market plan 2

Running head: Miraculous Touch LLC 1

Miraculous Touch LLC 10

Miraculous Touch LLC

Iviance Liggans

Strayer University

MKT500

Lisa Amans

February 10, 2021

Background

Miraculous Touch LLC is a health and beauty company set to provide services such as massage, facials, and waxing. The company headquarters will be situated in California, United States. Miraculous Company will focus on customers who wish to enhance their beauty and health. The services will be offered only upon the customer's request because it is a door-to-door service to avoid waste of time and money.

Marketing Plan

Miraculous Touch LLC Company targets both primary and secondary consumers. Primary consumers, which are the company's main focus, involve medium-income earners residing within California. These are mainly young and middle-aged women with average to above-average income. The secondary target market includes men, children, and older women. The Company's marketing plan contains marketing research, market strategy, target market, budget, time, competitive analysis, and performance metrics. Market research is crucial for obtaining customer information like consumer buying behavior, market growth, and any other current trend in the location. Al-Shatanawi et al. (2014) support that market research is essential for keeping up with market trends and maintaining a competitive edge. Similarly, identifying and describing the target market enables Miraculous Touch to focus on the people who are most likely to purchase the services. Understanding the nature and requirements of target customers allows the company to improve customer satisfaction by prioritizing those requirements. Research shows that it needs to identify critical factors determining such satisfaction for a company to satisfy customer needs and increase customer satisfaction (Petrovski & Pestana, 2017). Using the information obtained, Miraculous Touch will create two market segments by gender, lifestyle, age, and the number of services purchased. Miraculous Touch will target both young and older women and men who want to improve their beauty and wellness.

The positioning of the target market will also be a significant component of Miraculous Touch marketing plan. Positioning will help the company determine its brand's perception in the marketplace and develop compelling marketing and branding messages that communicate how they want to be perceived. Besides, the company needs to know its competitors and how its services are different. As such, Miraculous Touch will conduct a competitive analysis to determine competitors' products and services, prices, target market, market segment, and position to help them better position their business and stand out of the competition. Additionally, the Company will establish a monthly schedule on what they want to spend on marketing. This will help it to achieve marketing goals without straining Company's resources. Notably, the marketing plan will include test programs for tracking and evaluating results. A marketing strategy will also be an essential tool in the marketing plan. Miraculous Touch will devise specific tactics for reaching target customers and converting them into customers of their services. Miraculous Touch’s marketing strategy will consist of 4P's (price, product, promotion, and place), 5Cs (Company, climate, collaborators, customers, and competitors, and segmentation, targeting, and positioning (STP). The primary tool for promotion is social media.

Company Mission Statement

Miraculous Touch believes that beauty and overall health and wellness empower everyone. Miraculous Touch mission is to offer authentic, pleasurable, satisfactory, and relaxing services that amplify the beauty and extend love and fantasy to others around the United States and beyond.

Short term and Long-Term goals

Miraculous Touch LLC, short term goals will be to revise its business plan, increase the marketing budget, introduce web traffic analysis software, learn its primary competitors, target market, company environment, customer's buying trends, and other market trends and incorporate new marketing channels other than social media such as bus campaigns. Its long-term goals will be to increase sales and double revenue, increase market share, achieve at least 90% positive customer feedback, build company recognition and improve the web traffic of a company's website by at least 60% by the end of five years. The short-term goals are Miraculous Touch steppingstones towards achieving long-term goals. For instance, revising its marketing plan by incorporating customer requirements and needs enables Miraculous Touch to attract and retain more customers, thus achieving positive customer feedback and increasing market share. Similarly, learning and identifying customer trends such as changing customer needs helps the company keep up with market trends by responding to customer needs, increasing customer satisfaction, and ultimately sales and revenue.

Evaluation of the Goals

One of the best ways that Miraculous Touch will use to measure its short and long-term goals is by tracking relevant business metrics, that is, key performance indicators, regularly. The Company will focus on metrics like online metrics, marketing metrics, sale metrics, and financial metrics from the goals set. For instance, the Company will track and assess downloads of the website content, adoption and retention rates of new products, customer visits to the company web, growth rate, profit margin, and market share to determine the progress of its business goals. To capture customer feedback and identify improvement areas, Miraculous Touch will use website data such as customer visits, both new and returning visitors, content downloads, customer comments, bounce rates, and the average time on the page. Besides, the Company will use sales data to measure customer loyalty and retention. Big sales can mean attracting new customers and retaining returning clients. For instance, increasing sales from 25 to 90% percent mean increasing customer retention rates by 5% and so forth.

