Presentation on theme: "Marketing function that identifies products and their source and differentiates them from all other products."— Presentation transcript:
Marketing function that identifies products and their source and differentiates them from all other products.
No. 31 Hair and Beauty is a hairdressing salon based in the market town of Crewkerne in Somerset in the south west of England. The company provides a range of unisex hair styling services and also sells a range of hair care products such as shampoo and conditioners, styling products, wax, paste and hair shapers.
The business doesn't have a mission statement - it is not seen as important for this type and size of business. As the sole owner, Jilly has a good idea of what her values are in dealing with clients and she tries to ensure that these values are reflected by the staff who she employs, but as for writing anything down in a formal manner, that is not something that she would think was necessary
Competition can come from a variety of sources. There could be competition from other hairdressers in Crewkerne itself, from travelling hairdressers who do hair in people's homes and from hairdressers in neighboring towns such as Yeovil. However, Jilly feels that people who want to go to Yeovil to have their hair styled may be a different market segment to the ones which she focuses on, as is the case with those who choose to have their hair done at home. The main competitors in the town itself are Spritz, Shear Magic, Cabin Curls and Vanessa's Classic Cuts.
The initial funds needed were for financing the lease and to take over the rent and the rates of the original building. Because she was taking over an existing business, much of the equipment was already in place. She had to pay £800 for the fixtures and fittings. The funds were raised from Jilly and Paul's own savings therefore. When the business moved to its new premises in the market square, Jilly had to negotiate a loan of £30,000 from the bank. To do this, she had to offer something as security on the loan and Jilly and Paul used their house for this purpose. This means that if the business was to fail and she owed suppliers money, she might risk having to sell her house to pay for these debts and to pay back the loan to the bank.
Jilly believes that the business is situated in the middle of the market. It appeals to a wide range of different market segments without focusing specifically on any one. Its prices are considered reasonable and the décor and atmosphere are modern without being too 'trendy'. One of the company's rivals opened up in the town with a very modern décor, relatively high prices with the intention of targeting the 'top end' of the market. Jilly was concerned that her customers might be attracted by the 'glamorous' image but this does not seem to have happened. Jilly feels that it is important to know your customers and customers in this small market town are not necessarily going to welcome this sort of high market approach. The salon is in the 'Good Salon Guide' but interestingly, Jilly was not keen on gaining a '5 star rating' because it might give the impression that the salon was expensive and exclusive and might 'scare people off.
Four and a half per cent of the turnover of each Hair and Beauty Salon goes into a fund used for national marketing of the brand. Using less hair products for people aged 55 and over, but younger generations have become used to the BED HEAD and as this group ages, the commercial opportunities are sizeable and attract a lot of young costumers.