Sunday, 10 July 2016

Business Plan For Launching Spa in California

Business Plan

For Launching Spa & restaurant In California!



Table of Contents
Executive Summary 3
General Company Description 4
Product & Services 6
SWOT Analysis - Restaurant 17
SWOT ANALYSIS - Massage 18
RISK Analysis 19
competitors 20
marketing program 21
business model 22
Sales strategy 24
General strategy 25
business excellence model 26
brand strategy 27
Strategic initiatives 28
Appendix 29




Executive Summary

Massage :
 As per our study Mount View California has Good per capita income & is definitely rich market segment to focus on .
·      Not many competitors offering the bouquet of Massages & Spa services. None of them are in accident or health related massages.
·      Not many sell Spa related products sold in California. People use online tool to order spa related products.
·      Membership cards will sell like hot cake & emphasis should be on selling membership cards.
·      Revenue expected in year 1 is 652173$ with 3% growth YOY.
·      Profit Margin is 10-15% which is 65217$ to97826$/annum. Monthly it comes to 5000$ to 8152$
·      



Restaurants:
·      20 Restaurants in Mountain View area.
·      Not many offering Authentic food because large base is American followed by Asian.
·      Pricing Of other restaurant in the area is low hence there is scope of improvement in pricing.
·      Good per capita income of residents. Mountain View has rich community therefore focus on excellence & technology is must.
·      Revenue Expected in year 1 is 1430070$ with 5% growth YOY.
·      Profit Margin is 6% which is 8,000$/month.
Synopsis
“Since we are catering to rich & upper middle class, Quality & excellence will be key drivers. New Spa concept should be key focus Area. The detailed new spa concept is mentioned in Product segment“



Restaurants & Massage cater to different segments hence should be launched under different brands. They should not be under one umbrella brand. Restaurant is mass product, Massage is specialized product caters to rich middle class.


General Company Description

The Company plans to invest in the personal rejuvenation called spa treatment and focusing on Consumer Wellness. Healthy People Healthy Mind Healthy Country !
Mission : Our goal entails building enduring & rewarding experience for consumers & community by providing best of services in health domain through knowledge wellness & superior service . To become the most preferable brand in beauty, comfort & knowledge using personalized attention & well trained staff.
Company Goal & Objectives :      
Company Goal is to become number 1 preference in wellness which includes Health & Spa domain by offering best services through innovation, quality & leadership. Objective will be achieved by creating 100 million happy satisfactory consumers by end of  2017. Our consumers will be our brand advocates.
We plan to achieve the objective by concentrating on 3 points
       I.            Advertising
    II.            Training
 III.            Technology
Advertising –
Target Customer :  Our target customer is
1.       Youth /Female
2.       Patients with backache
3.       Travelers/holidaying couple
4.       Corporate
We have separate plan to target each segment that we have detailed out in Marketing Plan & Operational Plan.
Advertising : 
1.       Above The Line :
a.       Tv
b.      Radio
c.       Print Media
2.       Below The Line
a.       SMS
b.      USSD
c.       Mobile In app
d.      Mobile Advertisement
3.       Social Media Marketing
a.       Facebook
b.      Twitter
c.       Google+
d.      Instagram
e.       Google Ad word- SEO Marketing
f.        LinkedIn
g.      Whatsapp
h.      Tumblr
i.        PinBoard
j.        Blogs
Training :-
We plan to train our staff with our in house training expertise focusing on


Hotel Restaurant

·          Customer Empathy
·         Guest Satisfaction
·         Handle the guest professionally
·         Restaurant Etiquettes
·         Taking Bookings
·         Greeting & Seating Direction
·         Serving Of Food
·         Clearing during service
·         Billing -Dealing with Payments
Clearing following service 
Massage Professional
  • ·       USDE, COMTA,NACCAS,ACCSCT or ABHES credited training program
  • ·       Educating staff to understand customers about their needs &  the reason of visiting spa/salon & suggest or plan wellness program accordingly
  • ·       Teaching Anatomy & Physiology
  • ·       100+ hours of hands on training
  • ·       Learning Business Tools
  • ·       Professional Ethics
  • ·       Basic First Aid
  • ·       Equipment Training
  • ·       Health focused guest experiences
  • ·       Preparing the customized program for High Network Individuals “ Wellness On the Go”
  • ·       Personalized Spa Menu


Technology
  • ·       Using Technological Tools to get maximum leads which can be converted to sales
  • ·       Using Technology maintain database of customer & offer discounts & services
  • ·       Launch applications which can be used for  massage appointment.
  • ·       Using Technology capture the customer feedback & ensure best quality service maximizing customer satisfaction

Why SPA/Salon Services

The core objective of massage is stress reduction & get into mind body connection. Key components of massage is breath work, guided visualization, the body scan ( where attendant is brought to every part of body & the move of therapist hands)
Spa & Salon Services are being used by rich middle class because People are health conscious & want to remain happy. They lead a stressful life & want to get rid of disease called “stress”. People are enrolling for  program which can be done from anywhere & there is new term in the industry called “ Mindfulness “. Going forward we are going to understand what is Mindfulness & why its important.

What is Mindfulness

Mindfulness can be defined as using the brain or relaxing brain in such a manner that the body’s stress response is activated less frequently. It involved mental exercise which requires voluntary attention & bodily awareness as well as particular manner of observation. The exercise which are defined under mindfulness are brain relaxing exercises & they physically restructure the brain in subtle ways which result in profound improvement in health & quality of Life.

