Strategic Marketing Plan 2014 The I AM Floating Centre BMKT 161 Parham A, Paul W, Karim N, Tareq S, Janeen I, Yiling H, Igor S Prof. M. Charleson 1 Strategic Marketing Plan 2014 Table of Contents Executive Summary ...................................................................................................................................... 3 Strategic Focus and Plan ............................................................................................................................... 4 Mission Statement:.................................................................................................................................... 4 Corporate Goals: ....................................................................................................................................... 4 Core Competencies and Sustainable Competitive Advantage: ................................................................. 4 Situational Analysis ...................................................................................................................................... 4 Marketing and Product Objectives ................................................................................................................ 7 Objectives ................................................................................................................................................. 7 Target Markets .......................................................................................................................................... 7 Positioning ................................................................................................................................................ 8 Points of difference ................................................................................................................................... 9 Marketing Program ....................................................................................................................................... 9 Product Strategy ........................................................................................................................................ 9 Branding.................................................................................................................................................. 10 Pricing Strategy....................................................................................................................................... 10 Pricing Factors Considered ................................................................................................................. 10 Pricing Objective ................................................................................................................................ 11 Any Special Adjustments .................................................................................................................... 11 Annual Budget Including Revenue and Profit Targets ....................................................................... 11 Distribution Strategy ............................................................................................................................... 11 IMC objectives (Integrated marketing communications) ................................................................... 12 Identify Target Audience .................................................................................................................... 12 Allocate budget ................................................................................................................................... 12 Design Promotional Program .............................................................................................................. 13 Rationale for the tools selected and the related allocation of funds .................................................... 13 Evaluation and Control ............................................................................................................................... 14 Evaluation Method #1 – Financial Gain ................................................................................................. 14 Evaluation Method #2 – Feedback Initiative .......................................................................................... 14 Conclusion .................................................................................................................................................. 14 2 Strategic Marketing Plan 2014 Executive Summary Those stressful days of plenty work and many errands call for times of much needed relaxation. That is where I AM Float Centre comes in. We are a premier floating center catering to those seeking maximum relaxation within the quietest environment all while benefiting from the numerous health advantages of floating in an anti-gravity environment immersed in either Alps Glacier Water or Bulgarian Rose Water that is saturated with Dead Sea salt. The experience consists of being closed inside a floatation pod free from sound and light to promote the meditative relaxing environment which ensures maximum potential for the body to heal itself. These qualities of healing include, and are not limited to: Increased sensory replenishment due to the isolation the tank offers Anti-gravity effects due to the floating qualities of water being saturated with salt Meditative advantages due to the mind being cut off from all sensation Detoxification properties of salt, and the healing qualities of the salt As this industry gains increased traction we are moving beyond just being a novelty item that only a few people use to actually promoting