Business Studies – Marketing
Salon
Salon de Féerie
Group members:
Claudio Chan(1)
Nelson Chan(3)
Chan Tsz Long(4)
Kitchen Lam(14)
Patrick Ngai(24)
Reginald Wong(29)
Salon de Féerie
Content
Introduction
Situation Analysis
- SWOT
Selection of Target market
- Market Segmentation, targeting and positioning (STP)
Marketing Mix Strategy
- 4P’s + 3P’s
Relationship Marketing
Recommendation
Contingency Plan
Salon de Féerie
Introduction
• Importance of salon
- 98% of HK people care about their hair
• Our salon’s objective
- provide professional hair-related services with a relaxing
environment towards ladies in a reasonable price.
• Salon de Féerie
- “salon in the wonderland”
- an oasis that allows customers to take a refreshing break from the
rapid pace of city living.
Salon de Féerie
Situation Analysis
• Salon – saturated but large market
• SWOT analysis
- Internal situation
Strengths (S)
- Specialization of target market
Weaknesses (W)
- Large set-up costs
Salon de Féerie
Situation Analysis
• SWOT analysis
- External situation
Opportunities (O)
- Special features with reasonable pricing
Threats (T)
- Competitors
Salon de Féerie
Market Segmentation
• People with different ages or different
occupations have different demand for haircutting services.
• Demographic segmentation
- Age
- Occupation
Age
Occupation Details
below 3
(Infants)
N/A
•Slow growth of
hair
•Risk of haircutting is high
•birth rate in Hong
Kong keeps
declining
3 – 13
(Children)
•kindergarten
students
•primary
school
students
•do not have so
much knowledge
on hair-styling
•strict rules in
kindergarten and
primary school
Salon de Féerie
Market
Potential
Weak
Weak
Age
Occupation Details
13 – 18
secondary
(Teenagers) school
students
18 – 25
(Young
adults )
university
students
•begin to follow the
current trend
•strict rules in
secondary schools
•Small
consumption
power
•normally no
school rules
restricting their hair
style
•Have income
sources because
of engagement in
part-time job
Salon de Féerie
Market
Potential
Medium
Strong
Age
Occupation Details
18 – 25
(Young
adults )
sales
•income sources
•good appearance
is important for
sales
25 – 40
(Mature
adults )
•Primary
production
(farmers)
•Secondary
production
(construction
workers)
• require more
physical efforts
•normally do not
need to
communicate with
customers
• income sources
Salon de Féerie
Market
Potential
Strong
Medium
Age
Occupation Details
25 – 40
(Mature
adults )
Tertiary
production
(sales and
agents)
•required to
communicate with
customers
frequently
•Income sources
Salon de Féerie
Market
Potential
Very Strong
Age
Occupation Details
40 - 60
N/A
•problems of
having less hair
•willing to pay
more on hair
treatment
N/A
•normally
Weak
do not have
so much
hair
(Middle-
aged
adults )
Above 60
(Old-aged
adults )
Salon de Féerie
Market
Potential
Quite
Strong
Targeting
•
Target: Middle to high-class
females
• Reasons:
1. more females than males in
Hong Kong
2. Stronger market potential
3. Save cost
4. provide a place for females
to meet and communicate
without being disturbed by
other male customers.
Salon de Féerie
Targeting
1.
more females than males in Hong Kong
Source: Hong Kong Census and Statistics Department
Salon de Féerie
2.
