Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
CHAPTER I
INTRODUCTION
Background of the Study
Around the world, there is growing interest in changing the way people
take care of themselves not just their bodies, but also their minds, spirit, society,
and planet. Most people would agree that a massage makes them feel good.
They believe massages can reduce muscle pains and stress, which can be a
heathier and better alternative than synthetic drugs or other forms of pain and
stress relief. It is a holistic approach that restores natural balance of the body,
thus, makes people feel better and helps them to perform their daily activities
effectively.
Many people also believe that going to a spa or massage center is just a
way of pampering or indulging themselves. It is a way of rewarding or treating
themselves after an exhausting task or work, or just a celebration and recognition
of their success. They see getting a massage as a practical approach to relax,
relieve tension, and de-stress.
In a consumer study presented by the American Therapy Association
(AMTA) in 2014, seventy-seven percent of individuals surveyed claim their
primary reason for receiving a massage was medical or stress related. These
reasons include pain relief, soreness, stiffness or spasms, injury recovery,
migraines, prevention, and general well-being.
As time goes by, reasons for getting a massage changes. Most people
believe that massage is not only a form of pampering. They perceive it to be
1
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
more than just for relaxation but also a great addition to a person’s health care
routine.
Further, according to Greenleaf (2013), a massage may help relieve mild
depression by releasing the tension, stress and anxiety that are often
accompanied by mild depression. It is believed that receiving physical touch can
change our bio-chemistry and lower our cortisol levels, our bodies’ stress
hormone. If our cortisol levels are too high on a regular basis it can lead to all
kinds of imbalance in our system, including feelings of depression. Massage
therapy can be a beautiful, natural way to regulate these hormone levels thus
creating a more relaxed, improved state in our overall mental and physical wellbeing.
There are an estimated of over 71,000 spa facilities worldwide, offering
such services as facials, body treatments, salon services, water-based
treatments, and health assessments – employing about 1.2 million people. In the
Philippines, as of end-2006, there were an estimated 87 spas operating in Metro
Manila alone, a figure 74% higher since 2003; and with those offering spa
services varying, as hotels and resorts jumped on the bandwagon, with 20%
spas located in hotels and resorts, and 76% of spas stand-alone day spas (Dela
Cruz, 2015).
Nowadays, a number of Spas and Massages are actively promoting and
working extensively on the further development of the industry by coming out
with specialized spa including eco-friendly spas, luxury spas, romantic spas,
pampering spas, stress management etc. In addition to this, to attract more
2
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
people and satisfy their demands, different spas are promoting variety of
wellness programs and treatments including healthy lifestyles, alternative
therapies, fitness programs, weight-loss treatments, detox diets, mineral and
thermal skin treatments, massage and yoga. The massage therapy has an
impact to tourism industry because people would love to travel also for the
benefit of their medical and health care. They usually visit a place where health is
being taken care of and at the same time enjoyed the attractions in such places.
Economic benefit also adds up to the impact of massage therapy because they
will pay taxes to the government and can encourage tourists to visit the place
(Atienza, K.L.T. et al).
According to International Spa Association (ISPA), an independent
research company specializing in the spa industry, Philippines hosts the largest
spas in terms of both indoor size and number of treatment. Filipinos are good in
preserving tradition as well as blending to others. Embracing to new stuff like spa
is finding never too hard, in fact crazing everywhere in the country, now being
enjoyed and patronized. Aside from the usual reason of clients going to Spa like
relaxation, other reasons also include health (recommended by physician),
beauty, detox and stress management, anti-aging and healthy skin, increase selfesteem and confidence, pain management, and a treat to self or others on
special occasions. Types of Spas already established in the Philippines are the
traditional Spas, Non- thermal Spas, Luxury Spas, Day Spas, and Retail Spas.
Based on the latest Annual Survey of Philippine Business and Industry
(ASPBI), there were 422 establishments engaged in the other service activities
3
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
sector, Almost 70 percent or 293 belong to personal services for wellness where
spa industry belong. The spa centers typically employ spa managers, spa
support staff, massage therapists, and spa hair stylists.
This study presents the status of spa business particularly the Banahaw
Heals Spa located in Balmores St. Koronadal City. Problems encountered by the
management, spa employee or attendants, and customers are identified to
provide useful recommendations not only on improving services rendered but
also giving ideas and ways to sustain the growing business. It would be a guide
for business decisions whether to expand, innovate and introduce, or adopt spa
products and services.
Rationale of the Study
Spa is known to be a place for relaxation for most of the millennial; thus, it
has been profitable for investors. The fast growth of the spas locally and
deregulation of many service industries has given the researcher the interest to
conduct the study.
One of the growing industries in the country is the health sector. According
to Herera, et. al. (2010) of the Asian Institute of Management, services under
health sector can be classified into either modern medical services or traditional
medical practices (such as massage, faith-healers, acupuncture, herbal clinics).
Due to poverty, most Filipinos in the provinces tend to subscribe to traditional
medical practices such as hilot (traditional Filipino massage), albularyo (Filipino
folk healers), and faith-healers. Traditional medical practices are also gaining
4
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
popularity among the higher income segment of the population. However, these
practices consist of herbal supplements, acupuncture, various Asian massages,
and well-being exercises.
The growing populace provides several opportunities to business in
different industries.
Increased number of buyers corresponds to increase in
demand. The global wellness movement opes doors for the wellness industry.
Other than the growing older, unhealthy population, heath systems are
failing to meet the challenges of caring for the health sector. The conventional
healthcare paradigm depicts a “sickness industry” which is characterized as
hospital-centered, fragmented and fragmenting care. This makes the medical
system fails or more and more people in need of such health care.
According to Eugenio, et. al. (2011), massage is the systematic
manipulation of soft body tissues through manual or mechanical means for
relaxation or therapeutic purposes. There are two general types of massage: oil
massage- a kind of massage that uses oil and other form of lubricants, such as
Swedish and Balinese massage; dry massage – massage that uses bare thumbs
and fingers. This occasionally uses powder instead of oil.
Spa industry is feeling bubbly with revenue that had reached more than
forty billion dollars in Southeast Asia. More people see spa as more than just a
place for relaxation but also it brings in profit (Downey, 2008). In order for spas to
be profitable business ventures in and of themselves, they need to be properly
planned and staffed, but of equal importance is the need for an exceptionally
strong, creative, on-trend and well-executed marketing plan (Singer, 2008).
5
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
The growing emphasis on wellness and sustainability, along with the
convergence of the health, travel and hospitality sectors, bears well for the
continued evolution of the spa industry. However, there are still many challenges
ahead. The global spa industry is still in its infancy and there is much work to do
to better define measures of well-being, document the benefits of spa therapies,
provide greater transparency and disclosure about the use of products and
services, and develop robust systems for evaluating spas ’financial, social and
environmental performance (Cohen & Bodeker, 2008).
Cohen and Bodeker (2008) said that spa concept goes far deeper than
pampering. Proprietors of both day spas and destination spas suggest that
wellness is a holistic process with many elements. To that end, some upscale
hotel spas are developing a wellness and prevention concept more familiar at
destination spas. Even within a busy hotel, the spa can be a place apart that
promotes health and wellness.
Although some guests seek out the full range of spa services, particularly
in destination spas, massages (including body wraps and facials) constitute the
largest portion of the day and hotel spas business at 73% in 2006 (Frietag,
2007).
The Philippines is the smallest market featured in spa Industry. However,
its spas had the highest number of treatment rooms on average. Over three
quarters of the spas were day spas. Strong growth is predicted over the next
couple of years. Thirty five percent (35%) of spas noticed there were more spas
opening in hotels, resorts and malls; an increase in the number of medical spas
6
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
was observed by thirty percent (30%) of respondents; twenty percent (20%)
stated spas were promoting more to tourists; An increase in natural products
used during treatments was noticed by twenty percent 20% of respondents
In South Cotabato alone, there is a wide following of alternative medicine
from stones to capsulated extracts of plants. This clearly indicates that people
nowadays are proactively responding in taking care of their health. With the
growing trend of proactively taking care of one’s health, there is an untapped
demand for spa and salon services in Koronadal City. This is based on the
concept that the services provided by spas and salons create a relaxing mode
and rejuvenation to an individual.
In Koronadal City, although there is a number of existing establishments
that offer massage services, there are no sufficient documents that are publicly
released which determine its status and current condition or socio-economic
contributions. This study will become one of the important references for other
researchers.
Understanding trends in the spa industry gives us foresight regarding
where things are headed, and also provides insight into the current state of the
industry itself (Cohen & Bodeker, 2008).
This study will be beneficial to Banahaw Heals Spa and to those people
who would like to invest in massage centers. By identifying the recent status of
the Spa industry in Koronadal City, the management and the investors will be
able to create strategic options to position their business well. It will guide them
7
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
as to what products and services to offer that would give them more opportunities
to grow and succeed. They will be informed of the trends in the local setting.
Data and other information from this study can be a good guide in
planning and implementing marketing strategies especially of the existing players
in the industry. They will be able to recognize significant issues that greatly affect
their operation. With this, they can formulate effective ways to minimize common
problems that exist in the establishment, and improve employee skills and
customer service.
8
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Objectives of the Study
This study aimed to determine the status and challenges of Banahaw
Heals Spa in Koronadal City.
Specifically it aimed to:
1. describe the profile of Banahaw Heals Spa.
2. present the internal analysis of Banahaw Heals Spa in terms of the
following
a) Organizational
b) Operational/Technical
c) Marketing
d) Financial
3. present the major players in the Spa Industry in Koronadal City in terms
of
a) Organizational
b) Operational/Technical
c) Marketing
d) Financial
4. set a 5 year-path Plan for Banahaw Heals Spa and recommend strategies
in term of the following aspects.
a) Organizational
b) Operational/technical
c) Marketing
d) Financial
9
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Scope and Limitation of the Study
This study is focused on determining the status and challenges of spa
particularly Banahaw Heals spa massage center in Balmores St. Koronadal City.
The key informants were spa owner/ manager, personnel, and clients.
The profile of the owners/ managers, personnel, and clients were
determined for the better understanding of their demographic characteristics.
Only the actual number of clients and personnel, the types of services
offered, the processing of business and accreditation, and the actual operation of
spa will be presented in selecting strategies for Banahaw Heals Spa.
The analysis of prospect of spas, and recommendations were derived
from the data and information provided by the respondents during the survey.
This study is restricted to the analysis of the data gathered through
interviews from respondents which include management and personnel of the
existing major players in the spa industry.
Research Design and Methodology
This study used the descriptive method to describe the situation of spa. It
employed a qualitative approach to determine different issues that have a direct
concern to massage center’s operation and management.
Respondents of the Study
This study used nonprobability sampling method. The researcher selected
purposive sampling because specific respondents were pre-determined and
consisted of spa owners/managers, personnel, and clients.
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Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
This study focused on determining the corporate strategy of the Banahaw
Heals Spa. Three sets of respondents were selected to address issues related to
management, employees, and customers to provide reasonable analysis of the
replies. The respondent’s information was requested to provide data through a
survey and interview to address the issues through this study.
Sample Size
Random sampling technique was used in determining the respondents.
The researcher selected and identified four (4) massage center owners/operators
or managers of the major industry in order to ensure a more relevant data related
to management and operations issues. Sixteen (16) employees or staff from
each of the spas were selected to provide more relevant responses related to
employee issues.
One hundred Eighty (180) responses randomly selected massage
customers represented the consumer-related issues. The breakdown of the
respondents for the survey was as follows; 75 working individuals, 20 students,
55 household and 30 self-employed. Thus, this study had an overall total of two
hundred (200) respondents.
Table 1. Respondents of the Study
Respondents
Spa owner/Manager
Staff/Personnel
Customers/Clients
Working individuals/Professionals
Students
Household
Self Employed
TOTAL
Size
4
16
75
20
55
30
180
200
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Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Research Instruments
This study used the following tools in gathering data and information.
a. Survey Questionnaires
A survey questionnaire was used to come up with specific
answers to the statement of the problem. This study used three (3)
different questionnaires. These questionnaires were intended for
(a) spa owner/managers, (b) employees, and (c) customers. The
questionnaires for each type of respondents would vary according
to the data needed to the study. Similarity in the three different
questionnaires is found on the first part which is the profile of the
respondent.
For the spa owner, questions are related to and lead
to the starting capital and different aspects of the company in terms
of marketing, operation, organizational, and financial is indicated.
For the employees, questions are related to issues they
