The name of my business is
called Nailchanics.  My business provides instant oil changes and
other preventative maintenance service and nail service all one place.

 

Industry

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The
industry revenue in the oil change service is projected to increase as
disposable income continues to rise. 
Based on the information from  IBISWorld, the revenue expects to grow at an
annual growth rate 0.8% to $804.4 million over the next 5 years up to
2017.  The revenue will continue to grow
from an annualized rate of 0.6% to $7.1 billion.  The profits are expecting to rise as
operators upsell value-added services. 
Besides providing oil changes as the main source of revenue, the
businesses provide additional services such as liquid flushes (transmission or
power steering system).  However, it
would help preventative maintenance for the consumer but also differentiate the
industry amongst the competitors.  Many
retailers or warehouse companies, such as Walmart or Costco do not offer
different types of services.  Their main
focus is the price-competitive oil changes. 
Preventative repair sales are expecting to grow as well as the profit
margin in the next five years to 2022. 
Providing additional services besides instant oil changes would help bolster
revenue growth. 

 

                The nail salon industry provides nail care services
such as manicures, pedicures and nail enhancement serviche which includes
polishes and extensions for both male and female customers.  The revenue forecast is expecting to grow by
a rate of 2.1% to $62.0 billion.  The
demand for the service will continue to grow due to disposable income
improving.  This means the industry is
expected to outperform the economy within the same period.  One study indicates an average woman pays
$29.00 just for a deluxe manicure.  In
2016, a study was performed that showed millenials were more likely to purchase
products in-store such as spa and salons than online.  Below is the list of product segmentation
that are provided in the salons:

·        
Nail polish

·        
Nail Treatment

·        
Nail Polish
removers

·        
Nail Accessories

 

With a strong economy and
a rise of clientele, the salon business continues to boom which investors will
take advantage of by opening more stores. 
 

 

 

 

Mission

                Our
goal is to cater to our #1 customer: Women with reliable, friendly and superior
services. 

Vision

                Nailchanics core value is to respect our customers with integrity
and honesty and maintain diverse culture within our company.

 

Market Research

               

                The
buyer

                In the
interview and based on the analysis above, I have learned in
order to attract customers, target the right type of clients not just anyone
walking through the door.  My ideal
clientele should be perfect for my business that is based on the facility,
location, client experience, talents, and strengths.  The purpose is for my clients to love the
services I would provide, who buys regularly, is easy to service and to refer
my business to their friends. These type of clients would be highly
profitable.  One of the women that I
interviewed suggested adding a play area in the salon.  It would be more convenient for them to bring
their children rather than looking for a sitter. 

                I
need to know other ways to attract customers. 
I think one of them is define yourself. 
For example, I would need to make my services personal, not just
standard manicure/pedicure or lube service. 
I would need to be creative like distributing business cards with a
picture of the business.  Another idea is
to entice new clients with competitive prices. 
The first year of business offer great discounted services but after the
year, while still gaining clients.

Other factors that would influence prospective customers
to choose my business are the following:

 

Cleanliness – make sure the atmosphere is clean such as
floors, restrooms and nail utensils are sanitized daily.

 

Feeling safe and secure – The primary customers will be
women, make sure they feel safe in the stores especially with children
present. Having a storefront that allows full-store visibility is helpful for
both safety and marketing purposes. 

 

Price – offer discounts, promotions or coupons.  Beat my competitors!

 

Store hours – many professional employees work the same
business hours like 9 to 5, it would be great to either open later like 10 and
close late around 8.

 

Parking availability – customers should not have to worry
about parking or pay for parking.  It
would be feasible to find a location that has several parking spaces for the
customers 

 

Payment options – customers should have several options
to pay for the services such as credit or debit cards, cash, Paypal or Paypal
Credit, link the store app to their bank account or personal checks or other
electronic payments.

 

                 

 

Competition

In order to be competitive
with today’s market I would need to make some changes. 

§  Have the business open 7 days a week including some holidays

o  
Instead of
standard business hours – list variety of open hours

o  
Ex.

§  Monday 11 am to 8 pm

§  Tuesday 9 am to 6 pm

§  Have a diverse team that speaks different languages

§  Set up several social media accounts such as Facebook,
Twitter, etc.

o  
Join a group within
Facebook, ex. Mechanic Group or Beauty Group

§  Hire employees with experiences or certifications that
are familiar with the services

§  Target market – working professionals, college
students, suburbans moms and retirees

§  Provide several payment options

o  
Paypal Credit

o  
Paypal

o  
All major credit
cards

o  
Apple Pay

o  
Pay Online

§  Provide additional services besides oil changes and
mani/pedi

o  
Lube

§  Brake service

§  Warranty for all services given

§  Shuttle service for those who cannot wait for their
vehicles

§  Light Replacements

§  Diagnostics

 

o  
Nails

§  Tanning bed/spray tan

§  Make up services

§  Facial treatments            

§  Waxing

§  Massages

 

