2.0 Situation Analysis
Posh Salon will face numerous challenges. One of the challenges relates to developing unique services/products that will be personalised in accordance to the desires of customers. Customers do not want to feel that what they thought was a unique or personalised style is with another one thousand customers on the streets. Another challenge can be the time that is designated for our clients, we do not want anyone coming in waiting on their stylist therefore we will have a given time set for each of our clients plus leisure time to discuss their experience as well as the after care of their services thereafter.
What forces in the macroenvironment need to be considered?
Since the business aims at specialising in personalised services, cost control will be fundamental. The management has to offer services at process that will keep the clients coming back while attracting new clients. The management aims at giving the clients a salon experience that will be equal to no other at a competitive pricing, attracting current and future clients. Even with the economy drop, hair salons will always thrive, its recession proof! Women as well as men will always need to maintain their looks and feel good even if it means buying less pairs of shoes each week.
What are the company's capabilities?
Posh Salon will be able to give customers their own service specialists and make styles/designs that are in accordance to the customer's desire and request. The business has very creative and innovative employees that withhold licenses in their specific field such as cosmetologist, skin care specialist, nail technicians, as well as spray tan technicians. Posh Salon is willing to bring the service to the clients. They can have their hair, nails, spay tans, lashes, makeup or therapy done from the comfort of their homes or offices at no extra cost. This will be done electronically, and we will have certain beauticians that will be available on certain days to fulfil our clients' needs and wants.
2.1 Market Summary
How would you define the market?
The beauty industry is one of the most thriving industries not only in the country, but also across the globe. This is mainly, because women are known to pursue good looks more than men. Moreover, modern hair salons focus on offering services to both men and women. The industry is bound by strict rules and regulations especially on licensing or health and safety issues (Mokotoff, 2010). Specifically, this Posh Salon will target all people, but focuses, in a special way, on the middle class working professionals. Also, it recognizes the fact that there is stiff competition in the industry. However, the main players are devoid of bringing out the best out of a client's hair. This business seeks to focus on perfection of service delivery for a wonderful customer experience. The revenue retrieved from this industry is dependent on a business' ability to attract customers and retain them.
How big is the market?
The business will part of other 1.2 million dollar hair industry in the world. . The market generates approximately $50 billion per annum according to a report released in 2014 as noted from IBIS world. Although the market was affected during the economic industry, it has quickly recovered. The most thriving businesses are in nails, hairs and beauty products. Nevertheless, the business' chances of survival are as many as its chances of failure.
The market share for Posh Salon will, however, increase because of specialized services and products that will be unique for the salon. The salon is aiming at ensuring that it copes with the challenge of offering similar services or doing styles similar to other salons for this will chase away their clients. People normally like unique styles. In addition, risk measures need to be in place to ensure that the market share for Posh Salon does not deteriorate but rather increase. For example, diversification of the beauty products sold in the salon will increase its market size as compared to its competitors. This will be done by Posh Salon's panel of experts, which contains highly skilled and knowledgeable personnel in the field of business.
How fast is the market growing?
The market is growing at a steady rate; with most revenue growth being experienced in men's based salons, which are making twice as much as the other salons. Posh salon will attract all clientele serving children, men, and women of all ages. Research also indicates that clients are more interested in personalised and private salons as opposed to the traditional mall-based salons. Also, to add, salons have been have been providing new hair products as well as services such as eye lash extensions in order to turn over the economic growth. With that said, according to IBIS world revenues are expected to increase as much as 2.6%.
Posh Salon will strive to answer the demands of the growing market and ensure that. This will be achieved through modifications based on clients' desires because they are the most important stakeholders in the business. A research carried out recommended that personalization or privatization of the salon will enable it to survive the fast growing market demand because it will be able to attract more clients. Posh Salon is, therefore, aiming at ensuring that its services are sustainable and that its market is growing together with the rest of its counterparts to ensure that it benefits from the fast growing market.
What are the relevant trends?
