be based on age. It will be made up of Spa enthusiasts who simply want to have secluded and serene moments to themselves. This will mostly be the older generation; most of these ones will be over the age of forty. Services tailored for this segment will include holistic and deep tissue massage, secluded saunas and aromatherapy. On the other hand there will be a segment for the younger generation. They will have a common steam bath where a number of people can gather around and interact. This will be a place to get to know each other and groups most likely to be interested in this are the younger generation. Most of them will lie between the ages of twenty five and thirty five. Examples of services that will be included in this category are yoga classes and saunas. The reason why these services fall under this segment will be because both services will be done in an open space where people from all walks of life can interact.
Segmentation will also be based on price. (Chekitan and Schultz, 2005) The first category here will include those who want to experience the entire weekend package. Most of the people falling under this category will be those ones paying the three hundred and fifty pounds. Others who may not be able to afford the whole package or who may not have time have the option of selecting single packages. For example, there will be a single Turkish sauna going for forty pounds; there will be yoga classes without any other service on the side going for fifty pounds and a single massage going for thirty pounds. The purpose of segmentation by price is to allow customers to customise the services at the Spa to suit their body needs.
Profile of customer
The customer will be someone from the corporate world or a highly successful business person. It is also likely that they will be residents of London. However, this does not eliminate the chance of getting some foreigners who may want to see the good things offered in town. Most people who visit Spas are well to do clients. Because of their lifestyle, some of the services offered here will benefit such people. It is also very likely that these customers will establish a long term relationship with the business once they are satisfied with services on offer. They will also spread word around to their colleagues and this may result in substantial benefits to the business. Also, the customers involved will vary in age. Some of them will be slightly younger while others will come from the older generation.
Competition
Since the product will be targeting local tourists, then competition will emerge from various sectors of the hospitality industry. (Hotel benchmark, 2002)Five star hotels or hotels targeting the affluent will be a source of competition because some of them offer similar services such as sauna, healthy foods and accommodation. The organisation will also face competition from gym centres, day treatment centres and even other Spas. Examples of Companies that offer similar services to this new organisation in London include;
BlissLondon located in Slaone Avenue
Agua at Sanderson located at Berbers Street
Porchester Spa locate at Queensway
Nickel Spa located at Convent Garden
Botonia will have an edge over all these other Spas because it will provide the most comprehensive package among all the ones listed above. Bliss London is known for its exclusive massages, Nickel Spa offers love handle treatment; this service will also be offered in Botonia’s package, Porchester offers deco baths and massages at an affordable price. However, the same thing will be available at the former organisation’s package. The only difference is that we will be charging a cheaper price for it. Agua at Sanderson offers sauna treatments; these will be available at Botonia and Bliss London prides itself in the way they give good massages. This will be a skill available at the new organisation. As it can be seen from all the above organisations, most of them specialise in one area. None of them can boast of a comprehensive package like the one available at Botonia. Their prices will also be inferior to the ones offered at Botonia. This is the reason why latter organisation will have an edge over all the others.
Organisational ability to carry out the task
The organisation will be not need new staff members. Most of them already have papers showing their qualifications in the art of aromatherapy, beauty treatment, yoga and other specialist activities. It will not be necessary to do some scouting on all the available experts. However, there will be need for health and nutrition experts and limousine drivers. Before any new staff members are hired, there will be a need to do a practical interview. Here, a randomly selected client will be subjected to free detoxifying treatment or any other service and then they will be required to give their opinion. If the potential employee receives positive recommendations from customers, then she will be hired. There are very may qualified health experts in London who may not be employed. So the organisation will not have a tough time finding them. Advertisements for the vacancies will be placed in newspapers and short listed candidates will be contacted. (Kasper and Gabbott, 2006)
The organisation has the necessary experience to venture into this sector because it is well versed with the services synonymous with tourism. It has also understood the hospitality industry thoroughly. Besides this, the organisation is well aware of good customer service practices and will implement this during service provision. It realises the importance of making the client satisfied and comfortable. It also has all the business skills necessary to ensure success while running such a business.
Brand positioning
Botonia will be the most important package offered by the Company. Because of its exceptional character traits, it is quite likely to succeed. However, if it does not, there will be other smaller packages offered independently that will bring in revenue to the Company. (Doyle, 2000)
Botonia will bring in 350 pounds per head every week. Supposing that the Spa receives about thirty clients per week, they will be able to bring in 10,500 pounds per week. This implies that the monthly revenue from that product package specifically will be 48, 000 pounds. Therefore, there will be an annual income of 504,000 ponds. If the initial investment into the business is roughly one million pounds, then chances are that profits will start flowing in the second year. It should be noted that although revenue will exceed initial expenditure, there will be some running expenses that need to be included in the budget. This is why the business will be stable after one year. The initial investment will include buildings improvements (detoxifying rooms, secluded saunas). Operating cost will include payments to workers, creams, electricity and others.
Plan for delivery
The Place will be located at Eltham. The reason why this particular location was chosen was because it is quite near Central London which is the place where most professionals are found. Therefore, people will leave their places of work and access the Spa as soon as possible. Besides, free transport will make things even easier for them.
Botonia can be made successful by constantly educating staff members on the need to treat customers well. Staff members will also be required to respond to clients’ needs as soon a possible. Once one of the drivers receives a call to bring in some clients, then they will be expected to respond as quickly as possible. In this business the customer will always come first. Distribution in this case will refer to the transportation of clients to the business premises. Because we are offering a service, clients need to be at the point of delivery. In this case, there will be no commodity carried to the client.
Test marketing
This will be done by selecting the same people who were asked earlier about their opinion concerning the Spa. The Company will choose five people from five different organisations. It will pick them up using their free transportation. Thereafter, it will take them to the Spa and give them the 2-day package. Afterwards, it will sample their opinions. However, the five different people will not come in at the same time to minimise chances of influencing one another’s opinion. (Chekitan and Schultz, 2005)
Launch
The product package will be launched in Central London with the help of a well known celebrity who will endorse the product. It will be done in a top class hotel where various corporate professionals will be located. There will be a lot of media attention surrounding the product so that people are aware about it. The launch will be covered in magazines and newspapers alike. However, the organisation may not use television as this may not captivate the intended audience. The purpose of the launch is to highlight the availability of this package, contents of the package and where to find the Spa service. On top of this, the launch will appeal to the right target audience as magazines publishing this article will most likely be high profile magazines. It is very likely that the launch will be done as soon as the business renovations are completed. This may occur during the summer season. This will be an appropriate time because the warm season can be quite strenuous on the body thus necessitating a visit to the Spa.
Price, Promotion and advertisement
The package will most likely cost three hundred and fifty pounds. However, if the circumstances on the ground dictate a change in price then it will be adjusted accordingly. Because the product will be new in the market, the organisation
