Beruflich Dokumente
Kultur Dokumente
Group Assessment
Class 2
Fatima Alhayki
201000366
Ghadeer Ahmed
201000352
Mashael Kaiksow
201000187
Amal AlSaeed
201000283
Class 2
Table of Contents
1. Executive Summary.................................................................................................................... 2
2. Service Choice ............................................................................................................................ 3
3. Service Positioning ..................................................................................................................... 3
4. Developing Service Product ....................................................................................................... 5
5. Distribustion Strategy ................................................................................................................ 7
6. Pricing Strategy .......................................................................................................................... 8
7. Designing The Service Process ................................................................................................. 11
8. Service Environment ................................................................................................................ 12
9. Managing People ..................................................................................................................... 14
10. Customer Loyalty ..................................................................................................................... 15
11. Service Recovery ...................................................................................................................... 18
12. References ............................................................................................................................... 20
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1. Executive Summary
This report discusses the details of developing a new service in Bahrain. It has been decided to select
foot treatment service by using a fish called (Gurra Rufa). This service is chosen to satisfy the
customer needs and fill the market gap. The competitive advantage of velvet feet spa is to provide
special feet treatment, pedicure and manicure by using fish, which is different than other spas. The
strategy of this service is to target females between 15 to 40 years old to take care about their feet.
The positioning map will depend on the service attributes which are affordable, provide high quality
services and being unique in providing the service with professional standards. The core product of
the service is to keep the customers relax and feel comfortable after consuming the service. Our
business aims to brand their spa by the business logo, which is the best way to communicate the
brand message to the clients. The distribution strategy of our spa is the customer will visit the place,
which is located in Seef area from 10 am to 10 pm. The pricing strategy will be depending on the
value, competitors and financial costs. The blue print is designed to show the process of backstage,
front stage and the interaction between internal and external customers and identify the fail points.
Everything in the spa will be designed to keep the customers feel relax and comfortable. Human
resource manager will be responsible to recruit the right employees. The spa will build strong
relationships with the customers to keep them loyal through providing them with high quality of
services, special offers, ask the customers for their feedbacks and keep in touch with the clients by
using social media. Our spa will guarantee the clients that our staff members are qualified and the
equipment is clean.
2. Service Choice
Fish spa has been decided between the group members to take place as service provider in the
market. The idea stands behind this project is to provide the customers with many types of services
through the fishes, which include, pedicure and manicure, foot massage and it is considered as a
treatment for some of the skin diseases. The basic idea of this business is to use toothless small fish
called (Gurra Rufa) which feed on the dead skin in the human body. The movement of these fishes
around the human body make the customer feel comfortable and relaxes the body temperature also
it makes the feet soft and beautiful. After performing this service special lotions will take place in
order to eliminate the remains of the dirt.
The reason of choosing this service is to be differentiated and create competitive advantage for the
business in the market, as it is new idea to be established in the Bahraini Market. In fact there are
some spas existing in the market, but the difference is that our spa provides skin treatments for the
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clients, which cut the cost of visiting skin doctors. The research showed that there is a high demand
on this service and only one provider, which creates a gap in the market. In addition, many people
travel to East Asian countries to get this premium service and many of them suggest having similar
service in Bahrain. This was found upon survey that has been disturbed randomly to find out the
customers opinions in this service. Furthermore, providing this service in the market will have
positive impact on the economy of Bahrain as beauty industry witness a growth in the last few years
as it is shown in study by Arabian Business in 2009. Also this study mentioned that the profit of this
industry is very high especially in 2010, which reached BD 2.9 billion. As a consequence, establishing
this service will help the economy of Bahrain in many ways such as reducing the percentage of
unemployment issue. To illustrate, any business will need staff in order to provide the services to the
customers, which will lead to employ people in the business. After allocating all of these facts and
statistics, it has found that there is a gap in the market and high demands from the customers, which
lead to establishing this business to satisfy the clients.
3. Service Positioning
Competitive advantage
Nowadays there is a huge amount of salons in the market and many of them provide spa services.
However, these salons provide basic services while velvet feet spa has special treatments for skin
repairs by special fish. Also the spa has experts of skin problems that will offer consultations and
treatment by applying special creams on the skin. The business provides evidence in the
advertisements to prove that this spa is healthy and highly recommended from doctors around the
world.
