DR. YANGA’S COLLEGES, INC.

COLLEGE OF BUSINESS ADMINISTRATION

CRAFTED FOR SUCCESS: TAILORED MARKETING PLAN FOR

ANGEL’S HAIR AND NAIL SALON

In fulfilment of the subject requirements in

CBAFmm113: Fundamentals of Marketing Management
1st Semester A.Y. 2021-2022

Submitted to
MS. ROSALINDA A. ANDRES

Submitted by:
MS. ROCELLE S. TANDIAMA
BSBA 1A – P.A.C.E.D.

Bachelor of Science in Business Administration

 TABLE OF CONTENTS

Sections Pages
EXECUTIVE SUMMARY 2
MANAGEMENT AND ORGANIZATION
The Company…………………………………………………………………... 3
The Management Team ………………………………...……………………. 5
Compensation and Ownership ………………………………………………. 6
CURRENT MARKTING SITUATION ………………………………………........ 7
THREATS AND OPPORTUNITIES ANALYSIS ……………………………….. 16
OBJECTIVES AND ISSUES ………………………………………..................... 18
MARKETING MIX
Product ……..…………………………………………………………………...
18
Price ……………………………………………………………………………..
20
Place …………………………………………………………………………….
21
Promotion ……………………………………………………………………….
22
MARKETING STRATEGY
Product ……..…………………………………………………………………...
22
Price ……………………………………………………………………………..
23
Place …………………………………………………………………………….
23
Promotion ……………………………………………………………………….
23
ACTION PROGRAMS ………………………………………...............................
24
BUDGETS …………………..................……………………...............................
27
CONTROLS …………………..................…………………….............................
28
References …………………………………………………………………………..
29

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 EXECUTIVE SUMMARY

Art Angel's Hair and Nail Salon, a thriving establishment located in Meycauayan,
Bulacan, has rapidly evolved into a premier destination for beauty and grooming.
Founded in June 2020 by the enterprising entrepreneur Camille Ninobla, the salon has
embraced its vision of providing comprehensive grooming and self-care services in a
warm and welcoming atmosphere.
The salon distinguishes itself with personalized services, paying meticulous
attention to the unique preferences of each client. This dedication to excellence is
underpinned by the use of high-quality products and a team of skilled professionals. The
salon further enhances the customer experience by offering complimentary amenities
such as free coffee and snacks.
In response to the dynamic beauty industry, the salon continuously adapts to
meet the evolving needs of its patrons. This adaptability and commitment to customer
satisfaction have driven the salon's impressive total revenue of ₱2.5 million, attesting to
its strong financial performance.
The marketing plan outlined in this document is meticulously designed to
leverage Art Angel's Hair and Nail Salon's unique strengths while addressing its
challenges. Emphasized opportunities include introducing a premium product line,
offering advanced aesthetic services, and opening a second branch to access new
markets. Additionally, strategies to nurture customer loyalty and harness referrals are
thoughtfully aligned to navigate the competitive local landscape.
A pro forma budget forecasts revenue growth, reflecting the salon's remarkable
potential for expansion. Financial control mechanisms are in place to optimize resource
allocation and ensure the attainment of objectives.
Art Angel's Hair and Nail Salon stands on the threshold of a promising future,
primed for sustainable growth and success. This strategic marketing plan mirrors its
dedication to client satisfaction, unwavering service quality, and staying ahead of
industry trends. By capitalizing on strengths and seizing opportunities, the salon is
ideally positioned for an exciting journey of expansion and continued success.

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MANAGEMENT AND ORGANIZATION

The Company

Figure 1. Art Angel’s Hair and Nail Salon.

Art Angel’s Hair and Nail Salon specializes in offering basic salon and nail spa
services, catering to the essential grooming and self-care needs of its clients. It is
strategically located at McArthur Highway, Calvario, City of Meycauayan, Bulacan,
ensuring accessibility and convenience for its clients. The salon was founded in March
2020 by Camille Ninobla, a visionary entrepreneur who, along with her family of all girls,
shared a deep love for salon and spa experiences. The initial opening was delayed until
June 18, 2020, due to the challenges posed by the COVID-19 pandemic and the
ensuing lockdown and quarantine measures. The salon was established with the aim of
turning their passion for beauty and self-care into a business venture. Understanding
the need and desire for salon services, especially among women, they embarked on
this journey.

Camille Ninobla, the founder, borrowed money from her mother, Candy Ninobla,
to start the business. As the salon began to gain profitability, Camille diligently returned
the borrowed funds. The salon's success was also indebted to the expertise and
dedication of tutors and trainers like Sir Rex Echavia and Ms. Mia Cuneta, who played
pivotal roles in its growth. During the salon's second year of operation, they
encountered challenges with staffing, including resignations and performance issues
with the officer in charge. This created disruptions and difficulties in maintaining a
reliable and responsible team. However, after deciding to hire one of her cousins to be
the officer in charge, the salon started to recover.

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 Art Angel’s Hair and Nail Salon operates in the beauty and grooming industry,
providing basic salon and nail spa services to its customers. This industry thrives on
meeting the aesthetic and self-care needs of individuals seeking professional grooming
services. The salon specializes in providing essential salon and nail spa services. Their
offerings include hairstyling, nail treatments, and other grooming services. Notably, on
July 2023, the salon started its research to upgrade its services to include advanced
aesthetic treatments such as diode laser and hydra facials, staying ahead of industry
trends.

Mission:
"To provide top-notch salon and nail spa services that enhance the beauty, confidence,
and well-being of our clients. We aim to create a warm, inviting atmosphere where
everyone can experience exceptional grooming and self-care."

Vision:
"To be the preferred destination for beauty and self-care in Meycauayan City,
continually innovating and expanding our services to meet the diverse needs of our
growing clientele."

Target Market:
• Primary Target: Working professionals in the City Hall vicinity, seeking
convenient grooming services.
• Secondary Target: Women residing in Meycauayan City, Bulacan, looking for
quality salon and spa experiences.
• Tertiary Target: Men in the area, as the salon has expanded its services to
cater to their grooming needs.

The salon competes with local competitors in the beauty industry, including
Zaicut Salon, Nail Corner in SM Marilao, and Artista Salon. Despite competition, Art
Angel's distinguishes itself through its personalized services, complimentary amenities,
and customer-focused approach. The salon's marketing campaigns focus on promoting
its positioning statement, "Where Beauty Meets Personalization: Your Unique Style, Our
Commitment." and including personalized services, complimentary amenities, and
promotions. Digital marketing, social media engagement, and special offers have been
key strategies to attract and retain clients.

