Competitive Advantage of Remodeling Salon - Assignment Example

THE REMODELLING SALON Table of contents THE REMODELLING SALON 1 Table of contents 1 The remodeling salon 2 The Brainchild of Remodeling salon 2 Background of remodeling salon 3 Distinct products offered by remodeling salon to her clientele 3 Holistic treatments 4 Current research in place 5 Number of Employees 6 Annual revenue 6 Objectives and goals of remodeling salon 6 Mentors into the Remodeling salon 8 Competitive advantage of remodeling salon 8 Future competitive advantage for the remodeling salon 9 Marketing and promotional strategies 10 The proposed remodeling marketing mix after relocation 11 The future of remodeling salon marketing 12 Strengths of remodeling salon 12 Weaknesses of remodeling saloon 13 Opportunities in place for the Remodeling salon 13 Threats to development of remodeling salon 14 Remodeling salon customer segments 14 Customer profile of one of the customer groups 15 Hypothetical budget for next 12 months 15 The remodeling salon OWNER : George Kenneth T. Partners: : Catherine Awour N. : Elizabeth Waititu G. : Florence Kamau W. Year founded: 2006 The Brainchild of Remodeling salon Remodeling salon began her operations two years ago with the one aim of “returning husbands home”. The initial survey carried out by George Kenneth T. produced an insight that the likelihood of a married man beginning dating was due to a turn-off of their spouses hairstyles. Remodeling salon rolled its operation with the aim of improving the hair-do of women, to add a new look impression to a woman and help add value to their homes by increasing spouse relationship stability. According to George, adding value to marital relationships was a way of reducing incidence rates and prevalence rates of sexually transmitted infections. “Remodeling salon was geared towards bringing about a psychological healing and biopsychosocial healing of marital relationships” noted George Kenneth T. On the same note, working women and fresh graduate ladies were not making a positive first impression on their interviews and this contributed significantly to a high turn-down of many qualified women. Background of remodeling salon Many women were suffering from crumbs of their hair being uprooted as they combed it or shampooed it while others suffered thinning of their hair on their scalp. These groups of women were in distress because they had knowledge that they were loosing their hair a factor that reflected on their low self-esteem and decreased self confidence. Distinct products offered by remodeling salon to her clientele Range of hair products a. cutting b. coloring c. hair extensions Service treatments a. Waxing b. Eyelash tinting c. Eyebrow tinting d. Body piercing e. Facials f. Pedicure g. Manicure h. Body tanning i. Thermal body treatment Holistic treatments a. Massage b. Reflexology c. Aromatherapy Products at the counter of remodeling salon tuckshop a. Luxury hair products b. Hair straighteners c. Skin care products d. Nail varnishes Products available on order a. Bridal hairdressing b. wedding hairdressing Auxiliary Services provided by remodeling salon a. Psychotherapy b. Internet browsing and internet chat rooms c. Hair counseling d. Nutritional counseling Current research in place Remodeling salon has specialists in who carry out testing and analysis on hair loss and thinning Hair loss and thinning Remodeling salon takes time to analyze specific factors in the client that might have led into thinning and hair loss by qualitatively analyzing if the cause is environmental, genetic, hormonal, medications and making follow up to help the client regain healthy hair. Remodeling salon outsources client specific hair conditioners, hair food products and hair shampoo that are tailored to meet client’s hair requirements. Remodeling salon determines medical treatments that predispose hair loss and thinning and provide advice on alternative medications that can manage hair loss and hair thinning effectively. Remodeling salon has nutritional recipes for women who have problems related to hair loss and thinning of hair based on environment conditions of the client and genetic factors. Number of Employees Pensionable hair dressers : 22 Freelance hair dressers : 37 Pensionable nail care specialists : 8 Freelance nail care specialists : 15 Pensionable massage specialist : 9 Freelance massage specialists : 33 Freelance dermatologists : 18 Freelance psychologists : 2 Freelance nutritionists : 54 Annual revenue 2006-2007 USD 1.8 million 2007-2008 USD 2.4 million 2008-2009 USD 2.1 million salon (for Q1 and Q2) Objectives and goals of remodeling salon a. To develop a website that will be able to I. Provide online access to all remodeling salons products and services. II. make remodeling salon to announce her new products to her client base and be able to reach a wider market online III. Will make e-commerce of remodeling easy IV. Will make it possible for the remodeling salon to launch its new online chat room with its clients b. To be able to attain a potential where remodeling salon will be able to cost-effectively use media as marketing tool including use of newspapers coupons, and flyers and in flight media marketing c. To develop affiliation with hospitals and research institutions in order to improve remodeling salon competence in