CHAPTER 4

MARKETING ASPECT

This chapter deals with the different factors considered in forecasting the sales

such as the demand and supply for the products offered by the business. It also discusses

various strategies the company plans to implement in order to attract more customers so

as to attain the maximum profitability of the business in order to support growth and

development. And lastly, it tackles the strengths and weaknesses of the marketing

strategy as shown in the SWOT Analysis, competitors’ profile, industry updates and the

target market positioning of the business and its competitors.

Business description

B’s and T’s Spa is the first-ever baby spa business in Bacolod City. This business

is a service provider that offers relaxing spa, soothing massage, entertainment, and

incredible activities. All of these amazing moments are offered at affordable prices.

This business is for the babies who need to have physical attention for relaxation.

Also, it is for the toddlers to have unforgettable kind of fun and enjoyment. They will

also have access to the mini-playground if they want to. Marketing is being used on

promotion of the company to its customers. B’s and T’s Spa, being one of the chosen

place of parents or guardians to cater the needs of their babies or toddlers puts its success

to a good marketing stunt. The business will create different ways to promote itself for

others to have better awareness.

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Methodology

         The survey was conducted by letting one hundred fifty (150) parents or guardians

in Bacolod to answer the questionnaire manually and electronically. It was handed to

them personally as well as sending them the link and the researchers waited for them to

finish it.

Demand Analysis

B’s & T’s Baby and Toddler Spa believes that Bacolod City needs to experience

a new trend for child care service and relaxation that offers not only standard massages

but also hydrotherapy along with other amenities to help children to be more sociable

with other children and let the parents see that their children can relax and enjoy. The

potential customers are the babies and toddlers. It should recognize the willingness of the

possible customers to engage in this business in order to serve its clients accurately.

Furthermore, the business conducted a survey to know how this type of project is

positioned in terms of income and interest of the clients.

In setting up the basic demographics of respondents, individuals were first asked

to state their sex. Though not directly affecting the profitability of the business, this

question gives the researchers an idea of certain characteristics that affects the answers of

the respondents.
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Figure 19: Sex of Respondents

Figure 19 shows that 120 respondents are female and 30 are male.

Freque Percent
Income Range ncy age
Under Php 10,000 58 38.90%
Php 10,000 to Php 35,000 65 43.00%
Php 35,000 to Php 65,000 18 12.10%
Php 65,000 and above 9 6.00%
Total 150 100%

Table 8: Household Income of Respondents

In order to determine the buying capacity of the target market and the basis for

pricing, the respondents were asked to indicate their monthly income or allowances.

From the result of the survey, majority of the respondents have a household income of
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Php 10,000- Php 35,000 which comprises 43% of the total respondents. While others

have under Php 10,000, Php 35,000- 65,000 and Php 65,000 and above household income

with 38.90%, 12.10% and 6% respectively. The information implies that most of our

target market’s household income is ranging from less than P 10,000 to P 35,000. This

data will influence the decision on the prices of the business’ products.

Figure 20: No. of Respondents who are willing to sign up their baby or child

in a Baby and Toddler Spa

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Figure 21: No. of Respondents who think the Business Location is

Convenient

Figure 20 shows that 133 out of 150 or 88.70% respondents are willing to sign up

their baby or child in a Baby and Toddler Spa if it opens. Also, Figure 21 shows that

72.7% or 109 out of 150 respondents think that the business location is convenient to

them. Thus, chosen location of the business will be helpful in the place strategy.
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Figure 22: Percentage of respondents on the time they need a Baby and Toddler

Spa

Figure 22 shows that 55.7 % respondents need child service such as a baby and

toddler spa during the morning 28.9% in the afternoon and 15.40% for others such as

whole day from 8:00 am – 5:00 pm or from morning until afternoon.

