section 1 seat 9: precious & royal spa
DESCRIPTION
Project Feasibility Study 2012 Chaiyawat Thongintr School of Management Mae Fah Luang University Member 1.Miss Chanakarn Juerla-ong 5331203018 2.Mr. Nutthaphong Khamkhoen 5331203029 3.Miss Tayanin Boontakume 5331203038 4.Miss Sunisa Deeloek 5331203133 5.Miss Nueng Srisawart 5331203137 6.Miss Acharaporn Sukantamala 5331203146 7.Miss Sirinya kittikoon 5331203501 8.Miss Natthacha Kunsriruksa 5431203022TRANSCRIPT
1203302
Project Feasibility Study
and Evaluation
Precious & Royal Spa
By
Miss Chanakarn Juerla-ong 5331203018
Mr. Nutthaphong Khamkhoen 5331203029
Miss Tayanin Boontakume 5331203038
Miss Sunisa Deeloek 5331203133
Miss Nueng Srisawart 5331203137
Miss Acharaporn Sukantamala 5331203146
Miss Sirinya kittikoon 5331203501
Miss Natthacha Kunsriruksa 5431203022
Present
Aj. Chaiyawat Thongintr
Preface
This report is the part of the course of project feasibility. Which provide all the
information about the Precious & Royal Spa business. Our aim for making this project is to
let the investor to concern about our project to and to deal with our team.
In the trade agreement under framework to open more market about service still go on.
And Thailand is between the other trade agreements. So in the future will be more service
market in Thailand. By the way the foreigners can come and invest in Thailand also Thai
citizen can invest in another country and this will increase the service trade amount the
country. Department of Trade Negotiations prepared for the fees associated with the health of
Thailand: Thailand Spa & Massage aims to create awareness to the public. Awareness and
encourage operators to prepare for the potential impact efficiently.
For the reason to do this spa business had become more importance nowadays even in
big and small service industry. So our team needs to focus on overview and environment
about the spa industry in Chaing-rai moreover to analyst the competitor by providing the very
important and possible information.
The framework of this project is to know about the background, industry of the spa
business in Chaing-rai and concern about the marketing and customer target and careful for
the technical, operation system and over all.
The successful of this project is our business can get into the best of the spa business in
Chaing-rai and give more opportunity for the local people and responsible for the society and
earn suitable profit and customer very satisfy for our service.
Group 9: Project Feasibility
February, 2013
LIST OF CONTENT
Chapter Page
I INTRODUCTION………………………………………………………… 3
1.1 Background and Significance of the Project…………….......... 4
1.2 Project Objectives……………………………….......................... 6
1.3 Benefits of Project……………………...........……….…………… 6
1.4 Activities/Time Frame………………………...........…...….……. 8
II INDUSTRY OF PROFILE……………………………………………... 9
2.1 Nature of Industry……………………………….......................... 10
2.2 Situation of Industry…………………………...........…...….…… 12
2.3 Product and Service……………………...........……….…………. 16
2.4 SWOT Analysis……………………………............……...……… 20
III MARKET FEASIBILITY STUDY................................................... 21
3.1 Market Analysis………………………………..............…….…… 22
3.1.1 General Environment Analysis…………………………… 22
3.1.2 Political………………………………........…...…….……… 22
3.1.3 Economic………………………………........…...…….…… 22
3.1.4 Social and Environment………………………………....... 23
3.1.5 Technology………………………………........…...……….. 24
3.2 Competition Analysis (3C Analysis)…………………………… 24
3.2.1 Competitor Analysis………………………………........…. 24
3.2.2 Customer Analysis………………………………........…… 28
3.2.3 Competitive Analysis………………………………........... 38
3.3 STP Analysis………………………………........…...…….……… 40
3.4 Marketing Mix Strategy………………………………........….... 42
3.5 Marketing Expenses (Sales Incentive)…………………………. 48
3.6 Marketing Expenses (thousand Baht)…………………………. 56
3.7 Marketing feasibility Summary…………………………………. 58
IV TECHNICAL FEASIBILITY STUDY …….................................. 59
4.1 Production and Operation Analysis ………………………….. 60
4.2 Service Process……………………………...........…...………… 61
4.3 The structure of spa design ……………………………………. 66
4.4 Machine/ Tools/ Equipment……………………………........... 76
4.5 Products use in spa……………………………...........…...……. 85
4.6 Logistic Management………………………………........…...... 88
4.7 Facility Management………………………………........……… 89
4.7.1 Management………………………………........…...……. 89
4.8 Invest Cost…………………………….........…...……...………. 91
4.9 Technical Summary…………………………….........…...…… 95
V OPERATION.................................................................................... 96
5.1 Raw Material………………………………............................... 97
5.1.1 Other expense……………………………….................... 109
5.1.2 Operating cost……………………………….................... 109
5.2 Operating Summary……………………………….................... 111
VI ORGANIZATION AND ADMINISTRATION............................ 112
6.1 Office investment and Depreciation……………………………….. 113
6.2 Administration Expense………………………………..................... 114
6.3 Employee Salary………………………………................................ 115
VII FINANCIAL ANALYSIS............................................................... 116
7.1 Income Statement………………………………....................... 117
7.2 Cash Flow………………………………................................... 122
7.3 Balance Sheet………………………………............................. 127
7.4 Ratio Analysis………………………………............................. 132
VIII RISK MANAGEMENT.................................................................. 133
8.1 Risk Management………………………………....................... 134
8.1.1 External Risk………………………………..................... 134
8.1.2 Internal Risk………………………………...................... 137
8.2 Risk Management Summary………………………………….. 137
8.3 Risk of Financial………………………………........................ 139
IX CONCLUSION................................................................................ 173
Conclusion of Precious & Royal Spa …………………………….. 174
REFERENCES
3
GGRROOUUPP 99
CCHHAAPPTTEERR 11
Precious & Royal Spa
Background and significance
Background and significance of the project
4
Spa comes from the Latin as "Sanus per Aquam" or Sanitas per aquas means health
from the river, hydrotherapy, health care by use the water. The beliefs and concepts that
involved may have conclude that spa is hydrotherapy under the supervision of a doctor or
specialist including a place to relax for good health.
At the beginning, spa in Thailand was located in luxurious hotels. The spa business
has been entering into Thailand for 10 years ago. But the spa business was hidden in the 5
stars hotel for only the foreigner customer and there was no specific of spa business.
Nowadays not only the foreigner but even Thai people also love spa so that cause will affect
the spa business keep expanding. The pattern of spa has been distributed in Thai people
because the environment had been change and that affect their health. The spa treatment
found that the spa can also cure their health not more but less.
Nowadays, spa business and Thai massage has growth it can make revenue and build
career to business services. In 2554, the number of establishments that registered and
certified by the Ministry of Public Health as of 1,436. The most of establishments located in
the main tourist destinations and Bangkok or the province that a tourist destination such as
Phuket, Chiang Mai and Chonburi.
(Reference:http://www.dtn.go.th/filesupload/aec/images/spa29-05-55.pdf)
Environment in Chiang Rai: appropriate to do the spa business
5
Natural Resources and Environment of Chiang Rai is interesting to invest generate
the spa business because Chiang Rai have the natural resources that plentiful and good
environment. From the natural resources and environment, it make the population in Chiang
Rai is a better quality of life and well-being. Thus, the natural resources and environment
that appropriate in find the raw materials to run the business about spa is help reduce the cost
and increase the opportunity in generate the profits in the long term.
This is a chart that present to natural resources that plentiful in Chiang Rai
Area(%)
Years
Referent the data from
http://www.thaienergydata.in.th/energynew/energyReview/energy/index_prv_resource.php?p
rv_id=57&year=2549
The business about spa in Chiang Rai, Spa in Chiang Rai have a little and in using
the spa service is expensive. So it a good opportunity in generate the spa business in Chiang
Rai to present reasonable price to customers and to meet the demand of them in health care.
Woodland
Agriculture
Not
classified.
6
The name of our company is Precious & Royal Spa, from study the market of spa
business, Spa is becoming famous in nowadays because most people interest in spa. The
reason why we choose spa business in Chiang Rai because in Chiang Rai have many
Touristic place and that will be very attraction to the foreigner and Thai people and
Chiang Rai is the place that you can rest and relax so, spa business is the business that very
interesting and it can make profit in business.
Project objectives
To gain the profit for the company because nowadays people more caring about their
health.
Bring the new innovation into the spa industry in Chiang Rai.
To bring out the benefits of natural resource use that exists in local place.
To support Thai herb to be more popular.
To study about planning business in Thailand also exports the products of spa to be
abroad.
Benefits of project
To inspire people to care more about their health and relaxing their mind.
To be the good and experience pattern that going to be in the future.
Can create the opportunities for the local people and stable salary for them.
Can receive the good knowledge that can be adjusted in the future life.
To active the economic around that area.
To support the skill labor to have stabilities in our company.
Operating Method
7
To study the general of spa business in Chiang Rai.
To study management in spa business as follows:
- Background of spa business.
- Product and service in spa business.
- Vision and mission statement of spa business.
- Strategy of the company.
To study marketing and competition analysis as follow:
- Objective of spa business in Chiang Rai.
- Demand of customers that use spa business.
- Marketing mix of spa business.
- Sale forecast and profits estimation of spa business.
To study the technical process in spa business as follow as:
- Location.
- Operation and management analysis.
- Investment and operation cost of spa business.
To study the financial feasibility of spa business as follows:
- Company’s investment cost, operation expense, and other expenses.
- Profit and loss statement, cash flow, and balance sheet in 5 year of spa business.
8
To study and analysis risk of spa business in Chiang Rai.
To Summary the feasibility of spa business in Chiang Rai.
Time frame of study
Time frames, since November 2012 - February 2013
Operation Method
November December January February
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1. To study the general of
spa business in Chiang Rai
2. To study management in
spa business
3. To study marketing and
competition analysis
4. To study the technical
process in spa business
5. To study the financial
feasibility of spa business
6. To study and analysis risk
of spa business in Chiang
Rai
7. To Summary the
feasibility of spa business in
Chiang Rai
10
Nature industry
Definition of spa
1. A health resort near a mineral spring or hot spring.
2. A trendy or fashionable resort.
3. A health club.
(Reference:http://www.allwords.com/word-spa.html)
(Reference:http://www.wikalenda.com/Health-Beauty-and-spa-022196.htm)l
A spa is a centre for treatments through various alternate medications, and has grown to
include relaxation, unwinding and getting pampered. But what make for an interesting read
are the origin of this culture, and the genesis of the word spa. So, when did the concept of spa
re- relaxing and getting treated for ailments through water - come into being? Where from did
it get its present name? There are myriad answers to these questions, but all intertwined in the
same theory.
