1 CHILL SPACE

1. 0 Executive Summary

Chill SPACE is a new destination offering customers the unique combination of spa and

café services. Offering ranges of massage services, nail cares, pastries and espressos. The

goal and promise of our business can be summed up in our name and slogan: Chill

SPACE- “A path to a total relaxation”.

Chill SPACE is a combination of full service massage and café dedicated to consistently

providing high customer satisfaction by rendering excellent service and furnishing an

enjoyable atmosphere at an acceptable price and value relationship. Chill SPACE will

maintain a friendly, fair and creative work environment, which respects diversity, ideas

and hard work. We are envisioning to be recognize as a premiere one stop relaxation

destination that serves and caters both men and women individual body needs through

our different types of massage techniques and specialization including

Pregnancy/Prenatal massage, Sports/Deep Tissue massage, Reflexology, Indian Head

massage and the Swedish massage. We offer 3 single rooms, 2 couple room and a 1 room

for family or barkada with 4 beds. There were also services good for those who wanted

to have a quick massage especially those who needed it the most but needs to get home

fast, ranges from 10-35 minutes. The café on the other hand gives you the aroma of

coffee blends and espressos that will guarantee a new feeling of you. We also serves

pastries that will satisfy your cravings To totally refresh and unwind you from the rigors

of daily life, pamper your nails and toes with manicure and pedicure.

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Vision

To create and maintain unique experience where you feel better from the moment you

walk in.

Objectives

 To fulfill the needs and wants of every client to satisfy them and to engage long

term relationship.

 To eradicate the mindset that only elite people can afford the spa services.

 To ensure a friendly, comfortable atmosphere.

 To provide a high standard service quality.

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Business Logo

The Chill SPACE logo is composed of representation of the combination of the massage

and cafe symbols. The crossed below the first cup of coffee represents the therapists

hands who perform the massage. The crossed below the second cup of coffee represents

the customer who avail the massage. The cup of coffee on the other hand symbolizes the

head of the therapist and customer. Space is an area that is allotted for a specific purpose

such as massage room. Besides it emphasizes the business type which is SPA and CE as

CafE.

2.0 Situation Analysis

2.1 Market Summary

ChillSPACE possesses good information about its market and know a great deal about

common attributes of its potential loyal clients. We will leverage this information to

better understand whom we serve their specific needs and how can we better

communicate with them.

The profile of the ChillSPACE customer consists of the following geographic,

demographics and behavioral factors.

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2.1.1 Market Demographics

Geographics

ChillSPACE geographic market is the Barangay Banga 1st and the near neighbor area

with a total population of 7,291, the 5th most populous barangay of Plaridel. There were

3,079 inhabitants currently working. However, not all of them worked within the area.

Approximately, there were 2,500 individuals working and employed within the targeted

barangay. There are different bank companies surrounding the area, there also exist

department store, public market, terminal mall, hospital, clinics and salons which we

consider as our complementary business that does not offer any massage services. These

types of businesses have their workers and customers who would be a very important

asset to our establishment.

Demographics

 Female spa clients – 58.50%; Male spa clients – 41.50%

 Ages 19-63; with 89% clustering around 20-45 years of age.

 The targeted customers have a median personal monthly income of 14,070.

Behavioral Factors

 Customers are willing to spend 300-600 pesos for a spa visit.

 They prefer to have a spa visit every weekend.

 Customers consider good quality of services upon choosing which spa to visit.

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 Customers choose to go to spa in order to relax, manage their body pain and

some wanted to spend time with their family and friends respectively.

2.1.2 Market Needs

Spa cater to a wide variety of clients who are looking to unplug, find stress relief, relax

and pamper themselves rather than go clubbing. Others seek out spas in order to attend

retreats that focus on mindfulness or to receive treatment from previous injuries, some

people chooses spa in order to create memories together with their love ones on a serene

place.

Customer Services

Chill SPACE will strive to achieve benchmarked level of customer service.

