Concept B, titled "The Hair Bible for Real Women", is recommended over Concept A. Data analysis showed Concept B performed better in the key criteria of probability of purchase, distinctiveness, and likeability. The Hair Bible would be a simple, low-cost publication featuring photos of real women and their hair journeys using P&G products. Distributing the book through hair salons would improve brand equity and relations with hairdressers by providing education and consumer awareness, ultimately improving sales. A timeline is proposed to create, publish, and evaluate the book concept over 11 months.

1. Selling Secondary Services:
A Strategic Recommendation
Group 5: Salvatore D’Elia Emilie Demichele
Yuner Teh Giacomo BarlettaJacopo Solimene

2. New Entrants
Small probability of new competitors due to
strong entry barriers.These include:
- High investments in promotion, distribution
channels and research and development
- High inventory costs
Rivalry Between Competitors
- Few small companies and MNCs
- Competition is very intense
- MNCs have larger capital resources for
marketing of their products and cross selling in
several countries
- Most important factor is advertisement
Customer’s Bargaining Power
(Hairstyle Salons)
- Bigger distribution chains have high
bargaining power and influence prices
- Small retailers have low bargaining power
due to small purchase volume
Substitute Products
- No real substitutes or future innovations that can
pose a successful threat
- Only minor threat are self-care retail products
that are unable to give equal benefit
Suppliers
- Many suppliers but none of them represent
a threat as a new entrant
- Easily differentiated and thus easily
changeble.
- No real risk in price nor for critical supplies
Low risk
No risk
High risk
Low risk
+ Many suppliers
+ Commodities market
+ Low differentiation
+ Focus on product quality
+ High brand power on
domestic market
+ Constant product innovation
+ Brand loyalty
+ High listing costs
- Evolution of private labels
+ Possible switches to the
product portfolio
+ Lack of product
differentiation
+ Concentration of players
- Global competition
Average risk
PORTER’S MODEL MARKET ANALYSIS

3. Sampling
Pre-Screening a mixture of salons were sampled randomly all
over Milan.This was done so as to gain a precise undestanding of the
general demographics and background of all hair salon goers.
From the pre-screening, it was discovered that woman from age 20
to 25 and 35 to 50 went to the hair salon more often and
would also spend more.Furthermore, women were also highly
influenced by their peers in their hairstyling choices.
Sampling for Interviews Random women in the relevant age
groups were chosen while they waited for the hairdresser in various
hair salons around Milan.This ensured that they were within our
target age group and hair salon goers.
Sampling for Focus Groups We chose women
with homogeneous attributes (age, status, purchase behavior) and
grouped them together in order to understand how they influence
each other.There were two focus groups, one for each age range.
* The group unanimous decision was to use both focus group and
in-depth interview because each method has some advantages that
fills in what the other method lacks.Above all the union of both data
makes them more pertinent.

4. Focus Group
Data Analysis
Beauty is extremely important in lifestyle context for both age groups and
hairstyle plays an important part in beauty.
Hair is also important for reputation.
The hairdresser is a friend and
influencer for all.
Cost is a crucial factor for all age groups.
There are unmet needs and unsatisfied wants for
secondary products, especially in longevity of effect.

5. In Depth Interview
Data Analysis
For the those who do not purchase any secondary services, the most important barrier is
disinformation.
In fact, most of these women have no information about benefits and uses of these services
and products and thus do not feel the need to try them.
Price is also a discriminating element; high price is often cited as a reason for non-purchase.
However, looking at their spending range on their ideal product, it is immediately clear that their
hypothetical range of price (20 to 30 Euros) is the same as the range of
women who do purchase secondary services regularly.

6. Your Average Consumer
Spends 35 to
50 Euros per
visit
Cares about
beauty and
preventing
aging
Uninformed
about and
rarely
purchases
secondary
services
Visits once
a week
Spends 20 to
35 Euros per
visit
Visits every 2
to 3 weeks
Knows about
and purchases
secondary
services
Cares about
beauty and
social position
Influenced by
hairdresser
Sensitive to
price relative
to quality
20 to 25
year old
women
35 to 50
year old
women
Consumers who do not purchase are often uninformed despite
having unmet needs

7. Concept A
Title: Hair Image Consulting (Consulente di
Immagine)
Benefit:The professional hairstylist (parruchiere
professionista) will help you to improve your hair
health and beauty.
Reason to Believe:
Our hairstylist is truly a professional, who will
evaluate your hair and image personally, explain to
you how the products and services work for you
and show you the results on your hair immediately.

