Table of Contents
Introduction and Executive Summary
3
Spa Services
4
Past Personal Experience at Mandarin Oriental Spa
4
Target Market for Mandarin Oriental Spa’s Spa Services
5
Survey
7
Critical Examination: 4 of the 7Ps of Marketing
10
Recommendations
11
Introduction and Executive Summary
At some point in our lives, we should have used at least one service product to satisfy our needs or to do something that we aren’t capable of doing without that particular service product. One of the most common issues being tackled in the service industry is people’s perception about services. Many argue that a service isn’t really considered a product but we are going to prove to you the truth behind this issue. Today, many economic identities are already using the SAAP or the Service as a Product Scheme. This theory was supported in the work of Xanthos (2012) where the scheme was a main topic. According to the said source, one of the primary reasons why businesses and small organizations continue to thrive in a highly competitive market or business environment is because of this scheme. Smaller businesses and organizations basically have to have something for them to be able to compete with larger organizations. If they fail to do so, then they could either face lower sales in terms of service or be extinct.
The purpose of this paper is to be able to present an analysis of a particular service product that is available locally (Anonymous, 2005). This product could either be chosen from different industries. Now, certain aspects about that product will be critically evaluated to know whether buying this particular product could really be beneficial for the customers or otherwise. Nevertheless, it would be better to check on page by page because everything will almost be discussed in full detail. Since there are a great variety of products that have already been critically reviewed, we have decided to choose the spa massage service as the main topic in this paper.
Spa Services
Almost all of us encounter at least one or more stressful activity every day. In fact, no matter what type of activity we do, we will still tend to get a significant amount of stress from that. This is one of the core reasons why a service that is thought to relieve people from stress. Service Product consumers could of course experience premium spa services for a fee because that’s where Spas get their profits. The particular spa location this paper will focus on would be the Spa at Mandarin Oriental. This spa is located inside one of the world’s busiest cities; New York City. It’s a luxurious Spa right at the heart of New York City and many claim that it is actually one of the best spa services being offered in the industry today. Currently, many have had no issues when it comes to their service but a significant number of people actually believe that their services and service products are quite overpriced. This is normally true because the standard of living in New York City is quite high considering the fact that it is one of the most urbanized locations in the US.
Past Personal Experience at Mandarin Oriental Spa
The reason I chose Mandarin Oriental Spa and their Spa services to be the focus of this paper is because I could see that there are some conflicts between the services they provide to their customers and the price by which those services are offered. Normally, the offered price of a service and the overall quality of that service which could usually be measured by customer satisfaction levels should be balanced. Now, I have seen that their services are superb and no one could really deny that. Almost every customer that goes out of that establishment’s door praises the staff and the whole name of the business as a whole because of the premium experience they provide to their clients. However, it is equally undeniable that their prices are almost exaggerated.
Target Market for Mandarin Oriental Spa’s Spa Services
It is quite obvious that the target customers of almost all spa-related businesses are those people who are stressed from their everyday works and chores. Actually there are also clients who visit these establishments for routine purposes.
There are actually different types of spas. There are massage spas and there are also health spas. Even though they slightly differ in name and secondary purpose, this does not change the fact that they are established to provide massage and wellness services to their clients (Anonymous, 2001).
If we are to talk about a certain age group, it could be safe to say that the age range of the usual clients who visit Mandarin Oriental Spa is between 14 to 70 years old.
General Characteristics
One of the reasons why Mandarin Oriental Spa was established is to be able to provide relaxation services to hotel clients. Mandarin Oriental Spa is actually located inside a hotel building and it is one of the most luxurious ones in New York City. Aside from new and usual hotel clients, some spa customers also come from the population of people who visit the Time Warner Center building located at Columbus Circle. They are the usual people who keep the inside of the spa establishment populated. Of course, there are also some customers who came from different parts of the US just to experience the premium services offered by Mandarin Oriental Spa because the Columbus Circle is a common stop for tourists especially the ones with lodging reservations after all.
Wants and Needs
Nobody wants to live a life full of stress and not so comfortable feelings. Many people generally do not consider going to spa a need because they could live one up to the last years of their lives without having to go to a spa. However, there are also some people who tend to think that going to the spa is a necessity and these are the usual faces one could actually see when they visit spas and wellness centers. There isn’t really a system that could define spa as a want or a need because people have different beliefs about the system in the first place. It is of utmost importance for business administrators to determine the wants and needs of their target market because the more inclined their offered services to the wants and needs of a particular market, the more likely their marketing and business plans will click and succeed. In Mandarin Oriental Spa’s case, it is quite obvious what type of people they are trying to target and whether their services could be considered as a want or a need (Devierville, 2003).