As of the latest report, Art Angel's Hair and Nail Salon has achieved a total
revenue of 2.5 million. The salon employs a dedicated team of 12 professionals who
contribute to its success. The business aligns with the criteria set forth in Republic Act
No. 9501 as a sole proprietorship, reflecting its status as a Micro, Small, and Medium-
sized Enterprise (MSME).

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The Management Team

Figure 1.2. Organization Chart

Camille Ninobla – Owner

Camille Ninobla is the visionary owner of Art Angel's Hair and Nail Salon. A
dedicated entrepreneur, Camille brings her passion for beauty and her vision for the
salon to life. With a background in business management and a strong drive to
succeed, she serves as the driving force behind the salon's growth and success.

Merwyn Gallego - Manager

Merwyn Gallego is the capable manager of Art Angel's Hair and Nail Salon. With
years of experience in the beauty and wellness industry, Merwyn oversees the day-to-
day operations of the salon. His expertise in salon management and his commitment to
ensuring a seamless and enjoyable customer experience make him a valuable member
of the team.

Jacque Trinidad – Supervisor

Jacque Trinidad serves as the supervisor at Art Angel's Hair and Nail Salon, and
her attention to detail and organizational skills help maintain the salon's high standards.
She plays a crucial role in coordinating the activities of the hairstylists and nail
technicians, ensuring that clients receive top-notch services.

Wilma Parinas – Cashier

Wilma Parinas manages the financial transactions at the salon as the cashier.
With proficiency in computer skills and a keen eye for accuracy, she ensures that billing,
payments, and receipts are handled efficiently and professionally.

Marlon Lebeca - Senior Hairstylist

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 Marlon Lebeca is a senior hairstylist with extensive experience in hair care and
styling. His expertise, creativity, and commitment to staying updated on the latest hair
trends contribute to the salon's reputation for exceptional hairstyling services.
Edgardo Certeza and Gigi Mendoza – Junior Hairstylist
Edgardo Certeza and Gigi Mendoza are the junior hairstylists eager to learn and
grow in the industry. Under the guidance of their senior member, they are gaining
valuable experience and contributing to the salon's hairstyling offerings.

Michelle Devera – Senior Nail Technician

Michelle Devera is a senior nail technician known for her precision and attention
to detail. She excels in various nail techniques and contributes to the salon's reputation
for exceptional nail services. Her expertise in nail services, combined with her creative
flair, ensures that clients receive top-quality nail treatments.

Jane Apit and Janine San Juan – Junior Nail Technician

Jane Apit and Janine San Juan are the junior nail technicians with a strong focus
on delivering excellent nail care. They work closely with senior technicians to provide a
range of nail services to clients. Their dedication to customer satisfaction and her skill in
nail artistry make her an integral part of the team.

Jennifer Candol and Clara Dela Cerna – Nail Technician

Jennifer Candol and Clara Dela Cerna are other nail technicians eager to learn
and grow in the industry. With the guidance of experienced team members, they are
gaining expertise in nail care and artistry.

The management team at Art Angel's Hair and Nail Salon collaboratively
contributes to strategic decision-making. The owner, Camille Ninobla, values input and
suggestions from each team member and encourages open communication. Decision-
making is informed by a combination of their collective expertise, industry knowledge,
and research to ensure that the salon continues to thrive and meet its goals while
providing exceptional services to its clients.

Compensation and Ownership

• Owner, Manager, Supervisor, and Cashier: These key positions receive

compensation in the form of minimum wage in Bulacan, aligning with local labor
regulations. This ensures that they receive a fair and consistent salary for their
roles.

• Hairstylists and Nail Technicians: The hairstylists and nail technicians operate on
a commission-based system, earning a 10% commission for each client they
serve. In addition to commissions, they receive a daily allowance of 350 pesos.
This compensation structure incentivizes productivity while providing a stable
base income.

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 All employees, regardless of their position, receive daily free snacks and rice,
contributing to their overall well-being. Employees who have been with the salon for
over a year are entitled to benefits such as Social Security System (SSS), PhilHealth,
and Pag-Ibig, enhancing their financial security and ensuring their well-being. Salaries
and allowances are disbursed every Saturday, providing employees with a predictable
and consistent source of income.

Art Angel's Hair and Nail Salon demonstrates a proactive approach to employee
compensation. The salon recognizes the needs of its employees and acknowledges
their contributions to the business. To motivate and reward long-term employees, the
salon increases allowances based on work performance and tenure. This approach is
not only a testament to the owner's dedication to her staff but also contributes to a
positive working environment where employees are motivated to excel and contribute to
the salon's success.

The compensation structure at Art Angel's Hair and Nail Salon is designed to
align with the company's financial performance and growth objectives. By offering a
commission-based system to hairstylists and nail technicians, the salon encourages
them to maximize their client base and contribute to revenue growth. The daily
allowance and additional benefits, such as SSS, PhilHealth, and Pag-Ibig, reflect the
salon's commitment to the welfare of its employees.

Art Angel's Hair and Nail Salon operates as a sole proprietorship. This ownership
structure means that the business is solely owned and operated by Camille Ninobla, the
founder and owner. This structure provides Camille with full control over business
operations, decision-making, and profits. As of now, there are no plans to change the
ownership structure of the business. Art Angel's Hair and Nail Salon remains a sole
proprietorship, and there are no intentions to bring in investors or take the company
public. The owner is committed to the current structure, which allows her to maintain full
control and manage the business according to her vision and values.

CURRENT MARKETING SITUATION

A. Macroeconomic Forces
The Macroeconomic Forces play a crucial role in shaping the business
environment for Art Angel's Hair and Nail Salon. This analysis evaluates and analyze
the external factors that affect the business. By monitoring these forces, the salon can
make informed decisions regarding pricing, marketing, expansion, and financial
planning, ultimately contributing to its long-term success and sustainability in the
marketplace.

• Social, Cultural, Demographic, and Environmental Forces

Art Angel's Hair and Nail Salon pays close attention to the factors like society,
culture, people's characteristics, and the environment that affect how it runs its

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business. These factors are very important for the salon's success and its ability to
adjust to changes in the market.

