Hi Professor,

I have one project for capstone, you just see that and need to compress as much as 40 - 50 papers. No need to discuss detailed.

1. Executive Summary

2. Industry Analysis

3. Detailed Marekting plan

4. Operations plan

5. Financials

6. References

I will attach the PDF just you can go overview and need to do 40 - 50 papers word document and need PPT 10 to 15 slides along with financials explanations.

Capstone Business Project Business Planning Seminar MGMT600 Keller Graduate School of Management Professor: Bhupinder Sran September 2013 Personal Beauty Care Beauty at Your Convenience! Submitted By: Team Mobile Beauty Salon Sadia Akhtar (Project Leader) Mohamed Bah Moxa Patel Viral Thakore Alimamy Turay Personal Beauty Care TABLE OF CONTENTS TABLE OF CONTENTS ................................................................................................................ 2 1.0 EXECUTIVE SUMMARY ................................................................................................. 6 2.0 INDUSTRY ANALYSIS .................................................................................................... 8 2.1 Introduction ........................................................................................................................... 8 2.2 Industry Review .................................................................................................................... 8 2.2.1 Growth Factors ............................................................................................................... 9 2.2.2 Future Prospects ........................................................................................................... 11 2.2.3 Sales in Industry ........................................................................................................... 12 2.3 Regulations Review & Legal Concerns .............................................................................. 12 2.3.1 Federal Regulations ...................................................................................................... 12 2.3.2 State Regulations .......................................................................................................... 13 2.4 Competitive Analysis .......................................................................................................... 14 2.5 S.W.O.T. Analysis............................................................................................................... 17 2.5.1 Strengths ....................................................................................................................... 17 2.5.2 Weaknesses ................................................................................................................... 18 2.5.3 Opportunities ................................................................................................................ 18 2.5.4 Threats .......................................................................................................................... 19 3.0 MARKETING PLAN ........................................................................................................ 21 3.1 Introduction ......................................................................................................................... 21 3.2 Service Concept................................................................................................................... 21 3.2.1 Services ......................................................................................................................... 23 3.3 Target & Market Segmentation ........................................................................................... 23 3.4 Value Proposition ................................................................................................................ 25 3.4.1 Market Research ........................................................................................................... 26 3.5 Competition ......................................................................................................................... 28 3.6 Pricing Strategy ................................................................................................................... 29 3.7 Sales & Marketing Strategy ................................................................................................ 30 3.7.1 Advertising ................................................................................................................... 31 3.7.2 Website & Social Media ............................................................................................... 31 3.7.3 Flyers & Direct Mail..................................................................................................... 32 2|Page Personal Beauty Care 3.7.4 Service or Product Promotion....................................................................................... 32 3.7.5 Add-on Services ........................................................................................................... 33 3.7.6 Referrals and Loyalty Programs ................................................................................... 33 3.7.7 Charitable Events .......................................................................................................... 33 4.0 OPERATIONS PLAN ....................................................................................................... 34 4.1 Introduction ......................................................................................................................... 34 4.2 Day-to-Day Operations ....................................................................................................... 35 4.2.1 Operation Locations, Days & Hours ............................................................................ 35 4.2.2 Operations Schedule ..................................................................................................... 36 4.2.3 Daily Activities ............................................................................................................. 38 4.3 Human Resources ................................................................................................................ 39 4.3.1 Recruitment .................................................................................................................. 39 4.3.2 Roles & Responsibilities .............................................................................................. 41 4.3.3 Compensation ............................................................................................................... 41 4.3.4 Benefits ......................................................................................................................... 42 4.4 Facilities & Equipment Plan ............................................................................................... 43 4.4.1 Facility .......................................................................................................................... 43 4.4.2 Equipment ..................................................................................................................... 44 4.4.3 Start-Up & Expansion Timelines ................................................................................. 44 4.5 Technology Plan .................................................................................................................. 45 4.5.1 Website Details ............................................................................................................. 46 4.6 Organization Chart .............................................................................................................. 47 4.7 Management Team .............................................................................................................. 49 4.7.1 President ....................................................................................................................... 49 4.7.2 Vice President & Director of Operations .................................................................... 