JOE & CO

Marketing
Plan
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 Table of Content

EXECUTIVE SUMMARY ........................................................................................................ 2

INTRODUCTION ..................................................................................................................... 3
KEY MACRO DRIVERS ......................................................................................................... 4
COMPETITOR ANALYSIS..................................................................................................... 6
2.1 Main Competitors ....................................................................................................................... 6
2.2 Competition and Buying Patterns ............................................................................................ 6
Competition and Buying Patterns............................................................................................... 6
a. Traditional Barbers: .............................................................................................................. 6
b. Franchised "Quick Salons ................................................................................................... 7
c. Independent Salons: ............................................................................................................ 7
B2B TARGET MARKET ANALYSIS..................................................................................... 9
PRODUCT & PRICING STRATEGY .................................................................................. 10
Product Strategy ............................................................................................................................. 10
Promotional & Communication strategy............................................................................. 11
AIDA MODEL ...................................................................................................................................... 12
GANT CHART...................................................................................................................................... 14
Strategy to increase Sales ................................................................................................... 15
CONCLUSION ....................................................................................................................... 16
REFERENCE ............................................................................................................................... 18

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 EXECUTIVE SUMMARY

This report aims to outline Marketing Plan for JOE&CO focusing on the United
Kingdom B2B barbershop market. The first part of the report identifies key
macro drivers affecting this sector through an emerging issue analysis,
followed by a competitor intelligence analysis identifying and discussing the
key players position in the UK. Moreover, this report aim to identify and justify
key business segment as potential targets for Joe&Co. Lastly, the marketing
mix for one key segment is developed and analyzed on Joe’s products, pricing
and promotion strategy.
The emerging issues analysis highlights five emerging macro drivers
presenting opportunities and threats to Barbershop industry in UK.
In this report competition and buying patterns of the barbershop customers are
examined. Also, product and pricing strategy of Joe&Co examined in this
report.

By making use of AIDA framework, the promotional strategy concludes five

promotional tools recommended for Joe&Co.

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 INTRODUCTION

JOE&CO Barbing Salon is a high end and licensed barbing salon that will be
located in a richly populated neighborhood in London –England. Joe&Co
opened their barbing salon in this city because of the need for the services of a
standard barbing salon in the neighborhood.

JOE&CO will provide relationship-oriented haircutting services and their focus

is men customers. Haircutters will focus on building long-term rapport with
their clients and strive to deliver personalized beauty results for each
individual.

JOE&CO’s vision is to become the number one choice when it comes to a

barbing saloon in the whole of London and also to be among the top 20
barber-shop in the England within the next year.

JOE&Co Barbing Salon is in business is to establish a first class and standard

barbing salon that will take care of both highly placed clients (celebrities, public
figures and politicians, etc.) and lowly placed clients as long as they can afford
our services. We want to become one of the leaders in the barbing salon.

In this marketing report you will find key macro environmental factors which
affect barbershops operations. Afterwards you will find competitor analysis and
their role in the market. So you will examine key players. You will not only see
direct competitors but also you will face with indirect customers. After
analyzing the competitors, you will find pricing and product strategy of the
Joe&Co. Finally, there exist a customized marketing campaign for the
JOE&CO.

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 KEY MACRO DRIVERS

In The table 1.1 the market drivers are illustrated. These environmental factors and drivers
effect not only JOE & Co’s operations but also it effects all barbershops in UK. Also figure 1.2
illustrates the key macro drivers.

ENVIROMENTAL DRIVERS
Legal expenses for obtaining licenses and permits

Inflation in the UK market

Cost for hiring Business Consultant

Cost for Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office

Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium.