(Reference : http://ezinearticles.com/?The-Origin-Of-Spa---A-Brief-History&id=413576)
Thailand spa
1. Hotel and Resort Spa refers to any spas situated in resorts serving hotel guests.
2. Destination Spa is a spa established in its own building which includes recreational areas.
Most of its clients will stay overnight, participating in selectable activities like meditation
programmes or yoga
11
(Reference:http://www.thaiwaysmagazine.com/thai_article/2119_spa_thailand/spa_thailand.
html)
3. Medical Spa means a spa providing medical treatments and utilising medical instruments
under specialised personnel's instructions. Generally, this kind of spa is located in hospitals or
clinics.
4. Day Spa and City Spa refers to spa services that can be finished at any time during the
day.
(Reference:http://www.thaiwaysmagazine.com/thai_article/2119_spa_thailand/spa_thailand.
html)
5. Mineral Spring Spa is a spa service at a natural spring which has been developed to be a
tourist.
6. Club Spa means a spa combined with a fitness centre.
12
7. Cruise Ship Spa is a spa service on a cruise ship. This is operated together with useful diet
for passengers during the voyage.
(Reference:http://www.thaiwaysmagazine.com/thai_article/2119_spa_thailand/spa_thailand.
html)
Spa business in Thailand
Spa come to Thailand about 10 years ago, the spa is a business that resides within
the rules of luxury hotel for essentially support a foreign and it is a little commercial
business.
Nowadays, the foreign tourists seek for spa services. At the same time Thailand also
have to pay attention too so; it resulted to spa business increasing growth rate.
From those, spa business in Thailand has foreign and Thai entrepreneur invest together. They
choose invest on spa business in hotel, resort or tours around the country.
Thai people give precedence health trend make spa business began to move out of
the hotel and rapid growth in the business district and tourist attractions. It is under the
concept of providing a variety of formats. It is remarkable that the spa is one of the health
services and has potential to grow in further of the growth rate has averaged 20 to 30 percent
per year so, spa business can retrieve revenue from foreign visitors has more than 24,000
million Baht.
Spa on small market has Thai consuming power about 2,000 million per year. Spa’s
revenue of foreign travel market will be growth because a growing demands by the public
sector to the tourism industry that promote and support throughout. Public sector targeting
Thai is health center of Asia year 2546-2554 and bring revenue to the country, not less than
100,000 baht. Attention and take care of health trend on the middle market has 70 percent of
total Thai people.
Thailand can ensuring the reputation of the spa on one rank in Asia for time and
including the development of the industry in terms of equipment and products for the spa
business that growth and expanded to export continuous to other countries.
Development trends in the spa industry for competition year 2549 believe that
entrepreneur bring with the strength to presented as a selling point or create a clearer identity.
This may cause new format spa. Other than expanding spa customer base to the men or metro
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sexual group be regarded as growth of customer is one factor encourage high growing spa
market. On year 2549 suppose has especially man or metro sexual spa in other hotel that
often a career in management.
(Bangkok Post newspaper dated December 26, 2548 page 23)
Now spa business in Thailand has been growing over 30% from all standard spas but
in the meantime, there are about 200 of spa business are still problems in the management of
the spa. Revenue from the spa Thailand there are currently a total of 5,000 million Baht
foreigners 80% and Thai 20% as the market has grown about 20% annually. With support
from the Government and TAT this is part of the spa business Thailand grew up.
14
*Reference:http://www.cheapestav.com/2010/04/%E0%B8%98%E0%B8%B8%E0%B8%A
3%E0%B8%81%E0%B8%B4%E0%B8%88%E0%B8%AA%E0%B8%9B%E0%B8%B2%E0%B9%
83%E0%B8%99%E0%B8%9B%E0%B8%A3%E0%B8%B0%E0%B9%80%E0%B8%97%E0%B8%
A8%E0%B9%84%E0%B8%97%E0%B8%A2/
The spa business in Thailand in addition there are entrepreneurs who are interested to
invest in Thailand, there are spa foreign penetration into the market has increased. Mostly
The foreign spa will focus on service foreigner in hotels and the main hospital. As the foreign
spa is known in the world market for a long time and it is more universal. While the Spa
business in Thailand recently entered the market a few years and in the process of developing
provide equal to international standards. Moreover spa business in Thailand still lack of
personnel (Therapist) and personnel with expertise in the management including equipment
and related services. It is opportunity of foreign spa entered competition the market in
Thailand business groups and hospitals have targeted a foreigner therefore often joint venture
with the foreign spa to create a competitive advantage in terms of technology transfer and
management system as standard. To creating international networking market as well as
image and reputation of the foreign spa to enhance competitiveness in spa business each
business are different operating such as in terms of a location. Services may be a purely
western; a combination of eastern wisdom and western knowledge or spa services in Thailand
has Thailand traditional medicine services to create a unique depending on the marketing
strategies of entrepreneurs
Spa business in Chiangrai
Now spa business in the north of Thailand are many occurred therefore, occurs
establishment of a consortium together to exchange information and define the service
standards for Thailand Lanna spa high quality and a good standard forever. Thailand Lanna
Spa Association has 52 entrepreneurs’ covers an area of Mae Hong Son, Lamphun, Lampang,
Chiang Rai, Chiang Mai, and Nan. The current president of the association is diligently. Aim
15
to develop Lanna spa to advance and to maintain quality forever for Thailand Lanna spa is
widely popular. Spa is another form of tourism called health tourism is the way to relax. So
Lanna spa association with the Tourism Authority of north Thailand have the project “Travel
north for health” The objective is for tourists to relax on holiday.
*Reference: http://www.tourdoi.com/travel/happiness/thaispa.htm
From vision chiang rai province that Lanna Chiang Rai, the Golden Gate to the global
trade and under administration of CEO that response policy to development spa business
causes the agency to support the spa business include Health services Chiang Rai Provincial
Health Office. In addition, the agency will establish cooperation and transfer of knowledge
between the private sector, spa business entrepreneur and massage herbs and also establish
spa club, which has started meeting D Navigation to the clustering for the development
business of healthcare which consists from spa, massage and herbal product. Spa business in
chiang rai providers were mostly available at the resort and hotel spa, hot-spring spa, day spa
destination spa that most of them operation at the hospital for physical therapy, massage and
herbal sauna. Most of spa business is located away from the city but is distributed by major
tourist.
*Reference: http://research.trf.or.th/node/3041
Spa business in Thailand is likely to grow interesting even the past spa business will
has a lot but the opportunity of open spa business are still ongoing especially nowadays
coming to the adaptation that focus on differentiated services. There are a lot of spa business
competitors in Chiang rai makes our spa will find a competitive advantage. We will focus on
the customer needs whether it's a good service access to customers and take care the needs of
the customers who come to our spa as well as innovative products in our spa such as product
that only has in our spa to make customer feel relaxed when use and care skin set include
with turmeric and tamarind etc. or even to decorate inside and outside shop for eye-catching
to attract the attention of foreigners but it also has Thai tradition. This is one of the reasons
we may have an advantage over other spa business. Learning competitors’ strategy is good
way as because we all know that what the competitors focus on.
All this makes the business grow rapidly spas are increasingly popular as a result to
number of users increases which the use of the spa available everywhere around the world
16
regardless of sex, age, level position because we love and care for their own health everyone
wants to have a healthy and mental good as well.
Product and service
Body Massage
Body Massage is popular alternative of the spa so, it helps the body good relax. Each
the spa will have different type of massage. It depends on bring to prominent of the massage
come to combined to unique of each the spa. There are two type ; Traditional Massage and
Aromatherapy Massage. Including with the massage of other race people such as Swedish
Massage etc. Body Massage is massage for relax and stimulate the circulation of blood that
the skin by using techniques to fondle follow the muscle.
17
Aroma Steam / Herbal Steam
Aroma Steam / Herbal Steam are stimulation body by using heat to the pores of body
open and ready expulsion the toxins to out with the sweat. This approach has been most
popular because it easy steps and not complicated. Can do it by yourself and not have to rely
on staff, just have the equipment that available.
Scrub
Scrub is stimulate the circulation of blood by the polished surface with vegetation
from natural such as various herbs include using the sea salt and alga to eliminate the dead
skin cells fall off, the new skin cells will replace old skin cells and still add the nutrients to
the skin. This method will help skin to have health better and smooth skin. The polished
surface, it can be use herbs to scrub or use cream to scrub. However, in some cases using the
herbs to scrub may be cause allergic or have the problem about dry skin. Which is the
different from using a cream scrub because inside cream scrub will have cream that help to
provide slip to rub or scrub.
18
Nutrition Therapy
Nutrition Therapy focus on eating natural foods. Avoid dry foods, additives foods or
chemical contamination and adaptation foods.
Exercise Breathing Therapy
Exercise Breathing Therapy is the most common treatment in the spa development
which has a variety of forms including aerobic and stretch such as tai chi, yoga, dance club,
exercise in water and chikung but must have teacher to advise you properly.
Meditation and Autogenic Training
Meditation and Autogenic Training have the objective to increase the acquaint
yourself, understanding of the behavior and other problems of their own to change behaviors
or habits that do not want to go out and improve relationships with others to be happiness of
society and the environment. Autogenic training down to the level of the subconscious mind
and to modify the behavior to relax and to enjoy the success in life. Meditation to stop
thinking and feeling to calm and peaceful , do not be distracted and it also reduces heart rate,
lower blood pressure, reduce stress and help stop the growth of cancer cells, etc.
Crystal-Rock Therapy
Crystal-Rock Therapy to relax, rehabilitation and therapy by elemental analysis of the
behavior of each individual. Then lined the acupuncture points of the body or made jewelry
to wear and then placed in the room or placed near the body. Rock is crystal-rock can retain
19
heat for a long time and infrared radiation does not heat the room glow but not irritating,
which this approach must have enough information to confirm.
