Comprehensive Marketing Strategy and Plan for Funky Punky Hair Salon

This report provides a comprehensive analysis of the marketing strategy and performance of Funky Punky Hair Salon, a sole proprietorship operating in the Strathpine region of Queensland. The report evaluates the salon's structure, products and services, and marketing performance against objectives, including sales revenue, repeat business, and customer satisfaction. It assesses the success of the marketing mix (product, price, place, promotion, people, process, and physical evidence), reviews external factors impacting the salon (economic conditions, industry trends, competition), and offers detailed recommendations for improving the marketing mix, strategic objectives, marketing strategies, and marketing metrics. The report highlights issues such as understaffing, lack of promotional activities, and customer complaints regarding service quality and pricing. It emphasizes the need for enhanced brand awareness, improved customer service, and strategic adjustments to address market challenges and competition. The analysis includes an examination of the salon's strengths, weaknesses, opportunities, and threats, providing a roadmap for future growth and success.

1
Marketing Strategy and Plan

2
Table of Contents
Part A.........................................................................................................................................4
Structure of the Business........................................................................................................4
Overview of Products and Services.......................................................................................4
Analysis of the Overall Marketing Performance against Objectives.....................................4
Evaluation of Business Progresses.........................................................................................5
Against Strategies...............................................................................................................5
Against Milestones.............................................................................................................5
Against Budget...................................................................................................................5
Evaluation of the Success of Marketing Mix.........................................................................5
Evaluation of the Marketing Strategies for the Salon............................................................7
External Factors Impacting the Salon....................................................................................7
Current Economic Conditions............................................................................................7
Industry Trends, Practice and Market Changes.................................................................7
Social Trends and Impact of Demand for Quick Salons....................................................8
Competition........................................................................................................................8
Review Marketing Mix.........................................................................................................8
Marketing Strategies..........................................................................................................9
Marketing Metrics..............................................................................................................9
Recommendations..................................................................................................................9
For Business Marketing Mix..............................................................................................9
For Strategic Objectives.....................................................................................................9
For Marketing Strategies..................................................................................................10
For Marketing Metrics.....................................................................................................10
Development of a Communication Strategy........................................................................10
References................................................................................................................................11

3

4
Part A
Structure of the Business
Funky Punky Hair operates as a sole proprietorship firm with the owner, Nerida operating as
the Principal Stylist. The operations team is further constituted by two senior and one junior
stylist and also by one second and first year apprentice. Further, Nerida also appointed her
daughter to work as the Salon manager. She also appointed a bookkeeper that would take care
of the accounts books and payroll for the staffs.
Overview of Products and Services
Funky Punky Hair operates as a Salon based in the Strathpine region of Queensland. It serves
the needs of different categories of customers like men, women and children in meeting their
beautification needs and also sells different types of hair care merchandises. Moreover,
Funky Punky Hair also provides walk-in customers with ‘Quick Salon’ services. The ‘Quick
Salon’ services rendered by Funky Punky Hair ideally contributes in attracting large number
of customers to the Salon centre.
Analysis of the Overall Marketing Performance against Objectives
The analysis of the marketing performance for Funky Punky Hair against the set marketing
objectives reflects that the Salon Centre had failed to meet the targets concerning sales
revenue, repeat business and also customer satisfaction. The evaluation of the marketing
performance against objectives however reflect that the firm had gained the potential
regarding reducing the level of cost or expenses compared to that of the forecasted figure.
The forecasted revenue for the year amounted to $238,914 while the amount of revenue
generated was recorded to be $105,122. In terms of Repeat Business, it was observed that
only 210 customers out of the total 1,752 customers returned to the salon along a six month
period. Regarding customer satisfaction, marketing surveys reflected that the customers
visiting the salon generated different complaints like non-interest of the hairdresser to
customer’s specifications and needs. Moreover, the customers also complained that the
colours rendered by the salon failed to aptly meet their colour requirements. The customers
also rendered complaints regarding longer waiting times, improper and inadequate etiquettes
and customer greets, overpricing of services and also lack of effective management of kids. A

