Dilo hair salon_e_marketing

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Application of Electronics marketing in DILO Hair Salon

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Dilo hair salon_e_marketing

  1. 1. HANOI UNIVERSITY FACULTY of MANAGEMENT & TOURISM -----------------------o0o---------------------- ELECTRONIC MARKETING Project: APPLICATION OF ELECTRONIC MARKETING IN DILO HAIR SALON Tutor: Ms. Minh Hang Tutorial 3 BA08 Group members: Nguyen Thi Bich Diep – 0804000017 Nguyen Thi Loan – 0804000062
  2. 2. DILO Hair Salon 2011 TABLE OF CONTENT Abstract …………………………………………………………………………………... 3 INTRODUCTION OF THE BUSINESS ……………………………………………….. 4 1. Overview of DILO Hair Salon ………………………………………………. 4 2. Application of Electronic Marketing in DILO Hair Salon …………………... 4 SITUATION ANALYSIS …………………………………………………………...….. 5 1. Environmental Analysis ………………………………………..…………….. 5 2. SWOT Analysis - DILO Hair Salon …………………………………….…… 9 E-MARKETING STRATEGIC PLANNING …………….……………………………. 11 1. Market Opportunity Analysis ………………………………………...…….. 11 2. Brand Differentiation and positioning strategies …………………………… 12 OBJECTIVES ……………………………………………………………………..…….. 13 E-MARKETING STRATEGY ……………………………………………………..…… 14 1. Product ………………………………………..…………………………....... 14 2. Price ……………………………………………………………………...…... 15 3. Place ………………………………………………………………………..... 15 4. Promotion ……………………………………………………………..…....... 16 IMPLEMENTATION PLAN …………..…………………………………………..…… 16 REFERENCES ………………………………………………………...……………..….. 17 Appendix ………………………………………………………………………………….. 18 2
  3. 3. DILO Hair Salon 2011 ABSTRACT E-marketing has become a strategic useful tool for modern businesses to develop their network of customers. DILO Hair Salon (DILO) is a project that utilizes e-marketing’s advantages in its operation. While most of hair salons in Hanoi have been strange to using internet to approach clients, DILO set up a convenient website for them to search information, to check the services and prices, to try a virtual service, and to enjoy other benefits. With the intention to become the most reliable salon in Hanoi, targeting middle-to-high income women, DILO tries to use e-marketing as a useful method to build and maintain customer relationship, which can help the firm to succeed in the long run. In this report, we developed a business plan for DILO with detailed analysis on environmental factors, company’s analysis, and the use of e-marketing in a variety of activities. 3
  4. 4. DILO Hair Salon 2011 INTRODUCTION OF THE BUSINESS 1. Overview of DILO Hair Salon DILO Hair Salon (DILO) is located at Km9, Nguyen Trai Street, Thanh Xuan District, Hanoi. We offer professional hairdressing services within the city. Services and Goods Our hairdressing services include color, texture, cutting, treatments, and styling and specialty. The services are performed by a team of qualified and professional hairdressers with the intention to bring about satisfaction to every customer. Target Customers DILO‟s products are aimed at middle-to-high income women, who are from the age of 22 to 40. Our target customers lives and/or works within Hanoi‟s seven center districts, a majority of those work or study in offices, banks, hotels, and universities. Mission With our capabilities, DILO is confident to highly satisfy even the most demanding customers. We desire to discover and enhance the beauty for each woman by styling and caring for her hair, therefore, make her more confident in work and life. Vision DILO tries to become the number one salon of Hanoi in terms of reliability, fashion, and customers‟ relation. 2. Application of Electronic Marketing in DILO Hair Salon – Brief Description DILO Hair Salon’s website: DILO‟s website is established along with the foundation of the hair salon. As a usual hair salon‟s website, ours provides informational introduction about DILO Hair Salon including establishment, location with map, hairdressers‟ information, 4