Cost for payment of rent

Cost for office remodeling (construction of racks and shelves)

Salaries of employees, payments of bills et al

The increase in cost of inventory (stocking with a wide range of products – clippers, shaving powder, hair shampoo and aftershave et al)

The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound system, Mirrors, tables and chairs et al)

The cost of Launching a Website

Labor unions

Exchange rate fluctuations

Table 1.1
1

1
(Barbers - BBC News, 2020)

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Figure 1.2

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 COMPETITOR ANALYSIS

2.1 Main Competitors

The main competitor is Mühle located across town. Strengths of Mühle are its wide
array of spa services. The weaknesses of Mühle are the limited number of services
dedicated specifically to male clients, i.e. hair grooming, shaves, shoeshines. Mühle
services and products cater more toward the female professional. We feel the
presence of Jonpaul's is not a direct competitor to Mühle and vice versa.

Market advantage is wide open and will give us the opportunity to service a large
population base of professional males that is not currently being well served.

2.2 Competition and Buying Patterns

Clients choose men's grooming services based on proximity to their daily travels from
home and work, reputation for high quality service, and good pricing. With Joe’s
combined services and catering to the male professional, we don't feel we have
competition. Any competition will mainly be from unisex salons or combination unisex
spa-salons.

Competition and Buying Patterns

Cranium Filament Reductions' competitors include:

a. Traditional Barbers: They rarely serve appointments; it is generally a walk-in

service. While barbers are usually willing to provide whatever cut you are
interested in, they are generally providing straight-forward haircuts, typically on
the conservative side. The advantages are an inexpensive service that is easy to
use. Their disadvantages are an often-conservative styling capacity, sometimes a
long wait.2

(IBISWorld - Industry Market Research, Reports, and Statistics, 2020)

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b. Franchised "Quick Salons": An example of this would be Supercuts or
Best Cuts. This is a franchised version of Cranium Filament Reductions. The
advantage of this style is the store is the same from location to location and some
people like this predictability.

c. Independent Salons: These shops typically focus on a specific niche and do

not serve a wide group of customers. The buying patterns of men and women are
quite different. Typically men are more price or convenience sensitive. Men
typically care less about the task of getting their haircut. For them whatever is
easiest works best. Women are more concerned with hair styling and tend to
bond more with their stylists. This bond creates loyalty to their stylist. Once a
stylist has earned their trust they are more willing to blindly put their hair in the
stylists hands.

Competitive Analysis
Direct & Indirect Competitors
The following retailers are located within a 5-mile radius of J&S, thus providing either
direct or indirect competition for customers:

• Joe’s Beauty Salon

Joe’s Beauty Salon is the town’s most popular beauty salon and has been in
business for 32 years. Joe’s offers a wide array of services that you would expect
from a beauty salon.
Besides offering hair cuts, Joe’s also offers nail services such as manicures and
pedicures. In fact, over 60% of Joe’s revenue comes from services targeted at
women outside of hair services. In addition, Joe’s does not offer its customers

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3

• LUX CUTS
LUX CUTS has been in business for 5 years. LUX CUTS offers an extremely high-
end hair service, with introductory prices of $120 per hair cut.
However, LUX CUTS will primarily be targeting a different customer segment from
J&S, focusing on the households with an income in the top 10% of the city.
Furthermore, J&S offers many of the services and products that LUX CUTS offers,

• Freddie’s Fast Hair Salon

Freddie’s Fast Hair Salon is located four stores down the road from J&S. Freddy’s
has been in business for the past 3 years and enjoys great success, primarily due to
its prime location.
Freddy’s business offers inexpensive hair cuts and focuses on volume over

3
(Top of the crops: the UK’s 10 best barber shops, 2020)

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 B2B TARGET MARKET ANALYSIS

For B2B it is logical to target Audit and consultancy service provider companies.
Furthermore, big 4 Auditors would be perfect fit with JOE & CO’s business for several
reasons. The members of these market segments have money on hand, and lead
professional lives filled with very busy schedules. All persons usually need hairstyling
regardless of income level and make the effort to find money available to style their "look."
GQ states that mid aged men professionals spend more money for their look when
compared with the older counterparties. So, in Audit sector 70% of the workers are mid aged
according to KPMG’s data.

