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Pamperzhou Day Spa Business Plan and SWOT Analysis


Pamperzhou Day Spa is a newly opened spa service provider located in Freeway County, CA. The services it offers include the whole range of day spa experience including the “seven ultra-chic, ultra-comfortable treatment rooms with the finest spa linens and equipment,.. massage in a variety of styles,.. facial and body treatments” (WSJ, 2009), etc. The spa is located near the hair cutting and nail salons so that to ensure a comprehensive approach to treating the customers. These business plans reflect the developmental trends of Pamperzhou Day Spa, the financial performance of the spa, and project its strategy and developmental goals for the future.

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Company Summary

Pamperzhou Day Spa is “a Sole Proprietorship owned by Madame Pamperzhou” (WTS, 2009). The company is located in a densely populated area where the daily traffic amounts to 64, 000 cars. The strategic goals of the company include the increase in sales rates and customer return rates by 90% for the next 6 months: “Our mission is to run a profitable business by providing high-end therapeutic massage and aesthetician services in a caring, upscale, professional environment” (WTS, 2009). Trying to achieve this mission, Pamperzhou Day Spa focuses on marketing, professionalism, and unique treatments as its basic values. The company offers a wide variety of services and employs only the best professionals in the area of spa business.

Financial Summary

The assets of Pamperzhou Day Spa include the equipment used for massage and other procedures. The company possesses massage table equipment for the sum of $3,795, aesthetician equipment for $2,800, decor and furnishings for $13,000, envision software & equipment amounting to $4,000, and signage and back bar supplies for the sum of $8,500 (WTS, 2009). Total start-up expenses of the company amounted to $80,450, while total assets currently equal $84,550 and total liabilities include $35,000.


The current state of the spa industry in the USA and Canada is rather favorable. There are over 12, 000 spas in these countries, among which every seven out of ten spas are day spas. The overall annual income of the spa industry amounts to $12 billion, while day spas bring $7 billion of income and display 25% of annual income growth. In Freeway County, CA, there are also several spas but none within the five-kilometer radius offers the same variety of services as Pamperzhou Day Spa does, which makes the competition in the area not fierce and almost absent. Therefore, the company focuses on the clients inhabiting the five-kilometer area of Culway Plaza, the very location of Pamperzhou Day Spa, and having average annual income levels of $25, 000 and more.

Business Strategy

The focus of the company’s business strategy is agreed with its mission: “Our strategy is to implement the most aggressive marketing and networking in the community – followed by the best services in the business” (WTS, 2009). Pamperzhou Day Spa implements competitive prices for the services provided by professionals of the highest qualification possible. The marketing strategy is oriented on local advertising and seasonal promotion with great emphasis on mass media and online informational sources. The total sales for the past years, $823,685 in 2006 and $900,000 in 2008 allow the company to forecast the growth in sales for the next two years planning to have sales at the levels of $946,000 in 2009 and $982,000 in 2010.

Table 1. SWOT Analysis.

Strengths Weaknesses
Clear development strategy that allows the company to see its goals and means of their achievement Lack of experience in the area of spa business
Professional staff providing the high quality services to customers Insufficient developmental level of spa business in the area of Freeway County, CA
Stable funding providing updated equipment and allowing to hope for sales increases in the near future Absence of actual competition that might facilitate Pamperzhou Day Spa improvements
Opportunities Threats
Lack of competition allows the company to take the major market share and focus on every group of potential customer Failure to timely update equipment might decrease the levels of customers’ satisfaction and cut the customer base
Dense population of the area can provide Pamperzhou Day Spa with numbers of clients Employment of non-professional or not qualified staff might damage the public image of the company


  1. Business Academy. (2009). Day Spa Business Plan.
  2. Marketing Teacher. (2009). SWOT Analysis.
  3. WSJ. (2009). Pamperzhou Day Spa.

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StudyCorgi. "Pamperzhou Day Spa Business Plan and SWOT Analysis." November 1, 2021.


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StudyCorgi. (2021) 'Pamperzhou Day Spa Business Plan and SWOT Analysis'. 1 November.

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