Service attributes
Before purchasing any service, the consumers consider many things before making a decision either
to go ahead and by the service or not. These factors are related to the location of the service, the
level of cleanliness organization and quality of the service itself that include the tools that had been
used. Another matter to the customer about the service is the speed of the service, which covers the
waiting time and the actual time of the service. The cost is very important to the clients and it
determines the decision of the customer in many cases where the customers transfer to another
similar business because of the high prices. As a consequence, it has been decided to make the
prices suitable for the customers that match their lifestyle and income. This process will benefit the
customers that will be satisfied and the company will gain their loyalty which lead to high profit in a
short time. Moreover the spa decided to import high quality lotions from intentional companies to
make the customer feel comfortable with the final outcomes. Moreover, the staffs represent the
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front line of the business and have high interactions with the customers. As a result, they should
impact the company in a positive way by having good attitude and manners to attract more
customers.
Positioning Strategy
Positioning statement
Velvet feet spa is specialized in providing luxuries treatments to repair the skin using specific kind of
fish that nibbles the dead skin, which make the skin soft. The service will be provided to our
customers with reasonable prices to make them feel pleased and gain their loyalty.
Market analysis
According to the market analysis, there is only one spa in Bahrain that provides pedicure using fish
and other salons provide normal pedicure. However, there is lack of competitors in the market that
provide efficient skin treatment by skin experts. The first step is to establish small business to
observe the outcomes if it's successful and profitable then there are plans to expand in the future. It
has been decided to establish it in Seef district, as it is an important area in Bahrain and because of
the lack of competitors in this area, which lead to attract customers easily.
Competitive analysis
There are a great percentage of competitors that provide manicure and pedicure in Bahrain, but the
problem is that there is only one competitor that provides the service using Dr Fish. The positioning
map below shows the different kind of competitors in the market. These competitors are positioned
according to the quality of the service, price, and luxury and if they are experts or generalized in
providing the spa services. Each of these competitors has strengths and weakness. For example, the
strong point of Mubrad nail spa is that they are providing the service with high quality but their
weakness is their high prices. Another competitor is Le Garden which offers high quality services
with high prices, but the weakness of this spa that its located inside a hotel that could be the reason
of not gaining because people do not tend to go to a hotel in busy area to get foot treatment.
However, this business has its own customers who visit the hotel itself, and the situation of Nail spa
is the same. However, our spa is providing high quality service with suitable prices differentiate us
from the competitors.
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spa will receive any reservations for treatments appointments and the customers will be reminded
by a call a day before the appointment.
The other supplementary service type is enhancing which increase the value of the service. Firstly,
hospitality that is an important element in a good customer service process that reflects the
business image. Therefore, the employees are required to have the appropriate manners to politely
greet and communicate with the customers. Furthermore, the business will provide a visually
attractive, comfortable and clean waiting area. The weather temperature of the spa will be cool in
the summer and warm in the winter. Also, few clean toilets and washrooms will be available for the
customers. Moreover, the business will install some surveillance cameras to maintain a secure
environment in the spa.
Regarding safekeeping, the spa will arrange for sufficient spaces for the parking lots for the
customer's vehicles. In addition, the facilities and equipment of the spa will frequently experience
maintenance to avoid any inconvenience.
For Exceptions services the spa will handle special communications through suggestions cards that
will be given for each customer after the service delivery. In order to identify the weakness of the
spa and improve it to meet the customers expectations. Medical care will be provided immediately
in case any of the customers experienced injuries in the spa.
Branding
The business aims to brand their spa by the logo of the business itself, which is the best way to
communicate the brand message to the customers and to let them figure what to expect from our
brand. The brand message is to relax the customers and to make their feet soft and beautiful. Our
logo reflects the business image and defines what the business about. The logo mostly consists of
the blue colour that reflects the relaxation and it match's the spa's theme. Also, it contains a fish
image to show the customers that our spa provides fish related treatments. The name of the
business (Velvet feet Spa) informs the customers that we offer feet treatment that makes the feet
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velvety which refers to soft and silky. The main reason for creating such logo is to deliver the right
message for the customers, which are the kind of services that the spa offers. The benefits that the
customers will gain from our services are peaceful, relaxed mind, healthy, beautiful and soft feet. As
its mentioned that the theme colour is blue the staff in the spa will wear blue uniform with the
brand logo tailored on it.
5. Distribution Strategy
The distribution strategy of Velvet Feet Spa will be the customer visits the service site that is located
in Seef area. The main reason for choosing this strategy is because the business has a physical
location that can deliver the service more properly than delivering it in another site. Also, the
customer has to personally present during the service delivery and we want the customer to
recognize the site location to visit it frequently. Furthermore, the service will only be delivered in the
spa because its built with the proper atmosphere that the customer needs to relax. The service
transactions could be conducted remotely strategy can't be used because the spa's services changes
the customers physical appearance that requires their physical attendance in the spa. However, this
strategy may be affective in the order taking process of the spa. To illustrate, the spa accepts the
reservations via telephone therefore the customer could call the spa and take an appointment for
the required services.
