Executive Summary
The current medical spa business in America is all that not intense in terms of competition. The continuously growing population needs more healthy or medical products since the greater number of the population cares about their health. Ideally, people are looking for ways to maintain their health as well as reducing weight in order to remain healthy. Wang's Chinese Medical Spa is a new business that will be located in every major city in all the states to deliver health or medical products as well as spa services to the consumers (SBA.gov, 2011). However, the organization shall prefer to be located near nail and hair salons that will provide co-marketing opportunities. Ideally, the business targets to introduce new brands of service in the spa industry that shall meet the needs of some Americans and people of Chinese origin who currently reside in the country.
Wang's Chinese Medical Spa shall offer a complete day spa services to the customers. Moreover, the facility’s product brand base will be ultra-comfortable treatment rooms, seven chic. More specifically, the organization shall offer a variety of massage in different styles. The major target being Chinese population across the country, the facility will offer traditional Chinese massage, Hot Stone Massage, Sports Massage, Reflexology and Deep Tissue work. In addition, the facility will offer facial and body treatment with highly quality product Vitamin C antioxidant Facial. Again Wang's Chinese Medical Spa shall deal in anti-aging health or medical products that shall be demanded by clients. Besides, pedicure will be provided as part of full treatment including a deluxe leg and Foot Reflexology treatment.
Mission and Vision Statement
Wang's Chinese Medical Spa mission is to operate a highly profitable business in the provision of high-end therapeutic massage, aesthetician services and high-end quality medical products in a professional environment that satisfy the needs of prospect customers. The facility shall offer high-end quality massage services in different styles including the traditional Chinese massage, Sports Massage, Sports Massage, Deep Tissue work, Reflexology, and others. The facility esteemed professional team, or licensed aestheticians shall offer the current and trending skin treatment, anti-aging therapies and body treatment (Yozgat & Karataş, 2011).
The facility mission sounds ambitious that minor set goals cannot meet. In this regard, the vision and the major goal of Wang's Chinese Medical Spa shall be to ensure high-end client's experience in the delivery of services. This shall be achieved by getting treatment and massage feedbacks from the clients and initiate improvement necessities. The feedback program shall be used to ensure the client's satisfaction and comfort continuously. In addition, the facility vision is to engage a group of qualified as well as licensed professionals that will uphold the mission and expectations of customers. Suffice to quote that, the firm is mindful of the overall outcome of the treatment or therapy to the client. Based on this, the team of professionals shall apply finest lotions and oils, aromatherapies and beauty treatment in a well-furnished environment that is attractive to the clients. Wang's Chinese Medical Spa shall use soothing music, special lighting, décor and textile that enhance complete comfort in the perception of the customer. By doing this, the business anticipate achieving the greatest customer experience in the spa industry. In fact, just one visit to the Wang's Chinese Medical Spa shall lead to continued visit for an individual customer or client.
Target Market Description
Wang's Chinese Medical Spa is a new business that targets to offer a spa and medical products to the Chinese population as well as Americans who will need professional services. The Chinese population seems to be neglected by other spa service providers who only tend to care for the American population market target. By majorly targeting the people of Chinese origin, Wang's Chinese Medical Spa specifically aims to reach the un-captured market in the medical and spa industry. As such, Wang's Chinese Medical Spa market mixture will constitute both men and women who shall be offered with the current trending skin care products and therapies.
Competition for Medical spa
Medical and spa business is a competitive business that requires any new business to understand its mixture for it to realize success. According to Kiechel (2010), clients in this industry choose spa services in respect to proximity or access to such services. Besides, the quality and exceptional services experience is another important element considered by clients in making appropriate decision on which business to seek the services. With the adequate strategies and plan that Wang's Chinese Medical Spa has, the firm is projected to dominate this spa industry in five years. Analysis from prior market research reveals that, the participants in the industry has not embraced the use of new technology and as such the Wang's Chinese Medical Spa shall not face competition just one year after making new entry into this business (Blyth, 2009).
Nonetheless, there is no direct competitor to the major target market of Wang's Chinese Medical Spa. Most spa organizations across the country specifically targets Americans and not Chinese. As such with the new entry, the firm seems to lack direct competitors in terms of the major target customers. However, about American population target market, the firm will face stiff competition from the already existing spa businesses across the country. Even though the business may face competition, competitors have never targeted the customers who highly regard quality services. Based on the business high-end massage and treatment services the firm deserves to create huge threat during entry into this industry.
Strategic Position and Risk Assessment
A new business requires a strong strategic positioning plan that will scare the already existing businesses in the industry. Wang's Chinese Medical Spa highly project to make entry into the industry with highly valued services that shall ensure the customer comfort as well as overall satisfaction. With combined premium products, a major market target shall come to realize the difference that the entry of Wang's Chinese Medical Spa into the industry plays.
