Chapter II

Marketing Aspect

This chapter is prepared to determine the suitability of the service for

profitable development and to define optimal services of the recommended
business. The marketing aspect will cover the following: General Business
Condition, Tabulation of Results, Target Market, Demand, Service, Promotion,
Marketing strategy, Pricing Strategy, and Promotion. Furthermore, this aspect
discusses all the creative strategies to market the business and how these
strategies will affect the market's perception of the business.

Objectives:

• To identify the target market.

• To determine the marketing strategies in introducing the service.

• To describe the services.

• To compute projected demand and supply of service.

Page | 6
Analysis of the Market

The researchers analyzed and study the proposed business and

understand if the business is viable in the market. Also the researchers
determine the location of demand and considered the type of market.

The proponents chose the area where people always wander around,
surrounded by establishments and working people meet for the reason that it is
ideal for the proponents that their prospect customer is around, aside from
people from the internet and other areas. In general, the residents of Barangay
San Antonio and Kapasigan are the target market of the business.

Industry Background

Since the days of Cleopatra (51–12 August 30BC) to today’s multibillion-dollar

beauty industry, hair and makeup artistry has been a large factor in creating a
certain standard of beauty. Consciously or not, men and women, regardless of
age, invoke a sense of aesthetics that brings into bold relief the intersection of
beauty and commerce. Nowadays, the industry of hair and make-up artistry is
escalating. The industry continues to expand globally, with 8.5% growth by 2014.
Numerous aspiring beauticians are continuously establishing salons or render
home services.

The hair and make-up industry remains steadfast as many potential clients
wants to boost their appearances in attending occasions or important events.
The industry is innovated with the help of new technologies. The techniques used
in applying make-up are better than before and the brands for cosmetics to be
used are abundant.

The possibilities in the hair and make-up industry are endless and inevitable.
As long as there are innovations and new trends, the industry will improve. The
hair and make-up industry follows the changes that time may give.

Page | 7
Marketing Research

Market Research provides important and accurate data and through

information as the building blocks of all the successful business ventures and
provides information regarding the prospective Target Market. The existing
Competition in the Market and the Profitability of the Business depends on the
gathered data.

Bonny Hair and Make-up Artistry considers all types of women particularly
ages from 17 to 39 and above, no matter what religion as long as they have high
or low income as the company’s target market they can be consider as a of the
potential customer. For the benefits of our potential customers Bonny Artistry
studies and makes effort to differentiate and understand the needs, wants and
the preferences in order to meet the satisfaction of the optimal service.

The proponents prepared three (3) sets of questionnaire, one (1) for women
of Barangay Kapasigan and San Antonio, Pasig City, one (1) for every company
in both barangay and one (1) for students of the Pamantasan ng Lungsod ng
Pasig which are the second year, third year and graduating students of the latter.

The Sampling technique in the research instrument for the women is

systematic sampling technique. While the sampling technique used to the
students of the university is stratified and population sampling technique is used
for the companies. The proponents chose Barangay Kapasigan as the target
market for the reason that the company’s main office is located at that area, while
Barangay San Antonio for the reason that the area have lots of business
establishments which are also the target of the company.

Page | 8
 A. Market Analysis

WOMEN

Table 2.1

Population Size of Women

Target Barangays No. of Women Percentage (%)

in Pasig City
Kapasigan 3,285 30
San Antonio 7,142 70
TOTAL 10,427 100

Table 2.2

Summary of Women

Women Respondents Percentage

Kapasigan 357 48.51

San Antonio 379 51.49

TOTAL 736 100

Slovin’s Formula for Barangay Kapasigan

N 3,285
¿ ¿
n (1+ Ne2) n 1+3,285(.0025)

n = number of samples
3,285
¿
N= total population n 9.2125

e = error tolerance n= 357

Slovin’s Formula for Barangay San Antonio

Page | 9
 N 7,142
¿ ¿
n 2
(1+ Ne ) n 1+7,142(.0025)

n = number of samples
7,142
¿
N= total population n 18.855

e = error tolerance n= 379

Total Respondents for Women= 736

Systematic Sampling Technique

N 10,427
k= n k= 736

k= 15

The proponents choose to use the Systematic Sampling technique. The

computation show’s that proponents will choose every 15 th Women at Barangay
Kapasigan and San Antonio to be a respondent in order to complete the total of
736 respondents.

Page | 10
 Chart 2.1

Age Brackets of Respondents

Chart 2.1 shows the age bracket of the respondent. The highest
percentage is 38.24% that correspond for 19 to 25 years old of most respondents
that answered the survey questionnaires.

