The Development of Salon Services - Essay Example

Evolution of the salon Services industry By: The salon industry provides people with choices to keep looking younger and healthier. History has proved how demands for beauty products have always been on demand. The paper will cover the evolution of beauty industry and how marketing has influenced this evolution. It will discuss the marketing methods used by successful salons and how these methods have shaped the beauty industry in general. In addition, the paper will reflect upon the development of salon services over time and how the industry could grow in the future. Introduction Though not everyone is a salon market analyst, there is no doubt that marketing is a tool that has enabled the beauty industry to evolve. In fact, statistics estimate that the salon industry will be a booming market as from 2017 (Jenster, 2005). The objective of this report is to discuss how marketing has influenced the demand for salon services. Beginning a salon business is not easy. It requires investments in time, labour, and opportunity costs of working somewhere else (Ellis, 2010). The world market is crowded, and few customers are fickle, therefore, the salon entrepreneurs require ways to tackle these challenges. Market analysts argue that with good salon marketing, it would be easy to tackle any challenge in the market (Jones, 2008). Marketing Marketing is a difficult task that requires proper planning (Brown, 2012). Steady fast execution of the plans is an added advantage. Salon industries that have dominated the markets for longer periods of time have made simple and effective marketing plans. The owners of these salons knew what their priorities were, therefore making their plans simple and effective (Morris, 2006). The paper has a detailed analysis of marketing-related recommendations for the salon industry. During The past decades saw a perception that salons were ‘salon only’ retail facilities. Nowadays, after evolution of this industry, the salons go directly to the customers especially using online services. Literature reviews and studies indicate that the issue of diversion has been a challenge for most saloon owners (Lilien, 2012). During the past, most saloon-only products were diverted illegally. Surprisingly, during the past, some major saloons placed their products on retail shops rather than wholesale shelves (Entrepreneur Press, 2012). With increase in marketing tools, especially advertisements and the social media, not only the distributors of salon products will sell directly to the consumers, but also the manufacturers of these products (Schmidt, 1991). The innovations of online markets have made this possible. Furthermore, innovations in salon services have made this possible. Briefly, the paper will cover the concept of innovations in salon services (McKinney, 2003). Innovation in salon sector Innovation is making something no one else can do. Salons that incorporate innovations in their strategies are usually competitive and have both consumers and economic advantage. Factors that influence innovations in salon services nowadays include fashion, marketing, ideal image, ageism, celebrity statuses, and the economic power. Historically, factors such as hairstyles, body image, spas, hygiene, cosmetic ingredients, technology, economy, and the wellbeing of persons have been the factors that influence innovations (Nargundkar, 2006). The problem with marketing and selling marketing products online is that consumers will not know which the best product is. On the other hand, genuine retailers of salon products with no funds to market their products will experience shrinking of their businesses (Cohen, 2008). The interesting fact about marketing is the possibility of salon products manufacturers bypassing traditional product distributors, in order to sell to other stylists, who are interested in their products, at a wholesale price. If the above situation happens, there will be some marketing challenges. To be specific, there would be the challenge of lack of brand-specific education by the stylists. The traditional distributors have enough education because of their ever presence in the markets (Milady, 2012). Knowledgeable stylists are the best marketing agents. They could help smaller manufacturers develop and promote boutique. There will be many advantages attached to marketing by these knowledgeable stylists. For example, boutiques will thereby develop and supply products in correlation to the regional demographics and corresponding marketing materials (Bhattacharya, 2009). Marketing has influenced the evolution of the salon industry because it has made the private label retail to be more popular. Before the advancement of marketing structures, most consumers only bought saloon goods and services from online salons and retail stores. However, with the presence of good marketing structures, private label retail products have been able to hit the markets. Most customers perceive private label salon products as expensive. Therefore, customers are attracted to salons that sell these products because they perceive those salons as important and successful. In addition, private label salon products are unique for certain regions and would meet unique targets of the market (Sherrow, 2006). Marketing influenced salon owners to offer truly exceptional client service. Experts in marketing argue that in order to sell salon products effectively and to command the consumer markets, it is important to develop a level of quality service and a total salon environment. Most salons initiated projects to improve client experience and became more innovative to give their salons a competitive advantage. Salons that implemented their projects attracted more customers and they earned more profits. Owners with such salons charge higher prices because of the quality of services they offered. In the end, they maximized their profits and created a high level of demand in their products (Black, 2004). Good marketing enables the customers to differentiate between selling to them a ‘feeling’ or just a service. Marketing enabled most salons prosper because it showed how their services are different from other salons. It enabled successful salons create something that is not replicate able by other salons (Mernagh-Ward, 1997). Marketing caused booth rental prices to go corporate. Almost 90% of salons worldwide rent booths. Most building owners develop salon spaces, and then rent the spaces to stylists. The stylists would use the space to create a salon, set their prices, run their businesses with freedom, and make their business decisions. Because the building owners are aware there is a huge demand for salon products and services, they charge higher rents. The main point here is that marketing is the tool that has caused the evolution of booth rental markets. The evolution brings both challenges and opportunities. It will bring competition among salon owners, and most building developers will develop more salon space, thereby increasing the number of salons (DAllaird, 2012). Experts predict that the growing booth rental market will cause the salon industry to evolve more. The paper will discuss six ways in which the booth rental market may change the salon industry (Halady, 2010). 