Place
In order to select the suitable service facility location it requires the business to take under
consideration the cost and labour access. As it is mentioned before that most of our target
customers are working women. Therefore we decided to locate the spa in Seef area, which is a
multipurpose area that many people work and live in. This is a commercially active area, which
contains many different companies that these women could work in, and a wide labour access. The
reason for this decision; is to attract these hard working women that seeks for peace and beauty and
who are willing to pay for treatments. Velvet feet spa is considered as a store therefore we will
purchase or rent the premise from another provider that may be quite costly. However, due to the
suitable location that will attract our targeted customers, in the long run the turnover of the spa
would be high and would cover the expenses of the premise.
Time
Velvet Feet Spa will open every day from 10 am to 10 pm constantly, as for the breaks every
employee will have a different break hour to keep the spa function continuously. As we all know that
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the rush hour starts at 7am and sometimes it lasts until 9 am and the reason behind choosing this
timing is to avoid the traffic. Also because at 10 am the roads are clear and not crowded which
makes it easy to reach the spa. Most of our targeted customers work until 3 or 4 and they need time
to manage the tasks in their houses. Therefore, we will open until 10 pm to give the customers the
chance to visit us at the most suitable time for them. Furthermore, we will continuously open to
satisfy our customers and attract them because many other spas close for 3 or 4 hours at noon.
Role of intermediaries
As a medium enterprise it has been decided to use some roles of intermediaries such as the
purchasing of the cosmetics, fishes and tools from different suppliers. By contracting with the
suppliers we may get reasonable prices also offers and discounts if we purchased in a large
quantities. Another use of the intermediaries is for the spa's equipment and facilities that will need
maintenance frequently to keep them convenient to assure the customer's satisfaction. However
the staff of the spa is all women and they can't perform this kind of work, which requires specialized,
team. Therefore we will contract with a maintenance team to do a regular repair for the spa. The
business will not outsource any further services from the intermediaries to minimize the expenses.
An example for that is, the business will use the internal customer (staff) to perform any cleaning
activities that the spa's facilities will require. They will also clean the tools that will be used in
delivering the service and wash the towels. This strategy will contribute in cutting down the
expenses of using another team or company to fulfil these minor tasks. Therefore, the role of
intermediaries will not be required in these cases.
6. Pricing Strategy
The pricing strategy of the spa will be set based on the value, financial expenses and competition.
The financial expenses include the equipment of the spa, electricity, importing of dr. fish and their
necessities (food, fish tubs and filters). As it's mentioned before that the main competitor will be Le
Garden, which delivers the same services. The other competitors are mainly beauty salons such as
Mubrad Nails spa and Nail spa. Finally, the value that the customers will gain is to have unique
treatments, special massages, beauty and relaxation. In addition, the prices will be affordable
compares to the competitors prices and the services will be different.
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List of the competitors prices
Competitor
Service
Price
Working hours
Different Beauty
Pedicure
3 BHD
Starts From 10 am 8 pm
Manicure
4 BHD
Body Massage
5 10 BHD
Nail polish
1 BHD
Pedicure
8 BHD
From 9 am 8 pm
Manicure
10 BHD
10 - 18 BHD
Nail polish
3 - 4 BHD
saloons
Price
Pedicure
Package
Price
Working hours
11 BHD
From 10 am
5 BHD
Dr. Fish
8 BHD
10 pm
12 BHD
(Total working
18 BHD
treatment&
massage
Nails polish
3 BHD
In compression between the tables above in terms of working hours, prices and services it is clear
that our prices are a bit higher than the other beauty salons. However, it is less than our main
competitors (Lei Garden Spa) therefore our Spa's prices are reasonable. As for the services, the
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competitors are providing quite the same but our spa delivers the services differently. To illustrate,
the other salons offers normal manicure, massage and pedicure. However Lei garden spa offers dr.
fish therapy, which is the same as our therapy except that our spa offers a whole package of
manicure, pedicure, fish treatment for only 18 BHD and a free nail polish with it. Regarding the
working hours, the salons works only 10 hours, Lei Garden spa works 11 hours and our spa works 12
hours. Thats mean that our spa will work more hours than the competitors and will satisfy more
customers.
