Stratosphere Salon Marketing Plan - Jessica Greschner
Upcoming SlideShare
Loading in...5
×
 

Stratosphere Salon Marketing Plan - Jessica Greschner

on

  • 171 views

Hair Salon Marketing Plan

Hair Salon Marketing Plan

Statistics

Views

Total Views
171
Views on SlideShare
171
Embed Views
0

Actions

Likes
0
Downloads
14
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Stratosphere Salon Marketing Plan - Jessica Greschner Stratosphere Salon Marketing Plan - Jessica Greschner Presentation Transcript

  • Stratosphere Salon COMM 468, Section 101 Colette Cheung 70875091 Jessica Greschner 27722107 Jasna Kamenjas 24980096 Daniel Kong 41960097 Hannah Martin 27435106
  • Agenda Situational Analysis Goals & Objectives Core Strategy Conclusion Situation Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Stratosphere GOING  FORWARD   A+ract  new  customers   Improve  frequency  of  visits  from   exis>ng  customers   Increase  rental  chair  occupancy   Increase  product  sales     Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Industry Analysis Hair Industry in Canada Hair Industry in Canada (2012) •  Hair Industry in Canada is valued at $1.6B with an average growth of 2% Styling Agents 14% •  Salon sales make up 22.9% of the hair care industry 2-in-1 Products 5% Colourants 21% •  Industry is mature, saturated and highly competitive Shampoos 24% Conditioners 13% •  Little seasonality in sales, but mild increase in December Salon Industry 23% Hair Loss Perms/ 0% Relaxants 0% Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Industry Analysis C a t e g o r y / I n d u s t r y F a c t o r s - P o r t e r ’s 5 F o r c e s SUPPLIER POWER: MEDIUM COMPETITIVE RIVALRY: HIGH •  •  •  •  •  •  Limited number of suppliers distribute to Stratosphere High availability of substitute suppliers, but they do differ in quality and substance Supplier is important to the salon Salon contributes to a small proportion of supplier sales THREAT OF NEW ENTRANT: HIGH •  •  •  •  •  •  The market is already saturated There are no barriers to entry There are new buildings with retail space to which competitors could locate Experienced stylists are huge asset- a salon with good stylists can be a fierce competitor There are no economies of scale with independent salons Consumer base is growing Situational Analysis | Goals & Objectives •  •  Large number of salons Little evidence of differentiation among competitors High switching costs for stylists Product can be viewed as a commodity BUYER POWER: HIGH •  •  •  •  •  Many consumers with no salon loyalty Differentiation from services, not basic hair cut No switching costs for consumers Consume purchase frequency is personal Final product is important to consumer THREAT OF SUBSTITUTES: HIGH •  At home hair care is growing due to affordability and access to products on the market | Core Strategy | Conclusion
  • Industry Analysis Environmental Factors THE  MACRO  ENVIRONEMENT   Demographic  Forces   Economic  Forces   Technological  Forces   Poli>cal  Forces   Cultural  Forces   Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Industry Analysis Ke y S u c c e s s F a c t o r s ( I n t h e I n d u s t r y ) Quality of service Access to niche markets Business expertise of operators Prime location Ratio of new vs lost customers Situational Analysis Excellent employees Market leader SUCCESS | Goals & Objectives | Core Strategy | Conclusion
  • Company Analysis Ke y S u c c e s s F a c t o r s ( F o r S t r a t o s p h e r e ; P r e - S u r v e y ) Open long hours High-caliber service Stylists to fit any hair need Specialty services Excellent customer relationships Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Company Analysis People, Price, Place, Product, Place •  Salon & esthetic services •  Salon products PRODUCT •  Website & Social Media •  Granville Street •  Coupons •  Colors: black & white •  Fashion shows PROMOTION •  Prices comparable to high-end salons •  Junior Stylists charge 30-50% less PRICE Situational Analysis •  Foot traffic | PLACE •  12 Chair Renters, 1 Commission Stylists, 2 Apprentices •  Receptionist PEOPLE Goals & Objectives | Core Strategy | Conclusion
