KLM1 Task 1 Marketing - Grade: A PDF

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Marketing Performance Cala Deia Spa...

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Marketing C212

Western Governor University

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A1: NEW PRODUCTS AND/OR SERVICES The Cala Deia Spa is a U.S based spa providing nail care such as manicures and pedicures and massage therapy services to their clients. The business headquarters in Fort Wayne, IN. This spa is currently only in the United States, but we're going to open a branch in Canada. This paper will examine the efforts to expand into the Canadian market with two new services to that country. One new service is for childcare services while clients are getting their services and the second service is a premium package of all services offered by the Cala Deia Spa. A1A: METHODS Survey Three methods have been used to assess the feasibility of two services proposed to identify the Cala Deia Spa in Canada which required these new services. The first method was to perform surveys, it can be completed online or in-person at the spa. Customers were asked to complete a short survey of no more than 3 minutes while getting their message, manicures, and pedicures or when they are checking out. I will also provide an e-mail survey for clients who are not interested in completing the survey while they are getting their services. Surveys are also available on the website of Cala Deia Spa. This will ensure that our surveys are as easy and convenient as they are for clients, and it is cost-effective to gather information. Direct Observation The second method was a direct observation, and for this method, staff could easily determine or able to track the number of parents with their children are coming to the Cala Deia Spa every week. By direct observation, we can see how the services provided by Cala Deia Spa benefit customers and how reliable data can be collected. I believe that Cala Deia Spa will

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benefit from this, especially if it includes these new services, the premium package, and childcare services. Focus Group The final method used was a multi-customer focus group of 8 to 12 customers with and without children. The group will be led by a company moderator and after the group discussion, every member will receive a gift card. Along with the other methods, this method offered a very valuable description of what customers want or need. Besides these two new services, the focus group that was used for the evaluation contributed positively to their ability to improve their services. The aim of collecting this information was to provide the clarity and accuracy of the information, as this would allow us to prepare for a successful entry into the Canadian market. Besides, it is a critical part of the planning method to reduce the risk of investing too much time or money. A1B: COMPETITIVE ADVANTAGE The main competitor of Cala Deia Spa is Novo Spa, which offers spa treatments such as facials, massages, body care, manicures, pedicures, and spa packages. By effectively introducing Cala Deia Spa to the Canadian market, Cala Deia Spa can gain a first-time advantage over its competitor and establish customer loyalty. In providing childcare services in Cala Deia Spa, there is a strong chance that the number of customers who come for spa or treatment services will increase. Spa and treatments are a relaxing experience for many parents, but babysitting is an issue for many parents. Since this service is not offered in any other spas in the country, the childcare services offer a significant advantage. Another way to gain an advantage over its competitor is offering a premium package, Cala Deia Spa will gain the competitive advantage of returning clients from other spas that do

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not provide the service. The addition of premium discounted services would further increase their competitive advantage. They will also attract clients who want upgrades while in the spa, as they believing that they have saved money with the premium package. A1C: INHERENT RISKS Two risks need to be considered when these services are launched in Canada. First, childcare for many businesses will be more complicated mainly because of the accommodation and the more prohibitive costs of hiring childcare staff. One way I would seek to minimize this risk and to maintain our customers is not just to ensure that we have excellent customer service for our customers, but also to reward them for bringing in new customers into a business. Second, if other spas businesses see that our spa is successful in the market, there are risks of gaining many competitors. For other spas, the premium package deal will be very easy to introduce to their customers. It is, therefore, necessary to retain the loyal customers of Cala Deia Spa to ensure that their services remain true to its brand. One way I will seek to minimize this risk is when a customer buys a premium package deal, they will receive a gift such as a robe and sandals. A2: CUSTOMER RELATIONSHIP MANAGEMENT SOFTWARE Zoho is the customer relationship management software system that Cala Deia Spa is recommended to handle its work internationally. Zoho CRM is to build lasting customer relationships and maximize team productivity (Zoho, 2020). Zoho’s first feature is lead management to simplify daily sales, marketing, and concentrating on customers (Zoho, 2020). This feature can connect with customers such as email, social media, and live chat. Second, the software provides workflow automation, which enables Cala Deia Spa to leverage the power of customer context to increase agent productivity, promote self-service, manage cross-functional

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service processes, and increase customer satisfaction (Zoho, 2020). IOS and Android Apps is another feature that you can connect to your business, even if you are away from your desk by installing mobile mail app, you can control your business communications (Zoho, 2020). Zoho also provides process management to plan, monitor, and efficiently communicate with Cala Deia Spa's workers wherever they are (Zoho, 2020). Marketing automation is another feature that builds automated workflows to help the company reduce manual data entry and to save valuable staff with automation tasks (Zoho, 2020). Finally, Zoho offers advanced analytics that allows Cala Deia Spa to track the value of its customers in real-time and to keep up-to-date on current software and marketing strategies, as well as predict the future of sales (Zoho, 2020). I think these features are useful to have because Zoho is a great tool for tracking sales, generating forecasts, providing access to customers, and leading generations. A2A: CRM INFORMATION For the satisfaction of Cala Deia Spa’s customers, the successful use of CRM will be important. Ferrell and Harltine stated that “Customer satisfaction is the key to customer retention. Fully satisfied customers are more likely to become loyal customers or even advocates for the firm and its products. A satisfied customer is less likely to explore alternative suppliers and they are less price-sensitive (Ferrell and Harltine, 2014).” With two new services from Cala Deia Spa on Canadian markets, the data provided by Zoho will be used to track sales, identify the analysis and improvement strategies of the customer services team. For example, Cala Deia Spa can interact or engage with customers through social media such as Facebook, Google, LinkedIn, and Twitter as Zoho is fully integrated and available in Canada. There is also a mobile version that can be used away from the company and which allows direct replies and responses in real-time. Another example, if the new services sales prediction suggests a decline, the

