7.

MARKETING PLAN

7.1 Description of services

In Beauty Spa, we are going to provide our best services in order to fulfill our
customer needs. Among the services offered are:
Facial Treatment
-Normal treatment
-Special treatment for: moisturizing skin, sensitive skin and oily and ache skin
-Whitening treatment
Spa Treatment
-Candle hearing

-Full body scrub

-Full body whitening mask

-Jaguzzi

-Steam bath

-Sauna

-Waxing

-Massage

Body Slimming
-Normal treatment
-Hot blanket
-Wrapping
Salon
-Hair designs
-Normal treatment
-Rebonding or perm
Other services such as nail buffing, eyebrow shaping and make up are also
provided. We also will provide several packages that including the services
which suitable for those who want to attend party, dinner or any other special
occasions.

7.2 Target market

 A target market is a set of actual and potential customers of our services. A
market consists of people with needs, wants, money to spend, and the power to
spend the money. The recognition that every market consists of potential
customers with different needed behavior is called market segmentation. The
different customer attitudes may be grouped into segments and different
marketing approaches will be taken for each market segment. Our target
market is working women, teenage girls and housewife in Jitra.

7.3 Market size

In order to determine the market size, certain conditions need to be taken into
consideration, that is the population of our target market. By taking into
account the population of our target market, we would know the estimated
number of people who may use our services. According to the information
provided by the GeoNames geographical database the population in Jitra is
around 63,000 people. Below the steps on how we determined our market size.

Step 1: Collect Data

-Population of Jitra = 63000 people

Step 2 : Determine the number of working women, teenage girls and

housewife in Jitra
-Assume 15% out of the total population in Jitra are working women, teenage
girls, housewife
63,000 x 15% = 9,450 working women and teenage girls

As such, our market size is 9,450 working women, teenage girls and
housewife in Jitra.

7.4 Competitors
Competitors Strength Weaknesses
Coco D’ Spa  Well known in  Lack of workers
Jitra
 Variety of
services
  Opens daily from
10 a.m. until 10
p.m.
 Friendly
 Layout of the
Desa Tanjung Beauty employees
shop is not
Spa  Has regular
attractive
customers
 Only have fish
 The only fish spa spa and do not
Dr. Fish & Cosy Spa
in Jitra provide other
services
Figure M1.1 Marketing plan of Beauty Spa

7.5 Market share

After the market size and competitors have been identified, the business can
proceed to estimate how much of the market we can capture. This is known as
market share. Market share refers to the portion of the market that the business
can control after taking into consideration the market size and the competitors’
position in the same market. It can be estimated by looking at the strengths of
the business, in other words, whether it is able to control the market.
Competitors are referred to other businesses that are also involved in the same
industry and are running the same business as ours. Assume that our market of
working women, teenage girls and housewife who are willing to use our
services is forty-eight per cents.

Market share before Annual sales estimation

Competitors
entrance (%) (RM)
Coco D’ Spa 55% 825,000
Desa Tanjung Beauty
35% 525,000
Spa
Dr. Fish & Cosy Spa 10% 150,000
Total 100 1,500,000
Figure M1.2 Market share before the entry of Beauty Spa

Market share after Percentage of

Competitors Amount (RM)
entrance (%) loss (%)
 Coco D’ Spa 30% 450,000 28%
Desa Tanjung 16%
17% 255,000
Beauty Spa
Dr. Fish & Cosy 4%
5% 75,000
Spa
Beauty Spa 48% 720,000 -
Total 100 1,500,000 48%
Figure M1.3 Market share after the entry of Beauty Spa

Estimated Sales for One Year

 Assuming that at least 10 customers per day
=10 customers per day x 30days per month x 12 months per year
=3,600 customers per year.
 Average cost of each spa packages
=RM 200
 Estimated sales per year
=Number of customers per year x Average price of each spa packages
=3,600 customers x RM 200
=RM 720,000

7.6 Sales forecast

Year Month Sales forecast (RM)
1 1 18,000.00
2 18,000.00
3 36,000.00
4 36,000.00
5 66,000.00
6 72,000.00
7 72,000.00
8 90,000.00
9 90,000.00
10 90,000.00
11 72,000.00
12 60,000.00
2 780,000.00
3 846,000.00
4 918,600.00
5 998,460.00
Figure M1.4 Monthly sales forecast

7.7 Marketing strategy

7.7.1 Services strategy
Firstly, once the customers enter our premises, we will give them a
warm welcome by greeting them. This is part of our service strategy to make
our customers feel appreciated when they walk into our premises.
We will patiently explain all the services provided to our customers. It
is our responsible to provide clear information to customers and they have the
right to be informed about our services. In addition, we also will try our best to
provide best possible services to fulfill customer’s demand.

7.7.2 Pricing strategy

The price of a service is the amount of money charged to
customers in order to obtain the service. Pricing strategy is the process
of determining the value of products or services developed by the
company.
In carrying our business services as Beauty Spa, we sell our
services at a reasonable price and affordable by everyone. By knowing
our customers’ demands, we would provide a good price with high
quality services. This is important for us to ensure that our customers
are satisfied and will continue to use our services in future.
In order to fix a price for a service, we have chosen to use cost-
based pricing strategy. This is because in a business, there are a lot of
unforeseen circumstances which cannot be predicted. If any problems
were to occur, for example, increase in the cost of living, there would
be changes in price. These changes would lead to changes to the
pricing of services.

7.7.3 Distribution strategy

Distribution strategy is very important in every business. It is to ensure
that the completed all services needed on time. Our distribution
strategy is direct to customers, there are no middlemen involved
between the customers and Beauty Spa. Customers would come
directly to our premises to enjoy our services.

7.7.4 Promotion strategy

  Advertisement on media
We will place advertisements on media to promote our company.
Internet is the most suitable media for advertizing. We will have
a comprehensive website for our company. Other than that, we
will also create a fan page on facebook to advertize and promote
our company. It is convenient for those who interested on our
services to make any inquiry on the fan page and we will try our
best to reply as soon as possible to solve their doubt.

 Business cards
In our company, each partner has been provided with a business
cards. It would be easier for them introduce our company to
potential customers and outsiders. In our business cards, we have
included our contact details if they want to start using our
services.

 Company signboard
We have a signboard in front of our entrance so that it is easier
for customers to recognize our company.

 Flyers
Flyers will be distributed to the people of Jitra. The flyers will be
distributed from time to time to let more people know the
existing of our company.

7.8 Marketing budget

Other
Fixed Assets Monthly
Items Expenses
cost (RM) Expenses (RM)
(RM)

Company signboard 800.00

Travelling expenses 200.00

Promotion expenses 100.00

-Business card
-Flyers 50.00

Total 800.00 250.00 100.00

Figure M1.5 Marketing budget