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Cabot Marketing Challenge 12/12/2011

Final Marketing Plan For Cyntheas Spa

Jordan Sedwin, Annie Mezzepelle, and Sarah Abramovitz

Marketing mix Product / service Waxing Cynthea and her staff are known throughout the area as a waxing "mavens" and the most merciful waxers in Burlington. They have clients from all over New England returning for their expertise. Clients are loyal and devoted.
Treatment Brazilian French Bikini wax Bikini line Eye Lash Tint Eye Brow Tint Eye Brow Makeover and Wax Lip / Chin Half Leg Full Leg Full Leg and Bikini Full Leg and Brazilian Back Underarm Price $60 and up $50 and up $40 and up $20 $20 $24 and up $16 $34 and up $65 and up $85 and up $100 and up $55 $22

Facials Say goodbye to cookie-cutter treatments! Dermalogicas skin treatments are 100% customized to your skins needs with a thorough, zone by zone face mapping skin analysis, making it one treatment thats different every time! Think of it as your personal routine, created especially for your skins needs, right on the spot!
Treatment The Dermalogica Facial Microzone Age Smart Ultra Calming Medicated Clearing Environmental Control Chromawhite TRX Price $85 $40 $85 $85 $85 $85 $85


Treatment Hot Rose Quartz Crystal Massage One hour treatment One and a half hour One hour Side-by-Side Massage in our Couples Suite One and a half hour Side-by-Side Massage in our Couples Suite Swedish Massage Half hour treatment One hour treatment One and a half hour One hour Side-by-Side Massage in our Couples Suite One and a half hour Side-by-Side Massage in our Couples Suite Deep Tissue Massage Half hour treatment One hour treatment One and a half hour One hour Side-by-Side Massage in our Couples Suite One and a half hour Side-by-Side Massage in our Couples Suite Couples Massage One hour treatments Hot Rose Quartz One hour Sideby-Side Massage in our Couples Suite Swedish One hour Side-by-Side Massage in our Couples Suite Deep Tissue One hour Side-bySide Massage in our Couples Suite One and a half hour treatments

Price $100 $140 $180 $250 $45 $70 $95 $125 $170 $50 $80 $110 $145 $200


$125 $145

Hot Rose Quartz One and a half hour Side-by-Side Massage in our Couples Suite


Swedish One and a half hour Side-by-Side Massage in our Couples Suite Deep Tissue One and a half hour Side-by-Side Massage in our Couples Suite



Body Treatments
Treatment Farm to Spa Foot or Hand Treatment Farm to Spa Autumn Treatments Red Wine Grape Vino Therapy Scrub and Wrap Apple and Pure Vermont Maple Scrub Great Pumpkin Scrub and Wrap Price $30 each $45 for both $150 $150 $150 $150

Rose Petal Sea Salt Scrub and Wrap

Wedding & Bridal Packages

Treatment Here Comes the Bride Groom the Groom Princess Bride Beautiful Bridesmaids Like mother Like Daughter Signature Makeup Lesson Makeup Application Price $200 $30 $550 $75 each $75 $100 $100

Dermalogica Products Cyntheas Spa offers a range of different Dermalogica products. Dermalogica is a high end skin care line that Cynthea uses in certain facial treatments. Farm to Spa Scrubs (homemade): These are the seasonal scrubs that are used in the different body treatments that Cyntheas Spa offers. They come in different sizes and assortments. They are made in-Spa by Cynthea and her team of employees. They are made from 100% natural and sustainable ingredients. They are the newest addition to Cyntheas Spa menu. In the future Cynthea hopes to have seasonal Farm to Spa scrubs made from seasonal, local materials. Locally- made Jewelry (on display) Cyntheas Spa carries a limited assortment of earrings made by a local vendor. They are one-of-a-kind earrings that are only sold in certain locations around the local area. What is innovative about Cyntheas products