Freque
Top 3 Reasons ncy
Relaxation 83
Social Interaction for Child 83
Due to work 75

Table 9: No. of Respondents on why they need a Baby and Toddler Spa

Table 9 shows the various reasons on why the respondents want to avail the

services in a Baby and Toddler Spa. The top three reasons are relaxation, social
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interaction for the child and due to work which has 83, 83 and 75 number of respondents,

respectively.

Frequen
Top 3 Factors cy
Cost 107
Skills/ Professionalism of
Workers 105
Security 104

Table 10: Factors that respondents prefer in choosing to visit the Baby and Toddler Spa

The factors that 150 respondents will look at in choosing to visit the Baby and

Toddler Spa – if they choose to avail are presented above through Table 10. The top three

factors are the cost which was selected by 107 out of 150 respondents,

skill/professionalism of workers, which was chosen by 105 out of 150, respondents and

security with 104 out of 100 respondents selecting it.

Frequenc
Top 3 Other Amenities y
Playground 117
Educational Session 106
Parents' Lounge 83

Table 11: Other Amenities that respondents want include in the baby and toddler spa
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The other amenities that the respondents want to include in B’s and T’s Baby

and Toddler Spa are shown in Table 11. It shows that most or 117 out of 150 respondents

like it when a playground is included in the service, to be followed 106 out of 150

respondents would like to have an educational session, and 83 out of 150 respondents

chose also to have a parents’ lounge in the business location.

Frequenc Percentag
Amount Range y e
200 3 2.00%
300 and Below 3 2.00%
200-300 1 0.67%
300 2 1.33%
300-400 121 80.67%
401-500 14 9.33%
501-600 6 4.00%
Total 150 100%

Table 12: Amount the Respondents are willing to spend on Baby and Toddler Spa

Services

Table 12 presents the amount that the respondents are willing to spend in a baby

and toddlers’ spa (rate per transaction/booking). Table 12 emphasized that 121 out of 150

respondents are willing to spend Php300-400 on baby and toddler spa service and at less

Php 200 per transaction.

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Criteria Top 3 Factor Frequency

Service of Staff Professionalism 133
Patience 127
Location 104
Physical Features and Amenities Cleanliness 137
Security 136
Health Assistance 130

Table 13: Top 3 Factors Respondents consider Important

Table 13 presents the top 3 factors consider of important based on two (2) criteria

which are the service of staff and physical features and amenities for the 150 respondents.

This question is a multiple response type of question. The table shows that the top 3 very

important factors of the respondents based on service of staff are professionalism with

133 respondents, patience with 127 and location with 104. While for physical features

and amenities are cleanliness with 137, security with 136 and health assistance with 130

respondents. Thus the business must take into consideration these factors in order to

ensure customer satisfaction.

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Industry Update

In the Philippines, as of end-2006, there were 87 estimates spa businesses

operating in Metro Manila alone, a figure 74% higher since 2003; and with those offering

spa services varying, as hotels and resorts jumped on the bandwagon, with 20% spas

located in hotels and resorts, and 76% of spas stand-alone day spas. This according to

Intelligent Spas (IntelligentSpas.com), which released the Spa Industry Profile

Philippines 2003-2007 that also noted the growing size of spa facilities (averaging 609

square metres), with an average of 10.9 treatment rooms, making them the largest across

the Asia-Pacific region. The growth in the Philippines is not just limited to Metro Manila.

In the Queen City of the South, Cebu City, for example, Spa and Wellness

Association of Cebu Inc. (Swac) president Johnie Lim earlier noted in Sun Star that their

local health and wellness industry is expected to grow further this year, as more people

seek out spa services. “More people have realized the benefits of going to a spa, even

those in the lower middle income (bracket). The trend can be seen even among people

who have never been to a spa before,” he says, all the while noting that even with the

growth, “many small spas will close; those who will survive are those that have captured

their own markets.” Cebu City already has 160 spa centers, more than in Metro Manila,

and up from only 90 in 2006. “It’s becoming a part of the lifestyle of many Cebuanos.

(With the growth), Cebu City is becoming wellness island,” Lim says.

