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Stratosphere Salon
COMM 468, Section 101
Colette Cheung 70875091
Jessica Greschner 27722107
Jasna Kamenjas 24980096
Daniel...
Agenda
Situational Analysis
Goals & Objectives
Core Strategy
Conclusion

Situation Analysis

|

Goals & Objectives

|

Cor...
Stratosphere
GOING	
  FORWARD	
  
A+ract	
  new	
  customers	
  
Improve	
  frequency	
  of	
  visits	
  from	
  
exis>ng	...
Industry Analysis
Hair Industry in Canada

Hair Industry in Canada (2012)

•  Hair Industry in Canada is valued at
$1.6B w...
Industry Analysis

C a t e g o r y / I n d u s t r y F a c t o r s - P o r t e r ’s 5 F o r c e s
SUPPLIER POWER: MEDIUM

...
Industry Analysis
Environmental Factors

THE	
  MACRO	
  ENVIRONEMENT	
  

Demographic	
  Forces	
  
Economic	
  Forces	
 ...
Industry Analysis

Ke y S u c c e s s F a c t o r s ( I n t h e I n d u s t r y )

Quality of
service

Access to
niche
mar...
Company Analysis

Ke y S u c c e s s F a c t o r s ( F o r S t r a t o s p h e r e ; P r e - S u r v e y )
Open long hours...
Company Analysis

People, Price, Place, Product, Place
•  Salon & esthetic
services
•  Salon products

PRODUCT

•  Website...
Company Analysis
Sales Analysis

TOTAL SALES

SERVICE

RETAIL

Regular Requests

85.00%

74.00%

11.00%

New Requests

8.2...
Primary Data Collection
Ke y F i n d i n g s F r o m C u s t o m e r S u r v e y s & S t y l i s t I n t e r v i e w s

Si...
Company Analysis

Data Collection – Stylist Interviews

CHAIR	
  RENTERS
POPULATION	
  SIZE

7

METHOD	
  OF	
  DATA	
  
C...
Company Analysis

S t y l i s t I n t e r v i e w s – Ke y Ta k e a w a y s

TOP 3 QUALITIES OF STRATOSPHERE
People. Good ...
Company Analysis
REASONS FOR WORKING AT STRATOSPHERE

F o c u s G r o u p Ta k e a w a y s

Situational Analysis

Not Will...
Customer Analysis

Data Collection – Existing & Potential Customer Surveys
EXISTING	
  CUSTOMERS

POTENTIAL	
  CUSTOMERS

...
Customer Analysis
Identified Segments

Young
Trendsetters

Situational Analysis

Davie Street
Guys

|

Goals & Objectives

...
Customer Analysis: Existing Clients
STRATOSPHERE BRAND
ASSOCIATIONS
Friendly

23%

Good Quality Service

18%

Trendy

15%
...
Most Important Salon Features
EXISTING	
  CLIENTS	
  

POTENTIAL	
  CLIENTS	
  

1.  Quality of service

1.  Quality of se...
Insight for Attracting New Clients
Satisfaction Level vs. Importance Factors in a Hair Salon
100%	
  

Exis>ng	
  Customer...
Customer Analysis
Communicating with Customers
PREFFERED COMMUNICATION CHANNELS

Twitter (47%)
Instagram (53%)
Pinterest (...
Customer Analysis
Re v e n u e S o u r c e s

Share	
  of	
  Pocket	
  –	
  ExisDng	
  Customers	
  
100%	
  
80%	
  
78%	...
Customer Analysis
Core Customers
40%

73%

33%

30%

27%

10%

23%

19%

20%

19-24
4%

8%

25-34
29%
8%

2%

>50
24%

4%
...
Competitive Analysis
Address Vancouver, BC

D a t a C o l l e c t i o n – O b s e r v a t i o n & S e c o n d a r y Re s e...
Competitive Analysis
Ke y C o m p e t i t o r s & S t r a t e g i e s
Zennkai
Straight and Curl
Hair Salon