Segmentation Criteria
There are actually no particular criteria that could be used to categorize the usual people who visit the Mandarin Oriental Spa in terms of family cycle and other statistical criteria. According to a study available at the journal of health and wellness (2005), there isn’t a significant difference between the number of men and women who visit spas either as part of a routine or for other purposes. There is however a significant difference that was found between the ages of people who usually visit spas (Schlessinger, 2008).
According to another study available at the Journal of Health and Wellness (2001), the mean age of people who frequently visit spas is 35 years old. Of course there are spa clients who are much younger or older that the mean age that was synthesized from the results of the study but it would be a lot easier to generalize if the mean age will be used for statistical and analysis purposes. For more extensive researches, more specific segmentation procedures could be done to achieve more appropriate results. By far, the most effective method of market segmentation is by customer differentiation. Normally, customers differentiate themselves without them even knowing. They usually do this by simply choosing the proposition or type of services that they need. After choosing the type of services they need from an establishment, it would be a lot easier for the administrators to segment the customers according to their wants or needs (Jyothis & Janardhanan, 2009). This could be a very effective segmentation tool for a company who is aiming to win more customers. In this case, it may be appropriate to use this segmentation method for us to have a clearer view of their target market (Kimes, 2009).
Survey
Respondent Number 1
1. Why do you often visit Mandarin Oriental Spa?
I often visit the place whenever I feel stressed and whenever I feel I experience slight but tolerable pain on my shoulder. Surprisingly after the spa session, the pain is gone. Now, I consider going to the spa a therapy rather than just a recreational activity. I really haven’t consulted my doctor about this but I can feel that it’s very effective for me so I just don’t mind it (Smith, 2011).
2. Any Feedbacks about the Service?
What I love the most about Mandarin Oriental Spa is not actually their service but the whole place. I think staying at the 35th floor of the Time Warner Center is what makes the ambiance of the whole place very relaxing. Overall, I am very much pleased that I was able to visit this place once when I still was a teenager (Smith, 2011).
Survey
+*+++++++++++
1. Why do you often visit Mandarin Oriental Spa?
I usually go to Mandarin Oriental Spa while I am waiting for my wife to come back after she goes shopping. Fortunately, she almost always goes to malls to buy her things and so I also frequently visit here to relax and go to the spa. If not for my wife, I think I wouldn’t really need to visit here. If you are going to ask me whether going to this spa is a necessity or not, I would of course say no. I just consider it a past-time activity (Jewels, 2011).
2. Any Feedbacks about the Service?
Nothing beats the hospitality of the staff members at Mandarin Oriental Spa. I really like the process by which they handle their customers. I salute them for being able to implement a very organized system of handling customers like me especially when we come in large numbers (Jewels, 2011).
Survey
++*++++++++++
1. Why do you often visit Mandarin Oriental Spa?
I only go here once a month. I do not really go to spas and wellness centers due to a tight budget. But when I go here, I see to it that I get my money’s full worth. I usually hope that they have promos whenever I visit here so that I could enjoy their services more at a cheaper than usual price (Oliver, 2011).
2. Any Feedbacks about the Service?
What I like the most about Mandarin Oriental Spa is the place. I can see through the window the magnificent view of the Central Park, a famous tourist spot here in New York City (Oliver, 2011).
Survey
+++*+++++++++
1. Why do you often visit Mandarin Oriental Spa?
I feel like I really need to visit this spa regularly. I feel incomplete whenever I miss a spa session. I do not know why but I think I have been too attached to this place that I feel I cannot live anymore without it (Will, 2011).
2. Any Feedbacks about the Service?
Oh yes, the services here are really good. Every once in a while, they offer promotions to their loyal customers and there are times where I can’t resist but to stay here longer because of the good deals they offer (Will, 2011).
Critical Examination: 4 of the 7Ps of Marketing
In order to come up with good marketing results, the specific service being advertised should be marketable in the first place. To be able to make the answers of the four respondents more relevant, I have decided to use their answers as my basis in critically examining 4 out of the 7Ps in marketing (Maxwell, 2006).
