Enterprise SkillsMarket Research Presentation

Holistic Therapy Day Spa

Serenity

What is Serenity?

Serenity will be a Holistic therapy salon. It will offer services such

as:

Body Massage Reflexology

Aromatherapy Acupuncture

Indian Head Massage Reiki

Swedish Massage

What is Holistic Therapy?

Holistic Therapy is a treatment that considers the whole person physically and psychologically, rather than treating merely the diseased

part

Often known as alternative or complementary medicine

Holistic therapies work well to alleviate stress related conditions

Assist patients to sometimes reduce medication

SECONDARY RESEARCHMARKET SIZE AND POTENTIAL

In 2002 the UK Health and Beauty market was worth £1.3 billion29% of adults, nation wide, claim to have had some form of beauty treatment in the past 12 months 34% of people in the North West have had some form of health and beauty treatment in the past 12 months compared with 33% in LondonJust over half of all consumers have not had any type of health and beauty treatmentWomen are twice as likely as men to have had treatmentThere are currently between 6500 and 8500 independent beauty salons across the UKThere are approximately 23 beauty salons in the Stoke-on-Trent area

Mintel

People most likely to have had health and beauty treatments in the past 12 months are pre/no family, ABC1, Internet users under the ACORN categories of expanding and risingPeople from the 20-34 age band show the strongest tendency, followed by 15-19 year oldsMost likely to be non-users are over 55 and those from the DE socio-economic categoriesIn the 20-34 age group there are 50631 people in the Stoke-on-Trent area and 16043 in the 15-19 bandThe average spend per year has risen from £80-£95Almost 1/3 of people having spent £100 or more on treatment

SECONDARY RESEARCHMARKET SIZE AND POTENTIAL

Mintel and Census

Federation for Holistic TherapistsThe largest professional body in the UK for holistic, beauty, sports and complementary therapistsCurrently around 18,600 membersAn umbrella organisation representing a variety of international associationsTo qualify for membership therapists are required to hold one or more recognised qualificationsBenefits include:

Free access to professional help lineComprehensive professional insurance with cover up to £6millionFree entry to internet register of qualified practitionersFree bi-monthly International Therapist magazineMembers catalogue offering discounted gifts and itemsFree tickets to seminars and exhibitions

SECONDARY RESEARCH

Federation for Holistic Therapists

Different levels of membership:QualifiedAdvanced PractitionerStudent

Membership prices range from £17-£174 depending on level and are renewable annuallyDifferent types of insurance:

Business Equipment/Employers LiabilityPublic and Treatment LiabilityStudents LiabilityCommercial Legal Protection

Insurance prices range from £23.81-£184.79 depending on type, level and qualifications

SECONDARY RESEARCH

SECONDARY RESEARCH

EquipmentAll equipment – tables, oils, uniforms etc are available from the FHTAlso a large number of suppliers across the UK specialising in a variety of items including specialist company NORDIC who design and fit bathroom and spa facilities

StaffThe Manchester School of MassageStoke-On-Trent CollegeNatural Choice Healing Clinic and Teaching Centre

Primary ResearchWe decided to ask people who have used a Spa before and find out about the experience they had and to establish their needs

and wants.

They visited Ragdale Hall Health on two occasions.

All inclusive two night stay one person paid £300, and the Elaine paid £20-£25 for each treatment.

They visit Spas on average once a year.

Within reason they would travel 40 miles to get the a Health Spa.

High class standard treatments, somewhere I could go with my partner on a short break, the price of the treatments they would be looking for in a new Spa.

Primary Research

The reasons for going to a Spa are, they offer a service you can not get elsewhere, being pampered and get a make over on your body.

Their ideal Spa would contain, well informed staff, a relaxation area, treatment rooms, Sauna, steam room.

As long as the food is low fat it does not bothered them whether it is organic or not.

They would consider using the therapies with highlighted if they felt the need for them.

If the price was reasonable, they were trained and informed about the benefits of the therapies it would encourage them to use it.