Herbal Therapy
Herbal Therapy is using herbs to the fragrance like food, beverages or dietary
supplements to refreshing. Herbal therapy can reduce blood cholesterol, reduce weight,
reduce blood sugar levels, helps sleep easier, relax and can use nourish skin such as milk
bath, sauna, mask skin and etc, which has been very popular.
*Reference : http://www.yesspathailand.com/%E0%B8%AA%E0%B8%9B%E0%B8%B2-
spa/%E0%B8%A3%E0%B8%B9%E0%B8%9B%E0%B9%81%E0%B8%9A%E0%B8%9A-
%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%81%E0%B8%B2%E0%B8%A3%E0%B8%AA%E0%B8
%9B%E0%B8%B2.html
20
SWOT Analysis
Strength:
- The obvious target is university students and tourists.
- Have expertise in the management as well.
- There are planning and improvement strategic marketing continuous for meet the
social and economic conditions.
- All employees are well trained and courteous employees, Beaming, Willing to serve.
- There are many services to choose make a difference in the spa business.
- Material and special features of the product.
- Both Thai and foreigner come to service.
- Modern technology.
- Promotions and packets of store in special prices.
Weakness:
- Marketing promotion channels too few. Because the location is not in the middle of
downtown.
- Chance of a high loss because of high investment.
- The price is no different, price of service is similarly priced competitors.
- Personnel in spa business are limited. Because the personnel must have specific
expertise.
Opportunities:
- Most of our customers are foreigners.
- Demand of the spa massage for healthy to be increased more and more.
- Today, consumers increasingly turn to health care make spa business is an alternative
healthcare.
Threats:
- Spa business is more competitive.
- Changing the tastes and needs of customers.
- Unrest situation in society make the foreign tourists decreased.
22
Market Analysis
General environment analysis
It is the efficacy method. It helps to analyze external factors that affect to the business.
The results of this analysis make us able to planning marketing plan on the business for
achieve the goal and get highest profit.
In the analysis, there are four main factors that are political, economic, social
environmental and technology, so the business must has general environment analysis and the
competitors in the market to perform with efficiency of the company in the future.
Political
Mrs. Pattiraporn Kheawsanan said “Thai spa business has rate of growth in each year at
an average annual 5-6%, average revenue about 15,000 to 16,000 baht per year. Most of the
customers are foreign tourists 80%, and the remaining 20% is the tourists of Thailand and
now Spa industry planning to increase expand the market.”
Nowadays, Spa business gets supported from government agencies and the private
sector to help drive Thailand's spa has the availability of quality the international standard.
For example, to encourage entrepreneur join in various the competition that concerned spa
business. The award will help to guarantee a spa in Thailand is clearly also a way for
consumers to know more Spa especially quality standards of products and services behavior.
(Reference: http://www.thai-aec.com/463#more-463)
Economy
Thailand's economy grew only 2.2 percent in the first half of 2012, Thailand's economy
to grow 7-9% in the second half of 2012.
(Reference:http://thailand-business-news.com/th/economics/40632-thailand-gdp-growth-
could-reach-7-in-second-half-of-2012#.UMigZ-Se-Ys)
How Thailand’s economy in next year?
23
Bank of Thailand said “it will be slightly better than the estimate” the originally
expected next year will grow by around 5.6% and the last information believe that will be
growth about 5.8%.
The big company has not been affected because the company's profits improved and
income tax expense was down more than 7% to compensate for increase labor cost. The small
and medium-sized enterprises, turnover is not good and the tax does not help when expense
higher labor cost 30-40% from the past.
Thailand's economy will grow better because the production, consumption of private
investment and the export of the country will be better than this year. While the global
economy has improved as well and more stable. In the inflationary expected to rise and the
rate increased slightly.
(The base economic news paper of the 32 No. 2799 on December 9-12, 2555.)
(Reference:http://www.thanonline.com/index.php?option=com_content&view=article&id=15
8183:2012-12-07-04-11-20&catid=85:2009-02-08-11-22-45&Itemid=417)
Social and environment
Nowadays, most people in social interesting in their health inside and outside of their
body, so, spa is a popular choice for people who want to have their own business. Spa in
Thailand has been growing since the year 2002 and spa has expanded overall both in the
number of people who use services and the place that provide services. The number of spa
services in Thailand, it has approximately 320 locations and most of them are small
entrepreneurs nearly half of all the spa in the resort or hotel resort. The employment more
than 5,000 people, which is about 20 percent are carried out in Phuket area.
(http://www.dbd.go.th/mainsite/fileadmin/contents/information/brochure/11Manual_Spa.pdf)
However, trend of healthy in Thai people causes of business to expand out of hotel or resort
and rapid expansion in business area that under the concept providing a variety of services.
That is the reason can make spa business have high potential to growth in the future.
In addition, Thai people are so interesting in skincare product made from natural
because it have not many chemical in ingredients and safety for all types of skin; normal skin
, oil skin and sensitive skin. It is another line in spa business that can be export goods because
24
in others countries interesting in Thai herbs, so it is easy to expand spa business and spa
products into international market.
Technology
In the current, technology has expand rapidly and have a new trend every day, so it
useful for people and business that can increase communication ways easily. For the spa
business, have to use technology to help manage within firm. It can use to collect the
information of customer and help to service to satisfy customer directly. Moreover, when
production of spa product use high quality of machine to produce , it can make profit to firm
because the product have high standard and safety also can contact with customer both in
country and other countries readily.
Summary of the General Environmental Analysis
The study and analysis of the environment are important to the business as much as we
need to be aware of the changes that will occur over time as political, economic or various
technologies that are developed to grow continuously. Totally that will help reduce the risk of
the operation business.
Competitor Analysis
Direct competitors.
Phu Chaisai Mountain Resort & Spa
Located at 388 Moo 4, Ban Mae Salong Nai, Mae Chan,Chiang Rai 57110. Spa treatments
based on natural and organic products and ancient therapies from all over Asia based on
knowledge passed down from generation to generation. They have service are Spa Packages,
25
Bamboo Signature Treatments, Massages, Body Treatments, Facial Treatments,
Hydrotherapy, Saloon, Yoga & Meditation and Spa Basic. (Reference: http://www.phu-
chaisai.com/index.html)
Sumalee health center and spa
Located at 681 /7 Si Wiang district of Chiang Rai, Chiang Rai 57000. Service in Sumalee
health center and spa destination have Body Massages, Body Scrubs, Body package, Facial
treatment, Barber & Beauty Salon, Fitness Center have promotion with members.
(Reference: http://web.chiangrai.net/tourcr/customer/sumaleespa/index.html)
26
Anantara Resort & Spa Golden Triangle
Located at 229 Moo 1, Chiang Saen Chiang Rai 57150. Anantara Spas are designed to restore
balance and harmony between body and mind in an oasis of beauty, grace and tranquillity.
Intoxicating aromas of the world's most exotic elixirs and oils are used in treatments designed
to deliver radiance, healing and a quiet sense of inner and outer well-being. Service in
Anantara Resort & Spa Golden Triangle have Ultimate Spa Detox, Anantara Ritual package,
Taste and Touch of Thailand and YOGA. (Reference: http://goldentriangle.anantara.com/)
The River House Resort & Spa
Located at 482 M.4 , Mae Kok Rd., T. Rim Kok A. Muang Chiang Rai 57100. Indulge
yourself with our popular Thai traditional spa treatments of your choice where guests can
enjoy all of the pleasures and achieve true deep relaxation from our professional staffs. The
River House Resort & Spa have a service Imperial Massage which are Thai Traditional
massage, Oil massage, Swedish massage, Deep Tissue massage and Herbal Compress
massage and the Imperial Body Scrub programs also available for you to try such as Coffee
Body Scrub, Milky Rice Herbal Body Scrub and Tamarind Scrub. (Reference:
http://www.imperialriverhouse.com/spa-en.html)
27
The Legend Chiang Rai Boutique River Resort & Spa
Located at 124/15 Moo 21 Kohloy Road, Amphur Muang, Chiang Rai 57000. Based on fresh
Thai herbs and Thai aroma essential oils that have been used for centuries, our treatments are
a holistic approach. The outdoor environment brings you close to nature, yet in total comfort
to give you an unforgettable experience. Enjoy our massage treatments either outside on a
massage sala with river view or in one of our private air-conditioned treatment rooms.
(Reference: http://www.thelegend-chiangrai.com/)
Golden Pine Resort and Spa
Located at 291 Moo 4 Baan Muang Kham Tambol Nang Lae, Chiang Rai 57100. Discover
the ultimate in relaxation and tranquility. The Hom Nuan Spa’s philosophy is to offer a
sanctuary for you to relax, unwind, recharge and rejuvenate. We offer a wide range of
rejuvenating, relaxing spa treatments using a blend of selected quality products. Our fully
qualified masseuse will restore the health and well being of the mind and the body. You will
28
feel totally revitalized. Come to Hom Nuan Spa for a special treatment today and give your
mind and body the luxury it deserves. (Reference: http://www.goldenpinebeach.com/)
General competitors
PK Hot spa resort: Located at 21 Moo 6, Tambol Doi Hang, Amphur Muang,
Chiang Rai 57000.
Teak Garden Spa Resort: Located at 155 Moo 19, International Airport Rd.,
Bandu District, Muang, Chiang Rai 57100.
Due to 1-2 years ago, most of the spas usually open in the hotel and resort at
tourist attractions. That makes some consumers cannot access to the service. In
addition, the service fees of the spas which located in the resort or hotel are very high.
That are obstacles of these services to target their marketing to the high level consumer
only. So, if a spa services is a stand-alone and a moderate service fees. It would be a
great choice for health-conscious consumers, and demand for services.
Customer analysis
Our company mostly focuses on the foreigner tourism in any type of region. We want
more customer from many country get to know more a about Thai spa and massage. So, that
the target is all foreigner. Some customer from some country might already know about Thai
massage and some don’t know yet. Anyway the most customers in western country may
interest in spa more than other the customer will more concern about their health. And also
the price from our company low price than the price in their country for spa industry and also
good service provider, friendly between the jobs. Most of customer will satisfy and come
back again so, this target group will easier to catch up.
The rang and percentage of popular spa in chaingrai
The most popular spa in chaingrai is Thamma Da Day Spa by Chivit Thamma Da it possess
the first rang of spa . which the percentage of customer is 30% of the target customer And
then Tevari Spa possess the second range which percentage of customer 25% is and finally is
Wang Jao Clinic and Spa these the most popular spa in changrai which percentage of
29
customer 15 %. The left over is the other small spa like in walking stress or other spa. So We
want 20 % of customer or more than that if possible.
