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
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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
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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
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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
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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
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provide a minimalist experience. Our company has the resources to provide a better all-around
experience.
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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
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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
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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.
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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
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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.
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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:
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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
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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
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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/
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