A Massage Salon Business Project

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Plan Summary

This business plan involves opening a massage salon that specializes in providing classic massage services (both general and specific areas) and relaxing massage with elements of Thai, Balinese and Indian techniques (without the involvement of foreign masters). The target market is the market of beauty and spa services for women and men of all ages.

Vision

Our goals are:

to become a recognizable SPA – salon in the country;
to accelerated development of the distribution network;
to increase in the number of consumers up to 80,000 people.

Company’s Mission

The mission of the spa is to create the most healthy and favorable environment (water, air, sound, staff etiquette). A person placed in such an environment receives a huge charge of positive emotions.

Business Plan Canvas

Key partners and Suppliers

The main suppliers of consumables, towels, bathrobes, disposable sheets, etc. will be wholesale companies of the city, providing savings discounts for regular customers. Purchase of consumables will be the responsibility of the individual entrepreneur – the founder of the business.

Key Activities

The receptionist on duty will be responsible for recording clients, greeting and seeing them off, and making cash payments. In addition to the aforementioned functions, the receptionist’s duties will include selling related skin care and aromatherapy products and preparing hot drinks for clients and staff. Housekeeping will be outsourced to a third party company who will come in 3 times a day to do the daily cleaning.

Value Proposition

Company values include:
1. Physiology: basic needs.
If a client is hungry or thirsty, they will not enjoy a massage, no matter how hard the masseur tries. How you meet the essential human needs for food and drink should work for you.
2. Safety: peace of mind.
For beauty salons, the concept of “safety” means that your treatments won’t harm your clients (for example, you won’t perform an algae wrap without first finding out if the person is allergic to iodine), that you care about their health and the privacy of the information they entrust you with.
3. love: caring.
The best way to demonstrate your love and care to your customers is through quality service.
4. Respect: self-affirmation.
The natural human desire is to be satisfied with oneself. In the case of a spa, that means wanting to feel prettier, healthier, more attractive – but also more socially relevant. Both your advertising, your services, and your spa’s image should contribute to your clients’ self-esteem.
5. Self-Realization: Satisfaction.
In spas, yoga and other practices that connect the body, mind, and soul meet this challenge.

Customer Relationships

How do you keep your customers happy?
What marketing campaigns can you create to stay connected with your customers?
What are some other ideas you can add value and keep happy customers?

Cost structure

Prices for the services of the massage salon are calculated at the level of the average in the city.

The planned share of sales by type of services provided:
Thai classical massage – 25%;
The Balinese classical massage – 25%;
Ayurvedic massage – 25%;
Local massage – 15%;
Anti-cellulite massage – 10%.

Customer Segments

Clients treated for injuries or accidents/massage therapy
Clients pampering themselves/Massage therapy, Face and body treatment
Clients who prefer alternative treatments
Serious Athletes

Revenue

The structure of the sales presupposes that 50 percent of it paid to massage specialists and he other half is split between other team members and the company needs. The price for the classical massage will be close to 70$ which is 2 dollars less expensive than the average price.
The price list will also include healthcare consultations with massage specialists having a degree in medicine.

Key Resources

My business will operate different types SPA equipment, including seats, massage tables, oils and some other medicaments. Skin and hair care products will also be available.

Distribution Channels

The customers will be reched usinf social networks and visual advertisement in the streets.
All types of services will be provided in the center.

Primary Research

Primary Research
Information Required	Primary Sources of Information used	Research Approach
In the research, we were trying to define the primary social groups that attend SPA salons in the city.	Primary Sources included: Direct customer interviews Personal experience of an acquaintance operating an analogical business.	We used the data of 230 people who are clients of the salon of an acquaintance entrepreneur. Respondents had to answer questions about the reasons why they became clients of the salon. Data from past years of the entrepreneur’s friend’s salon were also used.
It was found that the main consumers of massage services in the area are: Employees of the business center – employees of banks, stores, hairdressers, who spent the working day on their feet and would not refuse a relaxing therapeutic massage for a reasonable fee – 30%. patients who went to a nearby clinic and did not get the help they needed – 15%. Residents of the city center – the area where the salon will be located – 45% Students, athletes and any other clients who want to try the massage equipment out of interest or for the purpose of general wellness – 10%.
Summary
Thus, in order to successfully sell its products, an organization needs to differentiate its customers in order to identify those who could become potential consumers of the organization’s products. For market segmentation, the necessary parameters are age, social class and income level. This dependence is explained by the fact that young people do not feel the need to improve health or do not want to spend time and money on it, and the elderly are not as active and have some contraindications (kidney surgery, heart problems, high blood pressure).

