B U S I N E S S
N A I L
T A M M Y
&
T A Y L O R
N A I L S
P L A N
P E D I
S A
F R A N C H I S I N G
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B A R
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1. EXECUTIVE SUMMARY
1.1
BUSINESS DESCRIPTION
Tammy Taylor Nails is a company that operates as a franchise to Tammy Taylor Nails SA Franchising
(Pty) Ltd. The company has exclusive distribution rights to the USA based product that has been
developed by Tammy Taylor herself over the last 35 plus years. Our New Generation salons offer a full
service which includes acrylic nails, gel nails, hybrid nails, facials, spray-tanning, eyelash extensions,
massage services & more. Tammy Taylor Nails also retail products in the salons from the Tammy Taylor
care lines as well as a skincare range that is exclusive to Tammy Taylor as a nail salon franchise group.
The company’s market research has shown that there is sufficient room for the nail and beauty industry
in South Africa. The experience, knowledge, and skills of the management team and employees are
the foundation of the envisioned growth. The management style is flexible, progressive and energetic
D E TA I L S
Business Name:
Tammy Taylor Nails SA Franchising
Pty Ltd t/a Tammy Taylor Nails
Contact:
Franchising Division
Email Address:
franchising@tammytaylornails.co.za
The members are responsible to fulfil the company’s
mission and legal accountability for its operations. The
management will further monitor and evaluate the
organisation’s operational performance and financial
results and ensure the availability of adequate human
resources and efficient management.
The purpose of this business plan is to provide the
financier with the necessary information to evaluate the
start-up of a Tammy Taylor Nails Franchise. Additionally,
it will serve as a guide to the management by highlighting
the goals against which future performance can be
measured.
Tammy Taylor as a brand have many unique factors that
set us apart from all other brands in the industry. The
main and most relevant fact is that we are a PRODUCT
and not a concept.
Phone:
010 591 1034
Industry:
Beauty, Cosmetics
Number of HO Employees:
12
Registration Number:
2014/269894/07
Amount of Funding Needed:
R1,105,000,00
Our salons are luxurious and have been designed to
service the higher LSM woman (and man). The extra
special touches that ensure your clients are getting an
experience they will crave on a monthly basis is what
sets our salon designs apart from any other salon in the
country.
We offer a full turnkey solution from the moment
you purchase your franchise license. Once you have
purchased your license, our location specialists will
ensure you are placed in the perfect location. Our
Shopfitting & Design team will work closely with you to
design and bring to life your dream salon. Our Training
& Recruitment division will ensure you start off with
qualified staff who have been trained to not only build
amazing nails but also how to receive your clients, how
to create and manage targets and so much more. Our
inhouse branding specialists will ensure that you and
your team always look your best. Our PR & Marketing
team will operate at the highest level to ensure brand
awareness and keep our brand at the top at all times.
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1.4 KEYS TO SUCCESS
For the business to operate successfully and sustainably, several specific ingredients are
needed. We have identified the following key aspects that will ensure the long-term survival
of the company, which include but are not limited to:
1.2 OBJECTIVES
The company has identified the following critical success factors to support the goals and objectives
in a sustainable way:
• Salons must be owner run and managed daily on the highest level
• Consistent high-quality care and service
• Provide a clean, upscale, luxurious, and enjoyable environment conducive to giving professional
trusting service
• Credibility, integrity, and 100% dedication to uphold high levels of customer service
• Implement a solid marketing strategy and programmes that will aim, at its foundation, to educate
and attract the target market segments
• Position the Tammy Taylor Nails products and services as a first choice in the market
• We also have an option for a Franchisee to recruit a Tammy Taylor trained & certified Salon Manager
1.3 VALUES
The organisation will operate by the following key values:
• The company deliver outstanding exclusive products and unsurpassed services, that together deliver
premium quality to their customers
• They uphold the highest standard of integrity in all their actions
• They value their people encourage their development and reward their performance
The vision of Tammy Taylor Nails is to be the market leader in Africa, the Middle East, New Zealand,
Mauritius and Australia providing exceptional nail, beauty training, services and products that are
simple, fast, extraordinary and aimed at the high LSM. In order to achieve the vision, the company
must ensure that it keeps ahead of the competition and up to date with the latest innovations in all
related products and services. This is done flawlessly by our USA counterparts in the constant evolving,
innovating & bettering of the products, colours & services.
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R E L AT I O N S H I P S
Develop fruitful
1 . O W N E R R U N SALONS
• Salons operated by the owners are more successful
as the customer is being received by a relatable
person and quality is a sure thing when the owner
is at the wheel
• Staff turnover is substantially lower as the staff are
being managed daily and not being left to their
own devices to create an irreversible culture of bad
service
• The client being received and handled by the owner
has more confidence in the salon and therefore it
creates a solid customer loyalty
• As you are managing your salon on a daily basis,
your staff will be led and motivated, this will always
result in a higher turnover, higher success rate and
your salon being fully booked sooner
• We also have an option for a Franchisee to recruit
a Tammy Taylor trained & certified Salon Manager
2. FINANCE:
• Implement and follow a financial model that is
rooted in industry facts, not optimism
• Costs have been based on the company’s
knowledge and research of the industry; validated
against competitors’ cost averages, and analyses
against local market standards
• Ensure the design of a cushioned financial plan
that provides adequate capitalisation
3 . R E L AT I O N S H I P S :
• Develop fruitful relationships with third-party
service providers and strategic alliances to
facilitate the exchange of information and
establish a formal supplier and key stakeholder
database
• Focus on long-term relationships; develop
excellent supplier relations, strategic partnerships
with key stakeholders, and long-standing
relationships with target market customers to
build brand awareness and ensure the long-term
survival of the company
• Maintain existing strategic alliances and establish
relationships with suppliers, and industry
stakeholders
Through the implementation of these plans, the
company will be able to draw seasoned and elite
professionals and build a committed workforce.
