GROUP 4- ABILA SALON

BSMA 4B

MARKETING
ASPECTS

INTRODUCTION
Marketing is the management process responsible for
identifying, anticipating, and satisfying customer requirements
profitably. This means the ideas, the brand, how to communicate,
and the design, measuring effectiveness, market research and
psychology of consumer behavior all count as part of the bigger
picture of marketing.
An understanding of what customers need and value, is
central to marketing. Learning our customers needs and how we
can add value through marketing activities paves the way for a
successful business in the long term.
In relation to our business, all ages of customers will benefit
our services in which we can serve them special offers that is
unique from other salons. We will provide the skills and techniques
of our employees to satisfy the customers and give them their
deserve transformation they want.

IMPORTANCE MARKETING ASPECTS

It is considered as one of the important area in a business.
Every business depends on the marketing aspects and it also
depends the successful of it. It is one way of introducing
product/services and knowing who are the target markets that will
satisfy their needs and wants. This helps to identify the possible
problems that may occur between the business, employees and the
customers and having strategies and techniques cure these
problem. Lastly, to determine the extent to which the goods/
services be generated by the project are needed or demanded and
to design the appropriate marketing strategies and plans that will
help ensure that the projects outputs will reach and be accepted by
the target users.
MARKETING OBJECTIVES

To enable a company to control its marketing plan.

To help to motivate individuals and teams to reach a

common goal.
To provide an agreed, consistent focus for all functions of an

organization.
All objectives should be SMART i.e. Specific, Measurable,
Achievable, Realistic, and Timed.
o Specific Be precise about what you are going to
achieve.
o Measurable Quantify your objectives.
o Achievable Are you attempting too much?

o Realistic Do you have the resources to make the

objective happen (men, money, machines, materials,
minutes)
o Timed State when you will achieve the objective
(within a month? By February 2018?)
The 4 PS of the Business

PRODUCT AND SERVICES

Product and services is a term used for
anything that can be offered to a market to satisfy a
want or needs. In other word, a service is the
production of an essentially intangible benefit, either
in its own right or as a significant element of a
tangible product which through some form of
exchange, satisfies an identical need. Our business
salon will make sure that the customers will be
satisfied with what we offer. We wanted to give them
the best service.

PROMOTION
It refers to the entire set of activities, which
communicate the product, brand or services to the
user. The idea is to make people aware and attract to
buy the product, in preference over others. In
promoting our services we will use social media
because people in our generation spend more time on

computers. We will also use flyers and tarpaulin in

front of our salon to attract passersby.

PRICES
Pricing refers to the process of setting price for
the product or services and will have the biggest
impact on the amount of profit. Of all the aspects of
the marketing mix, price is the one which creates
sales revenue- all the others are costs. We will make
sure that the prices of our services will be affordable
and competitive enough for them. We will ensure that
the quality service they seek will be equivalent to the

price that they are going to pay for us.

PLACE
Place is the element of the marketing mix that
ensures that the services is applied correctly. The
location of our business is very accessible and
convenient for our target markets especially for all the
students within the area and also the prospective
customers who come along in Samson Road,
Caloocan City.

FACTORS AFFECTING THE TARGET MARKET

COMPETITORS
In our generation, salon is very in-demand
business because people are conscious to their
physical appearance. It would be very hard for us to

compete with the existing competitors on the location.

But with efficient and effective marketing programs
and have a competitive prices, our business will make
sure to meet the wants and also the satisfaction of the

consumers.
INFLATION
This is one of the external factors that are
really hard to control, and during those times the
customers prefer to buy their basic needs rather than
go to salon and by that they can save their money.

CONSUMER PREFERENCES
Customers wants to be on trends in comes of the

new hairstyles and nail arts and some customers wanted to

be satisfied themselves in every services that they want. So
this will be an advantage for us because our business will
provide them a quality services and gives them the
satisfaction they want.

LOCATION OF THE BUSINESS

Our business is located along the Samson Road near

Monument. It will be readily accessible to our target market

because it is near in malls, schools and resident areas and
very convenient for them.

SWOT ANALYSIS
SWOT analysis is a structured planning method used to evaluate
the strengths, weaknesses, opportunities and threats involved in a project
or in a business venture. A SWOT analysis can be carried out for a
product, place, industry or person. It involves specifying the objective of
the business venture and identifying the internal and external factors that
are favorable and unfavorable to achieve that objective.
STRENGTHS
Strengths portion of the SWOT analysis is used to determine
what the business does best. It is also the characteristics of the
business or project that give an advantage over others.
1.
2.
3.
4.
5.
6.
7.

