2. Salon de Féerie Business Studies – Marketing Salon Salon de Féerie Group members: Claudio Chan(1) Nelson Chan(3) Chan Tsz Long(4) Kitchen Lam(14) Patrick Ngai(24) Reginald Wong(29)

3. Salon de Féerie Content Introduction Situation Analysis - SWOT Selection of Target market - Market Segmentation, targeting and positioning (STP) Marketing Mix Strategy - 4P’s + 3P’s Relationship Marketing Recommendation Contingency Plan

4. Salon de Féerie Introduction Importance of salon - 98% of HK people care about their hair Our salon’s objective - provide professional hair-related services with a relaxing environment towards ladies in a reasonable price. Salon de Féerie - “salon in the wonderland” - an oasis that allows customers to take a refreshing break from the rapid pace of city living.

5. Salon de Féerie Situation Analysis Salon – saturated but large market SWOT analysis - Internal situation Strengths (S) - Specialization of target market Weaknesses (W) - Large set-up costs

6. Salon de Féerie Situation Analysis SWOT analysis - External situation Opportunities (O) - Special features with reasonable pricing Threats (T) - Competitors

7. Market Segmentation People with different ages or different occupations have different demand for hair- cutting services. Demographic segmentation - Age - Occupation

8. Salon de Féerie AgeOccupationDetailsMarket Potential below 3 (Infants) N/A Slow growth of hair Risk of hair- cutting is high birth rate in Hong Kong keeps declining Weak 3 – 13 (Children) kindergarten students primary school students do not have so much knowledge on hair-styling strict rules in kindergarten and primary school Weak

9. Salon de Féerie AgeOccupationDetailsMarket Potential 13 – 18 (Teenagers) secondary school students begin to follow the current trend strict rules in secondary schools Small consumption power Medium 18 – 25 (Young adults ) university students normally no school rules restricting their hair style Have income sources because of engagement in part-time job Strong

10. Salon de Féerie AgeOccupationDetailsMarket Potential 18 – 25 (Young adults ) sales income sources good appearance is important for sales Strong 25 – 40 (Mature adults ) Primary production (farmers) Secondary production (construction workers) require more physical efforts normally do not need to communicate with customers income sources Medium

11. Salon de Féerie AgeOccupationDetailsMarket Potential 25 – 40 (Mature adults ) Tertiary production (sales and agents) required to communicate with customers frequently Income sources Very Strong

12. Salon de Féerie AgeOccupationDetailsMarket Potential 40 - 60 ( Middle- aged adults ) N/A problems of having less hair willing to pay more on hair treatment Quite Strong Above 60 (Old-aged adults ) N/Anormally do not have so much hair Weak

13. Salon de Féerie Targeting Target: Middle to high-class females Reasons: 1.more females than males in Hong Kong 2.Stronger market potential 3.Save cost 4.provide a place for females to meet and communicate without being disturbed by other male customers.

14. Salon de Féerie 1.more females than males in Hong Kong Source: Hong Kong Census and Statistics Department Targeting

15. Salon de Féerie 2.Stronger market potential

16. Salon de Féerie 3.Save cost 4.provide a place for females to relax and communicate without being disturbed by other male customers Targeting

17. Salon de Féerie Positioning high-class with reasonable price lack of information available in the hair-cutting market To middle to high-class female, appearance and identity are very important

18. Salon de Féerie Marketing Mix - Products Core Products - Hairstyling  Hair cutting - Japanese styles, styles of celebrities - selective by customers, catalogs available

19. Salon de Féerie Marketing Mix - Products Core Products - Hairstyling  Hair cutting - Digital/Virtual hair styling - Preview several hairstyles and colouring

20. Salon de Féerie Marketing Mix - Products Core Products - Hairstyling  Hair rinsing - with hair massage and spa  Hair blow-dry  Hair colouring  Hair highlighting( 挑染 )  Hair treatment( 焗油 ) - Potent treatment or 3.1 Japan Treatment( 日本 3.1 蛋白焗油 )

21. Salon de Féerie Marketing Mix - Products Core Products - Hairstyling  Hair permanent ( 電髮 ) –- Straightening ( 直髮 ) – Ionic Straightening Perm ( 負離子直髮 ) – Resurrectal Straightening Perm ( 游離子直髮 ) – Ceramic Straightening perm ( 陶瓷直髮 ) – Digital Straightening Perm( 數碼直髮 ) –- Curling ( 曲髮 ) – Ionic Curling Perm ( 負離子曲髮 ) – Resurrectal Curling Perm ( 游離子曲髮 ) – Ceramic Curling perm ( 陶瓷曲髮 ) – Digital Curling Perm( 數碼曲髮 )

22. Salon de Féerie Marketing Mix - Products Core Products - Hairstyling  Hair setting - wedding party / ball Features -One-on-one basis -European brands of hair products, e.g. shampoo of KADUS -Various choices with advanced technology

23. Salon de Féerie Marketing Mix - Products Augmented Products  Beverages and snacks  Drinks  Personal TV  Free-wifi and computer

24. Salon de Féerie Marketing Mix - Products Augmented Products  Selling of hair-related products - wigs, motions, shampoos, etc.

