INTERNATIONAL INSTITUTE OF PLANNING AND

MANAGEMENT

AHMEDABAD

SUBMISSION

ON

DESIGNING THE BRAND STRATEGY ALONG WITH THE MARKETINGPROGRAMS FOR IMPLEMETATION WHILE LEVARAGING THE SECONDARY

BRAND KNOWLEDGE TO BUILD THE BRAND EQUITY IN DETAIL

FOR

BLUE SPA

Submitted To:

Prof. Dr. RAJIV PANDIT

Submitted By:

Pratik Negi

SS/09-11/ISBE

About the Sector we are discussing about

Market Trends – Male spas.  Teen spas.  Foot spas.  Medical spas.  The unveiling of very specific market niches has become increasingly popular as the spa industry has grown exponentially in the last few years, and spa developers are creating niches to beat the competition.  Chambers and Collier also believe 2006 trends will see an increase in chain spas (similar to McDonalds in the fast food world) available in malls and shopping complexes that service to a mass market with treatments available at a lower price point.

Environmental Issues – Slowly, developers will be more consciousness about environmental awareness and build more “green” spas, those which are energy efficient, conserve water, utilize recycled building materials, and are built in a way that minimizes the impact on the environment, among other things.  Many spa products already use all-natural ingredients and are packaged in recyclable plastic containers or refillable bottles.  There are also many products that donate a portion of proceeds to an environmental charity or back to the community.

Government Issues – The government’s involvement will be increasing in defining Medical Spas and its licenses, practitioners and regulations.  In 2005, lobbying concerning employee wages (minimum hours vs. flexible hours), tracking tips and compensation will see more results and changes in 2006.

Health and Sanitation – Consumer awareness is on the rise about the risks and dangers associated to spas and the cross-breeding of bacteria by guests.  New spa products and equipment have developed to aid in bacteria prevention, such as pipe less pedicure chairs.  Chambers and Collier wouldn’t be surprised if inspection ratings will be required to be posted for public display (similar to restaurants in some parts of the country) in the near future. 

Operational Issues – As competition increases, Spa Directors will be forced to run a more efficient establishment operationally, cutting unnecessary costs, tightening front desk operations, running more effectively and taking advantage of unique marketing and sales opportunities.

About the Company

The Company

Blue spa as an important brand that represents quality in1. skin care2. fitness3. Apparel4. Accessories

Accomplishment of task by

High quality manufacturing and research

Creative marketing program

Comprehensive distribution network Brick retail outlet Mortar retail outlet

Internet presence

Consumer catalogueUnits

France and California

Product Lines

@ Skin Care product line -- eye makeup removers, cleansing Creams, facial scrubs and masks, and body lotions

@ Fitness apparel -- Lycra products such as tights and shorts, plus polyester, cotton tops

The market -- To attain a unique market position.

Brand Categorization 1. Skin care2. Cosmetics3. Fitness apparel4. Accessories

Thus for creating the Brand strategy for Brand strategy along with marketing program leading to develop the brand equity model. We have to penetrate deep into the 3 sectors that we are looking into

The market The customer The finance required

The market 1. Unique position to be acquired2. Specialty product line in all the 4 major segments3. Quality and price index may vary in each line4. Creating new openings for profit.5. Bluespa will be positioned as a quality brand.

The Customer

1. Dual layer retailing2. Customer (end users and whole sellers)3. Distribution in all age groups4. reach the consumer through four distinct reseller channels.

@ Spas and Health Clubs @ Lifestyle Retailers @ Cosmetic Specialty Retailers @ Boutique Department Stores.

FinancialSales at Bluespa retail stores are planned to grow rapidly from Year 1 through

Year 5.

MissionTo establish Bluespa as an important brand that represents quality in skin care, fitnessapparel and accessories. We will accomplish this in the following ways:

High quality manufacturing and research. A creative marketing and PR program. Creation of a brick and mortar retail presence in 2010. Development of a wholesale distribution network by the third quarter of 2010. The successful launch of a Bluespa Web presence by the first quarter of 2011. The successful launch of a consumer catalogue in the third quarter of 2012.

