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Subject: Marketing Management
Semester:
Instructor:
Name:
Fall – 2014
Umar Saleh
Muhammad Amir Mushtaq
Fall-2012-ExMBA-058
Syed Asher Ali
Fall-2013-ExMBA-063
Madeeha Javed
Spring-2014-ExMBA-024
Nasir Mehmood
Spring-2014-ExMBA-023
Muhammad Sajid
Spring-2010-E/M-029
EXECUTIVE SUMMARY
Dream & Desire will be operating from a single outlet located in Lahore. It is in the
infantry stage and expects to move quickly towards further growth and profitability. Our
management has conducted both primary and secondary research into the saloon industry.
The Dream & Desire will face competition from almost all existing beauty salon; the most
threatening rivals are Depelix, AlleNora, and Madeeha’s. The findings of the researches
indicate that the company can generate positive returns as this is a growing industry where
there is an increasing demand by the society. Management estimates that they will capture
15% of the market by the end of 2015.
In addition, highly motivated and talented professionals will be employed in beauty spot in
order to gain customer integrity and build a self-confidence relationship to attract more
customers. The reliability of our services will also encourage customer loyalty, maintaining
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the business earnings. The salon is further supported by key suppliers, beauty treatment
professionals, to ensure that customers receive the highest quality service.
Dream & Desire’s mission statement is “we are committed to providing the best services
as well as value for your time and money”. Strong marketing strategies has been built to
attain the salon’s goals and objectives efficiently and effectively. We have undertaken
differentiated marketing strategy to target markets with the intention go after several
segments with offers tailored to each. Hence Dream & Desire’s marketing strategy is to
represent its services as the best and most logical solution for the respective segments that
satisfy their needs. Variety of marketing approaches will be used to promote and market the
salon including free demonstrations, advertisements through Social Media, magazines and
through personalized websites.
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1.0 Company Profile
1.1 Purpose and mission
Dream & Desire is a full service beauty salon dedicated to enhance the physical
appearance of the clients and to maintain a friendly, fair and creative environment
by providing excellent services and quality products. In order to provide quality
services, branded equipments and products will used. All the brands and
equipments are internationally recognized and popular among the customers.
Furthermore the products are well known for delivering consistent and desired
results.
Our mission is to continuously providing the best services as well provide value
for the time and money of the clients.
Mission
“We are committed to providing the best services as value for your time
and money to enhance your physical appearance and mental relaxation”.
Vision
“To become the market leader in the beauty industry”.
Motto:
Customer’s satisfaction guaranteed.
1.2 Objectives
Short- terms Objectives
1. To gain 10% of the market share by the end of 2015.
2. Improve customer loyalty; generate 25%of repeat business in the year.
3. Increase the brand awareness in market by 30%, by the end of 2015
4. Gain at least 100 customers per month in the first year
5. To introduce beauty services for men by the end of 2018.
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Long-term Objectives
1. Secure value-laden relationship with all the major distributors in the
market.
2. Attain 45% of customers by the 5th year in the business
3. To become the leading beauty salon in Lahore by the end of 2018.
4. To set up another branch of beauty spot in Faislabad by the end of 2018.
2.0 Situational Analysis
2.1 Industry Analysis
Our research shows that a no demand in early 1980’s has altered the market to an
average of 200 visits daily to salons by females. This is illustrated by figure: 1,
which shows that the rate growth for this industry, particularly for the last 3 years
is very high. Moreover, our research illustrate that current female population is
more than male (51%). It’s been estimated that more than 12,0000 customers
visits beauty salon per year with a revenue inflow of rupes 115530,000.
As 61 percent of females living in Lahore’ fall between 18 to 50 years, it can be
predicted that there will be a great demand for beauty services. Consequently this
is the age group paying most number of visits to salons. This is further detailed
into age groups 15 to 25 years which is 47 percent, 25 to 35 years with 44 percent
and a handful in 45 to 55 years which is 9 percent. Females in the age group 45 to
55 years yearn to slow down the ageing process. It is predicted that below 45
years age group being the bulk of female population, will grow in the years to
come hence they will be focusing more on beauty treatments to slow down the
ageing process.
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2.1.1. Trend and Drivers of Dream & Desire
2.2 Competitive analysis
2.2.1 Competitive landscape
There is a high level of competition in the current market in terms of high
quality products, qualified beauticians and price. There are many threats
that will influence Dream & Desire and its competiveness and responses.
Main factors that will directly influence the salon are shown in the table
below.
Five Forces of Competition Model
Threats of new entrants There are threats of entry by other new salons that
will increase the competition for Dream & Desire.
Many are getting attracted towards this market as it
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is in the growing stage and there is great possibility
of success in this industry.
Though there are large numbers of suppliers in the
market, it involves high cost as almost everything
needs to be imported.
Bargaining power of
suppliers
It was challenging to choose suppliers as their
products and tools are critical for the success of the
business.
Bargaining power of
customersThey are the foremost important aspect affecting the
success or failure of Dream & Desire.
The buyers are price sensitive and they can switch
to any other beauty service provider without
incurring much cost.
We need to properly analyze and identify way in
which we can maintain the clients profitably.
Threats of substitute
products
There are substitute products which individuals can
use at home by themselves, without wasting their
time in beauty salons.
We need to consider how effective these
alternatives are in delivering the satisfaction the
customers want.
Rivalry among competing It influence on new entrants like Dream & Desire,
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beauty salons how we are going to compete and survive in the
market.
2.2.2 Key players
The main dominator in the market is Depilex both in terms of price, quality
and service range. When it comes to quality AlleNora and Madeeha the
second place with Glam following. As for price, AlleNora is the second
followed by Madeeha and in terms of service range, AlleNora comes in
second with Madeeha’s and Pretty Women and Style and Profile next.
Figure: 2. Market share of competitors
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2.3 SWOT ANALYSIS OF DREAM &DESIRE
After we had a clear forecast of the market we analyzed and identified the
Salon’s key internal strengths and weaknesses, threats and opportunities present
in the current market.
STRENGHTS WEAKNESSES
Proper brand management.
Knowledge of new trends and requirement
Good marketing sense and affective
communication channels.
Have extensive space to cater for customers
Qualified and skilled beautician in the field
with experience.
Poor brand awareness.
Little financial resources
Lack of communication at the current stage
Poor adaptability to market conditions.
OPPORTUNITIES
Growing demand
New product users
Emerging markets
THREATS
There are many existing salons
High competition from the dominant leaders
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3.0 Problem Analysis:
Strategy:
3.1Segmentation strategy
The potential market for Dream & Desire is in Lahore’, the customers are segmented
based on their lifestyles which includes; attitudes, perceptions, values, beliefs, preference
for social events, media usage, etc. Then, evaluations have been made to find out the
Attractiveness of the segments and how each segments fit to the salon’s objectives,
resources and capabilities.
Factors that were considered in the selection of the targeted segments include;
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Growth rate of the segment
The resources versus the financial investment required to serve the selected segment.
The impact of serving the segment on theimage of the salon.
The ability to offer value to the customers in the selected segments.
After evaluating each segment separately it was decided that Dream will be targeting
those segments which is most promising.
3.2 Targeting strategy
The targeting strategy adopted by Dream & Desire is differentiated marketing
strategy to target markets with the intention go after several segments with offers
tailored to each. By selecting this strategy it will be easy for us to give attention to
the segments separately. Each segment will be offered with a different marketing
mixes, and no specific difference will be there in the products/services offered.
3.2.1 Target Audience:
The target markets of the salon include the students, professionals and
home users. The customer profiles for the target markets are as follows:
Students
In this segment female students mainly between 18 to 24 years will be
enrolled in graduation and post-graduation. Hopefully they will be getting
a pocket money or some will be income earners in part time jobs with An
average pocket money around Rupees 10000/-. Therefore, they will tend
to get few services like haircuts, hair-style eyebrows etc. We believe that
they will be regular customers to use this service and they will try to get
this service during weekends or when they are free after finishing their
classes. Their purchasing power is mostly influenced by friends. Salon
selection criteria are based on quality, price, friendliness of staffs etc.
