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Index

Chap. No.
1

Chapter Name
Introduction to Wellness Industry

Page No.
1

Human Resource (People)

12

AVARNA Services

14

Marketing and Promotion

27

Financial Aspect

33

Future Prospects

37

Chapter 1
Introduction to Wellness Industry

In 19th century, Herbert Spencer coined the phrase survival of the fittest. Cut to 21st century and it wont be an exaggeration if we just tweak the phrase a bit and term it, survival of the prettiest. In our country, the fixation with looking good as well as feeling great has grown by leaps and bounds in just about a decade or so. No wonder then that the beauty industry is worth Rs.12, 600crore today and is growing at approximately 30 per cent every year. Beauty along with wellness ranks just next to health which is a $3 trillion industry in India. This rapid growth has come from higher purchasing power, the advent of foreign television channels, changing lifestyles, greater awareness of treatments and more jobs where the appearance counts. The web of the wellness and beauty industry has grown at such a rapid pace that parlours around the corner have been transformed into new-age makeover centres, style hubs and fitness temples. Given the scope of this sunrise industry, anyone who opts for a career in it will positively have no regrets to talk of. The beauty industry not only offers a range of careers from the high-end super specialty jobs to the more basic skilled ones, but is also expected to generate 23,000 new jobs by the year 2014.

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Dietetics, cosmetology, dermatology, cosmetic surgery, image styling, make up and hair styling are some of the many options that one can choose from in the beauty industry. Not only are the pay packages more than satisfactory, the growth rate of this industry is bright enough to be confidently banked upon. For example, in 2002, there were around 2,000 dermatologists in the country, the number has more than doubled today. The starting salary of a cosmetic surgeon, to quote another example, can go upto Rs.50,000 when working with an organisation and in established independent practice, one can quote his/her price. Coming to the wellness industry, it wont be inappropriate if we term it as life-infusing for our stressladen lives. Spas, yoga ashrams, fitness centres and alternative therapies like ayurveda, reiki, acupuncture and naturopathy all come under the canopy of the wellness industry and have immense potential as careers. Naveen Gaur, CEO, Amatrra Spa, says, I expect the wellness industry in India to grow almost ten times in the coming years. He further adds that Peoples lifestyles have forced them to look at wellness. Getting pampered and feeling good are still on the list, but of primary importance is the desire to get relief from lifestyle ailments like insomnia, hypertension and so on. While the global fitness industry is over $ 300billion, growing at rate of 10 per cent annually, the Indian industry is about Rs.300 crore but growing at 40 per cent. Both the beauty and wellness industry are set to expand exponentially. So make up your mind.

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Opportunities in Wellness Industry


Cosmetologist - Background in science and human anatomy suffices for cosmetology (starting monthly salary is Rs.15,000-40,000). Cosmetic surgery (Rs.50,000 upwards) and dermatology (Rs.10,000-20,000) require a degree in medicine followed by a specialisation in the desired area. Fitness instructor Can join a reputed institute to become a yoga instructor (10,000-15,000), or a gym trainer 7,000-20,000). After completing programmes ranging from a few months to three years you can become a certified trainer. You may be catering to individuals or small groups depending on area requirements. Dietician - A dietician or a nutritionist (Starting salary Rs.10,000-25,000 per month) needs to have a science background with knowledge of biology, chemistry and microbiology. A PG diploma, if not masters, is the minimum required qualification in this field. An ability to empathise also comes in handy. Stylists - Turn into an image consultant (Rs.15,000-no upper limit) and all you need is an eye for fashion, style and design. No formal education is required. To be a make up artist (Rs.7,000-35,000) or a hair stylist (Rs.8,000-15,000) all you need is professional training from a credible institute.

