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Marketing Case Study For Competitions: Sparkle Nail Salon
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Marketing Case Study For Competitions: Sparkle Nail Salon

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This is a marketing case study on the effective use of competitions to drive new business. It outlines the case of Sparkle Nail Salon in Cambridge, MA, and covers the details of execution of the …

This is a marketing case study on the effective use of competitions to drive new business. It outlines the case of Sparkle Nail Salon in Cambridge, MA, and covers the details of execution of the competition and identifies the results from the new campaign.

Published in: Business, Technology

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Transcript

  • 1. Custom Window Signs, Car Signs & Banners
    www.signazon.com
  • 2. Marketing Case Study
    For Competitions:
    Sparkle Nail Salon
  • 3. Company Background
    • Founded in Cambridge, Massachusetts in 2000 by Kim Nguyen.
    • 4. Sparkle’s first few years were rocky as Kim struggled to compete with
    the full-service spas and low-cost salons around town.
    • With only 200 clients, Kim decided it was time to advertise.
  • Original Marketing Implementation
    • Without a clear strategy, Kim was unaware of what to do.
    • 5. She set-up a newspaper ad contract and also purchased a small
    billboard ad, both with a 3-month commitment.
    • Kim’s total advertising expenditure was $9,000. In those 3 months,
    Sparkle gained 51 new clients.
  • 6. Nail Design Competition
    • Kim wasn’t satisfied with the return, so she let the billboard expire
    and dropped the newspaper ads to once a month.
    • An employee suggested a nail design competition, so Kim
    purchased a banner to hang over her storefront promoting it.
    • Customers booked appointments with one of 5 competing artists
    to receive an avant-garde nail design.
  • 7. Nail Design Competition
    • For booking a competition appointment, customers received a
    free manicure/pedicure coupon.
    • Pictures were taken of each design and the clientele were able to
    vote for their favorite.
    • The nail artists were charged with referring new business into the
    salon to vote for their designs.
  • 8. Growth and Adjustments
    • Each artist booked 10 appointments, which led to 50 entries total, 38
    of which were new clients.
    • The voting process became complicated so Kim decided to take the
    voting online.
    • The banner, which cost $150, did not include dates, so Kim will be able
    to use it for future competitions.
  • 9. Outcome
    • Kim found a niche to make Sparkle Nail Salon a successful business.
    • 10. Since high-end and low-cost were already taken, Kim instead chose
    cutting-edge.
    • Hosting a competition built the credibility of her employees and
    increased word-of-mouth.
  • 11. Outcome
    • The business signs attracted so many new customers that Kim ordered
    another banner featuring her manicure and pedicure special.
    • The 1-month competition and its subsequent bookings brought 75 new
    clients to Sparkle for a fraction of the original marketing investment.
  • 12. Recommendations
    • Find a niche in your market. Find a specific demographic and focus on
    reaching it in the most-effective way possible.
     
    • If expensive ads aren’t in the budget, there are alternatives. Look for
    mediums that provide high “bang for your buck.”
     
    • Hosting a competition not only builds buzz and awareness, and it also
    pushes your employees to be the best.
     
    • Utilize the power of word-of-mouth. New customers are more-likely to
    believe those they trust.
  • 13. Feel like an expert now? Great!
    Order your window signs today at
    Still have questions? We can help!
    Visit us online at www.signazon.com