  5. 5. DILO Hair Salon 2011 services and products‟ images and prices. Besides, the web continuously updates news and articles about hairstyles, hair trends, and hair caring tips for readers. DILO Hair Salon’s Website – at http://dilo.byethost15.com/index.php/home What makes DILO‟s website unique or outstanding from other rivals‟ is the ability to interact with customers through an application of trial hairstyle software and an online consultation service. Online marketing: Keeping in mind the power of online marketing, DILO takes advantage of the internet in promoting our products. Other than the salon‟s website and some traditional integrated marketing communication (IMC) tools, we use social networks, online newspapers, other suitable websites, and e-mails in our marketing campaigns. SITUATION ANALYSIS 1. Environmental Analysis Demographic segment: Hanoi – a very potential market with the concentration of a large amount of customers Hanoi is a highly populated city with about 6.7 million residents. On average, in this city, there are nearly 2,000 people living per km2, which is eight times higher than the whole country‟s average density (Huong, D 2011). The crowdedness of this market makes it easier for any business to do mass marketing and to reach a large market share. In Hanoi, people from the age of 22 to 40 amounts to a major amount of the total city‟s population, they are also at the labor ages. 5
  6. 6. DILO Hair Salon 2011 Economic segment: A steady growth in Hanoians’ per capita income 37.7 31.8 28.1 22.4 15.6 2005 18.4 2006 2007 2008 2009 2010 Hanoians’ per capita income (VND million) – Source: GSO People‟s earnings have been increased from 2005 to 2010 at a compounded annual growth rate (CAGR) of 19.3%. This trend is likely to continue in the future and might encourage consumption in this big city in recent years. Socio-cultural segment: Increasing awareness of the beauty’s benefits in work and life In 2009, Nielsen, a leading global information and measurement company, released a research on understanding Hochiminh City and Hanoi customer differences. This study showed that the role of public opinion and social conformity is stronger for Hanoians: “they don‟t just live for themselves and they do care what others think of them. Appearance is the key”. According to the result of our survey delivered to 100 women in Hanoi, there were more people who highly appreciate the value of good hairstyles in their work and life. 86% of respondents believed that a fashionable hairstyle made them more confident in job interviews, and in daily work. Besides, there were more than 80 people who thought that a suitable hairstyle made them more beautiful and easier to draw attention from the opposite gender. 6
  7. 7. DILO Hair Salon 2011 Customers’ resistance to make changes in hairstyles In our study, there were about 47% of people saying that they often didn‟t want to change their hairstyles. Among those, about 80% shared that they were afraid the new style would make them look worse, and only 10% blamed on their financial conditions. It can be seen that there is a big risk for women not to come to salons. If they could foresee their appearance before actually realizing it, they would not be so hesitant. The influence of Korean and Japanese styles on Vietnamese women’s preference On TV channels, Internet, and magazines, it is very easy to see Korean movies, Korean and Japanese music, and Korean‟s and Japanese‟s most updated hairstyles. Their intensity of appearance, along with the similarities among Asia people‟s cultures including Korea, Japan, and Vietnam, has strongly influenced Vietnamese women‟s style of beauty making-up, in general and their hairstyle preferences, in particular. A Korean actress’s news on a popular Vietnamese online newspaper SNSD band from Korea In the question about their hairstyle preferences, 84% people liked Korean actresses‟ and singers‟ styles, 13% of them preferred Japanese‟s ones. That also explains why existing hair salons in Hanoi often offer their customers catalogues of Korean celebrities‟ and models‟ photos to choose the style they want. A habit of using internet for searching information and interacting with each other Cimigo, an independent team of marketing and brand research specialists operating throughout the Asia Pacific region has just published a report on using Internet in Vietnam 2011. According to that, about 62% of Vietnamese used internet every day, and most of them use internet for reading news and searching information (97%). The 7