Professionals
The professional’s segment and consists of educated females who are in
the age group 22 to 45 years. Their salary ranges between 40000 to 80000.
Due to this they seek services which are expensive such as hair and facial
treatments. Also doing eyebrows and Manicure and Pedicure are popular
among this group. Visits to the salon are mostly occasional or on a regular
basis, mostly in the evenings. Day of visit depends on their schedule.
Purchase decision is made mostly on their own. A lot of emphasis is given
to quality, service range, friendliness and staffs’ know-how. Price is rarely
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considered as a decision criteria in this group. They are sociable people
and spend when it comes to quality.
Home Users
The homemaker segment which consists of married females who are
between 25 to 50 years. Generally, they seek services such as haircuts,
eyebrows, facials, waxing, pedicures and manicures. Home Users are
somewhat regular users of this service while some are irregular users.
Most of the visits are made during the weekends and evenings. Purchase
decision is either made on their own or mostly influenced by friends.
Salon selection criteria include quality, friendliness, staffs’ know-how and
service range. They are sociable and spend when it comes to quality.
Dream and Desire priority will be to target the professionals as they are
the most potential segment. This is due to their willingness to spend any
amount in order to obtain the desired service. Next will be the Home
Users, being regular users, generate continuous inflow of revenue.
Attitudes of these markets are influenced by various factors which are
dynamic hence making it difficult to forecast their behaviors.
The changes that we forecasted are:
Competitors have tomeasure and analyze
these changing behavior;they need to update
themselves with the latestfashion in market to be
competitive and survive inthe market.
The customers will beless price sensitive,
rather seek forquality and
satisfactory services.
Women will be using theinternet services to get
information on new and existingbeauty products; to find out andcompare prices; to know where
to buy; to get samples andcoupons; to be aware of special
promot ions
Increasing adaptation of western cultures, clients will be on the look out for the latest trends, new styles
that are in practiced.
Customers will bebuying more of their
facial skin careproducts online
Forcasted Changes
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The major marketing strategies Potential Strategies available
1. Cost leadership strategy
2. Differentiation strategy
3. Costs focus strategy.
4. Differentiation focused strategy:
3.3 Differentiation Strategy:
Differentiation strategy is an integrated set of action that design to provide such
services that customer perceive as being different from their competitors. In
differentiation customers see competitive advantage as a customer advantage.
3.4 Personal Differentiation:
In beauty salon industry there is a trend other salon’s charge extra if their trained
staff gave services personally to someone other. If you want to get services from
Annie then Alle-Nora will charge double rate and same thing in Depeilex Mussrat
Misbah did that thing too. We make differentiation in this category. Dream &
Desire will get competitive edge on this approach. If our customers will get final
touch by Mahnoor they will not charge extra even Mahnoor will be their as a
consultant for every customer.
3.5 Channel Differentiation:
Dream & Desire will work more affectively and efficiently to design its marketing
and communication channels with full expertise and performance. Our
competitors are not using marketing and communication channels properly so
Dream & Design will get will get differentiation edge over other revivals.
3.6 Image Differentiation:
Beauty salons are not creating powerful compelling image. They are just focus on
party and bridal make-up not introducing strong image for new customers so they
can get attraction and use high quality salons. Dream & Desire will focus on
image developing by creating strong image for young-ones and professionals by
introducing stylish hair-cut and skin treatment because large number of females
are facing skin problem. By introducing funky campaigns with funky hair-cut
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Dream & Desire not only can create new customers also can bring new one in the
market.
3.7 Process of Differentiation:
Commitment:
By achieving customer’s satisfaction we are making commitment that
every customer is value-able for us and 100% satisfaction is goal for
Dream and Desire.
Winning Mind-Set:
By offering state-of-the services and offering at most economical rates
Dream & Desire hope to win mind-set of the customers. People have
perception on this phenomena that they will get good services at only high
rates. Many females dnt use salon’s because of expensive packages. So by
offering most affordable rates we can win mind-set of people.
Campaign:
Great campaigns are a team support. It required good partnership between
our strategy and advertising channels. Dream & Desire will never
compromise on campaigns. Our campaigns will be based on logical
marketing theme, theory and story with full consistency. If theme and
theory is not appropriate or channel is not appropriate campaign can be
failed so for achieving success Dream & Desire will lunch best campaigns
for best kick-off.
The elements which Dream & Desire will use to a unique combination of
offering and achieve differentiation in the market:
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Product/Services Personnel Experience
Features
Performance
Durability
Reliability
Style
Design
Delivery speed
Customer
Consultant
Competence
Courtesy
Reliability
Credibility
Communication
Responsiveness
Courtesy
Education
Esthetic
Escapism
Entertainment
3.4 Positioning:
Positioning is the marketing activity and process of identifying a market problem
or opportunity, and developing a solution based on market research and
segmentation. Based on this definition Dream and Desire Positioning its strategy
by complete the brand positioning process model.
Identifying the business's direct competition:
Dream & Desire’s competitors like Depilex, Alle-Nora, Madeeha’s and
Pretty woman are just focusing on bridal’s make-up and party makeup they
are just focusing on revenue rather then customers. Their main aim was to
just earn profit not customer satisfaction. Also they are not focusing on
regular cutomers so Dream & Desire will positioning for themselves by
fullfiling this gap that every customer is important and satisfaction must be
met for every customers.
Competitor’s positioning:
Competitors like Depilex, Alle-Nora, Madeeha’s and Pretty woman
positioning themselves for high class customers. In their marketing effort
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they also neglect middle class, professional which are 85% of the total
population.
Dream & Desire's own positioning:
Understanding how each competitor is positioning their business today.
Dream & Desire wants to make it’s own place in the market for their value
customers. It’s salon for all classes of people, affording class, high class
and students will find good atmosphere, for their beauty to be enhanced.
It will our pride to make our customer to feel satisfied.
(e.g. claiming to be the fastest, cheapest, largest, the #1 provider, etc.)
Developing a distinctive, differentiating and value-based positioning
concept:
Dream & Desire committed to providing the best services, value for your
time and money as well as enhance your physical appearance and mental
relaxation”.
Every customer’s satisfaction is guaranteed.
Creating a positioning statement
Every customer’s satisfaction is guaranteed and gets beauty on a budget.
Dream & Desire has used the Unique Selling Preposition (USP) to identify
and then communicate a concise statement of its most compelling offer and
benefit in a way that the potential client can automatically answer the
question of “what's in it for me?”. Dream & Desire s services will be
positioned as high quality and medium priced services compared to its
competitors.
Dream & Desire will be using “more for the same” value proposition
offering comparably high quality services at lower price than the
competitors. Its positioning statement is “To
busy professionals, students and homemakers who desire good looks and
styles, Dream & Desire offers a range of quality beauty products and
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services to enhance your beauty at a more pleasant environment than the
competitive salons”.
Branding:
Most people think of a brand as an external image and a façade for
business. For example, If we are beauty salon, most salon owners think
their brand is about their logo and image representing the kind of
hairdressing they deliver.
However, to really understand what a brand is, Dream and Desire believes
that you need to think of it as a promise, not a logo or a name.
Making Statement
“We are committed to providing the best services as well as value for your
time and money as well as enhance your physical appearance and mental
relaxation”.
Start by defining point
“Dream & Desire can defining their point of providing good
services by hiring experience talented staffing, understand that their
point is the true value, own that value position in the minds of the
people – both consumers and employees – be true to that value
position and stay consistent.”
Consistency is absolutely crucial
“This is because it must secure trust and loyalty, both from inside
the organization and outside among our consumers. It must be with
clarity because it is the glue that holds the business together. That
promise or concept at the root of the company – that is the brand.”
Don’t just give the impression of brand, actually be that bran
“By giving value to every customers and fulfill her desires and
needs Dream & Desire can prove that every customer is important
for us and 100% satisfaction is our goal and that is the thing which
can make an ordinary brand into successful brand.”
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4.0 MARKETING PROGRAMS
After working out the tactical details of the positioning and brand
management strategy to deliver the positioning, and Branding Dream &
Desire has design the marketing mix- product, price, place process, people
physical environment and promotions.
