Marketing plan for salon praba

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  • 1. Marketing Plan for Salon Praba 2011 I
  • 2. Marketing Plan for Salon Praba 2011 Table of Content Page No. Acknowledgement I Table of Content II1 Executive Summery 1-22 Introduction 33 Historical Background of the Salon 44 Mission Statement 55 Situation analysis 6 - 17 5.1 Market Analysis 7-9 5.2 Customer Analysis 10 - 11 5.3 Financial Analysis 12 5.4 Competitor Analysis 13 - 14 5.5 SWOT Analysis 15 - 16 5.6 PEST Analysis 176 Objectives 187 Strategies Development 19 - 42 7.1 STP 20 - 30 7.2 Marketing Mix 31 - 428 Budget Forecasting 43 - 449 Control & Implementation 4510 References 46 Appendixes 47 - 54 II
  • 3. Marketing Plan for Salon Praba 2011 1. Executive SummarySalon Praba is one of major salon in Katubedda. It was established in 2008 & still operatestheir business very successfully.Katubedda is one of urban city which consists of 10,257 populations. Not only that but alsothere are so many Public & Private Firms (Water Board, Telekom, Media Industry), &Educational & Tuition Centers (University of Moratuwa, German Tec, Other Private TuitionCenters & etc). By considering above things it will generate more opportunities to SalonPraba. But there are three beauty salons & one Auyrvedic Herbal Spa with skin specialistbrings more threats to survival of salon.After considering all these factors our group decided to make marketing Plan for Salon Prabato enhance their sales with satisfied customers & to provide better quality service thancompetitors.As an initial step in marketing plan we tried to identify the background of the salon Praba. Byanalyzing product life cycle we identified that they are still in growth stage. They have bigcompetition from surrounding & have to implement various marketing strategies for survival.They have already caught 35% of market share & 7% growth in sales when comparing withthe previous year 2009.They have segmented their market in to four aspects like children, teens, young ladies &adult women to provide various services like hair cutting, hair decoration, dressing, skintreatments & so on with the purpose of treating their customers in better manner. They havehigher demand from Young Ladies & adult women when comparing to other segments.Within next year they hope to enhance their sales by 8% & retain existing customers & attractmore customers. According to this situation we make following recommendation to achievetheir objectives in effective manner. Introduce new services at affordable prices. Use new technical instruments. Always aware about changes in beauty cultural field. Increase the flexibility & quality of services. Changed the Salon Name. 1
  • 4. Marketing Plan for Salon Praba 2011 Introduce a new logo for the salon. Open the services to gents also. Open new salon in other urban city. Use more promotion campaigns. Design their own web site for salon. Create good relationship among employees. Improve the effectiveness of telephone operator & receptionist. Elegant dress code for staff. Use book keeping method. Increase the internal capacity. Arrange & keep cosmetics & instruments in proper way. Changing the building layout, interior and office furniture colors. Provide piped music inside the salon.So if they could reduce their mistakes and apply above changes we believe that they cansolve their problems & it will help to achieve their objectives in an easy manner. 2
  • 5. Marketing Plan for Salon Praba 2011 2. IntroductionThis Marketing Plan for Salon Praba was carried out to enhance their current status bysignificantly increasing profit through providing valuable services to their existing &newly joined customers.So in here first we analyzed current situation of Salon Praba while conducting market,customer & financial analysis. Not only that but also we tried to identify the strengths,weaknesses, opportunities & trends by doing PEST & SWOT analysis.Secondly we set some marketing objectives for Salon Praba which will be achievedwithin next year. After that we developed strategies by using STP & 7Ps’ to achievethose objectives that are previously set.Finally for the control part we forecasted budget for year 2011 & it’ll give direction tohow to manage finance for modifications which needed for the proper implementationof this marketing plan. 3
  • 6. Marketing Plan for Salon Praba 2011 3. Historical Background of the SalonName - Salon PrabaLocation - Katubedda, Moratuwa.Founded Year - 01.01.2008Owner - Miss.Prabhani SenadheeraInitial Capital - Rs: 500000/= 4
  • 7. Marketing Plan for Salon Praba 2011 4. Mission Statement VISION “TO BECOME A LEADER OF SRI LANKAN BEAUTY CULTURAL INDUSTRY” MISSIONUpgrade the living standard of customers by providing high quality services to affordable price & enhance the strong relationshipamong customers by treating them in friendly manner to get their loyalty. 5
  • 8. Marketing Plan for Salon Praba 2011 6