Art Angel's Hair and Nail Salon strategically caters to a discerning target market
that places high value on fashion and contemporary trends. This aligns seamlessly with
broader social and cultural shifts, where individuals increasingly prioritize personal
grooming and embrace self-care and aesthetics as integral components of their
lifestyles. This cultural metamorphosis towards self-presentation and aesthetics has
undoubtedly played a vital role in the salon's enduring success.
The demographic landscape serves as a significant boon for the salon's business
endeavors. The locale boasts a substantial population of women within Meycauayan
City, providing a robust customer base. Recognizing the evolving demographic
dynamics, the salon has adeptly expanded its services to include men, skillfully
adapting to the changing market composition.
Environmental factors hold a notable sway over the salon's operations. During
adverse weather conditions, such as storms leading to flooding, the salon faces
temporary closures, impacting its business continuity. To address this vulnerability and
align with contemporary environmental concerns, there exists an opportunity for the
salon to explore and implement eco-friendly practices. Such measures not only bolster
the salon's long-term appeal but also contribute to its resilience in the face of
environmental challenges.
• Governmental, Political, and Legal Forces
Governmental, Political, and Legal Forces are crucial aspects that significantly
impact the operational landscape of Art Angel's Hair and Nail Salon. These forces
encompass a range of regulations, political stability, and legal requirements, each of
which plays a distinct role in shaping the salon's operational framework and success.
The salon operates under the purview of a complex web of local and national
regulations governing various aspects of its business. These encompass not only
general business guidelines but also specific industry-related mandates. Compliance
with these regulations is not merely a formality but a fundamental necessity for the
salon's day-to-day operations. Adherence to employment laws, health and safety
standards, and taxation requirements ensures that the salon operates within the bounds
of the law, mitigating risks associated with non-compliance.
The salon benefits immensely from the prevailing political stability in the region.
Political stability fosters a secure and predictable environment in which businesses can
thrive. It reduces uncertainties associated with abrupt policy changes or political unrest,
allowing the salon to focus on delivering quality services to its clientele.
The legal environment exerts a substantial influence on various facets of the
salon's operations. The acquisition and maintenance of licenses and permits are legal
prerequisites for the salon's continued operation. The salon ensures that these
documents remain up-to-date for regulatory compliance.

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 Legal provisions governing labor rights, employment contracts, working hours,
and wage rates impact the salon's human resource management. Art Angel’s Hair and
Nail salon ensures adherence to labor laws to maintain a harmonious working
environment and avoids legal complications.
Taxation laws and regulations directly affect the salon's financial planning and
obligations. The salon’s accurate and timely tax compliance is essential to avoid legal
penalties and maintain financial transparency.
These forces demand meticulous attention to compliance, an appreciation of
political stability's benefits, and a proactive approach to adhering to legal requirements.
Navigating these legal forces not only safeguards the salon from potential legal
challenges but also contributes to its reputation as a responsible and law-abiding
business entity. Furthermore, a clear understanding of the legal landscape ensures that
the salon's operations remain resilient in the face of changing legal requirements and
emerging regulatory trends.
• Economic Forces
The Art Angel's Hair and Nail Salon operates within a marketplace that is
significantly influenced by the local economy. This influence is not a singular or isolated
factor but rather a complex interplay of various elements, all of which converge to shape
the current market conditions for the salon. Among these crucial elements, income
levels and employment rates stand out prominently as they wield a substantial sway
over the purchasing capacity of the salon's primary customer base.
In recent years, the salon has been fortunate to operate within a local economic
landscape characterized by a welcomed and reassuring constancy. This economic
stability has been instrumental in contributing to the salon's sustained patronage and
the overarching stability observed in the market.
One of the most noticeable ways in which these economic forces exert their
influence on the salon is through their direct impact on the spending capacity of their
customer. The income levels of the target market are a linchpin in determining both their
willingness and ability to indulge in the beauty and grooming services offered by the
salon. When individuals enjoy higher disposable incomes, they are naturally more
inclined to allocate a portion of their earnings towards self-care and aesthetic
enhancements, which are at the core of the salon's offerings.
Recent years have witnessed a consistent and predictable trajectory in the
economic landscape, marked by a notable absence of volatility and turbulence. This
economic stability, parallel to a dependable foundation, has allowed the salon to anchor
its operations, forecasts, and strategic decisions securely. In such an economic climate,
both the salon and its customers derive considerable benefits, including the assurance
of business continuity and financial security.
Moreover, during periods of economic uncertainty or downturns, consumers may
exhibit a more cautious approach to spending, potentially affecting the salon's revenue
streams. It becomes abundantly clear that a profound understanding of the prevailing
economic conditions is pivotal for the salon. Such understanding informs the salon's

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strategy not only in terms of marketing but also pricing models, allowing it to adapt to
shifting consumer sentiments.
The intricate interplay of economic forces stands as a pivotal and foundational
element within the Art Angel's Hair and Nail Salon's current market situation. These
forces, which encompass income levels, economic stability, and their potent influence
on consumer behavior, exercise a direct impact on the salon's day-to-day operations,
pricing decisions, and overall business sustainability. An astute awareness of these
economic dynamics empowers the salon to navigate the market with foresight and
precision, ensuring its continued success and resilience.
• Technological Forces
The salon operates in a dynamic landscape where technological forces are
increasingly influential. These forces have ushered in both opportunities and challenges
for the salon's operations, ultimately shaping its current market situation.
In recent years, technology has emerged as an important tool for marketing and
communication, revolutionizing how businesses interact with their target market. Art
Angel's Hair and Nail Salon has adeptly harnessed these digital channels to engage
with its audience effectively. Through the strategic utilization of online platforms, social
media, and digital advertising, the salon has extended its reach and visibility, thereby
connecting with a broader clientele.
Nevertheless, the digital frontier presents a multifaceted challenge—a double-
edged sword. While it empowers the salon to enhance its digital presence and engage
with customers, it also exposes the salon to heightened competition. In this digital era,
customers can readily access information about various salon services, compare prices,
and evaluate customer reviews, facilitating easy comparisons with competitors. As
such, maintaining a distinctive and appealing online identity becomes not just a matter
of choice but a strategic imperative.
Within the salon industry, technological forces have propelled advancements in
service offerings, catalyzing transformative service enhancements. Art Angel's Hair and
Nail Salon has diligently embraced these technological innovations to bolster its
portfolio of services, enriching the overall customer experience.
A notable example of such service evolution lies in the realm of digital perming
and nail art. Technological innovations have facilitated the delivery of these services
with precision and finesse, offering customers the opportunity to explore cutting-edge
aesthetic possibilities. These advancements have not only augmented the salon's
service menu but also resonated positively with its discerning clientele, further
solidifying its market position.
In essence, technological forces are a dual-edged element of Art Angel's Hair
and Nail Salon's current market situation. They enable the salon to expand its reach and
enhance services but also necessitate astute strategies to navigate the competitive
digital landscape. By harnessing technology effectively and continuously innovating its
service offerings, the salon is well-positioned to thrive in an era defined by technological
transformation.

