Market Analysis, Concept and Vision of Salon - Case Study Example

Name Tutor Subject Date My Salon A. Concept and Vision An individual’s hair is critical to how good they look. The hair determines the first impression people have of others. A positive impression can be obtained from just how good the hair looks. From an early age, I have always loved how well people look after they get their hair done. My passion is based on this, and I have always wanted to make people feel good about their looks. For the men, there are different kinds of cuts that are trending. However, not all people are for the idea. Older generations are not for the idea of sharp cuts and just love plain grooming. At present, many people go to a hair salon or barbershop to get their hair cut or groomed. The idea of professional stylists moving to people’s homes and places of work is not common. The idea of mobile hair stylists occurred to me when I ordered lunch over the phone. In a real sense, many businesses are now more mobile than ever because of increased competition especially in an increasingly globalized world. Globalization has had an impact on every sector of the economy. There is more competition as result of businesses that are able to offer services at low costs. I observed that the fast food industry is very competitive and some businesses had carved a niche by going the extra distance to take food to the customers. Similarly, taking the hair business to the people will be an attractive idea for a section of the population. In other words, the intense competition has made it necessary to come up with bold and unique strategies to do business. The solution will best suit those individuals that are too busy to wait on a line. For those that are incapacitated one way or another because of disease or accident will find these mobile services quite helpful. What is so compelling about the idea is the fact that people do not need to leave the comfort of their houses to get their hair done or clipped. The services will be quite helpful to all the people – both non-disabled and those that are not. In particular, the physically disabled will get to also look good just like their normal counterparts. Reaching these people will be empowering. Most of them are usually forgotten, and the traditional brick and mortar may be a big hustle for them. I do not have any individual experience on the mobile hairstyling market. However, I have worked in a food delivery business, and I know the challenges that are associated with such a business. Furthermore, there are opportunities related to being mobile and they steadily growing in the majority of the sectors (Scornavacca, Barnes and Huff 29). The best of all, the opportunity does not involve any intellectual property. While I do not know of anyone that has tried this kind of business personally, other industries have worked pretty well. In particular nations such as the UK and US, mobile salons, are doing well (Scornavacca, Barnes and Huff 29). This is despite that they form a small portion of the whole industry. The success of other industries is based on the convenience offered by such types of business. In times of inclement weather, people prefer home to home services. B. Market Analysis. The industry that hair styling and cutting belong is hair care and men’s grooming. The current society places a high value on attractiveness. Mainly, there are numerous advertisements continually reminding people, especially the women what it means to be beautiful. As a result, people are now more conscious of how they look. The segment pursued is hair styling and shaving. Among the most effective market research that can be conducted are interviews. Through interviews, it is easier to determine what the clients want and act accordingly. Men’s grooming has experienced significant growth. In actual sense, it has gone up by 300% in one year alone – 2005 (Larsen 19). Globally, the industry is expanding swiftly as they focus more on their looks. The biggest portion is hair care with shaving following closely. Hair styling for women is a lucrative venture bringing millions in revenues. The anticipated growth for the whole industry is more than 300% globally. However, as new kind of business, the growth is projected to be much lower than that. The best comparable data that best illustrates the growth of mobile barber and hairstylist is about 5% considering all the dynamics involved. C. Customers and Customer Development. In an attempt to determine what the customer needs are, a small survey was conducted. A section of the customers is for the idea of mobile barber and salon. Most of them like it because they will be saved from the hustle of having to wait long duration of time to be served in brick and mortar establishments. When it comes to the price that the customer is willing to pay, it is a bit higher than the conventional one – about three dollars. Mostly, they appreciate the convenience offered by the business. However, that does not hide the fact that the sector is poorly paid (Cohen 75). Therefore, there is a possibility that even those willing to pay extra to eventually push for price drops. Besides, nothing will stop in terms of their daily activities. The main route to reach this customer is through their places of work and homes. D. Competition and Positioning. While the idea of mobile salons is not new, the most popular are the brick and mortar salons