to the people the huge medical benefits that floating has on your body. Our marketing strategy will help facilitate this expansion into this desirable new and expanding industry; we will propel ourselves to further opportunities of franchising out to other cities around the country and increases our market share within Vancouver. As we continue to live in a world that is ever more fast-paced and connected to technology, as we go about our lives searching for bigger and better things, there comes a time when we just need nothing around us, absolute silence; these are the founding principles of I AM Floating Center. “The way to do is to be” - Lao Tzu 3 Strategic Marketing Plan 2014 Strategic Focus and Plan Mission Statement: Our mission is to provide our customers with a relaxing, clean and unique experience that people of all tastes will be able to enjoy meditation and relaxation with the imported salt and mineral rich Dead Sea water in our floatation tanks. Corporate Goals: 1. Provide an affordable, usable and healthy service which will inspire and satisfy our customers. 2. Create a center with several tanks that contain the Dead Sea water which can be used by many people where they can discover themselves in. Core Competencies and Sustainable Competitive Advantage: Our core competencies include a brand new facility with high end tanks. These tanks are bigger than our competitors and will be great for taller than average people and give more room for regular people. In addition to that, we are the only business that provides salt and mineral enriched water from the Dead Sea. This natural water provides more benefits to the users than our competitors can offer. Our competencies also include competitive prices for a more natural and better experience in these therapeutic waters. New members also receive sample of Dead Sea mud which helps nourish and repair skin cells. Situational Analysis Customer Analysis I AM Floating Centre’ customers are a unique target market. Firstly the customers are health and fitness enthusiasts. These people are found all over lower mainland and all part of the greater Vancouver area. The target market also includes both men and women from ages 18-65. Families can come in groups of up to 5. A typical customer is a young single adult or a married couple 4 Strategic Marketing Plan 2014 with a high stable salary, and housewives, retired millionaires and college students round out the rest of our target market. Company Analysis I AM Floating Centre is a Canadian company that is seeking to promote a healthy living lifestyle for the greater Vancouver area. We are the undisputed leader in this new healing technology that is targeted towards our target market. I AM Floating Centre guarantees quality, performance, and top safety and design all to better suit our customers. Our objective is to provide an affordable, useable health service that can enrich your life and that will satisfy you and keep you coming back. Industry Analysis Float Centre is a start-up company. Marketing is critical to its success and future profitability. Float Centre offers high end float tanks catering for safety and health. The basic market need is a high quality float tank company servicing the population of Vancouver. Floatation tanks are marketed globally but their biggest market remains in North America and Europe. All companies must abide by the government safety and health regulations that apply to spa clinics. These include standards which must maintain a extremely high sense of cleanliness and safety. The industry also has to be aware of false advertising of these floatation tanks. There have been reports that after coming out of a tank you have a increased risk of injury and claims of pruning skin Competitors Analysis Direct Competitors of I AM Floating Centre is the Skoah Spa and the Cloud 9 Float Spa. They also have to compete with people who create their own tanks with high end wood working skills. It is rather simple to create your own, but we have the high end tanks that are easier to clean and maintain at a higher level. Prices are almost even among our competitors with the only main difference being the design of the tank and the water that is being used to keep you entrenched. Indirect competitors such as a tank that can be shipped to your private home are used to only 5 Strategic Marketing Plan 2014 provide a minimalist experience. Our company has the resources to provide a better all-around experience. 6 Strategic Marketing Plan 2014 Marketing and Product Objectives Objectives Our floating center team will dedicate our effort into creating luxurious yet affordable SPA experience. In order to analyze our objectives in a more detailed way, let’s take a look at both our corporate objectives and business unit objectives. Corporate Objectives Business Unit Objectives 1. Our first year’s sales goal is to cover 1. In human resource level, having the basic fixed cost, build our brand, weekly meeting with our employees provide satisfying customer service, to build a happy and strong while trying to have excess revenue relationship between different as well. business levels, in order to reduce the 2. Conducting monthly survey to our rate of employee turnover. customers in order to bring maximum 2. In manufacturing level, improve experience to satisfy customers’ floating experience by introducing needs. healthy minerals into our floating 3. Trying to gain at least 10% market tank. For example: avocado oil for share in the SPA industry. deeper moisture, and/or Bulgarian 4. Building our social responsibility by rose water to relieve stress and using recyclable towels and paper