“Bringing Our City to Yours”

Ashanti WeaverMarketing Plan for CityGirl Hair Salon

MSM 601: Entrepreneurship

Marketing Plan Executive Summary

CityGirl Hair Salon is a full service professional hair salon dedicated specifically to the art of

sew-in weaving. Sew-in weaving is a method that is used to add extensions and can be used to

hide one’s own hair (full sew-in) or simply to add length and volume (partial sew-in). Popularity

and demand for sew-in weaving is at an all-time high, making this the perfect season to start a

new venture in the beauty industry. Upon start up CityGirl staff will focus their talents on

offering professional hair care services. Within the year CityGirl will expand to offer

professional nail and makeup services to clientele. The business will initially be located in

Bowdon, a smaller city in Carroll County, Georgia with plans to develop a salon in the greater

Atlanta area. Staff as a whole will come together for and coordinate all marketing efforts, but

stylists will be individually responsible for building their own clientele as the positions are

commission based. Our competitive advantage lies in our location and our services, as Bowdon

is a smaller city on the outskirts of Atlanta near the campus of University of West Georgia. Our

mission is to provide a high level of service in an enjoyable atmosphere that will enhance our

clients’ physical appearance as well as provide mental relaxation.

Business name: CityGirl Hair Salon

Business motto: “Bringing Our City to Yours.”

Business structure: General Partnership

Business location: Bowdon, GA

Business owners: Ashley Williams and James Coleman

Staff: 5-7 professionally licensed stylists including owner Ashley Williams

Date opened: May 11, 2013

Relevant owner experience: Ashley Williams has worked in the hair industry for over 10 years

with training from elite stylists across the country. She has also worked with Atlantic Records

recording artists and other professional celebrities. Ashley serves as owner and manager of day

to day operations and staffing. James Coleman is a business-savvy individual who has worked

the last 10 years providing financial investments for start-up businesses primarily in the greater

Atlanta area. James contributed the financial backing to secure the location and salon

equipment and will oversee all profits and losses.

General Company Description

CityGirl will provide a wide range of beauty services and products. We will promote sew in

weaving but will not be limited to one service. Our mission is to provide a high level of service

in an enjoyable atmosphere that will enhance our clients’ physical appearance as well as

provide mental relaxation. Atlanta is widely renowned as being one of the hair care capitals in

the United States, especially because it serves for the headquarters of the hair product-

producing company Bronner Bros. To separate ourselves from our competitors, our

commitment is to provide superb, swift service at an affordable cost in a great location. While

there are several “quick salons”, CityGirl will excel due its attention to detail and emphasis on

community and customer service. CityGirl aims to offer luxurious styling without the high end

costs to customers.

Situation Analysis

CityGirl Hair Salon is in its first year of business as a start-up company. We believe that a non-

strategic approach to marketing would be our best option to increase the awareness of our

brand and build clientele, evaluating our marketing efforts on a month to month basis. Stylist

positions are commission based so stylists will be responsible for building their individual

clientele. The staff as a whole will work together to market the salon and our services. A

majority of hair salons that specialize in sew-ins are located in the heart of Atlanta. Bowdon,

GA is more than 60 miles outside of Atlanta, which is roughly a 2 hour commute in Atlanta

traffic.

Market Needs

The market need is for a conveniently located hair salon with skilled staff and reasonable

pricing. The keys to success in our business are:

Location: providing an easily accessible location for customers with adequate parking

Environment: proving an environment conducive to giving relaxing and professional

service.

Convenience: offering clients a wide range of superb service at a fast pace

Reputation: reputation of the owner and other stylists as providing superior services as

well as maintaining great relationships with clientele.

Primary Target Market: CityGirl will be targeting women of all ages with the desire for a

professional stylist and pampering experience. It is not our goal to target any one particular

age group or ethnicity. Sew-ins and extensions are becoming more popular among women of

all ages so we are not looking to exclude based on age, income level, or ethnic group.