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B. Microeconomic Forces

Microeconomic forces refer to the economic factors that impact individual

businesses and industries rather than the overall economy. These forces include factors
such as the company, suppliers, marketing intermediaries, competitors, publics, and
customers. Microeconomic forces can help Art Angel's Hair and Nail Salon by providing
insights into specific aspects of its business operations and market dynamics

• Suppliers
Art Angel's Hair and Nail Salon relies on a network of suppliers to provide
essential resources for its services. These suppliers include distributors of professional
beauty products, manufacturers of salon equipment and materials, and vendors offering
a range of consumables, such as hair care products, nail polishes, and spa supplies
from Korea and Japan. The relationships with these suppliers are vital to ensure a
steady supply of quality products and materials that meet the salon's standards.

• Marketing Intermediaries
Marketing intermediaries play a significant role in Art Angel's business activities.
These intermediaries include advertising platform that is utilized in promoting the salon's
services and social media platform that amplify the salon's online presence.
Additionally, payment processing services like the mobile bank and GCash help in
handling transactions efficiently. These intermediaries contribute to the salon's
marketing, outreach, and customer engagement.

• Publics
The salon interacts with several publics, including customers, employees, and
the local community. Customers, the primary public, are essential for business growth
and sustainability. Employees represent an internal public, and their satisfaction and
commitment are critical for service quality. Art Angel's Hair and Nail Salon also actively
engages with the local community through initiatives like donations to homes for the
aged during Christmas, fostering goodwill and positive brand image.

• Customers
Art Angel's Hair and Nail Salon's customers form a diverse yet specific
demographic group. They are primarily women aged 25 to 50 with an above-average
lifestyle and a monthly income of 20,000 to 25,000 pesos. The salon's customers seek
quality grooming and self-care services with an inclination toward fashion and trends.
The salon has adapted to customer preferences by offering a wide array of services,
from basic haircuts to advanced aesthetic treatments.

• Competitors
In the fiercely competitive beauty and grooming industry, Art Angel's Hair and
Nail Salon faces competition from various local players, including Zaicut Salon, Nail
Corner in SM, and Artista Salon. These competitors offer similar services and amenities
and vie for the same target market. Monitoring competitors' strategies, services, and

11
pricing is essential for Art Angel's to maintain a competitive edge and distinguish itself in
the market.

Competitive Forces
In the intricate dance of the local marketplace, competitive forces are significant
determinants that shape the strategies and success of Art Angel's Hair and Nail Salon.
Understanding these forces, their nuances, and the salon's strategic responses is
instrumental in appreciating its current market situation.
Art Angel's Hair and Nail Salon operates within a bustling and competitive market
segment, where several local counterparts vie for the patronage of discerning clients.
Among its rivals, prominent names include Zaicut Salon, Nail Corner in SM, and Artista
Salon. The presence of these well-established competitors underscores the level of
competition that permeates the local beauty and grooming industry.
Despite the formidable presence of competitors, Art Angel's Hair and Nail Salon
stands resolute, fortified by a strong market share that attests to its enduring appeal.
The salon enjoys an advantageous market position, boasting a considerably larger
customer base compared to many of its neighboring counterparts. This not only
underscores the salon's ability to capture and retain a substantial share of the local
clientele but also exemplifies its prowess in maintaining a competitive edge in the
marketplace.
In a crowded arena where competitors jostle for attention and patronage, Art
Angel's Hair and Nail Salon has masterfully forged its path to prominence by capitalizing
on its positioning statement that sets it apart from the rest. "Where Beauty Meets
Personalization: Your Unique Style, Our Commitment." This encompasses an array of
distinctive features that collectively contribute to the salon's distinctiveness.
Personalized services, tailored to meet the unique preferences of each client, form the
cornerstone of this differentiation. Moreover, the salon extends a warm and inviting
welcome to its patrons through a thoughtful array of complimentary amenities—think
free coffee and snacks—elevating the customer experience to a level that transcends
mere service provision.
Art Angel's Hair and Nail Salon has strategically harnessed competitive forces to
carve out a niche within a fiercely contested market. Its astute differentiation through
personalized services and the thoughtful provision of complimentary offerings not only
distinguishes the salon but also cements its position as a local beauty and grooming
haven that beckons patrons with its unique charm and allure.

Michael Porter’s Five Forces Evaluation

Michael Porter's Five Forces framework assesses the competitive forces that
affect a business's industry and its ability to generate profits.

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 Figure 2. Five Forces Evaluation by Michael Porter
Threat of New Entrants (Low to Moderate):
The beauty and grooming industry typically have a moderate barrier to entry.
While establishing a salon requires capital for facilities and equipment, it is not
prohibitively high. However, Art Angel's has an advantage as an established brand in
the local market. The salon has built a loyal customer base over time, making it
challenging for new entrants to quickly gain market share. The industry is subject to
regulatory requirements, including permits and licenses, which can deter some potential
entrants. Overall, the threat of new entrants is moderate due to a combination of brand
loyalty and regulatory barriers.
Bargaining Power of Suppliers (Low):
Suppliers in the beauty industry, such as suppliers of haircare and nail products,
generally have low bargaining power. There are numerous suppliers, and the salon can
easily switch between them if necessary. The salon also established relationships with
suppliers, which could lead to favorable terms and discounts. Overall, suppliers have
limited power, and the salon can manage its supplier relationships effectively.
Bargaining Power of Customers (Moderate):
Customers have moderate bargaining power in the beauty and grooming
industry. There are multiple salons and spas to choose from in the local market. Art
Angel's has differentiated itself through personalized services, complimentary amenities,
and a loyal customer base. This may reduce customers' inclination to switch to
competitors. The salon's ability to provide a unique and satisfying experience helps
maintain customer loyalty, mitigating the bargaining power of customers to some extent.
Threat of Substitutes (Moderate):
The threat of substitutes in the beauty and grooming industry is moderate. While
customers may substitute salon services with DIY home treatments or alternative
beauty providers, there is still a demand for professional services. The salon's focus on
personalized services and its unique offerings, such as nail art and advanced hair

