Executive summary
Ocean Beauty Center is a salon, which will operate in the UAE’s beauty industry. The salon will provide beauty services to female customers aged between 25-35 years. In order to satisfy the customers, the firm will incorporate the concept of product diversification. Subsequently, Ocean Beauty Center will integrate a wide range of beauty and personal care services such as manicure, pedicure, hair services, facial services, and massage. Subsequently, the salon will operate as a fully-fledged beauty center. Upon its inception, the firm intends to achieve a number of financial and societal objectives. The financial objectives are focused on ensuring that the firm achieves a high level of profit maximization while the societal objectives will ensure that it operates ethically. Furthermore, Ocean Beauty Center intends to create a substantial level of market awareness by integrating a comprehensive marketing communication strategy.
Subsequently, the firm will utilize integrated marketing communication through sales promotion, advertising, public relations, and personal selling. In a bid to attract different customer groups, the firm will adopt differential pricing. Moreover, Ocean Beauty Center will ensure that its services are delivered effectively by locating its store strategically. Furthermore, the firm will integrate a high degree of professionalism and expertise in the service delivery process.
Marketing objectives
Ocean Beauty Center intends to position itself as a profit-making entity. In order to achieve this goal, the firm has formulated a number of objectives that will guide the marketing department in its effort to ensure that the new business penetrates the UAE’s beauty industry successfully. Some of these objectives are outlined below.
Financial objectives
- To increase its sales revenue with a margin of 40% within the first year of its operation
- To increase its market presence in the UAE by 55% within one year
- To develop a strong store loyalty by attracting and retaining a large number of customers by incorporating effective brand management strategies and some of the aspects that the firm will take into account in order to achieve this goal include brand identity, brand culture, and brand image
- To achieve a customer retention rate of 65% within the first year. The firm intends to achieve this objective by developing a high level of customer loyalty.
- To create a sufficient level of market awareness both in the local and the international market
- To diversify its salon services continuously in order to meet the needs of diverse customer groups by incorporating the concept of new product development and continuous innovation. The firm’s ability to innovate will arise from its capacity to utilize the prevailing market intelligence.
- The firm intends to achieve a net margin of 5% within the first year of its operation.
Societal objectives
The firm’s management appreciates the view that the ability to achieve its profit maximization will depend on the extent to which the firm operates as a socially conscious entity. In a bid to position itself as a socially conscious firm, Ocean Beauty Center will integrate the concept of corporate social responsibility by integrating a number of aspects, as illustrated below.
- To minimize the firm’s contribution to climate change- the firm will ensure that its operations do not contribute to environmental pollution, which is one of the major reasons for the high rate of climate change. One of the ways through which this goal will be achieved is by incorporating a high level of energy efficiency in its operation. For example, the firm will utilize green sources of energy, such as solar and wind energy, in meeting its energy requirements with regard to lighting and heating.
- To ensure effective waste disposal – Ocean Beauty Center will ensure that the waste generated in its operation is disposed of effectively in order to minimize water, air, and soil pollution.
- To reduce the amount of waste generated – the firm will adopt the concept of recycling, reducing, and reusing in its operation, which will aid in minimizing the amount of waste.
- To ensure a high level of customer safety and health – Ocean Beauty Center will take into account the health and safety of its customers in its service delivery process by using scientifically tested beauty and personal care products. Furthermore, the firm will source its beauty products from certified suppliers, which will aid in minimizing the likelihood of using substandard beauty products, which can have adverse effects on customers.
Marketing program
Marketing strategy
Ocean Beauty Center management team is cognizant of the fact that the firm will experience intense competition from other well-established firms in the UAE. In order to deal with this challenge, the firm’s management team will integrate effective marking strategy by integrating the marketing mix elements, which include product, price, place, and promotion. Using these marketing mix strategies will increase the likelihood of the firm improve its market penetration. Subsequently, the firm will be in a position to achieve its marketing objectives. Consequently, effective integration of marketing mix strategies will improve the effectiveness with which Ocean Beauty Center attains an optimal market position. The marketing mix strategies adopted by the firm will be focused on ensuring that the firm delivers excellent hair and beauty services to the young women in its target market.
