3E DELIVERABLE 4

This is the final business proposal for RejuvenEYES’, inclusive of all relevant information
regarding Marketing, Operations and Supply Chain Management, Finance, and Team Dynamics.

Robert Amey
Chelsea Brittain
Kalynn Butler
Joseph Huntington
Jordan Reinking
Tyler Robinson
 Table of Contents
EXECUTIVE SUMMARY ......................................................................................................................... 1
M371 REQUIREMENTS ............................................................................................................................ 2
Distribution: ...............................................................................................................................................................................2
Pricing: ........................................................................................................................................................................................2
Promotion: ..................................................................................................................................................................................3
P371 REQUIREMENTS ............................................................................................................................. 5
Quality Management: .............................................................................................................................................................5
Inventory Management:.........................................................................................................................................................8
Recruitment and Training: ....................................................................................................................................................9
Z371 REQUIREMENTS ........................................................................................................................... 11
APPENDIX A – Cost-Based Pricing Strategy......................................................................................... 15
APPENDIX B – Value-Based Method – Cost of Ownership ................................................................. 16
APPENDIX C – SERVQUAL Analysis ................................................................................................... 17
APPENDIX C – CONTINUED ................................................................................................................ 18
EXECUTIVE SUMMARY
Deliverable four presents the final details for the RejuvenEYES MedSpa business plan.
This deliverable will further develop the different aspects of RejuvenEYES that will enable it to
be successful. The marketing section will outline the distribution, pricing, and promotional
marketing strategies. This will be followed by operations and supply chain which will discuss the
details of quality and inventory management and break down the hiring and training of the key
personnel involved with the business on a day to day basis. The financial analysis section will
break down the costs, revenues and include all pertinent details and thereafter, provide an NPV
and IRR that will determine whether to accept or reject the business proposal. Lastly, the team
dynamics section will discuss a very important interview and the way that the answers can shape
and mold the RejuvenEYES business model.

1
M371 REQUIREMENTS
The marketing section will further develop the rest of the marketing strategy while
considering the target market, SWOT, and PLC. The marketing portion will introduce why direct
marketing channel will be the best option for RejuvenEYES and why competitive-based pricing
was chosen. Lastly, the promotion section discusses the client-centric promotional strategy.

Distribution:
RejuvenEYES is operating in a direct marketing channel because a service is being
offered directly to the consumer. The main benefit of a having a direct marketing channel is there
being no other members to increase the product cost, which allows for higher rates of profit. 1
Also, by having a short channel level, there is no possible problems with other channel members
and the company would hold all the power. Finally, a direct marketing channel allows customers
to develop an individual relationship with the workers and create loyalty to the company. 2 On the
other hand, offering a service with a direct marketing channel compared to a tangible product
with an indirect marketing channel limits the geographical reach and business volume. Also, a
marketing channel can cause some conflict, but it can be beneficial and enable the company to
increase quality and production.

Pricing:
It was determined that competition-based pricing would be the best option for
RejuvenEYES. As there is a heavy competition in the Carmel area with similar medical spas,
RejuvenEYES understands that consumers will compare their prices with the prices of their
competition. The prices were set slightly higher than the competition to signal better quality and
value to the customers. The cost-based pricing method was not used because it does not consider
consumers’ or competitors’ prices in the marketplace. The price would decrease each year as
costs and demand would increase. The services RejuvenEYES offers would be priced lower than
the competition and the target market would begin to question the quality of the services offered.
Alternatively, the value-based: cost of ownership method could be a beneficial pricing strategy,
but it would be difficult to determine the useful life of RejuvenEYES’ services as opposed to its
cheaper alternative.

The alternative to using RejuvenEYES’ services would be potential customers attempting

the services at home, which presents many risks. For example, there are many do-it-yourself
2
 chemical peels available online for as little as $15 but the potential risks can be as severe as
destroying facial tissue and heart, kidney, or liver damage, depending on the kind of chemical
peel attempted. The hidden costs with do-it-yourself chemical peels can greatly outweigh paying
a professional to complete the service. 3 Lastly, to use the value-based pricing method can be
highly effective but it requires a great amount of consumer research and understanding how
consumers will attach value to the benefits from RejuvenEYES’ services. It can be detrimental to
any company if it is not properly implemented.