About the Spa and Salon:

The ancient concept of a spa (literally, Sanitus Per Aqua in Latin or Mineral Spring) revolves around the therapeutic powers of water fortified with the powers of minerals (primarily zinc, magnesium and iron)
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Spas are the most frequents and sought- out destination, thanks to the feel good -factor they engender. Mineral springs in ancient times were renowned for their therapeutic values, especially in Rome where hundreds of Roman baths did double duty as bath houses and health centres. Over time, resorts and accommodation mushroomed around these springs where people congregated. However, at this stage these spas were still therapeutic .Gradually, more and more people started thronging these spas to tackle stress and lifestyle related disorders. Where these were no natural springs, canny entrepreneurs build mind-body rejuvenation centres and fitted them with modern gadgets. And voila..!! the modern spa was born. Today, many good salons across the world offer a day spa facility- with or without wet services (Jacuzzi sauna- steam) as people are scrunched for time to visit a real spa. Here, they can detox, de-stress and rejuvenate themselves without bothering to leave town.

Key trends in Spa & Salon:


As Global players in the Hospitality sector expand across Indian cities, accompanying them are the spa and the body treatments firms that expect an immense growth potential in the country. Growing demand of medical spa is also noticed in the last few years. The people are more vibrant to experiment various massage therapies, and exploring hidden healthy treatments. Foot massage, body massage, neck and back massage and other exfoliation therapies are among the most popular services. While body treatment and massage, which are integral aspects of spa , and not new for Indians as they have known similar techniques from ayurveda, the very concept of spas is expected to boom the ayurveda massage segment as well. The Swedish massage, German body treatment and Thai massage are the most popular therapies across all spa centres.

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The most targeted customers for the sector were females but with the changing trends and growing wellness and health consciousness, the new targeted customers are men a segment which is registering about 80% growth annually. In India, a spa treatment is considered to be a luxury, with the increase in disposable incomes and increase in accessibility due to the growth of spa across the country, a spa treatment has become affordable to the rising middle class.
Targeting teens and men.

Increasing affordability, no longer a luxury.

Key Trends

Foreign players entering the market.

Growth in Medispas.

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Types of Spas:

Ayurvedic Spa, a spa in which all treatments and products are natural and it's often used as alternative medicine. Resort/Hotel Spa- It is located within a resort or hotel. It offers spa services, fitness classes and spa cuisine alongside less health choices like steaks and burgers. It's a good choice when one person wants spa and the other golf. It also works for business travellers and families. Cruise ship spa, a spa aboard a cruise ship providing professionally administered spa services, fitness and wellness components and spa cuisine menu choices.

Day spa, a spa offering a variety of professionally administered spa services to clients on a day-use basis. Dental spa, a facility under the supervision of a licensed dentist that combines traditional dental treatment with the services of a spa. Destination spa, a facility with the primary purpose of guiding individual spa-goers to develop healthy habits. Historically a seven-day stay, this lifestyle transformation can be accomplished by providing a comprehensive program that includes spa services, physical fitness activities, wellness education, healthful cuisine and special inteAvarna programming.

Garden spa, an outdoor spa used for bathing and self cleansing Medical spa, a facility that operates under the full-time, on-site supervision of a licensed health care professional whose primary purpose is to provide comprehensive medical and wellness care in an environment that integrates spa services, as well as traditional, complimentary and/or alternative therapies and treatments. The facility operates within the scope of practice of its staff, which can include both aesthetic/cosmetic and prevention/wellness procedures and services. These spas typically use balneotherapy, employing a variety of peloids. "Balneotherapy treatments can have different purposes. In a spa setting, they can be used to treat conditions such as arthritis and backache, build up muscles after injury or illness or to stimulate the immune system, and they can be enjoyed as a relief from day-to-day stress."]

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Mineral springs spa, a spa offering an on-site source of natural mineral, thermal or seawater used in hydrotherapy treatments. Mobile spa, a spa which provides services at home, hotels, or wherever you are.

Reasons to visit a Spa & Salon:


Relaxation or stress relief Pamper oneself Feel better about oneself Result of gift certificate Improve mental health Improve physical health Improve appearance Celebrate special occasion

Research
In the initial planning of the companys strategies, we need to identify the important aspects of marketing. We need to target the right market place, with the right amount of price, have some of the effective promotional strategies which will help us to make place between the people. We need to keep in mind the budget that we are investing into the new venture and what kind of returns do we expect for our efforts. The location was selected taking into consideration its proximity to residential areas, the University of Pune and it is also close to the business centre.