Why People are enrolling for Mindfulness
Practicing mindfulness is quickly becoming one of the healthiest & happiest  ways to live. By reliving the frequency & effects of stress mindfulness reduces the risk of developing the disease which account for vast majority of medical mortality. It also has ways of cultivating appreciation of life. People are healthy & contribute more to healthy life. It also has ways of cultivating appreciation for life & practitioners are naturally happy as compared to the people who doesn’t practice Mindfulness. Beyond the health & psychological benefits mindfulness is a tool to breakfree from bad habits & forming good habits which can be termed as developing invaluable asset. We all have certain lifestyle. Any change in the lifestyle requires lot of inner motivation & its not easy to change a lifestyle which we have been leading for ages. Therefore we can say that its not easy to adopt mindfulness as our body is adopted to certain kind of lifestyle & mindfulness requires change of lifestyle. There is saying old habits never die. Its incredibly easy to fall back into old habits when trying to change someone lifestyle. With the technique call Mindfulness these habits can be further broken down at the deepest level. This technique slowly & steadily helps improving the habits which hampers your daily regime into new habits which releases stress & makes you more relax & you lead a relaxed happy life ! If you are happy then you find happiness everywhere ! That’s the motive of the technique “Mindfulness” - Spreading Happiness.

Why Stress Is Bad

Let’s first understand why we feel stressed. The body has 2 “autonomic” or “involuntary “part to its nervous system. One is called the sympathetic nervous system (SNS) which is responsible for  the fight or flight reaction. The other is parasympathetic nervous system which promotes rest & digest physiology. There are 2 general hormones in the body. Anabolic hormones are growth promoting. They encourage body to use energy to construct molecules for restoring & rebuilding the body. Catabolic hormones inhibit growth. They encourage body to break down molecules & release energy for use in their processes. Psychological & physical stress activates the SNS. Chronic or frequent SNS activity causes the ratio of anabolic & catabolic hormones to decrease anabolic hormones. This shift in hormones basically changes the physical structure of DNA. In the body such that lifespan of each individual cell becomes shorter. This lead to whole host of health problems- Clogged arteries, health attacks, calcifies heart valves, insulin resistance, diabetes, obesity & cancer to name few.

How do we Release Stress

The stress arises from the physical & mental condition that surround us & within us. The philosophy of mindfulness explains that stress arises from physical & mental condition & to release stress we must exercise or spend time with ourselves. There are many ways to release stress. One of the most preferred ways is to use Spa services. There are New entrants in the area of wellness & which helps to release stress are
·       Forest Therapy
·       Medical Marijuna
·       Canabis + Spa Treatment
·       Ganja Yoga
·       Rasul Rooms & Mud rising
·       Sand Baths
·       The Gritty Spa
Forest Therapy : Forest Therapy can be described as “Walk In The Woods”. Forest Therapy is famous in Japan, Finland & Korea. Now it is slowing taking pace & is becoming popular in United States. It is like coming to the nature & taking walk in the nature. Forest therapy can be used as medicine for mind & body offering stress reducing, immune boosting benefits that you simply cannot get anywhere. It is giving framework for experiencing the forest in a new way. With meditation the mind becomes stress free.
For stressed-out workers, this may someday be a doctor’s prescription: Walk around in the woods.
Scientists in Japan have been learning a lot in recent years about the relaxing effects of forests and trees on mental and physical health. Based on their findings, some local governments are promoting “forest therapy.”
Experience shows that the scents of trees, the sounds of brooks and the feel of sunshine through forest leaves can have a calming effect, and the conventional wisdom is right, said Yoshifumi Miyazaki, director of the Center for Environment Health and Field Sciences at Chiba University.
Japan’s leading scholar on forest medicine has been conducting physiological experiments to examine whether forests can make people feel at ease.
One study he conducted on 260 people at 24 sites in 2005 and 2006 found that the average concentration of salivary cortisol, a stress hormone, in people who gazed on forest scenery for 20 minutes was 13.4 percent lower than that of people in urban settings, Miyazaki said.
This means that forests can lower stress and make people feel at ease, he said, noting that findings in other physiological experiments, including fluctuations in heart beats and blood pressure, support this conclusion.
“Humans had lived in nature for 5 million years. We were made to fit a natural environment. So we feel stress in an urban area,” Miyazaki said. “When we are exposed to nature, our bodies go back to how they should be.”
Taking a walk in a forest, or “forest bathing” as it is sometimes called, can strengthen the immune system, according to Li Qing, a senior assistant professor of forest medicine at Nippon Medical School in Tokyo.
Li conducted experiments to see whether spending time in a forest increases the activity of people’s natural killer (NK) cells, a component of the immune system that fights cancer.
Therefore we conclude that Forest Therapy is one of the best ways to reduce stress & lead a happy & healthy life !

Medical Marijuna
Medical cannabis, or medical marijuana can refer to the use of cannabis and its cannabinoids to treat disease or improve symptoms; however, there is no single agreed upon definition. The use of cannabis as a medicine has not been rigorously scientifically tested, often due to production restrictions and other governmental regulations. There is limited evidence suggesting cannabis can be used to reduce nausea and vomiting during chemotherapy, to improve appetite in people with HIV/AIDS, and to treat chronic pain and muscle spasms. Its use for other medical applications, however, is insufficient for conclusions about safety or efficacy.
Short-term use increases the risk of both minor and major adverse effects. Common side effects include dizziness, feeling tired, vomiting, and hallucinations. Long-term effects of cannabis are not clear. Concerns include memory and cognition problems, risk of addiction, schizophrenia in young people, and the risk of children taking it by accident.
The Cannabis plant has a history of medicinal use dating back thousands of years across many cultures. Its current use is controversial. The American Medical Association, the Minnesota Medical Association, the American Society of Addiction Medicine, and other medical organizations have issued statements opposing its use for medicinal purposes. The American Academy of Pediatrics states that while cannabinoids may have potential as therapy for a number of medical conditions, they do not recommend it until more research is done. They, along with the American Medical Association and the Minnesota Medical Association, call for moving cannabis out of DEA Schedule I to facilitate this research.
Medical cannabis can be administered using a variety of methods, including liquid tinctures, vaporizing or smoking dried buds, eating cannabis edibles, taking capsules, using lozenges, dermal patches or oral/dermal sprays. Synthetic cannabinoids are available as prescription drugs in some countries; examples include: dronabinol and nabilone. Recreational use of cannabis is illegal in most parts of the world, but the medical use of cannabis is legal in certain countries, including Austria, Canada, Czech Republic, Finland, Germany, Israel, Italy, the Netherlands (where it is also legal recreationally), Portugal and Spain. Australia is currently in the process of passing a law which would allow the use of marijuana for medical and scientific purposes. In the United States, federal law outlaws all cannabis use, while 25 states and the District of Columbia no longer prosecute individuals for the possession or sale of medical marijuana, as long as the individuals are in compliance with the state's medical marijuana sale regulations. However, an appeals court ruled in January 2014 that a 2007 Ninth Circuit ruling remains binding in relation to the ongoing illegality, in federal legislative terms, of Californian cannabis dispensaries, reaffirming the impact of the federal Controlled Substances Act.
Canabis + Spa Treatment
Here’s nothing like a day at the spa. There are only a few things that can beat a 90-minute massage. That is, of course, unless that massage is kneaded in using cannabis-infused lotions.

