Executive Summary
The present marketing plan presents the Bossy Hair group profile as well as an overview of industry and situational analysis for the group. A comprehensive overview of the SWOT and industry, on the whole, gives insights on marketing strategy to follow to retain existing and attract new customers, who would become regulars. Thus, the plan identifies a direct marketing problem and offers marketing focus, objectives, program as well as tactics for the marketing plan implementation. The final part provides information on the evaluation and control of the marketing plan implementation.
Company description
Bossy hair is a group of franchised hairdressing salons, which started operating in 2000 and franchising in 2004 in Brisbane, Queensland, Australia. The salons of the group provide luxurious services to men and women. Each Bossy hair salon is owned and operated by franchisees on an individual basis. Bossy hair salons pride themselves on superb-quality services of hairdressing with innovative and stunning colors that provide excellent value to the customers. With its slogan “exclusively for everyone”, Bossy Hair group has positioned itself as a provider of superior service and products to all clients at an affordable price in convenient locations appealing to all family members. The group has managed to position itself on the high-end of the service providing due to high standards for its hairdressers, who are specially trained for high performance and consulting. The country selected for expansion in Germany. In this country, Bossy Hair will provide unique services for diverse customers.
Strategic focus and plan
The strategic focus of the Bossy Hair group is providing hairdressing services with superior quality and value for the customers. The efforts are incorporated with the group’s mission and vision as well as with the corporate culture instilled in the team, which according to the company’s belief are the things that can bring a big difference.
Situation analysis
Situation analysis provides an insight into the group’s position within the hairdressing industry as well as an overview of competitors, customers, industry trends.
SWOT
SWOT analysis outlines Bossy Hair group’s key strengths and weaknesses as well as describes opportunities and threats that its salons may face in Germany.
Strengths
- Established brand equity and name in the industry
- Strong and business committed franchisees
- Well-trained employees with high standard skills and creative customer-focused approaches
- Convenient locations and physical evidence elements in the salons, which are located on their own separate from other entities’ facilities
- Luxurious services of superior quality
- Affordable competitive prices
Weaknesses
- Lack of efficient marketing efforts to attract more new customers and retain existing
Opportunities
- Change cost structure by efficient marketing campaign (though the short-term effect will be increase in cost, the long-term effect would be greater profits due to incomes from wider regular customer base)
- Provide additional beauty services, e.g. cosmetic services, manicure, pedicure, etc., that would allow many customers to receive one-stop services
- Emphasize catering not only men and women hairdressing needs but also children hairdressing services that would refer to whole family needs
- Establish an efficient CRM system to better cater to the needs of existing and new customers, which would allow saving marketing costs in future
Threats
- Tight competition within the hairdressing and beauty industry
- Sufficient decrease in households’ disposable income
- Change in hairdressing preferences and fashion
- Changes in traffic nearby locations of the group’s salons
Industry analysis
According to IBISWorld Industry report on Hairdressing and Beauty Salons, the main sources of problems within hairdressing industry include lack of working capital, general lack of management and marketing skills, completion being based mainly on prices, cost pressures due to salons’ overstaffing, low productivity, and lack of profitability. Hairdressing industry highly depends in changes in household income that affect the demand for higher priced value-added services and hair care product sales, which are the core business of Bossy Hair group. Other key factors that impact demand for hairdressing services are fashion and demographics of the population. However, the industry has been evaluated as of low level of volatility.
The key success factors for the hairdressing industry have been identified as follows:
- Having links with suppliers
- Having a comprehensive range of specialist equipment and highly professional staff
- Proximity to key markets – location in a high profile location, with significant passing people traffic and with convenient parking.
- Having a loyal customer base – building a base of satisfied customers, to retain repeat and attract new customers, who would become regular loyal customers.
- Ability to control product and supply stock on hand as it affects liquidity and cash flows
- Having the necessary hair styling skills and technical skills to provide a range of required and offered services.
- Keeping up to date with styles and fashions.
- Ability to adjust goods and services in favour of market conditions – follow the latest hair styles fashion and trends.
- Efficient positioning and marketing of differentiated products – moving away from competition based on prices mainly, by offering value-adding quality service.
Although the industry is characterized by tight price-based competition, there is potential to further growth for franchised or chain companies, who are able to establish their brand equity.
Competitors
Potential competitors of the Bossy Hair group are all other hairdressing salons that operate in Germany. A number of hairdressing services providers is quite high, which guarantees tough competition based mainly on prices. However, the major competitors are the salons that are located in the proximity to the group’s salons and operate in higher-end hairdressing market. In terms of salon chains, main competitors are Stefan, Oscar and Sublime in terms of a chain of salons. Another segment of competitors is represented by “backyard” hairdressers, who provide professional hairdressing services at their or customers homes at lower prices.
Customer analysis
Each of the group’s salon has a base of existing customers whose data is entered and kept in the salon’s database and accessed by specialised hairdressing software. The Bossy Hair group salons cater to the needs of men and women appealing to all family members. However, the female segment is larger than male. Demographic characteristics of average female customers of the Bossy Hair group are:
- Age of 25-45 years old;
- Professional;
- In a relationship;
- Have children still at home;
- Live within 5-10k radius of salon;
- Visit salon every 6-8 weeks;
- Usually have a cut every visit or at least most visits and a colour/foils most visits.
Marketing Mix and Projections
This product pricing presents different problems from those of pricing mature products. New products place the manufacturer more or less in a monopoly position, but one that will erode. They also create situations in which price reactions are largely guesswork. Advertising will be used as complementary or supplementary market-communications activities. Their respective roles depend on company products, customers, and markets. In other situations, such as in making industrial sales, personal selling is usually the most important component, while advertising may be a supplementary activity that helps create awareness. In either case, both should be coordinated by marketing managers. Salesmen should be aware of advertising plans and programs, and advertising campaigns should be developed within the boundaries of sales tasks, both of which should be viewed as mutually supporting functions (Tayeb 2000).
The short term plans are to maintain strong image of the saloons and attract diverse customers groups. The long-term plans are to increase number of saloons from 15 to 100 in 5 years. Each Bossy Hair group’s salon is responsible for maintaining CRM with their own customers and marketing efforts in attracting new customers who potentially may become a salon’s regular clients. Although, female population of customer base is identified to have children still at home, the group’s salons do not emphasize catering to the whole family needs, namely catering children hairdressing needs.
References
Tayeb M. International Business: Theories, Policies and Practices, Harlow, Pearson Education, 2000.