Competitors: Upon researching and surveying the neighborhood, there are no salons in the

Bowdon area. Carrollton, GA is the next nearest city with a few larger salons in the area, but

again no salon specializing in sew-ins. As CityGirl expands to offer makeup and nail services

competition will arise from a few businesses in the area primarily because these salons have

been in business for years and have developed relationships with customers in the surrounding

neighborhoods:

Chris Cole Salon – professional salon offering bridal services, spa services for

men, women, and children. This salon would be our major competitor as they do

offer extension services, similar to sew-ins.

Elle Salon on the Square: offers services for men and women as well as makeup

artistry.

Hair Art Salon: offers professional styling services for women, waxing, tanning,

makeup artistry and bridal packages.

Additional salons in Atlanta: Atlanta is the nearest metropolis to Bowdon, GA

(the owner resides in Atlanta, GA) therefore the salons in

SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the company,

and describe the opportunities and threats facing CityGirl Hair Salon in Bowdon as well as

surrounding cities in Georgia.

Strengths

Salon is located in a city with no other competitors specializing in sew-in weaving

Well trained and licensed employees with good styling skills and customer-focused

business practices

CityGirl targets women of all ethnicities rather than focusing on African American

women, like other competitors in the greater Atlanta area.

Pricing does not compete with other high end salons

Weaknesses

New entry into the market so there is a lack of brand equity that some of the salons in

the surrounding cities possess

Distance from the Atlanta metropolis could prevent customers from traveling to salon

Salon is located in a city of 2000 people, small population of clientele to target

Opportunities

A steady growing market that is traditionally unaffected by the economic environment

Increasing sales opportunities as more people from surrounding cities frequent CityGirl

Expanding clientele and target markets by offering additional services

Threats

Established competition from surrounding cities, particularly Carrollton, GA

Marketing Plan

As this is a start-up business, our goal is to provide a non-strategic approach to marketing

rather than a more formal plan. Based off the experience of the salon owner, our marketing

plan consists of a wide range of marketing strategies outlined below:

Community Outreach: One of our top advertising campaigns will be to reach out to the

surrounding businesses, schools and community leaders to announce our presence. We

have already initiated this by visiting other businesses, handing out flyers, and wearing

our promotional gear.

Discount Days: We will designate discount days to military personnel as well as students

of West Georgia University.

Promotional Material: We staged a professional photo shoot and the pictures were

included on promotional material such as flyers, social media, and are also displayed in-

house. Flyers have been produced and disbursed throughout the surrounding

communities (Villa Rica, Douglasville, Carrollton). This will be on ongoing marketing tool

used on a regular basis.

Marketing and Promotional MaterialLogo $75.00Flyers $200.00Banner $54.00Price Cards $100.00

Photo Shoot $300.00TOTAL $729.00

Facebook/Twitter/Instagram: These social media outlets will be one of our primary

advertising tools. We will use social media to showcase stylists work, offer discounts to

the public, and showcase CityGirl staff within the surrounding community. Facebook

and Twitter pages were created in December to generate buzz for the opening of the

salon and both continue to be updated regularly.

Word of Mouth: In the beauty industry, WoMA is the most popular advertising tool.

When a client leaves a salon they immediately showcase their new look in person or via

social media, or are telling others about their experience.

Data Capture: A sign-in sheet at our receptionist desk will be used to create a mailing list

so that each client can be contacted and notified of any upcoming salon specials via

email, mail, and social media.

Radio Advertisement: Through connections within the entertainment industry,

promotional ads will be run via local media outlets including V103, Praise 102.5, and

104.1. This schedule will be coordinated with contacts at the respective radio stations.

Print Advertisement: The owner is currently employed as Circulations & Promotions

Manager with UPSCALE Magazine, whose parent company is Bronner Bros. Through this

connection CityGirl will be able to run regular advertisements in UPSCALE Magazine at

no added value. In return CityGirl stylists will be available to assist Bronner Bros. hair

show classes. This current partnership is in contract negotiations.

Website: This is to be created and updated frequently highlighting the work of stylists. A

website will not be our main advertising tool, but it will be used to inform clients of our

service and allow them to book appointments.

Personnel Plan

The operational plan calls for one receptionist who will greet customers and receive payments

for products and services. There are five (5) stylists, two (2) braiders and one (1) shampoo

technician. Our stylists are independent contractors and will be paid on a commission scale of

40/60 based on revenue generated. Braiders will be paid $10 per client.

