• BREATHE• RELAX• RENEW…………………

Visit us at www.desertrose.com

DESERT ROSE

Market Analysis Summary

• Cardiff Capital City is a major Financial and Business Services hub of Wales, with its economy contributing 20% to the GDP of Wales.

• Currently, 190,000 professionals work, some 300,000 plus reside and a total of 1.4 million persons living within a 45 minutes drive time from Cardiff.

• 69% of Cardiff’s population comprises of those aged between (16-60), Desert Rose targets at bare minimum of 0.6% customers in the starting year, who tend to have realistic Health Concerns.

• With the 28% increase in expenditure on health (National Statistics) in Wales, we believe that a yoga centre can be very attractive to our customers if we create a program that fits the time constraints of their jobs.

Market Segmentation

Desert Rose will focus on 3 main customer groups:

These customers have a concern for Health, for some it comes as necessity, and for some as style statement.

Middle Income Urban Population: This group constitutes the major market segment primary target for Desert Yoga in terms of Yoga and Massage. Ages: 26-40Family Income: GBP 15,000- GBP 20,000

Upper Income: The upper income customer is a secondary target group.  Their demographic characteristics are the following:Ages: 40-60.Family Income: GBP 40,000+.

Pensioners ( 60 and Above):- Pensioners also form a potential segment for Desert Rose. They constitute for 13% of the Cardiff population. Ages: 60+Family Income: Pension, Savings

Target Market Segment Strategy

• Desert Rose determined to become a professional commanding troop in Health and Leisure Industry in the UK market.

• The target is that all the customers could come in to enjoy authentic Asian yoga and massage and a fresh experience of Asian culture that can make every newcomer become regular customers.

• Yoga classes and Massage services can be no longer than 45 minutes, be scheduled to fit the break and rolling lunch schedules that exist in the downtown businesses.

• The focus of the instruction to be tailored to a clientele , seeking maximum relief from the pressure of work and then returning to the workplace.

• Creating a noticeable difference in the customers' sense of well-being’

• To generate a tremendous word of mouth and bring in more first time students.

Market TrendsYOGA:-

Yoga is a growing trend.  It was popular in the seventies and has come back full force into vogue in the 21st century.

A Cultural phenomenon and an integral part of the wellness trend in UK and US.

A substantial growth in the number of practitioners over the next few years.

It has strayed from its spiritual roots, An increasing number of yoga teachers, entrepreneurs and enthusiasts are going after an ever-smaller market.

MASSAGE:

Massage is a very personal service, and different clients are attracted to different techniques and personalities.

This business is becoming increasingly easy to break into, since obtaining the training necessary for licensing is not all that arduous, nor difficult to maintain.

We at Desert Rose are firmly going to stick to the Golden Image of ‘ Being Authentic Asian’

COMPETITORS

• Looking forward to Authenticity and Ambience of Desert Rose, there are none of those schools who offer such kind of services and product differentiation in Cardiff, at competitive prices and convenient locations.

• “Schools" in the area will be able to match the quality of instructions, but are often away from easy access.

• Asian authenticity + Service Differentiation into Yoga, Massage, Consultations, Events and Workshops, Boutique, Dieticians and more, all under one roof, is offered for the first time in the Welsh Capital.

• Additional offerings from Desert Rose , as compared to their Competitors in Health and Leisure Sector.

Marketing Planning and Strategy

Intensive Marketing Techniques.

1.Advertisements: Advertisements in television, press, cinema, radio, health magazines, Local Transports, Hoardings, Fliers in Strategic Locations.

2.Internet and Websites: A well developed website. The company shall provide promotional benefits to customers through B2C, C2C websites, social networking sites, Cardiff Council websites, Health Centre.

3.Personal Selling and Direct Marketing (Buzz Marketing): High degree of personal selling through health centre, community centre, shopping complexes and other strategic locations.

4.Database/Mobile/Telemarketing: Variety of media including direct mail, telemarketing, direct response advertising, mobile marketing, Catalogue marketing.

5.Sales Promotion and Publicity: Association with Supermarkets, health centre, Nutritionists, Hospitals and offer discounts that are designed as per the needs of the consumers.

STRATEGY AND IMPLEMENTATION SUMMARY

Pricing Strategy

Cost Based Pricing:- With high class Ambience and Authenticity, City Center location, we shall have a pricing strategy in the starting year which yields results to obtain the break even for long term sustainability.

