A.

Service Industry and Firm Analysis; The Service Offering:

1. An overall description of the industry and service firm selected.

Well-being is steadily expanding and experiencing growth. A diverse spectrum of professions

committed to this business has emerged to suit the needs of a customer who, overwhelmed by

their everyday lives, seeks peace and is spending increasing resources on it. According to a

2015 study conducted by the Global Wellness Institute, the global wellness industry is worth

$3.72 billion dollars, an industry that has been steadily increasing since 2013 and is

experiencing the fastest growth in the world continue to progress with constant growth of

around 7% each year, particularly in France. The wellness industry is thriving. Consumers

expect to spend more money on things that affect their health, exercise, nutrition, looks, sleep,

and awareness. According to a study published in April 2021 by the American firm

McKinsey,” consumers are spending more on well-being than they have ever done before.

Wellness is now a $1.5 trillion market worldwide”. This evolution of the market, which

should continue to grow by 5 to 10% each year, represents an investment opportunity and

above all a niche for job creation. With the growing awareness of people regarding their

health and wellness, the spa market is gaining popularity across the world. Additionally,

growing mental health issues, such as depression, anxiety, and stress, which are increasingly

common among people, are driving the demand for spa services. As massage has been proven

to steadily improve people's well-being coupled with their affordability ranges, the market is

growing in popularity. Body and foot reflexology and head and back massages have also been

shown to relieve pain or stress from a specific part of the body, thus promoting healthy

results. Fatigue being a factor, people prefer to have services that help them recharge and

relax, to stay fit and healthy. Glow spa is a locally owned and operated in Toronto Canada,

Ontario. It will be owned and operated by Marci Weinstein and Jennie Kay. They are beauty

estheticians who have been providing facials and spa treatments to residents of Toronto and
Theresa Szalay, two of Glow Spa's long-time staff members purchased the spa in 2019.

Lindsay and Theresa worked together for 12 years at Glow Spa and had a solid relationship.

They both agreed to buy the company in 2019. From the time day they purchased the spa, the

two shareholders were focused and dedicated to improving the quality of their services and

being on top of the market. They have been saving up her equity investment and studying day

spa business operations. They have also begun to recruit her team from local cosmetology and

esthetician schools in the area as well as from competing day spas in the area. Glow spa will

provide services such as skin treatments, massage therapies, body treatments, illuminating

face and skin treatment, Stone massage, deep tissue massage, Swedish massage, hand & foot

massage, luxury manicure, luxury pedicure, waxing. The service will be provided in

a luxurious environment with a relaxing and refreshing ambiance. Lindsay and Theresa and

her staff will be experienced and knowledgeable in their specific area of service and will be

able to provide the greatest customer service experience possible.

2. Current trends in the industry.

Several Spa trends have emerged or resurfaced in the health sector during the last several

years. And, as with aesthetics, there are links between high tech and quality. Customers have

higher expectations. They are often well-educated around well-being and eagerly anticipate

new Spa trends to receive additional attention from the specialists who are exploring the

boutique setting. We discovered a high preference for global well-being treatments among

Spa clients. Access to the on-site equipment as well as a well-being treatment (massage,

facial) performed by a Spa practitioner. The current trends in the massage and spa industry are

for example new advanced equipment’s such as Oligoscan or Physioscan. The founder of

these elements tells us that these high-tech tools are also used for comfort. Sobriety, pure

lines, neutral colors, everything is directed towards the customer. We are witnessing a real

revolution with equipment. Particularly at the level of the massage beds, which compete in
comfort, therefore in technology, also provide an optimized experience of well-being. While

in 2015 and 2016 treatments carried out in pairs accounted for most of the market, only 35%

of treatments were intended for a single person. Today the trend is reversed: the share of care

performed solo is increasing drastically to reach 54%. Tibetan bowls were a strong trend in

2018, which is asserting itself more than ever in 2022 under the name of sound therapy. A

sub-trend also stands out, “Ayurveda” a method derived from ancient Indian medicine, it

offers to harmonize body and mind. This holistic medicine is also a philosophy. It works Oby

using fundamental energies.

3. A discussion of the tangible and intangible service components of the industry.

The tangible elements of spa industry are facilities and equipment’s such as steam bath,

hammam, Vitality pool, relaxation spaces, experience shower, Kneipp walk, Plunge pool, ice

fountains. Reception desk and reception area for inquiries, Spa Retail/Shop if a customer

wants to buy a spa or massage product, changing rooms for men and women, dry and

treatment. There are also services such as holistic body care, specialty skin care, hair removal,

tinting, lash lifts and so on. There is also the staff that is composed of an assistant manager,

beauty therapist, massage therapist, spa manager, hair stylist, head therapist and so on.

Concerning the intangible elements, it can be composed of design, decoration and finance,

calm and safe environment, respect, and comfort of the clients are also intangibles that are

very necessary for this service.

5.The role of technology in the industry and how it impacts service marketing for your

firm.

During aesthetic treatments, can work with a technological device replace the massage

performed by the hand of the practitioner, and vice versa? At Glow spa, they say no!