With the legalization of recreational marijuana use in Colorado, many industries have capitalized on the evolving needs of consumers in the state. Steve Weiner, co-owner of Colorado’s Restoration Wellness Center & Spa conducted an interview with Spa Weekly regarding their use of marijuana topicals in massage treatments.
The use of topical cannabis products is a recent addition to their list of services, which include traditional facials and sauna wraps, as well as specialty treatments such as laser teeth whitening, chemical peels and botox.
“A lot of those topical medications might be used for fibromyalgia and cancer patients,” Weiner said. “Being in Colorado, we realized the need.”
While he notes Restorations is not a dispensary, it does offer time with a doctor that performs evaluations to determine whether a patient qualifies for medical marijuana. If a patient is approved, they may purchase infused-topicals from the spa or bring in their own products to include in a massage with one of Restorations therapists. There is also a dispensary that is unaffiliated with Restorations that is conveniently located on the first floor of the building.
Incorporating cannabis into massages is just one of many ways the spa industry benefits from the legalization of marijuana. Another Colorado-based company, Mary Jane’s Medicinals, makes a cannabis tea bath ball that users can purchase at dispensaries and bring home for a do-it-yourself marijuana spa experience.
The Heavenly-Hash Bath is presented in a large cheesecloth ball which contains lavender, chamomile, peppermint, grape seed oil, dead sea salt, Epsom salts and cannabis leaves to create a sense of calm and alleviate any anxiety or stress.
Interested in recreating a cannabis spa treatment at home? Try one of these recipes that incorporates cannabis oil that can be purchased at a dispensary or made at home using a recipe like the one found here.
There is some debate on whether oil applied topically can reach the central nervous system and therefore cause psychoactive effects. To avoid this possibility, try hemp oil. These baths can be taken at home as well. Showcasing how it can be taken at home which can be taught to consumers.
Cannabis Bath Soak
Ingredients
2 cup Epsom salts
5 tablespoons cannabis oil
10 drops tea tree essential oil
10 drops peppermint, eucalyptus or lavender essential oil
1 large cheesecloth
1 rubber band
Directions
Step 1: If cannabis oil is hardened, warm on low heat over the stove until melted. Allow the oil to cool slightly without re-solidifying.
Step 2: In a large bowl add Epsom salts, tea tree oil and chosen essential oil and mix well with a large wooden spoon. Once thoroughly mixed, fold in the cannabis oil and mix again.
Step 3: Open the cheesecloth on a counter, so it is laying flat. Carefully spoon the mixture into the cheesecloth. The mixture may leak slightly through the cloth. Pull the edges into the center and bind with the rubber band.
Step 4: Run a warm bath and place the ball in the water. Soak in the bath for at least 20 minutes. For an extra effect gently rub the ball on your skin in a circular motion, moving from the extremities toward the heart to exfoliate the skin and help the mixture penetrate deeper.
Bonus: You may cut this recipe in half to create a relaxing foot soak. Just use a wide bowl and pour the mixture directly into it. Rub your feet gently around on the mixture to exfoliate and help the oils penetrate your skin.

Cannabis-Infused Facial
While many dermatologists will gasp at the idea of using cannabis to improve the appearance of our skin, cannabis is known to reduce inflammation and some researchers have reported that THC may help protect against dermatitis.
Cinnamon and nutmeg are known for their anti-inflammatory qualities which may boost the effectiveness of the anti-inflammatory properties of cannabis oil. The slight grainy quality of this mixture will also exfoliate the skin.
Ingredients
1 tablespoon of coconut oil
½ tablespoon of cannabis oil
1 teaspoon of cinnamon
1 teaspoon of nutmeg
Directions
Step 1: Mix all the ingredients in a small bowl.
Step 2: Rub gently on the face in a circular motion (it smells amazing).
Step 3: Run a clean washcloth under warm water and wring out, apply it to the face to act as a mini steam.
Step 4: Leave the mixture on the skin for up to 30 minutes, applying a warm washcloth to the face as wanted.
Step 5: Re-wet the washcloth and rinse the face, rubbing the washcloth in very gentle circular motions.
Bonus: Use any remaining mixture on your hands by gently rubbing them together as if you were washing them. Continue for up to five minutes and then rinse.

Ganja Yoga : Ganja Yoga for relaxation, pain-relief, well-being, community, and the cultivation of inner peace. I am a certified hatha yoga teacher with twenty years of practice. Since 2009, I've taught thousands of people in The SF Bay Area, as well as Portland, Toronto, Vancouver,LA,SanDiego,andCostaRica.
Less physically-intense than most yoga, Ganja Yoga is high-quality instruction, based on mindfulness and good alignment for injury-prevention, designed for any body. I love working with beginners, as this form of yoga is especially inward and non- competitive. I love helping people feel comfortable as they explore the internal practice of yoga. Our community is incredible! 

