Evoe Spring Spa: A Positioning Dilemma

Group D5
Q1. Identify and explain the variables used to define the consumer
segments in the case.
Affordability There is a marked difference in the willingness to spend on health
and wellness products/services across the segments. While the Snails are not
willing to spend unless there are medical problems, the Climbers are also careful
with their spending. On the other end of the spectrum, the Racers are willing to
spend on such products/services provided they were convinced of the benefits,
while the Sprinters had the maximum propensity to spend amongst all the
segments.
Attitude towards Wellness The segments also differed in their attitudes and
approaches towards wellness. The Snails are a reactive bunch that will make
lifestyle changes only in the case of an ailment or problem. The Climbers on the
other hand, are highly image-conscious and are looking for beauty and
gratification. The Racers and Sprinters are both proactive seekers of health
and wellness information while the Racers are more inclined toward health
benefits, the opinion leader segment of Sprinters were looking for both health
benefits and indulgence.

Q2. Who is the target audience for Evoe Spring Spa? Why?
The target audience should be the segment that is already convinced of the value of the
feel-good, pampering experiences in a spa, but is looking out for more affordable
options. The Climbers segment fit the bill, because of the following reasons:

Image-conscious - These consumers are looking for beauty and fitness services
that will give them a flawless personal experience. They emulate movie stars and
models and follow their fitness regimes. Hence, they have already been sold to
the idea of the benefits of spa services.

Price-conscious - Although they are looking for instant results and gratification,
they are still careful with their spending on the health and wellness sector. An
affordable service like that offered by Evoe Spring Spa will thus be an attractive
option for this segment.

Willingness to experiment The younger members of this segment are not

very brand-loyal, rather they show an inclination to experiment and spend on
new items and services. They will be more receptive to a new brand like Evoe
Spring Spa.

Q3. Which of the three positioning concepts identified by Evoe would you
recommend? Why?
Based on the target segment identified, the Affordable Indulgence positioning
strategy is recommended. The underlying assumption of this strategy that the target
population broadly understands what spas are and are motivated to try spa therapies if
prices are lowered highly resonates with the characteristics of the our Climbers
target segment.

Apart from the primary target segment of Climbers, we can also expect the
Sprinters to be drawn to Evoe Spring Spa for the higher-order solutions and indulgent
experiences it has to offer. Finally, in the long term, when Evoe Spring Spa has
established a reputation of providing quality services, it might be able to attract a chunk
of the Racers segment as well, converting them to Evoe-loyalists.