Conclusion

To support the survey result under the respondent’s age who answered
yes, to avail hair and make-up services that there is a large possibility and that it
is visible that the following:

Adolescence and Young adulthood

People under this age are conscious about their physical appearance,
building their image for the people to see. Nowadays many young adults are
beginning their career, starting as professionals. They encounter numerous
occasions in their jobs and their personal lives such as debuts, general
assemblies, weddings, reunions and parties. For these professionals they won’t
attend these events without looking their best, and for these instances they will
need hair and make-up artists to achieve the image they want to show and will
therefore boost their confidence.

Page | 11
Early Adulthood and Middle Age

People under this age are starting to form a family. Most of these women
are busy looking after their children which cause some of them to lose time
pampering themselves. On the other hand several women with family that has
work still finds time to hire hair and make-up artists to fulfill their need to look
professional specially when attending corporate gatherings, parties, and personal
get-togethers.

Old Age

Growing old is a natural process. Some elders have lost interest to

pamper themselves, but few of them are still concern on their physical
appearance. These people appoint hair and make-up artists to enhance and fix
their looks in attending events such as reunions and wedding anniversaries.

Page | 12
COMPANY

Table 2.3

Population Size of Companies for Hair and Makeup

Target Barangays No. of Companies Percentage (%)

In Pasig City
Kapasigan 35 42
San Antonio 48 58
TOTAL 83 100

Bonny Hair and Makeup Artistry chose to conduct survey from the
Companies located at Barangay Kapasigan and San Antonio for the reason that
the areas have many establishments and business sectors that is both public and
private.

Bonny will target to market, private companies who organize and attend
special occasion and gatherings such as Christmas party, general assemblies,
modeling events and other events depending on the nature of the business,
brand/product launching by searching the internet the proponents will identify the
companies that are soon to launch their product/service and by getting the
company’s information will help the proponents contact and connect with latter.

The proponents used the population sampling technique since there are
only 83 companies around Barangay Kapasigan and San Antonio.

Page | 13
STUDENTS

Table 2.4

Population Size of Female Student

COURSES SECOND THIRD FOURTH TOTAL PERCENTAGE

YEAR YEAR YEAR
Secondary 130 95 73 298 16.48
Education
Elementary 63 53 29 145 8.02
Education
Hospitality 86 72 49 207 11.45
Management
Marketing 189 116 91 396 21.90
Management
Entrepreneurs 50 52 51 153 8.46
hip
Accountancy 19 27 31 77 4.26
Information 41 65 74 180 9.96
Technology
Computer 54 68 39 161 8.90
Science
Engineering 30 57 10 97 5.37
Nursing 29 34 12 75 4.15
BS Math 19 19 1.05
TOTAL 691 639 478 1808 100

Table 2.4 shows the list of the total of female students of second year,
third year and fourth year of the Pamantasan ng Lungsod ng Pasig. The
proponents chose the second year and third year students as the target market
for the reason that most of them are going to have their eighteenth birthday or
debut while the fourth year students are also the company’s target market for the
reason that they will be attending graduation balls and ceremonies.

Page | 14
 Table 2.5

Summary of Students

STUDENTS RESPONDENTS PERCENTAGE

Second Year 253
35.29
Third Year 246
34.31
Fourth Year 218
30.40
TOTAL 717 100

Table 2.5 shows the summary of students using the Slovin’s formula which
results to 717 respondents. The highest number of respondents is the second
year students which is 35.29%, 34.31% for the third year students while the least
number of respondents is the fourth year students which results to 30.40%.

Slovin’s Formula

Female Second Year

N 691
¿ ¿
n (1+ Ne2) n 1+691(.0025)

n = number of samples
691
¿
N= total population n 2.7275

e = error tolerance n= 253

Female Third Year

639
¿
n 1+639(.0025)

Page | 15
 639
¿
n 2.5975

n= 246

Female Fourth Year

478
¿
n 1+ 478(.0025)

478
¿
n 2.195

n= 218
Total Respondents for Students = 717

Table 2.6
Summary of Respondents
Respondents Percentage
Women 736 47.92
Company 83 5.40
Employees
Students 717 46.68
Total 1,536 100

Table 2.6 shows the total of respondents which are 1,536 individuals. The
highest number of respondents is women from Barangay Kapasigan and San
Antonio and 717 respondents for students while the least number of respondents
is the company employees that totals to 83 individuals.

Table 2.7
Summary of Target Market
Students Women Company Total Percentage
Employees
Refusal 24 24 10 58 3.78
Not Capable 88 44 8 140 9.11
Not Willing 32 13 15 60 3.91
Page | 16
Willing 573 655 50 1278 83.20
Total 717 736 83 1,536 100
Respondents
 Table 2.7 shows that the demand of the company that are willing to avail is
lessen for the reason that some of the respondents are not capable or stable to
avail the service.