4.1 Marketing mix
4.1.1 Product/Services.
Dream & Desire will offer a wide range of services entailing high quality
care for hair, nail and skin care using superior products, exclusively for
female clients. Providing beauty treatments being the core service, we seek
to deliver consistent and desired results.
Two dimensions of service quality:
1. Quality level:
The products used are of high performance quality, with excellence
features, and as the service quality is harder to define and judge we
rather focus on the consistency of the service.
2. Consistency:
We strive for high levels of conformance quality-ensure freedom
from defects and consistency in delivering the targeted levels of
performance.
Customer retention is the best measure of quality for a service
business. Seeing that the service quality will vary depending on the
interaction of the employees and the customers our concerns about
service quality is well communicated to the employees and
incentives they need to recognize, care about and tend to
customers’ needs will be given to the front-line service employees.
Product/service features:
As we offer specialty service, there is strong preferences and special
purchase effort by customers. We have assessed each service feature’s
value versus its cost to the company and those that customers value high in
relation to costs are being provided after elimination of the low valued
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treatments.
Services:
On offer is an extensive range of services, quite literally from head-to-toe
and includes:
Hair Cuts, styling, formal hair styles, coloring, hair
highlights, perms, relaxers, deep conditioning
treatments, hair extensions.
Hands and Feet Manicures, pedicures, polishing, artificial
nails
(acrylic, gel, and more), paraffin wax
Cosmetics Formal or bridal make-up, make-up lessons,
airbrushes make-up, false eyelash application.
Body Tanning, spray tanning, massage, waxing, hair
removal, body wraps, body scrubs, and
Face Facials, peels, masks, microderm abrasion,
paraffin wraps, tinting of eyelashes,
application
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Processes
T e c hni ci a n
Objective:
To perform technical skills within the skill certification program.
Goal:
To be active in building and retaining the salon clientele while being
part of a team.
Personality Traits:
Confident and creative with strong communication skills. Is a good
listener. Must be willing to grow and take direction. Must be
motivated toward self-improvement. Strong work ethics and a passion
for the industry.
Duti e s:
Technical Work:
Performing skills congruent with the level of skill certification.
Meeting service goals.
Retail:
Retailing for the clients needs. Meeting retail goals. Gaining the
appropriate knowledge in Salon retail lines.
Presentation:
Presenting yourself with a clean and tidy image and impeccable
personal hygiene. Sporting an energetic and enthusiastic attitude with
co-workers and salon clients.
Clients:
Incorporate the Standard of Service.
Salon Marketing:
Incorporating the salon marketing strategies consistently and
effectively.
Team Work:
Becoming a valuable and respected employee and teammate.
Presenting the salon image with unity and respect.
Accountability:
The role of the technician is to become a peak performing employee of
“A” status.
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T e c hni ci a n Ch e c klist s
S h if t C heck li s t A rri va l C heck li s t D epa rt u r e C heck li s t
Laundry and coffee
cups.
Arrive 10-15 minutes prior and set up
for the day.
Daily technician
cleaning.
Weekly technician
cleaning.
Check your appearance, attitude and
hygiene.
Daily salon
cleaning.
Weekly salon
cleaning if
Saturday or Tuesday.
Check to see how you will fill your
appointment book.
Assist team members. Return messages.
C li en t C heck li s t
G r ee t i ng .
Consultation analysis applicable to the service for new clients or the repeat
clients. Lead client to a change room if applicable and instruct client with
the procedure and where to meet you when they’re ready. Service related
massage.
C u rr en t p r oduc t ana l ys i s .
Explanation of service steps and procedures.
Product recommendation.
Home maintenance tips
Industry trend educating.
Lead the clients to the front while informing of the check out procedure
with receptionist.
Salon Coordinator
Objective: 21
Build a valuable link between the clients and technicians.
Goal:
Create sales and positive client relations.
Personality Traits:
Honest, Responsible and trustworthy individual with a friendly cheerful
disposition. Good people skills and mature communication skills. This
individual is to be task orientated, organized, neat, tidy and efficient. Must
have a clean and professional image.
Duti e s
Front Desk:
Develop and maintain positive client relations and implement front
desk policies and procedures.
Marketing:
Implement the salon marketing strategies for the front desk and telephone.
Inventory:
Order and track inventory. Display and stock retail area. Implement
monthly specials and promote within the salon.
Salon Maintenance:
Maintain the cleanliness of the client waiting area and front desk. Assist in
salon cleanup.
Meetings:
Meet with team leader and CEO weekly to report marketing and client
concerns. Report all data pertaining to technicians in staff meetings.
Accountability:
This position is held accountable for balanced cash out reports and
inventory control within a budget. Completed and organized client relation
data and technician monitoring systems are reported to the CEO at every
months end. This position is also accountable for providing a fabulous first
and last impression of the salon.
Sa lo n Coord ina to r Checklists
H ou rl y C heck li s t Client Check in Checklist 22
Tidy front desk; replenish fragrance oils.
Organize waiting area, magazines and
furniture.
Tidy client washroom, wash mirror,
replenish towels and toiletries, empty
hamper; light new candle if needed.
Wash coffee cups (even one) and
replenish beverages, wipe countertops and
change towel under rack if needed.
Stand and greet all clients.
Call client by name and use their name to
offer a beverage.
Use client’s name and let them know
approximately when the technician will be
with them.
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Pull all retails forward. Let the technician know their client is
here, and use client’s name.
Do laundry, prepare gowns. Check off their name in the appointment
book.
Client Check out Checklist
Ask if their technician made them aware of the salon specials and the
S.O.S. Confirm their address and telephone numbers and email address.
Take the sale.
Give them their checkout envelope. Incorporate the monthly sales script.
Have client complete a comment card.
Record their name if the S.O.S was done. Record them on new client sheet
if applicable.
N i gh tl y C heck li st
Wipe reception desk off and clear away clutter. Pull retail forward.
Straighten magazines and wipe waiting area tables.
Clean client washroom sink, empty hampers; refill towels and feminine
products, toilet and facial tissues and soap dispenser if needed.
D a il y C heck li s t
Call the new clients from one week prior each day.
Highlight the telephone number of name called on the new client sheet
W eek l y C heck li s t
Call all PB’s and appointments over 1 hour. Highlight the PB’s or
highlight a circled “C” for confirmed calls to all new clients from the
previous week.
Send out thank yous and referrals (even1), highlight the referrers name 24
on the new client sheet.
I nven t o r y :
Order and track inventory. Keep shelves clean and products displayed
aesthetically. Implement monthly special strategies and promote within the
salon using displays and posters. Ordering and receiving process: Compare
the back bar and retail inventory numbers to the minimum order list on
the computer. Use the order form system to replenish the required
numbers of products to be kept in stock. When the products arrive check
the accompanying invoice for accuracy to the order form. Check off all
products on invoice. Update the inventory in the computer. Price and stock
the products received. Mark off the inventory on the order form and
record any back orders to the next order sheet. Watch for increase in
retail prices and adjust in computer. Lower prices may mean a sale
from the supplier; confirm this as well. Be sure to notify the suppliers not
to send the back orders to avoid being over stocked. Watch to keep stock
within the salon budget.
M on t h l y C heck li s t
Create a monthly special with product and service based on special priced
products. Implement the advertising in the salon, on the website and on
the phone message.
T e a m L e a d e r:
Objective:
Lead team members within salon systems, policies and procedures.
Goal:
Have team members trained within the skill certification program while
reaching their goals and employee status.
Personality Traits:
Focused, patient, confident and even-tempered. Must know company
policies and procedures and lead in a positive and encouraging manner.
Clear effective communication skills are required.
Duti e s 25
Systems and Policies:
Implement the Business Structure Manual. Certify employees in company
policies and procedures. Conduct performance measurements. Monitor
and assist in any changes that need to be made.
Office Projects:
Calculate and implement daily salon goals. Document and prepare
success reports for technicians. Document and approve holidays, sick days
and requested time off as according to manual. Complete the qualification,
ABC status tracking graph for the COO.
Manager Meetings:
Meet with the salon manager and CEO weekly. Report any concerns with
employees that need addressing. Organize meetings with team members
to implement changes.
Accountability:
This position is responsible for hiring as well as dismissing employees.