The company shall offer highly valued therapeutic massage services, facial and skin treatment, anti-aging treatments and overall body treatment that ensures service satisfaction to clients. To be a head of others in this aspect, Wang's Chinese Medical Spa services shall be provided by professional licensed aestheticians and therapists who shall be permanently employed at the organization to ensure the company reach its set targets. In the case of robust customers within a short time after entry, the firm shall contract the services of other professionals who will be paid on commission. This strategic management team shall help to strategically position the company ahead of its competitors. To complement services, the firm shall offer other more quality products including creams, cosmetics, deem lighting candles and other beauty products that will ensure value or satisfaction is maintained to the customers.
However, the firm is likely to face some threats and risks on entry into the industry. First, Wang's Chinese Medical Spa may fail to get premises in the anticipated locations. To mean the company may lack the co-marketing strategy that have been projected to be used as a strategy for the entry into the industry. Besides, prices fluctuations may be a major challenge during entry and operation of the business (Business Plan Center, n.d.). It may conflict with formulated mission of running a profitable business. In contrary, the firm may face regulations challenges from authorities that may hinder opening all business in the projected locations. Nevertheless, new competitors may make entry into the industry and act as a setback to projected business.
Marketing Plan and strategies
According to Levin and Pickett (2011), there is over a hundred thousands of spas business in the United States. And the number continues to grow every year. On the other hand, some licensed individuals who run spa businesses across the nation. Most of these businesses charge high rates for their services and are highly inaccessible to the customers. Wang's Chinese Medical Spa projects to utilize various marketing strategies to make tremendous stride into the industry.
The company projects to establish a business to the existing nail and hair salon that will act as co-marketing strategy during the entry of the business. More importantly, the projected locations shall provide excellent access to the demographic market segment as a way of gaining the first visiting customers. Individual clients shall be treated with self-integrated services that satisfy their specific needs as a retention strategy. Each market segment shall be approached with a different strategy to ensure the target market is reached. Moreover, shall lure visiting clients to refer more customers to the chain of businesses across the country.
Nonetheless, the company shall compose a marketing team that shall reach customer audience as a means of acquiring a strong customer base (Rust et al., 2004). With several insurance companies providing alternative care coverage, some clients are ignorant of the massage therapy coverage under the policy. The esteemed marketing team shall educate the members of the society about this and inject the company’s quality product and services into their minds. While the clients who have disposable income shall be reached by online services and adverts that shall inform them of the existence of the spa industry. Lastly, company’s sports massage segment shall be achieved by marketing product to the high number of athletes that live in major cities across the country. There are runners and cyclist that needs massage services that the company’s sales team shall simply reach by word of mouth recommendation. When they make visit, these group of clients shall experience high-end service outcomes that will make them become a repeat client to the organization. Nonetheless, the company shall reach the aged population and encourage them to become repeat clients.
Keys to Success
For the firm to perform well, its operation shall be based on specific keys that shall ensure it always remain focused on the mission as well as set targets. These shall include;
- Dealing in quality spa essential products that create value and difference in the perception of the customers.
- Encouraging or promoting innovation amongst professional employees in delivering the services to the clients. This shall encourage an individual integrated service that will enhance high-end services to clients.
- Wang's Chinese Medical Spa shall remain a client focused regarding delivery of its medical services or products.
- Moreover, to enhance efficiency in the operation, the company shall develop integrated online services to customers to make inquiries and arrange for service deliveries at their convenient time. This shall enable the organization to achieve its goal of ensuring the client’s comfort and satisfaction.
- Sufficient supplies at the right time based on customer requests. At any particular time, the organization shall ensure the supplies meet the demand of customers.
- Qualified and licensed professionals that shall create a warm service environment to the clients.
- Strong internet presences that shall ensure that online services to the clients are maintained and accelerates the service delivery as they anticipate.
Community Involvement and Social Responsibility
The present business industry is full of strong competition that requires any business to engage community involvement in order to survive. The organization shall remain committed to environmental sensitivity and is projected to utilize resources that are harmless to the environment. Suffice to say that, Wang's Chinese Medical Spa shall adopt the green technology in the delivery of its services to the acquired clients. The team of professional shall only use products and items that do not lead to environmental pollution. Immediately after entering this industry, the company shall engage in community services including clean up services, free care days for the aged and donations. Nevertheless, the company is projected to initiate free injury recovery to less fortunate members of the society who shall be incapable to afford the company’s quality services. Lastly, the company shall participate in various events organized by the city councils as a way CSR (Corporate Social Responsibility) (Lim, 2010).