49 4.7.3 Director of Marketing ................................................................................................... 50 4.7.4 Director of Finance ....................................................................................................... 50 4.7.5 Director of Information Technology & Finance Officer .............................................. 51 4.8 Management Team Gaps ..................................................................................................... 51 5.0 FINANCIAL PLAN................................................................................................................ 53 5.1 Start-Up Funding ................................................................................................................. 53 3|Page Personal Beauty Care 5.2 Use of Funds........................................................................................................................ 54 5.3 Expenses .............................................................................................................................. 55 5.4 Sector/Industry Analysis ..................................................................................................... 57 5.5 Sales Forecast ...................................................................................................................... 59 5.6 Cash Flow ............................................................................................................................ 61 5.7 Staffing Expenses ................................................................................................................ 64 5.8 Balance Sheet ...................................................................................................................... 66 5.9 Income Statement ................................................................................................................ 66 5.10 Break Even Analysis ......................................................................................................... 67 5.11 Valuation after Five Years ................................................................................................ 69 5.12 Exit Strategy ...................................................................................................................... 69 5.13 Return on Investment ........................................................................................................ 70 6.0 REFERENCES ....................................................................................................................... 72 7.0 FIGURES & TABLES CONTENTS ...................................................................................... 75 7.1 Figures ................................................................................................................................. 75 7.2 Tables .................................................................................................................................. 75 8.0 APPENDIX A ......................................................................................................................... 76 8.1 Market Research Questionnaire .......................................................................................... 76 9.0 APPENDIX B ......................................................................................................................... 80 9.1 Marketing Budget ................................................................................................................ 80 10.0 APPENDIX C ....................................................................................................................... 81 10.1 Marketing Flyer A ............................................................................................................. 81 10.2 Marketing Flyer B ............................................................................................................. 82 11.0 APPENDIX D ....................................................................................................................... 83 11.1 Financial Statements ......................................................................................................... 83 11.1.1 Income Statement ....................................................................................................... 83 11.1.2 Five Year Income Statement ...................................................................................... 84 11.1.3 Five Year Cash Flow Statement ................................................................................. 85 11.1.4 Industry Benchmark Comparison ............................................................................... 86 11.1.5 Year One By Quarter .................................................................................................. 87 11.1.6 Breakeven Analysis .................................................................................................... 88 4|Page Personal Beauty Care 11.1.7 Balance Sheet ............................................................................................................. 89 11.1.8 Five Year Projected Balance Sheets ........................................................................... 90 11.2 Supporting Financial Statements....................................................................................... 91 11.2.1 Revenue & Cost Plan .................................................................................................. 91 11.2.2 Staffing Plan ............................................................................................................... 92 11.2.3 Marketing Plan ........................................................................................................... 93 11.2.4 Other Expenses Plan ................................................................................................... 94 11.2.5 Capital Expenditure Plan ............................................................................................ 95 11.2.6 Year One Assumptions ............................................................................................... 96 11.2.7 Five Year Assumptions .............................................................................................. 97 5|Page Personal Beauty Care 1.0 EXECUTIVE SUMMARY Personal Beauty Care, LLC. is a mobile beauty services company that will primarily be running its operations in Franklin Township, Somerset County, NJ. Personal grooming being an inherent individual need forms an ever-present market scope and business opportunity. Catering to this specific need, Personal Beauty Care provides the customers the convenience to be served at their own individual place instead of them having to commute to a locality for the purpose. The personal and convenient way of the mobile salon cosmetologists going to the client makes Personal Beauty Care's service model unique and stand alone. The elderly population in the target market area will form the general clientele for the company's services. However, in the long run the company intends to expand into serving clients from younger age groups also. The company intends to work through contracts with the Adult Day Care centers in the community. Serving the beauty needs of the aged population has the connotation of caring for their individualized needs with a reassurance that they are a viable and relevant society segment. Their outlook and appearance as much as might be important to themselves in person, is simply equally in need of being served promptly as any younger person's. Given the age factor involved, the certain mobility limitations that factor in among the elderly are taken into consideration while designing the beauty services for their sake. Hence, client's convenience forms the central core of the company's service model. Additionally, working on per appointment basis, the company's cosmetologists will be available to serve the clients at their convenience in accordance with their individual and specific life schedules. In the long run, Personal Beauty Care intends to expand its operations to the neighboring NJ counties through effective marketing and campaigning. For this purpose, the company's service vehicles called beauty vans will occasionally be parked at certain public venues as shopping malls, regional festivals etc. for offering promotional services to the public in general. 