Bella’s Beauty Salon- Marketing Plan- 2018

Bella’s Hair Salon and SPA

Nancy Alvarez Vazquez

78606
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1.0 Executive Summary

Bella’s Hair Salon is a beauty salon it in the downtown area of Orlando, FL. The location of

Bellas’s Hair Salon is based at the center of a busy downtown area with ample traffic. The major

households of downtown Orlando area have a high economic status which respecting accepts a

high-quality service. We offer service that makes people feel good about themselves physically

and fell relax emotionally. Our services enhance customer’s self-esteem and reduce stress

caused by the environment. Bella’s Hair Salon is a full-service beauty salon dedicated to

providing high customer satisfaction by rendering excellent service, quality products and

furnishing an enjoyable atmosphere at an acceptable price/value relationship.

2.0 Situation Analysis.

Being a local business that could provide services to a specific number of people monthly, it

doesn’t have big production lines or complex supply chain. Our goal is to offer great service to

create a lasting impression on our customers. The salon has five chairs in the main room, for

cutting hair, perms, and color. Two more chairs for men’s who prefer to have haircuts and color

without being the center of attention. Four shampoos bowl and have two manicurists for

manicure and pedicure along with a receptionist.

Supply materials the Hair Salon is alienated into two groups: beauty care supply supplies like

lotions, creams, scissors, etc. Since the volume of supply materials that are to be refilled is not

significant, there is no need to hire another person to handle supplies, receptionist can do it as

part of her daily duties.

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2.1 Market Summary

The beauty salon industry is very stable. We have great information about the market,

and we are aware of what is a great deal about extensive capabilities involving the most valued

customers. The hair salon business tends to become partial; people want quicker, more accessible

and inexpensive services all in one place. Clienteles are educated and more demanding of valued

service. Our market area includes Orange, Seminole and Osceola County and surrounding

counties.

Target Market Segment

The typical customer in Bella’s Hair Salon is a middle-aged woman from Orlando, FL.

Women will typically make up 80% of the clientele. She is probably married or single and has a

middle level of income. She would be able to relax while taking various procedures and at the

same time could meet with people that also have a problem with time for communicating with

other people. However, it should be mentioned that our salon also would focus both on men and

women as their clients.

Though some women care about their financial and being strategic on services, they are other

women that prices are not a big matter to them, but the quality of the services is critical as they

are expecting to receive excellent quality services. This target market usually is for women that

have high economic status and professional lifestyle.

The income level will be from 25,000 to 100,000 a year. Clients will find ample

opportunities to lift their refresh their look and improve their appearance at our salon. Our

attention and outstanding service will highlight us as an essential salon destination.

2.1.1 Market Demographic

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The Orlando metro population in 2017, is now listed at 2,387,138, according to the Census

Bureau. The region added more than 60,000 net new residents in the 12-month period ending

July 1, a growth rate of 2.6 percent.

Population Demographics By Race And Gender.

Male Female Total

Total Population 115,883 122,417 238,300

White 68,041 69,118 137,159

Black or African American 31,229 35,647 66,876

Hispanic or Latino 29,178 31,305 60,483

Some Other Race 7,928 8,163 16,091

Asian 4,198 4,746 8,944

Two or More Races 3,937 4,208 8,145

American Indian 456 446 902

Three or more races 279 345 624

Native Hawaiian Pacific Islander 94 89 183

According to the Census Bureau's just-released American Community Survey, Orlando has an

average household income of $52,385, which makes it the third worst city among the country's

top 25 metropolitan areas.

2.1.2 Market needs

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Bella’s Hair Salon make their customers feel better physically and an emotionally. Our

Salon would not be limited to providing services to customers; it would give them the value they

lack for making them happy. When people feel great about themselves, life will be meaningful.

Our Salon will ensure everyone come out of our salon feeling happy and gorgeous. We offer

quality services at affordable prices.

2.1.3 Market Trends and Growth

Over the last five years, there is an increase of upscale salons in major metropolitan areas. The

increase takes the form of opening new stores, as well as purchasing independently-owned salons

and transferring them over to the chain. Moreover, this tendency has arisen with the full-service,

family hair cutting stores. According to IBIS World, The Hair Salon industry has managed to

untangle its early post-recessionary loops. Increasing consumer sentiment and per capita

disposable income have increased hair industry rising over the five years to 2017. This has as

well have led to increased demand for additional services to regular haircuts, such as hair

treatments (e.g., straightening procedures and perms), skin-care services and massages. In the

future years, the hair industry is forecast to exhibit continued evolution.

