Marketing Strategy and Operations Plan †Free Samples to Students

Question: Discuss about the Marketing Strategy and Operations Plan. Answer: Introduction: Funky Punky Hair operates as a sole proprietorship firm with the owner, Nerida operating as the Principal Stylist. The operations team is further constituted by two senior and one junior stylist and also by one second and first year apprentice. Further, Nerida also appointed her daughter to work as the Salon manager. She also appointed a bookkeeper that would take care of the accounts books and payroll for the staffs. Funky Punky Hair operates as a Salon based in the Strathpine region of Queensland. It serves the needs of different categories of customers like men, women and children in meeting their beautification needs and also sells different types of hair care merchandises. Moreover, Funky Punky Hair also provides walk-in customers with Quick Salon services. The Quick Salon services rendered by Funky Punky Hair ideally contributes in attracting large number of customers to the Salon centre. The analysis of the marketing performance for Funky Punky Hair against the set marketing objectives reflects that the Salon Centre had failed to meet the targets concerning sales revenue, repeat business and also customer satisfaction. The evaluation of the marketing performance against objectives however reflect that the firm had gained the potential regarding reducing the level of cost or expenses compared to that of the forecasted figure. The forecasted revenue for the year amounted to $238,914 while the amount of revenue generated was recorded to be $105,122. In terms of Repeat Business, it was observed that only 210 customers out of the total 1,752 customers returned to the salon along a six month period. Regarding customer satisfaction, marketing surveys reflected that the customers visiting the salon generated different complaints like non-interest of the hairdresser to customers specifications and needs. Moreover, the customers also complained that the colours rendered by the salon failed to aptly meet their colour requirements. The customers also rendered complaints regarding longer waiting times, improper and inadequate etiquettes and customer greets, overpricing of services and also lack of effective management of kids. A fewer number of customers however reflected that they were satisfied in that the hairstyle provided ideally matched their requirements and encouraged them to revisit the salon. The expenses incurred for the year by the salon however was observed to be lesser than the forecasted figure. Forecasted expenses for the annual period amounted to $28,670 where month-to-date expenses incurred amounted to $22, 363. Evaluation of Business Progresses Strategically speaking, the salon though worked on development of Quick Salon services for attracting customers yet failed to generate any type of market hype owing to the absence of a grand opening and also owing to dependence only on two hairdressers that belonged to another region. The lack of grand opening created problems regarding the availability of an effective entrance in reaching the salon. The lack of effective proximity and also needed hype failed to attract potential customers in that they lacked knowledge of its existence in the region. Moreover, depending on hairdressers belonging to a foreign region also created a handicap in developing an existing database of potential clientele. Further, the salon also suffered from lack of In terms of milestones set, the salon business of Nerida failed to achieve the set targets regarding revenue, repeat business and customer satisfaction. Only the milestone regarding expenses was duly achieved by the salon. The performance figures reflected that the salon failed to surpass and even match the budgeted figure for the revenue. The budgeted revenue for the annual period was taken as $238,914 where the revenue gained till date amounted to $105,122. Regarding the expenses budget, the Cost of Sales for the annual period amounted to $28,670 where month-to-date expenses were recorded at $22,363. Evaluation of the Success of Marketing Mix Products: Funky Punky Hair has a product mix constituted by hair products that are retailed to customers along with salon services that are provided tom customers either based on appointments or to walk-in customers. The salon however suffered from the lack of effective product mix regarding the right and best quality hair colours, conditioners and shampoos(Curtis, 2012). Customers complained regarding the colour stating that the colour provided did not meet their requirement. Price: Funky Punky Hair entering the salon market was required to set a standardised price for the products and services and was also required to work based on a penetrating price strategy for attracting customers. Subsequently it could have used the skimming price strategy in terms of charging premium prices for premium services and branded products used (Stimpson Smith, 2015). The customers however complained because of lack of standardisation of the prices where for the same service or colour product one customer was charged less and the other more. Further, the services offered by the salon were also identified to be costly in nature. Place: Funky Punky Hair Salon is observed to operate based on franchisee outlets, upscale salons and other salon chain stores. However, of late