Spa Marketing Resources: Day Spa Marketing

The Marketing Mix and Your Day Spa or Salon

Marketing your spa begins with identifying the needs and wants of your customers and setting goals and objectives to meet or exceed those needs. Although there are many factors influencing the success of your marketing efforts, you have most control over the 4 P’s of marketing: product, price, place, and promotion. For many small businesses, these four elements serve as the foundation of their marketing strategy. Let’s take a look at how marketing decisions centered on the 4 P’s affect your business.

Product Positioning for Your Day Spa

Product positioning refers to all "products and services," not just the physical products that you use (and sell) in your spa. Product decisions include:

• Brand
• Quality
• Styling
• Safety
• Packaging
• Guarantees
• Support

Consider the following: What brand(s) do you want to carry? Does this brand reflect the image that you want to project? Should you carry a private label brand? Will the private label give you the style and results that you need to be successful? Is the product safe and reliable? Is the packaging attractive and sophisticated? What kind of support will you receive from the manufacturer or distributor? What support and/or guarantees will you extend to your customers?

Price Positioning for Your Spa

Pricing your spa products and services is a key element of the marketing mix. Pricing decisions influence all your other marketing decisions. Pricing decisions include:

• Skim pricing (to maximize profits)
• Penetration pricing (quantity maximization)
• Suggested retail price
• Discounting
• Bundling
• Seasonal pricing

Consider the following: To maximize profits, should you price your products and services to "skim the cream" off the top of the market, to those who are less "price sensitive"? Will your target customers support that strategy? Will you and your employees be better served if you keep prices low, to reach a broader market? Will you sell at (or below) suggested retail price? Will you offer discounts by bundling products and services? Do you run seasonal promotions? When clients buy spa packages, do you offer discounts on products and/or future services?

Place (Distribution)

Place relates to the physical distribution of your products. As a retailer, you really don’t have to put a lot of effort into this area unless you want to consider selling products online. In that case, you’ll need to decide how you will fulfill orders and ship them. Will you offer same day or next day shipping? Will you send email confirmations when orders are shipped? Will you use the U.S. Postal Service, UPS, or FedEx? What will you charge for shipping and handling?

Promotion for Spa Products and Services

Promotion is that aspect of marketing communications that keeps the product in the minds of customers and helps stimulate trial and repeat purchase. Most spa owners and marketing managers are familiar with promotional strategies such as:

• Advertising
• Personal selling
• Sales promotions (buy one get one, coupons, introductory offers, etc.)
• Public relations & publicity

Before embarking on any promotional activity, consider your marketing goals and marketing communications budget. For instance, if your immediate goal is to introduce a new product of service, you may get great results through newspaper advertisements and direct mail campaigns to your current client list. But, if you’re trying to establish brand recognition along with long-term market leadership, then you’ll need to invest in a broad-based media campaign that may include television, radio, newspapers, magazines, direct mail, and the Internet. Building and maintaining strong brands requires that you advertise consistently over a long period of time.

Consider the following: What media will you use? Should it be "print" such as newspapers and magazines, or should you advertise on the Internet and radio? How often do you advertise? How will you track your return on investment (ROI)? Personal selling is the lifeblood of your salon…what incentives do you use to motivate staff to sell more? What about selling products on the Internet to reduce the high cost of commissions? How often do you run sales promotions? Are they seasonal or monthly? Do you discount product or services? Have you considered customer loyalty programs? Are e-mail 4newsletters a part of your marketing communications strategy?

Marketing Limitations

Are you ready to start your marketing campaign? Not quite! Remember, most successful advertisers are those with the biggest budgets. If you’re 4a small salon with a limited budget, carefully plan each ad and spend every dollar wisely. Use a balanced approach to your marketing and be sure to track your ROI.

Keep your ads lively and fresh. Gain attention by featuring something “new” or “free” in your marketing material. Can’t afford to give products or services away for free? Think again. What about free consultations and free gifts with the purchase of products and/or services. The free gift doesn’t have to be expensive but it should have perceived value to the client.

For small businesses with limited financial resources, the Internet remains one of the most cost-effective ways to market products and services. A salon website, combined with an email newsletter, is an inexpensive way to expand your customer base, promote your products and services, and grow revenue.

Conclusion: For the uninitiated, salon marketing can be a daunting challenge. Before embarking on a new marketing campaign, put a plan in place, paying careful attention to the 4 P’s of marketing. A carefully conceived marketing plan will help position and differentiate your salon or spa from your competitors.

Need help marketing your spa or salon? Call 860-655-2283 or email us at: .