Analysis the behavior of customer.
The surveys have show up that from the 140 people about the factor that why choosing spa
are.
- 34 % of the customer choose spa because the place, good position and the design of
the spa.
- 28 % the several of service for each spa.
- 20 % the reputation and the person who provide the service of spa.
- 18 % focus on selling price and the promotion of spa.
Summarize
For the information most of people like to go spa because of the position, place and the
design of the spa is the main factor the customer focus and make decision to go to spa.
However the vary of service also importance for the customer decision. So we have to focus
strategy on the absolute advantage on the good place easy to travel and safe. Moreover, We
will plan strategy for the service and product.
Each of the major factors that influence the decision of customer to choose the spa.
Factors in the location and design of the store.
- Consumers value the convenience of traveling the first 108 people.
- Consumers pay more attention to the environment of all the second location 104 people.
- Consumers pay more attention to all facilities is 80 people.
- Customer focus on the idea of design is 72 people.
From the data above can summarize that the customer very focus about the place which
convenience in travelling moreover the environment and safety of the place is the importance
factor that we have to focus on.
30
Factors of standardization and the staff.
- Customers focus on the expert skill of staff or specialize of spa industry about 124
people.
- Customer focuses on the service and the advice of the staff about 108 people.
- Customer focuses on the dressing form and the good character of employee about 72
people.
- Customer focuses on the reputation, famous of spa about 44 people.
From the above information can summarize that skill . advice of employee is the most
importance factor because who come to spa want to relax both of mental and physical
health. Because most of customer don’t know about the benefit of spa service or type
of massage. In fact of good uniform and about the reputation of staff is less
importance but still can create the reputation of the spa.
Factor providing the service.
- Customer focus on the safety and reliable of the service about 116 people.
- Customers prefer the new technology of the equipment about 92 people.
- Customer focus on the vary and style of providing the service about 80 people.
From above information show that most of the customer focus on their safety about the
service cause the main service of spa is massage so that for each massage is about the line
muscle in body so on the employee must provide the information to the customer and
ensure the equipment clean and safe.
Factors of price and promotion.
- Customer focus on the promotion of the service about 96people.
- Consumers pay more attention to health education about 80 people.
- Consumers pay more attention to the activities with can join with credit card or tours
and hotels about 36 people.
From information above the customer have the opportunity encourage using the spa from
the promotion. The knowledge about health and hygiene. Consumer services, it is
31
important to provide consumers with knowledge and understanding. Encourage active
and start more health conscious. Although less important than price discounts. The tour
company or hotel, the credit card issuer is not interesting or relevant to the consumer
consider.
*Reference: Licensed by the Department of Industrial Promotion School of Management
Mahidol University.
The general information of tourist in chaing Rai
From the survey of 400 touristic. Most of respondents are women take about 74.2% the most
age is about 31-35 , 24.3% . In Bachelor degree about 57.6 % . Private employees and owner
of business which have similar proportion 33.0 % and 32.2 % Income less than 10000 bath
per month is 41.3 % second is 10001-20000 bath per month 31.9 % And live in north of
Thailand about 85.4 % second is Bangkok 10.6 % People who live other canton of changrai
or nearby chaingrai province use to take the vacation time in chaingrai and like to spend on
the spa about 500 -1500 bath per 1 time 40.5 %
Information number %
Gender
Male
Female
- Total
103
297
400
25.8
74.2
100
32
Information
Age
Less than 15 year
15-20year
21-25year
26-30year
31-35year
36-40year
41-45year
46-50year
50 above
- Total
Level of education
Less than Bachelor degree
Bachelor degree
Master’s degree above
- Total
Occupation
Government employees
Private employee
Business owner
number
1
24
74
54
97
55
50
25
19
399
124
223
40
387
45
121
%
0.3
6.0
18.5
13.5
24.3
13.8
12.5
6.3
4.8
100.0
32
57.6
10.3
100.0
12.3
33.0
33
House hood
University employee
State employees
Student
Pension person
Actor, actress
- Total
118
62
3
3
13
1
1
367
32.2
16.9
0.8
0.8
3.5
0.3
0.3
100.0
Continuous
Information
Income
Less than 10000
10,001-20,000
20,001-30,000
30,001-40,000
40,001-50,000
50,001-60,000
More than 60,000
- Total
Household
Upper North
South north
South
Middle except bangkook
Bangkok
number
162
125
46
26
18
8
7
392
339
4
3
7
%
41.3
31.9
11.7
6.6
4.6
2.0
1.8
100.0
85.4
1.0
0.8
1.8
34
East
Northeast
-Total
42
1
1
397
10.6
0.3
0.3
100.0
The behavior of spending for spa.
Bath
Less than 500 bath
500-1500 bath
1501-2500 bath
2501-3500 bath
3501-4500 bath
4501 more than
- Total
Number
50
90
40
22
11
9
222
%
22.5
40.5
18.0
9.9
5.0
4.1
100.0
Reference : Researcher from Aj. Supannika kwanmeang ,lecture of Business admistration
Mae fah lung university. And Aj.benjawan mokamon Liberal arts Mae fah lung university.
Summarizes
From the information above most of the behaviors of customer spending for the spa in 500-
1500 bath but we focus on less than 500 because our business target on suitable price not too
expensive and not too cheap but even the this behavior it’s according to their demand of
35
service if they want more service from our spa the price will increase too. We focus on
student from the bachelor degree which have 57.6% . We will set the price that suit for this
target.
The expectation of the customer for the services.
1) The first massages the customer very high expect about the essential oils about 3.69.
Second is Thai massage 3.61 and the third massage for cure injury from sport and stone
therapy 3.60 By the way the satisfaction is in the same level of expectation. But Chinese,
Japan, Bali and western massage style not get the satisfaction of customer in normal level
that show up that Thai massage is very popular so we want to adjust our spa to be and
want to let the customer get very high expectation from our spa by Thai tradition
massage. Because most of customers are expect of very high of satisfactions for spa. We
sure that our spa can perform to good quality and service for the customer.
The Statistic of tourism in 2009-2012
The summarize of statistic traveler that travel in Chiang Rai
http://www.chiangrai.net/dashboard19/
36
http://www.chiangrai.net/dashboard19/
http://www.chiangrai.net/dashboard19/
http://www.chiangrai.net/dashboard19/
37
http://www.chiangrai.net/dashboard19/?PID=VG91cmlzdC9Ub3VyaXN0MS5hc2N4
http://www.klangcri.com/team/team3/data/ManagementChart/Report_MC/2555/Management_
Search รายงานประมาณการเศรษฐกจจงหวดเชยงราย ป 2555ส านกงานคลงจงหวดเชยงราย ศาลากลางจงหวด ต.รมกก อ.เมอง จ.
เชยงราย 57100
38
Competitive Analysis
Our company is Precious & Royal Spa has Thai- modern style that has a service such
as body scrub and massage. In Chiang Rai have many spa in many place such as hotel or
travel place so, spa industry is highly competitive because Chiang Rai have famous about
natural travel place and we have many people of tourist. When thinking about a spa, we will
think about nature. So, Chiang Rai is suitable for this business.
The Different of the competitor.
Direct competitors Strength Weakness
Phu Chaisai Mountain
Resort & Spa
-They have more service in
their spa.
-They have a unique massage
such as Bamboo Signature
Treatments.
- Beautiful place.
- The service is very
expensive.
- Spa not has promotion for
customers.
Sumalee health center and
spa
- They have promotion for
members.
- Their spa has variety of
services such as fitness
center.
- They have the products
imported from France so,
their spa has more expensive
in service.
- Expensive.
39
Anantara Resort & Spa
Golden Triangle
-Decorate a beautiful place
and their spa has a relaxed
atmosphere.
- Their spa has a luxury of
product and interesting in
service such as d Wine
Therapy.
-Sell the products in their
spa.
- Expensive and not have
special promotions for
customers.
The River House Resort &
Spa
- Use of natural products to
reduce imports from abroad.
- Beautiful place.
- They provide the details of
each product in service that
are not clear for customers.
The Legend Chiang Rai
Boutique River Resort & Spa
- Use of natural products.
- The perfect atmosphere for
relaxation.
- Not have variety of services
because their spa has
massaged only one.
- They provide the details of
each product in service that
are not clear for customers.
Golden Pine Resort and Spa
-Their spa has a luxury of
product and services.
-Beautiful place.
- They provide the details of
each product in service that
are not clear for customers.
- Not have variety of
services.
In a highly competitive society have built stress in work or business, and Increased to
health problems so, the behavior of consumer in health care has changed. Especially the
demand of relaxation in various forms so, entrepreneurs must have strategy better than
competitors. Precious & Royal Spa has seen the importance of business and services by focus
on group of customer is the heart of services. From the competitor, we are different from
them because all service we use the natural resource to reduce imports from foreign
countries, low price, and we have the detail of each product inform to the customer that can
useful for them when they want to take service. Our spa has a combination of modern design
and natural to consumers have confidence in the place and relax when they come to our spa.
40
STP Analysis
Segmentation
Demographic Segmentation
- Gender : Male / Female
- Age : 18-40 year
- Revenue : more than 5,000
- Education : Bachelor
- Race :Thai , foreigner
Psychographics Segmentation
- Social Class
- Life Style
- Behavior
Target Market
We concern about the Group of people working, student and foreigners because the
location of spa business Location near Chiangrai Rajabhat University and not far from
downtown it is also close to the community and the workplace. Makes main target are local
people, working people and foreigners who come to Chiang Rai. Our spa is indicative of the
culture of the Chiang Rai able to attract tourists a visitor Chiang Rai and many people who
come to Chiang Rai want to see the culture of the Chiang Rai exists and our spa need to show
something different from the general spa to impress the customers who use our service spa.
41
Position
Precious & Royal Spa focuses on customer satisfaction for target customers who are
using the service because of spa is the business that need to focus on providing services
directly to clients. Thus, our spa must bring the needs of customer used as a guide for respond
the needs of customer, make highest customer satisfaction and competitively in the market.
