Evoe Spring Spa: A Positioning Dilemma (2014) PDF
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Ashoka University
2014
Ashita Aggarwal Sharma, Renuka Kamath, Sunil Rao
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Summary
This case study explores the positioning of Evoe Spring Spa in the Indian spa market. The authors examine consumer research and consumer preferences related to spas in a rapidly developing market. This document also discusses the factors influencing a choice of positioning strategy in India and how the wellness market is evolving.
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W13570 EVOE SPRING SPA: A POSITIONING DILEMMA1 Ashita Aggarwal Sharma, Renuka Kamath and Sunil Rao wrote this case solely to provide material for clas...
W13570 EVOE SPRING SPA: A POSITIONING DILEMMA1 Ashita Aggarwal Sharma, Renuka Kamath and Sunil Rao wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) [email protected]; www.iveycases.com. Copyright © 2014, Richard Ivey School of Business Foundation Version: 2014-02-27 “We are running out of time! We can go on like this forever but a decision has to be made,” said Gopal Raman, echoing the feelings of his colleagues, Anil Kumar and Sumit Gupta, at their Mumbai office. It was August 2010, and the three co-founders needed to decide on the positioning of Evoe Spring Spa (Evoe) in the relatively nascent Indian spa market. Evoe needed a differentiated and clear positioning to ensure it would be their target consumers’ first choice and would remain so after their first experience at Evoe. Although Raman and his colleagues had done great deal of research and discussion over the past few months, much still remained to be done before Evoe’s planned launch on January 1, 2011. The most critical task was to choose the best possible positioning for Evoe from among three equally viable options generated from consumer research. GLOBAL WELLNESS MARKET AND SPAS Globally, consumers had been showing a growing interest in being healthy in body, mind and spirit, aptly described as a general state of wellness. Yet, the concept of wellness (sometimes described as an overall feeling of well-being) was not new; it could be traced to the ancient civilizations of Greece, Rome, Asia and Europe. Beliefs about wellness had undergone changes over the years. The larger discussion on wellness and its evolution to the current placement took various approaches. One innovative approach was described by Dr. John Travis’s Illness-Wellness continuum2 (see Exhibit 1). The continuum illustrated the many states of health between illness and wellness — moving from, at one end, a reactive approach involving medical treatment for illness to, at the other end, a proactive approach aimed at an augmented quality of life. 1 Adjudged best case (1st prize winning case) in the Indian School of Business (ISB) Ivey Global 2013 case competition, held in partnership with the Ivey Business School, the Association of Indian Management Schools and the European Foundation for Management Development (EFMD). 2 John W. Travis and Regina Sara Ryan, Wellness Workbook: How to Achieve Enduring Health and Vitality, 3rd edition, Celestial Arts, 2004, www.wellnessworkbook.com, accessed May 9, 2013. This document is authorized for use only in Sushil Jhangiani's Monsoon 2024 | ENT-1011 Fundamentals of Marketing at Ashoka University from Aug 2024 to Feb 2025. Page 2 9B13A051 Embedded in this Illness-Wellness continuums were broad consumer segments, ranging from those who looked at health solutions as a reaction to sickness, to those who were moderately wellness-inclined, to those who approached well-being proactively. Around the world, an increasing consciousness about the health issues associated with old age and a general move toward natural solutions and products had led to an expansion of the continuum, ensuring a growing market for wellness. Outcomes of numerous consumer studies had shown that the mounting inclination toward spas was arising from a more proactive approach to well-being. In a report commissioned by Global Spa Summit,3 SRI (Stanford Research Institute) International had adapted Travis’s Illness-Wellness continuum to identify wellness opportunities (see Exhibit 2), where the position of the spa industry was clearly defined in relation to other wellness services. Within the broad spa industry, including such sectors as complementary and alternative medicines, personalized healthcare, medical tourism, nutrition and weight loss, fitness and mind-body exercise, workplace wellness and many others, spas fell at the extreme end of the continuum toward proactive, integrated wellness. However, medical spas tended to overlap with the long-established, treatment-oriented approach. Spas battled for space in the wellness market, with differentiation based on the benefits and design of the services they offered. The