Holts Salon & ...
Competitive Analysis
Competitive Benchmark / Matrix
2	
  

Situational Analysis

4	
  

|

3	
  

Goals & Objectives

5	
 ...
SWOT
STRENGTHS

WEAKNESSES

OPPORTUNITIES

T H R E AT S

Situational Analysis

|

Goals & Objectives

|

Core Strategy

|
...
Goal & Objectives
Improving the Stratosphere Marketing Mix

Situational Analysis

|

Goals & Objectives

|

Core Strategy
...
Goals & Objectives
Of the Marketing Plan
EXISTING	
  
CLIENTS	
  

NEW	
  
CLIENTS	
  

RETAIN	
  

CHAIR	
  
RENTAL	
  

...
Core Strategy
O b j e c t i v e s à S t r a t e g i e s à Ta c t i c s

Situation Analysis

|

Goals & Objectives

|

Co...
Core Strategy
Positioning

POSITIONING STATEMENT
For the style-conscious customer who places great emphasis on
their hair,...
Core Strategy

Ta r g e t i n g & S e g m e n t a t i o n
Urban	
  Powerhouse	
  
• Live	
  and	
  work	
  in	
  the	
  ar...
Core Strategy
Objective 1

INCREASE MONTHLY SERVICE REVENUE FROM EXISTING CUSTOMER BASE
BY 15% IN COMPARISON TO MONTHLY SA...
Core Strategy
Objective 2

INCREASE # OF FIRST-TIME CUSTOMERS BY 15% COMPARED TO # OF NEW
CUSTOMERS OF THE SAME MONTH IN T...
Core Strategy
Objective 2

INCREASE # OF FIRST-TIME CUSTOMERS BY 15% COMPARED TO # OF NEW
CUSTOMERS OF THE SAME MONTH IN T...
Core Strategy
Objective 3

ENSURE THE RETENTION OF FIRST-TIME CUSTOMERS MATCHES THE
INDUSTRY STANDARD OF 33% IN COMPARISON...
Core Strategy
Objective 4

INCREASE THE NUMBER OF CHAIR RENTERS BY 2 OR 3 COMPARED TO
CHAIR RENTAL OCCUPANCY 6 MONTHS PRIO...
Core Strategy
Objective 4

INCREASE THE NUMBER OF CHAIR RENTERS BY 2 OR 3 COMPARED TO
CHAIR RENTAL OCCUPANCY 6 MONTHS PRIO...
Core Strategy
Objective 5

INCREASE MONTHLY PRODUCT SALES BY 10% COMAPRED TO THE SAME
MONTH IN THE PREVIOUS FISCAL YEAR

T...
Core Strategy
Objective 5

INCREASE MONTHLY PRODUCT SALES BY 10% COMAPARED TO THE SAME
MONTH IN THE PREVIOUS FISCAL YEAR

...
Core Strategy
Objective 5

INCREASE MONTHLY PRODUCT SALES BY 10% COMAPARED TO THE SAME
MONTH IN THE PREVIOUS FISCAL YEAR

...
Core Strategy
Objective 5

INCREASE MONTHLY PRODUCT SALES BY 10% COMAPARED TO THE SAME
MONTH IN THE PREVIOUS FISCAL YEAR

...
Implementation
Three Phase Process

Jan.	
  
Sidewalk	
  Sign	
  and	
  Window	
  Display	
  
Social	
  Media	
  

PHASE	
...
Conclusion
Increase
service
revenue of
existing
customers

Increase
number of first
time
customers

Ensure
retention rates
...
Hairdressers are a wonderful breed. You
work one-on-one with another human
being and the object is to make them feel
so mu...
Appendix Slides
S u p p l e m e n t o f P r i m a r y Re s e a r c h

Situational Analysis

|

Goals & Objectives

|

Core...
Appendix 1

C u s t o m e r A n a l y s i s - P s y c h o g r a p h i c Tr a i t
Importance of Having Great Hair Everyday
...
Appendix 2

Competitive Benchmark / Matrix
2	
  

Situational Analysis

4	
  

|

3	
  

Goals & Objectives

5	
  

|

5	
...
Appendix 3
Objective 1

Increase monthly service revenue from existing customer base by 15% in
comparison to monthly sales...
Appendix 4
Objective 2

Increase number of first-time customers by 15% in comparison to number
of new customers of the last...
Appendix 5
Objective 2

Increase number of first-time customers by 15% in comparison to number
of new customers of the last...
Appendix 6
Objective 4

