Marketing Plan (stp)

Market Analysis (STP)

Segmentation

There are different segments of the indoor tanning industry, the fastest growing market by far are the lotion and skincare market. Over the past seven years, the lotion market has grown by approximately 300 percent and there is no end in sight. Once a playing field for only a select few, the U.S. indoor tanning market is deluged with an entire roster of lotion companies pushing the envelope of technology to produce products that will help provide the perfect tan.

Lotion sales can and should account for a large portion of the salon's revenue. More than 30 percent of salon owners average between $5,000-$10,000 per month, 12 percent between $10,001-$20,000 and 12 percent average more than $20,000 per month. Of this revenue, 64 percent of average salon owners charge between $3-$5 per session with another 23 percent charging between $5.01-$7 and 10 percent charging more than $7. (Salomone, 2009)

As the indoor tanning industry has surged forward, lamp sales have followed. Lamp manufacturers sold an estimated 7.2 million lamps in 1999. With 7.2 million lamps sold at an average of $10, lamp manufacturers contributed $72 million to the industry's total worth for 1999, double what the indoor tanning lamp manufacturers sold only five years ago. Overall, lamp technology has not really changed that much--especially when compared to the advancements in beds/booths. Many lamp manufacturers are working with licensees on the manufacturing side to integrate lamps, uniquely, as part of an overall system. (Salomone, 2009)

Market Targeting

Tanning salons all target customers who want to tan. Total Tan targets customers that not only tan but want to enrich their tans with the different lotion selections they carry in their locations to give their customers the experience of not only the tan but also