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2 . C O M PA N Y OV E R V I E W
2.1 COMPANY OWNERSHIP
Tammy Taylor Nails has one shareholder; Melany Juanita Viljoen, who is also a hands-on
Managing Director of the business.
Name:ID number:Shareholding %
Melany Juanita Viljoen
860408 0028 088
100%
2.2 COMPANY HISTORY
Tammy Taylor Nails is an existing, well-established business concept with a brilliant and
recognisable Trademark and history of almost four decades in the international nail industry.
Melany Viljoen, a young South African entrepreneur, discovered this jewel when she was searching
for alternative nail techniques and products in 2015. Nail care has been a passion of hers from a
young age.
After Mel familiarized herself with the Tammy Taylor techniques and applied those with Tammy
Taylor products, she knew that this is a business concept with the right attributes to roll out in
South Africa through a Franchise network. Mel secured the sole distribution rights, along with exclusive
brand usage, for Africa during a visit in March 2016 to Tammy Taylor Head Office in the USA.
Nail care has been a
P A S S I O N
of hers from a young age.
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3. PRODUCTS AND SERVICES
3.1 DESCRIPTION
The new generation full-service Tammy Taylor salons provide the following products and services:
(dependent on salon variant):
•
•
•
•
Exclusive Acrylic & Gel Nail Services | Tammy Taylor Retail Products
Optiphi Peels & Facials | Retail Items
Dermalogica Retail Items
Massages | Waxing | Laser Treatments | Eyelash Extensions
3 . 2 O P E R AT I O N S T R AT E GY
Operations Strategy will deal with how the company will expand and also the operations strategy in
getting your salon up and running:
LICENSE PURCHASE
Location Sourcing & Lease
Shopfitting
Training & Recruitment
Stock
C O R P O R AT E S T R AT E GY :
•
•
•
•
Align all departments towards the same corporate goal
Weekly interaction amongst individual departments and team leaders
Identify key issues within each department
Provide solutions to key issues with the involvement of external departments
C US TO M E R - D R I V E N S T R AT E G I E S :
•
•
•
•
•
•
•
•
Interaction with existing clients to identify problems with the salon and services
On-going market research on market trends and competitors
Mystery Shopper Program
Public Education & Marketing Campaigns with our American Branding team every quarter
Social Media driven campaigns
In-Store Activations with our product and service partners
Customer Experiences
Consumer environment evaluation to be conducted on a bi-annual basis
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A LW A Y S C O N S I D E R T H E N E E D S
OF THE CUSTOMERS AND
I N T E G R AT E I N TO
the service
DEVELOPING CORE COMPETENCIES:
•
•
•
•
•
•
Regular staff training conducted by experienced employees
Formal employee training, especially with newly employed persons
Innovation
Identifying quality of service and information technology systems
Provide excellent customer service
The company must be flexible in accordance with customer preferences
COMPETITIVE PRIORITIES:
•
•
•
Evaluating operational costs
Evaluating the quality of the service
Measure the time it takes to deliver the service
P R O D U C T A N D S E R V I C E D E V E L O P M E N T:
•
•
•
•
Find value-adding services to be attached to the base service
The company must be the leader in the innovation in the market
Improve on innovations that appear on the market
Always consider the needs of the customers and integrate into the service
3.3 KEY FINANCIAL OBJECTIVES
•
•
To achieve a turnover of R2.1 million for the first year as per budget
Increase turnover to R2.5 million by the end of the following year
3 . 4 LO C AT I O N
The company is situated in 291 Sprite
Avenue, Pretoria. The company is inside
the office park, Menlyn Woods Office
Park, Block D.
The neighbourhood mainly contains
other businesses. There is a hospital
situated close to the company, Life
Faerie Glen Hospital.
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SA L O N L O CAT I O N R E Q U I R E M E N T S :
The franchisee relies on the knowledge
and experience of the Franchisor, Tammy
Taylor Nails SA Franchising Pty Ltd. Rent
for a business premises can vary from R5
000 for a residential house with business
rights, up to R70 000 for a large shopping
centre premises.
CHOICE OF PREMISES
MAY BE INFLUENCED
BY THE FOLLOWING:
L O CAT I O N :
Shopping Centres guarantee a natural
flow of consumers, whereas a residential
premise with business right may need
more marketing to attract customers.
Ta m m y Tay l o r N a i l s
CLIENT
PREFERENCE:
Depending on the franchise area, the
target market (potential customers) may
prefer a shopping centre environment or a
more personalised environment such as a
smaller more intimate local
shopping centre.
PLANNED FUTURE
B U S I N E S S G R OW T H :
The franchisee may start off with a smaller
staff complement but has business
growth plans in place within a certain
rental agreement period which may force
the franchisee to take a larger premise
allowing for the future growth.
