Executive Summary

Water Lily Day Spa is a small independent day spa that offers personal care treatments
in Hamilton, Ontario and has only been in business since May 2008. Its owner, Julie Ricottone,
is also the only aesthetician. Water Lily’s current target market consists of females aged 16-24
and 30-40, who live or work in the Hamilton area. It is positioned as an intimate, relaxing spa
with special focus on a personalized and quality service.

In the current economic recession Water Lily is facing the difficulty of starting and
growing a new business in an economically diverse city, and an industry with elastic demand.
Also, there is tremendous competition in the personal care industry, foremost from nearby
spas, such as Mercedes Salon and Day Spa, and secondly from drugstores, which offer
comparable high-quality ‘do-it-yourself’ skincare products.

Due to the economic climate, particularly in Hamilton, and the nature of the industry,
with low sales, only one aesthetician, and a slowly growing client base, Water Lily must
determine how to raise awareness, and differentiate itself in order to turn a profit.

The objectives of this marketing plan are to: increase total sales by 100%, and the
number of treatments provided from 351 to 70 per month by April 2010; and to have 20% of
the total customers from May 2009 to April 2010 become regular customers2.

Water Lily will primarily target married middle-class, women, with or without children,
between the ages of 30-55 that live or work in the lower Hamilton3 area; mid-level spa-goers
looking for a retreat in which to relax and receive a quality treatment. The secondary target
market will be women aged 56-80, who live in senior’s residences or attend activity centres or
senior’s associations in the Hamilton area, and enjoy being pampered.

1
As estimated by Julie Ricottone
2
A regular customer is defined by Water Lily as: 1) a customer who demonstrates a visible pattern that she visits the spa at least once every other
month, 2) By November 2009 the customer must have visited the spa at least three times, 3) Or by April 2010, that the customer has visited the
spa at least six times at regular intervals.
3
See map of lower Hamilton EXHIBIT B
 Water Lily will be positioned as a women-only spa that offers solutions to the stress, and
concern for the well-being, of its clientele. Emphasis will be placed in the high-quality
customizable treatments, as well as the intimate setting that can be personalized.

In order to meet these objectives, both the products offered and their prices will remain
the same. As an alternative to increasing or decreasing the prices, Water Lily will utilize
promotions, customer service, and other incentives to draw in more clients. However, in
addition to in-spa services and in-spa parties, Water Lily will offer in-home spa parties and
services at senior’s residences. Personal selling is of great importance in this industry; to
ensure the most efficient approach, as well as to maximize the customization of services,
Customer Relationship Management Software will be used. Special attention will be given to
the female employees of St. Joseph’s Hospital and the members of the YWCA, given the
potential these locations represent.

Overall communications will have the creative theme, “UnWind”. The campaign will be
split into five sections within the year; each which will display helpful tips to communicate
Water Lily’s care for its customers’ well-being. The vehicles used to communicate these
campaigns are brochures and posters placed in nearby businesses, which share Water Lily’s
target market, e-mail newsletters directly from Water Lily, e-mails within St. Joseph’s Hospital’s
internal mailer, and Gold Book. A Facebook group will be created for Water Lily to invite
customers to join, and post information relating to topics relevant to the current campaign,
creating a sense of community and a rapport between the clients and the spa. To strengthen
the relationship between the spa and its clients, promotional items will be given to all new
customers on their first visit and loyalty and referral programs will be implemented.

During Breast Cancer Awareness Month, Water Lily will donate 10% of its profits to the
Canadian Breast Cancer Foundation, to show support for women and their health.