JOE&CO’s target market will be barber shop services for the professional male. Based on
Internet survey, 80% of our services will be associated with hair, hair color,
shaves, shoeshine; 15% will come from facial, massage, nail, and tanning services; and 5%
will come from products. Thus, our target market will be male professionals, from the age of
25 to 45, with individual and household incomes greater than $75,000.

The following table and chart depict our potential customers with a conservative annual
growth rate of 4%. The annual growth rate for the area has been 7.5% since 1990.

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 PRODUCT & PRICING STRATEGY

Pricing Strategy

The Pricing strategy of JOE&CO is market skimming price. Since their target
market is high income class, they can set the price of their services higher than
other barbershops.

Product Strategy
John & Sons will provide relationship-oriented haircutting services for all ages and
both genders. Haircutters will focus on building long-term rapport with their clients
and strive to deliver personalized beauty results for each individual

The product (barber service) will range depending upon the materials and labor,
rent and other costs. The brands product positioning will be a premium luxury
service provider for men style. Thematic elements from this brand, will gain
strategic positioning through its superior quality.

JOE&CO will feature premium hair products in-store from these well-established
brands. It will continue to update its offering in order to provide the newest hair
products to its customers.

Some of its featured brands will include:

Gioldwell, Schwarzkopf, Paul Mitchell System

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 Promotional & Communication strategy

JOE & Co expects its target market to be individuals working and/or living within a 5-mile
radius of its location. Promotions strategy to reach these individuals includes:

JOE & CO will announce its opening several weeks in advance through publicity pieces in
multiple local newspapers and publications. Regular advertisements will run to maintain
exposure to relevant markets. Community newspapers, school publications, youth sports
programs, and similar channels will be a major promotion effort.

• Local publications

JOE & CO will make careful use of advertising in selected larger publications. It has a
circulation of xyz and we can expect to reach a wider geographic region of customers on a
limited basis. Advertisements with major publications will be used selectively, based on cost
effectiveness. These ads will include discount coupons so that response to the ads can be
tracked.

• Major publication

JOE & CO will promote itself by distributing marketing materials and participating in local
community events, such as school fairs, local festivals, homeowner associations, or sporting
events. Since mothers are often heavily involved in such things, we will not only reach the
lucrative audience of adult women but also potentially their families by extension.

• Community Events/Organizations

We will drive attention toward JOE & CO by hiring workers to hold signs alongside London
road. Advertising on heavily traveled commute routes are an opportunity to alert large
numbers of working individuals with disposable income of our opening.

• Commute Advertising

JOE & CO will create a winning customer loyalty program to keep its best clients coming
back again and again. When not actively providing services to customers in the store, our
professionals and other employees will make periodic, regular phone calls to customers.
These phone calls will (a) ensure that customers are satisfied with their hair treatment, and
(b) remind customers after a certain period of time

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(Concept2Completion - Modern Branding and Marketing for the Digitial Age, 2020)

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 • Customer Loyalty Programs

JOE & CO will maintain a website and publish a monthly email newsletter to tell customers
about new events, products and more.

• Ongoing Customer Communications

Before opening the store, JOE & CO will organize pre-opening events designed for
prospective customers, local merchants and press contacts. These events will create buzz
and awareness for JOE & CO in the area.

• Pre-Opening Events

JOE & CO Barbing Salon will work towards ensuring that all our services are offered at highly
competitive prices compare to what is obtainable in England.

AIDA MODEL

Figure 2.1 illustrates the Action plan that

JOE&CO need to be aware. It describes the
time horizon that which marketing activity
will be happen when. Secondly, in figure 2.2
you can find the descriptions that shows
which action is designed for what purpose.
These two figures are prepared according to
the AIDA model. Lastly, Gant chart again
illustrate how Marketing campaign should be
handled week by week.

