The business of beauty has for many years enjoyed the evangelism of the word of mouth before the birth of the internet in this industry. The introduction of Internet and its explosive growth has a positive impact on our everyday lives. Through the internet, consumer and business based opportunities are promoted across the locality and even globally. The internet has been proved to be a powerful tool diversifying in the beauty industry globally. Consumers have the unlimited opportunity to shop whenever they want as the stores will remain open with the help of availability of unlimited internet. The division of opportunities in the beauty industry is into products and services, but most of the providers offer both. Business models based on process production, target market, and location have an extensive variety. Many consumers go online searching for the easiest and most effective way of purchasing their desired products. It is vital for consumers to receive the best quality services as companies offer their beauty products in different ways.
In the current situation, customers need to feel they get most of the products they purchase as retailers require to create loyalty in their brand. The concern of this plan is to come up with an online software product that is business-to-business oriented. The software application will enable customers to search for a beauty salon within their area. It will also reveal the products in store, the staff that work in that particular beauty shop as well as give the available first appointments to them. There will be adequate service provision to customers hence reduce their uncertainty over the beauty shop services and products. It will also provide customer satisfaction in the growing field of the beauty industry.
Current marketing situation
Due to the explosive growth of the internet e-commerce came into birth. The e-commerce and the digital advertising are growing rapidly as the digital initiatives are being stepped up by all major players. These platforms are being exploited to gain the customer interest in brands as the campaign-specific sites are being replaced by the communication through social media. There are emerging markets that are mobile internet accessed that are attractive opportunities in the field of the beauty industry. The e-commerce is more prevalent in developed markets than in traditional internet access. The penetration of mobile phones to the e-commerce is higher as compared to the computer internet enabled penetration. It is an important aspect of the market possessing low levels of computer ownership. In many households globally the ownership of internet enabled mobile phones is above 50% hence enhancing the marketing strategy. The power of the website that is the internet will improve direct strategy that eventually will change the beauty industry advertisement.
Innovation and diversity based on online applications exist due to demand. Traditional channels are being outgrown by the beauty specialized retailers. It has led to the continuous expansion of beauty industry globally claiming an 8.5 % growth in 2014. In 2010, the growth in revenue had been estimated to be 3.3%. The development of the industry is as a result of several innovative trends hence provide future continued profitability. The growth in store and introduction of new products boosts the specialized beauty retailers that rely on the accelerated digital platform. The focus on developing e-commerce and m-commerce capabilities is primarily a need as online shopping through mobile phones is becoming a norm within consumers in the beauty industry.
Projected profit and loss statements
There would be a software development process and all the entailed applications complimenting it. The programming that will support the software is deemed to cost about $350,000. The other auxiliary applications are supporting the system will cost about $150,000. The total expenditure of the entire software is projected to cost about $500, 000. The monthly maintenance cost of the software system will depend on the monthly salary of the programmer.
There would be the employment of the following personnel; a coordinator, two sales representatives, and one programmer to help in achieving the set goals of the project. The coordinator will be coordinating all the functions of the daily business. The monthly salary is estimated to be about $2,000. The sales representatives responsible for the marketing strategies will have a monthly salary of $1000 each. A programmer maintaining all the issues under the software and applications is proposed to have a monthly salary of $1,500. The office space set aside will cost $2,000 a month. The total monthly cost is anticipated to be about $7500.
Within a period of 12 months after inception, we are confident that the sales force can attract at least eight clients. It will give us to have a profit margin that will allow for operation within the first 12 months. If the gain sales can be able to win three major clients a month in the remaining six months, we can expect a clear monthly profit of $40,000 at the end of our first year after inception. It would be a significant milestone as it would allow for business expansion as well as a promising profitability in the future. The software applications will offer a robust platform hence promote the beauty business.
The internet based platform marketer will review each component of the business and market plan constantly throughout its initial two-year start-up period. Determination of the actual performance of the project would be by comparison to the projections as well as help us develop effective indicators to measure the performance. The first component is monitoring the customer feedback through polls and surveys. The surveys would be conducted physically and even through the internet. On the other hand, the study would be done with the marketing personnel or through individual interviews in person or by phone. Appropriate adjustments in the marketing plan will be initiated according to the results of the research. The second component is the target market sales. The sales would be measured in revenue generated. It would be through market surveys and a comparison between the actual target market sales with the projections of the market plan.
The third component is the budgeting control, and there are several controls that monitor the marketing budget. They include the travel expenses for trade shows, the market research studies costs, the print advertising expenses, and the cost of internal personnel in the department of marketing. We will monitor all these costs to maximize the profitability as the costs are minimized hence maintaining the budget. The last component is the market share where we will be able to calculate the percentage of our product consumer sales. Necessary adjustments would apply when the percentage market share will fail to indicate the expected results. All these components combined will allow for an efficiently powerful platform for marketing within the beauty industry.
Julie A, Willet. The American Beauty Industry. Malden, MA: John Wiley, 2012. Print.
Bowen, Gordon Computer-Mediated Marketing Strategies: Social Media and Online Brand. Boston, MA: Allyn and Bacon, 1999. Print.
Eileen Figure Sandlin, Entrepreneur Press, Entrepreneur Magazine. Start Your Own Hair Salon and Day Spa: Your Step-by-Step Guide to Success. Print.
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