calming sensation. cups. 5. Our Floating Center is the only SPA place that using imported salt and minerals from the Dead Sea. Target Markets In order to have a better understanding of our target customers, we will show the results from four various segments. Geographical Urban; Downtown Vancouver; Oceanic climate 7 Strategic Marketing Plan 2014 CMA size: 578,041603,502 Demographical Age: 18-65 Male & Female Family Size: 1-5 Psychographics Young/old single adult, married couple with high stable salary Professional business man, college student, retired millionaire, housewife that loves beauty treatment. Enthusiastic; healthy-lifestyle believer; friendly; Open-minded; extroverted. Behavioural Benefits thought: nutrition, entertainment, health treatment. Usage rate: medium-heavy user User status: first time and regular user. Loyalty status: some, medium and strong Positioning Image: Clean, organized floating center, with mainly white and blue interior design. Wooden floor design combine with a light citrus scent. A relaxing, affordable and fun enjoyment combines with unique Dead Sea experience. Product Attribute: Quality minerals from the Dead Sea, and addable Bulgarian rose water as well as imported Alps glacier water from Europe. Differentiate The Floating Center with the 8 Strategic Marketing Plan 2014 rest of the SPA lounge in Vancouver. Secondly, friendly and humble customer service accumulates an atmosphere we want to bring to our customers. Price: $59.99 per hour, and $89.99 for 90 minutes service. New customers will be receiving Dead Sea mud to experience at home SPA while having limited time. Customers that been visited for 10 times will receive a free massage or facial mask treatment at our Floating center. Our floating center is aiming to build a fun, yet enjoyable and affordable SPA center for those healthy lifestyle enthusiastic and modern luxury supporters. Points of difference Operating a floating center under the fierce competition with numerous SPA lounge in Vancouver, we believe in developing a simple body treatment experience, and aiming to do the best of it, rather than creating several services. For instance, as one of our future competitor, Skoah Spa, is more concentrated on facial treatments and using their exclusive products. As for another major competitor, Cloud 9 FLOAT SPA, that has higher price than we do. We offering non-membership customers with $59.99 per hour service, while our competitor charge them $65 per hour. Not to mention in our floating center, we will be using imported Dead Sea minerals and salt, Alps Glacier water, and Bulgarian Rose Water. Product precision is what we are achieving, and customers will get the values of their hard earned cash into a perfect and luxurious SPA enjoyment. Marketing Program Product Strategy What we offer at the I AM Floating Centre is a tool - a simple but powerful tool that can improve everyday life. We want to provide a service that was affordable, useable, practical and inspiring. Amongst any other alternative and holistic health practice we believe floating in a true sensory deprived environment is second to none. We wanted to create a center with multiple tanks in a public space so that more people can discover them and have easy access. 9 Strategic Marketing Plan 2014 When someone begins floating, the room is devoid of all light and earplugs are used to ensure removal of all external sound. The tank itself is filled with 11” of water of which has over 900 pounds of Epsom salt mixed in. All of these conditions together free a person from the sense of touch, pressure, and friction, sound and light; leaving one in an environment of complete peace and quiet. Branding “The way to do is to be” - Lao Tzu Brand Personality: Our brand personality will be conveyed using social media sites such as Facebook, Twitter and Instagram. Through the use of social media platforms we will post informal yet professional status updates, posting positive news about the company. In addition, quotes of wisdom will be posted daily - for the purpose of inspiring and enlightening people. This will establish the brand personality as helpful and caring. Brand Loyalty: We will create and maintain Brand Loyalty through socially responsible business practices and through loyalty cards and free merchandise. Loyalty cards as well as free t-shirts will be issued to each customer upon using our services for the first time. Our dedication on helping anyone who is in need will establish a good relationship between us and anybody who needs our help. Brand Name: “I Am Floating Centre” The “I AM” stems from the experience of floating itself. The process of quieting the mind and relaxing the body ultimately leads to the realization that all there is your presence, the present, and your awareness of yourself and now. Pricing Strategy Pricing Factors Considered Floating Centre’s premium services are priced very accurately and compare to the other competitors better services are provided with the most high end devices and also a very calm and relaxing place is helping to be the number one floating lounge in the city. To help offset the 10 Strategic Marketing Plan 2014 perception of being overpriced, odd-even pricing will be used for all services. Pricing Objective The primary objective is maximizing the market share in order to expand and more profit to the company. The target market share in first year of operation is 30% and in second year it is expected to attain more than 40% of the market. Any Special Adjustments All the members that are registered get a membership card and they can get a massage for 50% off after 5 times floating or a free massage after 10 times of floating. Annual Budget Including Revenue and Profit Targets Revenue (avg. of 30 hrs per day at $59.99/hr) …......