  • 9. Marketing Plan for Salon Praba 2011 5.1 Market AnalysisEvaluating the current market situation is most helpful to understand specific needs & wantsof potential customers, how to serve them, how to attract more market share & the leveragesituation of Salon Praba.Target Markets: Sales - 2010 Children Teens Young Ladies Adult Women 1% 14% 26% 59%Target Market ForecastPotential Growth Rate 2008 2009 2010CustomersChildren 8.33% 4.9% 1.38% -2.05%(3-12 years) 120 100 50Teens 13.88% 13.2% 13.66% 0.38%(13-19 years) 200 270 490Young Ladies 55. 5% 56.3% 59.4% 3.90%(20-30 years) 800 1150 2140Adult Women 22.22% 25.49% 25.55% 3.33%(30 above) 320 520 920 7
  • 10. Marketing Plan for Salon Praba 2011Market Demographic:The profile for Salon Praba consists of following geographic, demographic and behavioralfactors:Geographic: The immediate geographic target is the city of Katubedda & the surrounding communities with a total population of 10,257. They have spread only around 10 miles of geographic radius. The total target population is 4500 per year.Demographic: Children, Teens, Young Ladies & Adult women. Age Vs Demand 3-12 Years 0.1% 13-19 Years 14% 20-30 Years 26% 30 Above 59% Mainly provide service to the ladies. The Young Ladies & Adult women who employed & engaged in higher education pay more attention about their beauty, but are unwilling to pay the exorbitant charges associated with it. Teens also consider more about new fashion methods, reasonable prices, & convenient. The children do not have any major preferences other than having toys to play while they are waiting. Individual income of working women is at least Rs. 15000. 8
  • 11. Marketing Plan for Salon Praba 2011Behavioral Factors: Always looking for convenience factors in regards to service providers. Attempt to provide all family needs at the same time if possible.Market Needs:Salon Praba is providing wide range of services like, Dressing (Bridal, Functional with Make Up) Threading (Eye Brows, Vexing) Hair Dressing (Hair Styles, Hair Cutting, Rebounding, Perming, Coloring…) Skin Treatment (Facials, Clean Up, Scrub…)Salon Praba seeks to provide following benefits that are important for its customers: Convenience: Salon Praba is situated in a centrally located area. Customer Service: Serving the customers with superior attention by providing quality service. Competitive Pricing: It offers pricing bit less than other competitive salons.Market Trends: Increasing the number of working women. Increasing the number of students who are doing higher education. Increasing the competition among other salons. Rapid change in technology & fashions. Pay more attention to personnel beauty.Market Growth:For the last three years the Salon Praba has grown steadily at 5% a year.It is generally unaffected by economic upturns or downturns. While in upturns, women aremore likely to purchase extra services such as hair coloring, perms, newly introduced facialmethods although generally the consumption pattern is unchanged. 9
  • 12. Marketing Plan for Salon Praba 2011 5.2 Customer AnalysisTarget Customers: Children (3-12 years) Teens (13-19 years) Young Ladies (20-30 years) Adult Women (30 above)Where are the Customers Residents in Katubedda area. Employees work in Public & Private firms. Students from University of Moratuwa & other Educational Institutes.When do the Customers buy? Normal Days: Morning & Evening time period have more demand. Seasonal Period: Especially in Wedding (March, May, June, and November) & Christmas period Salon Praba has more sales.What do they expect? To enhance their beauty (Skin fairness, Pimple removing) Quality Dressing Get flexible service for needed time. Free instructions. Pay more attention to customer needs & wants. Affordable price & convenience. Attractive environment. Additional Service. (Selling Cosmetics) 10
  • 13. Marketing Plan for Salon Praba 2011Customers’ Decision Process:Around 50% of women consider about their beauty due to changes in society. Educationallevel, income, social class, occupation, relationship & feelings most affect to women to paymore attention on their beauty. 11
  • 14. Marketing Plan for Salon Praba 2011 5.3 Financial Analysis 2008 2009 2010Annual Income (Rs.) 875000 937500 1007000Annual Cost (Rs.) 350000 400500 460000Annul Profit (Rs.) 525000 537000 547000 2500000 2000000 1500000 Annul Profit (Rs.) Annual Cost (Rs.) 1000000 Annual Income (Rs.) 500000 0 2008 2009 2010 12
  • 15. Marketing Plan for Salon Praba 2011 5.4 Competitor AnalysisCompetitors around the Salon Praba Nature Secrets Beauty Spa Chandani Bandara Salon Jayangani Dikkubura Salon Skin Specialist (Dr. D.N Samarathungha) Chamway Herbal Beauty Spa Competitors’ Product Summary Nature secrets Beauty Spa Facials (Bridal, Normal), pimple treatment, skin whiting treatments, cleanup Chandani Bandara Salon Bridal dressing, occasional dressing , facials (bridal facials, aroma facials & normal facials) cleanups, pimple treatments , skin whiting treatments , nail arts, hair cutting (Male, Female) Jayangani Dikkumbura salon Bridle Dressing, Normal Dressing, facials, pimple treatments, Hair cutting Skin Specialist Facials, pimple treatments, whitening treatments, cleanups, stretch marks treatments Chamway Herbal Beauty Spa Facials, pimple treatments, cleanups 13
