Table of Contents
1. Executive Summary
2 Section 1: Business Idea and Unique Selling Point
2.1 Mission Statement
2.3 Description of Business / Products
2.4 Target Market and Customer Base
2.5 Market Research
2. Section 2: Marketing Plan
3.1 Sources of Competitive Advantage
3.2 Competitive Business Strategy
3.3 Marketing Mix
3. Section 3
4.1 Business Legal Format and organizational Structure
4. Section 4
5.1 Financial Plan
5. Section 5
6.1 Business Controls
6. Conclusion
7.1 Strategic Direction
1. Executive Summary
Before starting a business, it is important that the business must be able to consider a marketing plan approach. Accordingly, the booming tourism industry of Hong Kong has paved the way for different entrepreneurs to put up new business ventures in the Hong Kong market. One of the most progressing business industries today is the spa health and wellness industries. This is because there are more people who are conscious with their figure and their health status. Accordingly, health and wellness programs respond to growing market demands for fitness level improvement; for health lifestyle education; for nutrition counseling; for healing; for holistic, naturopathic, alternative or eastern medicinal practices/therapies. Cosmetic surgery enables people to have the physical appearance that they want which boost their confidence, specifically those who are working in showbiz and entertainment industries. This is something that enhances confidence and personality. It is very important to match between inner beauty and external beauty to gain profound sense of self-comfort and confidence.
Beauty and Aesthetics Inc offers a new way for clients to feel more relaxed and more beautiful by providing them an innovative plastic surgery in a safer and more convenience environment. To achieve the organizational objective, the business will consider a strategic marketing plan.
Section 1: Business Idea and Unique Selling Point
2 Section 1: Business Idea and Unique Selling Point 2.1 Mission Statement
To supply cosmetic services as well as products that enhances the clients’ physical appearance and spiritual relaxation – at affordable prices. Our clients will choose us because of their belief in our ability to meet or exceed their expectations of price, service, and expertise.
2.2 Business Purpose and Aims
l To establish Beauty and Aesthetics Inc as the dominant spa and wellness industry in Hong Kong
l Establish a rapport with other virtual enterprises by exceeding expectations and earning a reputation
l Network and create partnerships to increase sales
l Provide sales incentives to staff to meet goals of 10% per month
l Net income more than 10% sales by the third year
2.3 Description of Business / Products
Beauty and Aesthetic Inc will, upon commencement of operations, provide a broad range of beauty services and products. The resort is for health minded people who want to learn about cleansing fasts, vegetarian food, Yoga and Meditation, exercise and just feeling better, looking better and living longer. Furthermore, the business will strive to provide the clients the latest in cosmetic surgery procedures and services in a safe, caring and comfortable environment. Combine a professional approach to patient education with the personalized attention each clients. We are committed to protecting the clients’ privacy. What will set the business apart form the competition is the commitment to providing all of these services in one convenient location.
We understand managing a business demands dedication, persistence, the ability to make decisions and the ability to manage both employees and finances. We believe we have the management team to meet these demands. The business founded by three owners, all of whom hold director positions.
2.4 Target Market and Customer Base
For Beauty and Aesthetic Inc, their market can be divided into three target populations:
- Individuals: people who wants to improve their physical appearance and health status
- Celebrities: those people who are working in the entertainment industry who wants to enhance their physical appearance to stay good looking in front of the audience.
- Tourists: people who have traveled to find a place for relaxation.
The customer base of Beauty and Aesthetics Inc will mostly cater those individuals within and outside the community and other parts of Hong Kong who wishes to have a good physical appearance and health status
2.5 Market Research
In order to make sure that the business is able to meet and provide the needs and demands of their perspective clients, the business will establish a marketing team that will be responsible for marketing research approach to know the latest trends in cosmetic surgery, yoga, meditation and spa industry and to provide it with the target audience.
2. Section 2: Marketing Plan 3.1 Sources of Competitive Advantage
The sources of competitive advantage of Beauty and Aesthetics Inc includes
Ø Location: providing an easily accessible location for customers.
Ø Environment: providing a private environment conducive to giving relaxing and professional service – plastic surgery procedures.
