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MARKETING PLANNING A SIMPLE plan “Far too many salon owners and managers create a promotion without considering their objectives and revenue targets” A sound marketing strategy can transform your business from an unknown to the salon or spa everyone’s talking about. Kicking off this month’s special, Jenni Middleton explains how to create a winning plan Our experts Tracey Stapleton is managing director of The Spa PR Company, a five-year-old PR and marketing agency specialising in spa and beauty. Stapleton started her career over 20 years ago working for one of London’s largest consumer PR agencies Andrea Ayling has extensive agency and in-house PR and marketing experience, specialising in professional and consumer beauty. She worked at a leading consumer agency before working for R Robson (Guinot). She now runs Acuity Communications, developing PR and marketing for salons Y ou’re in your local, buying two large glasses of Pinot grigio to get the rest of the bottle free, when the pub quiz starts. The first question is, “What is marketing?”. You may think it’s public relations; you could guess it’s sales; you probably reckon it means booking an ad in the paper. The answer is actually all of the above. Marketing is anything that raises the profile of your brand, retains and attracts customers, and ultimately induces them to buy more of your products or services. That could be handing out flyers on the street while wearing a sandwich board pointing out where your salon is, hitting the phones to encourage customers to book traditionally quiet slots, getting a column in your local press to answer readers’ beauty questions or a two-for-one promotion – not unlike your pub’s offer that tempts you into staying when you were only planning a quick one on the way home. But marketing is less about wining and dining journalists – and more about working the spreadsheets. The consensus seems to be that you should spend around 5% of your turnover on marketing, although some businesses make a good job of spending 2% wisely, while start-ups will give their marketing department a cash injection of anything up to 15% of their projected profits. “The most commonly used method for calculating marketing budgets is by percentage of forecast sales, but this can vary enormously depending on the type of business,” says The Spa PR Company managing director Tracey Stapleton. “Salons and spas fall into the services sector that is more dependent on margins rather than volume, so they tend to have to spend more on their marketing to drive sales.” Whatever you spend, make sure you know what the goal is. Susie Santiago is the owner and founder of Santi, a leadership programme for salon and Susie Santiago runs the Santi Programme, a business coaching course for salon and spa owners and managers. Members can join any time throughout the year, and learn disciplines of marketing, finance and staff training Jo Goodman is a regional spa manager of Virgin Active. Goodman joined Virgin in 2006 and rebranded Virgin Spas as Heaven V. Prior to that, she worked at Holmes Place Health Clubs and also owned three salons in the Manchester area INSIDE THIS SPECIAL 41 Tie-ups: why collaborating with other companies can be good for your business 44 Customer profiling: the better you understand your customer, the more targeted and effective your marketing efforts will be 47 Local media: how your business can cash in on free publicity by boosting its profile 36 Professional Beauty October 2009 Susie Santiago, Santi www.professionalbeauty.co.uk www.professionalbeauty.co.uk spa owners. She teaches members to undertake a swot analysis of their businesses’ strengths, weaknesses, opportunities and threats, a competitor analysis and an evaluation of which marketing activities worked and which didn’t in the previous 12 months. “Without a goal, you have nothing to aim for. Far too many salon owners and managers create a promotion without considering their targets,” she says. Think on your feet Justin Musgrove was spa director at Center Parcs before joining Bannatyne Group two and a half years ago as group spa director. He says one of the benefits of working for such an entrepreneurial business is that it can react quickly to any changes. So, while a lot of fitness clubs have suffered with low membership retention and low spa usage in the downturn, Bannatyne Group has not caught the same kind of cold. “I guess it’s because we did not have a grand recession reaction strategy, but instead focused on getting the basics right,” he says. For Musgrove, that has meant planning on a club by club basis. Once you’ve done the bean counting, it’s time to get spending. But planning activity around the year is a better Useful websites www.thespaprcompany.com Specialist beauty and spa marketing and PR agency www.essencepr.com Experts in hair and beauty PR and marketing campaigns www.acuitycommunications. co.uk Specialists in salon marketing and PR to clients and the media www.santi.co.uk Development programmes for salon and spa owners (Above and main picture) Bannatyne Group is investing in digital marketing to promote its spas and any special offers on treatments to its members and the wider public approach than just spending as and when you think you need it. Most salons and spas have a traditionally quiet time, so it’s best to plan something for those lulls, such as the new year slowdown. But you must canvas during strong times of trade, such as at Christmas, Valentine’s Day and Mother’s Day, or you could miss out to other businesses. Santiago advises salons and spas start thinking about the calendar year in September or October, then present their strategy to their team in November so the plan is ready for roll-out in January. Virgin’s Heaven V spas take a similar approach. Marketing manager Jo Goodman says: “We prepare an annual plan in accordance with our budget and we usually start putting this together in September for the following year. We split our budget in two – one bit for planned