Andrew Hatfield
Andrew Withers
David Maillie
Isil Ecevit
Nawaf Nizamudeen
Contents
Abstract ______________________________________________________________ 2
Current Status__________________________________________________________ 5
Major Policies__________________________________________________________ 7
Financial Analysis_______________________________________________________ 13
Strengths______________________________________________________________15
Weakness_____________________________________________________________ 16
External Analysis________________________________________________________ 17
Strategies______________________________________________________________19
Appendix______________________________________________________________ 26
References_____________________________________________________________ 29
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1. Abstract
Description
Bambu Organic Massage is a privately owned massage therapy business located in
Charlotte, North Carolina. Bambu was opened to business in 2011 and currently operates
with one store location. Jeff Schaefer, the owner and the manager of Bambu Organic
Massage, created a small business that provides organic massages by offering therapeutic
services with eco-friendly products. His target market ranges from 18 to 75 and are
predominantly women. It is common for a moderate to high income clients to come in for a
massage on his or her lunch break.
Owner:
Jeff Schaefer
Location:
9539 Pinnacle Dr. #340 Charlotte, NC 28262
Staff:
Eight (8) therapists with extensive experience
Hours of Operation:
Mon-Thurs: 10am-8pm
Fri & Sat: 10am-5pm
Sunday: Closed
Services Offered:

Swedish Massage

Deep Tissue Massage

Hot Stone Massage

Bamboo Massage

Focus Massage

Sports Massage

Neuromuscular Massage

Couples Massage

Reiki Massage
2

Thera-Cupping Massage

Aromatherapy Massage
INADA Consulting LLC conducted an in-depth analysis of business operations to identify
some key issues that the Bambu Organic Massage is facing. The list of some of the key
problems that Bambu currently encounters are:
Problems Identified:

The therapist has cold hands

Out of date with technology

Never described what “organic” massage truly meant

No up sell strategy before massage

No up sell strategy for different products

Poor location for foot traffic

Poor marketing strategy

Limited service space

No set front desk employee for scheduling appointments
During our research we gathered various solutions we think will help solve some of the
problems identified above:
Recommended Solutions Implemented:

Set of policies and procedures for therapist to follow

Establish a customer database for therapist to use on computer

Design Website, Facebook, Twitter for internet exposure

Train therapist for importance on organic and how it differentiates itself from other
massage companies

Train therapist on upselling before massage, by offering aromatherapy and lotion to the
customers

Incentive program for the therapist
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
Train therapist on offering customers to sign up for next appointment after massage has
taken place

More advertising

Offer discounts as necessary

Hire an office manager to take care of administrative tasks

Expand business, open more stores in different locations

Survey for customers
Recommended Solutions Potentially not Implemented:

