Style Salon and Spa Master
Content
Style Salon & Spa
E-COMMERCE MARKETING STRATEGY
Presented By: Group Orchid
Dasha Boguslavskaya ([email protected]) Tracey Bailey-Coleman ([email protected]) Jennifer Norris ([email protected]) Kandace Perkins ([email protected])
Presented On: June 24, 2010 Prepared For: MKT 720
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Under the Direction of: Dr. Pingjun (June) Jiang LaSalle University
Table of Contents
Table of Contents.............................................................................................................................2 1.1 Electronic Commerce Objective of the concept .....................................................3 1.2 Key aspects of the Internet Marketing Plan ............................................................3 2.1 Current Players, their offerings, their strengths and weaknesses ............................4 2.2. Market Segments- Who are they? What do they care about? ................................5 2.3 Benefits that customers from different segments obtain from all of the offerings provided by this industry ............................................................................................................5 ....................................................................................................................................................6 2.4 Important trends affecting this industry (e.g technology developments, government regulations) .............................................................................................................6 2.5 Key success factors ..................................................................................................6 3.0 Frame Opportunities and Identify E-Business Initiatives ........................................................7 3.1-3.2 Describe in words the opportunity that you see for an e-Business Initiative. Is this opportunity to be seeded in a new or existing “value web” ........................................................7 3.3 - Articulate a value web for your proposed offering by charting the various ways the offering could have the most influence on the values delivered to customers. ........................8 3.4 Develop a needs-based segmentation strategy to identify distinct groups of customers to whom you could potentially provide attractive offerings. ..........................................................8 3.5 Specify the value propositions for your target segments that would be provided by your eBusiness initiatives ......................................................................................................................9 3.6 Design a Business Model ...................................................................................................10 4.0 Internet Marketing Mix Analysis and Strategies ....................................................................11 ..................................................................................................................................................11 4.1 Goals and Objectives of the website ...................................................................................11 4.2 Product Strategy ..................................................................................................................12 4.3 Pricing Strategy ...................................................................................................................12 4.4 Place Strategy .....................................................................................................................12 5.1 Customer Interface .............................................................................................................14 5.2 Technology Issues ................................................................................................16 5.3 Legal and Ethical Issues: ....................................................................................................18 6.1 Integrate Online and Offline Communication Levers to Increase Web Traffic .................19 6.2 Implement the Site Promotion Specifics .............................................................................19 6.3 Press Release .......................................................................................................................20 7.0 Appendices ..............................................................................................................................22 7.0.1 Financial Analysis ............................................................................................................22
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..................................................................................................................................................23 7.0.2. Control and feedback processes: .....................................................................................23 7.0.3 References used: ..............................................................................................................23
1.0
1.1
Executive Summary
Electronic Commerce Objective of the concept
Style Salon and Spa is located in the metro Philadelphia, PA area. Currently the spa operates one physical location and has a very limited online presence. The current website is lacking in design and merely serves as a hub for general information such as the location, phone number and hours of operation. By resigning the website, Style Salon and Spa will be able to better compete with it's exisiting competitors while increasing it's own sales potential. The redisgned site will have the ability to main customer contact information and preferences while creating a vehicle for the spa to expand it's product promotion and affiliations with brands such as Sephora and Ulta. Customers of the spa will also have the ability to purchase gift certificates online. We will also enhance the overall customer experience by allowing the patron to schedule their appointment online. 1.2 Key aspects of the Internet Marketing Plan
The key aspects of the marketing plan will aid in enhancing the Style Salon and Spa brand in the marketplace and will be accomplished by the following practices: • • • • • • Updating the context of the site to make it more visually appealing Enhancing and updating the services that are available on-line Adding a blog Allowing customers the option to register Ability to purchase gift certifcates Increased site promotion
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o Paid placement o Email marketing
2.0
2.1
Industry Overview
Current Players, their offerings, their strengths and weaknesses
As of June 2008, there were 18,100 spas in the United States, up from 14,600 the year before. Overall, the number of spa locations in the U.S. has grown 20% on average since 2000. As most Americans continue to live a fast paced, high stress lifestyle that comes along with juggling responsibilities such as work, home, children and even school, many are looking for a way to relive those pressures and are turning to spa services as an outlet. Services such as massage therapy which were once considered methods of alternative medicine have become more mainstream and the above statistics clearly illustrate that transition. Currently there are several major chain spas such as Canyon Ranch, Golden Door, and Elizabeth Arden Red Door Spa who operate multiple locations across the United States. There are other national companies such as Massage Envy who focus on a limited amount of services and require most patrons to sign up for a membership style package. However, most spas operate only a single location and typically earn less than $1 million a year. Because the market is so large and fragmented in terms of the services provided, strengths, and weaknesses could vary greatly from one spa to the next. For example, a larger national base chain has better name recognition in the marketplace but could incur difficulties in maintaining loyalty because of the increased cost for services. Whereas a smaller one shop spa may not be
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well known but may be able to build a loyal customer base because of the ability to know more of their customers on a one to one basis. Most spas are grouped under the heading of day spas (60%), resort and hotel spas (27%), and medical spas (10%). However, there are other smaller providers such as destination spas, mineral springs spa, cruise ship spas, club spas and even airport spas.
2.2.
Market Segments- Who are they? What do they care about?
Our segmentation can be grouped into three distinct types: • Geographic o Our primary geographic target would be individuals in the Philadelphia metropolitan area as well focusing mostly on those in the Northeast section of the city and surrounding suburbs • Demographic & Psychographic o We are targeting Gen X , Gen Y and Baby Boomer females. Although we have services for men, our primary target is female. In addition, we are focusing on individuals who have a higher discretionary income who see the importance of spending their hard earned dollars on spa services.
2.3
Benefits that customers from different segments obtain from all of the offerings
provided by this industry The benefits that customers receive from the spa industry are similar despite the varied segments. Most customers are looking for a way to relax and find that services such as massage and facials are the best way to unwind. Others frequent day spas for the enhancement to their outward appearance. By regularly scheduling treatments, customers often look and feel
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better about their personal appearance. Lastly, many customers appreciate the holistic benefits of massage, acupuncture and other Eastern methods.
2.4 regulations)
Important trends affecting this industry (e.g technology developments, government
The key trend affecting this industry is the rapid level of growth thus creating many varying forms of competition. The day spa industry is not highly regulated. Depending on the level of services that are offered, varying degrees of licenses would be required. These requirements vary on a state by state basis.
2.5
Key success factors
Our key success factors are two fold: • Effective Building of Customer Loyalty o By providing a relevant and high level of service to our customers, over time we expect to increase customer loyalty. We want Style Salon and Spa to be the best and only choice that our customers will choose when booking their spa services. By creating a more robust website, we will provide our customers with a vehicle that will make their user experience much more enjoyable. • Sales Growth o By improving our website, we will be able to reach a much larger audience. By doing so, when coupled with our brand loyalty objectives, Style Salon and Spa should realize increased sales within year 1.