encounter during the entire operations.
For customers, the questions used were about their
preferences in availing massage in spas.
b. Interview Guide
The researcher conducted personal interview with owners,
staff and customers of Banahaw Heals Spa to obtain information on
the profile of Banahaw Heals Spa.
12
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Data Gathering Procedure
Basic protocol was applied in the data gathering. A letter requesting the
company owners for the conduct of the study was sent. The personal interview
was conducted in the business areas determined by the respondents. The
interview made was dependent on the characteristics of the respondents. In any
case, the proponent maintained decorum and a degree of formality in order to
ensure that the information would be valid and reliable. The researcher ensured
that the demographic profile of the respondents of research questionnaire was
evenly distributed as to class, age and location.
1. Internal Data Collection. These were the information, facts and data
available from within a company’s’ information systems which consist of
the vision-mission goals and objectives and the company profile provided
by the management of Banahaw Heals Spa.
2. External Data Collection. These are the secondary data gathered from
selected respondents who were clients for this particularly study.
Significance of the Study
This study is significant to the following:
Entrepreneurs and managers of Spa
This study is very useful to entrepreneurs and managers for it provides a
better industry description of the massage service industry in the area. For both
existing and new entrants in the massage businesses, it is a useful basis in
analyzing the current condition and position of the industry. Entrepreneurs and
managers can decide whether to improve, innovate or introduce new products
13
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
and services specific to spa that will help strengthen their competitive
advantages through this industry analysis. This study will assist them in
formulating business approaches such as marketing and operational strategies.
The management will also be aware of the need of their employees. This will
encourage them to review and also evaluate their human resource training and
development programs.
Massage center employees
The study will become a tool for the employees to see areas to improve
and to satisfy customer needs. Also, employees will become aware of the things
that the management would like them to improve or work on.
Customers
With improved services by the employees, the customers will become
more satisfied. Customers’ perception of the massage centers’ products and
services will be identified in this study, thus, providing a good inquiry of
customers’ needs and concerns. The managers can decide how services will be
delivered to consistently meet and satisfy its markets’ needs and preferences.
Customer service and information can also be modified or improved if these
concerns are brought up properly.
Definition of Terms
In order to understand the study deeply, the following terms are defined.
Spa is an establishment for the promotion of well-being. Its main services
consist of massage and water applications, but may include steam, sauna,
14
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
exercise, nutritional and herbal therapy, dietary programs, yoga, meditation or
other professional services aimed at renewing the body, mind and spirit.
Day Spa is a spa offering a variety of professionally administered spa
services to clients on a day use basis including hair and beauty salons and
wellness clinics that shall offer at least one water treatment.
Massage is an external treatment for inner-wellness utilizing hands and
fingers or any part of arms and legs in the application of massage techniques
whose main component is to balance, rejuvenate and relax the client’s body.
Massage Spa is the term for an establishment that offers massage
products services and other related services. Other terms used by the industry
players include spa, massage parlor, massage spa, and massage hut, massage
house and others.
Massage Therapist is a trained and certified worker in the spa industry
that performs spa treatments or spa services for clients.
Traditional Massage is a massage treatment that has been inherited
from previous generations. This may be scientifically substantiated, but the belief
of aboriginal or indigenous local populations support the health benefits of the
massage. e.g. “Hilot”.
15
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
CHAPTER II
THE INDUSTRY
Spa Industry
The spa/ beauty and wellness Industry comprises of face and body
treatments to maintain, improve and enhance the skin. It also promotes overall
relaxation and well-being through the services provided by the particular spa. A
spa may also sell products to its clientele.
It is an establishment for the promotion of well-being. Its main services
consist of massage and water applications, but may include steam, sauna,
exercise, nutritional and herbal therapy, dietary programs, yoga, meditation or
other professional services aimed at renewing the body, mind and spirit.
According to Global Wellness Institute (2014), the $74 billion in spa facility
revenues in 2013 were earned by 105,591 spas. Because of their large numbers,
day/club spas account for the highest share of spa revenues, followed by
hotel/resort spas.
Day/club/salon spas offer a variety of spa services (e.g., massage,
facials, body treatments, etc.) by trained professionals on a day-use basis. Club
spas are similar to day spas, but operate out of facilities whose primary purpose
is fitness. Salon spas operate out of facilities that provide beauty services such
as hair, make-up, nails, etc. (GWI, 2014).
Destination spas and health resorts offer a full- immersion spa
experience in which all guests participate. All-inclusive programs typically
include, in addition to spa and body treatments, a myriad of other offerings such
16
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
as: fitness, mind/body, special diets and cleansing, personal coaching, nutrition
counseling, weight loss, preventive or curative medical services, etc. (GWI,
2014).
Hotel/resort spas are located within a resort or hotel property, providing
spa services on an à la carte basis to hotel guests and outside/local guests. Spa
treatments and services generally complement a hotel stay or a wide range of
other activities at a resort (GWI, 2014).
Thermal/mineral springs spas include day-use spa facilities and
destination/health resorts that incorporate an on-site source of natural mineral,
thermal, or sea water into their spa treatments, as well as thermal and mineral
water bathing or recreational establishments that offer spa services such as
massage, facials, hydrotherapy, etc. (GWI, 2014).
Medical spas operate under the full-time, on-site supervision of a licensed
healthcare professional, providing comprehensive medical and/or wellness care.
(GWI, 2014).
Services
A wide array of services is offered by spa such as massages, foot spa,
steam bath and other spa treatments. Massages range from Swedish, signature,
reflexology, aromatherapy and other Filipino healing modalities which are
acceptable massage treatments.
Spa business classifies its massage services into hard, moderate and soft
which pertain to the pressure to be applied by the massage therapist to his/her
17
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
customers. On the other hand, body packs exfoliation, body toning/contouring,
foot/face care fall under salon services or spa treatments.
Several hair styling services are provided by spa offering salon services.
Haircut, rebond, hair relax, and hair dye/color and other hair treatments are
services provided by spa to both male and female customers.
The services offered by spa industries are homogenous in nature.
According to the standard of Association of Southeast Asian Nations (ASEAN),
the spa industry is offering the same services. The difference lies on how they
introduce and market as well as on strategies they implore in terms of pricing,
establishment, location, quality and marketing.
The following are the services that are commonly offered by Spa
industries in Korodanal City.
Table 2.Services offered by Spa Industry.
Services
Average Prices
Spa Services
Body Massage
Swedish
Signature
PHP 200.00
PHP 250.00
Body scrub
Traditional Hilot
Foot Massage
Foot Reflex
Facial Massage
Package services (steam bath/manicure/pedicure& foot spa)
PHP 350.00
PHP 350.00
PHP 250.00
PHP 250.00
PHP 300.00
PHP 500.00
Ventusa
Salon Services
PHP 200.00
Haircut
Hot oil
Hair Dye
Manicure & Pedicure
PHP 50.00
PHP 100.00
PHP 350.00
PHP 100.00
Hair spa
Hair rebounding
PHP 200.00
PHP 1,000.00
18
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Industry Player
The Industry players are spas that legally operate in the City of Koronadal
that are registered with either the Department of Trade and Industry (DTI) or the
Securities and Exchange Commission (SEC), depending on the form of
business. In addition, the said spas have obtained the necessary business permit
from the local government unit of Koronadal City.
Actual Market and Potential Demand
Spa services are commonly availed of by middle and upper class
members in the society especially in not so urbanized areas in the country. It is
greatly observed that most clients are those from prominent families in the
society.
In Koronadal, females avail more salon services compared to males.
There is no age bracket as to who avails of the services. Frequent clients are the
young and middle aged working professionals
Spa customers in Koronadal are more of individuals composed of
businessmen,
government
agency
directors,
professionals,
tourists
and
“balikbayans” or OFW. Frequently, they avail of the services due to stressful
work conditions. Tourist and “balikbayans” go to day spas to relax from their long
travel and as part of their routine activities. Spa –goers commonly avail of the
service depending on the level of stress they experience at work or even at
home.
Lastly, there are some who undergo medical spa for treatment purposes
especially those who are suffering from injury.
19
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Market Characteristics
Market Size
Banahaw Heals Spa in Balmores St. Koronadal City offers its
services to individuals from 18 to 65 years old living in Koronadal City.
Projected level of market for massage services are taken from the city
population of 18- 65 years of age who constitute the voter’s population.
For Banahaw Heals Spa, an estimated of 60% of the voter’s
population is expected to be its market.
Table 3. Age Distribution in Koronadal City
Age Bracket
0-14 years
15-65 years
65 + years
Total Population
Population
41,686
133,256
4,727
174,942
Percentage
31 %
65%
4%
100 %
Source: Philippine Statistics Authority, 2015 Census of Population
Based on the newest data obtained from Philippine Statistics
Authority (PSA), the total population in Koronadal City is 174,942.The total
number of employed individuals is 66,764 or 38% approximately of the
total population from the age bracket of 15- 65 years old. The total number
of household is 173,900.
There is an estimated 25,000 population of student enrolled in
tertiary schools and vocational schools in Koronadal City for the School
Year 2018-2019 as monitored by Comission on Higher Education and
TESDA.
Department of Tourism in Region 12 reported that 3.157 million
tourists visited the Region 12. Lake Sebu Waterfalls and Zipline and the
20
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
beauty of Lake Holon are the most visited places by tourists. The
Municipalities of the Lake Sebu and Tboli do not have enough Hotel and
massage spas to cater to the needs for relaxation of tourist. Some of the
tourists prefer to stay in Koronadal City which gives additional market to
spa industries.
Actual Demand
The estimated actual demand was derived from the information
provided by the Banahaw Heals Spa, Industry player and the City
Treasury Office of Koronadal City. The average annual revenue according
to the owner is 540,000 or around P45,000 per month. If this will be the
benchmark of the annual income of all registered spa in Koronadal in
2017, the total estimated revenue is around P11,880,000. This will be the
basis in computing actual demand per service a day.
Accordingly, generated revenues are based from the following
customers: 60% from professionals/working individuals, about 25% from
household, 10% from students and 5% from spa-goers or walk-in
customers.
Table 4. Breakdown of Actual Demand Of Spa Per Customer
Category
Percentage
contribution
to revenues
Average
annual
services
availed in
spas
Average
price of
services
availed
Estimated
income
generated
annually
Working
Individuals/Professionals
60%
7,128,000
250/hr
324,000
Household
25%
2,970,000
180/hr
135,000
Students
10%
1,188,000
180/hr
54,000
Tourist/Balikbayans
5%
594,000
250/hr
27,000
Total
100%
11,880,000
21
540,000
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Table 4 shows the computation of estimated actual demand of services
offered by spas per client category in 2018. The average price of services is
based on the rate of existing players on the spa availed by each client.
Professionals or working individuals usually availed of signature massage and
Swedish, majority of households’ client availed of Swedish and also therapy
massage, Student only availed of Swedish and “balikbayans” or walk-in
customers typically availed of signature massage.
Assumptions are made in computing actual demand and will be
basis for the calculation of total demand.
1. Working Individuals or Professionals availed of six (6) spa and
salon services or 80 services yearly.
2. Tourist and “Balikbayan” availed of services during peak
session or vacation month with an estimated thirty (30) services
consumption yearly.
3. Households composed of senior citizen, self-employed, and
other family member is estimated to have sixty (60) services
consumption yearly.
4. Students are estimated to have consumption of forty (40)
services yearly.
Total Demand
The actual demand and the potential demand were both considered
as the total demand of Spa industry. The data on the estimated actual
demand can serve as basis in calculating total demand.
22
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
For the working individuals or professionals, the estimated actual
demand is only sixty (60%). Normally, the projected income from this
client is P324,000 annually. But with the increasing volume of business
establishment, the volume of demand from the working individuals will
continue to grow. Thus, P16, 691 or 25% of the total population of working
individual is considered as the projected demand annually.
For the household, P135, 000 or 25% is the estimated revenue
Since Koronadal City is still developing, only nine 9% of the total
population is projected as total demand.
For students, the actual estimated demand is 54,000 yearly. The
projected demand is 5% of the population of students in all colleges and
universities in Koronadal City.
For tourist and “balikbayan”, there is an estimated of 1200
projected demand yearly.
Table 5. Total Demand for Spa Industry
Category
Projected
Demand From
Total
Population
Average
Annual
Consumption
Of Spa And
Salon
Services
(hours)
Estimated Total
Demand
(hours)
Working Individual
Households
Students
Tourist and “balikabayan”
16,691 Individual
15,651 Individual
1250 Individual
800 Individual
80
60
40
30
1,335,280.00
939,060.00
50,000.00
24,000.00
Estimated Annual Demand For Spa Services
23
2,348,340.00 hours
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Market Share
Based on the responses given by the owner, the Banahaw Heals
Spa is able to render 32,500 hours of services yearly. This is 1.38% of the
total demand in Koronadal City.
MARKET/INDUSTRY CAPACITY
Actual Player
In Koronadal City, there are sixteen (16) spa establishments
registered as per city permit and licensing section that offer similar
services and operation of Banahaw Heals Spa.
Table 6. List of Legally Registered Spa in Koronadal City in 2018
Business Name
Araki Beauty Salon and Massage
Spa
Aroma Tropical Spa and Salon
Executive Spa and Massage
Hayahay Massage Spa
Healing Touch Massage and
Reflexology
Mandara Spa
Master J Reflexology
Precious Touch Reflexology
Tosca Hair Salon and Spa
Touch of Bliss Massage Spa
Twin R Salon and Spa
Crown City Venture
Mount Albo Massage Hut