 Customer Hotline – For easy response and to book a reservation.

 Customer Assistance – Chill SPACE will empower its front desk staff in order to

give over the top customer service that encourages folks to make an appointment.

To ensure a high quality of customer service, Chill SPACE will have employees which

are highly trained. Since this is a service industry, unsurpassed customers will be our

main goal. This aspect among others is what will set us apart from our competitors. We

will strive to offer superior service that will make our clients desire to return. Each

customer has the freedom to choose who among our available therapist him or her desire.

If and ever his or her chosen therapist would not be available during the time he or she

arrive, there were part of the business where he or she can wait, take an order to our café

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portion and access the internet connection for free. For those who wanted to steal a rest

and have a massage in order to relieve a specific body pain even just for a bit Reboot

massage would always been available. On calls therapist would always be prepared and

ready for any reservations and appointments that would be taking place outside of the

establishment.

2.1.3 Market Trends

A trend was confirmed when investigating consumer’s preference of joint visits to spas

over visits alone with 58 % of males and 63 percent of females preferring to visit spas

with an accompanying person; the trend to use the spa to socialize might influence future

spa design and the time spent in the spa itself. One out of three females spa consumers in

Thailand visit a spa, together with a friend, while interestingly, more male consumers

visit spas with their partners (22 percent of men and 12 percent of women).

Customization and personalized of services to the individual needs of clients- 7%; The

use of organic and natural products- 12%;

Increasing use of alternative treatments and therapies, reiki, energy work and salty

therapy- 11%; Stress management, including practices such as mindfulness and

meditation and “ the incorporation of approaches” such as lifestyle coaching into the

work of the spa- 8%;

Trends around making use of technology and adapting to e-commerce “ creating new

business demands such as online booking, increasing their use of social media and online

promotion and marketing- 8%

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2.1.4 Market Growth

In 2015, there were 120,000 spas around the world that generated approximately $99

billion revenue according to First Research Inc. The global spa market is forecast to rise

at a compound annual growth rate of 5.66% from 2017 to 2021. The consensus among

spa operators is that the number of male spa consumer has increased over the past few

years, although there hasn’t been a significant change in the male and female ratios. The

spa industry expects more male customers on the near future, as a male specific treatment

has evolved.

In the Philippines, as of end of 2006, there were an estimated 87 spas operating in Metro

Manila alone, a figure 74% higher since 2003; and with those offering spa services

varying, as hotels and resorts jumped on the bandwagon, with 20% spas located in hotels

and resorts, and 76% of spas stand alone day spas. These according to Intelligent Spas

(intelligent.com), which released the Spa Industry Profile Philippines 2003-2007 that also

noted the growing size of spa facilities (averaging 609 square meters),with an average of

10.9 treatment rooms, making them the largest across the Asia Pacific Region.

The growth in the Philippines is not just limited to Metro Manila. In the Queen City of

the South, Cebu City, for example, Spa and Wellness Association of Cebu Inc. (SWAC)

president Johnie Lim earlier noted in Sun Star that their local health and wellness

industry is expected to grow further this year, as more people seek out spa services.

“More people have realized the benefits of going to a spa, even those in the lower middle

income (bracket). The trend can be seen even among people who have never been to a

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spa before”, he says, all the while noting that even with the growth, “many small spas

will close; those who will survive are those that have captured their own markets”.

Cebu City already has 160 spa centers, more than in Metro Manila, and up from only 90

in 2006. “It’s becoming apart of the lifestyle of many Cebuanos. (With the growth), Cebu

City is becoming Wellness Island”. Lim says.

FAME AND FORTUNE

The growth, admittedly tremendous, shouldn’t coma as a surprise.

For one, especially when times are hard, people want to feel good, if not with the

situation, then at least with themselves, and spa facilities can help make this happen.

