INTRODUCTION* Cabo san viejo was founded in 1977 by Dave and FloranceBlumenthal at Palm Spring, California.* Mission- Helping people to live healthier lives by unlockingtheir hidden potential and making self-actualizedindividuals.* Nations first and leading health &wellness brands.* In 1982 Cabo was regarded “Premeir total vacation/ fitnessresort” by leading magazine.*In late 1990’s and early 2000 Cabo opened several smallerbranded Caboday spa sites .*Featured in publications such as Spa Finder,Departures,etc
Properties With comprehensive , state of the art Health - Spa services & hard work Cabo san viejo has evolved as what they are today. Operated 5 properties One full –service, overnight destination resort(Palm Springs,CA) Four smaller,CaboDaySpas:-Miami Hilton Head,SC, Aspen,CO, Natucket Island in Massachusetts. Located on 150 acres in San Bernardino Mountain. Facilities expanded to 1,00,000 square foot spa complex, 4,200 square – foot golf performance and 13,000 square-foot Aquatic centre. Accomodate 288 guests.
Massage and Body Skin care and beauty work Medical Services Staff to guest ratio is 3.2:1 Lifestyle Efficient personal Efficient & trained Management trainers reservation staff
Competitors Major destination spas such as:o Miraval (Palm Spring) offered broad array of spa and exercise opportunities and offered precise mix of targeted offerings.o Rancho La Puerta:Was billing itself worlds 1st eco resorto Golden Door (Escondido,CA):primarily was focusing female customers . Additional competition from Dayspa, beauty salons, high –end health clubs, cruise ships and vacation resorts. Competing against Hawaiian Vacation.
Clientele•Most of the customers were largely affluent, middle aged andfemales.• Approximate 3500 customers each year.• The summer clientele was younger.•There were several levels of customer. Loyal Customer Satisfied customer Dissatisfied customer.
Cabo San Viejo Customer Satisfaction,Palm Springs Location Comment Card Responses 1% 3% 1% OUTSTANDING(74%) 21 % VERY GOOD(21%) SATISFACTORY(3%) UNSATISFACTORY(1%) 74 % NOT APPLICABLE(1%)
Marketing and Sales strategy Creating brand Customer awareness ads survey and through Efficient & sending guest TV, print media trained personal & radio reservation “Thank You” staffletters to their patronage Partnership marketingReduced rates effortsin off season/ Organizing receptions Maintaining a Cross- strong sales Marketing force
S.W.O.T STRENGTHS WEAKNESS•First & leading brand •Inaccurate and incomplete customer•Wide offerings and facilities database •Little cross and direct•Excellent staff marketing •High Price OPPORTUNITIES THREATS•Diversification and •Stiff competition.expansion •Wrong Perception•Untapped market segments •Increasing consumer -•Demand will increase with customers expectationincrease in health awareness.•Increase customer loyalty
Problem faced Top of the pyramid in terms of pricing. Outdated computer system and no data base. Limited accomodation. Failure to attract male customers. Suffered complaints about lack of loyalty programs and unable to match rising expectation.
Loyalty ADDING FINANCIAL BENEFITS . ADDING SOCIAL BENEFITS. ADDING STRUCTURAL TIES :- CREATING LONG TERM CONTRACTS OR SUBSCRIPTION CHARGE A LOWER PRICE TO CONSUMER WHO AVAILS MORE SERVICES.
Challenges• Operational challenges Outdated computer system and no customer database Huge Implementation cost Tangible versus intangible rewards Increased expectations of the customers• Philosophical challenges Unbiased approach to customers Not a 100% safe Idea. Element of surprise is eliminated
Loyalty program benefits should be availed to all customers.It is not enough anymore to merely satisfy the customer-Customer must be delighted:- Membership cards Birthday and Anniversary cardsWhile satisfied customers tend to be loyal customers, loyalcustomers are not always satisfied customers.If you keep your customer happy, they will keep you inbusiness.