spa ceylon dttehm 7 -group 06

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The entire global herbal market size is 62 billion dollars and Asian countries own 19%; countries like Japan and China have considerable proportion from it. Apart from

those countries, India has risen up to compete with their own Ayurvedic products because now trend is using more

herbal products rather than chemicals.

Introduction• A pioneer luxury traditional Ayurveda brand in Sri Lanka

• Mother company been Janet Cosmetics; it was originated in 2009 by Mr. Shiwantha Dias and Mr. Shalin Balasuriya

• First Spa opened in March 2010 focusing on wellness and beauty treatments

• Spa Ceylon outlets are currently available at 14 high end urban locations

• They provide amenities inflight to Sri Lankan Airlines and to leading hotels in Sri Lanka (Cinnamon Hotels, Paradise Road Hotels, Avani Resorts, Uga Resorts, CASA Colombo, Park Street Hotels)

• Spa Ceylon has a very unique packaging theme of Green and Black.( Green representing Nature & Black representing Earth)

• Their packaging materials use Sinhala Scripts; and branding incorporates motifs and designs from ancient Ceylon. All Spa Ceylon products are made in Sri Lanka in a way to establish the Sri Lankan identity

• The brand is already expanded internationally to 07 countries with 16 outlets including Russia / Turkey / UAE / India / South Africa / Japan / Maldives

Janet Cosmetics

Spa Ceylon

Beauty wellness Products Spa Services

B 2 C B 2 B

Tea Therapy

Luv Essence

Peace Collection / Save the Elephant

B 2 B B 2 C

Spa Ceylon Spas

Urban White Resorts

SEGMENT TARGETING POSITIONING

DIFFERENTIATION Spa Ceylon brand is not just a fundamental cosmetics and personal care brand. Its products and the treatment combine with deep-rooted royal relaxation, rejuvenation and healing rituals of Ayurveda practiced by our ancestor thousand years ago. Therefore, Spa Ceylon brand has the unique legacy which other brands don’t.

DemographicsRich ageing baby-boomers

in the West and a growing middle class in developing countries,

especially ones in Asia.

High spending customers who are concerned about external and internal well being with time at hand to enjoy being pampered

Psychographics

Geographic BehaviouristicMainly urban dwellers as

well as European and Asians tourists from booming economies, visiting exotic resorts.

Regular clientele with brand loyalty; both B 2 B

and B 2 C who seek luxury pampering and high

expectations irrespective of a price tag

Promotional Strategies

• Personal Selling– Personal Meetings– Telemarketing– Emails

• Flyers / Brochures.• Direct mails about product announcements, special

promotions, bulletins, customer inquiries, and order confirmations.

• Sales Promotions• Public Relations

Vision and MissionTo offer customers a lifestyle of indulgence and total natural wellness with highest quality

Ayurveda services through its design, innovation, professional retail staff and worldwide distributors.

To have 25 spas running by 2016: one every three months

Catering to an upscale market who are aware

and seek for health wellness

and external appearances

The premier luxury lifestyle

brand in Ayurvedic Spa and

products

To provide an authentic Ceylonese Wellness and beauty therapy indulging

in luxury

Spa Ceylon USP

• Branding• CSR• Eco friendly• Support from parent company• Strong up market• Aggressive bold marketing

Spa Ceylon products revenue is relatively low than from Spa Boutiques. Continuous improvement of product line

Spa Ceylon products and services are still on the growth stage. Hence question marks not applicable yet.

Spa Ceylon cash cows are its boutiques. With a 500% brand revenue growth they continue to invest supported by extensive R&D

Dogs are not currently applicable to Spa Ceylon

Spa Ceylon can be identified to be in its growth stage for the following reasons:

Introduced the product 5 years ago in 2009Spa Boutiques were introduced a year laterExpanding customer base and brand loyaltyOn-going penetration to the international marketExpanding product line

2009 - 2014

POLITICAL ENVIRONMENTAL SOCIAL TECHNOLOGICAL

VULNERABILITIES

C

OSTRAIN

TS

STRENGTHSProduct flow

Customer loyaltyModern production

Niche

WEAKNESSESToo narrow a

customer baseLack of trained staffHigh cost marketing

and branding

THREATSEmerging

competitorsAdverse social and cultural influences

OPPORTUNITIESGlobal presence

Alliances and franchisingIntegration

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This is mainly a result of major players in the market fighting for their share in the target segment.

