Part A: Completed Report on their Research Process
Organisation: Hair Salon – Hair Sway
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:
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
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%.
This will require salaries, expenses, advertising, office lease, equipment, computer systems and other requirements. We will require financial aid from investors.
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.
Hair Sway’s marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service.
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.
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.
The target audience is all people that are interested in the hair Salon services. This could include all types of customers from:
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