Water Lily Marketing Plan Excerpt

Executive Summary Water Lily Day Spa is a small independent day spa that offers personal care treatments in Hamilton, Ontario and has only been in business since May 2008. Its owner, Julie Ricottone, is also the only aesthetician. Water Lily’s current target market consists of females aged 16-24 and 30-40, who live or work in the Hamilton area. It is positioned as an intimate, relaxing spa with special focus on a personalized and quality service. In the current economic recession Water Lily is facing the difficulty of starting and growing a new business in an economically diverse city, and an industry with elastic demand. Also, there is tremendous competition in the personal care industry, foremost from nearby spas, such as Mercedes Salon and Day Spa, and secondly from drugstores, which offer comparable high-quality ‘do-it-yourself’ skincare products. Due to the economic climate, particularly in Hamilton, and the nature of the industry, with low sales, only one aesthetician, and a slowly growing client base, Water Lily must determine how to raise awareness, and differentiate itself in order to turn a profit. The objectives of this marketing plan are to: increase total sales by 100%, and the number of treatments provided from 351 to 70 per month by April 2010; and to have 20% of the total customers from May 2009 to April 2010 become regular customers2. Water Lily will primarily target married middle-class, women, with or without children, between the ages of 30-55 that live or work in the lower Hamilton3 area; mid-level spa-goers looking for a retreat in which to relax and receive a quality treatment. The secondary target market will be women aged 56-80, who live in senior’s residences or attend activity centres or senior’s associations in the Hamilton area, and enjoy being pampered.

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As estimated by Julie Ricottone A regular customer is defined by Water Lily as: 1) a customer who demonstrates a visible pattern that she visits the spa at least once every other month, 2) By November 2009 the customer must have visited the spa at least three times, 3) Or by April 2010, that the customer has visited the spa at least six times at regular intervals. 3 See map of lower Hamilton EXHIBIT B 2

Water Lily will be positioned as a women-only spa that offers solutions to the stress, and concern for the well-being, of its clientele. Emphasis will be placed in the high-quality customizable treatments, as well as the intimate setting that can be personalized. In order to meet these objectives, both the products offered and their prices will remain the same. As an alternative to increasing or decreasing the prices, Water Lily will utilize promotions, customer service, and other incentives to draw in more clients. However, in addition to in-spa services and in-spa parties, Water Lily will offer in-home spa parties and services at senior’s residences. Personal selling is of great importance in this industry; to ensure the most efficient approach, as well as to maximize the customization of services, Customer Relationship Management Software will be used. Special attention will be given to the female employees of St. Joseph’s Hospital and the members of the YWCA, given the potential these locations represent. Overall communications will have the creative theme, “UnWind”. The campaign will be split into five sections within the year; each which will display helpful tips to communicate Water Lily’s care for its customers’ well-being. The vehicles used to communicate these campaigns are brochures and posters placed in nearby businesses, which share Water Lily’s target market, e-mail newsletters directly from Water Lily, e-mails within St. Joseph’s Hospital’s internal mailer, and Gold Book. A Facebook group will be created for Water Lily to invite customers to join, and post information relating to topics relevant to the current campaign, creating a sense of community and a rapport between the clients and the spa. To strengthen the relationship between the spa and its clients, promotional items will be given to all new customers on their first visit and loyalty and referral programs will be implemented. During Breast Cancer Awareness Month, Water Lily will donate 10% of its profits to the Canadian Breast Cancer Foundation, to show support for women and their health. To ensure Water Lily will meet its one-year objectives and recommendations, several controls will be implemented to monitor: sales, treatments performed, number of customers, and advertising vehicles.

1. Recommended One Year Objectives a. Financial Objectives i. To increase total sales by 100%, by April 2010. b. Overall Marketing Objectives i. To increase the current number of treatments provided from 35 to 70 per month, from May 2009 to April 2010. ii. To have 20% of the total customers from June 2009 to April 2010 become regular customers. 2. Recommended One Year Marketing Strategies a. Target Market i. Primary Target Market: Married middle-class women, with or without children, who are between the ages of 30-55 and live or work in the Lower Hamilton area. Periphery and mid-level spa goers who are looking for a retreat where they can relax and receive a quality treatment. ii. Secondary Target Market: Women aged 56-80, who live in senior’s residences or attend activity centres or senior’s associations in the Hamilton area and enjoy being pampered either at their residence or in a spa. b. Positioning Statement i. Water Lily Day Spa will be positioned as a female-only spa that offers solutions to stress and concern for the well-being of its clientele. Water Lily provides highquality, customizable treatments, performed by a personable aesthetician, with high-standards. Water Lily also offers competitive prices, an intimate setting that can be personalized, and a commitment to offering clean and sterile services. c. Product i. Basic treatments will remain the same. ii. The products offered will remain the same. d. Pricing i. The pricing structure will remain a competitive pricing strategy. e. Distribution i. All of the treatments will continue to be provided at Water Lily Day Spa.

ii. Additional distribution channels will include: 1. A “house party” with certain treatments will be provided at the request of clients living in Hamilton. 2. Senior’s residences and activity centres in Hamilton will also be able to have services brought to their location. iii. The distribution of products will continue to take place within the establishment through direct sales. f.