Hire an office manager to take care of administrative tasks

Expand business, open more stores in different locations

Update Website
The purpose of this study was to consult Bambu Organic Massage with ways to improve
their overall business. Analysis of operations was performed through using two members of
the group as secret shoppers.
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2. Current Status
History
Bambu Organic Massage began in 2010 as Mallard Creek Massage in Charlotte North
Carolina. Jeff Schafer, a licensed massage therapist whom graduated in 2007 from the
Southeastern Institute as a certified clinical massage therapy professional. He also took
advanced therapy and clinical training to do Swedish, deep tissue, hot stone, refloxology,
Reiki and other massage treatments. In 2010. Mr. Schafer got bit by the entrepreneurial
bug. He was working at a local, franchised massage business and knew he could do the
same, but better. Mr. Schafer knew that if he committed to providing his patients with the
best in customer service that he could excel and create a name for himself and his business
in the Charlotte and Mecklenburg county area.
It all began as a no frills, 2 room massage therapy business. The location wasn’t the most
ideal and the space he rented for the business was small and not the best, but it was all that
Mr. Schafer could afford at the time. Mr. Schafer put all his time, blood, sweat and tears into
the business. At first it was just himself and a friend. Then a few more people he met
through the massage industry were added. Before too long they outgrew that location and
Mr. Schafer started looking for a bigger location.
He found several locations in Birkdale, South Park and Ballentine which would have been
ideal, had it not been for the long commute (in the cases of South Park and Ballentine – Mr.
Schafer lives in the North Charlotte, University area) and the very high rent prices in each of
those three areas. After narrowing it down to two locations (one on Harris Blvd. and the
other behind UNCC) it was decided that the current location at 9539 Pinnacle Dr. Suite 340
in North Charlotte (behind UNCC) was chosen.
Along with the change in location and larger size for the business, Mr. Schafer decided it
was time for some other changes. He was no longer going to be located exactly on Mallard
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Creek Road or near the creek and greenway. He also had visions of future expansion to
other areas in and outside of Charlotte North Carolina. So, he needed a business name that
was better suited for this. At the same time he also wanted to further differentiate himself
from the local competition. He wanted to take a bold step and use 100% organic and green
products in his massage business.
The use of organic and environmentally friendly products is not required in massage
businesses in North Carolina or in the U.S., for that matter, but it was a huge step and it was
going to make him one of (if not the only one) the only licensed massage therapy businesses
that offered this organic, green massage therapy. No longer were they going to be using the
cheaper, petroleum based oils their competition was currently using and that have chemicals
in them that were meant for washing commercial trucks and aircraft. No longer were they
going to use cheap paraffins which have been linked to increased rates in breast cancer
through various research experiments.
They were going to go boldly where no other Charlotte massage business has gone before
and use more expensive, 100% organically derived massage lotions and products. Mr.
Schafer knew this was going to cost him more money and reduce profits, but he wanted to
give his customers the best products and treatments out there along with service that is
second to none. So he also instituted a requirement that all massage therapists at his
business will have a minimum experience level of 2 years post certification. That was a bold
step as most massage, businesses like Massage Envy, are mostly staffed with recent certs
or people that just got out of massage school.
This was going to make it harder and more expensive for him also, but he wanted the best
for his customers. Even though he couldn’t afford the plush waiting rooms and water
fountains that his competition offered, he knew he could more than compete with great
individualized service, better training and expertise, and a completely organic line of
massage oils and products. He was also going to beat the prices of the competition! He
was going to offer healthier and better massages at lower prices! So, in late 2011, he
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opened the doors on his new Bambu Organic Massage and he hasn’t looked back since.
Below are the mission and vision statements for Bambu Organic Massage:
Mission statement:
To provide people in the Charlotte and Mecklenburg County area with superior massage
treatments and 100% organic products through higher levels of service and expertise.
Vision:
In the next couple of years to emerge as the preeminent and best massage therapy
business in Charlotte, NC. In 5 years to have expanded to several locations throughout
Charlotte (to include Birkdale, Huntersville and possibly South Charlotte). And, long term to
have dozens of franchises on a national scale in states like California, Arizona, Florida and
New York.
2.1. Major Policies
1) Marketing
Nature of Product Line:
Bambu Organic Massage (BOM) offers a variety of therapeutic massages ranging from
Swedish massage to Reike, hot stone, neuromuscular, couples massages and more. They
also offer additional services and features like aromatherapy and similar that customers can
have added to their massages.
Extent of Market Penetration:
70% of the massages at Bambu are deep tissue and couples massages. During holidays
like Valentine’s Day, couples massages compromise almost all of their business. Revenue
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at BOM primarily stems from repeat customers and online gift card sales and coupons from
sites like Groupon and Living Social. The company has one location in Charlotte, North
Carolina and derives pretty much all of its sales from the North Charlotte area. Customers
at BOM are typically middle aged individuals and couples from the nearby community and
business park.
Channels of Distribution:
Bambu is set up with a small waiting room and four massage rooms (3 single bed rooms and
1 couples massage double bed room). The front desk, which is located right next to the
waiting room is where customers can ask questions about the various massage and product
offerings, pay for a massage and more.
Promotion Methods:
The company currently promotes through online advertising. They mainly use two online