“People go to a spa to relax, rejuvenate, restore, one or the other, or for all these reasons”,

says Angie Castillo, manager of The Spa at the Mandarin Oriental, Manila, in “Blissed

Out and Bullish” in the Sunday Inquirer Magazine. “There are massages for those who

want to get rid of muscle tightness and aches, and also get some pampering and

relaxation. Others come for the body treatments like scrubs and wraps to get rid of dead

skin cells and acquire more nourished skin. For some people, the visit is for relaxing

facials. But generally, the trip to the spa is for the purpose of looking good and feeling

good.

Second, spas, of course, actually help improve health. For example, “having a massage

results in increased blood circulation, increased flexibility of muscles, detoxification of

the body through the lymphatic system, decreased production of the stress hormone

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cortisol, and the release of endorphins, also known as the happiness hormones”, says

Catherine Brillantes –Turvill, president of Nature Spa, also in the same report.

2.2 SWOT ANALYSIS

2.2.1 STRENGTHS

ChillSPACE strengths are as follows:

 Easily and accessible location

 Serene, comforting and relaxing atmosphere

 Exceptional customer service

 Reasonable service prices

 Uniqueness of services

 Highly skilled and trained employees and therapist

 Provide wide parking space for customers

2.2.2 WEAKNESSES

ChillSPACE weaknesses are as follows:

 New in the market

 Many people see spa as luxury that is out of their budget or can be indulged in on

special occasions only

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2.2.3 OPPORTUNITIES

ChillSPACE opportunities are as follows:

 Offers additional services that values high potential target market

 People nowadays concerned about their health, which is one of our biggest

opportunities.

2.2.4 THREATS

ChillSPACE threats are as follows:

 Possibility that Chill SPACE might not be able to find or afford professional staff

members certified in the treatments

 Lawsuits from the customers who will experience a reaction to a chemical or

suffer a burn or other injury at the premises

2.3 Competition

The competitors that we concern are those spas that are located in the nearby area or

barangay, because there’s no spa that offers same services as Chill SPACE has on the

targeted location. There were 6 spas already existing, however, compare to the size,

styles, target market and image, there are only one, which seems to be our main

competitor. Banahaw Heals Spa with over __ branches herein Bulacan, they offer

massage and facial services. Its key for the good name in the industry is the service

packages that they have, their signature massage that involves five type including

Shiatsu, Tuina, Hilot, Swedish and Thai massage. However in terms of customer service,

they were lacking. They have the websites and hotlines; however they are not as

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responsive as ours. Because Chill SPACE will prioritize potential actual customers by

paying attention to those who are inquiring on our services whenever channel they may

choose, either on websites, hotlines, phone calls, Facebook pages and specially the most

accessible to all, on messenger. Another key advantage of Chill SPACE is that Banahaw

does not offer personalized massage including Prenatal and Sports massage which has a

large market. Lastly, having a café inside the spa has a huge potential of acquiring

different target market, and has chance of gaining not just spa-goers but as well as coffee

lovers.

The remaining nearby competitors was considered as indirect competitors due to its

limited massage service offering, includes d’BaNuah Wellness Spa, Nails and Toes,

Serene House of Wellness, Cassiopeia Salon and Spa and Gluta Rose Spa.

Customer chooses spa and café services based on proximity to their daily travels from

home and work, reputation for quality services and good pricing. What will set Chill

SPACE apart from the competition is the commitment to provide all of its specialized

services in one convenient location. The basic market need is to offer a variety of services

at reasonable prices through a personalized massage that offers excellent service and

treatment that encourages people to pamper them.

2.5 Keys to Success

Chill SPACE keys to success are customizing and personalizing the services to the

individual needs of every guest, every visit with the help of quality and skilled therapist

and the rest of its employee Chill SPACE will ensure a total satisfaction that brings

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people back for regular massage treatments and encourage them to recommend us to

friends and other health professionals to recommend their clients. In addition, having a

unique combination of spa and café services, we’ll be catering both spa goers and coffee

lovers. This business would be a one stop relaxation destination that serves the

community by providing feeling of free from stresses, body pains and difficulties in life.

