Beauty by Design - indianola hs business

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Beauty by Design
Advertising Campaign
Introduction to Marketing
Indianola High School
1304 E. First Street
Indianola, IA 50125
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Abbi Sudbrock & Madison Koonce
Table of Contents
Executive Summary ...................................................................................................... 1
Description................................................................................................................. 2-3
Objectives of Campaign .............................................................................................. 4
Identification of Target Markets
Primary Markets................................................................................................... 4
Secondary Markets ............................................................................................. 5
Advertising Media necessary for Campaign
Twitter ............................................................................................................... 5-6
Direct Mail............................................................................................................ 6
Radio ................................................................................................................ 6-7
Indianola Community School ........................................................................ 7-8
Drawings .............................................................................................................. 8
Advertising Schedule.................................................................................................... 9
Promotion Schedule ................................................................................................... 10
Budget.......................................................................................................................... 11
Statement of Benefits to the Client/Advertiser .......................................................... 12
Bibliography ................................................................................................................ 13
I. EXECUTIVE SUMMARY
About Beauty by Design
Beauty by Design is a local home salon on the south side of Indianola, Iowa. The salon is known
for their high quality and low prices of haircuts and services. The salon offers a variety of
services from haircuts, to body waxing and also sell many different types of hair products.
Beauty by Design’s goal is to provide high quality services while maintaining low prices.
Campaign Objective
A) Primary Objectives
 Increase Beauty by Design’s revenue by 5%
 Increase returning clientele by 75 people
 Increase each stylist’s revenue by 3%
 Increase stylist knowledge of trends
Target Markets
A) Primary Target Market
 Women
 Ages 16-50
 Earns average household income
 Individuals who enjoy being pampered
 Individuals who care about their appearance
 People in the Indianola surrounding area
B) Secondary Target Market
 Men
 Ages 25-40
 Earns average household income
 Individuals who enjoy a clean appearance
 Individuals who look for a quick cut
 People in Indianola surrounding area
Forms of Advertising:
We will advertise Beauty by Design through many different sources. These sources include
Twitter, Facebook, Radio, and Indianola Community School District. We will also incorporate
many different drawings through social media and at the salon.
We will also be creating many different holiday specials in order to bring in more customers.
Such as Valentine’s Day special and also a Christmas special, the customers who choose to
participate in these contests will have the chance to win different products or gifts.
Budget
Our budget is rather low, but we are incorporating many different forms of advertisement into
it. The forms of advertisement that will cost are the radio ads, and support the school. Setting
up a Twitter account is free, and so is continuing to run a Facebook page. Keeping our cost
low allows Beauty by Design to make a higher profit with low cost.
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Beauty by Design
II. DESCRIPTION
Description of Business:
Beauty by Design is a locally-owned hair salon in Indianola, Iowa.
They offer many different services and products, those of which include;
highlights, hair colors, haircuts, and body waxing .They also offer a wide
range of beauty products in addition to the salon services. Paul Mitchell,
Redken, Bed Head, Big Sexy Hair, Kenra, and Scruples are some of the
brands they sell.
Indianola is located about 10 miles south of Iowa’s capital, Des Moines. Indianola has a fast
growing population of 14,782. It has a very family friendly environment with cost friendly
events. The average income is $52,694.
The salon offers many different products, including; hair services, body waxing,
products, and a select amount of clothing and accessories. The salon is located in Indianola,
at 500 S. Jefferson Way, at the south end of Indianola. The salon owner receives her products,
by ordering from sales representatives, and ordering name brand products from catalogs.
Consumers are able to purchase these products in the salon, and set up their appointments.
The salon offers different promotions including; a punch card, buy ten haircuts get one free,
select products have occasional sales, such as buy one get one half off, and the salon
supports Indianola Athletics, the company always sponsors an athlete for homecoming, and
regularly buys from fundraisers.
About the Owner:
Beauty by Design was started in 1994, and is celebrating 20
of being in business this year. The owner, Sarah Breeden,
decided to start her own business because during her
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“Our goal is to incorporate a
relaxing environment into our salon
while maintaining low prices with
high quality products”
-Sarah Breeden, Owner
Beauty by Design
schooling she got to meet with other salon owners which inspired her to open her own one
day. Prior to owning her own salon, she worked for two different salons in town and then
decided it was time to open one of her own. One of Sarah’s long term goals is to have more
stylists working in the salon for her. Current threats for this business would include other salons
in the local Indianola area, including Aveda, Cost Cutters, and Great Clips.
SWOT Analysis:
Beauty by Design has many internal strengths of which include; the owner has a strong
background in beautician work, she has a high level of knowledge on keeping up with trends,
and keeps the latest products in the store. Some internal weaknesses of the business would be
not having enough staff, and lacking in area of building space.
External threats would be, when the economy goes bad, people don’t have the money to
buy products, or get their hair cut, which causes a decrease in profit for the salon. Outside
competition from other salons, would be a threat, because it takes away business
opportunities. External opportunities would be haircuts are a necessity, and changing trends
keep customers coming in. The salon could also move and open up a bigger salon.
Service
Haircuts
Color/Highlight
Body Waxing
Hair Products
Clothing/Accessories
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Price
$15.00 - 25.00
$45.00 - 100.00
$10.00 - 15.00
$5.00 - 40.00
$30.00 - 90.00
Beauty by Design
III. OBJECTIVE(S) OF THE CAMPAIGN