This position is held accountable for the technicians reaching and
sustaining their goals and skill certifications within a specified time line.
The systems and policies are to be trained and implemented by this
position as well as performance appraisals and correction procedures.
D a il y C heck li s t W eek l y C heck li s t
Hold 15-minute huddle in the
mornings to set agendas for the day
or prepare daily notes for the week
to be handed out by the salon
coordinator.
Record topics for discussion and
the minutes of meetings as well as
staff reviews.
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Record goal numbers on goal sheet. Record cleaning and performance
measurement data.
M on t h l y C heck li s t
S e e t h e S O S w o r k b o o k f o r t h e c a l c u l a t i o n s r e q u i r e
d b e l o w .
T h i s i s a s t e p b y s t e p g u i d e f o r t h e p r o c e s s o f t h e e m
p l o y e e t r a c k i n g a n d m o n i t o r i n g .
The following is to be completed in the first week of the month.
1. Complete the success report tracking.
2. Complete the qualification status in the ABC employee program.
3. Schedule and conduct meetings to review success reports and
qualification status.
4. If specific steps of the Standard of Service need improvement, use the
“targets” to monitor. Make an action plan and set a date for improvement.
5. Enforce probation and any disciplinary measures if applicable.
6. Hold the monthly staff meeting. Give out rewards at the staff meeting
if applicable according to the team incentive program.
7. Conduct performance appraisals every six months.
T h i s s y s t e m i s t o s e t u p n e x t m o n t h ’ s d a t a f o r e m p l o
y e e m o n i t o r i n g a n d t r a c k i n g . ( u s e t h e t o o l o n p a g e 1
2 , c l i e n t c o m m e n t c a r d )
1. In the first week of the month designate two salon clients for each 27
technician from the appointment book to complete the client comment
cards. Use the script provided in the Business Structure Manual for
requesting client participation.
2. Also in the first week seek out a first time client for each
technician to be a mystery shopper.
3. In the first week of the month do an observation of one client per
technician to see the SOS and reception in action.
4. Interview a minimum of one non returning client from four months
prior to obtain valuable insight for improvement measures.
**Client performance appraisals (page 26) are accompanied with a service
gift certificate (date and expire) and a postage paid envelope addressed to
the salon.
** Mystery shopper letters (page 31-37 are accompanied with a service
gift certificate
(date and expire) and a postage paid envelope addressed to the salon.
This is a sample of a salon service standard that can be used as is or
modified that is the salon brand. This criteria dictates a client experience
in each and every salon visit. This is what is monitored for quality
assurance.
T h e S t a n d a r d o f S e r v i c e
1 . W e l c o m e g r e e t i n g
2 . F a c e s h a p e a n d f a c e m a p c o n s u l t a t i o n s
3 . S e r v i c e r e l a t e d m a s s a g e
4 . C u r r e n t p r o d u c t a n a l y s i s
5 . P r o d u c t a n d t e c h n i q u e e d u c a t i o n
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6 . H o m e m a i n t e n a n c e t i p s
7 . T o o l s a n i t a t i o n i n c l i e n t s v i e w
8 . I n d u s t r y t r e n d u p d a t e s
9 . R e f e r r a l c o u p o n s
1 0 . B e v e r a g e o f c h o i c e
1 1 . E a s y p r e b o o k i n g o p t i o n s
1 2 . C o n f i r m a t i o n c a l l s
The following is part of the salon POLICY certification.
P O L I C I E S
Dre ss Policy
A n s w e r t r u e o r f a l s e .
Wearing colored denim pants is acceptable
attire for work. Sleeveless shirts are acceptable
work attire.
How I dress attracts the clientele I choose to be
□ True
□ True
□ True
□ False
□ False
□ False
T e a m l e a d e r s e v a l u a t e d b y C E O
PRACTICAL PRESENTATION week 1: ________
PRACTICAL PRESENTATION week 2: ________
PRACTICAL PRESENTATION week 3: ________
PRACTICAL PRESENTATION week 4: ________
Certification Complete ________
29
T h e f o l l o w i n g i s p a r t o f t h e s a l o n P R O C E D U R E c e r t
i f i c a t i o n .
P r o c e d u r e s , E s t h e t i c s
The sample page booklet contains the working templates used to modify
for your salon certification process. Just a reminder that any changes made
to the Business Structure Manual will need to be certified accordingly.
P e di c ur e s
Bring client into room, have them sit on the bed and remove their
footwear. Cleanse your hands in front of client. (Step 7 of the SOS)
Spray feet with disinfectant, remove polish and perform the consult
analysis. (Step 3 of the SOS)
Apply cuticle crème and move them over to the chair to soak. Pedi bath is
lined with a plastic bag.
While client is soaking, have them cleanse their hands with the Isagel,
give client some One Minute Manicure and explain how to use. Have
them rinse in a bowl. Proceed with a 90 second hand massage (Step 3 of
the SOS).
Remove feet from soaking and wrap them.
Disinfect tools in front of client (Step 7 of the SOS). Do cuticle work and
shape toe nails.
Exfoliate feet and do 2 minute massage. Perform mask or paraffin if
applicable.
Clean off nail bed and apply polish. Educate client on the home
maintenance tips (Step 8 of the SOS.)
Educate clients on the future service maintenance (Step 8 of the SOS).
Close the visit (Step 11 of the SOS).
Give client slippers to wear and bring them to a dryer chair to dry. Bring
them a magazine and beverage. Let them know where to leave slippers
and how long to wait before putting shoes on.
PRACTICAL TEST 1: ________
PRACTICAL TEST 2: ________
PRACTICAL TEST 3: ________
Certification complete ________
30
P r o c e s s
Note:
The following is based on salary or hourly employees. The qualification
process may also be used for commission paid employees. This is the
process used to set parameters needed to secure employment and
employment advancement opportunities.
Goal:
Define the qualities of peak performers and encourage superior service.
See SOS workbook for percentile calculations.)
S kil l C e rti fi ca tio n Edu ca tion
Skill certification education begins immediately upon employment. This
education involves technical skills, product knowledge and the
incorporation of the S.O.S. This prepares technicians for the qualification
process.
Qu a li f i c a tio n P ro c e s s
This is the process that qualifies technicians for the team incentive
program.
Apprentices and new hires are to reach a “B” status within the first year of
employment and level “A” status six months thereafter. Technicians whose
starting pay recognizes previous years of experience are required to reach
level “B” after six months of employment and level “A” six months
thereafter. The goal of employees is to achieve an “A” status. Status is to
be reached for three consecutive months in order to advance.
Qu a li f i c a tio n P ro c e s s f o r P ro b a tio n Em p loy ee s
Must have completed the written certification with a score of 90%.
Must have completed skill certification with their own models and a score
of 100% Must be getting referrals from salon clientele.
Must be converting clients into new services.
Must be pre scheduling clients.
Must be gaining productivity by 10% a month Must be retaining 40% 31
of new clients monthly Must be retailing to a minimum of 10% of clients.
Qualification P rocess continued…
Em ploy e e st a tu s “C ”
Standard of Service to be at 85%. ( p a g e 8 ) New client retention is at
50%.
Existing client retention is at 70%.
To be recruiting 6 new clients by “My Own Networking” and referrals
monthly. Making $30/ hr in salon.
Minimum of 20% of clients buying retail consistently.
Em ploy e e st a tu s “B ”
Standard of Service to be at 100%. New client retention is at 65%.
Existing client retention is at 80%.
To be recruiting 3 new clients by “My Own Networking” and referrals
monthly. Making $50/hr in salon.
Minimum of 30% of clients buying retail consistently.
Em ploy e e st a tu s “A ”
Standard of Service is at 100%. New client retention is at 80%. Existing
client retention is at 90%. Making $60/hr in salon.
Minimum of 40% of clients buying retail consistently.
Calculations for the above can be found in the workbook. Templates for
monitoring can be found in the Performance Measurement Manual
S a l a r y C o n t r a c t
Name:32
______________________________________________________
Date: ______________________________________________________
Salary of: ________________________________________________
Renewal Date: __________________________________________
Service Goal to be met for contract renewal: ________________________
Retail Goal to be met for contract renewal: _________________________
Please check off the following:
o I have received a copy of the Business Structure Manual applicable to my
position.
o I Have received a complete overview of employment structure with
(company name).
o I understand and accept employment with this company as presented in
the Business Structure Manual.
