Evoe Spring Spa Positioning Dilemma
Added on 2020-10-22
3 Pages943 Words185 Views
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Evoe Spring Spa: A Positioning DilemmaThe focus of this analysis is on Evoe Spring Spa, a venture envisioning a chain ofaffordable and accessible spas with the aim to destress Indian consumers. Currently,the company is deciding on how exactly its position in the Indian market should be.Even though the Indian population has always shown great interest in health andwellness practices, the increase in stress related issues caused by a hectic way of lifeopened new opportunities for the spa industry. This can be seen on the expectedWellness sector growth rate of 20% over the next three years. Overall, Indianconsumers have become more health aware, sensitive to peer pressure, and with anincreasing preference for natural products. Besides, a growth in disposable income ledto people enhancing their quality of live. Anyhow, the majority of consumers is priceconscious. Furthermore, the market is fragmented. According to the positioning map,competition is particularly concentrated in the affordable beauty and premium wellnesssegment. Contrarily, the map shows a huge gap in the affordable health sector.In order to find a suitable segment, Evoe Spa’s team undertook focus group discussionsto find similar patterns in behavior. They realized that their concept needs to makecostumers “feel good” about their life. Research revealed a huge untapped segment inthe field of low and medium income. These consumers are rather averse to trying outnew things, but mainly due to the costs involved. Also, these costumers are not reallykeen on pampering and self-indulgence. Nonetheless, accessibility and opportunity aremain decision factors. Women are willing to spend more on spa service if time allows to,as it is their biggest constraint. Next, particularly younger consumers are increasinglyopen for wellbeing practices. Their focus is, however, on trusted brands as wells as onorganic products. Finally, urban consumers living a hectic lifestyle have a positiveattitude toward spa services. After analyzing all these key factors, it is obvious that onlywealthier people are aware of spa services, while the larger segment lacks awarenessand seems price sensitive.The question arises whether the decision makers shouldinvest in the larger segment, or only target the few who are already aware of the benefitsof spas and less price-sensitive, or even both. 1
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