Marketing plan approach must be considered for new businesses
Table of Contents
2 Section 1: Business Idea and Unique Selling Point
2.3 Description of Business / Products
2.4 Target Market and Customer Base
3.1 Sources of Competitive Advantage
3.2 Competitive Business Strategy
3. Section 3: Operational Plan
4.1 Business Legal Format and organizational Structure
5. Section 5: Strategic Development Plan
1. Executive Summary
Before starting a business, it is important that the business must be able to consider a marketing plan approach. Accordingly, the booming tourism industry of Hong Kong has paved the way for different entrepreneurs to put up new business ventures in the Hong Kong market. One of the most progressing business industries today is the spa health and wellness industries. This is because there are more people who are conscious with their figure and their health status. Accordingly, health and wellness programs respond to growing market demands for fitness level improvement; for health lifestyle education; for nutrition counseling; for healing; for holistic, naturopathic, alternative or eastern medicinal practices/therapies. Cosmetic surgery enables people to have the physical appearance that they want which boost their confidence, specifically those who are working in showbiz and entertainment industries. This is something that enhances confidence and personality. It is very important to match between inner beauty and external beauty to gain profound sense of self-comfort and confidence.
Beauty and Aesthetics Inc offers a new way for clients to feel more relaxed and more beautiful by providing them an innovative plastic surgery in a safer and more convenience environment. To achieve the organizational objective, the business will consider a strategic marketing plan.
Section 1: Business Idea and Unique Selling Point
2 Section 1: Business Idea and Unique Selling Point
2.1 Mission Statement
To supply cosmetic services as well as products that enhances the clients’ physical appearance and spiritual relaxation – at affordable prices. Our clients will choose us because of their belief in our ability to meet or exceed their expectations of price, service, and expertise.
2.2 Business Purpose and Aims
l To establish Beauty and Aesthetics Inc as the dominant spa and wellness industry in Hong Kong
l Establish a rapport with other virtual enterprises by exceeding expectations and earning a reputation
l Network and create partnerships to increase sales
l Provide sales incentives to staff to meet goals of 10% per month
l Net income more than 10% sales by the third year
2.3 Description of Business / Products
Beauty and Aesthetic Inc will, upon commencement of operations, provide a broad range of beauty services and products. The resort is for health minded people who want to learn about cleansing fasts, vegetarian food, Yoga and Meditation, exercise and just feeling better, looking better and living longer. Furthermore, the business will strive to provide the clients the latest in cosmetic surgery procedures and services in a safe, caring and comfortable environment. Combine a professional approach to patient education with the personalized attention each clients. We are committed to protecting the clients’ privacy. What will set the business apart form the competition is the commitment to providing all of these services in one convenient location.
We understand managing a business demands dedication, persistence, the ability to make decisions and the ability to manage both employees and finances. We believe we have the management team to meet these demands. The business founded by three owners, all of whom hold director positions.
2.4 Target Market and Customer Base
For Beauty and Aesthetic Inc, their market can be divided into three target populations:
- Individuals: people who wants to improve their physical appearance and health status
- Celebrities: those people who are working in the entertainment industry who wants to enhance their physical appearance to stay good looking in front of the audience.
- Tourists: people who have traveled to find a place for relaxation.
The customer base of Beauty and Aesthetics Inc will mostly cater those individuals within and outside the community and other parts of Hong Kong who wishes to have a good physical appearance and health status
2.5 Market Research
In order to make sure that the business is able to meet and provide the needs and demands of their perspective clients, the business will establish a marketing team that will be responsible for marketing research approach to know the latest trends in cosmetic surgery, yoga, meditation and spa industry and to provide it with the target audience.
2. Section 2: Marketing Plan
3.1 Sources of Competitive Advantage
The sources of competitive advantage of Beauty and Aesthetics Inc includes
Ø Location: providing an easily accessible location for customers.
Ø Environment: providing a private environment conducive to giving relaxing and professional service – plastic surgery procedures.
Ø Convenience: offering clients a wide range of services in one setting, and extended business hours.
Ø Reputation: good reputation of the owner, doctor and other “beauticians” as providing superior personal service.
Unlike other spa and wellness center, this business offers quality products and services which suits the needs of their target market. All the things needed for a certain session will be provided by the business in a convenience and affordable cost. With the growing demands for a resort that will offer beauty services and products, the business can be considered to have an edge from the existing competitors. The latest cosmetics surgery will be provided by the resort ensuring that such service will be safe, caring and comfortable for all the clients. The combined professional approach to patient education and the personalized attention given to each customer will be the best asset of the business.