push was constantly toward making consumers consider spas as contributing to their personal wellness on a holistic level, while reinforcing their beliefs in traditional care. Over time, the definition of a spa, which originally referred to a mineral spring or water treatment with therapeutic properties, had expanded to include non-water-based therapies, such as massages, facials, body polishes and body wraps. The SRI report had conservatively estimated the global wellness market at approximately US$2 trillion with approximately “289 million wellness consumers in the world’s 30 most industrialized and wealthiest countries.” The report pegged the international spa industry at approximately US$60 billion. INDIAN WELLNESS MARKET AND SPA CONSUMERS Historically, Indians had shown an abiding interest in health and wellness practices. Their traditional and well-respected systems of Ayurveda4 and yoga focused on physical and mental wellness. In recent times, however, Indian consumers had consciously and proactively moved toward a preventive approach to health and wellness. India’s changing social context and its increasingly hectic lifestyles had given rise to stress-related problems, which had prompted a shift toward conscious self-care to ensure a healthy, active and extended life. This shift had provided a great opportunity for the spa industry. Another change was that health and wellness had not remained the domain of women (as it had traditionally been); instead, men were increasingly looking at healthy living as an approach to a better physical state. However, this phenomenon was still largely confined to urban cities (population of more than six million) and upcoming cities (population approaching six million). Further, consumers continued to be price-conscious about their purchases, though many were now time-starved and willing to pay a premium for convenience. In 2010, the wellness market in India reached INR490 billion,5 a growth of 20 per cent over the previous year.6 The wellness segment included beauty care (e.g., salons and beauty parlours), curative and 3 Global Spa Summit, Spas and the Global Wellness Market: Synergies and Opportunities, SRI International, May 2010, www.sri.com/sites/default/files/publications/gss_sri_spasandwellnessreport_rev_82010.pdf, accessed May 9, 2013. 4 Form of alternative medicine based on traditional (Indian) natural and holistic science of healing. 5 INR=Indian Rupee (For the purposes of this case, INR50 = US$1.) 6 Global Spa Summit, Spas and the Global Wellness Market: Synergies and Opportunities, SRI International, May 2010, www.sri.com/sites/default/files/publications/gss_sri_spasandwellnessreport_rev_82010.pdf, accessed May 9, 2013. This document is authorized for use only in Sushil Jhangiani's Monsoon 2024 | ENT-1011 Fundamentals of Marketing at Ashoka University from Aug 2024 to Feb 2025. Page 3 9B13A051 preventive therapies (e.g., wellness foods, fitness services and dietary supplements) and physical enhancement (e.g., cosmetic treatments, slimming products and services). The spa segment, estimated at INR4 billion to 5 billion, was classified as belonging to both the curative and preventive solutions and the physical enhancement categories (including beauty). The wellness industry was expected to grow at a compound annual growth rate (CAGR) of approximately 20 per cent over the next three years and to reach INR875 billion by 2013. Also, since 2005, Indian consumers’ gross disposable income per household had almost doubled to INR0.3 million. Contributing to the phenomenal rise of the wellness sector were demographic changes in age and income, the growing trend toward nuclear families, evolving consumer lifestyles and an affinity toward experimenting with brands. Also, a growing number of working women were striving to balance their home and work responsibilities. Indian consumers were also becoming more image-conscious and amenable to peer pressure, resulting in a shift of focus toward personal appearance and the need to stay fit and feel good. Health awareness had increased due to greater media penetration and coverage on wellness-related topics. Since time was a constraint for most consumers, many were inclined to opt for convenience when obtaining health and beauty benefits. As a result, in India, most spas were set up in malls and high-end public spaces, so that consumers could enjoy a quick massage on the go. Competition was high in the wellness market, but the market was highly fragmented in terms of its wide range of beauty products and related offerings. However, the spa space in India was nascent in comparison with international markets. Despite the increase in day spas7 for consumers wanting to break away from the monotony of daily life and to de-stress in the shortest possible time, destination spas8 were fast becoming an option for those who wanted (and could