Running head: MARKETING PLAN 1

Marketing Plan for Fabulous Styles

Carnella Brown

Submitted to Dr. Tracy Elazier

2/23/2014

MARKETING PLAN 2



Marketing Plan for Fabulous Styles

A. Cover Page


B. Table of Contents Pages

1. Executive Summary ........................................................................................................ 1.5
2. Company Description ..................................................................................................... 1.0
3. Strategic Focus and Plan ................................................................................................. 1.5
a. Mission/Vision Statements
b. Goals
c. Core Competency and Sustainable Competitive Advantage
4. Situation Analysis ........................................................................................................... 3.0
a. SWOT analysis
Internal Strengths and Weaknesses: Management, Offerings, Marketing,
Personnel, Finance, Manufacturing, and Research and Development (R & D)
External Opportunities and Threats: Consumer/Social, Economic,
Technological, Competitive, and Legal/Regulatory
b. Industry Analysis
c. Competitor Analysis
d. Company Analysis
e. Customer Analysis
5. Market-Product Focus ..................................................................................................... 3.0
a. Marketing and Product Objectives
b. Target Markets
c. Points of Difference
d. Positioning
6. Marketing Program ......................................................................................................... 5.0
a. Product Strategy
b. Price Strategy
(i) Breakeven Analysis
c. Promotion Strategy
d. Place (Distribution) Strategy
7. Financial Data and Projections ....................................................................................... 3.0
a. Past Sales Revenues
b. Five-Year Projections
8. Organizational Structure ................................................................................................. 0.5
9. Implementation ............................................................................................................... 0.5
10. Evaluation and Control ................................................................................................... 6.0
11. References
MARKETING PLAN 3


Executive Summary

Fabulous Styles will be a start-up business venture created by Carnella Brown with
investments from three or four close friends and relatives. The salon will have a clean, safe and
professional environment. Customer base will range from local business executives in the
Tidewater area, to military members, tourists and also those folks that make up the local
community.
Fabulous Styles will be a beauty salon dedicated to consistently providing high
customer satisfaction by rendering excellent service, quality products, and furnishing an
enjoyable atmosphere at an acceptable price/value relationship. We will also maintain a friendly,
fair, and creative work environment, which respects diversity, ideas, and hard work. (Palo Alto
Software, 2014)
Most salons in the Hampton Roads area cater to specific demographics or ethnic groups,
the stylists on my staff will be able to style the hair of any person that seeks a style from our
salon. This would give us a leg up on most of the competition. The skill to be able to style the
hair of any person regardless of their ethnicity was ingrained in me by my sister, a successful
salon owner for 17 years, who possesses the skill and has a diverse and loyal client base due to
her efforts. The professional environment and the skill set of the staff should help grow and
build the regular clientele base.
The keys to success in our business will be:
Location: providing an easily accessible location for customers.
Environment: providing an environment conducive to giving relaxing and professional service.
Convenience: offering clients services with extended business hours.
Reputation: reputation of the owner and other "stylists" as providing superior personal service.

MARKETING PLAN 4


The best location for our shop would be on Atlantic Blvd in Va. Beach, VA. Atlantic
Blvd is considered the main strip in Virginia Beach and there are numerous restaurants, small
shops and tourist attractions but no barber shops. Also there is a parking garage nearby where
customers wouldnt have to worry about parking during the tourist season when the streets are
congested with traffic. Parking is also available on the street. This location would provide
patrons clear access to the beach and is located in the middle of the strip.

MARKETING PLAN 5


Company Description
Fabulous Styles will be a start-up business venture created by Carnella Brown with
investments from three or four close friends and relatives. The salon will have a clean, safe and
professional environment. Customer base will range from local business executives in the
Tidewater area, to military members, tourists and also those folks that make up the local
community.
The original plan was to open in Denver, Colorado since retiring from the service and
relocating to the Denver area. The decision was then made that Virginia Beach, Virginia area
would be better due to having a great support system and aging parents. Virginia Beach is home
to hundreds of thousands of tourist a year and also has one of the largest naval bases in the state.
Atlantic Blvd is considered the main strip in Virginia Beach and there are numerous restaurants,
small shops and tourist attractions.
The reason behind Fabulous Styles is simple, if I had not joined the military I would have
gone to cosmetology school and pursued a career in the ever growing beauty industry. As a
teenager, I learned how to do hair extensions from a family member who was a stylist in a salon
and made money doing it on the side. I have been fascinated by hair ever since. Fabulous Styles
will not be a flash in the pan business! Customer service and the quality of service would be
second to none.
Our Motto: Looking forward to Making a Statement with Your Hair come to Fabulous Styles.