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Introduction to Avarna Spa & Salon:

Our spa & salon is named AVARNA Spa & Salon. AVARNA, which means Nature, is a boutique place that you can relax by having masseurs to give you a massage in stylish types of rooms. The reason that we provide different type of rooms is because we want our customers to feel excited every time they visit us. New atmosphere gives more potential for customers to try more than once if the service quality is in the level that satisfies customers. Our spa focuses on providing many types of treatments for individuals, foreign tourists, and business people who want to release the stress. AVARNA Spa & Salon aims to be the premier Spa & Salon in Pune in the near future. Through a unique combination of offered services and products, we will quickly gain market share. AVARNA Spa& Salon will provide customers with a relaxing, rejuvenating atmosphere where all of their mind and body needs can be met. This business plan provides detailed financial information; it includes the basic strategic information necessary for initial establishment and operation of AVARNA Spa & Salon. This document outlines the tactics for business growth, methods, procedures for operation, and infrastructure management. Address:- 91, Supreme Centre, ITI Road, Aundh, Pune, Maharashtra 411007. 020 2589 6647
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About the Company


AVARNA Spa & Salon offers a wide variety of mind and body healing services and products. The salon aspect of the business provides both males and females with any type of hair styling services. The spa business is devoted to providing various services including massages, body works, and energy works. This is all done in a relaxing, serene setting. AVARNA Spa & Salon is a start-up, up-scale beauty salon and spa located in Aundh, Pune. We offer a full range of hair care, skin care and spa treatments for the whole family. Our professional and personable staffs strive to offer you nothing but the best customer service, products and treatments available. We focus on making each customers visit with us enjoyable, fun, and relaxing. AVARNA Spa & Salon's hours of operation are Sunday through Saturday 10:00 a.m. to 10:00 p.m. We will process all online appointment requests within 24 hours. No personal information will be sold to any third party under any circumstances. We are centrally located near businesses and residential neighbourhoods at Aundh and thus our target audience will be middle class and upper middle class of this area. We believe that this is critical to our initial success and long-term growth.

Why Aundh??
Aundh is an affluent suburb in the North-West of Pune in Maharashtra, India. It is known for its posh localities. Since around mid-1990s it has developed significantly as a residential area with proximity to the University of Pune, the Governors house and one of the Software Technology Parks of India at Hinjewadi. Aundh can be divided into the old Aundhgaon and the newly constructed suburban areas. This clearly states that reaching the working class, residential class, housewives, middle class and upper middle class would be possible only through being at the epicentre of Aundh.

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Mission
AVARNA Spa & Salon will provide a comforting, yet stimulating, atmosphere in which customers will be able to relax both their body and mind, reconnecting their daily lives to their true purpose through a wide range of services including massage, body works, energy works, and hair styling. AVARNA Spa & Salon will establish itself as a dependable destination to which they can always come to escape the stresses of life, and rejuvenate their energies, their souls, and their lives. We look forward to making you look and feel fantastic!

Vision
It is our vision to enhance our clients natural beauty from the inside out. We see ourselves as providing avant-garde beauty and wellness services at all times. Hence, we aim to make the everyday ordinary as extraordinary.

Keys to Success:
1. Quality and skilled employees familiar with energy work and oriented to a soothing spiritual disposition. 2. Establish trust within the community that each customer's needs will be taken care of during every visit. 3. Easily accessible location. 4. Effective advertising.

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Chapter 2
Human Resource (People)
The cornerstone of the personnel plan is to maximize productivity and minimize the labour burden on the companys operating expenses. As we grow, we expect to see steady increases in our personnel to match the increase in sales.

Avarna Spa & Salon (HR Bifurcation)


SPA 2 owners who are well experienced in the field. 1 external experienced employee. 5 freshers who will also be trained from time to time. SALON 1 owner who is well experienced in the field. 1 external experienced employee. 4 freshers who will also be trained from time to time. EXTERNAL AFFAIRS 2 owners would take care of

other external affairs such as


marketing, R & D, etc. There will be 2 staff members involved in house keeping. 1 receptionist.

