Product in the marketing mix refers to the physical goods or services offered by a business. The organization provides high-quality hair salon and makeup services. Price is another element in the marketing mix that produces revenue for the business. The organization invests in service standards and not the number of services. The prices are set higher due to the quality offered but remain competitive in the beauty industry. Customer segment pricing is the primary strategy used and different prices are given depending on the type of consumers. The place factor includes the location of a business and its effectiveness in achieving consumer needs (Johnson, 2018). The organization is based in Dubai in the UAE. The site is chosen due to the increased demand for beauty and makeup services in the city. It is easily accessible, and clients effectively get to their appointments. Promotion is the main element in the implementation of the business plan (Ryu, 2017). It considers the steps that the organization will use to reach consumers. Both digital and print media including television and newspaper will be used in the promotion of business activities.
Human Resource Issue
Compensation is one of the challenges that the organization is likely to encounter. In the current situation in the industry, structuring employee compensation is a problem as the profitability of the business depends on the type of service and the number of clients that an organization serves. Since the company will be small-scale, it faces competition from established organizations in the industry that has big payroll budgets. The business will have to factor out aspects of costs of benefits, taxes, training, and other expenses before determining the reimbursements that the employees are likely to receive.
Dubai in the UAE is chosen for the business owing to the target market. The city has a high population and this implies reaching the targeted consumer. The customer base in the city is growing, and the current businesses are not filling the gap available. The location that the organization has chosen ensures that appointments can easily be booked. The premise was selected as it gives ample parking and the right environment where the clients can spend time and enjoy the services.
Plan of Operation
The opening hours of the business will be from 9.00 am till 5.00 pm. Customers will be requested to book arrangements when they need to receive the services outside the normal working hours. Online appointments will be utilized to guarantee reduced congestion in the provision of services and ensuring effective workflow. When a client arrives at the business premise, they are expected to describe the amenities they need and check-in for the appointments that they made before acquiring the services.
Problems Faced by the Business
One of the challenges that are likely to be experienced is assembling a business team. When starting the operations, a group with the right skills and knowledge will be important in ensuring the effective provision of services. The demand for expertise in the beauty industry is high in Dubai with a low supply. Making the brand competitive to get skilled and knowledgeable employees in the industry is a crucial element. One of the ethical considerations in the operations in the industry is misleading information. The organization will be warranting that the data provided for the makeup products or services is accurate. Correct information will confirm that consumers are certified.
Johnson, D. N. (2018). Strategies small business salon owners use to survive longer than 5 Years (Publication No. 5729) Doctoral Thesis, Walden University Walden Dissertations and Doctoral Studies.
Ryu, A. (2017). My most valuable learning experience: Starting a business. Surgery, 161(4), 885-886. Web.