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Beauty by Design Advertising Campaign

Introduction to MarketingIndianola High School1304 E. First Street Indianola, IA 50125Abbi Sudbrock & Madison Koonce

Table of ContentsExecutive 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 DesignBeauty 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 ObjectiveA) 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 MarketsA) 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.

BudgetOur 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.

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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

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“Our goal is to incorporate a relaxing environment into our salon while maintaining low prices with

high quality products”-Sarah Breeden, Owner

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.

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.

III. OBJECTIVE(S) OF THE CAMPAIGN

Increase Beauty by Design’s revenue by 5%

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Service PriceHaircuts $15.00 - 25.00Color/Highlight $45.00 - 100.00Body Waxing $10.00 - 15.00Hair Products $5.00 - 40.00Clothing/Accessories $30.00 - 90.00

Increase returning clientele by 75 people

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

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Individuals who look for a quick cutGeographic Des Moines, Iowa

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:

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    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

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.

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“Beauty by Design is a relaxed environment with quality hairstyles and low prices! Be sure to stop in and see us in Indianola. Mention

this ad and receive 10% off!”

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.

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:

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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.

VI. SCHEDULES OF ALL ADVERTISING PLANNED

November December

Twitter Create a free Twitter account

Send out first tweet about new products

Approximately send 12

Send out 12 tweets Tweet advertise new

merchandise Tweet about Christmas

contest

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tweets Send tweet about

Thanksgiving contesto “Tweet us your best

Thanksgiving hairstyle”

o “Tweet us your favorite holiday hair color”

Direct Mail

Create design for postcard Create a mailing list

Send design to be created into postcard

Buy postage ($1,200)

Radio Contact KGGO Schedule when radio

advertisement will air

Create jingle for radio ad Determine what needs to be

stated in advertisement

January February

Twitter Send out 12 tweets Tweet about new

hairstyle trends

Send out 12 tweets Tweet about stylist achievements Tweet about Valentine’s Day

contesto “Show us your favorite

hairstyle for date night on Valentine’s Day”

Direct Mail

Pay for postcards ($245)

Send out first round of direct mail to existing customers

Send out second round of direct mail to existing customers

Create a new mailing list of non-existing clients

Radio Pay for radio ad ($109 for every time aired)

Have advertisement played 2 times a day

Go one month without airing radio ad in order to keep costs low

VII. SCHEDULES OF ALL SALES PROMOTION ACTIVITIES PLANNED

November DecemberIndianola Schools

Select a specific sporting event

Get in contact with coach

Become a company that offers discounts on Indianola Gold Card

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Sponsor football team by paying $25 for every touchdown

Drawings Inform clients about upcoming contests in store

Post first giveaway on Facebooko Share, like, and comment

on the post to be entered to win free haircut

Begin first drawing in store to win a basket of new products

January FebruaryIndianola Schools

Sponsor basketball team by paying to have basketball posters created ($150)

Keep in contact with sporting teams to help with extra costs

Drawings Announce winners from Facebook and in store giveaways

Create a new giveaway in store, 20% off next purchase

Announce last month’s drawing winner

Create a new Facebook drawing

VIII. BUDGET

Form of Advertisement:

Description: Cost:

Twitter Tweets o Informing about new

products/company information

Free

Radio 30 second advertisement Two times a day

$109.00 -  one time

$218.00 - the whole day

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Direct Mail 2,500 postcards Postage Mailing list   

$245.00 - postcards

$1,200.00 - postage

Indianola Community Schools

Company on gold card Football game sponsor Basketball team sponsor

$25.00 -  per touchdown

$150.00 - postersDrawings Giveaways

Drawings Gain new clients

Prices vary based on giveaway

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

    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

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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.

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X. BIBLIOGRAPHY

Email

Jenkins, Bob, Mr. "Bob.jenkins@cumulus.com." 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.

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