Stronger market potential
Salon de Féerie
Targeting
3. Save cost
4. provide a place for females to relax and
communicate without being disturbed by other
male customers
Salon de Féerie
Positioning
• high-class with reasonable price
• lack of information available in the hair-cutting
market
• To middle to high-class female, appearance and
identity are very important
Salon de Féerie
Marketing Mix - Products
• Core Products - Hairstyling
Hair cutting
- Japanese styles, styles of celebrities
- selective by customers, catalogs available
Salon de Féerie
Marketing Mix - Products
• Core Products - Hairstyling
Hair cutting - Digital/Virtual hair styling
- Preview several hairstyles and colouring
Salon de Féerie
Marketing Mix - Products
• Core Products - Hairstyling
Hair rinsing
- with hair massage and spa
Hair blow-dry
Hair colouring
Hair highlighting(挑染)
Hair treatment(焗油)
- Potent treatment or 3.1 Japan Treatment(日本3.1蛋白焗油)
Salon de Féerie
Marketing Mix - Products
• Core Products - Hairstyling
Hair permanent (電髮)
– - Straightening (直髮)
–
Ionic Straightening Perm (負離子直髮)
–
Resurrectal Straightening Perm (游離子直髮)
–
Ceramic Straightening perm (陶瓷直髮)
–
Digital Straightening Perm(數碼直髮)
– - Curling (曲髮)
–
Ionic Curling Perm (負離子曲髮)
–
Resurrectal Curling Perm (游離子曲髮)
–
Ceramic Curling perm (陶瓷曲髮)
–
Digital Curling Perm(數碼曲髮)
Salon de Féerie
Marketing Mix - Products
• Core Products - Hairstyling
Hair setting
- wedding party / ball
• Features
-One-on-one basis
-European brands of hair products, e.g. shampoo of
KADUS
-Various choices with advanced technology
Salon de Féerie
Marketing Mix - Products
• Augmented Products
Beverages and snacks
Drinks
Personal TV
Free-wifi and computer
Salon de Féerie
Marketing Mix - Products
• Augmented Products
Selling of hair-related products
- wigs, motions, shampoos, etc.
Salon de Féerie
Marketing Mix - Price
• Pricing objectives
 Image - oriented
-serving OLs in Central
 Cost – oriented
-high set up cost
Salon de Féerie
Marketing Mix - Price
• Competitors’ strategy
e.g. Mini For Hair (middle-class salon in Causeway Bay)
•
•
•
•
•
•
•
•
(Shampoo&Blow Dry) $68 (Shampoo&Cutting&Blow Dry) $98
(Requested Stylist) +$20
(Treatment) $100 up (3.1 Japan Hair Treatment) $580 up
The followings are packages with basic Cleanse, cutting and blow-dry,
basic treatment.
(Colouring) $300 up (Colour+HightLight) $500 up
(Permanent Wave) $300 up
(Ceramic Curling perm) $300 up
(Ionic Straightening Perm) $300 up
Salon de Féerie
Marketing Mix - Price
• Competitors’ strategy
e.g. IL COLPO IFC (a top-class salon in Central)
•
•
•
•
•
•
»
»
»
»
»
»
Cut & Finishing
$480 - $1250
Shampoo & Styling $250 - $550
Coloring
$700 - $2280
Perming
$700 - $2680
Straightening $1680 - $2580
Hair Treatment $500 - $1280
Salon de Féerie
Marketing Mix - Price
• Price list
Standard
prices
VIP (15%
off)^
Students
(30% off)^
Cleanse,
cutting and
blow-dry
$268
$228
$188
Colouring
(short) (*)
$288
$244
$202
Colouring
(long) (*)
$388
$330
$272
Salon de Féerie
Marketing Mix - Price
• Price list
Standard
prices
VIP (15%
off)^
Students
(30% off)^
Highlight (*) $288
$244
$202
Colouring & $488
Highlight
(short) (*)
$414
$342
Colouring & $588
Highlight
(long) (*)
$500
$412
Salon de Féerie
Marketing Mix - Price
• Price list
Standard
prices
VIP
Students
(15% off)^ (30% off)^
$588
$500
$412
Resurrectal
Straightening /
Curling Perm (*)
$588
$500
$412
Ceramic
Straightening /
Curling perm (*)
$688
$584
$482
Ionic
Straightening /
Curling Perm (*)
Salon de Féerie
Marketing Mix - Price
• Price list
Standard
prices
VIP
Students
(15% off)^ (30% off)^
$688
$584
$482
Potent
Treatment
$188
$160
$132
3.1 Japan
Treatment
$688
$584
$482
Digital
Straightening /
Curling Perm (*)
Salon de Féerie
Marketing Mix - Price
• Price list
Standard VIP
Students
prices
(15% off)^ (30%
off)^
FULL PACKAGE $1688
(basic shampoo,
cutting, blow-dry,
