ME2.1 Marketing Report: 7Ps Analysis of Thu Cuc and Saigon Smile Spas

This report conducts a comprehensive analysis of the marketing strategies employed by Thu Cuc Spa and Saigon Smile Spa, two prominent beauty and wellness establishments in Vietnam. The report is structured around the 7Ps marketing mix, evaluating each element for both spas. It examines their product offerings, which include facial care, body care, and high-tech aesthetic treatments, as well as their distribution channels, encompassing chain stores, online platforms, and telemarketing. Pricing strategies, including demand-driven pricing, package deals, and VIP programs, are also explored. The report delves into promotional activities, such as public relations, sales promotions, and advertising, including the use of social media and celebrity endorsements. Furthermore, it assesses the physical evidence, including the spas' ambiance and design, and the people aspect, focusing on staff training and customer service. Finally, it analyzes the processes involved in customer interactions, from initial consultation to post-treatment care. The report concludes with a review of a simple Saigon Smile Spa marketing plan.

TRAN DANG BAO TRAM _ 10190651 _ ME2.1

A. INTRODUCTION
The report will be divided into three sections. To begin, evaluate how Thu Cuc
Spa and the Saigon Smile employ components of the marketing mix (7Ps) to
achieve overall company objectives. Second, a simple Saigon Smile Spa marketing
plan was created and reviewed. The report will conclude with a conclusion, a
reference list, and an annex.

B. PART A
I. PRODUCT
1. Thu Cuc Spa
Thu Cuc Spa is known as a place that provides beauty services, products, and
three main product lines that spa offers to meet the beauty needs of customers
including: facial care, body care, and high-tech aesthetics. To be able to serve
many customer segments, services here are divided into two types: basic care (low
cost and short time) and advance care using the most advanced equipment (more
expensive and time consuming). In addition, customers will be given a clinical
examination, skin inspection, and free consultation by beautican at Thu Cuc before
using the service. This enhances the spa experience while posing no health risks.
Secondly, all items used in the beauty treatment at Thu Cuc are high-end and made
entirely of natural substances. These products are extremely benign to the skin as
well as health, so customers will minimize the possibility of irritation and redness.
(Thu Cuc Spa, n.d.)
2. Saigon Smile Spa
Saigon Smile Spa also offers similar services to Thu Cuc Spa. In addition,
Saigon Smile Spa provides additional slimming and weight loss services with
advanced technology and it is extremely appreciated by customers. The services at
Saigon Smile Spa all apply the most advanced and modern beauty technologies in
the world such as: Ultherapy in face lifting, wrinkle removal; Laser in the
treatment of acne, melasma, freckles and so on (Saigon Smile Spa, 2020).
Therefore, all services here are mainly for high-end customers. Besides, Saigon
Smile Spa also provides free consultations for customers like Thu Cuc Spa.
II. PLACE
Thu Cuc Spa and Saigon Smile Spa use direct distribution channels through
three main distribution methods:
 Chain store

o Thu Cuc Spa (eight in the North, two in the central of Vietnam, and
one in the South)
o Saigon Smile Spa (four in Hanoi, two in Ho Chi Minh City, and one
in Bien Hoa City)
 Internet (Facebook and offcial website)
 Telemarketing sales (contact via Zalo and mobile phone number or
SMS)
Thanks to technology, customers can consult about services through the
official website of the two spas. Besides, they can find out more information that
the service they need through the Internet or the official website. For example,
pictures before and after using services at Thu Cuc Spa and Saigon Smile Spa. In
addition, customers can also refer to more feedback from old customers to make
choices for themselves. After that, customers can book an appointment and receive
a free consultation right away by registering personal information on the website.
The staff at these two spas will directly call customers to help them answer
questions as well as book and close appointments. In addition, customers always
receive customer care messages and promotional information or congratulatory
messages on March 8 or October 20 via SMS. Finally, customers will directly visit
the clinic and experience the service at the chain stores of Thu Cuc Spa and Saigon
Smile Spa.
III. PRICE
Thu Cuc Spa and Saigon Smile Spa use a demand-driven pricing strategy and
a full service package.
Firstly, depending on the time of day, week and season, different
characteristics, audiences and needs, businesses will change prices according to
monthly promotions. For services with a short life cycle, businesses often have a
discount program for customers to use the service for the next time. This
encourages customers who have used the service for the first time to return for a