6|Page Personal Beauty Care Such public visitations are going to serve the purpose of establishing a distinguished brand image and recognition for the company. The most significant purpose being served through such occasional public appearances would be indirectly forming the societal connect, the elderly in general are in want of establishing with the young generation. The same company hence, being running its promotional campaigning at public venues, dealing with the robust, younger clients will be offering its services, reaching out to the elderly at their specific localities, carrying an anticipated greater appeal for them. The financial plan for Personal Beauty Care has details for the company's prospective profit making. The company's value at the end of five year period will be $195,249. The company would reach its break-even point in year 2 of its operations. Onward from the point till year 5 an annual 3% growth rate is expected to be observed. The exit strategy for the company would be to sell it out to a prospective buyer at the end of year 5. Any attained profits will be equally distributed at 20% share each among the founding members. If the company has any debt or other pending financial liabilities, the founders have agreed upon sharing the responsibility equally among themselves to pay-off the debt. In view of the being established as a service company, customer relationship forms the central core for Personal Beauty Care's prospective financial success and sound future expansion. Through the five years business planning as narrated in the detailed marketing, operations and finance sections ahead, customer feedback and responses reflective of expected market demand and needed beauty service trends will basically direct the way for the company's future growth and expansion. 7|Page Personal Beauty Care 2.0 INDUSTRY ANALYSIS 2.1 Introduction The Hair, Nail and Skin Care Services industry (NAICS Code 81211) is a huge service industry which the company, Personal Beauty Care, falls under. Many related business venues are reflective of its commercial significance including the Entertainment and Advertising industry. Along with the industry overview, there are many critical factors that were taken into consideration when deciding on the finalized business for the team. The focus has been on collecting all relevant information pertaining to the industry as a whole. In addition, through data screening, certain hard facts about the industry such as the size of industry in units and dollars, the growth rate of the industry, future prospects of the industry, major competitors of the industry, and detailed information on government regulations were taken into consideration. The purpose of the industry analysis is to give an overview of the size and scope of the hair, nail and skin care service industry within USA. 2.2 Industry Review The hair, nail and skin care service industry has an enormous amount of businesses already developed in it but it has very few mobile salon services. It has stood by unlimited prospects for expansion and optimal revenue generation through all eras in known history. Tracing the origin of the industry may still remain inconclusive based on the undisputed human inclination toward fineries in outlook in every region and culture. As for USA, the industry size is reflected through tracing the following facts current as of year 2012- 13 from IbisWorld: The hair, nail and skin care industry has generated about $48.1 billion in revenues and has about 1,237,691 business units (Lerman, Industry at a Glance, 2013). 8|Page Personal Beauty Care 2.2.1 Growth Factors The growth rate for the beauty industry in particular is directly correlated to trends in the over-all national economy. Much more in comparison as to certain other market prospects' determinants as location, demographics and psychographics. The revenue growth of the industry is most dependent on per capita disposable income. The \"per capita disposable income is expected to increase during 2013, which is a potential opportunity for the industry\" (Lerman, Industry Performance, 2013). The revenue growth is dependent on the per capita disposable income because when it rises, clients have more money that they could spend on luxury services such as haircuts, hair coloring, manicures, pedicures, facials, and massages. Some pertinent facts can be traced from the following annual growth rate comparison (Figure 2.0) below. According to the chart, the annual growth rate from 2008-2013 is 2.1% and the prospected annual growth rate from 2013-2018 is 3.5% (Lerman, Industry at a Glance, 2013). Figure 2.0: Growth Rate Comparison Source: Lerman, Industry at a Glance, 2013 9|Page Personal Beauty Care The growth of the industry is driven by the various demographic factors taken into consideration together. It also depends on the expertise of the service that is being provided as well as the marketing skills which will make the business known. Personal Beauty Care will compete successfully by offering superior services and targeting a location that is inclined to use services. Along with the growth being dependent on the service, the hair, nail and skin care products generate revenues for the industry. Generally, these types of products provide between \"5 to 15 percent of revenue [where] gross margins are higher for hair care products than for services\" (Hoover's Inc., 2013). Figure 2.1: Industry Projection Source: Lerman, Hair & Nail Salons in the US, 2013 The projection above (Figure 2.1) narrates the Hair, Nail & Skin Care Industry in USA, as being interdependent on and also impacting various accompanying business sectors. The economic growth and development within this industry thus has consequent impact on the various relative national and international stakeholders and key players. Being considered among rather luxury amenities, beauty care services are in general perceived as being related to the 10 | P a g e Personal Beauty Care capability to pay-out related expenses on an individual client's part. As much as a person can be considered economically sound, so is the possibility of the industry as a whole considering him or her to be a viable client. Revenue generation for the over-all industry is in direct correlation to the mentioned matrix. The most prominent demonstration of the parallel ebb and flow of the beauty industry prospects are correlated to the general economy's outlook within the US can be observed during the most recent recession years. The year 2008-2009 reflects a sharp decline in the industry's growth prospects -0.6%. But, as the economy recovered, alongside did the industry in general, so that in 2010, a rebound in growth rate equivalent to 4.6% c was observed (Lerman, Hair & Nail Salons in the US, 2013). 2.2.2 Future Prospects Following the recent recession, revenue percentages have dipped for the salon service industry like many others. However, in line with relative national economy improvement in the current year 2013, the industry promises bright future growth prospects. According to IBIS World, unemployment rate is to decline to 6.1% by 2018 (Lerman, Industry at a Glance, 2013). So, consumers are most likely to spend more on high-value discretionary salon services. Thus, the industry promises bright future growth and expansion prospects. The next five year growth at a rate of 3.5% is expected to generate revenue of $57.2 billion (Lerman, Industry Outlook, 2013). In addition certain newer trends in the industry are focused upon differentiations as anti-aging treatments and blow-dry bars. Following the role and consequent demands of a consumer in face of a fast-paced modern life, the mentioned outlook and grooming trends carry a significant appeal. Newer businesses in the industry are thus more focused in projecting these to ensure greater profits. 