Chart 2.2
Factors to Consider

80%
70%
60%
50%
40%
30%
20%
10%
0%

Chart 2.2 shows the percentage of the factors that customers consider in
hiring a Hair and Makeup Artist. The result shows that the top one factor that the
customer considers is the quality of service, brand of cosmetic comes second,
third is the price and lastly is the experience of the artist.

B. Demand and Supply Analysis

Demand Analysis

Proponents come up to the business demand base on the result of the

survey conducted to the targeted areas which are the Barangay San Antonio and
Kapasigan. The respondents indicated on how many times they will hire the
Bonny Artistry and how many persons will avail the service per each chosen
event or occasion.

Page | 17
 Table 2.8

Summary of Demand per Package

Demand Percentage
Debut 409 9.85
Wedding 54 1.30
Party 2,171 52.29
Pageant 180 4.34
Holiday 814 19.61
Photo-shoots 221 5.32
General Assembly 35 0.84
Special Events 268 6.45
Total 4,152 100

Table 2.8 shows the summary of demand that totals to 4,152.

Table 2.9

Demand for Debut Package

DEBUT Respondent Annual Yearly

s Frequenc Deman
y d
Package A 197 1 197
Packages 71 1 142
B
(2 heads)
Packages 30 1 30
C

Page | 18
 Packages 20 1 40
D
(2 heads)
TOTAL 318 409

Table 2.10

Demand for Wedding Package

WEDDING Respondent Annual Yearly

s Frequenc Deman
y d
Package A 18 1 18
Package B 36 1 36
TOTAL 54 54

Table 2.11

Demand for Party Package

Package A Respondent Annual Yearly

(5 heads) s Frequency Demand
8 1 8

Page | 19
 12 2 24
8 3 24
4 4 16
5 5 25
Subtotal 35 97
Package A 485
Demand (97x5)
Package B
(8 heads)
5 1 5
12 2 24
10 3 30
4 4 16
3 5 15
Subtotal 34 90
Package B 720
Demand (90x8)
Package C
(12 heads)
6 1 6
6 2 12
4 3 12
2 4 8
3 5 15
Subtotal 21 53
Package C 636
Demand (53x12)
Package D
(15 heads)
1 1 1
4 2 8
1 3 3
0 4 0
2 5 10
Subtotal 8 22
Package D 330
Demand (22x15)
Total 2,171

Table 2.12

Demand for Pageant Package

PR AY
Ae n

Page | 20
 Gs n
Ep u
Ao a
Nn l
Td F
e r
n e
t q
s u
e
n
c
y

8 1 8
3
3 2 6
2
1 3 3
1
T1 1
O2
T6
A
L

Table 2.13

Demand for Holiday Package

HR AY
e n
s n
p u
o a
n l
d F
e r
n e
t q
s u
e
n
c
y

Page | 21
 2 1 2
8
2
1 2 2
0
3
6 3 1
2
2 4 8
0
1 5 6
2
T4 8
7
9

Table 2.14

Demand for Photo-shoot Package

P R AY
H e F
O s
T p
O o
S n
H d
O e
O n
T t
S s
1 11
2
0
3 27
7
9 32
T 1 2
O 6
T 6
A
L

Page | 22
 Table 2.15

Demand for General Assembly Package

GR AY
Ee n
Ns n
Ep u
Ro a
An l
L d F
e r
An e
St q
Ss u
E e
M n
B c
L y
Y
1 1 1
9
8 2 1
T 2 3
O7
T
A
L

Table 2.16

Demand for Special Events Package

S R AY
P e n
E s n
C p u
I o a

Page | 23
A n l
L d F
e r
E n e
V t q
E s u
N e
T n
S c
y
G1 11
r 5
a 6
d
u
a
t
i
o
n
G8 18
r 4
a
d
u
a
t
i
o
n

B
a
l
l
R 1 11
e 8
u
n
i
o
n
F 5 15
a
s
h

Page | 24
i
o
n

E
v
e
n
t
s
W3 1 3
e
d
d
i
n
g

E
n
t
o
u
r
a
g
e
A 2 12
d
v
e
r
t
i
s
e
m
e
n
t
T 2 2
O6
T 8
A
L

Page | 25
 The table 2.9 up to table 2.16 shows the demand for each package, using
the formula (respondents x frequency = yearly demand). Also the occasions like
debut, wedding, and party have different packages and each packages contains
the number of individuals that would benefit to the package.