As this industry is being identified as a growing market the threat of new entrant to the market is high; especially other existing players such as Vendol, Natures Secrets etc.

As a growing market segment the consumers are being targeted by all active players in the market. Hence in order to have a fair share of its consumers all players should satisfy their customers even beyond expectations. Thus Spa Ceylon should work towards maintaining their current customer base while attracting new customers. Therefore the bargaining power of customers is high.

Spa Ceylon being a product of Sri Lanka, a country rich with herbs we are able to say that the bargaining power of suppliers is low. This mainly being a reason as, if one supplier bargains it can always be substituted with another.

This can be a result of Sidhdhalepa a renowned Sri Lankan brand with a rich history being a direct competitor of Spa Ceylon. Also as there is no switch cost for consumers

A unique product range offered to a niche market.

Can be consumed only either through their own boutiques or high-end selected retail.

Located strategically for the target segment.As hotel amenities for high-end five star hotels.Offered as corporate gifts to two airlines, hotels,

ministries, event planners, weddings, and custom made designers.

Provides spa operator services to hotels. 

Product• Spa Ceylon signature products (Spa Ceylon, Ceylon Tea Therapy, Save the

Majestic Ceylon Elephant, White, Peace• Spa Ceylon signature products (Spa Ceylon, Ceylon Tea Therapy, Save the

Majestic Ceylon Elephant, White, Peace

Price • Premium pricing strategy• Premium pricing strategy

• Their own boutiques• High end Retails• Their own boutiques• High end Retails

People

Place

• Spa Ceylon provides direct employment to 250 plus employees• Indirect employment as suppliers of alovera and other indigenous ingredients• Spa Ceylon provides direct employment to 250 plus employees• Indirect employment as suppliers of alovera and other indigenous ingredients

Process• Spa Ceylon has employees who are professionally trained for the job. Interior

is designed with a great atmosphere for customers to feel the maximum comfort in accordance with the theme

• Spa Ceylon has employees who are professionally trained for the job. Interior is designed with a great atmosphere for customers to feel the maximum comfort in accordance with the theme

Physical Evidence

• Ayurvedic elements which gives eye to detail starting from the beds, chairs, tea cups and trays, the carving around the spa, tiles being used etc.

• Ayurvedic elements which gives eye to detail starting from the beds, chairs, tea cups and trays, the carving around the spa, tiles being used etc.

• Advertizing in preferred magazines Hi, Echelon,l LMD, Explore Sri Lanka.•Rewards are offered to the crew members of Sri Lankan Air Line & Air India • Platinum Members – Enjoy Rewards points, Priority Spa bookings, Special offers etc. In addition to above they also transfer rewards to fly smiles programme.

• Advertizing in preferred magazines Hi, Echelon,l LMD, Explore Sri Lanka.•Rewards are offered to the crew members of Sri Lankan Air Line & Air India • Platinum Members – Enjoy Rewards points, Priority Spa bookings, Special offers etc. In addition to above they also transfer rewards to fly smiles programme.

Promotion

To attract top executives supported by company budgets

To work with top 10 blue chip companies as a starter

Offered during off peak tourist season coinciding with bonus/ end of financial year

Reward the employees as rewards whilst building a strong customer base

Luxury pampering for rejuvenation and well being

SWOT Analysis

• SWOT analysisAnalysis that helps planners compare internal organizational strengths and weaknesses with external opportunities and threats

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WHO STRENGTHS WEAKNESSES OPPORTUNITIES THREATS STRATEGIES

Us

Competitor

Competitor

Corporate Businesses: This selected market is supported by company budgets and are willing to give incentives to their top executives.

It should be a seasonal entry because then the share of customers may be high.

Considering the target market , initial pitch on 10 blue chip companies but much focused way, and gradually grab the market share because going for segmented market will berisky and hard due to less profit heads.

Personalised and selectedd