Velvet Feet Spa Monthly Expenses
Variable cost
Amount cost
Fixed cost
Amount cost
Total cost
Fish food
30 BHD
Electricity
100 BHD
130 BHD
100 BHD
Wages
1500 BHD
1600 BHD
Maintenance
50 BHD
50 BHD
1780 BHD
Variable cost
Amount cost
Total cost
600 BHD
600 BHD
500 BHD
1100 BHD
The table shows the variable costs and fixed costs of the spa and the result of adding them is the
monthly cost, which is 1780. In order to cover the expenses and to earn profit, the spa has to
generate revenue of 65 BHD every month. In the other table is the expense of importing the fish and
their tubes. The reason for not adding them to the monthly expenses is because the fishes have a
lifetime of 6 to 7 years and the spa has to import them every 5 years and to change their tubes every
6 months.
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F: Failing Point
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Poka Yoka
Failure reasons
Strategies to reduce
print)
Responding
(PokaYoka)
to
prices
and
also
put
it
near
the
timing is available.
the
customers
may
cause
the something
emergency
or
customer
will
be
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8. Service Environment
Service environment and the behaviour of the workers are very important and valuable to the
customers. We want our clients to experience the service while we do it for them, and this would
help us to shape our company. Our mission is to make our clients feel comfortable in a relaxing
atmosphere while we are doing the best treatment for them.
Successful Spas provide a wonderful waiting area environment where everything is convenient to
the customers. First of all is our reception and the waiting area. Velvet Feet Spa will design this area
with elegant and classy furnishing. It is very important to concentrate on this area because it will
benefit us as a company. So, it will reflect the image of the Spa and from that point we can gain a lot
of customers and make a good relationship with them. We are going to paint this area with a cool
blue because there is something in this colour that helps our customers to reduce their tension and
calm their minds. Also, it will slow down their body's metabolism and from this point; a customer
loyalty will be built. For the scent in the waiting area, we are going to put classic candles with
different aromas such as Lavender, Sandalwood, Vanilla, and Lilac on particular corners to create a
positive ambience to our customers.
The packages and the prices of our service will be located in the reception area and also welcoming
signs will be provided there to make our clients feel welcomed. Furthermore, the waiting area will
be furnished with comfortable velvet sofas so the customers relax on it while waiting. Moreover,
entertainment will be available for our customers such as Free Wi-Fi, Magazines and Television that
play videos about our service, so the customers will know more about the service and how it will be
done and this will help them to feel safe. In addition, to advertise our products, in this area there will
be stands that contains our beauty products and some treatments for hands and feet which
customers can buy. There will be a vending machine for cold drinks and snacks and a free coffee
machine that will be offered to our customers. As we know, listening to music can reduce stress and
makes you feel better, so relaxation music will be played in the waiting area and even in the Spa
while the service delivery to our customers. We believe that these facilities and entertainment in the
waiting area will minimize our customer's fear to try our service.
By going to our service area, we will use a dark decor to highlight the fish. This will create a soothing
and tranquil experience for our customers. Also, we want to make sure that our customers are
feeling comfortable and relaxed during the service, thus they will be sitting on a slick black furniture
with the under lit fish tanks (Figure: 1). As we mentioned before that relaxation music will be play
during the service to create a restful atmosphere. The fish are going to be in glass tanks with blue
and white lighting (Figure: 2). It is very important to make a distance between the chairs to make the
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customers feel more comfortable and relaxed and they will have their own privacy (Figure: 3).
Figure: 1
Figure: 2
Figure: 3
9. Managing People
The main value of our spa is relaxation, which is the most important value that our spa aims to
achieve. This value will be succeeded by making sure that the staff members have the ability to
cooperate effectively with the team members to achieve high level of service quality. So, the spa
could reach our values based on their cooperation. Furthermore, our spa is located in Seef area, the
spa employees will adapt the modern culture to cope with the customers demand these days.
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Moreover, all our customers suggestions and complaints will be accepted to us to satisfy them
efficiently.
Our human resource manager will be responsible to recruit employees who are expert in this field,
which will affect positively on the business and the culture as whole. Our aim is to perform a high
level of quality service, so we need our employees to be well trained, professional and polite to do
the job in a proper way. We are keen to have employees with positive attitude, cheerful outlook,
flexible and good listener to deliver their experience to our clients in professional standards. The
employees will be selected through different methods such as face-to-face interview, personality
test and skimming CVs.
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The Wheel of loyalty
The main customers for our spa are from females students and workers, who care about their feet
beauty, which are from 15 to 40 years old.