colouring &
highlighting &
perm & 3.1
Japan Treatment)
$1434
$1182
Hair setting
$244
$202
$288
Salon de Féerie
Marketing Mix - Price
• Price list
-(*) plus basic shampoo, cutting and blow-dry (extra
$150)
- ^ VIP discounts and students’ discounts CANNOT be
enjoyed at the same time
- showing accurate value (Never us “up”, price range)
- in both English and Chinese
Salon de Féerie
Marketing Mix - Price
• Skimming Pricing Strategy
- Not many close competitors
• Price discrimination
- Students and VIP
• Quantity Discount
- old customers bring along new customers
• Packaging Discount
• Psychological Pricing
• Pricing of augmented products
Salon de Féerie
Marketing Mix - Place
• Exclusive distribution
 Just like most of the existing salons in HK
 Enhances our image
 Central OR Tsim Sha Tsui
 Close to MTR station
Salon de Féerie
Marketing Mix - Place
• Central
Commercial centre
High-class image
Near offices
Existing competitors are not close substitutes
- Top-class salons, e.g. the IL COLPO Group, Michell Rene
Hair Design & Beauty
- Salons with branches, e.g. Salon Espirit
Salon de Féerie
Marketing Mix - Place
• Tsim Sha Tsui (Rejected)
Commercial centre
Near offices
Not as high-class as Central
More existing salons than Central
- 58 V.S. 29 in a professional directory
Salon de Féerie
Marketing Mix - Promotion
• Before promotion
- Target customers:
120000 working labour in
Central are OLs
- Competitors’ promotion
strategy
Salon de Féerie
Marketing Mix - Promotion
• Promotion Process
 Advertising
- high-class magazines
e.g. Jessica, HIM
- free newspaper
- soft sell
Salon de Féerie
Marketing Mix - Promotion
• Promotion Process
 Advertising
- long-term image
- full colour
Salon de Féerie
Marketing Mix - Promotion
• Promotion Process
 Sales Promotion
- cash discounts (short-term)
- coupons (short and long-term)
- stamps (when mature)
Salon de Féerie
Marketing Mix - Promotion
• Promotion Process
 Publicity
- fashion shows
 Other means
- promotion boards
- posters
- price table
Salon de Féerie
Marketing Mix - Promotion
• After promotion
- follow-up
- evaluate
- reinforce new ideas from
time to time
Salon de Féerie
Additional Components of
Services Marketing
• People
- one-on-one basis
- duty shift
 Diploma
- from overseas academies
- well-rounded hairstyling skills
Salon de Féerie
Additional Components of
Services Marketing
• People
 Experiences
- at least 5 years
- bring along old customers
 Ages
-25-45
 Politeness and Communication Skills
Salon de Féerie
Additional Components of
Services Marketing
• Process
- MIS (Management Information System)
Customer Database
Inventory Control
Booking system (will be further explained)
Salon de Féerie
Additional Components of
Services Marketing
• Physical Evidence
- Interior design
Soft and warm lighting
Upper floors with large windows
spaces between each chair
High class chairs
Well designed washrooms
Bar table
Cloak room
Personal TV
Plants
Salon de Féerie
Additional Components of
Services Marketing
• Physical Evidence
- Music
 Relaxing background music
 A comfortable environment
Salon de Féerie
Additional Components of
Services Marketing
• Physical Evidence
Salon de Féerie
Relationship Marketing
• Booking system
- online and phone booking
• VIP scheme
- discounts
• Website
-Q&A
• Discounts
Salon de Féerie
Recommendation
• Date of operation
- February to March
- Officially opened in April
• Appointments and walk-ins
- accept both in first couples of seasons
- turn to accept only appointments
Salon de Féerie
Recommendation
Salon de Féerie
Contingency Plan
• Possible difficulties and risks :
- Insufficient working capital at the beginning
• Possible measures:
- Drop our pricing in order to boost sales
- Liquidate some of the equipments
- Stop providing some of the augmented services
- Sell the business to others
Salon de Féerie
la fin
(The End)
Salon de Féerie