Organization and Management Plan
Being a business that shall be operated across various locations, the company anticipate starting with at least five professionals in each location. These employees shall be paid a salary scale that will slide or proportionate to production capacity of the organization as at that particular month. This is just an entry plan, after which the employees will be based on a permanent salary which will be relatively high based on the performance of the company. To guarantee that the firm does not fails in operation due to less number of aestheticians and therapists, an increase in demand shall be met by a stand by licensed professionals who shall be paid on commission whenever their services shall be outsourced. In addition, customer relations employees shall be employed in every branch to handle the customer online services as well as receive phone calls in order to enhance the quality service delivery as stated in the firm’s vision. By the end of one year, the firm anticipate working with a diverse workforce that shall ensure the business achieve its five-year plan and remain focused on its mission. This is in order with the required management tools (Business Plan-Score, 2011).
Development, Milestones and Contingency/Exit plan
Wang's Chinese Medical Spa project to enter into this industry with robust expansion and development within three years of existence. In the first two years of entry, the firm anticipates controlling and commanding 30% of the market share of the customers. With a projection of increasing number of professionals at the organization, the company shall develop a marketing team whose major role will be to meet customer targets as soon as making an entry into a new market. This shall continuously realize revenue growth of 10% annually. In this the company assume cash payment for services, insurance reimbursement framework of two months and relatively low interest and tax rates. The facility also assumes that the economy shall continue to rise in order for the business to thrive as anticipated.
However, there is a formulated contingency plan for the business. Just as suggested by Blyth (2009), businesses are full of risks and disasters that must be planned for in order to survive. With massive or tremendous steps, it is expected that the business shall remain prepared to deal with incidences of disasters such as fire and court injunction. Just on furnishing of the premises, all safety measures will be implemented to avoid injuries to employees as well as customers. The team of professionals shall ensure safety measures and develop a sufficient plan for dealing with disaster management in case of occurrence.
Furthermore, there is a huge expectation on expansion of the customer base as well as overall performance of the organization in a span of five years. However, the firm has employed a systematic approach on how to expect the changes in the business. Incase by the third year the business fails to meet its mission and vision, it is projected to clear up all the debts and creditors to exit from the industry.
Conclusion and Recommendation
Wang's Chinese Medical Spa business plan is a viable project that shall muscle up resources to start or initiate. The strategies laid down in this business plan are adequate to run or operate the business without any worry of exiting. The targeted market looks lucrative since most of the spa organizations have concentrated on the Americans rather than the Chinese population. As such, the company project to fair-well in the entry into the industry and make tremendous expansion within three years of existence. However, if the company become successful as projected, there is recommendation for application of further marketing strategies like the blue ocean technique to gain the 50% plus one market shares in the sixth year (Business plans, 2011).
Reference
Business Plan Center with a Library of Real Business Plans. (n.d.). Business Plan Center with a Library of Real Business Plans. Retrieved June 18, 2011, from http://www.businessplans.org/
Health Spa Sample Business Plan - Executive Summary - Business plans. (2011, June 18). Free Sample Business Plans and Business Plan Software - Business plans. Retrieved June 1, 2011, from http://www.bplans.com/health_spa
Kiechel, W. (2010). The Lords of Strategy. Harvard Business Press.
Lim, M (2010). Environment-Strategy-Operation (ESSO) Business Model. Knowledge Management Module.
Blyth, M. (2009). Business continuity management: Building an effective incident management plan. Hoboken, NJ: J. Wiley & Sons.
Rust, R. T., Lemon, K. N., & Zeithaml, V. A. (2004). Return on Marketing: Using Customer Equity to Focus Marketing Strategy. Journal of Marketing. doi:10.1509/jmkg.68.1.109.24030
Yozgat, U., & Karataş, N. (2011). Going Green of Mission and Vision Statements: Ethical, Social, and Environmental Concerns across Organizations. Procedia - Social and Behavioral Sciences. doi:10.1016/j.sbspro.2011.09.110
Business Plan for a Startup Business | SCORE. (2011, June 1). SCORE site | SCORE. Retrieved June 18, 2011, from http://www.score.org/resources/business-plan-startup-business
Business Plans. (2011, June 1). Business & Small Business. Retrieved June 18, 2011, from http://www.entrepreneur.com/businessplan
Writing a Business Plan | SBA.gov. (2011, June 1). The U.S. Small Business Administration | SBA.gov. Retrieved June 18, 2011, from http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/writing-business-plan
Levine, R., & Pickett, J. (2011, June 18). Global Health Forecasting Working Group. Global Health Forecasting Working Group. Retrieved June 1, 2011, from www.cgdev.org/doc/ghprn/DF_Exec
