Business Plan on "Marketing Plan for Nail Salon"

Business Plan 12 pages (3283 words) Sources: 18

[EXCERPT] . . . .

Marketing Plan for Salon

Destined at Shaker Hts Ohio there's a family salon named Cherie's Hair Salon. The entire family can be contented by it in a single suitable destination. Admissions are available on appointments and walk-in as well. The salon renders services to men, women or children and also keeps retail hair care goods for selling purpose. It is capable of serving the whole family quickly and in a single suitable trip (Marketing Plans, 2011).

Cherie's Hair Salon will outshine in comparison with the other quick salons due to in depth concentration relating to the service of customers. Concentration on customers without announcement, it will become a slow but a sure process to get the loyal market as they are rendering services to the whole family considering that most of this is based the long-term relationship with their customers. However the location of Cherie's Hair Salon magnetized huge quantity of traffic walks in and can be the last factor in consideration regarding its prosperity (Marketing Plans, 2011).

Cherie's Hair Salon oriented progressive growth after just four months of its inception since late 2010. Profits are expected to be generated in the ninth month and third year is expected to bring an approximate of $443,000 revenue out of which $61,000 is expected to be the profit (Marketing Plans, 2011).

First Draft

2.0 Situation Analysis

It's the first year of operations for Cherie's Hair Salon as a developing and initial starting company. However it has identified that complete and planed marketing in needed for progress as well as generating profits. A broad spectrum of hair cutting services is rendered by Cherie's Hair Salon. All the Cherie market needs is to hold a single place to be considered which is suitable price to be charged and the work is of quality as well as servicing of the complete family is undertaken (Marketing Plans, 2011).

2.1 Market Summary

Most permanent and valued customers' common features are being well judged by us as Cherie's Hair Salon has fluent knowledge about the market as well as customer behavior patterns and demands. Extent of this knowledge is been influenced further by those who get served, as the employees at Cherie's constantly focus on the appropriate needs of the customers and how they could be served better by the services and packages provided at Cherie's Hair Salon (Marketing Plans, 2011).

Market Analysis

2010

2011

2012

2013

2014

Potential Customers

Growth

CAGR

Males

9%

54,000

58,860-64,157-69,931-76,225

9.00%

Females

10%

28,000

30,800-33,880-37,268-40,995

10.00%

Mothers w/children

9%

23,400

25,506-27,802-30,304-33,031

9.00%

Total

9.27%

105,400-115,166-125,839-137,503-150,251

9.27%

The table and graph above shows the distribution of our customers and the potential growth that we calculate in the coming years (Marketing Plans, 2011).

Market Needs

The broad spectrum for styling as well as hair cutting has been provided by the Cherie Hair Salon at a single approach. Below are the advantages given by some of the customers of Cherie's Hair Salon (Marketing Plans, 2011)

* Expediency: No appointment is necessary for Cherie's Hair Salon either for serving full family. Furthermore centrally destined locale is the front door of Cherie's Hair Salon.

* Service to Customers: Staff is especially trained to serve the client with full consideration.

* Viable fee: the price charged by Cherie's Hair Salon lies in between the traditional barber and a fanatical women's salon (Marketing Plans, 2011).

Market Trends

Merger is the market trend of the hair salon and styling industry. High-end salons and complete service providers like whole family firms (e.g. Best Cuts) are some of the other examples that fall under such mergers. Last five years witnessed so much progression in the chain salons located in main urban areas that purchase of independent salons and transferring them in line has become a common trend. That alongside the opening of new salons in the form of franchises and chains are been taken in as successful business extensions. In addition this inclination arose with the complete services of family hair cutting and styling salons (Marketing Plans, 2011).

Measurement of cost saving is similar to other mergers of industries and is the main reason of merging. However this combining fashion is not adopted by Cherie's Hair Salon. Stiff believe of approach to its confined market has been done by Cherie's Hair Salon and it is suggested by them that it is better to have an individualistic approach on their market rather than becoming a part of many chain belonging to a bigger machine (Marketing Plans, 2011).

