To Understand the

Feasibility of Opening
up a Baby Spa in
Delhi-NCR

Jyotsna Dhawan
FMRM – level 3
BACKGROUND STUDY
E W
V WELLNESS INDUSTRY
E
O L
L L
U N
T E
I S
O S
N

O
F

Source: Global Wellness Institute, n.d.

 WELLNESS INDUSTRY
 Wellness is the active pursuit of activities, choices, and lifestyles that lead to a
state of holistic health.

 The Wellthy Mindset - Wellness, the “new black,”

 A status symbol among consumers who prioritize maintaining their well-balanced

physical and mental health.

 Consumers are moving towards products and services with embedded health
benefits.

 Globally, wellness sectors represent a $3.7 trillion economy (Global Wellness

Institute, 2017)

Source: Global Wellness Institute, n.d.

 INDIAN WELLNESS INDUSTRY

 Unstructured beginning in the early 1990s to a comprehensive ecosystem today.

 Young population with rising income levels.

 Wellness industry in India has crossed INR 1 trillion by 2015.

 Achieve about INR 1.5 trillion by FY20, according to report by FICCI and EY.

 2nd largest exporter of Ayurveda and alternative medicine, having over 6,200 indigenous
herbal plants.

 Population is moving towards fitness and overall well-being to de-stress.

 Major transformation, within age group of 20-44 trying out exciting things like Zumba,
aerial yoga, Pilates and kickboxing.
 SPA INDUSTRY

 Enhancing overall well-being through a variety of professional services that

encourage the renewal of mind, body and spirit.

 Just as the spa industry has evolved over the years so have the definitions of spa.

 In many cultures spas are closely linked with water, health and hygiene.

 As the years progressed, so did the spas.

 Since the 21st century there has been an explosion of spas, especially in Asia.

 The growing interest for spas has increased the variety of treatments as well as
destinations of the actual spa.

 Spas for fitness, stress management, peace of mind, pampering and pleasure, health
and wellness.
 TYPES OF SPA
TYPES OF SPA

 Day/Club/Salon Spas
 Destination Spas and Health Resorts
 Hotel/Resort Spas
 Medical Spas
 “Other” Spas

Source: Global Wellness Institute, 2017

 INDIAN SPA INDUSTRY

 India ranks 4th in the top ten spa markets in Asia-pacific.

 It is estimated that a total of 2.5 million affluent households across 35 Indian cities out of
which 3 in 10 individuals visit a spa or a parlour every month.

 The spa culture is growing among Indians.

 Spa industry of India has seen a boom and gained popularity in the world as a health and
wellness centric nation.

 It all depends on exposure, awareness and increasing spending power of Indians.

Source: Global Wellness Institute, 2017

 INDIAN SPA INDUSTRY
 The future of the INDIAN spa industry is in the hands of millennial’s.

 The future spa goers are made up of educated, busy individuals who are tech savvy and
cash rich, time poor.

 They want to use their latest smart phone to find out all they need to know before
arriving at the spa and check what's trending.

 Negative Image - Myth: Spas are ‘shady escapades’

 In India unfortunately the Spa and Wellness Industry is highly unorganized.

 Currently there aren't any SPECIAL licenses required to start a Spa business in India.

Source: Aura Heritage Spa, 2017

BABY SPA
 BABY SPA

 Baby Spa is a safe, relaxed environment where your baby

can develop and be well prepared for a lifetime of
adventures.
 It is a place where parents can introduce their babies to
water.

*Baby spas across the world fueling an $11 billion a year*

 WHY WATER

 Babies naturally familiarize with water as they are

developed in a water environment inside mother's
womb.
 Water is considered healing.
 Water is relaxing and stimulating at the same time.
 Easier to learn to move in the non-restrictive
environment of the water than on land.

*Just like parents, baby’s health and wellness is also important.

So creation of a socially fun and nurturing environment that make
babies feel at home and free to explore gave birth to baby spa*
 GLOBAL SCENARIO FOR BABY SPA

 There are now hundreds of baby spas across the country fueling an $11 billion a
year industry.

 The new services may be expensive, but parents say the benefits far outweigh the
costs, as do those who are running the spas.

 Discovering that to bring sound youngsters up in the 21st century implies

something more than showing them to eat their vegetables.

 Tuned-in guardians, equipped with more choices and assets look for similar spa
and health treatment they've depended upon to now support their children's.

 The spoiling royal residences are the most recent pattern to hit the worldwide spa
industry.

Source: Babyscastle, 2017

 INDIAN SCENARIO FOR BABY SPA

 Baby massage is a practice said to be found in India thousands of years ago as a part
of Ayurvedic medicine.

 Baby Massage holds a very sacred position in traditional Indian families

 Coconut oil and olive oil is used to moisturize the skin and promote circulation.

