| Introduction | | | | pounds; there will be yoga classes without any |
| The product package will belong to a spa called | | | | other service on the side going for fifty pounds |
| ‘Botonia'. The organisation is a Spa located in | | | | and a single massage going for thirty pounds. The |
| London. It will be situated in Eltham which happens | | | | purpose of segmentation by price is to allow |
| to be thirty minutes away from central London. | | | | customers to customise the services at the Spa |
| The package was designed for the hard working | | | | to suit their body needs. |
| residents of London who may need to indulge in a | | | | Profile of customer |
| little luxury but have minimal time to do so. The | | | | The customer will be someone from the |
| Spa has met this need by bringing luxury close to | | | | corporate world or a highly successful business |
| home. Some of the services that are offered in | | | | person. It is also likely that they will be residents |
| the Spa include nutritious foods and drink | | | | of London. However, this does not eliminate the |
| offerings, yoga classes, Turkish Sauna, Yoga | | | | chance of getting some foreigners who may |
| massage, hot stones therapy, reflexology, deep | | | | want to see the good things offered in town. |
| tissue massage and holistic message. The package | | | | Most people who visit Spas are well to do clients. |
| will be a special offer on weekends where clients | | | | Because of their lifestyle, some of the services |
| can get a 2-day body and mind treatment. On the | | | | offered here will benefit such people. It is also |
| first day, clients will receive transport through a | | | | very likely that these customers will establish a |
| luxurious, state-of-the-art limousine. Upon arrival, | | | | long term relationship with the business once they |
| customers will undergo detoxifying treatment. | | | | are satisfied with services on offer. They will also |
| Thereafter, they will be given healthy and | | | | spread word around to their colleagues and this |
| nutritional drinks. All these activities will culminate | | | | may result in substantial benefits to the business. |
| into a luxurious and exquisite overnight stay. On | | | | Also, the customers involved will vary in age. |
| the second day, customers get energising | | | | Some of them will be slightly younger while others |
| treatment, smoothing and transport back to their | | | | will come from the older generation. |
| homes. The product package targets affluent | | | | Competition |
| members of society who work for long hours | | | | Since the product will be targeting local tourists, |
| under high pressure environments. The product is | | | | then competition will emerge from various sectors |
| supposed to bring comfort closer to them thus | | | | of the hospitality industry. (Hotel benchmark, |
| eliminating the need for taking long hour journeys | | | | 2002)Five star hotels or hotels targeting the |
| to access this service. The package will cost | | | | affluent will be a source of competition because |
| approximately 350 pounds. | | | | some of them offer similar services such as |
| Organisational details | | | | sauna, healthy foods and accommodation. The |
| The organisation is essentially a combination of | | | | organisation will also face competition from gym |
| various tourist attraction packages. (Barlon, 2006) | | | | centres, day treatment centres and even other |
| It is basically a leisure spot with a calm ambience | | | | Spas. Examples of Companies that offer similar |
| and serene environment. Its services fall under | | | | services to this new organisation in London include; |
| the following categories; | | | | - BlissLondon located in Slaone Avenue |
| Combining health and beauty; the organisation | | | | - Agua at Sanderson located at Berbers Street |
| deals with important but neglected aspects of | | | | - Porchester Spa locate at Queensway |
| beauty. By offering people nutritional and healthy | | | | - Nickel Spa located at Convent Garden |
| foods and drinks, they will be revitalising their | | | | Botonia will have an edge over all these other |
| body and mind. Detoxifying treatment is also a | | | | Spas because it will provide the most |
| method that will accentuate one's beauty. Clients | | | | comprehensive package among all the ones listed |
| are given vegetables and fruits strictly. When the | | | | above. Bliss London is known for its exclusive |
| body gets rid of all toxic elements, then it is able | | | | massages, Nickel Spa offers love handle |
| to function normally. This positive reaction is | | | | treatment; this service will also be offered in |
| displayed externally through glowing skin and a flat | | | | Botonia's package, Porchester offers deco baths |
| tummy. | | | | and massages at an affordable price. However, |
| Therapy centres; the purpose of services offered | | | | the same thing will be available at the former |
