The introduction of this report begins by stating its purpose which is to analyze strategies which a new hairdressing service provider, Tresses should practice in order to successfully launch itself in the market. It then touches on the industry as well as describes Tresses uniqueness in catering for busy individuals especially professionals and business executives. The introduction ends with a brief definition and explanation of the marketing theories which will be used throughout the report.
The body of the report starts by analyzing the segmentation bases which Tresses should use in identifying profitable groups of users which are demographic segmentation and behavioral segmentation. The next part describes the target market for Tresses with approximate statistics of its potential customers ending by justifying the three main factors commonly used in evaluating segments namely segment size and growth, structural attractiveness and Tresses own objectives and resources. A part on positioning strategy follows on how Tresses should place itself in the minds of customers against its competitors. The last part of this section is on pricing strategy which says that Tresses should price its services according to the customers' perceived value.
To conclude the report, the importance of accurate target marketing and pricing strategy for a firm is stressed upon. The report ends by recommending further actions which Tresses should take up in order to make successfully make its place in the hairdressing industry.
Background:
Most sources estimate that a person should get a haircut every four to six weeks depending on length and style. In addition, hair treatments like rebonding, perming and coloring require regular trips to the salon for up-keeping of the hairstyle. Many also frequent beauty salons for other services such as manicures and pedicures. Thus, a constant demand for hairdressing and other related services does exist.
[...] Tresses intend to provide premium hair care and beauty services targeted at the new generation of image conscious professionals and businessmen. The single-outlet includes all the beauty services available at most beauty salons in Malaysia as shown in Table However, what sets them apart is that they aim to be the personal grooming centre for the busy and hectic professional work force of Malaysia today with complementary services such as: WiFi and Internet services as well as available in-house PCs. [...]
[...] This would be a quality appreciated by active professionals and would provide Tresses competitive advantage over competitors Pricing Strategy Tresses would use a value-based pricing strategy in determining the price of its services . This is to set a price based on customers perceived value of the services and not the cost (Kotler et al. 2006). Thus pricing at Tresses is determined by analyzing what is required by their target market and what type of services they would appreciate as well as how much they would value them. [...]
[...] Department of Statistics, Malaysia, (2005a), State/District Data Bank, November 2005, pp - (2005b), Yearbook of Statistics, November 2005, pp. 39- Heskett, JL (2002), ‘Beyond Customer Loyalty', Managing Service Quality, vol no pp. 355-357, viewed 20 September 2006, Emerald database, item: 0960-4529. Kotler, Adam, Brown, L & Armstorng, G (2006), Principles of Marketing, 3rd edition, Pearson Prentice Hall, New South Wales. Lamb, CW Jr., Hair, JF Jr. & McDaniel, C (2004), Marketing, 7th edition, Thomson South-Western, Ohio. Oshagbemi, T (1995), ‘Management Development and Managers' Use of their Time' Journal of Management Development, vol no pp. [...]
[...] This is because they provide quality hair-care and offer several complementary services which justify service prices that are relatively higher and therefore they should seek out groups who are able and willing to afford it Behavioral Segmentation This form of segmentation groups buyers by their understanding of the product, their mind-set about it, how they consume it and their reaction to it (Kotler et al. 2006). Tresses will aim for groups based on loyalty status. As a service provider, Tresses aim to satisfy loyal customers as services are people-based and would differ indefinitely from one provider to another (Kotlet et al. [...]
[...] Lastly, the pricing strategy used has to be in line with the value of services provided as well as suited to the target market. If the market targeting process and pricing strategy is done appropriately, Tresses would no doubt prosper in the personal grooming industry RECOMMENDATIONS It is highly recommended that Tresses should proactively continue to evaluate the market for more opportunities or identify other parts of the market which it can profitably penetrate. The firm should also aim to come up with more innovative ways to satisfy its target market better. [...]
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