As indicated earlier, clients are no longer interested in mall-based salons they want the real salon experience they currently want salons that offer privacy and personalised care. This business has highly considered these trends. Posh Salon will be located in New York City near Wall Street, where business women and men are always trying to look their best. This will attract people of all ethnicities and ages as well as children in whom are brought into day-cares with their parents during their busy workdays. On occasion we might have a small percentage of tourists that will also like a service done just for the experiences. Another trend relates to creativity and innovation. The clients want to feel that they are the only ones wearing a particular style in the whole world, Posh Salon aims at delivery this customers' desire.
2.2 SWOT Analysis
Posh Salon showcases its strength in a well-train team of employees. A well-trained team includes having qualified personnel that offer high quality satisfactory services to the clients without compromising the client's comfort or requests and personalities. Every employee will undergo vigorous trainings in the best academies around the world. If the business is set in a location that appears to be classy and convenient while offering personalised services, this will be additional business strength.
The business may improve on this by integrating specialization (Pride & Ferrell, 2008). This includes having specific employees deal with specific services, such as hairstylist doing hair, nail technicians doing nails, and massage therapist performing massages, wax specialist performing waxes, thus mastering them. Another advantage is location, location, location! What a better place than for Posh Salon to be located in the big apple! Our salon not only will attract the local business men and women but also celebrities.
In addition, Posh Salon will attract diverse clients from various parts of the country through advertising and endorsing its services using celebrities. Advertisements will be on TV stations, on the salon's website and on bill boards using well-articulated graphic designs that will attract people's attention and inform them about the kind of services offered in the salon. Similarly, celebrities like actors will be useful to endorse the services and products that are available in the industry. These people have many fans from various parts of the world hence will attract more clients to the salon. Although this is quite expensive, proper planning and management of the salon will enable it to acquire funds for such activities.
Posh Salon lacks a defined management system. The business owner appears to work different positions, which might compromise the leadership and management needed in the business. The business needs to higher another manager who may carry out the marketing part of the business, while he/she manages the internal affairs of the business. Another issue that constitutes is large costs associated with starting up the business which lacks funding for the Posh Salon. It is important to analyse the costs of all supplies, costs of building, salaries and expenses.
Another weakness for Posh Salon is the efforts from the side of the employees. Some employees are not well-equipped with the required skills, especially customer care skills. Customers need proper treatment to ensure that they are comfortable during the whole process of serving them. It will enable them to develop a habit of coming back to the salon. Posh Salon, however, has developed a plan to solve the problem. It will ensure that all its employees receive proper training to offer proper customer care service and the managers will make sure every employee understands its importance to the business at no extra cost. This will enable them to develop passion for their job and, therefore, perform effectively.
Posh Salon has numerous opportunities; this is because it has no limits in the targeted market. Although there are numerous competitors in the market, the clients are in demand about their personal looks as well as its upkeep and they need these services as frequently as daily or weekly. The salon can progress these opportunities by being innovative in styles. This will include experimenting on the various types of styles that suit various clients in regards to their personalities, physical appearances and the type of work/event they have in mind.
In addition, the market for its products and services is sustainable because human beings will forever need beauty products and services. Posh Salon has, therefore, an opportunity to plan for its future. Recent technology has made it possible for prediction of the future behavior of the market through the use of business models developed from computers software to project the future of any company or any business. Similarly, the current technology enables people to acquire information about a company or a business through seeing the inside of the business, in this case the salon. Posh Salon can use this sophisticated technology to display its products and services and hence attract more clients. The salon can effectively exploit such opportunities. These and many other opportunities realized in future can be useful while enhancing the effectiveness of the business.
The main threats include the unstable economic situation affecting consumers' incomes. The recently experienced recession caused a fall in consumer income. As a result, salon businesses experienced a decrease in nonessential facials, hair care products and manicures (IBIS World, 2014). This can be counteracted by creating discounts for particular services that seem to be in demand or creating joint offers for services that are more and less in demand. For instance, a business could offer free haircuts for customers who need full service hair coloring.