Precious & Royal Spa focuses on service because our personnel has mind to service,
they through training well that they can provide service and treatment information to spa
customers and advice spa product and sale promotion to the customers and significant the
customer will need to get special attention and special care when using the service. These
things were in our personnel mind for make the consumer feel relaxed and creates a good feel
for our spa as well.
42
Marketing Mix Strategy
The market mix strategy also knows as “4Ps”, it has four important elements to analysis as
follow;
Product strategies
The first, product or service strategies, we have two mainly service in spa as follows;
Body Massage
(http://th.mygroupon.co.th/vouchers/bangkok/travel/holiday/spa-weekend)
-Hot Stone Massage: is spa by use hot stone in massage. It helps
stimulate of blood into the body, increase efficiency of detoxification, decrease
muscle aches, skin healthy to smooth, decrease the wrinkle, sports and scar.
-Deep Tissue Massage: is herbal that have composition of oil
combination pack such as Turmeric, Bergamot, Camphor and etc.
-Aromatherapy Massage herbal foot: is the massage by use essential oils
and use stick to the foot point.
-Thai massage: use finger, fist, elbow, knee and foot for Thai massage.
-Hot Stone Massage: is spa by use hot stone in massage. It helps stimulate of
blood into the body, increase efficiency of detoxification, decrease muscle aches, skin
healthy to smooth, decrease the wrinkle, sports and scar.
-Deep Tissue Massage: is herbal that have composition of oil combination pack
such as Turmeric, Bergamot, Camphor and etc.
-Aromatherapy Massage herbal foot: is the massage by use essential oils and
43
Body and face Scrub
(http://saimaispa.wordpress.com/%E0%B8%A3%E0%B8%B9%E0%B9%89%E0%B8%88%E0%B8%B
1%E0%B8%81-%E0%B8%AA%E0%B8%9B%E0%B8%B2/)
-Ginger body scrub: is body scrub by use ginger. It helps to deep
cleaning of pores because ginger has a hot property. Then it helps to eliminate
the dead cells and grease the outer surface of the implant for radiant skin.
-Brown & Coffee herbal body and face scrub: the extra attribute of
coffee is to help stimulate of blood and sugar make soft skin, detox , remove
dead skin cell and radiant skin.
-Herbal Salt body and face scrub: Are body scrubs that have mixture
of herbal and sea salt help to remove dead skin cell and radiant skin.
-Fruit body and face scrub: vitamin C in fruit that help radiant skin
and remove grime on skin.
44
Price strategies
Type of services Price (Baht)
1.Aromatherapy Massage Herbal foot 450 baht per 1 hour 30 minute
2.Thai Massage 399 baht per 1 hour 30 minute
3.Ginger body scrub 350 baht per 1 hour
4.Brown & coffee herbal body scrub 350 baht per 1 hour
5.Fruit body scrub 350 baht per 1 hour
6.Herbal milk face mask 150 baht per 30 minute
7.Fruit face scrub and mask 180 baht per 45 minute
8.Gold face mask 200 baht per 50 minute
Product
Type of products Price (Baht)
1.Herbal body scrub 200 baht per 100 ml
2.Ginger Body scrub 200 baht per 100 ml
3.Brown & Coffee body scrub 250 baht per 100 ml
4.Fruits body scrub 200 baht per 100 ml
5.Fruits face mask 199 baht per 50 ml
45
Package
Type of Package Price (Baht)
1.Thai massage + Herbal milk face mask 650 baht per 2 hour
2.Ginger body scrub + fruit scrub & mask 499 baht per 1 hour 45 minute
3.Brown & Coffee herbal body scrub +Gold
face mask
500 baht per 1 hour 30 minute
4.Aromatherapy massage herbal foot + fruit
face scrub & mask
599 baht per 1 hour 30 minute
Place Strategies, we will location at Ban Do in Chiang Rai because our company to
emphasize the services for traveler, student, teacher and person that want to relax. The our
company set to near Namthong Hotel Resort, and pathway to between Mae Fah Luang
University and Chiang Rai Rajabhat University. Then makes we have different of customer
and easy to travel use to our service.
46
Promotion strategies, we will send brochures to university, school and tourism Company.
We will give brochures to customer that shopping at Central Plaza Chiang Rai, Big C super
center, Mae Fah Luang University and Chiangrai Rajabhat University. In our brochures
contain about detail of service in spa, promotion, telephone number or E-mail and map of our
company.
56
Marketing Expenses (thousand Baht)
Year 1
Description 1 2 3 4 5 6 7 8 9 10 11 12 Total
Commission 1404.05 1535.65 1710.7 3046.98 1839.75 1677.65 1920.75 1721 1742.8 1671.95 1857.15 3865.14 23993.57
Radio Adv 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 18000
Brochure 500 0 0 0 0 0 500 0 0 0 0 0 1000
Total 3404.05 3035.65 3210.7 4546.98 3339.75 3177.65 3920.75 3221 3242.8 3171.95 3357.15 5365.14 42993.57
Year 2
Description 1 2 3 4 5 6 7 8 9 10 11 12 Total
Commission 1525.45 1759.15 1486.35 3022.2 1831.85 1672.7 1466.7 1621.75 1453.65 1379.8 1523.05 3704.4 22447.05
Radio Adv 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 18000
Brochure 500 0 0 0 0 0 500 0 0 0 0 0 1000
Total 3525.45 3259.15 2986.35 4522.2 3331.85 3172.7 3466.7 3121.75 2953.65 2879.8 3023.05 5204.4 41447.05
Year 3
Description 1 2 3 4 5 6 7 8 9 10 11 12 Total
Commission 1438.6 1497.4 1370.7 2358.5 1487.75 1357.25 1381.4 1574.95 1824.15 1385.7 1246.5 3443.4 20366.3
Radio. Adv 1600 1600 1600 1600 1600 1600 1600 1600 1600 1600 1600 1600 19200
Brochure 300 0 0 0 0 0 300 0 0 0 0 0 600
Total 3338.6 3097.4 2970.7 3958.5 3087.75 2957.25 3281.4 3174.95 3424.15 2985.7 2846.5 5043.4 40166.3
57
Year 4
Description 1 2 3 4 5 6 7 8 9 10 11 12 Total
Commission 1451.6 1615.1 1888.55 3404.82 1780.45 1650.75 1659.45 1546.55 1528.2 1535.45 1448.45 3495.6 23004.97
Radio. Adv 1600 1600 1600 1600 1600 1600 1600 1600 1600 1600 1600 1600 19200
Brochure 300 0 0 0 0 0 300 0 0 0 0 0 600
Total 3351.6 3215.1 3488.55 5004.82 3380.45 3250.75 3559.45 3146.55 3128.2 3135.45 3048.45 5095.6 42804.97
Year 5
Description 1 2 3 4 5 6 7 8 9 10 11 12 Total
Commissio
n
1465.2
5
1597.8
5
1677.7
5
3092.8
2
1630.3
5
1620.9
5
1459.
2
1586.7
5
1650.3
5
1497.
1
1615.7
5
3628.6
8
22522.
8
Radio. Adv 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 18000
Brochure 300 0 0 0 0 0 300 0 0 0 0 0 600
Total 3265.25 3097.85 3177.75 4592.82 3130.35 3120.95 3259.2 3086.75 3150.35 2997.1 3115.75 5128.68 41122.8
58
Marketing feasibility Summary
In the general environment analysis that it analyze in four part; political, economic,
social and environment and technology, of external factor also we analyze about the
competitor that we use to compare with our spa to improve the service of our firm including
we analyze the competitive of spa business in Chiang Rai that we concern about their
strength and weakness in the current useful for improving the service. Moreover, we analyze
the customer that we choose the Foreigner tourist, Thailand tourist that is our target market
and we have the reference to show about rate of tourist come to travel in Thailand, Chiang
Rai.
In marketing mix strategy (4P),we contain the detail are our service in spa that have
three types mainly ; body massage, body scrub and sell product. Our price we have set the
price that have lower than competitor. We choose the place at Ban Do because it is near
Namthong Hotel Resort both and both university including Mae Fah Luang University and
Rajahbhat University. Our target is emphasize study and travel because it near both university
and our company have promotion that want to customer come back to use service again and
again. The customer can come easily also we use brochure for promotion.
60
Production and Operations Analysis
Product Characteristics (in detail)
At Precious & Royal spa has 2 floors for make spa. First floor has 2 zones for provide
service to customer, first zone; for advice and provide information of spa service program
that appropriate to customer. This zone we have information counter, sofa, and cabinet show
our product. Next, zone; for body massage that we bisect it for do spa 2-3 person in the same
time. We have toilet for men and women, in the middle room we have sofa that we provide to
customer when they wait for our service, they can talk with other customer to share
information of service that they will get from our spa. This zone we make for customer to get
comfortable.
Second floor, we have 2 big rooms and 2 small rooms for our customer. First room,
body and face scrub room which we have 2 beds but we bisect them for make it to be private
for our customer who come to take our service alone and we have sub program according to
the customer requirement such as Ginger body scrub, Fruit body and face scrub, Herbal Salt
body and face scrub and Brown & Coffee herbal body and face scrub. Then, our service is
complimentary mineral water and milk to service our customer that they will receive
comfortable and relaxes from our service.
Next room, body massages also have 3 beds for massages include with Hot Stone
Massage is spa by use hot stone in massage, Deep Tissue Massage is herbal that have
composition of oil combination pack such as Turmeric, Bergamot, Camphor and etc.,
Aromatherapy Massage herbal foot is the massage by use essential oils and use stick to the
foot point and Thai massage use finger, fist, elbow, knee and foot for Thai massage. We want
to serve the best service to our customer that they will receive comfortable and relax from our
service so, we have build-in toilet for this room.
Last room, baht room has 2 rooms that we have locker for customer to take their cloth
after they take our service. In the baht room we have body lotion, body jell, body soap,
shampoo, and condition of our spa.
For service
- we mix between west and Thai style in Precious & royal spa that we design
to appropriate for type of spa and it will have different feel when you take our
61
service.
- We have provided the special gift set and gift voucher in the season such as
New Year Festival, Valentine, and etc.
- We will have meeting for our customer that they are our member and we will
product special gift that we never produce for use in spa service but we
product only one time.
- We have trained our employee to be expert in spa service to provide the best
service to customer.
- We have employee to provide our information and spa service program that
our customer can choose the program that appropriate with them.