 People hire massage aunties or dais who would rub the baby’s body with oil for an
hour or more and the poor baby would be crying in pain all the while.

 A soft, gentle massage is enough for the baby.

Source: Self-curated collage of Baby Massage in India (Images sourced from the Internet)
NEED GAP ANALYSIS
 MARKET SHARE

Chart 10 – Market Size Info-graphic

Source: Self-curated (using data from Current population of India, Child line India org (2012), Country meters information, Global Wellness
Institute, Indian wellness industry, Parenting Healthy Babies, Spa business)
LIFESTYLE CHANGES

 The target customer

are mothers.

 Tuned-in parents,
armed with more
options and resource.

 Lifestyle changes
helpful in acceptance
of baby spa by the
millennial’s.
 POPULATION OF KIDS

Population of India (division)

Source: Countrymeters.info, 2017
 India is one of the youngest nations in the world.
 Out of which 29% of its 1.2 billion population is under 14 years.
 Out of which large number of about 29% constitutes children in the age
between 0-5 years.
 The huge market share of kids gives rise to a lot of new markets and
opportunities.
 MASSAGE BENEITS

 Touch is the primary communication received by a newborn.

 Infant massage has been a longstanding tradition.

 Baby massage most effective techniques for improving infant health.

 Being caressed and touched through massage also acts as psychological

food for your infant.

 It is the best form of touch therapy for infants.

 Combine cognitive benefits with sheer bliss at baby spa.

 Result is a booming business.

 GAP

Stress is no longer belonging to only older people.

Just like parents, baby’s health and wellness is also important.

Unending doubts of managing the pain and stress experienced by an infant.

A Baby’s brain and muscles grow with USE.

Trend of baby massage done by aunties or dais.

Unorganized sector, which needs an organized alternative for the comfort of

parents and their babies.

Promising idea, bridges the gap between unorganized malish-walis and organized
baby spa.

Finding a safe and hygienic place, with trained therapists for baby massage.
RESEARCH PROCESS
 RESEARCH MODEL
TO UNDERSTAND THE FEASABILITY OF OPENING UP A BABY SPA IN
DELHI-NCR

The Spa Industry in India Feasibility of Baby Spa in Delhi-NCR

RO 2
RO 3
RO 1 To understand RO 4
To analyze the
To explore the the current To formulate a
customer
business lifestyle business plan
acceptance
ecosystem of scenario of for setting up
towards the
Spa industry in infants and a Baby Spa in
idea of a Baby
India. toddlers in Delhi-NCR.
Spa.
India.

PRIMARY AND SECONDARY

RESEARCH

DATA COLLECTION

DATA ANALYSIS

BUSINESS MODEL

CONCLUSION
RESEARCH PLAN FOR OBJECTIVE 1

RO 1
To explore the business ecosystem of Spa industry in
India

EXPLORATORY RESEARCH DESIGN

SECONDARY RESEARCH

Market Research Reports

Websites
Journal Articles
Dissertation Thesis
Books
Research Articles
Research Papers
Blogs
RESEARCH PLAN FOR OBJECTIVE 2
RO 2
To understand the current lifestyle scenario of infants and toddlers in
India

EXPLORATORY RESEARCH DESIGN

PRIMARY RESEARCH SECONDARY RESEARCH

Market Research Report

QUANTITATIVE RESEARCH
Websites
Journal Articles
Dissertation Thesis
Books
Questionnaire Research Articles
Research Papers
Blogs
Close Ended Question
Sample Size – 200
Sample Unit - Females (18-40)
Purposive Sampling
Scaling Method – Likert Scale
Sample Frame – Delhi-NCR
 RESEARCH PLAN FOR OBJECTIVE 3
RO 3
To analyze the customer acceptance towards the idea of a Baby Spa

DESCRIPTIVE RESEARCH DESIGN

PRIMARY RESEARCH

QUALITATIVE RESEARCH QUANTITATIVE RESEARCH

Expert Interview
Netnography - Instagram, Questionnaire
Facebook, Blogs

Close Ended Question

Sample Size - 200
Sample Unit - Females (18-40)
Purposive Sampling
Scaling Method - Likert Scale
Sample Frame - Delhi-NCR
 RESEARCH PLAN FOR OBJECTIVE 4
RO 4
To formulate a business plan for setting up a Baby Spa in
Delhi-NCR

DESCRIPTIVE RESEARCH DESIGN

PRIMARY RESEARCH SECONDARY RESEARCH

QUALITATIVE QUANTITATIVE Market Research Report

RESEARCH RESEARCH Websites
Journal Articles
Dissertation Thesis
Books
Expert Interview Research Articles
Netnography – Instagram, Questionnaire Research Papers
Facebook, Blogs Blogs

Close Ended Question

Sample Size - 200
Sample Unit - Females (18-40)
Purposive Sampling
Scaling Method - Likert Scale
Sample Frame – Delhi-NCR
FINDINGS & ANALYSIS
FINDINGS

Source: Lbb.in, 2016

 FINDINGS

Source: Self (Based on Questionnaire & Interview)

 FINDINGS FROM EXPERT INTERVIEW
 Oil used
In winters olive oil is being used because is considered to be warm whereas in
summers coconut oil is used because of being cold in nature.