coupon websites (Groupon and Living Social). They also rent booth spaces at local
community and business fairs. To further put their name out there Mr. Schaefer and a few of
the therapists will go to local businesses like Wells Fargo bank and give free 10 minute focus
massages to try and drum up business.
Pricing:
Bambu does not really compete on price. They differentiate themselves by using wholly
organic products in their massage services. The typical massage lasts 50 minutes and runs
$35 to $60, depending upon if a coupon is redeemed or if they received it as a gift from an
online coupon website. There are upsell products and services like aromatherapy and
coconut oil. These services or products add another $5 to the price. BOM is big on
customer satisfaction and their reputation as being the preeminent provider of organic
massages in the Charlotte metropolitan area as well as surrounding communities.
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Non-price competition:
Rather than competing on price, BOM differentiates themselves with their organic product
offerings and higher levels of expertise then the competition. The average in years of
experience that the massage therapists at BOM have is 3.5 years. The competition, like
Massage Envy, tends to hire at the lower end of the spectrum and specializes in recent
graduates from various massage schools. Overall, Bambu has 28 years of experience with
their therapists whereas the largest competitors, like Massage Envy, have at best 10 years
combined experience.
Market Research:
The owner of Bambu reads industry related journals and attends local trade shows to learn
about the latest in treatments, devices, products, etc. He also talks to other massage
therapists and business owners to discuss business in general and find out what other
business owners are doing.
Environmental:
The products employed by the therapists at BOM are organic and very green for the
environment. All products that they use (i.e. massage oils, soaps, cleansers, etc…) are
100% organic and biodegradable. So, all products they use are environmentally friendly.
This organic and environmental friendliness even goes so far as to include the paint used on
the walls which was selected for its low VOC (Volatile Organic Compounds) content. Bambu
is committed to various green initiatives and their environment.
Expanding Offerings:
To promote add-ons or upsells like aromatherapy and coconut oil, etc. to increase profits,
client satisfaction and the overall customer experience.
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2) Manufacturing/Operations/Production
Product Offering Policy:
Organic, healthy and environmental friendliness are the basis of their offerings. Bambu
takes pride in its commitment to organic products and higher levels of expertise (more than
twice the industry average here in the Charlotte metro area).
Limiting Costs:
In efforts to reduce costs, the owner of Bambu Organic Massage has sourced several
suppliers so it is not dependent on any one supplier of their organic products. The owner,
Jeff, has also researched making his own organic oils, lotions and more. In the near future
he is looking into rolling out his own organic product line.
Type of Integration:
Bambu is not currently integrated, but that will change shortly as the owner is looking into
white labeling and making their own massage oil candles.
Risk Management:
Bambu Organic Massage lowers the risk of client acknowledgement by getting the
customers to fill out a form of their health conditions prior to the massage.
3) Finance
Sources of Funds:
Bambu clients pay by cash or credit, debit card. Checks are not accepted except in the case
of long standing, repeat customers. Therapists rent the rights to use the four massage
rooms at $455 per month payable at the beginning of each month (plus a small percentage
10
of sales). Sales of upsell products are shared between the therapist and the business ($2
goes to the therapist and $3 to the business).
Employee compensation:
All full-time employees share in the profits they generate 100%. The business only takes a
minor cut of massage prices relative to the competition. The business does not share in any
generated tips.
4) Personnel
Empowerment of workers:
Workers at all levels are encouraged to come up with new ideas. The owner of Bambu is
constantly looking to try new ideas to bring in more clients and/or to become more profitable.
Employee well-being policy:
The owner/business wants all therapists to make as much money as possible and only takes
a small cut of the profits from their massages.
Compensation Based on Performance:
Massage therapists are paid by performance and attendance. If they are not available on
certain days then they cannot perform massages or get paid for those days. How much they
work is up to each therapist and the monthly rent is still the same. So it is beneficial to the
therapists to make themselves as available as possible.
5) R & D
Investing in R & D:
Research and Development is important at Bambu. Even though we are in a major
recession, and even though the owner of Bambu has very limited financial resources, the
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owner is making R&D very important. He wants to know how he can lower costs more
effectively, increase profits, incorporate new offerings, etc. For example, soon he wants to
roll out his own line of organic massage oil candles.
Level of spending:
At Bambu, right now there isn’t a lot of revenue or profits yet, however, Jeff Schaefer (the
owner of BOM) has made attending industry specific trade shows, massage and health
related conferences, lectures, classes and more a priority. He wants to learn about the
latest advancements and then incorporate whatever is feasible into the product line and
services offered at Bambu Organic Massage.
6) Community Relations
Employee participation in external activities:
Therapists at Bambu are encouraged to attend or participate in community events, trade
shows, etc. to further get the business name and organic massage offerings out there.
Reputation:
Reputation in the massage therapy business is everything. All it takes is for a single
unhappy customer to start spreading negative information and sales will plummet drastically.
At Bambu, everything revolves around the customer.
Environmental protection:
The owner at Bambu does not want to do anything to tarnish their environmentally friendly
and green, organic reputation. Organic is their main weapon of differentiation so they will
not use any products or anything that is not proven green, environmentally friendly and
organic in their place of business.
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3. Internal company analysis
Financial