- We will open music and serve beverage when our customers waiting for take
our service.
Service process
What is massage?
“Massage is a general term for pressing, rubbing and manipulating your skin,
muscles, tendons and ligaments. Massage therapists typically use their hands and fingers for
massage but may also use their forearms, elbows and even feet. Massage may range from
light stroking to deep pressure techniques”
http://www.mayoclinic.com/health/massage/SA00082
Thus, massage is the important thing in spa because it can help customer to relax.
The customers come in spa because they want to relax from work, traffic and other problem,
the benefit of massage is increase your body self awareness and sensitive and make you feel
good, it is a pleasurable experience. Massage reduces your stress, tension and anxiety levels.
Massage is the most important for mood and mind condition. We will find the ways to relax
the customer have most happy.
62
-Hot Stone Massage: is spa by use hot stone in massage. It helps stimulate of blood into the
body, increase efficiency of detoxification, decrease muscle aches, skin healthy to smooth,
decrease the wrinkle, sports and scar.
Hot Stone Massage that we bring hot from volcanoes stone or lava rock that is rich
in natural minerals. The stone cutting through a convex curve then combined with a massage
and mild flavor essential oils. We put the stone through the center of life then the heat from
the hot stones will gradually penetrate through the body. These helps pain relieve - pain and
muscle tension for performance of the cardiovascular system, help balance the body, reduce
the accumulation of cellulite, makes the skin smooth and clear skin for good health.
According to
http://www.dailynews.co.th/article/15176/18356
-Deep Tissue Massage: is herbal that have composition of oil combination pack such as
Turmeric, Bergamot, Camphor and etc.
“This massage technique uses slower, more forceful strokes to target the deeper layers of
muscle and connective tissue, commonly to help with muscle damage from injuries.”
http://www.mayoclinic.com/health/massage/SA00082
deep issue massage that we are practice of pressing, kneading and massaging specific areas of
the body to relieve pain and relax and stimulate the body's tissues by work on tendons
,ligaments and the muscle.
According to http://www.photalaithaimassage.com/thai/thaiservicetext.html
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-Aromatherapy Massage herbal foot: Aromatherapy massage
An aromatherapy massage is a form of
massage therapy that combines the benefits of
aromatherapy with those of massage to promote
wellbeing and healing. This form of massage therapy
utilizes the aromatherapy essential oils as massaging
agents. The added medicinal powers of these oils
greatly enhance the efficacy of the massage. It must
be borne in mind that essential oils should never be applied directly to the skin for massage
purposes. This is because pure essential oils are extremely concentrated and may lead to
burns and rashes. Instead, the essential oil should be mixed with base oils, also known as
carrier oils.
Aromatherapy Massage Techniques, A full body massage is not necessary in order to
benefit from the essential oils. Blended essential oils may also be rubbed locally onto a
specific area to alleviate muscular aches and pains, stiffness in the neck or congestion. You
can also perform the massage on your own. Just ensure that you utilize gentle strokes leading
towards the heart. This improves blood circulation.
Benefits of aromatherapy massage.
Physiological Benefits – Aromatherapy massage can:
enhance lymphatic drainage – this helps to reduce fluid retention and prevent oedema
induce a feeling of deep relaxation in the body
help to restore balance in the body
stimulate the body’s natural immune system
increase the oxygen and nutrient supply to the tissues by increasing the blood
circulation
help to increase energy levels as blockages and congestion in the nerves are eased
Psychological Benefits – Aromatherapy massage can:
promote a general state of well-being
calm and soothe the mind
help to reduce nervous tension
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help to lift the mood and reduce feelings of depression
(Reference : http://www.healing4wellness.com/new/shop/aromatherapy/,
http://www.healing4wellness.com/new/shop/aromatherapy/)
-Thai massage
Traditional Ancient Thai massage is a unique form of Bodywork that incorporates Hatha
Yoga, acupressure and reflexology. The Thai Method, thai Massage blends styles
from Asian neighbors passed down through the generations. Unlike the scooping
and continuous strokes of Western massage, the Thai method uses point pressure,
muscle stretching and compression, done in a rhythmic movement of gentle
rocking. In Thai massage it is not just the hands that are used to free tension from
the recipient's body, but the therapists feet, forearms, knees, and elbows as well.
Be assured northern style Thai massage is never painful. Thai massage is applied
on a mat on the floor, the work is done fully clothed and no oils are required.
Thai medical massage can move deeper into the mechanical functions of the body,
working with deep muscle tension and joint mobility as well as nerve, muscle and
ligament balancing.
There are six key points of Thai massage
1.Yoga
2.Exercise
3.Meditation
4.Reflexology
5.Acupressure
6.Healing Art
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Benefits of Traditional Thai Massage
- Facilitates relaxation
- Heightens awareness
- Frees blockages in energy flow
- Invigorates the nervous system
- Relieves pain and muscle tension
- Increases ability to absorb nutrition
( Reference : http://www.spiritwinds.net/what_is_thai_massage.html)
Body Scrub
Body scrub will scrub by use salt that mixture of various herbs. The benefits of scrub
help to clean up the body and Blood flow that affect to radiant skin. Usually the body of
human shed the skin cells every 2-4 weeks, but to slow down the shed skin cells when you
have 20 years old, then it cause wrinkles and dull skin, so the scrub helps the skin cells shed
faster.
-Dry skin: The scrub will help remove dead skin and cream absorbed into the
skin surface.
- Combination skin: Help reduce acne and smooth skin tone.
- Oily skin: Help clean up pores, reducing blockages and removing hyper
pigmentation that cause by acne
- Wrinkles skin: Help to stimulate the Shed the skin cells’ natural function
better. Help solve the problem of wrinkles and dark circles, it made brighter and more
youthful skin.
- Orange peel skin: The scrub every day helps stimulate blood circulation in
the vicinity of crack skin, removing wrinkles and brighter skin.
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The structure of spa design.
Frist floor.
This is the overall view of the spa model that we design. We want the customer to feel
comfortable and relax in our atmosphere with Thai and modern style to be mix but still
keeping Thai traditional which is Thai spa.
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The spa precious living room.
The living is on the first floor. When the customer enters first step. Inside they can sit
or relax while they wait for our service this room we focus on luxury views that customer
will perceive. And then our receptionist will serve the Thai traditional or sparkling water
beverage and snack.
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The office.
This is the office for management that controls the all system and structure of
organization this is very important department. We support the employees by design and
provide good furniture and facilities for the employee for encourage them to work well.
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Second floor
Second floor will be spa rooms that customer get the service from us we have many
worker for massaging or spa for the customer.
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Machine / Tools / Equipment
Fist Floor
Telephone
Television Sofa
Computer
Counter
Refrigerator
Air conditioner
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Toilet room (First Floor)
In Toilet room in the store, within has four Toilet bowls, five Toilet tissue boxs, four Toilet
hoses, one Mirror Price, one long basin and 5 doors.
Rinse spray hose Toilet bowl
Mirror Door Knob
Toilet tissue box
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Toilet (Second Floor)
We have four room that in each room have bathtub and toilet bowl , the customer can change
clothes before get the service.
Bin Rinse spray hose
Toilet bowl Basin
Toilet bowl
Toilet bowl
Doormat
Slipper
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Office Room(First Floors)
In this room, we use for manage all function such as marketing, financing and operating that
are one computer , one air conditioner , multifunction laser printer, telephone ,FAX , one
table, three chairs , plug, bin and shelves.
Towel
Doormat Slipper
Table Chair
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Second Floors is the floor of service that are body massage, body scrub, the herbal compress
ball and the sauna room.
Bin
Plug
All stationaries
Sofa
Locker
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Products use in spa
Products for body massage
Balancing Aroma Massage OilRelaxing Aroma MassageOil
Hot Stone Massage
Hot stone
Herbal oil
Herbal Oil - Thai Herbs
(Reference : http://www.stockngo.com/africa-s-best-ultimate-herbal-oil-with-ginseng-bonus-12-oz.html)
(Reference : http://natchiro.com/massage/hot-stone-massage/)
(Reference : http://www.byspa.com/Products/showdetail.asp?pro_id=13)
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Products for body scrub
Herbal body scrub
200 baht per 100 ml
Ginger Body scrub
200 baht per 100 ml
Brown & Coffee body scrub
250 baht per 100 ml
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(Reference:http://www.facebook.com/media/set/?set=a.161981040597671.32635.13999473
2796302&type=3)
Fruits body scrub 200
baht per 100 ml
Fruits face mask 199
baht per 50 ml
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Logistic management
In our spa we use logistic manage the performance in organization and support customer’s
need. The organization: it helps to transport, storage, collection, distribution and give goods or
product efficient to support customer’s need.
Physical management distribution
Order
Payment
Production
Shipping the goods
Delivery postal Delivery by bus
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Facility Management
For our spa will provide the way to support the customer’s need to give them get most
benefit from our service. We must concern on security for our customer and our equipment because
we must to protect our customer and our equipment must have good quality available for use in
everyday.
Our spa will provide the staffing that has experience about way to do spa and have knowledge
about the use of product spa. Then, we will training program to them by using HRM management
that help them able to provide the information of each type of spa which tell about way to do in each
spa, benefit of each spa, and our promotion of each spa to our customer.
So, we manage our spa for serve the service to customer to get customer satisfaction when
they come to use our service.
In service, we will provide body massage and body and face scrub. We have provided the
information and method in each service before the customer get also we have the adviser to give
suggestion to customer with service appropriate for the personal.
Management
For building, we have the insurance to save and we have the engineering to control all
process from design and maintain also we have the CCTV (Close-circuit television) to
prevent lose.
The CCTV
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For the information, we have two channels to contact with customer that are by E-
mail and telephone. Moreover, if a customer wants to register to be our members, they can
register by themselves at our spa (free fees) and all of information of customer will keep into
the system in computer.