Employee: __________________________________
Employer: __________________________________
This is how data is collected from the clients for the following employee tracking
tools.
C l i e n t C o m m e n t C a r d 33
Use this tool in the repeat client checkout for the purpose of monthly
success reports. P l e a s e c h e c k a l l t h a t a p p l y.
o Did the receptionist stand and say “welcome to Our Salon” when
you entered the salon?
o Did your technician make reference to your facial features when
choosing your style today? (hair clients only)
o Did your service provider educate you on the benefits your service
will provide for you today?
o Were you asked about the products you are currently using at
home?
o Did your technician explain the benefits of the products being used
in your service today?
o Did you see your technician cleaning or taking new tools for your
service?
o Were you given tips on how to maintain your service at home?
o Were you informed of new trends, new products or a new service
idea today?
o Did your technician recommend a time frame in which you should
reschedule your next appointment to maintain your service?
o Was the salon clean and tidy?
o Did the receptionist give you coupon cards and a sample at
checkout?
o Was the telephone reception efficient and courteous?
o You would definitely recommend Our Salon to your friends.
Your Name________________________ Technician Name___________________ E-
mail Address_____________________ T h a n k y o u f o r y o u r t i m e ! !
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This is how you track employee performance on a monthly basis. It implements
the
Standard of Service (page 8) expectations and Qualification expectations (page 10)
S u c c e s s R e p o r t s
Use the following when reviewing the month’s performance. These can be used at
staff meetings.
Technician Success Report for: ____________________ For the month of:
____________________
Salary Goals:
Service/day ______ Goal______
Retail/day ______ Goal______
# of clients seen ______ Goal______
Employee Status Report:
Current status: ____________________ Goal: __________________
Standard of service: ________________ Goal: 100%
New client retention: ________________ Goal: __________________
Existing retention: ___________________ Goal: __________________
Productivity level: ___________________ Goal: __________________
Hourly salon rate: ___________________ Goal: __________________
% of clients buying retail: _____________ Goal: __________________
Referrals & MON: ___________________ Goal: __________________
Add on sales: ___________________ Goal: __________________
If goals are not met the employee and employer create an action plan 35
using the tools in the Business Structure Manual to reach goal
attainment.
Action Steps:
1. _________________________________________________________________
2. _________________________________________________________________
3. _________________________________________________________________
4. _________________________________________________________________
Time Frame: ___________________________________________________________
4.1.2 Price
The internal and external factors affecting pricing decisions of Dream &
Desire:
Internal Factors:
o The marketing objectives and targeting strategies adopted by
Dream & Desire.
o Costs:the total cost of the company is less compared to that of the
competitors enabling us to offer just the right combination of
quality and good service at a fair price.
o Another consideration is to cord inate the price decisions with
product design, distribution and promotion.
External Factors:
o The marketing objectives and targeting strategies adopted by
Dream & Desire.
o Costs:the total cost of the company is less compared to that of the
competitors enabling us to offer just the right combination of
quality and good service at a fair price.
o Another consideration is to cord inate the price decisions with
product design, distribution and promotion.
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Pricing strategies that Dream and Design have considered
General pricing approach: as we are using "more for the same value"
positioning strategy and targeting to the professionals we will be adopting
value-added strategy. Rather than cutting the prices to match the rivals
Dream & Desire will attach value-added services to differentiate our
offers.
Major pricing strategy:
Product mix pricing strategy: product bundle pricing
Price adjustment strategy: segmented pricing will be used as we use
several brands of products, the service price will vary according to the
brand used. Apart from this time pricing will also be used as the
demand varies during the vacation period and other months.
How Dream & Desire will respond to Price changes by competitors and to
situations where by it must initiate price changes:
Initiating price cuts:
o Increase the demand for Dream & Desire decreases to boost the sales x
Fall in the market share due to high competition
o x Applied in declining stage
Initiating price increases:
o To keep up with rising costs; by dropping discounts.
o Target will be to maintain fairness surrounding any price increase.
Responding to price changes by the competitors:
o Increase the competitors cut prices; Dream and Desire will either reduce
the price or raise the perceived quality of the service provided as it’s
important to maintain the quality.
Place
The salon will be located at 25-Tipu Block Street #4 New Garden Town
Near Kalma Chock Lahore.
Salon Environment
Dream & Desire has a high retention rate, and tries to maintain this
through hair consultations before clients visit the salon. When patrons
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visit the salon, workers try to make them feel at home and like they’re
among family. This begins with a positive attitude from the staff and
radiates to the clients. Everybody is encouraged to participate in
conversation throughout the salon. The level of professionalism from the
staff, coupled with an inviting atmosphere, is what he feels is needed to
keep clients coming in. He admits the salon staff isn’t perfect, but they try
their best to keep their clients satisfied. Management of Dream &Desire
says staff wants to provide the best service possible, and he wants clients
to feel good about themselves when they leave the salon.
The step for selecting this place:
Convenient:
Usually women hesitate to get beauty services in a commercial market
place, therefore Dream & Design is located in a rather less commercial
place. Because of bridge overhead and underpass this place is easy to
approach.
Target Audience:
Our target audience is professionals, student and home-user from middle
and upper middle class family. Our target market areas are Garden Town,
Model Town, Faisal Town, Johar Town so its easy for women of that area
to approach Dream & Desire. Also lot of school, colleges, offices and
banks are near to this place so its good opportunity to get customers from
these areas.
Cost Factor:
We select place in New Garden Town its less expensive then DHA where
you cannot use Sami-Commercial building. There was no concept of
Sami-Commercial you have to get only commercial building at very high
rate. Gulberg is now also very expensive and rushy area. Also when
Dream & Desire will launch it’s advertising campaign rates of BillBoards
are half as compare to DHA and Gulburg. At Model Town and Faisal
Town we can good sites for advertising which are in the way of offices,,
schools, colleges and Park at affordable price.
Stay Connected With Mother-Brand:
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Its good to have mother-brand nearby your mother-brand. It’s a sister-
concern of JalPari which is located at the same building at 2nd Floor.
Senior management will be same for both companies. Its easy for
management to look after and manage management issues. As well as it
creates customer opportunity to Dream & Desire as well. When customer
of Jalpari visit their favorite boutique they will ultimately get know about
Dream & Desire. Jalpari will also share cost of rent and other utility bills
and that will be good breathing for Dream & Desire.
Covered Area:
Covered area of that building is 35x70 feet, which includes two room for
salon operation, one big hall for waiting area and one office for
management.
Facilities:
In waiting area females can use internet by accessing WIFI also in the
basement there is one room for gym purpose where they can utilize their
waiting time.
People:
There are two type of people that are involved with Dream & Desire. One
is internal customers which are employees of the Dream & Desire and the
second one are external customers which are direct customers.
Students.
Professionals.
Housewives
People’s Profile
Between the ages of 16 and 55
o Income levels of 25,000 to 250,000
o Females
o Typically employed part or full-time.
o Good number of students.
o Looking for a salon close to the work place, for lunch hour
services or immediately after work
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o Looking for reasonably priced services with a high level of luxury
o They like to be able to have all beauty care services and products
in one location due to a busy lifestyle.
Physical Environment:
Physical environments shows signs of employer’s seriousness towards
their work and office because great interior shows your business’s success
and professionalism. It helps in building client’s trust.
These are following steps which improve physical environment for
external customers as well as internal customers.
Work Space :
Salon’s workplace should be enough spacious where Dream & Desire can
adjust their belongings and keep their stuff at hand. Congested or small
area doesn’t make one feel comfortable to perform tasks also customers
will get bad impression if work space is inappropriate.
Avoid Over-crowded Situation:
Dream & Desire will create such booking system that every customer get
services on time so that we can avoid over-crowded environment. Over-
crowded situation can lead to mishandle matters and also effect on
services. So better service efficiency Dream & Desire will avoid such
situations.
