Arellano University Pag - asa Street Caniogan, Pasig City

By: Val Luis G. dela Cruz Jannah Faye E. Hugo Ma. Mirasol Andrea A. Malilay

Submitted to; Ms. Katherine Guevarra

October 22, 2012

I. Background The spa market is one of the fastest growing leisure sectors, where societal trends and aspirations find instant reflection in the developments on both the demand and supply side. The market is very fragmented, each segment catering for different customer needs, which continuously change in line with social and lifestyle changes. It is becoming increasingly clear that although the spa industry is growing dramatically, there is an increasingly wide divide between the niche, specialist, luxury market and the mass market with lower-cost, functional facilities for faster turnaround, which also like to call themselves spas. . As always, within a rapidly expanding market, there is a danger that the word 'spa' will become hyped and over-used, but the sophisticated and discerning spa-goers are already very well informed and will research carefully the facilities, treatments and services on offer before spending their money. The search for improved well-being is more and more the driving force behind the spa clients visit.

II. Introduction

Possible locations: Ortigas Center, Pasig City/Bonifacio High Street, Taguig City Operating Time: Tranquil Water Spa is open 7 days a week. Monday - Friday, we are open from 9 AM - 6 PM. Saturdays and Sundays we are open 24 hours. Tranquil Water Spa is a resort-type spa that offers traditional massage services through the use of hydrotherapy systems that utilize water jets in order to provide water therapy to its guests. It is a spacious spa that has 20 unique and fully automated Ultrasonic Massage System equipped with therapeutic aquatic jets that helps customers with different health benefits which depends on the type of massage and machine they will use. Some water resorts only cater aqua thrills, adventure, and fun while Tranquil Water Spa offers massage services. Tranquil Water Spa includes day spas, fitness clubs and gyms, and water resorts as their competitor. Examples are The Spa, Fitness First, and Splash Island. Compared to fitness clubs and gyms, we focus on developing health and fitness. We have different exercise studios, machines and equipment, and personal training. Nevertheless, Tranquil Water Spa focuses on developing overall well-being and relaxation through a variety of services.

III. Management and Operational Aspect Manpower 1. Spa Director Primary responsibility is to provide leadership, direction and supervision of staff in the daily operations of the Spa, including, but not limited to, retail, salon, yoga/fitness programs, and membership program. The Spa Director is to oversee the coordination of all guests requests, be directly involved in budgeting, forecasting, payroll and scheduling as well as product inventory and ordering. Requirements: College degree or equivalent experience Accounting and budgeting knowledge Strong communication skills Proven leadership qualities Minimum 3 years of experience in Spa management (at least one year in a Director level position)

2. Assistant Spa Director Primary responsibility is to directly assist the Spa Director in providing leadership, direction and supervision of staff in the daily operations of the Spa. This includes having the knowledge to Coordinate guest relations as well as answer all inquiries pertaining to the spa. The Assistant Manager will assist in budgeting, forecasting, payroll and scheduling as well as product inventory and ordering. Our emphasis is based on caring and attentive employees who embrace the Companys Mission/Vision Statement and Core Values.

3. Operation Supervisor One who will supervise the development and implementation of training programs within the working unit supervised. Provides supervision and direction to subordinate staff and coordinates work flow within the major work unit, including distributing work,

disseminating information, assigning staff to cover for absences, providing technical assistance, answering questions, and resolving problems within the work unit supervised.

4. Receptionist A receptionist is an employee taking an office/administrative support position. The work is usually performed in a waiting area such as a lobby or office desk of

an organization or business. Business duties of a receptionist may include answering visitors' inquiries about a company and its products or services, directing visitors to their destinations, sorting and handing out mail, answering incoming calls on multiline telephones .

5. Spa Attendant The Spa Attendant has overall responsibility for monitoring and cleaning the spa to include but not limited to, reception area, waiting areas, treatment rooms, storage rooms and prep area. Incumbent must utilize available resources to provide excellent guest satisfaction. The Spa Attendant will meet or exceed productivity and cleanliness standards, taking corrective action as needed to ensure standards are maintained. Work hours/days vary as dictated by business needs, and may include weekends and holidays. Requirements: Extremely detail oriented. Possess excellent communication skills. Friendly, people-oriented, customer driven individual Ability to multi-task and prioritize effectively High school diploma or equivalent education required.

6. Treatment Manager Investigates, selects, and develops products for an organization, performing the activities of management. A product manager considers numerous factors such as intended demographic, the products offered by the competition, and how well the product fits with the company's business model. Generally, a product manager manages one or more tangible products. However, the term may be used to describe a person who manages intangible products, such as music, information, and services.