Table 2.17

Summary of Demand

PACKAGES DEMAND
Debut
 A 198
 B 141
 C 30
 D 40
Subtotal 409
Wedding
 A 18
 B 36
Subtotal 54
Party
 A 485
 B 720
 C 636
 D 330
Subtotal 2,171
Pageant 180
Holiday 814
Photo shoot 221
General Assembly 35
Subtotal 1,250
Special Events
Graduation 156
Graduation Ball 84

Page | 26
 Reunion 18
Fashion Events 5
Wedding Entourage 3
Advertisement 2
Subtotal 268
TOTAL 4,152

Table 2.17 shows the summary of the demand where the respondents
have chosen to avail the service such as debut, wedding, parties, and other
events like graduation, pageants, general assemblies and more. Also it shows
that by adding all the subtotal of the packages results to 4,152 demands.

Table 2.18

Background History of Competitor’s Supply

No. No. of 2011 2012 2013 2014 2015 Market

Competitors share
(%)
1 Index 115 136 110 180 197 4.74
2 Davids 152 161 155 200 214 5.15
3 Hello Dolly 125 140 131 153 171 4.12
4 Atlas 95 130 103 156 150 3.61
5 Epitome 100 130 103 158 154 3.71
6 Heaven’s 105 115 113 158 154 3.71
7 Beaufort 125 140 135 182 196 4.72
7 HMUA Hannah 129 132 128 163 166 4.06
Pedron
8 HMUA Aisa 132 142 133 193 158 3.81
9 HMUA Allyssa 133 150 133 150 193 4.65
10 HMUA Ashley 134 156 143 180 197 4.74
11 HMUA Marcos 94 129 113 121 125 3.01
Mark
TOTAL: 1439 1661 1500 1994 2075 50.03

Table 2.18 shows the competitors of the Bonny Company in the market
which are the salons and professional and freelance hair and makeup artist. It
also displays the rival’s supply history and market shares.

Page | 27
Page | 28
 Hello Dolly
4%

Atlas
Index 4%
Davids
5% Epitome
5%
4%

Heaven’s
Available Market Share 4%
46%
Beaufort
5%

HMUA Hannah Pedron

4%
Bonny HMUA Marcos Mark HMUA Ashley
5% HMUA Aisa
4% 3%
4%

HMUA Allyssa
5%

Index Davids Hello Dolly

Atlas Epitome Heaven’s
Beaufort HMUA Hannah Pedron HMUA Aisa
HMUA Allyssa HMUA Ashley HMUA Marcos Mark
Bonny Available Market Share

Figure 2.1

Pie Graph

Figure 2.1 shows the Competitor’s Market Share. The pie graph shows that
Bonny Hair and Make-up Artistry have a Market share of 4.16%

Formula:

Availble market share 49.97

Company Market Share = competitor+ 1 = 11+1

Company Market Share = 4.16%

Page | 29
 Table 2.19

Gap Analysis

Year Demand Supply Gap Percentage

2015 4,152 2,075 2,077 49.97
2016 4,250 2,124 2,126 49.97
2017 4,350 2,174 2,176 49.97
2018 4,452 2,225 2,227 49.97
2019 4,557 2,277 2,280 49.97

Table 2.19 shows the gap analysis of the company for five years. The data
shows that the company has a demand of 4,152 for the year 2015, which
increases with 30% of 7.83% which is the industry growth rate. The demand and
Supply increases 2.35% every year. There are 49.97 available market shares for
in the industry.

Formula to get the monthly GAP of the company:

Gap
GAP = competitor+1

2,077
GAP = 11 +1

GAP = 173 / 12 (monthly)

GAP = 15

Formula to get the monthly market share of the company:

Gap percentage
GAP = competitor +1

49.97
GAP = 11+1

Page | 30
GAP = 4.16%

Table 2.20

Growth Rate of Competitor

Year Actual Increase/dec Percentage

Demand rease every (%)
Year (-,+)
2011 1,439
2012 1,661 222 13.37
2013 1,500 -161 -10.73
2014 1,994 494 24.77
2015 2,075 81 3.90
31.31

Table 2.20 shows the increase and decrease of demand of the competitor
and also their growth rate.

Forecasted Growth Rate of Competitor

600
500
400
300
200
100
0
2011 2012 2013 2014 2015
-100
-200

Figure 2.2

Line Graph

Page | 31
 Figure 2.2 shows the increase and decrease of the sales/revenue of the hair
and make-up industry starting in year 2011 to year 2015. The proponents used
the curvilinear method for the reason that the graph shows a curvilinear effect as
the decreasing of demand in year 2013 which is -161 and the increase in year
2014 which is 494.

