The Makeover Beauty Salon Marketing Essay

The Makeover strike beauty beauty beauty parlour securities industrying EssayIntroductionThe Makeover dishful salon is a beauty beauty shop that aims at rendering upper limit guest satisf run by providing the best improvement, using high quality overlaps, and building a pleasant environment at an affordable price, to meet the need of customers of exclusively social status. I am the owner of The Makeover smash beauty salon and I perceive an un fulfil customer need for a low-cost salon that provides maximum flexibility and great customer attention. Using this strategy, The Makeover Beauty beauty shop forget gain much reputation and create long-term relationships with its customers.The Makeover Beauty Salon is the altogether expanse salon to be online and fully automated and will shoot the most aggressive marketplaceing campaign of any other area salon.The Makeover Beauty Salon will target both different market fragmentsYoungsters will typically make up 70-75% of th e clientele.Young mothers with children.http//www.bplans.com/hair_salon_ melodic line_plan/images/bc49aab41b914ef99dca65af1ff71a82.pngFuture OpportunitiesThe main segment of the population that is targeted by the salon is the younger contemporaries, which is the youth. It has been noticed that adolescents homogeneous different and new looks, which are apart from others. They like to look truly special and The Makeover Beauty Salon has all the means to satisfy the needs of the main targeted group.This opportunity will be researched and developed on a trial basis. For example, e real weekend, race skunk go to the salon and i will do their makeup or hair. If successful, it could become a major new source of income without creating the need for surplus staff or production space.The management team of The Makeover Beauty SalonI will be the alone manager of the salon. I will nurse as assistant, Miss Shazia. The latter takes the responsibility of supervising the workers when I will not be present at the salon. Miss Shazia has a degree in management of salon and she has two eld of experience from another salon.I deplete also appointed two complainttakers, Mrs Aisha and Miss Dolly, who will take oversee of customers children when the customers will be pampering themselves. Growth opportunities improve employee retention within our industry. The salon acknowledges the need for growth of the individual.II The BusinessThe companyAfter a tedious search for a suitable place for the salon, finally one was found at the centre of the island. The location of the salon would be perfect, as it can welcome customers from all over Mauritius. The exact location is in the centre of Curepipe. The upstartly completed highway in the surrounding offershundreds of thousands of local residents, shoppers from outside the area, and travelers that use of goods and values this new highway.With this high concentration of customers thereis no big and sophisticated salon in the loc ality. This is one of the main advantages of affording the salon at that particular proposition location.Services and products offeredThe Makeover Beauty Salon is considered an innovating beauty salon which offers a wide weave of services that includeHaircuts, relaxers, perms, colors, shampoo, conditioning, curling, reconstructing, weaving, and wavingNailsmanicures, pedicures, polish, sculptured nailsSkin premeditationEuropean facials, body waxing, massageMakeup bridal makeup, casual makeup, formal makeup, amongst othersService is offered on a walk-in basis or by appointment. The Makeover Beauty Salon will emphasize a customer-centric service where the customers needs are always the priority.The Makeover Beauty Salon will also sell hair care products, which is forecasted to account for about 15% of exchanges. These professional-quality supplies will include shampoos, conditioners, brushes, combs, and other styling aids.Company OverviewThe Makeover Beauty Salon is located in Cure pipe and will offer affordable priced, cheerful hair styling. The Makeover Beauty Salon will accept walk-ins as well as appointments for the entire family. The salon will grow its market share found on overlord customer attention. The Salon is a family hair salon, also known as a strong hair salon and this new salon has everything to set up a new furnishpillar tread and disguise people in an unexpected way. It is owned by Miss Chellen, who has recently returned from the United States, with innovative ideas, after advanced studies about the fashion and makeup line, and also in beauty salon management.Company OwnershipThe Makeover Beauty Salon will be entirely owner by me. I guide make a degree in Beauty Salon management and a degree in General Cosmetology in the United States. I also worked in a salon for more than than than 5 years there. I have a very friendly approach in the salon and when I am tutoring.Salons motto The trend begins hereVision MissionThe Makeover Beaut y Salons vision is to create a harmonious, productive, and profitable salon environment, supplying the community with Avon cosmetology.The mission statement is very clear The Makeover Beauty Salon has been ceremonious to set a new path in the beauty line by