second or third time. Thereby creating sympathy for customers with preferential
services and promoting a shorter product life cycle. Besides, for the months when
there is a need for beauty and spa treatment, the service cost will be reduced
(depending on the service). As for the days near Tet, the beauty needs of women
increase, the price of the service will increase a bit.
Secondly, Saigon Smile Spa and Thu Cuc Spa offer a package price for
combos that integrate multiple services with more favorable prices when using
individual services. This motivates customers to choose more services at the same
time and customers will save a lot when choosing combos. In addition, both spas
use a point-to-become strategy to entice clients to become VIP members, who will
get a variety of exclusive incentives and special care. For example, at Saigon
Smile Spa, customers only need to pay 70 million VND to own a VIP Card worth
100 million VND and can use all the services here.

Figure 1: The service of Saigon Smile Spa (Saigonsmilespa, n.d.)
Figure 2: The service of Thu Cuc Spa (Spathucuc, n.d.)
The factor that impact to the price strategies
Thu Cuc Spa Saigon Smile Spa
Influencin
g factors
External factors
 Economics: After the influence of Covid-19, Vietnam's economy
is showing indications of revival -> promoting the service
industry's development, particularly beauty services.
 Demand: The demand for beauty care of women is increasing day
by day. They feel more confident, love themselves more when
they are beautiful (ACT, 2021).
 Market: Businesses in health care as well as beauty are increasing

(about 12% in 2019) (Marketing Macro, 2019)
 The market has many competitors and is gradually becoming
saturated.
 Price plays a vital role in consumer's decision to use.
 Supplier: The cost of drugs, cosmetics as well as equipment is
extremely expensive.
 Directly impact the price of Thu Cuc Spa and Saigon Smile Spa.
Internal factors
 Marketing Objectives: Thu
Cuc’s goal is bring beauty to
all women.
 More accessible to middle-
income people than Saigon
Smile Spa
 The characteristics of
product: Diversified,
suitable for the needs of
many customer segments
 Marketing Objectives:
Saigon Smile Spa’s goal is to
bring customers efficiency that
goes hand in hand with safety
and science.
 Satisfy customer needs and
improve customer’s
affordability.
 The characteristics of
product: Focusing mainly on
high quality products and a
long route as well as the most
advanced machines to meet
customers' requirements.
The Saigon Smile Spa’s price is
higher than Thu Cuc Spa.

IV. PROMOTIONS:
1. Thu Cuc Spa
o The intergrated marketing communication:
 Public relation:
- Event: Thu Cuc Spa is a company that provides beauty services. In each event,
the audience usually gets a free skin scan and the lucky audience will receive a
kit product to experience. Since then, the approach of this spa to customers has
become more and more widespread.
- Community involvement: Thu Cuc Spa also engages in a number of
community volunteer activities to assist those who are less fortunate in society.
 Sale promotion: Home Food has two types of sales promotion programs:
monetary sales promotion and value sales promotion.
- Monetary sales promotion: Thu Cuc Spa promotes monetary sales
promotions through such tools as 10 - 50% off for the next use of the
service, apply extremely preferential promotions when buying combos,
using the first 2 services will get the third service free.
- Values sales promotion: Thu Cuc Spa likewise employs this marketing
strategy on a regular basis by providing consumers with free samples of the
store's items or services.
 Advertising:
- Thu Cuc spa often livestream on facebook the process of customer service
experience.
- Posting the process “before and after” the service experience on Facebook
or official website to increase customer credibility as well as attract more
customers.
2. Saigon Smile Spa
Saigon Smile also applies the same public relation and sale promotion
strategies as Thu Cuc Spa. In addition, Saigon Smile Spa also has its own Youtube
channel with nearly 10,000 subscribers. This spa regularly reposts the customer