due to failure in meeting of sales targets, the salon was required to close down a salon chain store rendering Quick Salon services to customers. Moreover, customers had lack of knowledge of the store owing to the unavailability of an effective entrance and also because of an unattractive signage. The salon was required to develop its presence both physically and virtually for attracting potential customers(Weliver, 2017). Promotion: Funky Punky Hair Salon had very limited amount of promotional activities involving printed mediums like the Coastal Express and the Morton Bay Press. The use of limited amount of promotional activities affected its chances of appealing over to a larger audience regarding the products and services offered by it(Milady, 2013). People: Funky Punky Hair Salon suffered because of understaffing. The same accounted for growth of crowds and queues in the salon and also delay in the generation of effective customer services. Moreover, the hairdressers also rendered faulty services that contributed in growth of customer dissatisfaction(Coughlin, 2011). Process: Funky Punky Hair Salon required the presence of an effective process through which salon services can be offered to customers in a faster fashion and more effectively. The lack of effective operational and customer servicing processes affected the operational quality generating greater customer dissatisfaction(Weliver, 2017). Physical Evidence: Salons are required to render to the customers effective brochures and fashion portfolios such that the customers can effectively choose the hair designs and colours. Further, the salon is required to effectively service the customer by rendering the style chosen. The stylists and hair dressers at Funky Punky Hair Salon were criticised for their failure in rendering the styles chosen(Blythe, 2012). Evaluation of the Marketing Strategies for the Salon Funky Punky Hair Salon is required to develop its presence in the beautification market through using different types of promotional tools like broadcasting, digital and online, social networking and print media on a larger scale. The use of such promotional tools would help in cultivating greater brand awareness for the salon. Further, it is required to develop its front faade for attracting potential customers and is also required to enhance the level of store atmospherics in terms of incorporation of effective music and lighting. The salon is also required to sustain effective relationship with its potential customers through the generation of customised offers and rebates on different occasions like birthdays and anniversaries of its prospective client base. Surveys are required to be carried out through use of social networking and digital mediums and feedbacks are required to be incorporated for enhancing its customer focused image(BizPlanDB, 2014). The economy of Australia reflects needed growth and is taken to reach to about 3 percent by the end of 2018. The rate of inflation corresponding to economic growth is taken to hover around 2-3 percent. The GDP in terms of real-growth rate amounts to 2.5 percent during 2016 with the GDP Per Capita at $48,900. The services sector tends to comprise around 68.2 percent of the GDP in the region employing around 75.3 percent of population(CIA, 2016). Development of apps and websites for Smartphones and Tablets fostering greater interactivity with customers in terms of generating beauty suggestions and also generating sales. Use of social networking tools like Instagram, Facebook and also generation of blogs are made in an extensive fashion for sustaining relationship with customers. Development of relationships and collaborations with wedding planners Participating in trade shows and exhibitions(Salon Today, 2017). Social Trends and Impact of Demand for Quick Salons Australia reflects potential shortage of effective and skilled manpower for addressing the hairdressing needs of customers. The Metropolitan regions reflect increased demand for salon and hair dressing services with low amount of skilled human resources(Working Down Under, 2015). The beauty and cosmetics sector of Australia is becoming largely competitive owing to the entry of foreign players and also because of the development of the Australian currency rates. Moreover, the development and use of online and digital interface is also enhancing the competition level in the industry through helping customers in sorting and accessing different cosmetic and beauty solutions(Whitehouse, 2014). Product Mix: The salon rendered limited hair care and cosmetic product offerings with lack of effective quality. It only formulated the Quick Salon service for enticing customers. Price Mix: The prices of the products and services rendered by the salon lacked standardisation in terms of prices. They were charged affordably and expensively from case to case. Place Mix: The salon failed to reach mass market owing to lack of needed stores. Further, it had no effective entrance to its store outlet that lacked needed customer knowledge. Promotion Mix: The salon only depended on print marketing mediums for promotion and marketing. People Mix: The salon had lower number of staffs that lacked essential customer servicing skills. Process Mix: The customer servicing and operational process lacked effectiveness regarding quicker delivery of services. Physical Evidence Mix: The salon failed to