Increase monthly product sales by 10% compared to the same month the
last fiscal year
Avg Monthly
P...
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Stratosphere Salon Marketing Plan - Jessica Greschner

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Hair Salon Marketing Plan

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Stratosphere Salon Marketing Plan - Jessica Greschner

  1. 1. Stratosphere Salon COMM 468, Section 101 Colette Cheung 70875091 Jessica Greschner 27722107 Jasna Kamenjas 24980096 Daniel Kong 41960097 Hannah Martin 27435106
  2. 2. Agenda Situational Analysis Goals & Objectives Core Strategy Conclusion Situation Analysis | Goals & Objectives | Core Strategy | Conclusion
  3. 3. Stratosphere GOING  FORWARD   A+ract  new  customers   Improve  frequency  of  visits  from   exis>ng  customers   Increase  rental  chair  occupancy   Increase  product  sales     Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  4. 4. Industry Analysis Hair Industry in Canada Hair Industry in Canada (2012) •  Hair Industry in Canada is valued at $1.6B with an average growth of 2% Styling Agents 14% •  Salon sales make up 22.9% of the hair care industry 2-in-1 Products 5% Colourants 21% •  Industry is mature, saturated and highly competitive Shampoos 24% Conditioners 13% •  Little seasonality in sales, but mild increase in December Salon Industry 23% Hair Loss Perms/ 0% Relaxants 0% Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  5. 5. Industry Analysis C a t e g o r y / I n d u s t r y F a c t o r s - P o r t e r ’s 5 F o r c e s SUPPLIER POWER: MEDIUM COMPETITIVE RIVALRY: HIGH •  •  •  •  •  •  Limited number of suppliers distribute to Stratosphere High availability of substitute suppliers, but they do differ in quality and substance Supplier is important to the salon Salon contributes to a small proportion of supplier sales THREAT OF NEW ENTRANT: HIGH •  •  •  •  •  •  The market is already saturated There are no barriers to entry There are new buildings with retail space to which competitors could locate Experienced stylists are huge asset- a salon with good stylists can be a fierce competitor There are no economies of scale with independent salons Consumer base is growing Situational Analysis | Goals & Objectives •  •  Large number of salons Little evidence of differentiation among competitors High switching costs for stylists Product can be viewed as a commodity BUYER POWER: HIGH •  •  •  •  •  Many consumers with no salon loyalty Differentiation from services, not basic hair cut No switching costs for consumers Consume purchase frequency is personal Final product is important to consumer THREAT OF SUBSTITUTES: HIGH •  At home hair care is growing due to affordability and access to products on the market | Core Strategy | Conclusion
  6. 6. Industry Analysis Environmental Factors THE  MACRO  ENVIRONEMENT   Demographic  Forces   Economic  Forces   Technological  Forces   Poli>cal  Forces   Cultural  Forces   Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  7. 7. Industry Analysis Ke y S u c c e s s F a c t o r s ( I n t h e I n d u s t r y ) Quality of service Access to niche markets Business expertise of operators Prime location Ratio of new vs lost customers Situational Analysis Excellent employees Market leader SUCCESS | Goals & Objectives | Core Strategy | Conclusion
  8. 8. Company Analysis Ke y S u c c e s s F a c t o r s ( F o r S t r a t o s p h e r e ; P r e - S u r v e y ) Open long hours High-caliber service Stylists to fit any hair need Specialty services Excellent customer relationships Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  9. 9. Company Analysis People, Price, Place, Product, Place •  Salon & esthetic services •  Salon products PRODUCT •  Website & Social Media •  Granville Street •  Coupons •  Colors: black & white •  Fashion shows PROMOTION •  Prices comparable to high-end salons •  Junior Stylists charge 30-50% less PRICE Situational Analysis •  Foot traffic | PLACE •  12 Chair Renters, 1 Commission Stylists, 2 Apprentices •  Receptionist PEOPLE Goals & Objectives | Core Strategy | Conclusion
