PREPARED BY:RITU SHUKLALOKESH LUHANACHANDRA PRAKASHKOMAL GUPTAARPIT JANGIR

CABO SAN VIEJO

INTRODUCTIONCabo San Viejo was a leading spa and fitness centre founded with the aim of providing healthier lifestyle and to create awareness.

It was the nations first and leading Health and Wellness brands, operating high end destination Health Resorts & Branded Day spas.

COMPANY BACKGROUND it was founded in 1977 by Dave and Florence

Blumenthal on the site of a former peach orchard in palm springs.

Blumenthal's created a place where smokers, overweight people, and others could go to feel better and learn how to live healthier lives

In 1982 however a leading magazine jornalist wrote about cabo san viejo that it is “premier total vacaton / fitness resort”.

In the late 1990s and early 2000s the company opened sites that offered spa services without overnight facilities.

It was termed as “fat farm” offering low calorie diet and exercise to clients.

PROPERTIES :

PROPERTIES In 2005 it operated 5 properties:1. One full service2. Overnight destination resort3. Four smaller 4. Cabo day spas Located on 150 acres in the foothills of the san

bernardino mountains. Can accommodate more than 288 guests in

adobe cottages.

OFFERINGS One full service overnight destination resort.

Four smaller cabo day spas.

Palm spring acccomodated maximum of 288 guests.

Price between $3,588 - $5,844 /person.

Fitness classes & activities

Lifestyle manageme

nt

Medical Services

Nutritional consultatio

ns

Staff to guest ratio

is 3.2:1

Efficient personal trainers

Efficient & trained

reservation staff

STRENGTHS

·       30 years of experience ·       Beautiful location ·       Four day spas ·       Well-trained, professional staff ·       Quality product, full-range of services ·       Focus on overall health

WEAKNESSES ·    Poor computer system. ·  Limited capacity ·    Lack of cohesive marketing strategy ·    Inconsistent guest recognition ·     No systematic customer relationship

building ·     Expensive

OPPORTUNITIS ·       95% positive response ·       Positive word of mouth ·       Repeat business, loyal customers ·       Demand will increase with increase in

health ·       Increase customer loyalty

THREATS ·       Competition ·       Incorrect perception about offerings ·       Perception of expense ·       Increasing consumer customers expectation ·       Demanding guests, sense of entitlement

Creating brand awareness ads

through TV, print media &

radio Efficient & trained

reservation staff

Partnership marketing

efforts

Cross-Marketing b/w

the CaboDaySpas

and Destination Resort

Maintaining a strong sales

force

Reduced rates in off season

Customer survey and

sending guest personal

“Thank You” letters to their

patronage

Marketing &Sales strategy

LOYALTY1) Adding financial benefits through fp’s.

2) Adding social benefits.

3) Adding structural ties. 4) Creating long term contracts or subscription

5) Charge a lower price to consumer who avails more services.

To build custom

er equity

Attracting

customersTo

develop good

customer

relationship

To increas

e custom

er satisfaction

To gain positive word of mouth

publicity

To survive in the

competition

Cross Marketi

ng

LOYALTY PROGRAM

CUSTOMER LOYALTY PROGRAM Should CABO SAN VIEJO implement a reward

program?

Who should qualify? How should “POINTS” be accumulated?

What should the rewards look like?

Should rewards only apply to cabo san viejo or should they be redeemable at other places? If the latter, then what types of partner?

ACTION PLAN Rewarding loyalty should be started.

Should acknowledge their customers by sending them gifts on various occasions.

Should send special package for a couples to spend their anniversary at Cabo.

Should Introduce membership cards .The person possessing it will exercise free privileges for example swimming , gym , massages etc. This will help to generate loyal customers.

OTHER PROBLEMS They are on the top of the pyramid in terms of

pricing.

Lack of awareness campaign.

Low customer to staff ratio (3.2:1)

Failure to attract Men.

Lack of accommodation.

No Customer Database System.

LEVEL OF CUSTOMERSThere are several levels of customers:

1. Dissatisfied customer--Looking for someone else to provide product or service.

2. Satisfied customer--Open to the next better opportunity.

3. Loyal customer--Returns despite offers by the competition

Cabo San Viejo Customer Satisfaction,Palm Springs Location Comment Card Responses

74 %

21 %

3 %

1 %1 % OUTSTANDING(74%)

VERY GOOD(21%)

SATISFACTORY(3%)

UNSATISFACTORY(1%)

NOT APPLICABLE(1%)

SUGGESTED SOLUTIONS Cut down prices.

Make people aware with the help of electronic media.

Concentrate on men oriented games.

Regular Customer Satisfaction Programs, like greeting their customers with flowers etc.

•It is not enough anymore to merely satisfy the customer- Customer must be delighted.

•Customer satisfaction is a measure of product quality. •While satisfied customers tend to be loyal customers, loyal customers are not always satisfied customers. •If you keep your customer happy, they will keep you in business.

CONCLUSION

Thank You !