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April 11, 2023

Sample Research on Spa Industry &

Baton Rouge Residents

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The State of the Spa Industry

Source: From International Spa Association: http://www.experienceispa.com/media/facts-stats/; Boston.com, February 2012, sourcing International Medical Spa Association

Medical spas have grown by 80% over the past 2 years – now numbering 4,250 nationally.

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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”

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Top cosmetic procedures in 2011 point to those same areas

Top Surgical Procedures, 2011

Liposuction

Breast Augmentation

Tummy Tuck

Eyelid surgery

Breast lift

Top Nonsurgical Procedures, 2011

Botulinum toxin type A

Hyaluronic acid-based fillers

Laser hair removal

Microdermabrasion

IPL treatments

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”

Male procedures were up 2% last year, mostly in the surgical segment – face lifts, rhinoplasty, ear surgery, and liposuction are most common – usually to remove wrinkles, bumps or fat to “erase perceived faults.” Subtlety and self-esteem are key.

Up 5%

YOY

Up 5%

YOY

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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).

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”

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.

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Active ingredients noticed by consumers; Results expected

Active ingredients commonly seen as assets: – Vitamins – Collagen – Co-enzyme Q10 – Hyaluronic Acid

Source: Skin Inc, March 2012, “Kline Reports Consumers Driving Active Ingredient Development”

“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”

“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

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Additional Trends

Source: Skin Inc, March 2012, “Kline Reports Consumers Driving Active Ingredient Development”

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”

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The Baton Rouge Metro area had a population of more than 800,000 in 2010,

up 14% from 2000.

Source: Baton Rouge Area Chamber Economic Development, 2010 Census

The fastest growing areas were Ascension and Livingston -- not only fast within Baton Rouge but also within the state of Louisiana as a whole.

The fastest growing areas were Ascension and Livingston -- not only fast within Baton Rouge but also within the 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)

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Forecasted Growth 2010-2015

Source: Baton Rouge Area Chamber Economic Development

Areas within Ascension, East Baton Rouge, and East Feliciana are expected to show some of the highest growth rates over the next 5 years.

Areas within Ascension, East Baton Rouge, and East Feliciana are expected to show some of the highest growth rates over the next 5 years.

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Your Customer

• Female 35-54

• Upper Income

• Clients spend between $900-$1200 per year

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Gender Demographics of Baton Rouge Metro

• 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!

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

Source: Baton Rouge Area Chamber Economic Development, 2010 Census

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Women 35-54 Marital Status Breakdown

Source: 2010 Census (Only looking at women ages 15 or above)

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.

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Baton Rouge Women by Age & Education:

Source: 2010 Census (cannot be broken into 35-54 based on age groupings they provide)

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 in that age group. Women 25-34 and 45-64 also have high levels of education in Baton Rouge.

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 in that age group. Women 25-34 and 45-64 also have high levels of education in Baton Rouge.

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Marketing to Women

Source: Ipsos Mendelsohn Study, January 2012, Wave 4 of Women, Power & Money

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 43The message is relevant to my life 39

It is easy to remember 28It provides comparisons to competition 26

It offers something free or highly discounted 26It provides ratings/reviews from other sources 25

It is entertaining 25It provides testimonials from actual users 21

The graphics are appealing 20

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Be sensitive to the demands facing post-recession females

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.

Source: Ipsos Mendelsohn Study, January 2012, Wave 4 of Women, Power & Money; Best and Worst States for Women, March 2012, iVillage

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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

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With upward movement comes competitive drawbacks: each location must fight harder for market share:

Breakdown of the Stats1999 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/;

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What does that mean to you?

Manta indicates Medical Spas of Baton Rouge has $580K in annual revenue, 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

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Buzz Marketing Ideas for the Spa Industry

1. Offer an advanced facial to appeal to clients who frequent your facility for the skin health benefits and, most important, to encourage them to visit the facility once a month, providing a great opportunity to cross-market services.

2. Offer free microdermabrasion services; this will allow you to retail skin care products and recommend services.

3. Include a complete educational consultation to help clients understand the different available treatment options.

4. Organize seasonal promos to encourage clients to try different services.

5. Use weekly promos to create excitement in your facility.6. Host educational evenings twice a year to introduce your

clients to all the services you offer.7. Hold anniversary events every year and invite journalists in

order to make it a VIP event.8. Send birthday cards to your clients that include a gift

certificate or discount on medical spa services.9. Perform community service in your area to create branding

while helping a good cause.10.Produce a loyalty program and other offers that provide

medical spa dollars and discounts.

Source: Skin Inc, February 2011, “Marketing Your Unique Medical Spa.”

11. Create a catalog and organize promotions offering gifts with purchases during the holiday season.

12. Offer discounts on services for large companies.

13. Organize a direct mailing to your clients twice a year to promote events and specials.

14. Create an e-newsletter to educate your clients about your services and products.

15. Trade gift certificates with flower shops, travel agents and networking groups.

16. Donate to different charity events.17. Network with high-end restaurants, car

dealerships and boutiques.18. Participate in women’s trade events.19. Produce a DVD that showcases all your

services and products, and show it on a TV in your reception area.

20. Organize evenings of education in golf clubs and gyms.

21. Provide add-on services. If you offer four makeup lessons/applications per week at $55 each, that will result in $11,440+ per year in additional income.

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The multi-media multi-tasking world

On an average day, U.S. Adults report spending 11 hours consuming media content

Source: eMarketer, March 2012, “Media Multitasking Brings Challenges and Opportunities for Marketers”

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For questions contact:Amy AndersonSOLUTIONS THROUGH RESEARCHamy@solutionsthroughresearch.com480-363-8455