Katie Hairdressing and Beauty Parlor Marketing Plan - Case Study Example

Katie Hairdressing and BeautyParlor Marketing Plan (Name) (Institution Affiliation) (Date) 1.0 Marketing Objectives Increase customer acquisition by 6% per quarter Increase repeat customer by 7% per quarter Maintain a steady market growth annually 2.0 Marketing Mix Also known as the 4ps, marketing mix refers to a set of tactics that an organization can use to promote its products/services or brand in the market. The marketing mix is made up of product, price, promotion, and place (Moller, 2006). This section will discuss Katie Hairdressing and Beauty Parlour 4Ps 2.1 Product 2.1.1 Product concept Product can be defined as that physical product or service which is eventually offered to the client. For products, this includes the services or the conveniences that are part of the product offered. Some of the important product aspects include: appearance, warranty, and positioning, branding, service, packaging and product life cycle (Palmer 2004). Katie Hairdressing and Beauty Parlor is a family salon offering hair dressing services and beauty therapy services specifically suited for each target group. A. Hair dressing services for men; Our signature service includes: • Haircut • Shampoo • Conditioning Treatment • Hot Towel • Scalp Massage • Re-shampoo • Styling Other services include: Young men's cut for boys 13-19 Includes: • Shampoo • Haircut • Re-shampoo Children’s cut age 12 and under Includes: • Haircut B. Hairdressing services for Ladies Our signature service includes: Wash, Cut and Blow Dry Wash and Blow Dry Wash, Blow Dry and Straighten Wash and Cut Dry Cut Blow Dry Shampoo and Set Cut, Shampoo and Set Intensive Conditioning treatment (inc. Head Massage) Hair up Perm Tints and Hi-lights; Woven Hi-lights Full Head Half Head T Section Parting Full Head Tints Semi-Permanent Cap Hi-light C. Men Beauty Therapy services: 1. Facials Express Men's Spa Facial This service is for those men who are busy but want a ‘quick-fix’. It starts with exfoliation followed by steaming process and finally a purifying mask. This process takes only 30 minutes. Man-Made Spa Facial This is an intensive treatment which addresses all concerns that men clients have with their skin. It mainly focuses on deep cleansing for the dehydrated skin it also include chest and neck massage scalp relaxation. It takes one hour. Men's Executive Spa Facial This treatment will start with a relaxing massage followed by a detoxifying and hydrating facials. Finally, a scalp massage will be done. This process will take one and a half hours. 2. Feet & hands Men’s manicure- removing cuticles, buffing, scrubbing, masking and massage. It takes 25 minutes. Men’s pedicure- removing cuticles, buffing, scrubbing, masking and massage. It takes 25 minutes. 3. Men’s Spa Body Back Buff Deep cleansing under Vichy Shower Treatment for 30mins Body Scrub & Massage Full body exfoliation under Vichy Shower Treatment Body Scrub & Detoxification Full body purifying under Vichy Shower Treatment for one hour 4. Men’s Waxing, Grooming & Tanning Back and Shoulders Chest and Stomach Full Leg & Speedo Full Arm and Under Brows or Lashes D. Women Beauty Therapy services: 1. Facials MedSpa Beauty Facial This treatment is aimed at rejuvenating all skin types for women through pampering, hydrating and use of anti-oxidants to improve the tone and texture of the skin. It also includes an optional make-up for the client. It takes 45 minutes Express Peel Treatment This treatment is for ladies who are in a rush but need a quick fix for their face. It also includes a complete make up. It takes 15 minutes. Teen Acne Facial This is a treatment specially made to meet the concerns of teenage ladies who have acne. It takes an hour. 2. Feet and hands Women manicure and pedicure with gel polish and Nail art Women manicure and pedicure with ordinary nail polish and nail art Women manicure/pedicure with no polish 3. Spa massage Prenatal Massage This is specifically meant for expectant mothers to help relief back pains, enhance sleep and reduce fatigue. This takes one hour Back Buff Body Scrub & Massage Body Scrub & Detoxification 2.1.2 Product differentiation We understand that there are other beauty salons offering some of the services we intend to offer. However, our services are different in that our clients can come with the whole family for a hair day and a spa day as well. We intend to serve our target market and especially the men segment that has been overlooked in as far as beauty therapy is concerned. Family can get all the services under one roof and at an affordable price. 2.1.3 Product positioning Positioning is characterized by the marketers emphasizing certain aspects of the product and ignoring those that are not appealing to its target audience (Palmer, 2004). Katie Hairdressing and Beauty Parlor will position itself as a convenient, family salon, full service and one-stop beauty service. The company will use its competitive edge to achieve its positioning. Katie Hairdressing and Beauty Parlor will use its superior customer service to make its services stand out in a crowded industry. The company will also invest in employee training to ensure that the clients receive the best service possible. 