  8. 8. DILO Hair Salon 2011 number of Internet users who participated in social networks, such as Facebook, Twitter, Myspace, and Zingme had increased from 41% in 2010 to 55% in 2011. Different channels of marketing’s influence on Hanoians’ purchasing decisions Nielsen‟s study showed that Seller‟s website and forums affected the buying decisions of the largest number of consumers in Hanoi. 100% Seller websites and forums 95% Internet/other websites to compare information 67% Recommendations from sellers 83% Newspaper/magazine 91% Advertisements Different channels of marketing’s influence on Hanoians’ purchasing decisions – Source: Nielsen The concern about hair chemical’s quality and safety The survey with 100 customers showed that all of them often worried about the quality and the safety of the chemicals used to their hair when they went to hair salons. What people really wanted to know the most is the brand of the product and its origination, they were afraid that the chemical could cause them allergy or cancers. Technological segment: The availability of hairstyle trial soft wares in the world Dailymakeover.com, Hair Master Software, and Digital Hairstyle software are typical examples which allow users to choose different hairstyle, hair color for them. Hairstyle Trial Soft Ware 8
  9. 9. DILO Hair Salon 2011 Political/legal segment: Up to now, there has been no particular regulation for hair salons in terms of using chemicals in their businesses. 2. SWOT Analysis - DILO Hair Salon Strengths: The commitment to use high-quality and safety chemical Because customers often worry that the chemical used to their hair can do harm to their health, DILO commits to show customers the brand and the origination of every chemical used. All of those products must have well-known brands in the world or in the country; they must receive the certificates of health safety from the Ministry of Health. A strong client management DILO makes frequent contacts with its customers by the firm‟s website, e-mails and mobile phones. News and videos are updated almost every day to the website of the company. Users are likely to get used to logging in the website every day for reading a variety of information. The news‟ contents include hairstyle trends and hair caring articles. Website‟s users provide their database to DILO when they want to log in the website, a profile will include name, age, gender, address, work place, mobile phone number, and e-mail address. These contacts will be used to deliver advertisement and promotion messages to customer personally and to help DILO‟s staff remember their customers better. Customer reliance and relationship will also be enhanced by the application allowing them to receive online personal consultation. An administrator is responsible to ensure the activities on DILO‟s websites to run smoothly so that users always feel convenient. A unique trial service Hairstyle trial software is applied on the website and at the salon in order for customers to choose the style they like for themselves before going to the real salon. The use of trial software is to reduce customers‟ risk before deciding to go to DILO Hair Salon. They can require our hairdressers to realize the hairstyle they want. A well-trained team of hairdressers and employees All of DILO‟s hairdressers graduated from TONI&GUY Academy, a well-known brand for training hairdressers in the world. They are experienced, skilful and professional. Every employee in the salon was trained thoroughly in customerfocused business practices. This ensures to satisfy the most demanding customer from the very beginning step – reception. 9
  10. 10. DILO Hair Salon 2011 Receptionist A wide and polite space and parking place Different from lots of other salons in the city, DILO has a spacious site (100m 2) that can serve more than 15 customers at the same time. We offer waiting desks with tea and candies for clients and their friends or relatives. A corner inside DILO Hair Salon A secure and wide parking place is available for customers who travel in their personal cars and motorbikes. This is one of the very important factors that consumers often concern going to a salon. Spacious parking site Weaknesses: Lack clientele list Being a new salon for Hanoians, DILO lacks a clientele list of this market. The salon will have to try very hard to attract customers from the beginning. 10