activity and another to allow us to react to changes in the economic climate and local or current activities.” Be adaptable Little and often seems to be a good way to manage your marketing workload and have the greatest impact. Samantha Grocutt, managing director of beauty specialist PR agency Essence, also urges salons to be adaptable. “There will always be last-minute opportunities – new product launches, charity events – so consider these, but don’t feel pressured into anything. You need to understand why you’re doing it and what the reward will be,” she says. “Marketing activity must be properly planned with clear objectives and a return on investment set,” says Goodman. “We’ve seen a number of our sites rush into things and not prepare first.” It seems that, in marketing, to fail to prepare is to prepare to fail – but it’s not the only stumbling block for salons and spas trying to boost their sales. “Making offers too complicated and confusing is a downfall,” says Dove Spa international October 2009 Professional Beauty 37 MARKETING PLANNING development director Fran Hayter. “We do best with marketing when we keep offers simple, such as our £10 offers. Focus on driving in new guests and giving added value to loyal guests.” One of Heaven V’s most successful marketing promotions adhered to these principles. Its Refer a Friend initiative – where clients were offered a discount on their next treatment if they introduced a new client, who also received a discount off their first treatment – “was relatively cheap to implement”, according to Goodman. Another inexpensive tactic is sending late availability e-mails to the client database, offering discounted off-peak appointments. Digital routes Musgrove says that e-marketing is something that Duncan Bannatyne – head of the group – and he are very keen on. “I hate to spend a fortune on first-class stamps. Why should we in this day and age? We’ll email hints and tips from our fitness instructors, and tell clients about offers,” he says. And, in an effort to reach a bigger slice of the online audience at its fingertips, Bannatyne will relaunch its website before the end of the year, allowing clients to book their own treatment, treatment room, time and therapist. Santiago says that involving the team is vital to the success of any marketing plan – they have to be behind it so they can sell it. “Focus the team on the objectives, and recognise their achievements and contributions,” she says. The Spa PR Company offers marketing and PR services to a range of spas and salons, including Ark Salons in London and Fortina Resort in Malta, and knows how to get a beauty business THE INSIDE TRACK Ruth Mortimer, associate editor of Marketing Week, explains what’s hot and what’s not in marketing: “For some brands, viral campaigns will suit their ethos and target consumer. Lots of brands are currently using Facebook and Twitter, along with other social media channels, to reach buyers. Facebook can work for brands where people feel a great deal of affection for them, such as Cadbury’s Wispa, which was brought back after the confectioner saw a Facebook group demand it. Twitter works well for brands where people are interested in what the brand has to say, such as celebrity brands. Anything personalised and more targeted is better when it comes to marketing. How can ads encourage you to buy a product? “Ads need to have a creative flair about them. They need to be unique and draw me in. It also helps when the people using the product are good-looking.” Mohammed Waqas, 23, graphic designer, London “What makes me want to buy a product is when the ad aims to be as close to reality as possible. When ads are too fake – like some spot cream ones – it really puts me off.” Megan Williams, 18, student, London 38 Professional Beauty October 2009 “Ads need to show the product clearly. You sometimes get ones that show products not included, which can be misleading. Also, I like to see statistics – something which proves that the product is worthy.” Shamim Fatima, 44, sales assistant, London The Spa PR Company offers creative marketing approaches, including inviting the original Calendar Girls to visit Huddersfield’s Titanic Spa (left) and encouraging Malta’s Fortina Spa to sponsor events in the public eye. “Increasingly we are using the web to market our clients and it’s important to test new areas,” says Stapleton. “Some of the initial digital advertising on mainstream national newspaper websites didn’t work as well as expected and we have now refined this to focus on subscriber sections, more targeted wellness sites such as Wahanda.com and PR-driven editorial.” For good PR, though, you need a good story. Grocutt believes a top-performing salon or spa always makes journalists raise a glass. “I’m pro-entering industry awards. We have had great success at this and I then work with salons to promote their wins to the customer through editorials in the local press, text notifications and window displays,” she says. The Spa PR Company has also worked with award-winning Royal Day Spa and Titanic, and says that finding a business’s USP is essential to achieving its long-term ambitions. “In the case of Titanic, it was its eco-credentials, which has brought them to virtually full capacity month by month,” says Stapleton. But sometimes it is about being open to opportunity. “We match treatments with seasonal requirements and recently had a three-minute broadcast on GMTV for the new Lava Shells Massage and Gerard’s Green Tea Abdomen Treatment at The CityPoint Club as perfect treatments for achieving that bikini-body flat tummy for summer,” Stapleton adds. But there is a difference between last-minute opportunities and marketing as an afterthought, which Santiago says happens all too often. “Salons and spas fail [with their marketing] because they don’t plan,” she says. Who knows, if you get your marketing basics right, you can afford to reward yourself and your staff with a couple of bottles of Pinot grigio – even if it’s not on special offer. www.professionalbeauty.co.uk