RUNNING COSTS:
Turnover based rental may have a
substantial influence on the running cost
of a nail salon. Your lease agreement
will be reviewed by our location team to
ensure you’re getting the best
possible deal
INSURANCE &
S E C U R I T Y:
Depending on the location of the business
premises insurance and security may
become a material factor.
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S E T- U P & I N T E R I O R :
Set-up and interior must comply with the standards set by the franchisor and the premises should
be accommodating to this. Tammy Taylor Nails has a dedicated shopfitting and design division,
American Shop Fitters. Tammy Taylor Nails have taken the excessive shopfitting mark-ups out of
the equation by introducing a project managing service with American Shopfitters. The company’s
project manager will do the initial site visit, take photographs and measurements and attain the
layout/plans from the centre management or landlord. These plans will then be submitted to the
design team for renditions. Once final changes have been made by the franchisee, the renditions
get approved by Tammy Taylor Nails head office.
t h e f i v e - s t a r l e v e l s t h a t T a m m y T a y l o r N a i l’ s c u s t o m e r s e x p e c t
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PRICING NAILS:
The total average retail price for a combination of full sets of nails and fills is R450. The total average
price is based on the average price for full set of nails (R550) and fills (R300). The company arrived at
this price by factoring the cost of the nail sets, which has a total cost of R27,47 per set
(exclusive of art)
The average number of full sets of nails per technician minimum is three per day. The average number
of fills per technician per day is two. The highest number of clients done in one day, per nail tech, is
14 clients. Tammy herself holds the world record for the fastest set of sculptured nails, done in less
than 20 minutes.
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R E TA I L I T E M S :
The total average price for the exclusive Tammy Taylor
retail items is R300. The average cost of the items is
R150. The average margin will be set at 50%
WO R K I N G D A Y S P E R M O N T H :
Pricing
There will be 26 weekday workdays in the month and two
weekend workdays in the month. Therefore, there will be
a total of 26 workdays per month.
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4. THE MARKET
4.1 SOUTH AFRICAN ECONOMY
Economic growth is set to strengthen in 2018-19, driven by increased business and consumer
confidence. A rise in confidence in early 2018 and the recent upward revision of national accounts
for the period 2015 to 2017 suggest that the country is recovering from a difficult 2015 and 2016,
which marked the end of the super-commodity cycle and severe drought. Gross domestic product
(GDP) growth is projected to gather pace, increasing from 1.3% in 2017 to 1.4% in 2018, 1.8% in 2019,
and 1.9% in 2020. However, this would be well below the National Development Plan’s average
annual growth target of 5.4% per annum over the period up to 2030. This in turn would contribute
to a broader rebound among commodity exporters, emerging markets and developing economies,
and overall global growth. Private consumption will expand, albeit at a slightly lower rate than in
2017 due to tax increases. Employment trends remain a concern. Although it provides little space
for fiscal stimulus, the 2018 Budget Review’s reaffirmation of the government’s commitment to
debt stabilization objectives is expected to generate more private investment.
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4.2 NAIL AND BEAUTY INDUSTRY IN SOUTH AFRICA
4.2.1.
GLOBAL NAIL INDUSTRY
Market research analysts at Technavio predict that the global nail care market will grow steadily at
a CAGR of around 4% by 2021. This market research analysis identifies the premiumization of good
quality cosmetic products as one of the primary growth factors for this market. There is a growing
preference for good quality nail products that do not harm their health, less toxic and are longlasting. The customers opt for good quality and well-positioned products in the market and are
willing to pay more amount of money for quality products. Premium products cost high due to the
good quality of products. The willingness among customers to pay for premium products will inspire
vendors to upgrade their product portfolio.
The market research report identifies the evolving distribution channel formats and the use of
augmented reality to enhance shopping experience as one of the key trends behind the growth of this
market. With the increase in mobile and internet users, the companies have evolved their distribution
channels from the traditional channels to the trending channels of the mobile application. Mobile
applications are convenient to use and provide various features. There are several cosmetic shopping
applications that provide products from numerous brands.
COMPETITIVE LANDSCAPE:
Due to the vast exclusivity & 35+ year development by Tammy Taylor on her product, Tammy
Taylor SA has no competitors. Our acrylics are pigmented and triple sifted, our gels are the highest
pigmented gels in the world. No chipping, high shine and backed by our non-lift guarantee.