Chemical Chemical Chemical Facials Microderm- Vanquish Laser Microlaser Massage Mibo
Peels: Peels: Peels: abrasion RF skin Peel treatment
Level I Level II Advanced Sculpting treatment
Treatments
Competition- $150.00 $200.00 $350.00 $100.00 $125.00 $600.00 $400.00 $300.00 $80.00 $150.00
Based
Value- $300.00 $1,000.00 $2,500.00 $100.00 $125.00 $600.00 $1,000.00 $600.00 $80.00 $117.00
Based:
Cost of
Ownership
Method4
Cost-Based5 $230.39 $252.33 $252.33 $252.33 $241.36 $230.39 $241.36 $241.36 $241.36 $230.39

Promotion:
RejuvenEYES' primary promotional strategy is centered around client interaction, in
store and via social media. Their service revolves around the client experience, so it is best suited
that their promotional strategy be client-centric as well. In the first year of business, the
introduction level of the product life cycle, is their opportunity to captivate their target market
and develop a reputable name. In doing so, RejuvenEYES will implement paid social media
campaigns to reach their market. In their growth and maturity stage, RejuvenEYES is going to
focus on the clients that they have built, while also developing new clients. The focus on
RejuvenEYES' current clients will be encouraged through promotional discount offers and a
loyalty program.

Year Objective Promotion USP Promotion Frequency Cost Source

Element Activity
1 Building a Advertising A study Paid social Two Cost per click: https://adespresso.com/bl
clientele and done by media advertisement approximately og/facebook-ads-cost/
raising AdEspresso advertisements, pushes per $0.28
awareness of claims that to the target month
the brand and the average market
services ROI is
offered by 150%
20%

3
Year Objective Promotion USP Promotion Frequency Cost Source
Element Activity
2 Increasing Sales "7 out of 10 5% off any Unique Cost with be http://www.convinceand
sales revenue Promotion: customers service/product promotional variable with convert.com/digital-
by 10% from Promotional use email coupons offered discount the offer that is
incremental Discount discounts"- via email to emails once provided to the marketing/10-important-
sales this creates a current clients per month, client, as that is statistics-your-company-
70% with special lost revenue. needs-to-know-about-
reaction to holiday offers The fixed cost providing-discounts/
those associated will
emails, with be 10% of the
55% of generated https://twohatsconsulting
those 70% income paid to .com/fee-structures-in-
using the an advertising advertising/
promotions. agency
3 Retaining Sales A revenue Loyalty The loyalty The cost of the https://www.visioncritica
clients by Promotion: increase of program, program will loyalty program l.com/customer-loyalty-
offering a Loyalty 12% is including a be offered is minimal,
loyalty Program accompanie referral year-round, with the stats/
program in d by a program until the cease exception of the
which a loyalty of business. variable cost,
reward program. It discounted
system is is "7 times service/product
placed. Also, easier to at 3%.
a referral retain clients
program will than grow
be new ones."
implemented
to grow
clientele.

4
P371 REQUIREMENTS
RejuvenEYES, an upscale medical spa that focuses on eye and facial treatments in a
luxury atmosphere, looks to join RevolutionEYES, an optometrist office specializing in
excellence and luxury in the eye care and accessory field, to form a multi-store brand alongside
RevolutionEYES’ store, LittleEYES. In this attempt to merge clientele, profits, and brand
recognition, not only hard work can be seen in the future but room for success and growth
throughout all three stores as well. By refining the service and processes of all three locations,
efficiency, effectiveness, and value can be performed better.

Quality Management:
In an effort to better understand and implement this new strategy into the already
successful RevolutionEYES brand, it becomes crucial to make appropriate use of brand
recognition, while refraining from interfering with the ongoing infrastructure. In this attempt
RejuvenEYES will see instant credibility in the market place, which over time will add to the
brand image whenever possible. The fact that RejuvenEYES is a primary service, intangible, and
completely separate in product and design from the other stores, allows for complete separation
in the process element from the other stores, paving the way for a difference in service packaging
to form. The service package, the bundle of goods and services that is provided in the
environment that RejuvenEYES will function, will have separate supporting facilities, facilitated
goods, and explicit services, while also trying to pull from the existing information and implicit
service in which the EYES brand entails.