7. Massage Therapist The practice of massage therapy is the assessment of the soft tissue and joints of the body and the treatment and prevention of physical dysfunction and pain of the soft tissue and joints by manipulation to develop, maintain, rehabilitate or augment physical function, or relieve pain.

8. Esthetician One who administers professional facials, waxing services and an array of body treatments to the clients. They must possess a thorough knowledge of the skin, have excellent facial massage and skin extraction techniques, possess excellent cleanliness and sanitation skills and be willing learn spa specific facial treatment offerings. They must possess excellent communication skills and be able to learn the product and service knowledge necessary to effectively provide wellness and beauty solutions to meet the needs of clients. They must hold and maintain a current state license. Requirements:

maintain appropriate certification and licensure possess excellent communication skills be proficient in various skin care treatment techniques and modalities have the ability to provide legible communication have knowledge of physiology Be familiar with standard concepts, practices, and procedures within a particular field

Workflow/Guest Flow Tranquil Water Spa operates everyday 7days a week. We allow reservations with the help of our 24/7 customer service and through internet. We make this kind of reservation to follow our leading competitors and to gain more clients. Easy to reach and to become a leading water and recreation spa is our main goal.

Guest Flow To relax, spa guests need to be comfortable. Guests cannot realize relaxing moments without comfortable experiences. To achieve an atmosphere of wellbeing and relaxation, guests need to be able to move through the spas touch points smoothly without long walks, searches, or waiting. Each touch point from Entrance, Check In, Changing, Pre Treatment Relaxation and Therapist Greeting to Treatment, Post Treatment Relaxation, Changing and Check out Departure should naturally flow from one space to the next.

Staff Flow Most important today than ever before, guests want high value and their grading system just got harder. The essence of the spa experience is the enjoyment and comfort of being cared for by spa staff who can deliver superior and timely service. Long after the glow of the massage or the facial has faded, guests will remember how they were treated. Economically, spas are working smarter with tighter reins on staffing levels. So too, must the facility work smarter. The back of house (BOH) often receives less attention in a planning process. Work on BOH design and placement should be a primary focus. We can make the spas hospitality better by strategically planning BOH spaces so staff can comfortably and effectively perform their jobs. Spa attendants, spa reception staff and the spas service providers all influence the guest experience touch points. Staff should be able to quickly access what they need to service the guest so guests at each touch point dont wait or are cut short of service. Employees are the main amenity of the spa. When we plan their spaces well and treat their work spaces with dignity, we have a

happier staff and that means better service to guests. Efficiency and flow of BOH spaces is high on the list of benefits for the spas owner.

Applying Managing Queues The first step is to train all of our employees on the importance of exceptional customer service. Without customers there is no business and without repeat customers there's no potential for growth or even sustainability. Our employees should be trained to greet all of the customers with a smile and a helpful attitude. There's nothing worse than waiting in line only to be serviced by a smug employee. Once our staffs are trained, we should begin gathering data on the nature of our demand and our queues. By understanding when our queues form most often, we can create a staffing plan that meets this demand. We may find most of our customers come into our company during lunchtime. If this is the case, we would want to stagger our employee lunch breaks or have break times before or after the peak period. Efforts should be made to reduce the cycle time per customer. Cycle time can be viewed in two different ways. First how long does it take for a customer to walk through the door, wait in line and then complete the transaction. The second way to view customer cycle time is to take a look at the amount of time it takes to service a customer once they've reached the teller. By reducing this time, the overall cycle time will be reduced. Standardizing our employees work will help move the queue along as well. We will make sure to understand the nature of their work and take measures to provide them with everything possible that will make the work more productive. The best way to understand the employees' jobs and their needs is to ask our employees. Incorporate them in our efforts. They are the experts at doing their job and they will have suggestions to improve the situation. Create problem logs to help identify issues as well. Anytime there is an issue, the employee should jot it down and solutions can be sought.

Set realistic goals for cycle time and queue length. By setting realistic targets and seeking to constantly improve we can reduce our queues and better manage our customer service. Remember, customers are everything and they don't like waiting in line. We will make reducing queues a priority in our company.

Strategies to apply Effective queue management means happier, relaxed customers and greater staff productivity and that is important to us. To ensure our customers satisfaction regarding our queue management specifically during their waiting time, Tranquil Water Spa will be providing some entertainment things such as the use of latest magazines and newspapers, information boards and posters, sound systems, and of course providing a television at the lounge or waiting areas. Whenever problem will arise, our staff will definitely handle the customers needs and explain what is needed to be explained in a subtle way as soon as possible. We will ensure that our service staff will pay 100% attention to our customers and services. Well also be having Queuing Kiosk in our spa. Using a Queuing Kiosk in our waiting room means that the kiosk takes all the strain of receiving customers (either pre-booked or otherwise) and orders the visitors in order of appointment or order of arrival. The waiting room queuing software kiosk also lets visitors know when it is their turn to be served. We will use the single-channel, multiphase system. Some techniques that will also be helpful when having queuing problems are to treat the customers as individuals, treat them as we would like to be treated ourselves, treat them openly and honestly, and communicate with them as soon as possible.