Environmental Analysis

Miraculous Touch success in the beauty industry will be attributed to its ability to identify and effectively adapt to external environmental factors such as economic, technological, socio-cultural, competition, political and legal forces.

Competitive Environment

Miraculous Touch is likely to face stiff competition from other well-established companies in the Spa and beauty industry. For instance, Canyon Ranch, The Woodhouse Spa Corporation, Montage Hotels and Resorts, and Massage Envy Franchising are relatively established competitors that enjoy a broad customer base (IBIS World, 2020). Although the industry currently faces low competition due to a lack of well-established players, demand for the services continues to rise. The industry is expected to experience significant growth in the next five years (IBIS World, 2020). However, Miraculous Touch can counter such competition by providing high-end quality products and services that improve customer experience and satisfaction.

Economic

The Company's growth depends mainly on the country's economic growth and development. The U.S is the largest economy in the world. With a GDP of over $16.670 trillion and an annual GDP growth of 2.1%, the U.S economy is expected to continue growing though slower than before the Great Recession (U.S Bureau of Labor Statistics 2015). Even though the 2009 recession affected the U.S economy, the economy bounced back and has been growing dramatically over the past. Miraculous Touch will enjoy high consumer buying behavior following high disposable income from high employment rates.

Socio-cultural forces

Like any other developed country, the United States faces an aging population, which can lead to declining target consumers for future industries. Since Miraculous Touch targets younger women who are still exploring the fantasy of beauty and skincare, the rising aging population means a declining share market for the services. Besides, the millennial is a cautions generation who take careful steps on how they spend their money. Young people are also moving towards natural and clean products and spend much of the time exploring various products to look for the best. However, the older women developing demands towards health and fitness therapy presents an opportunity to Miraculous Touch. The Company can redesign its market strategy to include more market segments, including older adults.

Technology

Consumers are becoming more experimental and demanding in the area of beauty and health. Technological advances such as the emergence of more social media platforms may present barriers to Miraculous Touch LLC's entry. Consumers use online sources to research and experiment with beauty products for self-care. Consequently, the Company is compelled to offer the latest technology and a wide range of options, which increases the overall operating costs. For instance, Miraculous Touch needs to have the latest technological beauty equipment and high-level expertise, and trained staff suitable to use such equipment and offer the latest trends in the beauty industry.

Legal factors

The Health spa industry faces plenty of strict guidelines and regulations. Precisely, spa companies are expected to comply with health and safety requirements, especially treatment-specific rules like giving treatment related to surgical type procedures. Labor force requirements such as the provision of employment law and insurance also increase staff costs. These potential legal issues associated with employees, healthcare laws, or inappropriate behavior or injury during massage, waxing, or skin treatment that led to lawsuits create threats that can negatively affect the business.

Political forces

The Company operates within the United States, which enjoys a robust political setup and effective law rule. This political stability is vital in business as it enhances consumer and investor confidence, thus increasing the firm's competitiveness. Besides, most employees working in the day spa industry are part-time workers. With the U.S government encouraging people to go back to work after a long break following Covid-19 restrictions, the Spa industry will see a growing number of available workers. However, changes in political framework such as business taxation, pricing regulation, employee wage, and benefits legislation, and anti-trust laws related to media may create unfriendly policies that affect the Company's marketing.

Needs Analysis

Business needs analysis is vital to identifying business needs and determining the best course of action to business problems. It helps the organization modify its business processes and strategies, train employees, and acquire the necessary resources to achieve its strategic goals. Miraculous Touch LLC is a Day spa company specializing in body maintenance and skin care using various products and services. Consequently, the Company will evaluate and identify problems and solutions related to the services and target population. Miraculous Touch will mainly use a discrepancy model to evaluate its goals. The discrepancy model is a three-step process in which the organization sets goals, conducts performance measurement, and then identifies a discrepancy based on the differences between what they achieved and what they expected. Alternatively, Miraculous Touch can employ a marketing strategy by learning about target market needs through customer feedback. The company selects the target market and conducts online surveys to determine customer needs, choose its competitive position, and develop a compelling marketing mix to optimize the target population's expectations. Based on the gap analysis results, Miraculous Touch will compile a list of business needs and improvement opportunities for achieving those needs.