Formula to get the company’s growth rate:

Growth Rate= 31.31

5-1

Growth Rate= 7.83 x 30%

Growth Rate= 2.35%

The Proponents sum up all the percentage in the data and divided into
four (4). The quotient is multiplied by 30%. The Proponents used the 30% Growth
Rate for forecasting. The table falls on the category that there is a need for hair
and makeup service in the industry and would be interpreted as favorable in the
company. The data gathered by the company can be used in determining the
markets response and as well as to anticipate the risk in entering the chosen
industry. The data will also be used to forecast the demand and to provide
possible information that will serve as warning devices or a “go signal” for the
company.

As shown in the line graph that in year 2012 the industry growth rate increase
by 13.37%, and in year 2013 the growth rate decrease by -10.73%, then in year
2014 it increases by 24.77%, and lastly in year 2015 it decrease by 9.90%. The
graph emphasizes that the need for hair and makeup service is fast growing,
while having a decrease in the demand for the service is normal to have in the
business industry.

Page | 32
 C. Competitor Analysis

Competitor Analysis is a research to check the feasibility of the project and

to establish development potential. It is fundamental to carry out a competitor
analysis in the market in order to know and identify the rivals or the competitors
at the planned location. It is also a benefit for the study for the reason that the
analysis covers general gaps in what the rivals offer, and it permits the
researcher to assess the rival's strengths and weaknesses in the marketplace
and implement effective strategies to improve the competitive advantage. The
main objective is therefore to create long-lasting competitive advantages. It is
very important not only to carry out an analysis of current competitors but also to
identify and foresee new developments, including analyzing hair and make-up
stylist capacities and the market changes.

Major Direct and Indirect Competitors

There are numerous competitors in the market; they are classified

between direct and indirect competitors. Direct competitors are the businesses
that promote the similar or substitute service of our own service that the
researchers offer in the same geographic territory. While businesses offering
divergent or substitute product or service in connection to the service that the
researchers offer are viewed as Indirect Competitors.

Direct Competitor for Hair and Make-up Service

Page | 33
 The major competitors of the business are the freelance Hair and Makeup
Artists around the Metro Manila and especially in the Pasig area of Kapasigan
and San Antonio who are on call to provide home/office makeover service.

Table 2.21

Professional Freelance Hair and Makeup Artist’s Price

Home/Office
Service Rates
(Php)

 Bridal Conventional Hair and Makeup 5,000

 Prenup/Pre debut Photo shoot 2,500

Hair and Makeup

 Conventional Debut Hair and Makeup 3,500

 Traditional Hair and Makeup 2,000

Table 2.21 shows the rate of a Professional Freelance Hair and Makeup
Artist. The price of the service varies on the occasion and kind of HMUA service
to provide. The transportation fee will always be carried by the client.

Table 2.22

Salons Hair and Makeup Artist’s Price

Name of Salon Home/Office Service Salon Service

(Php) (Php)

Index 1700+ transportation fee 850

Page | 34
 David’s 2,500+ transportation fee 950

Hello Dolly 1,500+ transportation fee 800

Table 2.22 shows the price list of the company’s direct competitors. Each
of the competitors gives additional transportation fee for home/office service
depends on the customer location.

D. Cost of Service Analysis

Table 2.23

Standard Service Cost per Client

Supplies No. of Unit Cost Cost per

application application
(Php) (Php)

Moisturizer 12 160 13.33

Toner 15 140 9.33

Primer 6 90 1.5

Foundation 25 350 14

Loose Powder 60 375 6.25

Eyebrow Gel 35 300 8.57

Shadow and 25 600 24

Blush Palette

Liquid Eyeliner 10 150 15

Lipstick 10 110 11

Mascara 30 250 8.33

One Box of 10 85 8.5

False Eyelashes

Adhesive Glue 10 99 9.9

Spraynet 30 300 10

Page | 35
 Moose 25 300 12

Setting Spray 20 300 15

Alcohol 5 200 40

Sponge 8 80 10

Total 3,889 216.71

Table 2.23 shows the total service cost per application of supplies to a
client. The number of application is measured on how many times that a
cosmetic can be consumed. The unit cost stands for the price of supplies. The
formula used in getting the cost per application is cost per unit ÷ number of
application, it also shows that each service to a client will cost for Php 216.71.

Table 2.24
Service cost for the Groom
Supplies Cost per
application
of Supply
(Php)
Toner 9.33
Moisturizer 13.33
Primer 1.5
Foundation 14
Loose Powder 6.25
Spraynet 10
Setting Spray 15
TOTAL 69.41

Table 2.24 shows the computation of the service cost for the groom hair
and makeup. There are only few supplies to be use since the groom’s natural
look must only need to be emphasized.