Elegance Salon and Spa
Shanelle Massage And Spa
Koronadal
Ryan Rejuvenating Body Massage
Business Address
Pantua Village Koronadal City
Elan building, Gensan Drive ,Koronadal
City
Gensan Drive, Koronadal City
Ilao Bldg. Judge Alba St., Koronadal City
Gensan Drive, Koronadal City
Arellano St., Koronadal City
Gaisano Mall, Koronadal City
Bautista Bldg, Gensan Drive, Koronadal
City
SRT Bldg., Rizal St., Koronadal City
Lucena Bldg., Alunan Avenue, Koronadal
City
Abad Santos St.,Koronadal City
Alunan Avenue, Zone III, Koronadal City.
Gensan Drive, Koronadal City
Alunan Avenue, Zone III, Koronadal City.
Abad Santos St.,Koronadal City
Arellano St., Koronadal City
Source: Permit and Licensing Section, City Hall of Koronadal City.
24
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Spa establishments in the city are purposefully located within the heart of
the city. All establishments have prominent business signboard, flyers and
leaflets and any promotional items. They are easily recognized and located since
it can be seen in highways. They provide services especially massage services.
Also, some spa establishments offer salon services like haircuts, pedicure,
manicure and hair treatments.
Supply Capacity
Table 7.Supply Capacity of Spa Industry in Koronadal City
Services
Working
Hours
Massage Services
(Signature,Swedish,
8
Ventusa)
Salon Services
(Haircuts, Manicure,
Pedicure)
Total Service Capacity
Multiply by 52 weeks in a
year
Estimate
d
Rendere
d
Service
Time
(hourly)
Estimate
d
Capacity
Of
Rendere
d
Service
Average
No. Of
Therapi
st Per
Day
Service
Capacit
y Per
Day
Workin
g Days
Total Capacity
Service
1
6
20
120
7
840
1.5
4
15
60
7
420
1260
52
Total Estimated Service Rendered
No. of Spas
Annual Capacity of Spa Industry in
Koronadal
65,520.00
11
720,720.00
Table 7 shows the computation of actual supply capacity of the existing
spa establishments in Koronadal City. The estimated cycle time per services and
estimated capacity of therapist/beautician per service is based on the
specification of the services or the standard operation of every establishment.
25
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
The estimated annual capacity of the spa industry is 720,720 rendered
services. The average services rendered of spa industry in a day is shown in
estimated capacity of rendered services.
Distribution System
Banahaw Heals Spa offered its services in a direct sale channel or directly
perform the services to the clients. They contact their customers without
intermediaries through visits, text messages or social media and have complete
control over presentation of its products’ pricing and promotions. As they interact
with the customers, they eventually receive direct feedback on the product and
changes in marketing.
Major Player in the Industry
1. Shanelle’s Massage And Spa
The business started eighteen (18) years ago. It was put up solely by the
owner. The spa is located at Abad Santos St., Corner Posadas St. ,Koronadal
City.
a. Organizational Aspect
Currently, the spa has a total of nine (9) employees. Five (5) are
licensed massage therapists, two (2) reflexologist and two (2) receptionist.
The therapist is the front liner who takes care of major services
offered at the spa. The reflexologists serve only on special services such
as reflexology. Lastly, the receptionist is in charge of accommodating the
clients and safekeeping of money.
26
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Two compensation schemes are adopted by the spa. One is on a
percentage basis and the other is fixed. Seven (7) personnel are on a
percentage basis while the other two (2) are working with fixed rate.
b. Operational/ Technical Aspects
The spa offers different services. It is flexible as to what the
customer wants. Although there is a service unique from what it usually
provides, that is, signature massage.
A simple work flow is the standard operating procedure of the
business. When a customer enters the spa, he/she is entertained by the
receptionist and asked what services he/she wants to avail of.
The
therapist/ receptionist delivers the services as finale.
The business operates almost the entire year. It opens at 8:00 AM
and closes at 8:00 PM at regular work days. On the average, twenty five
(25) customers are catered to per day. Peak months are February, March,
May and December where more occasions fall.
The equipment and materials of the salon are purchased locally.
The owner personally purchased the materials by volume based on the
estimated monthly required supply and desired inventory of the spa.
Electricity, water and Internet are the utilities used by the business.
Moreover, it pays 15,000 rent per month. Wastes of the spa are properly
disposed in compliance with the city ordinance on proper disposal of
waste.
27
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
c. Marketing Aspects
Figure 1. Services Offered by Shanelle’s Massage & Spa
There are different services offered at the spa. These are Swedish
massage,
traditional
massage,
hot
stone
massage
and
others.
Professionals and students are the major clients of the business. Close
friends are the loyal customers of the spa who often avail of home service.
At the minimum, prices vary on cost. But it is flexible that is based
on the client capacity or budget. These are because of the tough
competition as there are now plenty of players in the industry. Marketing
efforts of the business is through word of mouth. The owner does not want
to invest in advertising but only rely on his business position and social
media.
d. Financial Aspects
Approximately, the total project cost as its initial operation is
500,000. Being a sole proprietorship type of business, its source of
28
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
financing is basically from the personal funds of the owner. In case of
shortage from personal funds, he loans from lending companies or from
his family members.
Although there are now many players in the industry, the payback
is fast compared to other line of business as the service is widely availed
of by people from different walks of life in the society.
2. Nuat Thai Foot And Body Massage
This is a corporation created to bring the business name “NUAT
THAI Foot and Body Massage” as well as the franchisor of the said business
name. NUAT THAI Foot and Body Massage provides purely authentic Thai
massage and Thai aroma therapy.
The spa is owned and managed by Chiu Kim Group of Companies.
The spa has been operating since 2012 and still continues to set its name as
one of the most well visited spas in Koronadal City. The spa is located in
Gensan Drive, Koronadal City.
a. Organizational Aspect
There are ten employees working in the business. Six are massage
therapists, two receptionists utility and one Security Guard. At present, the
company is still hiring some personnel to cope with the high demand.
The compensation scheme of the spa is on a percentage basis. For
the massage, 60% is for the massage therapist and 40% for the owner.
The employees are also provided with benefits and incentives.
29
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
To improve personnel skills, employees are sent to trainings and
seminars to improve the quality service they offered.
b. Operational/Technical Aspects
The business operates seven (7) days a week from 2 PM to 12MN.
It closes only during Good Friday, New Year’s Day and Christmas Day.
On the average, ten customers are catered to in a day. Currently, the spa
approximately, loses four customers in a day due to fully booked
appointment that make walk-in customers less prioritized. In a week,
Friday and Saturday night are the peak days.
The purchase of equipment and supplies is strictly monitored by the
company. Materials are purchased locally.
c. Marketing Aspects
The current customers of the business are professionals,
nonprofessionals and students. Pricing is set by the franchisor.
Advertisement is done through radio, televisions, social Media and
flyers. Also the spa relies on the customer’s word of mouth as they availed
of the services.
30
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Figure 2. Services Offered by Nuat Thai Foot & Body Massage
d. Financial Aspects
The initial project cost is around 750,000 as franchise fee and
150,000 for its revolving fund. They estimated that the payback period is
two (2) years.
3. Bodymist Health And Wellness Spa
The idea of establishing a spa is from a friend of the owner. It is a sole
proprietorship business owned by Mrs. Evelyn M. Cabudoy. The entity started
its operation last 2014.
a. Organizational Aspects
Five employees work at the spa four massage therapists and one
beautician. The owner personally acts as the receptionist. All employees
are on commission basis. The compensation scheme is well agreed
between the employees and the owner.
The recruitment procedure is simple. The applicants are expected
to send resume and are evaluated by the owner through interviews.
31
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Significant work experience is important for the owners. Formal education
is a plus factor for an applicant.
Trainings for personnel are also done to improve their skills. At
present, the owner enrolled her employees for enhancement like beauty
care.
b. Operational/Technical Aspects
The spa offers a wide variety of massage and grooming such as
haircut, manicure, pedicure, foot spa and Swedish massage. The owners
see to it that wellness and relaxation are serious matters for most people
of today.
The workflow is freestyle. Everyone entertains customers to
establish a welcoming ambience in spa. The business operates seven
days a week from 10 AM to 12MN. Like other players in the industry, the
entity closes only during special holidays of obligation.
On the average, the business caters to 25 customers per day for
both massages and grooming services. In a week, lean day is during
Monday and peak days are Friday, Saturday and Sunday.
The arrangement of the equipment is based on owner choice.
Equipment is purchased in Davao City. Supplies are procured in
Koronadal City and General Santos City. Repairs and maintenance of
equipment are sought within the City of Koronadal.
c. Marketing Aspect
32
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Majority of the customers who avail of the services are from the
middle class or working individuals. The prices of services are fixed and
vary depending on the cost of materials. The business advertises through
direct referrals, leaflets and tarpaulins.
Figure 3. Services Offered by Bodymist Health and Wellness Spa
d. Financial Aspect
The total project cost at its initial operation is Php. 250,000. The
owner’s sources of financing include personal funds and loans. It
estimated that the payback period is two (2) years.
Porter’s Five Forces
Bargaining Power of Buyers.
The bargaining power of buyers is high in this industry because of
more selection of spas that customer can choose from. Customers have a
substantial influence and power over in this industry. The services
provided must be of utmost quality because many spas offer similar
33
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
services at similar prices, so one distinguishing feature is the quality of
services provided. Clients can switch over to another spa easily with little
or no cost. Because there are so many selections of similar
products/services at similar price levels, brand loyalty is difficult to
maintain.
Bargaining Power of Suppliers.
The bargaining power of suppliers in this industry is low. Suppliers
provide products for facial and body treatments. This may include bed
sheets, massage oils, creams, masks, facial products, machines, etc.
However, because of the fact there are so many suppliers offering
similar products at prices which are relatively the same in Koronadal, their
power is further reduced by the fact that the cost of the exact same
products is substantially cheaper purchased from other suppliers
Rivalry of Existing Competitors.
The rivalry among current competitors is high. The spa/beauty and
wellness industry is a fragmented one in which there are many small to
medium firms. These firms have low to medium market share. Many of
these firms are individual firms and some are chains. This means
customers have a wide variety of options because they can easily change
amongst competitors. This leads to an opportunity for price wars because
customers have more power and the fragmented firms need to give
customers an incentive to consume from that firm.
34
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Threats of Substitution.
The potential for substitutes is low. Despite the innovative
technologies making massage machines, it is difficult for customers to
perform such treatments on themselves. It is often more relaxing and
convenient for a professional to perform body treatments on a customer –
the results are also more effective. The threat of substitution in this
industry is relatively low, particularly because many people have stress
from their daily lives and enjoys being pampered by services from this
industry.
Threat of New Entrants.
The potential for new entrants is high. Given the situation that there
are not relevant government barriers to enter the industry it is kind of easy
for a person to start offering the massage services which is a very
common situation in Koronadal City.
Key Success Factors
In any business there are key elements that contribute to its success.
There are those that focus more on the supply chain and operations. In a spa,
these are the keys to success;
1. Understand your market- it is essential that the prime movers in the
business have sufficient knowledge of the market. Knowledge must result
into clear understanding of the demographic, competition, traffic patterns,
35
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
buying strategies that are well-formulated where there is a thorough
understanding of the factors surrounding the entity.
2. Technical skills –beyond the equipment and strategic location, technical
skills that meet and exceed client’s expectation is vital. Quality and skilled
employees familiar with the services equipment and materials used in
providing the services are vital. Technical proficiency is an advantage that
a business can use to battle the stiff competition.
3. Communication – is a very important aspect in any organization. It
pertains to how the messages are relayed among members within the
organization as well as those outside the enterprise who affects the firm’s
existence. A good message to the customers causes repurchase of
services; but an effective message satisfies the customer by fulfilling what
it purports to convey. t is imperative to have effective communication to
facilitate feedback and encourage room for improvement.
4. Commitment to lifelong learning – change is inevitable. There is a rapid
development in business and in any industry. Important facts at present
may be obsolete in the coming years with the advent of technology and its
role in the business world.
5. Customer service - there is no such thing as being too attentive in a
highly competitive industry. Pampering the customer well creates a
competitive edge which the business can utilize in its marketing efforts.
Customer service defines how the business gives value to one of the most
important factors to its success.
36
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
6. Empathy – varied circumstances cause a customer to avail of the
products. It could be due to a special occasion, a fight with another
person, a stressful work week, or a routine activity, with this it is important
to remember that customers have peculiar situations, thus, employees
need to be sensitive to each client’s feelings. Be diplomatic and helpful
when they ask for an unflattering hairstyle.
7. Positive attitude – in both industries, it is a big factor how others see you
as it reflect your attitude towards providing such services. No, one ever
succeeded by walking around with a dark cloud above their head. Though
your personal life may be getting you down, continue to smile and be
positive. Clients are looking forward to being treated lavishly, and walking
out looking and feeling fabulous.
GOVERNMENT POLICIES
The Banahaw Heals Spa follows government policies especially
concerning protection to investing public on their rights and common interest.
The company offers services to the investing public as follows:
Generic policies
1. Certification from SEC (registration of business name)
Basic Requirements