Another threat facing the salon is extreme competition from similar enterprises. This cannot no longer be a threat if the salon creates environment that will foster creativity and innovativeness for its employees. This will enable the salon to develop unique styles that no other competitor can do and, therefore, be able to compete effectively in the market. In a salon business, the most fundamental factor is creativity and innovation. This factor can be enhanced through allowing the employees to try new styles and products on willing clients and see if they will like it. By so doing, the salon will be able to achieve uniqueness.
Who are the competitors? What are they doing?
The business' competitors are 1.2 million in number (Soble, 2013). It faces greater competition from the businesses within its location inclusive of unisex salons. It also faces competition from other well established businesses such as Salon Centric (IBIS World, 2014). Such large businesses influence many consumers due to their established media presence through Face book and Twitter. Posh Salon will be launching a Facebook account as well as an app for all smartphones where they can schedule their appointments in which will go right into our system. Special discounts will be offered as well as specials in order to stand out from other salons in the area.
How It Works
Healthy competition is achievable through diversification of the products and services that the company offers. For example, identifying the kind of products not sold in other salons and the services not offered by its competitors can boost business. This will enable the salon to sell unique products and services to their clients. In so doing, Posh Salon will be able to compete well with the rest of the salons within its vicinity. This issue of uniqueness is achievable through employing creative and knowledgeable workers who will introduce new styles and designs.
The company will also open branches in other areas that do not experience a lot of competition. For example, in remote areas, which salon business is assumed not to thrive well. This will enable the salon to enjoy monopolistic market with limited or no competition at all. This is a strategy that needs effective leadership and management to plan well for the development of other branches.
What are they doing?
The competitors have achieved its recognition and popularity due to the well-maintained communication, such as Facebook accounts, web sites, advertising their products on radio and TV. They have also enabled their clients to book appointments online, without having to go physically to the salon. It is effective enough, and clients will prefer such salons because they make work easy for them, as well as save their time and money. Posh Salon is planning to adapt these techniques to be able to compete healthily with the rest of the salons within its vicinity and beyond.
These competitors are also offering extra customer care services for free: for example, doing their nails for free once a month, offering them with coffee, tea, wine or any other refreshment, etc. Such customer care services aim at enhancing the comfort of the customers and making them feel valuable to the salon. The results of such treatments include increase in the number of customers, increased profits and achievement the salon's both short- and long-term goals.
Their position in the market
The competitors have a large share in both the local and international markets. This is because they are able to attract clients from within their locality, as well as from everywhere. Their strategies and their management plans are the key instruments towards achieving their success. Posh Salon, in its plan, is aiming at development of strategies that will enable them to compete with such salons in the market. Nevertheless, these strategies are aiming at putting its products and services at the top in the market.
How do they compare?
Posh Salon will offer products and services that are unique and, therefore, will not be similar to the products offered by its competitors even as much as they relate to beauty. Its services, for example, styling, will base on creativity and innovativeness of the stylists and, therefore, will result in unique and high quality styles. It is achievable through promoting creativity and innovations among employees and training them on how to be creative and apply it to their daily work in the salon.
It is, however, important to note that Posh Salon will be a starting business and, therefore, will experience problems of getting clients in the first days of business. Posh Salon will need time and additional costs to familiarize itself with clients through advertisements and other forms of communication in order to make it well-known.
2.4 Product Service Offering
What needs does the product or service fulfil or what problem does it solve?
Although the trend in the market is having personalised services, the market is not yet saturated with the same. If anything, there is a huge gap that is yet to be filled in as far as personalised services are concerned. This business aims at playing a role in filling this need for personalised care. This will be met when providing services to both male and female clients. Posh Salon will have a record keeping system where client's information will be stored from all their services and they will be rewarded for their loyalty, for instance on client's birthdays we will send them personalized emails with discounts attached.
What is the product offering?