match the hair styles as promised in pictures and catalogues. The marketing strategies of the salon lacked effectiveness owing to the presence of an unattractive faade and also reduced involvement of promotional and communication mediums for generating needed brand awareness among the target market. The marketing metrics like repeat customers, customer satisfaction, revenue and expense estimation and forecasting lacked needed innovativeness and potentiality. Recommendations Product Mix: The product mix can be enhanced through use of quality colours, shampoo and hair conditioners. Price Mix: The salon need to focus on the use of penetrating price strategy regarding selling its products and services. However subsequently it needs to incorporate skimming price strategy for generating greater returns. Place Mix: The salon needs to open up large number of stores through the use of franchisee networks. Further, it needs to develop an app and also an e-commerce site for generating an online presence(Curtis, 2012). Promotion Mix: The salon needs to promote its products and services through the use of broadcasting channels, print, online and social networking media to the larger market and generate needed brand awareness. People: Funky Punky Air Salon needs to effectively train and enhance the customer servicing skills of its internal people for providing quality services to customers. Process: The salon needs to increase the speediness of generating services for avoiding queues and delays(Salon Today, 2017). Physical Evidence: The salon needs to develop brochures and catalogues both printed and online for helping the customers in choosing hair styles(Milady, 2013). For Strategic Objectives Enhance the level of brand awareness by 20 percent through use of social media marketing. Enhance the level of market share by around 30 percent. Develop greater customer satisfaction levels through generation of customised offers. Enhance the level of technological competence through development of apps for Smartphones and other digital mediums. To focus on generating training to internal staffs and enhancement of stores through franchising options. Funky Punky Hair Salon needs to develop the entrance facility as well as the front faade of the store. It is also required to incorporate an effective CRM system for interacting with customers with also the use of social networking platforms. Customised offers are required to be rendered for entertaining the customers. Different types of marketing metrics like rate of customer conversions, ratio of leads to closed orders, growth in footfalls and also the rate of customer retentions are required to be incorporated by the salon. Development of a Communication Strategy Key message Target Audience Communication Channel Staff responsible Date/duration Budget Affordable and high-quality Salon experience Women, Men and children Television Sales and customer servicing 30-40 seconds slot AUD 3000 Affordable and high-quality Salon experience Women and Men Radio Sales and customer servicing 30 seconds slot AUD 2000 Offers, rebates, new service launches and products Women and Men Magazines and Newspapers Customer servicing and liaison Full and Half pager advertisements for alternative weeks for three months. AUD 80 Key launches, offers and rebates Women and Men Digital platforms Sales and Operational managers with IT Staffs Digital platforms are to be created for marketing of promos and other offers AUD 40 New launches, price offers, purchase options Women and Men Website IT, Operation staffs An effective website is needed to be developed and retained for attracting customers. AUD 40 Circulating news regarding new product and service launches, new stores and apps, customer testimonials, videos of customer servicing Women and Men Social Networks Subordinate staffs, managers and also customer servicing personnel Social networking platforms like Facebook, Twitter and blogs are needed to be created and updated to reflect new service launches and other new offers. AUD 50 References BizPlanDB, 2014. Hair Salon Business Plan. United States : BizPlanDB. Blythe, J., 2012. CIM Coursebook 08/09 Marketing Essentials. New York : Routledge. CIA, 2016. Australia. [Online] Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/as.html [Accessed 6 October 2017]. Coughlin, P., 2011. Wedding Magic. United Kingdom : Penguin. Curtis, T., 2012. CIM Coursebook 07/08 Marketing in Practice. New York. Milady, 2013. Milady's Standard Esthetics: Advanced. United States : Cengage Learning. Salon Today, 2017. 9 Industry-Proven Ways to Market Your Salon and Build Your Brand. [Online] Available at: https://www.salontoday.com/article/82217/9-industry-proven-ways-to-market-your-salon-and-build-your-brand [Accessed 6 October 2017]. Stimpson, P. Smith, A., 2015. Business Management for the IB Diploma Coursebook. United Kingdom : Cambridge University Pres. Weliver, P., 2017. Mary Gladstone and the Victorian Salon. United Kingdom: Cambridge University Press. Whitehouse, L., 2014. Cosmetics arena getting competitive in Australia. [Online] Available at: https://www.cosmeticsdesign-asia.com/Article/2014/04/03/Cosmetics-arena-getting-competitive-in-Australia [Accessed 10 October 2017]. Working Down Under, 2015. Can you cut it in Australia? [Online] Available at: https://isagroupuk.co.uk/wp-content/uploads/2015/05/Hairdressing-in-Australia.pdf [Accessed 6 October 2017].