Health and Leisure most important aspect in everyone’s life, certain level of sales in the first year are estimated and shall have Cost Based Pricing as per the market analysis.

Market Led Pricing:- Yoga classes in lively atmosphere/ambience and Massage Services with high hygienic standards, Accredited by the Council, Authenticity, Delivered by experts, we tend to set a price which gives Service value to the customers.Value for Money Based Pricing depending on the quality, no of sessions, time, and the type of service chosen, and depending upon the Target Market differentiation, price would be charged to our Customers.

Our services would be based on the theory of ‘Economic Value to Customer ( EVC) Analysis’.

Referral Program - Start running “refer a friend” or “bring a friend to yoga class” programs with current yogis .

Internet Marketing – Have a website and to Use the Internet to communicate with our yoga students posting yoga events, emailing yoga students, and newsletter to stay on their radar.. Set up a template that we can use every month to communicate new programs, special offerings, clothes etc.

Beginner’s Series - Advertise in local weekly newspapers (very inexpensive) or go grassroots and put posters up in local coffee shops, Laundromats etc. We would offer a beginner’s price for a pack of 6 yoga classes to start the program, offering a morning and evening class.  

Boot Camp / All Day Yoga Immersion - A great chance to invite yoga students and their friends to an event that can be a lot of fun and provide the studio with new faces.We can bill it as a full day immersion or boot camp…

Sell Yoga Accessories - Make extra revenue selling blocks, mats and t-shirts. Most yoga studios do not have much room for yoga products or a boutique…

Promotion Strategy

Focusing on building a customer base by providing safe and healthy way of living to reduce the risk of suffering from physical pains and mental illnesses.

Working closely with local doctors (practitioners) and elder-care homes to bring in customers with minor health problems.

Negotiating with local community to offer free services for elder neighbors or patients with minor physical pains for insuring referrals to our centers.

For Yoga:• Reach out to 0.6% of target market and acquire 10% customers, i.e. around 1100 by the end of the first year of operation.• Increase customer base by 25% by the end of the second year of operation.

For Boutique:• Achieve sales in excess of £95,000 from the boutique.• Develop online ordering capability for products to increase sales and market share by the end of first year.

For Massage:• Acquire no less than 5 customers a day for the first year of operation.• Create additional services through wide choices within 12 months to broaden market

Sales Strategy

COMPETITIVE EDGE

The competitive advantage of Desert Rose lies in its authenticity, location, quality and ambience of the facility. Qualified staff and authentic services are the most important competitive edge. Desert Rose’s yoga and massage services are niches in market whereas most gym centre place too much focus on the physical exercises while ignoring the real benefit of exercise which is not only physical but also mental, the unique combination of low-impact exercise (yoga) and mental peacefulness (massage) . Our facility would be a perfect compliment to our brand image.

Desert Rose shall offers service differentiations, with Yoga, Massage, Events, Consultation, Nutritionists, Boutique all under one roof, by creating a Brand Value in the market place of Health and Leisure.

Price Offerings customized as per the needs of the customers, demographics, and choice, shall provide the Brand Competitive Edge

Desert Rose plans to have Association and Accreditation from the Cardiff Council and recommendations from the Council to the community recognizing it as ‘ Health Center’ on their website and other sources.

Desert Rose plans to be associated with Leading Supermarkets like Sainsbury’s and Health Shop like Body Shop, offering discount coupons relating to certain healthy products and a way of promotion.

Desert Rose would be associating themselves with Major Gymnasiums in Cardiff, who shall offer combinational discounts, e.g. Gym Membership + 4 Massages or Yoga Sessions Annually.

STRATEGIC ALLIANCES

Strengths:

Market Players: Monopoly in terms of Authenticity and Pure Asian Characteristics Location: City Centre, Cardiff, Easy Access and Willingness Service Offerings: Customized Services under One Roof.Price: Value for Money Service as per Customer Needs. Ambience and Hygiene, High End Services

Weakness:

Brand Recognition and Awareness Changing Marketing Trends Climatic Conditions Options Available in terms of Basic Yoga and Massages. Professionals Availability and Sustainability. No Entry Barriers for other Competitors.

SWOT Analysis

Opportunities: Market Need for Health and

Leisure- Growth No Other Similar Competitor Brand Positioning Corporate Social Responsibility Consistent Growth Options TrendsettingThreats: Economic Growth Factor No Entry Barrier for Other

Competitors Negative Response in terms of

Brand Image Financial Creditability Alternative Solutions Available in

Long Term for Customers