The product/service offers the client a chance to explore and express his/her personality, as well as physical appearance. Clients are in need of expressing themselves in a unique in the way they appear for the diverse seasons, moods, trends, occasions, amongst others.
What are the features, advantages, and benefits?
The key feature and benefit offered by the business relates to services that allow an individual to be unique even in the way he/she looks. The business has a dedicated team that aims at being creative as well as innovative in the services and products offered to customers. By this we will be open long hours starting 6 am until 10 pm, this will allow the clients to get services at Posh salon before, during, or after going to work or going out for events.
2.5 Keys to Success
What are the most important factors to making your plan successful?
Customer service is one key to success, businesses revolve around the customers/clients. If a customer feels unappreciated or dissatisfied, he/she will take her business to the competition and will leave a bad reputation about the salon which will lead into bad word of mouth marketing tactic. Customer services are conjoined to offering quality services. If a customer appreciates that the employees are friendly but fails to appreciate the hair cut, this will lead to loss of business. The other key relates to excellent management (Pride & Ferrell, 2008). This includes treating the employees in the best way possible, excellent accounting and operations and marketing as well as other areas that need managing. This business aims at observing and fulfilling these key issues.
2.6 Critical Issues
The salon needs to keep up with the changing trends in the industry. This includes keeping track the type of services the customers want, changing hair and beauty trends, and competition changes, amongst others (Soble, 2013). Identifying these changes will allow a business to form its strategies with consideration of these changes.
The business also needs to consider avenues of marketing and distributing its services and products. The business will use the internet and traditional forms of advertising inclusive of word of mouth. The business also aims at cutting costs while raising more capital to make sure that it is in accordance to customers' expectations.
3.0 Marketing Strategy
What IMC approach are you planning?
Speaking about integrated marketing communication approach regarding Posh Salon, it is important to emphasize on importance of advertising. To be more specific, the organization is going to launch a meaningful advertising campaign, which will be focused on the newspapers, magazines and related web resources. Concerning the printed advertisements, it should be noted that they will illustrate the unique hairstyles and other examples of the custom services of the company. It can be explained by the essence of the suggested services, which are easier to demonstrate. Subsequently, the web banners will be designed for placement at the related web resources. By the same token, online promo page and profiles in social networks will be created in order to broaden the target audience of the organization.
What marketing strategies will you use?
With regard to the marketing strategy of Posh Salon, it should be admitted that the organization will be primarily focused on the customer lifelong value. Actually, it can be explained by the following facts. First of all, the need for looking attractive and stylish does not belong to the group of customers' desires, which tend to get "mature" after a particular period. Therefore, the organization will provide 15% discount for regular customers because they comprise 80% of the overall income of the organization (Carpenter & Shankar, 2012, p.108). Thus, all decisions concerning the marketing strategy of the organization will be oriented towards satisfaction of the customers so that they will prefer Posh Salon for a regular attendance. However, it is important to note that the quality of services is supposed to be at the sustainable level during the entire performance of the organization.
What advertising strategies will you use?
As it has been mentioned previously, the organization will launch a meaningful advertising campaign in terms of printed and online media. Speaking about the advertising in newspapers and magazines, it should be noted that it will contain minimum of text and numerous illustrations. Nobody would deny the fact that it is much easier to show a picture instead of describing it with a complicated text. In the similar way, online banners will be designed. As for the promo page, it should be admitted that it has to be designed in accordance with the interior of Posh Salon so that a potential customer can feel the atmosphere of the organization. Still, the informational content is important. Hence, the promo page has to include suggested services, prices, location, contact numbers and links to the social networks, and special offers in case any are available. Another aspect I would like to add, is integrating an app as advertising, this will allow clients to ready reviews, check in, book appointments, and view salon productivity.
What types of media?
Speaking about types of media in a more specific way, it is to be said that printed and online commercials have been chosen in accordance with target segment of Posh Salon. Newspapers and magazines are usually popular with business people so that the commercials will be placed in the periodicals, which average people from Wall Street usually read. Besides that, thematic magazines will also attract customers, which are particularly interested in a stylish look. As for the online advertising, it is needless to say that the majority of New York City citizens have the access to the Internet. Thus, this media will broaden the customer segment.