Important considerations related to employees Our employees will take a good care of clients and do everything to satisfy clients. Every massager is well-trained, before massagers are accepted by our organization, they need to be trained at least 3 months. Every six months, every massager has to participate in training programs such as body massage, facial massage, foot spa, and hand spa. We will provide the English course once every week after work so that every employees and communicate with our foreign clients. Every employee must have good manner and be very polite to our clients
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The employees of the month will be voted in order to motivate our employees The prizes will be given to the employees of the month as well The manger will be responded in everything in the spa and also has the right to make any decision in the emergency cases. The receptionist is responsible for receipt of payments and ensuring that the accounts are maintained properly at the end of the day.

Motivating and Retaining Staff Maintaining regular communication with employeesOur spa will give out the internal newsletter for our employees every month, including memo, bullet board, or meeting to motivate our employees. ComplimentingWe also give a reward for the employees of the month. Setting Clear Objectives and performance standardOur employees must understand clearly about the mission and objective so that they can provide services to our customer and the same level or better than the setting standard. Advancement OpportunitiesOur Spa will provide training courses to our employees. For masseuse, first we will provide them the body massage course, then when they know everything about body massage, and can work effectively, so will move up to the next level which is facial massage.

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Chapter 3
AVARNA Services
AVARNA Day Spa will provide customers with personal beautifying and relaxation services and complimenting products, as well as guiding in specific forms of energy work.

Salon services

RATE CARD OF AVARNA SALON


SALON Service Hair Salon Services Haircuts (wash, cut / style) Hair Colouring and Highlights 150 onwards 500 onwards
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Time in minutes

Rate

Hair and Scalp Treatments. Hair shampoo and Conditioning. Hair Relaxers and Perms.

750 250 1000-1200 1000

Hair Curling, Reconstructing and Weaving Nail Salon Services Manicures Pedicures Hand conditioning Nail repair and sculpting Facial Quick Results Facial Customized Facial Stress Relieving Spa Facial Oxygenation Facial Powerful Surface Peeling Facial Facial Other Salon Services Acne-clearing Treatment Facial Bleaching Waxing Threading 45 30 45 45 45 45 45 -

200 onwards 250 onwards 350 400 600 800 1000 1300 1350 1400

Pumice Peel Manual Micro-dermabrasion 45

1050 400 50 onwards 35 onwards

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Hair Salon Products:


Shampoos. Conditioners. Extra hair treatment. Pre-styling products. Hair styling products. Hair finishes. Brushes and hair tools.

Skin Care, Nail and Beauty Products:


Face skin care products. Body skin care products. Makeup. Makeup tools. Nail polish products. Nail finish products. Nail tools. Perfumes. Bed and bath products.

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Spa services:
Today's busy, modern world offers many advantages but is at the same time a challenge for the human mind and body. Constant stress and pressure weigh heavy on our minds while long sitting and working hours as well as a permanently wrong posture give strain to our body. While a lot of people are disappointed with the treatment that allopathic medicine offers, those who have experienced Spa Treatments and procedures are often convinced by the results: they feel better, muscles could relax, strain and stress was lifted and pain could thus be reduced.

Aromatherapy

This word Aromatherapy comes from the fusion of two words- Aroma which means smell and therapy which means to cure. Reportedly founded in 1937 by a French research chemist, "the art of aromatherapy" remains popular in European countries and has now gained complete acceptance in today's spas. Aromatherapy lays a great stress on the usage of essential oils. These oils are extracted from the plants by the methods of steam distillation and cold-pressing of flowers, fruits, bark and roots.

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Aromatherapy massage is particularly suited to conditions involving stress or improving emotionallyrelated conditions. Stress and stress-related conditions such as insomnia Headache Digestive disorders Premenstrual syndrome (PMS) Back pain Each essential oil has different healing properties. For example, some calm while others energize. Here are some widely used essential oils and their properties: Calming chamomile, lavender, geranium Uplifting ylang ylang, clary sage, rose, neroli Energizing rosemary Cleansing rosemary Decongesting eucalyptus, pine, tea tree

Aromatherapy services offered:


Cosmetic aromatherapy is the usage of essential oils for cosmetic
purposes. You can use them to improve the look and feel of your skin and hair care. This type of treatment is very popular in salons and parlours.

