HWS30104 PENGURUSAN OPERASI SPA

CASE STUDY

NAME: SARANIAH A/P PERUMAL

NO MATRIC: H21A2635

LECTURE CLASS: L1

TUTORIAL CLASS: L1T2

LECTURE NAME: HASIF RAFIDEE BIN HASBOLLAH

1.0 BACKGROUND OF SPA

Spa Ceylon combines Ayurvedic wisdom and teachings with modern extraction
of natural components to provide a wonderful product experience. The product line includes
a variety of items, including foot care products, treatment oils, massage balms, bath and
massage oils, essential oils, purifying bars, exfoliating bars, shower gels, body scrubs, body
packs, milk baths, body lotions, moisturizing balms, body mist, calming balms and herbal
compresses. In addition, the organization provides a variety of company-branded massage
establishments with Ayurvedic and company-specific training. The company has been
making natural health goods and components in Sri Lanka for more than 50 years, which shows
in their products and services.

In order to produce their range of magnificent spa rituals and royal spa formulae, Spa
Ceylon captures the romanticism of old Ceylon and combines it with the ancient wisdom of
Ayurveda. These formulae and rituals are designed to soothe, calm, and rest the body, mind,
and spirit. Currently, Spa Ceylon manufactures more than 450 home scent items, wellness
goods, and personal care products that are influenced by Ayurvedic medicine. Luxury skin,
body, bath, scalp and hair care preparations, oils, balms and potions, home scent blends,
candles, diffusers, incense, herbal infusions and teas, handcrafted stoneware, bath accessories
and a variety of tropical resort apparel are all included in their comprehensive product line.

The company aims to offer the utmost and all-encompassing natural health lifestyle through
their goods and well-informed staff. Spa Ceylon products are crafted exclusively using
premium natural ingredients, including organic essential oils sourced from the tropical island,
sun-ripened Aloe Vera produced organically, clinically tested pure extra virgin coconut oil,
mineral-rich salts from the Indian Ocean, and authentic Ceylon spices. Their production and
quality assurance processes integrate traditional herbal prescription with contemporary
dermatological research to safeguard and harness the herbal benefits of the all-natural
constituents in our high-performance formulations.

Spa Ceylon was launched in 2009 by two brothers, Mr. Shiwantha Dias and Mr. Shalin
Balasuriya. The headquarters of this spa at Colombo 02, Sri Lanka, Western Province. They
market ayurvedic products created with organic coconut oil, aloe vera, ocean salts, and spices
from Ceylon. Additionally, they are in favour of human rights, which include opposing animal
experimentation and child labour. Additionally, they are quite eco-friendly. every consumer's
present interests. They are renowned for their dedication to their employees, distributors, and
providing the highest caliber inventions. They wish to be recognized for their unique,
customized goods.

'Spa Ceylon' has rapidly emerged as a powerful entity in the international luxury wellness
industry and has successfully expanded its high-end Ayurveda brand worldwide. It now boasts
a global network of over 70 branded stores and spas located in prominent countries such as
Ginza Tokyo, Japan; Melbourne, Australia; Singapore; Seoul & Ulsan in Korea; Kuala
Lumpur, Malaysia; Istanbul, Turkey; Mumbai, Chennai, Goa & Hyderabad in India; Karachi,
Pakistan; the Maldives Islands; Cypress; and throughout Sri Lanka. Spa Ceylon has
establishments in Kiev, Ukraine and the USA.

The spa advocates for eco-friendly products, upholds human rights, and opposes the
utilization of child labor and animal experimentation. All goods are devoid of alcohol and do
not contain any animal-derived substances.

Figure 1: Logo Spa Ceylon

2.0 MARKETING PLAN

There are two types of marketing plans: formal and informal. The purpose of the marketing
plan is to think through marketing goals. Excellent examples of marketing plans will contain
four elements which are objectives, strategies, tactics and timeline. An objective is determined
by the marketer's desired achievements. The strategies outline the methods by which the
objectives will be achieved. The tactics outline the implementation of the strategies. A timeline
can serve as either a component of tactics or as a distinct calendar that monitors activity.