MARKETING PLAN 6


Strategic Focus and Plan
Skill at what we do, good customer service, and creating a pleasant environment for our
customers will be important to implementing our business plan. (Palo Alto Software, 2014)
Mission/Vision Statements
The Mission of Fabulous Styles is to provide beautiful new hair styles to our clients, be
known for customer service due to our qualified staff, have a clean, safe and professional
environment and become a staple of the Virginia Beach community long into the future.
Goals
The ultimate goal for the salon is to become a staple of the Virginia Beach community
long into the future. (Palo Alto Software, 2014) Fabulous Styles wants to set itself apart from
other beauty salons by focusing on providing the best quality hair care services. My goal is to
start up a quality salon that will be known for customer service, qualified staff and professional
environment.
Core Competency and Sustainable Competitive Advantage
In terms of core competencies, Fabulous Styles seeks to achieve an ever growing and
loyal client base by (1) ensuring all stylists are licensed in Virginia to do both women and mens
style cuts and that licenses be displayed in frames by the work stations. (2) Staff would also be
required to stay current on the new trends and the business would pay for that expense not the
staff member. (3) Focusing on women and men (re)entering the workforce who have been
victims of unfortunate circumstances and do not have the means to pay for an expensive
professional makeover.
To translate these core competencies into a competitive advantage, Fabulous Styles
would work with the Workforce office, and agencies like Goodwill securing referrals for the

MARKETING PLAN 7


victims of unfortunate circumstances. We would build relationships with the military by
volunteering to give classes during the transition assistance program to help separating military
members transition back to civilian lifestyle. Mostly, we would achieve a competitive advantage
by my staffs ability to style the hair of any person that seeks a style from our salon. This would
give us a leg up on most of the competition.



















MARKETING PLAN 8


Situation Analysis
SWOT Analysis
The SWOT Analysis elaborates on the more important elements of the plan.
Internal strengths.
Usually work in pleasant surroundings, Determine own work schedule, Change in
personnel as they complete their cosmetology training, Customer referrals, New clients
Internal weaknesses.
May have long hours, Physical stamina is important due to prolonged standing,
prolonged exposure to chemicals may cause irritation, (SBDCNet News Magazine, 2014)
Change in personnel as they complete their cosmetology training
External opportunities.
Industry expected to grow 14% by 2020, (SBDCNet News Magazine, 2014) Growth in
population means growth in potential client base, Customer Referrals, New clients, Location
External threats.
Competition from competing mom & pop salons as well as competition from chain
salons, Growth in industry means lots of competition for jobs
Industry Analysis
The beauty salon industry is mainly composed of small, independently owned salons.
An average salon offers services such as haircutting, styling, coloring, shampooing and
permanents. Other salons have expanded their businesses to offer services such as nail care,
facials, makeup application, waxing, massage, tanning and other beauty treatments. In a 2010
beauty salon industry analysis, IBISWorld estimates that there are 739,042 beauty salons,
barbershops and spas in the U.S. (Zoldak, 2014)

