HAVEN

MASSAGE
AND SPA
SALON
Sangay, Camarines Sur
Mobile Number: 09486259550
Facebook Page:
www.Havenmassageandspa.facebook.com

PARUGRUG, ELIZA JEAN MAE C.

3RD year BS Tourism Management
Executive Summary
 
Haven Massage and Spa Salon aims to be the premier massage and spa in the Camarines Sur
area. Through a unique combination of offered services and products, they will quickly gain
market share. Haven Massage and Spa Salon will provide customers with a relaxing,
rejuvenating atmosphere where all of their mind and body needs can be met. The business will
be set up as a partnership with Liza Ong and Emerson Lee and owning equal portions of the
operation.

Company Description
 
Haven Massage and Spa Salon located at Sangay, Camarines Sur is a new, upscale day spa
focusing on providing professional beauty treatments and services in an enjoyable environment.
It will showcase a well-designed interior as well as a full-featured waiting area equipped with
television screens and at-request refreshments. Haven Massage and Spa Salon also sells a variety
of premium beauty products which will be on display in the waiting room.

Haven Massage and Spa Salon was founded by Liza Ong. It was in September 2019 that she
decided to launch Haven Massage and Spa Salon. Specifically, during this time, Liza Ong took a
trip to Florida. During her trip, Liza Ong frequented a day spa that enjoyed tremendous success.
After discussing the business at length with the owner of the spa, Liza Ong clearly understood
that a similar business would enjoy significant success in her hometown.

Specifically, the customer demographics and competitive situations in the Florida location and in
his hometown were so similar that she knew the business would work. After surveying the local
population, Liza Ong went ahead and founded Haven Massage and Spa Salon. 

Market Analysis

Haven Massage and Spa Salon compete against small, individually owned salons, spas, massage
parlors, and against major regional chains. There are over 500+ registered beauty or massage and
spa salons in the Camarines Sur. 

According to a report, the spa and salon industry is a fragmented one, as the 50 largest
companies only hold 15% of the market. The market is estimated to grow to more than 2 billion
in three years. This bodes well for Haven Massage and Spa Salon; since there are no truly
dominant competitors, barriers to entry are not as high as many other industries, and a start-up
can expect to have success in this growing market. There is plenty of room in the industry
particularly for well-placed local day spas that cater to specific geographic and demographic
customer niches. Smaller spas can easily develop loyal clienteles that enable them to compete
and succeed against industry giants; in this industry, size does not necessarily mean an
advantage, which bodes well for Haven Massage and Spa Salon.

PARUGRUG, ELIZA JEAN MAE C.

3RD year BS Tourism Management
Market Trends
The market in which Haven Massage and Spa Salon will compete is experiencing a number of
different trends.
Market-level trends:

 Slow but steady growth. This market is expected to grow consistently at around 2%
annually.
 Success drivers. Customer satisfaction is what ultimately makes one massage and spa
triumph while another fails. The experience of a spa’s client has determined whether or
not they return and whether or not they refer others to the same spa.

Firm-level trends:

 Economies of scale. Larger spas are finding opportunities to succeed, by making effective
use of support personnel. Receptionists, washers, and assistants at larger establishments
can take care of many of the menial tasks that skilled masseuses and cosmetologists have
to handle in small day spas. This permits a skilled masseuse or cosmetologist to spend a
higher proportion of their time actually performing skilled services.
 Premium independent day spas. Independent day spas also compete in the premium
segment of the market. These firms develop loyal customer bases and select their location
on the basis of population demographics.
 Specialty massage and spa. Presently, a niche is being carved out for spas that cater to
very specific customer segments, such as those that desire gemstone treatments and
dermatologist brands.

Customer-level trends:

 Intense customer loyalty. Many massage and spa companies develop repeat customers
who become a regular client base and represent a significant portion of their revenues.
Massage and spa whose employees are able to develop strong relationships with
customers can expect to see more long-term success.
 Changing gender patterns. Traditionally, women bring in the lion’s share of revenues for
spas, using beauty services more often and spending more at each appointment. In recent
years, however, the male consumer’s attitude has begun to shift. Men now make up
approximately 25% of spa clientele.
 Gender preferences. Women are the most lucrative customers for spas, visiting more
often and purchasing more special treatments.