Why Did You Choose these Strategies?
All in all, it is important to justify the chosen strategies. As it has been mentioned before, Posh Salon is going to follow a model of customer-driven strategy. As a consequence, all actions regarding performance of the organization are supposed to take into account the customers' considerations. In a like manner, the advertising strategy has been chosen with regard to the customers' satisfaction. To be more precise, the advertising has to inform the customers so that they do not have any questions or hesitations concerning visiting of Posh Salon. Therefore, the advertising has been chosen as the primary means of integrated marketing communication approach. Having described the key points of the marketing strategy, it is necessary to proceed to description mission of Posh Salon mission.
What is the Mission of your Business?
As for the mission of Posh Salon, it is necessary to outline that this organization is striving for satisfaction of customers' needs to look uniquely and stylish. Therefore, the organization values a personal approach to every single customer. In such way, the preferences of customers are combined with a professional advice of Posh Salon employees. Likewise, every single aspect of the organization is particularly focused on the customer's satisfaction. As a result, the organization provides a comfortable location on the Wall Street. It is a quiet place at a nosy street, where the customers will be able to feel the atmosphere of private attention and their uniqueness of style. Eventually, it is the main statement regarding the mission of Posh Salon.
Who is your customer?
As it has been mentioned in the previous sections, the target audience of Posh Salon is businessmen from the Wall Street, which always need to look stylish. Doubtless, the location of the organization can be explained by the target audience, it is worth saying that just average people may be also interested in the services of Posh Salon due to its uniqueness and discount programs. Still, it should be noted that the target segment is expected to be mainly comprised by women above the age of 30. One may argue that Wall Street offices are mainly employed by males, but it is not necessarily true. Furthermore, the female employees will visit Posh Salon in order to emphasize on their location on Wall Street.
What is Value to the Customer?
Having considered the previous point, it is important to note that it actually modifies the customer value. In other words, customers, who actually work at the Wall Street, will visit Posh Salon because it is located close to their place of work and renders the idea of their belonging to the sphere of business. As for other customers, they will value location of the organization as well because a hairstyle, which has been made in the salon on the Wall Street, implies the message of uniqueness. Though, it is to be mentioned that first of all the organization is supposed to satisfy needs and expectations of the customers by proving services of a high quality (Duchessi, 2002, p.2).
3.2. Marketing Objectives
As for marketing objectives of the organization, it should be noted that they are related to the market and services only (McDonald & Wilson, 2011, p.46). Taking this point into consideration, Posh Salon is going to achieve the following objectives. First of all, it is important to obtain a certain position at the market. For the first six months only 4% of the market share will be appropriate due to the peculiar features of the organization. Then, it is necessary to create a dedicated team of professionals, who will provide the customers with quality services. Further, the advertising campaign has to be launched in order to create public relations and inform the customers about the organization entering the market.
What is more, the quality of earnings is expected to be increased. As a result, the organization will receive the opportunity to resist the changes within the stock market. Subsequently, the organization has to initiate preliminary prices with potential partners in order to follow the random walk model. This objective has to be met in five years.
3.3. Financial Objectives
As for financial objectives, it is worth saying that the organization does not intend to receive large incomes for the 1st year. It can be explained by the fact that the organization will need to orient itself within the market. Therefore, risk management model is not applicable to marketing strategy of Posh Salon. Then, Posh Salon needs to reduce the costs in order to achieve positive correlation between costs and actual profits. In such way, the organization will not put its performance at risk and obtain larger market share due to the increase of its value. This objective should be met in 3 years.
What is more, the quality of earnings is expected to be increased. As a result, the organization will receive the opportunity to resist the changes within the stock market. It can be explained by the fact that the organization positions itself in quite unusual way that is why it has to escape the market. Hence, numerous preliminary purchases should be arranged in 5 years in order to get Posh Salon ready for performance in terms of a random walk model.
