Marketing PlanThe Sovereign Mens Spa

About The Sovereign

• We are a full service ‘Men Only’ spa without the need of exclusive memberships.

• We are a new concept and are the first of our kind in the Metro Atlanta area.

• We offer a ZEN-like environment for de-stressing while providing luxurious grooming services.

The Sovereign’s Mission

The Sovereign mission is to provide a luxurious and affordable experience for the modern man. We exist to attract and maintain customers. By adhering to this maxim, everything else falls into place. Our services exceed the expectations of our customers.

Market Summary

• The Sovereign possesses useful knowledge about the market and knows a great deal about the common attributes of its most prized customers. The Sovereign will leverage this information to understand our clientele, their specific needs, and how The Sovereign can better serve them.

• There currently is no competition that provides all the services we offer in the same location and thus are first to market with this concept.

Market Analysis

Males (25 and Over)Significant others of MalesMales (25 and Under)

Target Market

Market Demographics

• Professional Males.• Ages 18-45.• The significant others of the male clientele are

concerned about giving a gift or spa service that will pamper their loved one, while ensuring he looks his best in a setting he will enjoy.

• The men are concerned about getting fashionable and professional haircuts.

• The men are looking for a way to unwind and look their best in a comfortable, masculine atmosphere.

• Have an individual income of at least $40,000.• International Clientele.

Market Needs

• New Concept of Men’s Spa• Luxurious Convenience • Royal Customer Service• Competitive Pricing• Non Exclusive (no

memberships)

Market Trends

• 1/3 Spa goers are now men.• Men want to be groomed and

feel the need to look great.• Traditional spas are

mainstreaming to appeal and provide services to men.

• The alternative lifestyle market is ever increasing in Metro Atlanta.

Market Forecast

2009 2010 2011 2012 20130

10000

20000

30000

40000

50000

60000

70000

80000

Males (25 and Over)Significant others of MalesMales (25 and Under)

Market Growth

• Assuming our target market continues to grow we will average 8% growth per annum.

• Even in poor economic conditions our clientele focuses their spending on result oriented services such as massages to alleviate stress which creates an instant ROI.

SWOT Analysis• Employees are experienced in their field of study.• Offering a wide range of services with competitive prices.• Flexibility- the ability to meet each customer’s needs

• The difficulty of building brand equity.• Generous employee benefits and ownership slightly increase financial

risks.• A limited marketing budget makes it difficult to generate awareness for

The Sovereign at launch.

• Royal and Luxurious customer service.• Decrease variable costs as the business grows.• ‘First to Market’ with concept

• Economic Conditions• Competition from ‘mainstream spas’ in the Atlanta area.

SWOT

Our Competition

• Traditional Barbers• Franchised “Quick Salons”• Independent Salons• Traditional Spas

Our Services

• MEN'S SHEAR• HOT LATHER SHAVE • BEARD TRIM • GENTLEMEN'S FACIAL • MEN'S SPORT MANICURE • MEN'S SPORT PEDICURE • MEN’S SPORT MASSAGE• MEN’S ACCUPUNCTURE• GENTLEMEN’S HOT STONE MASSAGE• ACCUPRESSURE TREATMENT• MEN'S RETREAT • MEN'S SCALP REFRESH TREATMENT• MEN’S HAIR TREATMENT

Our Products

An Exclusive agreement with ZIRH.

Rated the world’s best Men’s skin and hair care product line available on the market.

Branding Strategy

Building a brand that is synonymous with luxury and style is what ‘The Sovereign’ is all about. This is why we have partnered with industry leaders in creating an identity that speaks volumes in class.

Keys to Success

• Professionalism.• Niche Market.• Affordable Luxury.• Customer attention.• Specializations in provided

services.• A Royal Service.

Critical Issues

• Repeat business.• Economic conditions.• Sourcing specialized staff.• The ‘concept’ not catching on.

The Sovereign’s Strategy

• Newspaper/Magazines• Internet/Social Media• Billboards• Campus Advertising• In-store and Store Front Displays

marketi

ng

The Sovereign’s Objectives

Marketing• Increase repeat customers by 7% per quarter.• Decrease customer acquisition costs by 8% per year.• Maintain positive, steady growth each month for the next 2

years.

Financial Objectives• Increase the amount of retail products sold by 20% per

annum.• Grow the profit margin by 3% per year.• Profitability by year one.• To end 2010 with a 15% increase in contribution margin.• To increase sales 10% per month the first year.

The Sovereign’s Positioning

• Changing the ‘mindset’ of the Modern Male.

• “Members only” feel without the memberships.

• Caters to college students to serve their needs and budgets.

• Caters to International clientele with different needs.

• Superior customer service.• Creation of a new concept in the market.

Marketing Mix

Marketing Research

Focus Groups Targeted• Men ages 18-45.• Different ethnicities.• Income expenditure on personal hygiene.• Surveyed regarding grooming habits/needs.• Given general information concerning

Sovereign’s services and provided feedback.

Breakeven Analysis

The break-even analysis indicates that $38,660 will be required in monthly revenue to reach the break-even point.

Sales Forecast

A Monthly sales breakdown of The Sovereign SPA. With perfect market conditions we should reach profitability by month four.

Marketing Budget Forecast

Marketing expenses are to be budgeted so that they are high during the first quarter in order to raise visibility for the start-up organization.

Expense vs. Sales Forecast

Expenses do not include the Fixed cost of $38,660. Expenses are all marketing expenditures associated with the promotion of The Sovereign.

The Sovereign’s Controls

The purpose of Sovereign's marketing plan is to serve as a guide for the organization. The following areas will be monitored to gauge performance:

• Revenue: monthly and annual.• Expenses: monthly and annual.• Repeat business.• Customer satisfaction.

The Sovereign’s Highlights

FY 2010 FY 2011 FY 2012

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SalesGross Margin

Contribution Margin

SalesGross MarginContribution Margin

The Sovereign’s Contingency

Difficulties and Risks• Problems generating enough sales of services throughout

the day.• Establishing and maintaining clientele to sustain the spa.• Current economic factors of the recession could affect

sales due to decreases in discretionary spending.

Worst Case Risks May Include• Determining that the business cannot support itself on an

ongoing basis.• Having to downsize or cut specialty services in order to

generate sales through the most requested packages.

Thank YOUWe appreciate your time, and hope you pay us a visit soon for our grand opening.

www.thesovereign.com

Marketing Plan By:Rachel Rena TaylorMusab MarashdehSiddharth ParmarMarcus Bonner