The reputation of salon

Wide range of service provided.
Qualified employees.
Affordability of services.
Provide high quality service.
Strong good will
Attractive workplace.

WEAKNESSES
Anything that your business struggles with or lacks is
considered a weakness.
1.
2.
3.
4.
5.

Many competitors.
Highly consumable of electric power.
Takes more time per customer.
Not providing online services.
Unexpected loss of electric power supply.

OPPORTUNITIES
Opportunities

are

emerging

scenarios

whereby

your

business can grow and succeed with a new or existing

service/product advantage. Knowing the opportunities facing your
business, you can focus your strategy and resourceful to achieve
the specific goals.
1.
2.
3.
4.
5.

Highly capable to adapt to the trends in the industry.

Location is accessible.
Huge of market potential.
Customer loyalty.
Expansion of business

THREATS
Threats

are

anything

environment that can

from

the

organization

outside

adversely affect its performance

or

achievement of its goals. These are also the elements in the

environment that could cause trouble for the business or project.
1.
2.
3.
4.

Negative feedbacks.
Economic condition
Price war between competitors
Climate change.

SERVICE OFFERED AND PROPOSED PRICESFOR EVERY

SERVICE
Our business offers:

Haircut

Php. 38.00

Rebond
800.00+
(Complete treatment)
1,500.00
Hot oil
80.00
Hair dye
290.00
Hi-Lites
150.00
Hair Relax
200.00
Pro V5
250.00
Keratine
300.00
Cellophane
350.00
Hair Spa
150.00
Cold Wave
250.00
Other services:
Hair and Make-up
600.00
Eyelash Extension
600.00
Eyelash perming
240.00
Hair extension
2,500.00
Shampoo and blowdry
39.95
Eyebrow Shaping
29.95
Eyebrow Threading
100.00
Foot Spa (w/ manicure and pedicure) 220.00
Manicure
50.00
Pedicure
50.00
Nail Art
80.00

Sources of the supplies in raw materials

It is a big responsibility on our part to ensure that the
resources of raw materials are always available in order for
us to cater the wants of the clients. We, the owner should
negotiate to the supplier of raw materials to ensure the
quality and enough supply for the business to avoid delays
and other problems.
Prospective supplier of raw materials

Hortaleza ( sangandaan/ agora)

MARKETING PROGRAM
The primary goal of our business is to earn profit at the
same time to satisfy the expectation of the customers by providing
them a high quality services.
1. WORD OF MOUTH - satisfied clients are our best
marketing tool. When a client leaves our business with a new look,
he or she is broadcasting our name and quality to the public. Most
of our clients will be referrals from existing clients.
2. REFERRALS - we will ask clients for referrals and reward
them with discounted or free services depending on the number of
clients they bring
3. RESERVATIONS O BOOKINGS - Clients who have a
tight time schedule can make early reservation with our salon in
order for them to save time. They can call our salon or can make
online reservation.
4. IN-STORE AND STORE FRONT DISPLAY - These
displays will be visible to the large walk-through traffic base.
5. LEAFLETS - This will provide all necessary information
about the service that we are offering, this includes the price,

location of the salon and other promos that the customer may avail
for the clients satisfaction.
LOCATION DESCRIPTION
Our business is located near at SM Sangandaan along
Samson Road. It will be readily accessible and convenient to the
target market which nearby in schools (University of the East, STI
College, GOMBURZA Elementary School, Divine Mercy College
and University of Caloocan City), Markets (Sangandaan Market,
University Market), Police Station of Caloocan, and fast food chains
(Jollibee, Chowking, Goldilocks, Mang Inasal, Ministop), banks
(Metro bank, BDO, BPI, PS Bank, Pawnshop (Villarica Pawnshop,
Palawan Express), Printing shop, Flor Sarisari Store, and Litas
Store. Fire Station, hardware, MERALCO, St. Gabriel Church and
other establishments such as Best Mart and bakeries. The
prospective competitors that we encounter are Ruby Paul Salon (in
front of Sangandaan Market), Ramon Caro Salon (beside of
Manpower Agency at Sangandaan Market), W.A.G.E Salon and
Spa (along district 73) and Hairtrend (along the way to
Monumento).
CHANNEL OF DISTRIBUTION
The path through which goods and services travel from the
vendor to the consumer or payments for those products from the

consumer to the vendor. A channel of distribution can be as short

as a direct transaction from vendor to consumer, or may include
several interconnected intermediaries along the way such as
wholesalers, distributors, and retailers.

