Marketing Plan of Atone Lifestyle Salon, Melbourne

This article discusses the marketing plan for Atone Lifestyle Salon, Melbourne, including the introduction, situation analysis, PEST analysis, Porter’s Five Forces Industry Analysis, SWOT analysis, marketing objectives, financial objectives, segmentation, targeting and positioning, 4P’s marketing mix, and contingencies and controls.

The Marketing Plan of Atone Lifestyle Salon, Melbourne
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Content
s
Introduction.................................................................................................................................................3
Situation Analysis........................................................................................................................................3
PEST Analysis...........................................................................................................................................3
Porter’s Five Forces Industry Analysis.....................................................................................................4
SWOT Analysis.........................................................................................................................................5
Marketing Objectives..................................................................................................................................6
Financial Objectives.....................................................................................................................................7
Segmentation, Targeting and Positioning....................................................................................................7
4P’s Marketing Mix......................................................................................................................................8
Contingencies and Controls.......................................................................................................................10
References:................................................................................................................................................12

Introduction
Atone is situated within the gorgeous, parochial, eclectic cul de sac i.e. North Melbourne. Atone
has a large number of loyal customers from far and wide. It has customers, who travel bi-
monthly or monthly from rural Victoria and throughout Melbourne taking in Kensington,
Yarraville, Flemington, Carlton, Docklands, Parkville, Southbank, Melbourne CBD, Albert Park,
South Melbourne and others. At Atone Lifestyle Salon, effort is being made to offer effective
skincare solutions and salon services to satisfy the financial and lifestyle needs of the customers.
It endeavours to notify and educate the clients, not only to sell products, nevertheless also raise
clients’ awareness regarding their well-being as well as the sphere of cosmeceuticals. It
endeavours to offer these services within a fostering atmosphere, which adds to the overall logic
of well-being. Further, this particular paper attempts to provide marketing plan for new service
i.e. organic massage being introduced by Atone Lifestyle Salon.
Situation Analysis
To start with, situation analysis could great assist Atone Lifestyle Salon, Melbourne in
identifying relevant internal as well as external forces, which could help the salon in attaining
long-term sustainability and competitive edge within such competitive marketplace. By adopting
SWOT Analysis, PEST Analysis and Porters Five Forces Analysis tool, an effort has been made
for understanding the manner in which different forces impact the operations, their present as
well as likely clients. The chief purpose of situation analysis is to understand the present
competitive situation of the Atone Lifestyle Salon, Melbourne in terms of marketplace needs and
the way it could assist in coming times.

PEST Analysis
According to Kotler and Armstrong (2004), PEST analysis approach is a highly effective tool
adopted for evaluating outside environment of a company or industry. The tool assists in
examining the Political, Economical, Social and Technical forces impacting the business
surroundings (Kotler, 1998). Furthermore, the below sections throw light upon the PEST
analysis of Atone Lifestyle Salon, Melbourne for attaining competitive edge.
Political Factors
 Alterations in government policies and regulations for the businesses
 Launch of new instruction initiatives for the beauty and grooming segment
 Government officials might levy higher of taxes upon businesses along with taxes on
banners and hoardings.
Economic Factors
 Increasing cost associated with grooming products and tools.
 Decreasing income and earnings of the customers.
Social Factors
 Changes in clientele i.e. the clients may be higher during summers, wedding seasons and
festive seasons as compared to winters or otherwise.
 Alterations in preferences and likings of the clients. People could any time move onto
some other beauty service provider they think is offering better services at better price.
 Wedding seasons could bring in high volume of clients
Technological Factors
 Adoption of up-to-date techniques for carrying out beauty services is an important factor
affecting this segment.
 The salon needs to be completely conscious about what exceptional methods are
prevailing within the marketplace and what methods are being adopted by the competing
brands.