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3.0 Frame Opportunities and Identify E-Business Initiatives
3.1-3.2 Describe in words the opportunity that you see for an e-Business Initiative. Is this opportunity to be seeded in a new or existing “value web”
Style Salon and Spa is located in the Northeast area of Philadelphia, PA – home of many upscale spas. As a result, it would seem that Style Salon and Spa would have a small competitive advantage in such a broad market. However, nearby salons such as Ultrabeauty Day Spa and Enigma Spa lack a competitive edge. Therefore, our business has a great opportunity to present itself as a world class spa and salon with world class service. This is an existing value web that will highlight the services that our salon offers. Style Salon and Spa’s current business presently caters to a specific niche market that mostly includes women and some men. In addition, this Spa’s website is outdated, hard to follow, and not necessarily appealing to the eye. Renovating Style Salon and Spa’s business and website would prove to be an existing beneficial competitive advantage to the growth and continued success of this Spa as this Spa would also feature services that cater more to men between the ages of 20-65 and also to senior citizens. There is increasing research and interest in skin care trends that are finally meeting the needs and wants of those seniors and help them in looking younger and feeling better about their physical appearance. Services for geriatric clients would include facial treatments using products that prevent wrinkles, Foot Reflexology, and geriatric massages. These services help to improve health, skin tone, and texture and also increase self-esteem. Men are also a target market that has been neglected within the Spa industry. They experience stress on their jobs or work in fields that are
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rough on their body and could therefore benefit from the services that Style Salon and Spa offer. Services geared towards men help them to relax and also help to improve their appearance. Gentleman services would include men’s manicures and pedicures and even facials – all geared specifically for them. Men will also be able to enjoy the use of our salon when getting haircuts. 3.3 - Articulate a value web for your proposed offering by charting the various ways the offering could have the most influence on the values delivered to customers. Style Salon and Spa’s current website leaves much to the imagination. It will be attractive and appealing and through our website, our customers will receive a virtual experience of what it would be like to indulge in any one of our services. In addition to creating that experience, we also want to assure our customers that our Salon and Spa is professional. On our website, there will be a page that will feature the profiles of each stylist, esthetician, and masseuse. These profiles will include a picture and information such as years of experience and where they went to school. Specifically, our stylists will also feature video blogs that discuss hairstyle trends. We hope that this provides an illustration to our clientele that our staff is experienced and very knowledgeable about the industry in which they work. Our website will also feature testimonials that should also have an influence on the values delivered to our customers as a firsthand experience with our establishment is the best way to learn of the type of business that we are. Our website will also host videos that will feature a virtual tour of the salon/spa. There will also be a community blog on the website where our staff can post new articles relevant to the services they offer. This provides an open forum environment where customers can ask questions. This demonstrates that our business is taken seriously and that we can be trusted to provide the best of service to our customers. 3.4 Develop a needs-based segmentation strategy to identify distinct groups of customers to whom you could potentially provide attractive offerings.
3.4.1 - Customers of spas and salons have very specific needs and Style Salon and Spa puts 100% effort into ensuring that those needs are met. The services and packages offered were created to meet the needs of customers who look for the following: • Relaxation
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• • • •
Relief of stress gained from work Occasions such as birthdays and weddings Lifestyle Quality Hair and Skin Products (By marketing our business through affiliates
such as HairDo by Jessica Simpson, Sephora, and Ulta, we will also be attracting customers that are possibly interested in products such as hair extensions, makeup, hair, and skin products. Even though these products are not sold online, customers will be able to use our site to gain knowledge of the products we offer in our salons as well as additional beauty advice).
3.5 Specify the value propositions for your target segments that would be provided by your eBusiness initiatives
In order to successfully achieve our goals of meeting the underserved needs of our clients and to reach out to neglected target markets such as men and senior citizens, Style Salon and Spa will be offering a variety of services that ensure that our customers will leave feeling relaxed and confident about their physical appearance. Style Salon and Spa will offer hair care services, massages, manicures, pedicures, and facials geared towards spa-goers of any age. There will also be packages offered for special occasions such as bridal and birthdays. In addition, Bundled Spa packages include our most popular services are available for those customers who are interested in receiving a variety of services at one time for a discounted price versus scheduling for these services individually. 3.5.1 - Our website will also provide our customers the opportunity to schedule an appointment to visit our salon and spa. This is a convenient feature that meets the needs of our customers who have hectic schedules or who just may feel more comfortable scheduling an appointment online.
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3.6 Design a Business Model 3.6.1 What is the online business format with which you will deliver the value propositions to the targeted customers? The online business format will consist of a flow that is easy to read and follow. The homepage will serve as a brief introduction to the Spa and Salon. Customers will be able to easily navigate the site by accessing the top tool bar that will feature the Spa’s services offered. Customers will be able to imagine themselves relaxing in our spa after viewing photos of our Spa and Salon on the webpage. Customers will be able to also actively use our site to book appointments, refer a friend, and also to be able to read testimonies of customers who have already had the opportunity to enjoy our Spa. 3.6.2 How will you “package your value propositions” in the form of specific offerings, or combination of offerings? See price description flyer included in the appendix. We also provide gift certificates to our clients in various increments.
3.6.3. – What capabilities and resources would you need to deliver these offerings? It is expected that because of the expansion of our business we will need to make sure that our Style Salon and Spa can accommodate many clients at one time. Therefore, our existing building may require some renovating with the hope of being able to use the current space only. The site must also be conveyed in a professional manner, therefore, a website design specialist will need to be hired. This person should possess the capabilities to turn our webpage into an online spa experience that will hopefully attract more customers to our storefront.
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4.0 Internet Marketing Mix Analysis and Strategies
4.1 Goals and Objectives of the website The overall main goal and objective of updating the website is to gain awareness needed to make the Salon a successful business within the Philadelphia Metropolitan Area. The website will provide information about the company, services, products, and stylists to help increase customer traffic within the salon by 15 percent within the first six months of updating the website. In effect, there will be an increase in profits of 10 percent also within the first six months of updating the website from the new and updated services that are offered. The website will offer the opportunity for Style Salon and Spa to promote our new affiliations that have been established with Jessica Simpson’s HairDo, Locks of Love, Sephora, and Ulta. Also, the website will help build brand awareness and facilitate in spreading the message about the new products and services of Style Salon and Spa. Collecting and storing customer data has been a concern for the Salon. By updating the website and adding new features, like a customer information page; the Salon will be better equipped to identify trends and changes with the customer base. The final goal of the website is to be able to better compete against our competitors. Potential customers are able to view the updated website to learn about the new products and services versus having to come into the Salon.
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4.2 Product Strategy The product strategy of the updated website will be to present all the products and services offered within Style Salon and Spa. All of the products will be described in how the Salon uses them as well as how the client should use their purchased products at home. This feature will help the clients to properly use the products to ensure damage is not done to their hair or skin. Costs to the Salon of having to constantly answer phone calls or walk-in questions will be cut down along with the client having to pay to fix a problem that could have been prevented. The services will also be explained on the website including pre- and postappointment requirements for the clients in conjunction with any medical precautions. Descriptions of the staff at Style Salon and Spa including their schooling and work experience will become another important part of the website. Throughout the website, there will be numerous high definition pictures of the Salon and its facilities. Pictures of clients receiving different treatments will also be represented on the website. Testimonials from current clients and staff will be an integrate part of updating the website. Hopefully, the testimonials will act as friends to potential clients who might need a little push to try a new product or service.