AC
UB
SI
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OA
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TARGET MARKET
The customers base shall be divided into 3 major
segments:
1. Local Population the City of Caloocan which had a
population (# of exact population in 2015 that can be
considered as potential customers.
2. Schools Elementary, High School and college
students of public and private schools (University of
the East, Caloocan, STI College, GOMBURZA
Elementary School, University of Caloocan City,
Divine Mercy College, etc.) can also be a target
market.
3. Other Local Businesses - Churches and different
establishments such as banks, offices, mall, market
and others.
4. Passersby walk in customers within the location
area.
SLOVEN Formula
Sloven formula is used to determine the sample size for
the population. Denoting by N, the sample size, sloven formula is

given

S=

by

n
2
1+ n e

Where S stands for sample size, N for total population of the target
market, and E for the margin of error.

S=

19,396 x( 0.05 2)
1+
19,396

S=

19,396
1+(19,396 x 0.0025)

S=

19,396
49.49

S= 391.92
RELEVANCE OF SLOVEN IN OUR STUDY
Sloven formula is very important to conduct our feasibility
study because it helps us to know the ideal sample size in the
population. In taking a population sample, it is very important to use
a formula that will help us figure out a sample size.
IMPORTANCE OF STUDY

Beauty Salon is booming in todays generation. It is

also known as house of beauty and creation. A salon service helps
every individual to look attractive and stunning. They provide makeover and other related services about the business. However, just
like other things beauty needs maintenance and care that can be
provided by those professionals. There are people from all
backgrounds of life, both men as well as women, who would like to
have their face look more beautiful than it actually it is.

Results of Survey Questionnaire:

1. How often you go to a salon?

3% 7%

weekly
38%
52%

2. How much are you willing to spend on a salon?

once a month
once a year
Others

30%
40%

P50-P100
P100-P200
P300-P500
P500 up

20%

10%

3. How long do you spend on a salon?

17%

30mins - 1hour
53%
30%

1hour - 3hours
3hours - ^hours

4. If youre looking for a salon, how would you search for

it?

7%
17%

Recommendation
Advertisement onlline

7%

Flyers/Leaflets
Others

70%

5. If ever we are going to establish our own salon, are

you willing to avail our services?

17%

Yes
No

83%

6. What services offered do you usually avail when you

go to a salon?

37%

Hair Treatment
Manicure/Pedicure
60%

Haircut

3%

7. Which of the following most likely influence you as a

customer in visiting a salon?

7%

17%
3%

Price
Convenience to
home/work
Quality of services
Others

73%

8. What do you prefer?

27%
Home Service
Actual Salon Visit
73%

9. Do you agree on having snack bar in a salon?

37%
Yes
No
63%

10. Where do you prefer to buy snack?

33%
Inside the salon
Outside the salon
67%

ESTIMATED AGE AND SEX POPULATION

DISTRIBUTIION 2010 CENSUS

1-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70 and above
TOTAL

ALL AGES
2,137
2,445
2,621
4,259
4,877
3,543
3,349
2,864
2,110
1,886
1,606
1,456
1,201
900
748
36.002

MALE
810
902
951
1,539
2,077
1,210
1,159
1,064
1,000
889
747
700
603
400
350
14,401

FEMALE
1,327
1,543
1,670
2,720
2,800
2,333
2,190
1,800
1,110
997
859
756
598
500
398
21,601

CITY POPULATION PER BARANGAY 2016

Barangay

Land Area

Population

(hectares)
4.30
4.24
13.70
6.75
4.25
2.15
5.10
5.80
6.20
31.15
83.64

Density/ (ha)
283.49
46.46
1,319.05
587.56
805.18
0.47
216.67
282.24
93.71
58.25

Population
Zone 7
71
72
73
74
75
76
77
78
79
80
Total

1,309
212
19,396
4,457
3,673
22
1,186
1,757
624
1,970
36,002

POPULATION ENUMERATED IN VARIOUS CENSUSES

Total Actual

Average Annual

Population Caloocan
7,847
19,551
38,320
58,208
145,523
274,453
397,201
467,816
761,824
1,023,159
1,177,604
1,381,610
1,489,040