Rasul Rooms & Mud rising
A trained rasulr_spatherapist will advise guests which therapeutic products (mud, medicinal earth etc.) to use for the body mask which will be applied during this heat treatment. Guest will normally enter the Serial from an ante-Chamber. On entering the preheated air is dry. After the application and drying of the muds, steam and herbal essence are injected into the chamber and the temperature will rise to around 45ºC. The mask will become supple again.
Guests, with circular movements, will massage their body and gently begin to perspire as the steam increases. This phase facilitates the exfoliation of the dead skin cells and elimination of toxins stored in the body. After the programmed time the herbal steam will be cleared in seconds and guests can shower before their resting time. Also included in the mud Chamber are 6 individual Body Jets and a Kneip hose, all located in each personal heated alcove

Sand Massage
Sand massage had been designed from customers specific needs in mind. The blending of Thai, Swedish, and Hawaiian techniques are applied in the massage to let go of the stress, stimulates blood circulation, and improve energy flow. It is a work of art to balance your senses with a medium to strong massage.
The Gritty Spa
The gritty spa is day time spa given in a sprcial tub made up of sandpaper.  The Gritty Spa is an Excellent therapy for relaxing body.









Products & Services

New Salon Services

  1. ·       Personalised Spa Menus
  2. ·       Wake up light Therapy
  3. ·       Air Purification
  4. ·       Aromatherapy
  5. ·       Vit C enfused showers

Most Popular Massages in United States

·       Swedish Massage Therapy - This is also known as Swedish Massage or simply massage therapy.
o   Use massage lotion or oil
o   Use long smooth strokes, kneading, and circular movements on superficial layers of muscle
o   Very relaxing & one of the most opted massage in United States
·         Aromatherapy Massage – This massage is used for relaxing, energizing, stress-reducing, balancing life.
o   Specialized oils called Essential Oil are used in massages.
o   This massage is particularly suited to stress-related conditions or conditions with an emotional component
o   Stress and stress-related conditions such as insomnia
o   Headache
o   Digestive disorders
o   Premenstrual syndrome (PMS)
o   Back pain

·       Hot Stone Massage –This massage is used for body pain, to warm and loosen tight muscles and with use of stone ,balance energy centers in the body.
o   Heated smooth stones are placed on certain parts of body
o   In this massage therapist holds stone & apply gentle pressure with them.
o   This massage is preferably given to people who have muscle ache
o   Provides relief from pain associated with fibromyalgia, arthritis, carpal tunnel syndrome and other chronic conditions
o   Decreases pain and muscle spasms
o   Reduces chronic stress and tension
o   Increases flexibility in joints, aiding in easier mobility and movement
o   Relieves pain and tension created by strained and contracted muscle
·         Deep Tissue Massage
o   This massage is used as cure for chronically tight or painful muscles, repetitive strain postural problems or recovery from injury.
o   This massage is used for massaging deep layers of muscle & connective tissue.
o   The technique to do this massage involves slower strokes or friction techniques across the grain of the muscle.
o   People often feel sore for one or two days after deep tissue massage.

·         Shiatsu
o   This massage is used for relaxing the body & mind. A kind of stress reliving massage
o   This massage is form of Japanese bodywork. It uses fingers in rhythmic sequence on acupuncture meridians.
o   The massage is used on points on body for releasing stress.
o   Restore and maintain the body’s energy, especially helpful to those suffering from fatigue and overall weakness
o   Improves circulation
o   Reduces stress and tension as well as anxiety and depression
o   Relief from headaches
o   Promotes healing from sprains and similar injuries
o   Helps bring relief to arthritis sufferers
o   Reduces problems with stiff neck and shoulders as well as backaches (including sciatica)
o   Coughs, colds, and other sinus and respiratory problems
o   Helps those dealing with insomnia
o   Aids in treatment of such various things as digestive disorders, bowel trouble, morning sickness, and menstrual problems
·         Thai Massage
o   Thai massage is like doing yoga. This massage is used as an cure for stress reliving & helps in making body more flexible. A good massage after hitting the gym.
o    
o   This massage aligns the body energy using gentle pressure on specific points.
o   This massage is done with compressions & stretches.
o   Help detoxification of the body and boost immune system
o    Increase blood circulation, lower blood pressure
o    Good for muscle relaxation, increase flexibility in your muscles, increase mobility
o    Improve breathing
o    Improves posture, balance, corrects body alignments and dissolves energy blockages
o    Improves athletic performance
o    Help arthritis and back pain,
o    Help tone the body, strengthen joints and fight diseases, including chronic joint problems
o    Prevents illnesses and alleviates degenerative diseases
o    Slows the aging process
o   Improve your outlook towards life; builds an emotional balance
o    Help with concentration and creativity/ Mind and body concentration
o    Clear and calm your mind
o    Help you gain mental clarity
o   Reduce and relieve stress and anxiety
o    Help people boost their inner energy levels
o    Develop discipline and self-control
o    Achieve better health, increases health and vitality.
o    Raise the energy level and stamina
o    Build internal power (and creates a natural confidence)

·         Pregnancy Massage
o   This massage is also called prenatal massage. This massage is very popular among the expectant mothers.
o   Pregnancy massage is used to reduce stress, decrease swelling, relieve aches and pains, and reduce anxiety and depression
o   This massage can be customized to individual needs.
o   Therapists know the proper position & support the women’s body during massage.
o   Headaches can be relieved by massage focusing on the head, neck and shoulders. In addition, maintaining optimal levels of stress relief through massage reduces the chances of migraines or tension headaches by relaxing trigger points and muscle spasms.
o   Muscle tension created by carrying the extra weight of a baby can be relieved by encouraging blood flow to the afflicted areas. This provides more nutrient-rich oxygen and also increases the flow of lymphatic fluid, which sweeps away toxins and metabolic waste.
o   Fatigue, backaches, leg cramps and swelling/edema can all be relieved through various types of massage for pregnant women.
o   The ordinary aches and pains of pregnancy are countered by the release of serotonin, your body's natural anti-pain chemical, which is stimulated by massage
·         Reflexology
o   Reflexology is also called foot massage but it’s more than foot massage.
o   This massage is done by applying pressure to certain points on the foot that corresponds to organs & systems in the body.
o   This massage is very relaxing & is useful for the people who stands on their feet the whole day. E,g sales guy.