afford) a longer break. The premium consumer segment also viewed hotel and resort spas as good options. While a variety of treatment-based products enjoyed popularity, a perceptible preference was noted for natural and organic products. Consumers had a strong connection with traditional products and services, such as Ayurveda, yoga and homeopathy, which were well-established and trusted. Nevertheless, attitudes were changing; for example, whereas Ayurvedic massages were still popular, also gaining in popularity were Thai, Swedish and other types of body massages. Hence, consumer acceptance was rapidly increasing for the concept of fusion spas that offered a mix of traditional Indian and Western therapies. As the wellness industry grew, most players in the spa segment were increasingly turning to smaller, upcoming cities with growing incomes and populations, but these markets required both a significant investment and long-term focus. Further, new age Indian consumers aspired to be associated with a brand, as established brands evoked trust and familiarity and resulted in loyalty. For all these reasons, players in the Indian market needed to invest in communicating their proposition to remain active in the minds of consumers.9 EVOE SPRING SPA The idea for Evoe Spring Spa (Evoe), a first-generation entrepreneurial venture aimed at de-stressing the Indian consumer at an affordable price, had come from Raman, Kumar and Gupta’s own experiences of their stressful corporate jobs and their search for relief. As employees of multinational corporations (MNCs), they had been required to travel frequently to different parts of the country. While travelling, 7 Day spas provide a variety of services, including elaborate treatments that can stretch across an entire day. 8 Destination spas are typically large setups in remote locations that provide residential facilities and are often located near water sources or hot springs. They are seen as an exotic location for a vacation while undergoing a comprehensive therapy. Services tend to be elaborate, typically including specially designed cuisine, fitness regimes, spa services and other body treatments. 9 Pricewaterhouse Coopers, Winds of Change: The Wellness Consumer, 2012, www.silvergroup.asia/wp- content/uploads/2012/09/rc-wellness-report-20120829.pdf, accessed May 4, 2013. This document is authorized for use only in Sushil Jhangiani's Monsoon 2024 | ENT-1011 Fundamentals of Marketing at Ashoka University from Aug 2024 to Feb 2025. Page 4 9B13A051 they had stayed at plush hotels, and, at the end of a hard day’s work, they longed for a relaxing massage at their hotel’s spa. However, despite their well-paying jobs, they couldn’t afford the exorbitant prices charged for regular massages at these hotel spas. As the three colleagues discussed their common experiences, they realized that other working professionals like themselves also felt the need to de-stress, but did not consider using spa services because of their prohibitive prices. Other barriers were also in play, including the perception of spas as beauty parlours or as massage parlours, which often led to negative connotations. The threesome’s frequent discussions and strong views on this subject inspired them to start a chain of affordable and accessible spas. The basic premise for their venture was Indians’ increasing need to de-stress and their belief that spa visits could become part of consumers’ lifestyles if spa services could be made more affordable and could address cultural barriers. For their fledgling venture, they chose the name Evoe, an exclamation invoking Dionysus, the Greek god of revelry. RESEARCHING AND ANALYZING THE INDIAN SPA OPPORTUNITY Raman had been poring over industry reports and data for several months, ever since the seed for Evoe had been planted. “This is going to be challenging,” he said to himself, thinking about the journey ahead. Based on the premise that Indian workers’ stress levels were rising, Raman called a meeting with Kumar and Gupta to identify potential consumers for their business. Considering that India was a nascent market, they were unsure whether to restrict their research to spa-goers or to also include non-spa consumers. Thus, although they felt it was important to gather information on current spa consumers who had relevant experience and would be in a position to respond to usage-related queries, they all agreed that speaking solely to spa users would be restrictive and would defeat the whole idea of expanding the market. Raman knew from his earlier experiences of defining and driving marketing strategy that choosing the right segments and finding a strong and relevant positioning were the most difficult decisions for any product or brand manager. But Evoe had no room for error. The trio decided to do their homework; they read the literature on positioning and decided to