marketing plan ppt corinna omundson
TRANSCRIPT
LAKEVILLE
Marketing Plan
September 18, 2011
EXECUTIVE SUMMARY
Subsidiary of Globe Education Network
Founded in 2003 after acquiring Minnesota Cosmetology Education Center in South St. Paul after 53 years of operation
Accredited by NACCAS – National Accrediting Commission of Career Arts and Sciences, gran through 2015
Mission Statement: Educate, motivate, and prepare our students for a career in cosmetology arts and sciences.
SITUATIONAL ANALYSIS & MARKETING STRATEGY
Fully operational educational facility with a working salon
14,000 square feet
25 employees including Faculty and Administrative Staff
2 sister locations in Woodbury (flagship location) and Plymouth (newest location)
Located near Minnesota School of Business in Lakeville, MN
Easily accessed from I-35
Heavy promotion through high school visits, television and radio advertising, websites, and area business visits
Reputation of the school
Family Owned
GEN resources
Well educated and qualified instructors
High quality facilities
Scholarships and Financial Aid available
Successful locations in Woodbury & Plymouth
High Licensure & Placement
Cosmetology “recession-proof” industry
No current radio or billboard advertising
Retention rate should be higher
Cosmetology reputation as a whole
Not located on a bus line
SWOT ANALYSIS
Strengths Weaknesses
First location of MSC in the south metro
Able to reach cities and towns further south
Large, new facility with up-to-date technology and equipment
Access to more local businesses for student referrals and clientele
Accessible to I-35 allows ease of transportation
Competition from the Minnesota School of Beauty in Lakeville, MNCompetition from Regency Beauty School in Burnsville, MNCompetition from Empire Beauty School in Bloomington, MNConfusion among potential students and clients about the difference between MSC and Minnesota School of BeautyEconomy still not turning around Job opportunities low for first time cosmetologists
SWOT ANALYSIS
Opportunities Threats
MARKETING OBJECTIVES
Timing – Open MSC-Lakeville within 6 months to 1 year after opening Plymouth location
MSC reputation for providing quality services done by students at at reduced rate
Return clients that continue to support our students and refer other clients and students to our business
MARKETING SEGMENTATION
Geographically limited to approximately a 50 mile radius of Lakeville, MN
Draw leads from nearby Farmington, Owatonna, Faribault, Northfield, Rosemount, Apple Valley, Burnsville, Bloomington, Prior Lake, Shakopee, Savage, and even possibly Austin and Albert Lea
Lakeville population 56,071 with a higher median income and 2 high schools with a high school enrollment of 3,600
TARGET MARKET
MSC-Lakeville would target the approximately 900 Lakeville seniors as well as up to over 6,000 seniors from area schools
Research from the leads for the past year for MSC-Woodbury include 375 leads from this area without much promotion
MARKETING MIX STRATEGY: PRODUCT
State of Minnesota requires 1550 hours of cosmetology education
MSC requires 1650 with 100 free hours built in for vacations or emergencies
Specialty theory classes, 420 hours of regular theory class, 245 hours in basics training
MSC offers clinic floor services to the public at a discounted rate
80 stations, 8 pedicure bowls, 8 manicure tables, 4 facial beds
MARKETING MIX STRATEGY:
PLACE/DISTRIBUTION
Direct to the consumer provider – MSC provides education to the students directly and students perform services on the public directly
Any student can apply, but must pass an assessment and pay an enrollment fee
MSC offers discounted rate high quality services
Students given product knowledge and taught how to sell retail products
MARKETING MIX STRATEGY: PROMOTION
MSC operates under the Globe Education Network umbrella
Able to utilize GEN call centers and corporate marketing team
MSC offers full-time day, ¾ time day, and part-time evening programs
Class starts every 6 weeks
MSC has established bonds with area salons and business owners providing opportunities for our students
Television, print ads, direct mail and email blasts, high school visits, MSC website, grocery store tape advertising
Utilize radio advertising and billboard advertising
MARKETING MIX STRATEGY: PROMOTION, CONT’D .
Grand opening celebration with local celebrities, Mayor, City Council and area businesses
Retail sales promotions
Facebook, Twitter, and MSC Website “page” dedicated to individual campuses
Discount cards, reward points promotions
MARKETING MIX STRATEGY: PRICE
Price predetermined by GEN owners, Regional Director & Campus Director
$18,000 tuition includes kit & books, price is researched regularly to ensure best price for highest quality in the area
Price for products and services researched regularly to ensure our clients are getting the best quality for the best prices
Seasons often determine sales for services
MARKET SHARE
Direct competitor, Minnesota School of Beauty located in Lakeville has about 60 students, charges $14,000 for tuition, with classes starting 11 weeks apart
Competitor, Regency Beauty School in Burnsville, MN enrolls approximately 100-150 students per year, charges $20,000 for tuition, with classes starting each month
Competitor, Empire Beauty in Bloomington has approximately 100 students and charges $17,000 in tuition
MSC will be largest cosmetology school in the south metro
SALES FORECAST
Population of approximately 200 students in the day and evening programs
Class starts every 6 weeks
Retention rate goal of 70% or better
First class start in August 2012 of approximately 62 students providing an initial enrollment income of $1.16 million dollars
GROWTH POTENTIAL
Maximum day capacity 120-140 students and evening capacity of 60-80 students
Faculty to student ratio of 1:14; average class size of 14-20
With the success of Woodbury, Plymouth, and Lakeville; additional locations could be in River Falls, Brooklyn Center, Blaine, St. Cloud, Duluth, Fargo/Moorhead, Green Bay, Milwaukee, and Sioux Falls.
IMPLEMENTATION, EVALUATION, AND CONTROL
MSC is ripe for expansion
Research must be done to find right location
Hiring process begins immediately after initial approval
Admissions process starts immediately after hiring
Build out to begin with 3 months of approval, finishing within 3-4 months
After build out complete and admissions has enrolled students, the school can open for business
Campus Director, Regional Director, Corporate, and management team of MSC-Lakeville will monitor the retention, tracking, and attrition reports, meeting often to discuss changes, policies, business revenue, and student concerns
SUMMARY
Based on research done on potential students and leads, Lakeville should be the next MSC location
MSC has a 60 year history behind it
MSC will continue to grow its brand and continue to expand