LAKEVILLE

Marketing Plan

September 18, 2011

EXECUTIVE SUMMARY

Subsidiary of Globe Education Network

Founded in 2003 after acquiring Minnesota Cosmetology Education Center in South St. Paul after 53 years of operation

Accredited by NACCAS – National Accrediting Commission of Career Arts and Sciences, gran through 2015

Mission Statement: Educate, motivate, and prepare our students for a career in cosmetology arts and sciences.

SITUATIONAL ANALYSIS & MARKETING STRATEGY

Fully operational educational facility with a working salon

14,000 square feet

25 employees including Faculty and Administrative Staff

2 sister locations in Woodbury (flagship location) and Plymouth (newest location)

Located near Minnesota School of Business in Lakeville, MN

Easily accessed from I-35

Heavy promotion through high school visits, television and radio advertising, websites, and area business visits

Reputation of the school

Family Owned

GEN resources

Well educated and qualified instructors

High quality facilities

Scholarships and Financial Aid available

Successful locations in Woodbury & Plymouth

High Licensure & Placement

Cosmetology “recession-proof” industry

No current radio or billboard advertising

Retention rate should be higher

Cosmetology reputation as a whole

Not located on a bus line

SWOT ANALYSIS

Strengths Weaknesses

First location of MSC in the south metro

Able to reach cities and towns further south

Large, new facility with up-to-date technology and equipment

Access to more local businesses for student referrals and clientele

Accessible to I-35 allows ease of transportation

Competition from the Minnesota School of Beauty in Lakeville, MNCompetition from Regency Beauty School in Burnsville, MNCompetition from Empire Beauty School in Bloomington, MNConfusion among potential students and clients about the difference between MSC and Minnesota School of BeautyEconomy still not turning around Job opportunities low for first time cosmetologists

SWOT ANALYSIS

Opportunities Threats

MARKETING OBJECTIVES

Timing – Open MSC-Lakeville within 6 months to 1 year after opening Plymouth location

MSC reputation for providing quality services done by students at at reduced rate

Return clients that continue to support our students and refer other clients and students to our business

MARKETING SEGMENTATION

Geographically limited to approximately a 50 mile radius of Lakeville, MN

Draw leads from nearby Farmington, Owatonna, Faribault, Northfield, Rosemount, Apple Valley, Burnsville, Bloomington, Prior Lake, Shakopee, Savage, and even possibly Austin and Albert Lea

Lakeville population 56,071 with a higher median income and 2 high schools with a high school enrollment of 3,600

TARGET MARKET

MSC-Lakeville would target the approximately 900 Lakeville seniors as well as up to over 6,000 seniors from area schools

Research from the leads for the past year for MSC-Woodbury include 375 leads from this area without much promotion

MARKETING MIX STRATEGY: PRODUCT

State of Minnesota requires 1550 hours of cosmetology education

MSC requires 1650 with 100 free hours built in for vacations or emergencies

Specialty theory classes, 420 hours of regular theory class, 245 hours in basics training

MSC offers clinic floor services to the public at a discounted rate

80 stations, 8 pedicure bowls, 8 manicure tables, 4 facial beds

MARKETING MIX STRATEGY:

PLACE/DISTRIBUTION

Direct to the consumer provider – MSC provides education to the students directly and students perform services on the public directly

Any student can apply, but must pass an assessment and pay an enrollment fee

MSC offers discounted rate high quality services

Students given product knowledge and taught how to sell retail products

MARKETING MIX STRATEGY: PROMOTION

MSC operates under the Globe Education Network umbrella

Able to utilize GEN call centers and corporate marketing team

MSC offers full-time day, ¾ time day, and part-time evening programs

Class starts every 6 weeks

MSC has established bonds with area salons and business owners providing opportunities for our students

Television, print ads, direct mail and email blasts, high school visits, MSC website, grocery store tape advertising

Utilize radio advertising and billboard advertising

MARKETING MIX STRATEGY: PROMOTION, CONT’D .

Grand opening celebration with local celebrities, Mayor, City Council and area businesses

Retail sales promotions

Facebook, Twitter, and MSC Website “page” dedicated to individual campuses

Discount cards, reward points promotions

MARKETING MIX STRATEGY: PRICE

Price predetermined by GEN owners, Regional Director & Campus Director

$18,000 tuition includes kit & books, price is researched regularly to ensure best price for highest quality in the area

Price for products and services researched regularly to ensure our clients are getting the best quality for the best prices

Seasons often determine sales for services

MARKET SHARE

Direct competitor, Minnesota School of Beauty located in Lakeville has about 60 students, charges $14,000 for tuition, with classes starting 11 weeks apart

Competitor, Regency Beauty School in Burnsville, MN enrolls approximately 100-150 students per year, charges $20,000 for tuition, with classes starting each month

Competitor, Empire Beauty in Bloomington has approximately 100 students and charges $17,000 in tuition

MSC will be largest cosmetology school in the south metro

SALES FORECAST

Population of approximately 200 students in the day and evening programs

Class starts every 6 weeks

Retention rate goal of 70% or better

First class start in August 2012 of approximately 62 students providing an initial enrollment income of $1.16 million dollars

GROWTH POTENTIAL

Maximum day capacity 120-140 students and evening capacity of 60-80 students

Faculty to student ratio of 1:14; average class size of 14-20

With the success of Woodbury, Plymouth, and Lakeville; additional locations could be in River Falls, Brooklyn Center, Blaine, St. Cloud, Duluth, Fargo/Moorhead, Green Bay, Milwaukee, and Sioux Falls.

IMPLEMENTATION, EVALUATION, AND CONTROL

MSC is ripe for expansion

Research must be done to find right location

Hiring process begins immediately after initial approval

Admissions process starts immediately after hiring

Build out to begin with 3 months of approval, finishing within 3-4 months

After build out complete and admissions has enrolled students, the school can open for business

Campus Director, Regional Director, Corporate, and management team of MSC-Lakeville will monitor the retention, tracking, and attrition reports, meeting often to discuss changes, policies, business revenue, and student concerns

SUMMARY

Based on research done on potential students and leads, Lakeville should be the next MSC location

MSC has a 60 year history behind it

MSC will continue to grow its brand and continue to expand