Comfortable Furniture:
Of course, Dream & Desire will get most comfortable furniture. So that
customers can spend relax waiting time. Also Dream & Desire will
arrange comfortable furniture for staff as well so they can remain fresh all
day and perform good services.
Availability of Facilities :
Basic facilities, such as printers, fax, staplers, pens, etc to facilitate for
employees are must. Also Dream & Desire will gave facilities of internet
wifi and gym to customers as well.
Decoration and Ambiance :
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A salon should be decorated decently and should not be over designed.
Aesthetically designed offices always affect the mood of management of
Dream & Desire should be in a positive way.
Appropriate Lighting :
Lighting is the major part of any salon. It should be proper so that one can
properly on face cut and all salon process in desire available light..
Cleanliness:
And above all, neatness and cleanliness of the salon is very important. No
one likes to spend time in messy or dirty place. Dream & Desire will
place checklist at washrooms as well as in waiting area and will react
immediately if there is any complaint about cleanliness.
There are approximately 3500-40001 potential customers within this
profile that would use the services of
Controlled Temperature :
Whether its winter or summer, temperature inside the office should be
moderate, accordingly. It becomes greater source of distraction from work
if not controlled properly. Heating and cooling equipment should be
available at every office.
Promotion:
Objectives.
To help position Dream & Desire as the leading salon, the
promotion goals will be as follows:
Communicate to all target audiences that Dream & Desire offers
inexpensive
Services.
Attract and create new audience who are not using any salon or
just using below average salon.
Increase awareness of the salon’s presence in Fashion Industry.
Inform clients on healthy hair care practices through online tactics.
Develop community connections to build a positive reputation.
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Increase weekly clients by 25% by Q4 of 2015
Increase annual revenue by 10% the end of 2015
Establish an online presence that engages at least 50% of all salon
clients
Holistic Marketing Concept
The core strategy that Dream and Desire will be adopting is the
“Holistic Marketing Concept” to attain the marketing goals of the
salon. Dream & Desire seeks to develop is based on the
development, design and implementation of marketing program,
processes and activities that holistic marketing approach will
provide Dream & Desire to get competitive advantage with other
competitors and this holistic approach by provide fresh breathing in
tough competitive environment. The Holistic marketing approach
will be consist of these four points:
o Relationship Marketing.
o Internal Marketing.
o Integrated Marketing
o Socially Responsive Marketing.
Relationship Marketing:
Relationship marketing was a design as a form of marketing for
Dream & Desire as a form of marketing developed from direct
response marketing which emphasizes on Dream and Desire’s
customer’s retention and satisfaction.
Communication
Communication has a vital role for connecting retailers and
customers.
Communication is a conscious or unconscious process of
transferring feelings and
opinions in form of message which is sent, received and perceived.
So Dream& Desire will follow this principle of communication in
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its advertising ads, msgs, emails and fan-pages.
Preferential Treatment
Preferential treatment concept concentrates on selected customers
and gives them
higher social recognition and offers products above the standard
value and services
beyond regular practices. For Dream& Desire’s loyal customers
who have loyality cards they will get all these preferential
treatment. In other hand applying preferential treatment can
improve the quality of services.
Personalization
Personalization marketing for Dream & Desire refers to adjustment
and modification on
services based on additional information from customers. For this
management of Dream & Desire will also inform the customers
about new trends and also will get feed-back from them.
Rewarding
Rewarding is also a good strategy to get loylity from customers.
Dream & Desire will introduce loylity card customers will get
reward by using this card. Also people can get free service coupon
by on-line competition and quizzes
Trust:
Trust is a multi-dimensional concept with different behavioral,
emotional and
conceptual aspects (Sanzo, et al, 2003). It can be defined as a
psychological positive
state to accept vulnerability from behaviors of others(Rousseau et
al., 1998). Its essential for Dream & Desire’s staff to build trust so
that customers refer to other one’s too. By giving good quality
services, and feed-back that trust can be achieved.
Internal marketing:
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Best employ For Dream & Desire competiton is the perfect
opportunity to get the ball-rolling on some fun, team building
internal marketing activities. Then use these team activities and
events to market to your clients – they are ideal fodder for
Facebook and Dream & Desire’s website news page.
Shadow and encourage
Try shadowing one of apprentices for the day. Not only will we
have the chance for some mentoring, we will discover how well
Dream & Desire team really deliver customer service and interact
with the clients.
Team Awards Evening
Dream & Desire will arrange annual Awards Evening especially
for their trainees. It’s a fun, motivating way of celebrating their
achievements. Inviting parents, friends and judges is both
motivating for team and another marketing opportunity to raise
salon awareness.
Turn team success into a salon marketing opportunity
Dream & Desire will set up a “Salon Hall of Fame” in our team
room to showcase and chart team success. Have a notice-board
brimming with photos, client comments, graphs and certificates.
Above all, make it fun and inspiring and good for internal
marketing.
Integrated Marketing:
Integrated marketing communications strategy.
The marketing communications strategy requires an outline of the
marketing communications objectives, as well as an explanation of
the rationale for these objectives. The rationale can be developed
using key insights from the SWOT analysis. A marketing
communications strategy specifically outlines the measurable goals
of a campaign. It clearly states what needs to be done in figures
measured by time or percentages. In this study, the marketing
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communications strategy will be help the staff at Dream & Desire
establish profitable goals for their business.
Creative strategy.
The creative strategy defines the strategic choices needed to
develop the campaign messages (Associates, 2005). It explains
what you'll say about your product or service, and how you want
consumers to think about it. It directs the development of all
creative tactics. The creative strategy also introduces the unique
selling proposition (USP), which explains why a product or service
is better than its competition. The unique selling proposition will
be used to develop a theme for the campaign that will tie all of the
creative tactics together.
D&D (Dreams and Desires) Customize Beauty Salon is a unique
salon of its kind. It tends to provide all barberry and cosmetology
services under one roof in a unique way. What makes D&D so
unique is its distinguish software. The software allows the client to
see, realize and evaluate him/herself in a real time. It takes picture
of the customer and instantly allows them to perform different
functions, such as; try different hairstyles, change hair color, apply
different types of facial hairstyle and for girls/women it allows
them to apply wide range of makeup as well. The purpose behind
such a unique idea is to fully satisfy the hidden needs and wants of
the people which usually they are unaware of. Once they have the
opportunity to realize and evaluate themselves there is more
chance that the customer will leave as a happy customer.
Building relationships.
IMC plans use relationship marketing to identify, establish,
maintain, and enhance relationships with consumers (Gronstedt &
Siracuse, 1998, p. 165). “Profitable business relationships rely on the
capability of the [business] to develop trust in itself and its performance
among [clients],” (Gronstedt & Siracuse, 1998, p. 165). Important
45
elements to relationship building include seeking direct contact with
consumers, building a database, and developing a customer service
system. IMC campaigns should strive for face-to-face connections, or
direct contact through technology to get as close as possible to consumers.
Word of Mouth.
The word of mouth proposition for this campaign is “Beauty on a
Budget.” The staff at Dream & Desire know that consumer budgets are
still tight in this economy. Women want to look good, but aren’t willing
to spend excessive amounts of money when do-it-yourself options are
more feasible. Dream & Desire wants to give clients the salon experience,
but at lower price than most expect.
Media strategy.
The goal of the IMC plan is to increase awareness for Dream & Desire in
and to communicate the idea that the salon is affordable for any budget.
This idea will be expanded across all advertisements, online, and
community outreach tactics. To reach the creative goals, the following
sales promotion tactics will be used: service bookmarks, a website,
billboards, e-blasts, public transportation advertisements, community
outreach, , direct mail promotions/events, and print ads.
Tone.
The tone of the ads and creative tactics will be fun, vibrant, and
informative. There will be several links to Dream & Desire website and
social media pages on advertisements to attract consumers to the salon.
Advertisements will also be in bold, feminine colors to attract our target
demographics. The ads will also be flirty and fun, and will use young to
middle-age looking women and dialogue to relate to the target audiences.
Tactics
Billboards/ framed posters.
Billboard advertising will be used from February 2015 to August 2015.
There will be a billboard on the Barket Market, Model Town, Faisal
Town) traveling to the offices and markets and business commercial areas.