The growing numbers aren’t unexpected, though, and neither was this finding from IBISWorld:

“Consumers typically see haircuts to be an essential service relative to other industry services,”

which means the demand for service in the hair industry is steady and consistent.

According to Angie’s list, Haircut prices for women usual is about $43, while a man's haircut is

around $28, according to the Professional Beauty Association, an organization for beauty

industry professionals. Though that can be the general average, the real cost of a haircut ranges

far and wide. A barber at a local beauty shop may charge as little as $10, while a top-notch
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hairdresser in NYC can cost $600 or more. Of course, those numbers don’t include additional

services – things like a wash and dry, styling, coloring, and more – than raise the price even

further. A Keratin treatment, for example, often starts at no less than $40, and is a service many

women pay for in between real hair “cuts.”

Clients tend to get their hair done, on average, at least four times per year, and usually spend a

minimum of at least $150 on haircutting services yearly. Of course, averages don’t tell us all, and

the numbers are pulled down by men and other consumers who go to salons recurrently.

2.2 SWOT Analysis

2.2.1 Strengths

• Great retail space and location

• $200, 000 Capital for startup

• Experience beauty staff

• Elegant design salon

• Competitive pricing

• Variety of services
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• Special relation with suppliers

2.2.2 Weaknesses

• Prices little more expensive than the nearby salon.

• Rent is high due to the size of the salon and the location

• Substantial costs associated with Start-up Company

• Supplies are high due to the quality of the products.

2.2.3 Opportunities

• Steady market growth

• Ability to decrease fixed marginal costs

• Increasing sales opportunities

• Increase revenues for future expansion

• Build new customer reward programs

• The only high in a beauty salon in the area to be established.

2.2.4 Threats

• Competition from existing brands

• Might not be able to compete because so many salons in the area

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• Competitor provides service at lower price.

(M Plans, n.d.).

2.3 Competitor Analysis

Bella’s hair salon wants to be different from other hair salons that offer more than two

types of service. We offer a variety of hair and make-up services. We attempt to maintain the

highest level of customer satisfaction, experience, and honesty. A commitment to novelty and

individualism are at the center of our constant excellency. Bella’s Hair Salon provides the best

services day to day by meeting the demands of our ability to produce the highest quality work.

2.4 Products offering

We use only the best products. Including, Redken, Matrix, Kenra, and Pravana. We offer a

wide range of service that includes:

Hair: Cuts, relaxers, perms, colors, shampoo, Keratin treatments, condition, curling,

reconstructing treatments, etc.

Nails: manicures, pedicures, change of polish and Acrylic nails.

Skin Care: European facials, body waxing, and massages.

Since we are located in downtown Orlando area, there are few barber shops which usually

don’t serve service with appointments. There are a few salons like ours, but they are mainly in
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the very high-income parts of Orlando. We don’t intend to compete with any other salon; we

want to be unique in prices and services.

2.5 Keys of Success

Essential factors to accomplish Bella’s Hair Salon:

 Professionalism is our may Key

 Great Customer Services

 Sell and promote new services and products

 Competitive prices.

2.6 Critical Issues

Bella’s Hair Salon is a new hair salon in town and we still trying to grow in the Beauty

Salon Industry. We have high competition treats from other salons and a little bit employee

turnovers.

3.0 Marketing Strategy

Through promotional strategy, our goal is to build good public relations. For achieving

this objective, it is important to communicate with the customers and note their reviews. No real

advertising campaigns are expected. Our research has demonstrated that open exchange is the

best promoting for this kind of business. We will be that as it may, run specials consistently. We

will likewise approach customers for referrals, and prize them with marked down or free services
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relying on the quantity of clients they bring. We will also offer rebates to the new customers who

have referred.

We also plan to participate in beauty social TV shows and contests. Lastly, we will design

our website, and our bloggers will post health and beauties tips there and share their expertise

with the customers. Online queries will be handled , and customers can then remain connected to

us through our social media page also. According to Forbes, approximately 78% of salespeople

used social media outsell their peers. It will be essential for our Salon to take advantage of

Instagram, twitter, snapchat, FB and other social networks for a market our Salon.