pursue a four-stage sequential process. Stage One: Understanding the Consumer The three entrepreneurs hired a market research firm to cover a sample size of more than 300 first-time and frequent consumers of spa services and approximately the same number of non-spa consumers. They interviewed men and women in the age group of 25 to 55 years, who were employed with public or private companies, self-employed or homemakers. The founders were well aware of the importance of qualitative research for positioning decisions. They knew that focus group discussions10 (FGDs) could reveal a plethora of information and give access to deep consumer insights. The advantage of FGDs was that they created an accepting environment that put participants at ease and facilitated the easy flow of conversation. For in-depth consumer understanding, especially for relatively new categories of products and services, FGDs were perfect. The participants 10 A focus group, also referred to as a “group depth interview,” is a qualitative consumer research technique used to understand how people behave in response to a new offering; why people behave in a particular way; what they believe, think or feel about various issues; or any combination of these objectives. This document is authorized for use only in Sushil Jhangiani's Monsoon 2024 | ENT-1011 Fundamentals of Marketing at Ashoka University from Aug 2024 to Feb 2025. Page 5 9B13A051 could be comfortable and relaxed as they were unaware of the objective of the focus group and the selection process. Raman was cautiously optimistic about the process: It all depends on how open the FGD participants are with their thoughts, concerns and beliefs. This whole concept of wellness and spas is still relatively new to Indian consumers, so they may not be able to articulate their unmet needs. The key would be to arrive at the consumers’ core values and select from them the most resonating value that could address the issue of wellness. To better understand the cultural sensitivities and societal issues surrounding spa usage in India, Raman decided to personally observe the FGDs conducted by the market research firm. Two kinds of FGDs were conducted — one with spa users and the other with non-spa users. In both sets, the groups comprised participants from a variety of professions. Other segmenting variables were frequency of spa use, the purpose of the visit and the benefits sought (see Exhibit 3). Care was taken to ensure that the groups were fairly representative in terms of gender mix. Age and family income were used as filters to select the panel for the discussions. After nearly four months of FGDs and armed with the reports from the market research firm, Raman returned to Evoe’s head office and collated the data he had collected on consumer behaviour. He then sent the information to Kumar and Gupta, and the trio decided to thoroughly analyze the material over the next two days and then meet to brainstorm their next steps. Meanwhile, to summarize the key points, Raman retrieved his scribbled notes from the FGDs he had attended. Every time he read through his notes, he saw something new. “Consumers are complex beings. They seem to contradict their own views. They sometimes seem to do or believe things they themselves don’t know the reasons for,” he thought to himself. Key Insights from FGDs One critical insight that emerged from the research was that social and cultural acceptability was an important issue among Indian consumers. Cross-gender massage services offered by most spas were not culturally acceptable. Several “massage parlours” that masqueraded as spas had led to negative or unsavoury connotations in the public mind. For this reason, men could not openly admit to enjoying spa therapies for fear of their enjoyment being misconstrued, particularly by their families. The common shower areas in most spas made women (in particular) uncomfortable, as they were required to walk from the therapy rooms to the shower area in a bathrobe, which compromised their privacy. Spas were also found to be intimidating due to their general aura of wealth and indulgence and their perceived premium image. They were regarded as a place for aspiring models and socialites who did not have regular jobs and were perpetually focused on their image and appearance. These perceptions prevented potential consumers from trying out spas. The male population in urban cities and upcoming cities (see Exhibit 4) appeared to have a positive attitude toward spa services. They felt the need to relax and rejuvenate themselves after a long week and because of their hectic lifestyles. Contributing to their physical fatigue were frequent travel, long work hours, working on laptops for long durations, inadequate rest and stressful commutes. Spas appeared to be a good option for relaxation as they offered several time-tested therapies and an