11 | P a g e Personal Beauty Care 2.2.3 Sales in Industry In line, as well, with the over-all economic scenario for the US economy, the average gross and net profit margins for the industry reflect relative fluctuations. According to IBIS World, for this industry, the profit margins are most likely to make up 5.8% of revenue for the industry. Compared to 2008, that is a significant increase from 3.9% of revenue from that year. The expected increase in profit margin is specifically the more relevant in relation to the minimum level it was seen to touch during the earlier phase of the recent economic downturn. In 2009, the average profit margins for the industry fell to a low of 1.9% (Lerman, Competitive Landscape, 2013). 2.3 Regulations Review & Legal Concerns Some fundamental regulations as would apply to Personal Beauty Care being a start-up company include both NJ state specific as well as the US government regulations nation-wide. In addition, industry specific regulations have to be taken into consideration. A brief over-view of the mentioned areas of legal considerations follows: 2.3.1 Federal Regulations Any business in the Hair, Nail, and Skin Care Industry is required to comply with the federal regulations that the business falls under. Personal Beauty Care will need to comply with the advertising and consumer protection laws. The business should provide advertisements that are not misleading or deceiving to its customers. Businesses will also need to follow zoning and real estate restrictions. Since Personal Beauty Care will be maintaining all of its business virtually, it will not be required to get zoning permits. Another law Personal Beauty Care will need to comply with is the Health and Safety in Employment Act of 1992. This law requires the business to be aware of any workplace hazards such as exposure to chemicals that could cause harm to the business employees or the customers. Public health legislation requires businesses to 12 | P a g e Personal Beauty Care follow strict guidelines in regards to the cleanliness of the business place, sterilization and usage of equipment, and the personal hygiene of staff members. Lastly, the business should only sell and use products which are approved by the Food and Drug Administration (Lerman, Operating Conditions, 2013). 2.3.2 State Regulations Personal Beauty Care will be registered as an LLC (Limited Liability Company) in NJ State. The 'LLC.' form of business has the advantage of having a specific leverage which makes the company, rather than the owners liable in the event of an unforeseen legal hardship for the business. Additionally, they are spared from double taxation as the owner's personal taxes are where both earnings and losses are reported (State of New Jersey, 2013). The company has to be registered with the NJ state for authentication and taxation purpose. The filing process also called formation is a requisite legal procedure for the state and federal taxation compliance as well. In this regard, the company is required to have a registered business address so that, at the provided address, all relative business mail and official documentation can be directed and correspondence is accomplished. A registered company's agent name also needs to be provided to the state's company registration authority. The business is also required to obtain an FEIN (Federal Employee Identification Number) in particular for compliance with the state's tax regulations (Division of Revenue and Enterprise Services, 2013). Additionally, Personal Beauty Care's service vehicles i.e. beauty vans have to comply with the licensing requirements as being commercial vehicles. The respective parking and zoning requisitions apply accordingly. Employee Licensing & Service Regulations Personal Beauty Care intends to hire licensed beauty service professionals. The NJ state authenticated beauty school graduated cosmetologists are the preferred employees. The recent emphasis on eco-friendly and natural ingredients to be used in make-up products and services, 13 | P a g e Personal Beauty Care also, is a major strategic guideline for the company in making its services and products offerings to clients. Any new and existing regulations in this regard at both the state and national level hence form a part of the company's legal considerations. Employee Benefits Employee compensation plans and offered benefits are based fundamentally on NJ state legal requisitions. The average salary per hour industry rate is observed in finalizing the compensation plans. In the initial years of the company's operations, Personal Beauty Care intends to limit itself to only offering its employees the mandatory benefits required by NJ and Federal laws. Additional incentives might be offered as the business progresses and develops in the oncoming years. Employee & Client's Liability Insurance Personal Beauty Care being a service company has a peculiar requisition to abide by the liability and insurance coverage NJ state regulations require. In the event of an injury or accident to its clients or employees, the company is expected to be capable of withstanding any financial or other legal liability. In particular, employee safety becomes an added concern since the business service model requires the company's employed cosmetologists to make individualized home-visits. To address the concern, the company has decided upon conducting prospective clients' back-ground checks within its target market location, the Franklin Township area to discern the probability of its cosmetologists' safety. 2.4 Competitive Analysis The beauty industry scenario is a particularly hard one in view of extreme competition. With low barriers to entry and numerous innovations regarding products and services that are continually occurring, the competition within the industry is also increasing. Competition is based on price, service quality, location and customer loyalty within the industry as compared 14 | P a g e Personal Beauty Care among different salons (Lerman, Competitive Landscape, 2013). As for Hair, Nail & Skin Care Service in the US, the four major competitors followed by the respective market share are mentioned in the table (Table 2.0) below: Table 2.0: Major Competitors Competition Market Share Regis Corporation 3.9% JC Penny Company Inc. 1.0% Ratner Companies 1.0% Sports Clips Inc. 0.6% Source: Lerman, Major Companies, 2013 All of these competitors have the strength of being located in high traffic locations such as malls, department stores, and shopping centers. The weakness they have is that they are stationed in one location whereas Personal Beauty Care will be mobile so it will be able to take on a wider range of target market landscape. Personal Beauty Care will use its mobility to its fullest advantage to take a percentage of the competitor's share. It will be giving customers the convenience of going to their homes to provide quality services right at their doorsteps. Being that there are no mobile salons in the current market of Franklin Township, the competitors will most likely try to take the idea and create a business similar to it. To address this concern Personal Beauty Care intends to focus greatly in establishing a loyal customer base to ensure consistent revenue generation. The maximum number of these competitors are within the Mid-Atlantic region; \"the region holds nearly a quarter of the nation's salons, which far exceeds its share of the population\" (Lerman, Products & Markets, 2013). The target business location of Personal Beauty Care is Franklin Township, Somerset County, NJ. This competitor landscape has many stationary salons but does not have any mobile salons. Some of the stationary salons in Franklin Township include Raymond Salon N Spa, UFO Salon and Spa, Great Clips of Franklin, and Total Image Salon. 