1. Empowerment of the educational foundation Schools and institutions that train cosmetology may increase their entry requirements. The increase in entry requirements will cause longer training programs. The longer program is to ensure stylists can run their salons. 2. Trends in New software, applications and technology With new developments in this sector, stylists could benefit a lot. There would be the development of technology in the salon sector, such as online scheduling, bookkeeping, marketing and such. This will be very advantageous to booth renters. 3. Suites of specialists sharing resources Marketing has caused salon suites to gain attention. Most salons are looking for stylists who can collaborate with other independent salons. It will allow these stylists to pursue their individual areas of passion. Booth rental will enable groups of beauty professionals to come together and share retail spaces and sales, and even clients. 4. Opportunities for consulting, continuing education, and business services There will be the availability of many independent salon owners, hence increase in demand for more expertise, training, and services. 5. Salon retail will transform Salon booth rental market will change the face of salon professional retail. Most salons will get out of the retail game. Therefore, there will be a need for evolution of salon retail strategies. 6. Evolution of salon distributors Salon distributors have long been known as ‘sales people’. However, they can also provide expertise, information and ideas concerning salon products and services. With the increase in booth rental market, the salon distributors could take up new roles such as trend forecasters, industry intelligence analysts, business consultants, marketers, and such. In addition, these distributors could become booth renters. They may come together and form a pool of booth renters. For distributors who offer education, they will deliver their services at subsidized rates to booth renters and salon suite business owners. Most value-priced salon brands have more mega-brand-marketing attention because of the presence of good marketing structures. Salons’ sales depend on the ability of the stylist to attract more customers. Therefore, it becomes so easy to sell a larger volume of value-priced products. However, if these clients cannot attract more customers, the salons may use value-priced options. Studies indicate that promoting few products is helpful to customers because they will recognize what is important quickly. Therefore, removing many choices of products makes it easier for consumers to purchase products (Jones, 2010). How Salons conduct marketing Players in the beauty industry admit it is not an easy task to promote salons. These players often maximize their marketing efforts in order to keep their businesses ahead. Salons that have evolved from the past have followed simple steps to reach the top. The paper will categorize the steps into three parts (V.T., 2014). 1. Getting found Before beginning their businesses, the salon owners made sure their customers knew the location of their salons. The paper will discuss four ways of making the business accessible to the customers. (a) Building web pages Most salon owners started with the basics. They build basic websites that showed the description of the salon. Websites are good marketing tools, provided they are visually appealing, include relevant information such as prices, and contact information. Big salons include special keywords, making their website pages ranking higher than their competitors do. (b) Listing of the salon on web directories This is the second procedure most salons undertake after developing their websites. Salon owners list their businesses on top website directories, for instance, yahoo. People can link to the salon’s website, thereby catching their attention. Listings of salons on top directories enable the people to find the business through many avenues. In addition, the salon will appear faster in web search results. Most past salons included enhanced content that made their businesses become verified merchants on most sites. It enabled them grow immensely. (c) Creation of social media businesses pages Though social media is fun, it is a very good marketing tool. It is a tool that has helped most businesses to evolve. The big three social sites are Google, Twitter, and Facebook. Salons that use the social media have reached a massive untapped pool of customers. The salons then develop good relationships with these potential customers. Social media analysts argue that it would be an added advantage if salons would include their URL on their advertisements for the customers to follow up later. (d) Finding local allies Salons make their selves visible by forming business coalitions with local businesses. For example, most salons combine with fitness centres to form business coalitions. 2. Getting customers After making their business visible, it is time to look for customers. It is not an easy task to convert a potential customer into a paying customer. There are marketing strategies that most salons used in order to get these potential customers (V.T., 2014). (a) Using of Call-to-Actions Most salons that are successful rely on their business websites, Facebook pages, and Twitter handles to call-to-action. For example, the business may call for a free consultation. Promises such as this will convert potential customers into paying customers. (b) Promote a daily deal This means collaborating with other websites to promote offers on a large scale. With this in place, discounts have to be higher than small incentives because customers will cover its costs. However, the business has to be worth it before trying this alternative. Small businesses that cannot collaborate often run their deals on their own, such as through their social media pages. (c) Run a contest Salons that have established websites and social media pages sometimes run a free contest to taste the waters. The business will interact with the current customers and at the same time build new customers. For example, a salon may encourage a customer to share their competition with a friend, by offering an incentive such as an additional entry to their raffle. (d) Use of Word-of-Mouth Apart of encouraging word-of-mouth using social media and contests, salons may give incentives to their customers to bring in friends by offering discounts. Most salons have used this option by offering free products or services to anyone who brings a friend. Market analysts argue that customers are the best marketing tool for the business. 