MARKETING PLAN 9


Competitor Analysis
The top 5 salons in the area, at this time, are located on Princess Anne Road and also North
Lynnhaven Blvd. These two roads are known for shopping centers, strip malls and a few quality
seafood restaurants. None of the shops have expanded outside of Virginia Beach and only one
has opened a second shop.
The top salon in the area is Knockouts. This shop has stylists that are dressed in
professional boxer shorts but shorter and tight V-neck shirts. A unique gimmick to lure
in prospective male customers. Knockouts has opened a second location within the city.
The next barber shop is GHq Grooming for Men. GHq has a unique spin as a barber
shop. GHq is staying ahead of the competition by not only being a barber shop but also a
male salon that caters to mens grooming needs to include massages.
Castes is also a frequently visited shop. Caste has low prices and loyal customers. One
customer commented that Castes is great place to take kids for haircuts.
Extreme Cuts and Styles is located on Lynnhaven Blvd also. Extreme Cuts is probably
the only shop that is diverse and can cut the hair of any customer that walks through the
door. The same niche that Fabulous Styles hopes to carve out in the future.
Woodtide Styling rounds out the top 5. Woodtide is located within the shopping center
of the same name located on Princess Anne Road.
The salons/barber shops on base are also viewed as competition. The base shops offer a
close convenience for the military members. The shops are required to offer prices lower
than those on the local economy to entice members to get their hair styled on base.
Fabulous Styles will be able to compete with these shops without a doubt! Customer service
and the quality of service would be second to none.

MARKETING PLAN 10


Customer Analysis
Most salons in the Tidewater area cater to specific demographics or ethnic groups, the
stylists on staff at Fabulous Styles, will be able to cut the hair of any person that walks through
the door regardless of ethnicity. This would without a doubt give the shop an advantage over the
competition. Customer base, hopefully, will range from local businesses executives in the
Tidewater area, to military members, some tourists and also those folks that make up the local
community.
The population of Virginia Beach is just under 438 thousand. The population is made
up of mostly Caucasian and African-Americans. Caucasians make up 67.7 percent and African-
Americans consist of 19.6 percent. Men account for 49 percent of the population and women an
astounding 51 percent. (U.S. Census Bureau, 2012) The target customer for the business would
be females and any males that would like to come in and have their hair cut.
There are over 34 thousand firms located in Virginia Beach. (U.S. Census Bureau,
2012) and we are targeting business executives as potential clients. African-Americans own 9.4
percent of the local firms, 6.5 percent are Asian owned, 2.4 percent are led by Hispanics and 49.4
percent by Caucasians. (U.S. Census Bureau, 2012) During the summer months, seasonal and
tourist shops are open due to the high volume of people that visit the beach each year.







MARKETING PLAN 11


Market-Product Focus
Marketing and Product Objectives
Fabulous Styles will provide hair styling for the entire family. This includes haircuts for
women and men, permanents, relaxers, and hair coloring, as well as haircuts for children.
Shampoos will be offered for all adult services. Service is offered on a walk-in basis or by
appointment. Fabulous Styles will emphasize a customer-centric service where the customer's
needs are always the priority.
The hair styling industry is highly fragmented with national chains such as Regis
Corporation, which operates diverse franchises catering to all the market segments, and also
including thousands of "mom and pop" salons that are very restricted in scope and services. This
makes for a highly competitive market that has low barriers to entry and exit. In addition, the
clients of hair styling have significant leverage due to the low switching costs they have. (Palo
Alto Software, 2014)
With this strategy in mind, Fabulous Styles goal is to increase the number of clients
served by at least 20% per year.
Fabulous Styles will target three different market segments:
Women will typically make up 70-75% of the clientele.
Referrals clients
Men and children
Target Markets
Fabulous Styles will target each of the three groups separately. Generally women prefer
the allure of upscale salons; however, not everyone can afford this luxury. For this reason
Fabulous Styles will provide the same quality hair styling, without the expensive price. We will