Page | 36
 Table 2.25
Service cost for Second Look Makeover
Supplies Cost per application
of Supply (Php)
Loose Powder 6.25
Shadow and Blush 24
Liquid Eyeliner 15
Lipstick 11
Setting Spray 15
Spraynet 10
TOTAL 81.25

Table 2.25 shows the computation of the service cost for the second look
makeover. The costing of the second look makeover varies only to the number
and cost of cosmetics and supplies need for retouch and second look.

Page | 37
 Service Rates and Packages

Table 2.26
Debut Rates

PACKAGES INCLUSIONS SERVICE PRICE

COST (Php)
(Php)
 Hair and High Definition Makeup for Debutant 216.71 800
A  Free Consultation before the Event
 Free False Eyelashes
Package A Cost 216.71
Mark-up 583.29
 Hair and High Definition Makeup Debutant 216.71 1,300
B  Free Consultation and False Eyelashes
 Hair and Conventional Makeup for the Mother of 216.71
Debutant

Package B Cost 433.42

Mark-Up 866.58
 Hair and High Definition Makeup Debutant 216.71 1,500
C  Free Consultation and False Eyelashes
 Second look makeover in between wardrobe 81.25
Package C Cost 297.96
Mark-up 1,202.4
 Hair and High Definition Makeup Debutant 216.71 2,000
D  Free Consultation and False Eyelashes
 Second look makeover in between wardrobe 81.25
 Hair and Conventional Makeup for the Mother of 216.71
Debutant
Package D Cost 514.67
Mark-up 485.59

Table 2.26 shows the packages and rates for the debut package of the Bonny
Company. The proponents created four different packages for the client to
choose.

Page | 38
 Table 2.27
Wedding Rates
PACKAGES INCLUSIONS SERVICE PRICE
COST (Php) (Php)
A  Hair and High Definition Makeup for Bride 216.71 3,000
 Free Consultation before the Wedding Day
 Free False Eyelashes
 Free simple makeup for the Groom (if same 69.41
hotel)
 Hair and Conventional Makeup for (3) heads 649.23
Package A Cost 935.05
Mark-up 2,064.95
B  Hair and High Definition Makeup for Bride 216.71 4,000
before the Wedding Ceremony
 Free Consultation and False Eyelashes
 Second look makeover for the Reception 81.25
 Free simple makeup for the Groom (if same 69.41
hotel)

 Hair and Conventional Makeup for (5) heads 1,083.35

Package B Cost 1,451.28
Mark-up 2,548.72

Table 2.27 shows that the company will have a big mark up on each
package and the proponents add all the cost per application of supplies (base on
Table 2.23) that is needed in the service to get the service cost for the groom and
the second look makeover.

Page | 39
 Table 2.28
Party Rates
PACKAGES INCLUSIONS SERVICE PRICE
COST PER PER
HEAD HEAD
(Php) (Php)
A  Hair and Conventional Makeup for (5) heads 216.71
 Free False eyelashes 3,000
Party A Cost 1,083.55
Mark-up 1,916.45
B  Hair and Conventional Makeup for (8) heads 216.71
 Free False eyelashes 4,400

Party B Cost 1,733.68

Mark-up 2,266.32
C  Hair and Conventional Makeup for (12) 216.71
heads 6,00
 Free False eyelashes
Party C Cost 2,600.52
Mark-up 3,399.48
D  Hair and Conventional Makeup for (15) 216.71
heads and above 6,750
 Free False eyelashes
Party D Cost 3,250.65
Mark-up 3,499.35

Table 2.28 shows the packages and rates for the party package of the
Bonny Company. This package is also applicable to other occasions such as
general assemblies, reunion, social balls or gatherings and other events that are
composed of at least five (5) individuals to be makeover.

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 E. Service Revenue Forecast

Table 2.29

Summary of Packages

Packages Demand Percentage Percentage Quantity/

in the in the GAP Heads
demand(%) (%)
Debut
 A 198 4.77 0.72 1
 B 141 3.40 0.41 0
 C 30 .72 0.11 0
 D 40 .96 0.14 0
Wedding

 A 18 .43 .06 0
 B 36 .94 .14 0
Party

 A 485 11.68 1.75 2

 B 720 17.34 2.60 3
 C 636 15.31 2.30 2
 D 330 7.95 1.19 1
Pageant 180 4.34 .66 1
Holiday 814 19.61 2.94 3
Photo shoot 221 5.32 .80 1
General Assembly 35 .84 .13 0
Special Events 268 6.45 .97 1
Total 4,152 100 15 15

Table 2.29 shows the percentage of the each package in the total
demand. The data shows that the highest percentage in the demand is the Party
Packages. The total of 15 quantities/head is the monthly gap of the Company.