They would consider giving it as a present only if it was a special occasion.

Primary Research

Male

Female

Q 1- Gender

15-19

20-29

30-39

40-49

50+

Q 2- Age

We asked 100 people the same questionnaire in order to gauge their experiences and views of holistic therapy spas.

Primary Research

Under £10

£11-£20

£21-£30

£31-£40

£41+

Q 3- Average Expenditure per month on leisure activities

Weekly

Monthly

Quarterly

Yearly

Never

Q 4- Do you ever visit holistic therapy spas/centres?

Primary Research

Relaxation

Pampering

Vitality

Detox

Present

Wedding

Other

Q 5- For what reasons would you visit a spa?

Q 6 – How much would you expect to spend on a treatment?

Under £10

£11-20

£21-30

£31-40

£41+

Primary Research

Q 7- How far would you be willing to travel to a spa?

Q 8- What treatments would you like to see offered by a new holistic spa?

Massage

Aromatherapy

Facials

Body Wraps

Saunas

FlotationTanks

Other

Under 30 mins

30 mins-1hr

1 hour +

Primary Research

Q 9- What types of offers would encourage you to visit a new spa?

Yes

No

Q10- Do you currently eat organic foods?

Discount

Gift Vouchers

Competitions

Free Trials

Other

Primary Research

Q 11- If so, how much do you spend per week?

Under £10

£11-20

£21-30

£31-40

£41+

Q 12- If the spa were to offer organic food and drink products would this interest you?

Yes

No

Primary ResearchQ 13- If a juice bar were to be incorporated into the spa serving

organic/health juices would you be encouraged to utilise the facilities?

Yes

No

Competitor Analysis

After research we have established that the competition to a holistic therapy salon in the Staffordshire area would

be:

Other holistic therapy salons Beauty Salons Hairdressers Nail Studios

Mobile beauty therapists Fitness Centres Tanning Studios

Direct Competition

Within a 40 mile radius there are various competitors. Including Health farms, fitness centres, therapy centres and individual salons. Most of which offer similar services to the next. These services include

massage, Aromatherapy and many others.

However within the area in which we plan to locate our business there are not so many direct competitors. This area is stoke-on-Trent and

there are approximately 20 complimentary therapy centres within this city.

Even though there is some competition primary research has shown that there is a substantial market and if located correctly a new

holistic therapy centre would fit well into the market.

Competitor Analysis

Competitors Services

Primary research into services offered within the Stoke-on-Trent area has shown that the following are available:

Aroma/Reflex therapies Spa & relaxation beautyReiki Colonic irrigationSeichem Stress ManagementMeditation Therapeutic/remedial massageYoga ThermassageIndian Head Massage Swedish massage

Research has shown that each of these therapies generally are charged by the hour or half hour.

Competitor Analysis

Competitors Prices

The prices below are the average prices in the area:

Reiki £30 per hour

Indian Head Massage £20 per hour

Aromatherapy full body £30 per hour

Reflexology £25 per hour

Acupuncture £28 per ½ Hour

Body massage £35 per hour

Back massage £25 per hour

Body Combos £40 per session

Obviously to make a successful entrance into the market it is important to be

able compete with other prices

Competitor Analysis

SWOT AnalysisStrengthsQuestionnaires completed by 29-39 year olds43.2% would spend £21-30 p/week on leisure activities28.3% are prepared to spend £41+ on leisure activities p/weekThere is much interest on activities centred around well-being, pampering etcMassage was the most popular form of treatment offered

Customer InterviewsIf a spa has a good reputation customers are willing to travel long distances

MintelThe majority of people want to look and feel youngerPeoples’ lives are far more stressful in society todayThere has been steady growth in people having treatments, 29% having received some form of treatment in the last 12 monthsThe future outlook for the industry is positive and increasing in sizeThere are only 20 direct competitors within Stoke-on-TrentThere are no legal requirements for practising health and beauty