MARKETING PLAN 12


target these customers by emphasizing the sophisticated, ultra-hip styling that Fabulous Styles
can offer. (Palo Alto Software, 2014)
The secondary customer base will primarily be focused on women (re)entering the
workforce who have been victims of unfortunate circumstances and do not have the means to
pay for an expensive professional makeover. Referrals will be from the Workforce office, and
agencies like Goodwill and ARC. Women and their daughters located within the city and its
sister city, Norfolk, could reach the shop in less than 15 minutes.
The men will be targeted by offering a quick, convenient, service. Because men tend to
have shorter hair, they usually require haircuts more often. If they are getting a cut every two to
four weeks and work normal business hours, most barbers are closed when the male customers
have free time. Fabulous Styles will cater to males with evening hours, no appointments
necessary, and quick turnaround times.
Fabulous Styles will also target children by offering the kids toys to play with while they
wait and child-friendly hair stylists. Additionally, children receive a special rate reflecting the
fact that children's hair grows so fast that it can be expensive to keep up with regular cuts, as
well as the recognition that it generally takes a lot less time to cut a child's hair so it should be
inherently less expensive. (Palo Alto Software, 2014)
Points of Difference
Fabulous Styles will be considered an upscale beauty salon. We will offer a wide range
of services that include:
Hair: cuts, relaxers, perms, colors, shampoo, conditioning, curling, reconstructing, weaving, and
waving.
The points of difference characteristics that make Fabulous Styles unique relative to
its competitors fall into two important areas:
MARKETING PLAN 13


Fabulous Styles biggest advantage over rival shops will be the location of the business.
Atlantic Blvd is considered the main strip on the beach and there are numerous
restaurants, small shops and tourist attractions. Most importantly there are no other
salons on the strip. Also the shop will have a clean, safe and professional environment
that would mirror the potential customers that walk through the doors.
Giving back to the community through its secondary customer base women (re)entering
the workforce who have been victims of unfortunate circumstances and do not have the
means to pay for an expensive professional makeover.
Positioning
Currently when it comes to hair salons people are visual and go where they feel they will
get the best service based on the ethnicity of the staff. Fabulous Styles intends to break down
this barrier by hiring a diverse professional staff with the ability to style anyone that walks
through the door.











MARKETING PLAN 14


Marketing Program
Product Strategy
The objectives for the first three years of operation include:
To create a service-based salon whose goal is to exceed customer's expectations.
To increase the number of clients served by at least 20% per year through superior
performance and word-of-mouth referrals.
To develop a sustainable start-up business and also give back to the community by
providing free services to people in need
Price Strategy
Fabulous Styles objective is to make a profit and the constraints to achieving that
objective would be the other salons in the area and luring their customers into the salon to see
what we offer and allowing us to show them why we are better. Revenue growth is expected to
improve over the next five years, rising at an average annual rate of 3.3% to $49.3 billion by
2017. This will be driven by an expected increase in per capita disposable income and declining
unemployment toward the end of the five-year period. Higher disposable incomes could also
lead hair salon customers to spend more on higher-value services. (SBDCNet News Magazine,
2014)
With three stylists on staff, cost, volume, and profit were based on each stylist servicing a
minimum of six clients a day with the salon being open 6 days a week.
Because of the competitive local beauty salon market, we walk a fine line in pricing our
services. They cannot be so expensive that the customer is unwilling to try the salon, but at the
same time we must cover our operating expenses, overhead and pay for our small staff. Our
ready pool of trained cosmetology students, who will be reimbursed primarily through school
district stipends, will help keep our prices lower than our competitors.
MARKETING PLAN 15


Our services will be competitively priced with the middle-range priced salons with a
typical women's haircut and style starting at $25. Our men's and children's haircuts will be priced
at approximately $10. The prices for services such as relaxers and permanents will vary but the
average price will start at $55. Once the traveling barber is on staff those premium services will
be negotiated.
There will be a 5% discount for college students presenting a valid student ID. There
will also be a 10% military discount. Anyone sending over a client referral will receive an
additional 5% discount. Referrals will get a 5% discount off of their initial visit. We will also be
offering the free service to special referrals from service agencies.
Breakeven Analysis
We break even and make a profit the first year. Fabulous Styles achieves this through
hiring one on-staff licensed stylist and the owner/manager is a trained licensed stylist as well.
Additional stylist will be recruited trough the local cosmetology schools and community colleges
and must come highly recommended by their instructors. The stylist will earn the hours they
need to complete the program and test and receive their licenses and receive real world
experience and training in the process. This will add value to their resumes as they pursue their
careers. In addition, they will start to build a client base for the salon. This will be Fabulous
Styles second way of giving back to the local community.
MARKETING PLAN 16