  10. 10. Company Analysis Sales Analysis TOTAL SALES SERVICE RETAIL Regular Requests 85.00% 74.00% 11.00% New Requests 8.20% 6.70% 1.50% Walk-Ins 1.50% 1.10% 0.50% Staff 1.70% 0.10% 1.60% Retail Only 3.90% 0.00% 3.90% TOTAL SALES 100% 81.90% 18.10% Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  11. 11. Primary Data Collection Ke y F i n d i n g s F r o m C u s t o m e r S u r v e y s & S t y l i s t I n t e r v i e w s Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  12. 12. Company Analysis Data Collection – Stylist Interviews CHAIR  RENTERS POPULATION  SIZE 7 METHOD  OF  DATA   COLLECTION One-­‐on-­‐one  interviews #  OF  FEMALE 2 (29%) #  OF  MALE 5 (71%) Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  13. 13. Company Analysis S t y l i s t I n t e r v i e w s – Ke y Ta k e a w a y s TOP 3 QUALITIES OF STRATOSPHERE People. Good Dynamic. Location Situational Analysis | Goals & Objectives VIBE OF STRATOSPHERE Family. Creative. Chill. Energetic. Cool. | Core Strategy | Conclusion
  14. 14. Company Analysis REASONS FOR WORKING AT STRATOSPHERE F o c u s G r o u p Ta k e a w a y s Situational Analysis Not Willing Very Willing WILLINGNESS TO ENGAGE IN SOCIAL MEDIA | Goals & Objectives | Core Strategy | Conclusion
  15. 15. Customer Analysis Data Collection – Existing & Potential Customer Surveys EXISTING  CUSTOMERS POTENTIAL  CUSTOMERS POPULATION  SIZE 50 50 METHOD  OF  DATA   COLLECTION Emailed  online  survey In  person  paper  survey %  FEMALE 73% 83% %  MALE 27% 17% Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  16. 16. Customer Analysis Identified Segments Young Trendsetters Situational Analysis Davie Street Guys | Goals & Objectives Business Professionals | Core Strategy Mama Bears West Side Moms | Conclusion
  17. 17. Customer Analysis: Existing Clients STRATOSPHERE BRAND ASSOCIATIONS Friendly 23% Good Quality Service 18% Trendy 15% Fun 11% Energetic Situational Analysis | Goals & Objectives | Core Strategy 7% | Conclusion
  18. 18. Most Important Salon Features EXISTING  CLIENTS   POTENTIAL  CLIENTS   1.  Quality of service 1.  Quality of service 2.  Personal relationship with 2.  Experience of hairstylist 3.  Good value for money hairstylist 3.  Experience of hairstylist 4.  Cleanliness 4.  Cleanliness 5.  Salon Atmosphere 5.  Salon Atmosphere 6.  Personal relationship with hairstylist 6.  Convenience of location 7.  Situational Analysis | Goals & Objectives | Convenience of location Core Strategy | Conclusion
  19. 19. Insight for Attracting New Clients Satisfaction Level vs. Importance Factors in a Hair Salon 100%   Exis>ng  Customers   90%   Poten>al  Customers   80%   70%   KEY TAKEAWAY: Stratosphere is 60%   50%   doing very well in 40%   areas potential 30%   customers deem 20%   important! 10%   0%   Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  20. 20. Customer Analysis Communicating with Customers PREFFERED COMMUNICATION CHANNELS Twitter (47%) Instagram (53%) Pinterest (20%) TOPICS OF INTEREST Facebook (87%) Beauty/ Skin (60%) Makeup Tips (53%) Email (53%) Hair Tips (93%) Fashion (53%) * Responses reflect those of existing customers Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  21. 21. Customer Analysis Re v e n u e S o u r c e s Share  of  Pocket  –  ExisDng  Customers   100%   80%   78%   60%   40%   31%   20%   0%   Services   Products   KEY TAKEAWAY: Stratosphere accounts for most of their customers salon services, but less of their product purchases Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  22. 22. Customer Analysis Core Customers 40% 73% 33% 30% 27% 10% 23% 19% 20% 19-24 4% 8% 25-34 29% 8% 2% >50 24% 4% 2% 0% 35-49 43% GENDER OF CUSTOMERS AVERAGE INCOME OF CUSTOMERS AGE OF CUSTOMERS SIZE   REFERALS   IMPORTANCE   PRODUCT   FREQUENCY   App. 13,800 requests / year, # of customers unknown 41% of customers were referred by a friend 90% of customers consider good hair important 68% of customers buy product from Stratosphere 46% of customers visit the salon every 5-8 weeks   Situational Analysis   |   Goals & Objectives |   Core Strategy   | Conclusion