3.4 Target Market
What General Strategy will be used to Reach Target Market?
As the organization is going to follow the customer-driven marketing model, it is to be said that the general strategy will take into account the same considerations. Hence, the organization will suggest initially reasonable prices for such area as Wall Street. In a like manner, the discount program will be developed for regular customers. In addition, numerous temporary discounts will be arranged. What is more, Posh Salon will organize several public presentations in order to advertise itself and make the related publicity aware of the emerged service nearby. On the contrary, it is important to note that fulfilment of this strategy has to be underpinned by excellent performance of hired professionals. Otherwise, Posh Salon will face a considerable loss.
Needs/Benefits Sought by the Market
In fact, needs and benefits, which Posh Salon is seeking to, are quite simple. At first, the organization strives for obtaining an original segment of business. In other words, it is quite reasonable to place a salon on Wall Street, which is known to be the street of offices and business centers. Then, the organization attempts to benefit at the quite competitive market of New York City by achievement of the previous goal. Eventually, it should be admitted that the organization needs to obtain an unusual place at the local market in order to make significant profits. Though, it is important to note that the quality of provided services is supposed to be excellent. Thus, it is necessary to discuss it in a more specific way.
Speaking about the services of Posh Salon from the perspective of their usage, it is important to admit that these services are primarily focused on the satisfaction of the customers' need to look stylish. Therefore, the services do not imply any empirical appliance but creation of an image and hairstyle, which a customer will prefer. In such way, the customer-driven marketing model will be embodied. What is more, these services will be hard to compete due to absence of a particular standard or pattern, which the organization regards as a template for its entire performance. All in all, Posh Salon does not position its services as extremely necessary for its customers but regards them as the unique services, which are not available for everyone.
It is needless to say that a reasonable positioning of the product means guaranteed marketing success (Zahid, 2013, p.51). Therefore, Posh Salon positions its services as custom salon services for business people. In such a way, the organization expects workers from Wall Street to be regular visitors of Posh Salon. Doubtless, such positioning is the most appropriate in this case, especially with regard to location of the organization. On the contrary, it is worth mentioning that the other people are also expected to visit Posh Salon. Taking this point into account, it should be admitted that the organization emphasizes on uniqueness of its services. In other words, Posh Salon states that every single customer will receive a special attention without any respect to social class he or she belongs to.
Consumer/Business Purchasing Process (Decision-Making)
It is increasingly hard to ignore the fact that the majority of the target customers will consider a suitable location of Posh Salon. Businessmen are known to be busy people so that they may not have enough time to visit a salon in an area, which is not close to their place of work. Thus, they will be able to visit the salon on their way to work or vice versa. That is why Posh Salon is going to work long hours up to 10 p.m. As for the other customers, many of them will prefer to have a custom hairstyle in order not to look like other people of their surroundings. Actually, it is two main points regarding the decision-making process of the potential customers.
Market Size Estimates
As Wall Street is a famous place in New York City, it is important to note that tourists comprised a notable part of its population. Hence, it should be admitted that the organization is expected to meet a lot of customers with a wide range of preferences. In contrast, it is worth mentioning that the organization is supposed to provide qualitative services so that the primary needs of customers are satisfied. Moreover, the local market is quite competitive that is why excellent performance of professionals is a compulsory requirement for success of Posh Salon.
What Opinions Does your Audience Already Have about this Type of Product?
With regard to the opinions about this type of services, it is worth saying that the majority of the target audience claims that a stylish look is quite essential. To be more specific, business people assume that a stylish look helps them succeed in their professional sphere. It can be explained by the fact that the sphere of business requires particular ethical rules, which include the dress code, as well. Therefore, many Wall Street workers need to look stylish and neat because they are representing their companies. Thus, nobody would deny the importance of an appealing look. Doubtless, an attractive hairstyle is not the primary aspect, which influences success in business, but it makes an individual feel more confident. In such a way, the target audience generally expresses the opinion that a stylish look is important, especially in terms of their professional activity.