SWOT AnalysisWeaknessesQuestionnaires completed by 20-39 year olds0% said they would give gift vouchers for treatments as presents, nor would they use such facilities for weddings83.2% of those questioned were not interested in the idea of including organic food and drink productsSome participants would only be interested in treatments if they were to be offered as part of a package or on a break

Customer InterviewsWished for facilities including pool, relaxation area, gym, restaurant, picturesque surroundingsVisits to spas are considered a luxury and not a frequent expenditureTherapists qualifications of high importanceNot a life essential

Secondary ResearchA seasonal marketFragmented industry means heavy reliance on repeat business and reputationOver ½ of the population had never had any form of treatment

PESTLE AnalysisPolitical

Pampering is seen as a luxury and so has only previously been available for those better off people.The government could make tax concessions to encourage those people who are less affluent.We would need to be politically correct in the respect that we would encourage all ethnic minorities, people with disabilities, and people of all ages, shapes and sizes and gender. It would also need to be taken into consideration when employing staff, with specialised continental massage, who would we want to employ to fit this part and how would we advertise for them without breaking equal opportunity laws.

EnvironmentalIn a society such as today, life can become very stressful, this will mean that customers will want a relaxing break from time to time, especially with our USP focusing heavily on emotional well-being and stress. There are more environmental threats posing unhealthy to the body. Pollution, exhaust fumes, air conditioning and very tempremental weather will mean people will want to escape to a place where none of this exists and will want to detox themselves of this unhealthy lifestyle every now and again.

PESTLE AnalysisSocial

A luxurious break to a spa more often than not shows a sign of wealth and importance. The general stigma attached to spas is that they are expensive and exclusive. This needs to be pushed in advertising but would not want over-emphasize as we will be aiming to welcome everyone.Packages would encourage partners or groups of friends to frequent the spa. Our advertising campaign could focus on making the idea of holistic therapies a part of everyday life, a place that is socially acceptable for all.

TechnologicalWith technology increasing more and more, the world is adopting a more relaxed way of life in the sense of health and fitness. Cars and public transport mean that people do not need to walk anywhere whilst spending their days and nights sat by computers working. Although there are gyms available the location of these is not always picturesque and more often than not carries with it a very busy atmosphere. This means that people will want to regress back to a calming, relaxing atmosphere whilst clearing the mind from all the day-to-day hustle and bustle.Newer technology could mean that newer treatments could be made available but there would need to be careful consideration as to whether or not these were implemented as the spa may only want to be based around natural treatments.

PESTLE Analysis

LegalWith a very limited set of laws to follow within beauty therapy rules, it becomes imperative to look at the finer details of recruitment and selection, health and safety, insurance, and all other underlying laws. These can be found via joining the Federation for Holistic Therapists who will support and advise the company on what not to do and such like.It would also be advised that employees were all trained with qualifications to show. These could be framed and hung up in the spa to indicate a sense of professionalism.

EconomicWhen the economy goes into recession, discretionary spending or disposable income becomes the first thing to suffer, a way to overcome this could be encouraging courses of treatments, bookings in advance and promoting discounts for future visits.On the other hand, when GDP increases, money becomes more available and leisure industries are the first to benefit. This could be monitored and advertising could be worked around these up and down periods.

Unique Selling Proposition(USP)

USP is the unique product benefit that a firm promotes in a consistent manner to its target market. The benefit usually reflects the

functional advantage: ‘best quality’, ‘best service’, ‘lowest price’ and ‘most advanced technology’.

Positioning strategies use associations to change consumer’s

perception of products. We will be using ‘benefits offered’, the benefits

to what having a massage can do.

Unique Selling Proposition(USP)

Relieving travel tension and jet lag. Pampering. Help fatigue, stress, emotional disturbances and chronic pain. Relieve stress, tension, improve blood supply, promote the

unblocking of nerve impulses and to help restore balance in the body.

Improve emotional well being and health.

‘Best quality’ and ‘Best service’

Deep tissue massage Swedish massage Reiki (Japanese) Thai massage Indian head massage Aromatherapy massage Reflexology

Unique Selling Proposition(USP)

Conclusion