However, they say that the complementarity of manual techniques and technologies for
unequaled results. Indeed, beauty professionals agree that a treatment provided with a

technological device must be accompanied by the hand of the beautician to reveal its full

potential. Conversely, a treatment performed only by hand, without a machine, will be much

less effective and more tiring for the practitioner. For example, new technologies could be the

incorporation of oligoscan machines in the massage industry as I mentioned before. Also,

Like the cold of cryotherapy or the spectrum of colors thanks to chromotherapy. These

effects, it is of course impossible for you to obtain them by the exclusive work with the hand.

The technologies act on fat cells, cellulite, the quality and firmness of the skin, the

metabolism or even on the psychic and emotional aspects. Another crucial example could be

Sensory showers. Indeed, showers used to only be used to rinse off quickly after the sauna.

Sensory showers today offer many settings. Many showers also offer zone massage jets, but

the intensity of the water jet is just the start. You can now opt for light effects for a touch of

chromotherapy and sound effects, which enhance the sensations. Relaxation capsules come in

all shapes and sizes, from bubble chairs, which aid in meditation, to high-tech floating

bubbles. Offering guests total seclusion, their ergonomic design provides maximum peace and

comfort. All these technologies bring to our firm freshness and novelty which pushes

customers who are frivolous of messages to come and test them. They also bring on new

sensations and experiences.

C. The Role of Physical Evidence and Service Marketing Strategy:

1. Explain the role of the industry and firm’s servicescape.

The role and the industries servicescape in the massage and spa industry is very crucial. A

good servisecsape for this kind of structure is essential as it widely impacts on the value

proposition the company provides when offering the service. Indeed, in a massage and spa

company the decorations, lights, music, the smell, and everything that plays a role on the
environment impacts the quality of the service. Indeed, when going to a spa as a customer you

are looking to have a real experience instead of only the service of massage or spa. Indeed, if

you arrive at a spa where the smell and music are not appropriate and the decorations are not

the decorations you expect from using that service, you won’t be satisfied even if the spa and

massage service itself are very qualitative. Also, psychologically when there is a relacing

music and a very nice smell you are more satisfied as a customer. This is called sensory

marketing.

2. Describe how the servicescape can be used as a competitive advantage within this

industry and by the firm.

The servicescape can be used as a competitive advantage if the companies that offer massage

and spa service follow the trends and are aware of what the customer likes to hear, for

example to be relaxed. Also, they can conduct some direct interactions interviews where the

company asks a sample of random customers what kind of smell they would like to smell if

they were in this kind of environment. Modernize the decorations and be up to date regarding

the current fashions in this industry. Therefore, physical evidence is very important for this

kind of structure. Giving the customer the time, they need and not rushing them is very

important also for this kind of industry. Thus, I would advice to offer the service for the entire

day and let the customer stop it whenever he feels to instead of imposing a specific time for

the customer which would make him check the time very often and would thus have a

negative impact on his experience. Indeed, the customer must feel very comfy and relaxed

when making use of a massage and spa service. Also, every step in the massage and spa

service should be done at the customer rhythm. The uniforms of the staff and the lighting

should be adequate for the environment. Also, as for exterior factors, parking space should be

provided for the customers.

3. Describe two service marketing opportunities and two threats that can affect the

firm.

Threats are external in this industry, they can be competitors, price of raw material, customer

shopping trends. The cost of having the best therapists and professionals or adequate

therapists for the treatments you want to offer. Competitors for massage and spa service are

very wide but I believe it is easy for a company to stand out from these competitors in this

industry as there are various types of massages and spa services that can lead to multiple and

different experiences. If a company turns out to offer the same service that we do, I believe

the servicescape quality, advertising, reputation, and promotional offers of our company are

criteria that would make the difference. The cost of having the adequate and best therapists

also needs a big budget and I believe there are not many people that are qualified for the

specific service we offer. Thus, there is rarity also that plays a role. The price of equipment is

also very high, especially if the company wants to purchase the latest wellness equipment

technologies. Customer shopping trends are also a factor to consider as customer today

change their buying behaviors very often and can consider other ways of getting the service,

we provide so the company must take this into consideration and stay in touch with their

customer needs and wants.

Opportunities can be word of mouth advertising. Indeed, people often talk about their

experiences after making use of a massage and spa service to their surroundings which is a

great way for a business to expand. The digitalization of these processes makes a new

opportunity appear which is the possibility to book online the service. The new trends that

continuously appear are also an opportunity to expand the business and bring in new

customers to our market.

5. Advise the service firm that you selected about important marketing

strategies and tactics to implement to improve profits, sales, customer

satisfaction, and customer loyalty.

Some strategies to implement to increase profit, sales, customer loyalty, customer satisfaction

could be, for example offering subscriptions offers to your customers. That way, they won’t

need to book the service each time they want it. Knowing your customer’s needs and wants

well is also a good strategy to improve customer loyalty. Investing in online advertising can

also be a great way to expand the business and thus to increase profit in the long run. Reward

your loyal customers by offering them for example additional free services. Standing out from

the competitors and offering a real added value proposition to your customers.