Online Business Proposal Task 1 BY Chokecherry Online Business Proposal business SORT TASK 1 WIG MBA 6/11/14 ONLINE PRODUCT AND SERVICE VIABILITY I Do Skin! By Karen Harris Is owned and operated by Karen Harris, a licensed aestheticism In Wonderingly, TN. Her business Is small but growing from year to year. Karen provides the standard services that most aestheticism do, Including waxing, facials, peels, skincare etc. In addition to the services she provides, she also sells a line of skincare products made by Image Skincare. 90% of her revenue comes from the services she provides (waxing, facials, peels, skincare etc. While approximately comes from her retail sales of Image Skincare.
Karen has been in business since 2009 and has been selling Image products since 2011. She decided to become an aestheticism so she could have flexible working hours to be able to spend more time with her family. Karen started out working for a local spa, Village Day Spa, but once it closed its Wonderingly location in early 2012, she decided to open her own business. There is definitely room for Careen’s business to grow, as Wonderingly itself does not have that many aestheticism, and 51. 1% of the population Is female as of the 2010 census (Census Viewer, n.
D. ), who Is Careen’s main clientele. Careen’s target demographic Is 18-49 year old women. Her current site, www_lodestone_com, would benefit from some upgrades to Increase her online presence and bring in additional business. All of her sales are local, from the services she renders to the products she sells. Currently, if a customer wishes to make an appointment or purchase Image Skincare products from Karen, they must either call her or see her in person during normal business hours.
At present there s no real online marketing strategy; Karen has a basic website that lists the services she provides and a form that customers can use to contact her. There would be several benefits to Karen expanding her online presence including new customers, and a potential to increase her revenue. Because Karen is the one running the business and providing the services, it can be difficult for customers to contact her when they wish to make an appointment or order products.
If Karen were to expand her site to include a way for her customers to order products directly from her site, he could see an increase from the 10% In revenue she currently generates from selling the Image Skincare products. By creating a customer portal and updating her site, it could help set Careen’s site apart from her competitors, and still help drive new business and generate more revenue for her. Another thing that could come from Karen establishing an online store would be new customers to her, but who currently use the Image Skincare product line.Updating her site will also help her to advertise to anyone looking for the particular services or products that she offers, in addition to vying her current customers more Information about her business. If Karen were to update ten Keywords on near sleet Ana also AAA AAA t 01 IANAL links Tanat OTTer a more In depth description of that particular service or products, that would allow customers who search for certain key words in a search engine find her easier. Again, this is something that could lead to an increase in sales online on her site and also in person.
As I mentioned earlier, Karen also sells Image Skincare, which is already an international product line. Since this particular product is already known both in the United States and internationally, it already gives her a step up since her product is known. It is estimated that in the United States alone, between “2010 and 2015 the skincare industry is expected to grow by 21%”. (Skin Care Products Industry: Market Research Reports, Statistics and Analysis, 2013) This particular statistic shows that there is plenty of room for both her business and the Image Skincare line to grow by quite a bit.Since it is currently sold international, this gives Karen an opportunity to expand her business into the international market and gain customers who Just want o buy Image products. Current Competition Assessment In any industry you are in, it is very important to know who your current competitors are and also how to analyze them. In addition to looking at Careen’s site, I also looked at two competitors sites and compared them to Careen’s site. As discussed above, Careen’s site is very basic.
It does have a black background with attractive, bright colors though.On the front page she has pictures of her providing services to clients. There is a section for her to tell customers about herself, but it is blank. In the middle of the page is a menu that customers can use to o straight to the different service categories that she offers.
Below that she lists her specials, and then towards the bottom she makes mention that she uses Image Skincare and also sells it, but does not provide a link for customers to find out more information. On her services page she lists all the services she provides and the prices. This is one of the areas I think could use improvement.Customers should be able to click on each service (especially for the facials and peels) and find out more information about that particular service. She also has a section on her site for the efferent packages she provides, most of which are customized. Lastly, she has a section to contact her where customers can fill a form out that is emailed to her.
On the section to contact her she does list her phone number and an email address where she can be reached. Karen currently has a Backbone page, but there is no link to it on her site. When searching the search engine for “facials” Careen’s business is on the first page of results.
