Marketing of ZEN Home Salon and Spa Center - Essay Example

Running Head: Business Plan Proposal Business Plan Proposal for The ZEN Home Salon and Spa Center I. INTRODUCTION Zen is a total state of focus that incorporates a total togetherness of body and mind. Zen is a way of being. It also is a state of mind. Zen involves dropping illusion and seeing things without distortion created by your own thoughts (Urban Dictionary 2009) Zen is a word often associated with a quiet mental state. And providing a state of ZEN to our clientele is the main essence of The ZEN Home Salon and Spa Center. The ZEN Home Salon and Spa Center is the only one of its kind in Bellevue, Washington. We offer services on hair styling and treatments, manicure, pedicure, body treatments, facials, hair removal and our specialty - aromatherapy-based massage. These services are available in its local store and may also be enjoyed in the comforts of the customers’ homes. This kind of business proves to be promising due to several reasons, first of which is that we have no direct competitors found within the city. As such, The ZEN Home Salon and Spa is the only business of its kind that would cater to the demands of local residents. In addition to this, with Bellevue’s current profile as a major regional economic and employment center (Demographic and Economic Trends, 2009), we will surely be able to identify a captured market among those employed on a full time basis and do not have the luxury of time to go out during their free days to pamper themselves with a much needed massage or with salon services. The ZEN will surely provide these customers with an opportunity to relax in their homes while enjoying our service. Our home-service strategy would further allow them to save on travel time. The ZEN targets to expand its menu of services in the next six months, depending on the perceived needs of the captured market. We are also looking at selling beauty and treatment products within six months of operation. And with our target to offer unparalleled products and services to our client base, we will make it difficult for a competitor to match our service level standards. Moreover, our pricing would be competitive as compared to other Days Spas in Bellevue and in neighboring cities. The strength of The Zen lies on its being the only home-service business of its kind in Bellevue. The next competition that offers exactly the same service is located at Seattle. With this, we are confident that we could easily penetrate the local market and have good competition with other establishments. Following these conditions, The ZEN is optimistic that we will be able to create a need among the target market within three months after our launch. Further, we aim to create a solid and returning client base of 60 households within Bellevue, and another 60 from neighboring cities in six months’ time. II. SERVICES OFFERED The ZEN prides itself with the following characteristics: We offer the latest in hair styling and treatments, body treatments, facials and hair removal, and will continue to innovate on our services by subscribing to organizations and affiliations to help us get up-to-date information on related products and offers. We will try our best to cope with the dynamism of this industry to ensure maximum satisfaction among our client base. We will only hire highly trained and licensed individuals specializing in each service. As such, our clients will be assured that they are in the best hands and that they are being given 100% quality services. We would also offer after-sales and follow-through services. With our effort to give the best service at our client’s preferred location, we would surely provide our customers better value for their time. As we also give importance to time for family and other extra-curricular activities, this characteristic of our business would surely endear us to all our clients. The Zen will likewise provide value added services such as free follow up consultation and packaged costs for two or more services availed at one time. This way, the company would be able to create loyal base of customers that would do repeat purchase and availments of the services. On top of this, loyalty programs such as frequent buyer concepts shall be introduced. Each loyal customer shall enjoy an added treat from the company, which will encourage him or her to go back for more. The Zen will also sell all natural beauty products that aim to sustain the effects of its services. These products are reasonably priced and the management will ensure 100% effectiveness of the products being sold. III. COMPETITOR ANALYSIS There are several Day Spas in the vicinity of Bellevue which offers basically the same services, among which are Eastside Oasis Day Spa and Massage Therapy, Younger Faces Day Spa and Gene Juarez Salons & Spas. Each of these shops offer the traditional hair care services; hand, nail and foot services and massage. Their prices vary per kind of service. However, none of these establishments offer home service, which makes The Zen stand out and have the competitive edge over them. These stores only cater to walk in customers, in contrast to The Zen, that would go the extra mile to be able to provide its world-class services in the customer’s preferred location. This guarantees the niche market for the company. IV. MARKETING OBJECTIVES The Zen aims to achieve the following: 1. To be the preferred Day Spa and salon in the Bellevue, catering to 60% of the total target market within the first three months of operations. 2. To be able hit break even of its investments by the first year of operations and gain net margin of up to 40% on its 2nd year of operations. 3. To be able to open its 2nd branch in Seattle on the third year of operations. V. PROFILE ANAYLISIS STRENGTH The Zen’s key to success is the uniqueness of its product and service offering. It is the only Day Spa in the area that also offers home service. This is also the strength of the company. In addition, The Zen will employ highly trained operations crew to ensure maximum customer satisfaction. It will hire professional experts in each field and will offer corresponding reasonable prices for the services being offered, WEAKNESS The Zen is a start up company which may find it hard to penetrate the target market in the beginning. It will need to plan strategically its advertising and promotions plan, and ensure that all media vehicles reach their target audience. Another weakness is that The Zen is relatively a smaller organization that most of its competitors, although it plans to expand accordingly in the next few months. OPPORTUNITY Bellevue’s growing economy will definitely add to the probability that the business will thrive despite the threats and weaknesses. The increase in number of the target market means more and more people are interested to avail repeatedly of the kind of products and services that The Zen offers. THREAT The presence of Day Spas in the area proves to be a major threat to the business. IN terms of in-store services, The Zen would definitely takes some time to be able to achieve leadership in its market. VI. TARGET MARKET The ZEN’s target market includes company executives, managers and employees of large and medium corporations located in Bellevue and in neighboring cities. These are the people who work on a full-time basis and do not have the time to visit their favorite spa or salon center to avail of the