4.3 Pricing Strategy The pricing strategy of Style Salon and Spa will remain relatively similar to the current prices. The prices that have been established are competitive or slightly lower than most of the competitors. Prices could vary depending on demand of certain materials needed for that product or service. With the majority of the potential customers in school or recently graduated money is typically limited for them. By having a slightly lower pricing strategy, will not only help the client base continue to grow but also retain the clients for future products and services.
4.4 Place Strategy Style Salon and Spa will remain at 9808 Bustleton Avenue in Philadelphia. This location is a prime location with numerous shopping centers and houses within walking distance. For now, the Salon will continue to grow its business on Bustleton Avenue. The updated website
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should offer the opportunity for Style Salon and Spa to open the possibility of offering products online to customers. For now, this is not the objective of the website. 4.5 Promotion Strategy 4.5.1 Integrate Online and Offline Strategies Updating the website of Style Salon and Spa is a huge undertaking and different promotion strategies will have to be implemented. The first will be a “Grand ReOpening” of the Salon and especially its website. The Salon will offer new products and services on- and off- line. Online promotion strategies will consist of offering a 15 percent discount for registering and making an appointment the same day online. Once the appointment is over, the clients will receive a $15 gift certificate for their next visit to Style Salon and Spa. There will be a friend referral link for $10 off to the referral and the friend to use towards a manicure. These promotions will be offered online but used offline. The offline promotion will include a huge “Grand Re-Opening” party at the Salon the weekend the website debuts. Mailers will be sent out inviting all the clients as well as local newspapers to visit the Salon. Advertisements will be in local newspapers and magazines the weeks prior describing the festivities and especially the website while offering a 25 percent discount for any appointments during that weekend. 4.5.2 Branding and Communication Strategies Signage will also be a main part of promoting the website. New pictures of updated hair models and logos of new affiliates within the Salon will help the branding of the Salon. The weeks prior to the launch of the updated website, staff will be talking about the website to their clients and mentioning the different discounts being offered. During this time, staff should also be describing the new products and services that are going to be offered following the launch of the website. Advertisments in local newspapers and magazines will also drive traffic to the new website. 4.5.3 Implementing the Marketing Objective
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The implementation of marketing for the new website will become the main aspect of the manager at Style Salon and Spa. The success of the marketing will ultimately affect the success of the website and especially the Salon. The objective of marketing the website is to entice current and potential clients to the website and persuade them to set-up an appointment at Style Salon and Spa. Different discounts and promotional events will ensure that traffic to the website and through the Salon will increase in the first six months. After that time, marketing will decrease for the website but not completely end. New offers and products will pop-up on the ever changing website. Clients will be attracted to continue to visit the website in between their normal visits to the Salon to learn about new promotions.
5.0 Internet Marketing Action Plan
5.1 Customer Interface 5.1.1 Context Style Salon and Spa has a very outdated website. From the colors chosen of the site (shades of orange and black), the random cd in the upper left corner, the dated photos of hairstyles, and the sparse unimaginative layout that leaves you feeling cold and confused. The new website will entail a very relaxing and welcoming environment in which the client can start the spa and salon experience before they even step foot into the physical location. The look of the new website will be a cross between a boutique-like resort and a spiritual retreat: combining a modern simplicity of green and blue colors with the naturelike textures of bamboo, water, and rocks – giving the site viewer a soothing sensation every time. The new website layout will be very easy to navigate: top tool bar will include the spa and salon offerings under their proper categories (Home, Specials, Spa/Salon Tour, Services, Gift Certificates, Massages, Spa Information, Salon Information), the middle of the website homepage will have interactive photos of the spa/salon to show customers what they can expect once they arrive at the Salon. To the
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right of the interactive photos on the homepage, we will provide a “Book an Appointment”, “Refer a Friend” and “Testimonial” links. 5.1.2 Content We will provide customers with an Offering Mix through the use of the services that are offered, the information that we will provide in regards to the different services, and also the products that there will be available on the website through the use of affiliates (such as hair, skin, nails beauty buys). We will also provide an Appeal and Multimedia Mix which will be accomplished through the different photos of the spa/salon, the services that the company provides (photos of hairstyles, nail designs, different types of massage rooms, as well as videos for customers including a virtual tour of the salon/spa and video blogs from the stylists in regards to the new and up and coming styles that are popular). On top of the services offered on the previous website, here are some additional services we will be advertising via the site – see Exhibit I. 5.1.3 Community We will provide a community blog on the new website where stylists can post new articles in regards to the services they offer and clients can ask questions (i.e. Q&A). The dimensions of the community will be Interactive – since the clients can write on the message boards as well as send private messages via the website to the bloggers. 5.1.4 Customization Besides a personal log-in to get to your private account on the website - there will not be customization. 5.1.5 Communication
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We will provide a Broadcast type of communication through the website via mass mailings, FAQ’s, email newsletters with discounts, and monthly update reminders. We will be using the One-to-Many, Non-Responding User communication archetype where the site messages are sent out to the users without the need of the users to respond to them.
5.1.6 Connection On our homepage we will provide links to our affiliates. Some of the Links to Sites will be Locks of Love, hairdo® extensions by Jessica Simpson, Sephora, and Ulta. The connection will be mostly a Destination Site that will have more site-generated content and only a few links to outside sources as mentioned above. 5.1.7 Commerce Although the website will not be selling products directly on the site (they will be providing affiliate links on the site instead) there will be opportunity for customers to buy gift certificates through the website. A shopping cart will be provided at the top of the page for the amount they want to purchase in the Salon and Spa services. We will have both credit card and Pay Pal options available. We will also provide a 10% discount off the gift certificates that were bought through the website. Some of the functional tools that we will be providing are: Registration, Shopping Cart, Security, Credit-Card Approval, Orders through Affiliates, and Delivery Options (for gift certificates – you can get it shipped or come in and pick it up). The prices on the Salon/Spa’s website will have Catalog Pricing – however the prices for the different special offers will change.
5.2 Technology Issues 5.2.1 Text Based Content The font type and size will follow the overall aesthetics of the new design
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5.2.2 Search Site Ability Since the website will be easy to navigate and will be a Destination site where we focus on Spa/Salon services, we will not need a word search option on the website. 5.2.3 Secure Logon for Clients/Employees Visitors will not need to log onto the site. A registration function is available but is not needed to access the site.
5.2.4 Registration Procedure We can use a service website like www.formsite.com for secure customer registration. 5.2.5 Multimedia The website will have videos for customers including a virtual tour of the salon/spa and video blogs from the stylists in regards to the new and up and coming styles that are popular. 5.2.6 Auto Responders to Provide Info We will use auto responders to welcome new customers, and get them back to our website with follow up messages. We can use this to track clicks by using our own domain instead of using a tracking link, as well as keep an eye out on who is clicking on our links. We can also use this to send advertisement emails to customers during the times when they are more likely to check their emails.
5.2.7 Forms for Ordering or Requesting Additional Info We can use a service website like www.formsite.com to help with order forms. We can also use this company for survey forms that the website can provide from time-to-time to get feedback from customers.
