CHAPTER III

MARKETING ASPECT

I. MARKET DESCRIPTION
The market projection of the study is based on the surveys conducted within the
vicinity of Valenzuela City. Projection of demand, supply and sales for the first five years
of the operation is based on the different factors like the population growth, market
acceptability, and other aspects. The researchers also considered the competitors that may
affect ENVI Body Massage and Spas service prices. The objectives of the proposed
project is not merely meeting the needs or wants of the customer but as well as to exceed
their expectations. Knowing the customers demand and supplying them with the right
services at reasonable prices will be the key factor to achieve the objectives of the
organization.

II.DEMAND ANALYSIS
A.
Major Users of the Service
Table 13
Major Users of the Service
Gender
Female
Male
TOTAL

Frequency
231
168
399

Percentage
58
42
100

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Table 13 presents that majority of the respondents who availed of and experienced
body massage and spa are female with 58%; while male with 42%. Females are the major
users of the service.

B.

Demand for the Next Five Years

Table 14
Projected Demand for the Next Five Years
Market

Target

Frequency of

Population
361,676
370,429
379,393
388,574
397,977

Visit

Year
2015
2016
2017
2018
2019

Acceptability
68%
68%
68%
68%
68%

38%
38%
38%
38%
38%

Annual Demand
93,457
95,719
98,035
100,408
102,837

Source: 2011 National Census of Valenzuela City (http://www.nsoncr4.ph/2010%20VPH

%20Final_Special%20Release_Valenzuela%New.pdf).

Table 14 presents the projected annual demand of spa and massage services for
the years 2015 to 2019. Market acceptability was obtained based on Table 6 and Figure 6
which shows the respondents who go to a body massage and spa center with the total of
68%.Target population was obtained based on Table 1 with ages 20 to 64 years old. The
Frequency of Visit was obtained based on Table 8 and Figure 8 which shows that
majority of the respondents go to the spa once a week with 38%.The annual demand for
2015 to 2019 is increasing because the target population is likewise increasing annually
by 1.0242% based on the National Census Office of Valenzuela City. In getting the

29

annual demand, Market Acceptability (68%) is multiplied by the Target Population

(361,676) multiplied by Frequency of Visit (38%). The increase in demand shows that the
business will be feasible when the business will be formed and established.

III.

SUPPLY ANALYSIS
A. Competitors Analysis
Table 15
Competitors Analysis
Competitors

Average No. of Customers

No. of Operating Days Per

Infinima
Zen Asia
Healot House

per day
25
12
5

Year
352
352
352

Source: Interview from personnel of Infinima 3 rdflr. R.F. Bldg. Maysan, Valenzuela City (2014);
Zen Asia, 11 Mc Arthur Hi-way, Marulas, Valenzuela City (2014); Healot House, #33 Mac Arthur
Hi-Way, Marulas, Valenzuela City (2014).

Table 15 shows the Average No. of Customers per day of Infinima, Zen Asia and
Healot House. The data were obtained from Mr. Alex Salvador, personnel of Infinima,
who was interviewed last September 3, 2014 by Romark Louis Maniago; from Rebecca
Basas, receptionist of Zen Asia, who was interviewed last September 8, 2014 by Karla
Joy Josafat and Joyce Claire Hernandez; and from Liberty Sevilla, receptionist of Healot
House, who was interviewed last September 9, 2014 by Wilmar Llano (see appendix J, K
and L).

B. Supply for the Next Five Years

30

Table 16
Projected Annual Supply
Competitors
Infinima
Zen Asia
Healot House
Total

2015
9,013
4,326
1,803
15,142

2016
9,231
4,431
1,847
15,509

2017
9,454
4,538
1,892
15,884

2018
9,683
4,648
1,938
16,269

2019
9,917
4,760
1,985
16,662

Source: Interview from personnel of Infinima 3 rdflr. R.F. Bldg. Maysan, Valenzuela City (2014);
Zen Asia, 11 Mc Arthur Hi-way, Marulas, Valenzuela City (2014); Healot House, #33 Mac Arthur
Hi-Way, Marulas, Valenzuela City (2014).

Table 16 shows the Annual Supply for the Next Five (5) Years. To get the annual
supply, Average No. of Customers per Day x No. of Operating Days per Year (Ano, et.al,
2013). For Infinima there is an average of twenty five (25) customers daily multiply by
the no. of operating days per year which is 352 days multiply by annual supply for 2014
of 8,800 multiply by 1.0242 to get the annual supply of 9,013 for 2015. For Zen Asia,
there is an average of twelve (12) customers per day multiply by the no. of operating days
per year which is also 352 multiply by annual supply for 2014 of 4,224 multiply by
1.0242 to get the annual supply of 4,326. And, for Healot House, there is an average five
(5) customers per day multiply by the no. of operating days per year which is also 352
multiply by annual supply for 2014 of 1,760 multiply by 1.0242 to get the annual supply
of 1,803. The annual supply is increasing as years passed by due to increase in annual
population growth of 1.0242 % based on the National Census Office of Valenzuela City.