What is innovative about Cyntheas Spa is that there are no other spas in the surrounding area like it. Cynthea prides herself on the Spas vibrant harmony. Services and treatments that Cyntheas Spa offers reflect that balance. An innovative product that Cyntheas Spa carries is the Farm to Spa line. This line of salt scrubs is made directly by Cynthea, in the spas location on Church Street. Cynthea and her team hand-pick most of the ingredients, combine, and jas them themselves. Apples, pumpkins, and other produce (flowers) included in these scrubs come directly from local orchards or farms. This product line is exclusive to only Cyntheas Spa. It is innovative because Cyntheas is taking advantage of the demand for natural and organic products desired by her local target market. With this line, she does not have to rely on suppliers or distributors and has created a line that is almost 100% vertically integrated. Additionally, all of Cyntheas Spa treatments are designed by Cynthea, based on her past experiences. She has formulated a special mix of products, treatments, and services that no other spa can claim to offer.

Lid of Cyntheas Spa Farm to Spa Jars

Specific products /services our team feels should be the focus for growth potential Our team feel that the farm to spa line and massage treatments should be the focus for growth potential. We think that Cyntheas Spa should concentrate on these aspects of the business over others such as waxing. Waxing already accounts for a large percentage of Cyntheas business. She does not need to do much in the form of advertising to get wax-only customers into the business. However, she does need to work on converting wax-only customers into multi-service users. She can do this by empowering and incentivizing her employees to push other services when performing waxing. This process has already begun by including a free skin evaluation with all waxing appointments. However, all members the staff have not been using their high levels of expertise to the best of their ability. Cynthea would like them to show more confidence and personal know-how when dealing with clientele. This way, customers will understand how professional and qualified every member of Cyntheas Spa team is. In regards to the farm to spa line, we feel that it offers a great opportunity to get Cyntheas name and exclusive product out in the marketplace. It is a great product that offers the benefits of supporting local farms and local businesses. It is 100%; therefore, people who have high uncertainty avoidance will not view this product as risky, especially when applying it on their skin. There are a variety of different vendors in the local area that we hope will agree to carry Cyntheas Farm to Spa line. Such vendors, to begin with, would include the local Co-op City Market and the weekly farmers market.

Specific products and/or services that are not currently offered that your team feels may have potential to strengthen the overall product line and business position Cynthea expressed the desire to expand the Cyntheas Spa menu selection by offering Shellac manicures. It is a stronger nail polish that lasts up to two-weeks without losing shine or chipping. Another advantage of this product is that it requires almost no dry time, so it is a quick treatment. There is unquestionably a demand for this service at Cyntheas Spa. Cynthea sees offering this service as an opportunity to bring in more clients, because if they are not coming to her, they are going somewhere else. She has seen it all too many times; people who come in to get a message and talk about going to get a manicure/ pedicure at the next place. This is especially prevalent when working with wedding/ bridal parties. Recently, Cynthea made the firm decision to implement the nail services, and purchased all of the necessary equipment. The new aspect of her business should be up and running by 2012. Compatibility with abilities, skills, resources All of the products and services at Cyntheas Spa are simple and easy to use. In relation to the Dermalogica skin care products, they come with directions but employees of Cyntheas Spa usually help customers pick out the product that is right for them. As with all the products offered in the store, Cyntheas offers a high level of customer service and all workers are happy to answer any and all questions you make have before, after, and during their use. Observability of innovation There is a high level of innovation present at Cyntheas Spa. The dcor of the Spa is innovative in the way that no other spa has the same feel or atmosphere as Cyntheas. Every room in the spa has a different theme and it really speaks to the personality of the Spa. In relation to her products and service, they are all (except Dermalogica products) individually crafted for the use of Cyntheas spa. Trialability and low perceived risk of use There is a high level of trialability with Cyntheas Spa. A customer can make an appointment at any time, and if they do not like it they do not have to return. The Farm to Spa products are available in small containers, so a customer who is interested does not have to spend a lot of money on a product before they try it. They could also buy these products before they commit to spending money on a full body treatment that uses those scrubs. As with all products and services that involve ones body there is a risk. However, at Cyntheas Spa there is low risk of any negative effects of products or services. They are all designed to improve or help a customers current situation. Cynthea and her team have all of the proper licenses and certifications for the treatments and services they perform. The Farm to Spa line eliminates many risks associated with scrubs. There are no chemicals in the ingredients of these scrubs because they are 100% natural. How to protect Cyntheas Spa from competitors

