ENG4003 Module: Research Enterprise - Divy Spa Business Plan

This report presents a comprehensive business plan for Divy Spa and Ayurveda Beauty Parlour, focusing on establishing an ayurvedic spa in Upper Richmond, London. It details the company description, emphasizing female-only services rooted in Ayurvedic principles and run by qualified professionals. The report analyzes the market opportunity, highlighting the growing demand for relaxation and spa treatments, especially those using natural and organic ingredients. It includes a SWOT analysis of the competition, a detailed marketing plan incorporating the 4Ps, and an operational plan outlining resource management and financial projections. The report also features a business model canvas, organizational structure, and concludes with a summary of key factors to consider when starting a new business. The plan emphasizes the unique selling proposition of providing authentic ayurvedic treatments and products to differentiate Divy Spa from competitors, catering to the rising demand for wellness and beauty services in the UK.

ENG4003-N RESEARCH
AND ENTERPRISE
MODULE

EXECUTIVE SUMMARY
This report will present a comprehensive analysis of all the essential factors in developing a
business plan for Divy Spa and Ayurveda Beauty Parlour. The report will highlight different
aspects that are to be ascertained before venturing into ayurvedic spa business and also determine
different sources of resources. This report will present an analysis on all the requirement for
starting up this business in UK.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
Table of Contents.............................................................................................................................3
COMPANY DESCRIPTION..........................................................................................................4
PRODUCTS AND SERVICES.......................................................................................................4
ANALYSIS OF CONCEPT............................................................................................................5
MARKET ANALYSIS OF OPPORTUNITY.................................................................................6
MARKETING PLAN......................................................................................................................6
OPERATIONAL PAN....................................................................................................................7
MANAGEMENT AND ORGANISATION....................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1
APPENDIX......................................................................................................................................2
Business Model Canvas Results..................................................................................................2

COMPANY DESCRIPTION
The Divy Spa and Ayurveda beauty parlour will be a female only parlour and will
operate in the Upper Richmond, London and the parlour will offer a variety of services to the
females that are visiting the store will be provided solutions to all their problems in the Ayurveda
that is brought straight from the lands of India. The owners of the parlour will be Miss Divya
Jyoti and Miss Shehnaz Qureshi who have achieved a B.A.M.S. degree in India. The structure of
the parlour will be an LLC corporation and the organisational structure that will be adopted is a
flat structure where employees will report directly to the owners or managers.
PRODUCTS AND SERVICES
The rising stress, pollution and anxiety have led to increase in the discomfort amongst the
humans and their nature (Whyte, 2018). Satisfaction of the visitors of the parlour will be the
major focus of the parlour and all the products and services offered at Divy will exclusively be
Ayurvedic in their composition. The major products that will be offered by Divy Spa are
traditional ayurvedic massage therapies, organic food supplements, wellness program for our
customers skin care, using medicinal oils that will help in treating different problems of the
patients. Some major services and products will be:
Sirodhara (Connecting Mind and Soul): This is a 60 minute oil treatment which will rejuvenate
a person and dosha, a special instrument will be used.
Bhyangam (Me and my body): This is a massaging therapy and involves eight different
techniques.
Yoga: This involves exercises and meditation where females can come to parlour for an hour as
per the package details.

Apart from this there are many other services like manicure, pedicure, facials, other
massages and oil therapies that visitors can take benefit of. The unique thing about this parlour
that differentiates it from other parlours is the fact that every single service or product will be
somehow associated with the ayurvedic medicines, leafs and other ingredients that will assist in
giving a proper ayurvedic treatment.
ANALYSIS OF CONCEPT
Relaxation has become a key aspect in the hyper active life that individuals lead in UK
and getting spa treatments done is increasingly becoming a fashion trend (Pecero Morales,
2017). They are ready to spend their hard earned money on such spa treatments and their
willingness to spend becomes are earning source. In India, and in many other Asian countries,
Ayurveda has long been used as a medicine and beauty regime where its use is vivid. The Divy
Parlour tends to bring that effect in UK and therefore, the use of Ayurveda in the beauty
supplements and treatments will be done after proper research and development of proper
mechanisms. In this parlour, no modern technologies and chemicals will be used in the spa
sessions and rather, the use of natural herbs and other oils is preferred. This use of organic
products is increasingly being appreciated and favoured in UK and therefore this presents a
perfect market opportunity for the Divy Parlour to begin its operation in UK.

MARKET ANALYSIS OF OPPORTUNITY
The opportunity to expand in the ayurvedic parlour business has risen to a wider level of
market and therefore it is necessary to analyse the competition in this market. There needs to be
uniqueness in the product so that it can categorise itself and develop a separate market share
segregating themselves form their competitors. In the proposed business plan, the focus is more
on ensuring that the products that are used for giving the services are ayurvedic i.e. non harmful
and therefore the relaxation that the visitors are seeking is granted to them in truer context.
Currently, the major competitors of the spa in UK are AyuSpa London and Wellness InUK who
are giving very similar services to the customers in UK but their products are not collectively
organic or with ayurvedic tendencies thus segregating the market for Divy Spa and Parlour
differently (Marwiyah and Apriyani, 2018,). The competitor analyses can be done using Swot
Analysis:
Strengths
 The location of the spa is UK and
therefore the number of visitors will be
fairly high.
 The concept is new and will benefit the
visitors improving their quality of life.
Weaknesses
 There are an increased number of
substitutes and therefore unique feature
of Ayurveda might get lost.
 Economic recession in the spa business.
Opportunities
 There are more avenues that can be
developed in this area.
 Tie-ups with bigger hotels and resorts
can increase business.
Threats
 Consumer loyalty might not be
guaranteed.
 Luxurious hotels have spas of their
own.
MARKETING PLAN
The marketing plan that will be adopted by Divy Spa can be adequately ascertained by
the 4P analysis of the marketing mix.
4P’s of
Marketing
Description
Products Apart from the products that were described earlier, many customers who
want to continue the treatment can take different creams, oils etc. to home.

