Tossled Hair Studio. Advertising Campaign Event. Logan Fredell February 8, 2016

Transcription

1 Tossled Hair Studio Advertising Campaign Event Logan Fredell February 8, P a g e Indianola High School DECA Indianola High School 1304 E. 1 st Ave. Indianola, Iowa 50125

2 Table of Contents I. EXECUTIVE SUMMARY... 1 II. DESCRIPTION... 2 III. OBJECTIVES OF THE CAMPAIGN... 3 IV. IDENTIFICATION OF THE TARGET MARKET... 4 A. Primary Markets... 4 B. Secondary Markets... 4 V. LIST OF ADVERTISING MEDIA SELECTION NECESSARY FOR THE CAMPAIGN... 4 VI. SCHEDULES OF ALL ADVERTISING PLANNED... 9 VII. SCHEDULES OF ALL SALES PROMOTION ACTIVITIES PLANNED... 9 VIII. BUDGET IX. STATEMENT OF THE BENEFITS TO THE CLIENT/ADVERTISER X. BIBLIOGRAPHY... 11

3 I. EXECUTIVE SUMMARY About Tossled Hair Studio: Tossled Hair Studio is located in Indianola Iowa. It is a small hair studio that provides excellent hair care and customer service, leaving the customer with an overall sense of satisfaction. Campaign Objectives: The main objectives of this campaign are to: Increase returning clientele by 20 people Increase the stylist s knowledge of hair trends Increase the sale of hair care products by 50% Increase total revenue by 10% Primary Target Market: Demographic Factors Age: Income (Average): $30,000- $60,000 Gender: Female Psychographic Factors Enjoy relaxed environment, enjoy cutting edge hairstyles, enjoy a friendly working staff Geographic Factors Most customers reside in Indianola IA Campaign Proposals: We will implement premiums in the store in the form of free travel shampoo bottles. Tossled will team up with Affinity Bridal and sponsor and do a prom hair and dress show, along with putting an ad in the Indianola Record Herold, and implementing customer loyalty cards, and lastly sending out blasts to the customers. Schedule and Budget: The advertising campaign will be carried out over the course of 7 months starting in December. The total cost of carrying out this advertising campaign is $1, The cost entails premiums, a newspaper ad, and loyalty cards. Statement of Benefit: This advertising campaign will help Tossled Hair Studio meet all of its goals, along with increasing customer base and returning customers, and the campaign will help Tossled meet all of its financial goals by bringing in more customers and thus more revenue. 1 P a g e T o s s l e d H a i r S t u d i o

4 II. DESCRIPTION Business Description At Tossled Hair Studio you can find a number of things for sale such as; professional hair care products, haircuts, along with professional chemical treatments to add color and style to a person s hair. Prices on the hair products vary depending on what it is, but a haircut is 25 dollars and any chemical service is 65 dollars. There is one store that is located in Indianola, Iowa and is owned by Erica Roberts. Erica promotes Tossled hair Studio by using social media, such as Facebook, and word of mouth. Owner Background Tossled Hair Studio was started in There is one store that is located in Indianola, Iowa, 501 N Jefferson Way #200, and is owned by Erica Roberts. In Indianola there are 15,108 people, with a median income range of 52,779, taking up 55,857 square miles. Erica has an extensive background including 20 years of cosmetology and 2 years of being a licensed educator. She decided to start the business because she wanted to provide people with the best hair care possible. As a business owner her mission statement is to provide quality service in a professional environment to meet the needs of clients in all areas. Erica s short term. Goals include growing as a business and providing quality professional service and staying up to date with trends, her long term goal is to retire. One thing she would like to improve on as a business owner is her presence in social media and her client recommendation. SWOT Analysis Strengths - Erica has many years of experience in the Studio industry to provide an excellent experience for her clients. Weaknesses - She has a varying schedule so it is sometimes hard for her clients to reach her. 2 P a g e T o s s l e d H a i r S t u d i o

5 Opportunities - Erica is looking into chair rental to get new people in the Studio and create more revenue. Threats - Living and running her business in a multiple Studio area. III. OBJECTIVES OF THE CAMPAIGN To increase returning clientele by 20 people o To increase returning clientele we will give them a lasting first impression by offering an experience that can t be found anywhere else, along with a coupon for first time clients for their next visit. To increase the stylist s knowledge of hair trends o Have specialized training for the stylists allowing them to stay up to date with the trends To increase sales of hair care products by 50% o Offer deals and premiums for the hair care products, making buyers more inclined to by the products, thus boosting our sales by 50% and hopefully more. To increase total revenue by 10% o By increasing the number of returning clientele we will be able to increase our revenue. 3 P a g e T o s s l e d H a i r S t u d i o