According to the customer pyramid, there are four different tiers of service, which are (Platinum,
Gold, Iron and lead) provided to our different customers in different packages.
First of all, the platinum customers who are the most profitable customer to our spa. They are very
sensitive to the quality of the service and do not care about the price. In the salon, our strategy is to
focus on providing them with the higher quality services; special treatment and higher priority when
there are waiting, so never keep them waiting for long time and try to serve them quickly as soon as
possible. Greet them properly and try to show your customer that you remember them carefully and
they always come to the spa. All these action should be taken in consideration to keep our
customers loyal, happy and satisfied so they come again and they will recommend their families and
friends to visit us and enjoy our services.
Secondly, the Gold customers who are profitable customers are not as high as platinum, because
they ask for price discounts and the special offers. But, they care a lot about service quality. In our
spa, we will provide those customers with different offers and high quality of service. In addition, we
will be asking our customers about the quality of services they prefer, because we want them to
come again.
Thirdly, the Iron customers who are sensitive to the price, our strategy will concentrate on providing
them will special offers from our spa, because they are important to make them feel always
welcome.
Fourthly, the lead customers who tend to choose the cheapest services. In the spa, our strategy is to
focus on the minimum charges for the customers to satisfy them, because some clients waste the
business time without any benefits of consuming the service.
Create loyalty bonds with customers
Reward based bonds
Financial bonds
In our spa, we are offering a customer loyalty card. Our customers can join this loyalty card by
earning 1 point for every Bahraini dinar they spend on any service. For example, if the customer bill
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is 20 BD so they can earn 20 points in customer loyalty points and if the points reach 40, they will be
interested to have a free service from our spa to keep them satisfied.
Non-financial rewards
Our spa will welcome the customers in a proper way by greeting them at the door and say hello
and ask them if they are okay. If they have an appointment, we ask them to sit in the waiting area.
We never keep our customers wait more than 10 minutes; we serve them on their appointments.
Moreover, our staff will take care of the customers and provide them with a quick service. Also, we
provide our customers with additional services like pedicure, manicure and massage. Special
treatments for our VIP customers, by providing them with some beverages like tea and coffee and
playing their favourite music during their service so they feel relax.
Build higher-level bonds
Social bonds
Keep on touch with our customers through the social media such as facebook, twitter and
instagram. This strategy will help to build strong relationship between the spa and the customers
and keep them updated with the special offers.
Customization bonds
Give our customers the chance to try our large collection of body lotions for their feet. So, if they like
a specific lotion, we can use it depend on their preferences.
Structural bonds
Send SMS to our customers to inform them about our latest offers.
Deepen the relationship through
Cross selling: Sell some products with reasonable prices like nail polish, body lotions and fresh
snacks.
Product bundling:
Provide our customers with some beverage like tea and coffee.
Play music to our customers to keep them feel relax.
Keep our customers watching TV.
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Reduce churn drivers
When we have a churn alert system shows that a customer stop visiting our spa, by checking their
visit via the membership cards. In this case, we try to call the customers by phones or send emails to
know the reasons of their disconnection visit and try to recover this matter. We will tell the
customers about our special offers and upgrade services to grab their attention and gain their trust
so they come and visit us again.
Ask the customers for their feedbacks about our services through doing surveys. Also, give the
customers the chance to provide their suggestions to improve the services and drop it in the
suggestions box, which is available in the spa. Then, the spa management will contact with the
customers and ask them for their feedbacks to keep them satisfied.
The relationship between the loyalty and satisfaction
This relationship depends on customer satisfaction, so, if the customers are satisfied through a
service, they will be loyal to it. To satisfy the customers, our spa should:
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Depend on the service blue print; there are some fail points that may happen that we need to
prevent them before happening. For instance, serve many customers at the same time. To avoid this
situation, our spa planned to make a booking system through the computer, which makes the
customer appointments organised. In case, this situation will happen, we will apologise to the
customers and try to compensate them by giving them any service for free.
Our spa will guarantee the customers that our service is hygienic and recommended by the doctors,
and proving that by showing the customers the certificates, which are signed by the doctors. In
addition, we will guarantee our customers that all our equipments used are clean. Also, we will
guarantee that our employees are qualified and they will provide quality of service, so any customer
who is not completely satisfied, we do not expect her to pay.
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12. References
Hartley, J. (2009, February 3). Me beauty industry to hit $2.9bn in 2009. Retrieved from
http://www.arabianbusiness.com/me-beauty-industry-hit-2-9bn-in-2009-80407.html
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