© 2007-2008 Spatality US Brands, LLC. and Nectar International Holdings, Ltd. All rights reserved. 1 pre-opening marketing plan guidelines
© 2007-2008 Spatality US Brands, LLC. and Nectar International Holdings, Ltd. All rights reserved. 2 table of contents Pre-Opening Activities ............................................................................................................................. 3 Categorization of Nectar Types ............................................................................................................. 3 Tools for Pre-opening Marketing Activities ............................................................................................ 4 Pre-opening Tactics for a Rebuild or New Spa in an Already Established Hotel .................................. 5 Pre-opening Mktg Schedule for a Rebuild or New Spa in an Already Established Hotel ...................... 8 Pre-opening Tactics for a New Nectar Spa inside of a New-Build Hotel or Stand Alone .................... 10 Pre-opening Mktg Schedule for a New Nectar Spa inside of a New Build Hotel or Stand Alone ........ 10 Pre-Opening Budget .............................................................................................................................. 12
© 2007-2008 Spatality US Brands, LLC. and Nectar International Holdings, Ltd. All rights reserved. 3 pre-opening activities This section will detail those specific marketing activities you should use to promote your Nectar spa prior to its opening. In most cases you will have a minimum budget of $25,000US during the 60 days prior to the pre-opening date to promote the spa. How you choose to spend these marketing funds is solely up to you based on your specific local market conditions and opportunities, as long as the funds are spent to promote the spa in some fashion. However, the following represents a reference of how you may wish to spend these funds in a pre-opening marketing capacity. CATEGORIZATION OF NECTAR TYPES In the interest of providing you with the most actionable pre-opening guidelines, we have divided Nectar spa types into two categories: 1. Rebuild or new-build of a Nectar spa within an already-established hotel 2. Build of a new Nectar spa inside of a new-build hotel or as a stand-alone spa These are so divided because some of the recommended pre-opening marketing activities vary slightly depending on the category. Also note that these are guidelines. We realize that in most cases your budget will not allow you to employ every single pre-opening marketing tactic that is recommended within these pages. So you will need to allocate your budget in a manner that best fits your situation.
© 2007-2008 Spatality US Brands, LLC. and Nectar International Holdings, Ltd. All rights reserved. 4 TOOLS FOR PRE-OPENING MARKETING ACTIVITIES Overall, the tools in the pre-opening marketing guidelines that are available to you include: In-hotel materials Flyers Table tent cards (for use in hotel restaurants, bars and in-room) Key card stuffers Receipt presenters Banner In-hotel signage (called "Roll-up signs") Construction signage Sales office signage Out-of-hotel marketing Print ad template Direct mail template Press release template Construction signage Sales office signage Templates for these tools are available in the Nectar Style Guide manual.
© 2007-2008 Spatality US Brands, LLC. and Nectar International Holdings, Ltd. All rights reserved. 5 PRE-OPENING TACTICS FOR A REBUILD OR NEW SPA IN AN ALREADY-ESTABLISHED HOTEL The guidelines for pre-opening marketing tactics for a rebuild or new spa in an alreadyestablished hotel are divided into three main sections: 1. Preparation 2. Ordering of materials 3. Action Preparation Your pre-opening preparation and planning should begin no later than three months prior to opening, preferably four months out. These tasks ask you to do the following: • Prepare media plan • Prepare direct mail list • Work with hotel management to place promotional materials throughout the hotel • Determine the PR approach 1. Media Plan: Determine your print advertising options and media schedule. Advertising can be an effective tool in getting the word out. However, it can be expensive, and you won’t want to spend your entire budget on simply advertising, as tempting as that might be. The reason for this is that one marketing tactic alone rarely will yield the results we are all seeking. So use it wisely. One method of getting the most out of an advertising budget is to contact your local print advertising representatives to find out if they are willing to trade spa services for advertising space. You should find that many media outlets will be open to this offer because they can use offered Nectar services as gifts or incentives for their other advertising clients. In general, try not to run ads that are smaller than ¼ page of the size of the paper. Smaller ads tend to get lost in the clutter and are often not read. Also, while it is best to run a print ad in color, which costs more, you may find that you can only afford to run ads in black and white. This is okay. Publications you will need to research can include:
