CABO SAN VIEJO

INTRODUCTION
1977 : Founded by Dave & Florence Blumenthal in California to change the unhealthy lifestyle of the people

1982 : Premier Total Vacation/Fitness Resort

1990s & 2000s : Opened several CaboDaySpa sites

OFFERINGS
One full-service overnight resort 4 CaboDaySpas Fitness Centers Beauty Saloons

Meditation
Sports Facilities

Aquatic Centers
Sun-Bathing Areas Spiritual Awareness Classes

Healthy Cooking Classes

COMPETITORS
Category Destination Spas Firms Miraval, Canyon Ranch, Lake Austin, Golden Door Offerings Extensive Spa & exercise offerings, General Focus on wellness

Local day Spas & Saloons

Oasis Day Spa, Le Petite Retreat

Massage, Skin Care, acupuncture, Saunas

Cruises

Princess, Celebrity, Silversea, Seabourn Four Seasons Resort Hualalai Esperanza Resort The Sports Club

Gourmet Cuisines, Spas, fitness centers, casinos Weight Training, fitness classes, aquatic facilities Fitness & Personal training, Cafes, bars, Day care

Vacation Resort

High-End health Clubs

MARKETING STRATEGY
6 persons in marketing department 6 regional sales managers 12 reservation specialists 2 public relations officers

MARKETING APPROACH
The goal was to meet specific revenues and occupancy targets.

Challenge was not to educate consumers about Cabo San Viejo concept but evoke right emotions so that people are reminded that they want to feel special.
Spending on advertising was only a small percentile of the gross profits. It spent most on the brand awareness type ads. (i.e. online, radio, print ) They send occasional bulletin to the customers to inform about latest developments. They did very less cross-marketing between CaboDay Spa and Palm springs.

SALES STRATEGY
Cabo San Viejo was one of the few spas to maintain a sales force. Sales team sold group and individual packages to high end travel agencies in US and Canada. Goal was to keep occupancy at optimal level( i.e. 270). Reduction of rates by about 35% in summers. Organise receptions in major cities, introducing doctors , physiologists and other staff to the prospects. The main aim was to instill correct perception about the brand

CUSTOMERS

Loyal Customers base included:

affluent, middle aged & female

Added 3500 customers each year

65-70% word of mouth 30% direct referrals by travel agent Repeat guest compromise between 50-60% of all guest nights.

PROBLEMS FACED BY CUSTOMERS

1. 2.

Misconception in minds of the people: Its only for women Lack of awareness campaign
Low customers staff ratio (3:2:1) Outdated computer systems and no customer database. Complaints about lack of loyalty program for their loyal customer. Limited clientele due to expensive rate.

LOYALTY PROGRAM
To build loyalty loyalty Analysis show some

Should Cabo San Viejo implement a rewards program? Who should qualify? How should the points be accumulated? What should the rewards look like? Should rewards only apply to Cabo San Viejo or should they be redeemable at other places? If latter, then what types of partners?

CONCLUSION
Creating awareness among people towards their Health Status. Differentiated its product from other competitors like Miraval, Canyon Ranch. Efficiently distinguishing its Marketing Approach and Sales Approach. Seeking Customers Satisfaction and live up to their rising expectations. Customer Acquisition and Retention. REWARD PROGRAM : A Curse or A Boon.

Presented by Gunjan Khurana

Kanika Sharma Rupali Nangwani Shikha Shubhangi Singhal Vandana Menon

JUSTIFICATIONS
Mounting competition; Aging demographic customer base; Important for synergies between day spas and resort. Customer Retention Indirect customer Acquisition Not having a loyalty program would mean

we are too good, we dont need your business and well be fine whether you come back or not.

BASIS FOR ACCUMULATION OF POINTS

Number of Nights; Number of Visits; Dollar amount Spent.

The other question that worried them was whether and how to reward guests who had already shown substantial loyalty?

REWARDS CAN LOOK LIKE:

This could be done in the following ways: Enhanced Guest Recognition; Tangible Benefits; Special Guest Benefits. Wrigley was more inclined towards Guest

recognition. Others believed it to be problematic and favored tangible rewards other than tacky price discounts.

IN WHICH FORM
To grant certificates redeemable at potential partners (e.g. Neiman Marcus, Tiffanys) after a certain patronage. whether it would help build loyalty for resort.

To select partners in a way that could sustain the prestige of the program and the brand.
Their loyalty program had to be classy & understated. They wanted to change persons behavior but didnt want it to be crass.