2.1 OBJECTIVE

The objectives of the Spa Ceylon brand are to improve the process of market development. The
employees are responsible for understanding, generating, tracking, and achieving a set of short-
term or long-term goals of the organization with the help of brand objectives that have been
determined. SMART criteria are used to evaluate the effectiveness of objectives (John, 2017).

For the years 2021 to 2024, the Spa Ceylon has set its brand objectives.

1) Increase the yearly value of the brand by 15%

Increasing the total value of the Spa Ceylon brand and improving how it is perceived is the
primary emphasis of this mission.

2) Achieve a 20% annual increase in brand awareness

Making the brand more recognizable and well-known in the market is the objective of this
endeavor.

3) Each year, increase the market share by 20% percent.

The goal of Spa Ceylon is to not only increase its market presence but also to acquire a larger
portion of the market.

4) Increase your marketing efforts both online and offline by 10% each year.

By highlighting the significance of investing in both online and offline marketing channels to
promote the brand, this objective emphasizes the relevance of doing so.

5) Increase the level of participation on social media platforms by 30% each year

In order to have a more robust presence on the internet, Spa Ceylon intends to actively engage
with its respective audience on social media.
 6) Increase the yearly percentage of online conversions by thirty percent

The purpose of this objective is to enhance the efficiency of online platforms in terms of
converting site visitors into paying consumers.

Considering that Spa Ceylon is a luxury brand, it is of the opinion that the most important
thing that has to be done is to construct the brand image through an awareness campaign. The
following list of aims and objectives is arranged according to the priority of the project.

 Create the impression that the brand is one that is premium.

 Increase the level of brand recognition in nations that have already been reached
(Spa Ceylon boutiques located in cities) by up to 40% by the year 2023
 In the year 2021, the number of new customers who made purchases online will
reach 100,000.
 Increasing the readership on social media by thirty percent by the year 2023.
 By 2022, increase the amount of engagement on social media by 50%.
 By the end of 2021, increase the number of hyperlinks to online platforms
associated with Spa Ceylon by one hundred percent.

Discuss the pricing objectives that Spa Ceylon has set for itself. The company is pursuing
multiple pricing objectives at the same time. Discuss the reasons that you feel the organization
is embracing these pricing objectives and the value proposition that it is attempting to achieve.

The pricing target of Spa Ceylon incorporates return on investment (ROI), which is an
acronym for return on investment. When Spa Ceylon receives economic benefits from an
investment in their business activity, they are referred to as having a return on investment
(ROI), which stands for the value that should be returned through investment. It is likely that
marketing will have an impact on the profits and investments of Spa Ceylon. According to
Philip (2012), the objective of the return on investment (ROI) indicator is to determine the
exact rate of return for each period of investment in a particular economic unit.
 Persona Monitoring the digital ROI

Increase retention and create brand loyalty. Increase the rate of per person visits per
month by 20%
Increase the brand awareness. Increase the number of foreigners visited per
month by 15%
Increase brand awareness and increase Increase online conversion by 10%
retention.
Generate sales lead and drive more Increase social media mentions by 20%
engagement on social media.

Increase sales or revenue

Through the construction of a global presence with over 90 branded stores and spas located
all over the world, in addition to outlets in over 30 places in Sri Lanka, Spa Ceylon has
demonstrated that a genuine Sri Lankan firm has the potential to expand its operations into
international markets.

Through close collaboration with the Spa Ceylon team, Antyra (solution website for spa
Ceylon) was able to gain a deeper comprehension of the primary objectives that they would be
pursuing. Throughout the entirety of 2018, it discovered that the revenue generated by the
online store remained unchanged. A primary focus of the advertising activities for 2019 was
on:

 Increasing revenue
 Increasing visibility of specific product ranges
 Improving customer lifecycle & average basket size
2.2 STRATEGY

A marketing strategy is a comprehensive plan devised by a firm to effectively engage potential

customers and convert them into customers of its products or services.

Segmentation, targeting, and positioning (STP) is a three-stage marketing technique that

focuses on company products and services and how businesses sell them to different groups of
customers. The STP marketing strategy recommends breaking the marketplace into smaller,
more manageable pieces, creating marketing campaigns that speak directly to the target
demographic, and modifying the company's positioning according to what the customers want
and expect.

