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Introduction

Diva So Beautiful is a beauty supply store along with a mini hair salon that is located in Oxford, MS. Diva So Beautiful allows women to have their hair care needs met in one convenient location. One side of the store has all of the hair, hair care products, and make up. This side also has a small room with a reclining bed where customers can get their eyelashes applied or eyebrows waxed. On the other side of the store is where the hair stylists are located. There are sinks to wash the customers’ hair, hood dryers, and their work stations. Also there is a sitting area with magazines and a television to keep the customers entertained. Included on this side is a small play area for the kids to utilize while their moms are getting serviced.

Diva So Beautiful is a beauty supply shop that specializes in the sales of cosmetics and hair salon services. Even though the company is successful, the beauty industry is very competitive, so they have to differentiate their products to beat their competitors and meet the consumer’s expectations.

Environmental analysis

Competitive forces

It involves the analysis of both current and potential competitors who might enter the beauty industry. For business survival and growth, it carefully monitors competitors to identify their new strategies and product development plan (Sadgrove, 2015). Diva so beautiful also evaluate the advertising and marketing campaigns of their rivals to come up with up with new promotional strategies. The company identifies the new product development of the competitors to make better and innovative products that enable them have a competitive edge in the market.

Economic forces

The analysis helps the business determine effective resource allocation. Organizational resources must be allocated appropriately based on the priorities and goals of the company. Other economic factors such as market structure, interest rates, and demand and supply adversely affect the operation of the enterprise (Sadgrove, 2015). Diva so beautiful has strategies to cope with the economic change, even though other factors are beyond their control, the business must be successful.

Political forces

Businesses give a lot of importance to the political environment. There are the many aspects of the government policy that affects the business. The increase in taxation affects the operation of the beauty industry. Other factors include the government intervention like interest rates shifts that affects the company demand patterns (Fernie et al 2015). Diva so beautiful is constantly alert to comply and cope with the political factors.

Legal forces

It involves the analysis of legislative changes within the environment. A regulatory body can set a regulation for the industries operating within a particular economy (Fernie et al 2015). To ensure smooth business operations, Diva so Beautiful, should analyze all the legal developments affecting them.

Technological forces

The study focuses on the technological developments and advancements affecting business. Diva so beautiful ensures that it integrates technology into their operations. Technology comes with various business opportunities that a company can use as strength to beat their competitors in the market (Fernie et al 2015). Technology also leads to new product development, innovation and creativity that improve business operation. A firm can also analyze how consumers use the available technological trends and use it for their benefit.

Sociocultural forces

It is the analysis of factors such as cultural implications, gender, social lifestyle, and domestic structures (Fernie et al 2015). The factors influence business performance and the sales of its products. People are unique in different ways and with diverse mindset hence need for analysis. For the company to obtain high sales and increased profit margin, they need to understand the socio-cultural environment. Environmental Analysis

The Target Market

The target market for Diva So Beautiful is African American moms as well as the African American college students. There is a large university that is located in the same town that Diva So Beautiful is established. Moms are the key point of the customer base due to the fact that we will be also providing child care services. However, since most students that attend the university are not from the area they do not know any beauticians or where to get their hair done. Once they come into the store to purchase their hair, they will notice that they are able to get it installed also.

4Ps

Product- Diva So Beautiful has primarily virgin hair with a variety of wigs, yaki and synthetic hair. Pricing strategy-Pricing is dependent upon the cost of the hair from the vendor. The price is always high enough to make a profit and low enough to still beat the competition. The beauticians set their own prices however, they have to pay a booth fee every week so they set price at a decent amount as to where they are able to make a profit and pay their booth fee.

Promotion- Promotion is primarily be done on social media and word of mouth

Placement-The location of Diva So Beautiful is in area that is accessible, with adequate parking, and in an area that the campus students and the locals often visit.

5Cs

Customer- To enhance the beauty of the customers in one location.