| under this section of the organisation is to make | | | | organisation's package. The only difference is that |
| clients unwind and relax. It is a sort of past time | | | | we will be charging a cheaper price for it. Agua at |
| activity. Other benefits that can be linked to this | | | | Sanderson offers sauna treatments; these will be |
| service include improved health since most of the | | | | available at Botonia and Bliss London prides itself in |
| activities will boost blood flow to the all parts of | | | | the way they give good massages. This will be a |
| the body. Relaxation is quite important for people | | | | skill available at the new organisation. As it can be |
| working in high stress environments. When the | | | | seen from all the above organisations, most of |
| body is subjected to too much stress, it may | | | | them specialise in one area. None of them can |
| react negatively. Some of the ways it could do | | | | boast of a comprehensive package like the one |
| this include increased blood pressure and | | | | available at Botonia. Their prices will also be inferior |
| overworking of the heart. Therapy provides a | | | | to the ones offered at Botonia. This is the reason |
| natural but sure way to ensure that one's body | | | | why latter organisation will have an edge over all |
| system revitalises and that they are able to | | | | the others. |
| function properly. Activities that fall under this | | | | Organisational ability to carry out the task |
| section include hot stones therapy, reflexology | | | | The organisation will be not need new staff |
| and deep tissue message. | | | | members. Most of them already have papers |
| Psychological remedies; the organisation also | | | | showing their qualifications in the art of |
| offers ways in which the mind can work better. | | | | aromatherapy, beauty treatment, yoga and other |
| The main service under this category is through | | | | specialist activities. It will not be necessary to do |
| yoga classes. Yoga helps clients get in touch with | | | | some scouting on all the available experts. |
| their spiritual side and also helps them to put | | | | However, there will be need for health and |
| focus back into their lives. This is administered | | | | nutrition experts and limousine drivers. Before any |
| through a yoga expert who conducts classes for | | | | new staff members are hired, there will be a |
| interested parties. | | | | need to do a practical interview. Here, a randomly |
| Idea generation | | | | selected client will be subjected to free |
| Many Londoners rarely have time to travel | | | | detoxifying treatment or any other service and |
| outside the country. But this does not mean that | | | | then they will be required to give their opinion. If |
| they do not need to indulge in a little luxury. Most | | | | the potential employee receives positive |
| of them have the financial ability but may not | | | | recommendations from customers, then she will |
| have the time. (Barney, 1991) This package is | | | | be hired. There are very may qualified health |
| meant to encourage local tourism. There is a need | | | | experts in London who may not be employed. So |
| to make a package especially for locals. Tourism | | | | the organisation will not have a tough time finding |
| does not necessarily have to target people from | | | | them. Advertisements for the vacancies will be |
| other parts of the world. It can be tailored to | | | | placed in newspapers and short listed candidates |
| suite local needs. | | | | will be contacted. (Kasper and Gabbott, 2006) |
| A spa was specifically chosen for this business | | | | The organisation has the necessary experience to |
| venture because many people in the region are | | | | venture into this sector because it is well versed |
| getting more and more familiar with the product | | | | with the services synonymous with tourism. It |
| offering. It was seen that there are many hard | | | | has also understood the hospitality industry |
| working people in London. But there is a lot of | | | | thoroughly. Besides this, the organisation is well |
| hustle and bustle in the city. Some people may | | | | aware of good customer service practices and will |
| desire to get away from all the noise and | | | | implement this during service provision. It realises |
| pressure of the city. This was why a spa was | | | | the importance of making the client satisfied and |
| chosen because it is an oasis of calm in a desert | | | | comfortable. It also has all the business skills |
| of noise and crowds. Every single day, some | | | | necessary to ensure success while running such a |
| people may feel the urge to take some time out | | | | business. |
| and replenish their lost energies; what other | | | | Brand positioning |
| perfect way is there to do this other than | | | | Botonia will be the most important package |
