Customer, Company, Context, Collaborators, Competitors the Overall

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 to get a large volume of subscribers, to keep costs low. [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 for an appointment will encourage the target consumer to patronize the spa frequently, more frequently than he or she might smaller, specific beauty places. The goal of convincing this consumer that the spa is a good value and will enhance her appearance will drive the promotion of the product.

This focus upon convenience when positioning the product is essential. Some spas may provide more luxuries but at a higher price. At these spas, it may be more difficult for ordinary consumers to secure appointments. However, our spa provides a wider range of services than the consumer could perform at home but with the convenience of walk-in appointments for most services and products. The target consumer still considers beauty something to invest in, and is highly trend-conscious, but does not have a lifestyle that revolves solely around beauty.

Ps: Product, price, place, promotions

Product

Some of the more innovative services of the spa include relaxation treatments and body contorting. The services of the spa span everything from the types of regular 'maintenance' products the average consumer might desire weekly, such as pedicures, to more exotic services that subscribers might want to experience on a weekly basis.

Price

Prices likewise vary, from relatively inexpensive services like brow waxing to more high-price services such as full-body exfoliation. The most innovative aspect of the pricing model is the need to subscribe to the beauty service, which has an overall cost-lowering effect for regular consumers. The need to secure a wide range of new memberships is a critical aspect of this beauty service's business model, and getting members is an important goal of its first year of business.