  • 16. Marketing Plan for Salon Praba 2011 Competitors’ Strength & Weaknesses Strengths Weaknesses Use Herbal Products Higher Prices for services. Qualified Employees Contacting owner might be difficult Use Technical Instruments Lower Customer Loyalty Location Close on holidays Provide high quality service Takes more time per customer Strong goodwill Not providing online services Attractive work place Lower relationship among employeesCompetitors Strategies Providing new university packages in lower prices. Introduce attractive prices for skin treatments. Introduce attractive discounts for daily customers. Introduce online services Use media coverage for the salons (e.g.: Subasiri) Use new technological instruments. Introduce Nail Arts, Mehendi & tattoo service as new service. 14
  • 17. Marketing Plan for Salon Praba 2011 5.5 SWOT AnalysisStrengths: Good relationship among employers. Good relationship with customers. Flexibility for new services. Attractive prices. Employer has more than 5 year work experience. Use new electronic instruments for treatments like hair iron, head massages, steamers etc… Customers can easy to reach that place. Good customer loyalty. They have strong goodwill within Katubedda area.W eaknesses: Cannot find any developing strategies. Higher current bill. Poor promotion campaigns. Minimum number of employees. Take more times for one customer. Not going outside for dressing except bridal dressing. It’s difficult to get services in early morning. 15
  • 18. Marketing Plan for Salon Praba 2011O pportunities: There are some bridal competitions or fashion show competitions to get more publicity to the salon. The wedding exhibitions. There are more beauty cultural programmes can be seen in TV programmers like Nugasevana, Sirasa Dolosmahe Pahana. University of Moratuwa is located near to the university. Increasing ladies employment. Increasing older population. (they like to protect their younger looking as a result of increase demand for salons) Most of beauty salons are not focusing on male market. Near to the high way.Threats: Lower prices of competitors. Increasing government income taxes. Increasing cost of cosmetics & other equipments. Increasing new taxes for beauty salons publishing banners. There is a technical movements & salon has to use new technology instruments & methods. Should be prepared for each & every traditional & cultural occasions Some traditional & technological beauty culture methods are expired. Increasing market demand for Auyrvedic treatments. Some famous beauty salons are using online website facilities for their business activities. 16
  • 19. Marketing Plan for Salon Praba 2011 5.6 PEST AnalysisPolitical Environment: Changing government rules & regulations for businesses. Introduce new loans for small scale businesses. Introduce new instruction programmes for beauty cultural field through youth center. Government introduces higher taxes for businesses & some taxes for cutouts, and banners. It is very badly affected to businesses.Economic Environment Decreasing interest rates for business loans. Increasing cost of cosmetics. Decreasing personal income of people. Increasing price of beauty cultural technical instruments. Social Environment There are so many Christian people around the salon Praba. Increasing more sales in Christmas & New Year seasons. Higher demand for Indian fashions. Some times in wedding seasons most parents need traditional dressing for their young daughters.Technological Environment Use laser treatments for pimples. Use galvanic tools for facial treatments. Use head massages, hair iron for hair dressing. Use new skin whitening creams & technical machines. Use internet to promote salon & give opportunities for customers to get appointments through online. 17
  • 20. Marketing Plan for Salon Praba 2011 6. ObjectivesIncrease profits by 4% on next year through increasing sales by 8%.Maintain positive, steady growth in each month.Retain existing customers.Win new customers. 18
  • 21. Marketing Plan for Salon Praba 2011 19
  • 22. Marketing Plan for Salon Praba 2011 7.1 S T PS egmentation There are several strategies can be followed to divide the market into segments.Those are presented as follows. 1. Geographic segmentation 2. Demographic segmentation 3. Psychographic segmentation 4. Behavioral segmentation We had an interview with the owner of the Salon Praba. We got details of theircurrent market & customer situation. (Nature of the markets, customer preferences, customerloyalty, and growth of market segments, geographic/demographic & behavioral factors,market trends, etc.) By analyzing facts have been collected, we came to a conclusion that thebest segmentation technique for this salon is Demographic Segmentation. There are several criteria used to divide the market under DemographicSegmentation. Those are, 1. Age 2. Gender 3. Family size 4. Family life cycle 5. Income 6. Occupation 7. Education 20
