2
The Ruby Rose
TSiBA & Northeastern Business Consulting Project
Consultants: Jessica Young, Ciana Bonfiglioli, Stacey Mitchell, Aqeelah Safiedien, Taariq Gabriels, & Leon Davids
Table of Contents
Marketing Segmentation 3
Marketing Segmentation: Wellness Coaching 3
Target Market 3
Becoming a Wellness Coach 3
Responsibilities of a Wellness Coach 4
Revenue Potential 5
Marketing Segmentation: Wellness Workshops 5
Target Market 5
Marketing Strategy 6
Revenue Potential 7
Marketing Segmentation: Corporate 8
Target Market 8
Profit Potential 9
Marketing Segmentation: Tourism 9
Target Market 9
Marketing Strategy 10
Competitive Analysis and Pricing 11
Revenue Potential 13
Online Marketing 13
Social Media Guide 13
Website Guide 14
Human Resources 16
Employment and Free Lance Contracts 16
Resources 17
Exhibits 18
Exhibit 1: Pricing Structure 18
Exhibit 2: List of Potential Corporate Clients 18
Exhibit 3: Website Design 19
Exhibit 4: Employment Contract 19
Exhibit 5: Freelance Contact Information 24
Marketing Segmentation
Marketing Segmentation: Wellness Coaching
The Ruby Rose is integrating wellness coaching into the business. Wellness coaching is about giving people individualized attention to help them discover and develop their goals to a healthier living.
Target Market
The Ruby Rose has to look at what their clients are looking for in a wellness coach. Most people are looking for someone who will give them individual attention, who will keep them motivated, and who will correct their bad habits. Just about everyone has a vision of his or her ideal life and a wellness coach can help.
The Ruby Rose will be able to serve this target market because the business is not only about healthy living; it is about helping people discover their true beauty from the inside out. This is what makes The Ruby Rose so unique. People will be attracted to the core essence of feeling beautiful because “If you feel good, you will look good, and you will do good”.
Becoming a Wellness Coach
There are four steps that The Ruby Rose must complete in order to become the best wellness coach. Step one is to decide on what area you want to focus. Most wellness coaches tend to offer general advice on nutrition, life style, goal setting, stress management and exercise. In order to become the best wellness coach, you should focus on what you are truly passionate about. Step two is to enroll in a recognized program for wellness coaches so that people will feel comfortable about using them as a source of guidance for the total body and inter beauty transformation. Step three is to find a mentor who can help guide you. Step four is to gain experience in wellness coaching because many people seek help by experienced wellness coaches. The Ruby Rose should consider taking photographs of clients when doing body transformation sessions and get testimonials from clients who have discovered their true inner beauty. This will help The Ruby Rose establish its credentials.
Responsibilities of a Wellness Coach
A wellness coach is one who is trained to help peers reduce high-risk behaviors and risk factors such as smoking, poor illness, self-management, inequity nutrition and infrequent exercise. A wellness coach is there to help guide and mentor clients with their physical aspects and poor mental conditions. A wellness coach can influence peers by focusing on personal health, wellness, strengths and the needs of the individual.
In order to be an effective wellness coach, you can write down ideas about wellness goals and exercise programs that the clients can do in order to achieve their goals. Additionally, you can help your client find their own solutions for the health problem or concerns that they are faced with by asking them questions that will help them understand their situation. Lastly, you need to help people understand that wellbeing is a lifestyle, which consists of good nutrition, productivity and exercise, adequate sleep, participation in meaningful activities and connecting with people that are supportive. A basic understanding of the eight-wellness dimensions will also be beneficial so that you can better understand your client’s experiences, intentions and needs. The eight elements are spiritual, environment, financial, occupation, social, intellectual, emotional and physical.
The Ruby Rose should follow this link: (www.webmd.com/balance/guide/life-and-wellness-coaches) in order to learn more about becoming a wellness coach. This research and knowledge will help you become the best wellness coach in Cape Town. Based on the session we had with you, we can see that wellness coaching is one of your passions and we believe that you should pursue it because becoming a wellness coach will keep you motivated in a job that you love.
Revenue Potential
After completing competitor research on wellness coaching, we believe The Ruby Rose can charge people R500 per month. The Ruby Rose has the ability to charge this price because the company is providing an individual service. The Ruby Rose can also consider an alternative payment where clients can choose to spend a minimum of R 500 on HerbaLife products in place of the R 500 monthly fee. Based upon this pricing structure, The Ruby Rose can make R 5000 if it takes on 10 clients in one month.
Marketing Segmentation: Wellness Workshops
Target Market
The Ruby Rose’s target market would ideally be the middle to lower income market, as many customers would enjoy a seminar/talk for a reasonable price. What they are paying for isn’t a product or a service, instead it is more like an interactive talk that focuses on the needs of the customers.
It is advisable that The Ruby Rose focus on five different client-types, one type could be directed at the women who have self-confidence challenges. This workshop could include topics such as how to carry yourself and how to be comfortable in your own skin. It could also address simple topics such as doing affirmations in the mirror. This topics could be included in a workshop titled, “Extraordinary Jane”. Another client-type that The Ruby Rose may consider including in the workshop program would be focused on the ordinary guy who wants to lose weight. Being overweight can be contributed to a lack of self-confidence and self-worth. This segment would be the exact same as the “Extraordinary Jane”, the difference would be that it is directed at men. This client-type could be called the “Extraordinary Joe”. The Ruby Rose should also consider having a workshop that is directed at youth. These talks could include topics such as peer pressure, dating, body image, etc. This client-type could possibly be called the “Wise Youth”. The Ruby Rose could also be interested in is a topic that would focus on men who want to increase their physical stature. This workshop could include nutritional talks and teaching men the best methods to accomplish their goals. Many men are in the dark when it comes to weight training and body building, so this workshop could be a very good platform for them to do things the right way. This category of workshop could be called “Building Muscles”. A similar offering could be made for women who have similar goals concerning their muscle tone. This class could be called the “Woman Tonic”.