© 2007-2008 Spatality US Brands, LLC. and Nectar International Holdings, Ltd. All rights reserved. 6 • Daily newspapers • Weekly community newspapers • City/urban magazines • Online offerings for each of the aforementioned 2. Direct Mail List: Direct mail is another recommended tactic for your Nectar pre-opening. For in-hotel Nectars, a sizeable percentage of customers will come from the hotel itself, however, for the spa to be successful additional customers will also need to come from outside the hotel. In addition, many hotel customers visit the same hotel (e.g. for business purposes) on a regular basis, and you will want to capture that market as well. One of the more effective methods of reaching a pre-determined customer base is to send a direct mail piece announcing the coming opening of Nectar. Some type of offer, such as a percentage off of a first treatment, is encouraged. A standard direct mail artwork template has been included in your Nectar Style Guide manual, and we encourage you to use it and customize it to best fit your needs. As for the direct mail list, it is recommended that you partner with a local direct mail house or list broker that can create a manageable list based on the target demographic of Nectar. Other parameters to consider in building this list should be: • The geography. Focus on a two-mile or 3.5-kilometer radius around the property. • Other demographics. Ask your list broker to create a custom local list for you based on qualifying factors such as magazine subscription lists. • Hotel list. If located in a hotel, make sure to include the hotel’s regular customers on this list, particularly if it is an urban hotel. This is a critical audience. The direct mail piece should be distributed approximately four weeks ahead of opening. Be prepared for approximately six weeks of pre-work time spent on customizing your direct mail piece, gathering your lists, and developing a precise direct mail budget to include: • Printing • Mailing List Cost • Postage • Handling 3. Work with hotel management to place promotional materials throughout the hotel: The hotel itself presents a significant marketing opportunity to pre-promote Nectar. Make sure to work with hotel management to determine what avenues are available for promotion. Such avenues include:
© 2007-2008 Spatality US Brands, LLC. and Nectar International Holdings, Ltd. All rights reserved. 7 Table tent cards on tables within hotel restaurants and bars Table tent cards to be displayed in-room Promotional signage placed in strategic locations throughout the hotel Key card stuffers: These would be small promotional messages inserted into the room key holder (often an envelope) by hotel check-in staff Receipt stuffers: Promotional messages inserted into the check booklet of a hotel-restaurant. 4. Determine the PR approach: Simply put, media relations are the suggestion of story ideas to local media in the hopes that your product or service will be covered within the editorial spaces. In this case, we want Nectar to gain media coverage prior to opening. This is achieved through various means, but generally it can happen with a pitch letter to local reporters who cover the hospitality “beat,” followed by a follow-up phone call or email to inquire about their interest. Instead of building your own local media list and making the pitch yourself, we recommend carving out a portion of your pre-opening budget to hire a local PR practitioner to “pitch” your Nectar opening story. The objective for this tactic would be to see a story or announcement appear in local publications in advance of the opening. Please keep in mind that timing is everything; if it is announced too early prospective customers might forget about it by the time your Nectar opens. Two to four weeks in advance of opening would be ideal. A pre-opening press release template is included in your Nectar Style Guide manual. Ordering of materials Nectar has created most of the marketing materials you will need; all you need to do is work with your regional corporate headquarters, or a local design services provider, to customize the materials where warranted. For example, a print ad will need to include your specific Nectar address/location. Follow the recommended timeline regarding ordering of materials. Action After you have developed your pre-opening strategy and have all of your tools ready, it’s time for action, or in other words, promotion. Please note the schedule below and begin to implement your pre-opening plan so that you are driving maximum traffic to the spa from the first day it is open.