Massage aromatherapy combines the powerful soothing effects of


massage with the benefits of aromatherapy. In this method a mixture of essential oils is made and is massaged on the body by expert masseur. It is an excellent healing method. Aromatherapy massage releases the powerful emotions in the body thus healing you completely without the side effects.
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Olfactory aromatherapy works by spraying the essential oils in your


surroundings either by diffusion or inhaling. To enjoy the benefits of olfactory aromatherapy by inhaling, rub a tiny amount on your handkerchief or on the back of your palms. You can also mix the essential oils with distilled water and spray it in the air to enjoy the fragrance.

Ayurveda Massage Therapy

Ayurveda is a gift to the world from Gods own country, Kerala. Located in the subcontinent of India, Kerala is the seat of all Ayurveda learning and practice. Our ayurveda body treatment will drive away all physical suffering, control several dreaded disabilities, ward off the middle age syndrome, retard the aging process and provide unlimited curative powers for body and mind by repairing the worn out tissues, revitalizing the body, increasing memory power, improving vigor and vitality and make oneself physically and mentally fit.

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Ayurveda Services offered:


1. PIZHICHIL is a relaxing, soothing and rejuvenating treatment with
medicated warm oil used in a continuous stream for a definite period for the whole body (excluding head & neck). It is used to effectively treat arthritis, ageing, general weakness, paralysis etc.

2. NJAVARAKIZHI is a whole body massage using medicated


milk-porridge made into a bundle. It is an immune-enhancing rejuvenation therapy and is made use of in recuperation period of injury and trauma, muscular wasting, arthritis, general weakness, paralysis etc.

3. ABHYANGA MASSAGE Along with other massage techniques it is given to help the body
expel toxins from the body as quickly as possible. This is a full body massage with medicated oils to balance specific conditions. The oils used contain herbs and ingredients that pacify the unbalanced Vata, Pitta, and Kapha energies.

4. SHIRODHARA is a mixture of cooling and balancing herbal


oils and medicated ghee is trickled over the forehead in a continuous warm stream in a quiet, soothing atmosphere. This is a special Ayurvedic treatment that gives total relaxation to mind and body, and is the best way to pamper yourself after a hard stressful day. Our treatments include relaxing body to face massages that will add to the glow on your body as well as on your soul and will leave you to look absolutely stunning. You can be rest assured that all these treatments, massages and other Ayurvedic measures will satisfy you to your hearts content and leave a smile on your face so much that you will crave for more!!!

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Hot Stone Massage


The hot stones are usually made of basalt, a type of rock that is rich in iron, so they retain heat. River rocks are normally used because they are so smooth - they have been smoothed over time by the river's current. The stones are immersed in water and heated in an electric heating device until they are within a certain temperature range. The stones may be placed at specific points on the back, in the palms of the hand, or between the toes. The warmth of the hot stones improves circulation and calms the nervous system. People get hot stone massage for a variety of health conditions: Back pain and aches Poor circulation Osteoarthritis and arthritis pain Stress, anxiety and tension Insomnia Depression

Hot Stone Services offered:


1. LaStone: It includes, chakra balancing, clearing, hot stone
massage with a specific protocol, spinal layout, neck stones, chakra stones, hand stones toe stones for balancing the elements and may include sage burning. This uses basalt stones, marble stones, Petoskey and or jade stones. Hot and cold stones may be used.

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2. Thera-Stone or Therapeutic Stone: Follows a traditional Hot Stone Massage protocol, but utilizes
more hand manipulation and other therapeutic modalities to take the massage to another level. Thera-Stone massage may incorporate, stretching, articulation of the joints and trigger point into the service.

3. Tibetan Himalayan Hot Stone Massage: The treatment draws


on traditions described in the ancient Tibetan medical text, the Gui Shi. The treatment uses 48 hot stones and fragrant herbs and oil to relieve tension from the body. Hand-carved by a monk in Katmandu, the soft river stones are marked with eight auspicious symbols. Applied to key points on the body, the heated stones create sensations of comfort and warmth; expand blood vessels and calm the nervous system.