ambience that aided mental relaxation. However, men in general were not willing to spend much on this experience. Accessibility was another concern. A common refrain was: “Nowadays, there are massage parlours in every locality promoting themselves as spas, but these cannot be trusted. God knows what This document is authorized for use only in Sushil Jhangiani's Monsoon 2024 | ENT-1011 Fundamentals of Marketing at Ashoka University from Aug 2024 to Feb 2025. Page 6 9B13A051 business are they in! I prefer a trusted brand name but these are at far-off locations. I wish I had one closer to home.” Some men were also apprehensive about visiting spas as they felt that it was not an acceptable practice because of deeply ingrained gender biases and negative perceptions and the fear of being subjected to social ridicule. Opportunity was another concern voiced by some: “We only get weekends to spend with family and we are not sure if we can go with our families to spas.” Younger males were visiting spas more as a self-indulgence, having a body massage or a facial to pamper themselves or to improve their appearance. Raman flipped through some reports, looking for trends. He found that men were becoming more conscious about their image due to increasing peer pressure and were feeling the need to look good and be presentable. This shift in awareness had resulted in the increased consumption of grooming and health products and services for men. The women who participated in the FGDs had diverse viewpoints. Younger women thought of spas as a preferable option to local beauty salons. Among the views expressed were the following: “Spas are more professional, and hence, they can give us better beauty solutions and treatments” and “They are expensive but visiting them once in a while is worth it to have an experience.” Working women, like men, were stressed and sought relaxation and rejuvenation. In their struggle to strike a balance between home and work, which was difficult during weekdays, many women dedicated their weekends to their homes and families, with the result that time was a major constraint for them. Accommodating health and wellness compulsions in an increasingly busy lifestyle seemed to be a struggle. A frequent sentiment was that “We don’t have time to go to spas and pamper ourselves. We crave ‘me time,’ but since weekends are the only family time we have, we feel guilty about ignoring them to indulge ourselves.” Although homemakers did not face the struggle of balancing work and home, they felt equally stressed. They too sought time for themselves as they were constantly juggling the multiple requirements of family members. The FGDs revealed that most homemakers were unaware of the de-stressing benefits of spa services; rather, they turned to spas for their beauty solutions: “A good facial at a spa makes me feel fresh and radiant. The spa people are trained well and give you just the right massage for the required duration. I don’t get that feeling at a local beauty salon.” Most women were wary of the rapid growth of spas and stated a preference for trusted brand names. Also, the majority expressed a marked preference for natural and organic products, saying: “If there is a solution that uses a natural or herbal base, I would prefer it over everything else, as I know that there will be no harmful side effects.” From the views expressed in almost all the FGDs, it was obvious that social acceptance for spas was still a concern. Stage Two: Identifying Consumer Segments The team pooled the results of the FGDs with the secondary research and observational data they had gathered. The research had shown that, despite some apprehensions regarding spas, both men and women who sought beauty benefits from spa services were becoming more aware of spas’ wellness benefits and were willing to explore them, making spa visits an aspiration. To get a clearer picture, Raman decided to use a positioning map11 (derived from secondary research and primary data based on interactions with consumers), which pictorially depicted the position of various competing brands relative to each other in terms of consumer perception. The map plotted affordability as one of the key criteria on one axis and the approach to wellness on the other (with beauty at one end of 11 Robert J. Dolan, Perceptual Mapping: A Manager’s Guide, Harvard Business School Publishing, Boston, 1990. This document is authorized for use only in Sushil Jhangiani's Monsoon 2024 | ENT-1011 Fundamentals of Marketing at Ashoka University from Aug 2024 to Feb 2025. Page 7 9B13A051 the axis and holistic health and wellness on the other) (see Exhibit 5). The area on the map that was high on both wellness and affordability presented an exciting proposition for Evoe because it was fairly empty and uncluttered. This positioning needed to be further explored. The trio noted other interesting