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 Table 2.30

Summary of Forecasted Revenue per Packages

Quantity/ Package Service Cost Service Revenue

Heads Price (Php) per package
(Php)
Debut Packages
 A 1 800 216.71 800
 B 0 0 0 0
 C 0 0 0 0
 D 0 0 0 0
Wedding Packages
 A 0 0 0 0
 B 0 0 0 0
Party Packages
 A 2 3,000 1,083.55 6,000
 B 3 4,400 1,733.68 13,200
 C 2 6,000 2,600.52 12,000
 D 1 6,750 3,499.35 6,750
Pageant 1 600 216.71 383.29
Holiday 3 600 216.71 1,800
Photo shoot 1 600 216.71 600
General Assembly 0 600 216.71 0
Special Events 1 600 216.71 383.29
Total 15 10,217.36 41,916

Table 2.30 shows the monthly projected revenue from all the packages is
Php 41,916 while the annual projected sale of the business is Php 502,992

Formula:

Service Revenue per Package = Price × Quantity

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 F. Marketing Mix

Marketing Strategy

Marketing a service can be more challenging than marketing a product. The

customer’s experience has a great impact on the perceived value of the service.
It can be a medium to promote the service to a potential customer to be
convinced and avail the service that the Bonny Company provides.

 Partner with Allies

Marketing partnerships have numerous benefits to push a marketing

campaign. For starters like Bonny Company collaborating with other
companies and freelancers related to the business is an advantage to expose
the company to a new audience that the other party can bring. These
businesses in line are mostly event organizers, catering services, and
companies that conducts and organizes special or occasional events that
would need beauticians and are also credible of referring Bonny to their very
own clients.

 Always be in reach

The company will distribute calling cards to the industry influencers they
collaborated with, to the companies they tied-up, in different areas that would
need the service that the Bonny offers, to the corporate companies who
organize gatherings and to the white collar workers who attends special
events, and by this the Bonny Company will be just one call away.

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 Help Customers Solve a Problem

Some of the ways that company can help a customer since we are into
branded, high end, pigmented cosmetics and high quality equipment, the
proponents can share tips on how to choose the best items to use alone and
also to refer some of the company’s trusted boutiques. By this, the trust and
friendly relationship will build up between the client and Bonny Company, so
whenever the customer will need a hair and make-up artist, they will think of
the Bonny Company on the top of list. Aside from that, giving tips and helping
them solve a problem as long as it can be answered by the proponent’s
knowledge about hairstyling and makeovers, the customer will keep in touch
with the Company.

 Collaborate With Influencers

In this generation, famous and media sensation arises from time to time.
The company will search for influential personalities that are not far from them
who can contribute in promoting the business. Collaboration between the
company and an influencer wherein the proponents can let the influencer
experience the quality of the service in order for the influencer to share the
experience to her followers and peers for them to be aware that the “Bonny”
Hair and Makeup Artistry exists in the market, and the service can be availed
conveniently and the company will be able to acquire new clients.

 Networking

Networking with other makeup artists, photographers, models and other

artists, opens the door for the Bonny Company to receive their overflow
customers, and vice versa. When there are situations that the Company is
fully booked on a day that an inquiring customer need, proponents will refer
co-makeup Artist which are freelance rather than declining them. So
therefore, building relationships in this industry will be a key.

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  Bridal Work

Teaming up with local bridal businesses can be highly profitable for the
Company. The Bonny Artistry can simply ask local bridal shops, accessories
shops, bakeries and wedding planners to pass out our business’ information if
they have a bride that is yet to hire a hair and make-up artist. In exchange,
proponents can hand out the shop’s information to Bonny’s clients as well to
reach a mutually beneficial partnership.

 Don't Forget About Existing Customers

The proponents know that it is important to obtain new customers in order

for the business to grow. However, Company must not forget about the
customers that the Bonny already have, so to make the bond stronger the
Bonny Company will treat them like a VIP by giving the loyal customers
benefits so in return the customers will not think about switching to other
company.

4P’S

Product/Service

The Bonny Hair and Makeup Artistry offer high quality makeup and
basic hairstyling for aspiring Women using only high end cosmetics. Makeup
Artistry is the art of applying makeup for theatrical, fashion, events, parties and
other occasions in line with the industry of modeling and fashion.

