Free Essay

Tanning Salon Marketing Plan

In: Business and Management

Submitted By kisbell
Words 1203
Pages 5
Kristen Isbell
1-888-PALM-TAN
kristen.isbell@palmbeachtan.com

Macroenvironment:

* Economic- Tanning is very seasonal with only around 30% of dedicated year round tanners; Inflation affects our business because rising prices causes disposable income to lose a lot of purchasing power

* Social- Tanning is a type of component lifestyle because people choose this service to satisfy their diverse needs and interests

* Technological- Tanning has evolved from laying outdoors to quick and affordable alternative sun tanning beds or immediate spray tans

* Political-Legal- Companies must fully disclose the risks of using a tanning bed; In Texas you must be 18 years or older

Competitive Analysis: * In the tanning industry there is no single player that sets the standard or prices

* Some of our competitors include Hero’s Fitness, Coconut Beach, and Katatonik Tans * Hero’s Fitness: located a couple of doors down from our Midland location is a popular gym that also offers tanning beds; this option is included in the membership fees but is not their primary business focus * Coconut Beach: Our biggest competitor has more beds than we do but on average our package pricing is the same and our beds are very similar; offers 20% off on lotions the 1st day; both open 7 days a week but their hours are not as long as ours * Katatonik Tans: A more basic tanning salon that is a little bit cheaper with not as many options; offers a single tan for just $7.00

Internal Environment:

* Marketing Objectives: * Launch a marketing/advertising campaign * Attract more members * Build a staff of professional employees * Increase revenue in the next year

* Competitive Advantage: * Only major tanning salon on it’s side of town * Competitor next door, Hero’s Fitness, is a gym that does not specialize in the tanning industry. We are professional and have a cleaner environment

* Branding: * Built a website to describe and promote business * Email advertising * Social Media * Rewards program- the longer you stay the more points you earn; also varies with the type of membership you have

* Positioning: * Bronze/Silver: Foundation Building * Gold: Color Enhancing * Platinum: Deep Bronzing * Diamond: Minimum Exposure, Maximum Bronzing

Target Market:

* Thought to be a business targeting teenage girls, the main customer of the industry is made up of women 30 plus with a 25% male demographic as well. * In Texas, the law bans the use of tanning salons for those younger than 18 * The goal is to bring in all customers 18 years and older that are interested in their appearance and tanning in an educated, regulated and healthy fashion Mission Statement: * Palm Beach Tan will become a leading tanning destination for people in the Midland, Texas area. The Company will continually provide the best tanning services in the market. Our salon will be sought after for its atmosphere and excellence. Our people will treat each customer with respect and we will be known for our outstanding customer service. Details: * Size of the Market: * Focused on obtaining customers in the Midland, TX geographic area. This area is large enough to support the Company’s business objectives. Trends that involve tanning is very seasonal. The peak months from January to June you will see an increase in revenue. * Basic Market Segmentation: * “An inappropriate segmentation strategy may lead to lost sales and missed profit opportunities” * Most important would be demographic because age, gender, income, ethnic background are all large factors in the target customer. * This also goes along with customer analysis because 70% women from the ages of 18-49 are the target customers; Lifestyles influence how they spend their time and money. * Choice Criteria Customers use to decide on purchases: * In the tanning industry, since there is not a huge barrier to entry there is numerous amounts of salons in any given location. For a customer to decide on the purchase of yours or a competitor’s service it mainly depends on location and brand. * Location- a main factor because since there are so many salons one closer to you might be a better option * Price- the price of tanning and memberships is consistent throughout all salons with very little differentiation * Brand- Customer loyalty to a brand name could be the reason to decide on a purchase rather than location SWOT Analysis: * Strengths: * The beauty industry is a multimillion dollar industry which has a large customer base * Longevity of the market * Some doctors prescribe tanning because Vitamin D is good for depression * Weaknesses: * Large amount of competition in the tanning industry * It can potentially cause cancer * Anyone under the age of 18 cannot tan so it reduces the target market * Opportunities * Ability to Franchise * Development of new products * Ability to develop additional stores in different areas * Threats * Changes in regulations and potential risks of cancer * Huge existing and potential competition * Companies offering of more than just tanning services example: Hero’s Fitness

Suggested Marketing Objectives:

* New Marketing Objectives: * Grow the annual number of members each year * Develop a reputation that will exceed competitors * Excellent client loyalty by placing strong emphasis in the areas of outstanding service and support

* New Branding Objectives: * Launch a marketing/advertising campaign

Marketing Mix Strategy: * Product: * “The process of darkening your skin by exposing it to the bright light of the sun or a special type of lamp” * We provide 4 different strengths of sunbeds and also a spray tanning system known as the Mystic Tan * Plan for new research on the dangers of exposure to the sun; new improvements on the bulbs and beds

Bronze/
Silver Gold Platinum Diamond

* Price: * Equal with competitors * Ignore changes of competitor's

Pricing | Silver | Gold | Platinum | Emerald | Diamond | Level 1Ambition Bed | 19.00 per Month(Unlimited) | 39.95 per Month(Unlimited) | 59.95 perMonth(Unlimited) | 68.88 per month(Unlimited) | 99.95 per month(Unlimited & Sunless) | Level 2Sunrise BedPassion Plus | | | | | | Level 3iDream BediBed SwingKBL Pure | | | | | | Level 46800 AlphaiDome | | | | | |

Place/Physical Distribution: 4400 North Midland Dr. Ste.150 Midland, TX 79707 * Located in the Cornerstone Shopping Center * Convenient location right off of Loop 250 * Brand new building

* Promotion: * Mainly advertising and sales promotion through email * The image of the company is very upbeat * The company will have a challenger type strategy. Instead of attacking the weaknesses of a competitor, we will attack their strengths. The goal is to capture market share.

Position | Description | Manager | Daily tasks; oversee employees | (2) Full-Time | Cashier/Clean Beds | (2) Part-Time | Cashier/Clean Beds |

Implementation Issues: * Owners: Responsible for financial analysis; regulations; investors; solving major issues * Managers: Responsible for overseeing employees; day-today tasks; solving basic issues; ordering replacement bulbs and lotion inventory * Employees: Responsible for customer service; keeping the facility clean; selling inventory * Majority of issues should be solved at the management level unless they are not qualified to solve the problem, then owners should be involved

Marketing Budget: * Staffing * Managers Salary: approx. $35,000 * Full-Time: Hourly wage $13 * Part-Time: Hourly Wage $8

* Promotion: * Build a website and promote business * Direct mail and email to target audience * Customer Loyalty Programs- Rewards * Rewards to customer referrals

Bibliography

* Tanning Salons, Sunbed Tanning and Sunless Spray Tanning | Palm Beach Tan. (n.d.). Retrieved October 1, 2015, from http://palmbeachtan.com

* The top tanning salon for Midland, TX. (n.d.). Retrieved October 1, 2015, from http://www.coconutbeachtanning.com

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