and revealing insights. One such insight was the different way in which individuals approached the role of health and wellness in their lives, which determined the share of wellness services they consumed. People’s different approaches to wellness were based on the importance they extended to wellness and to their propensity to spend money on wellness. Consumer behaviour was varied, ranging from being actively engaged in activities to feel good, to being reactive to health needs. This variety undoubtedly stemmed not only from their level of exposure to health and wellness concepts but also their acceptance of those concepts (i.e., their buy-in). Overall, younger consumers were clearly both more willing to try out new products and less hesitant to experiment. Also, consumers in urban cities appeared to be more accepting of and more willing to try spa services, compared with people living in the upcoming cities and smaller towns. Raman organized information based on differences in lifestyle, the pace of life in urban and upcoming cities and the propensity to spend on wellness, and he grouped consumers accordingly. The four consumer segments that emerged from an analysis of the primary and secondary data were termed Snails, Climbers, Sprinters and Racers (see Exhibit 6). At this stage, Raman had mixed feelings: “Though I was happy that some sense had been made of all the research, I knew fairly well that this was only the beginning and tough choices would have to be made, considering that each segment size was different.” Another concern was that few people were knowledgeable about spas, and those that were knowledgeable were also relatively more affluent. The larger segment was looking for an affordable spa experience, but had low awareness. The fact remained that many consumers thought of spas as upmarket massage parlours or beauty salons. Raman pondered the issue: Does this mean that we have to invest heavily in building this category among the larger segment, or should we play it safe and look at those critical few who are easier to target? Or should we target both? What could Evoe mean to them? What should be Evoe’s value proposition to the chosen target consumers? Stage Three: Consumer Value Proposition Raman met with Kumar and Gupta to review the research outcomes and develop their consumer value proposition. The three agreed to use the brand ladder concept,12 building their brand step by step, beginning with the core values Evoe stood for, then defining the emotional and functional benefits those values offered and, finally, identifying the service attributes that would communicate those benefits. Sticky notes in hand, each of them approached a plain whiteboard, wrote down a consumer value they believed Evoe could stand for and stuck the note on the board. The question they asked themselves was “What do our target consumers value the most?” Based on reports on the spa industry and primary consumer research, they decided to keep affordability and accessibility as underlying constants. Their list of consumer value propositions evolved along the following lines: 12 The brand ladder is a positioning tool used by marketers to highlight the different levels of brand benefits that support and aid in delivering a brand experience that can help consumers achieve their desired end goals and values. This document is authorized for use only in Sushil Jhangiani's Monsoon 2024 | ENT-1011 Fundamentals of Marketing at Ashoka University from Aug 2024 to Feb 2025. Page 8 9B13A051 Reducing stress Being pampered Undergoing scientific therapies Being in a happy state of mind Leading a well-balanced lifestyle Gaining a feeling of general well-being Making time for myself Looking beautiful Being physically fit Feeling extravagant yet being economical Getting back to nature and natural products Going on a vacation Relaxing Developing immunity for good health Taking a break As they looked at the sticky notes on the board, mulling over the core consumer values, a sense of anticipation filled the air. They walked around the room, shuffled the sticky notes around and studied them. All through the process, Raman had the distinct feeling that they were on to something concrete. Then, suddenly, after innumerable cups of coffee and countless suggestions, Gupta banged his fist hard on the table. “That’s it!” he exclaimed, “I think I see it. Isn’t there an underlying sense in all this of an individual ‘feeling good about life’?” He looked at the others, anticipating yet another rejection, but from the looks on the faces of the other two, he knew they had a winner! The next few hours were spent beating the core consumer value of “feeling good about life” in and out. All the data they had gathered from their primary research appeared to be connected with “feeling good about life.” Finally, they were sure they had hit upon the core value