They way that Cyntheas Spa protects themselves from competitors is by not really worrying much about them. Her business is unlike any of the other Spas in the area, so, although they could be considered competition, they are not direct competition to her. But, an established and ever-growing loyal, customer base also helps protect Cyntheas Spa from competitors. Her strong brand is another way that Cyntheas Spa differentiates themselves from competitors. Pricing Cyntheas Spa sets their prices off the cost of running the business and also off competitors prices. Cynthea charges a higher rate when she is the one performing services because of her level of experience and certifications. The factors that go into the pricing decision are rent, payroll, input prices (Dermalogica), insurance, utilities, etc. What Cyntheas Spa hopes to accomplish with their price is that they get ahead of their competition. Another important factor in the price is that she wants to be affordable to her target market. Cyntheas Spa wants to penetrate the market and not leave any segment out. They want customers to perceive and experience the value and high level of customer services that are included in the price of treatments. We believe that the price of the products provides added value to the customers. Cyntheas Spa is not cheap, so they are not immediately associated with low quality. However, they are not too expensive that they are immediately associated with luxury and unaffordability. Of course with Cyntheas Spas prices they intend to recoup development costs of running the business. Cyntheas Spa prices are very comparable to her competition (Jivana Holistic Spa, Stephan and Burns). We, with the support of Cynthea, do not recommend price incentives. Cynthea views couponing and discounting as a form of desperation for the business. Also, when she has offered these price incentives in the past, she has had to recoup so that her employees are compensated as if customers were paying the full, true-price of the service or treatment. However there are certain exceptions to this. In the beginning of the school year Cynthea offers a 15% off firsttime appointments to the Spa. She does this to try to attract new students in the local, Burlington area. This is in hopes to bring in new customers that will be loyal to Cyntheas Spa for the next four years or however long they plan on staying in the area. Also, Thanksgiving Day she will be offering a radio- coupon all day. This promotion will offer a $50 gift certificate to the Spa for $25. This promotion is targeted to men doing holiday shopping for their wives or significant other. Promotional strategies Cyntheas Spa promotes their products and services in many different ways. They have a great, easy to use website that allows for online-booking. Cyntheas Spa has a large presence in the social media channels of marketing. Cynthea constantly updates her Facebook and Twitter pages. Correspondingly, the Cyntheas Spa page has over 1,500 likes on Facebook. Cynthea also participates in local, community events happening on and off Church Street. Recently, Cyntheas Spa did all the make up for the Strut Fashion Show 2011 Art Hop where there were more than 20 local fashion designers present. This was a great opportunity to network and get the Cyntheas Spa name out in different, but related industries. She is also participating in Vermont

Farm Tours that aim to immerse people and in the story and flavor of Vermonts unique culinary landscape. This was another great opportunity to target local, Vermont consumers who may be interested in Cyntheas products and services. Cyntheas Spa also has also taken out advertisements in the local newspaper Seven Days. It is important to note that word-of-mouth advertising is also a key to the businesss promotional strategy. Message to the Target Audience The most important message that Cyntheas Spa wants to reach their target market is that they are there for you. They are professional and experienced but are also the big sister that you can turn to with all your questions and insecurities. Cynthea and her team will find out what works best for you while aiming to deliver the best experiences and services they can. The way we would deliver the message As mentioned above, Cynthea can and does deliver messages through social media outlets such as Facebook and Twitter. She posts pictures of work that she has done to her Facebook wall, which mostly consists of make-up. This is a great way for potential customers to see actual, finished products done by Cyntheas. Forms of media we will use (keeping in mind the $5000 budget) We will mostly use the internet in order to gain customers for Cynthea outside of the Burlington area (i.e. tourists, families visiting their college-aged children). Cynthea, if given $5000, would like to launch a full-blown Google ads campaign. On Google search, one can acquire ad space in the sidebars where there is no current advertising. For example, if someone were to search Vermont Spas, ads for several spas in Vermont appear in the right hand side of the window. Cynthea is not currently one of these businesses, though she would like to be. With the proper resources, there is no reason she couldnt accomplish this. She would also like to do a similar ad campaign on Facebook, with constant ads. Situational Analysis (SWOT) Company analysis Strengths of the business Business ownerCynthea Experience Credentials Good branding Locally owned Unique space o Creative flair o Very colorful Continuous promotions through social media (Facebook & Twitter)

