Marketing is one of the most important aspects of a business. According to Peter Drucker “There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customers so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available.” (Peter Drucker, Marketing Management, Philip Kotler). In this report, we have planned to market the service ‘Hair care’ by opening an Hair Salon in Silver spring, USA. We have analyzed different marketing strategies and designed a marketing plan for the same.
1. NAME, LOCATION & NATURE
Location: Silver spring, Montgomery County, Maryland, USA
Nature: ‘LOOKS’ will be one stop solution that will allow the entire family to have their hair needs satisfied in one convenient location. It will serve men, women, and children and it will accept appointments as well as walk-ins. ‘LOOKS’ will also sell premium hair care products. It will focus on serving the entire family in one quick, convenient visit. It will excel due to its attention on their clients, so as to build a long term relationship. Through unheralded customer attention, ‘LOOKS’ will slowly but surely gain market share as it services the entire family, creating long-term relationships. Being on one of the best location of Silver Spring, it will attract a lot of traffic. 2. SELF-ANALYSIS
The US salon market accounts for approximately 60 billion dollars. Looking stylish, trendy and beautiful is one of the major concerns of the people in US today and providing this, forms the strength of “Looks”. As the mission of “Looks” aligns with this need of the market and as it has comparatively higher competency in the world of fashion it is a strong player.
3. CUSTOMER ANALYSIS
The population of Silver Spring is 78,488, with a growth of 2.5%. The population of Silver Spring consists of 48% males and 52% females. The immediate geographic target of LOOKS is Silver Spring and its neighboring communities of total 250,000 of population. Approximately 12 miles geographic radius is in need of the offered services. The total targeted population 100,000. Baby boomers, Gen-Xers and baby boomlet and the young generation are the groups that are targeted by ‘LOOKS’. 4. ANALYSIS OF PRIMARY COMPETITORS
The location chosen offers very less competition or no competition. Though there are two major competitors which LOOKS has to compete with. Ebony Barber's Unisex & Fenton Barber Shop are the two major competitors of LOOKS. As Silver Spring is one of the biggest hub for business it may likely to be hurt by emerging competition. LOOKS will have to face Monopolistic competition, as its competitor is able to differentiate their offerings. 5. MARKET RESEARCH
The demographic segregation of Silver Spring is displayed in the graph displayed below: Age Group| %|
Under 18 yrs| 23%|
18 – 24 yrs| 9.3%|
25 – 44 yrs| 37%|
45 – 64 yrs| 21.2%|
Above 65 yrs| 9.6%|
Silver Spring is a ‘Salad Bowl’ society with ethnic group maintaining their ethnic differences, neighborhoods and culture. The Silver Spring population comprises of different racial people which are 46.61% white, 28.07% African American, 0.44% Native American, 8.22% Asian, 0.06% Pacific Islander, 11.55% from other races and 5.04% from two or more races 22.22% people of the total population are of Hispanic or Latino race. ‘Looks’ will concentrate on the needs and wants of all races as each group has a specific want that need to be satisfied. The Household pattern in Silver Spring is ‘diverse’ as maximum people in Silver Spring are adult live together, single parent family and single live out. 6. MARKETING ENVIRONMENT