Profit and Loss Statement
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $170,030 $262,080 $337,050 $404,460 $485,345
Direct Cost $26,719 $41,184 $52,965 $63,558 $76,268
Gross Margin $143,311 $220,896 $284,085 $340,902 $409,077
Gross Margin % 84% 84% 84% 84% 84%
Operating
Expenses

Salary $57,736 $118,573 $128,259 $138,891 $150,562
Employee
Related Expenses
$11,548 $23,715 $25,651 $27,778 $30,112
Marketing &
Promotions
$12,000 $18,000 $18,000 $18,000 $18,000
Rent $10,000 $12,000 $12,000 $12,000 $12,000
Utilities $4,500 $5,400 $5,400 $5,400 $5,400
Product Costs $3,240 $5,184 $4,320 $6,270 $7,524
Insurance $1,000 $1,200 $1,200 $1,200 $1,200
Furniture /
Equipment
$30,000 $0 $0 $0 $0
Total Operating
Expenses
$130,024 $184,072 $194,830 $209,539 $224,798
Operating
Income
$13,287 $36,824 $89,255 $131,363 $184,279
Income Taxes $2,657 $7,365 $17,851 $26,273 $36,856
Total Expenses $159,400 $232,621 $265,646 $299,370 $337,922
Net Profit $10,630 $29,459 $71,404 $105,090 $147,423
Net Profit / Sales 6% 11% 21% 26% 30%

MARKETING PLAN 17


Gross Margin by Year

Net Profit (or Loss) by Year







MARKETING PLAN 18


Promotion Strategy
Our marketing strategy is a simple one: satisfied clients are our best marketing tool.
When a client leaves our business with a new look, he or she is broadcasting our name and
quality to the public. Most of our clients will be referrals from existing clients. Our research has
shown that word of mouth is the best advertising for this type of business. We will, however, run
specials throughout the week. We will also ask clients for referrals, and reward them with
discounted or free services depending on the number of clients they bring. We will also offer
discounts to the new clients who have been referred.
Advertising would be done mainly in three ways. First, a local radio station offers new
businesses an outlet by letting the owner or employees guest deejay on Saturday mornings from
9 AM until noon. This could also lead to the station doing a remote from the business location.
Secondly, being a resident of the local area, the owner has established relationships with friends
and relatives that are quite well known throughout the area that could help recruit possible
customers. Lastly, I would place advertisements and flyers around the local colleges to include
Langley Air Force Base and Oceana Naval Base. After doing some research into cost of placing
ads and printing flyers, the business is set to budget $1500 a month for advertising.
Distribution Strategy
Most salons in the Hampton Roads area cater to specific demographics or ethnic groups,
the stylists on my staff will be able to style the hair of any person that seeks a style from our
salon. This would give us a leg up on most of the competition. The skill to be able to style the
hair of any person regardless of their ethnicity was ingrained in me by my sister who possesses
the skill and has a diverse and loyal client base due to her efforts. The professional environment
and the skill set of the staff should help grow and build the regular clientele base.

MARKETING PLAN 19


Financial Data and Projections
Past Sales Revenues
There is no past sales revenue data presented since this is a new venture. The focus is on
start-up and the five year projections.
Five Year Projections
Revenue Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Total Revenue $170,030 $262,080 $337,050 $404,460 $485,345
Total Direct Cost $26,719 $41,184 $52,965 $63,558 $76,268
Gross Margin $143,311 $220,896 $284,085 $340,902 $409,077
Gross Margin % 84% 84% 84% 84% 84%

Revenue by Month

About the Revenue Forecast
The sales projections start in the month of May 2014. Sales steadily increase along with
the awareness of the salon through September. In September, there is a small dip in sales then a
steady rise through the Christmas season and December projected to be the salons best month of