Name Verification Slip

Articles of Partnership (AP); and
37
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines

Joint affidavit of two partners to change partnership name. (not
required if already stated in AP)
The following information should also be provided:

Name of the partnership

Principal office address

Telephone number of the partnership

Name, citizenship, address, birthday and TIN of the partners

Capital contribution of the partners

Purpose of the partnership
2. Mayor’s permit
Requirements for Mayor’s Permit

Certification – either one of the following:
 DTI Business Name Certificate; or,
 SEC Articles of Partnership; or,
 SEC Certificate of Incorporation

Barangay Clearance / Permit

Authorization letter of owner with ID

Contract of Lease or Land Title / Tax Declaration

Sketch of Location

Occupancy Permit

Locational Clearance

Public Liability Insurance

Community Tax Certificate (Cedula)
38
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines

Fire Permit

Sanitary Permit
3. Certification from BIR

Accomplish BIR Form 1903 and submit the same together with the
required attachments to the Revenue District Office having
jurisdiction
over
the
registered
address
of
the
business
establishment. The following are the forms and documentary
requirements to be attached with your application:
a.
BIR
Form
–
1903
Application
Corporations/Partnerships
b.
SEC
“Certificate
for
Registration
(Taxable/Non
of
Registration
Incorporation/Certificate of Co-Partnership) or
for
Taxable)
(Certificate
of
“License To Do
Business in the Philippines” in case of resident foreign corporation
c. Mayor’s Permit or application for Mayor’s Permit – to be
submitted prior to the issuance of the BIR
Certificate of
Registration

Pay the Annual Registration Fee (P 500.00) at the Authorized
Agent Banks of the RDO.

Pay P 15.00 for the Certification Fee and P 15.00 for the
Documentary Stamp Tax (in loose form to be attached to Form
2303).

The RDO shall issue the Certificate of Registration (Form 2303).
39
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines

Taxpayer must pay the Documentary Stamp Tax on the Articles of
Incorporation as prescribed under Section 175 of the NIRC, on the
5th of the month following the date of issuance of said article (per
RR 4-2000).
4. DTI
Requirements:

Securities and Exchange proposed name)

Accomplished Registration Data Sheet

Commission (SEC) Certificate

Verification Slip Form (re:

Articles of partnership

Written Undertaking to Change Corporation Name

If the contributed capital is in the form of property, additional
requirement is needed:

Deed of Assignment executed by the stockholder who is the owner
1. Department of Trade and Industry
2. Mayors Permit
3. BIR
Specific policies
1. Certificate of Registration from Committee of Examiner for
Massage Therapy (CEMT)
2. Certificate of license from Department of Health.
40
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
CHAPTER III
INTERNAL ANALYSIS
This chapter discusses the corporate profile, mission and objective of the
company which includes the organizational, marketing, operational/technical and
financial structure of the company.
Internal Situation Analysis
Corporate Profile
Banahaw Heals Spa is an innovative spa concept ideally suited to today’s
lifestyle. It specialized in providing affordable quality massage services that are
uniquely created to heal and relax a client’s body.
Banahaw heals Spa in Upper Balmores St., Zone 2, Koronadal City is
franchised by Aloot Family.
Company Logo
Figure 4. Company Logo of Banahaw Heals Spa
In general, the logo is an image of Mt. Banahaw of Quezon Province
which was renowned as Mystic Mountain which has miracle waters found in the
mountain and is said to heal injury or diseases.
The concept of massage was based on faith healer or “albularyo” performing
“hilot” in Mt. Banahaw.
41
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
A. Organizational Aspects
The company’s mission and vision statement as well as the core values
that serve as guiding principles in conducting the business to its success is
presented in organizational aspects. It also presented the organizational culture
and job responsibilities and description that exist in the organization.
Mission and Core Values
Mission
To provide employment to individuals who are unable to find a
stable means of income.
Core Values
At our core, Banahaw Heals Spa operates on Honesty, Efficiency,
Consistency, Commitment and Service to Others.
Organizational Culture
Every business endeavor, to be profitable and successful has to be
managed by individuals with discipline, good work ethics and enthusiasm. It
guides the management in different aspects of organization as it gives
information about its operational and organizational management in relation to
the set goal.
The business operates from a suitable environment and provides friendly
and professional services. The employees have sufficient training, knowledge
and labor skills to ensure quality services and efficient conduct of the business
process. There is stability in decision making since only few decision maker are
involved.
42
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Organizational Chart
There is no clear organizational chart currently followed by the company.
The current structure is that the owner conducts almost all of the company
managerial functions from Sales, Operational and financial aspects.
Job Position and Description /Responsibilities
Job position and descriptions are both important for the employees. It
serves as guide for employees to perform their duties for the good of the
organization. The job description contains the list of responsibilities intended for
the job position. It serves as the guide for employees to perform their duties for
the good of the organization.
Head Therapist
Specification

Graduate of vocational courses in Massage therapy or reflexology
in any accredited institution of TESDA.

A holder of an authentic license issued by Department of Health.

Had undergone at least 8 hours relevant training

Had at least three (3) years meaningful work experience.
Description

Supervises and coordinates spa activities through evaluation of
services provided to clients.

Directs preparation and maintenance of clients’ therapy records.

Performs all spa services offered by the business.
Masseur/Masseuse
Specification

Holder of an authentic license issued by the Department of
Health.
43
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines

Holder of vocational course in massage therapy or reflexology in
any institution accredited by TESDA.

With or without work experience.
Description

Responsible in performing massage services. Helps release
stress and aids circulation of blood freely by massaging the
body.

Performing medical spa treatments for hygienic or remedial
purposes.
Receptionist/Cashier
Specification

At least a graduate of two-year courses or college level related
to business.
Description

Responsible in entertaining client’s inquiries

Directly reports to the owner concerning daily cash collections

Prepares monitoring reports of attendance of employees.
Bookkeeper (Outsourced)
Specification

Well experienced in providing bookkeeping services and must
be registered with the BIR.
Description

Work with the owner on compliance matters.

Prepares
BIR
requirements
on
sales,
purchases
withholding taxes monthly.

Keeps the book of accounts complete and updated.
44
and
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
B. Operational/Technical Aspects
This involves information on the different aspects of the spa’s operation
including the daily operating hours, and other aspects that are currently included
in company policies and practices.
a. Operating hours

MONDAY –FRIDAY - 12 NN- 10PM

SATURDAY-SUNDAY – 1PM – 11 PM

Closed during Good Friday, Christmas and New Year’s Day.
b. Services
Table 8 presents the services offered and are available in
Banahaw Heals Spa. It also presents the duration of every service.
Table 8. Services offered by Banahaw Heals Spa
DESCRIPTION
Hilot Ginhawa (Swedish Massage)
Hilot Pamana (Signature Massage)
*a combination of Swedish, Shiatsu, Tuina , Hilot and
thai massage
Hilot Kagalingan (Ventusa therapy)
Reflexology de Banahaw (foot reflexology)
Body scrub
Other services
 Netibo healing
 Cranio Sacral
 Traditional Ventusa
 Running Ventusa
 Ear candling detox
 Hand reflexology
 Turtle walk massage
 Hair spa
c. Equipment tools and facilities
d. Equipment
45
DURATION
1 hour
1 hour
1 hour
1 hour
1 hour
15 mins
15 mins
15 mins
15 mins
15 mins
15 mins
30 mins
30 mins
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines

Air conditioner

Sound System (dvd player, Speaker)

Computer

Massage Chairs
e. Tools

Ventusa glass

Foot wash setup

Towels (body and hand towels)

Oil dispenser

Rubber slippers

Pillows

Scrubs

Massage oil

Massage Room

Shower Room

Receiption area

Comfort room

Foot wash area
f. Facilities
g. Other activities

Customers’ booking or reservation should be made one hour
prior to their appointment.

The clients have a freedom to choose a therapist they prefer.
46
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines

The receptionist will be the one to entertain the customers
and also to collects money after the massage.

