This was a project I developed along with two more people for our Direct Marketing class for a small business in order to increase their database of customers.

1. La Biang
Thai
Massage
-VKC Corporation-
Cristina Parilli
Sureeporn Vijakkanawong (Kay)
Yu-Chieh Chiang (Vivian)

4. Company Background
• Founded in 2005
• Family owned business
• Located on 1301 Polk
Street, San Francisco
CA 94109
• Traditional Thai
massage
 Source: La Biang Thai Massage

5. Current Business Card
 Source: La Biang Thai Massage

6. Current Postcard
 Source: La Biang Thai Massage

8. Target Market
80% 20%
Female Male
Aged 25-45 Aged 30-60
Medium to high income Medium to high income
American Professional workers
Asian

10. SWOT Analysis
Strengths Weaknesses
 Comfortable local and nicely Very conservative family
decorated business
 Certificated Thai traditional  Low investment budgets
massage practitioners  No customers database system
 Well organized family  limited amount of
business and easy to manage practitioners
 Single decision maker  Low advertising investment
 Good reputation and positive  No marketing expert position
feedbacks from customers
(Yelp.com)
 Profitable business since its
inauguration
 New second Thai massage
place
 High foot traffic in its location

11. SWOT Analysis (cont.)
Opportunities Threats
 Increasing alternative health  Strong direct competition
care treatments demand  Strong indirect competition
 High awareness of spa centers (Others alternative health care
as a good option to relax providers)
 Excellent customers retention  Low barriers to entry in the
opportunities industry
 Attracting offers for new and  Different legal requirements
loyal customers for practitioners
 Largest industry acceptance in  Customers injury
California State

13. Industry Analysis
• Based on non traditional services
 Acupuncture
 Massages
 Yoga
 Meditation
• Treatment for health problems
• Large industry acceptance in California state
• Revenue is expected to growth in next years
 Source: IBISWorld

14. Industry Analysis (cont.)
 Source: IBISWorld

15. Industry Analysis (cont.)
 Source: IBISWorld

17. Competition
Direct Indirect
 Suchada Thai Massage Chinese Massage
Bay Thai Massage Gym and Yoga class
San Francisco Massage Beauty salon and spa
 Source: Yelp

19. Direct Marketing Strategy
• Retain our loyal customers
Require more information to update database
• Acquire new customers
Use the new application form to correct
customers’ information
• Increase short-term revenues
• Expand target market for Thai Traditional
massage service
• Increase brand awareness
• Build in-house database

21. DM One Year Campaign
The Offer
 Register for a member got free continuity member
card
 Buy 5 Traditional Thai massage get another 1 for
free
Direct Marketing Channel
 Email
 Direct mail
Duration
 The offer start Jan 01,2012 – Dec 31,2012

23.  Source: NextMark

24. Direct Mail
Creative

25. S p ec
ia l O
This
ffer
won’
t ta k
e to o
JOIN long
OUR
ME MB E
GET RSH
6M ASSA & IP
GES
FOR
ONL
Y TH
E PR
ICE
OF 5
.
“ARE YOU STRESSED? DO YOU FEEL EXHAUSTED??”
Help is here for you…. At
La Biang Thai massage
Nothing better than trying our Traditional Thai Massage
CALL US to make appointment today
http://www.labiangthai.com
1LBT000A
 1.415.931.7692
Address: 1301 Polk Street SF CA 94109
Refer to this code or take it with you for the offer

26. E-Mail
Creative

27. RELAX…. Having trouble viewing this email? Click Here
With a Traditional Thai Massage @
La Biang Thai
Massage
JO
IN
NO US
W
5+
FR 1
EE
CALL US to make appointment today
 1.415.931.7692
2LBT000A
Address: 1301 Polk Street SF CA 94109 Activate to this code to get the offe

28. Old Application Form New Application Form

29. Member ID card
La Biang Thai (415)931-7692
Traditional Thai Massage & Reflexology
1301 Polk St./ Bush San Francisco CA 94109
Customer's name Date Issued
Member's I.D.
You are our passion!! www.labaingthai.com

30. Member Form
La Biang Thai (415)931-7692
Traditional Thai Massage & Reflexology
1301 Polk St./ Bush San Francisco CA 94109
Become our member you will get more benefit…
Name: Last Name:
Address:
Email :
Member I.D. : (To Be generate)

31. Loyalty Member Card
La Biang Thai (415)931-7692
Traditional Thai Massage & Reflexology
1301 Polk St./ Bush San Francisco CA 94109
☼ ☼ ☼
☼ ☼ ☼Free
You are our passion!! www.labaingthai.com

