Customer, Company, Context, Collaborators, Competitors
The overall financing strategy of this beauty center is to provide a wide variety of services at a high volume, at a relatively low cost to the subscription-paying customer. It will target a mid-market, highly trend-conscious consumer who is interested in her appearance and values this aspect of her life enough to seek out regular beauty treatments as part of her lifestyle. Low-income consumers are unlikely to regularly patronize beauty salons for the variety of treatments offered by the company, while high-end consumers will not be as cost-driven as this company's business model suggests. The branding of the business stresses its convenience and cost as much as the actual services, and deemphasizes that personalized attention and relaxation aspect of beauty treatments. Thus a more professional, younger, and slightly less affluent demographic will be emphasized. Women unable to afford spa services previously are likely to be attracted to the product. [Target Audience]
Target customers are likely to be appearance-conscious, given the focus on selling many services to the same consumer. A consumer who wishes to purchase manicures, pedicures, and facials on a regular basis is clearly willing to expend a great deal of time and effort to enhance her appearance. However, many working women do not have the time to schedule extensive 'luxury' appointments. The goal of the company will be...
[Pricing Strategy]
In today's time-pressed context, the speed offered by the salon will be attractive, combined with its relative affordability. Washington D.C. is an extremely expensive area. It houses many professional women in fields where 'looking good' is essential. Raising awareness amongst this community will be the goal of the spa. The spa's services also offer many potential collaborators, such as the beauty product companies who could offer discounts when selling in bulk or could engage in promotional deals with the spa. However, many competitors also exist, including self-enclosed nail, hair, waxing, and other beauty services -- as well as the option of performing these services at home.
STP: Segmentation, targeting, positioning
Segmenting in the beauty market is essential, given that, strictly speaking, no beauty product is a necessity. This service will cater to a very specific segment of consumer -- likely young to middle-aged, given the relatively innovative spa services that are being offered -- who does not have time to devote hours to beauty treatments. She is likely a professional, either married with children or unmarried, and well-educated. She wants affordability, luxury, and speed. The target consumer will buy a subscription to the services and frequently use the spa for skin, nail, waxing, and other types of care. The lack of a need…