| through a Spa. | | | | offered by the Company. Because of its |
| All the extra services that come on the side are | | | | exceptional character traits, it is quite likely to |
| intended on appealing to the expensive tastes of | | | | succeed. However, if it does not, there will be |
| the affluent. It is a well known fact that such | | | | other smaller packages offered independently that |
| members of society feel the need to pampered | | | | will bring in revenue to the Company. (Doyle, |
| and treated exclusively. This was why the idea of | | | | 2000) |
| limousine was chosen. Suites within the Spa | | | | Botonia will bring in 350 pounds per head every |
| premises will also be equally luxurious to appeal to | | | | week. Supposing that the Spa receives about |
| the fine tastes of the affluent. | | | | thirty clients per week, they will be able to bring in |
| The organisation will be providing accommodation | | | | 10,500 pounds per week. This implies that the |
| implying that there will be rooms which clients can | | | | monthly revenue from that product package |
| select. Because the place is meant for effluent | | | | specifically will be 48, 000 pounds. Therefore, |
| members of society, it will have executive suites | | | | there will be an annual income of 504,000 ponds. |
| designed in a different manner so that customers | | | | If the initial investment into the business is roughly |
| can take their pick. Once customers get inside | | | | one million pounds, then chances are that profits |
| their rooms, they will have a beautiful view of the | | | | will start flowing in the second year. It should be |
| serene atmosphere surrounding them. The | | | | noted that although revenue will exceed initial |
| organisation will need to add some features while | | | | expenditure, there will be some running expenses |
| customers enjoy the services on offer. Some of | | | | that need to be included in the budget. This is |
| these include extra music in the background when | | | | why the business will be stable after one year. |
| enjoying a massage or a sauna treatment. It will | | | | The initial investment will include buildings |
| also include mini TV sets in rooms that are not | | | | improvements (detoxifying rooms, secluded |
| therapeutic in nature for example in the food and | | | | saunas). Operating cost will include payments to |
| drinks sections. | | | | workers, creams, electricity and others. |
| Screening of ideas | | | | Plan for delivery |
| A market research was conducted among | | | | The Place will be located at Eltham. The reason |
| members of the London population. Fist of all, a | | | | why this particular location was chosen was |
| survey was done of all the leisure activities | | | | because it is quite near Central London which is |
| present in the City. It was found that there are | | | | the place where most professionals are found. |
| beauty treatments, health and beauty centres, | | | | Therefore, people will leave their places of work |
| therapy centres, Yoga centres, sports centres, | | | | and access the Spa as soon as possible. Besides, |
| Men's grooming, manicures, pedicures, Spas, | | | | free transport will make things even easier for |
| Indoor sports and gym and fitness centres. All | | | | them. |
| these activities were suitable for both locals and | | | | Botonia can be made successful by constantly |
| tourists alike. | | | | educating staff members on the need to treat |
| On interviewing a certain sample and looking at | | | | customers well. Staff members will also be |
| the market reports around the City, it was found | | | | required to respond to clients' needs as soon a |
| that Indoor sports and gyms are not as lucrative | | | | possible. Once one of the drivers receives a call to |
| as they were a while back. There is a saturation | | | | bring in some clients, then they will be expected |
| of gyms in the area. (Bitner and Booms, 1981) | | | | to respond as quickly as possible. In this business |
| The research also found that these days more | | | | the customer will always come first. Distribution in |
| and more people are looking for less passive | | | | this case will refer to the transportation of clients |
| ways to spend their leisure time. Although places | | | | to the business premises. Because we are |
| like cinemas were common, residents are now | | | | offering a service, clients need to be at the point |
| looking for more healthy ways of spending their | | | | of delivery. In this case, there will be no |
| past time. Other types of activities were | | | | commodity carried to the client. |
| eliminated from the list of ideas after a specific | | | | Test marketing |
| market was identified. The well-to-do in society | | | | This will be done by selecting the same people |
| can provide a solid market for the product. Their | | | | who were asked earlier about their opinion |