Tammy’s educated approach to nails sets the brand apart from all the rest
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4.2.2. SOUTH AFRICAN NAIL
I N D U S T R Y
• Market size: R27.35 billion for all cosmetics and personal
care together
• Licensing: No government licensing; many nail schools but
no standard curriculum
• Trending nail styles: Gel-polish in solid colours; chrome
looks, sculptured acrylic
• Salon types: All kinds, including full-service, nail only, and
home-based
• Popular products: OPI, Essie, Morgan Taylor, CND, LCN,
Gelish, NSI, Calgel, Star Nail, Bio Sculpture Gel
• Until Tammy Taylor, nail bars & salons have only been
concepts. Tammy Taylor is a PRODUCT & an experience
constantly developing with our core focus being on
hygiene & non damage to the natural nail
Over the last two years the South African cosmetics industry has experienced an estimated
compound annual growth rate of 4.6%. The value of the sector, which includes the manufacture
of cosmetics, perfumes and other personal care preparations, is estimated to have grown to
R27.35bn at retail level and R19.69bn at manufacturing level. In the formal cosmetics sector there
are approximately 250 companies that employ more than 60,000 people. Though not as dominant
as hair or skin care, South Africa’s nail industry has made marked strides. Nadia Erasmus, finalist
for South Africa’s Nail Technician of the Year in 2016 (given by trade association Professional
Beauty) in Cape Town, comments on some developments. “South Africa has come a long way in
the past few years when it comes to the nail industry. There is a big change in the market for nails;
getting your nails done is not spoiling yourself anymore. It has become a part of every woman’s
budget,” she says. The salon- going population is truly diverse. “Everyone and anyone get their
nails done here in South Africa: women, men, young girls and boys. There are salons catering
to your more average income earners and then there are those in upmarket business areas that
cater to career and business women and men, and even celebrities,” says van Rensburg. Men have
become a lot more open and no longer have this stereotyped view, or feel embarrassed to have
their nails, hands, and feet done. In fact, they feel it is a very important part of good grooming and
looking good and how they are perceived as a man.” Basic manicures start at R180 and high-end
spa manicures top out at about R750. Pedicures range from R220 to R400.
NAIL TRENDS
Tammy Taylor is constantly developing her product line. She recently manufactured & launched our
SCULPT product. This is a hybrid gel that transforms into acrylic when it is cured. It is odourless &
hypo-allergenic. The long wear & absolute nail strength is the most attractive thing about this product.
Tammy also release new colours EVERY WEEK & Limited Editions every month. In South Africa, Tammy
Taylor is the trend setter in all things nails & beauty. Being a USA product, we are always ahead of the
local trends by season & design
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4 . 3 TA RG E T M A R K E T
Tammy Taylor Nails target the affluent higher LSM target market, because the company offers highend services, retail products & experiences. Tammy Taylor Nails (new generations salons) have only
trained & certified technicians that perform the services, providing a premium and high quality service.
The age segment that the company will be targeting will be women between the ages of 18 to 44. Most
bookings will be received from woman between the ages of 25 and 40 and is thus the company’s main
target market to achieve a higher return on investment with the company’s marketing budget.
Tammy Taylor Nails has done research from Social Media Insights provide the following statistics about
the interested market in the nail industry:
A G E % AGE
18 - 24
20%
25 - 34
40%
35 - 44
32%
Other
8%
The above-mentioned statistics give a clear indication that there is a greater interest in nails between
the ages of 18 to 44. This is a wide market to target. However, the client base dominates between
the ages of 25 to 40, as they are more likely to earn a stable income. It is important to keep the age
group of 18 to 24 interested as they will be future customers.
4.4 COMPETITORS
Tammy Taylor Nails has by perception only, a direct competitor that will apply competitive pressure
on the company. However, it is vital to note that our said competitors are concepts who all use similar
products & we are an exclusive superior product. The primary competitors identified by the company
include the following:
•
Sorbet •
Soho
4 . 5 C O M P E T I TO R A N A LYS I S
Sorbet: This is one of the most popular nail and body salons in South Africa. They have a number of
franchises spread across the country. Apart from nails, the company also provides waxing, massage,
eyelash, and facial services. The company provides their own range of retail products, as well as
partner retail products, including Dermalogica, Environ, Redken, Rapid Lash and La Tweez.
Soho: This company has salons located in both Johannesburg and Cape Town. Soho target both men
and women clients, offering manicure, pedicure, nail, beauty, and waxing services. It has only two
salons operating in South Africa; one in Cape Town and one in Sandton. However, a glaring weakness
is that the salons only sell Soho retail products. This immediately places Tammy Taylor Nails in a
competitive advantage. Clients going into Soho do not get a variety of options to maintain their nail
or body service. Another weakness is that there is no booking policy, only for parties of four or more.
This may put clients at a disadvantage, due to the fact that they might have to wait for long periods
of time until another technician or consultant is available
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• Who are the competitors, what will they
offer and what is their unique selling
point? This will identify the areas the
team needs to compete in and provide an
opportunity for differentiating
• Establishing what matters to the
customers and revising the marketing
strategy accordingly
• It’s essential to offer customers good
reasons to use the company’s products
and services rather than an opponents’
offering. The USP will meet the
expectations of the customers, and it will
be communicated
• Continuously update the image with
the design of the business cards,
stationery, and the website and email
correspondence to reflect the USP
• The company will provide better customer
service by being more responsive to their
needs and expectations
• Selling into a more significant number of
markets can increase the customer base
and spread the risk
• The company will keep up with
developments in the sector, following
consumer and industry trends, invest in
new technology and - crucially - have a
clear idea of where the company will be in
one, three- and five-years’ time
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Customer Service
The company will as part of its continuous
market research; employ the following
strategies to combat competitive pressures:
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4 . 6 COMPETITIVE
ADVANTAGE
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5. MILESTONES
1: LUCRATIVE BUSINESS MODEL
A business model should tell the story of how their entire business works. Their story should focus
on three core questions:
• Who is their client?
• What does their client value?
• How does the company deliver that value at the right cost?
All of those questions add up to creating a profitable business model. Tammy Taylor Nails has set
aside some time to write a full-fledged business model formally. It’s the first and most crucial business
milestone that their business must reach.