  23. 23. Competitive Analysis Address Vancouver, BC D a t a C o l l e c t i o n – O b s e r v a t i o n & S e c o n d a r y Re s e a r c h POPULATION  SIZE METHOD | Goals & Objectives Observa>on LOCATION Situational Analysis 12 Downtown Vancouver | Core Strategy (7 identified as key competitors) | Conclusion
  24. 24. Competitive Analysis Ke y C o m p e t i t o r s & S t r a t e g i e s Zennkai Straight and Curl Hair Salon Holts Salon & Spa KEY COMPETITORS Pink Lime Salon & Spa Lounge Hair Studio Pony Hair Salon Situational Analysis | Goals & Objectives Moods Hair Salon | Core Strategy | Conclusion
  25. 25. Competitive Analysis Competitive Benchmark / Matrix 2   Situational Analysis 4   | 3   Goals & Objectives 5   | 5   Core Strategy 5   1   | 2   Conclusion
  26. 26. SWOT STRENGTHS WEAKNESSES OPPORTUNITIES T H R E AT S Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  27. 27. Goal & Objectives Improving the Stratosphere Marketing Mix Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  28. 28. Goals & Objectives Of the Marketing Plan EXISTING   CLIENTS   NEW   CLIENTS   RETAIN   CHAIR   RENTAL   PRODUCT   SALES   Situational Analysis •  Increase monthly service revenue from existing customer base by 15% in comparison to monthly sales of the last fiscal year. •  Increase number of first-time customers by 15% compared to number of new customers of the same month in the last fiscal year. •  Ensure retention rate of first-time customers matches industry standard of 33% by the same month in the next fiscal year •  Increase chair rental occupancy by 2-3 compared to chair rental rates 6 months prior. •  Increase monthly product sales by 10% compared to in the same month in the last fiscal year. | Goals & Objectives | Core Strategy | Conclusion
  29. 29. Core Strategy O b j e c t i v e s à S t r a t e g i e s à Ta c t i c s Situation Analysis | Goals & Objectives | Core Strategy | Conclusion
  30. 30. Core Strategy Positioning POSITIONING STATEMENT For the style-conscious customer who places great emphasis on their hair, and needs a great stylist to cut, color and style for any occasion. Unlike Holt, Pony or Mood’s, Stratosphere gives you the high-end hair services in a comfortable environment without the attitude. Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  31. 31. Core Strategy Ta r g e t i n g & S e g m e n t a t i o n Urban  Powerhouse   • Live  and  work  in  the  area   • Looking  for  quality,  dependable  service   Mama  Bear   • Demand  looking  their  best   • High  household  incomes   Davie  Street  Guys   • Invest  in  Their  Appearance   • Live  in  close  proximity  to  Stratosphere   Young  Trendse+ers   • Low  income,  but  HIGH  willingness  to  pay   • Early  adopters  of  the  latest  trends   Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  32. 32. Core Strategy Objective 1 INCREASE MONTHLY SERVICE REVENUE FROM EXISTING CUSTOMER BASE BY 15% IN COMPARISON TO MONTHLY SALES OF THE LAST FISCAL YEAR TACTICS STRATEGY 1 VIP / Loyalty card Email newsletter Situational Analysis | Goals & Objectives | $150     per  Year   Offer quick services Encourage greater frequency in which customers go to Stratosphere $400   For  100   No  Add.   Cost   Core Strategy | Conclusion
  33. 33. Core Strategy Objective 2 INCREASE # OF FIRST-TIME CUSTOMERS BY 15% COMPARED TO # OF NEW CUSTOMERS OF THE SAME MONTH IN THE LAST FISCAL YEAR TACTICS STRATEGY 1 Curb appeal- Sign & Window Display Expand digital presence Increase brand awareness of Stratosphere to the general public (Instagram breakout campaign, Yelp reviews, $0   Make a presence in the media with hair specialist column $TBD   reach out to bloggers) Stimulate referrals by providing incentives (discounts) Situational Analysis | Goals & Objectives $375   | Core Strategy | $10     Per  referral   Conclusion