Product strategy
The quality of products and services offered by a firm has a direct impact on the level of customer satisfaction. Therefore, it is imperative for firms’ management teams to invest in improving the quality of their product or service. Pride and Ferrell (76) assert that customers are increasingly becoming conscious of quality, which has arisen from the increased association of quality with achieving a high degree of utility.
Ocean Beauty Center will operate as a fully-fledged beauty and personal care salon. The firm will specialize in the provision of diverse beauty products and services. The decision to adopt a comprehensive product portfolio is informed by the need to satisfy a large number of customers. Some of the beauty services that the firm will offer include hair, skincare, eyebrow, and nail services. The nail services will include pedicure, manicure, and nail polishing. Additionally, Ocean Beauty Center will offer other beauty services, which include haircuts, weaving, colors, relaxers, curling, shampooing, reconstructing, and conditioning. Skincare services will encompass facials, massage, and body waxing.
Ocean Beauty Center will ensure that the services offered are unique in order to deliver a unique customer experience. For example, the firm will offer a Moroccan bath using special products imported from Morocco. The firm will ensure that each customer receives a free service in order to develop unique customer experience. For example, customers will receive a free massage for consuming nail and skincare service sought. On the other hand, Moroccan baths will be served to the customers with Moroccan tea and Moroccan sweet.
The firm’s management team will ensure that the beauty products and other accessories used in offering customers different beauty services are sourced from certified suppliers. The decision to consider this aspect arises from the high rate at which customers are facing the challenge of consuming counterfeit products. Ocean Beauty will integrate the element of customer protection in offering its beauty services. The firm will outsource its products from suppliers, who will be required to meet a certain quality criterion, which will enhance the likelihood of the firm delivering unique customer experience. Ferrell and Hartline (48) assert that customers are increasingly becoming health-conscious in their consumption processes. This trend has arisen from the increased association of various diseases such as cancer with a change in lifestyle and the availability of counterfeit products in the market.
Considering the intangible nature of the firm’s product, Ocean Beauty Product will ensure that a high level of professionalism and expertise are integrated. Furthermore, the firm will invest in continuous product improvement in order to align its operations with the prevailing industry trends by investing in market research in order to be successful in its product innovation efforts. Subsequently, the likelihood of the firm nurturing a high level of customer satisfaction will improve.
Pricing strategy
The pricing strategy adopted by a firm plays a significant role in determining the likelihood with which an organization attracts and retains customers. Jordan (92) asserts that customers are price conscious in their purchasing patterns. This assertion means that customers purchase products according to their ability to afford. Moreover, some customers, especially high-end customers, tend to purchase higher-priced products. This aspect arises from the view that they associate high prices with the value of the product or service being consumed.
In order to exploit this market difference, Ocean Beauty Center will adopt differential pricing strategy. Greene (23) asserts that marketers face a challenge in making decisions on whether to utilize different or single price in marketing a particular product. Mullin defines differential pricing to include “charging different prices to different buyers for the same quality and quantity of product” (5).
The success of an organization in utilizing differential pricing strategy is subject to the degree of price sensitivity amongst the various customer groups that the firm targets. Additionally, differential pricing strategy is based on the assumption that different markets do not communicate on the prevailing prices. Moreover, the pricing strategy is based on the assumption that customers in the target market segments are characterized by diverse perceptions of the value and cost of a particular product. Subsequently, Ocean Beauty Center’s decision to adopt differential pricing is informed by the existence of a high degree of heterogeneity in the market. However, it is imperative for organizational leaders to ensure that the price differentiation strategy does not antagonize other customer groups.
The decision to adopt differential pricing is informed by the intense competition in the market (Baker 45). The firm faces intense competition from other beauty firms such as Al-Ain, Batavia Beauty Center, New Millennium Beauty Salon, and Al Nada Beauty Salon. In addition to the intensity of competition, the adoption of differential pricing strategy is informed by the view that the firm will target both high-end and low-end customers. High-end customers will include customers with a high income, and thus they will be in a position to pay a premium. On the other hand, adopting a differential pricing strategy will enable the firm to attract customers in the low-income category. Subsequently, Ocean Beauty Center will be in a position to maximize its sales revenue and hence its profit.