In examining the different aspects of the service package, one is then able to visualize
how RejuvenEYES will operate and interact throughout its coordination with its sister stores.
Taking note of the supporting facilities, which are the physical resources that must be in place
before a service can be offered, differ in the tools, space, and training needed to provide the
service. This separate training can then be measured and compared to standards of both the
managers and customers to establish a baseline for proper value presentation. Along with this
comes the facilitating goods, or the material purchased or consumed by the buyer or provided to
the consumer. Here it is seen that the products used and sold to the consumer vary immensely
from that of the sister store, which can be used to generate different emotions and revenues from
the consumer base. The information packet is where RejuvenEYES seeks to find connection with

5
the EYES brand, as the different operational data and information provided to and by the
customer can be used to enable patient specific customer service throughout the three store
locations. Through a connected patient portal and sign in service, all patient data can now be at
the touch of a finger, allowing for a connection of all stores, promotional mixes, and customers
to their desired services. The explicit services or sensory benefits that are readily observable and
experienced by one's senses consist of the intrinsic features of the service. This is where
RejuvenEYES looks to step apart from the competition by providing consistent measured quality
service to the consumer time and time again. Furthermore, this idea then of the implicit service
and the extrinsic factor of the EYE brand of luxury and excellence is treated as the uppermost
echelon of society, when they walk through any of the doors.

Throughout this high degree of customer contact, as the customer remains a readily
available part of this service, how are measures made and quality standards upheld day to day,
week to week, or month to month? This idea is then implemented through things such as precise
training, customer questionnaires, and management level understanding of the complete product
life cycle. Now while all of these tools are crucial, how are hindrances in the service resolved
and how is the complete service measured and controlled to retain a firm brand image? A few of
the best options for this are things such as poka yokes, six sigma, and SERVQUAL. With a poka
yoke system being applied to RejunvenEYES service model, a system of readily available and
involved customers can come to provide information and input in secondary contact with the
managers in order to maintain a proper degree of established quality and standards. The idea is to
maintain and to meet the perceived value and reputation of the store as seen by the consumer,
taking time in replacing and changing processes as needed to uphold certain standards. Along
with this idea comes the interactive idea of Six Sigma and the DMAIC attitude as one must come
to define, measure, analyze, improve, and control the different facets of the company. In an
attempt to identify the customers’ needs and priorities, research and questionnaires can be
conducted in order to see what exactly is in high demand. What the customer wants can then be
measured at different key points throughout the process; first through interaction, and then
through receiving of the service, consultations, and in closing the sale with secondary contact, all
the while maintaining conversation throughout the process.

6
 This data is then gathered through the acute attention to the consumer and can be
analyzed to identify the defects in the process and to generate a plan to remove, fix, or bypass the
potential defects. In understanding where one step in the process is flawed, an improvement
strategy can then be implemented to fix this said error, which then can be measured and
ultimately controlled to maintain a consistency of minimal to no errors; this all can then be
processed through a SERVQUAL analysis by understanding the shortcoming in the gap analysis.
In this model, 5 gaps are established that can be seen in the figure on Appendix C. In gap 1, the
primary concern or issue between the customer and managers is not knowing the customers’
expectations. In gap 2, the wrong service quality standard seems to be the issue, as the difference
in service quality between what managers think and what customers expect, grows without a
readily available flow of information. Gap 3 then entails the service performance gap, which has
to do with delivery of the product between what is described and what is given. In gap 4, the
difference between received service and promised service arises. Then finally in gap 5, the
difference in what the customer expects, either through word-of-mouth, research, or any other
such process, and what they actually receive or experience arises. Through the R.A.T.E.R.
method, these gaps can be monitored and maintained as responsiveness, assurance, tangibles,
empathy, and reliability are controlled.6 In responsiveness it is the role of the staff and
technicians to provide a quality service while engaging the customer throughout the whole
process. Assurance comes in the knowledge and courtesy of the employees that develops through
training and personal ability. Tangibles are then the physical facility and machines,
which RejuvenEYES uses. Empathy comes in the form of the individualized approach which
RejuvenEYES uses with individualized attention and plans from consultations to completed
services. This all comes to rest with reliability as RejuvenEYES must perform the promised
service dependably and accurately.

In assessing these ideas of the SERVQUAL analysis as is found in Appendix C, the

connection between managements' role and customer expectations becomes more and more
prevalent. In coming to manage this, the process of implementing quality management 7 to the job
description of certain people throughout the company in key leadership roles, it begins to hold
people accountable for the work of others and themselves. The use of the quality manager job
description allows for an outline to form of the positions by listing key job tasks and
specifications for the position customized to what RejuvenEYES requires. These specifications

7
may come in the form of stringent training procedures, policies on customer evaluation, and
overall supervision of the service package. Along with this tool, a preventive corrective action
report can be utilized to help record quality errors and manage change in the future. 8 The report
is a mechanism initially used to record mistakes, can be used to help prevent future mistakes,
expose nonconformance within the company, and expose the root cause of recurring problems.