IV.

DEMAND AND SUPPLY GAP ANALYSIS

Table 17

31

Projected Demand and Supply Gap Analysis for the Next Five Years
Year

Annual

Annual Supply

Gap/Available Market

2015
2016
2017
2018
2019

Demand
93,457
95,719
98,035
100,408
102,837

15,142
15,509
15,884
16,269
16,662

78,315
80,210
82,151
84,139
86,175

Table 17 shows the Projected Demand and Supply Gap Analysis for the next five
(5) years. 78,297was obtained by subtracting the projected Annual Demand to the
projected Annual Supply. The Annual Supply for 2015 is 15,142 less the Annual Demand
for 2015 93,457 of which give the Gap or Available Market of 78,315 that shows the
available market for body massage and spa. This is necessary to determined ENVI
Body Massage and Spas market share. The increasing demand and supply was due to the
increasing population of the target market based on the National Census Office of
Valenzuela City by 1.0242% (National Statistic Office).

V.

COMPETITIVE POSITION
A. Selling Price
The consumer weighs the price against the perceived value of using the

product.Since pricing is a dynamic process, companies must design a pricing structure

that covers all their products and a variety of constantly changing conditions.
Price is the amount of money changed for a product or service or the sum of the
values that consumers exchange for the benefits of having or using the product or service.

32

Competition-Based Pricing include Going-Rate Pricing, where the prices are set
based largely on following competitors prices rather than on company cost or demand.
Firms feel that the going rate represents the collective wisdom of the industry concerning
the price that yields a fair return. They also feel that holding to the going-rate price will
prevent harmful price (Ac-ac,2009).

Table 18
Selling Prices

Services
Swedish Massage
Shiatsu Massage
Thai Massage
Combination Massage
Signature Massage
Foot and Reflexology
Indian head Massage
Black Massage
Ionic Foot Detox
Ear Candling
Stone Massage
Traditional Hilot w/

Infinima
P 280.00
P 280.00
P 350.00
P 350.00
P 320.00

P 320.00
P 380.00
P 400.00

Ventosa Cupping
Foot Scrub
Body Scrub
Hot Shower Bath
Aroma Massage Therapy

Prices
Zen Asia
P 250.00
P 250.00
P 250.00
P 50.00
P 260.00
P 180.00
P 120.00
P 150.00
P 350.00
P 250.00
P 450.00
P 450.00
P 250.00

P 300.00
P 320.00

P 450.00
P 50.00

Healot House
P 250.00
P 250.00

P 350.00
P 125.00

P 150.00
P 400.00
P 280.00

33

A. Competitiveness of Services Offered

Table 19
Competitiveness of Services Offered
Competitors
Infinima

Zen Asia

Healot House

Services Offered
Swedish Massage
Thai Massage
Combination Massage
Signature Massage
Foot and Reflexology
Ionic Foot Detox
Ear Candling
Stone Massage
Traditional Hilot w/ Ventosa Cupping
Body Scrub
Swedish Massage
Shiatsu Massage
Thai Massage
Combination Massage
Zen-Swedish Massage
Foot Reflexology
Indian Head Massage
Black Massage
Ionic Foot Detox
Ear Candling
Stone Massage
Traditional Hilot w/ Ventosa Cupping
Foot Scrub
Signature Massage
Swedish Massage
Shiatsu Massage
Hilot Wellness
Hot Stone Massage
Traditional Hilot
Hand and Foot Reflexology

34

Facial Massage
Express Massage Back

Source: Interview from personnel of Infinima 3 rdflr. R.F. Bldg. Maysan, Valenzuela City (2014);
Zen Asia, 11 Mc Arthur Hi-way, Marulas, Valenzuela City (2014); Healot House, #33 Mac Arthur
Hi-Way, Marulas, Valenzuela City (2014).

Table 18 and 19 shows the competitiveness of the services offeredby the

competitors, Infinima, Zen Asia and Healot House. The data were obtained from Mr. Alex
Salvador, personnel of Infinima, who was interviewed last September 3, 2014 by Romark
Louis Maniago; from Rebecca Basas, receptionist of Zen Asia, who was interviewed last
September 8, 2014 by Karla Joy Josafat and Joyce Claire Hernandez; and from Liberty
Sevilla, receptionist of Healot House, who was interviewed last September 9, 2014 by
Wilmar Llano. (see appendix J,K,L)

A. Promotional Activities
Table 20
Promotional Activities

35

Envi Body
Infinima

Zen Asia

Healot House

Tarpaulin

Tarpaulin

Tarpaulin

Massage and Spa

Tarpaulin

Flyers

Flyers

Flyers

Flyers

Facebook

Facebook

Facebook

Facebook

Source: Interview from personnel of Infinima 3 rdflr. R.F. Bldg. Maysan, Valenzuela City (2014);
Zen Asia, 11 Mc Arthur Hi-way, Marulas, Valenzuela City (2014); Healot House, #33 Mac Arthur
Hi-Way, Marulas, Valenzuela City (2014).

