Business plan for an original high class day spa

MBA Final Project UNDERTAKINGS I would like to confirm that this thesis with topic “Business Plan for an original high class Day Spa” is my own work I have studied and researched the project, applying the academic knowledge obtained from the MBA program and discussing with my Supervisor All data and survey results obtained in this project are true and never announced in any other projects Ho Chi Minh City, 25 February 2011 Phan Quang Nam MBAVB3 Phan Quang Nam MBA Final Project ACKNOWLEDGEMENTS First of all, I would like to show my gratitude to my Supervisor – Dr Bui Thanh Trang, who helped me a lot with his valuable guidance and excellent suggestions I am also indebt to all lecturers, staffs and my classmates in this Program, all of them supported and encouraged me a lot during the course In addition, I would like to express my grateful to Ms Duong Thao Nguyen who helped me a lot to finish this thesis Finally, I would like to express my deep gratitude to my family and my friends, for their backing and support not only during this course, but also for all thing I MBAVB3 Phan Quang Nam MBA Final Project TABLE OF CONTENT UNDERTAKINGS ACKNOWLEDGEMENTS ACRONYMS LIST OF FIGURES LIST OF TABLES EXECUTIVE SUMMARY………………………………………………………………… Chapter 1: INTRODUCTION 1.1 Rational of the project 1.2 Objectives of the project 1.3 Research methodology of the Project 1.3.1 Data collection 1.3.2 Scope and Limitation 1.4 The Structure of the project Chapter LITERATURE REVIEW 2.1 Business Plan Theory 2.1.1 Market Research 2.2 Financial Review: 2.2.1 Net Present Value (NPV): 2.2.2 Internal Rate of Return (IRR) 2.2.3 Payback Period 10 Chapter : COMPANY PROFILE AND PRODUCTS & SERVICES 12 3.1 Company Profile 12 3.1.1 The location of the Spa 13 3.2 Product and Service Description 14 3.2.1 Eco Hot Bed Therapy: 14 3.2.2 Massage combine with Medicinal Herbs 14 3.2.3 Zen and Yoga 15 MBAVB3 Phan Quang Nam MBA Final Project 3.2.4 Vegetarian and Healthy Foods 16 3.3 Sales Literature and Fulfillment 16 3.4 Technology 17 3.5 Future Products and Services 18 Chapter 4: MARKET ANALYSIS 19 4.1 Data collection from Market Research 20 4.1.1 The Clients’ frequencies to using spa services (question 5) 20 4.1.2 Average payment of clients for time in Spa (question 6) 20 4.1.3 The reason why clients using Spa Service (question 12) 21 4.1.4 The information channel (question 16) 21 4.1.5 Criteria to choose a spa (question 15) 22 4.2 Market Segmentation 23 4.3 Target Market Segment Strategy 24 4.4 Service Business Analysis 26 4.4.1 Typical Competitors: 27 Chapter : STRATEGY, MANAGEMENT & IMPLEMENTATION 29 5.1 Position Statement and Value Proposition 29 5.2 Marketing Strategy 29 5.2.1 Promotion Strategy 30 5.2.2 Pricing Strategy 31 5.3 Management and Human Resources 33 5.4 Milestones 35 Chapter 6: FINANCIAL PLAN 36 6.1 Initial investment 36 6.1.1 Initial Investment Expenditures 36 6.1.2 Depreciation Calculation 37 6.2 Revenue and Profit & Loss Analysis 38 6.2.1 Revenue Analysis 38 6.2.2 Expenditure Analysis 40 6.2.3 Profit & Loss (P&L) Analysis 40 MBAVB3 Phan Quang Nam MBA Final Project 6.2.4 Break-even Point Analysis 42 6.3 Key Performance Indicator (KPI) Analysis 42 6.3.1 Net Present Value (NPV) Analysis 42 6.3.2 Internal Rate of Return (IRR) Analysis 43 6.3.3 Payback Period Analysis 44 6.4 Risk Management Analysis 44 Chapter : CONCLUSION AND RECOMMENDATION 46 7.1 Conclusion 46 7.2 Recommendation 46 REFERENCES APPENDIX 1: QUESTIONNAIRE APPENDIX 2: RESULTS OF SURVEY MBAVB3 Phan Quang Nam MBA Final Project ACRONYMS HCMC Ho Chi Minh city USD US Dollar VND Vietnam Dong MoU Memorandum of Understanding WoM Word of Mouth LTA Long-term Assets OTA Other Assets P&L Profit & Loss EBITDA Earning before Income tax, Depreciation and Amortization EBIT Earning