Growth Rate

Date of Census
March 2,1903
December 31,1918
January 1,1939
October 1,1948
February 15,1960
May 6,1970
May 1,1975
May 1,1980
May 1,1990
September 1,1995
May 1,2000
August 1,2007
May 1,2010

5.9674
3.3202
4.2423
8.4209
6.3853
7.6734
3.3268
4.9973
5.6858
3.0584
2.2282
2.3714

HISTORICAL POPULATION OF CALOOCAN

Year
2013
2014
2015
2016
2017
2018
2019
2020

Historical Population
1,594,910
1,630,200
1,665,490
1,700,780
1,736,070
1,771,360
1,806,650
1,841,940

Annual Growth Rate

0.0237
0.0237
0.0237
0.0237
0.0237
0.0237
0.0237
0.0237

HISTORICAL POPULATION OF BARANGAY 73

Year

Historical Population

2013

32,067

2014

32,828

2015

33,607

2016

34,405

2017

35,222

2018

36.059

2019

36,915

2020

37,791

MARKET SEGMENTATION
Market Segment is an identifiable group of individuals,
families, businesses, or organizations, sharing one or more
characteristics or needs in an otherwise homogeneous market.

Market segments generally respond in a predictable manner to a

marketing or promotion offer. A market segment is a group of
people who share one or more common characteristics, lumped
together for marketing purposes. Each market segment is unique,
and marketers use various criteria to create a target market for their
product or service. Marketing professionals approach each
segment differently, after fully understanding the needs, lifestyles,
demographics and personality of the target consumer.
Percentage

of

total

target

total population of target market

total population

Percentage of total target market =

19,396
36,002

Percentage of total target market = 53.87 %

POTENTIAL TARGET MARKET
35,222 Total Population of Zone 7
x 53.87
18,974.09 Target Market
x 53% (Q1)
10,055.74 (says that they are going to go to a salon)

market

x 83% (Q5)
8,346.26 (willing to avail our services)
x 55%(Q6)
4,590.44 (prefer to avail hair treatment)
x 50%(Q3)
2,295.22 (willing to spend 300 up for the services in the salon)

Services

Weekly
%

Customer

Monthly

Yearly

Others

Customer

Customer

50%

436.09

80%

954.81

0%

50%

436.09

20%

238.70

100%

Customer

Hair
0%
Treatment
Haircut

100%

160.67

68.86

Manicure/
0%

0%

0%

0%

Pedicure
160.67

Demand Analysis

872.18

1,193.51

68.86

Demand is the amount of goods that the consumer or buyers

are willing and capable to buy at a specific price in a specific time
period while everything else remains the same. Demand is an
economic principle that describes the willingness and desire of
consumers to purchase specific goods or services at a specific
ceteris paribus. Demand analysis is the study of sales generated by
a good or service to determine the reason for its success or failure,
and how its sales performance can be improved.
BARANGAY 73 Zone 7
Frequency

Weekly
Monthly
Yearly
Others
Annual

Market

% of

Share

Buying

160.67
872.18
1,193.51
68.86

Frequency
7%
38%
52%
3%

Time Count

Total

288
48
12
2

46,272.96
41,864.64
14,322.12
137.72
102,597.44

Demand
Monthly

8,549.79

Demand

Historical Demand
Year
2017
2018
2019
2020

Demand
102,597
104,649
106,742
108,877

2021

111,055

NOTE: 2% increase of the annual demand every year

Supply Analysis
A detailed review of the inputs and outputs of a process that
is employed to assess how the available quantity of a product is
affected by the changes in demand, input factors and production
techniques. Supply analysis is often used to make key policy
decisions by manufacturing business managers since in it gives
them insight into how shifts in production are likely to influence
market supply.

Historical Supply
Year
2017
2018
2019
2020
2021

Historical Supply
102,597
104,649
106,742
108,877
111,055

Note: Supply is derived by getting the competitors market share

from historical demand

Demand and Supply Analysis

Year

Demand

Supply

2017
2018
2019
2020
2021

102,597
104,649
106,742
108,877
111,055

102,597
104,649
106,742
108,877
111,055

Unfilled

Gap

Demand
0
0
0
0
0

Analysis
100%
100%
100%
100%
100%

Projected Sales

Normal

2017
2,295

2018
2,456

2019
2,628

2020
2,812

2021
3,009

Capacity
Monthly
Total

12
27,540

12
29,470

12
31,536

12
33,744

12
36,108

300

300

300

300

300

Services
Per Year
Selling
Price