2: FIRST REPEAT CLIENT
Their next business milestone involves the exchange of currency. Landing their first repeat client
(sometimes called an anchor client) will give them the confidence in their business and the motivation
they’ll need to keep going. The key word here is “repeat.” They may earn that first repeat client
through personal recommendations, an existing contact or cold calling. Landing their second repeat
client will take understanding precisely who they are and where they spend their time – both online
and off.
3: REALISTIC MARKETING STRATEGY
Marketing is the lifeblood of our business. Owners sitting around waiting for clients to call are destined
to fail. Smart marketing can actively bring in new business instead of reacting. Our partnerships with
Brand Cartel & others like our naming rights sponsorship for Mrs SA together with our firmly growing
social media following gives us a great marketing edge
4: TRAINING & RECRUITMENT
Our Recruitment Program ensures that you the franchisee does not face the hassle of sourcing,
training & recruiting staff. The Company sources unemployed young South African men & women &
invest heavily in their education in the art of sculpting. We also give them Operations & Sales Training
together with Customer Service training to ensure they perform at their level best. This exciting
milestone will grow their business by leaps and bounds. Instead of stumbling through it, and possibly
wasting their time, energy and money with the wrong people, this will enable to set up the company’s
employees for success
5: GAIN INDUSTRY AUTHORITY
At this point, you’re making money, and have a great team in place. Your next milestone is to become
an authority in the industry in your area / location. As an owner, it is your job to grow your business &
manage your staff correctly daily. Our client does not take flyers, so we always suggest as an owner
that you go out with gift cards for a FREE French Fade & go out & hand pick your first 50 clients.
This will grow your business faster than flyers & also give your nail technicians an opportunity to gain
clients. 50 free sets will be more affordable than printing a few thousand flyers. If these first 50 clients
are treated like queens, they will inevitably return, remain loyal & bring at least 5 of their friends /
family with them.
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6 . S WO T A N A LY S I S
6.1
STRENGTHS
These are positive, internal factors that affect how your business performs. Although they may be
difficult to change, they should be within management’s control:
•
•
•
•
•
•
•
Strong, established relationships with suppliers, advisors, and customers
Having local knowledge of the target markets’ behavioural trends and requirements
Industry and cultural insight based on practical experience
Complacent competitors will give Tammy Taylor Nails the advantage of gaining market share
A clear vision of the market need
Lower operating costs and more control over the business through owner operated company
Ability to implement sound quality control procedures and internal management procedures and
risk mitigation policies
6.2
WEAKNESSES
These are negative, internal factors that affect how the business performs. Although they may be
difficult to change, they should be within management’s control:
• Rapid growth may present operational challenges, like growing too fast too quickly
• Salons not owner run tend to be weaker performers. This can be resolved by recruiting an
experienced family member or manager you trust and incentivise well
• The need for substantial external funding, thereby increasing the company’s debt and risk
6.3
OPPORTUNITIES
These are external factors that could positively affect the business. They may be mostly out of
management’s control, but can be leveraged:
• Growing market
• Boost businesses public image
• New Technology
6.4
THREATS
These are external factors that could negatively affect the business. They may be mostly out of
management’s control, but can be managed by creating a contingency plan to minimise the damage:
•
•
•
•
Local and international economy
Political effects
Legislative effects
Challenges that prevents South Africa from remaining competitive that includes factors such as
high overhead costs, skills shortages, poor labour relations, political- and economic unrest.
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7 . SA L E S & M A R K E T I N G S T R AT E G Y
7.1
SALES & OPERATIONS
The management will explore new and innovative ways to increase online exposure by advertising
on partner websites, search engines, business directories and online newsletters. The company will
use some relationships to promote the business. The company’s product and service portfolio are
carefully positioned. The key message that the company wishes to convey to its target market is
that as a company, it is focused on understanding its customers’ unique needs and meeting those
needs through setting the correct expectations. Systems are critical to being able to provide such
a product and service and attract ongoing clientele. The staff needs to be accustomed to these
systems and receive continuous training. This means that the entire process will be managed more
efficiently, and more consistent results will be produced.
Y E A R 1
SALESR2 121 600
Cost of Sales
R857 232
GROSS PROFIT
Gross Margin %
R1 264 368
59.6%
7.2
MARKETING PLAN
The marketing materials are used to promote the business to current and prospective customers.
Among others, they include the website, print brochures, business cards, and catalogues. The
promotions are one of the most important sections of the marketing plan and about the details how
to reach new customers. There are numerous promotional tactics, such as ads, trade show marketing,
press releases, online advertising, and event marketing to be chosen from. You will find attached our
current marketing strategy from Brand Cartel to give you an idea of how we plan to penetrate the
market. These days most customers will search online to find and review new products and services
to purchase. As such, having the right online marketing strategy can help to secure new customers
and gain competitive advantage.