Increase Beauty by Design’s revenue by 5%

Increase returning clientele by 75 people

Increase each stylist’s revenue by 3%

Increase stylist knowledge of trends
We have created many different objectives to better advertise Beauty by Design. In our
campaign we intend to expand to Twitter with a goal to increase clientele. Purchasing a radio
advertisement in order to bring in more customers to expand our company and increase the
revenue as a whole. Also, by sending out direct mail, we can maintain loyal customers with
frequent customer coupons. Beauty by Design can receive a favorable image by
participating in different activities and events through Indianola Community School District.
Beauty by Design will also hold holiday giveaways, every time a customer comes in the salon;
they are entered into the drawing, to receive a gift card. This will help the salon, by bringing
the customers in more often.
IV. IDENTIFICATION OF THE TARGET MARKET
A. PRIMARY MARKET
Demographic
Psychographic
Geographic
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






Women
Age 16 - 50 years
Income range of $30,000 - $60,000
Individuals who enjoy being pampered
Individuals who care about their appearance
Individuals who look for a relaxed salon environment
Indianola, IA
Beauty by Design
B. SECONDARY MARKET
Demographic
Psychographic
Geographic







Men
Ages 25 - 40 years
Income range of $30,000 - $60,000
Individuals who enjoy having a clean appearance
Individuals who the atmosphere of a salon
Individuals who look for a quick cut
Des Moines, Iowa
V. LIST OF ADVERTISING MEDIA SELECTION NECESSARY FOR THE CAMPAIGN
Advertisements
Twitter:
Beauty by Design is going to open a free Twitter account and run it themselves in order
to avoid expensive prices. Twitter advertising is a new way to advertise to the younger market,
and will benefit the company. Beauty by
Design is going to tweet at least five times a
week and in their tweets they need to include;
trends, promotions, new services, new information about the salon/stylists, and new products.
Some examples of the tweets that Beauty by Design will be putting out include: “Check out
this new cut Sarah did.” To help promote different promotions this is an example of a tweet
that could be sent out, “This month’s promotion
is, get your hair colored and receive a haircut
for free.” In order to keep our existing customers
up to date about new products the company
could potentially tweet, “Stop in and check out our new product line.” Beauty by Design
would benefit by putting images into their tweets from time to time.
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Beauty by Design
The company will also be creating holiday giveaways on their Twitter page. For
example, during the holidays they will tweet “Tweet us a picture of your favorite holiday
hairstyle for a chance to win a $15.00 gift card”.
Direct Mail:
In order for Beauty by Design to maintain their existing customers sending out direct
mail is an excellent way to do so. Sending out
coupons is an easy way to pull new customers into
the salon, hoping that they will become returning
customers. For Beauty by Design to send out 2,500
pieces of mail with both sides colored it would be
$245.00. The cost for postage would be $1,200. It
would be this price because the size of mail Beauty
by Design is sending out is the same size of a postcard. This technique is best to utilize only
once a month, in order to prevent the company from overspending and customers from
getting annoyed of junk mail. An advantage of direct mail is that the company is able to use
the same mailing list multiple times.
Radio:
Beauty by Design will be able to bring in new customers from different locations around
the metro by purchasing a radio ad. The radio ads range
in price from station to station. The company will also pay
“Beauty by Design is a relaxed
environment with quality hairstyles
and low prices! Be sure to stop in
and see us in Indianola. Mention
this ad and receive 10% off!”
per time the ad plays. Beauty by Design will buy time from
the radio station KGGO, because it is a well known station
that many local people listen to. In order to catch a wide
variety of people, it is best that the salon purchases an ad
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Beauty by Design