3.2 Competitive Business Strategy
It can be said that the competitive business strategy of the Beauty and Aesthetic Inc would be differentiation strategy. Through this, Beauty and Aesthetic Inc will provide distinctive and unique services for their target market. It can be said that the timing is right for starting this new business.
Established and emerging resort business need to constantly improve their business and management skills, keep up with new changing trends within the sector, and develop good business contacts and partnerships. Access to resources are needed that can assist operators with market/industry research, product development and improving standards, professional training and education. By innovation and enhancement, it will increase revenues and profit for resort operators; foster sustainable, high quality and wellness experience across the resort, increase the capability of these resort operators to be globally competitive.
Beauty and Aesthetic Inc will be profitable because every needs a vacation, in which they can escape the stress and problems of their everyday lives. It has tremendous capacity for future growth. Future expansions may include develop another branch in China..
3.3 Marketing Mix
3.3.1 Pricing.
3.3.2 Distribution.
For Beauty and Aesthetic Inc, marketing placement and distribution strategy, the school intends to increase their market share for their newly developed dance moves as a therapy. In doing so, the school will integrate pricing, advertising and sales promotion strategies. In this regard, the school will be able to position and distribute their dance services in Hong Kong market, promote its new product and overcome strong competitors. As Beauty and Aesthetic Inc aims to preserve its business standards and conduct efforts that will directly address its objectives, this growth strategy will be applicable.
PSUCHE Dance services will be distributed through the school establishment that will be provided to adults who will enroll to the school. In addition, the service will also be distributed to the community within Hong Kong. In this way, the business will be able to cover a higher level of market coverage. The level of profitability in this distribution channel is relatively high as their services are directly made accessible to the consumers. In addition to retailers, the Beauty and Aesthetic Inc will also be distributed through online market. By developing a business website that will cater to provide information online, Beauty and Aesthetic Inc will be able to open a new channel at an even greater market range. This will also allow the active adults and problematic individuals target segment to be aware of the dance therapy school..
3.3.3 Advertising and Promotion.
To promote the business as well as its product, PDS will use print advertisements, and video advertisement and the context of e-marketing. The communication and promotion strategy will tend to reach clients from all over Hong Kong. Since the trend in the market place is the use of e-marketing, Beauty and Aesthetic Inc will also include a website to make the business more accessible even in the international market.
Pamphlets must be prepared to be given to the community and the market place. The pamphlets include the summary of the information given about the significance of dance movement on having quality living. It can be said that before the school program will start, the facilitator must be able to determine which topic will be given emphasis and who will be the participants. The dance school curriculum will identify the specific needs of different clients. In terms of the dance curriculum design, the facilitator may use the preceded/process mode. Since the project give focus more on outcomes and not on inputs, it can be said that such program design is appropriate to use. The most successful advertising will be banner ads, TV ads and inserts in the Hong Kong premises as well as a PR campaign of informational articles and reviews also within Hong Kong.
3.3.4 Customer Service.
Obsessive customer attention is the mantra. Psuche Dance philosophy is that whatever needs to be done to make the customer happy must occur, even at the expense of short-term profits. In the long term, this investment will pay off with a fiercely loyal customer base that is extremely vocal to their friends with referrals.
3. Section 3: Operational Plan
4.1 Business Legal Format and organizational Structure
4.1.1 Premises
One of the important things to consider is to find the right premise for the business. This is a very crucial aspect because the profit will depend on how and where a business established the business and launch it. Since Psuche dance is a school, the business should consider investing on a building premises. Herein, the management should buy a space for establishing the business in the central market of Hong Kong. Finding a place in market hub locations can be helpful for making Beauty and Aesthetic Inc be known in the HK market.
4.1.2 Suppliers
For the Beauty and Aesthetic Inc, the supplier of the business includes different industries which have related business to Beauty and Aesthetic Inc. They can also team-up with different dance schools in Hong Kong and counseling businesses to create a dance curriculum for people who want to release negative vibes and those who wants to feel relax and calm in facing life challenges and problems through dance.
4.1.3 Recruitment and Personnel Management
The management of the business must be able to implement effective human resource management, specifically in terms of recruiting and selecting the most appropriate personnel to make the business a success.