© 2007-2008 Spatality US Brands, LLC. and Nectar International Holdings, Ltd. All rights reserved. 8 PRE-OPENING MARKETING SCHEDULE FOR A REBUILD OR NEW SPA IN AN ALREADY-ESTABLISHED HOTEL The following is the recommended pre-opening schedule for a new Nectar spa in an alreadyestablished hotel: Month 1 Month 2 Month 3 Month 4 Pre-opening Pre-opening Pre-opening Grand opening PRE-OPENING TACTICS [preparation] Determine print ad media placement 9 Create direct mail list 9 Determine customized menu treatments 9 Work with hotel management to determine placement of promotional materials 9 Determine PR approach (hire PR professional?) 9 [order materials] Order flyers 9 Order table tent cards 9 Order key card stuffers 9 Order receipt presenters 9 Order roll-up signs 9 Order announcement press release 9 Order new staff press release 9 [action] Place table tent cards 9 Place key card stuffers 9 Place receipt presenters 9 Place roll-up signs 9 Customize/order print ad from headquarters 9 Customize/order direct mail piece from headquarters 9 Place and run print ad 9 9 Distribute direct mail piece 9
© 2007-2008 Spatality US Brands, LLC. and Nectar International Holdings, Ltd. All rights reserved. 9 Distribute announcement press release (with any available renderings/photos) 9 Distribute new staff press release (with spa director photo) 9
© 2007-2008 Spatality US Brands, LLC. and Nectar International Holdings, Ltd. All rights reserved. 10 PRE-OPENING TACTICS FOR A NEW NECTAR SPA INSIDE OF A NEW-BUILD HOTEL OR A STAND ALONE The guidelines for pre-opening tactics of a new Nectar inside a new hotel or a new Nectar as a stand-alone spa are very similar to that of a Nectar inside an already-established hotel. The big difference, however, is that there isn’t an existing hotel and hotel customer base to attract to your Nectar prior to opening. This means your marketing will have to work even harder. Of course, the same pre-opening advertising, direct mail, and press release templates are available. And there are a few other tools available to you as well, such as construction signage and sales office signage (if you have a sales office). In addition, we encourage you to work out a trade arrangement with local restaurants where you trade Nectar services for the ability to place table tent information on their tables or at the bar. PRE-OPENING MARKETING SCHEDULE FOR A NEW NECTAR SPA INSIDE OF A NEWBUILD HOTEL OR A STAND ALONE The following is the recommended pre-opening schedule for a new Nectar spa inside a newbuild hotel or a stand-alone Nectar spa. Month 1 Month 2 Month 3 Month 4 Pre-opening Pre-opening Pre-opening Grand opening PRE-OPENING TACTICS [preparation] Determine print ad media placement 9 Create direct mail list 9 Determine customized menu treatments 9 Determine PR approach (hire PR professional?) 9 Work with local restaurants in a cross-trade effort 9 [order materials]
© 2007-2008 Spatality US Brands, LLC. and Nectar International Holdings, Ltd. All rights reserved. 11 Order flyers 9 Order table tent cards (as part of trade with local restaurants) 9 Order receipt presenters (as part of trade with local restaurants) 9 Order announcement press release 9 Order new staff press release 9 Order construction site banner 9 Order sales office signage 9 [action] Place table tent cards (as part of trade with local restaurants) 9 Place receipt presenters (as part of trade with local restaurants) 9 Customize/order print ad from Nectar 9 Customize/order direct mail piece from Nectar 9 Place and run print ad 9 9 Distribute direct mail piece 9 Distribute announcement press release (with any available renderings/photos) 9 Distribute new staff press release (with spa director photo) 9 Place construction site banner 9 9 Place sales office signage 9 9
© 2007-2008 Spatality US Brands, LLC. and Nectar International Holdings, Ltd. All rights reserved. 12 pre-opening budget As mentioned previously, your pre-opening budget will vary depending upon the size of your spa. Also remember that you will not be able to employ all of the tactical possibilities outlined in the preopening guidelines. Instead, you will need to assess your needs and apply your budget depending upon what you feel is most needed during the pre-opening period. For reference, the following sample chart allows you to determine approximate printing/production quantities for the various preopening tactics based on your cost and budget constraints. Use this chart as your menu as you construct your customized pre-opening marketing plan. PRE-OPENING MATERIALS COSTS SAMPLE TOTAL Flyers quantity 500 1000 2000 1000 Cost $520 $540 $581 $540 Table Tent Cards 500 1000 2000 1000 Cost $929 $952 $1,005 $952 Receipt Presenters/Key Card Stuffer 2,500 5,000 10,000 5000 Cost $553 $621 $750 $621 Roll-up Signs 1 2 3 1 Cost $600 $1,200 $1,800 $600 Construction Site Banner 1 2 3 2 Cost $481 $962 $1,443 $962 Sales Office Signage 1 1 Cost $1,200 $1,200 Overall, use the following as a budget guideline for pre-opening expenses: Tactic Timing Budget Media Relations (PR) Two to four weeks out 25%* Direct Mail Four weeks out 20% Advertising Four weeks out 40% In-Hotel Promotion Eight weeks out 15% Total $100% *If hiring a local PR practitioner. If you choose to do this yourself, you will save on this portion of the budget. We recommend, however, that you hire a PR practitioner. Of course, if at any time you have questions or need advice on how to best spend your pre-opening budget, you should contact the Nectar Denver, CO USA office for counsel. The best way to do this is to email us at: [email protected]