Online Business
Marketing Opportunity:
Creating a website is an inexpensive and valuable tool to drive traffic to the salon by achieving the marketing objectives listed below. Developing an online presence is vital to survive as an emerging salon in a competitive market; providing information, location, contact details and support online is mutually beneficial- and in the long term allows for a strong customer base and rewarding online network. The website will promote our 100% organic hair treatments and enviro-friendly focus, include a price list and list of additional services- the ability to sign up to our loyalty program online will also aid in future improvements to the salon by monitoring the customer database and maintaining strong online customer relationships.
Marketing Objectives
Introduce reusable hair foils and start a loyalty scheme gradually integrating social media and regular posting to maintain customer base and reach a wider audience by sponsored posts on instagram, link in bio to the website and a swipe up, with a long term goal of incorporating more technology i.e online booking to increase workplace efficiency.
Experience a new wave of customers and convert them to long term clients by showcasing our salon, location, and determine the needs and wants and satisfy the demands of our target market while preserving and enhancing consumers and society’s long term well being.
Decrease market expenses as a percentage of sales in the long term, web based advertising is cost effective and gains access to an online community in which our salon can interact with the public.
Financial Objectives
Generate a strong clientele of repeat customers and increase growth
Increase profit margin per service by adopting a prestige pricing strategy and maintain target market whilst attracting a new segment of potential customers.
Integrate technology into marketing strategy and reduce variable operating costs and footprint through the digitisation of Superior Hair Salon’s marketing strategy (Superior Hair Website and social media sponsorships, replacing advertisements by 10.06.19)
2. The Market
What do I know about the market?
Marketing and other stimuli affect the buying organisation and produce certain buyer responses. To design good marketing strategies marketers must understand what happens within the organisation to turn stimuli into purchase responses.
Market research can assist you to monitor market trends and keep an eye on what the competition is doing. Market research process refers to an undertaking of the processes or steps to gain knowledge about an identified target market with a sole aim to promote a product or service.
The market research process has four 4 steps
Defining the problem
Developing the research plan
Collect information
The final report
By conducting market research through both primary sources of information; questionnaires, surveys, face to face interviews, customer feedback… and secondary sources; trade and industry publications, social media websites, ABS, on customer demographics, analysing competitors and their strategy/online presence, and researching demand patterns for salon services
3. Target Market Segments
In a marketing plan, market segmentation refers to the process of developing a brand image or identity within the minds of the consumer. Management must decide which points of differentiation to promote to consumers- in this case the biodegradable foils, environment friendly focus, and the premium service offered by Superior Hair.
“Kotler indicates that positioning contains communication actions regarding the development of images of the brands that companies offer.”
Market segmentation within marketing strategy refers to the development of a brand image or identity within the minds of the consumer. Product positioning relies on a variety of elements that can be strategically analysed and utilised through understanding the target market and competitors in the same market. Differentiating Superior Hair means understanding consumer interest; by conducting a SWOT analysis, marketing research, and contrasting this with customer feedback, data analysis, and external influences analysis.
Superior Hair operates within a consumer market. The salon’s target market will consist of all millennials and young professionals living in Melbourne CBD. Our market consists of targeting the different age demographics of hair dressers. Our main focus is to gain new clients and retain them as loyal customers. The long term goal for Superior Hair Salon is to acquire a new clientele through the development of our new website that will both promote and inform prospects about the company and brand views.
The SWOT analysis for Superior Hair
Strengths;
Superior Hair Salon is located in the convenient Melbourne Central Mall, surrounded by high-end shops and transport centres. Superior Hair uses cutting edge equipment and instruments and organic products that are both good for the clients hair, and the environment. Superior Hair has a team of enthusiastic, trained professional stylists which are strengths as are creature comforts such as complementary beverages; i.e organic juices or teas.
Weaknesses;
The aforementioned benefits regarding the location of the salon can conversely be a weakness, as there are a lot of hair salons in the area. Competitive analysis of the hair dressing market has shown that competitors (other hair salons in central Melbourne and North Melbourne) have websites and developed digital marketing strategies including instagram i.e Cream Melbourne with their instagram pages promoting their stylists work and colour treatments and linking to their website in the bio.
Devising a plan for a new website and social media strategy with focus on promoting our socially conscious brand views and treatments as well as expanding the service selection we offer to include two extra products; (see page 16) will assist in differentiating ‘Superior Hair’ from competitors after conducting marketing research.
Opportunities;
Get travel sizes or gift sets of the respected product line that you use and sell them to clients for at-home use. Offer a program to reduce waste
If you have stylists that are especially great with kids, consider adding a special children’s menu and pricing.
That way, dad and son can conveniently get shorn at the same time, and you capture part of that growing family-economy salon segment.
Threats;
There are other hair salons that can offer hair cuts and styling at a much cheaper cost that may operate in the same market, however, a threat to Superior Hair can be a turn for the worst in the macro-environment- dour economy discourages previously brand-loyal clients from coming in, instead stretching out their visits.
Acknowledging these threats, and evaluating your marketing budget will help build a plan to increase the visibility and reach online of the company. Organic products have been vulnerable to trends in the last few years so alternatives are the introduction of paper hair foils which are a relatively new concept, and a selfie station which could generate revenue in their place if needed. Incentivise clients to return with the introduction of some new services to set Superior Hair apart from cheaper competitors or threats in the macro envionrment.