MARKETING PLAN 20


the year due to holiday parties and family get-togethers. There is a traditional slow season that
runs through January and February each year. The goal of Fabulous Styles salon will be to

provide quality customer service that would be second to none. Sales are estimated by assuming
that the average service will cost approximately $35 and each stylist servicing an average of 6
customers daily and the salon being open 6 days a week. There will also be 3 stylists on hand
and one receptionist. In the absence of a stylist the manager will fill-in and that is also true in the
absence of the receptionist.
Personnel Plan
Personnel Table
Year 1 Year 2 Year 3 Year 4 Year 5
Carnella $24,000 $40,003 $44,452 $49,395 $54,887
Receptionist $11,736 $17,600 $17,600 $17,600 $17,600
Stylist 1 $22,000 $35,970 $39,207 $42,736 $46,582
Student Stylist 1 $0 $0 $0 $0 $0
Student Stylist 2 $0 $0 $0 $0 $0
Make-up Artist $0 $25,000 $27,000 $29,160 $31,493
Total $57,736 $118,573 $128,259 $138,891 $150,562

About the Personnel Plan
The personnel plan will be as follows:
One manager to oversee and fill-in for all areas.
One front desk reception to greet customers, receive payments for services/products, set
appointments, answer phones, check-in clients, and maintain files of clients with data
entry.
Three stylists will perform the haircut and style services for the clients.
After the first year, we would look to hire a makeup artist to train and show proper makeup
techniques to aspiring professionals. We would also look to hire a male stylist who would also
provide traveling barber services to some of our upper echelon customers. The shops hours
MARKETING PLAN 21

would be beneficial to our working customers. The hours would provide clientele to receive a
style cut after work versus having to wait until the weekend.


Budget
Budget Table
Year 1 Year 2 Year 3 Year 4 Year 5
Operating
Expenses

Salary $57,736 $118,573 $128,259 $138,891 $150,562
Employee
Related Expenses
$11,548 $23,715 $25,651 $27,778 $30,112
Marketing &
Promotions
$12,000 $18,000 $18,000 $18,000 $18,000
Rent $10,000 $12,000 $12,000 $12,000 $12,000
Utilities $4,500 $5,400 $5,400 $5,400 $5,400
Product Costs $3,240 $5,184 $4,320 $6,270 $7,524
Insurance $1,000 $1,200 $1,200 $1,200 $1,200
Furniture /
Equipment
$30,000 $0 $0 $0 $0
Total Operating
Expenses
$130,024 $184,072 $194,830 $209,539 $224,798

MARKETING PLAN 22


Expenses by Month
















MARKETING PLAN 23


Organizational Structure
The legal form of the business would be a corporation. The limited liability company
(LLC) would best suit Fabulous Styles. The main reason to choose this form is because we
could have the benefits of a corporation and partnership while avoiding some of the restrictions
and disadvantages of other forms of ownership. Also LLCs provide more flexibility when it
comes to management and are not required to hold annual meetings and record meeting minutes.
The business could also avoid double taxation that would be imposed on most companies. LLCs
are not hampered by lots of Internal Revenue Service rules and government regulations that
apply to corporations.
Implementation
Being the new kid on the block, promotions can be a major drawing factor to the shop.
For instance, at the Grand Opening the shop would offer free style cuts to kids under the age of
10. Discount style cuts would also be offered to college students and military members with
proper ID. Also back to school, Easter and Fathers Day would be looked at for additional
special promotions.








Running head: MARKETING PLAN 1

Evaluation and Control
Monthly sales targets have been set for the stylists. Actual sales will be compared with these targets and tactical marketing programs
modified to target the customer base where we may be falling short. Sales are based on each stylists servicing six clients per day.
Appendix
Revenue Forecast
Revenue Forecast Table (With Monthly Detail)
Year 1 Y1 M1 Y1 M2 Y1 M3 Y1 M4 Y1 M5 Y1 M6 Y1 M7 Y1 M8 Y1 M9 Y1 M10 Y1 M11 Y1 M12
Total Revenue $15,120 $15,120 $13,755 $12,320 $14,420 $14,910 $15,925 $15,540 $15,120 $15,120 $11,025 $11,655
Total Direct
Cost
$2,376 $2,376 $2,162 $1,936 $2,266 $2,343 $2,502 $2,442 $2,376 $2,376 $1,733 $1,831
Gross Margin $12,744 $12,744 $11,593 $10,384 $12,154 $12,567 $13,423 $13,098 $12,744 $12,744 $9,292 $9,824
Gross Margin
%
84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84%

