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Responding to legal changes in the market environment through revision of a marketing strategyMedi-spa Case Study

Natalia [email protected]

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Founded in 2009, this medi-spa is located in Moscow, Russia.

females25-45middle-to-high income

Company Background

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Spa’s key target audience:

Spa’s core service offerings:

Medical aesthetic and rejuvenation treatments (laser treatments, medical-grade dermabrasion and peels, fillers and botulinum toxin injections, radio frequency face and body therapy etc.)

Marketing budget

Focus on marketing & advertising investments:

20-30% of gross revenue

Marketing approach

Key activities: outdoor and print advertising

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Problem description

In Russia, the majority of aesthetic procedures is legally considered as medical.

As of January 1, 2014 Russia bans all medical advertising (Amendment to Federal Law #38-FZ “On Advertising” from 2013-11-25)

Despite significant marketing investments, a detailed marketing audit has not been conducted in several years.

The company’s web page is not properly developed with very limited amount of information, low usability and visibility in search engines (Google, Yandex —Russia’s largest search engine).

Its social media presence is minimal (rarely updated group pages in Facebook and VK — the largest social network for Russian speakers) and not thought-through.

Legal loophole — in its current state, this new regulation does not cover “providing educational information” both online and offline as well as social media

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• New legal regulation

Political factors

• Economic growth and purchasing power

Economic factors

• Impact of emerging technologies

• Belonging and self-presentational needs

• Lifestyle trends

MarketingCurrent situation

The spa does not aim at reaching a new target audience or at introducing a new product/service.

However, its existing marketing strategy needs to be updated due to an influence from its macro environment.

PEST analysis

Social factors

Technological factors

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1Situation analysis

Where is the company now?

2Objectives

Where does the company want to get

to?

4Strategy

Marketing planningSOSTAC model

3Strategy

How is the company going to get there? (The

Big Picture)4Tactics

How is the company going to get there? (The

Detail)

6Control

Who is going to contribute, how much

will it cost and how will the company know if this

is working?

5Action

Who is going to do what and when?

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Marketing

audit needs to be conducted to

identify legal breaches and to determine

whether any elements of current marketing strategy can be still

used.

Communicate to the target audience in a

legally appropriate manner

through

offline activitie

s and digital

marketing.

Offline:

- Informational brochures

- Thematic evenings

- Focus on personal brand

Online:

- Webpage

- SEO

- Social media

Situation analysis Objectives Strategy Tactics

Marketing planningSOSTAC model

Action Control

Shift towards online communication and knowledge sharing.

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External Internal

To identify potential

legal breaches

- Can be conducted by an internal auditor after additional training.

- Should be carried out immediately to avoid

fines.

Marketing auditMarketing environment

To identify if any

elements of existing

marketing strategy

can still be used (both on- and offline)

Action

Implications

HR:

Thematic seminar for the spa’s marketing team (external business coach).

Finance:

Training cost: € 150/person (*3 marketing managers) = €450

Forfeit: breach of long-term contracts with the outdoor advertising company and magazines.

- Offline communication can be reviewed

internally- Online (i.e. website)

should be analyzed by an external professional

provider.

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Online marketingOverview

Online marketing is the cornerstone of the spa’s new marketing strategy.

- Website (knowledge sharing and usability).

- SEO.- Social media.

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Online marketingWebsite: knowledge sharing and usability

Knowledge sharing can be beneficial not only for the spa’s offline communication but also for its online presence. According to the new legal regulation, medical businesses are still allowed to share general treatment information, practice personal branding (advertising people, not services) and provide links to their suppliers’ websites (i.e. indirect advertising).

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Marketing audit

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“Shift towards knowledge sharing”

Offline marketing

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Mobile solutions


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Offline marketing

Online marketing

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MarketingCurrent situation

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Orders per month Earnings

Population More 1 mln. Less 1 mln. More 1 mln. More 1 mln. Less 1 mln. More 1 mln.

Goods 1 150,000 80,000 50,000 22,500 12,000 7,500

Goods 2 200,000 120,000 75,000 30,000 18,000 11,250

Goods 3 100,000 60,000 30,000 15,000 9,000 7,500

Total 450,000 260,000 155,000 67,500 39,000 23,250

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Thank You

Business

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