Anu and Jinta

ROYAL AYURVEDA SPA & WELLNESS

CENTRE

Anu and Jinta

Introduction

Economic trends in UAE

Initial Market Analysis

Market Planning

Project Selection Model and Technical Feasibility

Financial Aspects

TOPICS

Anu and Jinta

INTRODUCTION

Anu and Jinta

ECONOMIC TRENDS IN UAE

DUBAI OVERVIEW

2015f 2016f 2017f 2018f 2019f 2020f 2021f 2022f

Nominal GDP, US$bn

506.2 555.2 609.6 662.7 712.2 761.3 813.8 864.7

Real GDP growth, % change y-o-y

3.9 3.8 3.9 3.6 3.3 2.5 2.4 1.3

Population, mn

8.4 8.5 8.7 8.8 9 9.2 9.3 9.5

Anu and Jinta

SECONDARY RESEARCHWhat makes Dubai attractive? Visionary Leadership Pro-business government Transparent business regulations Economic and political stability Fastest growing city No corruption and bureaucracy Many expats Safe family-friendly lifestyle Tourism and shopping destination New Company law Easy and Cost effective to employ workforce

MARKET ANALYSIS

Anu and Jinta

Expo 2020 Rapidly growing mid-upper and upper class (HNWI) Health Concerns – Stress, Chronic Disease

KEY DRIVERS FOR BUSINESS

Anu and Jinta

Recent boom in hotel industry and luxury is making Dubai one of the leading destinations for future SPAs In luxury hotels Male spa trend is on the rise Brand focus & fashionable Spa for people in Dubai - going to a hotel, indulgence and a trend Trend toward organic and holistic Location/Beautiful surroundings Huge revenue generation - AED 11 billion by 2015 Gaining popularity as “Spa Town” Rise in the proportion of working women – beauty conscious Population of Dubai, fast paced lifestyle - stress, health concerns

and lifestyle diseases

OVERVIEW OF SPA IN DUBAI

Anu and Jinta

Top Reasons of visiting spa Relax Relieve stress Indulgence

Awareness and Selection (Customer’s point of view) Aware through friends and families Top Customer Service Requirement Prior SPA Exposure

PRIMARY RESEARCH

Anu and Jinta

Service and experience - KSF Spending for SPA on a yearly basis by a customer is primarily between

AED 1,000 to AED 20,000 Customers visit SPAs 1 to 5 times a year and there is potential for

increase Overall SPA brand is more relevant than individual product brand Women notice brand more than men Friendly environment Consumer wants to spend at least 2 hours in the SPA for complete

relaxation Customer loyalty depends on service Customer expects healthy food: fruit, nuts, tea DAY SPA is the emerging business trend Membership – pre-paid packages key to cash flow ‘Kitty Party’ type events are strong revenue generators

Awareness (Investors point of view)

Anu and Jinta

Small, low budget operations is becoming a trend Larger spas are being built for integrated wellness Customers prefer natural materials, rich colors and textures Customers don’t like clinical products, prefer organic and natural

products Customer expects large areas: space equals luxury Customer expects ‘instant results’ Fads eagerly adopted, e.g.: snail facials

Anu and Jinta

SPA customers can be very demanding High staff-to-customer ratio: 3:1 Generally lower payroll costs, but increasing rapidly Attraction and retention of staff is a major operational challenge Job-hopping is the norm Operators reluctant to invest in training Most training on-the-job 20% formal qualifications, but increasing as some countries

regulate Excellent execution, limited innovation by staff Passive, not pro-active Many players in the market Shortage of skilled labor

CHALLENGES

Anu and Jinta

Initial set up costs Monthly amortization Startup month to month expenses Retail sales Monthly net profits Break even points When sales are down – special promotion, spa party,

special call to special customers

FACTORS OF SUSTAINABILITY

Anu and Jinta

Segmentation - Our target customers are teenage girls and women of all age groups with average disposable income of at least AED 5000

Location - Cedar Shopping Center in Dubai Silicon Oasis - DFZ

STRATEGY Quality, experience and building relationship

VALUE PROPOSITION “We help our community become a better place to live and work”

MARKET PLANNING

Anu and Jinta

Advertising strategies – Email ,FB, SMS, YouTube viral videos, print

Positioning – Caring employees and high quality

Presentation and Packaging – Photographs, clean, neat, hygienic, logos, ambience and décor

Products – organic and authentic

Pricing - high pricing for exclusive services which will portray added perceived value, competitive pricing

Promotion - Invite influential people - offer free services, for new customers – one free package with three referrals, referrals based on commissions, special occasion packages, kitty parties

MARKET PLANNING

Anu and Jinta

SERVICES

Anu and Jinta

Basic screening model – Industry attractiveness and environmental stability are the key motivators for investment Cost – Medium Profit potential – High Time to market – Medium Development risk – Medium

Financial model – NPV method NPV assumes that project cash flows are reinvested

at the company's required rate of return. NPV actually calculates the project's value

PROJECT SELECTION MODEL

Anu and Jinta

Product mix – services which caters to broad range of customers

Capacity – normal, space and equipment utilization Structures – flexible Equipment – electricity base Safety of personnel – taken care Location and site – Dubai, DSO, Free Trade Zone Environmental aspects – as per statutory requirements Government policies – Supportive Infrastructure – good Environmental pollution – none Living conditions – good Climate conditions - harsh

TECHNICAL FEASIBILITY

Anu and Jinta

Budget and NPV .xlsx - Shortcut.lnk

FINANCIALS

Loan.xlsx - Shortcut.lnk

Anu and Jinta

CONCLUSION

Anu and Jinta