The graph below shows the historic growth of merged salons, or ones that are part of larger franchises, that cater to the entire family:

Market Growth

There has been a 5% growth rate in the realm of hair salons over the last seven years. The variations of the economical changes didn't affect this industry at all. However during the golden days when economy is was on a growth pattern, women used to adhere to extra services like dying and coloring their hair or giving perms to them, as in a generalized view the usage blueprint is still same. Hence onwards amount of time for getting haircut is demanded by the clients, which is a sensitive viewpoint, without depending upon the surroundings and conditions of the economy and financial conditions (Marketing Plans, 2011).

2.2 SWOT Analysis

The positive chances and negative pressures faced by Cherie's Hair Salon have been analyzed in the form of a SWOT analysis which incorporates main points regarding strengths & weaknesses in an organization (Marketing Plans, 2011).

Strengths

* Having good space for retailing in a glowing mall.

* Qualified staff being expertise in the hair cutting with a broad portfolio of styles & they are concentrating on the customer needs, under which business application takes place.

* Services offered in a broader spectrum.

* Comparatively low fees (Marketing Plans, 2011).

Weaknesses

* Being new in the industry Cherie's Hair Salon lessens with the brand image which our rivals had since they have been functional for a long time.

* Constant survival for being on the perimeter, accordingly with style and fashion.

* Huge initial costs being enunciated as we are still in the initiation launching stages (Marketing Plans, 2011).

Opportunities

* This market is a constant growing market which can never get affected by the surroundings of the economic environment.

* With the increment of clients portfolio there's been a capability for decrement of marginal fixed costs.

* Sales growth could be enhanced due to the presence of more people from a single family as regular clients of Cherie's Hair Salon (Marketing Plans, 2011).

Threats

* the salons in a chain form stronger business networks and can pose a stiff and hefty rivalry (Marketing Plans, 2011).

* Allocation of Cherie's Hair Salon in a mall which regards to a variation in traffic arrangement (Marketing Plans, 2011).

2.3 Competition and Buying Patterns

Rivalry of Cherie's Hair Salon incorporates:

1. Usual Barbers: They don't have any perception of appointments as walk in service is generally the custom. As far as they are concerned, providing whatever sort of hair cut a customer requires in on the cards. However in general they are giving typical and conservative or uncomplicated and easy haircuts. The pros & cons of this is a less expensive service to be utilized whereas customer has to wait for long time respectively (Marketing Plans, 2011).

2. Contract-based quick salons: Supercuts and Best Cuts are examples in this regard. These are being promoted as a franchised version of Cherie's Hair Salon. The most benefit that the customers can get with this format is the similarity of showroom destined at appropriate locations and the likeability factor amongst the target audience for this format is high (Marketing Plans, 2011).

3. Self-sufficient Salons: Broad spectrum of clients couldn't be served by them and only few clients are viewed as suitable subjects or target audience by them (Marketing Plans, 2011).

There's a wide distinction in the way men and women purchase their services at salons. Men are more price-conscious and seek for the easiest way to get their haircuts. Furthermore, they are not very much caught up in their hair cutting assignments. On the contrary women are much more conscious in this regard and have strong intentions to create a mental relation with their stylists so that they can get to their viewpoints. Since they get satisfied with them, they are in for the long run as a loyal customer with an intentional contract and thereafter the women leave their hair in their hands without a further analysis of risk (Marketing Plans, 2011).

2.4 Service Offering

Complete family package is offered regarding hair styling & cutting by Cherie's Hair Salon. Haircuts for children, men and women as well as dying, coloring and permanent services are being offered as well either on appointment or walk in basis (Marketing Plans, 2011). Aside from these, some of the other services include:

Shampoo services

Conditioners,

Re-constructors,

Use of combs, brushes & other styling equipments that amount to nearly 15% of sales

Use… READ MORE

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