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marketing team may decide to use different financial or bonding strategies to boost sales. Information may also be used to clarify customer expectations or provide feedback to improve the business’s ability to respond accordingly. With the efficient use of this information, Cala Deia Spa will continue to please its customers and retain them. A3: DISTRIBUTION CHANNEL The current distribution channel for Cala Deia Spa would be direct sales through the internet. The customers can purchase and book to request the services via the internet by phone, online, on the website, and social media. Retailers or wholesalers would not be required because we are more of a service than products. There are no export taxes or tariffs that we do not consider because we do not import the goods into a foreign country. A3A: KEY CONSIDERATIONS There is no key consideration because we do not export a product and are rather services. However, Canadian-specific rules and regulations need to be considered. With this in mind, Cala Deia Spa will recognize whether an investor or a partner will help form the bureaucracy. As a spa, we just have a limited number of things to purchase, so stock management is not a concern. A3B: GLOBAL SUPPLY CHAIN The Cala Deia Spa does not provide a product, but rather services so that we do not have the risk of a supply chain, as if it were a physical product. A4: MAJOR PRICING STRATEGY Since Cala Deia Spa is selling services, the average consumer in Canada must take into account the willingness to pay for premium packages for spa services which prove to be of value to the customer. Cala Deia Spa has to be competitive to thrive in the business markets where

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costs are a key factor. For these purposes, its new services offerings will be subject to the following costs: premium package: $ 330 and childcare services: $10/ each visit. A4A: COSTS ASSOCIATED WITH DEVELOPMENT AND LAUNCH Massage chairs, manicure and pedicure chairs, rental, salaries, and products such as polish, sterilizer, massage oils, and body scrub will be included at the expense of launching these services. Message chairs and pedicure chairs range from $3800-$4500. In the United States average salaries range from $10 to $16 per hour for day-care staff and spa therapists for $12.50 to $31 per hour depends on their experience. Many expenses that must be taken into account are permits, registration, and insurance. The thousands of dollars will be used in CRM software, computers, and the internet. Marketing and branding would cost about $3000 for a Website. A4B: CONSUMER ACCEPTANCE OF PRICE By surveying a group of domestic customers, consumer approval of these services prices will be decided by the marketing department. The survey showed that the customers would accept $10 childcare services every visit and $5 childcare services for premium package customers. The premium package includes any two customer choice of 60 minutes’ massage therapy, two regular manicures, and two regular pedicures for $330. The benefit of the premium package would be clear to the consumer as the average costs of massage for 60 minutes cost $120, manicures and pedicures cost $70. A4C: COMPETITOR PRICES When work was conducted by the focus group, they found that there are no competitors who provide childcare services in any spa in the country. The focus group noticed that the typical competitor massage therapy was averaged $155 for 60 minutes’ services, $63 manicure, and $65 pedicure.

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A5: PROMOTIONAL STRATEGY For its promotional strategy, Cala Deia Spa will continue to use a push strategy. its specific target market and customer’s satisfaction will depend on Cala Deia Spa’s global promotional strategy. The majority of the promotional mix will, therefore, focus on customer services and marketing activities to attract and retain customers. A5A: MASS AND SOCIAL MEDIA CHANNELS Television and mail advertisements are the company’s two mass media to promote the new services on the global market. Advertising is a great way to introduce new services to television shows during commercial breaks. Because many young and older people watch their favorite shows, sports, and news, etc. Mail advertising is another great way to introduce new services because it would ensure that customers know exactly what the services it offers through direct mail. Social media is a great way to sell new services because millions of people using social media such as Facebook, Twitter, email, and Google, etc. Advertising in newspapers or magazines and even in YouTube ads to make it easier for people to see what it offers. Furthermore, Cala Deia Spa has its website and it can be shared through social networks as well. A5AI: JUSTIFICATION OF MEDIA CHANNELS These four channels have been selected to designed to meet the target markets and the services provided by Cala Deia Spa must also be known to customers. The Spa provides many opportunities to create consumer recognition by integrating services in these four media channels. The mass media strategy will focus explicitly on the market and social media will focus on the general public's awareness of the new services provided by Cala Deia Spa. Cala Deia Spa is a realistic option and a chance to improve profits if it is carried out successfully. It will foster competition and provide further incentives for staff teams to grow their profits.

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A5B: SALES PROMOTION ACTIVITIES The two sales promotion to be used to promote these new services in a global market is an offer of 20% off coupons in print media ads and promotional codes social media pages. The coupon allows customers to book spa services online or in-store. Another sales promotion is the use of a reward card from Cala Deai Spa. When a customer has purchased 6 services, they will receive one free regular services and when specials are available at the spa, it will directly send an e-mail or direct mail with a specials code to existing customers. Another activity along with this reward card is a referral program where customers can receive 20% off when they referral friends.

B: SOURCES

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Ferrell, O.C., & Hartline, H. (2014). Marketing strategy, Text and Cases (6th ed.). South-Western, Cengage Learning. ISBN-13: 9781285073040 Pride, W.M., & Ferrell, O.C. (2014). Marketing 2014. Independence. Cengage. ISBN-13: 9781133939252 Zoho (2020) Cloud Software Suite and SaaS Applications for Business. Retrieved from https://www.zoho.com/...