2.1.4 Brand A brand can be defined as the name, the symbol and the design that is used to identify and differentiate a product in the market. The brand is used by the consumers to distinguish between different products being offered in the market. We have designed a unique logo that will depict that we are a family salon. This logo will appear on all our documents, outlets and gifts. 2.1.5 Product life cycle The product life cycle is defined as the period from which a product is launched into the market to its final withdrawal from the market. The evaluation and analysis of product life cycle is important because it enables the company to be aware of when to introduce a product in the market and when to withdraw it. The product life cycle is comprised of five stages. They include the product development stage, the product introduction, the product growth stage the product maturity and finally the product withdrawal stage (William & McCarthy, 2004).Our salon is new and as such, we are in the introduction stage. This stage will require a lot of promotional activities to make consumers aware of our product. Also, product differentiation is important as we will be communication what we are doing different from competitors. 2.2 Price Compared to all other marketing mix components, price is the one that generates revenue while all the other are costs. Moreover, price is an important determinant of a company’s value of sales generated (Moller, 2006). It is mostly determined by the discovery of what customers perceive is the value of the item on sale as researching consumers' opinions about pricing is important as it indicates how they value what they are looking for as well as what they want to pay. As a company decide on a suitable price on a product, it should consider profit margin as well as how competitor will respond to that price. Pricing is an important decision since if the price is too high, the company risk generating low sales level and if the price is too low, it’s risking not covering its total costs hence incurring losses (Moller, 2006). There are various pricing strategies that a company can use, which include skimming, penetration, psychological, cost- plus and loss leader strategies. Skimming strategy is usually used when a new product is facing less or no competition where the company sets a higher price before other competitors come into the market. Penetration pricing method is used when a company what to increase its market share. Under this method, the initial entry price are usually low than what other competitors are charging so as to attract customers. Cost-plus is another method of pricing which involves setting price adding a fixed cost of making a product or offering services. Although still widely used, it is viewed as old-fashioned and somewhat discredited pricing strategy (Palmer, 2004). Since Katie Hairdressing and Beauty Parlour is launching it services for the first time in a very competitive environment, it should consider using penetration pricing method when setting prices for the services they will offer. By using this method, Katie Hairdressing and Beauty Parlour, will be able to gain new customer. Increase its market as well as build customer loyalty. Katie Hairdressing and Beauty Parlour can implement this method in various ways, such as: Offering Buddy ‘Discount This will be offered to customers who come with their friends and they both need a hair cut or any other service offer in our store. This will encourage our customers to bring a friend with them, hence increase our sales revenue and market share. Offering ‘family’ Discount Katie Hairdressing and Beauty Parlour will serve the entire family and therefore this discount will be offered to families who come together to our salon and each use our service. This will attract many families to our salon. 2.3 Promotion A promotional mix is a collection of factors that managers use to relay the benefits that a product has to its target market. A promotional mix is comprised of advertising, public relations, sales promotions, direct marketing, online advertising and personal selling (Larry 2009). Promotion of a product is very important as it places a company’s brand in front of its potential customers and the general public. Since Katie Hairdressing and Beauty Parlour is a company, promoting its services is no easy task. The company should maximize both online and off marketing tools so as to reach its target market. The company should consider using the following steps to promote its services effectively. 