Transcript of "Sample Slides from Med Spa Research"
August 9, 2012 Sample Research on Spa Industry &Baton Rouge Residents 1
The State of the Spa Industry Medical spas have grown by 80% over the past 2 years – now numbering 4,250 nationally.Source: From International Spa Association: http://www.experienceispa.com/media/facts-stats/;Boston.com, February 2012, sourcing International Medical Spa Association 2
The Boom of Anti-Aging - $832 million market • 69% of consumers believe how you age is genetic, and external products are more hope than help • 69% believe that the earlier they start using age prevention remedies, the better off they are – Those 25-54 are most likely to use facial skin products.Source: Skin Inc, March 2012, “Opportunities Evident in Mintel Consumer Insight Study on Anti-Aging” 3
Top cosmetic procedures in 2011 point to thosesame areas Top Surgical Procedures, 2011 Liposuction Breast Augmentation Tummy Tuck Eyelid surgery Breast lift Top Nonsurgical Procedures, 2011 Up Up 5% 5% YOY YOY Botulinum toxin type A Hyaluronic acid-based fillers Laser hair removal Male procedures were up 2% last year, mostly in Microdermabrasion the surgical segment – face lifts, rhinoplasty, ear surgery, and liposuction are most common – IPL treatments usually to remove wrinkles, bumps or fat to “erase perceived faults.” Subtlety and self-esteem are key.Source: WebMD, March 2012, “The Most Common Cosmetic Surgery in 2011 Was…”;Skin Inc, November 2011, “Male Cosmetic Surgery Patients Prefer Improvements by Subtracting Faults” 4
Emerging Trend: Men “Male grooming segment is an untapped and potent opportunity” Cleansers, moisturizers, anti-aging products • Men’s facial skincare market grew 11% in $$ sales from 2011 to 2010. •Yet only 25% of men currently use facial skin care products (facial cleansers, moisturizers, lip and eye products, and anti-aging treatments). Men are more likely to use basic products rather than those with specialized benefits. For men to use a product, he first must be aware that there is an underlying need that requires addressing To reach the male client directly, you may want to have an FAQ section on your website designed and focused just for men. This may help welcome them before they ever even walk through your door.Source: Skin Inc, March 2012, “Kline Reports Consumers Driving Active Ingredient Development”;NPD Group, February 2012 “NPD Reports on the Men’s Grooming Industry: A Market Poised for Growth” 5
Active ingredients noticed by consumers; Results expected “Consumers are still seeking value but they are prepared to pay more for products that offer specific benefits and visible results.” Hot on that list are anti-aging, anti-acne, and slimming products Active ingredients commonly seen as assets: – Vitamins – Collagen – Co-enzyme Q10 – Hyaluronic Acid “The growing inclusion of higher-end active ingredients in lower-end products, where cost is particularly sensitive, has encouraged specialty active suppliers to think beyond the claimed performance of their active ingredients and focus on the price/efficacy ratio of their products”Source: Skin Inc, March 2012, “Kline Reports Consumers Driving Active Ingredient Development” 6
Additional Trends Natural, Green, Sustainable gaining speed Botanical actives segment expected 4% growth in U.S. by 2015 “The consumer is active. The consumer has set standards: products are to be as natural and effective as possible. Canny marketers and formulators are listening, responding and innovating”Source: Skin Inc, March 2012, “Kline Reports Consumers Driving Active Ingredient Development” 7
The Baton Rouge Metro area had a population of more than 800,000 in 2010, up 14% from 2000. The fastest growing areas were The fastest growing areas were Ascension and Livingston -- not only fast Ascension and Livingston -- not only fast within Baton Rouge but also within the within Baton Rouge but also within the state of Louisiana as a whole. state of Louisiana as a whole. QUICK FACTS: • The median age of Baton Rouge Metro is 34.2 • The median household income is $48,294 (higher than the state’s median of $42,505, but lower than the national average of $50,046)Source: Baton Rouge Area Chamber Economic Development, 2010 Census 8
Forecasted Growth 2010-2015 Areas within Areas within Ascension, East Ascension, East Baton Rouge, and Baton Rouge, and East Feliciana are East Feliciana are expected to show expected to show some of the highest some of the highest growth rates over growth rates over the next 5 years. the next 5 years.Source: Baton Rouge Area Chamber Economic Development 9
Your Customer• Female 35-54• Upper Income• Clients spend between $900-$1200 per year 10
Gender Demographics of Baton Rouge Metro Baton Rouge is a great city for the younger demographic: #10 on Top Ten Cities for Young Adults, from 2011 Business Journals #2 Best Cities for Young Adults, from 2010, Portfolio.com • 51%, or 408,228 are female • The median age of women in Baton Rouge Metro is 35. YOUR TARGET: • Of all women in Baton Rouge metro area 109,109 are 35-54, or 27% of all women • 12,532 Baton Rouge metro area women between 15-50 gave birth in the past year – they could use a pampered spa day!Source: Baton Rouge Area Chamber Economic Development, 2010 Census 11
Women 35-54 Marital Status Breakdown U.S. National Avg for W35-54 Single / Never Married 15% Married 62% Widowed/Separated/Divorced 23% Baton Rouge Metro area has a higher concentration of single women 35-54 than the U.S. average.Source: 2010 Census (Only looking at women ages 15 or above) 12
