Introduction
Detailed planning of all the nuances is the key to business sustainability and a prerequisite for building a reliable entrepreneurial system with minimal risks. To achieve these goals, creating a marketing plan is a significant undertaking. For example, a marketing plan for a hair extension business will be examined. Applying a SWOT analysis and a detailed assessment of promotional initiatives through the 4Ps strategy can help identify the characteristics of the business’s development and highlight the steps to implement the marketing plan.
Mission Statement
The hair extension business in question belongs to the beauty and cosmetology industry. To attract the target audience’s attention and gain market recognition, the promotional program should include a clear, concise mission statement that emphasizes the business’s unique aspects. In this case, it could be as follows: “We are ready to make you feel confident. Your hair is our responsibility.”
Objectives
The objectives of business promotion can apply to both short-term and long-term prospects.
Short-term objectives:
- To expand the target audience in the coming months.
- To recoup costs within the following year.
- To become a unique and sought-after provider of targeted services.
- To acquire loyal customers and create a positive image.
Long-term objectives:
- To expand the business and open new branches within a few years.
- To establish partnerships with major brands in the beauty and cosmetology industry.
- To obtain a license to open new salons in other regions.
SWOT Analysis
To assess the competitive advantage dimension of the business under consideration, a SWOT analysis should be carried out to identify strengths and weaknesses, as well as growth opportunities and potential risks. According to Kuan et al. (2020), this framework enables beauty industry businesses to highlight both internal and external factors that affect the sustainability of operations in the target market. Based on this assessment, appropriate steps can be taken to strengthen individual development directions.
Strengths
The hair extension business under consideration has several key strengths. The offered services are in demand today and are gaining interest among different consumers. Additionally, the project is promoted through online channels, which increases the likelihood of attracting new clients. The involvement of professional staff and a client-oriented approach helps retain regular customers and promote the business brand in the target environment.
Weaknesses
Despite the strengths above, the business has some weaknesses. The need to recoup investments requires an appropriate pricing policy; therefore, service prices may be higher than competitors’. The importance of creating a favorable image implies hiring exclusively highly qualified employees, which also entails additional costs. As a result, many expenditure items are addressed, which affects the course of development.
Opportunities
As real opportunities to strengthen the target business, one can point to the potential to forge new partnerships with reputable ventures, expand the client base, and increase the number of salons. Public interest can be leveraged to reinforce brand value. Attracting new partners, including suppliers, is a significant prospect that enables gaining a foothold in the market and securing new regular customers.
Threats
Constant labor costs, a low barrier to entry into new regions, and potential customer complaints are potential threats to the business in question. Along with financial challenges, the inability to build sustainable operations due to high competition is a risk that needs to be thoroughly discussed. If an adequate partnership policy is not established, the threat of maintaining a productive relationship with suppliers increases.
4Ps Analysis
Target Market
4Ps analysis is a framework that allows for identifying marketing opportunities within four main dimensions – product, price, place, and promotion. Additionally, it is crucial to examine the nuances of the target market; in recent years, the target market size has decreased due to COVID-19 restrictions (“Hair extension market size,” 2021). As the report’s results show, demand for hair extension services has been increasing among male audiences due to concerns about baldness, and a steady increase is predicted in the coming years (“Hair extension market size,” 2021). According to 2020 data, approximately seven million Americans suffer from alopecia (“Hair extension market size,” 2021, para. 8). Therefore, the marketing program involves promoting the business to different population groups.
Product
The service offers a valuable opportunity to undergo a cosmetic procedure to restore lost hair or achieve a new look by adding new hair. The name of the business must clearly reflect the activities carried out; “Hair Helper,” or “HH,” for short, is a fitting name. The service’s format is designed to assist clients of all ages and genders, and various cosmetic options are available.
Price
The price of services should vary depending on the complexity and specifics of the work performed. Simple procedures are typically expected to start at $300, while complex interventions with multiple sessions can cost up to $10,000. These figures are not the highest and are lower than those of some competitors. It is essential that the retailer can generate sustainable profits to cover various costs and accumulate income over time.
Place
To begin with, one salon should be opened, with appropriate advertising conducted beforehand. Subsequently, after the formation of a stable client base, more stores of the network can be opened in other cities in Arizona. If the business proves successful, the franchise could grow to a national scale. The focus should be on the city’s central districts, with rent cost as a significant factor.
Promotion
Online promotion is a primary tool for advertising a business on popular social media platforms. Additional ways to notify the public, such as distributing flyers on the streets, can also be a convenient way to draw attention to the opening of a new salon. Traditional promotional methods, such as newspaper and radio advertising, are not promising because the primary target audience is regular Internet users.
Position and Plan Implementation
A proactive marketing strategy is an effective way to promote the business. According to Iyer et al. (2019), this strategy, based on the analytics of intermediate results, allows for making the necessary adjustments during the work process. The business’s position involves increasing its target audience as its primary growth strategy.
To begin with, an assessment of all financial costs is needed, including advertising on popular online platforms, staff salaries, and other relevant costs. After that, an agreement with the supplier for the delivery of components must be reached, and a contract for the lease of premises should be concluded. Purchasing supplies, filing accounts, and entering the business into the official registry by obtaining a certificate are also necessary steps.
Conclusion
The presented marketing plan for the hair extension business identifies relevant steps and strategies to popularize a new venture among the target audience. SWOT analysis and the 4Ps strategy provide an opportunity to assess the competitive environment and account for specific factors. A step-by-step implementation plan based on a proactive marketing strategy is the optimal algorithm for launching the target business successfully.
References
Hair extension market size, share & COVID-19 impact analysis, by type (synthetic, human, and animal), by end-user (male and female), and regional forecast, 2021-2028. (2021). Fortune Business Insights.
Iyer, P., Davari, A., Zolfagharian, M., & Paswan, A. (2019). Market orientation, positioning strategy and brand performance. Industrial Marketing Management, 81, 16-29.
Kuan, N. Y., Yang, F. C., & Fei, L. K. (2020). An application of quantitative strategic planning matrix for small business: A case of a beauty salon. Global Business & Management Research, 12(2), 24-34.