IV. Technical Aspect Machines and Equipment Jacuzzi - are the most complete and versatile synthesis of shared well-being. Three exclusive lines are available: Italian Design, Premium and Professional offer a great choice based on the space available, the type of use and aesthetic preferences.

Massage Shower - A cosy space full of comforts. Many functions: hydro massage for the back, the lumbar area and legs, cervical cascade. Electronic control panel, Steam bath and aromatherapy function.

Sauna and Hammam - is a wellness oasis with a prestigious design, a new concept that combines a sauna, a hammam and an emotional shower in a single, moderately-sized space.

Water Tank - a container for storing water.

Hot Tubs - Large tub or small pool full of heated water and used for soaking, relaxation, massage, or hydrotherapy. In most cases, they have jets for massage purposes.

Electric Water Heater - A tank for heating and storing hot water for domestic use.

Hydro massage Bathtubs - Represents a hydro massage and back massage with micro rotating jets. Overflow hidden under the rim, ergonomic headrest, underwater spotlight, perimeter lighting, remote control.

Massage Tables - used by massage therapists to position the client to receive a massage. Most are manufactured with client comfort and

therapist ergonomics in mind. A typical table has an easily cleaned, heavily padded surface, and a face cradle that allows the client to breathe easily while lying face down.

Floor Plan

Safety Precautionary Measures Water balance and sanitizer has to be maintained: Make it a point to ensure that the water is healthy and free of any form of harmful microorganisms before you actually enter a spa. This can be done by regularly shocking the water and the maintenance of the total alkalinity and pH of water for controlling bacteria in the water.

Consumption of Alcohol and Drugs in the spa: It is dangerous taking alcohol and drugs when in the spa as the hot water tends to amplify the effects of the alcohol and drugs. This may lead to dangerous consequences. So if you take drugs, consult your doctor for directions on the right use of prescription drugs in the spa. Instead of taking alcohol, many people prefer drinking a chilled soft drink, mineral water or juice when relaxing in the spa. Precautions for Children and Infants: If children and infants are to enter into a spa, they have to be introduced slowly so that they have time to adjust to the change of temperature without any fear or discomfort. Children should never be left unattended in hot tubs, spas or pools. A few minutes in even a shallow pool or spa is sufficient for a drowning hazard to take place. Remember, prevention is always better than cure.

Pregnancy and spas: It is not at all advisable for pregnant women to enter a hot tub or spa without a consultation with their physician.

Dangers of hair entanglement: It is possible for a drowning risk to occur with a bather's hair getting entangled in a drain cover, when hair and water draws down the drain. This is why children, or anyone for that matter, should not play with their heads placed underwater in a spa. About the Power Cut-off Switch: It is important to install a manual disconnect device for the spa at a minimum of 5 ft. and a maximum of 15 ft. from the spa, for your safety. Also make it a point to check local codes.

Electrical Devices in the spa: For safety reasons, corded phones, TVs, hair dryers, radios and other electrical devices would not be handled when in spas or pools or when in contact with water with wet hands or legs. Make sure that all electrical outlets are located at a safe distance from the spa or hot tub, following local building codes. Electrical devices should be kept away from the water, and never on the edge of the spa. This is because if an electrical appliance falls into the water, or is touched by a wet person, possible electrocution results.

Importance of Safety Rails & Steps: Spa steps and handrails are required for help when getting in and out of hot tubs with wet and slippery feet. With a towel bar, you can ensure that dry towels are available for feet and hands. For added safety, you could have a non-skid surface around the parameter of the spa. To avoid accidents with broken glass, snacks and drinks can be served in plastic containers when in the spa. There should be adequate lighting at ground level, at night time.

Benefits of a Tub Together: Adults soaking together are always a wiser and more entertaining option in a spa. This is because with one or more partners, you are sure someone is there if you have a problem in the spa. Of course, children should always be accompanied when in the spa.