The four key components to your online marketing strategy are as follows:
1. Keyword Strategy: identify what keywords are relevant to optimize your website / social media
pages
2. Search Engine Optimization Strategy: document updates to make the website shows up more
prominently for the top keywords
3. Paid Online Advertising Strategy: LinkedIn, Google and Facebook adverts
4. Social Media Strategy: document how to use social media websites to attract customers
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a compelling marketing programme
w i t h t h e a i m o f e s ta b l i s h i n g a
T R U S T WO R T H Y
and customer-oriented
Brand
7.3
MARKETING STRATEGY
The company’s strategy has been successfully implemented through leveraging its key stakeholder
relationships and strategic alliances to penetrate the target market. The company will be able to
build a compelling marketing programme with the aim of establishing a trustworthy and customeroriented brand. It will achieve this by drawing on its knowledge of the ‘Ideal Customer’ profile, its
local presence and product knowledge.
Tammy Taylor Nails will employ the following strategies to gain both market share and a competitive
advantage:
• Use social media channels like Facebook, Twitter, Instagram and LinkedIn, conventional
advertising channels, public relations initiatives, targeted, periodic marketing programmes,
and information about business and industry developments to create a word-of-mouth ‘buzz
• Advertise in local media, online directories and publications. Ensure that all marketing
programmes are strictly monitored to determine the return on marketing, investment, average
marketing spend, market research and other cost-benefit measures
• Keep up-to-date with the customer needs, habits and general consumer behaviour with the
aim of developing new offerings and value-added services
• Understand the target market and ensure that the correct product and service mix is available
to meet their needs
• Periodically review the company’s pricing strategy with a strong focus on the reduction of
variable costs
• Implement a formal accounting, quality control and customer relationship management
system
• Conduct customer surveys to ensure an accurate understand the ‘true needs’, changing
behaviours and criticism/feedback from the customers
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S t r at e gy
M A R K E T I N G
Tammy Taylor Nails will employ the following strategies to gain
both market share and a competitive advantage:
• Use social media channels like Facebook, Twitter,
Instagram and LinkedIn, conventional advertising channels,
public relations initiatives, targeted, periodic marketing
programmes, and information about business and industry
developments to create a word-of-mouth ‘buzz
• Advertise in local media, online directories and publications.
Ensure that all marketing programmes are strictly monitored
to determine the return on marketing, investment, average
marketing spend, market research and other cost-benefit
measures
• Keep up-to-date with the customer needs, habits and
general consumer behaviour with the aim of developing new
offerings and value-added services
• Understand the target market and ensure that the correct
product and service mix is available to meet their needs
• Periodically review the company’s pricing strategy with a
strong focus on the reduction of variable costs
• Implement a formal accounting, quality control and
customer relationship management system
• Conduct customer surveys to ensure an accurate
understand the ‘true needs’, changing behaviours and
criticism/feedback from the customers
The company’s marketing and sales programmes will include,
but will not be limited to:
• Contacting and article submissions to newspapers,
magazines, trade publications and house publications
of large companies on industry issues to provide them
with new and fresh content through the featuring of
regional information, industry information, product/service
information, etc. Such published articles may then be
included in the pre-defined communications to provide
third-party endorsements and boost credibility. Contact
information and call-to-action links will then ensure that
such enquirers’ contact details are captured for inclusion in
the sales campaigns
• The featuring of client’s testimonial display page on
the website and in the other advertising mediums to
showcase customer experiences and provide third-party
endorsements for the products and services
• Selective advertisements placed in magazines, industry
publications and industry portals will offer incentives
requiring a call to action that will drive traffic either
telephonically, to the website or even simply to contact
details capturing form
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7.4
INCREASE SALES
Tammy Taylor Nails will use the following
methods and channels to increase sales and
improve the company’s overall performance:
I N C R E A S E L E A D G E N E R AT I O N
It is the process of identifying and cultivating
potential customers to the business’s
products/services. The company plans to do
this through the following channels:
1. Trade Journal Advertising
2. Newsletter
3. Brochures (electronic and print)
4. Webpage/internet (as mentioned above)
5. Building signage
6. Business cards
7. Networking
8. Strategic alliances
9. Network marketing
10.Distributors/agents
I N C R E A S E C O N V E R S I O N R AT E
The business will increase the average % of
visitors to take a desired action that will be
an advantage to the business. The company
can increase this with:
1. Written guarantee (technical contracts)
2. Define uniqueness
3. Increase range/variety
4. Quality brochures
5. Info sheets/booklets
6. Product/pricelist
7. Team member profiles
8. Write company story
9. Display awards and certificates
10.Account applications
11. Daily/weekly costs
12.Flowchart sales process
13.Measure conversion rates
Increase the number of transactions
The company will increase number of times
their clients purchase or use their service/
product by:
1. Better services that will make customers
feel special
2. Under promise, over deliver
3. Streamline the company’s service
4. Deliver consistently and reliably
5. Keeping in regular contact with clients
6. Inform clients of entire range of services
B U S I N E S S
7. Increase the company’s range
8. Offer service contracts
9. Store client’s vital information
10.Sending out of newsletters
11. Establishing and maintaining an organised
database
12.Keep good data on clients
13.Build and maintain relationships
14.Know client’s names
I N C R E A S E T H E AV E R A G E R A N D
SA L E
The company will increase their income by:
1. Price increases
2. Create package deals
3. Upsell diamond nail inserts
4. Create bulk buy deals
5. Make sure clients know full product list
and services
6. Set an average RRR sale goal
7. Measure the average RRR sale
8. Increase perceived value
9. Educate on value, not price
INCREASE PROFIT MARGINS
The company will increase the amount of
revenue that exceeds sales by:
1. Increasing margins/prices
2. Increasing the sales of larger margin tests
3. No discounting
4. Keeping accurate database
5. Striving to be efficient and productive, as
well as focusing on time management
6. Reducing duplication
7. Know the actual costs
8. Work costs as % of sales
9. Set monthly expenditure budgets
10.Only allow authorised POs
11. Reduce costs by 10%
12.Decrease range
13.Lower RR tied up in inventory
14.Buy direct
15.Charge for finance facility
16.Invest in technology
17. Systemise the routine, humanise the
exception
18.Automate as much as possible
19.Sell obsolete equipment and machinery
20.Only buy what the company needs
21.Use a company credit card for points and
interest free period
22.Keep overheads to a minimum
23.Measure everything
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8 . R I S K & R I S K M I T I G AT I O N
The company identified four main categories that will be monitored.
