Kinaiya Case Analysis

1. Statement of the Problem

The major concern that the Canoy family, the key owners, faced was the profitability and feasibility of the business idea, how they could make this idea a reality given their limited resources. Later on, when their daughter proposed a weekend detox program, the impartial response was an issue regarding the program’s response-drawing power. This indicates an issue with the program’s branding, or the way the idea was packaged and pitched to the customers. Their Detox Weekend brochure was informative about detox, but it lacks specific details about the service that KINAIYA was offering. The customer, after knowing the benefits and objectives of the program, will next ask the how, “How exactly do you plan to do this? What exactly will happen?” It lacks specific details such as activities and healing treatments included in the program, or at least a general itinerary. KINAIYA also does not present their unique selling proposition (USP), or what makes them different from other wellness retreats. Aside from this, there are also minor issues with their online promotional content as their social media presence is relatively low compared to competitors. Overall, service differentiation and positioning is sizeably inferior to major competitors in the area such as Nurture Wellness Village and Shanti Spa Resort.

1. Alternative Courses of Action

KINAIYA could opt to rebrand by making a lot of improvements with their service and facilities to be able to compete with strong competitors in the same area. Although they do not aim to be a big company, through expansion, they will be able to share their ideas to a bigger audience by offering more for them. By offering improved programs, itineraries that involve well-defined and powerful detox techniques such as steam and fever baths, acupuncture, pyroenergen, charcoal therapy, enemas, and other activities like fun runs, exercise circuit, swimming meditation nooks and pavilions. According to detox resort researchers and customers, an important part of the detox retreat is the beauty and serenity of the place, plus the abundance of things to do in the place. Whilst this alternative is really costly, it can generate more profit for them because more people will be attracted to try out their services.

A second alternative could be to retain their current service, since being the more affordable option to customers is also an advantage. Given that Nurture Wellness’ normal detox program is priced around 67,000-73,700 php for 2 persons, depending on the season, KINAIYA’s offer of 20,000 php for a twin room is much more affordable for those who are just looking for a simple weekend cleansing without all the luxury facilities and activities. What they could do instead is to offer something unique with their service, add a well-defined USP. For instance, they could create long-term relationships with their customers, where the weekend program can become a lifetime program so they may easily monitor their guests’ health and lifestyle practices. By offering this, they can also give future discounts, such as 30% off on the guest’s third visit. This could attract more customers because they will be encouraged to be consistent and driven to live a healthy lifestyle through this. More customers will also promote KINAIYA to friends and relatives because the lifetime program will give them a feeling that they are really monitored and taken care of personally. The only downside would be the additional costs for the benefits offered for long-term customers such as discounts and freebies, as well as promotional costs for advertising the long-term membership.

For the last alternative, KINAIYA could look into a new target market—the millennials. More and more millennials are shifting into a healthier lifestyle mostly because of trend, gym memberships are now perceived as “cool” and productive, gym and active wear are fashionable, a lot of people are looking into and trying different kinds of diets and lifestyle challenges. The healthy way of living is getting bigger and bigger due to famous bloggers and vloggers documenting their own health insights, adventures, body changes, and thus influencing more and more millennials. For detox, specifically, millennials are paying more attention now to detox programs, such as that of Fruit Magic’s Pure Nectar 3-Day Detox Juice Program. KINAIYA could modify their services to fit the needs of the health-concerned millennial. They could change their promotional materials to target more millennials. Aside from this, they could add in an accommodation feature that is also trendy among millennials today: glamping. Glamping as the primary accommodation used in their detox programs could give customers more relaxation and delight. A disadvantage could be the additional costs and different marketing strategy needed in order to implement this. Another big issue would be the purchasing power of millennials. Since Detox treatments are costly, the market would further be narrowed to millennials who are members of upper middle class to upper class families.

1. Recommendation

In terms of feasibility and cost management, the second alternative would be the best option to improve KINAIYA’s differentiation and positioning in the minds of customers. This does not require them to change or add a lot, they will simply be offering more for their customers while still being the affordable choice in the area. This also doesn’t put their past customers to waste, unlike for the third alternative, it just aims to develop stronger and longer relationships with past and new customers. It doesn’t require a huge additional amount of capital as well, unlike what the first alternative requires, since the lifetime customer value will counterbalance the extra capital spent to keep them coming back.