The business will use an effective recruitment and selection approaches so as to hire skilful and efficient managers and dance instructors and psychologists to ensure competitiveness of the business in market and they also use standardized human resource management policies to ensure smooth operations in the entire region. These primary activities are the first steps done in hiring people. In selecting the right employee in the managerial position, the organisation takes note of several factors; however, positive work attitudes and technical skills appear to be the most prioritized qualities needed from employees to be hired (, 2002) in Beauty and Aesthetic Inc.
The position that should be considered includes the following:
Table 1
Description of Employees to be Recruited
|
Designation |
Degree/Diploma |
Work Experience |
|
Professor:
|
Master in Worldview Studies Professional Diploma in Occupational Therapy
|
Over 15 years experience Modern Dance, Jazz Dance & Ballet Dance
|
|
Senior Instructor:
|
Degree in Worldview Studies Professional Diploma in Occupational Therapy
|
Over 10 years experience Modern Dance / Jazz Dance
|
|
Account Clerk and reception |
Bachelor in Office Administration/ Psychology Diploma |
2 years experience in doing clerical works. |
The work of the senior instructor and professor will be integrated to ensure that goal and purpose of the client in doing the lesson will be met.
4. Section 4
5.1 Financial Plan
This section will offer a financial overview of Psuche Dance as it relates to the marketing activities. Psuche Dance will address Break-even Analysis, sales forecasts, expense forecasts, and how those link to the marketing strategy.
5.1.1 Break-even Analysis
The Break-even Analysis indicates that H$40,000 will be needed in monthly revenue to reach the break-even point (see Appendix 1).
Sales Forecast
The first two months will be used to get the Beauty and Aesthetic Inc up and running. By month three things will get busier. Sales will gradually increase with profitability being reached by the beginning of year two.
5.1.2 Expense Forecast
Marketing expenses are to be budgeted so that they are ramped up for months two through four and then lower and plateau from month five to month 10. Beauty and Aesthetic Incs typically have increased business in the fall. This generally occurs because during the summer, when the weather is nice and it does not get dark until late, people tend to enroll more on these classes out less. From months 10-12, the marketing costs will increase again (see Appendix 2).
5. Section 5: Strategic Development Plan
6.1 Business Controls
6.1.1 Management
The management will be responsible for handling overall operations of the Beauty and Aesthetic Inc, including the marketing and business strategies. The management are also responsible for public relations operations to ensure that the business has been able to reach their target market upon their launch. The management is also responsible for reviewing and monitoring the situation in the business quarterly to know achievement of the business each quarter and what should be done to increase public awareness. All in all, the management must be consistent across organizations.
6.1.2 Sales
The employees including the t faculty members department are exemplary when it designing new dance movements and modern dances that they can use as a therapeutic moves for the clients. The knowledgeable employees are a leap against its competitors and the sales team is responsible for making the business a success. In addition, the business will have experienced professors and instructors to meet the needs of the clients.
6.1.3 Costs
These are the estimated costs that will be considered upon the launch of the business. The advertisement of the entire project focuses on the TV, Newspaper ads, flyers as well as the Internet. Each TV advertisement causes $500 dollars per 30 second ad per station. The newspaper ads cost $500 per advertisement; furthermore, the flyers cost $100, where in $0.10 each ( 2008).
|
Communication |
Estimated Quantity |
Estimated Cost Per Unit |
Estimated Subtotal |
|
Flyers |
5,000 |
$0.10 |
$500 |
|
Television |
10 |
$500 |
$50000 |
|
Website |
1 |
$350 |
$350 |
|
Sponsorship |
3 |
$300 |
$900 |
|
Total |
|
|
$51750 |
This communication and marketing costs will focus on the relationship of the organization towards the primary market.
6. Conclusion
7.1 Strategic Direction
7.1.1 Future Opportunities
Since BEAUTY AND AESTHETIC INC is not that familiar with the local Hong Kong audiences, conceptualizations of the value propositions of the business performances and entertainment are highly in synch with the traditional culture and entertainment in the Hong Kong audiences. In this regard, marketing approach come relatively easier to BEAUTY AND AESTHETIC INC management to enter Hong Kong audiences to reach their target market easily. Such market situation should be taken advantage by the management to gain competitive edge against other entertainment industries, which are performing in front of Hong Kong audiences to gain attention and informing them the benefits of dance school to release negative energies.