before income tax Re Revenue FC Fixed Cost OC Operation Cost De Depreciation N Number of turns of clients per month VC Variable Cost KPI Key Performance Indicators NPV Net Present Value IRR Internal Rate of Return NI Net income CF Cash Flow Vietcombank Joint Stock Commercial Bank for Foreign Trade of Vietnam MBAVB3 Phan Quang Nam MBA Final Project LIST OF FIGURES Figure 2-1: Typical Business Plan Model Figure 2-2: Market Research Methodologies Figure 4-1: Clients’ Frequencies to using Spa Service 20 Figure 4-2: Average payment of clients for time in Spa (Unit:VND 1,000) 21 Figure 4-3: The reason why clients using Spa Service 21 Figure 4-4: The information channel 22 Figure 6-1: Revenue in period of 10 years (Unit VND 1,000) 39 Figure 6-2: Net income in period of 10 years (VND 1,000) 41 MBAVB3 Phan Quang Nam MBA Final Project LIST OF TABLES Table 3-1: Shareholder’s Capital Contribution (Unit: VND) 113 Table 4-1: Criteria to choose a spa 22 Table 5-1: The Service Prices List (Unit: VND 1,000) 31 Table 5-2: Salary Budget per month (Unit: VND 1000) 334 Table 5-3: Master Plan for Implementation 34 Table 6-1: Initial Investment Expenditure (Unit: VND 1,000) 365 Table 6-2: Revenue in 10 years (Unit: VND 1,000) 398 Table 6-3: Expenditures (Unit: VND 1,000) 409 Table 6-4: P&L in 1st financial year (Unit: VND 1,000) 409 Table 6-5: P&L in 2nd financial year (Unit: VND 1,000) 40 Table 6-6: Net Income in 10 years (Unit: VND 1,000) 40 Table 6-7: The Cash Flow in 10 years (Unit: VND 1,000) 42 Table 6-8: The NPV of the project (VND 1,000) 42 Table 6-9: IRR Calculation (Unit: VND 1,000) 444 MBAVB3 Phan Quang Nam MBA Final Project MBAVB3 Phan Quang Nam MBA Final Project EXECUTIVE SUMMARY This business plan has been developed to build an original high class Day Spa in the centre area of HCMC in the life circle of 10 years, this business will be set up as a partnership between women: Mrs Hang, Mrs Ngan, Mrs Hanh and Mrs Mai Moreover, this business plan helps to give the owners a clear prospect about the business they want to get in as well as keep it on track both in the implementation and operation procedure Products and Services This Day Spa offers the full range of spa’s services combine with holding Zen & Yoga class as well as providing the healthy & vegetarian foods, too The spa services include the ordinary service such as massage, herbal bathing, skin care services etc., and combine with the extraordinary service which appears in the first time at HCMC: the anti-oxidant Eco Hot Bed Beside, all the raw materials using in this spa are eco-friendly products which is good for health and environment Competitive Edge Our competitive edge are unique original services/products within relax/peaceful atmosphere, our location in a luxury urban area is another advantage With the services/products which never appear in other spas in HCMC before (anti- oxidant Eco Hot Bed, Zen, Yoga and Vegetarian food), we hope it will create a new concept of Day Spa which effect strongly to the way community identify and enjoy spa services Moreover, our employees (Receptionist, Massage Therapist) will be trained in a special course in order to make them become the most professionalism employees in their field Financial Review We forecast to achieve the sustainable sale revenue as well as healthy net profit from the second financial year Some key performance indicators are shown as below: NPV of the project = VND 4,477,028,000 (discount rate refer to current long-term saving rate of Vietcombank which is 12% per year) IRR of the project = 29.09% Payback Period = 3.6 years MBAVB3 Phan Quang Nam 38 MBA Final Project Depreciation (LTA)/year = 4,612,000/10 = 461,200 (VND 1,000) b Other asset (OTA) depreciation As seen above in the table, the investment in section IV Setup + Equipment