  • Company Analysis Sales Analysis TOTAL SALES SERVICE RETAIL Regular Requests 85.00% 74.00% 11.00% New Requests 8.20% 6.70% 1.50% Walk-Ins 1.50% 1.10% 0.50% Staff 1.70% 0.10% 1.60% Retail Only 3.90% 0.00% 3.90% TOTAL SALES 100% 81.90% 18.10% Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Primary Data Collection Ke y F i n d i n g s F r o m C u s t o m e r S u r v e y s & S t y l i s t I n t e r v i e w s Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Company Analysis Data Collection – Stylist Interviews CHAIR  RENTERS POPULATION  SIZE 7 METHOD  OF  DATA   COLLECTION One-­‐on-­‐one  interviews #  OF  FEMALE 2 (29%) #  OF  MALE 5 (71%) Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Company Analysis S t y l i s t I n t e r v i e w s – Ke y Ta k e a w a y s TOP 3 QUALITIES OF STRATOSPHERE People. Good Dynamic. Location Situational Analysis | Goals & Objectives VIBE OF STRATOSPHERE Family. Creative. Chill. Energetic. Cool. | Core Strategy | Conclusion
  • Company Analysis REASONS FOR WORKING AT STRATOSPHERE F o c u s G r o u p Ta k e a w a y s Situational Analysis Not Willing Very Willing WILLINGNESS TO ENGAGE IN SOCIAL MEDIA | Goals & Objectives | Core Strategy | Conclusion
  • Customer Analysis Data Collection – Existing & Potential Customer Surveys EXISTING  CUSTOMERS POTENTIAL  CUSTOMERS POPULATION  SIZE 50 50 METHOD  OF  DATA   COLLECTION Emailed  online  survey In  person  paper  survey %  FEMALE 73% 83% %  MALE 27% 17% Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Customer Analysis Identified Segments Young Trendsetters Situational Analysis Davie Street Guys | Goals & Objectives Business Professionals | Core Strategy Mama Bears West Side Moms | Conclusion
  • Customer Analysis: Existing Clients STRATOSPHERE BRAND ASSOCIATIONS Friendly 23% Good Quality Service 18% Trendy 15% Fun 11% Energetic Situational Analysis | Goals & Objectives | Core Strategy 7% | Conclusion
  • Most Important Salon Features EXISTING  CLIENTS   POTENTIAL  CLIENTS   1.  Quality of service 1.  Quality of service 2.  Personal relationship with 2.  Experience of hairstylist 3.  Good value for money hairstylist 3.  Experience of hairstylist 4.  Cleanliness 4.  Cleanliness 5.  Salon Atmosphere 5.  Salon Atmosphere 6.  Personal relationship with hairstylist 6.  Convenience of location 7.  Situational Analysis | Goals & Objectives | Convenience of location Core Strategy | Conclusion
  • Insight for Attracting New Clients Satisfaction Level vs. Importance Factors in a Hair Salon 100%   Exis>ng  Customers   90%   Poten>al  Customers   80%   70%   KEY TAKEAWAY: Stratosphere is 60%   50%   doing very well in 40%   areas potential 30%   customers deem 20%   important! 10%   0%   Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Customer Analysis Communicating with Customers PREFFERED COMMUNICATION CHANNELS Twitter (47%) Instagram (53%) Pinterest (20%) TOPICS OF INTEREST Facebook (87%) Beauty/ Skin (60%) Makeup Tips (53%) Email (53%) Hair Tips (93%) Fashion (53%) * Responses reflect those of existing customers Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Customer Analysis Re v e n u e S o u r c e s Share  of  Pocket  –  ExisDng  Customers   100%   80%   78%   60%   40%   31%   20%   0%   Services   Products   KEY TAKEAWAY: Stratosphere accounts for most of their customers salon services, but less of their product purchases Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Customer Analysis Core Customers 40% 73% 33% 30% 27% 10% 23% 19% 20% 19-24 4% 8% 25-34 29% 8% 2% >50 24% 4% 2% 0% 35-49 43% GENDER OF CUSTOMERS AVERAGE INCOME OF CUSTOMERS AGE OF CUSTOMERS SIZE   REFERALS   IMPORTANCE   PRODUCT   FREQUENCY   App. 13,800 requests / year, # of customers unknown 41% of customers were referred by a friend 90% of customers consider good hair important 68% of customers buy product from Stratosphere 46% of customers visit the salon every 5-8 weeks   Situational Analysis   |   Goals & Objectives |   Core Strategy   | Conclusion