2.3.1 Get Found Before anything else, Katie Hairdressing and Beauty Parlour should ensure that clients can find their business. The company can achieve this by; 1. Build a Website: Katie Hairdressing and Beauty Parlour should design a website that is visually appealing as well as well with up-to date and relevant information including, contact information, prices, locations, and images. Moreover, the company can add special keywords to have its website ranked higher than its competitors in search engine results 2. List Your Business On Web Directories: After having a website, Katie Hairdressing and Beauty Parlour should list business in all top directories as it will help the customers find the company through more avenues 3. Create Social Media Business Pages: Katie Hairdressing and Beauty Parlour should use social media such as Facebook, Twitter and Google+ and later move on to Instagram and Tumblr once it has those mastered. This will help the company reach a massive untapped pool of potential customer 4. Find Local Allies: after implementing the web strategy, the company can team up with local allies, like Fernwood Fitness center in Canberra. They should come up with such adverts “Going for a great new look this summer?  There’s nothing better than a fresh new style to go along with your brand new beach body 2.3.2 Get Customers In this stage, Katie Hairdressing and Beauty Parlour will be converting potential customers in to paying customers. The company can use these strategies 1. Use Call-to-Action: Katie Hairdressing and Beauty Parlour will use its website, web directories, social media, and local newspaper to announcing offers such as discounts which will differentiate the company from its competitors 2. Promote a Daily Deal: under this strategy, Katie Hairdressing and Beauty Parlour will partner up will another website that will promotes its services and offers on a large scale. 3. Run a Contest or Raffle: using its website and social media pages, the company will run a competition for some free swag. This will enable Katie Hairdressing and Beauty Parlour to engage its audience as well as broaden its customer base 4. Leverage Word-of-Mouth: under this strategy, the company will use customer to promote our services. The company will give a discount to customers who bring their friend along. 2.3.3 Get Repeat The company will implement the following strategies to create repeat business 1. Email Marketing:  the company will collect emails for every single customer steps foot into the salon to make sure it can continue re-marketing to them in the future 2. Start a Blog: Katie Hairdressing and Beauty Parlour will run a run a blog where it will post fun, relevant articles on health & beauty tips, new services the company may be offering or a unique success story with a fun testimonial 2.3.4 Promotion Schedule for 2015 Date Activities Cost ($) 1st Feb. 2015 Designing a website Opening social media sites such Facebook and twitter 1000 free 2nd June. 2015 Getting into a partnership agreement with Fernwood Fitness centre to promote our services together 1300 20th Mar.2015 Place a promotion advert on one of the local newspaper 1450 7th May 2015 Running a promotion for customer who bring a friend alone to the company 2000 4th April 2015 Contract another website with a huge audience to market our services 800 10th Mar. 2015 Hire an agent to maintain and update the company’s agent as well as run its blog for the entire year 1000 2.4 Distribution Outline how a business distributes its products/services to the end user (Palmer, 2004). Katie Hairdressing and Beauty Parlour are offering services which require the service provider and the consumer to be in the same point. There, the company will open a store in the Canberra city where all its services and products will be dispensed from. 3.0 Implementation and evaluation 3.1 Cost-revenue analysis A break-even analysis is used to analyze at what point the cost is equal to revenue. After the break-even the company will start making profits. it is estimated that the company will break when it achieves revenue of $32,340 Break-even Analysis     Monthly Revenue Break-even $28,689     Assumptions:   Average Percent Variable Cost 12% Estimated Monthly Fixed Cost $28,459 3.2 Implementation schedule 3.3 Evaluation method and time line The purpose of our marketing plan is to act like a guide to our new business. In order to ensure that it is being achieved, the following area will be monitored to evaluate our performance. Area to be measured Timeline Revenue: Monthly and annual. Expenses: Monthly and annual. Repeat business. As it happens Customer satisfaction. After every service References Larry Steven Londre (2009) Marketing, IMC, Advertising, Promotion, Media and More Moller, K. (2006). The Marketing Mix Revisited: Towards the 21st Century Marketing by E. Constantinides. Journal of Marketing Management Palmer, A. (2004). Introduction to Marketing - Theory and Practice, UK: Oxford University Press. William D. & McCarthy J. E. (2004). Product Life Cycle: Essentials of Marketing, Richard D Irwin Company Read More