  • 23. Marketing Plan for Salon Praba 2011 The market is segmented based on age and gender. Because customers can be easilysatisfied in different age groups in different ways. And customers under same age group mayresponse in a similar way & other age groups respond in different ways for same servicesprovided by the saloon. Most salons don’t consider the male market. Therefore the market isalso categorized according to the gender because different services can be introduced formales as well. The market of salon Praba is segmented according to age & gender. Thus the MultiAttribute Demographic Segmentation is used to segment the market. This is the way themarket is segmented. Profiling the Market segments Male Female 1. From 3 to 12 years 2. From 3 to 12 Years 3. Above 13 years 4. From 13 to 19 years …… 5. From 20 to 30 Years …… 6. Above 30 years 21
  • 24. Marketing Plan for Salon Praba 2011T argeting Targeting is the next step of target marketing process. In order to select appropriatesegment or segments to serve following steps must be followed. 1. Evaluating attractiveness of each segment. 2. Deciding how many and what segments to target.Evaluating attractiveness of each segment Saloon Praba is situated at Katubedda area. It is an urban area in Colombo district.Therefore we can see there is an adequate population in that area. Females & males – From 3 to 12 years old  Segment size and growth - As this is an urban area we can see lot of schools situated in that area. There are lots of school children in that area. We can serve them by providing children packages like hair cutting.  Structural attractiveness  Threat of intense segment rivalry - This service is provided by not only beauty salons but also other hair cutting saloons. Therefore we can find more competition in this market. But other beauty salons rarely provide this service. Therefore we can attract more customers by offering attractive children hair cutting packages than other salons.  Threat of new entrance - There is a possibility to attract new competitors in children hair cutting. Because it is easy to start hair cutting salons as it required law capital.  Threat of substitute products - Customers can cut children’s hair at home. Therefore no need to go salon always because it is easy to cut children’s haircuts.  Threat of growing bargaining power of buyers - Buyers can bargain to reduce the price as there is more competition. 22
  • 25. Marketing Plan for Salon Praba 2011 Company objectives and resources - The main objective of this saloon is to become the leading part of the beauty salon market in this area. Children hair cutting is not a relevant service for hair salons. It is an additional service. But in order to diversify services they provide we can introduce children’s hair cutting as well.Females - from 12 to 19 years old Segment size and growth - This is the young school market. There are lots of teenage school students in this area because there are many schools and extra classes can be seen. Therefore large enough to serve. Structural attractiveness  Threat of intense segment rivalry – We can provide many beauty culture services for teenagers. There are many beauty salons around this area to serve theses customers. Therefore the competition is high.  Threat of new entrance - New saloons can be opened because there is an adequate market for this.  Threat of substitute product - There are many products in the market that teenagers can use themselves without consultation of a saloon.  Threat of growing bargaining power of buyers - If the chargers are high than others there is a possibility to shift to another saloon. Therefore bargaining power is high.  Threat of growing bargaining power of suppliers - They must buy various products such as face wash, cleanses, scrubs, packs, etc. the demand for this product is high. Therefore supplier’s bargaining power is also high. Company objectives and resources – There are enough resources to satisfy this segment and their objectives are match with needs of this segment. 23