  • Competitive Analysis Address Vancouver, BC D a t a C o l l e c t i o n – O b s e r v a t i o n & S e c o n d a r y Re s e a r c h POPULATION  SIZE METHOD | Goals & Objectives Observa>on LOCATION Situational Analysis 12 Downtown Vancouver | Core Strategy (7 identified as key competitors) | Conclusion
  • Competitive Analysis Ke y C o m p e t i t o r s & S t r a t e g i e s Zennkai Straight and Curl Hair Salon Holts Salon & Spa KEY COMPETITORS Pink Lime Salon & Spa Lounge Hair Studio Pony Hair Salon Situational Analysis | Goals & Objectives Moods Hair Salon | Core Strategy | Conclusion
  • Competitive Analysis Competitive Benchmark / Matrix 2   Situational Analysis 4   | 3   Goals & Objectives 5   | 5   Core Strategy 5   1   | 2   Conclusion
  • SWOT STRENGTHS WEAKNESSES OPPORTUNITIES T H R E AT S Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Goal & Objectives Improving the Stratosphere Marketing Mix Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Goals & Objectives Of the Marketing Plan EXISTING   CLIENTS   NEW   CLIENTS   RETAIN   CHAIR   RENTAL   PRODUCT   SALES   Situational Analysis •  Increase monthly service revenue from existing customer base by 15% in comparison to monthly sales of the last fiscal year. •  Increase number of first-time customers by 15% compared to number of new customers of the same month in the last fiscal year. •  Ensure retention rate of first-time customers matches industry standard of 33% by the same month in the next fiscal year •  Increase chair rental occupancy by 2-3 compared to chair rental rates 6 months prior. •  Increase monthly product sales by 10% compared to in the same month in the last fiscal year. | Goals & Objectives | Core Strategy | Conclusion
  • Core Strategy O b j e c t i v e s à S t r a t e g i e s à Ta c t i c s Situation Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Core Strategy Positioning POSITIONING STATEMENT For the style-conscious customer who places great emphasis on their hair, and needs a great stylist to cut, color and style for any occasion. Unlike Holt, Pony or Mood’s, Stratosphere gives you the high-end hair services in a comfortable environment without the attitude. Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Core Strategy Ta r g e t i n g & S e g m e n t a t i o n Urban  Powerhouse   • Live  and  work  in  the  area   • Looking  for  quality,  dependable  service   Mama  Bear   • Demand  looking  their  best   • High  household  incomes   Davie  Street  Guys   • Invest  in  Their  Appearance   • Live  in  close  proximity  to  Stratosphere   Young  Trendse+ers   • Low  income,  but  HIGH  willingness  to  pay   • Early  adopters  of  the  latest  trends   Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Core Strategy Objective 1 INCREASE MONTHLY SERVICE REVENUE FROM EXISTING CUSTOMER BASE BY 15% IN COMPARISON TO MONTHLY SALES OF THE LAST FISCAL YEAR TACTICS STRATEGY 1 VIP / Loyalty card Email newsletter Situational Analysis | Goals & Objectives | $150     per  Year   Offer quick services Encourage greater frequency in which customers go to Stratosphere $400   For  100   No  Add.   Cost   Core Strategy | Conclusion
  • Core Strategy Objective 2 INCREASE # OF FIRST-TIME CUSTOMERS BY 15% COMPARED TO # OF NEW CUSTOMERS OF THE SAME MONTH IN THE LAST FISCAL YEAR TACTICS STRATEGY 1 Curb appeal- Sign & Window Display Expand digital presence Increase brand awareness of Stratosphere to the general public (Instagram breakout campaign, Yelp reviews, $0   Make a presence in the media with hair specialist column $TBD   reach out to bloggers) Stimulate referrals by providing incentives (discounts) Situational Analysis | Goals & Objectives $375   | Core Strategy | $10     Per  referral   Conclusion
