Feasibility - Tranquil Water Spa

8/22/2019 Feasibility - Tranquil Water Spa

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Arellano University

Pag - asa Street Caniogan, Pasig City

By:

Val Luis G. dela Cruz

Jannah Faye E. Hugo

Ma. Mirasol Andrea A. Malilay

Submitted to;

Ms. Katherine Guevarra

October 22, 2012


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I. Background

The spa market is one of the fastest growing leisure sectors, where societal trends and

aspirations find instant reflection in the developments on both the demand and supply

side. The market is very fragmented, each segment catering for different customer

needs, which continuously change in line with social and lifestyle changes.

It is becoming increasingly clear that although the spa industry is growing dramatically,

there is an increasingly wide divide between the niche, specialist, luxury market and the

mass market with lower-cost, functional facilities for faster turnaround, which also like to

call themselves spas. .

As always, within a rapidly expanding market, there is a danger that the word 'spa' will

become hyped and over-used, but the sophisticated and discerning spa-goers are

already very well informed and will research carefully the facilities, treatments and

services on offer before spending their money. The search for improved well-being is

more and more the driving force behind the spa clients visit.

II. Introduction


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Possible locations: Ortigas Center, Pasig City/Bonifacio High Street, Taguig City

Operating Time: Tranquil Water Spa is open 7 days a week. Monday - Friday, we are

open from 9 AM - 6 PM. Saturdays and Sundays we are open 24 hours.

Tranquil Water Spa is a resort-type spa that offers traditional massage services through

the use of hydrotherapy systems that utilize water jets in order to provide water therapy

to its guests. It is a spacious spa that has 20 unique and fully automated Ultrasonic

Massage System equipped with therapeutic aquatic jets that helps customers with

different health benefits which depends on the type of massage and machine they will

use.

Some water resorts only cater aqua thrills, adventure, and fun while Tranquil Water Spa

offers massage services. Tranquil Water Spa includes day spas, fitness clubs and

gyms, and water resorts as their competitor. Examples are The Spa, Fitness First, and

Splash Island.

Compared to fitness clubs and gyms, we focus on developing health and fitness. We

have different exercise studios, machines and equipment, and personal training.Nevertheless, Tranquil Water Spa focuses on developing overall well-being and

relaxation through a variety of services.


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III. Management and Operational Aspect

Manpower

1. Spa Director

Primary responsibility is to provide leadership, direction and supervision of staff in the

daily operations of the Spa, including, but not limited to, retail, salon, yoga/fitness

programs, and membership program. The Spa Director is to oversee the coordination of

all guests requests, be directly involved in budgeting, forecasting, payroll and

scheduling as well as product inventory and ordering.

Requirements:

College degree or equivalent experience

Accounting and budgeting knowledge

Strong communication skills

Proven leadership qualities

Minimum 3 years of experience in Spa management (at least one year in a

Director level position)

2. Assistant Spa Director

Primary responsibility is to directly assist the Spa Director in providing leadership,

direction and supervision of staff in the daily operations of the Spa. This includes having

the knowledge to Coordinate guest relations as well as answer all inquiries pertaining to

the spa. The Assistant Manager will assist in budgeting, forecasting, payroll and

scheduling as well as product inventory and ordering. Our emphasis is based on caring

and attentive employees who embrace the Companys Mission/Vision Statement and

Core Values.

3. Operation Supervisor

One who will supervise the development and implementation of training programs within

the working unit supervised. Provides supervision and direction to subordinate staff and

coordinates work flow within the major work unit, including distributing work,


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disseminating information, assigning staff to cover for absences, providing technical

assistance, answering questions, and resolving problems within the work unit

supervised.

4. Receptionist

A receptionist is an employee taking an office/administrative support position. The work

is usually performed in a waiting area such as a lobby or office desk of

an organization orbusiness. Business duties of a receptionist may include answering

visitors' inquiries about a company and its products or services, directing visitors to their

destinations, sorting and handing out mail, answering incoming calls on multi-

line telephones .