  • 26. Marketing Plan for Salon Praba 2011Females - from 20 to 30 years old Segment size and growth - This market includes women who are working, university students and women who hope to marry. This segment is the most important segment to serve. Because there is a huge demand in this market for beauty salons. Structural attractiveness  Threat of intense segment rivalry – There is high competition in this market segment because there are many saloons in this area. Also most customers prefer to get service from famous beauticians for their weddings. Therefore this saloon faces the competition from saloons surrounding Katubedda area as well as famous beauticians.  Threat of new entrants – So many new saloons may enter into the market as bridal dressing & facials become more popular & it has become a trend. Ladies follow beauty cultural courses most probably.  Threat of substitute products – Most customers consults doctors for their problems such as pimples. Some people do facials at home using natural things. There are some saloons which use which use herbal products other than artificial treatments. There are Auyrvedic products for skin treatments.  Threat of growing bargaining power of buyers – As there is high competition in this segment buyers bargaining power is high. Buyers can find alternatives at lower cost. Also some buyers seek for high quality service other than considering cost.  Threat of growing bargaining power of suppliers – Saloon needs suppliers like bridal dressing, flower arranging, jewelry suppliers & other facial cosmetics. Nowadays we can see increasing demand for these kinds of products. Therefore suppliers bargaining power is increasing. 24
  • 27. Marketing Plan for Salon Praba 2011 Company objectives and resources – This segment is contributing a lot in order to achieve company objectives. By offering effective marketing strategies for this segment the profit & the market share can be enhanced.Females - above 30 Size and growth – This segment include middle and old age women. Some are working, some are retired & some are house wives. As it’s a trend that elderly people are increasing this segment has growing characteristics. Structural attractiveness  Threat of intense segment rivalry – There is less competition and less demand can be seen in this segment for beauty cultural products.  Threat of new entrants – As the demand is law new entrants are rarely can be found because there are fewer stimuli for new entries in this market.  Threat of substitute products – Elder women consults doctors instead off salons for their problems. They prefer herbal products than artificial products.  Threat of growing bargaining power of buyers – As there is no big competition & no big demand buyers bargaining power is low. Company objectives and resources – Company objective is to maximize profit. As this segment has less demand there is less profit.Males – above 20 Segment size and growth – As this is an urban area, huge density of males can be seen. If they can provide beauty treatments for males they can attract adequate market. Structural attractiveness  Threat of intense segment rivalry – The target of many beauty salons is females market. Therefore there is less competition among beauty salons for male market. 25
  • 28. Marketing Plan for Salon Praba 2011 Threat of new entrance – If one salon start to provide beauty cultural services for males other salons may also start to provide this service. Threat of substitute products – There are cosmetic products for males in market nowadays. Threat of growing bargaining power of buyers – As there is less competition bargaining power is law for male market. 26
  • 29. Marketing Plan for Salon Praba 2011 Selecting the Market Segments There are several patterns of target market selection. For this salon we choose Selective specialization method. Female Female Female Male Children From 13 to 19 From 20 to 30 Above 30 Above 20Clean upEyebrowmakingHair treatmentPimpletreatmentTattoosBridal dressingFacialsHair cutsPimpletreatmentsSpecialuniversitypackageFacials foradultsSkin treatmentsHair dyeingFacials formaleHair cuttingtattoosHair cuts 27
  • 30. Marketing Plan for Salon Praba 2011D ifferentiation Differentiation is the act of designing a set of meaningful differences to distinguishthe company’s offer from competitors’ offer. There are four basic dimensions to differentiatethe marketing offer of a company. 1. Product differentiation 2. Service differentiation 3. Personal differentiation 4. Image differentiation As this salon is a service providing business we can’t differentiate only one thing.Because whole process must be differentiated in order distinguish the value placed incustomer mind. Therefore we use all four bases to differentiate this service.Product differentiation Use high quality cosmetics for cleanups, facials & other treatments Introduce new packages for bridles as well as other customers to make their services exactly match with customer wants  E.g.:- Have a previous discussion with customers & provide what they want as much as they can Always adopt new technologies to give better service & improve consumer satisfaction Awareness of latest trends in beauty cultural fields & include those to make their service more attractive Introduce new packages with attractive prices for special segments such as campus students Recruit competence employees & give enough training in beauty cultural area to provide high quality service Follow new trends in bridal dressing & always try to match their services with customer needs 28