providing an exceptional service which aims at satisfying people of all age. Through its services, the salon aims at exceeding customers expectations.ObjectivesTo cater for the fast changing trends of makeup and hair bearings.To make people look more special and different from others.To supply services and products that enhances our clients physical appearance and mental relaxation.Keys to triumphSet up the salon in a location easily accessible to everyone.The environment should be very appealing, friendly and relaxing.Try to be as innovative as possible in styles.Dare to try well-nighthing new.Aim at complete customer satisfaction by fling the best service at affordable prices.The Makeover Beauty Salon can best be described a s presently being in the business of cosmetology, education, and wellness. In recent times our key strengths have been customer service.The Makeover Beauty Salon will use automation to keep hold of clients. According to studies, it takes 3 times the hail of effort to attract a new client than the effort to retain a satisfied client. at present, 10% of all salons are automated. in the vicinity, 3 salons are automated and none use the technology to market and track clients. Automation is a key to growing and maintaining our target market.Goals and ObjectivesIt is the goal of The Makeover Beauty Salon to provide the community with an institution of cosmetology that targets all socioeconomic standings and is a model for the industry nationally.Startup SummaryAfter several months of search for a salon to purchase, the owner decided to start a salon from the ground up. The Makeover Beauty Salon will incur the following start-up costsComputer with point of sale terminal.Computer with prin ter for back office.Five cutting stations, each station requires a barber chair, cabinet, large mirror, blow dryer, curling iron, electric razor, several pairs of scissors, sprinkle bottle, two sided mirror, and assorted combs and brushes.Desk for reception area.Three couches for the reception area.Display shelf for sale of retail products.Assorted plants.Assorted toys for the children.Legal fees for business formation and generation/review of contracts.http//www.bplans.com/hair_salon_business_plan/images/6ff2aec4851d460cb0a964e4122e4fa2.pngStartup fundingStart-up Expenditure to strain$2000Start-up Assets to Fund$104,000 natural Funding Required$106,000AssetsNon-cash Assets from Start-up$8,450 bullion Requirements from Start-up$89,720Additional gold Raised$0Cash Balance on Starting Date$89,720 bring Assets$98,170Liabilities and ceilingLiabilitiesCurrent acceptation$0Long-term Liabilities$40,000Accounts Payable (Outstanding Bills)$0Other Current Liabilities (interest-free)$0Tota l Liabilities$40000CapitalPlanned investmentChellen$100,000Investor 2$0Other$0Additional enthronization Requirement$0Total Planned Investment$100,000Loss at Start-up (Start-up Expenses)($1,100)Total Capital$98,900Total Capital and Liabilities$104,000Total Funding$106,000Start-upRequirementsStart-up ExpensesLegal$1,000Stationery etc.$100Other$0Total Start-up Expenses$2,000Start-up AssetsCash Required$89,720Other Current Assets$0Long-term Assets$7,000Total Assets$104,000Total Requirements$106,000III Management TeamI will be running(a) full time at the Makeover Beauty Salon. She will be in charge of all recruitment and training, purchasing, and retail gross sales. Apart from the assistant manager and the two caretakers, I will also employ a receptionist totake care of all of the appointments as well as the people who walk in, and be responsible for(p) for the point of sale.The receptionist will be paid an hourly wage. I even plan to hire some part-time hair stylists during wedding periods and the eves of festivals, which will persist on an hourly/commission basis.I thought of using a partial commission basis to create incentives for greater customer attention. The better service employees provide to their customers, the greater customer satisfaction will be derived and the more money they will make off commissions. Miss Chellen will be delightful to pay for this type of performance.IV Organizational StructureThe organisational structure of The Makeover BeautyThe untested Looking salon will be like a mat organisation structure. It is supervised closely by the founder. Thus, efficiency is maintained and so is the satisfaction of customers. The salon is structured as follows in the diagram below.DirectorChildren Caretakersconductor of salonAssisstant ManagerPart-timersPart-timersPart-timersDiagram 1 This represents the business structure.Intellectual PropertyThe patent license, trademark and copyright agreements have already been applied for approval.V att ention AnalysisSWOT AnalysisStrengthsoutstanding location.Well-qualified employees with good hair cutting skills with a wide style collection, andCustomer-focused business practices.A wide range of services offered. Cutthroat prices.WeaknessesAs a new entrant to the market, The Makeover Beauty Salon lacks brand equity that many other salons have gained over years of service.Large costs related with a start-up company.OpportunitiesA becalm growing market that is traditionally unaffected by the economic environment.The ability to