Baton Rouge Women by Age & Education: How to read: There are 51,921 women between 35-44 years old in the Baton Rouge Metro area. Of How to read: There are 51,921 women between 35-44 years old in the Baton Rouge Metro area. Of those 50K women 31% have a four-year college degree or higher, amounting to 16,175 total women those 50K women 31% have a four-year college degree or higher, amounting to 16,175 total women in that age group. Women 25-34 and 45-64 also have high levels of education in Baton Rouge. in that age group. Women 25-34 and 45-64 also have high levels of education in Baton Rouge.Source: 2010 Census (cannot be broken into 35-54 based on age groupings they provide) 13
Marketing to Women Top 10 elements of advertising that make you “take notice” The price is easy to find 45% It provides proof or details on its quality 43 The message is relevant to my life 39 It is easy to remember 28 It provides comparisons to competition 26 It offers something free or highly discounted 26 It provides ratings/reviews from other sources 25 It is entertaining 25 It provides testimonials from actual users 21 The graphics are appealing 20Source: Ipsos Mendelsohn Study, January 2012, Wave 4 of Women, Power & Money 14
Women need a break…from stress and money 71% agree “Life is more complex today than it was before the recession” 58% agree “Financially, I am worse off now than I was before the recession started” In Louisiana, women’s median earnings are among the worst in the nation at $30,600 and only 22% have a four-year college degree. Be sensitive to the demands facing post-recession femalesSource: Ipsos Mendelsohn Study, January 2012, Wave 4 of Women, Power & Money;Best and Worst States for Women, March 2012, iVillage 15
Take the guesswork out of living better… 6 in 10 (64%) global citizens think they need to live better, but 8 in 10 (81%) say they wish they had a recipe or plan for living better. Give your customers a plan to live better!Source: Ipsos, http://www.ipsos-na.com/news-polls/pressrelease.aspx?id=5550 16
With upward movement comes competitive drawbacks:each location must fight harder for market share: Breakdown of the Stats 1999 2010 +/- Change % Change Locations 5,700 19,900 14,200 249% Visits 90,700,000 150,000,000 59,300,000 65% Revenue $ 5,000,000,000 $ 12,800,000,000 $ 7,800,000,000 156% Visits per Location 15,912 7,538 (8,375) -53% Revenue per Location $ 877,193 $ 643,216 $ (233,977) -27% Revenue per Visit $ 55.13 $ 85.33 $ 30.21 55%Source: From International Spa Association: http://www.experienceispa.com/media/facts-stats/; 17
What does that mean to you?Manta indicates Medical Spas of Baton Rouge has $580K in annualrevenue, within the top three health spas in the area. The Average U.S. Spa made $643,216 in 2010 It would take $63,216 additional annual sales to reach the national average. Your clients spend $900-1200 a year. You need 70 additional clients to spend $900 a year to reach the national average. That’s 6 new clients a month 18
Buzz Marketing Ideas for the Spa Industry1. Offer an advanced facial to appeal to clients who frequent 11. Create a catalog and organize promotions your facility for the skin health benefits and, most offering gifts with purchases during the important, to encourage them to visit the facility once a holiday season. month, providing a great opportunity to cross-market 12. Offer discounts on services for large services. companies.2. Offer free microdermabrasion services; this will allow you 13. Organize a direct mailing to your clients to retail skin care products and recommend services. twice a year to promote events and specials.3. Include a complete educational consultation to help 14. Create an e-newsletter to educate your clients understand the different available treatment clients about your services and products. options. 15. Trade gift certificates with flower shops,4. Organize seasonal promos to encourage clients to try travel agents and networking groups. different services. 16. Donate to different charity events. 17. Network with high-end restaurants, car5. Use weekly promos to create excitement in your facility. dealerships and boutiques.6. Host educational evenings twice a year to introduce your 18. Participate in women’s trade events. clients to all the services you offer. 19. Produce a DVD that showcases all your7. Hold anniversary events every year and invite journalists services and products, and show it on a TV in in order to make it a VIP event. your reception area.8. Send birthday cards to your clients that include a gift 20. Organize evenings of education in golf clubs certificate or discount on medical spa services. and gyms.9. Perform community service in your area to create 21. Provide add-on services. If you offer four branding while helping a good cause. makeup lessons/applications per week at $55 each, that will result in $11,440+ per10.Produce a loyalty program and other offers that provide year in additional income. medical spa dollars and discounts.Source: Skin Inc, February 2011, “Marketing Your Unique Medical Spa.” 19
The multi-media multi-tasking world On an average day, U.S. Adults report spending 11 hours consuming media contentSource: eMarketer, March 2012, “Media Multitasking Brings Challenges and Opportunities for Marketers” 20
For questions contact:Amy AndersonSOLUTIONS THROUGH RESEARCHamy@solutionsthroughresearch.com480-363-8455 21
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