6 IV. IDENTIFICATION OF TARGET MARKET A. Primary Market Demographic Age: Income (Average): $30,000-$60,000 Gender: Female Psychographic Individuals who like a relaxed environment (refreshments as well) Individuals who enjoy cutting edge hair styles Individuals who like a friendly working staff Geographic Most customers reside in Indianola, IA B. Secondary Market Demographic Gender: Male Age: Average Income: $30,000-$60,000 Psychographic Individuals who enjoy classy trends Geographic Indianola, IA Individuals who are looking for a nice and quick cut Individuals who like nice hair products (hairspray, etc.) V. LIST OF ADVERTISING MEDIA SELECTION NECESSARY FOR CAMPAIGN Sales Promotion Media Selection: Customer Loyalty Cards: Customer loyalty programs come in different many types of forms. Varying from credit and debit cards or to just paper slips that take off discounts of the original product. Many companies tend to use loyalty card sales promotion. A great example is Casey s pizza. For every ten large, one topping pizza 4 P a g e T o s s l e d H a i r S t u d i o

7 you buy, you ll get the eleventh one for free. In 2013 Starbucks had a customer loyalty card program and it had increased revenue 11% that year. They encourage repeat business which is a key factor in business; getting your customers back. Tossled Hair Studio has business cards but does not have customer loyalty cards. Customer loyalty cards are going to help owner, Erica Roberts, not only increase her revenue but also bring back loyal customers. What Logan and I are going to create is a customer loyalty cards which states Buy ten haircuts, get one free, this is going to get customers to come back to get that free haircut. This is going to result in an increase in Erica s revenue as well as more returning customers. We know this because it has worked for many, if not all, businesses. The best example was what Starbucks had done. Customer loyalty cards are very inexpensive. Nextdayflyer.com charges $19.95 for 500 hundred card plus shipping for a total of $35. Loyalty cards are cheap. It s all there is to it. It s a great way to get your customers back. It s a great way to increase revenue. It s a great way to get your business up and going. By using customer loyalty cards businesses will flourish with more returning customers as well as new ones. These cards will help business owners keep track of how many people use these loyalty cards, and the amount of revenue was made from them. Sponsorships: Sponsorships are a great way to get your business name out there. By doing so, you will be able to increase your brand recognition. Showing support for your community would serve a positive business image. There are a lot of great ways you can sponsor events, related to schools, sporting events, music event, and the list goes on. People would appreciate the help that Tossled Hair Studio is giving out and in return business would provide advertising for 5 P a g e T o s s l e d H a i r S t u d i o

8 Tossled, whether that be a program or the events that she is going to be hosting for the prom show. Promotional tie-in Local promotional tie-ins are an effective way to market your business. They are low cost and have a high return in marketing dollars. Which is saying that very little money is being invested into these local promotional tie-ins while at the same time you re getting a lot more money that is coming than going out. Erica Roberts will be hosting a show along with Affinity Bridals to showcase their prom dresses at the local event. Tossled Hair Studio is going to use a promotional tie-in is to host a community event along with Affinity Bridals to showcase their prom dresses and Erica s prom hairstyles. Erica will do the hair of the ladies who are going to be modeling the prom dresses. This is a great way for her to market the undo aspect of her business to the younger target market. Since Indianola is a small community everyone would know who Erica Roberts after attending the event. The event will serve a dual purpose in getting Tossled Hair Salon s name out there, while also benefiting Affinity Bridals. Erica Roberts will be hosting the show March 5, which is the Saturday before spring break begins. It will be hosted at the High School auditorium. This is going to be a nice schedule time for the event because it is close to prom. People will be going to this event to see different hairstyles they can do for their own night. Advertising Media Selection: Premiums: Premiums are an often cheap and inexpensive way to get your business name out there and in the hands of your customers. They are often given to the customer at a 6 P a g e T o s s l e d H a i r S t u d i o

9 discounted rate or even for free. The best time to give out your premiums are at a promotional event, such as an open house. Some popular examples of premiums include: pens, coffee mugs, and water bottles. Tossled Hair Studio will take premiums to the next level. Erica isn t going to do the average and simple pens and coffee mugs, but instead use premiums that are a little more unconventional and tailor to her business. These premiums include travel shampoo bottles with the Tossled logo on them. They cost $7.32 for 50 bottles plus $8.99 for 140 by Vista Print for the address labels. Erica will put her design her desired label and then put the labels on the bottles. With the help of these premiums her business will be take the next level. Newspaper: Erica Roberts will be a press release in the Indianola Record Herald. A great thing about newspapers is that they have cheap production. Now considering Erica Roberts is a very intelligent women, she ll take this to her advantage. Another great thing Erica has taken advantage is that newspapers have specific target markets that can specifically relate to new trendy hairstyles. The prices of newspaper are fairly expensive, but their production cost is cheap. Prices to put her press release in the local Indianola Record Herald is around $1,300 per column inch which is a stretch but will be affordable for Erica. She is going to run this ad every two weeks from the February to March. She s going to run her advertisements to support her business to come to her salon. Here is an example of Erica Roberts ad (create newspaper ad). 7 P a g e T o s s l e d H a i r S t u d i o