Promotion strategy
Creating a sufficient level of product awareness is indispensable in an organization’s effort to achieve a high rate of market success. One of the ways through which an organization can create a high level of market awareness successfully is by integrating a comprehensive marketing communication strategy by adopting the concept of Integrated Marketing Communication [IMC] in its promotion programs. The program will comprise different methods of marketing communication, which include advertising, sales promotion, public relations, and personal selling. The firm will ensure that a high degree of consistency of the marketing message is maintained in order to nurture a high degree of trust. Furthermore, the firm will design an attractive message in its quest to attract a large number of customers by ensuring that the message culminates in creating a high degree of customer attention coupled with nurturing interest and desire on the product, hence influencing consumers in making their purchase decision.
Advertising
Advertising will be achieved by marketing through both traditional and emerging advertising mediums. Some of the traditional mediums that the firm will utilize include television, radio, and print media. Ocean Beauty Center will conduct advertising through different television and radio channels in the United Arab Emirates where the firm is located. The firm will conduct its advertising process through well-established beauty magazines in the UAE. The firm will also conduct marketing communication through various newspapers in the UAE. Other print mediums that will be utilized include printing brochures and leaflets, which will be issued to customers in the UAE.
Furthermore, Ocean Beauty Center will also utilize outdoor advertising using billboards by entering into a contract with outdoor advertising companies in the UAE that have strategically located their billboards. The advertising contract will allow Ocean Beauty Center to post its banner on the billboards. In an effort to develop a unique experience amongst customers, the firm will maintain an effective store ambiance by ensuring effective and efficient interior design. For example, the firm will integrate signage, outlining its services. Additionally, Ocean Beauty Center will ensure that the salon is painted effectively using different colors.
Moreover, the firm will ensure an attractive store ambiance by implementing an effective lighting system. Binggeli emphasizes that high quality “lighting can enhance a store’s image, lead potential customers inside, focus their attention on products, and ultimately increase sales” (237). Therefore, it is imperative for the firm’s management team to ensure that the salon’s lighting system takes into account the elements of balance, contrast, and color.
Sales promotion
The firm’s management team understands that customers seek a rewarding experience during their shopping process. Mullin emphasizes that a good “sales promotion will stop customers for a moment, cause them to think about a brand and a product, and if it has the right impact move them to make a decision to follow up the sales promotion” (2). Therefore, it is imperative for firms to consider integrating effective sales promotion strategies. Furthermore, Mullin asserts that sales promotion leads to a high level of excitement, coupled with creating a sense of humor and novelty at the purchasing point. Therefore, the probability of customers responding positively to the sales promotion adopted is high. Additionally, integrating effective sales promotion strategies increases the likelihood of developing store loyalty as customers receive a unique experience by purchasing from the firm.
In its quest to exploit this market opportunity, Ocean Beauty Center will integrate an effective sales promotion strategy. This decision is informed by the view that sales promotion contributes to the development of positive consumer behavior and attitude towards the product or service being offered by providing customers with additional beauty services. For example, customers will receive a free massage for consuming nail and skincare service sought. On the other hand, Moroccan baths will be served to the customers with Moroccan tea and Moroccan sweet.
Public relations
Effective public relations can enable an organization to develop a strong relationship with its customers, hence supplementing its sales effort. Most organizations that are successful in their public relations have well established public relations departments. However, some organizations prefer outsourcing public relations services from external PR firms. In a bid to create a strong customer relationship through public relations, Ocean Beauty Center will establish a public relations department, which will be comprised of public relations experts. The public relations specialists will be charged with the responsibility of disseminating information about the firm’s services. Moreover, the PR specialists’ role will also entail dealing with conflicting situations about the firm’s operations. Subsequently, the firm will be in a position to establish effective publicity.
