Assignment 2 arif toor 4nov

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Trent University *

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Marketing

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Feb 20, 2024

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Market Research and Strategy report Disguise the world- A unisex salon Course name- New Venture Creation and Design Course code: ADMN3430 ( Fall 2023) Group 11 1- Charanjeet kaur charanjeetkaur@trentu.ca (0765089) 2- Deepanshi Sharma deepanshisharma@trentu.ca (0796220) 3- Kazi Muhammad Khubaib kazimuhammadkhubaib@trentu.ca (0764638) 4- Manpreet Kaur Lotey manpreetkaurlotey@trentu.ca (0763024 ) DISGUISE THE WORLD 1

Table of Contents Primary Market Research 1- Target market 2- Research methodology 3- Sample size 4- Questions asked and Answers received 5- Review of research 6- Unanswered questions? Market Strategy 1- Product strategy 2- Price strategy 3- Promotion strategy 4- Place Conclusion DISGUISE THE WORLD 2

PRIMARY MARKET RESEARCH- Disguise the World Market research is a building block in the decision making and operation of any business. It helps us in taking the informed decisions and identify the missing op- portunities and the possible threats for the business. It helps in doing a deep SWOT analysis for the business. In this report, we have detailed representation of our find- ings from our recently carried out primary market research for our salon Disguise the World. By conducting this research we have collected data about our market directly from our potential and perspective customer and have received a deeper understanding of the beauty industry. In this report we will be talking about our Target market, Market size, Research methodology used and market strategies opted. We will also specify the unan- swered questions and the changes we made to our business strategies. OUR TARGET MARKET As we will be using homemade organic beauty products at Disguise the World and therefore it is a niche business idea catering a specific group of customers who are aware of using the chemical free products so our target market is the following specific groups. • Health - conscious people • Allergy prone people • Professionals • Young boys and girls • Environment concerned people DISGUISE THE WORLD 3

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• Local Population. RESEARCH METHODLOGY In this Research, to gather primary research data. we used a combination of two methods of research namely, In-person surveys and the online feedback forms. Why these methods were used? The in-person surveys were used to gather more and more information from salon customers and and build a rapport with the existing salon customers and engaging with them face to face. Whereas Online surveys were used to reach a greater num- ber of customers through social media. We introduced our online feedback forms to collect data digitally from customers on platform like instagram and Facebook. SAMPLE SIZE We distributed the 200 in-person surveys in malls and grocery stores within a week and also put the online survey on instagram and Facebook via a digital copy of feedback form which resulted in a wider response of 450 people. QUESTIONS ASKED IN SURVEY • Why do you visit a Salon? • For which service you often visit a salon? • What factors influence your choice of a salon? • How satisfied are you with your current salon services and pricing? • What kind of ambience of a salon you like? • How far would you like to travel from your home for a salon? In response to our above asked questions we received a lot of feedback answers re- spondents were concerned about the quality of services offered and products used, DISGUISE THE WORLD 4

people are willing to pay more for the quality of the service. Moreover, proximity is a concern for people because of time constraint people want something nearby in there town itself where they can readily reach within less time and enjoy the ser- vices. REVIEW OF RESEARCH Our research did fairly well by using two methods of survey, this way we got re- views from the existing customers and potential customers. We came to know through these survey that customers are really concerned about the ambiance of the salon choice they make. Its a good news for us that customers are really being en- vironment friendly and want to try the organic based beauty products. Moreover, we also realized that there is a great demand among customers for nail art and nail extension. So, we will also consider expanding our business to nail art later. Unanswered Questions Will investing much on ambiance of salon be fruitful, if yes then how much to in- vest? Is nail art business good to add in our existing salon business? DISGUISE THE WORLD 5

Marketing Strategies After thorough research to understand our target audience and requirements to run our salon, here are some of the marketing strategies that would be incorporated in the process. It is essential that we understand the needs and requirements of our potential clients, which would allow us to offer best services available and best services needed to run our business as well. Market strategies are vital for the success and growth of a business due to several reasons. Firstly, market strategies provide a clear direction towards achieving the goals and objectives of the business. This ensures that the organization is focused on what re- ally matters and avoids aimless activities that may hinder progress. Secondly, market strategies are based on a deep understanding of the customers, their preferences, needs, and behavior. This knowledge allows businesses to tailor their products or services to meet customer demands effectively. Thirdly, a well-designed market strategy helps a business differentiate itself from competitors by identifying and capitalizing on unique strengths and opportunities. This creates a competitive advantage in the market. Fourthly, market strategies help in efficient allocation of resources, including fi- nancial and human resources. It ensures that the business invests in areas that will have the most significant impact on its objectives. DISGUISE THE WORLD 6

