Evoe Spring Spa: A Spa: A Posi Positio tionin ning g Dilem Di lemma ma
Decision Report
13th September 2015
MEMO EVOE SPRING SPA
Date: 2010 From: Aditya Prakash Parwal, Executive Assistant To: o!"ounders: #o$al %aman, Anil &umar, 'umit #u$ta 'u()ect: Report on poitioning o! Evoe Spring Spa
Enclosed is the re$ort on the $ositionin* o" Evoe '$rin* '$a+
E"e#$tive S$mmar% Evoe '$rin* '$as $lanned launch is on 1 st -anuary 2011+ Task is to choose the (est $ossi(le $ositionin* "or Evoe '$rin* '$a "rom amon* the three e.ually via(le o$tions: 1+ A""orda(le /ndul*ence 2+ A""orda(le ealth + A ittle 3acation A(ove o$tions were evaluated on the (asis o" criteria: 1+ 2+ + 4+
%esonance with consumers ommunication Di""erentiation o" Positionin* Acce$tance
The recommendation is that 5Evoe '$rin* '$a6 should $osition itsel" in 5A""orda(le ealth6 se*ment+
&ab'e o! (ontent 'ituation Analysis+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++7 Pro(lem 'tatement+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++8 9$tions Availa(le+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++8 riteria "or Evaluation++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++8 Evaluation o" the 9$tions+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ %ecommendation++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++; Action Plan+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++; Exhi(its+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++<
Sit$ation Ana'%i The s$a se*ment in wellness market is estimated at /=% 4 (illion to 7 (illion+ The wellness industry is ex$ected to *row at a com$ounded annual *rowth rate o" 20 $ercent over the next three years+ /ndias chan*in* social context and its increasin*ly hectic li"estyles had *iven rise to stress!related $ro(lems, which had $rom$ted a shi"t toward conscious sel"!care to ensure a healthy, active and extended li"e+ This shi"t has $rovided a *reat o$$ortunity "or s$a industry+ '$a se*ment in /ndia is "lourishin* mainly in ur(an cities+ >ale $o$ulation in ur(an cities is (ecomin* more ima*e conscious due to increasin* $eer $ressure and is "eelin* the need to look *ood and $resenta(le+ The "emale $o$ulation in ur(an cities considers s$as a (etter o$tion when com$ared to (eauty $arlors "or (eauty solution and treatments+ owever the use"ulness o" s$as "or women in /ndia is not limited to )ust (eauty solutions+ ?orkin* women, who like men, have a stressed li"estyle seek relaxation and re)uvenation at the s$a+ Althou*h s$a has succeeded in esta(lishin* itsel" as a $re"erred choice "or certain consumer se*ments, still there are *a$s that need to (e (rid*ed+ 9ne o" the key challen*es "or s$as is social and cultural acce$ta(ility+ ross *ender massa*e services (ein* o""ered (y some s$as are not culturally acce$ta(le in /ndia+ 'imilarly common shower areas "or men and women are also a (i* deterrent+ Also there is a ne*ative connotation attached to s$as, due to some 5massa*e $arlors6 also $osin* as s$as+ This $revents $eo$le "rom o$enly admittin* their indul*ences in s$as+ /n addition to this $eo$le also do not consider s$as as a $lace to visit with "amily@ as a result consumers avoid visitin* s$as in their "ree time, as they $re"er to s$end that time with their "amilies+ Awareness There is limited awareness amon* some sections o" consumers re*ardin* health and other (ene"its o""ered (y s$as+ The three co!"ounders (elieved that many consumers did not consider s$a services (ecause o" their exor(itant $rices+ Accessi(ility was another concern+ Perce$tion o" s$as as (eauty $arlors or as massa*e $arlors o"ten led to ne*ative connotations+ Factorin* the a(ove "actors, the three co!"ounders needed to decide on the $ositionin* o" Evoe '$rin* '$a EvoeB in the relatively nascent /ndian '$a >arket+ Evoe needed a di""erentiated and clear $ositionin* to ensure it would
(e their tar*et consumers "irst choice and would remain so a"ter their "irst ex$erience at Evoe+