·         Back Massage
Back massage is done to reduce body pain.
o   This massage is usually for 30 minutes & is focus area as massage say “ Back portion of the body”
S.No.
Name Of the Massage
Duration
Target Customer
Expected No’s
Cost
Revenue
Swedish Massage
30 minutes to 60 minutes
All group except patients. General massage
657
$45/30 min
$85/60 min
$400 series of 6
17,739$

22,338$
2.
Aromatherapy Massage
30 minutes 90 minutes
Patients having constipation/Cancer
55
$45/30 min
$69/90 min
$450 series of 6
1485 $

1518$
3.
Hot Stone Massage
90 min
Patients having arthritis
55
120$/90min
$750 series of 6
6600$
4.
Deep Tissue Massage
80 min
Serves Athletes &patients with chronic pain
11
110$/80min
Series of 6 550$
1210$
5.
Shiatsu
30 minutes to 90 minutes
Patients with Headache & muscle sprain
75
40$/30min
100$/90min
Series of 6 500$
1800$
3000$
6.
Thai Massage
60 minutes
General
110
$35/60min
Series of 6 180$
3500$
7.
Pregnancy Massage
90 minutes
Expectant Mothers
55
150$ for 90 min
Series of 6 720$
8250$
8.
Reflexology
30 minutes to 60 minutes
People who stands on feet whole day
51
$30 for 30 minutes
55$ for 90 minutes
612$

1650$
9.
Back Massage
60 minutes
General
25
$60 for 60 minutes
1440$















Revenue Synopsis
Revenue  from Individual Massages/annum
71189$
Revenue from Membership ( Combo Pack of six massages)/annum
580984$
Total Revenue/annum
652173$

Some Facts
1.     There are 22,346 spa’s in United States
2.     3 visit/spa/day in United States
3.     Total Revenue/Spa/day is 1786$
4.     Total revenue/spa/day/customer is 595$
5.     Average spent by consumers on massages is 595$.
Mountain View California Stats
6.     There are 9 massage/Spa parlor in Mountain View California.
7.     The total population of mountain View is 77,846
8.     Resident in California consists of
a.     White – 44.8%
b.    Asian – 28%
c.     Hispanic -  21%
9.     The Average Income/annum  is
a.     White -100k $
b.    Asian - 150 k $
Stats
This clearly shows market to focus in coming years is United States, Japan, Canada, France & United Kingdom


This clearly shows market to focus in coming years is United States, Japan, Canada, France & United Kingdom



The above chart says that primary reason for going to Spa is to relax & reduce stress hence all communication to consumers should focus on reducing stress &  educating about Wellness.


The pricing of launching Spa services should be within the spent shown in the table above. For United States its 457$/user so pricing of spa & saloon services should be within 457$/user.


Everyone likes to look beautiful. Launch spa products & pricing of spa products in us should be 80$.

Stats on American Population
Total Population
White
Black
Mixed
Asian
Either American Indian or Alaska Native
Either Native Hawaiian or Other Pacific Islander
223553265
38929319
28116441
14674252
2932248
540013
%age
(72.41%)
(12.61%)
(9.11%)
(4.75%)
(0.95%)
(0.17%)







SWOT Analysis - Massage















Risk Analysis













Competitors
S.No.
Name Of Spa
Specialisation
Price
1
Aruna Spa
Massage, Waxing
75$/40 min
110$/60 min
135/80 min
190/2hrs
Series of 3 -375$ /80 min
2.
Mind Of Beauty Day Spa
Massage, Waxing, Facial
$85 for 30 minutes
$125 for 60 minutes
3.
Jolie Madame Pro Nails
$85 for 30 minutes
$125 for 60 minutes
4.
Restore Body & Mind
Massage,
Series of 3 -375$ /80 min
For more spa please refer to https://www.google.com/#q=239%20Palmer%20Ave%2C%20Mountain%20View%2C%20CA%2094043%20spa%20%26%20massage&rflfq=1&rlha=0&rllag=37398910,-122102615,714&tbm=lcl&tbs=lf:1,lf_ui:2&rlfi=hd:;si:




Global Competitors:
MII Amo – A destination spa
One Wellness & Spa
Mirawal
Barefoot Spa’s
Exhale mind Body Spa

Marketing Program

1.     Advertisement in Local News Paper
2.     Advertisement on Radio
a.     Massage /Salon taking customer advocates for spa.
3.     Focus on Paid Search which brings (70% of consumers)
a.     Focus on Keywords
b.    Focus on Key tag on websites
4.     In app advertisement
5.     Connect emotionally with consumers by tying up with charitable trust & launching “Wellness With A Cause” program
6.     Online subscription ( Discount on booking online & subscribing to newsletter)
a.     Discount on Subscribing to youtube videos & free videos on how to prepare spa bathing at home
b.    Installing app free with Spa card.
c.     Get Discount on booking via application.
d.    Like on Face book, Follow on twitter & subscribe to Spa videos & get money back on basis of points.
7.     Email Marketing – Discount on responding via E mail promotion
8.     Offer Maximum discount to SuperFans online ! Super Fans are the ones who advocates brand online.
9.     Follow the Community Program
a.     Where one gets discount on bringing neighbor or referring friend
b.    Gets discount on referring colleague
c.     Bring Family & get discount for 1 person. Bring 4 & get 10% discount.
10.                        Focus on 70% of Social Media Tools which consist of
a.     Facebook
b.    Youtube
c.     Twitter
d.    Instagram
The objective of Social Media Marketing is Engagement. More Engagement – better Brand Visibility - Good Brand Score
11.                        Health Focused Guest Programs
12.                        Wellness On the Go. – A digital diary which calculates calories & inform what to eat .
13.                        Tie up with Wellness branded hotels like Intercontinental group of Hotels, Kempton Hotels, Starwoods Eco chic Element hotels, Hilton worldwide
14.                        Tie up with leading hotels with concept called “ Wellness Check in “ which includes discounted massages/Spa , Salon Services
15.                        Freebies : Free Fitness gear , MP3 players & cruiser bike- a new healthy lifestyle cuisine plus.
a.     Free Videos of Well & Being program directed by Dr. Tierona Low Dog
16.                        Gift Package for birthdays, marriage & Anniversary !