Year 1 Year 2 Year 3 Year 4 Year 5
Total Revenue $170,030 $262,080 $337,050 $404,460 $485,345
Total Direct Cost $26,719 $41,184 $52,965 $63,558 $76,268
Gross Margin $143,311 $220,896 $284,085 $340,902 $409,077
Gross Margin % 84% 84% 84% 84% 84%

MARKETING PLAN 2

Personnel Plan
Personnel Table (With Monthly Detail)
Year 1 Y1 M1 Y1 M2 Y1 M3 Y1 M4 Y1 M5 Y1 M6 Y1 M7 Y1 M8 Y1 M9 Y1 M10 Y1 M11 Y1 M12
Carnella $0 $0 $0 $0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Receptionist $0 $0 $0 $0 $1,467 $1,467 $1,467 $1,467 $1,467 $1,467 $1,467 $1,467
Stylist 1 $0 $0 $0 $0 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750
Student Stylist 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Student Stylist 2 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Make-up Artist $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total $0 $0 $0 $0 $7,217 $7,217 $7,217 $7,217 $7,217 $7,217 $7,217 $7,217

Year 1 Year 2 Year 3 Year 4 Year 5
Carnella $24,000 $40,003 $44,452 $49,395 $54,887
Receptionist $11,736 $17,600 $17,600 $17,600 $17,600
Stylist 1 $22,000 $35,970 $39,207 $42,736 $46,582
Student Stylist 1 $0 $0 $0 $0 $0
Student Stylist 2 $0 $0 $0 $0 $0
Make-up Artist $0 $25,000 $27,000 $29,160 $31,493
Total $57,736 $118,573 $128,259 $138,891 $150,562

MARKETING PLAN 3

Budget
Budget Table (With Monthly Detail)
Year 1 Y1 M1 Y1 M2 Y1 M3 Y1 M4 Y1 M5 Y1 M6 Y1 M7 Y1 M8 Y1 M9 Y1 M10 Y1 M11 Y1 M12
Operating
Expenses

Salary $0 $0 $0 $0 $7,217 $7,217 $7,217 $7,217 $7,217 $7,217 $7,217 $7,217
Employee
Related
Expenses
$0 $0 $0 $0 $1,443 $1,443 $1,443 $1,443 $1,444 $1,444 $1,444 $1,444
Marketing &
Promotions
$0 $0 $0 $0 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Rent $0 $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Utilities $0 $0 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450
Product Costs $0 $0 $0 $360 $360 $360 $360 $360 $360 $360 $360 $360
Insurance $0 $0 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Furniture /
Equipment
$0 $0 $0 $30,000 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating
Expenses
$0 $0 $1,550 $31,910 $12,070 $12,070 $12,070 $12,070 $12,071 $12,071 $12,071 $12,071

MARKETING PLAN 4

Year 1 Year 2 Year 3 Year 4 Year 5
Operating Expenses
Salary $57,736 $118,573 $128,259 $138,891 $150,562
Employee Related Expenses $11,548 $23,715 $25,651 $27,778 $30,112
Marketing & Promotions $12,000 $18,000 $18,000 $18,000 $18,000
Rent $10,000 $12,000 $12,000 $12,000 $12,000
Utilities $4,500 $5,400 $5,400 $5,400 $5,400
Product Costs $3,240 $5,184 $4,320 $6,270 $7,524
Insurance $1,000 $1,200 $1,200 $1,200 $1,200
Furniture / Equipment $30,000 $0 $0 $0 $0
Total Operating Expenses $130,024 $184,072 $194,830 $209,539 $224,798