There will be a different billboard for each area. Each billboard will show
46
a different woman with a different style. The billboard will read, “Prices
this low, Style yourself, feel good look good. This will draw more interest
to the salon, and it will drive people to the website. The billboard will be a
standard 14’ by 48’ sign. To reach approximately 80% of the target area, a
standard bulletin billboard will cost 50,000 for a month. A different
billboard will be displayed on a different expressway over the course of
five months. This will cost approximately 250000.
Direct mail promotions/events.
There will be seasonal promotions for the salon. The salon will welcome
each season with a cupcakes and discounted manicures for guests. The
cupcakes will be served on a first-come, first-serve basis. There will be
100 cupcakes at each event. These cupcakes will be design according to
logo and company’s color.
Public transportation.
There will be ads on the platform of the Daweoo Bus Stands and stops of
urban transport system. Most of our target customers which are student
and working women use these station daily and this will bring good
customers awareness and orientation to Dream and Desire. On their way
to work they can learn about the affordable prices at Dream & Desire.
Website.
A website will be created so that those interested in the salon can view its
services online. The website’s homepage will have an image slider with
pictures of the clients and staff. The ‘About’ section will give the history
of the salon and their mission. There will be a page listing services and
promotions. To engage online visitors, the site will also have a virtual hair
makeover where they can upload a picture and try on different hairstyles
that they can print out and bring to their appointment. Website visitors
will also be encouraged to sign up for the eblast, which will update them
on beauty tips and techniques.
E-blast.
A bi-weekly e-blast will be sent out to all clients who sign up on the
website.
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The e-blasts will discuss hair and beauty tips, and it will also provide
YouTube hair tutorials for clients in between visits. It will teach women
how to take care of their hair, skin, and nails, so they can get the most out
of their salon look. The e-blast will also ask for a birth date when signing
up, so when clients have a birthday they’ll receive a birthday
announcement and 50% off any service within a week of their birthday.
Happy deal days.
This is one of two community outreach initiatives. Dream and Desire staff
members will visits homes, to offer discounted haircuts, manicures,
and free face waxing and massages. The staff will visit homes on the first
Monday of every month from 8am -1pm. It will be a good way for Dream
& Desire to reach their tertiary audience, while providing free services for
seniors in the area.
Discounts for students.
The second community outreach initiative is to reward students with good
grades by offering discounted services for prom. Students who have As
and Bs on their report card will be able to receive 30% off hair services.
25% Discount for every student is also recommended Stylish hair cutting
styles are dream and desire for most students, so offering this discount for
students will attract lots of students.
Post photos online frequently
Dream & Desire the best and most diverse photos and make sure to post
them on your website. Even more importantly, post them on your Twitter
and Facebook Wall. People may not visit our website frequently, but they
monitor their Twitter and Facebook feeds on a daily and hourly basis.
Start a blog
Nothing works better in online marketing than becoming a resource of
targeted information. As a hair stylist, you can probably easily think of
products you can review, or tough braids that you can write tutorials on..
These articles can boost your visibility in search engines and give you a
whole lot more to share and talk about on social media.
Throw contests
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A good haircut only costs your time, and can bring in new customers.
Throwing contests that ask people to follow you on social media, or even
better, submit public testimonials as a way of entering, can be invaluable
to your business.
Keep up with the hottest trends
For example, right now feather hair extensions and tinsel extensions are
all the rage. Any salon that starts offering feather hair extensions today, is
going to have a tough time competing with other hair salons who have
been offering them for over a month now and already have customer
pictures to post on Facebook and Twitter.
Host a promotion at a public place
Some salons have had success setting up at art festivals, or simply setting
up shop at a local park (with permission) and offering free cuts or bang
trims. These events not only give you exposure but also allow you to hand
out your business cards or discount coupons for their next cuts.
Try SMS marketing
Sending the occasional text message to your clients can have a big boost
in bookings. Reminders for their 6-week follow up or for special
promotions is only recommended for regular customer though, as very old
clients may have already found a new hairdresser and may feel
uncomfortable asking you to stop messaging them.
Offer your own "daily deal"
On our website, Facebook and other social media accounts, offer one deal
a day for one of our services. Local customers may very well subscribe to
your feeds just to stay informed of when we have a deal that meets their
need. This way, you get the customers and you don't have to give up all
Dream & Desire’s profits to one of those other daily deal sites
Socially Responsive Marketing:
For ethical, social and financial issues. Dream & Desire will create clear
cut company’s socially responsive marketing strategy.
Arrange walk for breast disease:
49
Dream & Desire will arrange walk on the breast cancer day to create
awareness in females as this is spreading very fast in Pakistan.
Fund for Education:
Dream & Desire will create fun for education and announce scoler-ship for
five girls in intermediate level and two in graduation level.
Dress Drop Box:
Dream & Desire will place dress drop box for the needy and poor people.
Customers can donate their useless dress for this compagain for poor
people.
A
Total Project Cost
Rupees
Furniture& Fixtures 488,00
0
Office Equipment: 466,00
0
Marketing Expense 352,90
0
Vehicle -
50
Preliminary Expenses 150,00
0
1,456,90
0
Working Capital 500,0
00
1,956,90
0
Financed By:
Sponsors Equity 60% 1,174,1
40
Bank Finance 40% 782,7
60
1,956,90
0
Required Space (sq ft) Marla
Required Land 2,250 10
RENT for 10 Marla space 50,000.00
Rent cost
3 month rent as security 3 150,000
6 months advance rent 6 300,000
Required Land And Rent Cost
Required Furniture & Fixtures
Description No Rate Total
Beds for facial and
waxing 4 18000 72000
Chairs & Mirrors for
Hair dressing 5 22000 110000
Treadmill machines 3 28000 84000
51
Waiting Area Sofa
Set 1 50000 50000
Back Rack 100 550 55000
Reception & Cash
counter 1 35000 35000
Counter Chair 2 5000 10000
Main Borads 1 50000 50000
Furniture and
Fixture
Generators 1 175000 175000
Fans 8 2500 20000
LED 1 35000 35000
AC 4 50000 200000
Back Mirrors 4 2000 8000
Miscellaneous 1 50000 50000
Total 136 523050 954000
52
Required Equipment
Machinery No Per unit cost Total
Machines
Electric Facial Unit 3 45,000 135,000
Steamer for Hair 2 15,000 30,000
Pedicure Machine 2 1,0000 2,0000
Back Wash for Washing hair 2 15,000 30,000
Wax warmer 2 7,000 14,000
Hair dryer 3 5,000 15,000
hair straighter 3 3,500 10,500
Office Equipment
Computer 2 20,000 40,000
Printer 1 10,000 10,000
Telephone Sets 2 1,200 2,400
Refrigerators 1 40,000 40,000
Microwave 2 12,000 24,000
Total 352,900
Expense
Description
Year - I Year – II Year - III Year - IV Year - V
Operation Salaries
1,440,000
1,584,000
1,742,400
1,916,640
2,108,304
Marketing Expense
9,538,711
2,567,211
26,65,128
3,105,223
3771,533
Electricity Chg.