Inventory Management:
Due to the MedSpa being targeted 80% towards service, inventory management will be
very simple. The product line will remain very small because there will not be a need for a large
assortment of products to be sold. The only products that will be sold will be lotions and other
MedSpa essentials like oils and fragrances. Overall the inventory will all be on one small display
rack and therefore will not need any in-depth tracking like SKU numbers or detailed processes to
keep track. The most difficult task dealing with the inventory will be the inventory that is going
to be used by the therapist and other workers while performing the services. Each service will
require a certain product and therefore will need daily replenishing. Each of the 8 services will
have a SKU number that will allow the receptionist to reorder accordingly. For example, the
MiBo machine requires ultrasound gel and that will need replenished each month. So, the MiBo
SKU will need a reorder point each month. The chemical peels are used on a daily basis and so
each week the receptionist will reorder the supplies needed based on what was used that week.
The receptionist will base the reorder point at 20% of inventory. Meaning, when the inventory
gets down to 20% then he or she will reorder 100% of that SKU inventory. This system will
ensure that each product being used during the services will remain replenished for a smooth
service experience all week long.

The front desk receptionist will do a weekly inventory list of what products sold up front
that week and will add those to the reorder list for the next week. Each week the ordering will be
different based on how many products are sold. The MedSpa will keep a small safety stock of
products in the supply room. This will be enough just to fill up the display rack with the most
popular items. Since the business is not heavily reliant on products, the inventory task is
relatively simple. The numbers for each product will start out equal across the board until the
receptionist begins to realize what products are most popular and then those will be ordered at
25% more to keep a safety stock of those items.

8
Recruitment and Training:
The recruitment and training of the employees for the MedSpa would be simple as well
because most of the training that would need to be done would have occurred in school before
the person is hired at the MedSpa. The main manager must be a registered physician and will be
be required to have all their schooling and licensing requirements fulfilled before the spa would
consider hiring them.

The interview for the physician would happen first and would be done by the owner of
RevolutionEYES optometry office. The questions that would be most important would be similar
to but not limited to: 1.) How would you make this spa successful? 2.) What type of work
environment do you thrive in? 3.) Tell me about a time when you had to overcome an obstacle
and tell me how you overcame it? 4.) What value can you bring to this company? These
questions would allow a good starting point for the owner to decide if this person would be a
viable candidate to start at the company. Once the physician is hired then they would be able to
hire the therapist and the front desk receptionist based off the same basic questions. The
physician will have complete control of the business but will technically be under the supervision
of the owner of RevolutionEYES.

The other hires would include massage therapist which would also already have their
medical license allowing them to work in the spa. Those people would have already competed
the training before they arrived at the spa. The educational requirements for the massage
therapist jobs would be a master’s degree. The physician would have to have their doctorate and
have already finished their residency. To become the main manager/physician, the more
experience, the better. Five or more years of working experience would be preferred because this
person would be running the spa day in and day out and would need that experience to succeed.

The only other person that would be on staff at RejuvenEYES would be the front desk
receptionist. The requirements when looking for this person would be: hardworking, dedicated,
friendly, committed, critical thinking skills, and overall team player. The educational
requirements for this position would be a high school diploma at least. College is preferred but at
least a high school diploma is required, and the minimum age is 18 years old. The job description
for the receptionist would be to check customers in to the system, make sure that the customers
are comfortable in the waiting room until it is their turn to take part in their spa experience.

9
When a room opens, the receptionist would walk the customer back to their room and introduce
them to their therapist that would be performing the service. Once the service is over, the
receptionist would check the patient out and collect payment. Also, a very important aspect of
this job is to ensure that the customer is happy with their service and if there were any problems
that those are addressed. If the customer is unhappy, they should leave with a complementary
product and feel happier when they leave. The receptionist main job is to ensure that the
customers feel welcomed in the spa and leave happier than when they came.