  34. 34. Core Strategy Objective 2 INCREASE # OF FIRST-TIME CUSTOMERS BY 15% COMPARED TO # OF NEW CUSTOMERS OF THE SAME MONTH IN THE LAST FISCAL YEAR TACTICS STRATEGY 2 Place postcard ads and 1st-time visit coupons at nearby businesses Place 1st-time visit coupons in the mailboxes of new apartments Create stronger community ties with nearby businesses and client Situational Analysis | Goals & Objectives $100   For  100   $100     For  100   | Core Strategy | Conclusion
  35. 35. Core Strategy Objective 3 ENSURE THE RETENTION OF FIRST-TIME CUSTOMERS MATCHES THE INDUSTRY STANDARD OF 33% IN COMPARISON TO THE SAME MONTH IN THE NEXT FISCAL YEAR TACTICS STRATEGY 1 Welcome kit Wow first-time customers with an unexpected, unforgettable experience (sample products, contact card, etc.) Send thank-you email after appt. & reminder for next appointment (in addition to standard servicecoat, beverage, etc) Situational Analysis | Goals & Objectives Ask to schedule next appt. when customer leaves | Core Strategy | $7   Per  Kit   $12.50     Per  Month   No  Add.   Cost   Conclusion
  36. 36. Core Strategy Objective 4 INCREASE THE NUMBER OF CHAIR RENTERS BY 2 OR 3 COMPARED TO CHAIR RENTAL OCCUPANCY 6 MONTHS PRIOR STRATEGY 1 TACTICS Increase brand awareness of Stratosphere in the professional hair industry Situational Analysis | Goals & Objectives Ads in professional hair magazines $500  (~)   Per  Ad.   Increase presence in media $TBD   (hair specialist column-such as VanCity Buzz) | Core Strategy | Conclusion
  37. 37. Core Strategy Objective 4 INCREASE THE NUMBER OF CHAIR RENTERS BY 2 OR 3 COMPARED TO CHAIR RENTAL OCCUPANCY 6 MONTHS PRIOR STRATEGY 2 TACTICS Justify the above average price of Stratosphere chair renting Situational Analysis | Goals & Objectives Ensure junior stylists/receptionists clean & assist senior stylists No  Add.   Cost   Provide educational workshops targeted towards senior stylists No  Add.   Cost   | Core Strategy | Conclusion
  38. 38. Core Strategy Objective 5 INCREASE MONTHLY PRODUCT SALES BY 10% COMAPRED TO THE SAME MONTH IN THE PREVIOUS FISCAL YEAR TACTICS STRATEGY 1 Attach samples to full-sized popular products In store promotion (small tent signs) at styling chairs (provided by Drive awareness and penetration of hair products | $150   distributor) Adam’s   Pick   Situation Analysis TBD   Goals & Objectives | Each month a stylist pick their favorite product and it is marked Core Strategy | $15   Conclusion
  39. 39. Core Strategy Objective 5 INCREASE MONTHLY PRODUCT SALES BY 10% COMAPARED TO THE SAME MONTH IN THE PREVIOUS FISCAL YEAR TACTICS STRATEGY 1 Ask stylists to tell customers the products they are using (samples) Ensure Stratosphere is listed on distributors websites Situational Analysis | Goals & Objectives | No  Add.   Cost   Promote product brands on tent sign and in window display Drive awareness and penetration of hair products No  Add.   Cost   Cost  Covered   in  OB.  1   Core Strategy | Conclusion
  40. 40. Core Strategy Objective 5 INCREASE MONTHLY PRODUCT SALES BY 10% COMAPARED TO THE SAME MONTH IN THE PREVIOUS FISCAL YEAR TACTICS STRATEGY 2 Place small, low priced products next to cashier (travel sized items) $50   Increase sales through impulse buys Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  41. 41. Core Strategy Objective 5 INCREASE MONTHLY PRODUCT SALES BY 10% COMAPARED TO THE SAME MONTH IN THE PREVIOUS FISCAL YEAR TACTICS STRATEGY 3 Have retail displays with signs on how to best use the product $100   Outline benefits of salon over drug store products on small signs $100   How   To..   Educate customers on how to use products Have customers participate in styling of hair Situational Analysis | Goals & Objectives | Core Strategy | No  Add.   Cost   Conclusion
