Evoe Spring Spa: A Positioning Dilemma

Decision Report

13th September 2015

MEMO
EVOE SPRING SPA
Date: 2010
From: Aditya Prakash Parwal, Executive Assistant
To: Co-founders: Gopal Raman, Anil Kumar, Sumit Gupta
Subject: Report on positioning of Evoe Spring Spa
Enclosed is the report on the positioning of Evoe Spring Spa.

Executive Summary
Evoe Spring Spas planned launch is on 1 st January 2011. Task is to
choose the best possible positioning for Evoe Spring Spa from among the
three equally viable options:
1. Affordable Indulgence
2. Affordable Health
3. A Little Vacation
Above options were evaluated on the basis of criteria:
1.
2.
3.
4.

Resonance with consumers

Communication
Differentiation of Positioning
Acceptance

The recommendation is that Evoe Spring Spa should position itself in

Affordable Health segment.

Table of Contents
Situation Analysis.......................................................................................5
Problem Statement.....................................................................................6
Options Available.......................................................................................6
Criteria for Evaluation................................................................................6
Evaluation of the Options...........................................................................7
Recommendation........................................................................................8
Action Plan.................................................................................................8
Exhibits.......................................................................................................9

Situation Analysis
The spa segment in wellness market is estimated at INR 4 billion to 5 billion.
The wellness industry is expected to grow at a compounded annual growth rate
of 20 percent over the next three years.
Indias changing social context and its increasingly hectic lifestyles had given
rise to stress-related problems, which had prompted a shift toward conscious
self-care to ensure a healthy, active and extended life. This shift has provided a
great opportunity for spa industry.
Spa segment in India is flourishing mainly in urban cities. Male population in
urban cities is becoming more image conscious due to increasing peer pressure
and is feeling the need to look good and presentable. The female population in
urban cities considers spas a better option when compared to beauty parlors for
beauty solution and treatments. However the usefulness of spas for women in
India is not limited to just beauty solutions. Working women, who like men,
have a stressed lifestyle seek relaxation and rejuvenation at the spa. Although
spa has succeeded in establishing itself as a preferred choice for certain
consumer segments, still there are gaps that need to be bridged.
One of the key challenges for spas is social and cultural acceptability. Cross
gender massage services being offered by some spas are not culturally
acceptable in India. Similarly common shower areas for men and women are
also a big deterrent. Also there is a negative connotation attached to spas, due
to some massage parlors also posing as spas. This prevents people from
openly admitting their indulgences in spas. In addition to this people also do
not consider spas as a place to visit with family; as a result consumers avoid
visiting spas in their free time, as they prefer to spend that time with their
families. Awareness
There is limited awareness among some sections of consumers regarding health
and other benefits offered by spas.
The three co-founders believed that many consumers did not consider spa
services because of their exorbitant prices. Accessibility was another concern.
Perception of spas as beauty parlors or as massage parlors often led to negative
connotations.
Factoring the above factors, the three co-founders needed to decide on the
positioning of Evoe Spring Spa (Evoe) in the relatively nascent Indian Spa
Market. Evoe needed a differentiated and clear positioning to ensure it would

be their target consumers first choice and would remain so after their first
experience at Evoe.

Problem Statement
A decision regarding on how Evoe Spring Spa should position itself in
the market and which consumer segment it should target needs to be
taken.

Options Available
Three distinct positions Evoe can occupy in consumers mind:
1. Affordable Indulgence
2. Affordable Health
3. A Little Vacation

Criteria for Evaluation

1. Resonance with consumers
2. Communication
3. Differentiation of Positioning

4. Acceptance

Evaluation of Options
Affordable Indulgence
1. Most resonance among Climbers, Sprinters. Good Resonance among
Racers. Zero Resonance among Snails. (Exhibit 9)
2. Based on insights from focused group discussions, the idea of pampering
and rejuvenating, at an affordable price, can be communicated effectively.

3. High competition because of presence of number of players in affordable

segment which are catering to beauty/pampering services. (Exhibit 5)
4. Negative connotations like Beauty and Massage services may harm the
positioning and may be misconstrued.

Affordable Health
1. Most resonance among Racers, Sprinters. Good Resonance among Snails.
Some Resonance among Climbers. (Exhibit 9)
2. Indians have well-respected systems of Ayurveda and Yoga. But there is
lack of awareness among consumers about health benefits of spa services.
It would take some effort to communicate this idea to Snails, but Indias
historic interest in health and wellness practices can be exploited here.
3. Very less competition because of presence of very few players. Area on the
map is fairly empty and uncluttered. (Exhibit 5)
4. Being associated with health and wellness, it will be able to address the
negative connotations to a large extent. Effort will be required in getting
Snails to accept this.

A Little Vacation
1. Good resonance among Climbers, Sprinters. Some Resonance among
Racers. Zero Resonance among Snails. (Exhibit 9)
2. Consumers do not consider visiting spas with their family and do not
associate spa with vacation. Also, vacation is not an activity to be carried

out frequently. Therefore, it would be difficult to communicate this idea to

consumers.
3. Less competition because of presence of very few destination spas and
accessibility is also not easy.
4. The idea will be accepted by families but accessibility will be of concern.

Recommendation
Evoe Spring spa should position itself in Affordable Heath segment.
This positioning will ensure reach to all consumer segments since all
segments have some resonance with this positioning. It is the only
positioning in which Snails segment, which has the largest population
(>700 million), has some level of resonance. Also, this positioning will
have very less competition because of presence of very few players; area
on the map is fairly empty and uncluttered (Exhibit 5). Being associated
with health and wellness, it will be able to address the negative
connotations associated with spas to a large extent. Indias abiding
interest in health and wellness practices can be exploited to a large extent
by this type of positioning. The acceptance among consumers will be
more compared to other two positioning.

Action Plan
1. It should promote itself as the affordable and accessible spa service
provider. Affordability will ensure reach to snails.
2. Through its promotional campaign, it should give across the idea
that health and wellness are key to a happy lifestyle and it one of
the exclusive spa providing that benefit through its services.
3. Evoe should tie up corporate companies and come up with tailor
made plans for busy professionals.
4. Evoe should have a celebrity, who is associated with fitness and
health, as a brand ambassador.
5. Evoe should also run special promotional campaign highlighting its
various herbal and natural services for racers.

6. It should organize workshops in various schools, colleges, gyms,

sports clubs and other public places driving home the idea that
feeling good about life is connected to health and wellness.
7. It should conduct special sessions for those consumers who
consider spa visits as a lifestyle statement and are willing to pay
premium.

Exhibit 5