There are many workshops that The Ruby Rose can offer to fit the client they are targeting. The few suggestions that were provided are a starting point for what The Ruby Rose can offer. The Ruby Rose shouldn’t be limited to the above suggestions; there are endless possible topics that could be covered, as long as the right people are employed to do the talks. As time goes on and The Ruby Rose grows to be a reputable company they can choose to expand to other workshops such as food workshops on how to make healthy meals where the customers can interact and make their own dishes at the workshop.
Marketing Strategy
The Ruby Rose has hosted several workshops in the past but it wasn’t enough to enter the market. The competition currently isn’t that big when it comes to workshops that are focused on health, fitness and wellness. In order to successfully enter this segment, The Ruby Rose must clearly identify who the customers will be. This step has been addressed in the target section of the workshops. It is also important to set a clear timeframe within which the desired target share is to be obtained. Once a clear market share has been identified, it is crucial to identify potential points of entry. With this also comes the responsibility of finding out who the competition is and determining if the new solution is strong enough to compete with the existing competition. The Ruby Rose will then also be required to set a price for the workshops. The different workshops should ideally be the same price for now. The price that is set up has to have a balance between the affordability of the customers and the feasibility of the business. The Ruby Rose must also has to take into consideration what the competition is charging. The Ruby Rose should clearly define milestones such as market share and sales targets so that everything can be tracked in order to see if the workshops are a success or not.
Revenue Potential
The Ruby Rose can choose a pricing strategy that caters to both the middle/lower income gap, as well as, for the middle-income gap. The lower pricing could be for workshops that focus on a bigger audience such as those that are open to the public. The private and slightly higher priced workshops could be targeted at the middle class. Under this pricing strategy, if The Ruby Rose does two workshops a month and does a workshop for approximately 30 customers at the price of R 100 per person, she would make a profit of R 3000. Seeing that The Ruby Rose would ideally do two workshops a month, her income would be a total of R 6000 excluding expenses incurred. If The Ruby Rose wants to host private workshops, the prices could possibly range from R200 to R250 per person. The private workshops would usually accommodate less customers at a time so if 10 customers sign up for a workshop, The Ruby Rose would have the opportunity to earn R 2000 to R 2500.
The Ruby Rose intends on hosting more workshops in the future, as it is an easy way of making a profit, as not much cost is involved in the initial set up of the workshop. This could prove to be a profitable portion of the business as there are numerous client-types that can be reached.
Marketing Segmentation: Corporate
Target Market
Currently, The Ruby Rose believes that the Corporate Segment is the most valuable segment in which to infiltrate its product offerings. The product offerings that the Ruby Rose offers are workshops as well as spa zones. The workshops offered are as follows: wellness workshops, aesthetics workshops, image workshops, and wine tasting workshops. The Ruby Rose offers these workshops and spa zones to corporate offices. However, consistent deals are not prevalent with the corporate offices. Therefore, this market segment is not providing the business with a continuous source of revenue.
Included in the Exhibits is a list of corporations that have shifted their organizational culture to that of wellness and good health practice. According to the research done on these Corporations, The Ruby Rose could get in contact with the relevant HR departments and establish a network that could in turn lead to future business dealings. As Candice, the owner of The Ruby Rose believes that this segment is the most valuable segment to target.
The Ruby Rose has not been able to get into contact with the relevant target market that would boost its revenue. Therefore, as Consultants, we have helped Candice to identify her target market by putting her in the shoes of the Business’ prospective clients. Candice originally thought that targeting the corporate sector was ideal because it had the highest revenue potential. However after investigating the revenue that has come in from corporate events over the past year, we have identified that The Ruby Rose has not had enough corporate programs to have been profitable. Whenever Ruby does a corporate event, it is used more as a way of marketing the business so that it could attract potential clients.
Profit Potential
Ruby Rose has not been charging a sustainable fee for the services that they offer. Therefore, after doing some research and through the guidance of Professor Shaughnessy we suggest charging three times the cost price as the best pricing strategy as it offers the business sustainability long term. However, with all the expenses that Ruby Rose incurs on an event day, we have agreed that setting the price of product offerings to four times the cost is relatively more effective for Ruby Rose in the Long Term.
This strategy will allow the business to operate more successfully in the long run both financially and operationally. This segment can be extremely profitable to the business, therefore if Candice can network successfully with the list of corporates that are given in the exhibits section, then the Ruby Rose will be increase its market share within this segment.
Marketing Segmentation: Tourism
Target Market
In order to successfully reach the tourism segment, The Ruby Rose must cater to a younger age demographic and provide offerings that are relevant to both international and domestic tourists. According to WESGRO’s 2014 Regional Tourism Trends Report, Cape Town welcomed a share of 42% oversees visitors and 58% domestic visitors. Top international markets include visitors from Germany, the United Kingdom, and the United States. Top domestic markets include visitors from Gauteng, the Western Cape, and the Eastern Cape. Additionally, The Ruby Rose must have a strong online presence as most visitors are young and are conducting research through the web and word of mouth. On average, visitors are between the age range of 21 – 35. This young age range supports the rising trend in youth/backpacker travel and educational tourism.