GB560 Designing, Improving and Implementing Processes
Session # 1207D
December 3, 2012
UNIT 1 ASSIGNMENT
Simply Sunless, LLC is a small airbrush tanning business, which the owner is the sole employee and technician. The mission of Simply Sunless is to promote a healthy tanning alternative and skin cancer awareness. “Be Fabulously Fake!” is the motto of Simply Sunless, and the feeling that owner, Brooke Counts, wants each client to experience every time she tans them.
After deep thought and a great deal of planning, Brooke decided to make the business predominantly mobile, which eliminated a large portion of many business hurdles, namely startup costs. The choice to be mobile eliminated overhead costs, including salon space rental, decorations, permits, and other costs associated with having a storefront. Additionally, being mobile minimized the machine size requirements and product volumes. In order to make the equipment easy to carry from client to client, it needed to be compact and products minimal to minimize potential for damage during transport.
In order to break into the beauty industry, it was realized that Simply Sunless would need to partner with other local beauty businesses to build a client base. By offering airbrush tanning at spas, health and fitness facilities, and salons that did not previously have any form of sunless tanning, Brooke will be able to develop a solid brand, and brand awareness, without the overwhelming cost of advertising and promoting that are not economical for small businesses.
Based on research of Simply Sunless, marketing is the process in most need of change over the coming year. Every day more than 1 million people tan in tanning salons. Of these people, 70% are Caucasian girls between the ages of 16 and 29. With annual indoor tanning revenues estimated to be over $2.6 billion, having effective advertising is essential to the growth of Simply Sunless.
It has been established that the average person has a 75% higher risk of developing skin cancer from using tanning beds, and that individuals who tanned before the age of 35 are at an 87% higher risk of developing melanoma (American Academy of Dermatology, 2012). Health conscious consumers are moving away from UV tanning to UV-free tanning because of their risk for skin cancer and premature aging. Additionally, the availability of mobile electronics, social networking, and people’s general desire for knowledge, opens marketing options up to being more accessible, if the right target audience is reached. Identifying and promoting airbrush tanning to the right audience will be more successful than investing in direct mailing and print ads.
Level 1 (Initial): The business was started without loans and overhead, so the only expenses will be supplies, gas, and advertising. This stage will identify methods of marketing that can be used to promote Simply Sunless and help the potential clients identify the brand.
Level 2 (Repeatable): Here, Simply Sunless will review marketing methods utilized since the business was founded. Via survey method, new and established clients will be asked how they became aware of Simply Sunless. Calculations will be done to determine the cost associated with each marketing method and compare that figure to the amount of revenue generated for each method.
Level 3 (Defined): Being a single owner/operator business, Simply Sunless’s management will be more in tune with the defined business process in relation to business goals. Initially, the business needs to invest in marketing to develop a client following. This will be accomplished by utilizing economical marketing methods such as digital and word of mouth referrals, and by partnering with complementary businesses. Print advertising and joining the local Chamber of Commerce will also be included in the budget....