8. Hair Image Consulting
} Have hair as healthy and
beautiful as the stars,
courtesy of their own
hairstylist.
Ever wish you could have hair like a celebrity? Ever wish you could
discover what your true hair problems are from a professional? Ever
wish you knew and understood what types of products and services
will work for your hair and your personality?
Now you can, with a free appointment with our professional
hairstylist at your own hair salon.Through personal contact with you
and your hair, he/she will evaluate your hair and image.Then he/she
will choose the best products and services for you and show you
first-hand how to use them. Immediately, you will see the health and
beauty produced on your hair.
Interested?Your personal hairstylist will inform you of the date the
professional hairstylist will visit your hair salon when appointments
become available. Make an appointment with them for absolutely no
cost!
Love how your hair looks after the appointment?You will have the
opportunity to purchase whatever products and services used by
our professional from your hair salon.

9. Concept BTitle:
The Hair Bible for Real Women
Benefit:
You will understand what products and services can improve
your specific hair type as you grow older and the real effects
on real women like you.
Reason to Believe:
With before and after pictures, you can fully understand the
true effects of the products and services over time.Also,
with our expansive sections of different hair types and
problems, you will find the best solution for your own hair.
Your personal hairdresser will also assist you in
understanding your problems and the products. Best of all, all
our women are real women just like you and your best
friend.

10. The Hair Bible for Real Women
} You don’t grow older alone;
learn how other women just
like you keep their hair
beautiful with products and
services you can buy
Your hair is changing but no one seems to tell you what to
do. Even with generic advice, you have no clue what works
for your particular hair type and or problem.What is
everyone else doing?
The Hair Bible for Real Women is divided into many many
sections for each and every hair type and hair problem.You
will see pictures of real women at your age with the same
problematic hair as you. But you will also see pictures of
real women after treatment, with beautiful hair you can
have.The products and services they used are easily found
at the bottom of each after picture. Best of all, you can
purchase those products and services with a special
discount coupon at the end of the Hair Bible.
The Hair Bible for Real Women is available at your hair
salon, free for perusal while you wait during your hair
appointment.

11. Concept Test Survey Design
Two surveys were created, one for each concept. Each survey had
10 questions, divided over each of the 4 criteria
(Distinctiveness, Likeability, Believability and Probability to
Purchase) so as to measure the performance of each concept in
each criteria.
A Likert Scale was used to answer each
question.The survey was delivered face to
face to 50 respondents for each concept,
totaling 100 respondents.

12. Data Analysis: Comparing Scores
This graph compares the mean scores of each concept in each criteria.The vertical axis
represents the score (1=Strongly Disagree and 5 =Strongly Agree)
3.76
3.96
3.3
4.306667
3.135
3.46
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Likeability Believability Purchase
Series1
Series2
Concept 1
Concept 2
Graph 1.1: Mean Scores for Three Criteria
In the above three categories, scoring higher (more strongly-agrees) represents better
performance in that criteria.Thus, Concept 2 performs better in the criteria of
likeability and probability of purchase, while concept 1 performs better in believability.

13. Data Analysis: Comparing Scores
2.64
2.66
2.68
2.7
2.72
2.74
2.76
2.78
1 2
Concept
Distinctiveness
This graph compares the means score of each concept in distinctiveness. The criteria of
distinctiveness was graphed separately because the nature of its questions resulted in an
inverse indication of performance; a lower score is higher performance.The vertical axis
represents the score (1=Strongly Disagree and 5 =Strongly Agree).Thus, as Concept 2
has a lower mean score, Concept 2 performs better in distinctiveness.
Graph 1.2: Mean Scores for Distinctiveness

14. Strategic Recommendation
Based on the three more important criteria of Probability to
Purchase, Distinctiveness and Likeability, Concept B “The Hair
Bible for Real Women” performs higher and should be
selected.
Cost effective: The publication of this book will
have low costs as it is a simple publication.
Brand Equity: PG and/or its products
and services will sustain an increase in brand
equity as this book is well-liked by the target
population as found in this study.
Improved Relations with
Hairdressers: Through book
distribution, PG will indirectly gain more
personal contact with hairdressers.This
will secure their loyalty and provide insight
that can improve PG products, services
and thus, overall sales.
Furthermore, there are
several business advantages…

15. Month
Tasks
1 2 3 4 5 6 7 8 9 10 11
Book Creation and Publication
• Acquisition of Photos
• Creating problem sections and product descriptions
• Publication
X X
Educating the hairdressers to use the book and how to
present it to consumers
• PG to hold workshops for hairdressers
• For hairdressers who are unable to attend, PG
representatives should visit salons
X X X
Distributions in all the salons X X
Awareness of consumers X X X à à à
Evaluation of concept effectiveness through sales metrics
Specific Recommendations
Recommended Timeline of Implementation
Further recommendations…
Personal contact and personalized information from the hairdresser
along with the Hair Bible will increase sales significantly.
Special care must be taken in choosing women
who truly look like the average Italian
woman.