33. Media Plan
Media Unit/Format Quantity/ Frequency Total Qty
(Examples) Circulation/
Reach/
Impressions
Direct Direct Mail 5,000 3 15,000
Mail Package
E-mail HTML 5,000 6 30,000
Total 45,000

34. Time Table
1 Year Campaign (Direct Mail + E-mail)
Year One Circulation/Flight Dates
Month
Quantity Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Direct
Mail 33.33% 33.33% 33.33% 99.99%
Email 16.66% 16.66% 16.66% 16.66% 16.66% 16.66% 99.96%
• Sending out 3 times Direct Mail
• Sending out 6 times Email

35. Profit & Lost
Direct mail & Email Campaign
Assumptions
Unit Price $55
Shipping & Handling $0
Mail Quantity 45,000
266934
Response Rate 0.47%
Appointment Frequency 6
Average Order Size 1
Variable Costs
COGS 10%
Fulfillment 0%
Bad debt 2%
Total 12%
Fixed Costs
Overhead $37,692

36. P&L for Direct mail & E-
mail Campaign P&L
Response Rate 0.47%
Appointments/Sessions 1282.258041
Gross Sales $70,524.19
Returns $0.00
Net Sales $70,524.19
266934 COGS $7,052.42
Fulfillment $0.00
Bad debt $1,410.48
Total Variable Cost $8,462.90
Variable Marketing Cost $18,750
Fixed Marketing Cost $3,900
Total Marketing Cost $22,650.00
Overhead $37,692
Total Fixed Cost $60,342.31
Profit $1,718.98

37. LTV Calculation
Part 1/2
Year 1 Year 2 Year 3
Response Rate 0.47% 25.00% 35.00%
Appointments/Sessions 1282.26 272.48 343.32
Starting Customers 213.71 181.65 163.49
266934
Retention Rate 85% 90% 95%
Gross Sales $70,524.19 $14,986.39 $18,882.85
Returns
Net Sales $70,524.19 $14,986.39 $18,882.85
COGS $7,052.42 $1,498.64 $1,888.29
Fulfillment $0.00 $0.00 $0.00
Bad debt $1,410.48 $299.73 $377.66
Total Variable Cost $8,462.90 $1,798.37 $2,265.94

38. LTV Calculation (cont.)
Part 2/2
Year 1 Year 2 Year 3
Variable Marketing Cost
Fixed Marketing Cost
Retention Marketing Cost
266934
$500.00 $500.00
Total Marketing Cost $22,650.00 $500.00 $500.00
Overhead $12,564.10 $12,564.10 $12,564.10
Total Fixed Cost $35,214.10 $13,064.10 $13,064.10
Profit/Loss $26,847.19 $123.92 $3,552.81
Discount Rate (at 10%) 1.00 1.10 1.21
Net Present Value 26,847.19 $ 112.65 $ 2,936.20
Cumulative Net Present Value $26,847.19 $26,959.84 $29,896.04
Customer Lifetime Value $125.62 $126.15 $ 139.89

40. Recommendation
• La Biang Thai Massage should start to launch
the continuity campaign
• Use Direct marketing campaign
• First year campaign use prospect list
• We propose that the business should change the
application form in order to keep customers’
information (Build in-house database)

41. References
• La Biang Thai Massage
http://labiangthai.com/index.html
• NextMark
http://lists.nextmark.com/market;jsessionid=9856B6847D3B
AB228E85AF2AADBC1EF8?
page=order/online/datacard&id=218391
• IBISWorld
http://lists.nextmark.com/market;jsessionid=9856B6847D3B
AB228E85AF2AADBC1EF8?
page=order/online/datacard&id=218391

42. ?

43. VKC
Corporation

44. Profit & Lost (cont.)
Overhead Calculation
 Salary Pay
Operators : (12$*8)* 2= 192*4=768 $ ( Another five days operate by the owner)
Staffs : No Salary ( In hour they do massage the masseuses will get
(45%Maximum-24%minimum)+ Tip)
266934
Masseuses Revenues : 45% Maximum - 24% Minimum Share = 34.5% average
Each day use : 5 Staffs
Operation Time : 7 Days a week 10:00 am. - 09:00 pm.
Maximum Capacity (Thai Traditional Massage) :
(5*1(HR))*55= ($275 *9(Hr)/ day)*7= $17325* 4=$69300 / Months (Gross
sales/Maximum)
Revenues Share(Cost) : 69300*34.5% = $5977.13/ month
Cleaning & Washing Cost = ((35$+35$)*7)*4 = $1960/ Month
 All the operational cost = 5977.13+1960+768 = 8705.13/month
 Operational + Rental = 15705.13(Cost)
 Overhead = (15705.13*12)/ 5(5 different services) = 37,692