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Fifthly, by assessing market conditions and potential risks, market strategies can help businesses prepare for challenges and uncertainties. This proactive approach reduces the impact of unexpected events. Product Here at ‘Disguise the world’ Unisex salon we offer wide range of products for the customers to choose from, they would have the amazing options to choose from, following are the list of products and services offered at ‘Disguise the World’ Uni- sex Salon. · Hair Care Services a. Haircuts and styling b. Hair coloring and highlights c. Hair extensions d. Hair treatments (e.g., conditioning, keratin treatments) e. Perms and straightening · Skincare Services f. Facials g. Skin treatments (e.g., acne treatments, anti-aging treatments) h. Waxing and hair removal i. Eyebrow and eyelash treatments (e.g., tinting, shaping) · Makeup Services a. Makeup application for special occasions (e.g., weddings, parties) b. Makeup lessons and consultations c. Airbrush makeup · Spa and Relaxation Services a. Body wraps and scrubs b. Steam baths or saunas c. Aromatherapy d. Wellness treatments (e.g., aromatherapy, relaxation therapy) · Bridal Occasions e. Bridal makeup and hairstyling DISGUISE THE WORLD 7

f. Bridal party packages g. Pre-wedding beauty treatments · Retail Services a) Homemade Beauty products and treatments b) Skin care products Potential Customers After the thorough research and understanding of the market segmentation we reached on the following understanding, 1) Quality Services 2) Personalized Consultations 3) Relaxation 4) Affordable 5) Reliable These are the main requirements consumer’s demands and also of the potential customers as well. Price After the thorough research for our brand it is important to know all the details re- quired to guide the customers for better experiences. Below is the price range for our expected services and products at the “Disguise the World’ Unisex salon. · Hair Care Services ( $10- $200) · Skin Care Services ($10- $200) · Makeup Services ( $10- $500) · Spa and Relaxation Services ($10- $100) · Bridal Occasions ($10- $500) · Retail Products ($10- $100) Idea of our Competitors DISGUISE THE WORLD 8

· Hair Care Services ( $50- $200) · Skin Care Services ($25- $200) · Makeup Services ( $50- $500) · Spa and Relaxation Services ($50- $100) · Bridal Occasions ($100- $500) · Retail Products ($50- $100) This is an expected price range for our services, we reached the conclusion to tar- get this much amount is due to our market research and understanding what exactly our company needs. Price Determination Understanding the costs of running a salon and determining the right pricing strat- egy can be key to success. - Calculated the cost of delivering each service, taking into account labor, materi- als, rent, utilities, and overhead costs. - Researched and analyzed the pricing strategies of your competitors in the local area to identify what customers are currently willing to pay for similar services. - Identified different customer segments based on their preferences and needs, and tailor your pricing strategies accordingly. - Defined salon's unique value proposition by considering what sets us apart from the competition and how that impacts the perceived value of your services. - Ensured that pricing strategy aligns with the brand image you want to create. As our salon positions itself as not a luxury destination, higher pricing may be inap- propriate. - Considered how price changes will impact customer demand, and use tiered pric- ing structures that cater to different customer segments. - Planning discounts, promotions, or loyalty programs to attract new customers or reward returning ones, and make sure they are well-publicized. DISGUISE THE WORLD 9

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- Conducted A/B testing to gauge customer response to different price points for your services, and make adjustments as needed to remain competitive and respon- sive to market changes. - Continuously monitored pricing strategy and also gathered customer feedback to evaluate profit margins and ensure that you are maintaining healthy margins while covering our costs and achieving your business goals. - While marketing and customer communications, communicating the value and benefits customers receive from our services to justify our pricing. Promotions Promoting a unisex salon in a Canadian town requires a comprehensive marketing strategy that utilizes various promotional methods to effectively reach your target audience. Local SEO and Online Presence To improve our salon's visibility online, we created a professional website with in- formation about our services, pricing, and contact details. Optimizing it for local search engine optimization (SEO) to rank higher in local search results. Social Media Marketing Establish active profiles on popular social media platforms like Facebook, Insta- gram, and Pinterest, and share photos of your work, client testimonials, and promo- tions. Engaging with our audience by responding to comments and messages. Email Marketing Building an email list of customers and interested parties to send regular newslet- ters with salon updates, promotions, and beauty tips. Online Advertising Using paid online advertising such as Google Ads and Facebook Ads to reach a broader audience and target specific demographics and locations. Local Directories DISGUISE THE WORLD 10

Ensuring our salon is listed in local online directories like Google My Business, Yelp, and Yellow Pages, and encouraging satisfied customers to leave reviews and ratings. Community Engagement Participating in local community events, fairs, and fundraisers to show our com- mitment to the community. Sponsor or support local sports teams and charities to increase our salon's visibility. Grand Opening Event Organizing a grand opening event to create buzz and attract residents. Offering special promotions, giveaways, and discounts to encourage attendance. Referral Programs Implementing a referral program that rewards existing customers for referring new clients to your salon. Word-of-mouth referrals can be powerful for a local business. Collaboration Partnering with other local businesses like clothing boutiques, wedding planners, or photographers for cross-promotions. For instance, offer package deals for bridal services in collaboration with a local wedding planner. Localized Content Creating localized content that resonates with our local audience, like blog posts about local beauty trends, customer spotlights, or community events related to beauty and wellness. Professional Photography Investing in high-quality professional photography of our salon, staff, and services. Using these images in your marketing materials and online presence to showcase your work. Loyalty Programs We will implement a loyalty program that rewards repeat customers with discounts or free services after a certain number of visits. Traditional Marketing Traditional marketing methods like flyers, posters, and local newspaper advertise- ments to reach a broader local audience are also very useful. DISGUISE THE WORLD 11

