Kuehn Enterprises Marketing PlanBy Victoria Kuehn-Larson

June 14, 2011

Introduction to Kuehn-Enterprises

• Kuehn-Enterprises provides a quality massage that benefits clients, provides both short and long-term relief from stress and chronic discomfort, and encourage client relationships and retention.

Our mission

“to maintain the leading edge in training in the industry, and to continually improve the excellence of techniques and products

through involvement in associations and through communications with clients and peers”

Introduction - continued

• To provide relief from stress and the everyday wear and tear of our lives

• We have included environmentally friendly cleaning products that we have endorsed and used in our business, for those who are “green”

• We are located in Uptown Minneapolis

Specializing in massage

Hot stone

Therapeutic Massage

Deep Tissue Massage

Pregnancy Massage

Sports Massage

SWOT Analysis - InternalStrengths

• Trained therapists • Good location – highly populated• Easy access• Medical claims accepted• Injury treatment training• Excellent massage training• Complimentary Items for hydration• Open houses 4 times a year, displaying

art from local artists, selling art, getting more clients in the door

• Online website and reservations for appointments

• On Facebook with events• Upscale clientele• Gift Certificates• Good with customer service

Weaknesses

• On street parking only• More staff dependent on volume• No health benefits• Younger staff with higher

turnover • Management is new and

inexperienced• Pricey• Not great on follow through• In need of computer system for

accounting• Additional funding needed for

decorating front space for clients

SWOT Analysis - ExternalOpportunity

• Groupon – for new customers• Crowd Cut – for new

customers• Other coupon sites online• Online marketing companies

that will send e-mails to prospective clients

• Near Kenwood Neighborhood

• Gay friendly for Uptown area, will attract customers some of our competitors won’t get

Threats• Groupon – existing repeat

customers – is showing they do not come back

• Many people enter the field every year

• Local economy is still tight due to current economic status

• More salons opening in area• Clients come and feel better

and no longer are in need of services

• There are 5 other Massage therapy centers nearby

Competitive Advantage

• Trained therapists• Highly populated area of Minneapolis• Easy access and on-street parking in front of our building • Services for both the upscale individual and the middle class,

offering services in massage therapy • Can be accessed both online and by phone• Work with the community, having an open house for the local

artists in the area, providing a free publicity opportunity for both the artists as well as Kuehn-Enterprises.

Marketing Objectives for growing business

• To change the structure of the clientele and the nature of the company• To get new clients• To strengthen relationships with existing clients• To sell new services to existing clients, as well as to

new clients • To introduce a new service or enter a new market for

a specific service • To broaden a geographic base• To increase business size by 20% in five years

Market Segmentation

• Located in uptown Minneapolis our primary market is local, but would like to increase the size that are marketed to the five county area, Hennepin, Anoka, Scott, Ramsey, and Dakota. This would be a future goal in the next five years.•  • Demographic Segmentation:• Expand to the five county areas • Age: Offering services to ages between 15 up• Gender: male and female• Income: middle to upper class

Psychographic Segmentation

• Lifestyle: conservative, exciting, trendy, economical• Social class: middle, upper• Activities and interests: sports, physical fitness, shopping, books• Attitudes and beliefs: environmentalist, security conscious.

 • Geodemographic segmentation is that our company• Located in Uptown. • Primary target audience that has generated 70% of our business

• Kenwood area that is a combination of geographic, demographic, and lifestyle segmentation.

Psychographic Segmentation

  • A practical and realistic time frame in which to achieve specific goals is essential to establishing

marketing objectives.

• In professional services, it can be a long way from when the brochure or direct mail piece goes out, or the release is printed or the ad is run, and when the contract with a new client is signed.

• The objective is to increase revenues by increasing the clientele or the services to existing clients. In designing a marketing program, the cost of achieving a revenues goal the return on investment, is a primary factor.

Target Market Strategy

• Concentrated Targeting

• The advantages that our company will have by using this effort are that we will be able to concentrate our resources to better meet the needs of a narrowly defined segment.

• It will allow us to better compete with the larger massage therapists.

• It will allow strong positioning in this market; this process influences potential customers’ with the overall perception of our company.

• The disadvantages are that the segment may be too small and is changing. Larger competitors may be able to market more effectively to this market niche segment.

Marketing Mix Strategy

Marketing Objectives

Creating the media budget: Set aside five percent of gross sales for marketing and advertising.

Expenses and revenue for Kuehn-Enterprises over the last 12 months

Month 1 Month 2 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10

Month 11

Month 12

0.00

20,000.00

40,000.00

60,000.00

80,000.00

100,000.00

120,000.00

140,000.00

RevenueFixed CostsVariable Costs

Growth over past three years (net income)

Year 1 Year 2 Year 3$0.00

$50,000.00

$100,000.00

$150,000.00

$200,000.00

$250,000.00

$300,000.00

$350,000.00

$400,000.00

$450,000.00

Series1

Promotional Mix

Advertising

Online Services currently being used• Groupon• Crowd cut

Local Newspapers: • Wedge Co-op Lowry Hills

area newspaper• Southwest journal• Uptown neighborhood

news, located both online and in newspaper form.