in the morning. The cost for this advertisement will be $124 per time, for a 60 second ad or $109
for 30 seconds. The company will best benefit by the 30 second ad. This ad will play around 2-3
times in the morning, based on what Beauty by Design would like to spend. This will be very
beneficial to the company, because people from all around the metro will be informed about
Beauty by Design.
Sales Promotions
Indianola Community Schools:
Advertising within the community is very beneficial because it provides the company
with a favorable image. There are two ways Beauty by Design will get involved with the
community. The first is adding a promotion to the Indianola Gold Card. This promotion will be
10% off every visit at the salon for the year. Adding this promotion to the gold card, will not
cost the business
anything other than the revenue they will lose. But, by making this discount become available
it will bring in more customers which in the long run will make up for the revenue loss. This will
be very beneficial to the company because many families in
Indianola purchase gold cards to support Indianola athletics. It is
also a very easy way to get Beauty by Design’s name out there.
The second way the company is going to be getting
involved with the community is they are going to begin
sponsoring a variety of sporting events. By sponsoring events, the
company will be able to interact with the community on a personal level, and be able to get
the company’s name to people who haven’t heard of it before. Sponsoring a team will cost
Beauty by Design $100 - $150, which would include paying for a team’s varsity poster. The
company could also sponsor the football team, by donating $25 for every touchdown scored
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Beauty by Design
at the home football games. Both of these forms of advertisement will help the company
receive a favorable image from the community.
Drawing:
Beauty by Design currently has a lot of valuable customers, and has come up with a
way to help maintain their loyalty. The company is going to start doing a drawing once a
month. How this is going to work is every time a customer comes into the salon to get their hair
either cut or colored, their name will be entered into a
drawing one time. So, if a customer comes in two times in
one month, their name will be entered two times. If the
customer’s name gets drawn, they will receive some type of
prize. Every month, the prize will vary a little. For example,
one month it would be a basket with different hair products, and another month it would be a
$30 gift certificate. By doing this drawing, the company will maintain their customers, and as
more local consumers hear about the excellent prizes, they will have a desire to come into the
salon, and potentially become returning customers.
Another way Beauty by Design will incorporate a drawing to reach new customers
would be to have a giveaway on their Facebook page. For example, they would post, “If you
share, comment, and like this post you will be entered for a chance to win this awesome new
hairspray”. This would broaden the number of people who will learn about Beauty by Design
through word of mouth.
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Beauty by Design
VI. SCHEDULES OF ALL ADVERTISING PLANNED
November
Twitter




Direct
Mail


December
Create a free Twitter account
Send out first tweet about
new products
Approximately send 12 tweets
Send tweet about
Thanksgiving contest
o “Tweet us your best
Thanksgiving hairstyle”

Create design for postcard
Create a mailing list

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
Radio


Contact KGGO
Schedule when radio
advertisement will air
January
Twitter


Direct
Mail


Radio


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

Send out 12 tweets
Tweet advertise new
merchandise
Tweet about Christmas
contest
o “Tweet us your favorite
holiday hair color”
Send design to be created
into postcard
Buy postage ($1,200)
Create jingle for radio ad
Determine what needs to be
stated in advertisement
February
Send out 12 tweets
Tweet about new
hairstyle trends

Pay for postcards
($245)
Send out first round of
direct mail to existing
customers
Pay for radio ad ($109
for every time aired)
Have advertisement
played 2 times a day