Selling i. Personal selling for both products and future treatments will be carried out during treatments. Recommendations will be based on diagnosis and reflect the season. ii. E-mail reminders will be sent to customers prior to their appointments, along with current discounts, promotions and loyalty program updates.

g. Service i. All quality measures for treatments will be maintained and Julie will remain as the sole provider of services in all stages of the client’s experience. ii. In order to customize services for each client and improve customer service, ACT Customer Relationship Management Software will be used. h. Promotions i. Advertising 1. The overall communications campaign will have as a creative theme “UnWind”. 2. The year will be divided into five campaigns, each one covering a relevant target market and season. Communications issued during each campaign will communicate useful information to the target audience. 3. Advertising vehicles to be used are: a. Brochures which will be distributed through nearby businesses that share a target market with Water Lily. b. Posters displayed in the YWCA’s and St. Joseph’s Hospital bulletin boards.

c. Group mailers sent out by e-mail, and will be issued to registered clients of Water Lily and employees of St. Joseph’s hospital. d. A Gold Book site and a Facebook group will be created to have a presence on the internet. e. The current banner outside of Water Lily will remain the same. f.

Promotional Items with Water Lily’s logo that will be given to clients from St. Joseph’s hospital and given to Dr. Howard McIsaac, Pediatric dentist.

g. Portfolio of services will be displayed in Water Lily, for customers to review if Julie is with a client and allow them to leave their contact information. Wizard’s Salon will also display a portfolio of services provided. h. A digital version of the portfolio will be used for selling when no personal contact is available (i.e. first contact with senior’s residences and activity centres, Facebook, and Gold Book.) i.

A front door sign will indicate that Julie is unavailable on one side and on the flip side it will indicate to that the spa is open.

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Sales Promotion i. Permanent promotions will be offered to employees of St. Joseph’s hospital as well as members of the YWCA. ii. Offering a permanent discount will give Water Lily access to each institution’s communications vehicles free of charge. iii. Every Wednesday of the year will be “Senior’s Day”. Women aged 55 and up will receive a 10% discount on all treatments performed on Wednesdays. iv. Each campaign will have a sales promotion that relates directly to it. v. Loyalty and referral programs will be utilized to increase overall sales. vi. Public Relations 1. During Breast Cancer Awareness month (October) 10% of Water Lily’s sales will be donated to the Canadian Breast Cancer Foundation.

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3. Promotion Action Plan a. Advertising i. The year will be divided in five campaigns as follows: 1. Get Summer Sexy - May 2009 to August 2009 2. Your Day Off - September 2009 to October 2009 3. Put Your Winter Face On - November 2009 to January 2010 4. Be Smooth and Confident For Your Sweetheart - February 2010 to March 2010 5. Keep THEM Busy - April 2010- June 2010 ii. Vehicles to be used are: 1. Brochures a. Brochures will communicate Water Lily’s position as a spa that cares for the well being of its target market. b. Each brochure will function as a “mini-magazine”, containing information relating to the campaign, such as tips, fun facts and other. c. Contents for successive brochures will be selected by Julie from input provided by consumers, given during visits or through the Facebook group. d. The Sales Promotion pertinent to each campaign will be highlighted in the brochure. e. Brochures will be personally distributed by Julie at the beginning of the first week of each campaign to the following places: i. Hamilton Conservatory for the Arts-126 James Street South ii. YWCA Hamilton- 75 McNabb Street South iii. Dr. Howard McIsaac, Pediatric dentist -212 James St. South iv. Anthony’s Health and Fitness- 14 Forest Ave. v. Glow Tanning Studios- contact Nicole Morrele at 905521-9688.

vi. Kumon Math and Reading Centre- 377 Mohawk Road West. vii. Sea Cadets- 650 Catharine St N viii. The Coffee House - 144 James Street South ix. House of Java-166 James Street South f.

Contents for the first brochure (Summer) will be generated by Julie.

g. Contents for successive brochures will be selected by Julie from input provided by consumers, given during visits or through the Facebook group. […] 2. Promotional Items a. Different promotional items will be given to first-time customers based on the amount of money spent at Water Lily and Julie’s discretion. b. These items will be given after a treatment is performed and the client has paid as a gift to welcome the client to Water Lily and show appreciation for their business. c. The items have been selected because they correspond to the overall experience linked to spas: stress, planning the daily life and seeking a moment for oneself. d. Promotional items to be used: i. Stress balls 1. The St. Joseph hospital staff are anticipated to be the top clients for Water Lily, as a form of differentiation between levels of clients they will be given one after they spend over $50 on their first visit. 2. Dr. Howard McIsaac, Pediatric dentist (212 James St. South) will place two stress balls in his waiting room in return of Water Lily placing his business cards her waiting room.

ii. Post-it notes 1. Will be given to customers, as they are a medium that people generally use often and therefore Water Lily’s name will be viewed often, and remain top-of-mind. 2. Each sheet will have Water Lily’s name, logo, and contact information on it, but have different copy printed on them. 3. Each post-it will have a different tip on it mimicking those seen in the brochures. Every fifth post-it will have treatment information based on the tips that came before it. iii. Candles 1. As candles are often used in spas, and are associated with a relaxing experience of as relaxing. 3. Front Door Sign a. This sign will be posted when the spa is vacant or while the door is locked while services are being performed in the back room. b. Sign will indicate to clients they should ask for the spa portfolio, in Wizard’s Salon for information about Water Lily’s treatments, products and both past and current promotions. c. Sign copy will read as follows: i. Side 1: Someone else is relaxing at the moment; please visit Wizard’s Salon for Water Lily’s Portfolio. ii. Side 2: You deserve to relax, come on in.