Market Segmentation

Market segmentation targets consumers by dividing them into subsets defined by their
unique characteristics, such as their wants, needs, and reactions to advertisements. One of the
steps in market segmentation is deciding which of these subsets to focus on. Additionally,
market segmentation refers to the method through which a business separates a market into
subsets characterized by shared characteristics such as requirements, wants, behaviours, and
potential product and service preferences.

Among the several varieties of market segmentation, three of the most prevalent are
geographical, demographic, and psychographic. Bringing their services and goods to the
modern era by the old Ayurvedic recipes, Mainly Spa Ceylon primarily aims to improve human
lifestyles. Spa Ceylon has to pick their clients carefully if they want that.
1. Demographic

The concept of spa services is still relatively new in Sri Lanka. As a result, the target
demographics consist of persons from other countries with high incomes and travel regularly
and individuals who live a luxurious lifestyle in Sri Lanka. Spa Ceylon placed a particular
emphasis on demographic segmentation through the provision of this product and service. Even
though this is likely the simplest method of establishing client groups, it continues to exercise
significant influence. It is possible to identify non-characteristic factors by demographic
segmentation, such as

 Age

 Gender

 Ethnicity

 Income Level of education

 Religion

By their income, demographic segmentation could target prospective clients. The high-
income demographic is the focus of the Spa Ceylon company. To market their product, they
employ various strategies. Seasonal offers are among the numerous offers that they provide.
Utilizing appealing packaging and special offers tailored to women, they aim to attract a
youthful demographic. Corporate gift purchasers were the target audience for a separate offer.

Three categories can be used to segment the current market for spa therapy in Sri Lanka.

1. The clients' average annual income

1. Medium class earner

2. High-class earners

2. Clients' Gender Profiles

1. Male

2. Female

3. Consider the age of the customers.

1. Adults aged 18 to 50
2. Geographically

Spa Ceylon primarily caters to affluent tourists and well-off Sri Lankans in this market niche.
Due to the concentration of wealthy individuals in urban areas, Spa Ceylon strategically locates
its spas in these regions.

3. Psychographic

Since the primary concern of both tourists and Sri Lankan residents is wellness, Spa Ceylon
is similarly oriented in that direction.

4. Behavioral

Spa Ceylon only uses natural components in its products, which are intended to provide the
best therapies and spa services. Because the spa treatments are performed utilizing their
premium selection of products—such as therapy for mental relaxation and treatment for
physical relaxation—visitors may be guaranteed to experience some of the best spa services in
the nation.

Target market

Twenty years ago, Sri Lanka did not offer any renowned spa services. Spa Ceylon initiated
spa services in Sri Lanka, significantly triumphing. Consequently, many foreigners and Sri
Lankans have begun utilizing the Spa Ceylon brand. Spa Ceylon has achieved a significant
milestone in the Sri Lankan Spa Sector by successfully identifying its target market. One of
their primary target demographics is the younger generation. Specifically, young women
comprise their customer base. This category offers exclusive promotions, products bundled
with coupons, and marketing initiatives showcasing limited-time deals. Similar to the
promotions available on Women's Day, there are also special offers on Mother's Day. Spa
Ceylon has continually held the most significant market share for Ayurveda products in the
country due to its effective target marketing and competitive pricing strategies.

The current target market of Spa Ceylon in Sri Lanka is:

1) Size

Spa Ceylon targets both high-end locals and foreigners. There are no specific gender
restrictions, but they do not encourage older adults to get spa treatments.
2) Profitability.

Spa Ceylon's prices are significantly higher than those of their competitors. This indicates
that their focus is on individuals with high-income levels within the current market.
Furthermore, we have yet to see any substantiation, meaning that their objectives are also
focused on catering to the needs of senior individuals aged 60 and above. Thus, Spa Ceylon
caters to affluent individuals and the younger demographic as their clientele. Additionally, their
therapeutic parlours are in urban locations and luxury hotels.

3). Easy of reach

Spa Ceylon is a highly esteemed spa brand commonly utilized in many hotels. They have
picked the hotelier industry as the most accessible means of accessing their local and
international consumer base. This will also facilitate the expansion of their customer base into
a broader demographic.

