PMU Salon & Spa (Business Plan)

Executive summary

PMU Salon and Spa will be aimed at providing the female students within the university a wide range of salon and spa services. The firms’ spa will be devoted towards providing the customers with holistic services with regard to body work, massage, and energy work. These services will be offered in a relaxing setting. With regard to the salon, the firm will offer a wide range of treatments such as hair and nail treatments.

Its location within the university will provide convenience to the female students in an effort to improve their physical appearance and well being. The firm will offer a wide range of salon and spa products so as to satisfy the customers. This is inline with its customer focus strategy. In addition, the firm will ensure that it offers personalized services to the customers in order to ensure that the customers receive a unique customer experience.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

This arises from realization of the fact that attainment of customer satisfaction plays a vital role in enhancing repeat purchase behavior amongst the consumers. Additionally, the firm will create an atmosphere that is conducive for promoting unique customer experience. This will be achieved by inclining all its strategies towards the customer which means that the firm is customer oriented.

To achieve its customer focus objective, the enterprise will effectively formulate its marketing strategies. One of the main marketing strategies that the firm will be concerned with is pricing. The pricing strategy will be formulated in such a way that it addresses the customers’ price sensitivity considering that most of them are students and they do not have a source of income. The firm will also maintain a fair and friendly environment. The firm will ensure that its employees are highly qualified so as to offer quality services.

Company Description

PMU Salon and Spa will operate as a private limited company within Prince Mohammed bin Fahad University. The Salon and Spa will be strategically located within the University’s sports center. In order to attract a large number of customers, the management team will ensure that it has qualified personnel.

This will contribute towards provision of expert services. Considering that different individuals have different tastes and preferences, the firm will ensure that it offers diverse salon and spa services. All the firms operations will be customer centric which means that the firm will primarily focus at the customer. To achieve this, the entrepreneurs will conduct a comprehensive research in the University to determine the most preferred products and services.

According to Green (2001, p.7), every firm should have a mission statement which illustrates its purpose of existence. The firm’s mission will be to offer services with the objective of enhancing their customer’s physical beauty and mental relaxation. The firm will be committed at ensuring that its clientele is satisfied.

This is inline with the firm’s value proposition which will be guided by the need to offer unique relaxation and a sense of fulfillment. The resultant effect is that the firm will be able to motivate the customers to develop a sense of physical, mental and emotional balance.

Some of the core aspects which will guide the firm include improving the customers’ beauty, appearance, health and well being. In order to establish a strong customer relationship, the firm will offer personalized services. This will play a vital role in creating a strong bond with the customers.

It is the objective of the management team that effective provision of services will contribute towards the firm attaining a substantial clientele base. Additionally, the salon and spa will be well designed so as to appeal to the customers. By the end of the first financial year, the firm intends to be established as a beauty and well being destination within the University.

Industry analysis

On a global scale, the salon and spa industries have witnessed a rampant growth over the past few decades. This arises from the large number of firms in the industry. The industry is composed of a wide range of enterprises ranging from small, medium to large enterprises.

As a result, the global salon and spa industry is concentrated. The concentration in the industry has arisen from the high rate at which investors are venturing into the industry. For example, in the Middle East countries such as Saudi Arabia, the high rate of concentration arises from the fact that salons and spas are also being incorporated by firms in the hospitality industry such as hotels within their business structures.

Despite the high level of industry concentration, the industry is very lucrative. This is evidenced by the high rate at which the industry is growing. Salons and Spas in Saudi Arabia have become very innovative in their operation. Currently, the Saudi salon and spa industry is worth a number of billions of Riyals.

This growth was experienced since the beginning of the millennium. The Saudi Arabian salon and spa industry is undergoing a double digit growth rate every year. The high growth rate is associated with the high rate of economic growth experienced in Saudi Arabia. Currently Saudi Arabia ranks as the largest economy within Middle East.

Despite the 2008-2009 economic crises, the industry’s performance was not adversely affected in most countries as indicated by the salon/spa performance index. The index has a steady-state level of 100 points. If the performance index is above 100, it indicates that the industry is expanding.

On the other hand, if the index is below 100, it is an indicator that the industry is contracting. In 2010, the industry witnessed a significant expansion as a result of increased in customer traffic. During the 4th quarter of 2010, the salon/spa performance index increased with a margin of 0.5% to reach its all time high of 103. Salon/spa owners expect that the industry will experience a significant growth in the future as a result of increment in retail sales (Professional Beauty Association, 2010, p.1).

Market analysis

Prior to venturing the market the entrepreneur has appreciated the importance of undertaking a market research in the success of the firm. The research will be focused at a number of market variables which include the consumer, market size, market trends and competition.

The consumer market research will be aimed at understanding the consumers’ needs so as to determine the market potential. The firms core target customers are the individual consumers. Identifying the customers will make it possible for the firm to offer products and services which meet their requirements. The research will also enable the management team understand the consumers decision making process. As a result, it will be possible to formulate marketing strategies that influence their buying process.

Findings of a market research conducted in Saudi Arabia revealed a change amongst Saudi Arabian consumer behavior with regard to beauty, personal health and wellness. Over the past years, Saudi Arabia’s culture has been very strict with regard to dress code especially amongst women.

However, this is changing in the 21st century whereby individuals are increasingly developing a desire to look and feel being at their best despite the restrictions. A large number of consumers especially women are spending a significant amount of their money on improving their appearance.