Prob'em Statement A decision re*ardin* on how 5Evoe '$rin* '$a6 should $osition itsel" in the market and which consumer se*ment it should tar*et needs to (e taken+
Option Avai'ab'e Three distinct $ositions Evoe can occu$y in consumers mind: 1+ A""orda(le /ndul*ence 2+ A""orda(le ealth + A ittle 3acation
(riteria !or Eva'$ation 1+ %esonance with consumers 2+ ommunication + Di""erentiation o" Positionin*
4+ Acce$tance
Eva'$ation o! Option A!!or)ab'e In)$'gen#e 1* >ost resonance amon* lim(ers, '$rinters+ #ood %esonance amon* %acers+ Cero %esonance amon* 'nails+ +E"hibit ,-
2+ ased on insi*hts "rom "ocused *rou$ discussions, the idea o" $am$erin* and re)uvenatin*, at an a""orda(le $rice, can (e communicated e""ectively+
+ i*h com$etition (ecause o" $resence o" num(er o" $layers in a""orda(le se*ment which are caterin* to (eauty$am$erin* services+ +E"hibit 54+ =e*ative connotations like eauty and >assa*e services may harm the $ositionin* and may (e misconstrued+
A!!or)ab'e .ea'th 1* >ost resonance amon* %acers, '$rinters+ #ood %esonance amon* 'nails+ 'ome %esonance amon* lim(ers+ +E"hibit ,2* /ndians have well!res$ected systems o" Ayurveda and o*a+ ut there is lack o" awareness amon* consumers a(out health (ene"its o" s$a services+ /t would take some e""ort to communicate this idea to 'nails, (ut /ndias historic interest in health and wellness $ractices can (e ex$loited here+
+ 3ery less com$etition (ecause o" $resence o" very "ew $layers+ Area on the ma$ is "airly em$ty and uncluttered+ +E"hibit 5-
4+ ein* associated with health and wellness, it will (e a(le to address the ne*ative connotations to a lar*e extent+ E""ort will (e re.uired in *ettin* 'nails to acce$t this+
A /itt'e Va#ation 1* #ood resonance amon* lim(ers, '$rinters+ 'ome %esonance amon* %acers+ Cero %esonance amon* 'nails+ +E"hibit ,2* onsumers do not consider visitin* s$as with their "amily and do not associate s$a with vacation+ Also, vacation is not an activity to (e carried
out "re.uently+ There"ore, it would (e di""icult to communicate this idea to consumers+ 3* ess com$etition (ecause o" $resence o" very "ew destination s$as and accessi(ility is also not easy+
4+ The idea will (e acce$ted (y "amilies (ut accessi(ility will (e o" concern+
Re#ommen)ation Evoe '$rin* s$a should $osition itsel" in 5A""orda(le eath6 se*ment+ This $ositionin* will ensure reach to all consumer se*ments since all se*ments have some resonance with this $ositionin*+ /t is the only $ositionin* in which 'nails se*ment, which has the lar*est $o$ulation G00 millionB, has some level o" resonance+ Also, this $ositionin* will have very less com$etition (ecause o" $resence o" very "ew $layers@ area on the ma$ is "airly em$ty and uncluttered +E"hibit 5-+ ein* associated with health and wellness, it will (e a(le to address the ne*ative connotations associated with s$as to a lar*e extent+ /ndias a(idin* interest in health and wellness $ractices can (e ex$loited to a lar*e extent (y this ty$e o" $ositionin*+ The acce$tance amon* consumers will (e more com$ared to other two $ositionin*+
A#tion P'an 1+ /t should $romote itsel" as the a""orda(le and accessi(le s$a service $rovider+ A""orda(ility will ensure reach to snails+ 2+ Throu*h its $romotional cam$ai*n, it should *ive across the idea that health and wellness are key to a ha$$y li"estyle and it one o" the exclusive s$a $rovidin* that (ene"it throu*h its services+ + Evoe should tie u$ cor$orate com$anies and come u$ with tailor made $lans "or (usy $ro"essionals+ 4+ Evoe should have a cele(rity, who is associated with "itness and health, as a (rand am(assador+ 7+ Evoe should also run s$ecial $romotional cam$ai*n hi*hli*htin* its various her(al and natural services "or racers+
8+ /t should or*aniHe worksho$s in various schools, colle*es, *yms, s$orts clu(s and other $u(lic $laces drivin* home the idea that I"eelin* *ood a(out li"e is connected to health and wellness+ + /t should conduct s$ecial sessions "or those consumers who consider s$a visits as a li"estyle statement and are willin* to $ay $remium+
E"hibit 5