The needs for spa customers arise from various forms, including particular spa service, attributes and benefits of such service, tools for providing the services, the overall environment of service provision, and personnel providing the services. If a discrepancy exists between customer expectations and staff perceptions, the customer needs will not be fulfilled. Similarly, the absence of particular service that clients seek from the spa company reduces customers' chances of returning. Besides, a gap can also exist between specifications of quality standards of products or services and consumers' expectations. Therefore, identifying the causes of each of these discrepancies will help Miraculous Touch improve the quality of its services and fulfill customer needs.

SWOT Analysis

SWOT analysis is an essential tool for building what a company can do best, addressing what they lack to increase chances and minimize risks.

Strengths

The growing demand in the health spa industry serves as the main strength for Miraculous Touch. As Wisnom (2017) spa industry was the fastest-growing market in the U.S and around the world, and spa revenues grew by 10.6% in 2014-2015. Consequently, the industry is projected to reach $128 billion in 2022. Besides, relatively low competition in the day spa industry is another source of Miraculous Touch strength. A less competitive environment will offer the Company a better customer base and market share. Besides, Miraculous Touch location is a strength to its business. The United States, particularly California, is an upper-class and high populated area that provides the business's best market position. The Company also offers different services, including facials, massage, and waxing, increasing customer likelihood of finding a good match.

Weaknesses

The main weakness of Miraculous Touch is the high cost of providing quality services. Day spa business requires various tools, including oils, creams, massage tables, supplies like towels, gloves, robes, and experienced personnel, which may be hard to finance. The Company is also likely to encounter limited market share due to high travel costs since it is a door-to-door service.

Opportunities

Miraculous Touch will benefit from the positive economic growth in the U.S. Favorable political and legal framework is another opportunity that can strengthen Miraculous's success. Day spa businesses require fewer legal provisions unless the Company provides services like surgery, regulated under health- laws. The Company will also have an opportunity to offer affordable products and services to many customers, thus increasing sales and profitability. Furthermore, Miraculous Touch may increase promotion to reach and attract more customers, increasing their sales revenue. The increasing customer demands for skincare and wellness products and services is an outstanding opportunity for Miraculous's growth and success. The shift of consumer attitudes towards healthier lifestyles also led to increasing demand for skin and body care services to enhance wellness.

Threats

The rise of social media platforms presents a significant threat to Miraculous Touch. The target population is likely to research self-care tutorials and guidelines online, reducing their demand for day spa treatments. Besides, the emerging competition in the spa industry is a risk to Miraculous Touch. Due to close contact between providers and clients, the day spa business increases health and safety risks, mostly due to the ongoing Covid-19 pandemic.

References

Al-Shatanawi, H. A., Osman, A., & Ab Halim, M. S. (2014). The importance of market research in implementing marketing programs. International Journal of Academic Research in Economics and Management Sciences, 3(2), 150. DOI: 10.6007/IJAREMS/v3-i2/790

IBIS World (2020). Health & Wellness Spas Industry in the U.S. - Market Research Report. https://www.ibisworld.com/united-states/market-research-reports/health-wellness-spas-industry/

Petrovski, D., & Pestana, J. P. (2017). The Importance of Target Audience Selection for Kano Model Effectiveness: A Case Study of Klarna Group. http://www.diva-portal.org/smash/get/diva2:1080906/FULLTEXT01.pdf

U.S Bureau of Labor Statistics (2015). The U.S. economy to 2024. https://www.bls.gov/opub/mlr/2015/article/the-us-economy-to-2024.htm

Wisnom, M. (2017). U.S. Resort Spa Offerings: A State of the Industry Report. Journal of Tourism Insights, 8(1), 6. : https://doi.org/10.9707/2328-0824.1069