  • Core Strategy Objective 2 INCREASE # OF FIRST-TIME CUSTOMERS BY 15% COMPARED TO # OF NEW CUSTOMERS OF THE SAME MONTH IN THE LAST FISCAL YEAR TACTICS STRATEGY 2 Place postcard ads and 1st-time visit coupons at nearby businesses Place 1st-time visit coupons in the mailboxes of new apartments Create stronger community ties with nearby businesses and client Situational Analysis | Goals & Objectives $100   For  100   $100     For  100   | Core Strategy | Conclusion
  • Core Strategy Objective 3 ENSURE THE RETENTION OF FIRST-TIME CUSTOMERS MATCHES THE INDUSTRY STANDARD OF 33% IN COMPARISON TO THE SAME MONTH IN THE NEXT FISCAL YEAR TACTICS STRATEGY 1 Welcome kit Wow first-time customers with an unexpected, unforgettable experience (sample products, contact card, etc.) Send thank-you email after appt. & reminder for next appointment (in addition to standard servicecoat, beverage, etc) Situational Analysis | Goals & Objectives Ask to schedule next appt. when customer leaves | Core Strategy | $7   Per  Kit   $12.50     Per  Month   No  Add.   Cost   Conclusion
  • Core Strategy Objective 4 INCREASE THE NUMBER OF CHAIR RENTERS BY 2 OR 3 COMPARED TO CHAIR RENTAL OCCUPANCY 6 MONTHS PRIOR STRATEGY 1 TACTICS Increase brand awareness of Stratosphere in the professional hair industry Situational Analysis | Goals & Objectives Ads in professional hair magazines $500  (~)   Per  Ad.   Increase presence in media $TBD   (hair specialist column-such as VanCity Buzz) | Core Strategy | Conclusion
  • Core Strategy Objective 4 INCREASE THE NUMBER OF CHAIR RENTERS BY 2 OR 3 COMPARED TO CHAIR RENTAL OCCUPANCY 6 MONTHS PRIOR STRATEGY 2 TACTICS Justify the above average price of Stratosphere chair renting Situational Analysis | Goals & Objectives Ensure junior stylists/receptionists clean & assist senior stylists No  Add.   Cost   Provide educational workshops targeted towards senior stylists No  Add.   Cost   | Core Strategy | Conclusion
  • Core Strategy Objective 5 INCREASE MONTHLY PRODUCT SALES BY 10% COMAPRED TO THE SAME MONTH IN THE PREVIOUS FISCAL YEAR TACTICS STRATEGY 1 Attach samples to full-sized popular products In store promotion (small tent signs) at styling chairs (provided by Drive awareness and penetration of hair products | $150   distributor) Adam’s   Pick   Situation Analysis TBD   Goals & Objectives | Each month a stylist pick their favorite product and it is marked Core Strategy | $15   Conclusion
  • Core Strategy Objective 5 INCREASE MONTHLY PRODUCT SALES BY 10% COMAPARED TO THE SAME MONTH IN THE PREVIOUS FISCAL YEAR TACTICS STRATEGY 1 Ask stylists to tell customers the products they are using (samples) Ensure Stratosphere is listed on distributors websites Situational Analysis | Goals & Objectives | No  Add.   Cost   Promote product brands on tent sign and in window display Drive awareness and penetration of hair products No  Add.   Cost   Cost  Covered   in  OB.  1   Core Strategy | Conclusion
  • Core Strategy Objective 5 INCREASE MONTHLY PRODUCT SALES BY 10% COMAPARED TO THE SAME MONTH IN THE PREVIOUS FISCAL YEAR TACTICS STRATEGY 2 Place small, low priced products next to cashier (travel sized items) $50   Increase sales through impulse buys Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Core Strategy Objective 5 INCREASE MONTHLY PRODUCT SALES BY 10% COMAPARED TO THE SAME MONTH IN THE PREVIOUS FISCAL YEAR TACTICS STRATEGY 3 Have retail displays with signs on how to best use the product $100   Outline benefits of salon over drug store products on small signs $100   How   To..   Educate customers on how to use products Have customers participate in styling of hair Situational Analysis | Goals & Objectives | Core Strategy | No  Add.   Cost   Conclusion