Positioning

Positioning in the market: Following identifying a target market, the organization is

tasked with determining its market segment positioning. The ability of an organization to
provide a superior benefit is highly dependent on its marketing mix strategy. The use should
be duly acknowledged and incorporated into both the pricing and promotion strategies.

Below are some common types of positioning in spa Ceylon Company.

Pricing

Pricing is an important consideration that plays a role in the decisions made by most clients.
Because they have a firm brand name and high-quality natural goods, the prices of the products
and services offered by Spa Ceylon are slightly higher than average.

Quality

The majority of excessive prices can be turned down by quality. The buyer is enticed to
purchase the product even though it is expensive because of its outstanding quality. The natural
components used in producing this company's goods constitute the highest possible quality.
The quality of their products is therefore highly valued.

Spa Ceylon has secured a sizeable portion of the market by emphasizing quality rather than
money over several years. The new product is developed with quality in mind as well.
 The combination of green and black, representing nature and the earth, is used in the
packaging of Spa Ceylon, which gives the impression of opulence and royalty. The many types
of packaging contribute to the royal wealth, and they also include how spas and boutiques are
decked up in accordance with their respective themes.

High-end, beauty-conscious spa enthusiasts and value seekers are the target audience for
the ayurvedic products and treatments and their associated services. You will be treated to the
highest quality spa treatment and organic products of the highest grade. Ayurvedic trademark
treatments are provided, which include massages from head to toe performed by professionals
who are qualified and competent in the art of Ayurveda. Customers are willing to pay more to
feel the benefits of the most effective treatments and beauty care products.

Pricing strategy

One of the most essential parts of the marketing mix is product pricing. As far as the
company is concerned, it is the sole revenue generator. The foundation of the pricing strategy
is the solid reputation of the brand. The items supplied by Spa Ceylon are priced relatively high
due to their uniqueness and the benefits received from establishing a thrilled factor among
customers. This pricing technique is known as premium pricing. Everyone knows that Spa
Ceylon's primary goal is to introduce the International Luxury Segment to Sri Lanka's (the
country's) renowned Ayurvedic treatment and tradition. Spa Ceylon uses premium pricing as a
strategy because of the following reasons:

• Janet Cosmetics, the parent company, has a solid foundation to build an exclusive luxury
brand.

• Sri Lanka's Auverdic heritage has never been promoted or highlighted to such an extent in
the market.

• Spa Ceylon has a large potential customer base, but the average consumer can't afford it.

• Since the market is niche, they can set prices to perfection.

A luxury brand's pricing approach is crucial to strike a balance between availability and
exclusivity. With the launch of its multi-way product line into cosmetics and herbal products,
Spa Ceylon has used the premium price strategy to attract customers who are willing to pay a
higher price and maximize the company's revenue. This strategy demonstrates price sensitivity
to customers. Motivating this group to conduct market research will attract new clients
interested in the company's sales and products.

Spa Ceylon's operations aim to generate a manageable profit. Additionally, they strive to
maintain strong customer relationships to maintain revenue and consumer loyalty.

Advertising

Currently, Spa Ceylon serves eleven countries and has a solid advertising strategy. They
often use seasonal designs and themes to draw people in with unique collections of limited-
time goods and services in each area. The ad campaign uses high-profile Indian models to make
people think of luxury.

Consistency

When it comes to price, maintaining consistency and transparency will help strengthen
consumers' trust in the brand. Spa Ceylon ensures that all its goods and service facilities, both
domestically and internationally, are consistent. The client experience and the supplied
atmosphere are on par in every location on the island. Every product possesses a wow factor
and a premium experience from when it is packaged to when it is consumed. Furthermore, no
particular grades or attributes depend on the region, which means that it is universal for all of
the items.

So, when it comes to pricing, the United States Dollar (USD) is the currency used whenever
it is applicable and appears consistent across all countries. As a result of the fact that the prices
of the products do not differ from one continent to another, there is a method for maintaining
consistency in the pricing system.