Through this Chill SPACE can be able to establish trust within the community. It’s easily

and accessible location on the other hand will provide customer convenience upon

visiting Chill SPACE. In addition, we’ll provide exceptional customer service.

2.6 Critical Issues

 The Spa industry needs to not only give back, but also strive to serve more people

by offering lower cost services and products.

 Spa will struggle to find quality service provides and will also be tasked with

creating new and unique offering. Spa goers will have a lot more choices, so

providing more customizable options will be key.

3.0 Marketing Strategy

Chill SPACE is planning for the best of its operation in order to build good relation with

our customers by focusing on giving customer satisfaction through a total relaxation by

our massage services and best brewed coffees and pastries.

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Chill SPACE believed that giving customers an exceptional experience every time they

visit us, we’ll be able to generate continues patronization by our potential regular

customer.

Chill SPACE will empower its employees specially he who be assigned on the front desk,

this staff will give over the top customer service that encourage folks to make an

appointment. Than reduce the steps on making an appointment due to the convenience of

having websites wherein necessary information will be provided therein such us and

contact numbers or hotlines, menu of services including the prices.

In addition, we’ll be having list of therapist that we have with description on their career

and specialty on massage types that would be posted within the vicinity of the

establishment, websites and other social media.

Social networking sites including Facebook, instagram and the like will help us to

channel to all of our potential customers, it can shows that Chill SPACE is in touch with

people on a more personal level. Posting pictures of our customers on a designated area

with a unique interior design in our Facebook page which will caught others attention

would be a big help in order for them to be aware to our existence and by the use of word

of mouth.

Another method to be used in terms of promotion includes membership cards that would

be known as CHILL PERKS. This card empowers owner to receive a 10% discount upon

availing Chill SPACE’s massage service whenever they visit. It has a one-year validation

period that will be activated when the member utilizes his or her first discount. They can

avail this card worth 300 pesos. We will record it to our system so that we can monitor

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the customer because whenever they reached 30 times of being discounted they can have

Chill SPACE stress buster express for free. (Approximately 2 times per month).

3.1 Mission

Chill Space’s mission is to provide a comforting yet stimulating atmosphere in which

customer will be able to relax their body and mind with the massages that we have and at

the same time re-energize it with the beverages that our cafe offers.

3.4 Target Market and Segmentation

We are primarily targeting potential clients working within Banga 1st approximately

2,500 individual or employee. Business establishments have their employees that works

hard which needs some time in order to treat and pamper themselves with massage

services. Banga 1st have many different banking companies such as City State Bank,

RCBC, BDO, and the like. There also exist hospitals and clinics around. Public market

and terminal mall were also found within the target area, wherein passers by would have

the tendency of visiting our place. They have the median monthly income worth of

14,070.

Within this group, clients who use spa service will fall into basic groups:

 Clients pampering themselves, which sometimes have chronic, pair old injury.

This group is considered to have a disposable income which tends to visit a spa

1-4 times a month for relaxation

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 Clients who prefer alternative health care including pregnant woman, which uses

massage as preventive health care and body pains. This group will assumes to try

to have a spa massage as regular as they can afford usually once per month.

 Serious Athletes. Many runners, bicyclist, basketball player and the like in the

local area use massage to improve performance. Referrals to this group are great

word of mouth if they see good results.

3.5 Positioning Statement

 ChilL SPACE will position itself as one of the best spa here in the province of

Bulacan. This positioning will be possible because of Chill SPACE edge with its

competition, the combination of unique services, outstanding location and

high-end level of personalized care on every client.

 Chill SPACE is a spa business form to serve people who want to relax, recharge

and chill out.

 Its management is able to use its best of their abilities, gained from their

experiences to give customers satisfaction in the services they are offering.

3.6 Promotion Strategy

Chill SPACE advertising is made up of membership, referral, and seasonal promotion.

 Membership Card Promotion – CHILL PERKS empowers the owner a 10%

discounts every visit.