Company- Diva so Beautiful is able to meet the customer’s needs by providing the right products and licensed professionals.

Competition- Locally there is only one other beauty supply store however, there are several hair salons in the area. What sets Diva So Beautiful apart from the competition is that customers are able to get everything done in one location. The competitors only offers one or the other.

Collaborators- Diva So Beautiful purchase their products from one vendor. Buying in bundles allows the company to purchase items at a cheaper price.

Context- As of now there are no limitations that are hindering Diva So Beautiful.

STP

Diva So Beautiful is a beauty supply store and hair salon that caters to African-American moms. The mission of Diva So Beautiful is to provide the best products and services to make women feel beautiful and more secure with themselves, while accommodating special services to the hectic life of a mom. A working mom has very little time to pamper herself. By Diva So Beautiful allowing customers to purchase their hair and get installed in the same location saves them time, gas, and money.

Short term goals

Diva so beautiful short term goals include reaching many clients through marketing and advertising. The implementation strategy for advertising includes product testing in various salons where the products will be supplied. Also, organizing educative talks to customers by makeup artists and celebrity stylists will help improve its reputation. It also wants to meet customer satisfaction beyond their expectations.

Long term goals

Diva so beautiful has a long-term goal of business expansion. The company wants to increase its outlets and stores in different locations in the world that will provide employment opportunity to the community. It also wishes to increase its product variety. The business goal is to offer diverse product lines and services that will provide the clients a variety to choose.

Ways to measure goals

The measure of the success of both short-term and long-term term goals, focus should be on different metrics. By tracking down website visits and download content, they are able to assess trends of product acceptance. If the company registers frequent site visits then, the products are preferable by many which indicate positive results. The increase in the market share shows that the products have a large target market hence increase in sales. A large market share shows that the marketing and advertising strategies used were successful (Zenker & Martin, 2011).

The customer value is measured in terms of customer feedback, loyalty, and customer contact analysis. Satisfied customers will continue purchasing the products and give feedback to the company for product improvements (MetrixLab, 2015). To determine the growth rate of the business compared to the competitors, we look at the competitive advantage in the market in terms of quality, price, and marker share. The company that offers quality and innovative products at an affordable price gains a competitive edge in the market (Zenker & Martin, 2011). Such a company tends to have high growth rate.

On the other hand, comparing the profit margin of the previous and current year will determine if an organization is successful or no. An increase in profit margin gives a positive result and vice versa. Besides customers, engagement through suggestions and feedback enable organizations to produce products based on the client’s needs and expectations hence satisfaction (MetrixLab, 2015).

SWOT Analysis

Strengths- The only shop in the area that allows customers to purchase the hair and get it installed in the same location. Also it is the only shop that offers a playroom for children while the mothers are getting serviced. The hair quality is better than the hair that is sold at the other beauty supply store.

Weaknesses- Diva So Beautiful is new to the area therefore, it will take time to build its clientele. Most customers are loyal to those that service them, so it will be hard to convince them to try out new cosmetologists. The hair is more expensive than the hair at the other beauty supply store.

Opportunities-There are no other local shops that offers the same services.

Threats- Other beauty shops may adopt the same concept, specifically the child care service. Customers may not leave their beautician that they have developed a relationship with. Due to the business just opening it will not have an abundance of inventory.

References

Fernie, J., Fernie, S., & Moore, C. (2015). Principles of retailing. Routledge

MetrixLab,. (2015). Customer Value | MetrixLab. Retrieved 26 July 2015, from http://www.metrixlab.com/solutions/customer-value/

Ogunjimi, A. (n.d.). How to do good sales in beauty supply. Retrieved from http://smallbusiness.chron.com/good-sales-beauty-supply-30883.html

Sadgrove, M. K. (2015). The complete guide to business risk management. Ashgate Publishing, Ltd..

Zenker, S., & Martin, N. (2011). Measuring success in place marketing and branding. Place Branding and Public Diplomacy, 7(1), 32-41