decrease borderline fixed costs as the customer base grows.Increasing sales opportunities as more people from an individual family visits The Makeover Beauty Salon.ThreatsCompetition from already established salons.A change in traffic patterns as they relate to the mall where The Makeover Beauty Salon is located.The hair styling industry is highly divided with national chains, some of which operates diverse franchises catering to all the market segments, an d also including thousands of mom and pop salons that are very limited in scale and services. This makes for an extremely aggressive market that has low barriers to entry and exit. Moreover, the customers of hair styling have considerable control imputable to the low switching costs they have. However, most companies have tried to pursue only one general strategy in gaining more reputation. The Makeover Beauty Salon is of the view that that it is possible to offer a differentiated service through superior customer service at no greater considerable cost if the right employee incentives are provided.With this strategy in mind, the salons purpose is to boost the look of clients served by at least 30% per year.Target MarketThe Makeover Beauty Salon will be targeting two different groups of customers, moreover will lay more emphasis on the youths. It will work hard to distinctly appeal to each of these groups. By focusing on more than one group, the salon is minimizing its lay on the line that in a downturn one group will negatively affect the company.Market SegmentationThe Makeover Beauty Salon will target troika different market segmentsYoungsters will normally make up 70-75% of the clientele, as they are very conscious about looking good, having perfectly trimmed eyebrows and they like to keep changing their styles regularly.Young mothers with children. Most young children are notoriously difficult when it comes to getting haircuts. A family style salon is a more mellow place that allows the children to play while they are waiting and thus will work with the parents in calming the kids nerves when they are ready for their shearing.Target Market Segment StrategyThe Makeover Beauty Salon will target each of the two groups separately. The youngsters will be pampered in a very bright, appealing, colorful and agreeable atmosphere. Employees will use the latest equipment available with them, which would suit their preferences and with which they will feel at e ase.The Makeover Beauty Salon will alsotarget mothers with children by offering the kids toys to play with while they wait and child-friendly hair stylists. Moreover, children will receive a special rate reflecting the fact that childrens hair grows so fast that it can be costly to keep up with regular cuts, as well as the recognition that it generally takes lesser time to cut a childs hair so it should be naturally less expensive.Competition and Buying PatternsThe Makeover Beauty Salon competitors includeTraditional barbers. They do not work on appointments as it offers an open door service. While barbers are willing to give you any(prenominal) cut you want, they are generally providing straight forward haircuts, typically on the conservative side. The advantages of a barber are they are low-cost and easy to use. Their disadvantages is often conservative styling capacities, sometimes a long wait as the barber may be an old timer who enjoys to chit chat.Franchised quick salons. An e xample of this would be Supercuts or Best Cuts. In essence this is a franchised version of The Makeover Beauty Salon. The advantage of this style is the store will be the same from location to location and some people like this predictability.Independent salons. These salons typically focus on a specialized niche and do not serve a large group of customers. The advantages to these could be an independent salon that caters for all of your needs. The disadvantage is that because they tend to be more focused, more often than not this type of salon will not offer exactly whatcustomers are looking for.Competitive EdgeThe Makeover Beauty Salon aims to be very different from the beauty salons which offer only one or two services. From surveys, it has been concluded that customers often get frustrated as they have to get their hair done at one place and facial and makeup done at another place. This becomes very annoying for clients as they have to travel a lot and it is tiresome as well. T herefore the Makeover Beauty Salon plans to offer all these services under the same roof. As such, clients will be more at ease to make themselves beautiful.There exist several salons that are already proving the same services as the Makeover Beauty Salon, but they charge very high prices which everybody cannot afford as these salons are situates mostly in towns, where high rent have to be paid. Therefore, to attract the maximum number of customers, the Makeover Beauty Salon plans to offer better quality service than the other salons, but at affordable prices so that everyone can afford making then look beautiful, especially the youngsters, as they are the one that the salon is targeting at.Basically the atmosphere prevailing at the Makeover Beauty Salon will be very cozy and relaxing, where