4. Euro Stone Facials: Warmed stones are used to diffuse the heat into the skin and to help
aromatic oils penetrate deeper. It provides an immediate release in the muscles of the face. The benefits provide a deeper elimination of toxins and blockages with a lymphatic draining massage. Skin firmness and vibrancy is improved whilst reducing redness with the hot & cold. It will provide deeper relaxation of the muscles with the heat of stones and a synergistic approach with the aromatic oil.

5. Hot Stone Pedicures: A relaxing full pedicure for your feet followed by a hot stone massage on
your calves and feet.

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Thai yoga Massage


Thai massage is unlike other types of massage. More than just a hand massage, the Thai version is more like a passive, full-body exercise that resembles yoga postures. While classic massage in the west are relaxing and therapeutic, Thai massage also energizes the body and makes it more flexible. Over the centuries, different kinds of Thai massage have evolved in Thailand. Knowing the differences will help you make the right choice should you decide to learn it for yourself one day. Thai massage has the following benefits: Relaxes Reduces Stress Improves circulation Increases energy Increases flexibility Improves range of motion Centers the mind and body You are usually asked to bring or wear comfortable clothing to the massage. A typical Thai yoga massage is a 60 minutes to two hours long.

Thai Yoga Massage services offered: 1. Northern yoga Massage: The northern lineage rules Chiang
Mai in the north. The northern lineage is more relaxed and gentle. Many of the Thai massage experts in the United States today learned the art in Chiang Mai.

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2. Southern yoga Massage: The southern lineage,


is predominant in Bangkok. The southern lineage uses a stronger, more energetic style. The standard massage routine is also performed in a slightly different order in each lineage. Some say that the southern style is better for therapeutic massage, and the northern version for general treatment.

RATE CARD OF AVARNA SPA


SPA Products/Services Hand Ritual (Spa) Foot Ritual (Spa) Body Scrub Body Wrap Fish Spa Lip-Conditioning Body Treatments Aromatherapy Cosmetic Aromatherapy Massage Aromatherapy Olfactory Aromatherapy Ayurveda Therapy Pizhichil Njavarakizhi 90 mins 90 mins 1500-2000 1200-1700
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Time in Minutes 45 mins 60 mins 60 mins 60 mins 30 mins 30 mins

Price 200 300 800-1200 800-1200 400 350

90 mins 90 mins 90 mins

800-1500 1000-1750 800-1200

Abhyanga massage Shirodhara Chakra Balancing Massage Hot Stone Therapy LaStone Thera-Stone or Therapeutic Stone Tibetan Himalayan Hot Stone Massage Euro Stone Facials Hot Stone Pedicures Thai yoga Massage Therapy Northern Massage Southern Massage Express A great way to work that one area that's giving you trouble.

90 mins 90 mins 90 mins 90 mins 90 mins 90 mins 90 mins 90 mins

800-1200 800-1600 900-1800 800-1000 800-1200 800-1100 800-1700 800-1500

90 mins 90 mins 90 mins

1000-1800 1000-1900 1500-3000

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Spa Group Events


If you are bringing a group dont forget to pre-plan spa arrangements for your guests. Our Group Coordinator will be happy to ensure your spa appointments are scheduled, and that you and your group are indulged.

Product level
Core product
Core product is the products or services that customers are looking for. Our spa core product is providing the sense of relaxation and relieve. We offer unforgotten memories to the guests which they would like to come back.

Facilitation Product
We will provide free hot drinks after the treatment, so customers are still relaxed mode. Moreover, we do want customers feel relaxation but still in chic style, so we decorate our spa with many themes such as water fall and the beach.

Augmented Product
The sample aroma will be hand in to the first time guest, so they wont forget our spa and come back to use our product.