5. Spa Attendant

The Spa Attendant has overall responsibility for monitoring and cleaning the spa to

include but not limited to, reception area, waiting areas, treatment rooms, storage rooms

and prep area. Incumbent must utilize available resources to provide excellent guest

satisfaction. The Spa Attendant will meet or exceed productivity and cleanliness

standards, taking corrective action as needed to ensure standards are maintained.

Work hours/days vary as dictated by business needs, and may include weekends and

holidays.

Requirements:

Extremely detail oriented.

Possess excellent communication skills.

Friendly, people-oriented, customer driven individual

Ability to multi-task and prioritize effectively

High school diploma or equivalent education required.
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6. Treatment Manager

Investigates, selects, and develops products for an organization, performing the

activities of management. A product manager considers numerous factors such as

intended demographic, the products offered by the competition, and how well the

product fits with the company's business model. Generally, a product manager

manages one or more tangible products. However, the term may be used to describe a

person who manages intangible products, such as music, information, and services.

7. Massage Therapist

The practice of massage therapy is the assessment of the soft tissue and joints of the

body and the treatment and prevention of physical dysfunction and pain of the soft

tissue and joints by manipulation to develop, maintain, rehabilitate or augment physical

function, or relieve pain.

8. Esthetician

One who administers professional facials, waxing services and an array of body

treatments to the clients. They must possess a thorough knowledge of the skin, haveexcellent facial massage and skin extraction techniques, possess excellent cleanliness

and sanitation skills and be willing learn spa specific facial treatment offerings. They

must possess excellent communication skills and be able to learn the product and

service knowledge necessary to effectively provide wellness and beauty solutions to

meet the needs of clients. They must hold and maintain a current state license.

Requirements:

maintain appropriate certification and licensure

possess excellent communication skills

be proficient in various skin care treatment techniques and modalities

have the ability to provide legible communication

have knowledge of physiology

Be familiar with standard concepts, practices, and procedures within a particular

field


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Workflow/Guest Flow

Tranquil Water Spa operates everyday 7days a week. We allow reservations with the

help of our 24/7 customer service and through internet. We make this kind of

reservation to follow our leading competitors and to gain more clients. Easy to reach

and to become a leading water and recreation spa is our main goal.

Guest Flow

To relax, spa guests need to be comfortable. Guests cannot realize relaxing moments

without comfortable experiences. To achieve an atmosphere of wellbeing and

relaxation, guests need to be able to move through the spas touch points smoothly

without long walks, searches, or waiting. Each touch point from Entrance, Check In,

Changing, Pre Treatment Relaxation and Therapist Greeting to Treatment, Post

Treatment Relaxation, Changing and Check out Departure should naturally flow from

one space to the next.

Staff Flow

Most important today than ever before, guests want high value and their grading system

just got harder. The essence of the spa experience is the enjoyment and comfort of

being cared for by spa staff who can deliver superior and timely service. Long after the

glow of the massage or the facial has faded, guests will remember how they were

treated.

Economically, spas are working smarter with tighter reins on staffing levels. So too,

must the facility work smarter. The back of house (BOH) often receives less attention in

a planning process. Work on BOH design and placement should be a primary focus. We

can make the spas hospitality better by strategically planning BOH spaces so staff can

comfortably and effectively perform their jobs. Spa attendants, spa reception staff and

the spas service providers all influence the guest experience touch points. Staff should

be able to quickly access what they need to service the guest so guests at each touch

point dont wait or are cut short of service. Employees are the main amenity of the spa.

When we plan their spaces well and treat their work spaces with dignity, we have a


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happier staff and that means better service to guests. Efficiency and flow of BOH

spaces is high on the list of benefits for the spas owner.

Applying Managing Queues

The first step is to train all of our employees on the importance of exceptional customer

service. Without customers there is no business and without repeat customers there's

no potential for growth or even sustainability. Our employees should be trained to greet

all of the customers with a smile and a helpful attitude. There's nothing worse than

waiting in line only to be serviced by a smug employee.