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5.2.8 Access Ability and Levels Allowed Customers and staff will be allowed throughout the entire site, however only managers and the webmaster will have the ability to alter content 5.2.9 Credit Card Purchasing We can use a provider of payment gateway services like www.authorize.net to help with online purchasing. Their services can help our site to authorize, settle, and manage credit card transactions. Our site will also have a “Verified Authorize.net Merchant” seal on the homepage of our site to show that we have a secure method for our customers to use.
5.2.10 Web Hosting Site Recently voted the Best Host, for our site we will use Host Monster, www.hostmonster.com. For only $3.95, plus free set up, free domain, unlimited disk space, unlimited data transfer as well as money back at anytime, this is the optimal choice. 5.2.11 HTML Publishing of Site Use a publishing tool like Affiliate Feed Script 1 that will help it “create a fully functional store complete with affiliate selection, categories, full text searching, and a complete back end administration area to support data feed updates, database functions, featured product administration, etc” (www.adikit.com). 5.2.12 Acquiring or Out Sourcing of Technical Personnel We will not need to outsource a technical personal. We will be hiring an in-house technician – a new La Salle University College graduate with a degree in MIS.
5.3 Legal and Ethical Issues:
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We will need to make sure that we have authentic information. We will need to keep all customers personal information as well as payment information private and secured. An ethical issue can arise with pricing – we need to make sure that our website is accurate in what it depicts and that the salon/spa price matches the physical location as well as the online location of the company.
6.0 Site Promotion
6.1 Integrate Online and Offline Communication Levers to Increase Web Traffic The most important leverage to increase web traffic is the Salon staff. They are in direct contact with the customers everyday and can recommend visiting the website for ease of usage and connivance as well as ‘hinting’ new promotions only found on the website. The website will display boldly the Salon’s affiliation with Jessica Simpson’s HairDo, Locks of Love, Sephora, and Ulta. The products and services from these affiliations will be used throughout the Salon increasing the trustworthiness of the website. All of the promotion materials, business cards, reminder cards, etc. will have the website’s URL- www.stylesalonspa.com along with the other contact information. 6.2 Implement the Site Promotion Specifics Search engines such as Google will become an integral part of how Style Salon and Spa will be viewed on the web. Overtime, www.stylesalonspa.com will produce natural results through search engine optimization for the Salon. The main keywords of ‘salon,’ ‘spa,’ and ‘Philadelphia’ will be used throughout the content of the website in a natural way. The HTML title tag has incorporated two of the main keywords helping in producing a natural result- Style
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Salon and Spa. The content and quality of the website will be unmatched by other competitors in the area. The affiliates of the Salon will be linked to the site as well as the Salon’s website link to their websites. Hopefully, the click throughs that are generated by the searches will also boost the natural results. The educational pages needed to increase natural results will come from the staff members writing about the products and how to properly use them at home. Paid placement will have to be used in the beginning of launching the updated website. Currently, the website is not in the first few search engine results pages (CSERP) when using the keywords ‘salon,’ ‘spa,’ and ‘Philadelphia’. The paid placement advertisements will help with increasing brand equity while also improving the natural results of the website. Once a potential client types in the keywords for the Salon into a search engine paid advertisment on the righthand side will have the title- Style Salon and Spa with the option to have one line to demostrate the seventy character benefit of- Let us pamper you! Enjoy a few hours or the whole day with us as we take your stress away. Since the price of our keywords tend to be lower with the inclusion on a geographical location such as Philadelphia the daily budget will be $2.00 a day. Adjustments will have to be made after a three month analysis of budgets and keywords. Email marketing has been limited prior to updating the website. Now, there is no way to collect customer information and use it as a marketing tool. The updated website will have this capability and Style Salon and Spa will have the ability to email newsletters and promotional offers to customers. The email marketing will become another aspect of marketing the Salon versus a major piece which could result in customers becoming frustrated by the Salon.
6.3 Press Release GRAND RE-OPENING OF Style Salon and Spa AND IT’S WEBSITE- www.stylesalonspa.com On July 1 , Style Salon and Spa will be unveiling its new website. The website will
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feature new links, products, affiliations, and special discounts.
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Philadelphia, PA, June 18, 2010—New website- www.stylesalonspa.com, for Style Salon and Spa, 9808 Bustleton Avenue will be launched on July 1 . The Style Salon and Spa has not only
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updated its website but also introduced new products and services. New products like HairDo by Jessica Simpson and beauty products from Sephora and Ulta have already arrived to the Salon. Besides the current services, Style Salon on Spa has incorporated numerous new services including geriatric and pregnancy messages. Beauty and hair tips are described throughout the website. Style Salon and Spa has also partnered with Locks of Love to help individuals overcome their devistating loss of hair. Any customer that makes an appointment for the first weekend in July will receive a 25% discount on any service while enjoying the GRAND RE-OPENING PARTY! Once the website is launched, customers will be able to access their personal log book about the different services and products they have used at Style Salon and Spa. Clients who register online and book an appointment will receive a 15% discount and receive a $15 gift certificate for their next visit. Style Salon and Spa has also started a friend referral program where the referral and friend each receive a $10 coupon to use towards their next manicure. The website will provide clients with infomation about products and services as well as testimonials and a blog. The goal of the new and improved website is to help clients make the best decission on services prior to their appointments. “The website will frequently be changing to encompass the different promotional events and discounts to our visitors” said Style Salon and Spa manager Julia Smith. For further information about the promotional events, please contact Julia Smith at 215-4649050.
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7.0 Appendices
7.0.1 Financial Analysis 7.0.1.1Costs to implement marketing plan (a). Costs to implement the Internet Marketing Plan Typical General Marketing Expenses: Advertising: Expense for Web technician: Other direct and indirect costs: Expense for Control and Feedback tools: Typical Marketing Communications Costs: Printing: Mailing: Website Development & Hosting: Brochure design: Radio Advertising: Newspaper Advertising: Other Marketing costs: $300-$500 $1,500 $300 $400 $500 $500 $300 $200 $350 - $500 $300 $600
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7.0.2. Control and feedback processes: The company Kampyle(http://www.kampyle.com/) provides website owners with branded, fully customizable feedback forms that they can build to their specifications in minutes. Kampyle’s customer feedback forms can be used in an entire site, or in parts of it. Different website feedback forms can be placed in different areas of a website, asking the questions that really matter, where they matter. Kampyle’s solution can be configured to actively ask users for feedback when and where the website owner chooses. In this way, the site owner can gather feedback from users in the most critical areas of his site such as Shopping carts, product search, etc.