can be considered as Other assets (OTA) and will be deprecated in years then the yearly depreciation of Other assets can be calculated as below: Depreciation (OTA)/year = 295,100/5 = 59,020 (VND 1,000) Especially, the investment in section V Extraordinary Expenditure can not be apportioned because this is an unofficially fee to get the license to open a spa 6.2 Revenue and Profit & Loss Analysis 6.2.1 Revenue Analysis The revenue is totally depended on the amount of clients come to spa everyday Reference to other equivalent spa (example: ANam TQ spa) which is the same level, I estimate that when the spa operates stable, we will have average 25 – 35 clients per day and we plan to reach this target at month seventh from grand opening day thus in order to calculate the revenue per day, I assume that at the time which we reach the stable operation, the spa will have average 25 clients/day Reference to the owners and managers of other spas, normally, we can estimate the average amount which a client spent once they come to a spa by the price of standard service of this spa This standard service is often base on the package of body massage which included sauna/steam bath In our spa, this standard service defined by a package of body massage which included Eco Hot Bed and its price is VND 550,000 Thus we can estimate the revenue per day in stable mode of operation: Revenue/day = average clients per day x price of standard package = 25 x 550 = 13,750 (VND 1,000) Then we can estimate monthly revenue and yearly revenue Revenue/month = Revenue/day x 30 days = 13,750 x 30 = 412,500 (VND 1,000) Revenue/year = Revenue/month x 12 months MBAVB3 Phan Quang Nam 39 MBA Final Project = 412,500 x 12 = 4,950,000 (VND 1,000) This is the estimated revenue in the second financial year when the spa achieves stable mode of operation In the first year, because we will face to the tough time in the early months from the grand opening day and only achieve the target revenue in the month seventh thus we estimate that the revenue in first financial year is just 70% of revenue second financial year Therefore we can estimate the revenue in first financial year as below: Revenue (1st year) = Revenue (2nd year) x 70% Revenue (1st year) = 4,950,000 x 70% = 3,465,000(VND 1,000) Assume that for the year to year 6, the annual revenue’s growth rate is 10% and from year to year 10, the correspondence growth rate is 7% then we will have the revenue (Re) from year to year 10 as shown in table below: Table 6-2: Revenue in 10 years (Unit: VND 1,000) Re year year year year year year year year year year 10 3,465,000 4,950,000 5,445,000 5,989,500 6,588,450 7,247,295 7,754,606 8,297,428 8,878,248 9,499,725 (Source: Author’s calculation) Figure 6-1: Revenue in period of 10 years (Unit VND 1,000) Revenue in period of 10 years (VND 1,000) 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 year year year year year year year year year year 10 (Source: Author’s calculation) MBAVB3 Phan Quang Nam 40 MBA Final Project 6.2.2 Expenditure Analysis The detail Expenditures (in stable mode of operation) in 2nd financial year is expressed as the table below: Table 6-3: Expenditures (Unit: VND 1,000) Expenditures Description Variable cost Monthly 40,000 No of Month 40,000 12 Cost of goods sold (9.5% Revenue) Operation Cost 480,000 207,100 House rental fee Electricity + Water fees Salary Other cost 90,000 10,000 97,100 10,000 Depreciation 43,352 Depreciation (LTA) Depreciation (OTA) 38,433 4,918 Total Cost Yearly 480,000 290,452 2,485,200 12 12 12 12 1,080,000 120,000 1,165,200 120,000 520,220 12 12 461,200 59,020 3,485,420 (Source: Author’s calculation) This is the service industry then the Cost of good sold (variable cost) is low (about 9.5% of Revenue – reference to other spas’ owners) 6.2.3 Profit & Loss (P&L) Analysis a P&L in 1st financial year: The P&L in 1st financial year is shown as below Table 6-4: P&L in 1st financial year (Unit: VND 1,000) Revenue Cost of goods sold (about 9.5% of Revenue) Gross margin Operation cost EBITDA Depreciation EBIT Corporate Tax (25% EBIT) Net Income 3,465,000 330,000 3,135,000 2,485,200 649,800 520,220 129,580 32,395 97,185 (Source: Author’s calculation) MBAVB3 Phan Quang Nam 41 MBA Final Project b P&L in 2nd financial year and period of 10 years: The P&L in 2nd financial year is shown as below Table 6-5: P&L in 2nd financial year (Unit: VND 1,000) 4,950,000 Revenue Cost of goods sold (about 9.5% of Revenue) Gross margin Operation cost EBITDA Depreciation EBIT Corporate Tax (25% EBIT) Net Income 480,000 4,470,000 2,485,200 1,984,800 520,220 1,464,580 366,145 1,098,435 (Source: Author’s calculation) Assume that the Net Income (NI) has a growth rate as the same as the growth rate of revenue which mean from year to year the annual growth rate is 10% and from year to year 10 the annual growth rate is 7% thus we have the Net Income (NI) in 10 years as shown in table below Table 6-6: Net Income in 10 years (Unit: VND 1,000) year NI 97,185 year year year year year year year year year 10 1,098,435 1,208,279 1,329,106 1,462,017 1,608,219 1,720,794 1,841,250 1,970,137 2,108,047 (Source: Author’s calculation) Figure 6-2: Net income in period of 10 years (VND 1,000) Net Income in period of 10 years (Unit: VND 1,000) 2,500,000 2,000,000 1,500,000 1,000,000 500,000 year year year year year year year year year year 10 (Source: Author’s calculation) MBAVB3 Phan Quang Nam 42 MBA Final Project c Ratio Analysis in 2nd financial year: EBITDA/Revenue = 1,984,800/4,950,000 = 40% EBIT/Revenue = 1,464,580/4,950,000 = 29.58% Net Income/Revenue = 1,098,435/4,950,000 = 22.19% 6.2.4 Break-even Point Analysis In this case, the break even point (counted per month) is defined as the numbers of turns of client per month (N) which make balance the equations below: Revenue (Re) = Fixed cost (FC) + Variable cost (VC) => Re = Operation cost (OC) + Depreciation (De) + VC => Re = OC + De + Re x 9.5% (Variable cost = Revenue x 9.5% as assumption above) => Price x N = OC + De + Price x N x 9.5% (N = No of clients / month) => N = (OC + De)/ (Price x (1-9.5%)) => N = (207,100 + 43,352)/(550 x 90.5%) = 503 (turns of client) It means that the spa will achieves the break-even point if it has at least 503 turns of client per month which is approximately equivalent to about 17 turns of client per day 6.3 Key Performance Indicator (KPI) Analysis 6.3.1 Net Present Value (NPV) Analysis Net Present Value is one of the most important financial indicator which all investor need to use to evaluate one particular project was attractive or not We examined that the life circle of our project is 10 years then we have the formula for NPV calculating in this case as below: NPV = CF1 / (1+r) + CF2 / (1+r)2 + CF3 / (1+r)3 + + CF10 / (1+r)10 – CF0 CF0: Initial Investment = 5,027,100 (VND 1,000) MBAVB3 Phan Quang Nam 43 discounted rate r: MBA Final Project = 12% (in this case, we assume that the discount rate is equivalent to the long-term saving interest of Vietcombank at this time) Now we calculate the Cash Flow (CF) of year to year 10 (CF1, CF2,…., CF10) The general formula of Free Cash Flow in one year is expressed as below: CF = CF(operation) + CF(investment) + CF(financing) = CF(operation) (in this case, assume CF(investment) and CF(financing) equal to 0) = Net income + Depreciation + ΔWCR = Net income (NI) + Depreciation (De) (in this case we can assume that ΔWCR =0 because almost transactions are in cash) Applied this formula, we can calculate the CF of the period of 10 years (life circle of the project) as the table below: Table 6-7: The Cash Flow in 10 years (Unit: VND 1,000) year 97,185 NI year 1,098,435 year 1,208,279 year 1,329,106 year 1,462,017 year 1,608,219 year 1,720,794 year 1,841,250 year 1,970,137 year 10 2,108,047 De 520,220 520,220 520,220 520,220 520,220 461,200 461,200 461,200 461,200 461,200 CF 617,405 1,618,655 1,728,499 1,849,326 1,982,237 2,069,419 2,181,994 2,302,450 2,431,337 2,569,247 (Source: Author’s calculation) We have the Cash Flow in 10 years as table above, base on that, we can use exel to calculate the Net Present Value as table below: Table 6-8: The NPV of the project (VND 1,000) r (discount rate) 12% CF0 CF1 CF2 CF3 CF4 CF5 CF6 CF7 CF8 CF9 CF10 -5,027,100 617,405 1,618,655 1,728,499 1,849,326 1,982,237 2,069,419 2,181,994 2,302,450 2,431,337 2,569,247 NPV 4,477,028 (Source: Author’s calculation) 6.3.2 Internal Rate of Return (IRR) Analysis Internal Rate of Return (IRR) is another important financial indicator to evaluate a project In fact, IRR and NPV are two most popular method which use by CFOs when they examine that one particular project is good or not in financial view MBAVB3 Phan Quang Nam 44 MBA Final Project As the same way to calculate NPV, we have the cash flow in 10 years (CF0, CF1, …, CF10) then we can use exel to calculate the IRR as table below: Table 6-9: IRR Calculation (Unit: VND 1,000) CF0 5,027,100 CF1 617,405 CF2 CF3 CF4 CF5 CF6 CF7 CF8 CF9 CF10 1,618,655 1,728,499 1,849,326 1,982,237 2,069,419 2,181,994 2,302,450 2,431,337 2,569,247 29.09% IRR (Source: Author’s calculation) Assume that in this case, the cost of capital is equivalent to the long-term saving rate (r) of Vietcombank which defined as value 12% per year as above, thus in this case, the IRR is much higher than the cost of capital 6.3.3 Payback Period Analysis As calculated in table 6-7, we have the Cash Flow in 10 years as shown below year CF 617,405 year year year year year year year year year 10 1,618,655 1,728,499 1,849,326 1,982,237 2,069,419 2,181,994 2,302,450 2,431,337 2,569,247 Analyze the cash flow above, we see that: CF1+ CF2 + CF3 + CF4 x 0.6 = 5,074,154 (VND 1,000) This amount equals approximately to the initial investment expenditure CF0 (5,027,100) then we can said that the Payback Period of this Project is about 3.6 years 6.4 Risk Management Analysis Normally, an entrepreneur faces to many threats which need to identify and manage carefully In our particular project, we might face to some main threats: First main threat might appear during construction & decoration process If the project management job is not managed well, it will cost us a lot both in time and money because of additional expenditures generated during the construction & decoration period In order to prevent this threat, we will hire a professional supervisor as a project manager to ensure the construction & decoration will be done on track Moreover, during the first negotiations with the landlords when we found the target location in January, we always MBAVB3 Phan Quang Nam 45 MBA Final Project come with our architecture and supervisor to evaluate the target location When we achieve the Memorandum of Understanding with the landlord, our architecture/supervisor has begin to design as well as build the budget for construction & decoration item in order to save time as well as money For the safety of the project, when we build the budget for Expenditures Investment as expressed in article 6.1.1 above, we have up 15% compare to the budget prepared by our architecture and our supervisor The second main threat comes from the operation status in the early months It can come from the human resource issues or business operation issues About the human resource issues, because this is a service industry then the human resource plays a very important role in our success It is very important to set the criteria