If I search for “skincare” though, her business doesn’t come up. Also, if I search for Image Products in Wonderingly, Careen’s site does not come up. The good thing is even though her site is basic right now, there are quite a few upgrades that can be made for not a lot of money. One of Careen’s competitors is another local aestheticism. Skincare by Carmen is also located in Wonderingly, TN and in addition to offering the same type services as Karen, her business is more of a day spa. Careen’s site is very detailed, but there is almost too much going on.
The home page for Carmen features a lot of different areas and you almost aren’t sure where to look first. She does give a brief introduction to her business and what their goal is. On the homepage she also features current specials for the month, a link to email her if you wish to make an appointment or the option to call, portal to purchase gift certificates, her online store Ana testimonials. Her menu AT services Is very telltale Ana Is want I would ASK see Karen do with her site. If a customer wishes to learn more about a specific service, they can click on the link to learn more about it.It details the service, the approximate duration of the service and the price.
At the bottom of the page there is a link to email her if the customer has any questions. Carmen also has an online outside where she sells different product lines. The page is categorized very nicely by brand and skin type. Carmen also advertises gift certificates that customers can purchase. Customers can purchase by amount or by service. Another positive I see with Careen’s site is an area for client reviews. Carmen also has a Backbone page and has a link to it on the bottom of the page, though it’s easy to miss unless you are looking for it.When searching “facials” in the search engine, Careen’s business does not appear, however if I search for skincare her business is at the top of the page.
Carmen does not currently sell Image products, but they offer a few other different product lines. One of them is Г?imminence of Hungary. If I do a Google search for that product and include Wonderingly, TN in my key words, Careen’s site does come up, which means that customers searching for that product in particular can easily be directed to Careen’s site. Another competitor of Careen’s would be Avon. Even though Avon doesn’t provide any services, they still sell skincare products.Van’s site is professional and laid out very nice. At the bottom of their page they feature links to several different social Edie sites, including Youth, Backbone and Twitter. Their website is laid out by their different “brands” they sell; Anew, Makeup Studio, Skin So Soft, and Mark.
They also feature subcategories that customers can choose if they are not sure which “brand” their product falls under. Customers can choose make up, skincare, fragrance and more in the subcategory section. Within the skincare section of the site, it is laid out by categories as well, so customers can choose which area they need to go to find their product.
Each product also features an in depth description of what the product is used for. Avon also feature a search option on their site, which makes it easier for customers to find the product they are looking for. Customers can easily purchase any product on the Avon site and have it shipped directly to their house. Online Marketing Strategies There are several different online marketing strategies that Karen could utilize to help expand her business, increase her revenue and also make her customers happy.While Avon is a competitor on the national level, I believe Karen needs to update her site to better compete with Skincare by Careen’s site.
I have outlined overall below that I believe would work best for Karen. Strategy #1 – Email Marketing Email is used to directly reach customers and is “one of the oldest and yet still one of the most powerful of marketing tactics. ” (Stokes, 2013) Since Careen’s business is very small compared to others, email marketing would be a great tool for her to use since it is very cost effective.Karen could have a link on her website for customers to sign up for emails from her. Karen could use email to send out coupons, announce specials, or use it for newsletters. Using it for coupons and to announce specials is n excellent way to bring in new customers as well as potentially get existing customers to purchase products or services that they normally wouldn’t. She could use a newsletter to highlight new services and products, which could help increase of sales AT product.
Email Is also a good option Decease a good portion AT people nave smart phones, with email set up on the phone.Unlike with print media, where a customer would have to see her ad in the newspaper or magazine, by utilizing email as a marketing strategy her customers would see the email in their inbox when they look at their phone. This marketing strategy is a way to reach both old and new, potential customers. Strategy #2 – Search Engine Optimization I believe that Karen could also benefit from search engine optimization.
Search engine optimization (SEE) “is achieved by making changes to the hypertext markup language (HTML), content, and structure of a Web site, making it more accessible for search engines, and by extension, easier to find by users. (Stokes, 2013) Karen would need to update her site to include links to everything on her page that customers could potentially search for. Currently her site Just has 4 links, none of which are inked to Image Skincare. She would need to update so that if a customer searches ‘Image Skincare Products in Wonderingly, TN’ her site would pop up in the search engine. I think she would be best served by offering a detailed description of each product and service that she offers via a different link that goes to a page that offers that in depth detail.This keeps her main pager clutter free, while also allowing the customer who searches for certain key words find Karen online.