for Evoe Spring Spa. Stage Four: Positioning Choices Raman knew that choosing the correct and strong positioning for Evoe was imperative — the appropriate positioning that would be endearing and long-lasting in consumers’ minds and would strike a chord with consumers’ core values. It would need to provide a strong motivation for consumers to continue visiting Evoe. Scrubbing the data was the next step in building the concept of “feeling good about life.” They wrote the core consumer value of “feeling good about life” on the centre of the board and stuck the notes around it. They reviewed the list of core values again and noticed a pattern emerging. For instance, “reducing stress,” “undergoing scientific therapies” and “immunity for health” reflected a concern for health. “Being pampered,” “being extravagant” and “happy state of mind” linked with the need for indulgence. Were there more? They moved each note, grouping a few of them and observing the fit. After further discussions over the next few days, they finally arrived at three distinct positioning concepts — Affordable Indulgence, Affordable Health and A Little Vacation. Affordability was critical as it would be the core premise for their brand. Raman commented: “This looks good. We seem to be heading towards three very different positions we can occupy in the consumers’ minds. We need to now build on these concepts and find out what our consumers feel about them,” as he scribbled on a note. He pushed it toward the other two and they deliberated on it. Over the next few days, they worked on describing each positioning concept (see Exhibit 7). This document is authorized for use only in Sushil Jhangiani's Monsoon 2024 | ENT-1011 Fundamentals of Marketing at Ashoka University from Aug 2024 to Feb 2025. Page 9 9B13A051 THE LAST MILE The moment of reckoning had arrived. They had fleshed out their positioning concepts. Now, it was time to make a final choice. Raman, Kumar and Gupta sat down with all their research data, test data and qualitative notes. All three positioning options seemed good, but they needed to make a decision on the basis of a rationale. The key objective was to select a positioning concept that would resonate with consumers and would be sufficiently motivating that both spa users and non-users would try Evoe. Further, the positioning needed to be strong enough to turn first-time consumers into repeat visitors. Also, the chosen positioning needed to be easily implementable and communicable through multiple touch points. Finally, it should be well differentiated to be able to build strong brand equity over time. Concept boards (see Exhibits 8A, 8B and 8C) had been created for each positioning option so they could be reviewed and assessed by end consumers. These boards served as clear and tangible communication materials to discuss each positioning with consumers across the four segments. They were asked to indicate the relative resonance they felt toward the positioning concepts on a scale of 1 to 3 (1 being the least resonant and 3, the most). The results from the tests would be an important outcome for selecting a positioning (see Exhibit 9). However, with Evoe being a pure service offering, would it be possible to communicate its benefits without creating a real-time experience for consumers? The authors, Dr. Ashita Aggarwal Sharma, Associate Professor-Marketing and Dr. Renuka Kamath, Professor of Marketing, are faculty with S. P. Jain Institute of Management and Research, Mumbai, India. Sunil Rao is Director Marketing at CMYK Health Boutique Private Ltd. This document is authorized for use only in Sushil Jhangiani's Monsoon 2024 | ENT-1011 Fundamentals of Marketing at Ashoka University from Aug 2024 to Feb 2025. Page 10 9B13A051 EXHIBIT 1: THE ILLNESS-WELLNESS CONTINUUM Source: John W. Travis, MD, Illness-Wellness Continuum © 1981, 1988, 2004, Reproduced with permission, from John W. Travis and Regina Sara Ryan, Wellness Workbook: How to Achieve Enduring Health and Vitality, 3rd edition, Celestial Arts, 2004, www.wellnessworkbook.com, accessed May 9, 2013. EXHIBIT 2: IDENTIFICATION OF WELLNESS OPPORTUNITIES Source: Global Spa Summit, Spas and the Global Wellness Market: Synergies and Opportunities, SRI International, p. 50, www.sri.com/sites/default/files/publications/gss_sri_spasandwellnessreport_rev_82010.pdf, accessed May 9, 2013. This document is authorized for use only in Sushil Jhangiani's Monsoon 2024 | ENT-1011 Fundamentals of Marketing at Ashoka University from Aug 2024 to Feb 2025. Page 11 9B13A051 EXHIBIT 3: FOCUS GROUP DISCUSSIONS — OPTIONS FOR SEGMENTATION Frequency of Use First-time user Once a year or less frequently Once in six months Once in three months or more frequently Profession of User Working professional Self-employed Homemaker Purpose of Visit/ Benefit Sought Pampering oneself Rejuvenation Stress Management Cure Age