Hair Salon Marketing Plan

1. Stratosphere Salon
COMM 468, Section 101
Colette Cheung 70875091
Jessica Greschner 27722107
Jasna Kamenjas 24980096
Daniel Kong 41960097
Hannah Martin 27435106

2. Agenda
Situational Analysis
Goals & Objectives
Core Strategy
Conclusion
Situation Analysis
|
Goals & Objectives
|
Core Strategy
|
Conclusion

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. Customer Analysis
Identified Segments
Young
Trendsetters
Situational Analysis
Davie Street
Guys
|
Goals & Objectives
Business
Professionals
|
Core Strategy
Mama Bears
West Side Moms
|
Conclusion

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. Competitive Analysis
Competitive Benchmark / Matrix
2
Situational Analysis
4
|
3
Goals & Objectives
5
|
5
Core Strategy
5
1
|
2
Conclusion

26. SWOT
STRENGTHS
WEAKNESSES
OPPORTUNITIES
T H R E AT S
Situational Analysis
|
Goals & Objectives
|
Core Strategy
|
Conclusion

27. Goal & Objectives
Improving the Stratosphere Marketing Mix
Situational Analysis
|
Goals & Objectives
|
Core Strategy
|
Conclusion

28. 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

29. 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

30. 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

31. 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

32. 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

33. 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

34. 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

35. 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

36. 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

37. 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

38. 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

39. 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

40. 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

41. 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

42. 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

43. 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

44. 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

45. 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

46. 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

47. Appendix 2
Competitive Benchmark / Matrix
2
Situational Analysis
4
|
3
Goals & Objectives
5
|
5
Core Strategy
5
1
|
2
Conclusion

48. 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

49. 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

50. 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

51. 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