Little Lamb’s Pediatric Wellness Place was first established on January 12, 2006.

This is a one-stop shop for the pediatric age group from 0-19 years old consisting of spa,

salon and wellness clinic.

The birth of the first and only spa exclusively catering the pediatric age group
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from 0-19 years old was conceptualized when Prof. Carl Balita and Dr. Roselyne

Medina- Balita, a pediatrician realized the importance of massage therapy, good

grooming and well-baby check-ups in rearing their 4 kids. This wellness place was also

built with the principle of not “instead of, but in addition to” medical practice, combining

all preventive and therapeutic efforts to maintain and promote wellness of our children.

One of the Baby spa’s in the Philippines is Little Lambs provide therapeutic

massage to infants less than a month old and to young kids up to 19 years of age. Aside

from various massage offerings such as Infant massage, Swedish massage, Shiatsu and

Reflexology, the one stop-shop also has a play area and a salon that caters to the

children’s grooming needs such as haircut, hair and foot spa, manicure and pedicure. To

further promote wellness, the clinic also offers immunization, weight and growth

monitoring, nutrition, consultation, developmental milestones, as well as cholesterol and

diabetic screening.

Competitors’ Profile

B’s and T’s as the first Baby and Toddlers’ Spa in Negros Occidental child care

and health industry that provides variety of services for baby and toddlers’ relaxation and

unique hydrotherapy sessions, stimulation of digestive and circulatory systems and

improvement of sleeping patterns leading to better attention, memory and emotional

regulations according to a spa founder in Australia. However, in business world having

competitors is inevitable. Through research of the different major players in industry, the

researchers conclude that there is no competitors spotted in Negros Occidental at the

present.
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Market Analysis

Every business venture has its own strengths and weaknesses as well as

opportunities and threats that may be evident along the way. These are the things that a

business needs to address and identify in order to remain competitive in the market:

strengths that need to be focused on, weaknesses that should be worked on to be

transformed into strengths, opportunities that need to be identified, and taken advantage

of and threats that a business should be cautious about. These can be ascertained through

the SWOT analysis.

SWOT Analysis

The following SWOT analysis captures the key strengths and the weaknesses within

the company, and describes the opportunities and threats for B’s and T’s baby spa.

STRENGTHS

Numerous strengths exist in the development of a baby spa business. It is the chance

to provide wellness therapies for babies. Positioning this business in an area of upper

middle class and affluent people can lead to success, which makes location a strength as

well. Other points that bode well are the possibilities of offering many different types of

services, such as deep baths and massage therapy for babies and toddlers. The

atmosphere itself is an excellent one in which to work as well as enjoy as a client.

Hydrotherapy can develop babies’ muscular and skeletal system, while baby massages

stimulate their digestive systems to reduce constipation.

 Entertainment room with toys and books

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 Parents’ Lounge

 Water therapy accelerates growth

 Swimming boosts cognitive development

 Baby massages relief colic

 Massages may reduce jaundice

 Muscular and skeletal strength is increased through the water’s gentle resistance.

 Movement through the water has a positive effect on the digestive and circulatory

systems, which can reduce meconium levels and lowers the risk of jaundice three

or four days after birth.

 Subtle water pressure on the chest can increase lung capacity by strengthening

intercostal muscles and the respiratory system.

 Regular visits can benefit the cardiovascular system.

 Innate swimming reflexes are stimulated and co-ordination is developed as they

learn to control their movements.

WEAKNESSES

The perceived the weakness for the business could be that it is starting out as a

newbie and it is not that easy to convince people to come and visit. This is why the baby

spa have to really work hard in advertising strategies, as well as solidify how to seal deal

with our potential clients

 New-borns are delicate and too prone to any kind of skin infections.

 A lack of prominence due to the newness of the operations.

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 Laborious and expensive process to obtain licensing to run the operation and be in

compliance with all requirements and stated laws.