| earnings or fortunes are dependable, most of | | | | concerning the Spa. The Company will choose five |
| them rarely bargain and businesses can make | | | | people from five different organisations. It will pick |
| enormous profits by targeting this group for their | | | | them up using their free transportation. |
| products. This was the reason why the idea of a | | | | Thereafter, it will take them to the Spa and give |
| Spa package was chosen. Although it may be an | | | | them the 2-day package. Afterwards, it will |
| expensive venture at the onset of business, it will | | | | sample their opinions. However, the five different |
| bring back a lot of returns as it progresses. This is | | | | people will not come in at the same time to |
| because one requires minimal amounts of cash to | | | | minimise chances of influencing one another's |
| run the business yet there will be a steady inflow | | | | opinion. (Chekitan and Schultz, 2005) |
| of revenue. | | | | Launch |
| Concept testing | | | | The product package will be launched in Central |
| The idea can actually work because it was taken | | | | London with the help of a well known celebrity |
| to the public and received a positive response. | | | | who will endorse the product. It will be done in a |
| The concept was taken to senior labourers in the | | | | top class hotel where various corporate |
| corporate world; most of them held managerial | | | | professionals will be located. There will be a lot of |
| positions. Around ten companies were chosen at | | | | media attention surrounding the product so that |
| random. Most of them were interested in it. The | | | | people are aware about it. The launch will be |
| part that caught most people's attention was the | | | | covered in magazines and newspapers alike. |
| weekend package as this is something that no | | | | However, the organisation may not use television |
| other Spa in London offers. They were delighted | | | | as this may not captivate the intended audience. |
| by the fact that they would be given free | | | | The purpose of the launch is to highlight the |
| transport to and from their residential areas in a | | | | availability of this package, contents of the |
| limousine. (Kotler, Philip, Keller and Lane, 2005) | | | | package and where to find the Spa service. On |
| Business analysis | | | | top of this, the launch will appeal to the right |
| Possibility of success | | | | target audience as magazines publishing this article |
| The idea can make money because this is not the | | | | will most likely be high profile magazines. It is very |
| first time a Spa is created in London. There are | | | | likely that the launch will be done as soon as the |
| many Spas in the City but the main difference | | | | business renovations are completed. This may |
| between this idea and what others have in the | | | | occur during the summer season. This will be an |
| market is its special features. Most Spas have not | | | | appropriate time because the warm season can |
| come up with the concept of free transport. Also | | | | be quite strenuous on the body thus necessitating |
| most of them specialise in one area of service. | | | | a visit to the Spa. |
| This idea will be unique in that customers can | | | | Price, Promotion and advertisement |
| access most services all under one roof. | | | | The package will most likely cost three hundred |
| It was found that most Spas in the City were | | | | and fifty pounds. However, if the circumstances |
| centred on beauty and health treatment but they | | | | on the ground dictate a change in price then it will |
| would leave out other holistic services like Yoga. | | | | be adjusted accordingly. Because the product will |
| Clients were forced to move from one area to | | | | be new in the market, the organisation will use a |
| another in search of all the services they require. | | | | market entry strategy. This is when the price of |
| But this particular idea provides everything under | | | | a new product is lowered so as to attract clients. |
| one roof so customers do not have to disrupt | | | | Then after the package has solid and dependable |
| their sessions to move to another location. | | | | clients, it will increase the price so as to maximise |
| Another issue that gives the idea a unique selling | | | | on profits. |
| point is the fact that customers are spared from | | | | Promotion will incorporate two categories |
| using their own transport. The Spa is located | | | | - advertisement |
| slightly off Central London so customers will need | | | | - additional features (Cannon, 1986) |
| some form of transport. Other competitors would | | | | The Company will offer some free services |
| normally have left the issue of transport to the | | | | whenever a client comes back for three |
| discretion of the client. Yet the use of such an | | | | consecutive weekends. Women will receive free |