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 Referral Promo – This promotion would be apply to our health care provider, for

every 15 recorded referrals that he or she would be done every month, is

equivalent to acquisition of a free Swedish massage.

 Seasonal Promo – The limited packages would be offer on every special

occasion including Valentines, graduations, and the like.

Pricing Strategy

Chill SPACE will make their prices more attractive to consumers without lowering the

price this will help to maintain the price while making it more attractive. It relies on the

nature of human psychology to make more attractive to consumers. We will based on the

notion that human are not perfectly national and the certain price are more attractive than

others for reason beyond simply being lower.

3.7 Marketing Program

Owners will be responsible for marketing Chill SPACE through ads channels. The

general manager will be responsible for assisting with the implementation of alliance

advertising partnerships. The advertisement budget was 15, 000 for the first year.

Advertising will begin one week prior to opening.

Internet

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Chill SPACE will provide a comprehensive website in order to help visitor or potential

customers look and find the best massage service that we have in which will meet their

specific needs Ability to have an appointment booking will be one of the main function

of this. In addition, Chill SPACE will establish social media sites to catch the attention of

much broader potential consumers, which enable them to inform the existence our

business, spa and café. This will help build direct connections to the customers through

sharing and expressing their remarkable experience on Chill SPACE.

Alliances

Since, Chill SPACE offers a customized massage, we will place brochure within the

offices of our medical referral clients such as an OB-Gyne Clinic, including Twin Angels

Clinic. We will also implement mutual perks with any business with which we share

common business goal. Chill SPACE will be dealing with hospitals nearby the

establishment.

4.0 Financial Statement

Source of Capital Amount

Nicka Cortez 214,285.714

Danica Suarez 214,285.714

Joy Ariza Mendoza 214,285.714

Jan Rae Agapito 214,285.714

Ira Mae Buenaventura 214,285.714

Mark Albert Jao Lara 214,285.714

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TOTAL CAPITAL 1, 500, 000

Start Up Expense

Building Amount

Renovation 120, 000

Rent (1 mo. Advance, 1 mo. Deposit) 60, 000

TOTAL Start Up Expense 180, 000

Capital Equipment Amount

Equipment 42, 983

Furnitures and Fixtures 184, 555

CR Equipment 38, 780

TOTAL Capital Equipment 266, 318

Administrative Expense Amount

Utility Installations 20, 000

CCTV 17, 500

Internet 2, 000

Legal Requirements 16, 700

TOTAL Administrative Expense 56, 200

Advertisements Expenses Amount

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Printouts 5, 000

Signage 1, 500

Website Set up 5, 759

TOTAL Advertising Expense 12, 259

Opening Inventory Amount

Pastry Supplies 6,320

Oil Supplies 7,520

Coffee Supplies 8, 500

TOTAL Opening Inventory 23, 440

TOTAL START UP EXPENSE 538, 217

WORKING CAPITAL 961,783

4.1 Breakeven Analysis

Break-Even Analysis

Monthly Units Break-Even 5,590.76

Monthly Sales Break-Even 39,427.2

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Average Per Unit Revenue 249.61

Average Per Unit Variable 104.73

Cost

Estimated Monthly Fixed 5,328

Cost

4.2 Sales Forecast

Sales Forecast

2019 2020 2021

Massage 750,288 787,802.4 866,582.64

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Outcall 403,200 423,360 465,696

Manicure / Pedicure 266,112 279,427.6 307,370.36

Retail Product - Pastry 113,260.8 118,923.84 130,815.40

RetailProduct - 157,116 164,971.8 184,468.98

Beverage

Total Sales 1,689,976.8 1,774,485.64 1,954,933.38

Direct Cost of Sales 2019 2020 2021

Massage 407,304 427,669.2 470,436.12

Outcall 294,240 308,952 339,847.2

Manicure / Pedicure 157,056 164,908.8 181,399.68

Retail Product - Pastry 75,840 79,632 87,595.2

Retail Product - 102,000 107,100 117,810

Beverage

Subtotal Direct Cost of 1,036,440 1,088,262 1,197,088.2

Sales

4.3 Expense Forecast

Marketing Expense Budget

2018 2019 2020

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Website 27,759 24,000 24,000

