Case study of Spa Industry

1. Dragonfly Therapeutic Retreats:
Creating An Affordable Indulgence

2. Presented by –
Ashutosh Vyas
Team Members

3. Agenda
Case Synopsis Core Issues
Situational
Analysis
Case inferences
Recommendations

4. Case Synopsis
Georgie Yam Born and educated in Hong
Kong
After graduating from high school Tried his luck in creative trades.
He was band musician one day
And a disc jockey the
next.

5. 1976 encounter with a hairdresser on a flight
1984 Started their own saloon
1990 Left his partner and opened The Salon-
Georgie Yam
Partnered with a spa expert
2003 - Shanghai's economy experienced double
digit growth
Timeline

6. To be the market leader
To build the first world class service brand to be exported
from China
To build a strong, health new age lifestyle brand that focused on
relaxation
To build a top quality, professionaly managed company that
provided long term carrier opportunities.
To introduce a "touch of the Orient" to customers overseas.
Yam's Vision

7. Core Issue
How could the company manage rapid expansion?
Expansion without compromising the brand and its high standards.
Should company stick to the expatriate market and identify the growth
markets outside of Shanghai?
Should company fine-tune the brand offering to include Chinese clients in
their plans?

8. Why Shanghai?
• 2003 – Shanghai’s Growing Marketing Condition
• 2.7million foreigners visit
• 10-20% expected growth of Spa industry
Birth of the Idea
• High-end : Massage Parlor (RMB 800-1500)
• Low-end : Traditional Massage Parlor (RMB 30- 40)
Brand Image
• Importance of packaging (eg. Packaging costs more than candies)
Funding
• No angels, venture capitalist or private sources of equity.
• Partnership with Randal in 2005
Situational
Analysis

9. Case Inference
Exhibit 1 :- It shows the brand images i.e How it provide relaxing
lifestyle experience.
Which symbolize peace of
Mind.

10. Exhibit 2 :- It shows how he exhausted every possible idea to cost effectively
promote his spa to the target clients
A Dragonfly massage is extremely
addictive

11. Exhibit 3 :- It shows the list of all registered branches of Dragonfly.

12. Exhibit 4 :- It shows of 20 branches in China and Two branches overseas.

13. • Franchising
• Should stick to expatriate market
• Should also target niche market
• Adopt destroyers market strategy
• Provide more training

14. Thank you