clients would love to be pampered. A welcoming drink will be served to clients as they enter the salon they can chose amongst tea, coffee, juice, soft drink. A television receiver will be loca ted in the waiting room and a radio in the hair-drying area, as this may take some time.VI market PlanMarketing StrategyThe Makeover Beauty Salon has a very simple marketing strategy satisfying its clients. Miss Chellen is of the view that when a customer leaves her salon, he/she should have a new look which would be perfect for the occasion the latter would be attending, and the latter should also be representing the Makeover Beauty Salon through his/her makeup and hairstyle the client should be a medium of portraying the salons qualities, service and image.Miss Chellen has no plans to advertise her new salon. According to researches, a satisfied customer is able to influence 11 14 people positively. Therefore, the owner of the salon is of the view that its the satisfied customers that will bring new customers to her salon and her business grows. She has, in her mind, a strategy to reward her potential clients who are able to attract new customer into the salon. sales StrategyTh e Makeover Beauty Salon sales approach will be based on exceptionally professional communications with the customer. Normally the quick salons lay emphasis on being quick and inexpensive, often at the cost of customer service. Anytime that a potential customer will talk with someone at the Makeover Beauty Salon, the owner/employee will have an opportunity to impress the customer. Employee training will emphasize seizing these opportunities.The Makeover Beauty Salon will also have the chance to increase sales of its retail hair care products every time it has a customer in the chair. The Makeover Beauty Salon offers interesting discounts on the hair care products for employees to use these products, so that they can explain to the customer about their personal experiences. Additionally, the Makeover Beauty Salon offers a product-based commission structure for the hair care products where they give away the product to the employee for commissions for selling the items to their custome rs. These personal testimonials and commission structure will allowthe salon to generate good sales from the retail hair care products.Sales forecastsThe foremost diagram above depicts the first years forecast of the Makeover Beauty Salon sales. In the first 4 months, sales will be very steady as the salon will experience new customers, who will get to know about the services that the salon offers. During the subsequent months, an increase in all the services offered is expected, as the customers will be satisfied with the service of the salon.Sales Forecast division 1Year 2Year 3SalesYoungsters$20,150$35,260$41,100Women with small children$2,015$3,526$4,110Retail hair care products$29,225$32,975$40,ergocalciferolTotal Sales$51,390$71,761$85,710Direct Cost of SalesYear 1Year 2Year 3Youngsters$2,600$4,750$4,900Women with small children$260$475$490Retail hair care products$14,500$26,000$27,500Subtotal Direct Cost of Sales$17,360$31,225$32,890VII Operation PlanFacilitiesThe salon will be offering fellowship styling and makeup for brides or any other special weekends, but for that, an appointment is despotic this should be done at least 3 weeks before the due date. Potential clients will not be charged with the travelling costs.Hours of operationThe salon will be open week from 8 am to 5pm on Monday to Saturday. However, on Saturdays and public holidays, it will be opened from 10 am to 1 pm.Employee Training EducationEmployees will be trained not only in their specific styling duties but in the philosophy and practical applications of our concept. They will receive broad tuition from the owner and be kept informed of the latest information concerning styling and makeup applications through continuous training.Systems ControlsA big emphasis is being set(p) on extensive research into the quality and integrity of our products. They will invariably be tested for our own high standards of effectiveness and professionalism. Cosmetic products costs and enrolme nt control will be handled by our computer system and examine daily by management.FacilitiesThe salon will be offering home styling and makeup for brides or any other special weekends, but for that, an appointment is compulsory this should be done at least 3 weeks before the due date. Potential clients will not be charged with the travelling costs.Hours of operationThe salon will be open week from 8 am to 5pm on Monday to Saturday. However, on Saturdays and public holidays, it will be opened from 10 am to 1 pm.Employee Training EducationEmployees will be trained not only in their specific styling duties but in the philosophy and applications of our concept. They will receive extensive information from the owner and be kept informed of the latest information concerning styling and makeup applications through continuous training.Systems ControlsA big emphasis is being placed on extensive research into the quality and integrity of our products. They will constantly be tested for ou r own high standards of effectiveness and professionalism. Cosmetic products