Ø Convenience: offering clients a wide range of services in one setting, and extended business hours.
Ø Reputation: good reputation of the owner, doctor and other “beauticians” as providing superior personal service.
Unlike other spa and wellness center, this business offers quality products and services which suits the needs of their target market. All the things needed for a certain session will be provided by the business in a convenience and affordable cost. With the growing demands for a resort that will offer beauty services and products, the business can be considered to have an edge from the existing competitors. The latest cosmetics surgery will be provided by the resort ensuring that such service will be safe, caring and comfortable for all the clients. The combined professional approach to patient education and the personalized attention given to each customer will be the best asset of the business.
3.2 Competitive Business Strategy
It can be said that the competitive business strategy of the Beauty and Aesthetic Inc would be differentiation strategy. Through this, Beauty and Aesthetic Inc will provide distinctive and unique services for their target market. It can be said that the timing is right for starting this new business.
Established and emerging resort business need to constantly improve their business and management skills, keep up with new changing trends within the sector, and develop good business contacts and partnerships. Access to resources are needed that can assist operators with market/industry research, product development and improving standards, professional training and education. By innovation and enhancement, it will increase revenues and profit for resort operators; foster sustainable, high quality and wellness experience across the resort, increase the capability of these resort operators to be globally competitive.
Beauty and Aesthetic Inc will be profitable because every needs a vacation, in which they can escape the stress and problems of their everyday lives. It has tremendous capacity for future growth. Future expansions may include develop another branch in China.
3.3 Marketing Mix
3.3.1 Pricing
Ø Beauty and Aesthetic clients consists of high class individuals who are willing to spend money and time just to maintain their good physical appearance.
Ø The pricing approach to be used by the B&A Inc will be the context of market penetration approach since the firm intends to enter and penetrate the Hong Kong market easily. Hence, the initial price will be low for the first quarter and will be higher on the succeeding months.
3.3.2 Distribution
To be known in the market environment or Hong Kong market, the product and services will be distributed directly to its clients and clients through its main branch located at Sheung Sze Wan and through the on-line marketing at the Beauty and Aesthetic Inc’s website. The Beauty and Aesthetic Inc will also find a traveling agency which will promote the Beauty and Aesthetic Inc. In addition, the clients may avail the full services offered by the Beauty and Aesthetic Inc by Beauty and Aesthetics Inc resort.
There are many competitors who are already in the market environment or Hong Kong market that offers this kind of products and services. The products and services of the Beauty and Aesthetic Inc offer a high quality and satisfying features that would be able to have a good reputation in the market environment or Hong Kong market. One of which is their spa services and their body treatments. They give the clients satisfying services which makes them become in demand in the market environment or Hong Kong market.
3.3.3 Advertising and Promotion
To promote the Beauty and Aesthetic Inc and its product, the Beauty and Aesthetic Inc will use video advertisements, print advertisements and the concept of electronic marketing through their website. Herein, the promotion and communication strategy will tend to meet the clients form different areas everywhere, specifically those target markets or the clients in the entertainment industries. Moreover, since the trend in the market environment or Hong Kong market today is the usage of e-marketing, the Beauty and Aesthetic Inc will provide a website that any client can access, i.e. the www.BeautyandAesthetic.com. The main goal of this is to reach different internet users to be able to attract more clients and clients.
3. Section 3 4.1 Business Legal Format and organizational Structure
4.1.1 Organizational Structure
Organizational structure is the specification of the jobs to be done within an organization and the ways in which those jobs relate to one another. Organization structure provides a framework for managers to divide responsibilities, hold employees accountable for their work, and effectively distribute authority to make decisions, and coordinate and control the organization’s work. Organization charts clarify the organization’s structure and show employees where they fit into an operation.
At Beauty and Aesthetics Inc they have a chain of command or unbroken line of authority that connects each level of management. This process makes two things clear such as who is responsible for each task and who has the authority to make official decisions.
4.1.2 Premises
The Resort will be located at Sheung Sze Wan, around 30,560 square feet. The location is strategically situated on the Sheung Sze Wan Road in Sai Kung near Clear Water Bay. It is a high profile area, with easy access from all parts of city.1.