Health and Wellness Collaborated with nature

Among the many essential aspects Spa Ceylon is bringing to the general public's attention
are the fight against urban pollution and the admiration of the use of natural products. Their
primary focus is on shielding the skin from the harmful effects of blue light and providing it
with solutions that are free of toxins for the face. Changing attitudes towards the beauty
industry are being brought about by their pursuit of well-being and a healthier way of life.

Personal Selling

The Spa Ceylon Team is highly skilled in promoting the product, possessing extensive
knowledge of the products and services offered. They are also trained to a high standard of
effectiveness. The staff's ability to cultivate a positive demeanour and appealingly present
themselves is crucial in establishing a rapport with customers and delivering exceptional
service that exceeds expectations.
2.3 TACTICS

Antyra's solution investigated the possibility of developing a digital marketing funnel that
would enable Spa Ceylon to engage with prospective clients at each buyer journey stage across
the entire process. Specific initiatives were established to generate awareness, engagement, and
action (online sales).

In addition to this, it was necessary to have a solid comprehension of Spa Ceylon's product
catalogue, including the most popular products, the user groups who made the majority of their
purchases from the website, and so on. As an illustration, most users tended to interact with the
product-specific advertisements displayed online and then purchase the product offline through
one of the Spa Ceylon stores located elsewhere. To increase the number of conversions that
occur online, we investigated the most effective ways to leverage e-commerce strategies to
persuade people to make purchases online.

They were able to successfully put together an integrated digital campaign that was
centered on the creation of brand visibility as well as product-level visibility by making
consistent efforts across both paid and non-paid media. During eight months, they were able to
treble the monthly revenue by combining this with additional marketing initiatives such as
influencer content and search engine optimization. Consequently, there was a 508 per cent rise
in overall revenue, a 685 per cent increase in transactions, a 755 per cent increase in products
sold, and the SLT Zero One Awards for Best Integrated Digital Initiative (2019).

Based on that, Spa Ceylon uses websites, Facebook, and Instagram to sell its products and
make customers aware of new updates and new product launches; the content marketing
activities done by Spa Ceylon include giveaways, collaboration with famous beauty blogger
YouTubers for product reviews, which will have a higher reach and Conducts challenges and
competitions. The post on social media is designed creatively to grab customers' attention;
challenges are often held to keep the bond and interaction with customers. Figure 2 shows Spa
Ceylon's YouTube, Facebook, and Instagram pages. These would provide customers with
multiple ways to interact with Spa Ceylon. Product reviews can give people insights into the
product before buying it at home.
 Figure 2: Spa Ceylon current content marketing channels

RACE FRAMEWORK CONTENT IMPLEMENTATION

REACH Influencer marketing
SEO marketing
Social media marketing
ACT Websites
Online PRESS articles
CONVERT E-commerce transactions
Promoting availability and reliability of
product
ENGAGE Communications on sites
Customer feedbacks
Repeat purchases
2.4 TIMELINE

The key events in Spa Ceylon Sri Lanka's marketing timeline have significantly
contributed to the brand's growth and expansion in the luxury Ayurveda market. The
establishment of Spa Ceylon in 2009 marked the beginning of the brand's journey, reflecting
its dedication to combining ancient Ayurvedic wisdom with modern extraction of natural
components to create a luxury product experience. This commitment to quality and authenticity
laid the foundation for the brand's reputation and positioned it as a leader in the luxury
Ayurveda market.

The opening of the first spa in March 2010 and the official launch of the product brand
in May 2010 were pivotal moments that expanded Spa Ceylon's presence and offerings. These
events not only increased the brand's visibility but also provided a platform for customers to
experience the luxury and quality of Spa Ceylon's products and services firsthand. This direct
engagement with customers helped build brand loyalty and contributed to the brand's positive
reputation in the market.

In 2018, the brand's focus on increasing revenue, enhancing the visibility of specific
product ranges, and improving the customer lifecycle demonstrated a strategic approach to
driving growth and promoting its unique product offerings. This focus on customer satisfaction
and product visibility further solidified Spa Ceylon's position as a prominent player in the
luxury Ayurveda market, attracting a loyal customer base and driving sales.