Porter’s Five Forces Industry Analysis
The below sections provide Porter’s Five Forces Analysis for Atone Lifestyle Salon, Melbourne.
Threat of Substitute
Threat of substitute in case of Atone Lifestyle Salon operates is relatively high because of
absence of product differentiation. Also, there are several salons providing alike services. As a
result, there is a high need for providing various discounts as well as offers to the clients.
Buyers’ Power
Clients are an important part of each and every business and company. With respect to Atone
Lifestyle Salon, the buyers’ power is high since they could any time move onto other brands
making available superior provisions. Thus, the salon must make sure that it facilitates its
customers with provisions, which are exceptional and reasonably priced.
Suppliers’ Power
The suppliers’ power is low in this case for the reason that whatever supplies are required for the
salon are available easily.
Threat of New Entrants
Threat of new entrants is high for the reason that grooming and beauty is considered as being
emerging segment having promising proceeds. Also, there exist no entry obstacles or guidelines
governing this segment.
Competitive Rivalry
The grooming and beauty segment is extremely competitive with several big and small
companies making available similar facilities for the clients. This makes essential for Atone
Lifestyle Salon to take on strategies that could keep it a step ahead of the competing firms.
SWOT Analysis
Hill and Westbrook (1997) hold the view that SWOT analysis is an effective marketplace
planning approach, which assists in identifying the strengths, weaknesses, opportunities as well

as threats related to any brand, company or industry. The SWOT tool is highly helpful in
recognizing and laying focus upon the internal and external forces, needed for accomplishing
long term objectives and goals (Houben et. al., 1999). Further, the continuing sections throw
light upon the SWOT analysis of Atone Lifestyle Salon, Melbourne on the basis of diverse
factors discovered in the PEST and Porter’s Five Forces analysis above.
Strengths
 Sound retail position in a famous and well-travelled region
 Expert and competent employees holding sound experience and skills with a huge
beauty and grooming repertoire
 Customer-directed business practices.
 Wide service portfolio
 Competitive prices
 Satisfies the need of whole family
Weaknesses
 Atone Lifestyle Salon does not have adequate brand equity that its competitors have
attained over the years.
 The fight to remain on the competitive edge in terms of style and beauty trends.
Opportunities
 A constantly progressing segment that is not impacted through the economic
backgrounds.
 The ability of trimming down the marginal fixed costs at the time when there is a rise in
client base.
Threats
 Cut-throat competition with several brands making available similar provisions.
 Modification in customer wants and preferences
 Entrance of new brands making available superior services at reasonable cost.

Marketing Objectives
The marketing objectives of Atone Lifestyle Salon, Melbourne include:
 Augmenting the rate of repeat clients by a significant around 20% quarterly.
 Bringing down the costs associated with client acquisition by around 8 to 10% yearly.
 Upholding a constructive and continuous progress every month.
Financial Objectives
Financial objectives take in:
 Augmenting the overall amount of retail services as well as products offered by about
10% yearly.
 Increasing the profit margins by around 10% yearly.
 Augmenting profitability levels by first year.
Segmentation, Targeting and Positioning
This particular section of the paper lays emphasis upon segmentation, targeting as well as
positioning of the latest organic range of massage services of Atone Lifestyle Salon.
Segmentation
There does not exist any one means of segmenting a marketplace. It can be on the basis of
geography, demography, climate, behaviour and/or population (Chisnall, 2004). Atone Lifestyle
Salon will basically target middle as well as affluent class of the society. Salon and spa in

considered as being luxury services and thus, there is no use of targeting lower group of the
society.
Target Marketing
Atone Lifestyle Salon will fundamentally target two different market segments i.e. both males
and females. At present, it has been seen that both males as well as females have turned out to be
highly conscious about their hair, skin, hand etc. and are ready to pay extra for exceptional
services. Atone Lifestyle Salon would basically target men and women between the age group
20-45 years, who would show high interest towards salon services like massage.
Positioning
Atone Lifestyle Salon will position itself like a well-situated and full service salon. It will make
available exceptional massage services. It would basically leverage its competitive edge for
accomplishing its desired positioning. The competitive edge of Atone Lifestyle Salon revolves
around making available better-quality and exceptional services for the customers. The salon
also very well recognizes the actuality that the beauty and grooming segment is crowded thus it
is not that easy to stand out. Additionally, the salon would invest a good amount of money along
with time for offering training to the employees to ensure that the clients attain excellent organic
massage experience possible.
4P’s Marketing Mix
Within such global economy, companies rely greatly upon several practices and techniques for
achieving the desired goals and outcomes. Kotler and Keller (2006) state that the 4Ps of
marketing mix are considered as being one among the highly effective tools for introducing a
service within the marketplace (McGee et. al., 2005). Nonetheless, the first and foremost thing is
to conduct marketplace research and understand the marketplace (Chisnall, 2004; Hair et. al.,
2000). Furthermore, the marketing mix for new addition of organic massage by Atone Lifestyle
Salon, Melbourne