 Costly requirements, such as fingerprinting and background checks for all

employees, recruitment and training of qualified and trustworthy workers, and

strict documentation.

 Exorbitant start-up costs.

 Low client list as the center is new

Opportunities

The fact that the business intends to lower the fees involved in, seems to be one of

the ways at which the business will attract all and sundry. The business is certain without

a doubt that with the quality of our employees and services, the business shall attract

clients that would be highly satisfied with us

 Capture more of the market

 New to the market

 Create new concepts

 Holiday/Seasonal promotions

 Latest equipment

 Produce merchandise and souvenirs

 Trainings and Seminars to have productive employees

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Threats

Competition from already established facilities that improve their service

offerings to be more competitive.

 Complaints from customers regarding such things as dissatisfaction

 Possible competitors near the area

Target Marketing and Positioning

The target market for the business venture is mainly the parents or guardians who

has a baby or toddler where both sides wants to relax or where parents or guardians that

are busy with their everyday lives. The target market includes both working and non-

working parents. It will also cater to parents or guardians who just simply want their baby

or toddler to enjoy a new experience being in a baby and toddlers spa along with other

amenities.

This would be very attractive to people who would want to experience something

new for their baby or toddler. It also would be a first in the city to have a baby and

toddlers spa.

Since the staff are also experts and specialist, quality service is indeed guaranteed

particularly to those who still doubt the quality of service especially when their babies or

toddlers are involved.

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5 Ps of Marketing

Product Strategy

B’s & T’s Baby and Toddler Spa will be the first baby spa business to be establish

in Bacolod City. The business plans to provide services as well as service packages

shown below.

Table 14: Product Strategy

Services Description Consumable time

Baby/ Toddler Bath Babies and toddlers are cleaned 45 minutes

with the support of ring floaters
in a mini pool

45 minutes
Baby/ Toddler

Massage
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Table 15: Service Packages

Service Packages Consumable time

Package 1 (Baby/ Toddler bath with 1 hour & 15 minutes

massage)

Package 4 (Baby/ Toddler Massage with 1 hour & 15 minutes

their parents session ) every first and third
Saturday morning of the month

In lieu with this, there are other amenities offered by the business that adds to the

enjoyment of the babies and toddlers’ specifically, feeding station, playground,

educational session which is included in the costs per session. This could benefit the

community especially parents and their children aging 4 years old and below in ways

such as it relaxes the body, improves skin tone, improves posture, strengthens the

immune system, nurtures emotional growth and promotes quality sleep. Although a baby

spa business is new to people, survey shows that 133 out of 150 parents/ guardians are

interested to sign up their babies in a baby and toddler spa.

Parents who are willing to avail B’s & T’s Baby and Toddler Spa services can

assure the safety and security of their babies. To give their babies and toddlers relaxation

and an opportunity to socially interact with other babies and toddlers. Also, the babies

could learn new things that help them grow their individual aspects. B’s & T’s Baby and

Toddler Spa serves as a step for growing up.

Pricing Strategy

Pricing is vital for any business entity for it determines its profitability and
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survival. Prices will be set depending on the affordability of the target market as well as

to maximize profit without compromising the quality of the services offered.

Since 88.7% of the respondents are willing to sign up their kids in the spa with

71.3% of them saying that the service’ cost is on top of their queries, the business aims to

establish reasonably priced services keeping in mind that the target market are working

parents who usually have fixed budgets aligned with their household expenses. Based on

the survey, 81.2% of the respondents are willing to pay P300-P400 per session which just

goes to show that customers would want the services’ prices to not be too expensive.

As a result, after using cost based pricing strategy, the owners decided to have this

list of prices for B’s and T’s Baby and Toddler Spa’s services offered.