Business Model
















Sales Strategy



Business Excellence Model
 




Brand Strategy






Strategic Initiatives





This pic says
1.       Focus on Learning & growth
2.       Build the franchise network. Grow your spa network
3.       Remember Customer value as at the end of the day it’s the customer who can take your brand to next level
4.       Reduce cost. Improve cost structure
5.       All the above activities will lead to profit margin which will further result into improved shareholder value.






Food Menu For Restaurant “Ghugni”
Important point
·         White people check whether other white people are having food in the restaurant. If they find other white people sitting in restaurant then they also go. Its like follow the crowd or going along with the crowd irrespective of food menu.

Food Menu consist of following ingredients


  • ·         Antioxidants
  • ·         Farmers Market – Authentic Food
  • ·         Organic Food



Food Name
% of people eating
Spaghetti
15%
Salad
5%
Tacos
5%
Chinese
5%
Chocolate
10%
Sushi
2%
Ice Cream
2%
Burgers
1%
SeaFood
5%
Italian
1%
Pasta
5%
Mexican
5%
Chicken
15%
Steak
5%
Pizza
19%



Top 10 Restaurants
1.       Cosme -  NY – Mexican Food
2.       Farmtable –Petersburg – American Food
3.       Giada – Las Vegas - Italian
4.       The Grey – GA - American
5.       Liquid Boston House – Boston-American
6.       Maude – Beverly Hills CA - American
7.       Momotoaro – Chicago – Japanese Food
8.       Monsieur Benjamin - French
9.       Pax Americana - America
10.    L’Espalier – Boston - French




Total Population
Below Poverty Line
Middle Class
Rich Class
308745538
46311830.7
(15%)
246996430.4
(80%)
15437276.9
(5%)
Spent on Restaurant Food & drinks
0
21$/day
25$/day
Total revenue/day ($)

2593462519
(50% of middle class*21$)
308745.54
(50% of high class*25$)
Total Restaurant (No’s)
662036.55



Revenue/Restaurant/day($)
3918



Men % contribution
9


Women% contribution
11


Age 18 to 29% contribution
15


Age 30 to 49% contribution
8


Age 50 to 64% contribution
9


Age 65+% contribution
8


Less than 30,000$/year% contribution
6


30,000$-75000$/year
11


75,000$per year
11






*50% of middle class spends 131$/week & rich class 180$/week on restaurant food.



Revenue Synopsis



Gross revenue/day ($)
3918


Gross revenue/annum ($)
1430070







SWOT Analysis - Food











Competitors

S.No.
Name Of Restaurant
Specialisation
Price
1
Cascal,
Latin , Spanish
21$-30$
2.
Xanh Restaurant
Asian Vietanamese
30$
3.
Vive Sol
Mexican, Latin
30$
4.
Scratch
American
30$
5.
Sakoon
Indian
20$-30$
6.
Amber
Indian
30$-40$
 





Marketing Program


1.       Advertisement in Local NewsPaper
2.       Advertisement on Radio
a.        Mexican, Indian & American advocates for restaurant.
3.       Focus on Paid Search which brings (70% of consumers)
a.        Focus on Keywords
b.       Focus on Key tag on websites
4.       In app advertisement
5.       Connect emotionally with consumers by tying up with charitable trust. & launching “Eat & Donate” program
6.       Online subscription ( Discount on booking online & subscribing to newsletter)
a.        Discount on Subscribing to youtube videos & free chef videos on how the food was prepared.
b.       Installing app free with Menu card.
c.        Get Discount on booking via application.
d.       Like on Face book, Follow on twitter & subscribe to Food videos & get money back on basis of points.
7.       Email Marketing – Discount on responding via E mail promotion
8.       Get Parking Free on Dining
9.       Offer Maximum discount to SuperFans online ! Super Fans are the ones who advocates brand online.
10.    Follow the Community Program
a.        Where one gets discount on feeding hungry child
b.       Gets discount on referring friend
c.        Gets discount on bringing friends.
d.       4 people & more for dining gets discount for 1 person. Bring4 & get 10% discount.
11.    Focus on 70% of Social Media Tools which consist of
a.        Facebook
b.       Youtube
c.        Twitter
d.       Instagram
The objective of Social Media Marketing is Engagement. More Engagement – better Brand Visibility - Good Brand Score


 






Appendix
https://www.tripadvisor.com/Restaurants-g32761-Mountain_View_California.html
https://en.wikipedia.org/wiki/List_of_U.S._states_by_educational_attainment
http://www.usda.gov/factbook/chapter2.pd
. http://www.statista.com/statistics/244616/number-of-qsr-fsr-chain-independent-restaurants-in-the-us/
http://www.gallup.com/poll/156416/americans-spend-151-week-food-high-income-180.aspx
https://en.wikipedia.org/wiki/Demography_of_the_United_States
http://www.forbes.com/sites/sageworks/2014/06/22/us-restaurants-margins/#451da75b1278



 

 

Wednesday, 15 July 2015

Developers - New Game Changers of App Store

"Software, Software, Software !" shouted the guy outside an IT Hub market in New Delhi. For a minute I was taken aback ! bcoz this kind of selling software's by yelling is not something which i have heard or have seen. so it was definitely a pleasant surprise. Curious as I m ,I went to the guy selling the software asked him whether he is aware about the software's he is selling. He handed over paper menu to me which has alphabetical list of all the software's starting from Adobe to Microsoft. What amused me is door to door selling of software's which we never imagined 5 yrs. back. With the growing penetration of internet and data connectivity, the day is not far off when internet will be commodity rather than luxury. This is good sign for all the people who are in Software segment.
 