for employees’ recruitment as well as the training process (for massage therapist and receptionist) and building internal policy for the Spa, our specialist – Mr Tran Duc Hoai will help us to build and implement the human resource plan About the business operation issues, the early months from the Grand Opening Day will be the tough time for us when we have to focus all our resource to achieve average 17 clients/day (break even point) from month fourth and average 25 clients/day (stable mode of operation) from month seventh In order to achieve those targets, we will build the detail plan for marketing strategy as well as take care carefully about the quality of our services/products In fact, the sale status in beginning time will be depended much on the relationship network of shareholders as well as sale skill of the Manager thus we will focus to find and employ a good Manager Mrs Hang has experience in this field so she will be mainly in charged to interview and recruit the Manager In addition, in order to guarantee the safety of the project, we will prepare a back-up budget (estimate at 500 million VND) to supplement the cash flow for operation cost in the early months when we have to spend much for marketing and promotion program until achieving the break even point from month fourth as our estimation Therefore, the total capital for this project will be set at VND 5,500,000,000 while the total investment expenditures is VND 5,027,100,000 as calculated in article 6.1.1 above MBAVB3 Phan Quang Nam 46 MBA Final Project Chapter CONCLUSION AND RECOMMENDATION 7.1 Conclusion After finish the research, I found that there is a potential market in high class spa industry in HCMC With the high growth rate of income and lifestyle taste, nowadays people with luxury money in hand have more and more demands to enjoy and pampering themselves and this is the opportunities for the service providers like us Our advantages compare to other spas is we offer some new services/products in spa industry such as Eco Hot Bed and Zen & Yoga class which make the new concept in spa industry The calculation in Key Performance Indicators gives the result which is good enough to guarantee about the profitability and return on Investment (NPV = VND 4,477,028,000; IRR = 29.09%; Payback period = 3.6 years) The IRR = 29.09%, is much higher than long-term saving interest rate of Vietcombank at this time which is 12% per year (cost of capital) thus it is an attractive IRR indicator for any investors Beside, in order to achieve the goals of the owners, it is very important to build and follow the good detail plan for marketing/sale strategy and human resources/management plan which are the two core elements decide the success or losing of any business, especially in service industry 7.2 Recommendation As analyzing above in this project, this is a service industry thus customer-oriented behaviour must be one of the most important core value in this business The owners have the advantage that their spa provides some original/extraordinary services/products then they should implement the strategy to emphasize their strength to attract clients and develop the spa’s brand name in the market Beside, the good Risk Management plan plays the crucial role for the efficiency of the project thus owners should pay attention seriously to identify and manage the risk as description in article 6.4 above This spa might be recommended as the prototype of the new kind of spa in HCMC market If the business runs well, the owners should think about the plan to develop a serie of spas with the same brand name and concept or even the franchising business system MBAVB3 Phan Quang Nam MBA Final Project REFERENCES [1]: Dr Francoise Faelli (2010), Entrepreneur Lecture Note, page 21 [2]: Dr Francoise Faelli (2010), Entrepreneur Lecture Note, page 22 [3]: Dr Francoise Faelli (2010), Entrepreneur Lecture Note, page 23 [4]: Dr Francoise Faelli (2010), Entrepreneur Lecture Note, page 25 [5]: http://en.wikipedia.org/wiki/Net_present_value [6]: http://en.wikipedia.org/wiki/Internal_rate_of_return [7]: http://en.wikipedia.org/wiki/Payback_period [8]: http ://www.ecoparadise.my/therapy.html [9]: http ://www.ayurveda-berkeley.com/tibetan_massage.htm#top [10]: http ://www.tibetanyoga.com/what_tibetan_yoga.html [11]: http ://www.cancer.gov/cancertopics/factsheet/prevention/antioxidants Record M (2009), Writing a Wining Business Plan, How To Content, UK Prof Kim Oosterlinck (2010), Financial Market, Solvay – HOU lectures Alexandre Schmitz (2009), Corporate Finance, Solvay – HOU lectures Claire Gruslin (2010), Market Research, Solvay – HOU lectures Michel Verstraeten (2009), Human Resources Management, Solvay – HOU lectures MBAVB3 Phan Quang Nam MBA Final Project APPENDIX 1: QUESTIONNAIRE Lady and gentlemen, I am Phan Quang Nam, a student of MBA course in a corporate program between Open University, HCMC Vietnam and Solvay Business School, Brussels, Belgium Now I am writing my final project regarding to a Business Plan of a Day Spa in HCMC This questionnaire is part of my work and I greatly appreciate to receive your objective comments, which are very significant for my study Please help me to give your valuable time to answer this questionnaire I ensure that all information of your answers will be kept private and confidential Thank you very much for your support Please fill the cross check x in your selected answer Are you working/staying in HCMC? Yes No (Thank you You have finished the questionnaire) Have you ever try Day Spa/Massage services? Yes No (Thank you You have finished the questionnaire) How old are you? 55 Female How often you come to Spa? ≥ times/week time/week times/month time/month Others How much you often pay for time using services in a Spa? (unit: VND) up to 150,000 up to 300,000 up to 550,000 up to 800,000 up to 1,200,000 or more How far from your house/workplace you often go to enjoy Spa services (km)? up to km up to 2km up to 3km up to 4km >4 km Which style of massage you like the most? Japanese Thai Swedish Tibetan Others How you think about the effect of anti-oxidant technology in health care/Rejuvenation industry? Very Useful Useful Normal Unuseful Very Unuseful MBAVB3 Phan Quang Nam MBA Final Project 10 Have you ever joined the Zen/Yoga class? Yes No 11 How you think about the idea to organize Zen/Yoga course in a Spa? Very Interesting Interesting Normal Inappropriate Very Inappropriate 12 Please show the reason why you go to a Spa? (You can choose multiple answers for this question) Relax/Enjoy Health care Beauty/Rejuvenation Sick/Injuries recover Others 13 How are you satisfied with the spas which you have tried before: Very satisfied Satisfied Acceptable Dissatisfied Very dissatisfied 14 Are you willing to try in a new Spa with totally new concept/original in their services/products? Very willing Willing Normal Unwilling Very unwilling 15 Please rank your Criteria in choosing a Spa: (The most important: point; the lowest important: point Each criteria must receive one different value from – For example, if “Facilities” received then the other criteria are not allowed to get again.) Criteria a – Quality of services/products b – Facilities c – Price d – Reputation e – Location Point 16 By what information channel you feel interested about a particular the Spa: (You can choose multiple answers for this question) Friends Relatives Newspaper/TV Internet Others 17 Your home location: 18 Your workplace location: district: district: 19 Your monthly income: (VND million) 5-12 12-18 18-25 > 25 MBAVB3 Phan Quang Nam MBA Final Project