VI.

PROPOSED MARKETING PROGRAM

A. Description of Proposed Business
ENVI Body Massage and Spa will introduce and promote affordable spa

wellness system to every customer. Not just relaxation but also as means of prevention
and therapy for healthier body, mind and spirit.
Payment will be on cash basis.

B. Description of the Proposed Target Market

1. GEORAPHIC
o Location
:#6 Villa Teresa Vill.,
Sampaguita St., Brgy.,
Marulas,Valenzuela City
o Climate
: Dry
o Region
: NCR
o City
: Valenzuela City
o Density of the Area
: Urban

36

2. DEMOGRAPHIC
o Age
o Gender

: 20 - 64
: Male and Female

C. Proposed Prices
Table 21
Services Offered
Going Rates Pricing
Prices
Services

Swedish Massage

Infinima
P 280.00

Zenasia
P 250.00

Healot
House
P 250.00

Envi Body
Massage
and Spa
P 239.99

37

Shiatsu Massage

P 250.00

P 250.00

P 239.99

Thai Massage

P 280.00

P 250.00

P 239.99

Combination Massage

P 350.00

P 50.00

P 239.99

Signature Massage

P 350.00

P 260.00

P 350.00

P 259.99

Foot and Reflexology

P 320.00

P 180.00

P 125.00

P 169.99

Indian Head Massage

P 120.00

P 109.99

Black Massage

P 150.00

P 139.99

Ionic Foot Detox

P 350.00

P 339.99

Ear Candling

P 320.00

P 250.00

P 150.00

P 239.99

Stone Massage

P 380.00

P 450.00

P 400.00

P 369.99

P 400.00

P 450.00

P 280.00

P 389.99

Traditional Hilot w/ Ventosa

Cupping
Foot Scrub
Body Scrub

P 300.00

Hot Shower Bath

Aroma Massage Therapy

P 250.00

P 239.99

P 450.00

P 289.99

P 50.00

P 49.99

P 320.00

P 309.99

Table 21 shows the Going- Rate Pricing of the existing competitors body
massage and spa establishments, the business owners decided to set the price of the
services based on Competition-Based Pricing, specifically the Going- Rate Pricing. The
prices are low but competitive enough to meet the business expected profit by rendering
high quality of services to its customers.

D. Proposed Promotional Activities

1. Posters/ Tarpaulin
Figure 13
ENVI Poster

38

Figure 13 displays the poster of the ENVI. The researchers decided to use
poster/tarpaulin as the main form of advertisement to reach our customers. Poster will be
placed in the vicinity of Valenzuela City, where it can be easily seen especially in the
main road like Mac Arthur Highway.
Two (2) posters will be produced which are good for three (3) months. The
durability of tarpaulin will only last for three (3) months, since the color and design of the
tarpaulin will be faded. The computation would be:
Number of pieces x Unit Prices x Number of times per year=Cost
2 x 350 x 4 = Php. 2,800.00
Source: Trillons Tarpaulin Printing Brochure Price List, Samson
Road,Caloocan City, July 2014.

39

2. Website / Internet
Figure 14
ENVI Facebook Page

Figure 14 displays the facebook page of ENVI Body Massage and Spa, created
by one of the business owners, as one of the advertisement. The proponents will be using
free website in order to reach wider range of possible customers. It will also provide good
communication relationship and customers will be able to give comments and
suggestions for improvements and other concerns.
3. Flyers
Figure 15

40

Figure 15 displays the flyers of ENVI. The researchers will also use flyers as a
means of advertisement because it is one of the cheapest ways of promoting the service
yet the most effective way as a promotional strategy. The body massage and spa will
produce 100 flyers per week. These flyers will be distributed once a week or four (4)
times a month because it can be easily brought to other places. The computation would
be:
Number of pieces x Unit Price x Number of times per month x Number of
months of Distribution = Cost
100 x 0.25 x 4 x 3 = Php. 300.00
Source: Trillons Tarpaulin Printing Brochure Price List, Samson Road, Caloocan
City, July 2014.
4. Open House

41

Sure way to get an audience of potential clients is to host an open house. Tour the
potential clients in the spa to meet the staff and take a peek at the menu services. Serve
like

refreshments

and

make

sure to

send

each

attendee

home

with

the

establishmentsbusiness card, brochure and a small thank you gift (coupon, discount card
or sample of a product) and great impression of the business.