 
 
 
 Human needs are changing and annually new needs are added. From the days when we had to wait for few months to get new connection to the days where we are buying software at the roadside, we can say we have come a long way.
 

 
So the question we should ask is -What is store for marketer ? Will this door to door selling  work for software industry ?. Of course it will work in India where we are used to buying stuff at the roadside be it fastfood like gol gappa or aaloo chaat. Can softwares be compared to fast-food ? yes to some extent as both are part of our daily need. From taking help to finish child homework to cooking tips to creating animated presentation we have been taking help of software's hence we can conclude that software are definitely part of our daily need and are consumed on daily need basis.
 
 
 
Needs are the essence of marketing. The key to software success, profitability and growth in a highly competitive marketplace is its ability to identify and satisfy unfilled consumer needs better and sooner than the competition. In the software scenario we can have many examples where a need of consumer was converted into a product and it was successful in the market. e.g when applications were being launched, many consumers were pissed off with the forceful selling and they preferred app store where they can have many buying options from free to try n buy to paid. All these lucrative pricing combining with the apps were the hot selling on the app store. The mistake which the app store guys did was giving the apps for free. Anything which is free is considered as product with zero value. Whatever comes easy is not sustainable is the common thought ! Being in app business my advice to all the stakeholders of app ecosystem (from OEMs to operators to developers) will be to realign the go to market strategy. Free usually is not good pricing. However I see bright future for the developers as they will be key to app delivery to end consumers. Customer satisfaction to creating product landscape, developers will be the game changers of app ecosystem. They will also decide the future of Operating System they want to work on. Developers forum of a operating system will decide the future of platform. In the current scenario there are many OS players in the market. The key to the success of these OS will be able to align with developers. More developers - More development on OS- More options to choose apps from - More consumers will buy the phone with OS giving maximum value. Are we saying here that apps will decide the future of OEM ? Yes to some extent as everything can be matched but not the service or value. Value creation is completely different ball game and are game changers of many industry. If OEM has exclusive tie up with developers and are giving more value in terms of apps then definitely consumers will be enticed to purchase a particular brand which gives more value. Ending the conversation with the conclusion that Apps are the future of mobile and developers are the creators of the future !   
 
  

Sunday, 26 October 2014

Google's Googly - Android One


“Bada Hua To Kya Hua Jaise ped Khajoor, Panthi ko chaya nahin phal lage ati door”

English translation “In vain is the eminence, just like a date tree, no shade for travellers, fruit is hard to reach.

These lines were taught to me when i was kid and i must confess that these lines had huge impact on me. These lines emphasize that we should shed our greed, selfishness, and insecure tendencies and should be willing to give and share. Once we help other with pure mind and soul we become blessings for others.

But Question of the day is in business do we really follow these lines? Answer is “No”. Let’s take example of one big company like Google and let’s evaluate their mobility business.  Google has Operating system called Android and they keep launching different version of operating system with funky names like kitkat, sandwich..etc.  No doubt that each version has more similarities and less differentiation. We can say each version is mirror image of version in itself with little icing.

One of their product Google app store is suppose to be household name among consumers. Thats what Google says! Is it? So lets ask question to our self “What is google app store”. For me it is simple aggregation of applications. There is no rocket science in that. Brainers are the ones who publish the apps as the apps flow, idea, conceptualisation and publishing are developers/publishers brain. Where is Google brain in that?  Fine let us be little kind to Google and say that they are the brain behind OS which controls 40% of world market.  So will they be able to retain their market position in future? Will it be successful in its future ventures?

App Ecosystem consist of three main stakeholders a) End Consumers b) Developers c) OEM’s

Lets analyze all stakeholder one by one.   

1.       End Consumer – First question which comes in mind with respect to end consumers is “what value add it brings for end consumer. The Obvious answer we have got from Google is “By emphasizing on vernacular apps “& “By launching low cost model devices with Android one “ Well if you think from end consumer point of view there is no difference between local app store and Google store. In fact local app store is any day better than Google store because of its localized, customized display of apps. Hence we can conclude that from end consumers point of view there is no value add from Google app store. End Consumers download app from Google store not because it brings value in their life but it is easily available on their mobile phone. In other words simply burned on their handsets. It’s just the convenience for end consumers not value add. We should not confuse between convenience and value add. With Google app store It just that end consumer does not have to type the extra link to get into app store. There is absolutely no consumer engagement, zero benefit from Google Store hence I personally would recommend to check out local app stores than Google as they are more focussed, customised and bring more value for consumers.

2.       Developers – An article published in the leading newspaper states that “95% of android developers are unhappy and their earning is as low as 200$/month. Developers are unhappy because there is no one to listen to their complains and absolutely zero support from Google. Google support is termed as one of the rudest support. They will never give any explanation or will give vague explanation and will terminate developers account without any proper reason. So if you have enmity with x developer, you should only know that developers app link or icing on the cake would be if you also know Google employee who handles app support & just share the link, Sit back and enjoy watching your enemy account getting terminated without any reason. If you are developer and your account is being terminated you would have got vague reason, Keyword stuffing, inappropriate content.. etc etc.. no further reason given as which keyword has caused the termination of account.  We can sum up all this melodrama of app store in three words “ Sic Business Tactics” But at the end of the day its Google which has deep pockets and best talent hence they show their muscle power to developers. Little do they know they if these developers come together and boycott Android completely they will be left nowhere. Google being big daddy forgets that such attitude and negativity among developers will only lead to destruction. Negative image of Google brand will only bring disliking among developers as well as end consumers because somewhere developers are also end consumers and pen is mightier than sword, Word of Mouth is stronger than marketing spend. If this continues then that day is not far away when Google will be on sale and we will ask "Any Buyers ?????????"