Keys to Success

Quality product. Manpower. Product logistics and quality control. Product placement in key retail accounts. A vertical retail presence in brick and mortar, catalogue and e-commerce. The creation of a "buzz" about this "hot...new" brand among opinion leaders

through a combination of PR and product placement

About the companyBlue spa is a company that has created a brand concept consisting of both skin care andAthletic apparel utilizing multiple channels of distribution. The plan that follows explains market, value proposition and market segmentation strategy. The detailed financial plans provide a clear view of our sales and profit forecasts. These plans show how Blue spa will reach profitability in third year of operation and generate shareholder return on equity within five years. Skin and body care products will be developed and produced at our contract facilities in France and California. Production of apparel products will be managed through our contract manufacturer of sport-related apparel. Production of accessories will be managed through a contract with a manufacturer of quality sports-related accessories including: bags, hats, totes and socks for the wholesale market

Concept of Brand strategy

Developing a brand strategy can be one of the most difficult steps in the marketing plan process. It's often the element that causes most businesses the biggest challenge, but it's a vital step in creating the company identity.

Your brand identity will be repeatedly communicated, in multiple ways with frequency and consistency throughout the life of your business.

BLUE SPA

PRODUCT-LINE BRANDING STRATEGY  Here, the products appear under the same brand name and possess the same basic identity but

with slightly different competencies for example Follow Me line of hair shampoos. Here the brand line comes under the hair-care category but the different line extensions cover complementary applications of essentially the same product

Advantages therefore are economies of scale in advertising and promotion and each new line extension strengthens the position of the brand and therefore its image. The line helps defend the category from predatory attack. Hence, individual product brands can move across to line brands as companies find ways of extending the brand to different consumer groups or segments.

Why Product line Branding Strategy Because the Brand is coming in new existence and thus the chances of survival of every product item is not secure. Thus marketing a single product the expenses on advertisement becomes way expensive and to promote a brand in this manner is cost and time saving exercise

How Product line Branding Strategy helps

Its major effect is on the Line category that becomes a Brand in itself in due course of time. so any product item that is present in this range doesn’t find difficult to make its mark.

In Bluespa case

Skin Care Fitness Apparel

Biocatalyst tonic (eye makeup remover) Long sleeve poly pique v-neck

Cleansing cream Long sleeve poly pique mock

Multi protection day cream Lycra jacket hip length

Regenerating facial scrub Lycra pant

Hydrating cream mask Lycra tight

Purifying cream mask Lycra short

Peel off face mask Lycra long sleeve crew top

Royal sea cream Rib cotton. Etc

Body lotion Super firming gel Tensing and regenerating cream Sparkling sex pebbles

Smoothing after sun gel

Sun care hydrating milk

Anti aging protective

Reason

If we go ahead with other strategies then

PRODUCT BRANDING STRATEGY then the products distribution is wide and covering about only 2 sectors thus to cater every product in the market will be an add on cost. Plus will be products range is somewhat similar, so might create confusion with customer base that is majorly niche

PRODUCT BRANDING STRATEGY The products are not that distinct to go with it. And the line items are working in only 2 categories thus this will add to the confusion among customers.

PRODUCT- RANGE BRANDING STRATEGY the functionality of every product is different that will add to the benefit to the customer in a distinct manner be it in the apparel range or the cosmetics.

CORPORATE BRANDING STRATEGY First the name of the corporate can be used but its not a guarantee that every product item may be a success story so we have to understand the fact that if line branding is used. The end consumer will understand that the company is giving such products but they may be different when used.

Details and Depth of line branding strategy-

For the branding Blue Spa will going to the following factors and this will helps to create the hygienic brand are as

Consider the upper class of the societies may use different product from other manufactures Will not Consider only high income person rather average income group with more penetration Provide a range of the lined sequence products Continuous improvement Consider the high educated and health conscious customers later the individual products may

make their own mark.

Therefore the above factors are to be considered by the company for making a brand. Other than it company creates awareness through the advertising and the events etc for the branding.

Reason to adopt line branding-

The price of the products in the apparel range is somewhat uniform Distribution and innovation is the reason for the line branding in cosmetics line of the company.Plus wholesale distribution and retailing will be able to better project the line items.

Implementation

For the branding company will going to consider the following branding strategy as-

Dual and endorsed brand Multiple product strategy

Marketing strategy

For the Skin care segmentation strategy and penetration in the market, that will guide to the competitive approach of the company to race against the other players in the market, Spa products are for the elite customer class but the company can utilize the products for average scale users for the mass scale usages.

For the apparel range the apparel market is full of competition thus. And the future ventures and the product range they are about to launch are already available. Rather it would be beneficial for the Bluspa to cater the product line to High and middle income group to make up the brand name. so that the image of the company doesn’t reflect the uniformity of the

Brand equity in detail-

Skin Apparel

Communication strategyWorking independently For both line

Bluespa

Overall positioning

Of both the product line in uniform way

Continuous Product improvement in both lines

Transferable-Line categorization helps

d

BYPratik NegiISBE SS (09-11)Roll number-- 27

Likeable –products are innovative in both lines

Adaptability will increase with line distinction