15 | P a g e Personal Beauty Care Stationary salons in Franklin Township have discount offerings for senior citizens which Personal Beauty Care will also use as a competitive pricing tool. Additional information regarding the stationary salons will be further detailed in the Marketing Plan. Table 2.1: Competitor Analysis Personal Beauty Care Raymond Salon N Spa UFO Salon & Spa Hair Services Price ($) Price ($) Price ($) Shampoo & Cut (Men) 20 27 30 Shampoo & Cut (Women) 25 30 38 Shampoo & Cut (Children) 10 20 15 Shampoo & Cut (Seniors) 15 N/A N/A Blow Dry & Styling 25 Extra 36 Extra 24 Extra Hair color 35 & up 50 & up 44 Perms 50 & up 63 & up N/A Relaxers 40 & up N/A 65 Nail Services Manicure Spa Manicure Full Acrylic Set Pedicure Spa Pedicure Manicure & Pedicure Spa Manicure & Pedicure 15 20 45 25 30 35 45 15 20 65 25 35 N/A N/A Facial Services Basic Facial 60 Min - 50 60 Min - 75 Acne Facial 90 Min - 70 90 Min - 90 Anti-Aging Facial 90 Min - 90 90 Min - 110 Eye Treatment 30 Min - 30 30 Min - 40 Facial & Eye Treatment 90 Min - 70 75 Min - 100 Source: Raymond Salon N Spa, 2013 UFO and Salon and Spa, 2013 19 N/A 72 43 51 N/A N/A 60 Min - 65 90 Min - 84 60 Min - 75 N/A N/A The above chart (Table 2.1) describes the competitor analysis of the pricing of services among three beauty salon businesses in Franklin Township, NJ. There are many differences in the range of price for hair, nail, and skin care services. For example, a hair cut costs less in Personal Beauty Care than in Raymond Salon N Spa and UFO Salon & Spa. The same goes for 16 | P a g e Personal Beauty Care manicures and pedicures as well as facials. This chart shows how Personal Beauty Care will charge a significantly lower price for the services it provides in comparison to other salons in a nearby location. 2.5 S.W.O.T. Analysis Personal Beauty Care will be a start-up company having the following strategic business considerations. The below table will depict the strengths, weaknesses, opportunities, and threats of the business. Table 2.2: SWOT Analysis Strengths (S) Customer convenience provision Unique (mobile) service model Broad customer base catering to all age groups Competitive pricing offering potential Opportunities (O) Alternative geographic positioning options Brand positioning at public venues Service options modifications in view of customer's preferences Expansion options into various market segments Weaknesses (W) Customer's business model acceptance hurdle Service equipment transport difficulty Brand identification and customer connection resistance Limited service offering range Threats (T) Huge competition Low barriers to entry relative to business model follow-up Vulnerable professional service delivery through on-site employees Employee protection issues 2.5.1 Strengths Personal Beauty Care aims at delivering high quality services in view of providing the customers maximum convenience. Being a mobile service model, the company aims to approach the customer at his or her doorstep for delivering the promised services. The unique business service model for Personal Beauty Care is going to attract greater number of clients in face of all the stationary salons in the market. Being a novel idea in its right, it is bound to claim greater appeal. Personal Beauty Care has as its targeted customer base, people from all age groups. This 17 | P a g e Personal Beauty Care fact further enhances the business opportunity potential involved. Though the company is targeting the elderly primarily in all service offerings, peculiar promotion and marketing endeavors are expected to result in attracting younger population segments also. Personal Beauty Care aims to offer highly competitive pricing strategy in face of all the surrounding salons in the area. Beginning with a limited range of offered services only, the company expects to expand gradually depending fundamentally on being able to achieve positive customer reviews and increased market demand verification on basis of customer feedback data. 2.5.2 Weaknesses The mobile beauty salon being rather a unique business model in its own right might rather be prone to a delayed service concept acceptance on part of clients. Specifically, the service being inclusive of visiting people in their homes, the business might encounter initial resistance prior to being approved. The specific mobile business service model requires an element of difficulty in equipment transportation associated with it. Since a wide range of services require usage of differentiated equipment, the delivery of service is prone to incur not only additional costs but also greater time consumption. In addition, being a start-up company, Personal Beauty Care might face some initial resistance in attaining the needed brand recognition and client's trust. With specific reference to the beauty service industry, the clients are expected to have higher service requirements and sensitivity bottom lines involved. Consequently, Personal Beauty Care as a start-up business has the intention to limit its services offering in view of maintaining higher quality service delivery and also cost efficiency. However, the smaller number of offered services might as well impact the appeal of the business for the client. 2.5.3 Opportunities Personal Beauty Care being a mobile business has the potential to serve its clients at multiple locations as per appointment. Also, though the business has an initial geographic area 18 | P a g e Personal Beauty Care specification for operations, the locality selection can as well be expanded upon and transferred in view of customer feedback and the consequent market demand. As mentioned earlier, Personal Beauty Care aims to attain maximum market recognition through focused marketing efforts inclusive of promotional public service offerings on various cultural and regional events. It is expected that such demonstrations are going to serve the purpose of generating maximum market referrals. Depending on the customer feedback attained through various channels, Personal Beauty Care intends to revamp its service offering options continually. Meeting specific customer demands in an increasingly competitive beauty services market is bound to enhance the business prospects for the company. Personal Beauty Care in the long-run aims to deliver services to people from all age groups. Also, with its expansion strategy being directly commensurate with customer demand, the company is focused upon following a business expansion strategy following in line with the latest and popular trends in the service arena. 2.5.4 Threats Regarding Personal Beauty Care service model, the imminent threat is quite a huge number of stationary salons being present within the area of the target market, Franklin Township, NJ. In general, the overall beauty service landscape has intense competition which makes service offerings and pricing extremely tough. Being a mobile service business does not exempt Personal Beauty Care from being expectant of facing competition from the new entrants in the industry and the surrounding landscape. In particular with customized beauty service vehicles being already available in the market, the business model is prone to experience being soon faced with numerous competitors. Personal Beauty Care has an extreme degree of employee service delivery standard dependence and customer relationship limitations to take into account in order to build upon and expand its' business further. In line with a mobile service delivery model, Personal Beauty Care employed cosmetologists have to serve the client, at his or 19 | P a g e Personal Beauty Care her specific place reaching out to the individual client. Being an individual visitor to the client's residence, the company's employee is also exposed to significant risk. Thus, the service model has potential concerns in ensuring a requirement to conduct significant background checks for the community in which the Personal Beauty Care will be running its operations. 