  • Implementation Three Phase Process Jan.   Sidewalk  Sign  and  Window  Display   Social  Media   PHASE  1   Post  Card  Ads  and  1st  Visit  Coupons   Schedule  Next  Visit   Aug.   Sept.   Oct.   Nov.   Dec.                                                                                                                                                                                                                   Offer  Quick  Services                           é  Rev.  from  Exis>ng   Email  NewsleNer   Customers           VIP  /  Loyalty  Card       *                       Tell  Customers  About  Products  they  are  Using   Ensure  Listed  on  Distributor  Websites   Product  brands  on  Window/Sidewalk  Display   Place  Small  Low-­‐Cost  Items  Next  to  Till   Retail  Displays  with  “How  To”  Descrip:ons   Small  Signs  -­‐  Salon  vs  Drug  Store  Products   Have  Customers  Par:cipate  in  Styling  of  Hair   |          Jr.  Stylists/  Recep:onists  Assist  Sr.  Stylists   *  SoXware  Implemented  in  Thank-­‐you  email           Increase  Presence  in  Media   Educa:onal  Workshops  for  Sr.  Stylists   PHASE  2   July           Ads  in  Magazines   PHASE  3   June       Thank-­‐you  email   Situational Analysis May       Welcome  Kits   Increase  Product   Sales     April       1st  Time  Visitor  Coupons   Increase  #  Chair   Renters   Mar.           Increase  #  of  First   Hair  Specialist  Column   Time  Customers   Discounts  to  S:mulate  Referrals   Retaining  New   Customers   Feb.                                                                                                                   **                                                                                       **  Implemented  in  Phase  1                   Goals & Objectives         |             Core Strategy     |                         Conclusion
  • Conclusion Increase service revenue of existing customers Increase number of first time customers Ensure retention rates of new customers Increase chair renting occupancy Increase product sales S T R A T E G I E S   T   A   Situational Analysis C   | T   Goals & Objectives I   | Core Strategy S   C   | Conclusion
  • Hairdressers are a wonderful breed. You work one-on-one with another human being and the object is to make them feel so much better and to look at themselves with a twinkle in their eye. - Vidal Sassoon Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Appendix Slides S u p p l e m e n t o f P r i m a r y Re s e a r c h Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Appendix 1 C u s t o m e r A n a l y s i s - P s y c h o g r a p h i c Tr a i t Importance of Having Great Hair Everyday 70%   60%   50%   40%   Current Customers 30%   Potential Customers 20%   10%   0%   Very Unimportant Situational Analysis Somewhat Unimportant | Neutral Goals & Objectives Somewhat Important | Very Important Core Strategy | Conclusion
  • Appendix 2 Competitive Benchmark / Matrix 2   Situational Analysis 4   | 3   Goals & Objectives 5   | 5   Core Strategy 5   1   | 2   Conclusion
  • Appendix 3 Objective 1 Increase monthly service revenue from existing customer base by 15% in comparison to monthly sales of the last fiscal year. Monthly Service Revenue Existing Client Base % $52,000 X Current $38,480 Situational Analysis 74% Monthly Service Revenue from Existing Client Base = Target X Goal Revenue 115% | Goals & Objectives $38,480 = | Core Strategy $44,252 | Conclusion
  • Appendix 4 Objective 2 Increase number of first-time customers by 15% in comparison to number of new customers of the last fiscal year. Current New Customers / Year Goal for New Customers / year % Increase 1,111 1,300 1,300 / 1,111 = 1.1701 Goal = ~15% Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Appendix 5 Objective 2 Increase number of first-time customers by 15% in comparison to number of new customers of the last fiscal year. Current New Customers / Year Goal for New Customers / year % Increase 1,111 1,300 1,300 / 1,111 = 1.1701 Goal = ~15% Situational Analysis | Goals & Objectives | Core Strategy | Conclusion
  • Appendix 6 Objective 4 Increase monthly product sales by 10% compared to the same month the last fiscal year Avg Monthly Product Sales X 110% Monthly Increase of $9,175 $10,092.5 ~ $900 Situational Analysis | Goals & Objectives | Core Strategy | Conclusion