000 61,55,000

Balance Sheet for the year ended on 31st December 2012Liabilities Amount Assets Amount

Share Capital 1,00,000

Fixed Assets

Gross Value:

6,00,000

(-) Accumulated Depreciation:

1,20,000 4,80,000

Share Premium 9,00,000 Rent Deposit 1,00,000

Retained Earnings 6,23,000 Cash & Bank balances 10,43,000

16,23,000 16,23,000


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Tax = Net Profit Before Tax (NPBT) * 30%= Rs. 8,90,00 * 30%

= Rs. 2,67,000Profit percentage = NPAT/Sales * 100

=6,23,000/61,55,000 * 100

= 10.12%

Important Assumptions:All financials are projections and estimates, which are based on the following assumptions:

1. The business will continue to grow and receive the same success if not more

2. This industry will maintain its popularity, especially in major cities

3. Through new marketing techniques, the business will develop higher sales


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Chapter 6Future ProspectsWedding Day Make-Up and Styling

Let us develop an individual service tailored to the needs of you and your wedding party. Prices are based

on time and number of persons participating. Ask your Spa Concierge for details.

Documents

Spa Wellness Industry