evaluating and investigating skin care and hair care products depending on their sensitivities on both dry, wet oil and mild skins. d. To have a fully operational nutrition clinic on hair and skin treatment without use of chemical derivatives whether synthetic or natural and be able to attain an organic hair and skin care oriented program that is sensitive to the climate changes e. To create a liaison with cosmetic industries in research for long term side effects of over-reliance on different skin care and hair care products. f. To start advertising through bus wraps and bill boards. Mentors into the Remodeling salon George Kenneth T., the pioneer and owner of remodeling salon was doing his routine rounds in the women ward assessing medical conditions of the admitted patients when he across a patient (name withheld). He observed the women had burns on her hands and face coupled with loose hair that was pale. Upon asking the patient how she got such severe burns when she was a safety officer in a chemical manufacturing plant, the woman replied that she suffered a cosmetic burn following her use of hair products and skin care products that were very sensitive to her skin. Although the patient understood all precautions of determining her skin sensitivity to cosmetic products, she succumbed to serious cosmetic burns in her effort to improve her look and save her family. Her husband had shown withdrawal symptoms to their relationship and although she had not sought counseling, she had made conclusion that her husband’s withdrawal was subject to her skin softness and loss of elasticity. Competitive advantage of remodeling salon Remodeling salon offers freelance hair dressing and a nail care services. The clients pay for the chemicals that are used and a fee that is determined by the remodeling salon Remodeling salon stocks the best quality fragrances and perfumes and is the sole retailer of the products to her customers. The customers places orders through Telephone call or e- mail (through her a yahoo- email) or a text message via the remodeling salon cell phone and the products are delivered via courier service depending on the geographical location of the client. The fragrances are engineered by Drom Company in Germany, the producer of world’s favorite fragrances among the upper market clientele. Remodeling salon offers e-mail skin care counseling for clients who reside far from the territory covered by the freelance specialists in their data base. Future competitive advantage for the remodeling salon Remodeling salon is in its final stages of developing a website that would position it to serve its client base better. Remodeling salon will incorporate a chat forum (an online conference facility) for clients who have access to internet services or are subscribed to e- mail- sms service through their mobile phones Remodeling salon is on its final stages of securing affiliation with hospitals and research institutions in order to provide client- centered solutions on hair care and skin care products meet the client skin and hair care requirements. Remodeling salon is on its final stages of securing online or internet telephone services in order to reduce telephone costs that she incurs. The targeted low cost voice over internet protocol (VOIP) will lead into increase in profits. Remodeling salon wishes to start a hair care and skin care therapy educational training in order to increase her current campaigns for healthy use of cosmetics. Remodeling salon hopes to retain the best candidates who will serve to widen her current customer base. Remodeling salon wishes to carry out research on substitute herbal products that will eliminate use of mercury and other synthetic skin brighteners that although they have been banned from commercial use, they are still penetrating the consumer market through the black market. Marketing and promotional strategies The marketing scope of remodeling salon is meant to is to create awareness of her services, inform prospective women on remodeling salon hair care and skin care services and how they improve “quality of life” as well as informing her current customers on her products. Remodeling salon prepares calendars, educative catalogues on disabilities that can result from unsupervised skin care and hair care products, and opportunities that are present for the hair care and skin care industry. Remodeling salon marketing methods Current remodeling salon marketing methods a. Word of mouth through customers referred to remodeling salon by the satisfied customers on the excellence of service provided b. Running adverts on the parent magazines and lifestyle magazines c. Running feature articles weekly on sustainable hair and skin care management d. Sponsoring bright students in universities who market their skin care and hair care services and products e. Provision of T- shirts that define remodeling salon corporate image and corporate responsibility f. Taking part in education fairs on skin care and hair care After relocating to her new offices in three months time, the current marketing methods will be replaced by a new framework of marketing mix to match her new status The proposed remodeling marketing mix after relocation a. Developing and improving on her current public relations. Remodeling salon recognizes that competent public relations is