The co-founders of Evoe Spring Spa should come up with a positioning strategy of the company in relation to the Indian spa industry. Spa consumers in India see this market as an extravagant indulgence only for the rich and privileged. The spa services are also not widely accepted socially and culturally. The co-founders must come up with a positioning concept that the Indian consumers would find attractive.
Ashita Aggarwal Sharma, Renuka Kamath, Sunil Rao
Harvard Business Review (W13570-PDF-ENG)
January 13, 2014
Case questions answered:
- Identify and explain the variables used to define consumer segmentation in this case.
- Who is the target audience for Evoe Spring Spa? Why?
- Which of the positioning concepts identified by Evoe would you recommend? Why? What suggestions would you make in terms of an implementation plan for the chosen positioning concept?
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Evoe Spring Spa: A Positioning Dilemma Case Answers
Introduction – Evoe Spring Spa: A Positioning Dilemma
Evoe Spring Spa is a first-generation entrepreneurial venture that has fusion spas and destination spas. Largely confined to metro cities, it aimed at de-stressing the Indian customer at affordable pricing. Ayurveda and traditional practices are the main competitors.
Evoe Spring Spa’s approach was to target both frequent spa users and non-spa users. The company seeks to educate these users about its benefits. Its goal is to eradicate a spa’s negative image to increase social acceptance and communicate core values.
The main factors that were considered for segmentation, targeting, and positioning for the venture were consumer perception with respect to spa services, affordability, and accessibility.
The current situation in the Indian market concerning the wellness industry:
- The wellness industry in India has a market size of 3.7 trillion dollars. It represents more than 5% of global economic output.
- The wellness industry in India was estimated at close to 13.4 billion dollars in 2014-15. It is expected to grow at a compound annual growth rate (CAGR) of around 12% for the next five years.
- The growing acceptance of health and wellness has caused the rapid evolution of the wellness industry in a few years.
- Sedentary lifestyles and heightened air pollution have resulted in the citizens of the country falling prey to lifestyle-related ailments, including mental illness, diabetes, cardiovascular diseases, chronic kidney and respiratory diseases, etc.
- Proactive involvement of youth and middle-aged people to maintain a healthier lifestyle and mental well-being
Therapy & Rejuvenation
- The wellness industry is growing its market as it encompasses all aspects of one’s well-being, including physical, emotional, and social, and as a holistic approach toward one’s mind, body, and soul.
- Other alternative therapies and services are seeking to catch up with wellness services, along with some rejuvenating measures that could contribute a small share to the health sector.
Ideal Approach for Evoe Spring Spa
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