service experience on Youtube and attracts a lot of views. Besides, Saigon Smile
Spa also connects with many famous people to advertise their services. When
going to the spa's website, right on the front page are actors Diem My, Quynh Nga
and so on.
V. PHYSICAL EVIDENCE
1. Thu Cuc Spa
Thu Cuc Spa's main color is green, which evokes a pleasant and comfortable
feeling. Besides, when entering the Spa, customers will feel the gentle scent of
essential oils. In addition, Spa also combines therapy with music to help customers
relax and relieve stress. Each beauty room at Thu Cuc Spa is designed and
researched by a team of designers to create a high-class, modern space that is still
comfortable and absolutely safe for customers. Besides, Spa regularly updates
equipment and modern machines to serve customers.
2. Saigon Smile Spa
The main color of Saigon Smile Spa is honey yellow. When customers come
here, they always hear soothing sounds to relieve stress and the scent of high-class
perfumes. Each room of Saigon Smile Spa has 4-6 beds, neatly arranged and
convenient for the travel of employees and customers. In addition, Spa also
provides Himalayan salt rock, a stone with many minerals, which can cure
diseases of bones, joints, blood circulation ... Spa always updates the most modern
and advanced technological equipment.
VI. PEOPLE
1. Thu Cuc Spa

Thu Cuc Spa opened a Spa Academy - professional skin care training,
directly training students here with a team of highly qualified teachers in the
profession as professional advisors. Thu Cuc Spa also diversify training methods
to give employees more opportunities to learn and develop. Trainees can practice
directly with customers to practice their skills. Management staff are focused on
intensive training in strategic management, risk management, quality management.
Consultants are also trained in behavior, walking style, caring style and creating
sympathy for customers.
2. Saigon Smile Spa
Saigon Smile Spa established for 15 years, the human factor is focused by
Saigon Smile Spa through the recruitment of employees. In which, the passion for
passion for health care and beauty experience is considered the top characteristics
of the company's selection. In particular, The staff here are all young people from
19 - 27 with good-looking faces, agile behavior, good communication skills and
especially high skills to meet the beauty needs of customers. Therfore, hiring
skilled beauty personnel will make it simpler for Saigon Smile Spa to
communicate with consumers, as well as assist the spa attract more prospective
new clients.
VII. PROCESS
1. Thu Cuc Spa
Firstly, when customers have a need to beautify or learn about Thu Cuc Spa's
services, they will contact the spa's hotline or message via facebook for a free
consultation. Customers can leave information including: full name, phone
number, email on the registration form at the website. Thu Cuc's switchboard to
answer all customer questions. Next, customers come to Thu Cuc Spa, the
receptionist will welcome and guide them through the process at Thu Cuc Spa.
Thirdly, the customer will be examined by a doctor and advised on the appropriate
treatment course. After that, the customer will be examined by a doctor and
advised on the appropriate treatment course. Next, the doctors will perform skin

care in a system of modern rooms, fully equipped with modern equipment for
guests. After treatment, customers will be given medicine (depending on the
service package), given instructions on diet, rest as well as how to use medicine.
Finally, the client will perform at-home care as directed and follow-up visits as
directed by the doctor.
2. Saigon Smile Spa
The procedures at Saigon Smile Spa are similar to Thu Cuc Spa. However, in
step five, after experiencing the service, the customer will directly fill out the
survey on the level of satisfaction with the service through the electronic panel.
This helps Saigon Smile to synthesize data as well as give clear suggestions to
promote strengths and overcome weaknesses.
Consult services Welcoming the
customers
Skin
examination and
advice on
suitable course
Carry out
treatment,
skin care
Customer care
after treatment +
feedback via
phone
Perform re-
examination

VIII. MARKETING MIX AND THE CONNECTION WITH THE
COMPANY’S OBJECTIVE
Thu Cuc Spa and Saigon Smile Spa both want to be a high-quality and well-
known spa in Vietnam. As a result, marketing mix tactics are critical for both
businesses.
Firstly, despite the same beauty care service for women, the product
strategies of the two companies are completely different. With the company's goal
of bringing beauty to every woman, Thu Cuc Spa's services are divided by
customer segments. From services under 1 million and performed in a short time
to services from tens of millions to hundreds of millions divided into many
sessions. Meanwhile, Saigon Smile Spa focuses mainly on high-income customers
who want to experience the most advanced beauty technologies in the world.
Secondly, with the intention of being able to reach their customers directly,
both companies opted for direct distribution. The utilization of direct distribution
channels without intermediaries has aided the organization in getting its products
and services to clients faster while also lowering distribution expenses. The direct
distribution route will assist Thu Cuc, Saigon Smile Spa save money on
Consult services Welcoming the
customers
Skin
examination and
advice on
suitable course
Carry out
treatment, skin
care + online
feedback
Customer care
after treatment
Perform re-
examination