During the downtimes when customers are not in the lobby area and at the end of each
day, the receptionist would also be required to keep the lobby and main corridors vacuumed and
clean. The therapist would clean up after themselves in their rooms, but the receptionist would
clean the main common areas. The timing of the cleaning would be left at the discretion of the
receptionist personal preference. They can clean during downtimes, before opening in the
morning, or after closing. The receptionist would shadow the RevolutionEYES receptionist for
one week prior to their start date to be trained on the company's check in process and the overall
work environment. The receptionist training would be completely hands on and entail learning
the system and the job requirements. The rest of the job would be up to the person on how they
want to proceed with their duties. There would be a lot of freedom with how they wanted to
tackle the tasks set before them.

Overall, the hiring and training of the employees will be simple because of how few
employees will be required. The training will have already been completed before the hiring
process even begins because of the schooling required for the therapist and physician. This will
reduce the extra costs of training for RejuvenEYES and allow the salaries of the employees to be
higher. Considering they will be more than qualified for the service they are completing, they
will be able to provide the customers with the most amazing RejuvenEYESing spa experience.

10
Z371 REQUIREMENTS
Our team chose to interview Dave Browne, former CEO of LensCrafters as someone we
viewed as a respected and highly effective leader. Browne graduated from the Wharton
Undergraduate School of Business in Pennsylvania and began working as a brand manager for
Proctor and Gamble in 1981, before he joined the LensCrafters team in 1986. At LensCrafters,
Brown held the CEO position, which he managed to obtain at the age of 29. His impressive
achievement was able to be accomplished through hard work and a Results Only attitude.

While LensCrafters saw acceptable revenue during Browne’s first few years as CEO, he
realized two things: he knew the company could accomplish more and he was miserable.
Recognizing that he was miserable at work, Browne decided to take some time away for himself.
It was during this time, he came upon the conclusion that he could no longer live two separate
lives while at work and at home. After implementing a plan to continue to work without
separating his home life, LensCrafters and Browne really took off. In joining the two and living
his best life in both places, he found success. To achieve success in the business place, you must
align your work and home values, which is essentially how Browne derived his leadership values
and principles.

Browne defines leadership as, “being a servant leader for others with HEART.” HEART
is an acronym where the H stands for higher calling, which is the business’ and yours. E is for
engage, equip, enable, and energize. A is for attention to detail, especially time. R is for research
– measure everything. T is for total reward system, which can be money, tangible, mental,
emotional, and/or spiritual. The overall meaning of being a servant leader is to help those you
can, others to help those they can, and it will blossom into what Browne calls an inverted
pyramid. The customers are at the top of the pyramid with the CEO at the bottom and the
workers and stakeholders in between. Browne notes, “At the end of the day winning is about
looking back a year and seeing you have indeed created value for all three constituents you serve
- your customer, your investors/shareholders, and your employees. There are many choices every
day where you may favor one over the other but success is making the right choices so over the
course of a year all three are much better off.” To make this idea of an inverted pyramid
successful, it is not easy to complete and requires a few key factors. There must be an

11
understanding to put the customers' needs above your own and to actually understand what they
want. Then, the delivery of these wants and needs must be unique to add value.

Through his leadership technique, Dave developed three key characteristics of leadership.
First, you must have absolute clarity about what you and the business want to be and want to
accomplish. Second, you must have absolute clarity on how you will lead and how you want
others to lead. Third, leaders must consciously engage, equip, and energize those you lead at
three levels – the head, hands, and heart. These three characteristics shapes Browne’s style,
values, principles, and ethics as a leader.

Browne defines clarity in two ways: having clarity for yourself and your business. Clarity
for yourself allows your gifting, purpose, and passions to come to life and will usually lead to
more fulfillment and success. Clarity for your business unleashes the full energy and talents of
your people against a common goal, in a consistent and compelling way. Having “absolute
clarity” is knowing exactly what you want to accomplish and exactly what the business needs to
accomplish then aligning them together to work out any problem. Building this clarity can be
done by establishing a vision, mission, values, and plan.