Looking ahead, the marketing plan for 2021-2024 outlines ambitious objectives and
strategic elements to drive the brand's continued success. The plan includes increasing brand
value, awareness, market share, and online conversions, reflecting Spa Ceylon's commitment
to sustained growth and market expansion. The use of segmentation, targeting, and positioning
strategies to capture high-income foreign individuals, luxury lifestyle enthusiasts, and
wellness-conscious consumers aligns with the brand's premium positioning and commitment
to delivering luxurious, high-quality products.

Their digital marketing journey has also been noteworthy, with a particular highlight
being the collaboration with Antyra Solutions. In 2019, Antyra Solutions closely worked with
the Spa Ceylon team to understand their objectives. Their efforts focused on revitalizing the
online store revenue, devising digital marketing funnels, and setting up campaigns to create
brand and product visibility. Their comprehensive approach encompassed activities such as
influencer content, SEO, and the integration of e-commerce tactics to drive online conversions.
Notably, their concerted efforts resulted in a quadrupling of the monthly revenue within 8
months.

Furthermore, the marketing tactics featured in Spa Ceylon's plan, such as digital
marketing funnels, specific campaigns for awareness, engagement, and action, and the use of
influencer content and search engine optimization, underscore the brand's innovative approach
to engaging with customers and driving sales. By leveraging these tactics, Spa Ceylon aims to
enhance brand visibility, strengthen its online presence, and create a compelling brand
experience for its target audience.

Overall, the key events in Spa Ceylon's marketing timeline have contributed to the
brand's growth and expansion by establishing a strong reputation, driving customer
engagement, and strategically positioning the brand in the luxury Ayurveda market. These
events have played a crucial role in shaping Spa Ceylon's success and solidifying its position
as a global luxury brand.
3.0 CONCULASION

In conculasion, Spa Ceylon's growth from its start in 2009 to its current position as a
global luxury health brand has been shaped by careful planning, a commitment to quality,
and creative marketing strategies. The company is dedicated to combining old Ayurvedic
knowledge with current extraction methods. This has led to a wide range of products that
support customers' overall health.

Spa Ceylon has big plans for its marketing plan for the years 2021–2024, which is all
about growing the brand's value, popularity, market share, and online sales. The brand's
premium messaging is supported by segmentation, targeting, and positioning strategies,
which show its dedication to providing high-quality, high-luxury goods. Additionally, Spa
Ceylon's focus on human rights, eco-friendly practices, and opposition to child labour and
animal testing shows its moral stance, which fits with the values of today's ethical
customers.

The brand's digital marketing history, which includes working with Antyra Solutions,
shows that it can change to changing market trends. Spa Ceylon has not only made more
money online by using SEO strategies, influencer marketing, and e-commerce techniques.
Still, it has built a strong online footprint that has helped it grow around the world.

Spa Ceylon's marketing timeline includes important events like the opening of its first
spa in 2010 and its strategy focus on revenue growth in 2018. These events have played a
big role in the company's success. A loyal customer base has grown because the brand
always provides high-quality goods and services and is dedicated to making customers
happy.

It looks to the future with confidence, knowing that its thorough marketing plan and
creative strategies will help it keep growing and remain a world leader in the luxury health
industry. The brand's unwavering commitment to natural, high-quality ingredients, honest
business practices, and putting the customer first strengthens its unique identity and ensures
a bright future in the crowded spa and health market.
4.0 REFERENCES

Spa ceylon - market strategy - 1 electronic submission coversheet  please complete and
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Spa ceylon: SPA ceylon – luxury ayurveda spa – sri lanka. Spa Ceylon | Spa Ceylon –
Luxury Ayurveda Spa – Sri Lanka. (2021, March 10). https://store.spaceylon.com/

Spa ceylon’s comprehensive digital solution: Antyra solutions. Spa Ceylon’s Comprehensive
Digital Solution | Antyra Solutions. (n.d.).
https://www.antyrasolutions.com/digital/spaceylon-case-study/

Spa ceylon crosses 100 stores globally. Sri Lanka Export Development Board - Sri Lanka
Business Portal. (n.d.). https://www.srilankabusiness.com/news/spa-ceylon-crosses-
100-stores-globally.html