Brochures

• To include in the brochure

• Promote business• Buzz word like “delegate” • Descriptive copy typeset in fairly large

size• Light color paper• Always use endorsements, testimonials,

industry affiliation• Print brochure on cover stock or quality

heavyweight paper• Add something unexpected visually –

striking photo or graphic on the cover.• On back: “business biography”• How did we get started, how you

have succeeded, where you are today?

Promotional Mix

Public Relations• Holding art showings• four times a year• we have offer wine, cheese, crackers,

and fruit• environmentally friendly cleaning

products • Endorsed and used in our business,

for those who want to be “green”.• Provides an opportunity to collaborate

with the community, while stimulating potential customers in the area

• Our company alone has generated 42,000 dollars in revenue based on these events alone.

Sales Promotion

Direct Hits• Reactivation voucher – mail a $20 no-strings-

attached voucher to any customer we haven’t seen in six months

• “We’ve missed you” – send a card in a year to customers include a discount

• Birthday call – record all customer’s birth dates and make sure they get a special card and discount

Premium Prospects• T-shirts, baseball caps, and jackets, headbands,

writing instruments, scratch pads and mugs. • Need to invest in high quality; nothing says I care,

better than free things that are of high quality.

 

Personal Selling:• The website that has been designed is interactive

and very user friendly. • We have included online appointments that can be

scheduled.

Pricing and services

Therapeutic Massage

• Half-hour – $45One hour – $70One-and-a-half hours – $100Two hours – $125

• Therapeutic massage uses a variety of techniques and movements to best fit your body’s needs

Post/Prenatal

• Half-hour – $45One hour – $70One-and-a-half hours – $100

• Post and prenatal massage utilizes many of the same techniques used in a regular Therapeutic massage, but with the client lying on her left side with pillows or lying facedown on body cushions. This helps relieve the mental and physical stress of pregnancy and can also aid in relaxation during labor.

Hot Stone Massage

• One hour – $85One-and-a-half hours – $115Two hours – $135

• Hot stone massage uses the same techniques as a typical Swedish massage, but with the use of hot, various sized Basalt stones. The addition of stones help to release increased toxins and rapidly relax the muscles.

• Hot stone massage uses the same techniques as a typical Swedish massage, but with the use of hot, various sized Basalt stones. The additions of stones help to release increased toxins and rapidly relax the muscles

Pricing and services

Chakra Massage

• One session – $100

• In traditional East Indian philosophy, chakras are thought of as spinning wheels of energy. • There are 7 chakras that are worked on during a session. Before each session the therapist will make a full assessment in order

to determine which chakra needs to be balanced. • During the session the therapist will guide the client to assist in balancing the chakra. This is not a massage in which you’re

encouraged to “zone out.” Instead we recommend you utilize this time to tune in and be aware of what is going on within your body and self.

• In traditional East Indian philosophy, chakras are thought of as spinning wheels of energy.

Shiatsu• One session – $75

Half-session – $47.50

• Shiatsu is a favorite form of massage for those who have experienced it. Shiatsu provides a deep relaxation of both the body and mind. As an added benefit, my sessions are 75 minutes in length so it is an intensely relaxing and calming experience. The benefits and the understanding of how Shiatsu works are not widely known so I put together some Frequently Asked Questions (FAQ’s) to help you learn more about this form of massage that is based on an over 3000 year old practice. If you have a question you don’t see on here, please feel free call or email me and I would be happy to explain more.

And many others……

Implementation, Evaluation, and Control

Marketing Implementation Schedule

Activity Date/frequency

Contract an advertising agency to formulate an advertising plan By mid-July 2011

Development on incentive program for therapists Premium Products By mid-July 2011

Development of brochure By mid-July 2011Development of fliers By mid-July 2011Training for therapists By October 2011

Expand advertisement to entire Hennepin County By September 2011

Expand advertisement to Scott County By December 2011

Expand advertisement to Ramsey County By April 2012

Expand advertisement to Anoka County By August 2012

Expand advertisement to Dakota County By August 2012

Activity Performed by Date / Frequency

Complete Performance evaluation of sales staff Self Annually

Measure financial results against projections Accountant Monthly / Quarterly / Annually

Carry out survey to determine customers' satisfaction with the product and the service quality.

Internal Audit Annually

Diagnose any gap / shortfall to identify the causes for such gap / shortfall and recommend corrective measures

Internal Audit As necessary

Take corrective action Self As necessary

EvaluationClose attention needs to be tracked on the company’s advertising efficiency and the number of inquiries generated by an advertisement. How much has been spent of each of the different methods used. The sales-promotion efficiency and the number of inquiries generated by the promotion and the percentage of how many coupons or vouchers were redeemed.

Control

References

• Lamb/Hair/McDaniel. (2011). In Lamb/Hair/McDaniel, Marketing Student Edition (p. Book). mason: Cengage Learning.

• Software, P. A. (2011). Products Business Plan. Retrieved June 2011, from BPlanes: http://www.bplans.com/sample_business_plans.cfm