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 Introduction

‡ Founded in 1977 by Dave and Florence Blumenthal

in California.
‡ Nations first and leading health and wellness brand.
‡ Widely acclaimed.
‡ Company opened smaller brand µCaboday spa¶.
‡ Premier total vacation and fitness resort.
‡ Little more than a µfat farm¶.
 Product offering

‡ Access to spa, free fitness classes, allowances for spa

and health services.
‡ Range of wellness services- nutritional consultation,
spiritual awareness classes, workshop in stress
management etc.
‡ Indoor as well as outdoor activities
 Competitors

‡ Major destination spas-

s Canyon ranch- emphasis on first class medical
services.
s Golden door- geared towards female customers.

s Rancho la Puerta- worlds first eco resort featured

food grown on its own organic farm.
s Cabo San Viejo- combination of exercise, spa and
health services.
 Marketing approach

‡ About $2.76 million was spent on marketing and 6

marketing personnel worked on it.
‡ Used reminder as well as awareness advertisement.
‡ Used public relations as well as print and electronic
media.
‡ Partnership and occasional marketing.
 Sales approach

‡ Budget allocated is $1.92 million and 6 sales

managers worked on it.
‡ Indirect selling- high end travel agents,
‡ Strategy to maintain occupancy at optimal level.
 Customer experience

‡ Loyal customer base included-

s Largely affluent, middle aged and female.

‡ Added 3500 customers each year-

s 65-70%-word of mouth.

s 30%-direct referrals by travel agent.

s Repeat guest comprise between 50-60% of all guest

nights.
 Special programs for«

‡ Potential customers-
s men

s Middle income group.

s Target customers include executives, healthcare,

practitioners, people with special medical conditions
and groups.
 Customer Benefits

‡ Maintain a centralized all female reservation staff.

‡ Listen to customers.
‡ As per season, special offers were given to the
customers.
 Personnel features

‡ Highly knowledgeable and trained employees.

‡ Talented and devoted employees.
‡ Individualized attention.
‡ Customized approach.
 Loyalty program-
Need for implementation«.??

‡ Best way to build loyalty is to show some loyalty to

your customers.
‡ Reward program- Reward may include enhanced
guest recognition, tangible benefits in the form of
discounts and coupons, special guest privileges such
as priority reservations for preferred time slots and
therapist, intangible rewards, point system.
 Consequences
of reward program

‡ Positive-
s makes customer feel special.

s Customer satisfaction.

s Nurture relationship with customers.

s Improves the image of the company.

s Improves sales through word of mouth.

‡ Negative-
s Customer expectation increases.

Cabo San Viejo was under dilemma because more

satisfied the customers were the greater were their
demands.
 Learning

‡ To build name like Cabo San Viejo, it is important

to provide best possible facility and service to the
customer.
‡ In order to sustain customers, it is important to
devise strategies to achieve greater customer as well
as employee satisfaction.