The second part of his idea as a leader and business owner/executive is absolute clarity
on how you will lead and how you want others to lead; this is where Browne said he had the
most trouble. Originally, he would lead how he knew how, but he was not able to get people to
lead the way he wanted them to. He then noticed the actions he was taking were not the actions
he would like for everyone else to take, therefore, he needed to practice what he was preaching.
In realizing this, he decided that there needed to be a change in the structure of leadership in
LensCrafters. He started with two questions that he portrayed to his employees: what do they
need to hear and what do they need to see? This led him to pursue a servant leadership type
model. To be a leader, is to be a servant leader for others. Excellence in execution is all about
clarity of what you want accomplished (where are you going), best practices instilled (how to get
there), energy created to do even better (constant improvement), and measuring/evaluating
everything along the way to know if you are indeed getting to where you want to be and that
changes are improvements

The third aspect of the leadership model, leadership must consciously engage, equip, and
energize those you lead at three different levels, the head, hands, and heart. To engage is to help

12
employees understand exactly why what they do is important, not only to themselves but to the
company and consumer as well. Equipping is to provide the proper training and tools for them to
do what they need or want to do. Energize is to help them realize that there is a higher calling to
it all and to help them have fun. After providing those three things, change has to happen at the
next three levels, the head, hands, and heart.

To lead at the head, you must assume everyone you meet is smart and engage them in a
respectful manner. Take the time to not only tell them what others to do, but also why they are
doing it. We must let them use their heads too, leaders are not the only one with ideas. Leading at
the hands can be done by providing clarity on what to do and how to do it. Browne believes, it is
cheaper to train twice and do it once then to constantly do something wrong or halfway. He feels
the heart is the part that is the most important, but also often the most overlooked. The idea of
leading at the heart is that you have to engage people both emotionally and spiritually. Emotion
channeled the right way creates energy and spirit channeled the right way creates purpose.

Dave Browne attempts to motivate people both extrinsically and intrinsically. He

believes there cannot be too much communication, recognition, celebration, and encouragement.
He also wants for everyone to let people know they are loved, appreciated, and encourage them
to try and have as much fun as they can. Though rewards are sometimes provided, he gives his
employees a purpose. His goal is to provide a total reward system, not just a monetary reward.
“To have a reward be tangible, mental, emotional, and spiritual is the goal,” says Browne. He
believes people behave for explicit rewards 25 percent of the time and for their own reasons 75
percent of the time. Therefore, you have to start with the tangible and once that is met you can
move to the others. While at LensCrafters, Browne provided the same reward structure to
everyone as monetary incentives went but had plenty of incentive opportunities to help
employees find self-fulfillment in different ways. He actually came to find that the workers who
pursued the other incentives such as donating glasses or eye exams in their community in return
gained the most monetary rewards for their stores and were performing the best.

Through leadership, Dave has been able to discover his purpose and higher calling to lead
and help others. His ethics are strongly based in his faith, which is where all the change in
LensCrafters came from. Matthew 20 is the source he cites as his inspiration to become a servant
leader. Even after retiring from LensCrafters, Browne was not able to completely leave his

13
calling. After retiring, Browne worked as the director and CEO of Family Christian for eight
years, allowing him the perfect opportunity to blend his work with his faith. Before, he was not
living the life he wanted or being the leader, he knew he could be. By stepping back, readjusting
his plan and living through Christ, he was able to make a change that has brought countless
success. Dave Browne is now currently retired and the trustee or on the board of several
organizations and companies; he also travels and does public speaking.

14
 APPENDIX A – Cost-Based Pricing Strategy
The table below shows how the cost-based method was determined.
Cost-Based Year 1 Year 2 Year 3
Labor $242,122.50 $331,938.00 $ 403,015.50
Other Costs $143,839.56 $176,881.59 $ 211,537.31
Total $385,962.06 $508,819.59 $614,552.81
Demand 1759 2704 3696
Cost/Demand= $219.42 $188.17 $166.28
For example: Level I Chemical Peels in Year 1 = (Service Price x Demand %) = $219.42 x 1.05 = $230.39

Service Demand Year 1 Year 2 Year 3 Year 4 Year 5

Price Price Price Price Price
Chemical Peels
Level I 5% $230.39 $197.58 $174.60 $174.50 $174.60
Level II 15% $252.33 $216.41 $191.22 $191.22 $191.22
Advanced 15% $252.33 $216.41 $191.22 $191.22 $191.22
Facials 15% $252.33 $216.47 $191.22 $191.22 $191.22
Microdermabrasion 10% $241.36 $207.00 $182.91 $182.91 $182.91
Vanquish RF Sculpting Treatments 5% $230.39 $197.58 $174.60 $174.60 $174.60
Laser skin treatment 10% $241.36 $207.00 $182.91 $182.91 $182.91
Microlaser Peel 10% $241.36 $207.00 $182.91 $182.91 $182.91
Massage 10% $241.36 $207.00 $182.91 $182.91 $182.91
Mibo treatment 5% $230.39 $197.58 $174.60 $174.60 $174.60