Markets to different groups (rural and urban customers) Good brand name recognition word-of-mouth recommendations Great service Trust

Weaknesses of the business Stigma that Spas are lavish Girly Expensive Location upstairs on church street No exterior sign on building (only on door) Staffs advice to customers need to be more consistent with Cyntheas Only one person is responsible for all marketing and execution of networking events Opportunities in the community/society for the business Burlington tourism Winter sports College town (UVM, St. Mikes, Champlain College, Community college of Vermont, Burlington College) Williston shopping centers Church street Weddings Social media Local hotels Beauty blogs Relationships with other local businesses Threats this business faces Local Spas on or around Church Street (Stephen and Burns, Jivana Holistic Spa, Tootsies) Resorts (Spas at the surrounding ski resorts) Catalog skin care Established brands Economic Recession Malpractice Nail salons Natural disasters (Hurricane Irene) Customer analysis Demographics of customers The demographics of Cyntheas Spa customers are women between the ages of 18-35 years old. Customers are either single or married. Majority of the customers are currently

college students in the area and typically remain Cyntheas Spa customers for their four-year college career or however long they stay in the Burlington Area. Geographic areas of Customers Many of Cyntheas Spa current customers are local from the Burlington and Chittenden County. Occasionally, there will be people from further away counties in Vermont who travel to the Church Street Marketplace in Burlington for their shopping needs. They can also be travelling to Burlington for other events of occasions like trade shows, fashion shows, wedding expos, etc. There are some out-of-state Cyntheas Spa customers. Cyntheas is likely to acquire out of state customers from a referral by local hotels that do not provide in-house spa services. Psychographics of customers The Psychographic of Cyntheas Spa customers are students, athletes, and people who are active, young working professionals. Cynthea says these are people, want to improve themselves from the outside-in or the inside-out. There are also customers who go to the Spa because they are stressed, because it is routine, or because they want to reward themselves. Some attributes of Cyntheas Spa current customers are that they are tourists who are visiting the Burlington area. There are also customers interested in a quick spa treatment during a lunch break. Some clients are athletes while others want to be pampered. Cyntheas Spa customers are split into two groups: those who like to schedule their appointments at the last minute and those who schedule their appointments in advance (more than a months notice). Key behavioral patterns of customers Those customers who enjoy being lavished and pampered create opportunity for Cyntheas Spa. Likewise, the constant and consistent customers that continue to return to the spa on a regular, schedule basis create a great opportunity to the business. By returning on a regular basis they create a good opportunity to spread praise about the business as well as providing good business to Cyntheas Spa. Conversely, customers who decide last-minute that they want an appointment also create opportunity. These customers sudden business creates opportunity for Cyntheas Spa to gain a returning customer. It also provides the opportunity to give a customer a first impression of the Spa. Here, Cynthea and her staff have the opportunity to demonstrate their knowledge and skill. Business and product line position Positioning statement: We use the following statement to describe how the ideal customer should think and feel about Cyntheas Spas business and product line: Cyntheas Spas customer walks out of the Spa feeling as though they have just experience the best spa experience they ever had. They felt that they are received exactly what they wanted and beyond. They experienced exceptional customer services by experienced and knowledgeable staff. And they fell in love with Cyntheas vibrant yet calming environment.