One of the public relations tools that the firm will utilize includes press releases. The press releases will be used in highlighting new beauty and personal care services that Ocean Beauty Center has integrated into its product portfolio. Additionally, the firm will also utilize press releases in creating information on the changes in its beauty services. Renowned celebrities will also supplement the firm’s public relations effort. D’Angelo (72) asserts that celebrities have a strong positive impact on consumers’ purchasing behaviors. One of the female celebrities that the firm will seek to endorse its products is Shamma Hamdan, who is a renowned song thespian in the UAE. The firm is of the opinion that contracting Hamdan to endorse its services will influence a large number of youthful females in the UAE. Subsequently, the firm will be in a position to increase its effectiveness in creating market awareness.
Furthermore, Ocean Beauty Center will also integrate events in its quest to develop strong public relations. For example, the firm will conduct a grand opening event, which will be hosted on the company’s premises. The firm will invite renowned female celebrities [actors and philanthropists] and potential female customers aged between 25-35 years. During the event, the firm will offer free personal care services to individuals who will attend the event. The firm will also integrate price discount as one of the promotional aspects during the event. This move will enable the firm to bond with the customers, hence increasing the likelihood of future sales.
Ocean Beauty Center will also sponsor various activities in the UAE’s beauty industry, such as beauty contests, by providing the participants with free beauty services such as hair, facial, manicure, and pedicure services. The decision to integrate the concept of sponsorship is informed by the need to develop a strong relationship with potential customers.
Personal Selling
In its quest to develop a high level of customer loyalty, Ocean Beauty Services will create awareness through personal selling by employing the services of its sales representatives. The firm’s decision to adopt personal selling services is informed by the need to market its customers to corporate customers such as media firms, which are conscious about the personal look of their media personalities.
Furthermore, personal selling will also be employed in marketing the firm’s products to beauty pageant firms in the UAE. In a bid to succeed in its personal selling efforts, Ocean Beauty Center will ensure that its sales representatives are trained adequately. One of the areas that the firm’s management team will take into account entails ensuring that the sales force is well informed about the services offered by Ocean Beauty Center. Additionally, the firm will ensure that the sales force is customer-focused by assessing the sales force’s appearance and attitude towards customers. Ocean Beauty Center will invest in comprehensive customer service training aimed at equipping customers with the necessary skills. The firm’s sales representatives will be charged with the responsibility of creating awareness regarding the firm’s products and services to these customer groups. Ocean Beauty Center will also train its employees on how to be courteous in the process of interacting with customers during their marketing and service delivery process. Subsequently, the firm will be in a position to create awareness for a large number of customers.
Promotion calendar
Ocean Beauty Center is committed to creating an adequate level of market knowledge regarding its beauty services. In order to achieve this goal, the firm will integrate a comprehensive marketing calendar that will address the diverse product categories. The firm will undertake its promotion campaign on both a monthly and bi-monthly basis. The decision to adopt this strategy in its promotion calendar is informed by the fact that some services have seasonality. The chart below illustrates the promotion calendar that the firm will utilize in its marketing campaign.
Distribution strategy
Ocean Beauty Center is cognizant of the importance of ensuring that customers easily access the product or service being offered. The effectiveness with which an organization ensures that customers easily access its products and services influences the likelihood of maximizing its sales revenue. This assertion arises from the view that an organization is in a position to market its products to a large number of customers.
Ocean Beauty Center will ensure that the salon is located strategically in order to access a large number of customers. Therefore, the firm’s management team will take into account the element of traffic in determining the location of the salon. Moreover, the firm appreciates the importance of sustaining the quality of the product or services being offered. Subsequently, the firm will integrate an effective product distribution strategy. One of the ways through which the firm intends to achieve a high degree of effectiveness in its distribution is by adopting direct channels of distribution. The firm will establish outlets in different regions in the UAE.
However, establishing outlets will not be effective if the service offered in the various outlets varies. Sandlin (78) argues that service distribution, for example, hair salon services, is different from the distribution of tangible products due to the inability to separate the service from the service provider. In order to deal with this challenge, Ocean Beauty Salon will ensure that a high degree of convenience is maintained by ensuring that its employees are customer-oriented.