Once our staffs are trained, we should begin gathering data on the nature of our

demand and our queues. By understanding when our queues form most often, we can

create a staffing plan that meets this demand. We may find most of our customers come

into our company during lunchtime. If this is the case, we would want to stagger our

employee lunch breaks or have break times before or after the peak period.

Efforts should be made to reduce the cycle time per customer. Cycle time can be

viewed in two different ways. First how long does it take for a customer to walk through

the door, wait in line and then complete the transaction. The second way to view

customer cycle time is to take a look at the amount of time it takes to service a customer

once they've reached the teller. By reducing this time, the overall cycle time will be

reduced.

Standardizing our employees work will help move the queue along as well. We will

make sure to understand the nature of their work and take measures to provide them

with everything possible that will make the work more productive.

The best way to understand the employees' jobs and their needs is to ask our

employees. Incorporate them in our efforts. They are the experts at doing their job and

they will have suggestions to improve the situation. Create problem logs to help identify

issues as well. Anytime there is an issue, the employee should jot it down and solutions

can be sought.


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Set realistic goals for cycle time and queue length. By setting realistic targets and

seeking to constantly improve we can reduce our queues and better manage our

customer service. Remember, customers are everything and they don't like waiting in

line. We will make reducing queues a priority in our company.

Strategies to apply

Effective queue management means happier, relaxed customers and greater staff

productivity and that is important to us. To ensure our customers satisfaction

regarding our queue management specifically during their waiting time, Tranquil Water

Spa will be providing some entertainment things such as the use of latest magazines

and newspapers, information boards and posters, sound systems, and of course

providing a television at the lounge or waiting areas. Whenever problem will arise, our

staff will definitely handle the customers needs and explain what is needed to be

explained in a subtle way as soon as possible. We will ensure that our service staff will

pay 100% attention to our customers and services. Well also be having Queuing Kiosk

in our spa. Using a Queuing Kiosk in our waiting room means that the kiosk takes all the

strain of receiving customers (either pre-booked or otherwise) and orders the visitors in

order of appointment or order of arrival. The waiting room queuing software kiosk also

lets visitors know when it is their turn to be served. We will use the single-channel,

multiphase system. Some techniques that will also be helpful when having queuing

problems are to treat the customers as individuals, treat them as we would like to be

treated ourselves, treat them openly and honestly, and communicate with them as soon

as possible.


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IV. Technical Aspect

Machines and Equipment

Jacuzzi - are the most complete and versatile synthesis of shared well-being.

Three exclusive lines are available: Italian Design, Premium and Professional

offer a great choice based on the space available, the type of use and aesthetic

preferences.

Massage Shower - A cosy space full of comforts. Many functions: hydro

massage for the back, the lumbar area and legs, cervical cascade. Electroniccontrol panel, Steam bath and aromatherapy function.


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Sauna and Hammam - is a wellness oasis with a prestigious design, a new

concept that combines a sauna, a hammam and an emotional shower in a single,

moderately-sized space.

Water Tank - a container for storing water.


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Hot Tubs - Large tub or small pool full of heated water and used for

soaking, relaxation, massage, orhydrotherapy. In most cases, they have jets for

massage purposes.

Electric Water Heater - A tank for heating and storing hot water for domestic use.
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Hydro massage Bathtubs - Represents a hydro massage and back massage with

micro rotating jets. Overflow hidden under the rim, ergonomic headrest,

underwater spotlight, perimeter lighting, remote control.

Massage Tables - used by massage therapists to position the client to receive

a massage. Most are manufactured with client comfort and

therapist ergonomics in mind. A typical table has an easily cleaned, heavily

padded surface, and a face cradle that allows the client to breathe easily while

lying face down.
http://en.wikipedia.org/wiki/Massage_therapisthttp://en.wikipedia.org/wiki/Massagehttp://en.wikipedia.org/wiki/Ergonomicshttp://en.wikipedia.org/wiki/Ergonomicshttp://en.wikipedia.org/wiki/Massagehttp://en.wikipedia.org/wiki/Massage_therapist


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Floor Plan


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Safety Precautionary Measures

Water balance and sanitizer has to be maintained: Make it a point to ensure that the

water is healthy and free of any form of harmful microorganisms before you actually

enter a spa. This can be done by regularly shocking the water and the maintenance of

the total alkalinity and pH of water for controlling bacteria in the water.