MARKETING PLAN 5

Profit and Loss Statement
Profit and Loss Statement (With Monthly Detail)
Year 1 Y1 M1 Y1 M2 Y1 M3 Y1 M4 Y1 M5 Y1 M6 Y1 M7 Y1 M8 Y1 M9 Y1 M10 Y1 M11 Y1 M12
Revenue $15,120 $15,120 $13,755 $12,320 $14,420 $14,910 $15,925 $15,540 $15,120 $15,120 $11,025 $11,655
Direct Cost $2,376 $2,376 $2,162 $1,936 $2,266 $2,343 $2,502 $2,442 $2,376 $2,376 $1,733 $1,831
Gross Margin $12,744 $12,744 $11,593 $10,384 $12,154 $12,567 $13,423 $13,098 $12,744 $12,744 $9,292 $9,824
Gross Margin
%
84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84%
Operating
Expenses

Salary $0 $0 $0 $0 $7,217 $7,217 $7,217 $7,217 $7,217 $7,217 $7,217 $7,217
Employee
Related
Expenses
$0 $0 $0 $0 $1,443 $1,443 $1,443 $1,443 $1,444 $1,444 $1,444 $1,444
Marketing &
Promotions
$0 $0 $0 $0 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Rent $0 $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Utilities $0 $0 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450
Product Costs $0 $0 $0 $360 $360 $360 $360 $360 $360 $360 $360 $360
Insurance $0 $0 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Furniture /
Equipment
$0 $0 $0 $30,000 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating
Expenses
$0 $0 $1,550 $31,910 $12,070 $12,070 $12,070 $12,070 $12,071 $12,071 $12,071 $12,071
Operating
Income
$12,744 $12,744 $10,043 ($21,526) $84 $497 $1,353 $1,028 $673 $673 ($2,779) ($2,247)
Income Taxes $2,549 $2,549 $2,009 ($4,306) $17 $99 $271 $206 $134 $135 ($556) ($450)
Total Expenses $4,925 $4,925 $5,721 $29,540 $14,353 $14,512 $14,843 $14,718 $14,581 $14,582 $13,248 $13,452
Net Profit $10,195 $10,195 $8,034 ($17,220) $67 $398 $1,082 $822 $539 $538 ($2,223) ($1,797)
Net Profit /
Sales
67% 67% 58% (140%) 0% 3% 7% 5% 4% 4% (20%) (15%)
MARKETING PLAN 6


Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $170,030 $262,080 $337,050 $404,460 $485,345
Direct Cost $26,719 $41,184 $52,965 $63,558 $76,268
Gross Margin $143,311 $220,896 $284,085 $340,902 $409,077
Gross Margin % 84% 84% 84% 84% 84%
Operating Expenses
Salary $57,736 $118,573 $128,259 $138,891 $150,562
Employee Related Expenses $11,548 $23,715 $25,651 $27,778 $30,112
Marketing & Promotions $12,000 $18,000 $18,000 $18,000 $18,000
Rent $10,000 $12,000 $12,000 $12,000 $12,000
Utilities $4,500 $5,400 $5,400 $5,400 $5,400
Product Costs $3,240 $5,184 $4,320 $6,270 $7,524
Insurance $1,000 $1,200 $1,200 $1,200 $1,200
Furniture / Equipment $30,000 $0 $0 $0 $0
Total Operating Expenses $130,024 $184,072 $194,830 $209,539 $224,798
Operating Income $13,287 $36,824 $89,255 $131,363 $184,279
Income Taxes $2,657 $7,365 $17,851 $26,273 $36,856
Total Expenses $159,400 $232,621 $265,646 $299,370 $337,922
Net Profit $10,630 $29,459 $71,404 $105,090 $147,423
Net Profit / Sales 6% 11% 21% 26% 30%



Running head: MARKETING PLAN 1

References
Palo Alto Software. (2014). Beauty salon and day spa business plans. Retrieved from
http://samples.liveplan.com/?plan=hair_and_beauty_salon_business_plan&page=company_sum
mary_fc

SBDCNet News Magazine. (2014). Beauty salon 2012 trends. Retrieved from
http://www.sbdcnet.org/small-business-research-reports/beauty-salon-2012

U.S. Census Bureau. (2012, September 21). 2007 economic census. Retrieved from
http://www.census.gov/econ/census07/index.html

Zoldak, A. (2014). Beauty salon industry analysis. Retrieved from
http://www.ehow.com/about_6546178_beauty-salon-industry-analysis.html