We also want to create healthy relationships with employees. The employee retention and

satisfaction would be ensure. We will provide incentives and perks as a token of appreciation

based on performance. There will be opportunities to experiment new ideas and learn as you

work.

3.1 Mission:

Our mission is provided an excellent service to enhance our clients, physical and mental

relaxation by adding more energy. Our salon is committed to offering and excellent customer

service. Our well-trained employees will provide high quality, comfortable and natural beauty

experience. We offer the best products that will beautify and balance their body and mind

without damaging the atmosphere. When a person feels good about themselves, life will be

meaningful. Our Salon will ensure everyone come out of our salon feeling happy and gorgeous.

3.2 Target Markets

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Our salon is open to all genders for full service. The female clients make more than 70 %

in honor to those women, we implement special promotions an event with a larges package to

enhance the beauty of the woman. Women’s are the ones who bring more revenue for this type

of business vs. men’s. The reason for this is because women maintain their hair and they are

always changing their style with the season. The males will be a target by offering them quick

and proper service. Men’s usually have shorter hair, so they often required haircuts. Our salon

has service also for women with children’s who wanted to run away from the daily routine and

be pamper. Children’s gets special rates; their hair grows fast and sometimes can be expensive.

3.3 Positioning

Bella’s hair Salon will position itself as an efficient, full service, family hair salon.

Bella’s will offer one-stop service offerings. Bella’s will influence its competitive edge to

accomplish its desired positioning.

Our salon always tried to occupy a clear and desirable place in the mind of the target

customer. Bella’s hair salon wants to get a distinctive market position for its service base on

quality and beauty products.

Bella’s will put time and money into training to guarantee that customers get an ideal

experience by providing the best service and the latest stylish.

3.4 Strategies

The most important goal of our salon is to be a full-service salon. This will be possible if

we create a form of community awareness and trust that every individual in a family will be able

to be served in our salon. Since our salon has a low budget marketing plan, social media
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advertising will start out as an efficient way to gain customer attention on what our salon

currently offer and also where the salon is heading. The salon also wants to set all beauty

products apart to allow our customer and walk-in to purchase the products. The sales of beauty

products will give our salon the opportunity to increase revenue in more ways than before.

3.5 Marketing Program

Bella’s hair salon is committed to offering the best pricing, promotions, and advertising.

Prices are going to be affordable base on the average income of people in the surrounding area.

Pricing

A stylist on average can do up to 40 haircuts a day at $25.00 per haircut and four perms a

week at $45.00 for a short hair to $70.00 for a long hair. 8 colors or highlights with a range from

$35.00 for short hair to $300.00 for long hair. We will sell products based on time and supplies

margin of 15 % the first year and growing 20 to 40% in future years.

Distribution

Our salon doesn’t have a distribution center since we are a regular beauty salon, we will

use retailer for delivery to our store.

Promotion and Advertising

No advertisement campaigns have planned. However, we advertised our salon on

Facebook, Twitter, and Instagram. Our location is in the heavy downtown area which made our
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salon very visible to the public. As I mention before we have affordable promotions package to

enhance the beauty of a woman.

Customer Service

Our stylish are all well trained to provide great customer service. Bella’s hair salon main

objective is our customers. A satisfied customer will come back!

3.6 Marketing Research

Bella’s Hair Salon Marketing budget is limited. During our initial phase, we planned to

conduct surveys in the surrounding areas to see what people need regarding hair care. With that

research, the salon will be able to make sure that the Marketing plan is in progress and will

increase sales in the future weeks and months to come. Also, we have plans to conducts survey

of currents customers. These reviews will let us see how we are doing and how we can improve

as a hair salon. The results of these surveys will set the salon apart from others salon in the

market to show our clients that they do value their business.

4.0 Financials

Our goal is to have a great profitable salon. Necessary changes will be done if it needs it to make

things better, this included management and social media revision every quarter. Pictures or

promotions for our salon are posting daily. Our plans expected to generate nearly 300,000 in

2018 with 20 % of revenue for the following year.