Product
Product is regarded as being the foremost element of the marketing mix (Kotler and Keller,
2006). Moreover, decisions associated with product are the chief decisions the corporations must
make before developing the marketing plan (Hallowell, 2006). Additionally, the product decision
with respect to Atone Lifestyle Salon involves brand, comfort, quality, safety, guarantees and
lastly, support. The salon needs to ensure that the organic massage services that are being
launched are distinct from the present corporations making available similar facilities. The salon
would also give discounts in case if any customer opts for two massage. The salon would also
make available yearly packages option for the clients to ensure that they could obtain discounts
on actual price. The client wouldn’t require making any prior appointments.
Price
Pricing simply implies towards the actual amount a client shells out for the particular service or
product (Kotler and Keller, 2006). While fixing price for organic massage services Atone
Lifestyle Salon would consider all the cost part of offering the specific service taking in
employees cost, tools used, taxes along with service cost. The massage service prices would be
fixed with respect to a number of factors. For instance, the price would differ as per the part
where massage is needed. The price for head massage would lower than full body massage. To
retain existing customers and attract new customers, Atone Lifestyle Salon would offer special
discounts on prices. The salon would also give discounts in case if any customer opts for two
massage. The salon would also make available yearly packages option for the clients to ensure
that they could obtain discounts on actual price.
Place
Place simply involves the distribution network of a particular product or service (Kotler and
Keller, 2006). The new service introduced would be made available at respective salons. Also,
the client would be offered the option of home-services where they can easily book their
massage session at home
Promotion

Promotion highly relies upon the product or service decision along with pricing decision. If any
service is totally new in the market, it calls for brand or service awareness promotions as well as
advertising to bring it to clients’ notice. If any service is already prevalent in the market in that
case it will call for brand recall promotions along with advertising (Kotler and Keller, 2006).
Further, the promotion practices that would be considered with respect Atone Lifestyle Salon
take in in-store promotions and advertisements.
Advertisement: Adverts regarding the new service will be placed within several different local
newspapers as well as magazines of Australia.
In-store and Store Front Displays: The store front and in-store displays will be observable for
the heavy walk-through client base.
Controls
The key aim of the Atone Lifestyle Salon marketing plan is acting like one and complete help
guide for the salon. Further, all the below stated areas would be employed for monitoring the
performance on regular basis (Hallowell, 2006):
 Overall Expenses: Monthly and annually
 Overall Revenue: Monthly and annually
 Rate of Customer satisfaction
 Repeat clients of the salon

References:
Chisnall, P. M. (2004) Marketing research (5th Ed.) McGraw Hill, London
Hair, J. F., Bush R. P., Ortinau, D. J. (2000) Marketing research, international edn, McGraw
Hill, London
Hallowell, R. (2006) The relationships of customer satisfaction, customer loyalty and
profitability: an empirical study, International Journal of Service Industry Management, Vol. 7
No. 4, pp. 27-42
Hill, T. and Westbrook, R. (1997) SWOT Analysis: It’s Time for a Product Recall, Long Range
Planning, Vol. 30, No. 1, pp. 46–52
Houben, G., Lenie, K. and Vanhoof, K. (1999) A knowledge-based SWOT-analysis system as an
instrument for planning in small and medium sized enterprises, Decision Support Systems, Vol.
26, No. 2, pp. 125-135
Ko, A.S.O. and Lee, S.F. (2000) Implementing the strategic formulation framework for the
banking industry of Hong Kong, Managerial Auditing Journal, Vol. 15 No. 9, pp. 469-77.
McGee, J., Thomas, H. and Wilson, D. (2005), Strategy: Analysis and Practice, McGraw-Hill,
New York, NY.
Kotler, P. (1998) Marketing Management – Analysis, Planning, Implementation and Control (9th
Ed.), Englewood Cliffs: Prentice-Hall
Kotler, P. and Armstrong, G. (2004) Principles of Marketing (10th Ed.), New Jersey: Pearson
Education Inc

Kotler, P. & Keller, K. (2006) Marketing Management (12th ed.), Pearson Education Inc,
Prentice Hall.