Background and Facts of the Case
ARISE is a Destination-for-a-day spa that provides service with an emphasis on the health benefits of a spa treatment, fitness and well-being. The spa opened in May 11, 2009 which was founded by Kristen Chambers, a devotee of spa treatments herself. The business originated from a company named ABROAD, an international travel company in 1999 which was then sold and eventually had its shift to the spa business. Being inspired by the health benefits of spa treatments, Chambers envisioned the business having its full-time PWC (personal wellness coaches) that will help build strong customer relationships and can distinguish it amongst other spas. The spa also offers other services such as facials, massages, nail and hair care, yoga, Zumba, sauna and hydro baths, pool and relaxation areas such as garden atrium and rooms that aims to provide a total holistic and relaxation treatment to the clients.
The business is being managed by The VP of Business Operations (Sam Solti) and VP of Spa Operations (Twyla Thompson). The Director of Spa Services (Danielle Dunn) reports to the VP. During strategy sessions, the three leaders concur that ARISE’s marketing should emphasize the health benefits of regularly re-energizing the body and spirit to turn periphery customers into midlevel clients. Various strategies were thought of (i.e. spa ambiance improvement, lowering of cost of services, All-Star Team Strategy and even providing fixed salaries to their employees) in order to improve not just the quality of services, but the retention of their employees as well. Prior operation, a soft opening was launched in order to work out operational issues before the grand opening. With this, it has been identified that the critical part was selecting the PWCs. Having a strong pool of PWCs reinforces client-PWC relationship and helps keep low
References: Beer, M. & St. Clair, Lynda (August 20, 2012). ARISE: A Destination-for-a-Day Spa. Harvard Business School (Brief Cases). 9-913-521.