5. Additional Promotional marketing activities/strategies:

Coupon
-Price Discounts by giving 20% discount in all body massage and spaservices.
- Get a free service on any massage service for a family, friends or member book
for an appointment. Customers will spread the spa by word of mouth. ENVI
will just make sure that it keep tracks of its records on how many coupons are
already redeemed and the increase in appointments.

FIGURE 16
DISCOUNT COUPON

42

Contest

Put together a special contest in the spa.

Promotional Post Cards/Gift Certificates

FIGURE 17
PROMOTIONAL POST CARDS

FIGURE 18
GIFT CERTIFICATE

43

Promo- Holiday Season

- 25% off services for new clients
Special events (especially during holiday seasons, ie., family reunions that need

massage and spa services).

Special Discounts
- 10% discount for the next massage and spa service.
- Free massage on the fifth visit (repeat customer).
- Referral Incentive bring a friend/family member get a P50.00 discount on any
-

spa/massage service.
25% off on customer`s birthday for any service.
Free P100.00 gift certificate for a P500.00 worth of massage and spa service.

FIGURE 19
REFERAL INCENTIVE

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VII.

PROJECTED SERVICE
Table 22
Projected Services that will be Rendered for the Next Five (5) Years
Services
Offered

Percentag
e of
Availment

Annual
Minutes
of
Operatio
n

Average
of service
rendered

Minute
s Spent

Interva
l

Number of
Service
Rendered
Annually

Foot Spa
Hilot with
Ventosa

36%
20%

443,520
443,520

159,667.2
88,704

30 mins.
60 mins.

10 mins.
10 mins.

3,991.68
1,267.2

Massage

44%

443,520

195,148.8

60 mins.

10 mins.

2,787.84

Total

100%

443,520.00

8,046.72

Table 22shows theProjected Services that will be Rendered for the Next
Five (5) Years. Annual Minutes refers to the total duration of operation,
For Foot Spa/Hilot with Ventosa/Massage
Formula:
Annual Minutes of

45

Operation (AMO)
day/year

=operating time per day x total no. of therapist x operating

= 420 x 3 x 352
=443,520 for Foot Spa/Hilot with Ventosa/Massage

To get the total Number of Service Rendered Annually, for Foot Spa, Hilot with Ventosa
and Massage:
Formula:
Number of Service
Rendered Annually

Average Service Rendered

Minutes Spent for each Service + Interval

159,667.2
30+10

3,991.68

88,704
60+10

1,267.20

195,148.80
60+10

2,787.84

For Foot Spa:

No. of Service Rendered Annually

For Hilot with Ventosa:

No. of Service Rendered Annually

For Massage:

No. of Service Rendered Annually

46

47

Table 23 shows the Annual Projected Sales of the business in a given year. To get
the Annual Projected Sales the formula is:
Annual Projected Sales

= Annual Minutes of Operation x Percentage of Availment

of the Service x Selling Price of the Service No. of
Minutes of Interval

For Foot Spa:

=

4433520 x 36% x 299

40

1,193,512.32

4433520 x 20% x 389.99

40

494,195.33

4433520 x 44% x 229.99

40

641,175.32

For Hilot with Ventosa:

For Massage:

The Projected Sales Annually will increase by 10% per year.

48

VIII. SWOT ANALYSIS

The company will get a clear picture of what it has and what it lacks, what to
expect and what not to expect. This leads to very powerful tool in marketing (Diola,
2009).
Strengths
Competitively priced
Imported / organic spa products
Ambiance
Hospitality of employees
Wide variety of services of therapist
Best value for time and money
Customer satisfaction and delight
Maximized service potential
Weakness
Limited market share since ENVI Body Massage and Spa is new in this
kind of business.
High budget investments.

Opportunities
Wealth concerns and stress within the minds of customers which is
gradually increasing.

49

High growth rate as spas are connected to other industries such as food
and herbal.
Medical tourism looking for alternative health care.

Threats
The increase number of competitors who will engaged in the same kind of
business

SUMMARY OF MARKETING ASPECT

This aspect presents the five (5) year demand and supply analysis of the proposed
business. The proposed business will engage in body massage and spa services. The
Marketing Aspect provides a mechanism on how to advertise and promote the business
services effectively and efficiently with the use of different advertising medium like, i.e.,

50

posting tarpaulin, flyers, the utilization of different social networking sites, which are
broader in scope and having an open house which includes coupons, contests, gift
certificates / promotional postcards and promo for holiday season.
The Marketing Aspect also presents the competitive position of the business. It
shows the competitors prices on their services and their promotional activities. This
aspect also shows the projected sales for the next five (5) years.
It also shows the strength of the business that can be used as an advantage or
weaknesses that should be dealt with and turn it into strength and opportunities that may
be used to help the business development and threats to the business be prevented.