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Chapter 4
Marketing and Promotion

Spas & Salons rely on marketing and advertising to build a loyal customer base; because the bulk of customers are local and so the promotional efforts should be designed to work for the community. As spa & salon owner, we may not have the budget for large, lavish advertising and marketing efforts. For a more manageable and affordable plan, we choose campaigns that are easy to manage and dont require a large cash outlay.
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The listed are our different ways in which we will be marketing our products:

Online Presence:

We are using Web marketing as a means of advertising, because its powerful and it can be very effective, and its here to stay. When researching spa options, consumers often start online. So we have maintained an online presence to ensure that spa shows on search engines and have also build a simple website that contains our contact information, location, list of services and prices. We have also increased our online visibility by taking out digital advertisements in places customers will look local beauty blogs, local travel websites such as snap deal.com, dealsonyou.com, dailydeals.com and social media sites like Facebook and Twitter by including photos of the spa treatment rooms and detail location and contact information, providing links to articles about spa-related topics like taking care of your skin, how to handle a first spa visit. Another vital aspect of raising our visibility and exposure on Google is to get other sites to link to our site. It's generally referred to as getting back-links or incoming links. This technique will bring us the optimal benefit when the sites linking to us are well-established, have a similar theme to our site, or are considered an "authority site". The ultimate authority sites from which to get links are health sites, medical tourism, and other forms of tourisms. Improve your online visibility Increase web site traffic Convert more web visitors into customers Build customer loyalty Ensure greater spa profit.
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Membership Cards
Pay RS1500/- and 4 people can become members on one card (can be family or friends) and all 4 people can get 20% discount on all services provided in the salon at all its branches every time they visit the salon.

Penetration Pricing Strategy:


Penetration pricing is setting a relatively low initial entry price, usually lower than the intended established price, to attract new customers. The prices at AVARNA are comparatively less than the ones offered by others as we have adopted Penetration Pricing Strategy.

In-store Advertising: -Show product demos or related videos.


Offer beauty tips, healthy recipes, and discounts on your services.

Create an e-mail list


Get regular customers as well as first-timers to subscribe to mailing list for spontaneous promotions and unadvertised specials. We even offer our guests a special deal on their birthdays.

Happy Hours
There would be specific hours in the day during which people can avail discounts during those particular hours. Happy Hours will be for 2 hours a day, on Tuesdays.

Tie ups for College Festivals & Events:College Festivals have gained importance in recent times and have also become a very important medium to advertise. Right from the local shops to MNCs, everyone these days uses college festivals/events to advertise their products. It is also economical as compared to other mediums of advertising.

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Weekly deals:
Every 50th customer of the week would be given 40% discount. .

Monthly deals:
Every 100th customer of the week would be served for free.*

Special discounts:
Housewives:
Providing discounts to housewives on weekdays between 3 to 6.

Working class:
Distributing discount vouchers to employees whose team performance is the best and as well as individual performance.

Students:
Sponsoring events of colleges and again distributing discount coupons in the events.

Outdoor Advertising
Expenditures on advertisement is considered as profitable investment. Advertising is a process which makes goods and services popular. We can also say that advertising is a technique of influencing the minds. Different mediums that we have used for advertising purpose are Radio, Magazines, Posters and Cinema Slides.

Newspaper Advertising: The reach of Newspapers is increasing & so is it becoming a very effective medium advertising, everything, right from items of daily use to high end products is advertised. We will include our brochures in the leading newspapers.

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Irresistible GWP offers:


The acronym GWP stands Gift with Purchase. As the name suggests, a GWP is an item that is presented to the client when he/she spends above a specified amount on beauty treatments or skin care products. The Gift with purchase(free item) could be anything from cosmetics, salon voucher, white plush slippers, perfumes drawer liners, candle gift set, product samples, mini fragrance oil etc.

Spin & Win:Wheel of Fortune is a lottery device consisting of a wheel which is spun horizontally, Articles or sums to which certain marks on its circumference point when it stops being distributed according to varying rules. Customers availing services will be given a chance to spin the Wheel of Fortune & will be given discounts or offers as per what the wheel point towards. *

Other Marketing Options:


Client Acquisition Corporate Programs New Generation Marketing Pre-opening marketing strategies Public Relations Client Retention Programs Holiday Promotions Measuring Your Marketing Effort Promotions and Events

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Porters Five forces Model


The original competitive forces model, as proposed by Porter, identified five forces which would impact on an organizations behaviour in a competitive market. These include the following: The rivalry between existing sellers in the market. The power exerted by the customers in the market The impact of the suppliers on the sellers. The potential threat of new sellers entering the market. The threat of substitute products becoming available in the market. Understanding the nature of each of these forces gives organizations the necessary insights to enable them to formulate the appropriate strategies to be successful in their market (Thorsby, 1998). Threat of new entrants- very high
Bargaining power of buyers- Medium Although its a high growth industry with stiff competition within rival firms, there is no uniformity in product or pricing.Operators price the offering as per the package. Hence the end user has limited bargaining power when it comes to pricing or bundling in all additional services.

