Marketing plan for Cherie's Hair Salon in Shaker Heights
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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 of hair care products (Marketing Plans, 2011).
2.5 Keys to Success
Major factors comprise:
* Expertise.
* Suitability.
* Consideration of customer (Marketing Plans, 2011).
2.6 Critical Issues
Being a growing and initial starter, Cherie's Hair Salon is in the exploratory period. Main issues regarding this are constant loom for financial reticent, possible extension at a rational charge as long as we can create a finance caring sagacity too (Marketing Plans, 2011).
Second Draft
3.0 Marketing Strategy
Budget of marketing for Cherie's Hair Salon is based around appropriate distribution of limited resources. The money adhered for marketing have been used in other senses like paying rent. Selection of a mall with appropriate location has gained a lot of walk-ins due to traffic majority. Such sort of locations cause high costs than initially anticipated especially if the location of the shop in a fine commercial area (Marketing Plans, 2011).
Following marketing plans are expected to attract money for the marketing budget in the coming years:
* Advertisements: The Plain dealer and the Sun dealer are two newspapers in which the marketing of our salon will be done through advertisements. These two papers are the focus of our marketing agenda because of the geographical distribution that they have which matches our target audience (Marketing Plans, 2011).
* in store & exhibit through store face: Even in the huge traffic of big walk-through these can be foreseeable (Marketing Plans, 2011).
3.5 Positioning
We present ourselves as a complete service, suitable family hair salon and nonstop high quality customer services. Influence of Cherie's Hair Salon rivalry perimeter is being done to achieve the desired results (Marketing Plans, 2011):
* Huge concentration towards customer support is the basis of major rival competition for Cherie's Hair Salon. it's been identified that huge crowds can cause hindrances and drawbacks in this hair styling and cutting industry. The capability and success of Cherie's Hair Salon is dependent on the how clients satisfaction is achieved. A crucial issue which has been taken into account by Cherie's Hair Salon as a quick salon is to comprise on lower rates and to surround ourselves with a random number of experts from the industry in order to earn maximum profits (Marketing Plans, 2011).
* the investment done by the Cherie's Hair Salon, which undertakes time as well money, in the training has been done to gain a long-term relation with the customers and to make them our regular customers as easily and quickly as we possibly can. The key factor by which Cherie's Hair Salon would achieve this is the intense care of their clients (Marketing Plans, 2011).
3.6 Strategy Pyramids
Shaker Heights area is the main and universal aim of Cherie's Hair Salon which includes the complete services as well as family salon. This is the major point by which clients get aware of their rendered services and the growth of customary support (Marketing Plans, 2011).
Cherie's Hair Salon conveys the message which asserts that it provides rapid, complete and highly satisfied customer services to an entire family. Numerous procedures can be taken in account in this regard in which store facing orientations and in-store services can be referred firstly. Another way of marketing which has been adopted by Cherie's Hair Salon is through newspapers which are issued and read all over which can give a good path for the customers to communicate (Marketing Plans, 2011).
3.7 Marketing Mix
The looms of charges, distribution, promotion and advertising as well as customer services are comprised in the marketing mix of Cherie's Hair Salon (Marketing Plans, 2011).
* Fees incorporation: Prices with regards to the competitors are much lower therefore the market capturing becomes easier for Cherie's Hair Salon (Marketing Plans, 2011).
* Distribution: The allotment of services as well as products is restricted initially to the stores in middle of the area where the majority of the target audience lies (Marketing Plans, 2011).
* Advertising & Promotion: The aspiration of Cherie's Hair Salon marketing strategies is to be the highlighted store in the mall attracting multitude clients (Marketing Plans, 2011)
* Services given to customers: The training of the whole staff of Cherie's Hair Salon is being done in a way that considers customer's demands and ideologies are adhered to immediately and convincingly (Marketing Plans, 2011).
3.8 Marketing Research
Marketing strategy during the era of development at the basic level has incorporated many groups. Spectrum of people which includes men, women either mothers are the main focus of these groups. Clients are also asked about the services they need as well as the kind of opportunities that can be used to improvise the services (Marketing Plans, 2011).
Third Draft
4.0 Controls
Performance evaluation will be measured according to the following criteria.
Revenue: according to months and years
Expenses: according to months and years
Business repetition
Contentment of customers (Marketing Plans, 2011)
4.1 Implementation Milestones
The following milestones identify key marketing programs. It is important to accomplish each one on time, and on budget.