15
APPENDIX B – Value-Based Method – Cost of Ownership
Prices were determined by using averages prices of services.
Service Cost
Chemical Peels Most consumers would be willing to pay these prices if it meant
avoiding permanent facial tissue damage, possible heart, kidney, or
liver damage and any other possible risks. 9
Level I $300.0010
Level II $1000.0011
Advanced $2500.0012
Facials $100.0013 There are many unsafe do-it-yourself facial treatments such as
using eggs whites and risking contracting salmonella or using
lemon juice could cause hyperpigmentation and hypersensitivity to
the sun.14
Microderm- $125.0015 At-home Microdermabrasion treatments can be beneficial for some
abrasion customers but they have smaller motors and less power. They
would be unable to penetrate deeper into the skin to provide precise
exfoliation.16
Vanquish RF $600.0017 The closest do-it-yourself solution to this would be unhealthy
Sculpting weight loss such as bulimia or anorexia.
Treatments
Laser skin $1000.0018 There have been some FDA approved laser skin devices but if it is
treatment improperly used, it can cause blotchy skin, scarring and blistering.19
Microlaser Peel $600.0020 This procedure is similar to the microdermabrasion but it goes into
deeper levels of the skin. The main risk of this service is
discoloration and if attempted at home, a deeper layer could be
penetrated and cause scarring.21
Massage $80.0022 While there are minimal risks with an at-home massage, the
experience varies greatly. A massage with a trained professional
will aid in helping sore muscles.
Mibo treatment $117.0023 There are not many at home treatments for dry eye except eye
drops and some over-the-counter medications but they will be little
to solve the problem.

16
APPENDIX C – SERVQUAL Analysis
The table below shows the SERVQUAL chart with the corresponding information per point found below
for RejuvenEYES.

Words of mouth
Personal Needs Past Experiences
communication

Expected Service

Gap 5

Perceived Service

Customer

External Marketer
Service Delivery Communications to
Gap 1 Gap 4 Customer

Gap 3
Translation of
Perceptions into
Service Quality

Gap 2

Management
Perception of
Customer
Expectations

17
APPENDIX C – CONTINUED
Word of mouth communication – This is where RejuenEYES finds its first and biggest concept of quality
standard as it tries to build upon the RevolutionEYES and LittleEYES name. Through an integrated
customer base, which builds upon the whole base from new clientele at any of the three locations, word of
mouth remains an integral part of the promotional mix and quality expectation between the stores.
Personal needs – These are met through the development and process of the RejunvenEYES service
throughout its life cycle to meet the demands of the consumer. Those coming to RejuvenEYES are
looking for medical grade spa treatments for the facial area.
Past experiences – These experiences come into play in three distinctive areas as competitor experience,
the EYES brand experience, and the RejuvenEYES experience all comes into play.
Expected service – This is what the customer expects from the described product such as the physical
treatments provided.
Perceived service – This is the things that come along with the product such as relaxation and luxury,
which the RejuvenEYES Med Spa comes to offer.
Service delivery – This is the execution of the service and while RejuvenEYES is a high contact service
it will require the interaction of the consumer to deliver the appropriate service.
Translation of perceptions into service quality – This is where the company perceives to turn the service
into more than what it is. In the case of RejuvenEYES', an experience is being formed and added to the
product.
Management perception of customer expectations – This is where the management sets the standard for
the company through training and what services are provided.
External communications to customers – This comes to RejuvenEYES in the form of secondary
communication through patient portals and connection through the separate sister companies.
Gap 1 (Management Perception Gap) – This gap comes in the presumptuous measure of deciding what
the consumer wants and expects based upon trends in the market, when the reality of what the consumer
may want or expect could be drastically different. This gap forms in the wake of inadequate research or
improper focus.
Gap 2 (Quality Specification Gap) – In the absence of a variety of planning procedures and measures, the
capacity to meet all goals set may become an infeasible task to meet set perceptions. This can be
combated through the strict defining of service and procedures however.
Gap 3 (Service Delivery Gap) – Through improper training or placement of employees with machines,
errors may arise. Through auditing of customer experience and interactions, corrections can be made to
retain the correct level or quality and standards.
Gap 4 (Market Communication Gap) – In not meeting promised or perceived service requirements this
gap grows. It can be met with clear concise communication and marketing practices though.
Gap 5 (Customer Gap) – In not meeting the following gaps this gap grows as dissatisfaction with the
customer base grows. In an attempt to retain customers and reputation, all other gaps must be managed to
hold this one in check.

