The document discusses opening a spa and wellness center in Dubai by Anu and Jinta. It begins with an introduction and overview of Dubai's strong economic trends and growing population. Market research shows demand for spas is driven by Dubai's fast-paced lifestyle and health concerns. Primary research found customers prefer organic products and spend between AED 1,000-20,000 annually on spa services. The proposal selects a location in Dubai Silicon Oasis and targets women. Financial projections estimate initial costs, monthly expenses, and profitability timelines. Technical feasibility finds the proposed spa fits regulatory requirements and Dubai's infrastructure.

1. ROYAL AYURVEDA SPA&
WELLNESSCENTRE
Anu and Jinta

2.  Introduction
 Economic trends in UAE
 Initial Market Analysis
 Market Planning
 Project Selection Model and Technical Feasibility
 Financial Aspects
TOPICS
Anu and Jinta

3. INTRODUCTION
Anu and Jinta

4.  ECONOMIC TRENDS IN UAE
DUBAI OVERVIEW
2015f 2016f 2017f 2018f 2019f 2020f 2021f 2022f
Nominal GDP,
US$bn
506.2 555.2 609.6 662.7 712.2 761.3 813.8 864.7
Real GDP growth,
% change y-o-y
3.9 3.8 3.9 3.6 3.3 2.5 2.4 1.3
Population, mn 8.4 8.5 8.7 8.8 9 9.2 9.3 9.5
Anu and Jinta

5. SECONDARY RESEARCH
What makes Dubai attractive?
 Visionary Leadership
 Pro-business government
 Transparent business regulations
 Economic and political stability
 Fastest growing city
 No corruption and bureaucracy
 Many expats
 Safe family-friendly lifestyle
 Tourism and shopping destination
 New Company law
 Easy and Cost effective to employ workforce
MARKETANALYSIS
Anu and Jinta

6.  Expo 2020
 Rapidly growing mid-upper and upper class (HNWI)
 Health Concerns – Stress, Chronic Disease
KEYDRIVERSFOR BUSINESS
Anu and Jinta

7. Recent boom in hotel industry and luxury is making Dubai one of the
leading destinations for future SPAs
 In luxury hotels
 Male spa trend is on the rise
 Brand focus & fashionable
 Spa for people in Dubai - going to a hotel, indulgence and a trend
 Trend toward organic and holistic
 Location/Beautiful surroundings
 Huge revenue generation - AED 11 billion by 2015
 Gaining popularity as “Spa Town”
 Rise in the proportion of working women – beauty conscious
 Population of Dubai, fast paced lifestyle - stress, health concerns
and lifestyle diseases
OVERVIEWOF SPAIN DUBAI
Anu and Jinta

8. Top Reasons of visiting spa
 Relax
 Relieve stress
 Indulgence
Awareness and Selection (Customer’s point of view)
 Aware through friends and families
 Top Customer Service Requirement
 Prior SPA Exposure
PRIMARY RESEARCH
Anu and Jinta

9.  Service and experience - KSF
 Spending for SPA on a yearly basis by a customer is primarily
between AED 1,000 to AED 20,000
 Customers visit SPAs 1 to 5 times a year and there is potential for
increase
 Overall SPA brand is more relevant than individual product brand
 Women notice brand more than men
 Friendly environment
 Consumer wants to spend at least 2 hours in the SPA for complete
relaxation
 Customer loyalty depends on service
 Customer expects healthy food: fruit, nuts, tea
 DAY SPA is the emerging business trend
 Membership – pre-paid packages key to cash flow
 ‘Kitty Party’ type events are strong revenue generators
Awareness (Investors point of view)
Anu and Jinta

10.  Small, low budget operations is becoming a trend
 Larger spas are being built for integrated wellness
 Customers prefer natural materials, rich colors and textures
 Customers don’t like clinical products, prefer organic and natural
products
 Customer expects large areas: space equals luxury
 Customer expects ‘instant results’
 Fads eagerly adopted, e.g.: snail facials
Anu and Jinta

11.  SPA customers can be very demanding
 High staff-to-customer ratio: 3:1
 Generally lower payroll costs, but increasing rapidly
 Attraction and retention of staff is a major operational challenge
 Job-hopping is the norm
 Operators reluctant to invest in training
 Most training on-the-job
 20% formal qualifications, but increasing as some countries
regulate
 Excellent execution, limited innovation by staff
 Passive, not pro-active
 Many players in the market
 Shortage of skilled labor
CHALLENGES
Anu and Jinta

12.  Initial set up costs
 Monthly amortization
 Startup month to month expenses
 Retail sales
 Monthly net profits
 Break even points
 When sales are down – special promotion, spa party,
special call to special customers
FACTORS OF SUSTAINABILITY
Anu and Jinta

13. Segmentation - Our target customers are teenage girls and
women of all age groups with average disposable income of at
least AED 5000
Location - Cedar Shopping Center in Dubai Silicon Oasis - DFZ
STRATEGY
Quality, experience and building relationship
VALUE PROPOSITION
“We help our community become a better place to live and work”
MARKETPLANNING
Anu and Jinta

14. Advertising strategies – Email ,FB, SMS, YouTube viral videos, print
Positioning – Caring employees and high quality
Presentation and Packaging – Photographs, clean, neat, hygienic, logos,
ambience and décor
Products – organic and authentic
Pricing - high pricing for exclusive services which will portray added
perceived value, competitive pricing
Promotion - Invite influential people - offer free services, for new
customers – one free package with three referrals, referrals based on
commissions, special occasion packages, kitty parties
MARKETPLANNING
Anu and Jinta

15. SERVICES
Anu and Jinta

16. Basic screening model – Industry attractiveness and
environmental stability are the key motivators for
investment
 Cost – Medium
 Profit potential – High
 Time to market – Medium
 Development risk – Medium
Financial model – NPV method
 NPV assumes that project cash flows are reinvested
at the company's required rate of return.
 NPV actually calculates the project's value
PROJECT SELECTION MODEL
Anu and Jinta

17.  Product mix – services which caters to broad range
of customers
 Capacity – normal, space and equipment utilization
 Structures – flexible
 Equipment – electricity base
 Safety of personnel – taken care
 Location and site – Dubai, DSO, Free Trade Zone
 Environmental aspects – as per statutory
requirements
 Government policies – Supportive
 Infrastructure – good
 Environmental pollution – none
 Living conditions – good
 Climate conditions - harsh
TECHNICALFEASIBILITY
Anu and Jinta

18. FINANCIALS
Anu and Jinta

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