| approach can be quite taxing since customers will | | | | eye brow tweezing while men will receive any |
| incur extra expenses. Besides this, they may find | | | | service in male grooming that costs less than |
| it inconvenient especially when they lack any | | | | thirty pounds. Such additional features will |
| other means to get to their destination. | | | | encourage customers to come back to the Spa |
| The idea will make money because it will be | | | | for more. |
| charging a fee of three hundred and fifty pounds | | | | Advertisement will be done through the internet |
| for the entire two-day package. Other Spas in | | | | where the product package will be described in full |
| London are slightly more costly. For example, one | | | | details on the Company website. Advertisements |
| may find that a body treatment costs | | | | will also be placed on Google and other well known |
| somewhere between eighty to one hundred and | | | | search engines. There will be some pictures of the |
| twenty pounds, then one might find that yoga | | | | Spa showing the Turkish Sauna and some people |
| classes go for one hundred and fifty pounds per | | | | doing yoga. There will also be some colourful |
| session. If one adds all the amounts charged by | | | | pictures of the surrounding atmosphere to |
| specialised Spa services, one may find that the | | | | capture people's imagination. The Company will |
| cost is way beyond what this specific Spa will be | | | | display these very pictures in selective magazines |
| charging i.e. three hundred and fifty pounds. (Hotel | | | | and newspapers. The purpose of the |
| benchmark, 2002) | | | | advertisements will be to highlight the public about |
| Possible segments | | | | availability of the service, where to get it and the |
| The Spa will attract a variety of clients. One of | | | | benefits that come from the service. |
| the segments will be based on age. It will be | | | | Conclusion |
| made up of Spa enthusiasts who simply want to | | | | Botonia' package will be one that stands out from |
| have secluded and serene moments to | | | | all the rest. It has a comprehensive package and |
| themselves. This will mostly be the older | | | | will not require too much resource input. Besides |
| generation; most of these ones will be over the | | | | this, the product will be quite affordable compared |
| age of forty. Services tailored for this segment | | | | to other offerings in the market. Because of |
| will include holistic and deep tissue massage, | | | | these traits, the product will do well in the market. |
| secluded saunas and aromatherapy. On the other | | | | (Barney, 1991) |
| hand there will be a segment for the younger | | | | References: |
| generation. They will have a common steam bath | | | | Barlon, K. (2006): The concept of the marketing |
| where a number of people can gather around and | | | | mix Presentation on marketing management, Volt |
| interact. This will be a place to get to know each | | | | 1, Oulu University -Finland |
| other and groups most likely to be interested in | | | | Barney, J. B. (1991): Firm Resources and |
| this are the younger generation. Most of them will | | | | Sustained Competitive Advantage, Journal of |
| lie between the ages of twenty five and thirty | | | | Management, 1 (January), |
| five. Examples of services that will be included in | | | | Bitner, J. and Booms, B. (1981): Marketing |
| this category are yoga classes and saunas. The | | | | strategies and organizational structures for service |
| reason why these services fall under this | | | | firms, in Donnelly, J. and George, W. Marketing, |
| segment will be because both services will be | | | | American Marketing Association, Chicago. |
| done in an open space where people from all | | | | Cannon, T. (1986): Basic marketing, principles and |
| walks of life can interact. | | | | practice, 2nd edition, Holt, Rinehart and Winston, |
| Segmentation will also be based on price. | | | | New York |
| (Chekitan and Schultz, 2005) The first category | | | | Chekitan S. D and Schultz, D. E (2005): In the Mix: |
| here will include those who want to experience | | | | A Customer-Focused Approach Can Bring the |
| the entire weekend package. Most of the people | | | | Current Marketing Mix into the 21st Century, |
| falling under this category will be those ones | | | | Marketing Management v.14. |
| paying the three hundred and fifty pounds. Others | | | | Doyle, P. (2000): Value based marketing, Wiley, |
| who may not be able to afford the whole | | | | Chichester. |
| package or who may not have time have the | | | | Hotel benchmark (2002): Budget hotel Proving |
| option of selecting single packages. For example, | | | | Resilient retrieved from; accessed on 07/03/08 |
| there will be a single Turkish sauna going for forty | | | | Kasper, H. V and Gabbott, M. |