13
 treatments, can help mitigate the threat of substitutes. Economic conditions and
individual preferences can influence the degree to which customers consider
substitutes.
Competitive Rivalry (High):
Competitive rivalry is high in the beauty and grooming industry, with numerous
salons and spas competing for customers' attention. Art Angel's Hair and Nail Salon
faces competition from local salons like Zaicut Salon, Nail Corner, and Artista Salon.
The salon's competitive advantage lies in its differentiated services, loyalty programs,
and customer relationships. The intensity of competition may lead to price wars or
promotional activities to attract and retain customers.
Art Angel's Hair and Nail Salon faces a competitive landscape with moderate
threats from new entrants, substitutes, and customer bargaining power. However, the
salon has established itself as a strong brand with loyal customers, reducing the impact
of these forces. Supplier bargaining power is low, and competitive rivalry is high, but the
salon's unique offerings and customer-centric approach position it favorably in the
industry.
Competitive Profile Matrix
A Competitive Profile Matrix (CPM) is a strategic management tool that helps Art
Angel's Hair and Nail Salon assess its competitive position in comparison to its
competitors Zaicut Salon, Nail Corner, and Artista Salon. It does this by evaluating key
success factors and assigning weighted scores to each salon's performance in those
factors. This analysis assists the salon in identifying areas where it can improve and
maintain a competitive advantage within the beauty industry.
Table 1. Competitive Profile Matrix
Art Angel’s Hair
Zaicut Salon Nail Corner Artista Salon
and Nail Salon
Competitive Success Weighted Weighted Weighted Weighted
Weight Rating Rating Rating Rating
Factor Rating Rating Rating Rating
Quality of Service 15% 4 0.60 3 0.45 3 0.45 4 0.60
Customer Loyalty and
12% 4 0.48 3 0.36 2 0.24 3 0.36
Retention
Unique Services and
15% 4 0.60 2 0.30 3 0.45 3 0.45
Amenities
Pricing Strategy 12% 3 0.36 4 0.48 3 0.36 3 0.36
Brand Reputation 10% 4 0.40 3 0.30 3 0.30 2 0.20
Range of Services
10% 4 0.40 3 0.30 3 0.30 2 0.20
Offered
Marketing and
10% 3 0.30 1 0.10 3 0.30 2 0.20
Promotion Efforts
Overall Customer
16% 4 0.64 3 0.48 3 0.48 3 0.48
Satisfaction
Total 100% 3.78 2.77 2.88 2.85

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 Critical Success Factors (CSFs) relevant to the beauty and grooming industry
have been selected. These factors include the quality of services, customer loyalty and
retention, unique services and amenities, pricing strategy, brand reputation, range of
services offered, marketing and promotion efforts, and overall customer satisfaction.
Each factor is assigned a weight based on its perceived importance. The weights
add up to 100%, indicating their relative significance. Each business, including Art
Angel's Hair and Nail Salon and its competitors, is rated on a scale of 1 to 4 for each
factor, where 1 is weak and 4 is strong. The scores are then multiplied by the weights to
calculate the weighted scores for each company.
Based on the analysis made by the marketer, Art Angel's Hair and Nail Salon has
the highest total weighted score (3.78) among the competitors, indicating its perceived
strength in critical success factors relative to Zaicut Salon, Nail Corner, and Artista
Salon.
Internal Factor Evaluation (IFE) Matrix
The Internal Factor Evaluation (IFE) Matrix is a strategic management tool that
helps businesses assess and evaluate their internal strengths and weaknesses. For Art
Angel's Hair and Nail Salon, it can help identify areas where the salon excels and where
it needs improvement, enabling the salon to make informed decisions to enhance its
overall performance.
Table 2. Internal Factor Evaluation Matrix
Internal Factors for commissioned business Rating Weighted
Weight
Art Angel’s Hair and Nail Salon (1-4) Score
Strengths
1. Quality of Service 11% 4 0.44
2. Customer Loyalty and Retention 10% 4 0.40
3. Unique Services and Amenities 7% 4 0.28
4. Pricing Strategy 8% 3 0.24
5. Brand Reputation 8% 4 0.32
6. Range of Services Offered 7% 4 0.28
7. Marketing and Promotion Efforts 6% 3 0.18
8. Overall Customer Satisfaction 12% 4 0.48
Weaknesses
9. Shifting Customer Preferences 9% 2 0.18
10. Increase in the Cost of Supplies, Materials,
7% 2 0.14
and Utilities
11. Intense Local Competition 7% 2 0.14
12. Economic Downturns 5% 3 0.15
13. Weather-related Closures 3% 2 0.06
Total 100% 3.29

15
 Internal factors, which represent strengths and weaknesses of Art Angel's Hair
and Nail Salon, have been identified by the marketer. Strengths include quality of
services, customer loyalty, unique services, brand reputation, and more. Weaknesses
encompass factors like competition, economic downturns, and shifting customer
preferences.
Each factor is assigned a weight based on its perceived importance to the salon's
performance. The weights add up to 1.00 for strengths and 0.61 for weaknesses,
indicating their relative significance. Art Angel's Hair and Nail Salon is rated on a scale
of 1 to 4 for each factor, where 1 represents a weakness and 4 represents a strength.
The scores are then multiplied by the weights to calculate the weighted scores for each
factor.
The Total Strengths Weight and Total Weaknesses Weight represent the
cumulative importance of all strengths and weaknesses, respectively. The overall score
for strengths is 3.29, indicating the salon's internal strengths outweigh its weaknesses.
However, it should continue to address its weaknesses to improve its overall
performance.

THREATS AND OPPORTUNITIES ANALYSIS

The External Factor Evaluation (EFE) Matrix assess Art Angel’s Hair and Nail
Salon external environment by evaluating various opportunities and threats. According
to David, F. (2011), it assigns weights to key external factors and rates the
organization's response to these factors, allowing the salon to identify areas for
improvement and formulate strategies to leverage opportunities and mitigate threats
effectively. This tool aids the salon in making informed decisions to enhance its
competitiveness and overall performance.

Table 3. External Factor Evaluation Matrix

Key External Factors for commissioned Rating Weighted

Weight
business Art Angel’s Hair and Nail Salon (1-4) Score
Opportunities that mold the salon’s strength
14. Growing Local Population 15% 4 0.60
15. Increasing Interest in Grooming and Self- 13% 4 0.52
care
16. Expansion of Services to Cater to Men 12% 4 0.48
17. Technology Advancement 8% 3 0.24
18. Stable Local Economy 7% 3 0.21
Threats that act as the salon’s weaknesses
19. Shifting Customer Preferences 12% 3 0.36
20. Increase in the Cost of Supplies, Materials,
12% 3 0.36
and Utilities
21. Intense Local Competition 10% 2 0.20

16
 22. Economic Downturns 6% 2 0.12
23. Weather-related Closures 5% 2 0.10
Total 100% 3.19

The EFE Matrix assigns weights to each external factor based on their perceived
importance to Art Angel's Hair and Nail Salon's success. Ratings, on a scale of 1 to 4,
indicate the salon's ability to respond to each factor, where 4 represents a strong
response, 3 is a moderate response, 2 is a limited response, and 1 is a weak response.

Green Block (40%)

The growing local population, increasing interest in grooming and self-care, and
the expansion of services to cater to men are the major opportunities that align well with
the salon's strengths, contributing positively to its success. The Growing Local
Population carry a 15% weight because this is a significant opportunity as it provides a
larger customer base for the salon, potentially increasing revenue. Increasing Interest in
Grooming and Self-care carry a 13% weight because it contributes positively to the
salon's success. Finally, Expansion of Services to Cater to Men holds a weight of 12%
because expanding services to men diversifies the customer base and revenue
streams.