Table 16: Services with Prices and Consumable Time

Services Price Range Consumable Time

Baby / Toddler Bath PHP 300 45 minutes

Baby / Toddler Massage PHP 300 45 minutes

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Table 17: Service Packages with Prices and Consumable Time

Service Packages Price Range Consumable Time

Package 1 PHP 450 1 hr & 15 mins

Baby / Toddler Bath with Massage

Package 2 PHP 400 1 hr & 15 mins

(Baby/ Toddler Massage with their
parents session ) every first and third
Saturday morning of the month

Place Strategy

The business is to be located at the Nord Medical Hub building, Bs Aquino Drive,

Bacolod, 6100 Negros Occidental, Philippines, situated beside Fuel Star Gasoline Station

and 365 Modern Café. The business is located along the main access road where

significantly a high number of vehicles pass by every day which could be considered as

an advantage to gain customer when it comes to convenience and accessibility.

Moreover, considering the location of the business site is in a Medical Hub Building, the

customer while waiting their turn at the clinic, can easily let their baby and toddler relax

and enjoy along with other amenities the business can offer. Lastly, there are no

established competitors in the city especially around the business area.

Promotion Strategy
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Promotion is one of the most important marketing factor in a company or business. It

is a necessity to attract the public and invite new customers to try the services being

offered. B’s and T’s Baby and Toddler Spa aims to develop and achieve its target market

with effective promotional strategies that will still offer great services but with minimal

costs. The following are the promotional strategies that the business will employ:

1. Online Ads – In today’s generation, technology basically is part of each

individual’s daily life. Almost everyone have their own social media accounts

especially Facebook. Online advertisements in Facebook is one easy way to

attract clients particularly new businesses since users can just share to their

friends the promotional ads of the business in a simple click. Even people from

nearby cities might see these advertisements and will consider in availing the

services.

2. Print Ads – to gain more customers, the business will use print advertisements

particularly, flyers and brochures which will be distributed to various malls,

establishments like hospitals and clinics especially pediatric clinics near the

business location. Such flyers and brochures will contain important information

about the spa and massage rates, contact details for reservations and other services

the business has to offer.

3. Direct marketing – it is the direct interaction and connection with target customers

through use of email, telephone, messages and other tools to communicate

directly to them.

4. Public relations – a cost-effective way of advertising is through word of mouth, or

referral of satisfied customers to other people. Ensuring that the services given by
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the business are worth the cost and can satisfy customers is a high priority of the

business in order for these satisfied customers to advertise and share their

experiences with other people. In this promotion, every referral of a customer is

entitled for discounts or coupons which they can avail in their next sessions.

Price List
Services Price

Baby/Toddler Bath (45 minutes)PHP 300

Baby/Toddler Massage (45 minutes)PHP 300

Packages

Package 1 (1 hour & 15 minutes)PHP 450

(Baby/Toddler Bath with Massage)
Package 2 (1 hour & 15 minutes)PHP 400
(Baby/Toddler Massage with the Parents
(Every Saturday morning of the month)

Figure 23: B’s and T’s Baby and Toddler Spa Service Catalogue

People Strategy
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People are the most important factor in a service type of business, as they are the

ones who are doing the operations of the business.

The business’ employees must be licensed and well-trained professionals in the

field of spa service, especially in taking care of babies as it is important to the mothers

who will be future clients of the business, in order to identify the needs of the customers,

be able to act upon it accordingly, and render excellent and satisfactory services. The

employees should also have a pleasant attitude, especially in our business which deals

with mothers and children. They should be able to establish a good relationship with

varying customers to create good reputation for the business.

Physical Evidence

As a part of the spa industry, B’s & T’s Spa offers a quality that suits both the

parents’ and the children’s wants and needs. Every customer that B’s & T’s Spa gains

will have the assurance of getting the satisfaction through the amazing spa and massage.

Also, the parents will be satisfied because of the strong security features of the spa.

Indeed, the B’s & T’s Spa is a “Indoor Pool plus Playground” kind of atmosphere with

toys and fun stuffs and the assurance that the children will be well taken care of by the

expert people. The facilities most especially in the playground area are colorful enough to

help boost children’s mood.