  11. 11. DILO Hair Salon 2011 Relatively high prices Our salon offers a price level that is about 10% higher than the market‟s average. This mark-up is to compensate for the use of high-quality products, an expensive renting fee (house renting and car parking site renting), and higher salary for experienced hairdressers. Opportunities: A steady growing market that is traditionally unaffected by the economic environment In general, this kind of service is not much affected by the economic condition, especially in Hanoi where people have relatively high income. This is the chance for hair salons to make profit even when the economy becomes downturn. The ability to decrease marginal fixed costs as the customer base grows The high price charged to each customer at the beginning will be able to reduce in the future thanks to the increase in the number of customers coming to the salon. At that time, the fixed costs in renting, salary per customer will be declined. The ever-evolving hair trends and styles can present many opportunities for the hair salon Hair trends change year over year, and even faster, season over season. Women may have the tendency to update their hair to look more fashionable in the eyes of surrounding people. The hair salon can regard it as opportunities to increase customers‟ frequency of use. Threats: The fierce competition from rivals and new entrants DILO Hair Salon will have to cope with the completion in market. In order to win over its rivals, DILO will have to make ongoing strategic moves in attracting new customers and retaining existing ones. The salon might introduce new styles very often, provide new promotions and specials for their customers, as well as ensure the smoothness of the operation both online and offline. E-MARKETING STRATEGIC PLANNING 1. Market Opportunity Analysis Demand analysis As mentioned in “Environmental Analysis” part, the demand for hair-related service is growing everyday. Recently, women, especially those who live in big city like Hanoi, care more for their appearances. They want to be more confident in work and life and they have a growing income, which can encourage them to hair salons more frequent to get their hair look better. Hanoian female from the age 22 to 40 are very familiar with internet nowadays so the use of online applications in marketing is very profitable. 11
  12. 12. DILO Hair Salon 2011 Supply analysis DILO possesses a lot of strengths and competitive advantages which can help us to outperform competitors. DILO has a team of experienced and customer-oriented hairdressers, the commitment to use high-quality products, a good brand with several honorable prizes, and an effective utilization of internet in doing marketing. It is not easy for other salons to achieve those advantages in the near future. However, our rivals have experience in Hanoi market and they may also use internet to promote their firms in the future. To win over them in the long-run, DILO will have to ensure the salon‟s quality while continuously bringing to customers benefits by gifts, sale-off programs and maintaining customer relationships with the support of the company‟s website and employees. In conclusion, DILO target Hanoi market because of its profitability and high demand now and in the future. Women from 22 to 40 years old with middle to high income will be our main customers. They are frequent users of this kind of service, they are technological familiar and they always expect professional services, which can entirely be offered by DILO Hair Salon. DILO aims to positions ourselves as a highly reliable salon for customers. We do not stop at making them more beautiful, we offer them safe and high-quality service with the commitment to use globally branded hair caring products. The reliability also lies in our ability to realize customers‟ expectation and imagination of their new hair. Our experienced hairdressers can make each client‟s hair as similar as possible to what they have tried in the hairstyle trial software in terms of hair shape, hair length, and hair‟s color. We also provide them with reliable advice and consultation in caring their hair before and after any hair treatments. Besides, DILO salon desires to become a relaxing space for our customers. We utilize music, décor, and flowers in the salon so that customers can comfort their senses. Our employees regard customers as relatives. They must remember their names, talk to them friendly and serve them well. 12
