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Day Spa Marketing Plan

Submitted by Stephanie330 on May 16, 2005

Category: Miscellaneous
Words: 1296 | Pages: 6
Views: 698
Popularity Rank: 10,091
Average Member Grade: N/A (Add a Comment / Grade this Paper)

Industry Overview:

There are an estimated 12,100 spas throughout the United States. In the U.S. the largest spa category, accounting for seven of every ten spas, is day spa. Resort and hotel spas are the second largest, with club spas, medical spas, mineral spring spas and destination spas respectively trailing. Geographically speaking, the distribution of spas in the U.S. generally parallels that of the population distributions with the largest region being the North East.

According to the ISPA (The International SPA Association) in 2003 there were approximately 136 million spa visits made in the U.S. Sixty percent (60%) of these visits were to day spas while 27% were to resort and hotel spas and the remaining 13% were spread across the four other types of spas. The U.S. spa industry generated an estimated $11.2 billion in revenues in that same year. Fifty two percent (52%) of a spa¡¦s revenue is gained from its treatment rooms. Despite being the largest segment, day spas, accounts only for just under half of that revenue at 49%

The Kline Group research suggested a strong growth (2003-04) in the spa market close to 11% from driving forces such as:
„Ï High levels of media attention
„Ï Increased number of product brands
„Ï Greater consumer awareness of market products/benefits
„Ï Lower price points relative to surgical and non-surgical procedures
„Ï Anti-aging trend continues

Between 2002 and 2004 studies from the ISPA concurred with an annual growth rate of 12%. Since its growth rate peak in 2000 at 51%, the number has gradually moderated.

As in any industry, demand is the driving force that determines how well the industry performs.




Competitive Profile:

With the largest population of day spas being located in the North East region the competition is tough but not unbeatable.

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