§  How the customers should shop would be based on the
following:

·        
Product
Attributes

o  
Warranty

o  
Quality

o  
Variety of nail
colors

o  
Competitive
Prices

o  
Service
performance

 

 

 

·        
Company
Attributes

o  
Location

o  
Dependentable

o  
Trust

o  
Loyalty

o  
Convenient

o  
Appearance

 

·        
Service
Attributes

o  
Value

o  
Completeness

o  
Certified/Training

o  
Professional/Friendly

o  
Satisfaction
guarantee service

         Legal

 

If my business is either an LLC
or corporation, it is important to protect the business name so no other
company can use it.  If not, it can lose
many sales if another company opened up using the same name.  I would prefer to register as a
corporation.  I would need to register
under the state of Nebraska.  The state
would check to see if the name is in use by another company within the
state.  Once the application is approved,
the business name is protected in the state but it does not protect the other
49 states.  However, if a company
operates as a sole proprietorship or partnership, there is nothing to stop the
business but it will not be able to register as an LLC or corporation with the
name. If I want to expand business nationwide, I can protect the name on the
federal level under the U.S. Patent and Trademark Office (USPTO) with a
trademark.

 

There are regulation and
policies that require industry operators be subject to state, local and federal
regulations and environmental laws if discharging environmental materials that
are hazardous.  There are regulations
regarding storage and handling the disposal of hazardous substances that the
operators must follow.  Landlords who
rent out their properties must provide zoning approvals and permits to be used
as a retail establishment.  Franchise
operations must abide by Federal Trade Commissions (FTC) or else they are
subject for penalties and fines.  For
nail salons, if in their advertisements mislead or deceive consumers, they are
subject to penalties and fees.  Given
that the nail salon does not manufacture products, however, the cosmetic
products that they sell are subject to regulations by the Food and Drug
Administration (FDA).  Under the state
regulations, manicurists and pedicurists must be licensed under Nebraska (Title
172, Chapter 36).  I would need to have a
Federal Employer Identification Number (EIN) before registering the business
with the Nebraska Department of Revenue.

 

 

 

 

 

 

 

Marketing
Strategies (80 Points)

Marketing Mix (all four)

           
Target Market and Segments

                Today’s
consumers are keeping their vehicles longer and maintaining their vehicles
regularly to maximize the lifetime value of the vehicles. According to the
analysis, consumers between 25 to 44 years old are expecting to generate 32.4%
of industry revenue. This particular age group visits the industry to have them
perform the maintenance as opposed to doing it themselves.  In addition, the ages between 45 to 64 years
old, the expectation of the revenue is 42.1%. 
However, some prefer to do it yourself (DIY) option as oppose to hiring
the industry to do the services.  Many in
a younger age group between 18 and 25 do not own a vehicle.  They service their vehicle less than the
other age groups and do not maintain it unless it is really is necessary.  Therefore, the revenue may generate 10.7%.

 

                The 2015-2016 Nails Magazine
reported that there are 393,581 active nail licenses in the U.S. In the state
of Nebraska, there are 1,103 nail technicians and 379 nail salons throughout
the entire state.  Many consumers
have been indulging frequently with manicures and pedicures due to changes in
their income.  They are seeing as a
necessity to get their nails done. 
Consumers between the ages of 25 and 34 and consumers below the age 25, are
beginning groups going into the workforce after college.  Their income level is lower than the other
age groups.  They are likely to purchase
inexpensive salon items but rather purchase basic nail service or haircut
service. 

 

                The
age group of 35 to 44 makes up the largest market in the salons than the age
groups 45 to 54 and ages 55 and older. 
Many consumers have higher income and are able to purchase more items
such as hair coloring or nail services on a regular basis.  Based on the IBISWorld predicted that 27.0%
accounts more revenue between the ages of 35 to 44.  Women will likely purchase higher value
services in the beauty area such as hair and nails.  The 2015-2016 Nails Magazine reported that 97.0% of women purchased
nail service than men.  The age groups in
45 to 54 and age 55
and older are more concerned with keeping up on coloring their hair to cover
the grey hairs than getting their nails done. 

 

           
Advertising

                I would
be using different types of advertising to target female customers within the
market.  For example, some would be
traditional print advertisement and others would be the ads in the web search
engines.  It is important to have
internet-based strategy since many people seek local services for oil changes
and nail services.  Nailchanics will
develop a website of the company’s services, pricing information and our
contact listing.  The company will
maintain the print ads and traditional advertising within our local communities
to promote the business.  I would create
Facebook, Pinterest, Twitter and other social media accounts and offer
discounts.  Furthermore, there will be an
option to allow online scheduling with the social media accounts.  This allows customers to conveniently
purchase services without having to leave the page. Another idea is to
attend local expos and seminars for example iCan Women’s Leadership
Conference.  This is addition to advertising
the business in magazines, radio stations, TV stations and local newspapers
such as the Omaha World Herald.

