Marketing Opportunity - Assignment Example

Marketing Plan al Affiliation Marketing Opportunity Just like other businesses that deal with provision of services, salons and spas rely heavily on the word of mouth and customer retention to compete with other players in the industry. Most of the service provision businesses use paid adverts to reach out to a wider market (Stellema, 2012). This is common among the high end spas and salons. While these paid adverts have proved to be effective, personal contact is more important for a business that wants to retain most of its customers and also engage in viral marketing. This is a great opportunity that Divine Divas Salon can rely on to be able to not only compete with the other service providers in Houston but to also cut niche for itself. Personal contact with the client should be coupled with the use of the ever growing and beneficial social media platforms (Benett, 2009). Moreover, the business will incorporate client promotion as a key component of its marketing channels and tactics. Market Needs The span and salon sector has experienced exponential growth over the last couple of years. The services are sought after majorly for relaxation. Most of the users of the services choose the salon or spa to visit on the basis of the range of services that are offered and the proximity to their places of work and residential homes (McDonald & Keegan, 2002). The quality of the service and the prices also influence consumer decision. A lot of service providers operating in Houston have targeted the high end market. These are individuals in stable employment and are on a stable income. Most of them charge an average of $ 250 for their services. From the price analysis, it is clear that a lot of people are locked out from this vital amenity. The need for affordable quality services in a convenient location is quite evident in the Houston market, based on the available data and it is such vital market needs that Divine Divas Salon seeks to satisfy. Target marketing demographics Divine Divas Salon targets people from all social classes living in Houston. The reason why the enterprise has decided to target the entire market is to avoid locking out those who had been previously denied access to the services due to the exorbitant charges. This market is made up of several groups that have different needs and characteristics. The first group consists of customers recovering from injuries. These clients need massage therapies and in most cases the charges are paid by the insurer (McDonald, 2011). The second group consists of clients who are out to pamper themselves. Majority of the members of the second cluster are people with a lot of disposable income. Divine Divas however seeks to also attract those who lack this kind of income by offering attractive charges. The third demographic group is made up of customers who prefer using alternative healthcare (McDonald & Keegan, 2002). They come in for manicure, pedicure and massage services as preventive healthcare. The final group consist serious athletes who are out to improve their track performance through relaxation. Target Marketing and segmentation Clients who come for the services are unique in their own way. All the individuals fall in one of the four market segments which have been identified. The first group consisting of individuals recovering from injuries hears about the services from health care providers and friends (McDonald, 2011). To reach out to this segment of the market, indirect marketing is needed. This is done by liaising with various referring parties. Those who come for the salon and spa services for pleasure and relaxation the will be core to the success of the business since they are repeat customers (McDonald & Keegan, 2002). Such people may decide to visit the salons once a week or once a month for various services that aid their relaxation. Reaching out to this particular group can be done through direct contact and putting up ads in the local news weekly. To reach out to the section of the market that does not have a lot of disposable income, coupons and promotions can be used. Product and service concept Divine Divas Salon offers manicures, pedicures, massage, facial hair waxing and threading. The services are provided in a relaxing environment that gives the customers ease of mind. They are given by therapists and aestheticians, who are licensed (Benett, 2009). They enter into a contract with the salon and are paid on commission basis. In addition, the salon offers retail line products including creams, candles and other related beauty products. The products retail between $5 and $20. In order to ensure that it sells the best alternative products that are affordable, the salon will involve the product users when determining what to put in the shelves. This way, the immediate needs of the customers will be met. Pricing strategy The pricing of the services offered was done based on the analysis of the potential clients’ needs and capability. It is worth noting that setting the prices high makes some people unable to access the services and thus making it had to compete with other industry players (McDonald & Keegan, 2002). Similarly, setting the prices too low may make the services perceived as low quality alternatives. As such, Divine Divas Salon has come up with an average charge of $100 per person. On the other hand, prices for the beauty products that are also stocked will range from $5- $20. This range gives people from various social classes a variety to choose from. Promotion and discount strategies To be able to keep its client base and to also attract more customers, the salon will engage in various promotional activities. Most of the promotions to be carried out will entail the enterprise providing its customers with offers that allow them to enjoy certain service at reduced prices based on the market trend and the needs (Stellema, 2012). Customers will also be given gift certificates from time to time. Those offered the certificates can give them to their friends and relatives who also want to visit Divine Divas Salon. The services offered will be advertised through the right radio, TV channels and magazines. Web strategy Online marketing is very vital in the plan. The world is quickly incorporating and embracing technology. Internet is one of the technological advancements that can be used to increase visibility. With this in mind, the Divine Divas Salon shall have a well-designed website that gives the needed information about the services and products. The website will also have information on promotions that are being run by the entity. In addition to that, it will have an interactive platform that allows the visitors to instant get feedback on the available offers and promotions. Various beauty and healthcare website are going to be used to ensure that a bigger segment of the market is reached. Marketing material Several materials will be required so that the plan can be executed. Business cards top the list of the needed materials. They are cheap and easy to produce. They will bear the name of the salon, the contact person and how he can be reached. Other marketing materials will include postcards and guides books (McDonald & Keegan, 2002). Posters and flyers will also be placed in strategic places that grab attention. Catalogues, brochures, calendars, greeting cards and stickers will also be needed depending on the specific marketing objective (Ferrell & Hartline, 2014). Marketing plan budget Item Cost Business Cards $50 Postcards and Guidebooks $100 Posters, Flyers and Stickers $200 Catalogue and Brochures $100 Greeting Card and Stickers $100 Radio and TV advertising $350 Web strategy $100 Total $1000 References Benett, A. (2009). The Big Book of Marketing. New York: McGraw Hill Professional. Ferrell, C. & Hartline, M. (2014). Marketing Strategy. London: Cengage Learning McDonald, M. & Keegan, W. (2002). Marketing Plans that Work. Woburn: Butterworth- Heinemann. McDonald, M. (2011). Marketing Plans: How to Prepare Them, How to Use Them. Burlington: Butterworth-Heinemann. Stellema, P. (2012).Secrets to Salon Success. New York: LULU.     Read More