The spa provides tea, water and coffee to the clients right
after the massage.
C. MARKETING/PROMOTIONAL ASPECTS
a. Product Pricing
Figure 5. Menu Of Services Of Banahaw Heals Spa
b. Different prices or discount is given to the members of the spa
c. Marketing activities are excluded to the franchising contract of
Banahaw Heals Spa, thus the owner allocated some budget to
promote the spa by sending sms to customers.
d. The spa maintains its websites and social media accounts like
facebook and Instagram where events, promotions and
discounts are posted.
47
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
e. Special rates are given to clients with activities such as
recreation and any special events.
D. FINANCIAL ASPECTS
The business is a franchise business with a franchise package of
P550,000 and P200,000 on rentals and business licenses. In total,
P750,000 was the initial capitalization of Banahaw Heals Spa. It has
consistently maintained a 10% increase in net profit during the past two
(2) years.
Relevant financial information of the business for the year 2017
a. Total net income – P278,000.00
b. Net profit rate for the year – 17.82 %
c. Total Revenue – P 890,000.00
d. Total Assets –P 620,000.00
e. Total Liabilities– P 75,000.00
f. Owner’s equity– P 545,000.00
g. Asset Turnover- 1.43X
SWOT ANALYSIS
SWOT analysis aims to identify the key internal and external factors seen
at Banahaw Heals Spa that help to achieve its objective. The SWOT analysis
group the key information into main sets.
1. Internal
Factors-
the
Strengths
and
considered as internal in the organization.
48
Weaknesses
are
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
2. External Factors – the Opportunities and Threats are the
external environment of the organization.
STRENGTHS
1. Strong Brand Name.
The company is well known for its quality of service at
affordable price. This make the business position itself as one of
the most respective spas in the Philippines.
2. Presence of DOH Licensed therapist.
The spa is considered by the Department of Health (DOH)
as wellness which helps improve the health of individuals. To
ensure the health of the clients, Banahaw Heals Spa hired licensed
therapists to monitors the proper way in performing massage
therapy according to the regulation of DOH.
3. Increasing Sales and Net Profit.
The company continues to increase its sales from 25% for
almost three (3) years. This is because of the affordability and
discount offered by the company.
4. Strong Financial Position.
Strong Financial Position is one of the notable strengths of
Banahaw Heals Spa. The company has currently no debt on bank
and utilizes its assets to cover liabilities.
5. Therapists are all covered with social benefits even if on
percentage basis.
49
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
The company gives importance to all its employees by giving
necessary benefits to all regular and percentage basis therapist.
6. Excellent relationship within and among business owner and
staff.
When a work environment is efficient and friendly, the extent
of conflict within the workplace is reduced. If every employee feels
equal and important, he/she is more likely to work harder and be
more productive.
WEAKNESSES
1. Poor work ethics of therapist.
The therapists sometimes show lack of interest in performing
massage services. When the owner is not around, therapists are
not attentive or spend time on unnecessary stuffs.
2. Entangle with the rules and regulation of franchise contract.
The franchise agreement usually includes restrictions on
how the businesses run. This means that the company cannot
easily change some operational process or pricing unless approved
by the franchisor.
3. Limited parking space to cater clients.
Simple parking space shortage can cause a lot of problem
for the business. It is essential for a business to be equipped with
enough parking spaces to cater to the needs of the customers and
the employees.
50
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
4. Indirect employer - employee relationships as therapist are on
percentage basis.
The therapists salary is based on the services rendered
every day. The therapists are paid in commission manner which
mean they need to perform services to have a salary.
5. Slow response on walk-in customers.
The company cannot cater to walk-in customers because it
is fully-booked and or reservations are made every day. An
estimate of five clients a day was not catered by Banahaw Heals
Spa.
6. No organizational structure.
The spa has no organizational chart and only the owner can
do decision making. This may delay the operation of the business
or may create confusion on employees’ job responsibilities
Opportunities
1. Increasing Demand - Health and wellness continued to benefit from the
rising health consciousness of consumers and favorable economic
performance of the country, thereby resulting in positive growth in 2017.
Consumers gravitated towards products that they think are delicious and
healthy, and this has influenced new product introductions
2. Opportunity for growth -the spa industry is part of the health and
wellness industry and is a big and fast-growing business. This growth is
51
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
mostly because of the aging baby boomer generation and the increasing
interest of people nowadays on personal health and fitness.
3. Health awareness of individual- More than just a way to pamper one’s
self, spas are also fast becoming wellness providers. Spa-goers have
become more fitness-conscious and choose to spend more in meditation.
4. Growing middle class in Koronadal City- The rise of incomes by the
lower and middle-class markets offers a new pool of customers who are
choosing services for the first time.
5. Innovation of wellness industry- The dawning of the wellness culture
introduced the medical spa to help spa-goers maintain their youthful looks.
Medi-spas will proliferate to treat a variety of conditions, staffed by doctors
with various specializations.
THREATS
1. Growing Competition. Low capitalization encourages new
entrants into the industry.
2. Decreasing service fee. Competitors provide same service at
lower price
3. Legislation requiring DOH License for Massage therapist- This
is in accordance to the provisions of the Code on Sanitation of the
Philippines or Presidential Decree 856 (PD 856) and Executive
Order 102 (EO 102) s. 1999 Reorganization and Streamlining of the
DOH. It provides the CEMT the function to ensure that only
qualified individuals enter the regulated profession and that the
52
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
care and services which massage therapists provide are within the
standards of practice.
4. Consumer spending habit- changing consumer spending habit
might affect spa operation since the services are unessential and
can be neglected by consumers for prioritizing important matters.
5. Economic Downturn - economic downturns reduce household
incomes and lower investors’ and consumers’ confidence in the
economy
TOWS MATRIX
This enables to match external factors to internal factors to develop a new
strategy and these combined strategies are SO (Strengths-Opportunity)
strategies in which a certain organization uses its internal strengths to take
advantage of external opportunities, WO (Weakness- Opportunity)strategies that
aim to improve internal weaknesses by taking advantage of external
opportunities, ST (strengths-Threats) strategies that use a firm’s strength to avoid
or reduce the impact of external threats, and WT (Weakness-Threats) strategies
as defensive tactics directed at reducing internal weakness and avoiding external
threats. This matching of new strategies is important to implement a good
offense and defense since a good offense without a good defense leads to
defeat in competing with other ventures.
53
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Table 9. TOWS Matrix
Strengths
Weaknesses
Strong Brand Name.
Presence of DOH Licensed
therapist.
3. Affordable massage
4. Increasing Sales and Net
Profit.
5. Strong Financial Position.
6. Therapists are all covered
with social benefits even if on
percentage basis.
Excellent relationship within
and among business owner
and staff.
SO Strategies
1. Poor work ethics of therapist.
2. Entangle with the rules and
regulation of franchise contract.
3. Limited parking space to cater
clients
4. Indirect employer - employee
relationships as therapist are on
percentage basis.
5. Slow response on walk-in
customers.
6. No organizational structure.
1.
2.
TOWS MATRIX
BANAHAW HEALS SPA
Opportunities
1.
2.
3.
4.
5.
Increasing
Demand.
Opportunity for
growth
Health awareness
of individual
Growing middle
class in Koronadal
City
Innovation of
wellness industry
1.
2.
3.
4.
Aggressive marketing campaign
to increase market share (S1,
S2,S3,S4,O1,O2,O3,O4,O5)
Evaluate demand and other
factors that will make marketing
advantage on spa industry
(S1,S2,S3,S4,S5,
O1,O2,O3,O4,O5)
Provide a marketing study on
target market in its increasing
population for expansion (S1,
,S3,S4,S5, O4,O3)
Offer career development to
enhance employees unused
skills. (S1,S2,S6,S7,O2,O5)
WO Strategies
1.
Strengthen employee performance
(W1,W4,O2,O5)
2.
Promote trainings for employees
(W1,W4,O1,O4)
3.
Initiate promotional activities such
as coupon discount, loyalty card for
group transaction or frequent
customers (O1,O4)
4.
Promote strategies that is not
included in contract for
improvements
(S2,O1,O2,O3,O4,O5)
5.
Threats
1. Growing
Competition. Low
capitalization
encourages new
entrants into the
industry.
2. Decreasing service
fee.
3. Legislation
requiring DOH
License for
Massage therapist
4. Consumer
spending habit
5. Economic
Downturn
ST Strategies
1. Intensify marketing efforts
(S1, S2,S3,S4,S5,T1,T2)
2.
3.
Product innovation
(S1,S3,T1,T2,T3)
Introduce the center to other
geographical areas by
partnership in the
SOCSKSARGEN and by
franchising outside of
SOCKSARGEN
(S1,S2,S3,S4,S5,S6,T1,T2,T
3)
4.
Conduct clients satisfaction
survey to gather ideas for
service improvement
(S1,S2,S3,T1,T2,T6)
5.
Educate effectively both its
personnel and those in other
centers by participating and
conducting training/education
and seminars
(S6,S8,T2,T3,T4)
54
Hire therapist that can
accommodate walk-in customers
(W1,W5,O1,O2,O3,O4)
WT Strategies
1. Invest in training school for
massage therapy.
(W1,W2,W3,W4,T3,T4,T5,T6)
2.
Offer other related services
(W1,W2,W3,W4,T1,T2,T4,T5,T6,T7
)
3.
Provide sufficient managerial
motivation (W5, T1,T2,T4)
4.
Develop and exert effort for a
budget friendly services to attract
new and maintain old clients (W5,
T1,T2,T4)
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Strategic Tools
Internal Factor Evaluation (IFE) Matrix
This strategy formulation tool summarizes and evaluates the major
strengths and weaknesses in the functional areas of a business, and it also
provides a basis for identifying and evaluating relationships among those areas.
Table 4 shows the IFE matrix of Banahaw Heals Spa. The total weighted
average score of 2.5 and below is considered weak internally. On the part of
Banahaw Heals Spa, IFE weighted average score of 2.74 implies a strong
internal position.
Table 10. IFE Matrix of Banahaw Heals Spa
KEY INTERNAL FACTORS
WEIGHT RATING
Strengths
1. Strong Brand Name.
2. Presence of DOH Licensed therapist.
3. Increasing Sales and Net Profit.
4. Strong Financial Position.
5. Therapists are all covered with social
benefits even if on percentage basis.
6. Excellent relationship within and among
business owner and staff.
Weaknesses
1. Poor work ethics of therapist.
2. Entangle with the rules and regulation of
franchise contract.
3. Limited parking space to cater clients
4. Indirect employer - employee
relationships as therapist are on percentage
basis.
5. Slow response on walk-in customers.
6. No organizational structure.
Total
55
WEIGHTED
SCORE
0.15
0.10
0.08
0.08
0.07
4
4
4
3
4
0.60
0.40
0.32
0.24
0.28
0.08
3
0.24
0.10
0.09
1
2
0.10
0.18
0.06
0.07
2
2
0.12
0.14
0.05
0.07
1
1
1
0.05
0.07
2.74
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
The most important factor in Banahaw Heals Spa is the Strong brand
name and the presence of DOH licensed therapist. The major problem of the
company is the slow response on walk-in customers. The overall average of 2.74
implies that there is a need for improvement on the company’s operation,
strategies and procedures.
External Factor Evaluation (EFE) Matrix
External Factor Evaluation (EFE) Matrix is a good tool to visualize and
prioritize the opportunities and threats that a business normally encounters. As
shown in Table 7, the total weighted is 2.55 on the EFE matrix which indicates
that the organization is taking advantage of the opportunities while reducing the
effects of external threats.
56
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Table 11. EFE MATRIX
KEY EXTERNAL FACTORS
OPPORTUNITIES
1.
Increasing Demand-Health and wellness
continued to benefit from the rising health
consciousness of consumers and favorable
economic performance of the country, thereby
resulting in positive growth in 2017.
2.
Opportunity for growth-the spa industry is
part of the health and wellness industry and is a
big and fast-growing business.
3.
Increasing Health awareness of
individual-More than just a way to pamper one’s
self, spas is also fast becoming wellness
providers.
4.
Growing middle class in Koronadal CityThe rise of incomes by the lower and middleclass markets offers a new pool of customers
who are choosing services for the first time.
5.
Innovation of wellness industry- The
dawning of the wellness culture introduced the
medical spa to help spa-goers maintain their
youthful looks.
THREATS
1. Growing Competition. Low capitalization
encourages new entrants into the industry.
2. Decreasing service fee. Competitors
provide same service at lower price
3. Legislation requiring DOH License for
Massage therapist-. It provides the CEMT the
function to ensure that only qualified individuals
enter the regulated profession and that the care
and services which massage therapists provide
are within the standards of practice.
4. Consumer spending habit- changing
consumer spending habit might affects spa
operation since the services is unessential that
can be neglect by consumer for prioritizing
important matters.
5. Economic Downturn - economic downturns
reduce household incomes and lower investors’
and consumers’ confidence in the economy
Total
57
WEIGHT
RATING
WEIGHTED
SCORE
0.13
4
0.52
0.11
3
0.33
0.12
4
0.48
0.1
3
0.30
0.09
3
0.27
0.10
2
0.20
0.10
2
0.20
0.10
1
0.10
0.08
1
0.08
0.07
1
0.07
1
2.55
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
The company is doing well in taking advantage of the increasing demand
of spa and wellness industry. It also gives importance on the growth and
increasing awareness of individuals.
Strategic Position and Action Evaluation (SPACE) Matrix
Strategic Position and Action Evaluation (SPACE) Matrix has been
materialized as a dominant instrument in formulating alternative strategies. This
matrix is based on four important elements called four quadrants of SPACE
Matrix. The first two elements are internal dimensions which are Financial
Strength (FS) and Competitive Advantage (CA) and the other two are called
external dimensions namely Environmental Stability (ES) and Industry Strength
(IS). The four quadrants framework of SPACE Matrix represents the suitability or
appropriateness of the strategies to be selected by a company such as
aggressive, conservative, defensive, or competitive strategies.
58
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Table 12. Four Quadrants Framework of SPACE Matrix of Banahaw Heals
Spa
Internal Strategic Position
Financial Position (FS)
1.Return on Investment
2. Financial &Operating Leverage
3. Liquidity
4.Working Capital
Ratings
6
5
5
5
External Strategic Position
Environmental Stability (ES)
1. Technological Changes
2. Competitors price change
3. Barrier to entry into market
4. Competitive pressure
Ratings
-6
-4
-4
-3
5.Cash Flow
6. earnings per share
TOTAL
Competitive Advantage (CA)
1. Market Share
2. Quality Of Services
3. Customers Preference
4. Capacity Of Providing Services
5
6
32
Ratings
-3
-5
-1
-3
5. Risk exposure
6. Price elasticity of demand
TOTAL
Industry Strength (IS)
1. growth potential
2 profit potential
3. financial Stability
4. resource availability
-4
-4
-25
Ratings
6
5
5
3
5. Customer Loyalty
TOTAL
-3
-18
5. ease to entry
TOTAL
5
24
ES Average is -25/6 = -4.16
IS Average is 24/5 = -4.8
CA Average is -18/5 = -3.6
FS Average is 32/6 = 5.33
Directional Vector Coordinates: X –axis : -3.6 + (4.8)= 1.2
Y- axis : -4.16+ (5.33) = 1.17
Table 12 determines how Banahaw Heals Spa came up with aggressive
strategies where the firm is considered financially strong and has achieved main
competitive advantages in a growing and stable industry. The result from
average stability position added to average financial position is in the Y axis
where the result is 1.17 and the result from the average competitive position and