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Page | 46
Pricing Strategy

The company
offers different service
packages depending on the occasion and type of makeup service that will be
provided. The proponents based the pricing on competitor’s price in the market.
The Company’s pricing strategy is penetration which is a competitive pricing that
settles for a lower price compare to direct competitors. Bonny Artistry uses this
kind of pricing strategy to introduce a competitive price but quality service in the
market.

Promotional Strategy

Promotional schedule of Bonny Hair and Makeup Artistry will be done

every day of the year and especially every after makeup gig to make the target
be aware that the company is existing in the market. The company will be
engage in public through the social media websites such as Facebook and
Instagram.

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 Figure 2.3

Selling a service is unlike selling a product which is tangible. However by

distributing the calling cards to potential clients, the company can be contact and
in reach all the time.

Figure 2.4

Figure 2.4 shows the Facebook fan page of Bonny Company will stand as
the online portfolio of the Artists. Every successful makeup gig, proponents will
be posted or uploaded with the details of the recent activity of the company, also
with the before and after makeover of the client. By this, the audience will be able
to browse and get clues about the quality of service that the Company provides.
The social media also serves as one of the communication channel between the
proponents and potential customer who will inquire, for the reason that almost
everyone is into technology and for that, it will be easier and faster transaction.

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 Figure 2.5

A tarpaulin will be posted in front of the Company’s office located at

Blumentrit Kapasigan, Pasig City. The function of this tarpaulin is to capture the
eyes of the individuals in the neighborhood and the business establishments by
the images and contents of the tarpaulin.

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Distribution Channel

Client

Figure 2.6
Direct Distribution Channel

Figure 2.5 shows the direct distribution channel of the Bonny Hair and
Makeup Artistry. The service will be provided by the Bonny Company direct to
the Client or customer.

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 G. SWOT Analysis

Table 2.31

SWOT Analysis

Strengths Weaknesses

 High End and Pigmented  Limited manpower

supplies of Cosmetics
 Company image is not
 Stable Price on Direct Supplies established
and Equipment

 Service innovation

Opportunities Threats

 Increase of sales volume  Competitions

 Expansion of the business  Economic and social conditions

 Popularity of beautifying  News on media

Strengths

 High End and Pigmented supplies of Cosmetics

Bonny Hair and Makeup Artistry will expose the use of only high end
supplies especially in cosmetics. The use of these high quality materials is

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 one of the strongest edges of the company from the direct competitors
existing in the target area.

 Stable Price on Direct Supplies and Equipment

The supplies and equipment that are being utilized to perform the services
have stable value in the market, for that the proponents will not expect
fluctuation of materials in the market.

 Service innovation

The proponents will never stop learning and discovering new ideas in
order to provide best quality services. Today’s generation many fashion styles
and innovation of hair and makeup styling arises in social media by those the
proponents could easily adapt it, develop and create much better hair and
makeup styling for the service. Also by using the customer’s preferred style
and new fashion trends, the proponents will come up with the best and unique
services that could compete with the competitors of the business.

Weaknesses

 Limited manpower

Due to limited employees in the business, the proponents may not

accommodate all the clients if they are already booked on the schedule of the
service that is needed.

 Company image is not established

The business is not yet known to the market, only few target market knew
that the company exist.

Opportunities

 Increase of sales volume

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 For when the Bonny Hair and Makeup Artistry is introduce to the market
the number of clients will increase as the sales of the service increases.

 Expansion of the business

As the business begin and so on, and the short and long range objectives
are achieve there is a possibility that in the future the business will expand.

 Popularity of beautifying

Today’s generation, women are mostly obsessed about being beautiful on

their physical appearance. Many beautifying products are being sold and
develop for these women to use. While on social medias like Facebook and
Instagram many famous individuals up to a simple student loves to upload a
selfie or a video of them using beautifying products and for that it is a great
opportunity for the Bonny Company to see that the service offered will be
adorned and enjoyed by the target market.

Threats

 Competitions

The business has numerous competitors in the market, which could affect
directly or indirectly to the business. Therefor the business must be aware
and have much greater market strategies in order to compete and overcome
the competitors.

 Economic and social conditions

Being a beginner in the field, there is a tendency that the operation of the
business and its market stability and profitability could be affected by the
social and economic conditions. Therefor the business must be aware to the

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situation and changes of the economy and society to survive and make the
business successful.

 News on media

Different topics and news are occurring on televisions and social media
nowadays. News about cosmetics and equipment can highly affect the
business. For instances like fake and smuggled cosmetics are being track
down and caught by the government is one, also news about how these
cosmetics could be harmful to the health could affect the business as well for
the reason that the customers will be affected by the news and might be
scared to try the services in related to the news or reports in the media.

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