BSBCRT501 Assessment (1)

Assessment 1

Part A: Completed Report on their Research Process

Organisation: Hair Salon – Hair Sway

Research Findings

The overall marketing performance of the company was good but there are many issues that were identified and many changes that need to be made. Overall, the customers were happy with the service however, there are many suggestions which can help to improve the performance and customer’s satisfaction.

There can be many reasons for the performance gaps. The following could cause the issues that the company is facing:

As a new entrant to the market, Hair Sway lacks brand equity that many of its competitors have earned over years of service. 

The struggle to appear continually on the edge in terms of fashion and style.

Large costs associated with a start-up company.

Sales Trends

The Hair Salon industry has managed to untangle its early post recessionary knots. Rising consumer sentiment and per capita disposable income have boosted industry growth over the five years to 2017. This has also led to increased demand for ancillary services to standard haircuts, such as hair modification treatments (e.g. straightening procedures and perms), skin-care services and massages. In the coming years, the industry is forecast to exhibit continued growth. Per capita disposable income and consumer confidence will keep rising as the unemployment rate continues to decline, providing consumers with more discretionary income for luxury services at hair salons.

IBISWorld identifies 250 Key Success Factors for a business. The most important for the Hair Salons Industry are

Having a loyal customer base

Employees must have a license

Accessibility to consumers

IBISWorld analysts also discuss how external factors such as Per capita disposable income and National unemployment rate in the Hair Salons industry impact industry performance.

The Hair Salons industry is in the mature phase of its life cycle. Industry value added, which measures the industry’s contribution to the overall economy, is projected to grow at an annualized 1.9% in the 10 years to 2022. Over the same period, GDP is forecast to increase at an average annual rate of 2.1%.

Finance required

This will require salaries, expenses, advertising, office lease, equipment, computer systems and other requirements. We will require financial aid from investors.

SWOT

Research methods

Surveys: Surveys are good to getting market data from the customers

Questionnaires: Questionnaires are good for feedback and monitoring performance

Interviews: Interviews give the organisations a detailed overview of the performance

Focus groups: Focus groups will help to discuss different issues and identify key opportunities

Telephones surveys: Telephone surveys are good to getting market data from the customers

Feedback: Feedback from customers is very important for identifying opportunities for improvement.

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is very important for identifying opportunities for improvement.

Organisational Needs

Increase marketing volume and change advertising strategies

Increasing the marketing volume will improve the effectiveness of the strategies and changing the strategies to meet the customer needs such as marketing on facebook and Thai websites.

Develop a new products and services to attract new customers

New products and services will attract new customers and will also attract customers that already tried the first products and services. A new products and services usually has improved quality and trends.

Distribute e-coupons to increase sales and marketing.

E-coupons such as from groupon will attract a lot of new customers and is a great way for the customers to try the new products and services at a discount price.

Influencing Factors

Hair Sway’s marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service.

Pricing: Hair Sway’s pricing scheme will be based on a competitive pricing model with other similar service providers.

Distribution: All of Hair Sway’s services and products will be dispensed from its centrally located store.

Advertising and Promotion: Locating the store in a high traffic mall will significantly increase visibility.  A targeted advertising campaign will also communicate Hair Sway’s desired messages.

Customer Service: All of Hair Sway’s employees have been trained in exceptional customer service.  All employees have discretion to remedy any problems encountered on their own without having to first receive permission from a supervisor.

Commercialisation Opportunities

Promotion

The company has identified the best ways to advertise for this type of industry. The first way would be to advertise using posters and flyers and distributing them into people’s mailboxes. This is effective and will be the areas attention of the service. The other ways are through radio and newspaper. These are more expensive but most high income business workers read the newspaper regularly. After the company has gotten a large enough customer base, the company will start advertising through websites and emails.

Sales Strategy

The beauty shop will also have a variety of different beauty products that have marked prices on them. Customers are free to look at the products, and we will have one employee that is in the shop for assisting customers to find the products that they are looking for.

Similar Concepts

Target Audience

The target audience is all people that are interested in the hair Salon services. This could include all types of customers from:

Low to high Income Audience from middle class, students, professional and youngster who like different style hair

Local or regular to the area nearby shopping centre

Stylish and artistic expert professional person

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