These include:
1. Economic: financial loss
2. Psychological: poor company image
3. Performance: poor service delivery, poor management performance
4. Physical: staff, equipment problems
Some of the causes of loss would be poor planning, poor controls, inadequate management, individual
error or the domino effect. The company will be able to identify and address any weaknesses and
find viable solutions. A key gage would be from customers, assessment and rectifying problem areas.
The process would entail–interviews (i.e. rate our products and service follow ups), collection of
information, staff assessments, examination of information, analyse the data and from there draw up
a risk analysis report and follow through on implementation areas.
Risk mitigation implementations will be executed to mitigation actions and would include progress
monitoring, tracking identified risks, identifying new risks, and evaluating risk process effectiveness.
Solutions
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8.1
PEOPLE & RISK
Prudent financial strategy will enable management to make best use of limited time and resources by
concentrating on areas that will provide the most benefit and make the greatest impact on business.
The following shall be observed:
• A successful trade-off between risk and return
• Creating sustainable competitive advantage as the business grows
• Taking a holistic approach to assessing the profitability levels of customers and products via
category management approach
• Recognising that strategic emphasis, management styles and critical success factors will change
as the business grows and matures
• Managing one’s investment expectations to prevent unpleasant surprises
• Analysing of the failure of many information systems to support business needs
• Use all their sources effectively
• Always being informed about the financial position of the business
• Keeping a check on sales, creditors age analysis should it apply
• Being capable of making informed decisions
• Easily identifying problem areas
8.2
MANAGING THE MONEY
Accounting for the flow of money in the business is of utmost importance and the company therefore
realises this forms the core of the management information system.
Franchisees must have accounting programs installed / plugged into our App/POS to keep accurate
tabs on:
• Always being informed about the financial position of the business
• Keeping a check on sales & staff performance
• Being capable of making informed decisions
• Easily identifying problem areas
• Determining and controlling fluctuations
use all their
SOURCES
E f f e c t i v e ly
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9. MANAGEMENT SUMMARY
FRANCHISEE OR SALON MANAGER
Technicians x 2
9.2
1 x Soak-Off Technician/ 1x Receptionist(Host) / 1x Tea Lady
MANAGEMENT
The company is owned by Melany Juanita Viljoen, who has years of experience in this industry. The
management consist of Melany Juanita Viljoen, she is the operations manager focussed on business
and people efficiency and people skills development and motivation.
The shareholder of Tammy Taylor Nails and the management will be responsible for:
• Provide oversight and direction to the employees in the operating unit in accordance with the
organization’s policies and procedures
• Coach, mentor and develop staff, including overseeing new employee and providing career
development planning and opportunities
• Empower employees to take responsibility for their jobs and goals. Delegate responsibility and
expect accountability and regular feedback
• Foster a spirit of teamwork and unity among department members that allows for disagreement
over ideas, conflict and expeditious conflict resolution, and the appreciation of diversity as well as
cohesiveness, supportiveness, and working effectively together to enable each employee and the
department to succeed
• Consciously create a workplace culture that is consistent with the overall organisations and that
emphasizes the identified mission, vision, guiding principles, and values of the organization
• Lead employees using a performance management and development process that provides an
overall context and framework to encourage employee contribution and includes goal setting,
feedback, and performance development planning
• Lead employees to meet the organization’s expectations for productivity, quality, and goal
accomplishment
• Provide effective performance feedback through employee recognition, rewards, and disciplinary
action, with the assistance of Recruitment, when necessary
• Maintain transparent communication. Appropriately communicate organization information
through department meetings, one-on-one meetings, and appropriate email, IM, and regular
interpersonal communication
MANAGEMENT STYLE:
By adopting the following principles, the organisation will learn to deploy and improve its culture in a
manner that will increase the odds of financial and operational success.
• Work with and within your current cultural situations
• Change behaviours, and mind-sets will follow
• Focus on a critical few behaviours
• Deploy your authentic informal leaders
• Don’t let your formal leaders off the hook
• Link behaviours to business objectives
• Demonstrate impact quickly
• Use cross-organisational methods to go viral
• Align programmatic efforts with behaviours
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10.