3.       OEM’s - Original Equipment Manufacturer like Samsung, Nokia, LG.. etc controls the integration with operating System like Android.  Since GSM is an open market hence we have many players in OEM space hence they are one of the main influencer of bringing OS to the end consumer. Recently Google had partnered with Micromax, Spice and Karbonn  to release Android One smartphones. With the launch of these low cost smart phones they offered 2 year software support. Do you think this handshake between local OEM’s and Google was success venture?  Did Android One handsets was successful in India ? No it was not. Android one smart phones were priced between $200 & $300. The estimate sales figure for Smartphone during festive season is generally reported 0.2 million units however as per the record Android One have reached only half to 1/3rd of the above number. One of the reasons of Android one failure is given to Google’s inability to explain the difference between Android and Android one. In spite of huge marketing spend by Google, they have failed to explain the consumers the difference between Android One device and regular android device. Is Android One a project that gives lighter version of Android. There is no clarity. Or in simple words is it the cheaper version of the main Android Handsets. Launching with Local OEM’s like Micromax, Karbonn and Spice it is quite evident that they have not placed Android One for premium segment. Their vision is to increase market penetration. In all this Marketing Gimmick they have failed to learn from Nano. Indian Consumers are not only intelligent but also smart enough to know where to get value for money. Each purchase by consumers in India is the end result of online and offline research. I am sure value for money doesn’t stand with combo of Android one + Micromax, Karbonn or Spice. And launching Cheaper version cannot be termed as innovation.

 

Summing up the above discussion and going by Google’s interaction with developers, end consumers we can conclude that Google’s Motto is “DO EVIL NOT GOOD”. Little do they realise that evil character whether in game, movie or life eventually die and is replaced by Good.

 

We are definitely looking forward for new OS by Samsung, and expansion of Windows OS. I personally feel that in coming years Windows will rule the Smartphone market and Nokia, Blackberry will retain its market share. Let’s end this article with these lines. “Future is Windows, Future is Nokia” After all Satya always win!!

 

PS: This write up is personal opinion of writer and is not influenced by any third party.

 

Sunday, 1 June 2014

Diary Of An Entrepreneur

Long time back Radhika completed her post graduate diploma. While finishing her post graduate diploma Radhika was offered to take Audit subject. ( Audit is given to those whose percentile is 7.0 and above and is usually taken outside the student’s core subjects) So she decided to take finance as subject.
The small introduction given above is to make you guys understand that Finance is the subject which interests everyone and trust me its not rocket science. Small shopkeeper to big corporate all deal in financial management. The beauty of this subject is that its basic is as simple as your elementary school basics.
Lets evaluate today’s scenario. In today’s scenario corporate deals with very basic question 1) What investment should they make 2) How should they pay back for those investments. The first question involves spending money. The second question involves raising it. Any entrepreneur will emphasize on increasing the valuation of their company. It’s very simple logic “Increase valuation” but not easy to achieve. It is like asking an investor “Buy low, sell high” It is one of the powerful statements and if achieved can make you millionaire or billionaire depending upon the valuation price at buying and selling. But million dollar question is “How to do it”

Investment and Financing decisions are separate. When an investment opportunity or project is identified, the entrepreneur evaluates whether the project is worth more than the capital required to undertake it. If the answer is yes then he or she considers how the project should be financed. But the separation of investment and financing decision doesn’t mean that the financial manager can forget about investors and financial markets when analyzing capital investments project.
So if you are an entrepreneur it is very important for you to analyze the way the capital is raised. If its the 1st level funding then you must check whether the investors and your goal are same or not. When you shake hands with the investor you should also clearly draw the line of involvement.  In other words whether the investor would be interfering in day today operation. If answer is yes then they should discuss the area of expertise and decide to work as team. Trust me its great feeling to have investor who can be involved in your day today operation as you get help in the form of mentor or few decisions (which you are not sure of!) You fail together and you pass together.
Usually investors are interested on ROI (return on investment) . While exiting business you can consider following options 1) Preference Share (certain percentage) after x years 2) Preference share with option to redeem at safety net price (Price can decided mutually) or convert the same into equity shares at prevailing value. In other words 1st preference could be IPO, 2nd preference could be secondary sales and 3rd preference could be buy back at net safety price.

Your exit strategy is as important as choosing you business partner. There should always be separation of ownership and management. If you are founder & running company as well then you should forget the tag of founder and work as normal manager. The separation of ownership and management has clear advantages. It allows share ownership to change without interfering with the operation of the business. It allows the firm to hire professional managers. The negative part of it is that it brings problem if managers and owners objectives differ. Dangerous part would be rather than attending to the wishes of shareholder managers may seek leisure or luxurious work. They may shun unpopular decision or they may attempt to build an empire with shareholders money.  Hence integrity is always an important criterion of hiring. Become man of value not man of success.
Concluding this write up in 9 financial problems you should never overlook
1)      What is Project Risk & what is net present value
2)      Incorrect Evaluation of Risk & returns
3)      Importance of exception to the efficient market theory
4)      How the Net Present Value is calculated
5)       Before investing what are the danger points of new securities and new markets
6)      How to resolve payout controversy in other words when to distribute dividends
7)      Value of Liquidity
8)      Wrong merger steps
9)      International difference in financial architecture.


Takeaway would be invest sensibly & in planned manner. Stay home, build the future of home managers as foreign investment may involve high risk. Understanding international market takes time & could be highly risky. Always invest in international market through merger or acquisition. Don’t confuse total risk with market risk. Take risk and consider mitigation, after all its your money it’s your bread and butter !