There are different membership cards and packages that will be issued to the
customers so that loyalty can increase.
Price There are three different pricing strategies that Spa will adopt:
Penetration Pricing for basic products such as manicure, pedicure etc. so that
customers get attracted
Parity pricing so that a separate image and goodwill can be developed as
compared to the products of competitors (Islam and et.al., 2018).
Skimming Pricing will be used to incorporate heavy expenditures with that
of the promotional strategy and apt prices will be adopted.
Place Initially spa will be opened in Upper Richmond, UK and later it will branch
out in different location of UK. Upper Richmond is a posh area and will help
in attracting customers.
Promotion There will be a stall of the parlour in all the major festivals, tie ups with the
prestigious hotels in UK who lack ayurvedic spa services, featuring in beauty
magazines, cold calling, vouchers, coupons, relax days are some of the
promotional strategies that will be adopted.
The products will be made easily available to the customers through online mechanisms
as well since there is a site of spa i.e. www.divyayurvedicspa.com. And the mechanism will be
easy where they can place order anywhere from UK and our delivery boys with whom we have
tie-ups will deliver it in next 3-4 days.
OPERATIONAL PAN
The manufacturing of the products will be done maximum in India where it is easier to
obtain all the ayurvedic products that are necessary to manufacture the products and these are
then shipped from India to UK (Hamidu and Sarbah, 2016). This is also a feasible option since
the owners primarily belong to India and therefore have well designated networks that will help
them in gathering resources at a cheaper rate.
The budget for the overall business would be:
Start-up
Start-up Expenses
Rent deposit 1,817
Other (Wages and Raw Materials) 2500

Total Start-up Expenses 4,317
Start-up Assets
Cash Required 500
Other Current Assets 600
Long-term Assets 59,500
Total Assets 60,600
Total Requirements 64,917
Out of the total expenditure in fixed assets for the salon, the salon equipment will cost
approximately £27000 and the remaining amount i.e. £32500 will be incurred in lease
improvements. The amount that is required will be raised partially from the shareholders and
remaining from bank loans that will be taken on the business name.
MANAGEMENT AND ORGANISATION
The organisational structure of the Divy salon will follow a flat structure where at the top
the owners of the salon acting as managers at the present moment will be heads (Dvořáková,
2015). These would then be followed by the managers of different units and sections of the
parlour who would then govern the employees working under them.
This kind of hierarchical structure will ensure that the employees of the company can easily
report there problems and understand what are the core values and principles of the parlour.
Miss Divya Jyoti
and Miss Shehnaz
Qureshi
(CEO/ Owners)
Marketing Finance Operations Human Resource
Management
Employees

CONCLUSION
The above business plan report helps in concluding that there are a variety of factors that
need to be taken into consideration at the time of starting up a new business. There are a variety
of factors that are responsible and this report conducted an extensive analysis on those factors.
The report helped in concluding that identification of an appropriate business opportunity is the
aspect in starting up a new business. It was also concluded that setting up an appropriate budget
for the new business will assist in dong expenditure in an estimated manner and collect the
required funds from adequate sources.

REFERENCES
Books and journals
Dvořáková, E., 2015. Selling Beauty: The Business Plan of a Czech Beauty Salon.
Hamidu, M. and Sarbah, A., 2016. An Assessment of the Electrical Energy Needs of Beauty
Saloon Industry in Ghana. American Journal of Management Science and
Engineering, 1(2). pp.56-65.
Islam, N., and et.al., 2018. Factors Influencing the Development of Women Entrepreneurship in
Beauty-Care and Parlor Industry of Bangladesh. Autri and Azam, Ashfaqul and Tajrian,
Ainan and Khan, Mausikar Rahman and Tabassum, Tasnim and Nazrul, Toufiq, Factors
Influencing the Development of Women Entrepreneurship in Beauty-Care and Parlor
Industry of Bangladesh (March 29, 2018).
Marwiyah and Apriyani, D., 2018, March. SPA (Solus per Aqua) service industry: An
entrepeneurship opportunity to beauty education department. In AIP Conference
Proceedings (Vol. 1941, No. 1, p. 020015). AIP Publishing.
Pecero Morales, M., 2017. Business plan based on a new business idea: BEPRETTY.
Whyte, K.F., 2018. Business analysis & growth strategy for at heart beauty concepts (Doctoral
dissertation, Ashesi University).
Online
Create a new Business Model Canvas – Canvanizer. 2019. [Online]. Available through:
<https://canvanizer.com/new/business-model-canvas>
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APPENDIX
Business Model Canvas Results
Key Partners
 Hotels and
resorts
 Ayurvedic
Medicinal
Centres
Key Activities
 traditional
ayurvedic
massage
therapies
 organic food
supplements
 wellness
program for
our
customers
skin care,
 using
medicinal
oils
 manicure,
 pedicure,
 facials
 massages
 oil therapies
Value
Propositions
 Extremely
innovative
 online
bookings
 24 hour
service
 Ayurveidc and
organic
treatment
Customer
Relationships
 Loyalty cards
 Memberships
 Discounts
 Vouchers
 Packages
Customer
Segments
 Females
above 15
years of age
2

Key Resources
 Indian Ayurvedic
Medicines
 Salon Equipment
 Trained workers
Channels
 Online
 Offline
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