3. Get repeat After making the business visible and acquiring customers, the salons marketing is not over. By marketing the salon, the salon owner does not only look for new clients, but also promoting the salon to existing customers. Salons that have prospered have created a repeat business (V.T., 2014). (a) Email marketing Maintaining contact with the customers is the way to keep the business alive. A common and easy way most salons use to maintain contact is through email. Nowadays, almost everyone has email accounts. Salons that are developing market their business effectively using email services. The subjects of these emails are always strong and have words such as ‘limited time offer.’ Market analysts argue that salons that have achieved success followed easy steps, for instance, collecting emails from customers. The salons then used the emails to re-market the salon. (b) Social media Email marketing is useful for one-way messages. However, social media tools are great for two-way conversations with customers. Most salons that did not have social media pages are now posting pictures, videos, testimonials and more on their pages. These posts are meant to attract new customers, and more importantly, maintain the current clients. Furthermore, salons with pages usually respond to customers’ posts. It creates good interaction with customers. (c) SMS marketing SMS marketing is the most underrated marketing tool. However, most salons have evolved after marketing their products and services using text message marketing. SMS is simple and effective. Some successful salons collect cell phone numbers, and they use the numbers to send special offers to the customers (Gillin, 2010). (d) Starting a blog Blogs will always keep the customers aware of the progress of the business. In addition, it also influences the standings in search results on web pages. Salons nowadays use blogs to post interesting and relevant articles, beauty tips, new services, and unique story that covers a testimonial from a customer. Blogs will maintain the current customers and attract potential customers (Skrob, 2013). The future of salons (i) Conscious consumerism will make salons thrive in the future In the future, most salon customers purchase salon products while considering factors such as their health, environment, and overall wellbeing (Schenck, 2012). The above graph indicates how salons’ client loyalty increases directly with respect to the salon’s level of social responsibility. During the past years, salon clients did not ask beauty professionals many questions. However, recent times customers have been asking questions such as which products were used? If the products were tested? or if the products contained animal by-products. Therefore, salon professionals have to include factors such as healthy standards of the products, on their marketing tools. Salons have to be prepared to prepare to make their customers feel good about making themselves looking good (Adrian, 2003). (ii) Big beauty is a liability for salons In future, salon owners have to understand that only transparent niche boutique brands will enhance their image. By using big beauty brands, salon owners will be increasing scepticism in their customers. These brands have made many people angry. For example, many customers are distrustful of big brands such as L’Oreal. (iii) Organic salon industry is expected to grow immensely Statistics and studies indicate that the organic salon segment is growing rapidly. Unlike the past, customers are now concerned about their health and wellbeing. For example, with the emergence of salon-cancers, salon clients have now become more responsible on their health. Customers can access important information on the internet and majority of them have concluded that there are dangers in beauty products (Jensen, 1996). Salon owners who wish to rule the future markets have to invest heavily in natural, organic, and healthier products and services. Chemical analysts argue that organic beauty products lack toxic chemicals, and they contain inviting aromas (Scott, 2010). (iv) Customers will continue to invest in organic salon products through 2014 and beyond Salons that offer organic products charge higher rates than the other salons. Salon owners should not be worried that they will lose customers to cheap salons. They however should continue marketing their products, because organic products customers have demonstrated willingness to pay even higher (Möller, 1995). Nowadays, organic products are in very high demand. Advertisements indicate how these products are environmental friendly, natural, sustainable, and socially responsible. Therefore, consumers are aware that products that come with integrity are always expensive (Moore, 2002). The innovations of organic products have shaped the salon industry for good. The world has become more sensitive to issues affecting the environment and personal health. They will become more and more sensitive beyond 2014 (Woodbury, 2010). (v) The indicators of salon success in the future include; Ability of stylist to sustain customers and attract customer loyalty, ability of stylist to attract new customers by differentiating their products and services It is obvious that salons will become successful if they maintain current customers and attract potential clients. Attracting and maintaining customers determines development of client loyalty. Salons that attract many new customers have stood out competition. The future trend to watch is that in order to maintain customers and attract potential clients, salons have to emphasize more on product selection than quality of service (Morris, 2006). Recent surveys indicate that customers are not attracted to a given salon because of quality of service, but rather the availability of a variety of products on offer (Griffiths, 2008). All stylists are trained professionals, but the difference comes to a combination of products, creativity and training. Without combining these three factors, it will be hard to maintain customers. Therefore, in order to attract more customers in the future, salons have to differentiate themselves from their competitors (Baer, 2013). Conclusion Beauty industry is comprised of diverse yet unrelated set of business lines. With time, these businesses have faced evolution, and marketing has been an influencing factor (Hutt, 2012). The paper has conducted a detailed analysis of how marketing has influenced the evolution of the beauty industry. The paper has shown how beauty industry products can be separated between goods and services. However, after this separation, there still exists a wide range of business models on target markets, production processes and location. The paper discussed how successful salons marketed their products and what measures they took to maintain the clients. 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