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Starting a beauty center business

Updated on May 27, 2016


1.0 Introduction

Company name beauty center is a business which deals with the sales of beauty products for women. It is a business which deals with products in all lines of beauty which has qualified staffs who offer the best customer care for all who visit the shop for the purchase of any commodity, either in large quantity or small quantities.

1.1 Business Background

The business will be known as;-

Company name Beauty Centre


Telephone: +



The business will be registered at City County of Nairobi Licensing office in order to be awarded an operating license.

Company name Beauty Centre will be founded by Your namewho is a holder of a BBA in Finance from St. Paul’s University and a Diploma in Procurement from Kenya Institute of Management.

1.2 Business Location

Company name Beauty Centre will be located in Komarock estate off Kangundo Road in Phase four. This choice of location will be determined by easy accessibility from clients in the surrounding phases and many salons around the area.

1.3 Form of Business Ownership

Company name Beauty Centre will be a Sole-Proprietorship business. This form of ownership will be applicable because the owner will have all access to decision making regarding the business and all profits and losses will be upon the owner such that there will be no disagreements arising. When the business grows in future, it is easy to change to another form of business ownership. The business will be managed by Your name with the help of an assistant .

1.4 Type of Business

Company name Beauty Centre will be mainly a product based business dealing with hair and beauty products. The decision to start a product based business in hair and beauty shall be to offer products to clients who do not frequent visit the CBD and also to bring products closer to customers.

1.4.1 Long Term Opportunity for Growth

Company name Beauty Centre will have experienced sales persons who will handle clients and their demands well and professionally. Company name Beauty Centre will ensure that the shop is well stocked up with quality products at all times so as to avoid shortages.

For those clients who will not be able to come to the shop for one reason or the other, delivery services for ordered products will be offered to them. Looking at other residential areas coming up around the area like Komarock Phase five and the population increment expected from that development, the business will thrive.

1.5 Company name Beauty Centre Products

Company name Beauty Centre will be dealing with hair and beauty products from leading manufacturers which include;- Hair Products, Hair Oils, Perfumes and Cosmetics

1.6 Justification of The Business

The idea for Company name Beauty Centre came about due to the need that women want to look good and beautiful and around the area there is only major shop that is two kilometers away. Thus Company name Beauty Centre will be able to access many customers and due to the personalized service that will be offered, the business will attract many clienteles.

The target population for Company name Beauty Centre will be beauty and saloon shops, Beauty Learning Business, supermarkets and all the residents living within Komarock and Kayole Estate.

1.7 Industry

Company name Beauty Centre will be a product oriented business that is under the hair and beauty industry in Kenya.

1.8 Business Goals

The major goal of Company name Beauty Centre will be to ensure that women are beautiful without using harmful products.

a) Short Term Goals

The short term goals of Company name Beauty Centre will to proper marketing, Individual Attention, Offer Variety of Products, Create Employment and Personalized Service.

b) Long Term Goals

The organizational long term goals will entail Exceeding Customer Expectations, Growth of the Business to Other Areas, Staff Training, Financial Freedom and Becoming a Market Leader. This will support the organization to remain in business for long time while effectively satisfying the market to which it services.

1.9 Entry and Growth Strategies

1.9.1 Entry Strategy Pricing

Company name Beauty Centre will focus on offering the best and affordable price on hair and beauty products to all clients. This will enable the shop to attract and retain customers for the growth of the business. Product

Company name Beauty Centre will have an increased product line that will consist of diversified products. This will enable customers to have a variety to choose from. A variety of products will also translate in more profits for the business. Promotion

Company name Beauty Centre Promotion will comprise advertising, public relations, sales promotion and word of mouth. The advertising will mainly be done by distribution of flyers to different people in the estate and surrounding areas. Distribution/ Place

Company name Beauty Centre will have a shop that is convenient and accessible to customers around the area. The business will also be branded at the front so that even passersby will be able to locate the shop easily.

1.9.2 Growth Strategy

Figure 1.1 Ansoff Growth Strategies

Source: (Ansoff, 1941) Market Penetration

According to Ansoff growth strategy, market penetration involves selling more established products into existing markets, often by increased promotion or price reductions or better routes to market, for example online. Company name Beauty Centre will update and improve on existing products in order to increase the market share for its products. Product Development

Ansoff indicated that product development involves developing new products or services and placing them into existing markets. Company name Beauty Centre will use product development for growth of the business by introducing new products for existing markets. Product development will be achieved by keeping up to date with new products in the industry and ensuring their availability to the customers. Market Development

It is maintained by Ansoff in his view regarding growth strategy that, market development entails taking existing products or services and selling them in new markets. Company name Beauty Centre will achieve market development by creating an online site that will enable customers to purchase the products they want and delivery will be done. This will ensure that the business gets more customers. Diversification

As it is stated by Ansoff, diversification involves developing new products and putting them into new markets at the same time. Diversification is considered the most risky strategy. This is because the business is expanding into areas outside its core activities and experience as well as targeting a new audience. It also has to bear the costs of new product development. Company name Beauty Centre will acquire a wide variety of products that will benefit the customers who will have a wide selection to choose from. As the business grows, new potential markets can be entered into for business exploitation.


you will need a logo for you new business, I have provided a simple one herer


Nairobi City County, intents to indentify all the customers from all corners of the county, in order to attain its set sales goals. The Company name beauty centre has indentified its competitors where sales tactics have been put in place to enhance customer base. The utilization of existing technology will be used to support the set marketing plan in the field of beauty.