APPENDIX 2: RESULTS OF SURVEY How old are you? 55 27/148 = 18.2% 48/148 = 32.4% 37/148 = 25% 25/148 = 16.9% 11/148 = 7.4% Your Gender? Male Female 87/148 = 58.8% 61/148 = 41.2% How often you come to Spa? ≥ times/week time/week times/month time/month Others 6/148 = 4% 39/148 = 26.4% 52/148 = 35.2% 32/148 = 21.6% 19/148 = 12.8% How much you often pay for time using services in a Spa? (unit: VND) Up to 150,000 Up to 300,000 Up to 550,000 Up to 800,000 Up to 1,200,000 or more 28/148 = 18.9% 57/148 = 38.5% 33/148 = 22.3% 22/148 = 14.8% 8/148 = 5.4% How far from your house/workplace you often go to enjoy Spa services (km)? Up to km Up to km Up to km Up to 4km > 4km 55/147 = 37.4% 71/147 = 48.3% 12/147 = 8.2% 6/147 = 4.1% 3/147 = 2% Which style of massage you like the most? Japanese Thai Swedish Tibetan Others 75/148 = 50.7% 21/148 = 14.1% 12/148 = 8.1% 10/148 = 6.8% 30/148 = 20.3% How you think about the effect of anti-oxidant technology in health care/ Rejuvenation industry? MBAVB3 Phan Quang Nam MBA Final Project Very Useful Useful Normal Unuseful Very Unuseful 10 13/148 = 8.8% 82/148 = 55.4% 51/148 = 34.5% 2/148 = 1.4% 0/148 = 0% Have you ever joined the Zen/Yoga class? Yes No 11/148 = 7.4% 137/148 = 92.6% 11 How you think about the idea to organize Zen/Yoga course in a Spa? Very Interesting Interesting Normal Inappropriate Very Inappropriate 14/148 = 9.5% 32/148 = 21.6% 65/148 = 43.9% 16/148 = 10.8% 21/148 = 14.1% 12 Please show the reason why you go to a Spa? (You can choose multiple answers for this question) Relax/Enjoy Health care Beauty/Rejuvenation Sick/Injuries Recover Others 97 85 102 39 23 13 How are you satisfied with the spas which you have tried before Very Satisfied Satisfied Acceptable Unsatisfied Very Unsatisfied 23/148 = 15.5% 34/148 = 22.9% 86/148 = 58.1% 5/148 = 3.4% 0/148 = 0% 14 Are you willing to try in a new Spa with totally new concept/original in their services/products? Very willing Willing Normal Unwilling Very unwilling 29/148 = 19.6% 24/148 = 16.2% 85/148 = 57.4% 1/148 = 0.6% 9/148 = 6.1% 15 Please rank your Criteria in choosing a Spa: (The most important: point; the lowest important: point Each criterion must receive one different value from – For example, if “Facilities” received then the other criteria are not allowed to get again.) MBAVB3 Phan Quang Nam MBA Final Project Criteria a – Quality of services/products b – Facilities c - Price d – Reputation e - Location Point 3.59 2.72 3.26 2.97 2.45 16 By what information channel you feel interested about a particular the Spa: (You can choose multiple answers for this question) Friends Relatives Newspaper/TV Internet Others 98 77 21 54 43 17 Your home location: District 1, 3, Binh Thanh, Phu Nhuan District 2,4,5,7,10, Tan Binh District 6,8,11, Go Vap District 9,12, Thu Duc, Binh Chanh 18 Your workplace location: District 1, 3, Binh Thanh, Phu Nhuan District 2,4,5,7,10, Tan Binh District 6,8,11, Go Vap District 9,12, Thu Duc, Binh Chanh 19 59/148 = 39.8% 41/148 = 27.7% 27/148 = 18.2% 21/148 = 14.1% 94/148 = 63.5% 31/148 = 20.9% 13/148 = 8.7% 10/148 = 6.7% Your monthly income: (VND million) 5-12 12-18 18-25 >25 MBAVB3 33/148 = 22.3% 58/148 = 39.2% 33/148 = 22.3% 24/148 = 16.2% Phan Quang Nam ... 444 MBAVB3 Phan Quang Nam MBA Final Project MBAVB3 Phan Quang Nam MBA Final Project EXECUTIVE SUMMARY This business plan has been developed to build an original high class Day Spa in the centre... success in business Other people prefer to build a business plan before doing any action Of course the chance to be success of the people who prefer to prepare a business plan is higher than the... idea can open a business very quickly Some people take action to start up their business without any market analytical and business plan, they just believe that a “good idea” can ensure for them