Consumption of Alcohol and Drugs in the spa: It is dangerous taking alcohol and drugs

when in the spa as the hot water tends to amplify the effects of the alcohol and drugs.

This may lead to dangerous consequences. So if you take drugs, consult your doctor for

directions on the right use of prescription drugs in the spa. Instead of taking alcohol,

many people prefer drinking a chilled soft drink, mineral water or juice when relaxing in

the spa.

Precautions for Children and Infants: If children and infants are to enter into a spa, they

have to be introduced slowly so that they have time to adjust to the change of

temperature without any fear or discomfort. Children should never be left unattended in

hot tubs, spas or pools. A few minutes in even a shallow pool or spa is sufficient for a

drowning hazard to take place. Remember, prevention is always better than cure.

Pregnancy and spas: It is not at all advisable for pregnant women to enter a hot tub or

spa without a consultation with their physician.

Dangers of hair entanglement: It is possible for a drowning risk to occur with a bather's

hair getting entangled in a drain cover, when hair and water draws down the drain. This

is why children, or anyone for that matter, should not play with their heads placed

underwater in a spa.

About the Power Cut-off Switch: It is important to install a manual disconnect device for

the spa at a minimum of 5 ft. and a maximum of 15 ft. from the spa, for your safety. Also

make it a point to check local codes.


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Electrical Devices in the spa: For safety reasons, corded phones, TVs, hair dryers,

radios and other electrical devices would not be handled when in spas or pools or when

in contact with water with wet hands or legs. Make sure that all electrical outlets are

located at a safe distance from the spa or hot tub, following local building codes.

Electrical devices should be kept away from the water, and never on the edge of the

spa. This is because if an electrical appliance falls into the water, or is touched by a wet

person, possible electrocution results.

Importance of Safety Rails & Steps: Spa steps and handrails are required for help when

getting in and out of hot tubs with wet and slippery feet. With a towel bar, you can

ensure that dry towels are available for feet and hands. For added safety, you could

have a non-skid surface around the parameter of the spa. To avoid accidents with

broken glass, snacks and drinks can be served in plastic containers when in the spa.

There should be adequate lighting at ground level, at night time.

Benefits of a Tub Together: Adults soaking together are always a wiser and more

entertaining option in a spa. This is because with one or more partners, you are sure

someone is there if you have a problem in the spa. Of course, children should always

be accompanied when in the spa.


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V. Financial Aspect

Start-up Capital: Twenty Million Pesos (P20, 000,000.00)

POSITIONS SALARIES

NO. OF

EMPLOYEES TOTAL

Spa Director 25,000.00 1 25,000.00

Assistant Spa Director 20,000.00 1 20,000.00

Operation Supervisor 18,000.00 2 36,000.00

Receptionist 15,000.00 3 45,000.00

Spa Attendant 13,000.00 6 78,000.00

Treatment Manager 20,000.00 1 20,000.00

Massage Therapist 13,000.00 6 78,000.00

Esthetician 13,000.00 3 39,000.00

TOTAL: 341,000.00

MACHINES & EQUIPMENT QUANTITY COST TOTAL

Jacuzzi 3 320,000 960, 000.00

Massage Shower 24 10,500 252, 000.00

Sauna and Hammam 6 27,960 167, 760.00

Water Tank 2 365,000 730, 000.00

Hot Tubs 3 235,790 707, 370.00

Electric Water Heater 2 23,999 47, 998.00

Hydro massage Bathtubs 6 63,000 378, 000.00

Massage Tables 12 4,620 55, 440.00

Other Tools & Equipment 1 350, 000.00

TOTAL: 3, 648, 568.00


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OTHER EXPENSES:

FACILITY COST

Landscaping 300,000

In House Maintenance 1,000,000

Insurance 500,000

Permits 100,000

Spa Maintenance 200,000

Outsourced Maintenance 100,000

Total: 2,200,000

UTILITIES COST

Water 2,000,000

Electric 1,500,000

Gas 500,000

Cable 100,000

Waste Disposal 100,000

Sewage 100,000

Total: 4,300,000

OTHER SUPPLIES COST

Food 200,000

Beverages 200,000

Dining Supplies 50,000

Cleaning Supplies 50,000

Office Supplies 50,000Fitness Equipment 150,000

Spa Supplies 500,000

Total: 1,200,000


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MARKETING COST

Magazine Ads 300,000

TV Ads 400,000

Blimps 100,000

Billboards 200,000

Posters 100,000

Flyers 100,000

Website 100,000

Brochures 200,000

Radio Ads 200,000

Sponsorships 25,000

Total: 1,725,000

CONTINGENCY COST

Public Safety 50,000

Liability Insurance 100,000

Natural Disaster Fund 100,000

Emergency Fund 100,000

Unseen Costs 100,000

Total: 450,000

MEMBERSHIP COST

Fitness Membership 500,000

Spa Membership 500,000

Total: 1,000,000


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ALL EXPENSES

(summarized)

Salaries 341, 000.00

Machines & Equipment 3, 648, 568.00

Facility 2, 200, 000.00

Utilities 4, 300, 000.00

Marketing 1, 725, 000.00

Other Supplies 1, 200, 000.00

Contingency 450, 000.00

Membership 1, 000, 000.00

OVERALL TOTAL: P14, 864, 568.00

VI. Marketing Aspect

Water spa is a new attraction in terms of pampering ourselves. Water spa is not just any

ordinary resort or spa offering in the metro as of today. We develop, enhance and level

up the resort into a more relaxing and enjoyable place. Massage, hydroelectric

swimming pools, Jacuzzis, massage shower and sauna bath to name few is the new

addition in water spa world. Top of the line machines and equipment put all together in

one special place Tranquil Water Spa.

We will write a press release about our new spa and create a press kit and send to

important local and national media. We will be calling the editors to see how they can

help them with your expertise. Plan the event. We come up with a party concept that

would communicate what we are up to. More important editors may prefer a one on

one visit. It is good to know the media and inviting them to our spa is a good way to

start to know them. I think we are only new, thats why we should take advantage of

that and get all the free publicity that you can.


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Marketing strategies to be used:

Business Incentive Firms: Contact companies who offer their Fortune 500

clients spa stays as an incentive for sales achievement and management perks.

Direct Contact and Business Presentation: Large companies could be

contacted and presentations made to senior executives responsible for creating

programs for their employees

Direct Mail Program: Purchase mailing list based on defined demographics and

leads developed through advertising and networking with related industries.

Media/Celebrity Trade-Out: Offer frequent trades with editors and magazine

writers in exchange for products, or spa treatments.

TV & Radio Reviews: Offer complimentary massages to staff and explain

treatments and services.

Referral and Customer Loyalty Programs: Offer special discounts on future

spa visits for each new client that is referred. A repeat guest can earn a free spa

treatment.

Press Kit & Marketing Materials: Prepare a press kit and press releases during

the pre-opening phase of the spa. Corporate travel incentive firms, fitness clubs,

private industry, concierge groups, hotels are mailed in response to prospective

guest inquiries. Information on location, services, products, spas, etc. Press

releases, media campaign, collateral material layout and production schedules.

General Market Brochure: Feature the specific services and products offered.

Logo and identity graphics should also include letterhead, envelopes, business

cards, reservation package press kit insets, newsletters, special events

announcements, etc.

Newsletter: Newsletter which will feature upcoming events promotions, specials,

etc.


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Follow-up Telephone Calls: Each client of the spa will receive a telephone call

shortly after their visit to the spa.

Client Profile Records: Computer data sheets on all clients and prospective

clients for the spa will be maintained.

Feasibility - Tranquil Water Spa

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