Brand: Characteristics of Cyntheas Spa brand Some of the characteristics of the Cyntheas Spa brand are rejuvenating, healing, harmony, and refreshing. The spa is known for excellent waxing, facials, massages, and the bright colors within every therapy room. We want the brands image to conjure that its a place that you can go to relax and get refreshed. That the people who work at the spa will help you with your needs and make you feel better. In a survey that we conducted over an online survey to Cyntheas Spa customers we received plenty of feedback from customers explaining what they enjoyed about Cyntheas Spa. One response in particular said, Cyntheas spa is my favorite place to treat myself. The service is always top notch, the people are warm and friendly and atmosphere is relaxing. In one of the questions we asked the customers to give you one word that they would use to describe how they felt about Cyntheas Spa. Some of the most commonly used words where; quality, reviving, awesome, divine, tranquil, adventurous, personal, comprehensive, wonderful, hip, vibrant, friendly, welcoming, stellar, and professional. All of these words are exactly the characteristics that Cynthea tries to make her spa like. Competitor analysis Competitors The competitors of Cyntheas Spa are: Jivana Holistic Spa, Stephen & Burns Salon, and Tootsies. All three of these main competitors to Cyntheas Spa are located all within a block radius, or less than a half mile to Cyntheas Spa location. Type of competition The competition mentioned above is mainly generic competition. They have a very similar product/service- line as Cyntheas Spa. However, it is important to note that each of these competitors are very different from each other. Cynthea of Cyntheas Spa does not consider these businesses direct competition to her because, while they are all Spas, they provide completely different services to their customers. Competitors product position Jivana Holistic Spa provides pretty much the exact same thing as Cyntheas Spa. Jivana Holistic Spa offers the same essential treatments but also have a few more treatments that are more often seen at a big resort spa such as a hot stone massage, and certain wraps. For Stephen & Burns Salon there main product position isnt the same services, as it is simply hair treatments as their main focus. But they do also have their upstairs area where they have many treatment rooms for waxing, massages and also facials. For Tootsies there main focus was originally shoes when they first opened. Later tootsies transformed one of there rooms into a mini spa that can host about four people getting manicures at a time and three people receiving pedicures. They also have one room, where they do facials, waxing and massages. Partnerships and relationships Cyntheas Spa has many local relationships and partnerships with nearby companies and the university itself. As many of the few local hotels right in downtown Burlington dont have their own spas, Cyntheas Spa started up a partnership with them as the hotels would then always

refer their guests to Cyntheas Spa if they had requested any of the treatments that Cyntheas has to offer. Cynthea also works closely with the sororities at the University of Vermont. She recently spoke to all of them at a recent event. Cynthea is also part of the Church Street Marketplace. Earlier in the year she participated in Burlingtons own Fashion Night Out, where she had a table outside of her spa giving out coupons along with samples of her recently made hand scrub. One of Cyntheas Spa biggest relationships is with the wedding expos that happen in Burlington or nearby counties. She takes a big part in all of the wedding expos allowing the soon to be brides a sample of what they might receive if they would be to hire Cyntheas Spa for their wedding services. Cynthea also has a strong relationship with nearby local farms. The reason for her relationship with the farms is her new Spa to Farm line. For this line she goes to the farms herself to retrieve all of the ingredients that she uses for the line that she makes right in the spa herself. Market Strategy Specific, Measurable Goals: Sales: When we began working with Cynthea, her business was operating at around 25% capacity in her spa space, though she was consistently gaining customers each year. After plugging in some numbers, we discovered that if Cynthea reaches her target goal of $42,000 for the month of December, she will officially be operating at 30% capacity. This is not an unreasonable goal considering she just sold hundreds of gift certificates ($50 value for only $25) on Thanksgiving. These gift certificates, along with the holiday gift-giving season coming up, put Cynthea in prime position to eclipse her best financial month ever ($35,000 in August of 2011). Cyntheas has the capacity at this point to be a $1 million business. In order to accomplish this she would need to be doing $80,000 worth of business per month. Though this may be a very distant goal (hopefully no more than five years in the future), we think it is reasonable that Cyntheas Spa could be operating at 50% within 2 years time. Also, if we could get even 20% of her current waxing clientele to try any other of her offered services by next year, it should significantly increase her business. Behavior Change: Cynthea is very active and has a very bright, yet warm personality (think vibrant harmony). She is the face of her business and goes above and beyond to ensure her business stays relevant. While she does everything possible to help the business, her employees arent the same way. They feel that because Cynthea is the face of the business, she should be the person to promote and market the spa and bring in new customers. While it is their job to work in the spa, they dont feel as if the spa is a part of them and feel they have less responsibility to bring in customers. If Cynthea were to implement some sort of system to help her employees feel more responsible for the business, there would be more people bringing customers in and business would increase. We think that if her employees were given some sort of bonus for every x (number to be determined) amount of customers they bring in, it would give the employees more incentive to change their behavior and try to market Cyntheas Spa. Another idea is a referral system; if a customer comes in and requests a specific employee, that employee gets a bonus (to be determined).

