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Final Copy Of Litsa's Day Spa Case Study

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jenny anderson

on 13 January 2016

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Transcript of Final Copy Of Litsa's Day Spa Case Study

Litsa's Target Market
+Target market are parents in Yaletown.

+More likely to pay for premium price.

+This target market has been ignored upto now.

BASIC Costs of the Business
+The rent of space
*$8,000 monthly
+Line of credit & interest
+Equipment *$30,000
+Marketing materials
Rough Start up cost = *$100,000

* = average price

Location of Litsa's Spa Business
+Yaletown because its a central location.

+Easy access from downtown.

+No other day spas have childcare services.

+Selling her services directly at the day spa.

Litsa's Promotions and Advertisement
the different services
Litsa's Day Spa
Case Study
+Play area for children
+Daycare facility
+A qualifified childcare worker to supervise
Extra Services
Spa Services
Different Costs of Doing Business
Different Costs for Child Care facilities
Start-up cost =
+Salaries for childcare workers
+Children's entertainment
Premium Prices for Spa Treatments
+Massages $80-$110
+Manicures $30-$45
+Pedicures $45-$60
+Facials $75-$150
+Free child care

+Litsa's prices compared to competitors are higher

+She provides child minding as an added service.
+Plans to encourage parents to come with their children.

+Customers can leave children in daycare.

+Children can stay in play area even after spa treatments.

+Childcare services included with spa treatment.
The Big Problem with Litsa's Day Spa Plan
+How she'll market her business

+Establishing a loyal customer base.
Changes + Modifications for the 4P's
Result of the Decision
The Problem:
+How she will market her business.

+How to achieve a loyal customer base.
The Solution:
+Market her business as a modernized concept of a day spa.

+While also adding the huge benefit of childcare services for customers.
+She should hire an on-call child care worker instead of a fulltime employee at the day spa.

>Having an on-call childcare worker will reduce the cost of salaries.
Promotion + Advertisement
+Although her location is in Yaletown, Litsa could expand the marketing efforts throughout the entire downtown area.

>That way Litsa would be able to reach more famillies and create a much larger clientele base.
+Litsa could designate two parking spots infront of the spa for her customers.

>To promote easy access to her day spa, for parents with children.
+We think there should be a fee added for child care, if the parent wants to leave their children at the spa after spa treatments.

>To minimize the amount of children after spa treatments and to make more money.
Services (Products)
Litsa will not accumulate salary related costs when the childcare worker is not needed, thus saving money.
Creating a fee for after treatment daycare hours, will minimize the amount of children, and make more money, while still offering the benefit for customers.
Having designated parking spots infront of her spa is a benefit for customers, and will increase her customer's satisfaction.
Promoting all over downtown will, increase marketing costs, but will generate more business.
Advertising + Promotions
Business Ed 9
By Jenny & Andres
Full transcript