10 The ad is going to support her business and tell people come and try their first haircut for free. This is going to tie in with her promotional cards that say every 10 haircuts and get the next one free. She will be including her coupons within the newspaper ads in the pullouts. This is going to allow people to receive their coupon while she is advertising the business. Blasts: Erica Roberts will be having a signup sheet in her store where her existing customers will be able to sign up for her monthly notifications. Erica will be able to give her customers great ideas on trendy hairstyles, and even discounts that are within the itself. The discounts will be printable to be used in the store for extra discounts. Erica will use the contact sheet to get in touch with her customers. By doing this Erica will be bring in potential customers as well. blasts will be a great marketing strategy to help improve her business. The prices for the blasts will be free for Erica because she does not have many subscribers for her s. This is going to be a benefit for Erica due to it being free it will allow her to increase her revenue. The s will be going up twice a month informing her customers with deals and new hair styles that she will be doing. She also will be advertising her community events that will promote trendy hairstyles. 8 P a g e T o s s l e d H a i r S t u d i o

11 VI. SCHEDULES OF ALL ADVERTISING PLANNED Media Newspaper Premiums Blast December Contact Record Herald Find company to design bottles and negotiate prices Created MailChimp account. Collected lists of January Design Ad Design logo for bottles and purchase bottles February March April May Run Ad for two Wednesdays Run Ad for two Wednesdays Evaluate success of ad via short survey in store Put logo and label on bottles and prepare them to be given out Give out bottles on March 5th, at prom event Give out remaining bottles to customers in store Evaluate success of bottles subscribers New customers found out about Tossled Hair Salon Due to large increases of customers, we needed a new subscription The new subscription is now have a total limit of 50,000 people Run blasts Evaluate success of blasts VII. SCHEDULES OF ALL SALES PROMOTION ACTIVITIES PLANNED Promotion Loyalty Cards Sponsorships Promotional Tie In December Find place that will make the cards and figure out Figure out what event to sponsor Figure out what prom event to host price January Design the cards to be given out in store Plan out the ideas Plan out the ideas for the event February Start giving the customers Contact Affinity Get clients in to March cards Keep records of card usage Bridal Start the event brainstorm hair ideas Go to the event to do the hair for the clientele April May June Keep records of card usage Evaluate total success of cards Order more cards if they were successful Evaluate success Evaluate success 9 P a g e T o s s l e d H a i r S t u d i o

12 VIII. BUDGET The total cost of sales promotions and advertising media is $1, This cost is comprised of the premiums, newspaper ads, and loyalty cards. The other media types are free of cost. Our goal of the advertising campaign was for Erica to keep her costs relatively low and below $5,000 due to the fact that she is unable to overcome that cost in revenue. We were successful in this goal and kept our total under $2,000 Media Description Total Cost Premiums Bottles ( 1 x $.15) and Address labels (1 x $.6) $16.31 Newspaper Column Inch (2 column inch x $1,300) $1300 Loyalty Cards Cards + Shipping $54.95 TOTAL $1, IX. STATEMENT OF THE BENEFITS TO THE CLIENT/ADVERTISER By following our advertising campaign the following goals should be achieved: Increase Tossled s returning clientele by 20 people, to increase each stylist s knowledge of hair trends, increase sales of hair care products by 50%, and to increase Tossled Hair Studio s total revenue by 10%. While using this campaign we will increase the returning clientele by 20 people with our loyalty cards. People will want the free haircut so they will return so they can work towards the free haircut. We will increase stylist knowledge by having them go through up to date training on the latest trends. When the promotional aspect of the campaign is implemented and the shampoo bottles are put in stores, customers will be more likely to buy a hair care product due to the fact that people now have a bottle that they are able to take 10 P a g e T o s s l e d H a i r S t u d i o

13 the product in, thus increasing sales of hair care products by 50%. The newspaper ad will get the word out about Tossled s programs and quality service, bringing in more people. When people come in to the store and they see the premiums, and loyalty cards, and the amazing atmosphere that is Tossled Hair Studio they will be return customers and increase the Studio s total revenue by 10%. With the help of these programs and the campaign all of these goals will be achieved. X. BIBLIOGRAPHY Advertising Campaign Interview." Telephone interview. Oct.-Nov "City-Data.com - Stats about All US Cities - Real Estate, Relocation Info, Crime, House Prices, Cost of Living, Races, Home Value Estimator, Recent Sales, Income, Photos, Schools, Maps, Weather, Neighborhoods, and More." City-Data.com - Stats about All US Cities - Real Estate, Relocation Info, Crime, House Prices, Cost of Living, Races, Home Value Estimator, Recent Sales, Income, Photos, Schools, Maps, Weather, Neighborhoods, and More. N.p., n.d. Web. 17 Dec "Find Quality Wholesalers, Suppliers, Manufacturers, Buyers and Products from Our Award- Winning International Trade Site. Wholesale Products from China Wholesalers at Aliexpress.com." Aliexpress. N.p., n.d. Web. 17 Dec "Next Day Online Printing." Online Printing Company. N.p., n.d. Web. 17 Dec "Send Better MailChimp." MailChimp. N.p., n.d. Web. 17 Dec P a g e T o s s l e d H a i r S t u d i o