Promotional design
Ocean Beauty Center targets young female customers aged between 25 years and 35 years. The decision to target this customer group is informed by the high rate at which they are consuming beauty products and services. In order to create awareness for this customer group, Ocean Beauty Center will utilize different information communication technologies. The decision to adopt this technology is informed by the view that these customer groups are increasingly integrating technology in their purchasing process.
One of the technologies that the firm will adopt includes web-based search engines such as Google, MSN, and Yahoo. Saxena (54) asserts that consumers are increasingly using these search engines in searching for information about diverse products and services. In order to exploit this opportunity, the firm will enter into an advertising agreement with the web-based search companies. The agreement will enable the firm to post its link on the company’s homepage. Subsequently, the likelihood of the firm creating awareness for a large number of customers will increase.
The firm also recognizes that social media has revolutionized the effectiveness and efficiency with which a firm creates market awareness. In a bid to exploit this opportunity, Ocean Beauty Center will utilize different social media platforms such as Wikis, Blogs, Facebook, Twitter, Instagram, Tumblr, WhatsApp, and YouTube, amongst others. Customers are increasingly these social media platforms in interacting with their friends, family, and colleagues.
In order to create awareness using these social media platforms, Ocean Beauty Center will create an account with each of the aforementioned social media platforms. Subsequently, the firm will be in a position to post information on its products and services on social media platforms. For example, the firm will create videos of its different services, such as body massage, pedicure, manicure, and other skin care services on these platforms. This move will provide customers with an opportunity to see the services offered by the firm.
Using social media platforms will provide the firm with an opportunity to develop a strong relationship with its customers. This assertion arises from the view that these platforms will enable Ocean Beauty Center to interact with customers. For example, customers will be in a position to post their opinion, compliments, and complaints about the firm’s social media accounts. Consequently, the firm will gather market intelligence, hence improving the likelihood with which it undertakes continuous service improvement.
Moreover, using social media platforms will enable the firm to minimize the cost of creating market awareness. This assertion arises from the view that using the social media platform is a cost-effective method of marketing communication, as it does not require expert knowledge.
Ocean Beauty Center will also create market awareness through its official website. All information on the services offered by the firm will be posted on the website. Moreover, the firm will ensure that the official web site is designed effectively in order to appeal to customers. Furthermore, the firm will post the link to its official website on social media in order to increase the likelihood of traffic. Therefore, the firm will create awareness to a large number of customers.
In order to appeal to a large number of customers, the firm will integrate the concept of AIDA by ensuring that the message draws attention, it is interesting, and it creates a desire amongst the target customers coupled with influencing the customers to consume its services. Ocean Beauty Center will achieve this goal by integrating the concept of creative arts. This move will ensure that the message is designed effectively in order to attract customers.
The firm will design the advertising message creatively, which will be posted on various social media platforms such as Facebook and YouTube. For example, the firm will integrate attractive pictures. The image below illustrates an example of graphics that the firm will post on its Facebook page during its initial marketing communication effort.
Ocean Beauty Center is of the opinion that posting the above image on social media will appeal to the target customers’ emotions. Subsequently, the firm will be in a position to attract a large number of potential customers. Furthermore, posting this image on social media will motivate customers to make further inquiries on the services offered at the firm. For example, Twitter, Facebook, and Instagram, amongst other social mediums, will provide customers an opportunity to request additional information on the company’s services. Therefore, Ocean Beauty Center’s marketing department will have the opportunity to interact directly with customers. Such interactions will increase the likelihood of the salon developing a strong relationship with its customers. Furthermore, using social media will increase the firm’s ability to influence the target customers in making a decision on various beauty services such as hair, facial, manicure, and pedicure services.
The firm’s management team is of the opinion that an efficient implementation of the above marketing strategies will improve the effectiveness with which the firm attracts and retains a large number of customers. Subsequently, the firm will achieve its profit maximization and market penetration objectives.
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