20 | P a g e Personal Beauty Care 3.0 MARKETING PLAN 3.1 Introduction Marketing Plan is an essential part of any business. It sets the direction a company wants to go in terms of marketing and increasing customers. It is thus a work in progress that needs to be revisited, adjusted and adhered to. Through the conduction of market research in the Franklin Township, Somerset County, New Jersey, Personal Beauty Care asserts a niche of providing quality personal services to individuals and families in such community. The company intends to develop a customer base in this community by marketing unique services to all age groups and gender with the latest beauty trends and styles. The company will make its products available to these target markets by utilizing effective target media such as its website, social networking like Facebook, flyers, bill boards, direct mail etc. In comparing Personal Beauty Care to its competitors, the company will provide unique benefits to individuals and families including convenience, quality services and products, timesavings, privacy and certified cosmetologists that are trained in the latest cosmetology service techniques. 3.2 Service Concept Personal Beauty Care, LLC is a beauty and grooming company with the aim of serving clients at their doorsteps. The company will focus on providing services to its clients with maximum convenience. Primarily, the offered hair, nail and skin care services are designed to effectively care for the personalized grooming of the elderly by serving them at their homes. The business will do this by going to the customers instead of them having to commute to any salon for any purpose. These specialized services will also cater to both males and females and 21 | P a g e Personal Beauty Care different age groups. The company's beauty vans carry specialized equipment and trained cosmetologists to serve the clients by visiting their location on per appointment basis. Personal Beauty Care's service concept is different in that it will focus on providing quality services to the customer with maximum convenience and ensuring that the customer enjoys the luxury of being pampered. Essentially, the customer will receive the amenity of receiving their grooming needs serviced within the privacy of his or her own home. The primary target market for the company's services is the senior citizens of Franklin Township, Somerset, New Jersey. Thus the niche market segment for this type of service business is centered on the personal grooming needs of the elderly. There would be a focus as well on training the service professionals to be particularly sensitive to the emotional needs of seniors. This would require the Personal Beauty Care's employed cosmetologists to be far more attentive and demonstrate positive attitudes towards the seniors and other age groups, through modifying their professional interactions with the clients accordingly. Among other differentiating factors that are included, the clients will also have a choice of preferring organic hair, nail and skin care products along with make-up accessories and relative services. This approach is based specifically upon the professional service standards as per individual skin needs and hair texture of every client. Alongside, the company aims to practice a competitive pricing model in order to secure maximum revenues for the business. For the customer-centered service idea, the company intends to work on a contract basis with the adults day care facilities in Franklin Township based on scheduled appointments and in collaboration with the relative administrative personnel. The company will introduce the service concept which will be part of the routine activities that will be scheduled twice a month. 22 | P a g e Personal Beauty Care 3.2.1 Services The manicure and pedicure services will focus on care and treatments of the feet and hands which includes removal of corns, trimming of toe and finger nails and checking for any fungal infections in the process. These services will make the clients' nails and hands look beautiful, and regular maintenance can enhance steady growth and healthy looking hands and feet. The haircuts will give the clients a beautiful and a professional look at all times. The certified and experienced stylists will ensure that the customers receive the best style and quality products that will make the hair grow well and healthy if done on regular basis. The basic type of facial service consists of cleansing and moisturizing the skin. This service therefore restores health and vitality to the skin, reduces skin dryness and sun damage during extreme climates. In a professional manner, the cosmetologists will provide facial service in a relaxing atmosphere and quality treatments by choosing the ingredients that are best for the clients' skin type concerns and preferences taking in view the individual skin sensitivity factor. In rendering the services, organic products and natural products will be used in order to reveal true and long lasting beauty. Apparently, the health of the company's clients and workers is very important to the company. Therefore, the company will be very selective on the products to be used on clients such as Aubrey, Aveda, Eminence, Redken, L'Oreal, Pureology to name a few cosmetics brands in addition to beauty service combs, brushes, mirrors etc. from some of the same suppliers. 3.3 Target & Market Segmentation The immediate geographic target market is Franklin Township in Somerset, New Jersey with a total population of 22,083 people; 10,543 males and 11,540 females (U.S. Census, 2013). Compared with other townships in the Somerset County such as Somerville, Hillsborough, Manville, Bound Brook etc., Franklin Township has the highest population. 23 | P a g e Personal Beauty Care While the salon business overall may seem to draw in a diverse crowd from young women, men and children, the company will develop a niche that will primarily target the elderly. The age range for the elderly population in Franklin Township consists of at least 50 years of age which comprises 7,780 (Table 3.0). This segment forms 35.4% of the township's population. From the market survey conducted at the Township of Franklin Senior Community Center, Demott Ln, Somerset, New Jersey, the senior citizens demonstrated high interest on this mobile business. Currently, the township is dominated with the traditional stationary salons. The population with at least 15 years old will be the secondary target market, and it consists of 18,323 people, which form 82.9% of the township's population (Table 3.0). In the future, all age groups will also be targeted depending on the need of the market and customer feedback. The estimated household income for the targeted geographic area in 2011 was $91,234, which was higher than the estimated household income for the state of New Jersey. Also, in 2011, the per capita income in Somerset Township was $39,752 (U.S. Census, 2013). Most of these customers are residents of Franklin Township and are comprised of employees who work in public and private organizations, retirees, university students and other society segments. It is also important to note that the other adult day care facilities and senior citizens homes will as well be targeted. It is anticipated that these customers will avail Personal Beauty Care services during a given weekday, within both morning and evening time periods, which are considered to have more demand comparatively. These customers will also be targeted during seasonal time durations especially during spring and summer which are dominated with weddings and other social activities. 24 | P a g e Personal Beauty Care The following table delineates the respective age group segmentations within the population of the target location: Table 3.0: Franklin Township Age Groups Age Group 0 - 9 Years Population 2,639 Percentage 12% 10-19 Years 2,233 10.1% 20 - 29 Years 2,746 12.4% 30 - 39 Years 3,490 15.8% 40 - 49 Years 3,195 14.5% 50 - 59 Years 3,155 14.3% 60 + Years 4,625 21.1% Total 22,083 100% Some of the Adult Day Care Centers that Personal Beauty Care will serve in Franklin Township include Forever Young Adult Medical, Spring Hills Somerset, Rainbow Healthcare and Quail Brook Senior Center. Personal Beauty Care's offered services within these senior citizen facilities is going to be designed based on conducted market research. The mentioned facilities in addition to others within the township are going to serve as promotional campaigning venues for the company also. Based on the customer feedback and generated referrals from these centers, Personal Beauty Care's strategic business decisions will be made impacting the growth and expansion of the company directly. 