5
fewer number of customers however reflected that they were satisfied in that the hairstyle
provided ideally matched their requirements and encouraged them to revisit the salon.
The expenses incurred for the year by the salon however was observed to be lesser than the
forecasted figure. Forecasted expenses for the annual period amounted to $28,670 where
month-to-date expenses incurred amounted to $22, 363.
Evaluation of Business Progresses
Against Strategies
Strategically speaking, the salon though worked on development of ‘Quick Salon’ services
for attracting customers yet failed to generate any type of market hype owing to the absence
of a grand opening and also owing to dependence only on two hairdressers that belonged to
another region. The lack of grand opening created problems regarding the availability of an
effective entrance in reaching the salon. The lack of effective proximity and also needed hype
failed to attract potential customers in that they lacked knowledge of its existence in the
region. Moreover, depending on hairdressers belonging to a foreign region also created a
handicap in developing an existing database of potential clientele. Further, the salon also
suffered from lack of
Against Milestones
In terms of milestones set, the salon business of Nerida failed to achieve the set targets
regarding revenue, repeat business and customer satisfaction. Only the milestone regarding
expenses was duly achieved by the salon.
Against Budget
The performance figures reflected that the salon failed to surpass and even match the
budgeted figure for the revenue. The budgeted revenue for the annual period was taken as
$238,914 where the revenue gained till date amounted to $105,122. Regarding the expenses
budget, the Cost of Sales for the annual period amounted to $28,670 where month-to-date
expenses were recorded at $22,363.
Evaluation of the Success of Marketing Mix
Products: Funky Punky Hair has a product mix constituted by hair products that are retailed
to customers along with salon services that are provided tom customers either based on
appointments or to walk-in customers. The salon however suffered from the lack of effective

6
product mix regarding the right and best quality hair colours, conditioners and shampoos
(Curtis, 2012). Customers complained regarding the colour stating that the colour provided
did not meet their requirement.
Price: Funky Punky Hair entering the salon market was required to set a standardised price
for the products and services and was also required to work based on a penetrating price
strategy for attracting customers. Subsequently it could have used the skimming price
strategy in terms of charging premium prices for premium services and branded products
used (Stimpson & Smith, 2015). The customers however complained because of lack of
standardisation of the prices where for the same service or colour product one customer was
charged less and the other more. Further, the services offered by the salon were also
identified to be costly in nature.
Place: Funky Punky Hair Salon is observed to operate based on franchisee outlets, upscale
salons and other salon chain stores. However, of late due to failure in meeting of sales targets,
the salon was required to close down a salon chain store rendering ‘Quick Salon’ services to
customers. Moreover, customers had lack of knowledge of the store owing to the
unavailability of an effective entrance and also because of an unattractive signage. The salon
was required to develop its presence both physically and virtually for attracting potential
customers (Weliver, 2017).
Promotion: Funky Punky Hair Salon had very limited amount of promotional activities
involving printed mediums like the Coastal Express and the Morton Bay Press. The use of
limited amount of promotional activities affected its chances of appealing over to a larger
audience regarding the products and services offered by it (Milady, 2013).
People: Funky Punky Hair Salon suffered because of understaffing. The same accounted for
growth of crowds and queues in the salon and also delay in the generation of effective
customer services. Moreover, the hairdressers also rendered faulty services that contributed in
growth of customer dissatisfaction (Coughlin, 2011).
Process: Funky Punky Hair Salon required the presence of an effective process through
which salon services can be offered to customers in a faster fashion and more effectively. The
lack of effective operational and customer servicing processes affected the operational quality
generating greater customer dissatisfaction (Weliver, 2017).