7.0.3 References used:
www.spabeautyed.com/career-center/spa-beauty-growth www.hospitalitynet.org/news/4042313.print www.experienceispa.com/media/facts-stats www.hoovers.com/spa-services www.kampyle.com/ www.adikit.com www.formsite.com www.authorize.net www.hostmonster.com/ www.gfmcenter.com/ www.yogawiz.com/massage-therapy/benefits-of-geriatric-massage.html
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www.spas.about.com/od/choosingaspa/tp/spareasons.htm www.ezinarticles.com/?10-Reasons-To-Go-To-A-Sauna---Spa_Or-WellnessCentre&id=600575
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E-COMMERCE MARKETING STRATEGY
Presented By: Group Orchid
Dasha Boguslavskaya ([email protected]) Tracey Bailey-Coleman ([email protected]) Jennifer Norris ([email protected]) Kandace Perkins ([email protected])
Presented On: June 24, 2010 Prepared For: MKT 720
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Under the Direction of: Dr. Pingjun (June) Jiang LaSalle University
Table of Contents
Table of Contents.............................................................................................................................2 1.1 Electronic Commerce Objective of the concept .....................................................3 1.2 Key aspects of the Internet Marketing Plan ............................................................3 2.1 Current Players, their offerings, their strengths and weaknesses ............................4 2.2. Market Segments- Who are they? What do they care about? ................................5 2.3 Benefits that customers from different segments obtain from all of the offerings provided by this industry ............................................................................................................5 ....................................................................................................................................................6 2.4 Important trends affecting this industry (e.g technology developments, government regulations) .............................................................................................................6 2.5 Key success factors ..................................................................................................6 3.0 Frame Opportunities and Identify E-Business Initiatives ........................................................7 3.1-3.2 Describe in words the opportunity that you see for an e-Business Initiative. Is this opportunity to be seeded in a new or existing “value web” ........................................................7 3.3 - Articulate a value web for your proposed offering by charting the various ways the offering could have the most influence on the values delivered to customers. ........................8 3.4 Develop a needs-based segmentation strategy to identify distinct groups of customers to whom you could potentially provide attractive offerings. ..........................................................8 3.5 Specify the value propositions for your target segments that would be provided by your eBusiness initiatives ......................................................................................................................9 3.6 Design a Business Model ...................................................................................................10 4.0 Internet Marketing Mix Analysis and Strategies ....................................................................11 ..................................................................................................................................................11 4.1 Goals and Objectives of the website ...................................................................................11 4.2 Product Strategy ..................................................................................................................12 4.3 Pricing Strategy ...................................................................................................................12 4.4 Place Strategy .....................................................................................................................12 5.1 Customer Interface .............................................................................................................14 5.2 Technology Issues ................................................................................................16 5.3 Legal and Ethical Issues: ....................................................................................................18 6.1 Integrate Online and Offline Communication Levers to Increase Web Traffic .................19 6.2 Implement the Site Promotion Specifics .............................................................................19 6.3 Press Release .......................................................................................................................20 7.0 Appendices ..............................................................................................................................22 7.0.1 Financial Analysis ............................................................................................................22
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..................................................................................................................................................23 7.0.2. Control and feedback processes: .....................................................................................23 7.0.3 References used: ..............................................................................................................23
1.0
1.1
Executive Summary
Electronic Commerce Objective of the concept
Style Salon and Spa is located in the metro Philadelphia, PA area. Currently the spa operates one physical location and has a very limited online presence. The current website is lacking in design and merely serves as a hub for general information such as the location, phone number and hours of operation. By resigning the website, Style Salon and Spa will be able to better compete with it's exisiting competitors while increasing it's own sales potential. The redisgned site will have the ability to main customer contact information and preferences while creating a vehicle for the spa to expand it's product promotion and affiliations with brands such as Sephora and Ulta. Customers of the spa will also have the ability to purchase gift certificates online. We will also enhance the overall customer experience by allowing the patron to schedule their appointment online. 1.2 Key aspects of the Internet Marketing Plan
The key aspects of the marketing plan will aid in enhancing the Style Salon and Spa brand in the marketplace and will be accomplished by the following practices: • • • • • • Updating the context of the site to make it more visually appealing Enhancing and updating the services that are available on-line Adding a blog Allowing customers the option to register Ability to purchase gift certifcates Increased site promotion
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o Paid placement o Email marketing
2.0
2.1
Industry Overview
Current Players, their offerings, their strengths and weaknesses
As of June 2008, there were 18,100 spas in the United States, up from 14,600 the year before. Overall, the number of spa locations in the U.S. has grown 20% on average since 2000. As most Americans continue to live a fast paced, high stress lifestyle that comes along with juggling responsibilities such as work, home, children and even school, many are looking for a way to relive those pressures and are turning to spa services as an outlet. Services such as massage therapy which were once considered methods of alternative medicine have become more mainstream and the above statistics clearly illustrate that transition. Currently there are several major chain spas such as Canyon Ranch, Golden Door, and Elizabeth Arden Red Door Spa who operate multiple locations across the United States. There are other national companies such as Massage Envy who focus on a limited amount of services and require most patrons to sign up for a membership style package. However, most spas operate only a single location and typically earn less than $1 million a year. Because the market is so large and fragmented in terms of the services provided, strengths, and weaknesses could vary greatly from one spa to the next. For example, a larger national base chain has better name recognition in the marketplace but could incur difficulties in maintaining loyalty because of the increased cost for services. Whereas a smaller one shop spa may not be
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well known but may be able to build a loyal customer base because of the ability to know more of their customers on a one to one basis. Most spas are grouped under the heading of day spas (60%), resort and hotel spas (27%), and medical spas (10%). However, there are other smaller providers such as destination spas, mineral springs spa, cruise ship spas, club spas and even airport spas.
2.2.
Market Segments- Who are they? What do they care about?
Our segmentation can be grouped into three distinct types: • Geographic o Our primary geographic target would be individuals in the Philadelphia metropolitan area as well focusing mostly on those in the Northeast section of the city and surrounding suburbs • Demographic & Psychographic o We are targeting Gen X , Gen Y and Baby Boomer females. Although we have services for men, our primary target is female. In addition, we are focusing on individuals who have a higher discretionary income who see the importance of spending their hard earned dollars on spa services.
2.3
Benefits that customers from different segments obtain from all of the offerings
provided by this industry The benefits that customers receive from the spa industry are similar despite the varied segments. Most customers are looking for a way to relax and find that services such as massage and facials are the best way to unwind. Others frequent day spas for the enhancement to their outward appearance. By regularly scheduling treatments, customers often look and feel
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better about their personal appearance. Lastly, many customers appreciate the holistic benefits of massage, acupuncture and other Eastern methods.
2.4 regulations)
Important trends affecting this industry (e.g technology developments, government
The key trend affecting this industry is the rapid level of growth thus creating many varying forms of competition. The day spa industry is not highly regulated. Depending on the level of services that are offered, varying degrees of licenses would be required. These requirements vary on a state by state basis.
2.5
Key success factors
Our key success factors are two fold: • Effective Building of Customer Loyalty o By providing a relevant and high level of service to our customers, over time we expect to increase customer loyalty. We want Style Salon and Spa to be the best and only choice that our customers will choose when booking their spa services. By creating a more robust website, we will provide our customers with a vehicle that will make their user experience much more enjoyable. • Sales Growth o By improving our website, we will be able to reach a much larger audience. By doing so, when coupled with our brand loyalty objectives, Style Salon and Spa should realize increased sales within year 1.