Economic of a Business
 
In any market economy, business plays a huge role. Business is the engine of an economy.
Business provides jobs that allow people to make money and goods and services that people can
buy with the money they make. Without business, the economy would be very inefficient and/or
very primitive.
 

PARUGRUG, ELIZA JEAN MAE C.

3RD year BS Tourism Management
The Marketing Plan
 
Haven Massage and Spa Salon seek to position itself as a respectable, upper-middle-market
competitor in the spa market. Customers can expect to receive professional beauty care from
skilled cosmetologists and masseuses for a price somewhere between discount chains and luxury
establishments.

The Haven Massage and Spa Salon Brand

The Haven Massage and Spa Salon brand will focus on the Company’s unique value proposition:
Convenient location
Familiar, regular specialists
Significant personal attention
Moderate price point
Comfortable, customer-focused environment
 
Promotions Strategy
Haven Massage and Spa Salon expect its target market to be individuals working and/or living
within a 5-mile radius of its location. Haven Massage and Spa Salon promotions strategy to
reach these individuals includes:

Local Publications
Haven Massage and Spa Salon Regular advertisements will run to maintain exposure to relevant
markets. Community newspapers, school publications, youth sports programs, and similar
channels will be a major promotion effort.

Major Publications
We will make careful use of advertising in selected larger publications. GOLDPRINT Publishing
House has a circulation of xyz and we can expect to reach a wider geographic region of
customers on a limited basis. Advertisements with major publications will be used selectively,
based on cost effectiveness. These ads will include discount coupons so that response to the ads
can be tracked.

Community Events/Organizations
Haven Massage and Spa Salon will promote itself by distributing marketing materials and
participating in local community events, such as school fairs, local festivals, homeowner
associations, or sporting events. Since mothers are often heavily involved in such things, we will
not only reach the lucrative audience of adult women but also potentially their families by
extension.

Commute Advertising
We will drive attention toward Haven Massage and Spa Salon by hiring workers to hold signs
alongside highways or streets. Advertising on heavily traveled commute routes are an
opportunity to alert large numbers of working individuals with disposable income of our
opening.

PARUGRUG, ELIZA JEAN MAE C.

3RD year BS Tourism Management
Customer Loyalty Programs
Haven Massage and Spa Salon will create a winning customer loyalty program to keep its best
clients coming back again and again. When not actively providing services to customers in the
store, our professionals and other employees will make periodic, regular phone calls to
customers. These phone calls will (a) ensure that customers are satisfied with their treatments,
and (b) remind customers after a certain period of time has passed that they might want a new
facial or massage. Long-term customers will have the opportunity to participate in the loyalty
program, and referrals will be rewarded as well.

Direct Mail
Haven Massage and Spa Salon will blanket neighborhoods surrounding its locations with direct
mail pieces. These pieces will provide general information on Haven Massage and Spa Salon,
offer discounts and/or provide other inducements for people to visit the spa.

Ongoing Customer Communications

Haven Massage and Spa Salon will maintain a website and publish a monthly email newsletter to
tell customers about new events, products and more.

Pre-Opening Events
Before opening the store, Haven Massage and Spa Salon will organize pre-opening events
designed for prospective customers, local merchants and press contacts. These events will create
buzz and awareness for Haven Massage and Spa Salon in the area.

Pricing Strategy
Haven Massage and Spa Salons pricing will be moderate so customers feel they receive great
value when patronizing the spa. The anticipated price point for a standard facial treatment is
P250.00, in exchange for which a customer can expect to receive personalized attention during
and after their visit. The customer can expect to receive quality beauty care, for a more
affordable price than what they pay at an ultra-premium salon or spa.