2.1 Customers

Company name Beauty Centre will target;- Working women living around the area of business, housewives within the estates and all categories of women, girls and ladies who live in and around the estate.

2.2 Market Share

Company name Beauty Centre intends to command 20% of the market share in the first year of operation. This is mainly because the area of the business is a residential area with many women living there. In the next three years Company name Beauty Centre will have a market share project of 40%. This will be achieved by employment of various growth strategies and keeping up with the latest trends in the hair and beauty industry. Company name Beauty Centre will strive to be ahead of the competition by keeping tabs with what other competitors are using to run their business.

2.3 Competitors

Company name Beauty Centre will face three main competitors:-

Name :

Address :

Location :

Market Share : 31%

Marketing Strategies: Kenlee have been using the strategy of diversity in their product range such that a customer will have a wide variety to choose from.

Name : Naivas Supermarket

Address : P.O. BOX 23300 - 00200

Location : Komarock

Market Share : 23%

Marketing Strategies: Naivas have been using the strategy of time that is, opening as early as 7:30a.m. And closing at 8:30p.m and also diversity in their product range so that a customer will have a wide variety to choose from.

Name : Beauty World

Address : P.O. BOX 25 - 00618

Location : Komarock

Market Share : 20%

Marketing Strategies: Beauty World have been using the strategy of diversification of the business that is, they also have a Beauty Salon in their premises.

Figure 2.1 Market Share

Source: Author (2014)

2.4 Methods of Promotion

Company name Beauty Centre intends to embark on a vigorous promotional exercise that will ensure it increases its market share significantly. This will be done mainly through advertising, personal selling, sales promotion and publicity.

2.4.1 Advertising

Advertising is the activity of producing advertisements for commercial products or services. It is meant to persuade audiences to buy the products or services. Advertisements will be through printed banners in strategic areas around the estates as this will target a wide range of customers who pass through those areas. Through advertising, the business and what it offers will be familiar to potential customers, create goodwill and build a favorable image and attract customers to find out more about the products offered.

2.4.2 Personal Selling

Personal selling is a promotional method in which one party e.g. sales person, uses skills and techniques for building personal relationships with another party, that is, those involved in a purchasing decision, that results in both parties obtaining value. Company name Beauty Centre will use a sales person who will use skills and techniques for building relationships with customers. Personal selling may be done by use of pamphlets that show the product range and the sales person can explain about the products. In personal selling there should also be follow up, proactive or reactive contact with the purchaser to establish their satisfaction level and to address any problems that may exist.

2.4.3 Sales Promotion

This relates to short term incentives offered to a customer for the purchase of a product. Company name Beauty Centre will from time to time give out on pack offers and bonuses. This will include, example, when a customer buys a weave they get a clip or hair band free of charge.

2.4.4 Publicity or Public Relations

This refers to the deliberate, planned and sustained effort to establish and maintain mutual understanding between a business and its customers. Company name Beauty Centre will strive to build good relationships with their customers as this will generate positive word of mouth and referrals from satisfied customers. This will be done by production of annual brochures and community activities.

2.5 Pricing Strategies

2.5.1 Competition Pricing

Competition pricing refers to setting prices in comparison with competitors in order to make the business to be competitive enough. Company name Beauty Centre will set prices in accordance to its competitors. This is because some customers compare prices of different shops.

2.5.2 Penetration Pricing

Penetration pricing is the technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers. Company name Beauty Centre will use penetration pricing to attract customers, increase sales and market share. Once market share has been captured and established, the business may then increase prices.

2.5.3 Decoy Pricing

This is where pricing for the same product but by different manufacturers is different. That is, one is priced slightly higher than the other. Example; Company name Beauty Centre may price Darling Products slightly cheaper than Angels Products.

Table 2.1 Price Category




Range 450 – 1000



Ghanaian Lines





Range 100 - 350

Hair Oil

Range 100 – 700

Face Cream



Range 300 – 500

Hair bands




Alice Bands

Range 30 – 100

Foot Cream


Source: Author, (2014)

2.6 Sales Tactics

Company name Beauty Centre will use the following sales tactics for a successful business;-

2.6.1 Professionalism

Professionalism is the key to quality and efficiency in a business activity. Company name Beauty Centre will employ staff who are competent and who will be able to handle all sorts of customers well.

2.6.2 Personal Selling

Through good relationships with the customers of the business, Company name Beauty Centre will ensure that its customers are brand ambassadors for the shop. If a customer has been treated well and is satisfied, they will recommend the shop to their friends.

2.6.3 Differentiation

Company name Beauty Centre will differentiate itself by offering convenience of purchase. That is a customer can buy products over the phone and they are delivered to them thus they do not have to come to the shop.

2.7 Distribution Strategy

Company name Beauty Centre will use direct distribution strategy. This is because the business will be dealing directly with its customers for sale of products. Customers will be able to give suggestions and recommendations and also order for products that they need but are not in stock at the business.

2.8 Suppliers

Company name Beauty Centre will have three main suppliers who include;-

Name : Style Industries Ltd.

Address : P.O. BOX 30682 - 00100

Location : Nairobi

Name : Sana Industries (K) Ltd.

Address : P.O. BOX 30685 - 00100

Location : Nairobi

Name : FrontPage Cosmetics

Address : P.O. BOX 23356 – 00200

Location : Nairobi

2.9 Coping with Change

In order to remain competitive in the business, Company name Beauty Centre intends;- to offer a wide range of products from various manufacturers to the customers, to Ensure that the quality is maintained by maintaining relationships with the suppliers and to Integrating IT in the business activities to ensure efficiency and effectiveness.


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