Secondary Research

Type of Information	Secondary Data used	Information Found
Industry Current Performance	The economic research data	The massage parlor market was growing rapidly in recent years, until the covid-19 virus pandemic changed the situation.
Industry Life Cycle Stage	The economic research data	The market is in a decline stage.
Industry Outlook	The economic research data	Analysts hope for slight market growth in the current calendar year, as the need for massage services, the country’s residents remain and the society is increasingly evident trend towards a healthy lifestyle.
Barriers to Entry	The report of competing companies working in the city	Competition from universal beauty salons and medical institutions as substitute massage services.
Market Trends / Sales Predictions	The economic research data	The share of in-home massages began to increase due to the experience of epidemiological restrictions.

Secondary Research

Summarize your findings

Secondary Sources of Information used

The massage market is strongly driven by the idea of crisis. The greater the crisis, the more pressure people feel; the more pressure, the more health problems. Massage is used as a way to relieve pressure and solve health problems, and lately, the demand for home massage has been increasing.

Secondary Sources can include for example:

ABS and other Government Departments
Conferences/seminars
Scientific libraries
Business magazines
Professional Associations
Trade journals

Marketing Environment

Macro Factors

The motivation of general practitioners, neurologists and others working in state medical institutions is used as one of the project’s service promotion channels. With appropriate indications, motivated doctors recommend the services of the company and give the patient a business card with the contact information of the salon. The capacity of the market can be estimated at 240 thousand people, or, with a planned load of 80% of the maximum possible, it is 20 million dollars a year. Premises with the area of 40 m2 on the territory of the state diagnostic center were chosen.

Meso Factors

An important factor for success is the high qualifications of the project staff. When selecting personnel, special attention is paid to the presence of a certificate of training, as well as the experience of working as a masseur for at least three years; it is desirable to have positive recommendations.

Micro Factors

In addition, the company’s website and groups in social networks are used for promotion. Interesting and useful content is posted in the groups, and contests with prizes are held. Social networks serve to collect feedback from clients of the salon. The demand for the project’s services does not have a pronounced seasonality, however, some peaks and drops can be noted during the year. Premises with the area of 40 m2 on the territory of the state diagnostic center were chosen.

Marketing Plan – SWOT Analysis

		Strategies
S	Business Strengths The ability to have a stable customer basis. The use of high-tech equipment, as well as known effective methods that are in demand. Free entrance to the market of massage services.	It is necessary to introduce programs to improve the professional skills of specialists, as well as to form an article of accumulation of funds for the renewal of equipment..
W	Business Weaknesses The complicated process of determining the qualifications of an employee who is hired. Zero business reputation. High level of competition.	Organising marketing campaigns is important
O	Opportunities Using the outsourcing of any services, which will subsequently reduce the cost. Advantageous location of the massage salon. Work with loyal customers, attracting them to the permanent cooperation.	We should provide a quialified customer service
T	Threats High level of staff dismissal due to the opening of the salon in more convenient locations. Distribution of massage at home may reduce demand. Insufficient solvency of the population of nearby areas to visit the massage salon.	It is necessary to introduce a system of bonuses and incentives for the staff.

SWOT Analysis of Competitors

Competitor name	Alfa Massage	Thai Spa	Capela Donati
Strengths	It is located in the city center near several rehabilitation centers.	It has a narrow specialization in Asian traditional spa treatments, so it confidently opposes the competition	Located on the territory of the hotel, is in high demand
Weaknesses	High turnover	Located in an inconvenient part of town, no massage for medical reasons	Prices have risen significantly over the past year, and there are no special offers for customers
What we’ll do differently	We will introduce a staff incentive and support policy to retain staff	We will open the salon in the center of the city	Our salon will develop a loyalty program for customers

Market Segmentation

Decision Making Process

The client comes to the realization of health problems or the need for rest or rehabilitation. Given the location of the salon, it can be assumed that the beginning of the decision-making process will be related to discharge from the hospital and the need for rehabilitation, moreover, often the massage can be prescribed by a therapist. The next step is to look for an answer to the question of what can help solve the health problem or the need for rehabilitation. If the client’s choice stops at the massage procedure, the next step begins – choosing the appropriate format. In the final stage, when the client formed a list of several similar competitors, the subjective factors come into play, as well as an assessment of the visceral and marketing component of the salons.