3.4 Value Proposition In order to ensure that there is demand for the services and products, Personal Beauty Care will focus on creating value for its customers. This value creation will be based on the quality services rendered by the competent and experienced cosmetologist at customers' homes or locations, and selling of organic and all-natural hair products that are not experimented on animals. Generally, in the current times customers prefer salons that offer organic and natural hair products and accessories. 25 | P a g e Personal Beauty Care The company will be uniquely positioned to deliver value to its customers at their homes in a relaxing, friendly, convenient and comfortable atmosphere. In order to deliver on this value proposition, the company will foster an excellent customer contact and relationship. Also, the company will focus on strengthening the trust of its customers, and providing not only quality services, but share information with the clients that will assist in enhancing their beauty and healthy lifestyle. The company's competitive advantage is its mobile operational capability and serving customers within their premises. The company's services will make people feel good or delighted and thus delivering a meaningful experience. With these unique services rendered in the target location, Personal Beauty Care intends to eventually position itself in the next five years as a top quality and exclusive customers' grooming salon in the central New Jersey Community. Considering that none of the competitors offer these range of mobile services offered by Personal Beauty Care, the company will be able to serve the Township of Franklin community by providing quality services not currently being provided in customers' homes. Simply noted, the prime benefit which will be different from traditional salons would be availability of quality salon services at call, in urban as well as in remote locations. 3.4.1 Market Research The market research (based on interviews and questionnaires) conducted from a randomly selected sample size of 50 people, reveals that no other established salon in the Franklin Township community offers door-to-door services. Such research was focused on demographic information and preferences. The close ended questionnaire asked about the clients' salon service providers and other related questions; so as to be in position to monitor the company's marketing of its services. In addition, the questionnaire was completed by senior citizens and other age groups, both males and females. The respondents were people in the 26 | P a g e Personal Beauty Care Township of Franklin Senior Community Center, and in customers' homes and work places. The purpose of the survey was to determine if a market 'need' gap exists and how to fill such a gap through the mobile salon services. Thus the research provided the opportunity to educate people about the mobile salon and discovered people in the Franklin Township that prefer such services. From the market survey analysis (Figure 3.0), 75% demonstrated interest in the mobile salon business. Figure 3.0: Home Service Preference 25% Yes No 75% Also, the market survey revealed that the potential customers placed more value on quality treatment, followed by price and convenience in making their choices for salon services. (Figure 3.1) 27 | P a g e Personal Beauty Care Figure 3.1: Service Choice Preference 60% 50% 40% 30% Series1 20% 10% 0% Convenience Pricing Discount Quality Treatment Feasibility Range of services Others 3.5 Competition There are many stationary salon competitors in the target market, but their in-store operations indicate that Personal Beauty Care will have a competitive edge over the rest.. Below is a list of some of the stationary salons in Franklin Township (Table 3.1): Table 3.1: Stationary Salons in Franklin Township, NJ Stationary Salons in Franklin Township, NJ Birah Hair Braiding Salon Royal Spa De Paolo Beauty Salon Salon De Taj Elite Hair Salon Salon Simran Friends Somerset Plaza Unisex Great Clips of Franklin Sport Clips Hair Plaza Studio D Mane Apple Hair Salon SuperCuts Nail Studio Plus Total Image Salon Perfect Image Ufo Salon & Spa Raymond Salon N Spa Vie Voo Nails Right Look Hair Studio Vito's Head Shoppe Rjais Beauty Salon Wigg Out Unisex Salon Source: New Jersey On-Line LLC., 2013 Personal Beauty Care will have a competitive advantage over these stationary salon competitors in the Franklin Township community as being a mobile salon. The services will be 28 | P a g e Personal Beauty Care provided at customers' homes or within their immediate premises. Even though the salon will not offer the lowest price, but it will offer greater value to families and individuals in a convenient and friendly manner, with organic and natural hair, skin and nail products. The prices will be affordable to those clients who find it hard to pay for rather high-end luxury salons without any compromise on quality. To further gain and maintain a competitive advantage, Personal Beauty Care will ensure that: The highly specialized service professionals meet the customer's expectations each time the service is delivered. An individualized and specialized customer experience is provided to each client. High level of personalized customer interaction is maintained by all staff members. Service offerings in accordance to customer feedback and market demand are regularly updated. Clients receive free salon products for trials. 3.6 Pricing Strategy Following the competitive pricing mantra, Personal Beauty Care will introduce and maintain a pricing policy that is not the lowest or the highest in the market. The company will set reasonable price limits that will appeal to the target market and generate revenue aimed at maximizing profit. Therefore, Personal Beauty Care intends to use the following price list (Table 3.2): 29 | P a g e Personal Beauty Care Table 3.2: Personal Beauty Care Service Price List Hair Services Shampoo & Haircut (Men) Shampoo & Haircut (Women) - Subject to change per hair length Shampoo & Haircut (Children) Shampoo & Haircut (Seniors) Blow Dry Styling Hair color Perms Relaxers Price ($) $ 20 $ 25 $ 10 $ 15 $ 5 Extra $ 20 Extra $ 35 & up $ 50 & up $ 40 & up Nail Services Manicure Spa Manicure Full Acrylic Set Pedicure Spa Pedicure Manicure & Pedicure Spa Manicure & Pedicure Price ($) $ 15 $ 20 $ 45 $ 25 $ 30 $ 35 $ 45 Facial Services Basic Facial (60 Minutes) Acne Facial (90 Minutes) Anti-Aging Facial (90 Minutes) Eye Treatment (30 Minutes) Facial & Eye Treatment (90 Minutes) Price ($) $ 50 $ 70 $ 90 $ 30 $ 70 Other Services Up-Dos, Make-Up, Glitter Tattoos, Henna Designs Prices Vary Personal Beauty Care prices are relatively lower than its competitors to make it more affordable for the elderly as well as the non-elderly population. In some of the listed salons, their prices are relatively higher compared to the price list for similar services offered by Personal Beauty Care. For instance, Salon D'taj charges $31 for haircuts, $28 for pedicure and $15 for manicure (Centzy Inc., 2013). The price for the facial service ranges from $65 to $70. 3.7 Sales & Marketing Strategy Personal Beauty Care will formulate and utilize marketing strategy that will increase sales and profit. The amount of money allocated on the marketing budget (Appendix A), will be used on the below-mentioned marketing efforts: 30 | P a g e Personal Beauty Care 3.7.1 Advertising In order to optimize the marketing strategy, the company will develop unique advertisement exhibits that will target the prospective clients in Franklin Township and immediate neighborhoods, such as New Brunswick, North Brunswick, Bridgewater, Bound Brook, Piscataway etc. Such advertisements will be put in magazine or newspaper and posted on the internet. The advertisements will also be distributed in cosmetology schools and colleges, adult day care centers and at social events like parades and weddings. The advertising message will be developed in order to attract attention, generate interest, create desire, and spark action from customers. The slogan \"Beauty at Your Convenience!