Milestones
Advertising
Start Date
End Date
Budget
Manager
Department
Marketing plan completion
10/1/2010
12/1/2010
$0
Susan
Department
Storefront design and shop set up finished
10/1/2010
12/1/2010
$1,100
Susan
Department
Advertising campaign #1
10/1/2010
11/30/2010
$4,100
Susan
Department
Advertising campaign #2
11/1/2010
12/31/2010
$4,100
Susan
Department
Profitability
11/1/2010
12/31/11
$0
Susan
Department
Name me
11/1/2011
12/15/2011
$0
ABC
Department
Name me
11/1/2011
12/15/2011
$0
ABC
Department
Name me
11/1/2011
12/15/2011
$0
ABC
Department
Name me
11/1/2011
12/15/2011
$0
ABC
Department
Other
11/1/2011
12/15/2011
$0
ABC
Department
Total Advertising Budget
$9,300
PR
Start Date
End Date
Budget
Manager
Department
Name me
1/1/2014
1/15/2014
$0
ABC
Department
Name me
1/1/2014
1/15/2014
$0
ABC
Department
Name me
1/1/2014
1/15/2014
$0
ABC
Department
Other
1/1/2014
1/15/2014
$0
ABC
Department
Total PR Budget
$0
Direct Marketing
Start Date
End Date
Budget
Manager
Department
Name me
1/1/2014
1/15/2014
$0
ABC
Department
Name me
1/1/2014
1/15/2014
$0
ABC
Department
Name me
1/1/2014
1/15/2014
$0
ABC
Department
Other
1/1/2014
1/15/2014
$0
ABC
Department
Total Direct Marketing Budget
$0
Web Development
Start Date
End Date
Budget
Manager
Department
Name me
1/1/2014
1/15/2014
$0
ABC
Department
Name me
1/1/2014
1/15/2014
$0
ABC
Department
Name me
1/1/2014
1/15/2014
$0
ABC
Department
Other
1/1/2014
1/15/2014
$0
ABC
Department
Total Web Development Budget
$0
Other
Start Date
End Date
Budget
Manager
Department
Name me
1/1/2014
1/15/2014
$0
ABC
Department
Name me
1/1/2014
1/15/2014
$0
ABC
Department
Name me
1/1/2014
1/15/2014
$0
ABC
Department
Other
1/1/2014
1/15/2014
$0
ABC
Department
Total Other Budget
$0
Totals
$9,300
4.2 Marketing Organization
Financials, Budgets, and Forecasts
Complementing the marketing behavior will be the break-even analysis, sales predictions and expense predictions reports (Marketing Plans, 2011):
Break-even Analysis
$32,340 per month is required to reach the point of break-even according to the analysis been taken in this regard (Marketing Plans, 2011).
Break-even Analysis
Monthly Revenue Break-even
$28,689
Assumptions:
Average Percent Variable Cost
12%
Estimated Monthly Fixed Cost
$28,459
Sales Forecast
In order for the settlement of store Cherie needs to hire and train staff for the first month. There hasn't been any rapid growth in the sales of Cherie's Hair Salon in the first four months as the relationships with customers are in an initial phase. Progression in the sales as depicted below are form the fourth month onwards (Marketing Plans, 2011)
Sales Forecast
2010
2011
2012
Sales
Males
$217,202
$395,458
$411,545
Females
$21,712
$39,546
$41,155
Total Sales
$238,914
$435,004
$452,700
Direct Cost of Sales
2010
2011
2012
Males
$26,064
$47,455
$49,385
Females
$2,605
$4,746
$4,939
Subtotal Direct Cost of Sales
$28,670
$52,200
$54,324
Expense Forecast
High budget has been set for Cherie's Hair Salon as an initial path of growth. This cost is expected to settle down in the winter as a lot of arrangements are been done regarding hair styling due to the arrival of holidays of winter (Marketing Plans, 2011).
Marketing Expense Budget
2010
2011
2012
Store front displays
$1,100
$1,000
$1,300
Plain Dealer advertisements
$4,600
$6,500
$8,500
Other
$3,600
$4,800
$5,500
Total Sales and Marketing Expenses
$9,300
$12,300
$15,300
Percent of Sales
3.89%
2.83%
3.38%
4.3 Contingency Planning
Difficulties and Risks
Cash flow is expected to be negatively affected due to the sluggish sales growth expectancies in first and second quarter (Marketing Plans, 2011).
Customers' flow and traffic has been disturbed and distorted due the road construction near the mall where it is located (Marketing Plans, 2011).
Worst Case Risks May Include
Sustainment of business by its own self becomes improbable (Marketing Plans, 2011).
5.0 Conclusion
Cherie's Hair Salon is entering into an emerging business industry whose main advantage is it couldn't get affected by any sort of economical variation. However there are cons too, such as the whole industry is focused on the merger and acquisition and nearly all the outlets with some real good talents have become a part of some national chain or has an individual status of serving only the elite. However Cherie's Hair Salon penetrated in the market with its excellent planning which incorporates competitive fees charging and opening their outlets at a very crowded and customer attracting location. Cherie's Hair Salon indeed adopted some beneficiary measures like marketing strategies, risk management, employees' supervision and training totally in accordance with the customer services which is its main tool for its survival as well as profit earnings in the market (Marketing Plans, 2011).
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