the industry position is in X axis. This figure is called as directional vector
coordinates.
59
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Figure 6. SPACE Matrix of Banahaw Heals Spa
Based on the Figure 6, the Banahaw Heals Spa should use aggressive
strategy. Aside from Signature 5-in-1 Healing Massage, the spa introduced to the
market innovative services such as Netibo Healing, Turtle-Walk Massage, and
Mang Kepweng massage.
Internal –External (IE) Matrix
The IE Matrix is a strategic management tool which is used to analyze the
current position of the divisions and to suggest the strategies for the future.
The Internal-External (IE) Matrix is based on an analysis of internal and
external business factors which are combined into one suggestive model. The IE
matrix is a continuation of the EFE matrix and IFE matrix models.
60
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
The Internal-External (IE) Matrix is based on two key dimensions: the IFE
total weighted scores on the x-axis and the EFE total weighted scores on the yaxis. Each division of an organization should construct an IFE Matrix and an EFE
Matrix for its part of the organization. The total weighted scores derived from the
divisions allow construction of the corporate-level IE Matrix.
On the x-axis of the IE Matrix, an IFE total weighted score of 1.0 to 1.99
represents a weak internal position; a score of 2.0 to 2.99 is considered average;
and a score of 3.0 to 4.0 is strong. Similarly, on the y-axis, an EFE total weighted
score of 1.0 to 1.99 is considered low; a score of 2.0 to 2.99 is medium; and a
score of 3.0 to 4.0 is high.
Figure 7. IE Matrix of Banahaw Heals Spa
61
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
IFE total weighted score : X axis = 2.74
EFE total weighted score : Y axis = 2.55
The IE Matrix in figure shows that the scores of the IFE and EFE matrices
of Banahaw Heals Spa are 2.74 and 2.55, respectively. The point of intersection
falls in cell 5 which indicates that Banahaw Heals Spa should maintain its current
position. Therefore, the company should adapt strategies focusing on
maintaining their actual market share such as market penetration and product
development.
Grand Strategy Matrix
Grand Strategy Matrix has emerged into a powerful tool in devising
alternative strategies. This matrix is basically based on four important elements:
Rapid Market Growth, Slow Market Growth, Strong Competitive Position, and
Weak Competitive Position.
These elements form a four quadrant matrix that can be positioned in a
way that selection of appropriate strategy is easily identified. It helps in analysis
of firms ‘current position and selection of best strategy in accordance with the
revealed competitive position and market place.
The quadrant one of the Grand Strategy Matrix is meant for those firms
which are in a strong competitive position and flourishing with rapid market
growths. Firms located in this quadrant are in excellent strategic position and
they need to concentrate on current markets and products.
Firms falling in quadrant two of the Grand Strategy Matrix are
characterized with a weak competitive position in fast growing market. The
62
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
present market position of these firms must click in the minds of the management
and they need to weigh up the firms’ present market place critically.
The quadrant three firms are operating in a slow growth industry with a
weak competitive position. These firms are prone to further decline which may
result possibly in liquidation.
Firms under quadrant IV are characterized as having a strong competitive
position but are operating in a slow growth industry. These firms have to quest
for the promising growth areas and to exploit the opportunities in the growing
markets as they possess the strengths to instigate diversified programs in
growing industries.
Figure 8 Grand Strategy Matrix of Banahaw Heals Spa
63
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Banahaw Heals Spa belongs to quadrant I which means the business has
excessive organization resources, then backward, forward, or horizontal
integration may be effective strategies. It can take risks aggressively when
necessary.
Boston Consulting Group (BCG) Matrix
The BCG matrix is a framework created by Boston Consulting Group to
evaluate the strategic position of the business brand portfolio and its potential. It
classifies business portfolio into four categories based on industry attractiveness
and competitive position. There are four quadrants into which firms brand are
classified:
Dogs. Holds low market share compared to competitors and operate in a
slowly growing market. The Strategic choices are Retrenchment, divestiture and
liquidation.
Cash cows. Cash cows are the most profitable brands and should be
“milked” to provide as much cash as possible. The cash gained from “cows”
should be invested into stars to support their further growth. According to growthshare matrix, corporates should not invest into cash cows to induce growth but
only to support them so they can maintain their current market share. The
Strategic choices for cash cows is Product development, diversification,
divestiture and retrenchment
Stars. Stars operate in high growth industries and maintain high market
share. Stars are both cash generators and cash users. They are the primary
units in which the company should invest its money, because stars are expected
64
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
to become cash cows and generate positive cash flows. The Strategic choices
for stars are Vertical integration, horizontal integration, market penetration,
market development and product development.
Question marks. Question marks are the brands that require much closer
consideration. They hold low market share in fast growing markets consuming
large amount of cash and incurring losses. The Strategic choices for question
marks are Market penetration, market development, product development and
divestiture.
Table 13. Relative Market Share Table
Business Name
Shanelles Massage Spa
Bodymist Health and Wellness Spa
Banahaw Heals Spa
Nuat Thai foot and Body Spa
Revenue
P 20,000
P 350,000
P 50,000
P 500,000
Your
bran
d’s
mark
et
share
Relati
ve
marke
t
share
Marke
t
growth
rate
25% 25%
30%
5%
45% 30%
10%
1%
1
0.17
0.67
0.1
3%
12%
13%
15%
Largest
rival’s
market
share
Relative market share can be calculated in terms of revenues or market
share. It is calculated by dividing one’s own brand’s market share (revenues) by
the market share (or revenues) of his/her largest competitor in that industry.
This means that the Banahaw Heals Spa has overtaken its competitors in
terms of profit and market share which leads to good operation and greater
opportunities.
65
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Figure 9. BCG Matrix of Banahaw Heals Spa
Matrix Evaluation
Matrix evaluation shows the summary of the result from the matching
stage of the strategy formulation framework which include the TOWS, IE, SPACE
and Grand Strategy matrices from which different strategies are listed and
enumerated. To determine feasible strategies, the strategic tools are summed up
to find out the frequency of choice that would be the basis for the last stage of the
strategy formulation framework, the Quantitative Strategic Planning matrix.
Table 14. Matrix Evaluation of Banahaw Heals Spa
TOWS
SPACE
IE
GRAND
BCG
MATRIX MATRIX MATRIX STRATEGY STRATEGY
Market Penetration
X
X
X
X
X
Market Development
X
X
X
X
Product Development
X
X
X
X
Diversification
X
Forward Integration
X
Backward Integration
X
STRATEGIES
66
TOTAL
5
4
4
1
1
1
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Based on the evaluation of the result of all matrices used in strategy
formulation framework, the appropriate strategies that Banahaw Heals Spa
needs to adopt are market penetration, market development and product
development strategies.
Market penetration is a growth strategy that focuses on selling more to current
customers or sell products to new customers in the current target markets of the
business. It involves strategies such as bundling, advertising, lowering of prices
and volume discount.
Market development strategies involve selling existing products to new
market which may involve new geographical markets, new product dimensions,
new distribution channels and different pricing policies to create new market
segment.
Product development strategies are growth strategies that require
changes in business operations, including a research and development function
that is needed to introduce new products to existing customer base. It requires
the business to asses customer needs and a clear path for brand extension.
Quantitative Strategic Planning Matrix
The Quantitative Strategic Planning Matrix is a strategic tool which is used
to evaluate alternative set of strategies. The QSPM incorporate earlier stage
details in an organized way to calculate the score of multiple strategies in order
to find the best match strategy for the organization.
There are four main columns in QSPM, the left column lists down the key
internal and external key factors which are the same as in EFE and IFE matrix.
67
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Adjacent column to key factors is Weight (relative importance of the factor) which
holds the numeric value obtained from EFE and IFE matrix weight column. The
next to weight is AS which stands for attractive score which assigns priority to
key factors using the numeric value 4 for most importance and 1 for least
importance and the last column TAS (Total attractive score) is the value
calculated by multiplying weight by AS. One thing important to note for each
strategy is to separate AS and TAS value added in the table, weight remains the
same for all set of strategies mentioned in QSPM. The topmost shows the
strategies are compared in the QSPM matrix, the following table illustrate the
structure of QSPM matrix.
68
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Table15. QSPM Matrix of Banahaw Heals Spa
KEY INTERNAL
FACTORS
STRENGTHS
1. Strong Brand Name.
2. Presence of DOH Licensed
therapist.
3. Increasing Sales and Net
Profit.
4. Strong Financial Position.
5. Therapists are all covered
with social benefits even if on
percentage basis.
6. Excellent relationship within
and among business owner and
staff.
WEAKNESSES
1. Poor work ethics of therapist.
2. Entangle with the rules and
regulation of franchise contract.
3. Limited parking space to
cater clients
4. Indirect employer - employee
relationships as therapist are on
percentage basis.
5. Slow response on walk-in
customers.
6. No organizational structure.
OPPORTUNITIES
1.
Increasing Demand.
2.
Opportunity for growth.
3.
Increasing Health
awareness of individual.
4.
Growing middle class in
Koronadal City.
5.
Innovation of wellness
industry.
THREATS
1. Growing Competition.
2. Decreasing service fee.
3. Legislation requiring DOH
License for Massage therapist
4. Consumer spending habit
5. Economic Downturn
Total Sum of Attractiveness
Score
Weight
Alternative 1
Market
Penetration
Alternative 2
Market
Development
Alternative 3
Product
Development
A
S
TAS
AS
TAS
AS
TAS
15%
10%
4
4
0.60
0.40
3
2
0.45
0.20
4
2
0.60
0.20
8%
2
0.16
1
0.08
1
0.08
8%
7%
1
2
0.08
0.14
1
1
0.08
0.07
1
1
0.08
0.07
8%
1
0.08
1
0.08
1
0.08
Weigh
t
10%
9%
AS
TAS
AS
TAS
AS
TAS
4
3
0.40
0.27
2
3
0.20
0.27
3
4
0.30
0.36
6%
3
0.18
1
0.06
1
0.06
7%
1
0.07
1
0.07
1
0.07
5%
3
0.15
4
0.20
4
0.20
7%
Weigh
t
13%
11%
12%
1
AS
0.07
TAS
1
AS
0.07
TAS
1
AS
0.07
TAS
4
4
4
0.52
0.44
0.48
4
4
4
0.52
0.44
0.48
4
4
4
0.52
0.44
0.48
10%
3
0.30
3
0.30
4
0.40
9%
2
0.18
2
0.18
4
0.36
Weigh
t
10%
10%
10%
AS
TAS
AS
TAS
AS
TAS
4
4
1
0.40
0.40
0.10
4
3
1
0.40
0.30
0.10
3
4
1
0.30
0.40
0.10
8%
7%
3
1
0.24
0.07
3
1
0.24
0.07
2
1
0.16
0.07
100
%
59
5.73
50
4.86
55
5.40
Table 15 shows the alternative strategies: market penetration, market
development and product development that should be considered as priority
69
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
strategies of Banahaw Heals Spa. The total sum attractiveness of alternative 1
categorized as market penetration is 5.73 and the sum of attractiveness of
market development or alternative 2 is 4.86. Lastly, alternative 3 or product
development is 5.40.
This stated that alternative 1 or market penetration should be highly
prioritized followed by product penetration and market development.
70
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
CHAPTER IV
RESULTS, FINDINGS AND RECOMMENDATION
This chapter contains the descriptive findings and analysis from the results
of the survey taken from two hundred (200) respondents residing in Koronadal
City.
A. Demographic Profile of Respondents.
Table 16. Demographic profile of Respondents
Particulars
Respondents
Percentage
96
104
48%
52%
36
86
68
10
18%
43%
34%
5%
114
86
57%
43%
10
19
49
97
20
5
5%
10%
25%
49%
10%
3%
33
69
57
25
16
200
17%
35%
29%
13%
8%
100%
Gender
Male
Female
Age Bracket
18- 25 years old
26-35 years old
35-45 years old
46-65 years old
Civil Status
Single
Married
Educational Attainment
High school Level
High school graduate
College Level
College Graduate
Master's Degree
Doctoral Degree
Occupation
Self- Employed
Private Employee
Public Employee
Students
None
Total Respondents
71
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
The survey done on the 200 respondents shows that 52% of the sample
population is female and 48% male. Most respondents who answered the survey
are 26-35 years old, followed by 35-45 years old, 18- 25 years and 46-65 years
old. About 57% or 114 respondents are single and 43% or 86 respondents are
married.
Respondents were mostly college graduate comprising 97% of the total
sample size. When it comes to occupation 35% are private employees.
Table 17. Frequency of Respondents Monthly Income
Particulars
Respondents
Percentage
5
74
102
19
3%
37%
51%
10%
Php. 5,000- 10,000
Php. 10,500- 15,000
Php. 15,500- 20,000
Php. 20,000- up
Most respondents who availed of spa has an income of Php. 15,50020,000 monthly or 51% of the total sample size.
B. Customer Preferences and Behavior towards Spa Services
This section presents the ideal services that the respondents want
to avail in spas in the City of Koronadal City.
Table 18. Shows that 132 respondents who availed of spa services
are mostly working individuals.
Table 18. Respondents who availed of Spa Services
Customer Type
Households
Self Employed
Students
Working Individual
Total
Yes
%
36
33
15
48
132
No
18%
17%
8%
24%
66%
72
%
18
13
21
16
68
Total
9%
7%
11%
8%
34%
54
46
36
64
200
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Table 19. Frequency of respondents that are willing to try spa services
Client Type
Households
Self Employed
Students
Working Individual
Total
Yes
16
13
8
24
61
%
24%
19%
12%
35%
90%
No
%
2
2
2
1
7
3%
3%
3%
1%
10%
Total
18
15
10
25
68
From 68 respondents who did not experience availing of services of spa,
90% are willing to try it in the future and 10% of the respondents do not intend to
try the services.
Table 20. Frequency of Respondents Availing Spa Services
Customer Type
TWICE A
WEEK
WEEKLY
ONCE A
MONTH
Households
Self Employed
Students
Working Individual
Total
Percentage
2
3
0
10
15
11%
19
1
2
7
29
22%
8
15
3
8
34
26%
TWICE
A
TOTAL
MONTH
14
7
4
29
54
41%
43
26
9
54
132
100%
The 132 respondents who said that they have tried the services of spa
were asked how often they availed of the service. Fifty four (54) respondents
answered twice a month or 41% of the said population. About 26% availed
services every once a month, 22% or 29 respondents availed of the services
weekly and 11% did it twice a week. Furthermore, it was observed that 54 of the
respondents of the 132 who availed of spa services are professionals or working
Individuals.
73
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Table 21. Frequency Of Services Per Hour Availed by Respondents in a
Month
Customer Type
1- 5 Hrs
6-10
Hrs
Households
Self Employed
Students
Working Individual
Total
Percentage
5
9
6
6
26
20%
11
9
2
13
35
27%
11-15 Hrs
16
10
3
27
56
42%
16
Hrs –
Up
6
5
1
3
15
11%
Total
38
33
12
49
132
100%
Since the service is hourly basis, a question was asked to know the
volume of service a respondent availed of in a month. An estimated 11-15 hours
of services in a month lead the 42% of the sample size. Most are working
individual, followed by households, self-employed and students.
Table 22. Respondents’ Preferred Day in Availing of Spa Services.
Customer Type
Households
Self Employed
Students
Working Individual
Total
Weekdays
5
10
2
15
32
Saturday
11
15
12
59
97
Sunday
13
22
12
24
71
Total
%
29
15%
47
24%
26
13%
98
49%
200 100%
Also, in the survey, respondents were asked of their preferred day in
visiting a spa. The answer to the question was distributed into weekdays,
Saturday and Sunday. Most of the respondents preferred to visit a spa on
Saturday. Seventy one (71) respondents go to spa on Sundays.
The respondents who availed of the services of spa on weekdays typically
do this on Fridays.
74
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Table 23. Monthly Budget for Spa services