4.1 Break-even Analysis

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The break-even analysis show results that indicate that Bella’s Hair Salon will require

revenue of 25,000 a month to reach the break-even point.

Chart Title

January February March April

May June July August

4.2 Sales Forecast

We would hire and train our employees within the first months; employees will help to set up

the hair salon. The table below will review the salon project sales. We have anticipated that our
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sales will increase in the next three years a 30%.

Chart Title
500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Owner Stylist 1 Assistant Stylist 2 Stylist 3 Products Sales Total Sales

First Year 1 Year 2 ($) 20% Year 3 ($) 30%

(B Plans, n.d.)

Bella’s Hair Salon will provide growth sales due to their natural hair care products every time the

customer is in the styling chair. We offer to regular customer discounts on products that we are

selling. This gives the client a chance also to tell others about their own experiences. The salon

also provides commissions and bonus to the hair stylist for selling the products to the customer.

We booked appointments by phone to make it easier to our customers. Some of the customers

want to make sure their appointments are settled, which makes their visit more comfortable.

Strategy implementation remains an area of limited attention in the market of higher education

literature” (Na, 2011).

4.3 Expense Forecast

As a start-up salon, Bella’s Hair Salon needs to increase its perceptibility during the first quarter

and keep working hard to recoup inversions during the first years plus make $100,000 more to
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reach our annual goal. Our expenses are limited, Rent, water, power and supplies, plus employee

salary as part of our monthly expenses.

5.0 Control

Gauge Performance

 Income: Monthly and yearly

 Expense: monthly and annual

 Consumer loyalty

 New Product development

5.1 Implementation

It is important to achieving everyone time and on the spending plan. This plan would make

this business more profitable, this includes if we need to do some changes to do things better.

Administration adjustment would be conducted every quarter; this will ensure that the overall

plan makes things efficiently. Every month we will held a meeting to hear everyone ideas and

see how new goals can be achieve. This way we can reach our objectives is if we are all on the

same page.

5.2 Marketing Organization

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Bella’s owner will be in charge of promoting activities. As I explain before we will use

social media for our promoting activities. Also we can spread flyers to attract more customers.

5.3 Contingency Planning

Risk and Difficulties

 Cash flow can be affected on the first four months of opening.

 Heavy traffic due to construction in Downtown area in the process of construction the

new high way on I-4 and Dr. Phillip Center.

 Missing hair products (like hair dye, brushes, lotions, shampoos etc.).

Worst Case Risks

 Verifying that Bella’s Hair Salon can't support itself on a daily basic.

 Having to liquidate gear or scholarly money to cover liabilities (Dissanayake, 2012)

 Not generate revenue projected.

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References

B Plans. (n.d.). Hair and Beauty Salon Business Plan. Retrieved from B Plans:

http://www.bplans.com/hair_and_beauty_salon_business_plan/strategy_and_implementat

ion_summary_fc.php

https://suburbanstats.org/population/florida/how-many-people-live-in-orlando

https://www.orlandoweekly.com/Blogs/archives/2017/09/22/orlando-ranks-among-nations-worst-

for-income-says-recent-census-survey

https://www.marilynmonroespasfranchise.com/blog/industry-outlook-for-the-hair-salon-business-

in-2017/

https://www.angieslist.com/articles/how-much-does-haircut-cost.htm
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https://www.ibisworld.com/industry-trends/specialized-market-research-reports/consumer-goods-

services/personal/hair-salons.html

Dissanayake, R. (2012, January 15). Marketing plans for salon praba. Retrieved from

Slideshare: http://www.slideshare.net/rashi07/marketing-plan-for-salon-praba

M Plans. (n.d.). Hair Salon Marketing Plan. Retrieved from M Plans:

http://www.mplans.com/hair_salon_marketing_plan/situation_analysis_fc.php

Na, V. (2011, Oct ). Ashford University. Retrieved from Marketing Strategy Implementation In

Higher Education: A Mixed Approach for Model Development and Testing:

http://eds.a.ebscohost.com.proxy-library.ashford.edu/eds/detail/detail?

vid=3&sid=571e8c65-fab0-47fa-b9ff-4f85f644379f

%40sessionmgr4002&hid=4111&bdata=JnNpdGU9ZWRzLWxpdmU

%3d#db=bsh&AN=66401585