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3.0 Frame Opportunities and Identify E-Business Initiatives
3.1-3.2 Describe in words the opportunity that you see for an e-Business Initiative. Is this opportunity to be seeded in a new or existing “value web”
Style Salon and Spa is located in the Northeast area of Philadelphia, PA – home of many upscale spas. As a result, it would seem that Style Salon and Spa would have a small competitive advantage in such a broad market. However, nearby salons such as Ultrabeauty Day Spa and Enigma Spa lack a competitive edge. Therefore, our business has a great opportunity to present itself as a world class spa and salon with world class service. This is an existing value web that will highlight the services that our salon offers. Style Salon and Spa’s current business presently caters to a specific niche market that mostly includes women and some men. In addition, this Spa’s website is outdated, hard to follow, and not necessarily appealing to the eye. Renovating Style Salon and Spa’s business and website would prove to be an existing beneficial competitive advantage to the growth and continued success of this Spa as this Spa would also feature services that cater more to men between the ages of 20-65 and also to senior citizens. There is increasing research and interest in skin care trends that are finally meeting the needs and wants of those seniors and help them in looking younger and feeling better about their physical appearance. Services for geriatric clients would include facial treatments using products that prevent wrinkles, Foot Reflexology, and geriatric massages. These services help to improve health, skin tone, and texture and also increase self-esteem. Men are also a target market that has been neglected within the Spa industry. They experience stress on their jobs or work in fields that are
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rough on their body and could therefore benefit from the services that Style Salon and Spa offer. Services geared towards men help them to relax and also help to improve their appearance. Gentleman services would include men’s manicures and pedicures and even facials – all geared specifically for them. Men will also be able to enjoy the use of our salon when getting haircuts. 3.3 - Articulate a value web for your proposed offering by charting the various ways the offering could have the most influence on the values delivered to customers. Style Salon and Spa’s current website leaves much to the imagination. It will be attractive and appealing and through our website, our customers will receive a virtual experience of what it would be like to indulge in any one of our services. In addition to creating that experience, we also want to assure our customers that our Salon and Spa is professional. On our website, there will be a page that will feature the profiles of each stylist, esthetician, and masseuse. These profiles will include a picture and information such as years of experience and where they went to school. Specifically, our stylists will also feature video blogs that discuss hairstyle trends. We hope that this provides an illustration to our clientele that our staff is experienced and very knowledgeable about the industry in which they work. Our website will also feature testimonials that should also have an influence on the values delivered to our customers as a firsthand experience with our establishment is the best way to learn of the type of business that we are. Our website will also host videos that will feature a virtual tour of the salon/spa. There will also be a community blog on the website where our staff can post new articles relevant to the services they offer. This provides an open forum environment where customers can ask questions. This demonstrates that our business is taken seriously and that we can be trusted to provide the best of service to our customers. 3.4 Develop a needs-based segmentation strategy to identify distinct groups of customers to whom you could potentially provide attractive offerings.
3.4.1 - Customers of spas and salons have very specific needs and Style Salon and Spa puts 100% effort into ensuring that those needs are met. The services and packages offered were created to meet the needs of customers who look for the following: • Relaxation
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• • • •
Relief of stress gained from work Occasions such as birthdays and weddings Lifestyle Quality Hair and Skin Products (By marketing our business through affiliates
such as HairDo by Jessica Simpson, Sephora, and Ulta, we will also be attracting customers that are possibly interested in products such as hair extensions, makeup, hair, and skin products. Even though these products are not sold online, customers will be able to use our site to gain knowledge of the products we offer in our salons as well as additional beauty advice).
3.5 Specify the value propositions for your target segments that would be provided by your eBusiness initiatives
In order to successfully achieve our goals of meeting the underserved needs of our clients and to reach out to neglected target markets such as men and senior citizens, Style Salon and Spa will be offering a variety of services that ensure that our customers will leave feeling relaxed and confident about their physical appearance. Style Salon and Spa will offer hair care services, massages, manicures, pedicures, and facials geared towards spa-goers of any age. There will also be packages offered for special occasions such as bridal and birthdays. In addition, Bundled Spa packages include our most popular services are available for those customers who are interested in receiving a variety of services at one time for a discounted price versus scheduling for these services individually. 3.5.1 - Our website will also provide our customers the opportunity to schedule an appointment to visit our salon and spa. This is a convenient feature that meets the needs of our customers who have hectic schedules or who just may feel more comfortable scheduling an appointment online.
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3.6 Design a Business Model 3.6.1 What is the online business format with which you will deliver the value propositions to the targeted customers? The online business format will consist of a flow that is easy to read and follow. The homepage will serve as a brief introduction to the Spa and Salon. Customers will be able to easily navigate the site by accessing the top tool bar that will feature the Spa’s services offered. Customers will be able to imagine themselves relaxing in our spa after viewing photos of our Spa and Salon on the webpage. Customers will be able to also actively use our site to book appointments, refer a friend, and also to be able to read testimonies of customers who have already had the opportunity to enjoy our Spa. 3.6.2 How will you “package your value propositions” in the form of specific offerings, or combination of offerings? See price description flyer included in the appendix. We also provide gift certificates to our clients in various increments.
3.6.3. – What capabilities and resources would you need to deliver these offerings? It is expected that because of the expansion of our business we will need to make sure that our Style Salon and Spa can accommodate many clients at one time. Therefore, our existing building may require some renovating with the hope of being able to use the current space only. The site must also be conveyed in a professional manner, therefore, a website design specialist will need to be hired. This person should possess the capabilities to turn our webpage into an online spa experience that will hopefully attract more customers to our storefront.
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4.0 Internet Marketing Mix Analysis and Strategies
4.1 Goals and Objectives of the website The overall main goal and objective of updating the website is to gain awareness needed to make the Salon a successful business within the Philadelphia Metropolitan Area. The website will provide information about the company, services, products, and stylists to help increase customer traffic within the salon by 15 percent within the first six months of updating the website. In effect, there will be an increase in profits of 10 percent also within the first six months of updating the website from the new and updated services that are offered. The website will offer the opportunity for Style Salon and Spa to promote our new affiliations that have been established with Jessica Simpson’s HairDo, Locks of Love, Sephora, and Ulta. Also, the website will help build brand awareness and facilitate in spreading the message about the new products and services of Style Salon and Spa. Collecting and storing customer data has been a concern for the Salon. By updating the website and adding new features, like a customer information page; the Salon will be better equipped to identify trends and changes with the customer base. The final goal of the website is to be able to better compete against our competitors. Potential customers are able to view the updated website to learn about the new products and services versus having to come into the Salon.
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4.2 Product Strategy The product strategy of the updated website will be to present all the products and services offered within Style Salon and Spa. All of the products will be described in how the Salon uses them as well as how the client should use their purchased products at home. This feature will help the clients to properly use the products to ensure damage is not done to their hair or skin. Costs to the Salon of having to constantly answer phone calls or walk-in questions will be cut down along with the client having to pay to fix a problem that could have been prevented. The services will also be explained on the website including pre- and postappointment requirements for the clients in conjunction with any medical precautions. Descriptions of the staff at Style Salon and Spa including their schooling and work experience will become another important part of the website. Throughout the website, there will be numerous high definition pictures of the Salon and its facilities. Pictures of clients receiving different treatments will also be represented on the website. Testimonials from current clients and staff will be an integrate part of updating the website. Hopefully, the testimonials will act as friends to potential clients who might need a little push to try a new product or service.