Company revenues are based solely on sales from massages

The owner tracks all the sales through an excel spreadsheet and currently has no annual
reports

Company has managed to stay in the black
We currently are only able to access his financials starting in 2012. Starting in January 2012,
Bambu massage had its highest revenue month with $14,469.62. In February the revenues
dropped 39% to 8,816.43 and in March we see it drop another 11% to 7,785.05. We predict
the reason January was such a big month for the company was due to gift cards and the
holiday season the month before.
Income
Sales
Living Social
Groupon
Total Revenue
January
February
534.90
$ 1,084.75
$ 13,934.72
$ 7,731.68
$ 14,469.62
$ 8,816.43
$
March
$ 203.00
$7,582.05
$7,785.05
Mr. Schaefer started out using an accountant, but then realized he could cut costs by doing
this himself. He currently has no software to manage all of his expenses. Mr. Schaefer has
started to use excel to track revenues, expenses and profit. We highly suggest he invest in
software that will let him track his financials more in depth. He currently accepts payments
through debit card, PayPal, credit cards, and cash. The payments go straight to his checking
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account. Bambu does not have a personal business account set-up. Bambu has managed
to stay in the black and the Cash Flows have started adding up for the business in 2012. As
of now, he currently has $15,700.75. We are encouraging him to take this money and invest
as much as he can back into the business.
Advertising
$48.95 JAN
$9.98 FEB
$90.13 MAR
One Bambu’s major weaknesses was putting money into advertising. For 2012 he has only
invested $149.06. Bambu currently does not have much overhead expenses. He currently
pays $1238.10 in rent, which is his biggest expense for the company. The therapists rent out
there on rooms for their customers and Mr. Schaefer receives a certain percentage of the
massage that is sold. The therapist pays $455.00 a month for usage of the facility. Mr.
Schaefer has started making his therapists sign contracts where the rent is due the same
time every month. If the therapist only has one customer for the month they still will owe
$455.00 for the month regardless. He does not have therapists on the payroll, they are
considered self-employed. The therapists keep 100% of the tips they make throughout the
day as well. Bambu’s second biggest expense is their utilities, which currently average out to
be $262.00 a month.
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Daily Deal Site Revenue
Groupon
1/1/12
719 sold
$21,541 ($40 for $80 worth of service)
to date: Redeemed: 409 (56%)
Living Social
3/28/12
$7,600 (50 min Deep Tissue for $29)
415 sold
Redeemed: 131 (31%)
5/25/11
$11,126 (50 min Deep Tissue for $29)
603 sold
Redeemed: 504 (83%)
1/07/11
438 Sold
10,582 (50 min Hot Stone Massage for $37)
Redeemed: 349 (79%)
The chart above shows Groupon’s sales for 2011 which totaled $21,541. Groupon and
Living Social are deal-of-the-day type websites that features discounted gift certificates
usable at local or national companies. The gift certificate includes $80.00 worth of service
priced at $40.00. The majority of customers they receive from these websites are drawn
from the local Charlotte community. Mr. Schaefer uses a strategy alternating between Living
Social and Groupon to better average out customers and demand.
4. Major Strengths
Unique product:
Bambu Organic Massage offers a premium massage services. But unlike most massage
establishments, Bambu uses only 100% organic massage oils and lotions as their products.
The products are paraffin free, nut oil free, fragrance free, and propylene glycol free.
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Employee satisfaction and loyalty:
Jeff, the owner of Bambu massage is a masseuse himself and he was deeply distraught with
the way many franchises pay structure was established. Therefore, he changed the structure
to build a more employee friendly finance structure by not taking a commission off employee
massages and charging only a space rent fee. As a result employees have remained loyal