In the first year, assumptions are that there will only be three (3) hair stylists and two (2)

braiders until the business expands and builds a reputation that will attract others to want to

work there.

Start Up Expenses and Capitalization

Our goal is to be a profitable business beginning in the first month of operation. Rigorous

promotion will encourage clients to take advantage of our services. Since this will be a

commission based salon, CityGirl will provide all necessary tools and supplies required for

styling. However, stylists understand that they are responsible for securing and building their

clientele.

Start-Up Costs

Total projected start-up costs total roughly $4,700 – not including any interior design. Outlined

below are the costs for the key essentials in successful opening of a salon:

Building Rent at Proposed Location: $450/mo

Security Deposit: $450

Electricity: Averages from $150.00 (Summer) to $200.00 (Winter)

Business License: $100

Cosmetology Application: $125

Equipment:

Three (3) Salon Stations/Mirrors $500 Three (3) Salon Styling Chairs $375.00Two (2) Shampoo Sink Sets $250.00Two (2) Hooded Dryers w/ Chairs $250.00

Reception Desk $80.00Waiting Area Chairs $100.00Television $150.00Cash Register $50.00

Total $1,705.00

Supplies: (Design Essentials Haircare Products)

Supplies Cost Quantity Total

Blowdryer $30.00 1 $30.00Flat Irons $30.00 1 $30.00Barbacide Jars $17.00 3 $51.00Barbacide $5.00 2 $10.00Braiding Hair $1.79 6 $10.00Weaving Net $1.99 20 $40.00Needle $1.00 30 $30.00Thread $2.99 6 $18.00Combs $1.00 10 $10.00Application Brush $1.00 10 $10.00Appication Bowls $1.00 6 $6.00Gloves $2.99 2 $6.00Apron $5.00 4 $20.00Styling Capes $5.00 4 $20.00Shampoo Capes $5.00 3 $15.00Processing Caps $2.00 3 $6.00Salon Towels $13.99 5 $69.94Hair Glue $1.00 2 $2.00Foam Wrap $7.50 2 $15.00HCO $7.50 2 $15.00Leave In Conditioner $8.25 2 $16.50Oil Sheen $8.50 2 $17.00LIQUID Reflections $7.00 2 $14.00Anti Itch Scalp treatment $8.25 1 $16.50Edge Control $5.50 3 $16.50AMPRO Gel $5.00 2 $10.00Holding Spray $13.00 2 $26.00Cotton $1.00 3 $3.00Relaxer $26.00 2 $52.00

Neutralizing Shampoo $35.00 2 $70.00Moisture Rention Shampoo $13.00 2 $26.00First Lather Shampoo $13.00 2 $26.00

Total:$286.2

5 $707.44

Projected Income

Minimum monthly income based on each stylist completing 2 clients per day

Rate Quantity Total Income -40% Total Profit

Basic Sew In $60.00 25 $1,500.00 -$600.00 $900.00

Sew In/ Cut and Style $75.00 10 $750.00 -$300.00 $450.00

Full Closure Cut and Style $85.00 3 $255.00 -$102.00 $153.00

Sew In/Cut and Style Hair Included $150.00 2 $300.00 -$120.00 $180.00

Projected Weekly Total $2,805.00 -$1,122.00 $1,683.00Projected Monthly Total $11,220 $5,999.00 $5,221.00

Minimum Total annual Income: $134, 640.00

Minimum Annual Profit: $62,652.00

Maximum monthly income based on each stylist completing 6 clients per day

Service Rate QuantityTotal

Income -40% Total Profit

Basic Sew In $60.00 45 $2,700.00 $1,080.00 $900.00

Sew In/ Cut and Style $75.00 20 $1,500.00 $600.00 $450.00

Full Closure Cut and Style $85.00 15 $1,275.00 $510.00 $153.00

Sew In/Cut and Style Hair Included $150.00 10 $1,500.00 $600.00 $180.00

Projected Weekly Total $6,975.00 $2,790.00 $4,185.00

Projected Monthly Total $27,900 $12,060.00 $15,840.00

Maximum Annual Income: $334,800.00

Maximum Annual Profit: $190,080.00