Send out 12 tweets
Tweet about stylist achievements
Tweet about Valentine’s Day
contest
o “Show us your favorite hairstyle
for date night on Valentine’s
Day”
Send out second round of direct
mail to existing customers
Create a new mailing list of nonexisting clients
Go one month without airing radio
ad in order to keep costs low
Beauty by Design
VII. SCHEDULES OF ALL SALES PROMOTION ACTIVITIES PLANNED
Indianola
Schools
Drawings
Indianola
Schools
Drawings
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November
December
 Select a specific
 Become a company that offers
sporting event
discounts on Indianola Gold Card
 Get in contact with
coach
 Sponsor football
team by paying $25
for every touchdown
 Inform clients about
 Post first giveaway on Facebook
upcoming contests in
o Share, like, and comment on
store
the post to be entered to
win free haircut
 Begin first drawing in store to win a
basket of new products
January
 Sponsor basketball team by
paying to have basketball
posters created ($150)
 Announce winners from
Facebook and in store
giveaways
 Create a new giveaway in
store, 20% off next purchase
February
 Keep in contact with
sporting teams to help
with extra costs
 Announce last month’s
drawing winner
 Create a new Facebook
drawing
Beauty by Design
VIII. BUDGET
Form of
Advertisement:
Twitter
Description:
Cost:
Radio


Tweets
o Informing about new
products/company information
30 second advertisement
Two times a day
Direct Mail



2,500 postcards
Postage
Mailing list

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Company on gold card
Football game sponsor
Basketball team sponsor
Giveaways
Drawings
Gain new clients
All of the above

Indianola
Community
Schools
Drawings
Total Cost


Free


$109.00 - one time
$218.00 - the
whole day
$245.00 postcards
$1,200.00 postage
$25.00 - per
touchdown
$150.00 - posters
Prices vary based
on giveaway
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
Around $2,000
We have picked these different forms of advertisements because they will be efficient
for Beauty by Design. Also, they are very cost friendly for the company. In order to get the
company’s name out there it is necessary to advertise which can sometimes be very costly.
Because of this, we have carefully selected a couple different methods to begin advertising
that will fit in the salon’s budget. These different ways of advertising are going to better help
the salon’s awareness become greater.
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Beauty by Design
IX. STATEMENT OF BENEFITS TO THE CLIENT/ADVERTISER
If the steps in our advertising campaign are followed these objectives should be met:
Beauty by Design’s revenue will be increased by 5%, each stylist’s revenue will increase by 3%,
clientele will be increased, and stylist knowledge of trends will be increased.
During this campaign we are going to increase revenue by gaining more clientele
through direct mail, radio advertisements, and drawings through Facebook. By doing these
different advertisements we will help make the salon become more successful in many
different aspects. We are trying many different kinds of advertisements, hoping to figure out
which ones work best for the company. By doing this, Beauty by Design is getting their name
out there. Even if the advertisements don’t bring in as many people as hoped, more people
will be familiar with the company. The salon will know if this campaign is working by noticing if
numbers are increasing throughout the salon. With the community having a better awareness
of the company and what it offers, Beauty by Design will grow as a whole. We are hoping
that Beauty by Design will gather a higher gross income after this campaign is finished. This
campaign is budget friendly, has a wide variety, and offers many different ways for consumers
to get involved. We are going to observe the revenue to be sure of Beauty by Design meeting
these objectives.
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X. BIBLIOGRAPHY
Email
Jenkins, Bob, Mr. "[email protected]" 23 Oct. 2014. E-mail.
Website
"Beauty Industry Analysis 2014 - Cost & Trends." Beauty Industry Analysis
2014 - Cost & Trends. Franchise Help, 2014. Web. 7 Oct. 2014.
Evans, Rebecca, Mrs. "Indianola, Iowa." (IA 50125) Profile: Population,
Maps, Real Estate, Averages, Homes, Statistics, Relocation, Travel,
Jobs, Hospitals, Schools, Crime, Moving, Houses, News, Sex Offenders.
Onboard Informatics, 2014. Web. 11 Nov. 2014.
Interview
Breeden, Sarah. "Beauty by Design." Telephone interview. 10 Oct. 2014.
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Beauty by Design
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