4.1.3 Suppliers
The supplier of the B&A Inc includes hospitals and international affiliate who have innovative facilities to be used in the products and services to be manufactured and distributed by the company. Their products and services that need supply of high tech facilities include the following:
l Plastic surgery: Nose refinement, facial enhancements, liposuction, ear refinement, abdominoplasty, lower boy lift, inner thigh lift, breast refinement.
l Chiropractic care/acupuncture
l Classical Thai and herbal massage therapy
l Thai Herbal steam room
l Spa and salon services and treatments
Whether the customer stay for just a few days or an entire week or more are welcome. It is a great spot to rebuild the body, mind and change habits.
4.1.4 Recruitment and Personnel Management
Beauty and Aesthetics Inc will consider human resource management approach for recruiting and managing their employees. The manpower requirements include those individual who are experienced in providing spa services. In addition, service crews, utility personnel’s will also be required. Healthcare providers or those who will work as an assistant for surgery must have knowledge in medical practices and must be a registered nurse.
The table below shows the Personnel Plan for Beauty and Aesthetics Inc. Herein, specific needs, timing, and compensation, are given for each position
Table 1
Personnel Plan
2008
2009
2010
CEO
HK,000
HK,000
HK,000
Sales Mgr.
HK,000
HK,000
HK,000
Sales Executive
HK,000
HK,000
HK,000
Head Surgeons
HK,000
HK,000
HK,000
Nurses and other Professionals
HK,500
HK,000
HK,000
Account Service Exec.
HK,000
HK,000
HK,000
Administrative Asst.
HK,000
HK,000
HK,000
Administrative Asst.
HK,000
HK,000
HK,000
VP Corp. Dev.
HK,000
HK,000
HK,000
CFO
HK,000
HK,000
HK,000
Branch Sales
0
HK0,000
HK0,000
Other
0
0
0
Other
0
0
0
4. Section 4 5.1 Financial Plan
This part will provide the financial overview of Beauty and Aesthetic Inc as it related to the marketing activities. In this, the break-even analysis, sales forecasts, expenses forecasts will be provided.
5.1.1 Break-even Analysis
The Break-even Analysis indicates that HK,000 will be needed in monthly revenue to reach the break-even point.
Figure 1
Break-even Analysis
Break-even Analysis:
Monthly Units Break-even
HK,000
Monthly Revenue Break-even
HK,000
Assumptions:
Average Per-Unit Revenue
HK.00
Average Per-Unit Variable Cost
HK.50
Estimated Monthly Fixed Cost
HK,000
Sales Forecast
The first two months will be used to get the Beauty & Aesthetics Inc set up and operating. By month three things will get busier. Sales will gradually increase with profitability being reached by the beginning of year two.
Figure 2
Market forecast
Sales Forecast
Sales
FY 2008
FY 2009
FY 2010
Individuals
HK3,710
HK2,527
HK7,424
Celebrities
HK0,304
HK0,474
HK4,528
Tourists
HK,401
HK,300
HK,195
Total Sales
HK9,415
HK7,301
HK2,148
Direct Cost of Sales
FY 2008
FY 2009
FY 2010
Individuals
HK,669
HK8,137
HK7,341
Celebrities
HK,637
HK1,213
HK3,538
Tourists
HK,431
HK,935
HK,088
Subtotal Direct Cost of Sales
HK5,737
HK8,286
HK6,966
Expense Forecast
The expense forecast include the budget which are ramped up for months two through four and then lower and plateau from month five to month 10. Beauty and Aesthetics Inc typically have increased business during the summer and spring season. This generally happens because during the summer, tourists tend to find places where they can relax or beautify their physical appearance. From months 10-12, the marketing costs will increase again.