To ensure Water Lily will meet its one-year objectives and recommendations, several
controls will be implemented to monitor: sales, treatments performed, number of customers,
and advertising vehicles.
1. Recommended One Year Objectives
a. Financial Objectives
i. To increase total sales by 100%, by April 2010.
b. Overall Marketing Objectives
i. To increase the current number of treatments provided from 35 to 70 per
month, from May 2009 to April 2010.
ii. To have 20% of the total customers from June 2009 to April 2010 become
regular customers.
2. Recommended One Year Marketing Strategies
a. Target Market
i. Primary Target Market: Married middle-class women, with or without children,
who are between the ages of 30-55 and live or work in the Lower Hamilton
area. Periphery and mid-level spa goers who are looking for a retreat where
they can relax and receive a quality treatment.
ii. Secondary Target Market: Women aged 56-80, who live in senior’s residences
or attend activity centres or senior’s associations in the Hamilton area and enjoy
being pampered either at their residence or in a spa.
b. Positioning Statement
i. Water Lily Day Spa will be positioned as a female-only spa that offers solutions
to stress and concern for the well-being of its clientele. Water Lily provides high-
quality, customizable treatments, performed by a personable aesthetician, with
high-standards. Water Lily also offers competitive prices, an intimate setting
that can be personalized, and a commitment to offering clean and sterile
services.
c. Product
i. Basic treatments will remain the same.
ii. The products offered will remain the same.
d. Pricing
i. The pricing structure will remain a competitive pricing strategy.
e. Distribution
i. All of the treatments will continue to be provided at Water Lily Day Spa.
 ii. Additional distribution channels will include:
1. A “house party” with certain treatments will be provided at the request
of clients living in Hamilton.
2. Senior’s residences and activity centres in Hamilton will also be able to
have services brought to their location.
iii. The distribution of products will continue to take place within the establishment
through direct sales.
f. Selling
i. Personal selling for both products and future treatments will be carried out
during treatments. Recommendations will be based on diagnosis and reflect the
season.
ii. E-mail reminders will be sent to customers prior to their appointments, along
with current discounts, promotions and loyalty program updates.
g. Service
i. All quality measures for treatments will be maintained and Julie will remain as
the sole provider of services in all stages of the client’s experience.
ii. In order to customize services for each client and improve customer service,
ACT Customer Relationship Management Software will be used.
h. Promotions
i. Advertising
1. The overall communications campaign will have as a creative theme
“UnWind”.
2. The year will be divided into five campaigns, each one covering a
relevant target market and season. Communications issued during each
campaign will communicate useful information to the target audience.
3. Advertising vehicles to be used are:
a. Brochures which will be distributed through nearby businesses
that share a target market with Water Lily.
b. Posters displayed in the YWCA’s and St. Joseph’s Hospital
bulletin boards.
 c. Group mailers sent out by e-mail, and will be issued to
registered clients of Water Lily and employees of St. Joseph’s
hospital.
d. A Gold Book site and a Facebook group will be created to have a
presence on the internet.
e. The current banner outside of Water Lily will remain the same.
f. Promotional Items with Water Lily’s logo that will be given to
clients from St. Joseph’s hospital and given to Dr. Howard
McIsaac, Pediatric dentist.
g. Portfolio of services will be displayed in Water Lily, for
customers to review if Julie is with a client and allow them to
leave their contact information. Wizard’s Salon will also display
a portfolio of services provided.
h. A digital version of the portfolio will be used for selling when no
personal contact is available (i.e. first contact with senior’s
residences and activity centres, Facebook, and Gold Book.)
i. A front door sign will indicate that Julie is unavailable on one
side and on the flip side it will indicate to that the spa is open.
i. Sales Promotion
i. Permanent promotions will be offered to employees of St. Joseph’s hospital as
well as members of the YWCA.
ii. Offering a permanent discount will give Water Lily access to each institution’s
communications vehicles free of charge.
iii. Every Wednesday of the year will be “Senior’s Day”. Women aged 55 and up will
receive a 10% discount on all treatments performed on Wednesdays.
iv. Each campaign will have a sales promotion that relates directly to it.
v. Loyalty and referral programs will be utilized to increase overall sales.
vi. Public Relations
1. During Breast Cancer Awareness month (October) 10% of Water Lily’s
sales will be donated to the Canadian Breast Cancer Foundation.
[…]
3. Promotion Action Plan
a. Advertising
i. The year will be divided in five campaigns as follows:
1. Get Summer Sexy - May 2009 to August 2009
2. Your Day Off - September 2009 to October 2009
3. Put Your Winter Face On - November 2009 to January 2010
4. Be Smooth and Confident For Your Sweetheart - February 2010 to March
2010
5. Keep THEM Busy - April 2010- June 2010
ii. Vehicles to be used are:
1. Brochures
a. Brochures will communicate Water Lily’s position as a spa that
cares for the well being of its target market.
b. Each brochure will function as a “mini-magazine”, containing
information relating to the campaign, such as tips, fun facts and
other.
c. Contents for successive brochures will be selected by Julie from
input provided by consumers, given during visits or through the
Facebook group.
d. The Sales Promotion pertinent to each campaign will be
highlighted in the brochure.
e. Brochures will be personally distributed by Julie at the
beginning of the first week of each campaign to the following
places:
i. Hamilton Conservatory for the Arts-126 James Street
South
ii. YWCA Hamilton- 75 McNabb Street South
iii. Dr. Howard McIsaac, Pediatric dentist -212 James St.
South
iv. Anthony’s Health and Fitness- 14 Forest Ave.
v. Glow Tanning Studios- contact Nicole Morrele at 905-
521-9688.
 vi. Kumon Math and Reading Centre- 377 Mohawk Road
West.
vii. Sea Cadets- 650 Catharine St N
viii. The Coffee House - 144 James Street South
ix. House of Java-166 James Street South
f. Contents for the first brochure (Summer) will be generated by
Julie.
g. Contents for successive brochures will be selected by Julie
from input provided by consumers, given during visits or
through the Facebook group.
[…]
2. Promotional Items
a. Different promotional items will be given to first-time
customers based on the amount of money spent at Water Lily
and Julie’s discretion.
b. These items will be given after a treatment is performed and
the client has paid as a gift to welcome the client to Water Lily
and show appreciation for their business.
c. The items have been selected because they correspond to the
overall experience linked to spas: stress, planning the daily life
and seeking a moment for oneself.
d. Promotional items to be used:
i. Stress balls
1. The St. Joseph hospital staff are anticipated to
be the top clients for Water Lily, as a form of
differentiation between levels of clients they
will be given one after they spend over $50 on
their first visit.
2. Dr. Howard McIsaac, Pediatric dentist (212
James St. South) will place two stress balls in his
waiting room in return of Water Lily placing his
business cards her waiting room.
 ii. Post-it notes
1. Will be given to customers, as they are a
medium that people generally use often and
therefore Water Lily’s name will be viewed
often, and remain top-of-mind.
2. Each sheet will have Water Lily’s name, logo,
and contact information on it, but have
different copy printed on them.
3. Each post-it will have a different tip on it
mimicking those seen in the brochures. Every
fifth post-it will have treatment information
based on the tips that came before it.
iii. Candles
1. As candles are often used in spas, and are
associated with a relaxing experience of as
relaxing.
3. Front Door Sign
a. This sign will be posted when the spa is vacant or while the door
is locked while services are being performed in the back room.
b. Sign will indicate to clients they should ask for the spa portfolio,
in Wizard’s Salon for information about Water Lily’s treatments,
products and both past and current promotions.
c. Sign copy will read as follows:
i. Side 1: Someone else is relaxing at the moment; please
visit Wizard’s Salon for Water Lily’s Portfolio.
ii. Side 2: You deserve to relax, come on in.