V. Financial Aspect Start-up Capital: Twenty Million Pesos (P20, 000,000.00) NO. OF POSITIONS Spa Director Assistant Spa Director Operation Supervisor Receptionist Spa Attendant Treatment Manager Massage Therapist Esthetician SALARIES 25,000.00 20,000.00 18,000.00 15,000.00 13,000.00 20,000.00 13,000.00 13,000.00 EMPLOYEES 1 1 2 3 6 1 6 3 TOTAL: TOTAL 25,000.00 20,000.00 36,000.00 45,000.00 78,000.00 20,000.00 78,000.00 39,000.00 341,000.00

MACHINES & EQUIPMENT Jacuzzi Massage Shower Sauna and Hammam Water Tank Hot Tubs Electric Water Heater Hydro massage Bathtubs Massage Tables Other Tools & Equipment

QUANTITY 3 24 6 2 3 2 6 12 1

COST 320,000 10,500 27,960 365,000 235,790 23,999 63,000 4,620

TOTAL 960, 000.00 252, 000.00 167, 760.00 730, 000.00 707, 370.00 47, 998.00 378, 000.00 55, 440.00 350, 000.00

TOTAL:

3, 648, 568.00

OTHER EXPENSES: FACILITY Landscaping In House Maintenance Insurance Permits Spa Maintenance Outsourced Maintenance Total: COST 300,000 1,000,000 500,000 100,000 200,000 100,000 2,200,000

UTILITIES Water Electric Gas Cable Waste Disposal Sewage Total:

COST 2,000,000 1,500,000 500,000 100,000 100,000 100,000 4,300,000

OTHER SUPPLIES Food Beverages Dining Supplies Cleaning Supplies Office Supplies Fitness Equipment Spa Supplies Total:

COST 200,000 200,000 50,000 50,000 50,000 150,000 500,000 1,200,000

MARKETING Magazine Ads TV Ads Blimps Billboards Posters Flyers Website Brochures Radio Ads Sponsorships Total:

COST 300,000 400,000 100,000 200,000 100,000 100,000 100,000 200,000 200,000 25,000 1,725,000

CONTINGENCY Public Safety Liability Insurance Natural Disaster Fund Emergency Fund Unseen Costs Total:

COST 50,000 100,000 100,000 100,000 100,000 450,000

MEMBERSHIP Fitness Membership Spa Membership Total:

COST 500,000 500,000 1,000,000

ALL EXPENSES (summarized) Salaries Machines & Equipment Facility Utilities Marketing Other Supplies Contingency Membership 341, 000.00 3, 648, 568.00 2, 200, 000.00 4, 300, 000.00 1, 725, 000.00 1, 200, 000.00 450, 000.00 1, 000, 000.00

OVERALL TOTAL:

P14, 864, 568.00

VI. Marketing Aspect Water spa is a new attraction in terms of pampering ourselves. Water spa is not just any ordinary resort or spa offering in the metro as of today. We develop, enhance and level up the resort into a more relaxing and enjoyable place. Massage, hydroelectric swimming pools, Jacuzzis, massage shower and sauna bath to name few is the new addition in water spa world. Top of the line machines and equipment put all together in one special place Tranquil Water Spa.

We will write a press release about our new spa and create a press kit and send to important local and national media. We will be calling the editors to see how they can help them with your expertise. Plan the event. We come up with a party concept that would communicate what we are up to. More important editors may prefer a one on one visit. It is good to know the media and inviting them to our spa is a good way to start to know them. I think we are only new, thats why we should take advantage of that and get all the free publicity that you can.

Marketing strategies to be used: Business Incentive Firms: Contact companies who offer their Fortune 500 clients spa stays as an incentive for sales achievement and management perks. Direct Contact and Business Presentation: Large companies could be contacted and presentations made to senior executives responsible for creating programs for their employees Direct Mail Program: Purchase mailing list based on defined demographics and leads developed through advertising and networking with related industries. Media/Celebrity Trade-Out: Offer frequent trades with editors and magazine writers in exchange for products, or spa treatments. TV & Radio Reviews: Offer complimentary massages to staff and explain treatments and services. Referral and Customer Loyalty Programs: Offer special discounts on future spa visits for each new client that is referred. A repeat guest can earn a free spa treatment. Press Kit & Marketing Materials: Prepare a press kit and press releases during the pre-opening phase of the spa. Corporate travel incentive firms, fitness clubs, private industry, concierge groups, hotels are mailed in response to prospective guest inquiries. Information on location, services, products, spas, etc. Press releases, media campaign, collateral material layout and production schedules. General Market Brochure: Feature the specific services and products offered. Logo and identity graphics should also include letterhead, envelopes, business cards, reservation package press kit insets, newsletters, special events announcements, etc. Newsletter: Newsletter which will feature upcoming events promotions, specials, etc.

Follow-up Telephone Calls: Each client of the spa will receive a telephone call shortly after their visit to the spa. Client Profile Records: Computer data sheets on all clients and prospective clients for the spa will be maintained.