Monthly Expense Budget
Marketing Expense Budget
FY 2004
FY 2005
FY 2006
Direct mail
HK,267
HK,605
HK,421
Banner ads and TV ads
HK,704
HK,455
HK,047
Other
HK,022
HK,473
HK,228
————
————
————
Total Sales and Marketing Expenses
HK,993
HK,533
HK,696
Percent of Sales
8.59%
3.61%
2.80%
5. Section 5 6.1 Business Controls
6.1.1 Management
B&A Inc management will be accountable for managing the entire operations and services of B&A Inc and this include the business and marketing approach. In addition, B&A Inc management are also accountable for ensuring good relationship with the target market. B&A Inc are accountable for assessing and monitoring the performance of the business each quarter to determine achievement of the firm each quarter and what should be done to increase market awareness.
6.1.2 Sales
The personnel and staffs which include the doctors, nurses and other are highly professional and have license to conduct cosmetic operations and surgery. The knowledgeable and well-trained staffs are a leap against the existing rivals and the sales team is responsible for making the business a success. In order to achieve such forecasted sales or revenues, the company used integrated marketing campaign as their strategy. In this quarterly plan, the company will attempt to use an effective advertising and promotional strategy for each quarter. The promotional strategy includes the use of television, radio, internet and print advertisement
6.1.3 Costs
The following provide the estimated costs which will be considered, other costs will be provided in the financial plan (excel file) provided. The advertisement of the entire project focuses on the TV, Newspaper ads, flyers as well as the Internet. Each TV advertisement causes HK0 dollars per 30 second ad per station. The newspaper ads cost HK0 per advertisement; furthermore, the flyers cost HK0, where in HK.10 each ( 2008).
Communication
Estimated Quantity
Estimated Cost Per Unit
Estimated Subtotal
Flyers
7,000
HK.10
HK0
Television
10
HK00
HK000
Website
3
HK50
HK50
Sponsorship
5
HK00
HK00
Total
HK250
6. Conclusion
7.1 Strategic Direction
7.1.1 Future Opportunities
Growing market in Hong Kong with a significant percentage of the target market still unaware of the existence of the resort industry
The ability to spread overhead over multiple revenue centres. Beauty and Aesthetics Inc will be able to spread the management overhead costs among the multiple stores, decreasing the fixed costs.
7.1.2 Future Threats
Competition from local resort industry that respond to the needs of the clients effectively.
Resort industry chains found in other markets coming to Hong Kong
A slump in the economy reducing customer’s disposable income spent on enhancing their physical appearance and relaxing.
7.1.3 Future Direction
Five years from the initial launch of Beauty and Aesthetics Inc. the company will be able to expand and diversify their market portfolio to meet the needs of the target market. In this regard, new branches from different regions will be considered and also the expansion to international market.
For this market plan, the quarterly action plan in terms of marketing communication and promotion will be conducted with the marketing or sales manager. The main goal of this market strategy is to ensure whether the company has been able to reach its projected revenues and to make sure that the company has a greater relation with the community of Hong Kong especially for its target market.
It can be said that to monitor this issue, the company must have a quarterly meeting to be conducted and lead by the marketing manager. The manager will be the one responsible for discussing what has been the achievement of the company each quarter and what should be done to increase public awareness.
This marketing plan is just create to have a guideline for the launching of the Beauty and Aesthetics Inc resort in Hong Kong. This plan does not give assurance for the company if this will be successful or not. In this manner, there is a need for a contingency plan which can be used in some unexpected scenarios may occur which can affect the implementation of this marketing strategy. Two of the plausible scenarios which may occur includes the revenue exceed projections and revenue miss projections.
For revenues exceed projections this implies that a serious increase income over projections will give the Beauty and Aesthetics Inc the opportunity to increase their quarterly marketing. In this manner, the marketing manager can be hired earlier and the company may be able to provide more equipment and possible add an additional staff to help the company in providing quality service to their clients.
On the other hand, for the revenue miss projections, the company must be able to prepare for this possibility. If the company does not meet its projections, this means that the company should re-double their marketing implementation efforts, The most dangerous things about this scenario is that the first reaction to missed the projected revenue is to decrease expenses, specifically marketing expenses. However, since the company must re-double their marketing strategy they cannot simply decrease their budget for their marketing efforts. In this many additional capital infusions may be deemed necessary and that possibility should be done effectively.
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