Product/ Service Design and Development Plan

 
Haven Massage and Spa Salon’s Products & Services
Below are Haven Massage and Spa Salon initial service offerings and in-store products sold.
Specialists will be asked to perform the following services for both men and women:

1. Facial treatments
2. Massages (full-body, neck and shoulder, foot, etc.)
3. Waxing
4. Threading

Each appointment, if desired, will include an initial beauty assessment and suggestion phase
where the specialist will discuss the customer’s beauty. There will then be a cleansing skin wash
with our in-store products, followed by the desired services for the face or skin.
Furthermore, the waiting area will have television screens and popular publications to make the
wait for service more pleasurable. Toys and board games will also be on hand for waiting

PARUGRUG, ELIZA JEAN MAE C.

3RD year BS Tourism Management
children, as well as at-request refreshments which we will provide for free during the waiting
period.
Store Design
Haven Massage and Spa Salons will develop a 2,500 square foot store whose key elements will
include the following:

 Cosmetologist Booths
 Massage area
 Reception Desk
 Self-service coffee area
 Sinks
 A waiting area with TV screens
 Restrooms

The retail location has 10 dedicated parking spots which should suffice even in peak hours.
Haven Massage and Spa Salons plans to be open 7 days a week, from 10AM to 6PM. As demand
dictates, we may extend or reduce our hours.

Operations Plan

Haven Massage and Spa Salons will carry out its day-to-day operations primarily on an
appointment basis. Walk-in clients will be served by the earliest available specialist, but priority
will be given to clients who called ahead. In the meantime, waiting customers can divert
themselves in the lounge, which features television and current popular magazines.

In order to execute on Haven Massage and Spa Salon’s business model, the Company needs to
perform several functions. The majority of employees will assist in upselling customers in
addition to the primary functions as cosmetologists and masseuses. Haven Massage and Spa
Salons anticipate using the services of X employees, divided into the following roles.

Service Functions
Facial treatments
Massage
Hair removal
Administrative Functions
General & administrative functions including legal, marketing, bookkeeping, etc.
Sourcing and storing products
Hiring and training staff
Appointment making
Customer service/cash register functions
Miscellaneous
Maintenance personnel
 

Management Team and Company Structure

PARUGRUG, ELIZA JEAN MAE C.

3RD year BS Tourism Management
Haven Massage and Spa Salons are led by Liza Ong who has been in the beauty salon and spa
business for 10 years.

While Liza Ong has never run a day spa herself, she has extensive experience providing
massages and working in major spas for the past 10 years. She began her career in 2008 when
she received a certification from AWSA Manila and began work at Breeze Oriental Massage and
Spa, where she worked for 3 years.

Liza Ong graduated from the Our Lady of Fatima University where she majored in Physical
Therapy.

Emerson Lee will serve as the customer service manager. He has extensive experience in the
hospitality industry.

Liza Ong will serve as the store manager. In order to launch our spa, we need to hire the
following personnel:

Cosmetologists (3 to start)
Masseuses (2 to start)
Assistants (1 to start)
Receptionist (2 to start)
As dictated by demand and operational maturity, Liza Ong will consider hiring the following
personnel:
Receptionists (2)
Assistant Store Manager
 
Financial Projections
 
Revenue and Cost Drivers
Haven Massage and Spa Salon’s revenues will come primarily from the services rendered and
secondarily from the sale of beauty care products.
As with most services, labor expenses are the key cost drivers for spas. Specialists are paid
through a combination of salaries and commission, rewarding them for performance and making
specialists an active part in business retention and development.
The major cost drivers for the company’s operation will consist of:

Commission paid to specialists on a per-service basis

Salaries
Lease

Moreover, ongoing marketing expenditures and the cost of goods sold expenses are also notable
cost drivers for Haven Massage and Spa Salon.
Capital Requirements and Use of Funds
Haven Massage and Spa Salon is seeking total funding of P3,000,000 of debt capital to launch its
store. The capital will be used for funding capital expenditures and location build-out, hiring
initial employees, marketing expenses and working capital.

PARUGRUG, ELIZA JEAN MAE C.

3RD year BS Tourism Management
Specifically, these funds will be used as follows:
Store design/build: P1,500,000
Working capital: P1,000,000 to pay for marketing, salaries, and lease costs until Haven Massage
and Spa Salon is cash-flow positive. 

PARUGRUG, ELIZA JEAN MAE C.

3RD year BS Tourism Management