Evoe Spring Spa: A Positioning Dilemma

Section E, Group 14

1) Identify and explain the variables used to define the consumer segments in the case.
Ans - The variables that were used for segmentation were
1. Lifestyle preferences means which value did people place more importance on - beauty
or health. People categorized as snails placed value on health while did not think that
indulgence in beauty was necessary. Climbers placed importance on indulgence in beauty
and none on health. Racers valued health more but also cared for indulgence in beauty while
sprinters valued both.
2. Spending capability indicates people’s propensity to spend on wellness. Snails
preferred affordable health services; Climbers were willing to willing to spend a little extra on
wellness; Racers, being brand conscious, had a higher spending ability and Sprinters was
the segment with the maximum budget for wellness.
3. Pace of life means people’s willingness to adapt and change their habits. Snails were
characterized by relatively stable lifestyle with little inclination to change while climbers had
an inclination for experimentation. Racers were predominantly urban adults with fast pace in
life and willingness to experiment while Sprinters were opinion leaders with fast lifestyle and
limited time and hence valued brands even if they required to pay premium price.

2) Who is the target audience for Evoe Spring Spa? Why?

Ans - Our primary target audience is Racers because
1. These people closely followed health and wellness information that shows that they took
health matters seriously and hence would require lesser effort to convince about the benefits
of Evoe.
2. This segment has high brand affinity and is conscious about the brand which they use.
Thus, we would be able to get repeat customers.
3. They have heard of spa but have not visited one. Thus, it’ll be easier to convert these
people to Evoe brand.
4. Quite modern in their outlook and they will be willing to visit the Evoe spas.

3) Which of the three positioning concepts identified by Evoe would you recommend? Why?
Ans - We recommend Affordable Health because of the following reasons:
1. Easily communicable to consumers - Better communication will help in developing credibility
towards the Evoe brand among the minds of the consumers.
2. Positioning as a “Health” brand - The people in this category resonate themselves with health
and wellness. The concept when diffused properly within this consumer segment will create
brand loyalty and customer retention.
3. Affordable at the same time - The punchline of the concept emphasizes both on affordability
and health which are among the primary needs of the Indian consumers.