  13. 13. DILO Hair Salon 2011 OBJECTIVES DILO aims to achieve the following objectives: Objectives Increasing market share Increasing sales revenue Achieving branding goals Tasks Use IMC tools effectively Measurable quantity Encourage customers to spread positive word-of-mouth Try to cut down price as the demand grows Encourage customers to spread positive word-of-mouth Appear on the top list of Google Search for hair salon in Hanoi Appear on popular online newspaper and websites every week Time frame On top 10 salons in Hanoi about market share By 1 year 5 times as much as month 1‟s revenue By month 12 Realized by 10% of targeted customers in Hanoi By 1 year 15 times as much as month 1‟s database size By 1 year Increase the number of people using DILO‟s website and trial service Increasing database size Update the website‟s news Update the trial software‟s hairstyles Ensure not to let customer wait for more than 20 minutes Achieving customer relationship management goals Ensure all customers receive greeting messages on special occasions Ensure receptionists to smile to customers and remember their names Ensure hairdressers to have friendly talks with customers in the salon 13 Number of regular customers increased by 7% per quarter From start-up to the end of year 1
  14. 14. DILO Hair Salon 2011 E-MARKETING STRATEGY 1. Product – Three levels of product Core product - Hairdressing services The core benefit that DILO brings to customers is the confidence in their own beauty. Actual product Quality of the finished hairstyles The actual products that DILO delivers to customers are their new hairstyles, which fit with their expectations stepping in the salon. No matter how well the salon can serve their customers, if they don‟t like their new hair, it will be hard to see them come back. Keeping that in mind, DILO commits to use only experienced and qualified hairdressers to serve our customers. Quality of chemical As mentioned in the “Strengths” part, all products used in DILO for hair treatments are safe and high-quality. Among those, examples of our favorite brands are Schwarzkopf Professional – a famous company in Germany and Selective Professional – one of three leading brands in Italia and Europe in hair caring products. Both of these lines are preferred to use by professional salons in the world for their effectiveness and safety. Schwarzkopf Professional products Selective Professional products Salon’s brand name The other benefit that DILO can bring to customers is the reliability in the salon‟s brand name; an enterprise has won several honorable prizes in national hair contests like Wellla and The Golden Scissors. Augmented product – Mainly supported by electronic tools Consultation service DILO‟s customers receive free consultation from our team of professionals. The advice can be about hairstyles, hair caring, hair repairing, price, time to use service and any promotion programs if needed. Consultants can contact with customers through DILO‟s website, phones, or e-mail. 100% of customers coming to the salon will receive hairdresser‟s direct consultation. 14
  15. 15. DILO Hair Salon 2011 Trial service Customers can use our hairstyle trial software for free either on the company‟s website or directly at the salon. Music and décor of the salon In DILO Hair Salon, customers can enjoy music and an eye-catching décor style with flowers and green trees, which can make them comfortable and relaxing. Information Taking advantages of the website, we always provide to customers with updated news, new tips, and new trends. Especially, the salon‟s professionals will train customers on how to care for their hair after treatment, how to beautify their hair correctly, and how to temporarily design hairstyles by themselves at home. 2. Price DILO applied a dynamic pricing for the salon’s services. Price policy is updated on the company‟s website in case there is some change. DILO’s regular customers receive discounted prices. The discount can ranges from 5% to 30% based on their frequency of using the salon‟s services. Customers receive discount for the next time of use if they can introduce others to DILO. We want to take advantage of word-of-mouth marketing by encouraging customers to introduce their friends, relatives, colleagues, and neighbors to DILO. This is the solution for us, a new brand in Hanoi, to develop our customers list. Service’s prices are deducted when customers come during low demand time and seasons. According to that, it is up to 20% cheaper for people who come during the mornings from Monday to Friday, and for people who use services from March to June. The peak time for the salon is afternoons, early evenings, weekends, and before Tet Holiday. 3. Place (Distribution) DILO uses direct marketing for product distribution. Customer may seek for DILO‟s consultation through our website; however, they have to come directly to the salon for their hair to be actually done. 15
