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Spa (n): A place that offers therapies for de-stressing and other health benefits. Includes massages, body polishes, body wraps and facials.
An Invitation to Build The Largest Spa Chain in the World
More women joining the workforce Men becoming more conscious of their looks
Extended working hours Longer commuting times
Higher work-related pressures Stiffer targets Deadlines Bad posture
Higher disposable incomes
More international travel for work as well as leisure
Higher spending on products and services that enhance one’s looks and self-image
Growing search for relaxation options closer to home
Activities that take one’s mind off work becoming popular
Preventive measures to reduce mental and physical stress being sought
Lower guilt in pampering oneself
More exposure to spa services
Changes in Urban Lifestyles Changes in Consumer Behavior
Changing Lifestyles are leading to change in consumer behavior
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The Indian wellness market is large but the wellness market is still nascent
Indian wellness services market: Rs. 11,000 Crores p.a.
Expected growth: 30-35% for the next 5 years
Services included
Slimming centers
Spas
Alternative treatments
Salons
Ayurvedic treatment centers
Cosmetic procedures etc.
Indian Spa market: Rs. 700 Crores p.a. (2009)
Source: FICCI and E&Y report on Indian Wellness Market, 2009
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Types of Spas
What is a Spa? A spa is a place that offers therapies for relaxation, general well being and beauty. Includes massages, body polishes, body wraps and facials. Usually unisex
Types of Spas Day Spas Conveniently located in neighborhoods and do not provide residential accommodation Destination Spas Offer residential accommodation for guests. Services start from a couple of days and extend up to a month. Hotel Spas Located in a hotel. Spa services are individually available off the menu and not necessarily as a package Medi-spas Offer treatments that require medical supervision and include treatments like botox, laser resurfacing etc
Day Spa is the fastest growing category within the spa market
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The potential for spa market is extremely high
Current Market Size*: Rs. 700 Crores p.a. (Rs 1200 Crores p.a. internal estimates for 2013) Potential Market Size: Rs. 5,500 Crores p.a. Calculation of Potential Market Size No. of adults above LSM 5 in top 27 cities of India** = 2.75 Crores X No. of visits to a spa per annum = 2 per person (assumption) X Spend per visit per person = Rs. 1000 (assumption)
*Source: FICCI and E&Y report on Indian Wellness Market, 2009
** LSM (Living Standards Measure) is a segmenting tool used by Hindustan Unilever. LSM 5 would represent consumers of mass premium brands
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Four Fountains De-Stress Spa plans to fill gaps in the Indian spa market
• Prices that are less than 50% of prices charged by other comparable spas. Holders of prepaid cards get a 60 min full body massage for as low as Rs. 599/-
Affordability
• Set up 300 spas across the top 50 cities of India Availability
• Prime residential neighborhoods in each city Accessibility
Awareness
Experience
• Innovative marketing campaigns aimed at educating consumers about the health benefits of spa services
•Professional: Trained and audited therapists •Hygiene & Privacy: Same-gender therapies, Use of disposable underclothes in all therapies
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FFDS has a significant cost advantage compared to its competitors
The FFDS model has the following cost advantages which allow it to keep prices affordable Lower Set-Up Cost Per Spa: Rs. 55 L compared to Rs. 80 -150 L spent by other spas.
Low on fancy equipment like Jacuzzi, dry flotation bed etc. that increase capex but have very low demand Architectural innovations such as unisex multi functional rooms lead to better space utilization and lower capital expenditure
Lower Operating Expenditure Lower lease rentals negotiated through strong Projects team Tighter cost-controls on consumables and utilities
Higher Capacity Utilization Significantly higher capacity utilization compared to competition Innovations like Happy Hour discounts (up to 50% on weekdays) to fill lean periods allow lower cost per therapy
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Professional top management ensures transparency in operations
Anurag Kedia Chemical Engineer from IIT Bombay PGDM from IIM Ahmadabad Worked with TAS, KPMG Consulting (3 years)
Saurabh Garg Chemical Engineer from IIT Bombay PGDM from IIM Ahmadabad Worked with HLL (3 years)
Sunil Rao Commerce Graduate from Sydenham College of Commerce and Economics PGDBM from SP Jain Institute of Management and Research, Mumbai Worked with HLL (3 years)
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Organisation Structure
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Board
Chief Projects Officer
Anurag Kedia Sunil Rao
Chief Marketing Officer
Chief Operations Officer
Saurabh Garg
Franchisee Manager
Marketing Manager
Business Development Managers & Executives
Head of training
HR Managers
Finance & Purchase Manager
Area Managers
Spa Managers
Interior Designer
Media has covered the FFDS story everywhere
The Economic Times DNA Business Standard Pune Mirror
Femina Economic Times Sakaal Times
Online Media Youthcurry.blogspot.com Startupdunia.com Shantanughosh.com
UTVI
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Comprehensive SOPs help the franchisee run the business effectively
Standard Operating Procedures (SOPs) have been developed which are used during training and audit Guest Relationship Executive (GRE) SOP GRE Day Checklist Spa Manager (SM) SOP SM Weekly Schedule Field Visit & Spa Audit Checklist Housekeeping & Room Preparation Checklist Grooming Checklist Weekly Meeting Agenda
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Recruitment & training is done by the company to ensure quality
Recruitment
Skill & competency mapping and tests Spa Managers & GREs Therapists
Training
Spa Managers & GREs trained in existing spas apart from class room sessions Therapists trained in the training center Refresher training is provided to everyone at regular intervals
Primary focus during training is to ensure adherence to SOPs
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Employee Motivation Programs to ensure optimal performance by employees
Monetary Incentives For achieving customer satisfaction score targets For achieving revenue targets For up-selling
Contests for the front desk and managers to achieve targets Monthly Awards
Most hardworking employee (Therapist with maximum no. of therapies) Most enthusiastic employee (GRE who has sold maximum no. of pre-paid plans) Employee of the month (Therapist with the highest customer satisfaction score at every spa)
Annual awards function Preference to internal employees for new positions and Promotions Birthday celebrations of all employees at the spas Quarterly picnic for the entire organization Gallup Survey every 3 months to gauge employee engagement
Quartely Picnic - Mahabaleshwar
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Spa Photographs SPA PHOTOGRAPHS
Spa Photographs SPA PHOTOGRAPHS
Current Operations
No. of Locations
Operational (20) : Kolkata (2), Mumbai (3), Pune (6), Bangalore (5), Goa (1), Delhi (2), Gurgaon (1) Pipeline (10) : Bangalore (4), Pune (2), Chennai (2) , Hyderabad (2)
No. of Guests Served : 250,000+ No. of Employees: 180+ Training Academy: Dedicated training academy in Pune & Delhi
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Responsibilities of the Franchisee & the Brand
Franchisee Brand
Run operations on a day to day basis. Commit 5 to 6 hours/ day Adhere to SOPs and guidelines provided by the company Keep employees motivated Control costs Keep the spa ambience in a good Condition Ensure cleanliness & hygiene at the spa Ensure implementation of local marketing activities Maintain books of accounts & records in the required formats
Agree on a catchment with the franchisee and help the franchisee to identify a property Work with the architect and contractor to build the spa Recruit & train manpower Conduct marketing activities in coordination with the Franchisee to generate footfall Conduct audits and provide feedback to the franchisee for improvement in performance and higher efficiencies
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