25. Salon de Féerie Marketing Mix - Price Pricing objectives  Image - oriented -serving OLs in Central  Cost – oriented -high set up cost

26. Salon de Féerie Marketing Mix - Price Competitors’ strategy e.g. Mini For Hair (middle-class salon in Causeway Bay) (Shampoo&Blow Dry) $68 (Shampoo&Cutting&Blow Dry) $98 (Requested Stylist) +$20 (Treatment) $100 up (3.1 Japan Hair Treatment) $580 up The followings are packages with basic Cleanse, cutting and blow-dry, basic treatment. (Colouring) $300 up (Colour+HightLight) $500 up (Permanent Wave) $300 up (Ceramic Curling perm) $300 up (Ionic Straightening Perm) $300 up

27. Salon de Féerie Marketing Mix - Price Competitors’ strategy e.g. IL COLPO IFC (a top-class salon in Central ) » Cut & Finishing $480 - $1250 » Shampoo & Styling $250 - $550 » Coloring $700 - $2280 » Perming $700 - $2680 » Straightening $1680 - $2580 » Hair Treatment $500 - $1280

28. Salon de Féerie Marketing Mix - Price Price list Standard prices VIP (15% off)^ Students (30% off)^ Cleanse, cutting and blow-dry $268$228$188 Colouring (short) (*) $288$244$202 Colouring (long) (*) $388$330$272

29. Salon de Féerie Marketing Mix - Price Price list Standard prices VIP (15% off)^ Students (30% off)^ Highlight (*)$288$244$202 Colouring & Highlight (short) (*) $488$414$342 Colouring & Highlight (long) (*) $588$500$412

30. Salon de Féerie Marketing Mix - Price Price list Standard prices VIP (15% off)^ Students (30% off)^ Ionic Straightening / Curling Perm (*) $588$500$412 Resurrectal Straightening / Curling Perm (*) $588$500$412 Ceramic Straightening / Curling perm (*) $688$584$482

31. Salon de Féerie Marketing Mix - Price Price list Standard prices VIP (15% off)^ Students (30% off)^ Digital Straightening / Curling Perm (*) $688$584$482 Potent Treatment $188$160$132 3.1 Japan Treatment $688$584$482

32. Salon de Féerie Marketing Mix - Price Price list Standard prices VIP (15% off)^ Students (30% off)^ FULL PACKAGE (basic shampoo, cutting, blow-dry, colouring & highlighting & perm & 3.1 Japan Treatment) $1688$1434$1182 Hair setting$288$244$202

33. Salon de Féerie Marketing Mix - Price Price list -(*) plus basic shampoo, cutting and blow-dry (extra $150) - ^ VIP discounts and students’ discounts CANNOT be enjoyed at the same time - showing accurate value (Never us “up”, price range) - in both English and Chinese

34. Salon de Féerie Marketing Mix - Price Skimming Pricing Strategy - Not many close competitors Price discrimination - Students and VIP Quantity Discount - old customers bring along new customers Packaging Discount Psychological Pricing Pricing of augmented products

35. Salon de Féerie Marketing Mix - Place Exclusive distribution  Just like most of the existing salons in HK  Enhances our image  Central OR Tsim Sha Tsui  Close to MTR station

36. Salon de Féerie Marketing Mix - Place Central Commercial centre High-class image Near offices Existing competitors are not close substitutes - Top-class salons, e.g. the IL COLPO Group, Michell Rene Hair Design & Beauty - Salons with branches, e.g. Salon Espirit

37. Salon de Féerie Marketing Mix - Place Tsim Sha Tsui (Rejected) Commercial centre Near offices Not as high-class as Central More existing salons than Central - 58 V.S. 29 in a professional directory

38. Salon de Féerie Marketing Mix - Promotion Before promotion - Target customers: 120000 working labour in Central are OLs - Competitors’ promotion strategy

39. Salon de Féerie Marketing Mix - Promotion Promotion Process  Advertising - high-class magazines e.g. Jessica, HIM - free newspaper - soft sell

40. Salon de Féerie Marketing Mix - Promotion Promotion Process  Advertising - long-term image - full colour

41. Salon de Féerie Marketing Mix - Promotion Promotion Process  Sales Promotion - cash discounts (short-term) - coupons (short and long-term) - stamps (when mature)

42. Salon de Féerie Marketing Mix - Promotion Promotion Process  Publicity - fashion shows  Other means - promotion boards - posters - price table

43. Salon de Féerie Marketing Mix - Promotion After promotion - follow-up - evaluate - reinforce new ideas from time to time

44. Salon de Féerie Additional Components of Services Marketing People - one-on-one basis - duty shift Diploma - from overseas academies - well-rounded hairstyling skills

45. Salon de Féerie Additional Components of Services Marketing People Experiences - at least 5 years - bring along old customers Ages -25-45 Politeness and Communication Skills

46. Salon de Féerie Additional Components of Services Marketing Process - MIS (Management Information System) Customer Database Inventory Control Booking system (will be further explained)

47. Salon de Féerie Additional Components of Services Marketing Physical Evidence - Interior design  Soft and warm lighting  Upper floors with large windows  spaces between each chair  High class chairs  Well designed washrooms  Bar table  Cloak room  Personal TV  Plants

48. Salon de Féerie Additional Components of Services Marketing Physical Evidence - Music  Relaxing background music  A comfortable environment

49. Salon de Féerie Additional Components of Services Marketing Physical Evidence

50. Salon de Féerie Relationship Marketing Booking system - online and phone booking VIP scheme - discounts Website - Q & A Discounts

51. Salon de Féerie Recommendation Date of operation - February to March - Officially opened in April Appointments and walk-ins - accept both in first couples of seasons - turn to accept only appointments

52. Salon de Féerie Recommendation

53. Salon de Féerie Contingency Plan Possible difficulties and risks : - Insufficient working capital at the beginning Possible measures: - Drop our pricing in order to boost sales - Liquidate some of the equipments - Stop providing some of the augmented services - Sell the business to others

54. Salon de Féerie la fin (The End)