Figure of security system of the information
Source of the information
Telephone
Contact by E-mail
Register to be
member
Keep in computer
Fill password
Use the
information
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Invest Cost
- Office room
No. Descript Price/unit No. of unit Total Price
1 Computer Lenove All in oneC225 20,600 3 61,800
2 Printer HP Photosmart C4680 3,990 2 7,980
3 Fax Sharp UX-P850 3,590 1 3,590
4 Air conditioner higer HUS-
18CEK03-T(E)
14,500 2 29,000
5 Desk 3,690 1 3,690
6 Cabinet 500 3 500
7 Chair 1790 4 7160
8 Sofa 10,900 1 10,900
9 Window 3,000 4 12,000
10 phone panasonicKX-TG 3600BxB 999 4 3,996
11 Door (1 pair) 13,000 1 13,000
12 Electronic Iron Philips GC1903 750 2 1,500
Total 155,116
- Living Room (First Floor)
No. Descript Price/Unit No. of unit Total Price
1 Air conditioner higer HUS-
18CEK03-T(E)
14,500 2 29,000
2 Sofa 10,900 5 54,500
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3 Reception desk 17,900 1 17,900
4 Shelves of television 1,500 1 1,500
5 Television LCD 40 17,840 1 17,840
6 Door 5,000 1 5,000
7 Window 3,000 6 18,000
8 Refrigerator Sharp SJ-N155-SL 5,390 1 5,390
9 Water heater Sharp WH-33 2,490 1 2,490
Total 151,620
- Toilet Room ( First Floor )
No. Descript Price/unit No. of unit Total price
1 Basin 5,990 3 17,970
2 Mirror 1,590 3 4,770
3 Door 4,500 3 13,500
4 Toilet horse 17,500 3 52,500
5 The exhaust fan 1,155 1 1,155
6 Toilet tissue 1,350 5 4,050
Total 93,945
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- Toilet Room ( Second floor )
No. Descript Price/unit No. of unit Total price
1 Toilet Towel 599 2 1,198
2 Toilet horse 17,500 2 35,000
3 Hanging Towel 1,300 4 5,200
4 Door 4,500 2 9,000
5 Bathtub Cristina CT-LE185090WP 66,500 2 133,000
6 Basin 5,990 2 11,980
7 Heater shower 4,200 4 16,800
8 The exhaust fan 1,150 1 1,150
9 Tissue box 350 4 1,400
Total 214,728
- Body scrub
No. Descript Price/unit No. of unit Total price
1 Bed massage 7,500 2 17,000
2 Shelves 629 2 1258
3 Door 5,000 1 5,000
4 Window 3,000 2 6,000
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5 Air conditioner 14,500 1 14,500
Total 43,758
- Body massage room
No. Descript Price/unit No. of unit Total price
1 Door 5,000 1 5,000
2 Window 3,000 2 6,000
3 Shelves 6,290 2 12,580
4 Couch massage 7,500 3 22,500
Total 46,080
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Technical Summary
In term of technical facility, we analyze about the production and operation of spa that
contain of the detail of each service room also we have the service process that are the detail
of each massage in spa; body massage, face and body scrub including the products for using
in service.
In addition , we have the facility layout and the location of spa that we have the image
in each part ; inside, outside and both of first floor and second floor to show the overall of spa
including we have the detail of equipment that use in each room.
In the logistic we show about the way to shipping goods around the country and in
management we have the security for building and all the information in firm such the detail
of investment cost to prevent data leakage to a competitor.
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Raw material
Operating the spa business, spa service must have equipment and raw material in
the massage. The raw material that Precious & Royal Spa used the most in provide the
service, Precious & Royal Spa order the raw material from Catalogspa because it have low
cost but high quality and reasonable price. Catalogspa have equipment and raw material that
complete. There are several types of raw material in the massage or used in the spa business.
For another reason that Precious & Royal Spa order the raw material from Catalogspa,
because Catalogspa is sell cheaper elsewhere and products have standard. (
http://www.catalogspa.com/ )
Most of the suppler from
Limited partnership deejay organic 113 / 36-37 road Ladya Rd.
- Klongsan. Bangkok Thailand
- http://www.djaiorganic.co.th/
Chamchan Health & Beauty Institute :
- Address : 544 Petchburi Rd., Rajthavee, Bangkok 10400 Thailand
- Tel. : +66 (0) 2208 9977 Ext. 501, 502
- http://www.chamchan.co.th/
Hermine spa
- 220/275 Moo 5 North Pan Cowichan Valley Road, Bang Muang, Samutprakarn
10270 Thailand.
- Tel: 02-2581176 Fax: 02-3951699 Mobile: 081-3045006.
http://www.herminespa.com / www.herminetea.in.th
LiveonOrganic.com. (See Shop).
- Address: 87/12 Moo 1, Klong Thai Kum Kum District, Bangkok 10240.
- Tel. : 081-3768289.
- Email: [email protected].
- http://liveonorganic.com./
Chanta thai spa
- 97/7 Moo 5, Tambon Huai Kapi district, Chonburi, Chonburi 20000 Tel. 081-
7619606,085-2863606.
- http://www.chantra-
thaispa.com/contact_us?crmid=fa44189cd11a832862fee4d70d682dc7
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The customer that use spa in Chiang Rai which the Thai traveler have less satisfaction than
foreign tourists. The foreign tourists have high satisfaction to spa service. This includes no less than 8
percentages as the foreign customer have more purchasing power than Thai customer but measures to
volume of purchasing the Thai customer have high volume of purchasing. Therefore, we need to focus
on the company's cheaper packages. Precious & Royal Spa opening Monday – Friday about 9.00AM -
18.00PM, and Saturday-Sunday about 9.00AM – 20.00PM. The service have 2 type including
massage and spa. Our company can service to customer about 20-30 person per day and 3 person per
type.
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Year 5
Operating Summary
For the operating cost is the cost of Precious & Royal Spa that we invest in the spa for do the business such as raw material, water
expense, and electricity expense. We have to purchase all of this in first year because our Precious & Royal spa has only commercial buildings
so, we pay highest cost.
In addition, in term of revenue we get revenue since one year but not good because Precious & Royal spas just open which it is not
famous and then we will get revenue increasing in every year due to the customer have satisfy in product and service, and the customer have
mouth to mouth word to other people. Our company we get highest revenue in five years according to it has more famous and have customer use
service much more.
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Employee salary
Manager 1 person 15,000.-
Marketing manager 1 person 15,000.-
Marketing team 2 person (10,000/person) 20,000.-
Accounting department 1 person 8,500.-
massage team 8 person (8,500/person) 68,000.-
Receptionist 4 person (8,500/person) 34,000.-
Housekeeper 1 person 4,500.-
Total salary expense/mouth 165,000.-
** Not include sale commission**
The quality of the Therapist
Every therapist has been practicing and training on various forms of massage to
service with efficient. Another, they will be know the purpose of client to use service of spa.
All of this, Precious & Royal Spa wants their each therapist has knowledge, expertise and can
advice for the customer with adding value and build confidence to them.
Overall Qualifications of Employees
- Male or Female, age 23 years up
- Education depends on the position.
- Excellent customers’ service & service minded.
- Provide professional service with morality of therapist code of conduct.
- Team work oriented with high solution solving skill.
- Good command in English and computer literate.
- Presentable, willing to learn, dedicated, flexible and could work under pressure.
- Good leadership, interpersonal & coordination and problem-solving skills with
teamwork oriented.
- Organize and cleanliness of the spa’s area, facilities and equipment.
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Ratio Analysis
2012 2013 2014 2015 2016
Current ratio 1.29x 3.26x 10.57x 0x 0x
Quick ratio 1.29x 3.26x 10.57x 0x 0x
2012 2013 2014 2015 2016
Inventory 0x 0x 0x 0x 0x
Turnover
2012 2013 2014 2015 2016
FA TO 0.46x 0.47x 0.47x 0.58x 0.61x
TA TO 0.10x 0.06x 0.04x 0.04x 0.03x
2012 2013 2014 2015 2016
Debt ratio 61% 27% 9% 0% 0%
2012 2013 2014 2015 2016
Profit margin 75% 81% 80% 82% 81%
2012 2013 2014 2015 2016
ROA 7% 5% 3% 3% 2%
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Risk Management
Risk management is a logical process or approach that seeks to eliminate or at least
minimize the level of risk associated with a business operation. Essentially, the process
identifies any type of situation that could result in damage to any resource within the possession
of the company, including personnel, then take steps to correct factors that are highly likely to
result in that damage.
At the core of effective risk management strategies is the desire to find ways to manage
the degree of uncertainty that exists within any business enterprise. The first step in the process
has to do with evaluating the utilization of resources as they current stand. This step involves
understanding the logical flow of the production process and how it relates to the successful
manufacturing of goods and services for sale to consumers.
Once the business model is understood, it is possible to identify specific risks that are
present throughout operation of the organization; Risk management in our spa consists of
internal risk and external risk.
( Reference: http://www.wisegeek.com/what-is-risk-management.htm)
External Risk
External risk of our spa is the risks that occur in outside spa and we can’t control it, so
we would like to protect the problem that can occur in the future by find risks that can occur
and provide the method to handle with those problem. The external risk of our spa as follow:
Competition Risk
It is an important factor that can be affecting for our spa due to Chiang Rai was the
popular Province that have tourist from local country and other country come to travel in
Chiang Rai all year. Therefore, many investor come to invest about spa business, it's cause
more competitor in spa industry of Chiang Rai. So, it is the part of important external risk
that should not be overlooked.
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Our spa to find many strategies that can handle with other competitors such as SWOT
analysis, Marketing analysis, Competitor analysis, 4P and STP analysis. This is the strategy
that important to handle with the risk from competition.
Location Risk
In our spa has location that adjacent to the university and a passageway to the city and
Mae Sai, which is a tourist attraction. Our spa is situated see clearly, not complex and it is a
place where convenience in parking. Therefore, it’s convenient for customer and tourist that
come to our spa. Moreover, our spa is new company consumer in local not well know, so we
make billboard and brochure in the important place such as travelling agencies, university or
school and the government official that related about tourism for promote our spa to
consumer is know our spa.
Economic Risk
From the problem of flooding in 2011, According to an update on 21 October 2011 by
the Tourism Authority of Thailand, while the flooding is having some impact on tourism,
most key tourist destinations and attractions throughout Thailand have not been affected by
the floods and almost all remain open, including Bangkok. Things have changed during the
weekend, unfortunately for the capital.
It was affect for every business because of investors not confident in situation of
economic and slow down to investment in Thailand also it decreases consumption of
customers in country. From risk that arising in the spa economic factor increases affects the
cost of production and Thai tourists use the services , so we will keep the standard of service
equal the price that people have to get the best service and we will set the package of service
that the price will safe than general price in each service.