and have stayed with the company since its inception.
Independent business owner:
As an independent business owner Jeff enjoys the full freedom of running his business the
way he deems sees fit. He does not respond to any corporation and thus can run his own
advertising campaign.
Experienced staff:
Jeff only hires massage therapists who have proper certification for massage and have at
least 2 year of massage experience. This ensures a high level of skill and core competence.
5. Weakness
Poor location:
Being located on top of Wild Wings Café in an area where there is minimal walk through
traffic, the business relies heavily on marketing through word of mouth and very little from
walk ins. In addition, the university area may be an ill-suited location to open an organic
massage establishment because the clientele in the area may not understand or be willing to
pay for added value that organic massage produces provide.
Poor marketing campaign:
Bambu relies almost exclusively on word of mouth for advertising. By doing this the business
greatly limits the scope of customers that it can reach.
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No up selling strategy:
Bambu provides customers with scented oils to add to the massage for a $5 premium.
However, customers rarely understand the benefits of adding any therapeutic oils to the
massage. Employees do not up sell these products nor do they explain the benefits of the
use of these products to customers. These result in lost opportunity for revenue.
Does not emphasize their differentiator:
During a secret shopper evaluation, it was revealed that even to new customers who have
never had an organic massage; the therapists never emphasized it or explained how their
service is different from the standard massage.
No Administrator for front office:
Mr. Schaefer does not keep a front desk clerk on staff this keeps the property prone to
external threats such as theft. Furthermore, customers that happen to pass through
potentially walk into an empty lobby without a greeting.
6. External environmental analysis
General economy
The general economy in Charlotte is set to grow at a modest pace for the next 2 years with a
vast majority of jobs in the education, finance and medical field. In these sectors a vast
number of employees are generally on their feet during work hours these are professions
that are dominated by middle aged women. These types of jobs help expand Bambu’s target
market. On a cautionary note, the economy is still in a slow-moving pace and many
Americans remain fiscally conservative and will thus refuse to spend on services that they
think is an excess (such as massage services.)
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Industry and competition
There are a number of competitors in the general area that offer massage services. The first
is the Gotta Yoga establishment next door. Although they do offer neither massage services
it is not well marketed nor is it a core competence of the yoga establishment. In addition, the
greater competition stems from Massage Envy located 5 min away. Massage Envy enjoys
the benefits of a large well-funded marketing campaign. However, massage envy
employees are usually under compensated and do not stay with the company very long once
they are experienced.
Social
With the improvement in medical technology there is a growing trend in the number of
middle age to seniors (30- 80) in the local population. This trend can be advantageous to
Bambu if its marketing efforts are targeted to this market segment.
Regulation
There is now regulatory changes in that could decide if massage centers can be paid
through medical insurance or a Health Savings Account. The approval of this policy will be
favorable to massage service industry because customers will now see this as savings that
insurance will pay for.
Technology
With recent changes in technology, it is now important to reach out to customers through
new methods, i.e. Facebook and Twitter. Furthermore, there is a growing threat from the
automated massage products such as massage chairs and automated water massage.
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7. Problems identified for solution summary