M O N T H LY I N C O M E P R O J E C T I O N S
These projections are based on the 2 Nail Technician, 1 Soak-Off Girl CONSERVATIVELY
NA I L T R E AT M E N T S O N LY
Average Number
WorkingDays Per
Month
Employee
Position
Average Number of
treatments PerDay
Average Price of
Nail Treatments
Nail Tech 1
4
R450.00
26
R46,800.00
Nail Tech 2
4
R450.00
26
R46,800.00
Soak-Off Girl
4
R100.00
26
R10,400.00
T O TA L T U R N O V E R O N NA I L S O N LY P E R M O N T H
Total Sales Per
Month Per Tech
R104,000
T O TA L T U R N O V E R O N NA I L S O N LY P E R M O N T H
Retail Sales
Daily Target
Based on 4 Employees selling for
26 Days Per Month
4 x R500 per day = R2000
Projected Monthly Turnover on
Dermalogica and Optiphi Retail if
targets are driven & met
R52,000.00 per month
Tammy Taylor Retail Items
Daily Target = R800.00
PROJECTED MONTHLY TURNOVER ON CORE
SERVICES, ADDITIONAL SERVICES & RETAIL
B U S I N E S S
R20,800.00 per month
R176 800.00
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11.
M O N T H LY E X P E N S E P R O J E C T I O N S
EXPENSE
PROJECTED
COST
RENT & UTILITIES
R16,000
BASIC SALARIES
R22,000
COMMISSIONS
R7,360
STOCK
R10,000
SOCIAL MEDIA MARKETING BUDGET
R3,000
REFRESHMENTS
R3,000
INSURANCE
R1,400
BANK CHARGES
R600
TELEPHONE & WIFI
R1,200
DESCRIPTION
BASED ON AN AVERAGE SIZE STORE OF 40SQM
2 NAIL TECHNICIANS/1 SOAK-OFF GIRL/
1 RECEPTIONIST/1 TEA GIRL
BASED ON A 10% COMMISSION ON
SALES STRUCTURE. THIS CAN DIFFER
MONTHLY STOCK ORDER FORNAILS, WAXING,
LASHES,SPRAY TANNING & HOLLYWOOD FACIALS
BASED ON CURRENT AVERAGE EFFECTIVE
SPEND
CHAMPAGNE, JUICE, SMALL TREATS(IT IS THE
EXPERIENCE YOU ARE SELLING SO THIS EXPENSE IS VITAL)
BASED ON THE CURRENT AVERAGESPEND PER
SALON
BASED ON AN AVERAGE – MAY
VARY DEPENDING ON WHO YOU BANKWITH
BASED ON CURRENT AVERAGE SPEND PER
SALON
R500
BASIC OFFICE EXPENSES. THIS AMOUNT IS
EXAGGERATED. WE SUGGEST YOU KEEP THIS
EXPENSE MONITORED
R2,000
EDUCATION IS KEY WITH OUR BRAND. PLEASE
ENSURE YOUR STAFF TRAINING IS ALWAYS UP
TO DATE. THIS IS PROVISION
ROYALTIES @ 7%
R12,376
MONTHLY TTN ROYALTIES
TOTAL MONTHLY
EXPENSES
R71 436
OFFICE EXPENSES
STAFF MONTHLY TRAINING
PROVISION
PROJECTED MONTHLY
TURNOVER
PROJECTED MONTHLY
EXPENSES
PROJECTED MONTHLY
PROFIT
R176 800
R79 436
R97 364
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FRANCHISE LICENCE FEE
LOCATION SOURCING & LEASE NEGOTIATION
SERVICE
R300 000.00
R25 000.00
DESIGN TEAM, SHOPFITTING, RENDITIONS AND 3D
DESIGN
DETAIL LAYOUTS DESIGN COUNCIL SUBMISSIONS
BASED ON 50SQM
R400 000.00 TO R849 000.00
PLEASE NOTE THIS COST MAY CHANGE BASED ON
THE SIZE OF THE SHOP AS WELL AS FITTINGS AND
FURNITURE CHOSEN
PROJECT MANAGEMENT
R75 000.00
UNIFORMS (5 EMPLOYEES) & BRANDED TOWELS
R10 000.00
STOCK & EQUIPMENT OPENING ORDER BASED ON 2
MANI AND 1 PEDI STATIONS (ALL PRIZMA COLOURS,
MAJORITY GEL COLOURS, LIMITED EDITION
COLOURS & EQUIPMENT & TOOLS
R150 000.00
TRAINING & RECRUITMENT (3 TECHS & 1 SOAK-OFF
GIRL) – OWNER IS TRAINED AT NO CHARGE
R70 000.00
OPTIPHI DERMALOGICA AND TAMMY TAYLOR &
RETAIL OPENING ORDER
R75 000.00
TOTA L A MO U N T R E Q U IR E D FOR
STA RT U P (E XC L . VAT ):
R1 105 000.00
12.
DISCLAIMER
Information, data and drawings embodied in this business plan are strictly confidential and are supplied
on the understanding that they will be held confidentially and not be disclosed to third parties without
the prior written consent of Tammy Taylor Nails. Tammy Taylor SA or any of its agents, contractors,
member companies, assignees or employees, do not accept liability of any nature whatsoever for any
loss sustained by any person which makes use of the information contained herein and anyone who
uses it, does so entirely at his or her own risk.
FOCUSSED ON
B USINESS, PEOPLE EFFICIENCY
PEOPLE SKILLS DEVELOPMENT AND
M o t i vat i o n
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B E
T H E
Q U E E N
EMAIL ADDRESS:
FRANCHISING@TAMMYTAYLORNAILS.CO.ZA
PHONE:
010 591 1034
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