Relaksasi Spa
( JePun Pali Spa )

A Case Study Presented to
The Faculty of Arts and Sciences
San Beda College
Mendiola, Manila

In Partial Fulfilment
Of the requirements in the subject
Principles of Marketing (MKC1)

Submitted to:
Dr. Jenny Ramos
Marketing Professor

Submitted by:
Conopio, Kevin John B.
Erestain, Harris Nicko P.
Ordinanza, John Paulo P.
Sy, Ma. Frances Katerine G.
2AMC
Company History:

Relaksasi is the only spa in the country that has an Indonesian spa concept. It brings a unique kind of pampering to spa lovers using a combination of ancient and modern method of treatment that has redefined the current trend in the spalon industry in the Philippines. Relaksasi, which means relaxation in Indonesian, was conceptualized with one thing in mind: to introduce the spa concept in the malls. By including spa services within the Filipino’s favourite hangout, they now have within their reach an oasis where they hie off conveniently to fully relax and rejuvenate themselves. To complement this unique concept, Relaksasi adopted an Indonesian theme to break new grounds in the spa industry. By introducing spa lovers to the Indonesian way of relaxation, Relaksasi has brought to mainstream spa business the best-kept secret of the Asian country in healing and bringing an invigorating spa experience to customers. Relaksasi carried a complete line of skin and spa services: Body Scrub and Wrap Rituals, Body Massage and Scrub, Herbal Steam Bath, Traditional and Contemporary Holistic Therapies, Facials, Hand Pampering, and Foot Therapy services. Relaksasi also boasts of a unique ambiance that transports the customers to Indonesia. Elaborate interiors define each store with all the trimmings of ancient Indonesia. Completing the Indonesian spa experience are its spa attendants clad in Indonesian garb who have been expertly trained in Bali and Surabaya to give the ultimate spa treatment ton customers. Relaksasi opened its first branch at SM North Edsa in September 2006, which received an overwhelming response among spa lovers. This paved the way for more branches which are all strategically located in malls around the Metro. Relaksasi also brought its unique concept to spa lovers living in the condo life by opening a branch located in one of Metro Manila’s classiest addresses. This year, Relaksasi has once again set trend in the spa business by opening its latest branch, JePun Pali by Relaksasi. JePun Pali, named after kalachuchi, which is Indonesia’s national flower, brings its distinct theme to the country’s biggest mall, the SM Mall of Asia, promising a spa experience like no other side of the Metro. Relaksasi currently has eight branches all over the Metro. It has branches in SM North Edsa, SM Southmall, Robinsons Metro East, Park Square 1, Robinsons Place Manila, SM City Sta. Mesa, Tower 2 of the Columns in Ayala Avenue, and at the SM Mall of Asia.

Situation of the company: The Relaksasi Spa still exists since September 8, 2006 and they have 8 branches around Metro Manila. Just like any other spa in the Philippines, the said spa also experienced net loss due to the world wide economic slowdown. At first, when the crisis is still happening in the US, Asian countries were not that affected, they do not experience loss in terms of profit, but still they cannot escape the reality of what this crisis can do that might affect the situation, credibility and progressiveness of any business. Although, our government try to keep our country away from recession through investing and lending money so that this important ingredient that fuels the economy will continue circulating.
Furthermore, price is the major problem in the company/business since it offers high price that affects the consumer’s choice. However, after thorough examination and studies they found out that price is suitable enough for the service.

Problems
Major Problem: 1. Which among the marketing mix will help the business strengthen and fortify its brand image over spa competition?
Minor Problem: 1. Is the price attainable by those people who have fixed income? 2. Is the promotional strategy good enough to promote their business? 3. Is the place of the business accessible for customers?

Objectives:
Long-term Objectives: To know the effects of setting price; choosing place or location; doing effective promotions; making products marketable; and attracting customers in business.

Time Duration: 1 to 5 years is needed to achieve the long –term objectives because it’s not easy for them to have a fast recovery from the economic slowdown. They need further studies and analysis about their market as well as in pricing and consumer behaviour. And as a researcher, it is also not easy for us to gather information about the situation maybe it can be after the recovery.

Short-term Objectives: To know the advantage and disadvantage of the marketing mix or the 4 P’s in the business.

Time Duration: 6 months per branch, because all we need is to conduct an interview to the in-charge officer of the company and ask them their Marketing Mix advantages and disadvantages.

Areas of Consideration: Strengths 1. Observe proper etiquette. 2. They focus on greater Manila area where there are many people who wants to relax because of the stress that they feel. 3. The ambiance of the spa. | Weaknesses 1. The price is too high which cannot afford by those people who have fixed income. 2. They don’t have enough employees. Though they have big spaces but still they cannot accommodate all the costumers because they have limited employees. 3. Their flyers were dull (only a photocopy) and they don’t have promos such as discounts for regular costumers. | Opportunities 1. Business Extension. They have different branches of different names. 2. They are in populated location such as Mall of Asia, SM North EDSA, Robinsons Metro East. 3. Referral and testimonials of customers. | Threats 1. Political environment. 2. Economy (Global recession) 3. Cultural environment. |

Alternative Course of Actions 1. Lowering the Price. Advantages: 1. More costumers seek and love to go on their stores or boutiques to have a treatment. 2. Because of lowering the price, they can attract people and eventually gain profit. 3. Low prices can easily be afforded by those middle and even lower class.

Disadvantages: 1. Not all times you can have more costumers which results for limited profits 2. At lower price, there’s a high demand which they cannot accommodate all the demands at the same time. 3. Low price can lead the business into bankruptcy.

2. Improve Promotional Strategies Advantages: 1. They can attract more customers. 2. They can also attract investors to invest on their business to be used for beautification of the spa as well as the promotions. 3. They can threaten other spa business because of flamboyant promotions. Disadvantages: 1. Quite expensive 2. Flyers that are being produced and given to the target market are easily put into trash so it’s a loss. 3. Sometimes some advertising strategies ended up in a not successful one.

3. Consistency of Spaces Advantages: 1. Same services in different branches. 2. At bigger space, more storage of product used in their services. (Milk, herbal scents and etc.) 3. They can add / offer more various spa services. Disadvantages: 1. Expensive construction 2. The time of delay for renovation 3. There’s no assurance of all spaces can be used.

Recommendation: 1. We recommend ACA # 2 which is to “Improve Promotional Strategies”

Detailed Action Plan:
Step 1: Contact the managers and do some appointment to them.
Step 2: Make a negotiation about the things that needs improvement.
Step 3: First thing to be renovated is the flyers. Make it livelier and attractive to get the attention of the target clients.
Step 4: Then, work on the site. The business needs to have a websites with appropriate theme and make sure the customer’s testimonials and suggestions can be heard.
Step 5: Lastly, remind them to maintain their established promotional strategies.

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