Beauty By Design Advertising Campaign

Beauty by Design Advertising Campaign

!1 | P a g e 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.

4 | P a g e B e a u t y b y D e s i g n 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 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.

5 | P a g e B e a u t y b y D e s i g n 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 Price Haircuts $15.00 - 25.00 Color/Highlight $45.00 - 100.00 Body Waxing $10.00 - 15.00 Hair Products $5.00 - 40.00 Clothing/Accessories $30.00 - 90.00

III. OBJECTIVE(S) OF THE CAMPAIGN

 Increase Beauty by Design’s revenue by 5%

 Increase returning clientele by 75 people

6 | P a g e B e a u t y b y D e s i g n  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  Women  Age 16 - 50 years  Income range of $30,000 - $60,000 Psychographic  Individuals who enjoy being pampered  Individuals who care about their appearance  Individuals who look for a relaxed salon environment Geographic  Indianola, IA

B. SECONDARY MARKET

Demographic  Men  Ages 25 - 40 years  Income range of $30,000 - $60,000 Psychographic  Individuals who enjoy having a clean appearance  Individuals who the atmosphere of a salon  Individuals who look for a quick cut Geographic  Des Moines, Iowa

7 | P a g e B e a u t y b y D e s i g n 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.

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

8 | P a g e B e a u t y b y D e s i g n 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 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 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.

9 | P a g e B e a u t y b y D e s i g n 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 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.

10 | P a g e B e a u t y b y D e s i g n VI. SCHEDULES OF ALL ADVERTISING PLANNED

November December

Twitter  Create a free Twitter account  Send out 12 tweets  Send out first tweet about new products  Tweet advertise new  Approximately send 12 tweets merchandise  Send tweet about Thanksgiving  Tweet about Christmas contest contest o “Tweet us your best o “Tweet us your favorite Thanksgiving hairstyle” holiday hair color”

Direct  Create design for postcard  Send design to be created into Mail  Create a mailing list postcard  Buy postage ($1,200)

Radio  Contact KGGO  Create jingle for radio ad  Schedule when radio  Determine what needs to be advertisement will air stated in advertisement

January February

Twitter  Send out 12 tweets  Send out 12 tweets  Tweet about new  Tweet about stylist achievements hairstyle trends  Tweet about Valentine’s Day contest o “Show us your favorite hairstyle for date night on Valentine’s Day” Direct  Pay for postcards ($245)  Send out second round of direct mail to Mail  Send out first round of existing customers direct mail to existing  Create a new mailing list of non-existing customers clients Radio  Pay for radio ad ($109 for  Go one month without airing radio ad in every time aired) order to keep costs low  Have advertisement played 2 times a day

11 | P a g e B e a u t y b y D e s i g n VII. SCHEDULES OF ALL SALES PROMOTION ACTIVITIES PLANNED

November December Indianola  Select a specific  Become a company that offers Schools sporting event discounts on Indianola Gold Card  Get in contact with coach  Sponsor football team by paying $25 for every touchdown Drawings  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 February Indianola  Sponsor basketball team by  Keep in contact with Schools paying to have basketball sporting teams to help with posters created ($150) extra costs Drawings  Announce winners from  Announce last month’s Facebook and in store drawing winner giveaways  Create a new Facebook  Create a new giveaway in store, 20% off next purchase drawing

12 | P a g e B e a u t y b y D e s i g n VIII. BUDGET

Form of Description: Cost: Advertisement: Twitter  Tweets  Free o Informing about new products/company information Radio  30 second advertisement  $109.00 - one time  Two times a day  $218.00 - the whole day Direct Mail  2,500 postcards  $245.00 - postcards  Postage  $1,200.00 - postage  Mailing list Indianola  Company on gold card  $25.00 - per Community  Football game sponsor touchdown Schools  Basketball team sponsor  $150.00 - posters Drawings  Giveaways  Prices vary based  Drawings on giveaway  Gain new clients Total Cost  All of the above  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.

IX. STATEMENT OF BENEFITS TO THE CLIENT/ADVERTISER

13 | P a g e B e a u t y b y D e s i g n 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.

14 | P a g e B e a u t y b y D e s i g n X. BIBLIOGRAPHY

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.

15 | P a g e B e a u t y b y D e s i g n