4.3 Pricing Strategy The pricing strategy of Style Salon and Spa will remain relatively similar to the current prices. The prices that have been established are competitive or slightly lower than most of the competitors. Prices could vary depending on demand of certain materials needed for that product or service. With the majority of the potential customers in school or recently graduated money is typically limited for them. By having a slightly lower pricing strategy, will not only help the client base continue to grow but also retain the clients for future products and services.
4.4 Place Strategy Style Salon and Spa will remain at 9808 Bustleton Avenue in Philadelphia. This location is a prime location with numerous shopping centers and houses within walking distance. For now, the Salon will continue to grow its business on Bustleton Avenue. The updated website
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should offer the opportunity for Style Salon and Spa to open the possibility of offering products online to customers. For now, this is not the objective of the website. 4.5 Promotion Strategy 4.5.1 Integrate Online and Offline Strategies Updating the website of Style Salon and Spa is a huge undertaking and different promotion strategies will have to be implemented. The first will be a “Grand ReOpening” of the Salon and especially its website. The Salon will offer new products and services on- and off- line. Online promotion strategies will consist of offering a 15 percent discount for registering and making an appointment the same day online. Once the appointment is over, the clients will receive a $15 gift certificate for their next visit to Style Salon and Spa. There will be a friend referral link for $10 off to the referral and the friend to use towards a manicure. These promotions will be offered online but used offline. The offline promotion will include a huge “Grand Re-Opening” party at the Salon the weekend the website debuts. Mailers will be sent out inviting all the clients as well as local newspapers to visit the Salon. Advertisements will be in local newspapers and magazines the weeks prior describing the festivities and especially the website while offering a 25 percent discount for any appointments during that weekend. 4.5.2 Branding and Communication Strategies Signage will also be a main part of promoting the website. New pictures of updated hair models and logos of new affiliates within the Salon will help the branding of the Salon. The weeks prior to the launch of the updated website, staff will be talking about the website to their clients and mentioning the different discounts being offered. During this time, staff should also be describing the new products and services that are going to be offered following the launch of the website. Advertisments in local newspapers and magazines will also drive traffic to the new website. 4.5.3 Implementing the Marketing Objective
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The implementation of marketing for the new website will become the main aspect of the manager at Style Salon and Spa. The success of the marketing will ultimately affect the success of the website and especially the Salon. The objective of marketing the website is to entice current and potential clients to the website and persuade them to set-up an appointment at Style Salon and Spa. Different discounts and promotional events will ensure that traffic to the website and through the Salon will increase in the first six months. After that time, marketing will decrease for the website but not completely end. New offers and products will pop-up on the ever changing website. Clients will be attracted to continue to visit the website in between their normal visits to the Salon to learn about new promotions.
5.0 Internet Marketing Action Plan
5.1 Customer Interface 5.1.1 Context Style Salon and Spa has a very outdated website. From the colors chosen of the site (shades of orange and black), the random cd in the upper left corner, the dated photos of hairstyles, and the sparse unimaginative layout that leaves you feeling cold and confused. The new website will entail a very relaxing and welcoming environment in which the client can start the spa and salon experience before they even step foot into the physical location. The look of the new website will be a cross between a boutique-like resort and a spiritual retreat: combining a modern simplicity of green and blue colors with the naturelike textures of bamboo, water, and rocks – giving the site viewer a soothing sensation every time. The new website layout will be very easy to navigate: top tool bar will include the spa and salon offerings under their proper categories (Home, Specials, Spa/Salon Tour, Services, Gift Certificates, Massages, Spa Information, Salon Information), the middle of the website homepage will have interactive photos of the spa/salon to show customers what they can expect once they arrive at the Salon. To the
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right of the interactive photos on the homepage, we will provide a “Book an Appointment”, “Refer a Friend” and “Testimonial” links. 5.1.2 Content We will provide customers with an Offering Mix through the use of the services that are offered, the information that we will provide in regards to the different services, and also the products that there will be available on the website through the use of affiliates (such as hair, skin, nails beauty buys). We will also provide an Appeal and Multimedia Mix which will be accomplished through the different photos of the spa/salon, the services that the company provides (photos of hairstyles, nail designs, different types of massage rooms, as well as videos for customers including a virtual tour of the salon/spa and video blogs from the stylists in regards to the new and up and coming styles that are popular). On top of the services offered on the previous website, here are some additional services we will be advertising via the site – see Exhibit I. 5.1.3 Community We will provide a community blog on the new website where stylists can post new articles in regards to the services they offer and clients can ask questions (i.e. Q&A). The dimensions of the community will be Interactive – since the clients can write on the message boards as well as send private messages via the website to the bloggers. 5.1.4 Customization Besides a personal log-in to get to your private account on the website - there will not be customization. 5.1.5 Communication
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We will provide a Broadcast type of communication through the website via mass mailings, FAQ’s, email newsletters with discounts, and monthly update reminders. We will be using the One-to-Many, Non-Responding User communication archetype where the site messages are sent out to the users without the need of the users to respond to them.
5.1.6 Connection On our homepage we will provide links to our affiliates. Some of the Links to Sites will be Locks of Love, hairdo® extensions by Jessica Simpson, Sephora, and Ulta. The connection will be mostly a Destination Site that will have more site-generated content and only a few links to outside sources as mentioned above. 5.1.7 Commerce Although the website will not be selling products directly on the site (they will be providing affiliate links on the site instead) there will be opportunity for customers to buy gift certificates through the website. A shopping cart will be provided at the top of the page for the amount they want to purchase in the Salon and Spa services. We will have both credit card and Pay Pal options available. We will also provide a 10% discount off the gift certificates that were bought through the website. Some of the functional tools that we will be providing are: Registration, Shopping Cart, Security, Credit-Card Approval, Orders through Affiliates, and Delivery Options (for gift certificates – you can get it shipped or come in and pick it up). The prices on the Salon/Spa’s website will have Catalog Pricing – however the prices for the different special offers will change.
5.2 Technology Issues 5.2.1 Text Based Content The font type and size will follow the overall aesthetics of the new design
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5.2.2 Search Site Ability Since the website will be easy to navigate and will be a Destination site where we focus on Spa/Salon services, we will not need a word search option on the website. 5.2.3 Secure Logon for Clients/Employees Visitors will not need to log onto the site. A registration function is available but is not needed to access the site.
5.2.4 Registration Procedure We can use a service website like www.formsite.com for secure customer registration. 5.2.5 Multimedia The website will have videos for customers including a virtual tour of the salon/spa and video blogs from the stylists in regards to the new and up and coming styles that are popular. 5.2.6 Auto Responders to Provide Info We will use auto responders to welcome new customers, and get them back to our website with follow up messages. We can use this to track clicks by using our own domain instead of using a tracking link, as well as keep an eye out on who is clicking on our links. We can also use this to send advertisement emails to customers during the times when they are more likely to check their emails.
5.2.7 Forms for Ordering or Requesting Additional Info We can use a service website like www.formsite.com to help with order forms. We can also use this company for survey forms that the website can provide from time-to-time to get feedback from customers.