\" will be featured in all advertisements as well. Word-of-mouth advertising will also contribute in marketing the services of the company. Employees and customers will be encouraged to spread the word about the salon to their family members, friends, co-workers and neighbors. 3.7.2 Website & Social Media The website is the nucleus of the company's brand. \"Latest U.S. census figures show that over 60% of U.S. households are now 'internet-connected', and that percentage is expected to continue to rise over coming years. The percentage is even higher for \"households with over $50k annual income\" (ELaborative Technologies Ltd., 2013). Such website will be digitally optimized so that customers can view it on their mobile devices, and enable customers to call, email or schedule an appointment with Personal Beauty Care's employees. Special coupons can be posted on the website for customers to get a discounted rate for their preferred beauty services. The website will also allow the clients to provide their email addresses which will create an opportunity for the company to keep the customers engaged and become loyal clients for the years to come. Business reviews on websites like Yelp, Citysearch, Google Places (Local) and YP (yellow pages), will assist in building the brand and bringing good reputation for the company within and outside of the immediate target market. For instance, an individual searching for a local stylist using Google can easily land on Personal Beauty Care's Yelp review. Review sites are great for traffic to the company website. Facebook is another important source for getting customers. The company believes that it is 31 | P a g e Personal Beauty Care important to be where your customers are. Most of the customers especially the women are on Facebook, and they are easy to approach. The company's pictures posted on its Facebook page will be primarily shared within the Facebook eco system. Twitter can also be used in the marketing efforts, but it may have a smaller user base than Facebook. Internet 'tweets' have a tendency to get picked up in broader mainstream media markets as well. 3.7.3 Flyers & Direct Mail The company will design flyers to be distributed in the township and posted on the company website. This will create more awareness for the brand and make prospective customers schedule appointments. The flyer will contain information about the company, stylists' names, specialties, business hours, event date etc. Direct mails will target customers in remote areas and billboards will be displayed in strategic market locations. 3.7.4 Service or Product Promotion The company will adjust the prices and offer discounts with services such as haircuts, shampoos and coloring treatments. Offering customers 10 or 25 percent off the purchase of a particular shampoo and conditioner with the purchase of a haircut and shampoo combination can increase the service sales. Customers can be tempted by the desire to take the salon experience home and with discounted prices on certain products as the customers are assumed to then think that they are getting a bargain. Calendar-based price promotions such 10 percent off treatments to customers on Saturdays, will act as purchase incentives. Holiday, birthday and seasonal specials can give the salon the opportunity to remain relevant in the minds of potential customers while increasing sales. Offering discounts seasonally, such as percentage deductions on hair conditioning treatments or shampooing in winter, pedicures in summer and facials or massages in the spring will increase sales. 32 | P a g e Personal Beauty Care 3.7.5 Add-on Services Adding complimentary services on some of the main services makes some customers believe they benefit more in the form of savings on the services they order. For instance, adding services like massage to hair coloring, beards shaving to men's haircuts can make customers increase purchases that will be profitable for the business. 3.7.6 Referrals and Loyalty Programs Referral and loyalty programs, such as free haircuts after the purchase of at least five haircut services, will make satisfied customers to inform potential customers about the quality of delivered services and thereby act as brand promoters for the salon. Customer referrals can include such programs as offering a free facial every time a customer recommends a treatment to a friend. This strategy gives clients incentive to promote the business to a like-minded clientele, potentially fostering long customer allegiance and growing the client base. 3.7.7 Charitable Events During the second year of operations, the company will participate in charitable programs that will benefit people in homeless shelter or teenagers in intervention programs. For example, there may be a homeless woman in search of a job. A hair makeover could greatly improve her appearance, and her interview success. The company will send out a press release through the local newspapers about such charitable makeover programs, and reporters will be invited to cover such an event. A fundraiser will be featured in any such specific makeover event, and the cash donations will be greatly helpful to local charities. 33 | P a g e Personal Beauty Care 4.0 OPERATIONS PLAN 4.1 Introduction How will Personal Beauty Care operate? It is an important factor for a business to know how it will operate in its day-to-day operations. The operations plan will focus on providing the main concepts of the way the business is operated and what will be used to execute the operational activities. In this section of the business plan, day-to-day operations will be examined which will lead to who will perform those operations. The human resources portion will focus on the people requirements and how they will be paid. It will also illustrate how the employees will be recruited and if they will be receiving any types of benefits or incentives. Following that, the facilities and equipment plan will describe the capital assets of Personal Beauty Care. It will go into detail of the virtual presence the business will have and what the start-up and expansion timelines are. The technology plan will define virtual presence in detail as far as how it will operate and any other types of technologies that will be used for the business. The management team section will describe the professional experience and skills of the founders and management team of Personal Beauty Care. The organization chart will detail the company's structure. It will provide what the roles and responsibilities of the various company professionals' titles are as in the mentioned chart. Lastly, the management team gaps will describe the areas where Personal Beauty Care might be weak or in need of professional assistance. The operations plan will describe how the business will run and how the service will be executed. It will go into detail in defining the cost and type of the facility structure which is needed to operate the business as well as provide details regarding the human capital resources of Personal Beauty Care. 34 | P a g e Personal Beauty Care 4.2 Day-to-Day Operations Personal Beauty Care is a beauty service entity, which is fundamentally a more client relationship based business. Since the nature of the business involves providing services to clients personally, there will be many interactions with them in their individual residences or communities. Therefore, the role of every single service professional becomes particularly more important in providing the care and attention that is needed by these individual clients. Also, strict adherence to the company's acclaimed service and product quality standards has to be assured to retain the clientele and enhance further business relationships. 4.2.1 Operation Locations, Days & Hours The business intends to operate six days a week, Tuesday through Sunday. Each operating day, Personal Beauty Care will be open for business fo