Background
The innovative business that attempts to join the hospitality industry and market is called Bali Yoga Retreat. The venture attempts to leverage the market opportunity and create a retreat centre where the United States residents can be spending their summer. This business will be offering services for older children and adults as it will incorporate distinct models. The main motivation behind starting this company is to offer staycation services to families who choose to take their vacations domestically. This retreat will solve the issue of expensive getaways outside the country because it will be cheap. The objectives of the business are reaching 80% of the available places and dates booked by clients. The retreat is able to provide its service to 30 people simultaneously. Therefore, the marketing campaign should be aimed at reaching and maintaining 24 clients using the retreat. The target audience of Bali Yoga Retreat are families with middle to upper-middle income who live in the United States, preferably Texas. Social media marketer firms such as Pierpont and Leadorigin will be contacted to develop a promotion campaign to reach the desired number of sales.
In the United States, most individuals are adopting a healthy life through enjoyable exercises and fun. The increased number of obese individuals is likely to push more people towards healthy retreats like yoga and mindfulness. The need for mindfulness treatments to improve mental health is also on the rise. Therefore, yoga business is likely to attract many individuals. Since most parents prefer to take staycations with their kids, incorporating kid-friendly activities will draw in a variety of clientele. The retreat will be offering timely and unique services, depending on age and gender. Yoga and mindfulness retreat centres are quite numerous in the United States because hotels and gyms have realized the market potential. As a result, the new company is probably going to encounter competition. With a competitive advantage, however, the Bali Retreat Centre will outdo the others and be among the best in the country.
Hence, the objectives of the Bali Retreat Centre are to provide an outstanding service that acts as a staycation alternative for the United States residents. The business aims at gaining a loyal customer base, and having a stable inflow of clients (Puyt et al., 2020). Bali Retreat Centre requires a start-up capital of at least $200000 to take care of rent and other utilities. Therefore, the measurable goal is to achieve the return of the investments in 3 years.
SWOT Analysis
Strengths
For one to start a retreat centre, they need to have experience or access other people with adequate knowledge, which is hard. Therefore, the Bali Yoga Retreat has this advantage, and this will deter other people from joining the industry. This idea will work well with clients of different demographics, say, children, elderly, and females in different conditions like pregnancy. Since the retreat’s main aim is to help people with staycations, incorporating childcare and dietary benefits will help it to remain relevant. Government policies like the use of eco-friendly material and environmental sustainability may affect the development of Bali Yoga Retreat. Yoga mats and other tools may not meet this policy, and this may affect the company. However, given that yoga and meditation aim to promote harmony and peace through the interaction with nature, this centre will strive to minimize the use of nonbiodegradable products by using eco-friendly materials.
Weaknesses
Retreat centres and most hospitality industries need a reputation for them to develop. Because Bali Yoga Retreat will be new, it will have no ratings. Competitors can also begin to offer similar services as Bali, immediately. An effective way of improving Bali Yoga Retreat is always to invent retreat activities that give visitors a new experience every time they are the centre to promote customer satisfaction.
Opportunities
One of the strategies to ensure growth and stability of the Bali Yoga Retreat is working with corporate clients. Hence, to gain the first loyal customers I will offer cheap staycation service to some local companies. Negotiating with the company’s representative will be simpler than negotiating with each client separately. The need to combat climate change has necessitated most Yoga retreat centres to incorporate CSR strategies in their business goals. Most companies are helping the community in planting trees and conserving the environment. Others are adopting recycling methods and use mats from degradable materials or recycled materials. They reduce the type of sourcing to decrease the carbon footprint, practice proper waste disposal.
Threats
The primary threat for Bali Yoga Retreat is competition from other retreat centres, which have been in the industry for longer times. The United States government can also come up with regulations which may impact the business. The establishment and growth of the company are at risk due to the steadily increasing prices of business insurance. There are numerous yoga retreat centres in the United States, which can offer competition to Bali Yoga Retreat. The significant ones are Esalen Institute and Kripalu Center For Yoga and Health, and they offer distinct services alongside yoga. They offer meditation, hiking and relaxation, to mention but a few. The USP of the Bali Yoga Retreat centre is the incorporation of children and their models in the facility. Younger children will get childcare services while the older ones will get their age-related training. The superior services and reduced prices will be the main differentiators. The competitors offer several services, but their prices are too high. Bali Retreat Center will be able to achieve its objectives with the aid of cost distinction.
The new venture is similar to the ideal businesses since they all face similar threats and have the same opportunities for growth. All the companies can incorporate technology in their strategies to grow and record profit. Bali, particularly, can open more branches, with time, for it to progress. It can also expand vertically by including new products and services, like selling yoga attire and equipment. Marketing and advertisements will make the venture famous, and hence more clients. Some psychological therapies require meditation, and the investment can slowly incorporate these sectors.
Marketing Mix
Bali Retreat Centre offers yoga and wellness retreats that are inclusive to all ages and are family friendly. Customers may value the family-oriented strategy of the retreat, which is not offered by other retreat centres. The price range of the services offered by the company may vary depending on the length of the stay. As the company offers affordable options, the cheapest price is $1000 for 3-day staycation for a person, while the most expensive option would be $3500 per 7-days.
Clients look for environmentally friendly locations and those that encourage meditation and mindfulness therapies. The need to remain healthy and maintain particular weights affects clients’ choices of retreat centres. Based upon these interests, the target audience will be reached by placing advertisements of Bali Retreat Centre on social media and websites related to the wellness sphere.
Reference
Puyt, R., Lie, F. B., De Graaf, F. J., & Wilderom, C. P. (2020). Origins of SWOT analysis. In Academy of Management Proceedings (Vol. 2020, No. 1, p. 17416). Briarcliff Manor, NY 10510: Academy of Management.