7.1.2 Future Threats
In terms of the threats, one of the threats facing Beauty and Aesthetic Inc is with regards to the expenses and the inability to provide enough financial resources for each performance to be made within the specific market place. Aside from these, the threat of the exiting entertainment business may also affect the market entrants of Beauty and Aesthetic Inc at Hong Kong audiences.
7.1.3 Future Direction
Based on the analysis, the business is in need of a comprehensive marketing strategy to ensure market success in the Hong Kong audiences. For this strategic development plan, it is recommended that the management of BEAUTY AND AESTHETIC INC should focus on managing all their employees and talents of the business. In addition, to be able to maximize their advantage in entering the Hong Kong audiences, the management should be able to manage this strategically. In line with the marketing development, the business should maximize the use of their financial resources in the latest trends in the market environment. They also need financial resources, to sustain their strategic development in considering employee trainings to ensure that the changes in line with their interactive media planning sill be successful.
There are various factors that affect the success of the business market entry strategy. One of these is the context of organisational culture. Accordingly, with an enhanced organizational culture, and change, both the management and the employees are extremely involved in a constant joint effort to enhance the quality of the firm’s products or services at every level through strategic renewal. This then involves an impact similar to that of a chain reaction in which, the united goal of the organization to improve its services will eventually enhance their clients’ satisfaction and minimize the firm’s total costs. Another factor includes the leadership ability of the management (1998). The role of the leaders for example, is significant in developing organizational efficiency to successfully implement strategic changes. According to (2002), efficient leaders have the ability to view the future. They are equipped with compelling abilities to visualize where things will naturally end or lead to. Unlike other people, individuals with leadership abilities see things that are not noticeable or obvious to others. In addition, leaders have the ability to build and establish confidence to others (, 2002).
It can also be said that the resources, capabilities, and business environment of an organisation or industry can all contribute to the efficacy or success of implementing this strategic changes for Beauty and Aesthetic Inc. The business should then design a project plan for this strategy. Important resources that will serve as the strategy’s framework should be prepared. It is also suggested that the business develop a monitoring system, which will regularly evaluate the strategy’s progress. This will be helpful for detecting problems ahead of time as well as in implementing strategy changes or improvements.
In this strategic development, it can be said that the commonness of the two is the initiation of the strategic planning. Accordingly, strategic Planning is part of the strategic development wherein the management team identifies ways and techniques to initiate the development or execute their objectives. Strategic planning can be utilized when an organisation intends to instigate or initiate a certain project, in this case the BEAUTY AND AESTHETIC INC information technology development and interactive media development and the marketing strategy development that will enhance the competitiveness of the organisation ( 1998).
The strategic plan for each development, specifically in terms of their resource planning, assures that the business only utilized a strategic planning approach that will benefit the business to achieve its goal. In this manner, the management of BEAUTY AND AESTHETIC INC should be able to incorporate strategic planning and implementation in line with its resources for both strategic developments.
7. Appendices
Appendix 1
|
Break-even Analysis |
|
|
Monthly Units Break-even |
4,000 |
|
Monthly Revenue Break-even |
HK$40,000 |
|
Assumptions: |
|
|
Average Per-Unit Revenue |
HK$10.00 |
|
Average Per-Unit Variable Cost |
HK$4.50 |
|
Estimated Monthly Fixed Cost |
HK$22,000 |
Monthly Sales Forecast
|
Sales Forecast |
|||
|
Sales |
FY 2008 |
FY 2009 |
FY 2010 |
|
Individuals |
HK$103,710 |
HK$262,527 |
HK$327,424 |
|
Families |
HK$150,304 |
HK$380,474 |
HK$474,528 |
|
Tourist |
HK$25,401 |
HK$64,300 |
HK$80,195 |
|
Total Sales |
HK$279,415 |
HK$707,301 |
HK$882,148 |
|
Direct Cost of Sales |
FY 2008 |
FY 2009 |
FY 2010 |
|
Individuals |
HK$46,669 |
HK$118,137 |
HK$147,341 |
|
Families |
HK$67,637 |
HK$171,213 |
HK$213,538 |
|
Tourists |
HK$11,431 |
HK$28,935 |
HK$36,088 |
|
Subtotal Direct Cost of Sales |
HK$125,737 |
HK$318,286 |
HK$396,966 |
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