7
Physical Evidence: Salons are required to render to the customers effective brochures and
fashion portfolios such that the customers can effectively choose the hair designs and colours.
Further, the salon is required to effectively service the customer by rendering the style
chosen. The stylists and hair dressers at Funky Punky Hair Salon were criticised for their
failure in rendering the styles chosen (Blythe, 2012).
Evaluation of the Marketing Strategies for the Salon
Funky Punky Hair Salon is required to develop its presence in the beautification market
through using different types of promotional tools like broadcasting, digital and online, social
networking and print media on a larger scale. The use of such promotional tools would help
in cultivating greater brand awareness for the salon. Further, it is required to develop its front
façade for attracting potential customers and is also required to enhance the level of store
atmospherics in terms of incorporation of effective music and lighting. The salon is also
required to sustain effective relationship with its potential customers through the generation
of customised offers and rebates on different occasions like birthdays and anniversaries of its
prospective client base. Surveys are required to be carried out through use of social
networking and digital mediums and feedbacks are required to be incorporated for enhancing
its customer focused image (BizPlanDB, 2014).
External Factors Impacting the Salon
Current Economic Conditions
The economy of Australia reflects needed growth and is taken to reach to about 3 percent by
the end of 2018. The rate of inflation corresponding to economic growth is taken to hover
around 2-3 percent. The GDP in terms of real-growth rate amounts to 2.5 percent during 2016
with the GDP Per Capita at $48,900. The services sector tends to comprise around 68.2
percent of the GDP in the region employing around 75.3 percent of population (CIA, 2016).
Industry Trends, Practice and Market Changes
 Development of apps and websites for Smartphones and Tablets fostering greater
interactivity with customers in terms of generating beauty suggestions and also
generating sales.
 Use of social networking tools like Instagram, Facebook and also generation of blogs
are made in an extensive fashion for sustaining relationship with customers.
 Development of relationships and collaborations with wedding planners

8
 Participating in trade shows and exhibitions (Salon Today, 2017).
Social Trends and Impact of Demand for Quick Salons
Australia reflects potential shortage of effective and skilled manpower for addressing the
hairdressing needs of customers. The Metropolitan regions reflect increased demand for salon
and hair dressing services with low amount of skilled human resources (Working Down
Under, 2015).
Competition
The beauty and cosmetics sector of Australia is becoming largely competitive owing to the
entry of foreign players and also because of the development of the Australian currency rates.
Moreover, the development and use of online and digital interface is also enhancing the
competition level in the industry through helping customers in sorting and accessing different
cosmetic and beauty solutions (Whitehouse, 2014).
Review
Marketing Mix
Product Mix: The salon rendered limited hair care and cosmetic product offerings with lack
of effective quality. It only formulated the ‘Quick Salon’ service for enticing customers.
Price Mix: The prices of the products and services rendered by the salon lacked
standardisation in terms of prices. They were charged affordably and expensively from case
to case.
Place Mix: The salon failed to reach mass market owing to lack of needed stores. Further, it
had no effective entrance to its store outlet that lacked needed customer knowledge.
Promotion Mix: The salon only depended on print marketing mediums for promotion and
marketing.
People Mix: The salon had lower number of staffs that lacked essential customer servicing
skills.
Process Mix: The customer servicing and operational process lacked effectiveness regarding
quicker delivery of services.
Physical Evidence Mix: The salon failed to match the hair styles as promised in pictures and
catalogues.

9
Marketing Strategies
The marketing strategies of the salon lacked effectiveness owing to the presence of an
unattractive façade and also reduced involvement of promotional and communication
mediums for generating needed brand awareness among the target market.
Marketing Metrics
The marketing metrics like repeat customers, customer satisfaction, revenue and expense
estimation and forecasting lacked needed innovativeness and potentiality.
Recommendations
For Business Marketing Mix
Product Mix: The product mix can be enhanced through use of quality colours, shampoo and
hair conditioners.
Price Mix: The salon need to focus on the use of penetrating price strategy regarding selling
its products and services. However subsequently it needs to incorporate skimming price
strategy for generating greater returns.
Place Mix: The salon needs to open up large number of stores through the use of franchisee
networks. Further, it needs to develop an app and also an e-commerce site for generating an
online presence (Curtis, 2012).
Promotion Mix: The salon needs to promote its products and services through the use of
broadcasting channels, print, online and social networking media to the larger market and
generate needed brand awareness.
People: Funky Punky Air Salon needs to effectively train and enhance the customer servicing
skills of its internal people for providing quality services to customers.
Process: The salon needs to increase the speediness of generating services for avoiding
queues and delays (Salon Today, 2017).
Physical Evidence: The salon needs to develop brochures and catalogues both printed and
online for helping the customers in choosing hair styles (Milady, 2013).
For Strategic Objectives
 Enhance the level of brand awareness by 20 percent through use of social media
marketing.