 

 

 

 

 

           

Channel

In order to make the business profitable, below is a list of
sales channels that I would use:

1.      
Online or e-commerce: make an appointment on our
company’s website and purchase the products and services all at one time.  This would allow consumers to save time and
less hassle of paying.

2.      
Direct sales – introduce the products and
services to first time or walk-in customers and provide discounts or coupons.

3.      
Outside sales – to build a network of customers,
I would venture out for prospect clients and distribute flyers

4.      
Implement referral program – have repeat clients
refer a family member or a friend and the client will receive a discount on
their next service

5.      
Host invitation only events: hosting an event
every 6 months would help boost new clientele. Inviting both current and
prospective clients, your current clients will do your selling for you.  Give away gifts as a thank you gesture for
coming.

6.      
Introduce customers to Paypal Credit – if a
customer brought a friend but the friend did not have the funds, I would
introduce the friend to apply for Paypal Credit.  My business will be paid up front, and I
would not have to worry about billing or getting paid from the customer.  I would not want my money to walk out the
door without giving them options.

7.      
Direct Marketing – is another method to present
the company by reaching out to prospective customers, you can mail post cards
or coupons, contact them via e-mail

 

           

Brand

There are several ways to market the brand.

·        
Collaborate with non-competitor business within
the same area and agree cross-promote

o   Use
coupons, fliers, bundled promotions or social media platforms

·        
Network

o   Go
out into the public or social media, build my fan base

·        
Be a speaker

o   Be
a guest speaker and represent the business in front of other organizations

·        
Be the expert

o   Without
hiring a professional firm, subscribe to Help a Reporter Out

o   Respond
to reporters’ questions or queries that are needing expert’s advice or stories

·        
Offer pro bono service

o   Women
who are domestic violence victim

o   Low
income families

·        
Offer coupons

o   It
is a good way to attract new customers

o   It
would generate return customers

·        
Brand our cars with logos

 

 

 

 

 

 

 

 

Suggested Plan (60
Points)

 

Our goal is to grow our business to become one of the top
multi-business in the country with instant oil and nail service all in
one.  It will cater to women with a
beautiful lounge and offer a play area for children.  However, many consumers have several reasons
for choosing to do business with certain service providers.  For example, when researching an oil change
store, consumers make decisions based on coupons and offers or knowledge of
service history.  I put together a list
of reasons for oil change selection.

Our target market will be female customers who are car
owners.  Due to the rising cost of
purchasing new vehicles, many people are keeping their vehicles a lot longer
than normal.  Many auto owners like
myself are updating proper maintenance to keep the vehicle longer and to
protect our investment. 

 

In order to reach out to my target market, I will obtain a
list of the car owners’ VINs.  The list
will be provided a by a third party agency that provides a marketing list to
target consumers based on the demographics, vehicle age and more.  Examples of data types:

 

·        
Make, model, and year

·        
Selection criteria such as engine size, fuel
type, and wheel size

·        
Vehicle owners information includes phone
numbers and emails

 

To further analyze my customers’ zip codes, I would to
pay a subscription fee at Esri’ website esri.com/data/esri_data/index.html
 Once I subscribe, I would obtain a range
from lifestyle to consumer spending, business data information and much more.  The website provides current year estimates and
up to 5 years of projected demographic data. The criteria
include the following:

·        
Population and households

o   Number
of people living in the geographic area

o   Number
of people living in the same housing unit

·        
Household Income

o   Net
worth, disposable income

·        
Education levels

o   Consumers
with higher education are high maintenance or to say enjoy “the finer things”

·        
Occupations

o   Target
consumers based on their occupations

·        
Ethnicity

o  
Spending
habits based on the ethnic group such as goods and
services

§  Many like to get beautified or get their nails serviced

 

 

Another suggestion to target my audience by researching
local competitors and find out their customers. 
It may be an inexpensive effort but it would provide some ideas of my
own campaigns and help understand the competitors’ process. 

 

Another idea is to write out a list of the features of my
products and services. 

 

Many drivers of aging vehicles would require maintenance.  I obtained a list from a mechanic that I
interviewed and provided ideas of segments.

Another idea is to register the company to E-tailing.  Automotive aftermarket is a retail sector where
I can sell auto parts via public websites DIY (do-it-yourselfers) and service
professionals.  It has become one of the
most popular site to generate revenue in the auto parts market.  Many DIY consumers purchase the products
online due to price, convenience and home delivery.  In order to encourage DIY consumers of
returning to purchase more products, I need to provide coupons and offers,
especially user friendly online shopping and check out experience.

 

It is important to understand the audience by reviewing
past purchase data, missing demographics and

update email addresses and phone numbers.  It would help maximize customer lifetime
value, obtain new business through referrals and enhance customer retention.

 

As vehicles continue to age and require repairs, there
will be a demand for parts and services. 
It is important to get our brand recognized with consumers with great
offers and specials. The next time a driver requires repairs or an oil change
my business will be the one servicing the vehicle. 

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