Virtually no entry barriers. Any person can forey into the business without complications.

Rivalry within the industry- High


Largely localised and unorganised market. Hardly any players with PAN India presence and operating with a corporate structure. The industry is limited or no brand recall/ value., competition among firms int he industry is very stuff and at a local level.

Bargaining power of suppliers- High


Currentlythere are very few suppliers of trained manpower or products. These suppliers enjoy a relatively commanding bargaining power.

Threat of substitute- Very low


There is very low threat of substitute products. The automated massage chairs and other products available in the market do not in the real sense offer any threat, as it cannot replicate the spa experience.

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Chapter 5
Financial Aspect Initial investment: Rs. 10 lakhs Initial Cash Deployment
Particulars Rent Deposit Legal charges Equipments & Other Fixed Assets Interior Cost Working Capital Total Rs.1,00,000 Rs. 25,000 Rs. 2,00,000 Rs. 4,00,000 Rs.2,75,000 Rs.10,00,000 Amount

Cost Budgets
Monthly Rent for Premises: Rs. 50,000 Average monthly expense on electricity: Rs.30,000 Staffing: Average Monthly Budget Employees 2 Experienced Employees 9 Freshers 2 House-keeping 1 Receptionist Salary per employee 30,000 each 12,000 each 6,000 each 10,000 each Total Total salary per month 60,000 1,08,000 12,000 10,000 1,90,000

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Revenue Budgets
From spa & salon services No. of customers per day 08 to 12 15 40 60 No. of customers in the month 300 390 1040 14,040 Avg. amt spent by each customer 200 300 300 400 Total From sale of other products: Rs. 50,000 Total revenue generated: Rs.61, 55,000 Revenue generated for the month 60,000 1,17,000 603,12,000 56,16,000 61,05,000

Month 1st month 2nd month 3rd month 4th month onwards

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Profit & Loss Account as on 31st December, 2012


Particulars To Material Consumed Amount Particulars 3,00,000 By Sales Products Services 25,000 6,00,000 3,60,000 22,80,000 5,00,000 9,00,000 1,80,000 Amount

50,000 61,05,000

To Legal charges To Rent To Electricity To Salaries To Advertising & Marketing To Salary to Directors To Miscellaneous (Pantry Supplies, stationary, repairs etc) Expenses To Depreciation To Provision for Taxation To Net Profit after tax

1,20,000 2,67,000 6,23,000 61,55,000 61,55,000

Balance Sheet for the year ended on 31st December 2012


Liabilities Amount Assets Fixed Assets Gross Value: 6,00,000 (-) Accumulated Depreciation: 1,20,000 Rent Deposit Cash & Bank balances Amount

Share Capital Share Premium Retained Earnings

1,00,000 9,00,000 6,23,000 16,23,000

4,80,000 1,00,000 10,43,000 16,23,000

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Tax = Net Profit Before Tax (NPBT) * 30% = Rs. 8,90,00 * 30% = Rs. 2,67,000 Profit percentage = NPAT/Sales * 100 =6,23,000/61,55,000 * 100 = 10.12%

Important Assumptions:
All financials are projections and estimates, which are based on the following assumptions: 1. The business will continue to grow and receive the same success if not more 2. This industry will maintain its popularity, especially in major cities 3. Through new marketing techniques, the business will develop higher sales

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Chapter 6
Future Prospects
Wedding Day Make-Up and Styling Let us develop an individual service tailored to the needs of you and your wedding party. Prices are based on time and number of persons participating. Ask your Spa Concierge for details.

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