………………………………......................................................... … $467,922 Wages … …………………………………………………………………….……... $100,000 Rent ….………………...……. ……………….. ………………………………………... $70,000 Variable Costs ………...………………………………………………………………... .. $10,000 Equipment Depreciation ………………………………………………………………...… $3,500 $183,500 Operational Profit ……………………………….................................... ……………… $284,422 The initial investment is $70,000 for 6 Floating Tanks, which they are 4 years old and the expected lifetime is estimated 30 years. We have used 20 years of function for our devices and no residual value after that. Based on these information we calculated our depreciation cost per year. Distribution Strategy Marketing Channels The I AM Floating Centre is equipped with all the materials needed for the services we offer. Customers can come to our facility to make use of the services we offer, enjoy the benefits and pay for them at our location. 11 Strategic Marketing Plan 2014 Specific Rationale and Location We are located at 70 W Cordova St., Vancouver, BC, V6B 1C9 - just an 8 minute walk from Waterfront Station downtown Vancouver which is accessible from all over the lower mainland. Our centre is the temple of peace in the middle of the madness. Our location will enable people to escape from their fast paced modern-day lives in the middle of them. Promotional Strategy IMC objectives (Integrated marketing communications) -Website –what it is, what programs/choices we offer, pricing (drop in/membership) -TV advertisement (if more successful/popular) -Email database –special promotions/reminders -Social media –Facebook, Instagram, Pinterest, twitter, etc. -Word of mouth (friends/family & through viewings of merchandize) -Free samples to new customers Identify Target Audience -health enthusiasts -young adults (make trend) -all ages (popular/meets needs and wants of all) -Working class (stressed workaholics) -typical busy hours = before/lunch/after work -luxury shoppers/ higher end Allocate budget $20,000 – IMC objectives: -$5,000 –website; $5,000 –email/social media; $10,000 saved for TV advertisement $12,500 –Identify Target Audience: 12 Strategic Marketing Plan 2014 -$12,500 –reports/surveys to find target audience $17,500 –Design Promotional Program: -$10,000 –merchandise; $7,500 -creating coupons/groupons, loyalty cards/memberships Design Promotional Program Target audience through: -website and especially social media -merchandise (clothing, health products, etc.) -coupons/groupons -plans/packages (family plan, event packages, etc.) -loyalty cards/memberships -email database -free samples to new customers/every 10 floats = 1 time free Rationale for the tools selected and the related allocation of funds Trends: -social media -young adults Loyalty: -email database -working class/family plans -memberships/loyalty cards Fairness: -reasonable prices compared to competition/easy to purchase by all Allocation of Budget: -evenly distributed -well-rounded/fair 13 Strategic Marketing Plan 2014 Evaluation and Control Evaluation Method #1 – Financial Gain The marketing plan and the execution of it will be measured by our financial returns or the lack of. Are we seeing an increase in business revenue and customer turnover within our business? The goal of our marketing plan is to promote our business plan and show people what benefits are associated with floating. As more people use our floating pods we will see increases in revenue and associated profits, this will all be recorded every two weeks for 3 months, this should tell us how we are doing as a result of our marketing plan. Evaluation Method #2 – Feedback Initiative To understand people’s reaction to a particular business, you have to receive feedback, this can be either verbal or written, and both are incorporated in this evaluation method. After customers use our services we can obtain direct verbal feedback by asking about how their experience was, this will be recorded and compiled for review every two weeks for 3 months to supplement our records on the financial aspect of our marketing plan. As we continue with our feedback from customers, we will venture around the city and ask around if people would ever consider trying something like floating, this will give us insight into how we can continue to improve the business model. Conclusion The biggest concern facing the business world and all the people taking part in it, is that we are sacrificing our health for financial endeavours, the ever increasing pursuit of profit and material gain, yet we forget the greatest gain we can achieve for ourselves that is worth more than anything, this is our health. Our floating environment enables you to disconnect from the world in a way that facilitates regeneration of the mind, spirit, and body. This is The I AM Floating Center 14 Strategic Marketing Plan 2014 Works Cited Clements, C., Hartley, S.W., Kerin, R.A., Rudelius, W., & Skolnick, H. (2012) The Core. China: McGraw-Hill Ryerson. Float Pod. (2014). Retrieved from: http://www.floatpod.com/used-float-pods/ Float House. (n.d.) Retrieved from: http://floathouse.citruspiemg.mobi/about Cloud 9 Float Spa. (2014). Retrieved from: http://cloud9floatspa.com/about/cloud-9/ Isolation Tank Experts. (2014). How Much Does an Isolation Tank Cost. Retrieved from: http://www.isolationtankexperts.com/how-much-does-an-isolation-tank-cost/ Skoah. (2014). Retrieved from: http://www.skoah.com/ Feeling Functional. (2014). Retrieved from: http://www.feelingfunctional.com/ 15