  42. 42. Implementation Three Phase Process Jan.   Sidewalk  Sign  and  Window  Display   Social  Media   PHASE  1   Post  Card  Ads  and  1st  Visit  Coupons   Schedule  Next  Visit   Aug.   Sept.   Oct.   Nov.   Dec.                                                                                                                                                                                                                   Offer  Quick  Services                           é  Rev.  from  Exis>ng   Email  NewsleNer   Customers           VIP  /  Loyalty  Card       *                       Tell  Customers  About  Products  they  are  Using   Ensure  Listed  on  Distributor  Websites   Product  brands  on  Window/Sidewalk  Display   Place  Small  Low-­‐Cost  Items  Next  to  Till   Retail  Displays  with  “How  To”  Descrip:ons   Small  Signs  -­‐  Salon  vs  Drug  Store  Products   Have  Customers  Par:cipate  in  Styling  of  Hair   |          Jr.  Stylists/  Recep:onists  Assist  Sr.  Stylists   *  SoXware  Implemented  in  Thank-­‐you  email           Increase  Presence  in  Media   Educa:onal  Workshops  for  Sr.  Stylists   PHASE  2   July           Ads  in  Magazines   PHASE  3   June       Thank-­‐you  email   Situational Analysis May       Welcome  Kits   Increase  Product   Sales     April       1st  Time  Visitor  Coupons   Increase  #  Chair   Renters   Mar.           Increase  #  of  First   Hair  Specialist  Column   Time  Customers   Discounts  to  S:mulate  Referrals   Retaining  New   Customers   Feb.                                                                                                                   **                                                                                       **  Implemented  in  Phase  1                   Goals & Objectives         |             Core Strategy     |                         Conclusion
  43. 43. Conclusion Increase service revenue of existing customers Increase number of first time customers Ensure retention rates of new customers Increase chair renting occupancy Increase product sales S T R A T E G I E S   T   A   Situational Analysis C   | T   Goals & Objectives I   | Core Strategy S   C   | Conclusion
  44. 44. Hairdressers are a wonderful breed. You work one-on-one with another human being and the object is to make them feel so much better and to look at themselves with a twinkle in their eye. - Vidal Sassoon Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  45. 45. Appendix Slides S u p p l e m e n t o f P r i m a r y Re s e a r c h Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  46. 46. Appendix 1 C u s t o m e r A n a l y s i s - P s y c h o g r a p h i c Tr a i t Importance of Having Great Hair Everyday 70%   60%   50%   40%   Current Customers 30%   Potential Customers 20%   10%   0%   Very Unimportant Situational Analysis Somewhat Unimportant | Neutral Goals & Objectives Somewhat Important | Very Important Core Strategy | Conclusion
  47. 47. Appendix 2 Competitive Benchmark / Matrix 2   Situational Analysis 4   | 3   Goals & Objectives 5   | 5   Core Strategy 5   1   | 2   Conclusion
  48. 48. Appendix 3 Objective 1 Increase monthly service revenue from existing customer base by 15% in comparison to monthly sales of the last fiscal year. Monthly Service Revenue Existing Client Base % $52,000 X Current $38,480 Situational Analysis 74% Monthly Service Revenue from Existing Client Base = Target X Goal Revenue 115% | Goals & Objectives $38,480 = | Core Strategy $44,252 | Conclusion
  49. 49. Appendix 4 Objective 2 Increase number of first-time customers by 15% in comparison to number of new customers of the last fiscal year. Current New Customers / Year Goal for New Customers / year % Increase 1,111 1,300 1,300 / 1,111 = 1.1701 Goal = ~15% Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  50. 50. Appendix 5 Objective 2 Increase number of first-time customers by 15% in comparison to number of new customers of the last fiscal year. Current New Customers / Year Goal for New Customers / year % Increase 1,111 1,300 1,300 / 1,111 = 1.1701 Goal = ~15% Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  51. 51. Appendix 6 Objective 4 Increase monthly product sales by 10% compared to the same month the last fiscal year Avg Monthly Product Sales X 110% Monthly Increase of $9,175 $10,092.5 ~ $900 Situational Analysis | Goals & Objectives | Core Strategy | Conclusion

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