Poor marketing campaign

Upselling strategy

Does not emphasize their differentiator

No exclusive manager/front desk clerk

Customer, employee and upselling database
8. Strategies
8.1. Recommended solutions implemented:
Poor marketing campaign:
Currently at Bambu Organic Massage, there is little marketing done outside of online coupon
websites (Groupon and Living Social). At the time we started this project, the predominant
form of marketing taking place at Bambu was word of mouth. They relied on satisfied
customers sending them referrals. Even though it is great to get referrals, this business
should not depend so heavily on this form of free advertising. In its early stages this could
seriously impact its growth and its ability to be sustainable in the future.
It should be noted that the massage business is currently located on the second floor in a
strip mall where there is no real walk-in traffic. There was not a walk-in customer during the
project period. This is a large problem as it greatly limits the number of customers they will
serve and has a serious impact on their business as a whole.
The business would greatly benefit from additional advertising and/or marketing. We
conducted preliminary advertising in several areas that we felt would be optimal for their
desired clientele. These areas included parking lots at IKEA, Trader Joe’s, Lowe’s Foods,
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Harris Teeter and Target. We also passed out flyers and discounted coupons at Wells
Fargo, CMC University, and other similar, local businesses.
The results were that from passing out flyers in the various parking lots we found that
roughly 1 out of every 1,000 flyers placed on a car window results in scheduled appointment
for a new customer. Outcomes were much more positive when the advertisement was done
closer to the business. At local area businesses like Wells Fargo, we were afforded more of
an opportunity to speak to potential customers and inform them of this massage business, its
location and the benefits of an organic massage. Even though the effects with the
businesses varied, about 1 out of every 50 flyers passed out lead to a scheduled
appointment for a new customer.
With these numbers it’s obvious that businesses work better compared to parking lots. One
has to keep in mind that the parking lots were covered very quickly even though the return
was very low. Whereas at the businesses we pretty much had at least a small conversation
with each person we gave a flyer to, and this took considerably longer but had better results
in the long run. During slow periods Bambu could easily send out a therapist to place flyers
on windows or to go to local businesses, hand out coupons, educate customers and possibly
even demonstrate a few free massages. This would improve their client base and make up
for the lack of walk-in customers.
Upselling strategy:
During the initial owner interview and talking with his massage therapists it was determined
that there were several products that could be offered more effectively to add value to the
massage service and profits. However, these products were not being actively offered by the
therapists. The customers did not know they existed. This is a problem because there are a
lot of additional revenues they are missing on. Also, they are not adding maximum value to
the customer’s experience.
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Being that project member David Maillie, whom has had over 10 years of sales experience
and has had vast experience in selling and the importance of upselling, we utilized his ideas
to address this problem. First, we started by educating the therapists and the owner of the
importance of implementing an effective upselling strategy to increase sales revenue and
profits for both the therapists and the business.
The strategy involves educating the therapists on the importance of upselling and showing
them how to look at things from both a short term and long term perspective. When shown
potential profits, the therapists and later the owner became more enthusiastic about
implementing this strategy. David emphasized that it is a numbers game and the more
people they offer the additional products, the more they will sell and the more money they
will make.
A database was created for ease of visualizing results and tracking sales and profits. This
database was created with an interface for employees so they can monitor one another’s
achievements and compare to each other. A separate interface for the owner was created
that automatically summarizes all up-sales data and converts it into profits realized by the
business. By utilizing these interfaces and putting more effort into upselling they will all
benefit.
Does not emphasize their differentiator:
The main factor differentiating Bambu from the competition is their use of 100% organic
products and emphasis on environmental friendliness. There is a plethora of competitors in
the massage business area in Charlotte North Carolina, but there are not many in the realm
of organic massage. There is an importance to this differentiation.
First off, most massage oils are made from petroleum distillates which have been linked to
cancer and health issues over the years. Bambu doesn’t use the cheaper, petroleum based
oils that have chemicals in them that were meant for washing commercial trucks and aircraft,
like their competition does. The competition also uses products made from various cheap
21
paraffin's which have been linked to increased rates in breast cancer in women through
various research experiments (Paraffin candles, 2009).
So, it is obvious that organic based products are important and healthier than their nonorganic counterparts. This organic differentiation is important and vital to the business. If it
