Potential Competitors (1.5 marks) [pic] More people are concerning the quality of life and they adding spa into their lifestyle preferences. The spa industry in Singapore is booming since 2003 ( Verikios, 2007). Competition can be either direct or indirect that will affect the overall potential for success of your business. Competitors within the spa industry include the following:
Direct competition would be companies offering similar products and services.
Direct competitors for Banyan Tree spa include (not limited):
Spa Elements at The Cathay Ikeda Spa
Aramsa – The Garden Spa Jean Yip Spa Infinity G. Spa Estheva Spa Citi Spa Aura Day Spa Kenko Reflexology & Fish Spa Ning The Fusion Spa
Some companies are providing luxury spa service with unique environments, with more type of spas, better services and relatively higher price. Such as Ikeda Japanese spa, which is one the famous spa in Singapore provide service with traditional Japanese style of decoration. And it promises an authentic Japanese inn experience to customer. Another kind of spa is it offers common spa and facial services with cheaper price like Citi Spa and Jean Yip. Discount and promotions are frequently given by these companies for attracting more customers. Massage treatment stores are also strong competitors of Banyan Tree, many customers who are suffering cervical vertebra or muscle problem will seek for massage service which offering cheaper price yet better effect.
Indirect competitors are businesses that offer slightly different products and services, but target the same group of customers with the goal of satisfying the same need (Oman, 2011). As the Banyan Tree Spa provides a wide range of spa service, there are several indirect competitors offering similar products. Indirect competitors include:
Yoga and fitness companies – True Yoga &True Fitness, absolute Yoga, Om Shiva Yoga Centre. Facial and skin care companies – Oxy-Facial Treatment, Illumi Facial, Oxy Miracle Infusion.
Beauty and hair spa that provide hair care and massage services – Jeric Salon, Kelture, next hair salon, Kim Bobinson.
These companies are promoting their companies and services through TV advertising, magazine, promotion on newspaper, Audio, promotion booths in shopping center and word of mouth.
Service is included in product range which can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need (Adam & Armstrong, 2009). Banyan Tree Spa Singapore infuses the sleek glamour of its modern interior to the heart of Banyan Tree’s tradition of staging sensual, spiritual and Asian-inspired experience (Banyan Tree Spa, 2013). Customized serving, private area, high standard environment and luxury equipments helps Banyan Tree Spa differentiate themselves from competitors.
The product range includes:
– Rejuvenation Treatment
– Tropical Rainmist
– Beauty Treatments
– Hair Spa
– Depilatory Waxing
Price set by organization refers the sum of the values customers exchange for the benefits of having or using the product or service (Adam & Armstrong, 2009). Due to the segments that Banyan Tree Spa targeted relates to higher affordability and high standard services offered, the price range set are higher than normal spa companies.
Following are the basic price range for various treatments (GST & Service charge are not included) :
– Indulgences: SG$ 480 – 620 ++
– Ayurveda : SG$ 400 ++
– Time-Honored Tradition: SG$ 460 ++
– Classic Rejuvenation: SG$ 280 ++
– Tropical Rainmist: SG$ 470 ++
– Massages: SG$ 120 – 260 ++
– Facials: SG$ 120 – 260 ++
– Beauty Treatments: SG$ 100 – 140 ++
– Hair Spa: SG$ 120 – 180 ++
– Depilatory Waxing: SG$ 40 – 120 ++
Banyan Tree Resorts and Hotels cover business in 8 nations with 16 resorts. Each spa is designed to reflect a unique architectural style and fit into a unique surrounding. Due to the geography of Singapore, Banyan Tree Spa was created as urban spa with a unique sense of place, set to be the tallest Banyan Tree Spa with spectacular views on the 55th level of iconic Marina Bay Sands Hotel – Asia’s leading leisure, entertainment and business destination, it features a sophisticated and refined city look, yet with the very appeal of a Banyan Tree resort (Banyan Tree Spa, 2013). Banyan Tree is also available from online website where services can be booked and reserved via internet.
Promotion is the way in a business makes its products known to the customers, both current and potential (Riley, 2012). The way that Banyan Tree promotes includes trade advertising, sales promotion and public relation. Banyan Tree Spa official website and Facebook page not only enable customers get to know them in a faster and modern way, but promoting sales via internet. Beyond that, Banyan Tree trade advertisement and review are available on magazine like Asiaone Plush and I-S. In 2012, Banyan Tree Marina Bay Sands wins Urban Spa of the Year at 8th AsiaSpa awards (Plush, 2012).
Verikios. M, 26 October 2007, Spa a booming market for Singapore, information retrieved 22 Jan 2013, from http://www.traveldailynews.asia/news/article/16953/spa-a-booming-market-for
Banyan Tree Spa Marina Bay Sands, 2013, information retrieved 22 Jan 2013, from http://www.banyantreespa.com
Oman. J, 22 August 2011, Understanding your competition. Information retrieved 22 Jan 2013, from http://www.smallbusinessbc.ca/starting-a-business/understanding-your-competition
Ian, 21 May 2012, Top 7 Spas in Singapore, Asia. Information retrieved 22 Jan 2012, from http://www.hotelclub.com/blog/top-7-spas-in-singapore/ Riley. J, 23 September 2012, promotional Mix- Introduction. Information retrieved 22 Jan 2013, fromhttp://tutor2u.net/business/marketing/promotion_mix.asp Plush, 28Novermber 2012, Banyan Tree Marina Bay Sands wins Urban Spa of the year at 8th AsiaSpa awards. Information retrieved 22 Jan 2013, from http://www.plushasia.com/article/19235