Yellow Block (15%)

Other opportunities like the technology advancement and stable local economy,
while important, these opportunities are not weighted as heavily as the other
opportunities mentioned above, but it still contributes to the performance of the salon.
The technology advancement carries an 8% weight as it is considered a moderate
opportunity in this analysis. Stable local economy has a weight of 7% as it is generally
favorable for business operations and customer spending.

Red Block (34%)

On the other side, the salon faces challenges shifting customer preferences,
increase in the cost of supplies, materials, and utilities, and intense local competition,
which act as major threats and can potentially weaken its position. These factors carry a
weight of 12%, 12%, and 10%, respectively as they can impact the salon's ability to
attract and retain clients and pose a significant threat to the salon's market position and
profitability.

Orange Block (11%)

Economic downturns and weather-related closures and have relatively lower
impacts on the salon's current situation, with scores of 6% and 5%, respectively. while a
threat, they are not as significant as other factors.

In this EFE Matrix, Art Angel's Hair and Nail Salon has a Total EFE Score of
3.19, which suggests that the salon is adept at leveraging external opportunities while
addressing external threats. This indicates a favorable external environment and the
salon's ability to adapt and succeed in its market. The salon should continue to leverage

17
its strengths to capitalize on the identified opportunities while implementing strategies to
mitigate the potential impact of the threats it faces.

OBJECTIVES AND ISSUES

1. Increase Monthly Revenue by 20%
The objective is to achieve a 20% increase in monthly revenue by tracking
performance, allocating resources, and pursuing it in October 2023, aligning with
the salon's goal of comprehensive beauty services. This addresses the need for
increased revenue to sustain and expand the salon's operations. It will help offset
costs, invest in new equipment, and support further growth.

2. Introduce Advanced Aesthetic Services

Introducing advanced aesthetic services, such as diode laser and hydra facial
treatments in December 2023, allows the salon to respond to industry trends,
expand its service offerings, and remain competitive while tracking adoption rates
and gathering customer feedback.

3. Enhance Customer Loyalty and Retention

The salon aims to enhance customer loyalty and retention by increasing repeat
client rates by 15% through the implementation of loyalty programs and improved
customer engagement by the end of the year, with progress monitored through
repeat bookings and customer reviews. Enhancing customer loyalty and retention
will help mitigate the effects of competition and foster a loyal client base.

4. Expand Footprint with Second Branch

Art Angel's Hair and Nail Salon aims to open a second branch in a strategically
chosen location to extend services, increase market share, and enhance growth.
The plan includes securing funding and resources, with planning starting in
January 2024 and the branch opening targeted for August 2024. Opening a
second branch is a strategic response to opportunities for growth and aims to
address limitations related to capacity and reach.

5. Strengthen Online Presence and Booking System

To strengthen the salon's online presence by implementing a user-friendly
website like Facebook while also enhancing its online booking platform. This
objective includes monitoring social media progress, online booking rates, and
customer feedback to gauge success. To achieve this, the salon plans to invest
in digital marketing to ensure that the objective remains relevant by enhancing
customer convenience and accessibility.

MARKETING MIX
Product
Art Angel's Hair and Nail Salon offers a comprehensive range of beauty services,
catering to various customer needs and preferences. The salon provides a wide array of
hair services, ensuring that clients can achieve their desired look. This includes

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haircuts, blow-drying, hair straightening, hair and makeup for special occasions, and
rejuvenating hair treatments like the Argan Treatment and hair masks. Clients can also
explore various hair coloring options, including specialized treatments such as Color
with Keratin, Rebond with Color, Rebond with Keratin, and Rebond/Color/Keratin. For
those seeking long-lasting results, the salon offers hair rebonding, Brazilian treatments,
hair spa sessions, hair perming, and hair cellophane treatments. These services are
tailored to meet diverse styling needs and preferences, ensuring that clients leave the
salon with the look they desire.

The salon specializes in nail services, providing clients with top-notch manicure
and pedicure experiences. The offerings include standard manicures and pedicures for
both adults and children, as well as gel polish applications using renowned brands like
Coucou, Orly, and Margaux. Clients can also opt for nail extensions, with choices
between polygel and acrylic nail extensions. For those looking for convenience and
aesthetic appeal, the salon offers fake nails with regular polish or gel polish. To
enhance relaxation and self-care, clients can indulge in luxurious foot spas and jelly
spas. Hand paraffin treatments, gel removal, and hand scrubs are also available to
ensure that clients receive comprehensive nail care.

In addition to hair and nail services, Art Angel's Hair and Nail Salon recognizes
the importance of holistic beauty care. The salon offers an array of additional services
that encompass the broader spectrum of clients' beauty needs. These services include
leg massages, leg waxing, underarm waxing, eyebrow threading, leg threading, eyelash
extensions, and lash extension retouches. Clients can trust the salon to provide
professional, high-quality treatments to enhance their overall appearance and well-
being.

Art Angel's Hair and Nail Salon prides itself on its dedication to personalized
services, ensuring that each client's specific preferences and needs are met. The salon
maintains a commitment to quality through the use of professional-grade products and
the expertise of trained stylists and technicians. What sets the salon apart is its
commitment to enhancing the overall customer experience. Clients are treated to
complimentary amenities, such as free coffee and snacks, further elevating their visit to
the salon.

The salon's comprehensive range of services fulfills diverse customer needs and
preferences. It serves as a one-stop destination for essential grooming and self-care
services. Whether clients are seeking a new hairstyle, a relaxing nail treatment, or other
beauty enhancements, Art Angel's Hair and Nail Salon provides convenience and
efficiency in meeting those needs. Clients can trust the salon to deliver comprehensive
beauty solutions.

19
 The salon's services are currently in the "growth" stage of their life cycle. This is
evident from the salon's continuous expansion of offerings, including the start of their
research and trainings about advanced aesthetic treatments like diode laser and hydra
facials. Additionally, the salon sources its products from professional beauty product
distributors and suppliers of salon equipment and materials from Korea and Japan. To
ensure a consistent supply chain, backup suppliers here in the Philippines are also
readily available.

While the salon primarily deals with beauty and grooming services, there may be
concerns related to the disposal of certain materials and chemicals used in the beauty
industry. Art Angel's Hair and Nail Salon adheres to local regulations regarding waste
disposal and ensures responsible handling of any materials with environmental impact.
The salon is committed to maintaining environmental protection measures, and
regulatory bodies overseeing environmental compliance are closely monitored and
followed to uphold these standards.