were used correctly in advertising and marketing, Bambu could really become a market
leader in the area, or at least until others caught on and started following the organic trend.
Organic is a current trend but it has longevity to it, as it is also equated with environmental
friendliness and being green, which are both important factors today. Being that Bambu is
100% organic and uses products that are biodegradable and friendly to the environment,
they need to capitalize on this and use it in their advertising and marketing. They also need
to take the time to educate their customers on organic massage and how it benefits the
customer. Right now the staff does not do this and when asked, the owner referred us to the
website. This is a problem and a missed opportunity.
To fix this issue, we educated the owner and staff on the importance of educating their
customers on organic massage and how it benefits them. A requirement was put in place
that every new customer is initially educated on the difference between a regular and
organic massage as well as the healthful benefits. We found it only takes a few minutes at
most to make the customers fully aware of the organic difference and this directly correlated
to an increase in customer satisfaction and referrals.
No exclusive manager/front desk clerk:
Bambu Organic Massage is run by the owner, Mr. Schaefer and when he is either giving a
massage or is not there, there is no set person to manage the store or operate the front
desk. This is a major problem when there is no one at the front of the store to help
customers or to watch over the business.
If a customer were to walk in there is a high likelihood that there will be no one there to greet
them or answer any questions they might have or any phone calls that could come in. Many
22
times the staff is back cleaning rooms or performing massages and this leaves no one to
man the front desk. This presents a very poor and unprofessional image. There is a definite
need for someone to be at the front desk during the business hours. There is also a need for
consistent management at the same time. Mr. Schaefer runs the business, but when he is
back performing a massage or is not there, he tends to leave control in the hands of the
therapists available. This is a recurring problem and can lead to service issues and lack of
professionalism.
There is a need for Mr. Schaefer either fills the role of manager himself and not to do
massages anymore, or to find someone else to fill this role. Mr. Schaefer, upon consultation
about this issue, made it clear that he would use therapist Kendra Leary as his manager
when he is not there or busy performing massages. The two of them would set their
schedules so that one would always be available (they can’t both be doing massages at the
same time or have the same day off). This would address the management and front desk
issues.
By filling this need with an agreement between Mr. Schaefer and Miss Leary to co-manage
the business it would help the overall operations and professionalism of the business. It will
make them more consistent with how the business is run. It would also help with
implementing upselling and making sure that all therapists are offering the maximum
customer experience while maximizing profits at the same time.
Customer, employee and upselling database:
In conversations with the owner of Bambu, Jeff Schaefer, it was made apparent that there
was a direct need for some kind of online records and tracking client, employee and other
important data. There was no real system at the time to handle this information in a way that
would be effective or useful. Upon consultation, it was devised that we would create a simple
and easy to use database for Bambu to use and modify.
23
The database we created for Bambu was made in Microsoft Excel which Mr. Schaefer
already has installed on his office computer and is familiar with. It was created with four
simple screens to include customer and employee information, monthly up sale information
per employee for tracking, re-education purposes and opportunities, and an overall totals
screen. The totals screen automatically updates with information from the other screens to
show the owner how profitable these up sales can be over monthly and yearly intervals.
After completion this database was shared with both Mr. Schaefer and Miss Leary. They
liked how easy and simple it was to use. This database was one of the main factors in
getting the owner and therapists on board with the importance of up selling and maximizing
the customer experience and profits.
8.2. Recommended solutions not implemented:
Lacking professional front signage:
Signage is extremely important, especially with a location like Bambu has on the second
floor on the backside of a strip mall. It is very hard to see where they are located, and from
the parking lot customers cannot see the signs to the business. This could potentially have a
vast negative impact on growing their business in both the short and long term.
Currently there is a sign on the front side, but the side where customers actually go up the
stairs and where the front door is has only a small 3’ X 2’ temporary sign attached to the
railing that is not visible from the courtyard below. The business needs to have a large,
professional looking sign like the one they already have on the back placed out front.
Mr. Schaefer has been told about this, but he said it costs around $3,500 to have one made
and installed and he does not have the budget to do this right now. Mr. Schaefer said he will
try and save up funds so he can have a second sign created next year.
24
Non usage of press releases:
Press releases are important for attracting customers and branding. If written from the right