Is there a Gap in the Consumer's Needs that this Product Can Fill?
As it has been mentioned in the previous sections, Posh Salon has chosen Wall Street as its location to attract the customers working and living close to this area. It is increasingly difficult to ignore evidence that Wall Street people are constantly busy. As a consequence, a location, which is close to their workplace, is a solution to the problem. Hence, Posh Salon fills the gap of a constant lack of time. Besides, it is important to emphasize the need of these people to look stylish and neat. Therefore, the organization fills the second gap: the target customers will be able to have a stylish look in accordance with their professional desires. In other words, the organization fills the confidence-related gap. Eventually, Posh Salon fills the gaps of a constant lack of time and confidence.
Is there a Specific Application that Your Product Fits Very Well?
It is needless to say that one of the main objectives of Posh Salon is to provide unique services to its customers. To be more exact, the organization takes into consideration the customers' preferences and provides advice in regard to their look. As a result, the organization's employees provide the customers with the services, which correspond to their needs, and with a professional adjustment. One may argue that every single salon emphasizes its uniqueness. This is certainly true in terms of advertising while Posh Salon suggests a special consideration of the customers' preferences as a matter of fact. Thus, it should be admitted that Posh Salon implies not only a choice of hairstyle but a flexible schedule. It is obvious judging by the organization's long working hours and an ability of providing services to a lot of customers simultaneously. Hence, it won`t be difficult to arrange orders beforehand.
Can You Base the Position on the Uniqueness of the Product, the Product Quality or the Pricing Strategies?
Taking into consideration the main statement of the previous section, it is necessary to admit that Posh Salon actually positions itself as an organization, which provides its customers with unique services. Though, it is quite a widespread marketing strategy. In consequence, such a strategy implies certain difficulties in regard to competition. Nevertheless, it is worth saying that Posh Salon also relies on the strategy aimed at the provision of high quality services. Speaking about the quality of services in a more specific way, it should be admitted that the organization employs dedicated professionals, so that Posh Salon is able to vouch for the high quality of the provided services. In such a way, the organization positions its services as custom-made and high-quality ones. As for the pricing, it doesn't tend to be low because relatively high prices are quite relevant to the target audience.
Is it Possible to Position your Product Based upon Opportunities you Found after Research?
Speaking about the advantages of a marketing research, it is important to note that new angles of positioning are the primary objective of such a research. Namely, marketing research is conducted in order to find out how a particular product or service is perceived. Further, certain positioning is designed in accordance with the outcomes of the research. Taking this into consideration, any research will contribute to the improved positioning of services. Nonetheless, it is worth mentioning that the research itself is supposed to meet the relevant objectives (Baines, Fill & Page, 2008). In other words, the outcomes of the research have to render any actual application to the positioning of services. Moreover, advertising also depends on the research so its importance is relatively high. All in all, these are the key points regarding the positioning of services provided by Posh Salon.
Despite the fact that Posh Salon is going to launch the strategy of customer lifelong value, it is necessary to note that the implementation will follow the command pattern of the approach. The term implementation by command has been applied to the cases of the incorporation of the marketing strategy, which transmits the implementation to the lower levels of frontline managers and employees (Ferell & Hartline, 2014, p.263). However, it is possible to claim that this approach is not an efficient strategy in this case. Though, Posh Salon is seeking to develop efficient marketing strategies. In consequence, implementation by command is quite easy regarding decision-making and relatively clear actions. Namely, the marketing strategy of the organization will be embodied by its average workers. Besides, it can be also explained by evidence that average workers are those, who communicate with the customers. Taking these points into account, it is obvious that the implementation by command is the best tool of the marketing strategy aimed at creating customer lifetime value. As a result, the marketing strategy of the organization will comprise a wide range of activities at the basic level. Hence, Posh Salon will be able to meet the primary marketing and financial objectives. All in all, it should be noted that Posh Salon heavily relies on the unity of the strategy outline and its approach to the actual implementation.