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5.2.8 Access Ability and Levels Allowed Customers and staff will be allowed throughout the entire site, however only managers and the webmaster will have the ability to alter content 5.2.9 Credit Card Purchasing We can use a provider of payment gateway services like www.authorize.net to help with online purchasing. Their services can help our site to authorize, settle, and manage credit card transactions. Our site will also have a “Verified Authorize.net Merchant” seal on the homepage of our site to show that we have a secure method for our customers to use.
5.2.10 Web Hosting Site Recently voted the Best Host, for our site we will use Host Monster, www.hostmonster.com. For only $3.95, plus free set up, free domain, unlimited disk space, unlimited data transfer as well as money back at anytime, this is the optimal choice. 5.2.11 HTML Publishing of Site Use a publishing tool like Affiliate Feed Script 1 that will help it “create a fully functional store complete with affiliate selection, categories, full text searching, and a complete back end administration area to support data feed updates, database functions, featured product administration, etc” (www.adikit.com). 5.2.12 Acquiring or Out Sourcing of Technical Personnel We will not need to outsource a technical personal. We will be hiring an in-house technician – a new La Salle University College graduate with a degree in MIS.
5.3 Legal and Ethical Issues:
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We will need to make sure that we have authentic information. We will need to keep all customers personal information as well as payment information private and secured. An ethical issue can arise with pricing – we need to make sure that our website is accurate in what it depicts and that the salon/spa price matches the physical location as well as the online location of the company.
6.0 Site Promotion
6.1 Integrate Online and Offline Communication Levers to Increase Web Traffic The most important leverage to increase web traffic is the Salon staff. They are in direct contact with the customers everyday and can recommend visiting the website for ease of usage and connivance as well as ‘hinting’ new promotions only found on the website. The website will display boldly the Salon’s affiliation with Jessica Simpson’s HairDo, Locks of Love, Sephora, and Ulta. The products and services from these affiliations will be used throughout the Salon increasing the trustworthiness of the website. All of the promotion materials, business cards, reminder cards, etc. will have the website’s URL- www.stylesalonspa.com along with the other contact information. 6.2 Implement the Site Promotion Specifics Search engines such as Google will become an integral part of how Style Salon and Spa will be viewed on the web. Overtime, www.stylesalonspa.com will produce natural results through search engine optimization for the Salon. The main keywords of ‘salon,’ ‘spa,’ and ‘Philadelphia’ will be used throughout the content of the website in a natural way. The HTML title tag has incorporated two of the main keywords helping in producing a natural result- Style
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Salon and Spa. The content and quality of the website will be unmatched by other competitors in the area. The affiliates of the Salon will be linked to the site as well as the Salon’s website link to their websites. Hopefully, the click throughs that are generated by the searches will also boost the natural results. The educational pages needed to increase natural results will come from the staff members writing about the products and how to properly use them at home. Paid placement will have to be used in the beginning of launching the updated website. Currently, the website is not in the first few search engine results pages (CSERP) when using the keywords ‘salon,’ ‘spa,’ and ‘Philadelphia’. The paid placement advertisements will help with increasing brand equity while also improving the natural results of the website. Once a potential client types in the keywords for the Salon into a search engine paid advertisment on the righthand side will have the title- Style Salon and Spa with the option to have one line to demostrate the seventy character benefit of- Let us pamper you! Enjoy a few hours or the whole day with us as we take your stress away. Since the price of our keywords tend to be lower with the inclusion on a geographical location such as Philadelphia the daily budget will be $2.00 a day. Adjustments will have to be made after a three month analysis of budgets and keywords. Email marketing has been limited prior to updating the website. Now, there is no way to collect customer information and use it as a marketing tool. The updated website will have this capability and Style Salon and Spa will have the ability to email newsletters and promotional offers to customers. The email marketing will become another aspect of marketing the Salon versus a major piece which could result in customers becoming frustrated by the Salon.
6.3 Press Release GRAND RE-OPENING OF Style Salon and Spa AND IT’S WEBSITE- www.stylesalonspa.com On July 1 , Style Salon and Spa will be unveiling its new website. The website will
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feature new links, products, affiliations, and special discounts.
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Philadelphia, PA, June 18, 2010—New website- www.stylesalonspa.com, for Style Salon and Spa, 9808 Bustleton Avenue will be launched on July 1 . The Style Salon and Spa has not only
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updated its website but also introduced new products and services. New products like HairDo by Jessica Simpson and beauty products from Sephora and Ulta have already arrived to the Salon. Besides the current services, Style Salon on Spa has incorporated numerous new services including geriatric and pregnancy messages. Beauty and hair tips are described throughout the website. Style Salon and Spa has also partnered with Locks of Love to help individuals overcome their devistating loss of hair. Any customer that makes an appointment for the first weekend in July will receive a 25% discount on any service while enjoying the GRAND RE-OPENING PARTY! Once the website is launched, customers will be able to access their personal log book about the different services and products they have used at Style Salon and Spa. Clients who register online and book an appointment will receive a 15% discount and receive a $15 gift certificate for their next visit. Style Salon and Spa has also started a friend referral program where the referral and friend each receive a $10 coupon to use towards their next manicure. The website will provide clients with infomation about products and services as well as testimonials and a blog. The goal of the new and improved website is to help clients make the best decission on services prior to their appointments. “The website will frequently be changing to encompass the different promotional events and discounts to our visitors” said Style Salon and Spa manager Julia Smith. For further information about the promotional events, please contact Julia Smith at 215-4649050.
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7.0 Appendices
7.0.1 Financial Analysis 7.0.1.1Costs to implement marketing plan (a). Costs to implement the Internet Marketing Plan Typical General Marketing Expenses: Advertising: Expense for Web technician: Other direct and indirect costs: Expense for Control and Feedback tools: Typical Marketing Communications Costs: Printing: Mailing: Website Development & Hosting: Brochure design: Radio Advertising: Newspaper Advertising: Other Marketing costs: $300-$500 $1,500 $300 $400 $500 $500 $300 $200 $350 - $500 $300 $600
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7.0.2. Control and feedback processes: The company Kampyle(http://www.kampyle.com/) provides website owners with branded, fully customizable feedback forms that they can build to their specifications in minutes. Kampyle’s customer feedback forms can be used in an entire site, or in parts of it. Different website feedback forms can be placed in different areas of a website, asking the questions that really matter, where they matter. Kampyle’s solution can be configured to actively ask users for feedback when and where the website owner chooses. In this way, the site owner can gather feedback from users in the most critical areas of his site such as Shopping carts, product search, etc.
7.0.3 References used:
www.spabeautyed.com/career-center/spa-beauty-growth www.hospitalitynet.org/news/4042313.print www.experienceispa.com/media/facts-stats www.hoovers.com/spa-services www.kampyle.com/ www.adikit.com www.formsite.com www.authorize.net www.hostmonster.com/ www.gfmcenter.com/ www.yogawiz.com/massage-therapy/benefits-of-geriatric-massage.html
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www.spas.about.com/od/choosingaspa/tp/spareasons.htm www.ezinarticles.com/?10-Reasons-To-Go-To-A-Sauna---Spa_Or-WellnessCentre&id=600575
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