costs and inventory control will be handled by our computer system and checked daily by management.VIII pecuniary PlanStart-up FundingStart-up Expenses to Fund$1,817Start-up Assets to Fund$60,600Total Funding Required$62,417AssetsNon-cash Assets from Start-up$60,100Cash Requirements from Start-up$500Additional Cash Raised$0Cash Balance on Starting Date$500Total Assets$60,600Liabilities and CapitalLiabilitiesCurrent Borrowing$0Long-term Liabilities$61,917Accounts Payable (Outstanding Bills)$0Other Current Liabilities (interest-free)$0Total Liabilities$61,917CapitalPlanned InvestmentOwner$500Investor$0Additional Investment Requirement$0Total Planned Investment$500Loss at Start-up (Start-up Expenses)($1,817)Total Capital($1,317)Total Capital and Liabilities$60,600Total Funding$62,417Important AssumptionsThe following section will detail important Financial Assumptions.General AssumptionsYear 1Year 2Year 2Plan Month123Current Interest Rate10.00%10.00%10.00%Long-term Interest Rate10.00%10.00%10.00% tax revenue Rate30.00%30.00%30.00%Other000Projected Cash FlowThe cash flow depends on assumptions for inventory turnover, payment days, and accounts receivable management. Our communicate same-day collections are critical, and are reasonable and customary in the salon industry. We do not expect to need significant additional support even when we knock over the less profitable months, as they are expected.http//www.bplans.com/hair_salon_business_plan/images/d5e510e0cfe04c2484123f1575a810dc.pngProjected Cash FlowYear 1Year 2Year 3Cash reliableCash from OperationsCash Sales$277,143$504,802$525,337Subtotal Cash from Operations$277,143$504,802$525,337Additional Cash ReceivedSales Tax, VAT, HST/GST Received$0$0$0New Current Borrowing$0$0$0New Other Liabilities (interest-free)$0$0$0New Long-term Liabilities$0$0$0Sales of Other Current Assets$0$0$0Sales of Long-term Assets$0$0$0New Investment Receiv ed$0$0$0Subtotal Cash Received$277,143$504,802$525,337ExpendituresYear 1Year 2Year 3Expenditures from OperationsCash Spending$251,600$275,200$279,200Bill Payments$101,816$172,090$181,489Subtotal spent on Operations$353,416$447,290$460,689Additional Cash SpentSales Tax, VAT, HST/GST Paid Out$0$0$0Principal Repayment of Current Borrowing$0$0$0Other Liabilities Principal Repayment$0$0$0Long-term Liabilities Principal Repayment$0$0$0Purchase Other Current Assets$0$0$0Purchase Long-term Assets$0$0$0Dividends$0$0$0Subtotal Cash Spent$353,416$447,290$460,689Net Cash Flow($76,273)$57,513$64,648Cash Balance$20,307$77,820$142,467Projected Balance Sheet of The Makeover Beauty SalonYear 1Year 2Year 3AssetsCurrent AssetsCash$20,307$77,820$142,467Other Current Assets$0$0$0Total Current Assets$20,307$77,820$142,467Long-term AssetsLong-term Assets$7,320$7,320$7,320Accumulated depreciation$1,464$2,928$4,392Total Long-term Assets$5,856$4,392$2,928Total Assets$26,163$82,212$145,395Liabilities and Ca pitalYear 1Year 2Year 3Current LiabilitiesAccounts Payable$11,945$14,341$14,968Current Borrowing$0$0$0Other Current Liabilities$0$0$0Subtotal Current Liabilities$11,945$14,341$14,968Long-term Liabilities$45,000$45,000$45,000Total Liabilities$56,945$59,341$59,968Paid-in Capital$60,000$60,000$60,000Retained Earnings($1,100)($90,782)($37,130)Earnings($89,682)$53,652$62,557Total Capital($30,782)$22,870$85,427Total Liabilities and Capital$26,163$82,212$145,395Net Worth($30,782)$22,870$85,427IX Critical Risk factorsManagement Risks It can be considered the identification, assessment, and prioritization of fortunes followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate event or to maximize the realization of opportunities. Risks can come from uncertainty in financial markets, regurgitate failures and legal liabilities in the Makeover Beauty Salon.Other potential Management risks may beDefective produc ts/services.Health and safety incidents.Faulty equipment.(e.g. damaged wires or sockets)environmental risks (e.g. noise pollution and the use of eco-friendly product)Technological obsolescence.Theft of assetsMarketing Risks Marketing is a risk and you cant go on happily thinking that whatever youre doing is working for the best of the organization. By the time you do so, the market will have shifted from under your feet.Some marketing risks may beGovernment action ( pass law to limit the time for using salon till late night)Rival (imitation of ideas is done quickly by competitors)Operating Risks It is a risk arising from execution of a companys business functions. As such, it is a very broad concept including e.g fraud risks, legal risks, physical or environmental risks in the Makeover Beauty Salon.Other forms of operating risks may bethe type of product received from suppliersthe neighbourhood problem which can halt workthe defect that hairstyle is not done according to customer wi shregulation which employee dont acceptculture for where on a day some worker have to leave for prayerFinancial Risks It is basically any risk related with any form of financing. Risk is probability of unfavorable condition in financial sector it is the probability of developed return being less than expected return for a business company.Intellectual Property Infringement It is the infringement of an intellectual prop