  • 31. Marketing Plan for Salon Praba 2011Service differentiation Get feedbacks from customers about the service Give free offers for customers E.g.:- Give free cleanup for one facial Go customers place to provide services such as bridal dressing. Because it’s inconvenience for customers to come to the salon for dressingPersonal differentiation Recruit well competent supporters Train employees to give friendly services & always care about customer convenience E.g.:- Have a friendly discussion with customers Introduce a dress code to employees to attract customers Train employees from reputable beauty academyImage positioning Change salon name as “Salon Flora” & give prestigious value to this name by promoting all differentiated values with this name 29
  • 32. Marketing Plan for Salon Praba 2011P ositioning Positioning is the act of designing the company’s offer & image so that it occupies adistinct & valued place in the target customers’ mind. (Kotler) Our strategy for positioning is Image Positioning. We achieve this by promoting thebrand name we suggested which is “Salon Flora” with other differentiated values & makeprestigious value in customer’s mind. In order to promote the brand name we suggestfollowing strategies. Distribute leaflets to general public by mentioning their new packages with prices & attractive discounts. Distribute leaflets to campus students to make them aware about special packages at lower prices Maintain good relationship with TV channels & give participation to beauty cultural programmes on television such as Nugasewana, Subasiri, etc. Give contribution to dress models for paper covers & magazines Put paper advertisements by promoting brand name with their valuable services Participate wedding & beauty cultural exhibitions & competitions 30
  • 33. Marketing Plan for Salon Praba 2011 7.2 Marketing Mix7.2.1 Product Strategy: 1. Increase Quality of Service Discuss with customers & identify what they need e.g.-: What kind of trends & fashions they like. (Dresses, haircuts, hair styles, etc.) Read & use new fashion magazines to get better understand about new fashions, trends & other beauty cultural things. e.g.-: new haircuts, new cosmetics, and new fashionable dresses Salon owner can follow advanced new fashions & beauty cultural courses it will give more benefits to the salon. e.g.-: Courses of City & guild company 2. Flexibility for New Services Introduce new beauty cultural services.  Read books regarding to beauty cultural field.  Get experience to provide these services.  Enhance knowledge regarding how to use technical instruments. Communicate special benefits & other important facts to customers which related with the new services & existing services.  Using verbal communication  Leaflets. Always try to get customer ideas about new services before introduce it. Maintain good communication system to get knowledge about changes in Business environment. e.g.-: Business to customer, customer to customer, business to business. 31
  • 34. Marketing Plan for Salon Praba 20113. Use New Electronic Instrument. Get good knowledge about how to use new technological instruments. Before using instruments, employees are required to ensure those instruments are suitable for customer. Use high quality, branded cosmetics.  Consider about number of stars in a label.4. Introduce New Services. Go customer place to facilitate bridal dressing. e.g.-: At customer’s house or work place. According to development of wedding culture they can introduce lot of new services. They can introduce bridle packages  Level of family background [High, Middle & lower families]  The way they like to dress [Kandian, Indian, western]  How many days do they like to get services? [Wedding day only, both wedding & home coming day]  How many people like to get service?  What type of services they need. [Dressing only, dressing with/saris, jewelry /bouquets]  Provide variety of services which engaged in wedding. For this following services can be added.  Build connection with wedding planers.  Build connection with tailors.  Build connection with flower suppliers.  Build connection with photo grapes.  Build connection with cake suppliers.  Build connection with wedding cards designers, etc 32