Monthly
Budget
Household
s
Self
Employe
d
Student
s
Working
Individua
l
Tota
l
%
P 100- 500
P600-1000
P 1001-1500
P 1501-2000
More than
2000
14
12
6
7
3
5
19
7
10
6
5
3
10
19
15
22
37
42
45
39
19%
21%
23%
20%
8
10
2
17
37
Total
47
44
26
83
200
19%
100
%
The respondents were then asked about their estimated monthly budget
for spa services. Majority of them answered a budget of between Php. 10011500 which obtained 23% of the total answer. This was followed by Php. 6001000 or 21% of the total answer. Then, a 20% of the total answer or 39
respondents has a budget of Php. 1501-2000. Lastly, there is an equal
distribution of 19% in Php. 100-500 and more than Php. 2000.00.
Table 24. Types of Spa Services Preferred by the Respondent
Spa Services
Swedish
massage
Signature
Massage
Reflexology
Ventusa
Hot stone
Massage
Body Scrub
Others
Total
Households
Self
Employed
Student
s
Working
Individual
Total
%
10
1
16
10
37
19%
13
5
4
10
7
5
3
9
15
22
14
5
48
35
29
24%
18%
15%
3
9
5
4
2
1
3
3
1
4
10
6
14
24
13
49
30
50
71
200
7%
12%
7%
100
%
75
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
This portion of the study shows the type of services a respondent wants to
avail. Majority of the respondent are fond in signature massage of spa which
obtain 24% of the total answered, followed by 19% of the respondents who
wanted and tried to avail of Swedish massage. Reflexology, Ventusa and Body
scrub obtains 18%, 19% and 12% of the total answer respectively.
There is an equal sharing of 7% in Hot stone and other services of the
total answer from the respondents. Other service was identified as ear candling,
foot scrub and salon services.
Table 25. Consideration Of Respondents In Choosing A Spa
Particulars
Price of
Services
easy to access
location
brand
recognition
referral from
family and
friends
TOTAL
Household
s
Self
Employe
d
Student
s
Working
Individua
l
tota
l
%
15
18
20
10
63
32%
10
13
23
12%
13
20
19
22
74
37%
9
14
7
10
40
47
65
46
42
200
20%
100
%
Table 25 shows that brand recognition of a spa is the most considerable
factor for respondents in choosing a spa with 37% of the total answer. Secondly,
the price of the service was answered by 32% or 63 respondents. About 20%
and 12% of the respondents considered accessibility of the location and referral
from family and friends respectively.
76
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Table 26. Respondents’ reason in availing of services in Spa
Particulars
Households
Self
Employed
Students
Working
Total
Individual
To Relax
To Detoxify
Treatment
For Pain
/Injury
Quality Time
With Family
& Friends
Total
19
9
26
15
7
3
39
7
91
34
46%
17%
2
12
0
4
18
9%
17
47
18
71
10
20
12
62
%
57 29%
200 100%
This survey question was laid out to know the reasons of the respondents
in availing of services in a spa. The main reason for the respondent to visit and
avail of spa services is to relax which obtain 46% of the total answer. It is then
followed by Quality time with family and friends by 29 % of the respondents.
About 17% or 34 respondents only wanted to detoxify. Lastly, 18 respondents or
9% of the total answer wanted treatment for pain and injury.
C. Customer Loyalty And Marketing For Spa
This section of the study is to identify factors that a spa needs to adopt to
increase the number of its regular clients and the appropriate marketing or
promotional activities that will help the company dominate the market.
The question is sub divided into two topics. The first topic is the customer
loyalty of the respondents. Secondly, the topic is about marketing or promotional
activities.
77
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Customer Loyal
Respondents were asked to know their reason in patronizing the services
offered by spas in Koronadal City.
Table 27. Respondents’ consideration in re-availing of services of a spa
Particulars
Household
s
Self
Employe
d
Student
s
Working
Individua
l
Tota
l
%
12
6
8
10
11
10
10
7
12
15
8
17
47
32
47
24%
16%
24%
9
9
9
12
39
20%
7
10
7
11
35
42
50
45
63
200
18%
100
%
Quality of service
Location
Price
Range in
Facilities
Special offer
Total
Based on the Table 27, respondents re-availed of the services is because
of the price and quality services of the spa which obtain 24% of the total answer
equally. It was also observed that 20% or 39 respondents re-availed the services
because of the range in facilities of spas. Lastly, 18% and 16% of the
respondents re-availed of the product due to the special offers and location.
Marketing and Promotional
Table 28. Respondents preferred products in spa establishment
Product
Households
Self
Employed
Students
Foods
Drinks
Cosmetic
and care
products
Total
15
22
13
12
14
23
24
21
66
78
33%
39%
14
51
10
35
10
47
22
67
56
200
28%
100%
78
Working
Total
Individual
%
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
To diversify and to ease the waiting of customers, the respondents were
asked to know what kind of products they want to buy in a spa aside from
services offered in spa. Majority of the respondents want to avail of drinks which
obtain 39% of the total answer. This is followed by sixty-six (66) respondents who
answered foods and 28% or fifty six (56) respondents who wants to buy cosmetic
and care product in a spa establishment.
Table 29. Freebies and Discount Offered By Spa
Self
Working
Students
Total
Employed
Individual
Particulars
Households
Membership
Card discount
22
19
10
33
84
42%
13
8
11
13
45
23%
(Combination of
different
services eg.
Steam bath with
body scrub)
18
22
12
19
71
36%
Total
53
(10 % discount on
regular prices)
Loyalty Cards
( freebies after
services)
%
Combo Rate
Promo
49
33
65
200 100%
As shown in Table 29, respondents were asked to know the preferred
freebies and discount in availing of spa services. About 42% or 84 of the
respondents want to avail of a membership card. This is followed by combo rate
or 36% of the total answer. Lastly, 23% of the respondent answered loyalty card.
D. Assessment Of Banahaw Heals Spa
79
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Table 30. Respondents’ Awareness of Banahaw Heals Spa
Client Type
Households
Self Employed
Students
Working Individual
Total
Yes
34
18
14
72
138
%
17%
9%
7%
36%
69%
No
%
13
10
11
28
62
7%
5%
6%
14%
31%
Total
47
28
25
100
200
Table 30 shows that 69% or 138 of the respondents are aware of
Banahaw Heals spa. Majority of the respondent who are aware of the
establishments are working individuals followed by households which obtain 34
or 17% of the total answer. Then 9% are self-employed and 7% student.
However 62 respondents are not aware of Banahaw Heals spa.
Table 31. Willingness of Respondent to Tried Visit Banahaw Heals Spa
Client type
Households
Self Employed
Students
Working Individual
Total
yes
12
10
8
18
48
%
19%
16%
13%
29%
77%
no
%
5
3
2
4
14
8%
5%
3%
6%
23%
Total
17
13
10
22
62
The 62 respondents who are not aware of Banahaw Heals Spa was asked
if they are willing to visit the spa. At least 48 out of 62 respondents or 77% are
willing to visit the spa.
There are 14 respondents that are not willing to try Banahaw Heals Spa.
Mostly, they are households who are using specific spa as their alternative
treatment for their pain or injury.
80
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Table 32. Respondents Who Already Availed of Massage Services of
Banahaw Heals Spa
Client Type
Households
Self Employed
Students
Working Individual
Total
Yes
33
19
11
28
91
%
24%
14%
8%
20%
66%
No
6
9
19
13
47
%
4%
7%
14%
9%
34%
Total
39
28
30
41
138
Table 32 shows that 138 respondents who visit the Banahaw Heals Spa
were asked if they had availed of services in the spa. The 91 respondents or
66% of the total answer had already availed of the services in the spa. Mostly,
households do avail the massage and other services in Banahaw Heals Spa.
Table 33. Willingness of the Respondent to try the services of Banahaw
Heals Spa
Client Type
Households
Self Employed
Students
Working Individual
Total
Yes
9
8
9
17
43
%
9%
8%
9%
17%
43%
No
0
0
1
3
4
%
0%
0%
1%
3%
4%
Total
9
8
10
20
47
Table 33 shows the willingness of the respondent to try the services
offered by Banahaw Heals Spa. The survey was conducted to 47 respondents
who have not yet availed of the services. Majority of the respondents or 43% are
willing to try the services offered by Banahaw Heals Spa. However there are 4%
of the total responses that are not willing to try the product.
81
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Table. 34 Frequency of respondent on how they know the existence of
Banahaw Heals Spa
Particulars
From Family
And Friends
Social Media
Word Of Mouth
Advertisement
Total
Household
s
Self
Employe
d
Student
s
Working
Individu
al
Tota
l
%
22
6
4
4
36
19
4
1
4
28
8
14
2
2
26
33
12
2
1
48
82
36
9
11
138
59%
26%
7%
8%
100%
Meanwhile, respondents are asked to know how they know of the
existence of Banahaw Heals Spa. About 59% of the respondents already know
the business through family and friends, While 26% of the respondents know it
from social media. Others knew it from advertisement and word of mouth with 11
and 9 respondents respectively.
Table 35. Respondents’ Familiarity of Services Offered in Banahaw Heals
Spa
Spa
Services
Swedish
massage (Hilot
Ginhawa)
Signature
Massage (Hilot
Pamana)
Reflexology
(reflexology de
Banahaw)
ventusa
(Traditional)
Body Scrub
Others
Total
Households
Self
Working
Students
Total
Employed
Individual
%
13
11
10
9
43
31%
10
14
5
8
37
27%
4
5
2
7
18
13%
5
5
3
40
7
3
1
41
3
1
6
4
2
36
82
21
21 15%
13
9%
6
4%
138 100%
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Spa establishment services offered are mostly similar. They vary only in
the technique used in massaging, thus this survey was made to ask those
respondents if they are familiar with the product. The alternative use in this
question was determined based on the top selling services of Banahaw Heals
Spa
Most of the respondents are very familiar of Swedish massage which
obtain 47% of the total answer. This is followed by 23% respondents who are
more familiar with signature massage, Ventusa (15%), Body scrub and
reflexology (7%) and other services (3%).
Table 36. Respondents’ satisfaction of services offered by Banahaw Heals
Spa
Client Type
Households
Self Employed
Students
Working Individual
Total
Yes
36
28
13
44
121
%
26%
20%
9%
32%
88%
No
9
3
1
4
17
%
7%
2%
1%
3%
12%
Total
45
31
14
48
138
Table 36 shows the satisfaction of respondents on the rendered services
of Banahaw Heals Spa. It shows that 121 or 88% of the respondents are satisfied
with Banahaw Heals Spa and 17 respondent or 12% are not satisfied.
Majority of the satisfied respondents are working individuals which obtain
44 or 32% of the total answers this is followed by households which is 36% of the
total answer, 28 self-employed and 13 students.
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South Cotabato, Philippines
The 17 respondents who are not satisfied with the services as shown in
the table consist of nine (9) respondents, four (4) working students, three (3)
Self-employed and one (1) student.
Table 37. Affordability of Service Price
Client type
Households
Self Employed
Students
Working Individual
Total
yes
43
31
25
87
186
%
22%
16%
13%
44%
93%
no
%
2
5
7
14
0%
1%
3%
4%
7%
total
43
33
30
94
200
This section asked all respondents about the service price of Banahaw
Heals Spa. A total of 186 of respondent agree that the price of the spa is
affordable while 14 or 7% of the respondents answered that the price of the spa
is not affordable.
Table 38. Frequency in Recommending Banahaw Heals Spa
Client Type
Households
Self Employed
Students
Working Individual
Total
Yes
41
28
24
44
137
%
21%
14%
12%
22%
69%
No
1
1
%
0%
0%
0%
1%
1%
Total
41
28
24
45
138
Table 38 shows that one hundred thirty seven (137) respondents or 69%
signified their willingness to recommend Banahaw Heals Spa. This means that
the clients’ level of satisfaction is high.
Most of the satisfied clients are working individual followed by households,
21%, self-employed, 14%, and 12% students.
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NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Findings and Recommended Strategies
The following are the findings identified during the internal analysis of the
different business aspects of Banahaw Heals Spa and the recommended
strategies for these findings.
Organizational aspects
Finding 1: Banahaw Heals Spa does not have a vision statement and the current
mission statement lacks the necessary characteristics to be effective.
Recommended Vision Statement
“Our vision is to be recognized as one of the most innovative and leading
companies at providing delivery massages and related services in the
Philippines.”
Recommended Mission Statement
“With the commitment and the professionalism of our employees, we'll
offer those exposed to the exhausting daily rush a better lifestyle through
relaxation, leisure, comfort and serenity. “
“We ensure excellent services and satisfaction in the best working
environment through flexibility of location based on customers’ wishes and the
use of innovative technology in express massages and related services”.
Finding 2: The Company does not have an Organizational chart.
Without a formal organizational chart employees may find difficulties to
know their immediate officer and it may create confusion in their specific
responsibility and accountability.
Recommended Organizational Chart
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NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Organizational chart provides guidance to all employees by laying out the
official reporting relationships that govern the company. It is recommended that a
company should have an organizational chart.
Manager/Owner
Therapist
Reflexologist
Cashier/
Receptionist
Figure 10. Recommended Organizational Chart
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NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Finding 3: Five Year Plan with Action Plan
Table 39. Proposed Five year- plan
Objectives
Create
chart
organization
Reconstruct Mission and
construct Vision
Statement
Implement Policies and
procedures
Increase the number of
employees
Increase the amount of
workshops training for
the employees.
Incentivize
employees
with more motivating
alternatives, promoting
them to potentiate their
work.
Increase the sales in a
50% by increasing the
number of massages
done per
Review of prices
Add two new services of
relaxation to its portfolio
per
Conduct and implement
employees performance
appraisal
New marketing channel
Provide
a
positive
experience
to
the
customers building their
loyalty towards our firm.
Time
In charge
Assumptio
n
immediatel
y
owner/manag
er
N/A
immediatel
y
owner/manag
er
approved
by the
franchisor
immediatel
y
owner/manag
er
N/A
2 years
owner/manag
er
N/A
number of trainings in a
year
Five years
all personnel
approved
by the
franchisor
Increasing incentives,
measuring customer’s
satisfaction per month.
Five years
owner/manag
er
N/A
Average of massages
done per day during
one month.
Five years
all personnel
N/A
prices must visible in
catalog
2 years
owner/manag
er
Number of massages
per year.
3 years
owner/manag
er
Five years
owner/manag
er
Indicator
definite organizational
chart reflected in a
company
clear Vision and
Mission statement
displayed in favorable
space
written policies and
procedure and manual
as guide for operational
of the company
Number of employees
working per day.
assessment of workers
performance
increase in sales
one year
Number of frequent
client per month.
5 years
87
approved
by the
franchisor
approved
by the
franchisor
N/A
N/A
Employees
N/A
Graduate School
NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Finding 4: Implementation of Policies and Procedures
Recommended Strategy
Banahaw Heals spa should implement strict policies and regulations as it
will set guidelines, methods, procedures, rules and administrative practices to
support and encourage performance and proper ethics in the company toward its
stated goals. The written policies must be laid out in a policy manual.
Operational/ Technical Aspects
Finding 1: Review the pricing of Banahaw Heals Spa
Recommended strategy
Strategy 1: Review the current prices of products and services. Assess the
impact of the price if it is similar with other spa services
Strategy 2: Identify those spa services that are different in prices especially from
those major competitors
Strategy 3: Implement industry special pricing to tap new markets for existing
products and services.
Strategy 4: Provides discounts in terms of membership card, loyalty cards,
combo rate to increase volume of sales.
Strategy 5: Identify possible clients in various industries like private companies,
hotels and resorts.
Marketing Aspects
Finding 1: Banahaw Heals spa services need to innovate products to compete in
the market.
Recommended strategy:
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Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Market Penetration
It is important and necessary to make the various people who are interested
in the service to know about the company and the various services provided.