( Reference: http://www.argophilia.com/news/thailand-flooding-tourism/24040/)
136
Political Risk
In the current the political in Thailand is not stable and frequency in changing that
Over recent years there have been instances of civil and political unrest resulting in large-
scale demonstrations and, in some cases, violence. For just over four years Thailand has
endured an intensely adverse domestic political climate. For most of those four years there
has been political turmoil between various factions; most notably between the political parties
backed up by citizens who are poor and come from rural settings and other parties
representing the more wealthy and burgeoning middle class from urban areas. Finally in May
2010, Thailand's domestic political climate became so out of control, the current prime
minister ordered a severe crackdown on the opposition that resulted in a relative calm.
(Reference:http://ecoggins.hubpages.com/hub/Thailand-Political-and-Economic-Outlook-
2011-and-Beyond)
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Internal Risk
Internal risk factors are risk factors that occur in companies or projects that can be
controlled by humans. Risk – the risk of this kind usually arise because of financial problems,
organization, employee, workplace, product changes and other problems within the
companies or projects that do not support the achievement of the expected. As a result, there
was delay in project completion time, increased costs or disruption / interruption in cash flow.
(Management file) – Risk management process consists of several steps where the initial step
is to identify potential risks occur that can jeopardize the achievement of company strategic
objectives. Internal risk of our spa is the risk that occurs in our spa, it can be effect for our spa
in the future. Internal risk of our spa as follow;
Risk from Employee
In spa business, employee must have expertise for service to customer. If employees
don't have the expertise or often make mistake may have risk in the image of our spa and
customer may be has bad attitude to our spa.
Risk from Fraud
The risk of a malpractice action and make the business caused damage in the form of
monetary and non-monetary such as company's Reputation and image. May have monitor
system the operations of employees from external organization such as monitoring system of
the internal and monitoring system from the external examiner.
Risk Management Summary
In the risk management, our spa has the two main of risk that are internal and external
force. Two major factors in the external force of our business is effected by the economic and
the political; The first of all, effected by the economic in recent years due to we get the
impact of flooding situation in Bangkok which it is unable to distribute the whole thing to the
other parts of the country in Thailand especially in the tourism sector. It is the cause of
reducing the amount of tourists that come to Thailand because problem in traffic on road so,
we have to change in the price that adjust it follow the situation of economic.
Second, in terms of political will have an impact of the uncertainty of the political
situation in Thailand such as revolt in civil, it make the foreigners have less confidence in
138
Thailand , so we should be encouraged to advertise of spa in other channel more than
brochure. Therefore, we have to thoughtful in planning of all strategies in marketing analysis
to compete with other competitor.
In internal risk, is the risk that happened in the firm and in any department of
employees. The risk from employees can be the problem because if the employee cannot to
serve the service that not follows the customer, they will not get reliable from customer its
can effects to the spa lose the income. Moreover, the risk in Fraud is important because it the
event cannot forecast and may have monitor system the operations of employees from
external organization.
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Year4
Year5
Summary Risk
When the company has sale increase the company has increase in net income, increase in
profit, and increase in retain earning. But sale decrease is has effect to decrease in net income profit
and retain earning.
When the company has increase dividend. The profit has decrease, but sometime price stock
will increase. However, if the company has decrease dividend the company will be increase profit,
but price of stock will decrease.
When the company has increase in expense. The company is the low net income, low net
profit, and low retain earning, but when the company can decrease expense the company will have
high net income, high net profit, and high retain earning.
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Conclusion of Precious & Royal Spa
Precious & Royal Spa is the name of our company, Precious & Royal Spa, from
study the market of spa business. Spa is becoming famous in nowadays because most people
interest in spa. The reason why we choose spa business in Chiang Rai because in Chiang Rai
have many Touristic place and that will be very attraction to the foreigner and Thai people
and Chiang Rai is the place that you can rest and relax so, spa business is the business that
very interesting and it can make profit in business.
Vision: We want to be lead of spa in Chiang Rai by focuses on provide the best
service for the customer will need to get special attention and special care when using the
service and always provide to customer get the most benefit from our spa. Mission statement
is provides the best service and serve the best quality.
In situation of spa business, we have the detail of the current situation of spa
business in Thailand that show about Thailand can ensuring the reputation of the spa on one
rank in Asia for time and including the development of the industry in terms of equipment
and products for the spa business that growth and expanded to export continuous to other
countries. Spa business in Thailand has strength that in Thailand has the unique in culture and
Thai herb that can made raw material. In weakness Thai people not have the good English
skill for communication with the foreign tourist. Spa business in Thailand still lack of
personnel (Therapist) and personnel with expertise in the management including equipment
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and related services and hiring people to be employees is limited because the personnel must
have specific expertise.
In strategies , we analyze about the competitor that we use to compare with our spa
to improve the service of our firm including we analyze the competitive of spa business in
Chiang Rai, we use SWOT analysis to analyze the strength and weakness useful for
improving the service, we analyze the market share in the industry. We can use all strategies
to improve the differentiation of service to contrast from other competitors and get that can
along with the functional level strategy that are marketing mix strategy (4P), human resource
management, financial and employee (staff).
In general, we analyze about the external is called PEST analyze which concern about
political, economic, social, technology. And also we compare our spa with another spa to
improve more efficiency our service and quality the product and also we have analyze the
competitor spa in chaing rai and we focus on the our strength, weakness to adapt for our firm.
However only that it’s not enough so we have do survey about the customer behavior about
the spa industry in chaing rai. But our company focuses on 3 mains groups working person,
student and foreigners we have shoe the reference of general tourism that show the rate of
these target groups.
In marketing’s mix strategy (4p) There are four element price, place, promotion,
product. For the product strategy we separate in two mainly service which the customer can
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choose whether body massage or body and face scrubs to let the customer choose what they
like to do. And for the price we set as normal and lower than the competitor because we want
our customer get the best quality with the lower price. Package we put two services together
and reduce the price that means the customer will pay cheaper than separate service. Our
company location at Ban Do in Chiang Rai because our company to emphasize the services
for traveler, student, teacher and person that want to relax. The our company set to near
Namthong Hotel Resort, and pathway to between Mae Fah Luang University and Chiang Rai
Rajabhat University. Then makes we have different of customer and easy to travel use to our
service. Finally promotion strategies, we will send brochures to university, school and
tourism Company. We will give brochures to customer that shopping at Central Plaza Chiang
Rai, Big C super center, Mae Fah Luang University and Chiangrai Rajabhat University. In
our brochures contain about detail of service in spa, promotion, telephone number or E-mail
and map of our company.
In term of technical facility, we analyze about the production and operation of spa that
contain of the detail of each service room also we have the service process that are the detail
of each massage in spa; body massage, body scrub and the Thai body and face compress ball
including the products for using in service.
In addition , we have the facility layout and the location of spa that we have the image in each
part ; outside ,inside and both of first floor and second floor to show the overall of spa
including we have the detail of equipment that use in each room.
In our spa we use logistic manage the performance in organization and support
customer’s need. The organization: it helps to transport, storage, collection, distribution and
give goods or product efficient to support customer’s need.
In Facility Management for our spa will provide the way to support the customer’s need
to give them get most benefit from our service. We must concern on security for our
customer and our equipment because we must to protect our customer and our equipment
must have good quality available for use in everyday.
In term of operating cost is the cost of Precious & Royal Spa that we invest in
the spa for do the business such as raw material, water expense, and electricity expense. We
177
have to purchase all of this in first year because our Precious & Royal spa has only
commercial buildings so, we pay highest cost.
In addition, in term of revenue we get revenue since one year but not good
because Precious & Royal spas just open which it is not famous and then we will get revenue
increasing in every year due to the customer have satisfy in product and service, and the
customer have mouth to mouth word to other people. Our company we get highest revenue in
five years according to it has more famous and have customer use service much more.
For the structure of organization we have one general manager, Marketing
manager, Accounting department to manage the structure of our management of the firm and
Marketing team 2 person, massage team 8 person, Receptionist 4 person, Housekeeper1
person to perform the regular and operating the job.
In administration cost of Precious & Royal Spa, The Precious & Royal Spa have the
electricity expense, water expense and insurance expense. The Precious & Royal Spa also
have expense about training the employees to increase capabilities of employees to provide
the service that constantly and high effective. The Precious & Royal Spa have the rate for
each expense for calculating in the financing part.
178
The income statements of The Precious & Royal Spa demonstrate the profit return
in the first year and also increase in every year. In part of the income statement will
demonstrate to customers that use the services of Precious & Royal Spa. The Precious &
Royal Spa will have more customers that increase every year. The Precious & Royal Spa
emphasize with provide the good services from our employees. It a result the Precious &
Royal Spa earn more profit from the first year and it also increase in the next year until year
five. The Precious & Royal Spa will be growing steadily in the future.
The balance sheets of The Precious & Royal Spa demonstrate to the asset in the
operation, include the liability, and equity in Precious & Royal Spa which related between
income statement and cash flow to demonstrate that Precious & Royal Spa have equal in
assets and liability. The assets is equal the liabilities plus the equity, it represent to The
Precious & Royal Spa have assets that enough to pay back to liabilities and equity in
operating the spa business.
The cash flow of The Precious & Royal Spa demonstrate about cash inflow and
outflow of Precious & Royal Spa and demonstrate to cash that Precious & Royal Spa must
to receive at the end and demonstrate to cash that Precious & Royal Spa receive in the
beginning of the year in each year of financial statement of spa business.
For the risk management of The Precious & Royal Spa, Precious & Royal Spa has
the risk from internal factor and external factor.
The internal factor of Precious & Royal Spa may be many thing such as
provide the service of our employees and sufficient personnel management.
Anyway, The Precious & Royal Spa also has the training course for old
employees and new employees to respond the spa service provide the
customer that sufficient demand of the customer. Another way, Precious &
179
Royal Spa always have solve the problem that is steps and have the
systematically in the spa business.
The external factor of Precious & Royal Spa is affected from economic that in
the many years of Precious & Royal Spa get the effect by the deflation and
inflation situation in Chiang Rai. And Precious & Royal Spa also get the
effected from the volatility of wages that be increased more than in the past,
but Precious & Royal Spa still have the method to solve the problem by
remain the performance of the employees and have the selection that high
efficiency in provide the service to customer. The Precious & Royal Spa ready
to grow and be profitable with the best service to customer.
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