Public Relations Building relationships with local journalists and bloggers who can feature our sa- lon in local media outlets or write reviews. Customer testimonials Sharing success stories and before-and-after photos of satisfied customers. Testi- monials and visual evidence of our skills can build trust and attract new clients. Why did we choose this methods of Promotion? When promoting a unisex salon in a Canadian town, selecting the right promotion methods is crucial. Several factors and strategic considerations influence this selec- tion, such as reaching and engaging with the target audience effectively, promoting the salon's services, and building a strong brand presence. To establish a strong local presence, the chosen methods include local SEO, social media marketing, online directories, and community engagement. These methods are essential for attracting customers from the town and surrounding areas. Having a strong online presence through a website, social media, and online adver- tising is crucial in today's digital age. These platforms allow the salon to reach a broad and diverse audience. Customer engagement is essential for building lasting relationships. Platforms like social media, email marketing, and content marketing enable the sa- lon to interact directly with customers, respond to inquiries, and engage with the audience. Online advertising platforms like Google Ads and Facebook Ads provide highly targeted options, allowing the salon to reach specific demographics, particularly people within the town who are most likely to be interested in their services. DISGUISE THE WORLD 12

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Customer loyalty programs and regular communication through email marketing contribute to customer retention, leading to the development of a loyal client base. Building a strong brand image that resonates with the local audience can be achieved through professional photography, public relations, and well-crafted con- tent marketing. To reach a broad cross-section of the local population, a mix of traditional and dig- ital marketing methods should be used. This ensures that the salon reaches cus- tomers who may still rely on more traditional forms of media. The chosen methods should be tailored to the local culture and preferences of the town in Canada, taking into account what is likely to resonate with the residents. Proper estimation and quantification of the financial and human resources required for your unisex salon is essential for effective planning and successful operations. 1. Financial Resources: a. Startup Costs: Determining one-time startup costs, such as space leasing or pur- chase, salon renovation, equipment procurement (e.g., styling chairs, wash sta- tions), licenses and permits, and initial inventory acquisition. Estimating these costs based on local market conditions and our business plan. b. Operating Expenses: List ongoing operating expenses such as rent, utilities, in- surance, payroll (for employees), product and inventory replenishment, marketing, and maintenance. Create a monthly or yearly budget that outlines these expenses. c. Working Capital: Calculating the working capital required to cover day-to-day expenses, particularly during the initial months when revenue may be lower than expenses. This working capital is essential to keep the salon running smoothly. d. Marketing Budget: Allocating a budget for marketing and advertising. The amount may vary based on the scale and objectives of our marketing plan. DISGUISE THE WORLD 13

e. Financial Contingency: Setting aside a contingency fund for unforeseen ex- penses or emergencies to ensure the salon's financial stability. f. Financing Options: Exploring financing options, such as loans, grants, or invest- ments, to cover our initial and ongoing financial needs. 2. Human Resources: a. Staffing Needs: Determining the number and types of employees you need, such as hairstylists, estheticians, receptionists, and support staff. Define roles and re- sponsibilities for each position. b. Staffing Costs: Estimate salaries, wages, and benefits for our employees. Con- sider local industry standards and minimum wage regulations. c. Training and Development: Budget for training and development programs to ensure your staff is well-equipped to provide high-quality services. d. Staffing Contingency: Consider hiring additional staff to cover peak hours or un- expected employee turnover. e. Recruitment and Onboarding: Account for the costs associated with recruiting, hiring, and onboarding new employees. f. Licensing and Certifications: Include the costs of obtaining necessary licenses and certifications for both yourself and your employees. 3. Financial Forecasting: a. Create Financial Projections: Developing financial projections for the first few years of operation, including income statements, cash flow statements, and balance DISGUISE THE WORLD 14

sheets. These projections will help us understand the financial needs of the salon over time. b. Regular Financial Reviews: Periodically review and adjust our financial plan as the salon grows and market conditions change. Place Our Salon ‘Disguise the World’ is situated in Whitby, Ontario. We plan to rent out our first location. So, the place where our business would be situated will be in downtown whitby. In our unisex salon there is less chances of retailing our products, they are mostly sold while the customers are in the store itself. For example our Hair Care services etc. Although we are planning to sell some of our homemade beauty products which we would retail in the near future, but for now we will try to sell it by traditional means of word of mouth strategy. Retailing our products have a significant role in the business growth so it is evident we have to consider retailing our products to maintain extra income and also invite our growth in the business. DISGUISE THE WORLD 15

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Assignment 2 arif toor 4nov

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