This has played a vital role in the transformation of the salon industry in Saudi Arabia. The industry is providing the ladies an opportunity to transform their appearance in a number of ways such as through modern styles and hair color. The desire to change appearance amongst women in Saudi Arabia is seasonal. Changing appearance is usually a mark of a life changing event for example when one is entering college.

In addition, the rate at which women are entering into the job market is relatively high. Young women are advancing their education to 2nd and 3rd level. Most of the salons and spas in Saudi Arabia especially those located in Riyadh and Jeddah are reporting that most of their clients are university students and graduates.

The high rate at which young women are entering universities located in different provinces indicate that there is a high market potential. Additionally, women are also being employed which means that their disposable income will increase in the future.

Another trend which is evident in the market arises from increased utilization of the internet. Most individuals especially college and university students are searching for information regarding beauty from the internet and other media. This has made them to be sophisticated with regard to beauty in their consumption patterns. They are increasingly demanding more salon and spa services other than the local fashions.

This has significantly strengthened the markets for salon specialists such as that of hair stylists. This has been raised to a different level as a result of change in attitude towards beauty and health.

A study by International Spa Association conducted in 2010 on the global salon and spa market revealed that spa and salon owners experienced a 46% increment in the volume of short term treatments. The most common form of short term treatment sought included manicure touchups. Currently, salons and spas are not a preserve of the super-rich. Even individuals with lower income have become conscious towards self-care. However, they are currently seeking less expensive services which fit their budgets.

One of the sectors which have gained prominence over the past few years is the medical spa salons. These enterprises offer both spa and salon services. Baby boomers and the young women have increased their demand for these services.

Product Design and Development

In an effort to deliver unique customer experience, the firm will help the customers be relieved of their stress. The company shall stress on originality, quality and constancy of service. The firm will differentiate its products and services offering from those of its competitors located within the University by ensuring that it employs qualified personnel. Additionally, the firm will also train its employees on how to relate with its customers. The resultant effect is that the firm will be able to offer quality services.

The salon and spa will be designed in such a way that it can accommodate 14 workers at full capacity. This will enhance the firm’s opportunity to serve its customers efficiently. The firm will diversify its product and services offering by integrating different spa and salon products which will be aimed at meeting the customers’ beauty and appearance needs.

Marketing plan

Marketing has undergone a significant transformation over the past decades. However, one of the most critical factors which firms should consider in their marketing practices is marketing value (D’Angelo, 2010, p.216). To be effective, firms should identify the consumers’ needs and wants. Upon identifying the customers’ needs, a comprehensive plan should be devised so as to determine the most effective ways of opportunities presented in the market.

Market targeting

As the entrepreneur, it will be ensured that the consumers’ needs and wants are satisfied. To achieve this, the firm will integrate the concept of market targeting. The firm’s core target market will include the female students aged between 19 to 26 years within Prince Mohammed bin Fahad University.

The University has a substantial number of female students whose age range between 19 to 26 years. In addition, these students are more concerned with their beauty and physical appearance. Considering the fact that the university is composed of female students from different background, the firm will ensure that the needs of the specific customer category are met.

Marketing mix

In an effort to effectively penetrate the market, the firm will incorporate the concept of marketing mix. This will ensure effective formulation of marketing strategies to be used in the marketing plan. The four components of the marketing mix which include price, promotion, distribution and product will be taken into account. This arises from the fact that they affect the effectiveness with which a firm penetrates the market.


To be successful a firm should offer products or services which effectively meet the prevailing market demand. In an effort to increase its customer base, the firm will offer a wide range of unique spa and salon services. This will be achieved by ensuring that the firm has all the necessary equipments for the operation of a spa and salon. This will increase the probability of a large number of customers being attracted to the firm.

The equipments to be fitted include barber chairs, bowls, shampoo bowls, dryers, dryer chairs, hair processors, hair steamers, heat lamps, facial beds, facial bed machines, facial accessories, light therapy, waxing and paraffin, stone massage, manicure tables, mats, massage beds and tables, pedicure spas and tubs, salon irons, blow dryers, salon stools, shampoo chair, backwashes, spa/Vichy/hydrotherapy, styling hydraulics, styling stations and tanning booths.

Some of the equipments range from basic managerial equipments like computers, office supplies, phones, cash registers, and appropriate furniture. The products which the firm will offer are listed in the table below.

Swiss reflex massageA therapeutic massage performed on the feet
Indian head massage-Working along certain points of the head to ensure that there is frees flow of prana (body’s energetic life force)
Thailand massageA stretching and deep massage which does not require use of massage oil. It is performed while the client is on the floor.
Pedicure and manicure-Pedicure- Treating the toenails and the feet superficially using cosmetics treatment of the

-Manicure- Cosmetic treatment of finger nails to improve their beauty.

Hair treatment
Oil hair mask-A form of treatment on hair using oil to correct any damages that have occurred as a result of other forms of treatment.
Vitamins hair maskTreating the hair using a complex of vitamins such as vitamin A, E, B3,H, B8 so as to nourish the hair and protect the scalp skin.
Herbs maskTreating the body using herbs which aid in body detoxification, tone the skin, remove muscle and joint pain
Hair curlingCreating curly hair styles
Hair coloring-Changing the color of the hair depending on the customers’ preference.
Nail sculptingConstructing a new nail over an already existing nail- for example if the nails are damaged.
Nail polishingApplying a nail varnish on fingernails and toe nails to protect them and to improve their appearance.
Body waxingRemoving the body hair from their roots
Skin cleansingRemoving backlog of body waste from the skin.


I'm Barry!

Would you like to get a custom essay? How about receiving a customized one?

Check it out