2. INTRODUCTION
* Cabo san viejo was founded in 1977 by Dave and Florance
Blumenthal at Palm Spring, California.
* Mission- Helping people to live healthier lives by unlocking
their hidden potential and making self-actualized
individuals.
* Nations first and leading health &wellness brands.
* In 1982 Cabo was regarded “Premeir total vacation/ fitness
resort” by leading magazine.
*In late 1990’s and early 2000 Cabo opened several smaller
branded Caboday spa sites .
*Featured in publications such as Spa Finder,Departures,etc

3. Properties
 With comprehensive , state of the art Health - Spa services & hard work
Cabo san viejo has evolved as what they are today.
 Operated 5 properties
 One full –service, overnight destination resort(Palm Springs,CA)
 Four smaller,CaboDaySpas:-Miami
Hilton Head,SC,
Aspen,CO,
Natucket Island in Massachusetts.
 Located on 150 acres in San Bernardino Mountain.
 Facilities expanded to 1,00,000 square foot spa complex, 4,200 square –
foot golf performance and 13,000 square-foot Aquatic centre.
 Accomodate 288 guests.

4. Health - Spa services

5. Massage and Body
Skin care and beauty
work Medical Services
Staff to guest ratio is
3.2:1
Lifestyle Efficient personal Efficient & trained
Management trainers reservation staff

6. Competitors
 Major destination spas such as:
o Miraval (Palm Spring) offered broad array of spa and exercise
opportunities and offered precise mix of targeted offerings.
o Rancho La Puerta:Was billing itself worlds 1st eco resort
o Golden Door (Escondido,CA):primarily was focusing female
customers .
 Additional competition from Dayspa, beauty salons, high –end
health clubs, cruise ships and vacation resorts.
 Competing against Hawaiian Vacation.

7. Clientele
•Most of the customers were largely affluent, middle aged and
females.
• Approximate 3500 customers each year.
• The summer clientele was younger.
•There were several levels of customer.
 Loyal Customer
 Satisfied customer
 Dissatisfied customer.

8. Cabo San Viejo Customer Satisfaction,Palm Springs Location
Comment Card Responses
1%
3%
1%
OUTSTANDING(74%)
21 % VERY GOOD(21%)
SATISFACTORY(3%)
UNSATISFACTORY(1%)
74 %
NOT APPLICABLE(1%)

9. Marketing and Sales strategy
Creating brand
Customer awareness ads
survey and through Efficient &
sending guest TV, print media trained
personal & radio reservation
“Thank You” staff
letters to their
patronage Partnership
marketing
Reduced rates efforts
in off season/
Organizing
receptions
Maintaining a Cross-
strong sales Marketing
force

10. S.W.O.T
STRENGTHS WEAKNESS
•First & leading brand •Inaccurate and
incomplete customer
•Wide offerings and facilities database
•Little cross and direct
•Excellent staff marketing
•High Price
OPPORTUNITIES THREATS
•Diversification and •Stiff competition.
expansion •Wrong Perception
•Untapped market segments •Increasing consumer -
•Demand will increase with customers expectation
increase in health awareness.
•Increase customer loyalty

11. Problem faced
 Top of the pyramid in terms of pricing.
 Outdated computer system and no data base.
 Limited accomodation.
 Failure to attract male customers.
 Suffered complaints about lack of loyalty
programs and unable to match rising expectation.

12. Loyalty
 ADDING FINANCIAL BENEFITS .
 ADDING SOCIAL BENEFITS.
 ADDING STRUCTURAL TIES :-
 CREATING LONG TERM CONTRACTS OR SUBSCRIPTION
 CHARGE A LOWER PRICE TO CONSUMER WHO AVAILS MORE
SERVICES.

14. Challenges
• Operational challenges
Outdated computer system and no
customer database
Huge Implementation cost
Tangible versus intangible rewards
Increased expectations of the customers
• Philosophical challenges
Unbiased approach to customers
Not a 100% safe Idea.
Element of surprise is eliminated

15. SUMMARY
 Properties
 Offerings
 Competitors
 Marketing and Sales strategy
 Clientele
 Problems faced
 Loyalty
 Challenges

16. Loyalty program benefits should be availed to all customers.
It is not enough anymore to merely satisfy the customer-
Customer must be delighted:-
Membership cards
Birthday and Anniversary cards
While satisfied customers tend to be loyal customers, loyal
customers are not always satisfied customers.
If you keep your customer happy, they will keep you in
business.