Increasing online promotions to a 5% for those customers who share
through social media their good experience with the spa.

Launch price discounts in peak seasons (e.g. valentine’s day)

Lowering the prices of different types of massage, so that in this way they
are more attractive than the competition but never leaving behind good
customer service that characterizes the company.
Market Development:

Opening New Market Channels
Create opportunities by breaking into new geographical areas such
as areas where Banahaw Heals Spa seems to be weak in terms of
attracting clients. This can be done by establishing linkages with
barangay officials, SME’s and households in the area.

Additional new services to offer
Continuing to explore the preferences of consumers on the different
kinds of massages and to createsmedi-spa massage such as acupuncture
to dominate markets in Koronadal City.
Product Development:

Seeking increased sales by improving present massages.
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Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
Focusing on what is more frequently requested by the customers
and potential it by increasing the time of the massage and improving the
techniques through capacitation of the personnel.

Segment the market to specialize in a small range of specific
massages instead of having a wide range of massages.
Flexibility in massage time range option for the customers, and
specialization in a small range of specific massages instead of having a
wide range of massages.

Enhance employees’ experience in massage through periodic
training sessions, allowing them to recognize what’s their weakness
to reinforce it
Financial Aspects
Finding1: There is no periodic review to assess business performance.
Recommended strategy

Conduct a strategic planning activity to review the various aspects of the
business. Formulate plans, set goals and objective in both operational and
financial for Banahaw Heals spa.
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NOTRE DAME OF MARBEL UNIVERSITY
Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
CHAPTER V
CONCLUSION
The objective of this study is to evaluate the different aspects of operation
of Banahaw Heals Spa. This is to assess the current market position of the
business and recommended strategies in the organization, operational,
marketing and financial aspects that will set its direction for the next five (5)
years.
The internal analysis of Banahaw Heals Spa reveals internal strengths
that the business has not fully utilized to its advantage.
Organizational aspects
Establishing a proper organizational chart will help Banahaw Heals Spa to
strengthen its relation with the employees and also to have a clear policy making
and chain of command. Having an efficient mission and vision statement will
provide the owners of the business an outline of what Banahaw Heals Spa wants
to achieve and to guide its future operations. The spa should implement policies
and well serve as guiding principles to discipline and to have a performance
appraisal of the employee.
The five year-strategic plans with annual plan helps the company monitor
and assess its performance.
Operational/Technical Aspects
Knowing the internal operational capacity and the capacity of competitors
would allow Banahaw Heals Spa to make an efficient decision regarding its
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technology and assess if it can effectively co-exist with other industry players
once competition becomes firmer.
Marketing Aspect
The affordability of price of Banahaw Heals Spa will tap new clients or
market segments that will significantly increase its market share and influence
within the industry. The unique distinction of the business is a promotional
measure to attract new customers and service patronage.
The sales promotional campaign through membership card will increase
service usage of existing customers and encourage new clients to the Banahaw
Heals Spa services.
Financial Aspect
The periodic review and monitoring of financial records will enable the
company to compare objectives with actual results and assess the effectiveness
of strategies implemented. This will also reveal inefficiencies within the
processes and procedures of the business and allow timely resolution to these
problems.
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South Cotabato, Philippines
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Alunan Avenue, City of Koronadal 9506
South Cotabato, Philippines
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