Printed Materials for Ads 15,000 5,000 6,000

Total Sales Marketing 42,759 29,000 30,000

Expenses

Milestones

Chill SPACE provides estimated amount needed to cover and start up expenses and
operational expense for the first month.
Milestones

Milestone Start Date End Date Budget

Marketing Plan Completion 01/01/18 03/19/18 0

Renovation 02/01/18 03/01/18 50,000

Website Completion 02/15/18 03/15/18 5,759

Logo design 03/17/18 03/18/18 0

Advertising for Opening 03/25/18 06/30/18 10,000

Utility installation 05/01/18 05/15/18 s39,500

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Grand Opening 07/01/18 07/01/18 0

Totals 105,259

Value Proposition

Chill SPACE value proposition is that we will bring a unique mode of relaxation and

fulfillment to our community. When people are relaxed, comfortable and happy, they

have the ability to work harder concentrate better, feel physically, emotionally and

mentally balanced and give that happiness back into their homes, workplace and

community. Simply put, our value proposition is that we help our community become a

better place to live and work

Strategy and Implementation

1. Emphasize quality, originality and dependability of service. We will differentiate

ourselves from our competitors by offering a staff of practitioners who are not

only certified in their professions but will be trained in understanding the

dynamics of individual energy systems so as to maximize the connection to their

client and more easily meet the needs of clients.

2. We will provide a unique atmosphere from the name to the ambiance of our spa

and café, Chill SPACE will distinguish itself as a completely trust worthy and

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soothing setting where customers can enjoy being pampers and escape the stress

of their every day life.

3. Build a community relationship oriented. We will focus on strengthening the trust

of our customer based and providing not only services but information that will

aid everyone in the progression of obtaining a balanced and healthy lifestyle.

Management Summary

The management philosophy of Chill SPACE is based on respect for each of our fellow

employees, respect for every customer, individual responsibility. Chill SPACE’s success

is dependent on the warmth and uniqueness of its atmosphere, which is generated by a

fun loving and caring employee. The management would be composed of the major

investor that would be considered as owner and general manager.

Personnel Plan

Massage service provider consists of 10, all licensed contractual therapist and get paid on

commission basis. Seven of them are allotted to performed specialized massage services

including prenatal and sports massages and the remaining would do the rest of the

services including the manicure, pedicure and quick massages. One regular receptionist

would be hired he or she would receive compensation every week. And the last would be

the barista that would be incharge in the café.

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Operating Hours

Time Day

10:00 am – 10:00 pm Sunday

2:00 pm – 10:00 pm Monday

12:00 pm – 10:00 pm Tuesday

12:00 pm – 10:00 pm Wednesday

12:00 pm – 10:00 pm Thursday

12:00 pm – 10:00 pm Friday

10:00 am – 10:00 pm Saturday

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Service Menu

Body Works

Duration

Massage Services 60 min 90 min 120 min

Swedish Massage 299.00 459.00 599.00

Sports/Deep Tissue Massage 349.00 549.00 699.00

Prenatal Massage 349.00 549.00 699.00

Indian Head Massage 299.00 459.00 599.00

Reflexology 299.00 459.00 599.00

Additional Services

Manicure 99.00

Pedicure 99.00

Change Polish 49.00

Branded Polish 59.00

Repair Polish 49.00

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Retail Products

Pastries Prices

Vanilla Cupcake 30.00

Chocomoist Cupcake 36.00

Fruitcake 49.00

Chocochip Cookie 13.00

Brownies 25.00

Caramel Bar 25.00

Retail Products

Beverages Prices

Barako Coffee 49.00

Coffee Americano 63.00

Coffee Latte 63.00

Cafe Machiato 63.00

Cappuccino 63.00

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Floor Plan

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Location Map

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