Marketing Plan Objectives Robin Russell Alexander Roth Karla Ochsner Company Profile Convenient luxury at an affordable price Internal Strengths Large service area Services can be offered to bigger parties (example: wedding parties) Pricing to beat competitors Guaranteed appointments Internal Weaknesses Advertising budget needs to be considerable to reach desired amount of clients Large facility means large start-up cost required More overhead costs Finding enough employees with the required skills External Opportunities Households in Yellowstone County Women ages 18-64 % of Women that visit day spas Total Day Spa Market Divided by 7 Competitors Target Market Women 35,411 Billings, MT x 60% 21246 3035 Target Market Calculations Total target market Divided by # of competitors Target market share - 21,246 7 3035 women External Threats 3 direct competitors offering all of the 12 services that we have available • Sanctuary Spa & Salon • Rituals Day Spa & Salon • Sage Spa & Salon 4 competitors that offer 8 of the 12 services that we have available • • • • Depot Salon & Spa Nail-issimo! Bella Spa Guccione’ Salon & Spa Product Life Cycle Stage Marketing development (Billings area) Market Maturity (Nationwide) Characteristics Price is important because it gives us an advantage over competitors (especially for our market’s median household income) Emphasis on affordable prices and quality services to our clients We will strive to gain customer loyalty Sources http://factfinder.census.gov http://dexonline.com Marketing Plan Robin Russell Alexander Roth Karla Ochsner Target Audience Segmentation Strategy Billings Population Women in Billings Women ages 18-64 Number of women visiting spas (60%) Target Market share (divided by 7 competitors) 86,578 46,653 35,411 21,246 4249 Dimensions Geographic Billings, MT Behavioral Affordable Conveniently Located (downtown) Dimensions cont. Demographics Women 18-24 that attend day spas 21,246 (based on 60% of women visit spas) Target Market share divided by 7 competitors • 3035 women Dimensions cont. Psychographics Experienced staff Large service area Full service day spa Providing 12+ services Decision Making Process New Unsought Product Problem Women need a place to relax and feel pampered. Information Word of mouth Yellow pages Decision Making Process cont. Alternatives Use at home relaxation techniques. Taking a bath Yoga, Pilates, Meditating 7 Competitors Using at home remedies Aromatherapy Herbal teas Massage Lotions Decision Making Process Cont. Decision Accessible Affordable Effective Evaluate Top of the line treatment at affordable prices. Sources www.experiencespa.com http://factfinder.census.gov http://dexonline.com