 Avoid newly born babies

 Benefits of massage
In India massage is essentially an indirect follow up as soon as the baby is born.

 Parent’s responsibility
A lot of parents these days appoint aaya’s exclusively for the baby.
Parents are ready to spend extra when it involves the baby and his health.

 Acceptance of the idea

It can give a shape to the unorganized masseuses also known as malish-walis and
bridges the.
 FINDINGS

Source: Self (Based on Questionnaire & Interview)

 FINDINGS
Satisfied with Massage by Aaya’s

Hygiene Massage technique/Therapist

59
qualification
62
44
49

27 27
26
22
14
12

Highly not Not satisfied Neutral Satisfied Highly Highly not Not satisfied Neutral Satisfied Highly
satisfied satisfied satisfied satisfied

Hygiene Choosing Spa Safety

141
139

33 29
20
11 15 14
9 4

Least Not Neutral Important Most Least Not Neutral Important Most
important important important important important important
Source: Self (Based on Questionnaire)
 FINDINGS
WillingtotoTravel
Willing Pay for Baby Spa
Buy Additional Items
3%
5% 161 160

6% Less than 2 km

26%

2 - 5 km
38%
43% Less than 3k

5 - 10 km 3k - 4k
85
4k - 5k
5k - 6k
10 - 15 km
More than 6k

30 More than 15 km
43%
23% 11
4% Any distance as long as they are 1
1%
8% good
Baby food Baby drinks Massage oils Baby care products None of the above Others

Source: Self (Based on Questionnaire)

BUSINESS PLAN
 BUSINESS PLAN
S.No Stages
1. Business Concept Ideation
· Need gap identification
· Unique selling proposition
· Customer identification

2. Marketing Opportunity
· Market size Brand
· SWOT analysis

3. Branding
· Brand name
· Logo
· Tagline

4. Marketing
· Mission and Vision
· Marketing mix

5. Human Resource Planning

· Management team
· Organizational structure

6. Financial Projections
· Income statement
· Balance sheet
· Sales
 BABY BALNEO

 Spa for babies (3 months to 3 years) and their parents, offering unique
water therapy and baby massage.

 It provides is a safe, hygienic and relaxed environment where the baby

can develop and be well prepared for a lifetime of adventures.

*Philosophy – Born to Nurture, Inspired by Nature*

 T
A
R
G
E
T

C
U
S
T
O
M
E
R
Source: Self-curated collage of Target Market (Images sourced from the Internet)
 STRENGTH
* The only Baby Spa in Delhi-NCR
* Premium services include Water
therapy and Baby massage
* First mover's advantage WEAKNESS
* Health benefits of Spa services * Since it is a new
for babies concept, people might
* Safe, Hygienic and Pleasant take time to accept it
atmosphere
S
* Lack of awareness
W
OPPORTUNITY
O
* Can expand across all Metro
cities and capture all the big
T
markets in India
* It can provide a new dimension
to existing spas and prove to
change the face of spa industry
in India
THREAT
* A breakthrough idea if * People can copy the idea of Baby
executed properly Spa
* Unorganized sector can pose a
threat
* The negative perception for spas
BRANDING
VISITING CARD LETTER HEAD

Source: Self-curated
 WEBSITE

Source: Self-curated (https://dhawanjyotsna94.wixsite.com/mysite)

MARKETING
 M
B A SERVICES
A S
S
PROVIDED
B
Y A
G
E

T
W H
A E
T R
E A
R P
Y
Source: Self-curated collage of Services Provided (Images sourced from the Internet)
 PRICE

Premium price for premium services, keeping in mind the niche target segment.
Premium price but Priceless Joy

• Baby massage (half an hour) = Rs 2000

• Water therapy (half an hour) = Rs 2000
• Both Baby massage & water therapy (1 hour) = Rs 3500
 LOCATION

Source: Self-curated collage for Location (Images sourced from the Internet)
 PROMOTION

 Blog Collaborations

 Print Ads and Magazine Ads

 Press Release Statement

 Promotional Offers

 Winning Contests

 Collaboration and Tie-ups

PROMOTION

GIFT CARDS

Source: Self-curated
BROCHURE
 ORGANIZATIONAL STRUCTURE

Pediatrician Manager

Therapist Nurse Helper Cleaner

Source: Self-curated
 FINANCIALS
Assumptions used are as follows:

Price per person (average) = Rs 3500

Number of working days per month = 26 days
Number of services done per day = 16 times

If the number of working day per month is 26 days,

The amount of output per month is:
= 16 times*26 days
= 416 services per month
S.no Sales Monthly Yearly
1 Average price per unit sold Rs 3500 Rs 3500
2 Total unit sold (expected) 416 4992
Total sales Rs 14,56,000 Rs 1,74,72,000

Working capital = 10% of Rs 1,74,72,000

= Rs 17,47,200
 FINANCIALS
Fixed Cost and Material Required
S.no Cost Monthly cost (INR) Yearly cost (INR)
1 Electricity/Utility bill 50,000 6,00,000
2 Average monthly cost 50,000 6,00,000
3 Salaries 1,77,000 21,24,000
4 Insurance 5,000 60,000
Total Rs 2,82,000 Rs 33,84,000

S.no Material Quantity Quantity Safety stock Total material Price/unit Total price
416 times 10% (INR) (INR)
1 Massage oil 1 (500ml) 13 2 15 bottles 5000 75,000
2 Swim diaper 1 416 41 457 100 45,700
Floatation
3 device 1 8 2 10 2500 10,000
4 Towel 1 48 10 58 350 20,300
Moisturizing
5 body lotion 1 (100ml) 5 2 7 1000 7000
6 Sanitizer 1 (100ml) 4 1 6 500 3500
1 pkt (50
7 Baby wipes pieces) 9 1 10 500 5000
Total Source: Self-curated 1,66,500
 FINANCIALS
Break even point = 33,84,000/ 0.47
= Rs 72,00,000

Projected Income Statement Amount (INR)

Revenue generated 1,74,72,000
(Less) Direct cost (variable cost) (-) 37,38,000
Gross profit 1,37,34,000
(Less) Operating expenses (fixed cost) (-) 33,84,000
Operating profit (EBDIT) 1,03,50,000
Less depreciation (-) 1,67,000
EBIT 1,01,83,000
Less Interest
EBT 1,01,83,000
Less Tax (20%) (-) 20,36,600
Net profit (PAT) Rs 81,46,400
Source: Self-curated
BUSINESS CANVAS

Source: Self-curated
 REFERENCING
• CHILDLINEINDIA.ORG, 2012. Child Rights in India. Child in India Statistics and Children in India. [online] Available at:
http://childlineindia.org.in/child-in-india.htm [Accessed 25 Jan. 2017].

• COUNTRYMETERS.INFO, 2017. India population 2017 | Current population of India. [online] Available at: http://countrymeters.info/en/India
[Accessed 17 Feb. 2017].

• GLOBAL WELLNESS INSTITUTE, 2017. Global Wellness Economy Monitor. 1st ed. [ebook] Global wellness institute, pp.3-7. Available at:
https://static1.squarespace.com/static/54306a8ee4b07ea66ea32cc0/t/58862a472994ca37b8416c61/1485187660666/GWI_WellnessEcono
myMonitor2017_FINALweb.pdf [Accessed 10 Feb. 2017].

• MITRA, S., 2013. Indian wellness industry to touch Rs 1 lakh crore by 2015: Study. [online] Business-standard.com. Available at:
http://www.business-standard.com/article/companies/indian-wellness-industry-to-touch-rs-1-lakh-crore-by-2015-study-
113080500653_1.html [Accessed 17 Feb. 2017].

• PARENTING HEALTHY BABIES, 2015. Importance of Baby Massage and Its Benefits. [online] Available at:
https://parentinghealthybabies.com/importance-of-baby-massage-and-its-benefits/ [Accessed 25 Feb. 2017].

• SHAH, G., 2016. The kidswear boom. [online] http://www.livemint.com/. Available at:
http://www.livemint.com/Leisure/1DS1o5gl6KyJyYTgaZT2yM/The-kidswear-boom.html [Accessed 17 Feb. 2017].

• SPA BALANCE, 2013. India: Emerging markets in the spa industry | Spa Balance Consulting. [online] Available at: http://www.spa-
balance.com/2013/11/10/emerging-markets-in-the-spa-industry-india/ [Accessed 1 Mar. 2017].

• SREENIVASAN, H., 2016. The Hands that Soothe the Cradle: Baby Spas. [online] ABC News. Available at:
http://abcnews.go.com/Nightline/Health/story?id=2695853 [Accessed 13 Feb. 2017].

• STEVENS, M., 2012. Latching on. [online] Spabusiness.com. Available at:

http://www.spabusiness.com/detail.cfm?pagetype=featuresonline&featureid=27515&mag=Spa%20Business&linktype=story&source=none&r
ef=n [Accessed 1 Nov. 2016].