Price

Figure 3. Art Angel’s Product Pricing. Image Courtesy of the Salon’s Facebook Page.

Art Angel's Hair and Nail Salon employs a pricing structure that is both
competitive and reflective of the value it provides to its customers. The pricing decisions
are influenced by several key factors:

• Production Costs: The salon considers the costs associated with delivering its
services, including the use of professional-grade products, equipment
maintenance, staff salaries, and overhead expenses. These production costs
play a crucial role in setting the base prices for various services.

20
 • Competitor Pricing: Art Angel's Hair and Nail Salon takes into account the pricing
strategies of competitors in the local market. While aiming to offer competitive
rates, the salon also focuses on differentiating itself through the quality of
services and the overall customer experience.

• Customer Willingness to Pay: The pricing decisions are further guided by an

understanding of the target market's willingness to pay for the services. The
salon aims to strike a balance between affordability and quality, ensuring that its
services are accessible to a wide range of customers while maintaining
profitability.

Place
Art Angel's Hair and Nail Salon strategically positions itself to maximize
accessibility and convenience for its clients. At McArthur Highway, Calvario, City of
Meycauayan, Bulacan is the salon's primary location and serves as its flagship branch.
Situated on McArthur Highway, a prominent and well-traveled road in Meycauayan City,
this location offers easy access for local residents and those passing through the area.
It caters to the salon's core customer base, including residents of Meycauayan and
neighboring communities.

Art Angel's Hair and Nail Salon's primary distribution channel is its physical salon
location on McArthur Highway in Meycauayan. Clients visit the salon in person to
receive a wide range of hair, nail, and beauty treatments. This physical presence
enables face-to-face interactions, personalized consultations, and the delivery of high-
quality services.

Art Angel's Hair and Nail Salon leverages social media platforms, particularly
Facebook, to promote its services, showcase client transformations, and engage with
the audience. While not a direct distribution channel, this online platform plays a crucial
role in attracting and retaining customers, as it serves as a bridge between the salon
and potential clients.

The chosen distribution strategy aligns well with the salon's target market and
customer preferences. It caters to a diverse clientele, including local residents and
individuals seeking grooming and beauty services in the Meycauayan area. The
effectiveness of this strategy is demonstrated by the salon's consistent patronage and
growth in revenue, with a total revenue of 2.5 million.

Overall, Art Angel's Hair and Nail Salon's distribution strategy effectively reaches
its target market by combining traditional physical presence with modern digital
solutions, ensuring accessibility and convenience for a wide range of clients.

21
Promotion

Art Angel's Hair and Nail Salon employs a variety of promotional strategies to
create awareness, engage customers, and drive sales. This includes both online and
offline advertising methods

The salon invests in online advertising, primarily Facebook campaigns to reach

its potential and existing customers effectively. Engaging visuals showcasing the salon's
services and special promotions are regularly posted on Facebook. Paid social media
ads are used to reach a broader audience and keeps customers informed about the
latest offers and beauty trends. On the other hand, the salon also uses traditional
advertising methods, such as flyers, banners, and posters, to create a local presence
and attract walk-in customers.

Building and maintaining a positive reputation is vital for Art Angel's Hair and Nail
Salon. The salon actively engages in public relations efforts to enhance its brand image
and credibility.

The salon also encourages satisfied customers to share their experiences

through testimonials and reviews on Facebook. These reviews not only serve as social
proof but also provide valuable feedback for continuous improvement.

In conclusion, Art Angel's Hair and Nail Salon employs a promotional strategy
that combines online and offline advertising, public relations efforts, social media
engagement, and effective marketing communication methods to achieve its marketing
objectives and maintain its presence in the competitive beauty industry.

MARKETING STRATEGY

Concentric Diversification
Concentric diversification is a growth strategy in which a company expands its
product or service offerings by adding new, but related, products or services to its
existing business. This approach allows the company to leverage its existing customer
base, distribution channels, and expertise to enter new markets or industries that are
closely related to its core business. In the context of Art Angel's Hair and Nail Salon,
concentric diversification would involve introducing new beauty-related products or
services that complement its core offerings of hair and nail salon services.

➢ Introduction of Premium Product Line

Art Angel's Hair and Nail Salon can leverage its existing customer base and
reputation to introduce high-quality beauty products. This strategy aligns with the
opportunity to enhance profitability and cater to customer preferences for salon-
endorsed products. Diversify revenue streams by introducing a premium line of
salon-exclusive hair and skincare products.

22
 ➢ Offering of Advanced Aesthetic Services
Expand service offerings to include advanced aesthetic treatments, such as
diode laser and hydra facials. The demand for advanced aesthetic treatments is
growing. By offering these services, the salon can cater to evolving customer
needs and capitalize on the opportunity to diversify its service portfolio.

Market Development
Market Development is a strategic business growth approach that involves
expanding a company's market reach by entering new geographic areas or targeting
new customer segments with existing products or services. Market development can be
a valuable strategy for business growth, enabling companies to tap into new markets
and diversify their revenue streams while building on their existing strengths and
resources.

➢ Opening of the Salon’s 2nd Branch

Expand the salon's reach by opening a second branch in a new geographic
location. Market development involves reaching new customer segments in
different areas. Opening a second branch will help the salon tap into previously
untapped markets and mitigate the risk of over-reliance on its current location.

➢ Conduct Monthly Mobile Salon Services

Reach customers who may have difficulty visiting the salon due to time
constraints or mobility issues. Some customers may be unable to visit the salon
in person. Providing mobile salon services can tap into this niche market and
address the opportunity for increased accessibility.

Market Penetration
Market penetration is a strategy that focuses on increasing a company's market
share and sales within its existing market or customer base. It involves selling more of
the current products or services to existing customers or attracting new customers
within the same market segment. Market penetration enables the salon to enhance its
market base in an existing industry where similar services are already present and take
their competitor’s market share.

➢ Customer Loyalty Program

Increase customer retention and encourage repeat visits. Art Angel's Hair and
Nail Salon faces intense local competition. Implementing a Customer Loyalty
Program will incentivize existing customers to return for regular services.
Customer who will present a loyalty card will be eligible for discounts. This
strategy addresses the threat of customer attrition to competitors.

➢ Referral Program
Acquire new customers through referrals from existing clients. Satisfied
customers are more likely to refer friends and family. This strategy capitalizes on

23
 the salon's strengths in customer satisfaction and addresses the challenge of
customer acquisition.