10
 Enhance the level of market share by around 30 percent.
 Develop greater customer satisfaction levels through generation of customised offers.
 Enhance the level of technological competence through development of apps for
Smartphones and other digital mediums.
 To focus on generating training to internal staffs and enhancement of stores through
franchising options.
For Marketing Strategies
Funky Punky Hair Salon needs to develop the entrance facility as well as the front façade of
the store. It is also required to incorporate an effective CRM system for interacting with
customers with also the use of social networking platforms. Customised offers are required to
be rendered for entertaining the customers.
For Marketing Metrics
Different types of marketing metrics like rate of customer conversions, ratio of leads to
closed orders, growth in footfalls and also the rate of customer retentions are required to be
incorporated by the salon.
Development of a Communication Strategy
Key message Target
Audience
Communication
Channel
Staff
responsible Date/duration Budget
Affordable
and high-
quality Salon
experience
Women, Men
and children Television
Sales and
customer
servicing
30-40 seconds
slot
AUD
3000
Affordable
and high-
quality Salon
experience
Women and
Men Radio
Sales and
customer
servicing
30 seconds slot AUD
2000
Offers,
rebates, new
service
launches and
products
Women and
Men
Magazines and
Newspapers
Customer
servicing and
liaison
Full and Half
pager
advertisements
for alternative
weeks for three
AUD 80

11
months.
Key launches,
offers and
rebates
Women and
Men Digital platforms
Sales and
Operational
managers with
IT Staffs
Digital
platforms are
to be created
for marketing
of promos and
other offers
AUD 40
New
launches,
price offers,
purchase
options
Women and
Men Website IT, Operation
staffs
An effective
website is
needed to be
developed and
retained for
attracting
customers.
AUD 40
Circulating
news
regarding
new product
and service
launches, new
stores and
apps,
customer
testimonials,
videos of
customer
servicing
Women and
Men Social Networks
Subordinate
staffs,
managers and
also customer
servicing
personnel
Social
networking
platforms like
Facebook,
Twitter and
blogs are
needed to be
created and
updated to
reflect new
service
launches and
other new
offers.
AUD 50
References
BizPlanDB, 2014. Hair Salon Business Plan. United States : BizPlanDB.
Blythe, J., 2012. CIM Coursebook 08/09 Marketing Essentials. New York : Routledge.

12
CIA, 2016. Australia. [Online] Available at: https://www.cia.gov/library/publications/the-
world-factbook/geos/as.html [Accessed 6 October 2017].
Coughlin, P., 2011. Wedding Magic. United Kingdom : Penguin.
Curtis, T., 2012. CIM Coursebook 07/08 Marketing in Practice. New York.
Milady, 2013. Milady's Standard Esthetics: Advanced. United States : Cengage Learning.
Salon Today, 2017. 9 Industry-Proven Ways to Market Your Salon and Build Your Brand.
[Online] Available at: http://www.salontoday.com/article/82217/9-industry-proven-ways-to-
market-your-salon-and-build-your-brand [Accessed 6 October 2017].
Stimpson, P. & Smith, A., 2015. Business Management for the IB Diploma Coursebook.
United Kingdom : Cambridge University Pres.
Weliver, P., 2017. Mary Gladstone and the Victorian Salon. United Kingdom: Cambridge
University Press.
Whitehouse, L., 2014. Cosmetics arena getting competitive in Australia. [Online] Available
at: https://www.cosmeticsdesign-asia.com/Article/2014/04/03/Cosmetics-arena-getting-
competitive-in-Australia [Accessed 10 October 2017].
Working Down Under, 2015. Can you cut it in Australia? [Online] Available at:
http://isagroupuk.co.uk/wp-content/uploads/2015/05/Hairdressing-in-Australia.pdf [Accessed
6 October 2017].