3.7 Marketing Mix
In regard to the branding of Posh Salon, it is important to note that its name considerably contributes to customer attractiveness. First of all, the word posh renders the idea of luxury. However, it is worth mentioning that this word is a synonym for luxury. In fact, the word posh conveys a lofty meaning of belonging to the business class. To put it in a simpler way, the name of the organization implies its target audience (Bly, 2007). Actually, such a name is quite effective at the pragmatic level. By the same token, it should be noted that the name also sounds and spells in rather an easy and pleasant way. Hence, it is easier to memorize it. In such a way, it is possible to say that the aspect of product in the marketing mix heavily depends on its brand and, especially, name.
In regard to the promotion of Posh Salon, it is needless to say that it will mainly rely on a meaningful advertising campaign. Surprisingly, many similar organizations actually underestimate the opportunities of advertising. Thus, Posh Salon will be advertised via printed commercials in various newspapers and magazines, and on the Internet. With regard to TV commercials, it will be useless to use them to attract the target audience of Posh Salon. It can be explained by the fact that Wall Street workers are quite busy so that there is little possibility to attract them with the use of TV commercials (Ogilvy, 2013). On the contrary, it is potentially possible to design product placement on the items which are regularly used by the target audience: notepads, pens, folders, and etc.
Wall Street is known as a business center of New York City. As a consequence, there are a lot of business people there so it is a perfect place for location of services, which are essential for business people but which they are not able to obtain sometimes due to their long working hours and busy schedules. Hence, the location of Posh Salon perfectly fits these parameters. Moreover, it is worth mentioning that the location is not the only factor in ensuring that the competitors are totally defeated. In fact, Posh Salon is supposed to be noticed. Again, it is necessary to place an emphasis on a peculiar feature of the target audience: these are mainly busy people so they can simply pass Posh Salon without noticing it. Thus, the place is the initial factor of the marketing strategy while the promotion is expected to attract the target customers.
As mentioned before, the main goal of the organization is to achieve stability within the market rather than making considerable profits. Taking this point into account, it is to be said that Posh Salon is going to utilize the simplest method of pricing: a cost-plus approach. According to this method the initial cost of service is multiplied by mark-up ratio and is added to the initial price (Ruskin-Brown, 2006, p.169). There has been a little agreement on the identification of true price, but in this case, relatively higher prices are not considered. Again, it can be explained by an average income of the target audience and their availability to afford only comparatively inexpensive services. Besides, higher prices are justified by the flexibility of the organization, premium services provided to the clientele, and the convenient location. All in all, these are the main aspects of the marketing mix in regard to Posh Salon.
3.8 Marketing Research
First of all, it is worth saying that the marketing research has to be particularly focused on the identification of the response of the target audience to the advertising campaign. It is essential, especially in terms of the organization's promotion, which considerably depends on advertising. Therefore, its efficiency should be evaluated. Thus, the research is supposed to be conducted using a simple data collection method (Grewal, Krishnan & Parasuraman; 2007, p.83). To be more exact, the number of follows from the web-based banners has to be specified. As for the printed commercials, the number of calls to arrange an appointment is supposed to be considered, as well. Regarding the efficiency of the product placement, it is important to note that the contacts of Posh Salon have to be included. Hence, it is crucial to ask every single customer how they have found out about the organization.
Having considered the size of the organization, it should be admitted that the vice president and the sales manager of Posh Salon are responsible for the marketing research (Babin & Zikmund, 2007, p.75). Doubtless, the vice president is a supervising party while the sales manager is expected to be precise and accurate when controlling sales histories related to this procedure. Moreover, since Posh Salon heavily depends on advertising, most short-termed incomes will come from the customers, who pay attention to the commercials of Posh Salon. In a like manner, the sales manager is expected to compare the research data with the sales history in order to process the data in a more accurate way. In addition, it will be possible to find out the number of customers who have been attracted by the company`s advertising campaigns and those, who have found out about the organization by chance.