18
1
Forest Time, "What is a Direct Channel of Distribution?" Chron, accessed April 19, 2018,
http://smallbusiness.chron.com/direct-channel-distribution-42213.html.
2
Money Matters, "Advantages & Disadvantages of direct distribution method of services,"
Money Matters, 2018, accessed April 19, 2018, https://accountlearning.com/advantages-
disadvantages-of-direct-distribution-method-of-services/.
3
Grace Wong, "Experts Warn of Risks of Some at-Home Chemical Peels," ABCNews, January
5, 2017, accessed January 5, 2018, https://abcnews.go.com/Lifestyle/experts-warn-
dangers-home-chemical-peels/story?id=44552377.
4
See Appendix B.
5
See Appendix A.
6
Rockpulkit Follow, "Servqual Model," LinkedIn SlideShare, December 19, 2013, accessed
April 21, 2018, https://www.slideshare.net/rockpulkit/servqual-model.
7
Tiffany Black, "10 Quality Management Tools," Inc.com, accessed April 20, 2018,
https://www.inc.com/guides/2010/09/10-quality-management-tools.html.
8
Ibid.
9
Grace Wong, "Experts Warn of Risks of Some at-Home Chemical Peels," ABCNews, January
5, 2017, accessed January 5, 2018, https://abcnews.go.com/Lifestyle/experts-warn-
dangers-home-chemical-peels/story?id=44552377.
10
DocShop, "Chemical Peel Costs & Financing," DocShop, September 6, 2017, accessed April
20, 2018, https://www.docshop.com/education/dermatology/facial/chemical-peel/cost-
financing.
11
Ibid.
12
Ibid.
13
Sarah Siddons, "Facials 101," How Stuff Works, accessed April 20, 2018,
https://health.howstuffworks.com/skin-care/beauty/skin-treatments/facials4.htm.
14
Jessica Cruel, "Please, Please Don't Try These Semidangerous DIY Beauty Hacks," Self, July
19, 2017, accessed April 20, 2018, https://www.self.com/story/diy-beauty-hacks-dont-do-
them.
15
Docshop, "Microdermabrasion Treatment," DocShop, September 6, 2017, accessed April 20,
2018, https://www.docshop.com/education/dermatology/facial/microdermabrasion.

16
Dana Oliver, "What Is Microdermabrasion, And Will It Improve Your Skin?" Huffington Post,
July 30, 2015, accessed April 20, 2018, https://www.huffingtonpost.com/entry/what-is-
microdermabrasion_us_55b8d082e4b0a13f9d1ad6ec.
17
Realself, "How much does Vanquish cost?" Realself, accessed April 20, 2018,
https://www.realself.com/question/seattle-vanquish-cost.

19
18
American Society of Plastic Surgeons, "Laser Skin Resurfacing," American Society of Plastic
Surgeons, accessed April 20, 2018, https://www.plasticsurgery.org/cosmetic-
procedures/laser-skin-resurfacing/cost.
19
Mayo Clinic, "Laser Resurfacing: Overview," Mayo Clinic, accessed April 20, 2018,
https://www.mayoclinic.org/tests-procedures/laser-resurfacing/about/pac-20385114.
20
Carolina Laser and Cosmetic Center, "Microlaser Peel - Frequently Asked Questions,"
Carolina Laser and Cosmetic Center, accessed April 20, 2018,
http://www.carolinalaser.com/microlaserpeelfaq.html#4.
21
La Jolla Cosmetic Surgery Centre, "MicroLaser Peel," La Jolla Cosmetic Surgery Centre,
accessed April 20, 2018, https://www.ljcsc.com/skin/microlaser-peel-san-diego/.
22
Thumbtack, "Massage Therapists on Thumbtack cost," Thumbtack, accessed April 20, 2018,
https://www.thumbtack.com/p/massage-prices.
23
Dry Eye Clinics, "MiBo Thermoflo – Frequently Asked Questions," Dry Eye Clinics, accessed
April 20, 2018, http://www.dryeyeclinics.co.uk/dry-eye-treatment/mibo-thermoflo-dry-
eye-treatment/mibo-thermoflo-frequently-asked-questions/.

20