365,760
402,336
442,570
486,827
535,509
Other Utilities
300,000
330,000
363,000
399,300
439,230
53
Consumable Store (Makeup and other
material)
600,000
660,000
726,000
798,600
878,460
Repair & Maintenance
14,116
11,575
9,260
7,408
5,926
Salon Insurance
9,881
2,259
1,807
1,445
1,156
Depreciation
212,580
174,944
144,347
119,431
99,102
Amortization of Prelmn.Exp
15,000
13,500
12,150
10,935
9,842
Total
22,496,04
8
25,745,82
4
29,506,66
2
33,845,80
9
38,849,06
2
Expected Cost of Sales
Expected Number of Sales
Services Year
1
2 3 4 5
Per day
customer
Per
month
hair Cutting 5 120 1,440 1,80
0
2,25
0
2,81
3
3,51
6
Eye Brow 8 192 2,304 2,88
0
3,60
0
4,50
0
5,62
5
Waxing 2 48 576 720 900 1,12
5
1,40
6
Facial 4 96 1,152 1,44
0
1,80
0
2,25
0
2,81
3
Hair Dying 4 96 1,152 1,44
0
1,80
0
2,25
0
2,81
3
Mani cure Pedi 2 48 576 720 900 1,12 1,40
54
Cure 5 6
Hair Styling 4 96 1,152 1,44
0
1,80
0
2,25
0
2,81
3
0 0 0 0
0 0 0 0
Party Makeup 1 5 60 75 94 117 146
Bridal Makeup 1 10 120 150 188 234 293
Expected Price Per Service
Unit Prices Year
s
1 2 3 4 5
Services Per unit Price
hair Cutting 500 500 550 605 666 732
Eye Brow 50 50 55 61 67 73
Waxing 1,200 1,200 1,320 1,452 1,597 1,757
Facial 800 800 880 968 1,065 1,171
Hair Dying 400 400 440 484 532 586
Mani cure Pedi Cure 600 600 660 726 799 878
Hair Styling 700 700 770 847 932 1,025
0 0 0 0 0
0 0 0 0 0
Party Makeup 3,500 3,500 3,850 4,235 4,659 5,124
Bridal Makeup 8,000 8,000 8,800 9,680 10,648 11,713
Expected Sales
Sales Yr1 Yr 2 Yr3 Yr4 Yr5
Services
hair Cutting 720,000 990,000 1,361,250 1,871,719 2,573,613
55
Eye Brow 115,200 158,400 217,800 299,475 411,778
Waxing 691,200 950,400 1,306,800 1,796,850 2,470,669
Facial 921,600 1,267,200 1,742,400 2,395,800 3,294,225
Hair Dying 460,800 633,600 871,200 1,197,900 1,647,113
Mani cure Pedi
Cure
345,600 475,200 653,400 898,425 1,235,334
Hair Styling 806,400 1,108,800 1,524,600 2,096,325 2,882,447
Party Makeup 210,000 288,750 397,031 545,918 750,637
Bridal Makeup 960,000 1,320,000 1,815,000 2,495,625 3,431,484
Total 5,230,800 7,192,350 9,889,481 13,598,037 18,697,300
INCOME Statement
Year - I Year - II Year - III Year - IV Year - V
Sales/Revenue
5,231
7,
192
9,
889
13,5
98
18,69
7
Cost of Sales
Operation Salaries
1,440
1,
584
1,
742
1,91
7
2,10
8
Electricity Chg.
366
402
443
48
7
53
6
Other Utilities
300
330
363
39
9
43
9
Consumable
600
660
726
79
9
87
8
Depreciation 11 9
56
213 175 144 9 9
Amortization of Prelmn.Exp
15
14
12
1
1
1
0
2,957
3,1
79
3,
442
3,74
1
4,07
8
Gross Profit
2,273
4,
014
6,
448
9,85
7
14,62
0
Operating Expenses:
Administrative Expenses
Printing & Stationary 60 66 73 8
0
8
8
Entertainment
30
33
36
4
0 44
Telephone Fax and
Postage
72
79
87
9
6 105
162
1
78
196 216 237
Rent
600
660
726
79
9 878
Operating Profit
1,511
3,
176
5,
526
8,84
3
13,50
4
Financial Charges
104
82
60
3
8 16
Profit before Taxation
1,407
3,
093
5,
466
8,80
5
13,48
8
Taxation 20%
281
619
1,
093
1,76
1
2,69
8
57
Profit after Taxation
1,126
2,
475
4,
373
7,04
4
10,79
0
Accumulated. Profit b/f
-
1,
126
3,
601
7,97
3
15,01
7
Accumulated Profit c/f
1,126
3,601
7,973
15,017
25,807
CASH FLOWs
Year 1 Year 2 Year 3 Year 4 Year 5
Profit before Financial
Charges & Taxation
1,511 3,176 5,526 8,843 13,504
Amortization 15 14 12 11 10
Depreciation
213
175
144
119
99
1,739 3,364 5,682 8,974 13,613
Working Capital
Change
299 43 49 56 65
Cash from other
Sources
Owners 1,17
4
- - - -
Bank Finance 78
3
- - - -
58
1,95
7
- - - -
Total Sources 3,995 3,407 5,731 9,030 13,678
Applications:
Fixed Assets 1,30
7
- - - -
Preliminary Expenses 15
0
Re -Payment of Loan 26
1
23
9
21
7
19
5
17
3
L C Charges - - - - -
Tax 28
1
61
9
1,09
3
1,76
1
2,69
8
1,99
9
85
7
1,31
0
1,956 2,87
1
Cash
Increase/(Decrease)
1,996 2,549 4,422 7,074 10,807
.
Opening Balance - 1,996 4,545 8,967 16,040
Closing Balance 1,996 4,545 8,967 16,040 26,848
BALANCE SHEET
Year - I Year - II Year - III Year - IV Year - V
Tangible Fixed
Assets
1,09
4
91
9
77
5
65
6
55
6
Preliminary 13 12 10 9 8
59
Expenses 5 2 9 8 9
Current Assets:
Accounts
Receivable
1,06
8
1,23
4
1,42
5
1,64
6 1,901
Cash in Hand /
Bank
1,99
6
4,545 8,967 16,040 26,848
Total 4,29
3
6,82
0
11,27
6
18,44
0
29,39
4
Owners Equity:
Capital 1,17
4
1,17
4
1,17
4
1,17
4
1,17
4
Accumulated
Profit
1,12
6
3,60
1
7,97
3
15,01
7
25,80
7
Long Term Loan 62
6
47
0
31
3
15
7
-
Current Liabilities:
Accounts Payable 1,36
7
1,57
5
1,81
6
2,09
3
2,41
2
Total
4,293
6,820
11,276
18,440
29,394
6.0 References/Bibliography
http://www. 1 23oye.com/job-descriptions/b/beautician.htm
Certo, S. (2003). Modern M anagem ent. New Jersey. America.
Company profile. Retrieved October 17th 2007 from
http://www.shahnaz-husain.com/company.asp
Job description: beautician / hair dresser. Retrieved October 17th 2007 from
http://www.co.pierce.wa.us/xml/services/lawjust/Job%20Description%20-%20Beautician-
Detention%20Services.pdf
60
Kotler, P. (2000). M a r k e tin g M a nag em en t. Prentice Hall International Inc.
M a r k e t S e g m en tat ion Surveys. (n.d). Retrieved April 20, 2007 from
http://www.surveyz.com/products/products%20-%20market%20segmentation%20surveys.html
M a r k e t S e g m en tat ion S u r v e y s. (n.d). Retrieved April 20, 2007 from
http://www.surveyz.com/products/products%20-%20market%20segmentation%20surveys.html
Pinkerton, E. (n.d). B eauty Salon Floor Plans. Retrieved October 1st 2007 from
http://ezinearticles.com/?Beauty-Salon-Floor-Plans&id=304308
'Rough Guide' to Marketing Strategies for Small Businesses: Optimizing. Retrieved
October 13th 2007 from Resourceshttp://www.cim.co.uk/cim/ser/html/infHow.cfm?
objectID=3CD457 11-DCC6-4CB7-B854F876 11401 82F&displaytype=fullSalon layout
request. (n.d). Retrieved October 1st 2007 from
http://www.salonspasolution.com/design-request.php
Shiffman, L. G., & Kanuk, L.L. (2004). C on s u m e r B e ha v iour. (8th ed). New Jersey.
Pearson
Education Inc.
Table: PP8 Population in 5 year age group by sex and locality. Retrieved October 1st 2007
from http://www.planning.gov.mv/publications/Population%20and%20Housing%20Cen
sus%202006/pop.htm
Annex: 2. Methodology
A questionnaire was used as a tool to collect data about the customers who seek service
from beauty salons in this area.
Sample size selected for this research was 60 female subjects. This included:
20 Students
40 Professional
20 Home Users
Convenience and snowball sampling was used as the sampling techniques. While
distributing the questionnaire respondents were chosen on the basis, whether they visited
beauty salons.
Annex: 3. Equipment details
61
62
63
64
65
Annex: 4. Beauty Spot layout
Manicute Table New Product Trolley
Series WS-2091
4
66