Karen would also need to update her keywords so when customers put certain key words into a search engine, Careen’s site comes up in the listing. If Karen is able to make the necessary changes, it could help her stay in the top returned results when certain key words are searched. It has been proven that customers are less likely to view any results after the first 30, while the top sites that appear on the screen without having to scroll any see an even higher amount of clicks on their sites. Stokes, 2013) These updates will help drive new customers who are searching for Image Skincare products or customers who are searching for a new aestheticism that provides certain services, like facials, find Karen easier. Strategy #3 – Affiliate Marketing Another strategy that would be useful to Careen’s business is affiliate marketing. One of Careen’s competitors, Careen’s Day Spa offers both aestheticism services (waxing, facials, peels, etc.
) as well as a masseuse. Karen could potentially partner with another local business that only offers massages and they could advertise on each other’s sites.This would help both Karen and the affiliate merchant recruit new customers, which can lead to an increase in revenue for both parties. This also benefits the customers, as most long time customers are going to trust what their assess recommends, so if they recommend Karen for any Image products or skincare services, Karen is likely to see an increase.
This is Just like word of mouth advertising, only between 2 merchants. Social Media Tools Social Media Tool #1 Karen currently has a Backbone page, but there is much more that could be done with it.Backbone is a perfect option for reaching her target demographic of 18-49 year olds since “in the U. S. , 83% of 18 to 29-year-olds who use the Internet are on it, but the proportion is only 67% across all age brackets.
However, the 45- to 54-year- old age bracket has seen 46% growth since year-end 2012. (Smith, 2013) Backbone is the “most popular social media app on smoothness and accounts for 66% of total social media sharing on phones. ” (Smith, 2013) With such a wide reaching audience, Facedown Is a perfect way to Interact Walt current customers Day posting International about products and services.Karen can use this tool to answer questions that a customer might have, in a very quick manner. Karen can also use Backbone to post advertisements on the site that may allow her to reach new customers. Timing is also very important with social media marketing. Buddy Media reports that “brand interaction rates were 14. 5% higher on weekends than on weekdays”.
(Lee, 2014) This tells us that Karen would need to do most of updates on the weekend when people are more likely to see it, instead of during the week when her customers are at work.Another option to integrate with Backbone is utilizing a site like Whiteouts that will let Karen write her updates in advance and schedule them to be deployed at a certain time. This saves her the trouble of having to stop what she is doing and post something.
The more often that she posts, she betters the chance she has to reach her current and potential customers. I would also advise Karen to use Backbone to advertise. Backbone has a built in tool to assist businesses in creating their ads. Depending on the results that the business is looking for (clicks to site, page likes, event responses, etc.
, Backbone walks them through what they need to do to be able to achieve their desired end result. The ad create tool allows a business to “target their ad to reach the friends of the people who have already “liked” their page on Backbone. It’s a way to naturally grow the customer base through word-of- mouth. ” (Backbone for Business, n. D. ) Social Media Tool #2 I would recommend Karen use Mainstream as another social media tool because 18-29 year old makes up 37% of its users, and 18% of users are ages 30-49 according to the Pew Research Center.
Karen can use this app to advertise specials, products and different services she provides. She can also use it to interact with her customers, which can help increase customer loyalty to her. Another way she can use the tool to interact with her customers is through the use of contests. When you log into Mainstream, more and more often you are seeing companies have photo contests where users are asked to use a certain hast when tagging and uploading heir photos. Karen should also strive to use her customers in her posts on Mainstream. Customers are your brands greatest advocates are a great way to tell your company’s story from the perspective of someone outside the company.
” (Sprung, 2013) Nothing beats word of mouth advertising, and especially when it comes to skin, people want to hear from other customers that have had good experiences. This is a great way for Karen to share her own customer’s reviews of her company. Conclusion Careen’s business is small but growing, by using some of the strategies and tools that I eave laid out, she can expand her business and potentially increase revenue.