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 2020 2021
Q4 Q1 Q2 Q3
Joe&co OCT NOV DEC JAN FEB MAR APR MAY JUN JUL
AWARENESS

AIDA Framework INTEREST & DESIRE

PR . . .

Exhibition activities USING LOCAL & INTERNATIONAL MEDIA AS IMC STRATEGY

Figure 2.1

TIME PROMOTİON TARGET OBJECTIVE DESCRIPTION

TOOL MARKET-DMU
JANUARY Local Auditors who Increase The sales will
newspaper are living in demand of rural increase with
marketing rural areas customers the help of local
new ads
FEBRUARY Advertising All UK and Increase The brand
through out international reputation equity will be
global customers increased by
newspapers this method
MARCH Social Media Auditors using Increase Sharing
Marketing social media demand and videos/photos in
platforms make people social media
actively know the brand platforms again
a way to
increase
reputation

Figure 2.2

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 GANT CHART

Figure 2.3

Gant Chart

use local newspapers use multinational media chanels manage social media posts customer loyalty programs start PR activities

week 1

week 2

week 3

week 4

customer loyalty programs >> (Joe&Co card& special discount for loyal customers)
notes
start PR activities >> (collaborate with influencers and celebrities)

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 Strategy to increase Sales

Moreover JOE & Co need to change the decoration towards modern one to increase its sale
and profit. As essential as barbershop decoration style, hairstyle is the second issue
mentioned in the questionnaire. There are five types suggested such as common, modern,
design, medium long and long. To avoid misunderstanding between common, modern and
design haircuts.

Common hairstyle includes any form of short and classic style. Modern style is related to
hairstyles with quiff, undercut, tapered side etc. Design hairstyle indicates hairstyles with
clear lines, asymmetrical sides etc. 62.5% of the experienced group imply that they prefer to
have common haircuts and one fourth favor design hairstyle. Quite the same as experienced
group, 66.7% of the inexperienced group favor common hairstyle, half of the rest prefer
medium long haircuts and the rest think modern haircut is the best. Design hairstyle is not
favored by this group.

Furthermore, preferable price range is also discussed. The following figures illustrate
potential customers’ price preferences.

Figure 27. Experienced group price range preference.

Figure 28. Inexperienced group price range preference.

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16
 CONCLUSION

JOE&CO serves luxury and high-end barbershop experience to it’s customers. Since

they target mid aged men blue color workers, they should target Auditors as target

market. Also for marketing campaign they need to diversify their channels and gave

ads from newspapers, social media, Tv and local media. So their integrated

marketing communication could be smooth by this way. Also, Joe&Co has marketing

skimming price approach and it is correlated with their brand image. Since they target

whom belong to the high income it is logical to use market skimming price strategy in

order to increase profit and brand equity. Lastly, Joe&Co need to redesign their

interior design with modern carpets, sofa and etc. to increase their sales.

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 REFERENCE

Joeandco.net. 2020. Joe & Co. The Best Barbers & Modern Men's Grooming In Soho,

London. [online] Available at: <https://www.joeandco.net/> [Accessed 28 March 2020].

BBC News. 2020. Home - BBC News. [online] Available at: <https://www.bbc.com/news>

[Accessed 28 March 2020].

Levesley, D., 2020. British GQ - Men’S Style & Fashion, Politics, Trends And Culture. [online]

British GQ. Available at: <https://gq.com/> [Accessed 28 March 2020].

No 1 Barbers. 2020. No 1 Barbers | Welcome To No.1 Barbers Traditional Barber Shop.

[online] Available at: <https://www.no1barbers.co.uk/> [Accessed 28 March 2020].

Barberbarberuk.co.uk. 2020. Barber Barber UK | Gentleman's Barbering | Manchester |

Liverpool | Leeds | Spitalfields | Birmingham | Soho | Hale |. [online] Available at:

<http://www.barberbarberuk.co.uk/> [Accessed 28 March 2020].

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