services they desire. These are also the people exposed to work-related stress and would want to achieve a state of ZEN through availing of our massage services. Secondary target market would be housewives who want to accomplish their salon and spa requirements within the comfort of their homes. VII. CAPITAL Start up cost for the first 6 months amounts to $ 60,000, including payment for the office, initial stocks, merchandising and advertising and other fixed operational costs. VIII. ADVERTISING PLAN A. POSITIONING Total Wellness. This is The Zen’s tagline that will appear in all advertising efforts, logos and promotional activities. This tagline connotes that the store will provide its customers with a total sense of wellness, not only in terms of physical appearance, but also the relaxation of the mind and the emotions. The promise is to give the customers complete satisfaction for every service being offered. B. PRICING To be able to compete heads on with the competitors, The Zen will play the pricing war to attract its target market. First, it will decrease the average cost of a service by 10% to be able to gain the reputation of being one of the cheapest in the area. On top of this, it will offer after-sales services such as free follow up consultation or free follow up haircut given a specific time. These value added service will definitely provide the customers more value for their money. The Zen will also offer beauty and wellness products that would reinforce the services being offered. Aroma therapy-based health care products would be offered at a relatively lower cost, and may even be bought at still a lower price if sold in bulk. C. PROMOTIONS 1. Above the Line Advertising A successful launch is always accompanied by a tri-media campaign to ensure that the target market is reached. However, due to the limited advertising and promotions budget, it chooses to advertise mainly via radio plugs in local radio stations in Bellevue. Repeat exposure via radio advertisements would spark interest among listeners. Among the three mainstream media, radio is considered to be the most cost efficient as it requires the advertiser a fixed advertising cost, yet it allows the product to be continuously stimulating the consciousness of its listeners. 2. Merchandising Strategic merchandising is the key to promote the new business. Billboards and signage, announcements in key points within the city play a vital role in the company’s promotions plan. The ZEN will ensure that the brand, as well as the home service details is displayed in two major billboard sites in two main entry points to the city. It will also display mini billboards and signage in public places such as shopping centers, supermarkets, subways, train stations and bus stations. Billboards should contain the brand name The ZEN, as well as a short description of what is being offered. An enticing photo of two of the store’s top products should be shown also, together with its contact details. The phone numbers, the website and the email addresses should be shown in the advertising materials as well. There will be leafleting activities in areas where applicable. Target areas are university vicinities, and places with high foot traffic. 3. Promotional Activities There will be discount and privilege offerings for frequent patrons, and a loyalty card to ensure repeat purchase among the market. Patrons who call in at least 5 times in one month gets the The ZEN membership card which entitles them to special privileges and incentives on their next purchase. 4. Internet Marketing Internet Marketing has become popular because Internet access is becoming more widely available and used. Well over one-third of consumers who have Internet access at home report to using the Internet to make purchases (What is Internet marketing 2004). Moreover, statistics show that internet users increase at a rapid rate that in five years’ time, it is predicted that 80% of United Kingdom’s population will have a computer with Internet access at home (Advertising 2007). With this, The ZEN sees an opportunity thru Internet Marketing. Since target market is students and employees who are heavy internet users, The ZEN finds the potential of offering their products and services through a company website which lists down the entire menu, and other pertinent details regarding the services. Customers could even request for home service online, and expect the service within the specified time. The ZEN will also tie up with other complementing brands such as book shops and magazine stands, and maximize co-branding and cross advertising in these companies’ websites. D. SCHEDULE OF ADVERTISING The ZEN targets to launch the business in June 2009. Two weeks prior to store opening, management will start announcing this new business venture through leafleting in strategic areas such as flyer inserts in national papers and other similar publications. Simultaneous during the launch date, the billboard shall be placed in the two strategic spots within the city, and shall be displayed for the first three months of operations. The effort shall be sustained by mini billboard displays in approximately 20 other locations in the city. The Official Website shall be made available from the very first day of operations. Word of mouth via internet shall be utilized thru advertisements in some of the city’s local and tourist websites. The ZEN will also post in social networking sites such as Facebook, Multiply among others to be able to make the rounds to target buyers online. IX. Evaluation For the website advertising efforts, management shall closely monitor the number of registrants on a daily, weekly and monthly basis. This will gauge whether the marketing efforts are effective or not. This will also determine whether to sustain these efforts or not. Customers shall be given a rating sheet, which would allow them to provide their inputs and suggestions, and give their ratings as far as the services, and facilities are concerned. This will serve as guides in determining the points for improvement. Most importantly, management will look into the revenues of the store on a monthly basis. They will ensure that the financial and organizational objectives are achieved, and will do so by establishing a balanced income and expenditure statement. Each operational cost shall be monitored and the corresponding sales targets must be achieved to be able to provide for the expense requirements. At the end of the first operational year, there should be an indication that the initial capital has been gained back and that the company is ready to take on more challenges in its succeeding years of operations. Reference List Demographic and Economic Trends 2006. Retrieved February 7, 2007 from http://www.bellevuewa.gov/demographics.htm Zen 2007. Retrieved February 9, 2007 from http://www.urbandictionary.com/define.php?term=zen Advertising 2007. Retrieved April 24, 2009 from http://www.weblinx.biz/advertising.htm Change Management 2009. retrieved April 25, 2009 from http://www.businessballs.com/changemanagement.htm National Statistics 2009. Retrieved April 20, 2009 from http://www.statistics.gov.uk/census2001/profiles/12ub.asp The Cambridge Phenomenon 2009. Retrieved April 21, 2009 from http://www.tomw.net.au/nt/cp.html What is Internet Marketing 2004. Retrieved April 21, 2009 from http://www.what-is-net.info/what-is-internet marketing.html?gclid=COCs9JiE5YoCFQQeTAod5w7UyA Read More