Awareness Levels: When Cynthea hired someone to survey people in order to find out the awareness level of her spa, 7 out of 10 people mentioned Cyntheas Spa before any other local spa. While this is already a good percentage, we hope to increase this number to 8 or 9 out of 10 by May of 2012.

Allocating Resources to Achieve Goals If Cyntheas Spa were given a $5000 budget, the first immediate goal we would like to accomplish would be to make sure a Cyntheas Spa sign goes up on her building. We are unsure of what it would cost for a nice weatherproof sign, but we are assuming it would be somewhere in the range of 100-300 dollars. We would also make window decals for her storefront since she is on the second floor. This will increase visibility of the spa and allow passersby to know exactly what is going on above Speeder & Earls. We would allocate somewhere between 100-200 dollars for the decals with Cyntheas signature flower design on them. Cynthea would like a sign hanging from the support bars for the awnings in front of the Chruch Street marketplace stores. We had originally been told that no second floor businesses were allowed to have these hanging signs, however, after some further research we discovered that there are other second floor businesses on Church Street have hanging signs. We are still unsure if they had some sort of special circumstances (e.g. the no hanging signs policy may have been grandfathered in), but Cynthea has now had conversations with both her building manager and Steve Hendrickson (a current candidate for Mayor of Burlington). Both people say they see no reason why she couldnt have a sign, especially since there is no sign hanging in front of her building in the first place. The next step is to bring the situation to the people who make decisions at the Church Street Marketplace and hope that we can convince them that this would be a great help to Cyntheas, as well as other second-floor Church Street businesses (if they were to completely change the policy, that is). By May 2012, we would allocate around $1000 towards building up Cyntheas Farm to Spa inventory so that she could begin marketing the products more (to which we would then allocate another $1000 dollars). Then we would try to strike deals with other businesses who would be interested in selling her affordable, quality products. We will talk to some of the many VT gift stores about striking deals, and we will also talk to The VT Brownie Company. Recently, Cynthea started making one of her Farm to Spa Scrubs with ingredients from the VT Brownie Company. She sells the product in-house only at the moment but since the VT Brownie Co. is providing some of the ingredients for the scrub, we think it would be a great idea to try to have them sell it on their website as well. Some other ideas we have brain-stormed with Cynthea include doing a facial and nail package for power lunchers. Many fast-paced working professionals dont have time to sit down for a facial during lunch, and then run to the nail salon for a manicure/pedicure, and still have time to eat and get back to work. With Cyntheas newly implemented shellac nail services, that is in the past. If Cynthea were to offer a facial and nail package, the working professionals could come in and gets their nails and facials done in one stop and in less than half of the time, leaving plenty of time to eat a solid lunch and get back to lunch in time. Another package Cynthea has been working on is a 3-in-1 local VT spa package. Included in this package would be a 2oz. container of one of her Farm to Spa scrubs, a 3oz. bar of soap provided by one of Cyntheas friends who makes soap in VT, and a small candle made by a local candle-maker.

Other Medium and Long-Term Goals We think within four years Cyntheas could be operating at near-full capacity if the right choices are made. If this were to happen Cynthea would have lots of extra cash flow to put back into the business and potentially increase revenues. By that point Cyntheas Farm to Spa line should take off and be offered in several other local stores. Also, if affordable, it would be good for Cynthea to hire an assistant or two to take care of the tasks that are a bother to Cynthea. Then she could focus more on the most important aspects of expanding her business, or simply do the things she wants to do, such as more bridal shows, since she has worked so hard to create a successful business. This would also aid in taking her face away from the business and putting more of the focus on her team, which is necessary if she plans to open more than one location since she cannot be everywhere at once. If this were the case, Cynthea wouldnt have to do everything herself and she could just train a reliable team. A long term goal is to have the spa reach capacity and hopefully expand to another few locations.