Marketing BY ungluing Case Study 1 Salon Promotions Hair Is Important to most people across the world and to women In particular. Vaults to the hairdresser are motivated by a variety of reasons and some of these motivations can be associated with phases in peoples’ life stages, as set out in Table 1 . Hair care products have been designed to appeal to different markets and at one end of the spectrum inexpensive shampoos and conditioners can be purchased from supermarkets, grocery stores and corner shops, on an everyday basis.
At the other end of the spectrum, shampoos and conditioners can be purchased from hair salons, armorial as a result of vaulting for a cut, style and/or color change. These salon- based products usually command a premium price. Therefore, hair care products can be bought from shops or from hair salons, but the brand propositions are normally very different. The shop-based products are mass brands, which require high levels of promotion to maintain awareness and repeat purchase in a market where brand loyalty is low.
Sponsorship and sales promotion are also an important part of the promotion mix, aimed at developing brand values and encouraging brand switching, respectively. Salon-based brands are characterized by their exclusive availability (only available through hair salons) and the endorsement by hairdressers such as Paul Mitchell and Sebastian. Television advertising does not always work well as it reduces the perception of exclusivity. Much of the promotional work with salon brands needs to be orientated to the professional hairdresser and be designed to promote Images of personal attention and professional care.
Salon brands are endorsed by professional hairdressers, shop brands are endorsed by celebrities. Research Indicates that there are both strong rational and emotional reasons for eying hair care products at a salon. Product quality and functional performance, which is endorsed by professionals, constitute the main rational motivations. The emotional drivers are based on the indulgence, fun and exclusivity associated with a small number of people who know the secret tools used by the professionals.
Professional hairdressers prefer to work with products that are of high quality, that are affordable to their clients and that have sufficient mystique and credibility associated with the endorser/branded hairdresser. Personal recommendation by the redresser is an important part of the purchase decision process for salon products. Rather like doctors prescribing drugs, the recommendation of the doctor/hairdresser is sufficient to instill trust in product purchase.
Therefore, trust in the hairdresser is an important factor to this group and from this commitment and hence customer loyalty to a hairdresser/salon emerges. Long and Faraway (ELF) Is a hairdresser branded range of shampoos, conditioners and coloratura owned by a major multinational food and drinks company, who use financial controls as the main measure of performance throughout their divisions. Launched two years ago (in a country of your choice), ELF is sold exclusively through hair salons but has failed to achieve anticipated penetration levels.
Market share remains static at 2% and although brand perceptions held by loyal users are positive, this group Is dominated strategy for ELF requires the development of market share over the next two years. This is to be achieved by following a niche strategy and by positioning the brand against the values of one of the target age groups identified in Table 1 below. The marketing strategy also specifies that growth is to be achieved by improving the umber of products each member of the target audience consumes.
In addition to this, it is stated that growth is also to be achieved by increasing the availability of the brand by enlarging the number of outlets offering ELF in your country. Table 1: Life- stage Characteristics of Salon Customers Lifestyle Group Frequency of visits to salon and average number of products (any) purchased per visit Target Group Characteristics young (20 to 30) 75% of age group visit salons on a regular basis Frequent Visits once every 4-5 weeks 1. 3 products purchased per visit Free, independent and outgoing.
Want to look good, be trendy and use the right products. The goal is to have fun and be beautiful. Perceive ELF as an unexciting but high quality product for normal everyday use. The group carry high ego and social risk factors associated with this product category. ELF does not reduce these risks as much as some of its competitors. Middle (30 to 45) 50% of age group visit Occasional Visits once every 9-10 weeks 1. 5 products purchased per visit Has a family with children still at home, leads a very busy lifestyle. Hair going grey and the texture is changing.
Perceive ELF as a safe range of products that offer low hysterical and functional but relatively high financial risk. Older (45 to 60) 25% of age group visit salons on a regular basis. Very Frequent Visits once every 2 weeks 0. 8 product purchases per visit People in this group have renewed independence and more free time than in recent years. Hair thinning and changing in texture. ELF perceived as a slightly daring brand, which offers moderately high levels of reward. Social and functional risk reduction perceived as good. Source: Simply Marketing Communications, 1st edition, Instructor’s Manual Pearson Education Limited