angle they can potentially end up bringing in literally thousands of customers or more. The
average press release for a company is a one page write up on pertinent business
happenings and events or similar news. For a cost of around $80 to $100 through
PRWeb.com or a similar low cost press release submission website can be used to get a
story out to hundreds or even thousands of news sources from newspaper editors to news
channel staff and more.
Mr. Schaefer was informed of the power of press releases and the fact that they are low
cost, easy to target locality and easy to write and submit online. He stated that he was not
interested in doing press releases. Being how important they can be to driving traffic and
getting the word out we tried several times by showing him examples of press releases
written by others even to include a competing massage business (Massage Envy, 2011). In
the last visit he seemed more receptive to the idea. Unfortunately, we don’t see press
releases being implemented by Bambu Organic Massage any time soon.
That is unfortunate as a well written press release could result in his business getting local
news coverage, being featured in the Charlotte Observer and in some trade magazines. This
could help bolster or build his business and clientele. Still, we do not see press releases
being implemented anytime soon.
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9. Appendix
9.1. Client acknowledgment form
I, Jeffrey Schaefer, owner of Bambu Organic Massage, acknowledge and agree to allow
DBF Consulting Group, LLC. to conduct a full business review and consult of my business. I
am granting them permission to examine and review business financial records, interview
personnel, and to conduct a full internal and external analysis. This business review is
confidential in nature and is to be used for consulting purposes only.
I have received a copy of the final report. I found this project to:
________ 1. Be of use to me
________ 2. Not be of use to me
_____________________________
Client’s Signature
______________________________
Date:
______________________________
Witness:
______________________________
Date:
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9.2. Time log
Total time spent
Category
Time Allotted
Actual Time Spent (in hours)
Total Percentage (in hours)
Brainstorming
Meetings with
owner/manager
10
19
190.00%
20
18
90.00%
Group meetings
100
91
91.00%
Outside marketing
20
26
130.00%
Internal analysis
15
12
80.00%
External analysis
15
13
86.67%
Writing the report
25
25
100.00%
205
204
99.51%
Total
Individual time sheet
I. Ecevit
1
2
3
4
5
6
7
Category
Brainstorming
Meetings with owner/manager
Group meetings
Outside marketing
Internal analysis
External analysis
Writing the report
Total
Time Spent (in hours)
2
4
17
6
1
2
2
34
N. Nizamudeen
1
2
3
4
5
6
7
Total
Category
Brainstorming
Meetings with owner/manager
Group meetings
Outside marketing
Internal analysis
External analysis
Writing the report
Time Spent (in hours)
4
4
20
6
3
3
4
44
27
A. Hatfield
1
2
3
4
5
6
7
Category
Brainstorming
Meetings with owner/manager
Group meetings
Outside marketing
Internal analysis
External analysis
Writing the report
Total
Time Spent (in hours)
2
2
17
6
3
2
2
34
A. Withers
1
2
3
4
5
6
7
Category
Brainstorming
Meetings with owner/manager
Group meetings
Outside marketing
Internal analysis
External analysis
Writing the report
Total
Time Spent (in hours)
5
2
17
2
3
3
7
39
D. Maillie
1
2
3
4
5
6
7
Total
Category
Brainstorming
Meetings with owner/manager
Group meetings
Outside marketing
Internal analysis
External analysis
Writing the report
Time Spent (in hours)
6
6
20
6
2
3
10
53
28
9.3. References
“How to Put Massage Envy(R) Out of Business”. (2009, November 28). Retrieved June 3, 2012, from
http://www.indeed.com/forum/cmp/Massage-Envy/Put-Massage-Envy-R-OutBusiness/t37961
“Massage Envy Spa Business Plan”. (2011, January 24). Retrieved June 18, 2012, from
http://www.massageenvyfranchise.com/massage-franchise-why.php
“Paraffin candles could cause cancer” - new research finds. (2009, August 20). Breast Cancer Care.
Retrieved June 23, 2012, from http://www.breastcancercare.org.uk/news/blog/paraffincandles-could-cause-cancer-new-research-finds
Schafer, J. (n.d.). “Bambu Organic Massage”. Retrieved June 5, 2012, from
http://www.bambuorganicmassage.com/
Schafer, J. (2012, June 5). Personal interview.
Stewart, K. (2012, June 15). “N.C. economy to grow 2.1% this year”. Business News - The Business
Journals. Retrieved June 19, 2012, from
bizjournals.com/charlotte/news/2012/06/05/nc-economy-to-grow-21-this- year.html
Whitney, M. T. (2007, March 20). Petroleum-based cosmetics and skin care products found to
contain cancer: http://www.naturalnews.com/021717.html#ixzz1yjHpvSOo. Natural News.
Retrieved June 6, 2012, from http://www.naturalnews.com/021717.html
29
9.4. Research
Methods of company research
Research was conducted on Bambu Organic Massage by sending secret shoppers to pose
as regular clients. Two group members were sent (one female and one male) to assess the
business. The first would be very silent not ask too many questions and be the standard
customer. The second would see what information was given and ask questions such as
what are the benefits of organic, what products they use, etc., to assess staff friendliness,
skill and knowledge.
Research results
The results were that while the staff knew what the benefits of organic massages were they
never emphasized it. They never tried to upsell any products on display. The bathroom did
not have a shelf to put accessories such as purse, coat etc. over all it was found that the
staff was friendly. However, they did not employ any upselling or sales strategy.
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9.5. Database for client
31
9.6. Group marketing results and strategy
32
9.7. Marketing flyer sample
33