and barbers. In other words, they are the primary providers and the largest source of competition. In the future, big cosmetics companies may attempt to venture into the business. For example, an organization such as Fair and Lovely desire having a place of their own based on profitability. Having these big players as a competitor would be both a benefit and a disadvantage. As a benefit, the business the organization will gain considerably since as many people will accept the new way of doing business. Regardless, as a result of the big players in the competition are high. Some of the barriers to entry include the attitudes of the customers who may be unwilling to let anyone into their homes. Additionally, the pricing may prove a problem. The customer may not see the need to pay more because of the convenience offered. Additional competitors may find it challenging to enter the market. Obtaining customer trust and loyalty is hard. Allies and partners can help me overcome the barriers by talking to potential customers and convincing of quality services offered. E. Business Model. A cosmetology license will be needed (Tsigonia 317). This means that styling techniques and sanitation will need to be demonstrated. This is the first requirement to appropriate licensing. Additionally, the business will be registered with the relevant authorities and pay the relevant fees according to the business structure – it will be a sole proprietorship. The first thing that is needed to start off is the equipment. There is no reason to have specialized equipment. The ones that are typically used in conventional salons and barbers are enough. They include hair clippers, brushes, client covers, combs, scissors, rollers, blow dryer, tongs shaving lotion, hair styling products and hair products such as weaves. Mainly, these tools will need to be carried around in the vehicle. Therefore, these devices will need to be portable and easy to move from one place to the other. However, a stationery room within a chosen location will be rented for inventory storage. A logo that will be printed on the apron, postcards, on the vehicle and other equipment will be designed. Other dynamics such as the parking restrictions and fees, fuel prices and the distance that needs to be covered will need to be determined. The plan is to be confined to one geographical location to keep the costs at a minimum. Most importantly, liability insurance will be taken to safeguard against any negative reactions the client may have on the application of any cosmetic product. I will make money by going to the customers' location and doing their hair job. Every hairstyling technique or clipping will have a fee. Initially, the client will be handed a standardized price list. However, negotiations on the pricing will be done. The primary objective when starting out is to obtain customer loyalty. The business is expected to be profitable after a particular period. This may be about two months. The major risk to address right away is the safety of the clients. The right products that are tested must be used. The hypothesis that needs testing right away is regarding the response of customers to differential pricing and mobility of the business. Customer attitude towards the business is critical. F. Learning and Adaptation. The lessons in the class have been critical in my understanding of entrepreneurship. In actual sense, I have learned that starting a business ought to be a lifelong plan. While profit orientation is important, it should not dictate the process. It must be something you are willing to do for a long time and make a positive impact on the society. In other words, it must be something that will not harm any individual in the process. Therefore, ethics and integrity should be at the forefront. However, to achieve that, business development, as well as, sales skills is necessary to build influence and basic negotiation skills. I have also learned that success entrepreneurs value successful relationships with customers and staff among other stakeholders. Trust is established when a culture of dependability and integrity is nurtured (Komisar and Lineback 12). Between week 9 and week 12, I have also learned the value of marketing and partnership strategies when starting a business. Such essential elements as product or service differentiation, knowing the customers and the competition among others were also learned. These ensure sustained value throughout the whole process. Works Cited Cohen, Rachel Lara. "Rethinking ‘mobile work’: boundaries of space, time and social relation in the working lives of mobile hairstylists." Work, employment and society 24.1 (2010): 65- 84. Komisar, Randy, and Kent Lineback. The Monk and the Riddle: The Art of Creating a Life While Making a Living. Boston, Mass: Harvard Business School, 2001. Print. Larsen, Lynne. "Men's changing beauty habits: male grooming." South African Pharmaceutical and Cosmetic Review 39.11 (2012): 19-20. Scornavacca, Eusebio, Stuart J. Barnes, and Sid L. Huff. "Mobile business research published in 2000-2004: emergence, current status, and future opportunities." Communications of the association for information systems 17.1 (2006): 28. Tsigonia, Alexandra, et al. "Indoor air in beauty salons and occupational health exposure of cosmetologists to chemical substances." International journal of environmental research and public health 7.1 (2010): 314-324. Read More