Target Segmentation

Images	Well-dressed prosperpous people looking self-confident and reliable.
Demographic (description)	Female or male (65% and 35%, respectively) at ages 25-44. Note that within this age group there is a clear division by gender: while age 25-34 is represented mainly by women, age 35-44 is represented by men.
Psychographic (likes, behaviours)	Open-minded, self-made people
Geographic (can be online)	People who live in any area of the city due to the fact that the road to the salon is not difficult and does not take much time from anywhere in the city.
Segment/consumer reaction to products or services being offered	Most customers, having felt the high quality of services provided, will be interested in joining a loyalty program and become regular customers.
Buyer Motives	The motives for visiting the salon are rest, relaxation or recovery.

Marketing Mix

The opening of the salon is intended to meet the needs of the city’s residents in high-quality massage of different kinds. There are almost no centers in the city that offer such a wide range of massage services.

Strategy	Promotion	Timeline	Cost
What do you want to achieve with your promotions?	What promotion are you going to do to achieve the strategy?	When are you going to do the promotion?	How much is the promotion going to cost you?
Developing profiles in social networks	Draw more potential clients’ attention to the salon	Months 1-2	500$
Creating and introducing a loyalty program	Attracting clients who can become constant ones	Month 1-2	200$
Making banners and billboards	Atrractin elderly clients form other districts	Months 3-4	1000$
Making a collaboration program with a rehabilitation center	Attracting new clients coming from the center	Month 5-6	0$
Operating seasonal special offers	Attracting new clients in low periods	Months 7-12	1000$

Digital strategy

The basis of the digital strategy will be online advertising in Google Adwords, as well as campaigns in the social networks Facebook and Instagram. Preparing for Internet marketing consists of several stages: creating a website; registration and promotion of groups in social networks; and setting up contextual and banner advertising. The first two items are one-time costs. Beginning work should begin shortly before the start of business, hence, opening an office site and groups in social networks is already functioning. Setting up and maintaining them is a monthly expense.

Operations

Employees of massage salon preferably have secondary or higher medical education and must have a certificate of completion of specialized courses. Without this, their work will not be qualitative and reliable. Copies of certificates should be placed in the reception area, so customers can independently verify the professionalism of employees (Hellriegel, 2017). During one shift one masseur can serve up to 8 clients, with the standard duration of procedure from 30 minutes to 1.5 hours. The main criteria, in addition to specialized education, is the presence of work experience in the industry for more than 1 year.

	(Insert Job Title)	Operations
	Key Duties	Skills Required
1	Manager	Comminicativity, openness, decisiveness
2	Massage Therapists	Communicativity, empathy, experience
3	Technical Staff	Responsibility, punctuality
4	Customer Service Manager	Comminicativity, openness, empathy, persuasiveness
5	Accountant	Responsibility, punctuality

Business Objective

Human Resource Strategies

Cost

Launch website by January

Secure a web developer for one year

secure freelance web designer who can continue web development for at least 12 months

500$

Launch PR promotion in Instaram and Facebpook

Find a target specialist, ask a referrence from the web-designer

2000$

Time Management

I am going to work from 7-9 hours a day during the fisrt 6 months after we have luanched the salon since I have to adjust all the processes and make sure the later work in the propper way. After this period, 4 hours of work a day with 1 day-off a week will be enough since I will have to managers to help. I am going to take two 14 days vacations during the year, since my presence will be necessary to control the working process.

Potential Hazards	Strategies to minimise risk
1 Psycholoical Burnout	Inruducing team-building programs and psychological consultations foe everyone who needs it
2 Traumas and injures	Provide the safety guidelines for the staff
3 Conflicts with clients	Personal mediating in the conflicts
4 Conflicts within the wokring team	Introducing team-building programs
5 Dissatisfation with salary or working conditions	Organizing regular questionaries

Reference List

Hellriegel, D. (2017). Management. Cape Town ; Oxford: Oxford University Press.

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