ACTION PROGRAMS
Table 4. Action Programs
Contingency
Specific Plan or
Area of Resources Accountable
Strategy Activities or Time Frame Alternative
Concern Needed Persons
Tactics Course of
Action
Diversifying Concentric 1. Identify Product October Owner If the
revenue Diversification and source sourcing 2023 premium
streams and high-quality budget Planning Manager product line
catering to hair and Stage does not
customer skincare Marketing Supervisor gain traction
preferences products. budget April 2024 within the
for salon- Premium Training first year,
endorsed 2. Create a Staff training Products Coordinator consider
products. premium resources will be revising the
product launched product
catalog. offerings or
marketing
3. Develop strategy.
branding
and
packaging
for the
premium
product line.

4.Train staff
on product
knowledge
and
promotion.

5. Launch
the premium
product line
within six
months.
Expanding Concentric 1. Research Equipment July 2023 Owner If initial
service Diversification and invest in budget Research uptake is
offerings to advanced has already Manager slow,
meet the aesthetic Training started consider
growing equipment. resources Supervisor offering
demand for special
advanced 2. Train staff Marketing Training promotions
aesthetic on new budget Within 3 Coordinator to attract
treatments. services. Months customers.
(October Additional
3. Develop 2023- Employees
marketing January
materials to 2023) The

24
 promote aesthetic
advanced services
services. should be
available.
4. Launch
advanced
aesthetic
services
within three
months.
Expanding Market 1. Market Location October Owner If it does not
the salon's Development research to acquisition 2023 Market meet
reach to new identify the budget Research to Manager revenue
geographic second identify the targets
locations to branch Staffing location of Supervisor within the
tap into location. budget the 2nd first year,
untapped branch Training assess the
markets. 2. Secure a Marketing Coordinator location and
suitable budget November- marketing
location. December Additional strategy for
2023 Employees adjustments.
3. Recruit Secure the
and train location.
staff for the
new branch. January-
April 2024
4. Develop Recruit and
marketing Train new
materials for staffs
the branch
launch. May-July
2024
5. Launch Advertise
the second the Salon
branch
within nine July 2024
months. Opening
Addressing Market 1. Equip a Mobile salon October- Owner If the uptake
the needs of Development mobile salon equipment November is slow,
customers team with and supplies 2023 Manager consider
with time necessary Provide offering
constraints supplies and Marketing equipment Supervisor special
or mobility equipment. budget. and promotions
issues. materials for Cashier or
2. Develop a mobile expanding
mobile salon salon Hairstylists the service
services area.
catalog. December Nail
2023 Technicians
3. Promote Advertise
mobile salon the mobile
services salon
through
marketing January
channels. 2024 Starts
offering

25
 4. Begin mobile
offering services
mobile
services
within four
months.
Increasing Market 1. Design a Loyalty October Owner If the
customer Penetration tiered loyalty program 2023 Starts program
retention program design to research Manager does not
and with about the yield the
encouraging rewards. Training program Supervisor expected
repeat visits. resources results
2. Train staff November- Employees within the
to enroll Marketing December first year,
customers budget 2023 Starts consider
in the loyalty to design revising the
program. the loyalty rewards
card and structure.
3. Promote create its
the loyalty program
program
through January
various 2024
channels. Launch the
loyalty
4. Launch program.
the loyalty
program
within three
months.
Acquiring Market 1. Design a Referral October Owner If the
new Penetration referral program 2023 Starts program
customers program design to research Manager does not
through with about the generate
referrals incentives Training program Supervisor sufficient
from for referrers resources referrals
satisfied and November Employees within the
existing referees. Marketing 2023 first year,
clients. budget Referral the consider
2. Train staff loyalty adjusting the
to introduce program. incentives or
and promote promotional
the referral efforts.
program.

3. Develop
marketing
materials for
the referral
program.

4. Launch
the referral
program
within two
months.

26
BUDGETS
Table 5. Pro Forma Budget

This pro forma budget is an overview of expected revenue, expenses, and net
profit for Art Angel's Hair and Nail Salon. The figures are based on the assumptions and
estimates specific to the salon's operations that are given to the marketer. Actual
financials may vary, and it's essential to maintain accurate records and regularly review
and adjust the budget as needed to reflect the business's performance accurately.

With the given net sales estimated at ₱2,500,000.00, the budget breaks down
the allocation of resources and expenses, ensuring that the business operates
efficiently and profitably. A significant gross margin of ₱2,150,000.00 (86%) is expected
after accounting for the cost of sales.

Operating expenses including the expenses for the marketing strategies

proposed are detailed, covering salaries, location acquisition, product sourcing,
equipment and supplies, utilities, marketing, staff training, general and administrative
expenses, as well as the design of loyalty and referral programs. These expenses are
thoughtfully projected to support the salon's growth and strategic initiatives.

The pro forma budget anticipates a net profit before income tax of ₱329,500.00
(13.18%), reflecting the business's potential profitability. It is essential to monitor and
adjust the budget regularly to ensure that the salon remains on track to meet its
financial goals while implementing key marketing strategies and maintaining a healthy
bottom line.

27
CONTROLS

The controls for Art Angel's Hair and Nail Salon play a crucial role in monitoring
the progress and effectiveness of the proposed marketing strategies. To ensure that the
strategies proposed by the marketer align with the objectives of the marketing plan,
monitoring and control are needed.

• Sales and Revenue Tracking

Monitoring net sales and overall revenue will be a primary control mechanism.
This will involve comparing actual sales against the sales targets set in the
marketing plan. Any deviations will trigger a closer examination of marketing
strategies to identify areas for improvement. Monitoring the salon's financial
performance through regular budget reviews and financial statements will ensure
that resources are allocated effectively.

• Customer Retention Rate

Measuring the percentage of repeat customers will assess the effectiveness of
loyalty programs and customer retention strategies. An increasing customer
retention rate indicates that the salon's efforts to keep existing customers
satisfied are working.

• Customer Acquisition Rate

Tracking the number of new customers acquired through the referral program will
determine the effectiveness of this strategy. A rising customer acquisition rate
suggests that existing customers are actively referring new clients.

• Online Presence Metrics

Utilizing web analytics tools, the salon will track website traffic, social media
engagement, and online booking rates. These metrics will gauge the impact of
the salon's online presence and the effectiveness of the digital marketing
strategy.

• Customer Feedback and Reviews

Regularly collecting and analyzing customer feedback and reviews will provide
valuable insights into customer satisfaction and areas for improvement. Positive
reviews and high customer satisfaction scores will indicate that the salon is
meeting customer needs.

These control measures will help Art Angel's Hair and Nail Salon evaluate the
impact of marketing strategies, promptly identify deviations, and make data-driven
adjustments to ensure the objectives of the marketing plan are met. This proactive
approach is vital for the salon's long-term success and sustainability.

28
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