  • 35. Marketing Plan for Salon Praba 2011  They can introduce special treatments for brides.  Pimples treatments  Facials [2000/= to 2500/=]  Food planning program.Introduce NAIL Art service to the salon.  In order to introduce this service they have to appoint an employee to this job who has good knowledge & education about nail art.Introduce family packages.Provide beauty cultural services for males.[Because now males are considering more about their beauty] e.g.-: haircuts, hair coloring, facials and skin treatmentsIntroduce new package to middle age ladies. Like haircuts & dying, eyebrows threading, Manicure, Pedicure.Introduce services for older population.  Higher demand for INDIAN fashions Get better knowledge about – Indian dress, fashions , hair stylesSell beauty cultural cosmetics & other products like face wash, scrubs, herbal packs,tonners, etc.  They can use salon place for it. [If they can give some discounts like 5% for loyal customers & Who are purchasing more than three products?]Maintaining prices of cosmetics & other equipments at lower level.  Salon can choose one supplier for all cosmetics as a result they can get some good discount for a deal.  They can directly contact with cosmetics importers. [With out Middlemen]  Join with two or more salons in Katubedda & purchase Cosmetics in together. 33
  • 36. Marketing Plan for Salon Praba 2011 Salon can provide services for all types of cultural/religious occasions.  Therefore salon employees must learn & get training of Beauty Cultural uses for every type of cultural occasions. e.g.-: brides-: Sinhala, Tamil, and Muslim Some trends & technological things can be expired.  Salon has to always pay attention about new trends & technology come to the field.  Learn about those trends & technology  Do some experiments before apply those things to salon. e.g.-: use model & dress new designs or do new haircuts. If the experiments get success then you can apply it to the salon. Increase demand for Auyrvedic treatments. So salon PRABA can introduce following services;  Provide services using herbal cosmetics.  Get experience about How to do treatments.5. Change the name of salon. They have to use appropriate salon name to get attract more customers & place salon name in their mind. It’ll help to promote salon as well as the loyalty of customers. Recommended Name: “SALON RUU”. 34
  • 37. Marketing Plan for Salon Praba 2011Recommended Newly Designed Logo 35
  • 38. Marketing Plan for Salon Praba 20117.2.2 Price Strategy:They can use following price strategies to their salon.1. Objectives of Pricing. Survival. Maximizing sales of salon at seasonal &non seasonal time.2. Suitable strategies for pricing. Competitive pricing strategy. Pricing adjustment strategy. e.g.-: promotional pricing.3. Suitable method for pricing. Value pricing. Going rate price.1. Attractive prices.  University student packages.(lower price) -Dressing [450/= to 500/=] -Eye brows [80/= to 100/=] -Haircuts [300/= to 350/=] -Facials [1000/= to1200/=]  Office workers packages. -Eye brows [100/= to 110/=] -Haircuts [400/= to 450/=] -Facials [1300/= to 1600/=]  Before & after the seasonal situation salon doesn’t have higher demand. so at that time they can introduce some kind of service for lower price within some period of time.[like week or two weeks] e.g.-: Special Facials [750/= to 1000/=] Haircuts [250/=] 36
  • 39. Marketing Plan for Salon Praba 20112. Discounts. Give some discount to loyal customers. Specially  Dressing – 5%  Haircuts – 3%  Facials – 3%3. Competitors lower prices. Always try to get awareness about the competitor’s prices & do adjustment for their prices to be competitive. Set lower prices than competitive prices. Make discount than their discounts.7.2.3 Place Strategy: 1. Can open another salon in other urban city to enhance & spread their businesses. 2. Arrange car parking facilities. There is no car parking facility. It will be more convenient for customers & it will lead to attract more customers who have high status of living condition. 37
  • 40. Marketing Plan for Salon Praba 20117.2.4 Promotion Strategy:1. Public relation. Build a good relationship with customer.  Always have a friendly chat with customers before provide the service.2. Use more promotion programs. As promotion now they use, Dress models for paper cover pages & fashion pages. Customers to customer communication. Except above promotion tools they can do following things.  Advertisement method.  Printing & Electronics media ads.  Internet Business advertisements.  Face book advertisements.  Telephone rainbow pages advertisements.  Paper advertisements.  Participate to the beauty cultural TV program. e.g.-: Nugasevana, Vivaha  Sales promotion methods.  Participate to the beauty cultural exhibitions e.g.-: My wedding, the bridle show  Participate to the beauty cultural contest.  Distribute hand bills including their new salon name & logo as we suggested above.  They can give small ads for school or other comities souvenir books.[Patronage awards] 38
  • 41. Marketing Plan for Salon Praba 2011 Some of TV channels are near to the salon place like Sirasa TV, TV Lanka , MAX TV, Swarnavahini  First they have to contact those media channels & keep good relationship with them  They can get opportunity to present their fashion knowledge in this channels beauty cultural program. They can conduct free trials to develop promotion of salon.Develop own web site for salon. They can display following things in web site;  Available packages in salon & prices.  Available services in salon & prices.  Special offers of salon.  They can update photos of their bridle dressing & other dressing. 39