Place
Mandarin Oriental Spa is located at the 35th floor of the Time Warner Center. Any people would really love to be inside the whole 35th floor of a tower especially if it is surrounded with a whole lot of lights at night and a very spectacular view of a tourist destination. At night, customers could enjoy the astonishing city lights coming from neighboring buildings and the national roads filled with travelling cars especially if it’s rush hour. The place of the establishment has been a great marketing advantage for Mandarin Oriental Spa in the last couple of years. There are even customers who go to the spa just to see how beautiful the whole place is (Nelson, 1992).
Survey
+
While there are indeed many people who consider the location of the Mandarin Oriental Spa as one of its best assets, nothing could still beat the product or the service that they offer to their new and existing clients (Hettler, 2006 A nice location could be worthless if people would only be disappointed by the type and quality of service offered to them. Generally, products and services at Mandarin Oriental Spa are one of the best. In fact, many consider it as world class because of the expertise of their staff in handling clients and the state of the art facilities available to everyone who wants to enjoy and relax (Jacobs, 2005).
Place
This is one of the weaknesses of the company. Maybe they were really able to place their establishment in a strategic location and provide an outstanding line of services to their clients but if the price isn’t obviously right, they will continue to lose clients especially the ones who cannot afford their current price if it’s set too high.
Survey
+++
Even if Mandarin Oriental Spa seems to be not so caring about their clients’ perception regarding the price of their spa services, it is a good thing that they are making up for that weakness with their various promotions. They see to it that they have a wide array of services available to their clients. Many actually enjoy these promos considering the high prices of their services.
Recommendations
First of all, I would like to recommend that the Mandarin Oriental Spa consider decreasing the price of their services. Of course, it will really be up to them up to what extend they would decrease the prices of their service but the lesser the better. This would usually result into a wider client network. Apart from that, news about their newly set prices that were lower than usual would encourage more clients to flock their site and avail more of their services. Although it may be a little bit impossible for the management to consider doing this recommendation, it would still be worth it to try since they have been asking for a very high price from their clients in the past years. Perhaps it’s time to give their clients a break and let them enjoy premium service for a much lower price. There are a lot of marketing strategies out there that could make their services available for a cheaper price but will not significantly impact their sales and profits. They could go for X deals with advertising companies. They could also tie up with group buying companies and let them advertise their services in exchange of letting some of their clients enjoy their services for a lower price.
Second, I would recommend that they consider expanding their location. In business, space is money. If a business has more space, they could potentially have more money. A business with a limited space will most likely be crippled and won’t be able to gain much profit no matter how trained and good their staff members are. The key to build a larger client network and to project bigger profits is to have a larger space where the business as a whole could cater more customers’ wants and needs.
It’s really advisable that the Mandarin Oriental Spa management take these two recommendations into considerations since the basis that I used to come up with such recommendations came from the clients who have experienced their services. It is known that no one has the ability to please anybody. Nevertheless, businesses should still try their best to meet the expectations of their clients so that they won’t end up being disappointed. Ideally, all of the 7 Ps of marketing should be taken into consideration for much desirable outcomes. However, very rare are the chances that businesses will be able to address all of these Ps of marketing.
Survey
++++
Xanthos, 2012. Service as a Product. IT Governance. Available at http://www.itgovernance.co.uk/service-as-a-product.aspx.
Spas and their usual customers, 2005. Journal of Health and Wellness. Print.
Age bracket of people who frequently visit spas, 2001. Journal of Health and Wellness. Print.
DeVierville, J. P., 2003. Spa industry culture and evolution: Time, Temperature, Touch and Truth. Massage Body Work. Print.
Schlessinger, J, 2008. Spa Dermatology: past, present and future. Dermatol Clin. Print.
Jyothis, T, & Janardhanan VK., 2009. Service quality in health tourism. S Asia J Tour Herit. Print.
Kimes, S., & Singh, S., 2009. Spa revenue management. Cornell Hospitality Quarterly. Print.
Maxwell, A., 2006. Spa Town. Print.
Nelson, R, 1992. Spa Counseling. Journal of counseling and development volume 71.
Hettler, B., 2006. Six dimensions of wellness. Stevents Point National Wellness Institute. Print.
Jacobs, E., 2005. Use of creative techniques and proper in individual and group counseling. ASCA. Print.
Smith, A., 2011. Interview about Mandarin Oriental Spa. December 2011.
Jewels, C., 2011. Interview about Mandarin Oriental Spa. December 2011.
Oliver, R., 2011. Interview about Mandarin Oriental Spa. December 2011.
Will, K., 2011. Interview about Mandarin Oriental Spa. December 2011.
