The market analysis for my product consists of both primary and secondary research and an analysis of my direct competitors. Primary research My primary research consists of a questionnaire that was carried out in the area of Hackney. Below shows the results that the questionnaire gave. How old are you? Most of my respondents were 26-45 and made up 60% of my answers. Do you or would you get your hair done at the hairdressers regularly? 78% of the respondents said that they do would like to get their hair done at the hairdressers regularly. This means that there is quite a high market for the service.
Do you or would you go to nail Do you or would you get a technicians to get a manicure? Professional wax done regularly? Under half of the respondents said that they would like to or do get a regular professional manicure or waxing service. This would be an adequate market to build on and good support towards the main area of service, hairdressing. The questionnaire also asked why each of the women said no to these questions. The results showed that their main reason was that these services were too expensive as shown below. If not why? To broaden the market and to encourage more customers price has to be taken into deep consideration.
Would you find it more convenient if all these services were all in one place and could be done at the same time? Yes 85% If the prices were lower, or if there was a salon near would you go to the salon? If these issues were eliminated then soraya styles will have a larger market to work with. Secondary research Hackney Hackney is the area which Soraya styles will be located, it is an area situated in East London with an overall population of 202,819 people.. My research on Hackney consists of employment and population statistics and the demographics of the area. Population
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The total population of Hackney is 202,819 people. Ethnic population 24. 7% of the population in Hackney are black or black British compared to 2. 3% of the population in England. Ages and gender Since my target market will be female it is important to look at the population of females within the area. The graph below shows the population statistics and projections for the proportions of males to females in Hackney. Since 1991 there has been a larger number of females than males in Hackney and the population of females is expected to grow in the future and leave a bigger gap between the two.
At present 52% of the population are females and is set to grow for the future increasing my target market. My primary research showed that 60% of my respondents were within this age group and gave positive answers to the questionnaire. These results mean a larger proportion of the market I will be able to reach also within this age group females are more likely to have stable jobs and a higher disposable income. Employment Below shows the employment statistics of Hackney. Only 51. 4% of the population just over half are employed. This is less than the English average.
A low employment rate means less people are getting a regular income so have less to dispose of. 6. 9% are unemployed which gives rise to easier employment. Soraya styles will be a full beauty service, although hair is the main focus, clients can also get their nails done and a wax under the same roof and in the same appointment. It is unique from other hair salons but does not have the expense of a day spa. The hairdressing salon will specialise in Afro-Caribbean hair using Nexxus products one of the leading black hair and beauty organisations.
Soraya styles will be motivated towards the idea of a quality service and friendly environment. It will provide a hairdressing service but also nails and waxing is provided. Customers can come in to make appointments or phone in, they will be greeted by a receptionist and guided to the waiting area, which will have a TV and magazines or brochures of hairstyles to keep them occupied while they are waiting. Refreshments will be on offer to them also. Customers can come in for either one of the services separately or can use the whole beauty service.
When using the whole beauty service they will have it all in one appointment so they don't have to wait. The idea of the salon is convenience. Women who get their hair done at a salon regularly are usually those who like to look after their appearance and will usually have good nails and a good wax also. My salon brings the convenience of having them all done under the same roof and at a reasonable price. The aim is to bring these services to a lower class market that cannot afford day spas. My primary research shows that convenience are what people are looking for as shown in the table below.
Would you find it more convenient if all these services were all in one place and could be done at the same time? The prices of my service are quite low compared to that of other salons. I feel that this will create a higher demand for my service. I have made the prices affordable to attract the part of my market that finds these services too expensive. From my primary and secondary research it shows that incomes are quite low, unemployment is high and women don't feel the need to spend a lot of money on these services so prices for my service will be quite low to attract customers.
I will use two types of pricing strategy, Competitive pricing and promotion pricing. My research shows that my service will be price sensitive because the women I asked don't feel the need or have the money to spend a lot of money on pampering themselves. The main reason why they don't get their hair done, nails done or get a professional wax is that it is too expensive as shown in the graphs below. Do you get your hair done at the hairdressers? If not why? As a hairdressing salon it will be in a fairly competitive market so competitive pricing strategies will be used.
Competitive pricing I will gain a larger customer base by using a competitive pricing strategy and offering lower prices than my direct competitors and a still quality service. My competitor's customers will see the same quality at lower prices and would prefer to use my service and those that don't go to the hairdressers regularly because its too expensive will find my prices more affordable. Promotion pricing At the beginning of service various promotion pricing strategies will be used to build a client base.
Special offers and free completion trials will get people to come their first time and then the quality and low prices will keep them coming back. Customers will receive special offers when using the entire salon service and free gifts and promotions when they come a certain amount of times. My direct competitors are Design Room hair salon within the area of my salon. It is a top of the market salon and charges high prices. My salon is aiming at a middle market. To compete with them the price of my service will be lower. The table below shows the differences in pricing between Soraya styles and Design Room.
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