  • 42. Marketing Plan for Salon Praba 20117.2.5 People Mix:1. Create Good Relationship Among Employees. Increase the salary & other incentives of an employee.  They normally pay 18,000/= salary per month but in seasonal situation they can pay more than 18,000/=  They can also increase other incentives in this time period. e.g.-: Early morning work 150/= per hour. At night work 200/= per hour. Give some basic authority to them. e.g.-: Can be given to handle some work according to the workers independence preference. Give opportunity to learn. Give opportunity to learn which related with beauty culture. Minimum employees. In non seasonal situation this problem does not much effect to the salon but in seasonal situation salon has higher demand as a result they can’t do lot of work with one employee.  They can get temporary employees for salon at seasonal time period. [2 or 3 employees they need]  First get list of suitable employees. [Who are like to join to the salon as a temporary worker.]  Then select & appoint suitable person for the job. 40
  • 43. Marketing Plan for Salon Praba 20117.2.6 Process strategy: 1. Handling Telephone Calls. Get separate & appropriate employees as a telephone operators. Talk very friendly & polite manner with customers. 2. Use a book keeping system to salon. They can appoint a book keeper or use an accounting package to record transactions.  Accounting packages -: ACCpac, Myob, etc. 3. Customer complaint handling.  Use suggestion/ complaint handling box or book to get the customers’ feedbacks. 41
  • 44. Marketing Plan for Salon Praba 20117.2.7 Physical Evidence: Service supply environment The environment not much bad but some time salon reception place does not have enough space. As a result of that customers are not that much facilitated by the receptionist.  Salon owner must consider about this problem & modify that place attractively. e.g.-: Use pictures which are related to beauty culture. Use photos of brides, models who are dress at this salon. Front side of salon place is not attractive. They can make it more attractive by providing an attractive name board with the brand name and logo we suggested. It will help make a good image in customers’ mind. e.g.-: make a new name board to salon. Use new models & bridal pictures. Buy a television to salon. Then customers can watch TV while waiting to get the service. Play some piped music in salon. Introduce elegant dress code for employees. Create a visiting card & distribute it among customers. 42
  • 45. Marketing Plan for Salon Praba 2011 8. Budget Forecasting Salon Praba Budget Forecasting Plan for Year ended 31st, December 2011 Rs: 30.06.2011 Rate % 31.12.2011 TotalIncome 580000 -12.1% 510000 1090000(- cost) 12500 6000Tele. Bill 6500 -7.8%Current Bill 25000 -8% 23000 48000Water Bill 6000 -25% 4500 10500Cosmetics 72000 -37.5% 45000 117000Transports 12000 -16.7% 10000 22000Technical -37.9% 145000 90000 55000EquipmentSalary 18000 0% 18000 36000Advertising 40000 20% 48000 88000Other 30500 -65.6% 10500 41000Total Cost 300000 -26.7% 220000 520000Profit Before Tax 280000 3.6% 290000 570000(-) Tax 10% -28000 3.6% -29000 -57000Profit After Tax 252000 3.6% 261000 513000 43
  • 46. Marketing Plan for Salon Praba 2011Compare the Performance of Financial Figures: 2009 2010 2011Income (%) 7.1 7.41 8.2Cost (%) 14.4 14.8 13.04PBT (%) 2.28 1.8 4.2 44
  • 47. Marketing Plan for Salon Praba 2011 9.Control & ImplementationGauge performance. Revenue : monthly & annual Expenses : monthly & annual Customer satisfaction New product developmentImplementation. The following milestones identify the key marketing programs. It is important to accomplish each one time and on budget.Marketing organization. Stan blade will be responsible for the marketing activities.Contingency planning.  Difficulties and Risks. - Problems generating visibility, a function of being an internet – based start – up organization. - An entry into the market by an already – established market competitor.  Worst – case Risks. - Determining that the business cannot support itself on an ongoing basis. - Having to liquidate equipment or intellectual capital to cover liabilities. 45
  • 48. Marketing Plan for Salon Praba 2011 10. References Kotle Phillip, “Marketing Management”, 13th Edition, Prentice Hall of India, 2002, Page 40 - 60 Madanayake Ranjan, “Study Kit of Preliminary Certificate in Marketing”, Tharanjee Prints in Maharagama, Page 84 – 87 Madanayake Ranjan, “Strategic Marketing Plan”, 1st Edition, Vishava Lekha of Sri Lanka, 2002, Page 103 – 172 Payne Adrian, “The Essence of Services Marketing” Prentice Hall of India, 2003, Page 122 – 177 www.morebusiness.com 46
  • 49. Marketing Plan for Salon Praba 2011APPENDIX 47
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