  16. 16. DILO Hair Salon 2011 To make it easy for first-time users, our website presents a map to allocate DILO Hair Salon within Hanoi. 4. Promotion (Intergrated Marketing Communication) Details about promotion are presented below: Tools Advertising PR Sales promotion How            When DILO‟s website Google ( Google trends) Facebook Muachung, Hotdeal, Nhommua Leaflets which are deliveried at the office, and universities Magazines ( Hair magazine) Sponsorship:  Free hair make-up for beauty contests‟applicants  Sponsor events: Vitamin or Hair contests Discount coupons Software: using trial service online Photos contest: create hair contest in the forum for member in the website, the winner will receive the discount or premium Premium: VIP card for regular customers, On-going     Once per 1-3 months Start-up Once per 1-2 months Start-up and occasionally    Start-up and occasionally On-going 1-2 times/ years  On-going IMPLEMETATION PLAN Please visit our website at http://dilo.byethost15.com/index.php/home/about 16
  17. 17. DILO Hair Salon 2011 REFERENCES Huong, D 2011, „Hà Nội ra quân hưởng ứng tháng hành động quốc gia về dân số‟, VGPNews, viewed 20th November 2011, <http://baodientu.chinhphu.vn/Home/Ha-Noi-ra-quan-huongung-Thang-Hanh-dong-quoc-gia-ve-Dan-so/201111/103399.vgp> DILO Hair Salon‟s Website, <http://dilo.byethost15.com/index.php/home> Vaughan Ryan, 2009, HCMC v Hanoi Understanding consumer diffrences, The Nielsen Company Cimigo, 2011, Báo cáo NetCitizen Việt Nam 2011, Cimigo 17
  18. 18. DILO Hair Salon 2011 Appendix: PHIẾU ĐIỀU TRA Ý KIẾN KHÁCH HÀNG Họ và tên: Di động: Tuổi: Nghề nghiệp: 1. Bạn nghĩ thế nào về tác dụng của kiểu tóc đẹp trong buổi phỏng vấn xin việc và trong công việc hàng ngày?  Làm tôi tự tin hơn  Không có tác dụng gì mấy 2. Bạn nghĩ thế nào về tác dụng của kiểu tóc đẹp khi gặp gỡ và tiếp xúc với người khác giới?  Làm tôi lôi cuốn hơn  Tôi không quan tâm tới vấn đề này 3. Bạn có muốn hài lòng với kiểu tóc hiện tại của mình không?  Có (bỏ qua câu 4)  Không 4. Bạn có sẵn sàng tới salon để đổi kiểu tóc của mình không?  Có (bỏ qua câu 5)  Không 5. Vì sao bạn không muốn đổi kiểu tóc của mình?  Sợ kiểu tóc mới sẽ làm mình trông tệ hơn  Chưa đủ điều kiện tài chính  Quá bận và chưa có thời gian  Lý do khác. Cụ thể: 6. Bạn thích các mẫu tóc của đất nước nào nhất?  Không quan tâm  Hàn Quốc  Nhật Bản  Trung Quốc  Pháp  Mỹ  Khác. Cụ thể: 7. Khi tới các salon tóc, bạn có lo lắng về nguồn gốc, chất lượng và độ an toàn của hóa chất sử dụng không?  Có và được salon giới thiệu rõ ràng  Có nhưng không được salon giới thiệu rõ ràng  Không 8. Những điều bạn quan tâm khi quyết định đến một salon tóc. Có thể chọn nhiều hơn một đáp án:  Hàng quen  Nhân viên có tay nghề 18
  19. 19. DILO Hair Salon 2011        Nhân viên cởi mở Giá cả phải chăng Không gian rộng rãi, thoáng đãng Có nhạc và có trang trí đẹp mắt Hóa chất sử dụng an toàn, có thương hiệu Có nơi để xe ô tô Khác. Cụ thể: 9. Bạn thường tìm thông tin về salon tóc qua đâu?  Người thân, bạn bè  Website của salon đó  Trên báo  Trên các trang web tương tự như Muachung, Nhóm mua, vv  Khác. Cụ thể: 10. Kể tên các website bạn hay vào khi sử dụng Internet: 11. Bạn sử dụng Internet như thế nào?  Hằng ngày  Thỉnh thoảng  Hiếm khi sử dụng  Không sử dụng 12. Bạn muốn website của một salon tóc có những nội dung gì?  Thông tin về thợ làm tóc  Thông tin về sản phẩm sử dụng để làm tóc  Thông tin về giá  Thông tin về chăm sóc và xu hướng tóc  Tư vấn  Phần mềm thử kiểu tóc  Khác. Cụ thể: 13. Salon chúng tôi có ứng dụng phần mềm giúp bạn xem trước kiểu tóc có phù hợp với gương mặt bạn hay không, bạn có mong muốn được thử không? (Hoàn toàn miễn phí)  Có  Không 14. Bạn thích chương trình khuyến mãi như thế nào ở một salon tóc?  Không thích khuyễn mãi  Giảm giá nếu tới nhiều lần  Giảm giá nếu giới thiệu người khác cùng tới  Tặng quà  Khác. Cụ thể: Cảm ơn quý khách đã tham gia trả lời câu hỏi! 19

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