not a salon sales tactic but an identity building tactic for her corporate image, brands and products b. Development and improvement of consumer promotion: remodeling salon will start to offer refunds and discounts for any unsatisfactory done work. c. Improving on her advertising: Remodelling salon will strategize on key success factors that can improve her better market penetration, increase her customer base while retaining her current customer base by identifying herself with competence and customer centered care approaches d. Improving on her Personal selling: Remodeling salon will begin to use sales representatives for marketing her services and increase her current sponsorship program The future of remodeling salon marketing a. Creating offers that no beauty competitor can match b. By using marketing techniques that have been tested and proved worth the risk by others players in the market c. Eliminating discounts and offers d. Using direct mail marketing Strengths of remodeling salon a. It is backed up by competent qualified personnel in hair and skin care who provide analysis of clients and prescribe the best hair care and skin care solution for their hair and skin care problems b. Remodeling salon has a detoxification facility that is not owned by other players in the beauty market. The detox facility is used for removal of toxic compounds in the body that can affect quality of life. Clients for the detox program are accessed to determine their medical compliance with use of the detox program. Those who do not qualify for the electrically run detox facility, they are referred to the nutritional supplement section of remodeling salon that is manned by a specialist on recommended anti-oxidants that have the same result as the detox treatment procedure although nutritional supplementary diets take a little longer but very safe for those who cannot be on the detox due to health and medical reasons. c. Remodeling salon carries out assessment of a client in order to generate a possible remedial action. This process is carried out manually via remodeling experts as opposed to computer generated diagnostic tools that can overlook crucial underlying causes of skin care or hair care problems of the client. Weaknesses of remodeling saloon Remodeling saloon does not have a website for a 24-hour client access but this is supplemented by remodeling 24 hour e-mail service, 24 hour sms-e-mail service for clients who use mobile phones and efficient courier agents who deliver products to clients on time Opportunities in place for the Remodeling salon a. Remodeling salon is considering acquiring major saloons that have fallen short of customers due to the client- centered model of remodeling salon. b. Remodeling salon is considering setting up international outlets that will operate under remodeling salon ethics of care by seeking affiliate hospitals and research centers in the destination countries c. Remodeling salon is considering setting up online educational training centre (a virtual skin and hair care program for students in different parts of the world, who have access to her target clients in order to provide relevant training that will measure to remodeling salon protocols and standards of practices that define and are associated with remodeling salon Threats to development of remodeling salon a. High taxes levied on foreign products in her proposed international outlets b. Lack of competent affiliate firms that can practice hair and skin care services according to guidelines of remodeling salon c. Culture and traditions although they also come as strengths d. Market penetration especially oversea areas where corporate networks services interests of their businesses Remodeling salon customer segments Upper market clients a. Elderly women above 50 years of age who are retired b. Middle aged women who are employed and hold high profile positions in their companies c. Female business owners and managers d. Students in universities and colleges Middle class clients a. Corporate employees b. Teachers, lecturers and tutors in colleges and universities Customer profile of one of the customer groups Career : Journalists (media) Position : News anchor in a TV station. Time schedule : Morning 8-10 AM daily Discount advanced 30% discount Classification : Upper market client Payment method : visa card Hypothetical budget for next 12 months Particulars Expected monthly cost(USD) Launch of website 500.00 Launch of online chat room 200.00 Launch of online training program 5000.00 Launch of nutritional therapy wing 3,000.00 Acquisition of additional detox facility 11,000.00 purchase of 4 courier vans and 4 motorbikes to stop reliance on Agents 12,000.00 signing of agreement with FedEx for international courier services 6,000.00 Internal restricting program including new staff 13,000.00 Rent for the new offices (three months) 5,000.00 Advertising (for the skin and hair care products) 2,000.00 Advertising for online students through affiliate institutions 4,000.00 Advertising for affiliate salon oversea 2,000.00 Sponsorship program for students in hair and skin care colleges 12, 000.00 Increasing freelance hair dressers where they have no presence 4,000.00 Costs of transporting her products to freelance hair dressers where remodeling salon has no presence 5,000.00 Total 84,700.00 Read More