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Naturally Curly

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  1. Naturally Curly.com Phase II Marketing Research: Blake Bowen Erin Scott Lindy Johnson Jesse Walsh Heather Willis

  2. Outline • The Hair Care Industry & Competition • SWOT Analysis • Objectives of Market Research • Research Plan & Methods • Qualitative Results & Analysis • Quantitative Results & Analysis • Suggestions & Recommendations • Conclusion

  3. Hair Care Industry • 80,000 hair care salons • 75,000 beauty salons, 5,000 barber shops • Combined annual sales of $16 billion • A large salon has annual revenue of about $300,000 and 10 employees * www.marketresearch.com

  4. Hair Care Industry • The industry is highly labor-intensive, average annual revenue per employee is $35,000 • Hair care products make up 5-40% of sales revenue. • Gross margins are higher for hair care products than for services Business and Company Resource Center

  5. Competition • www.behindthechair.com • target market is all hair types • offer products, forums, and pictures, salon locations • www.curl.biz • target market is multi-ethnic women • offer curls products, pictures, forums, and salon locations

  6. Strengths • Only Website Dedicated to Curly's • Specific Demographic – Easier to Target Users • Dedicated Employees – Want to See Growth • Engaged, Loyal Community • 6,000 Users per day • Blog Posts • Purchase Products

  7. Weaknesses • Website is Busy, Hard to Navigate • Difficult for users to understand company lingo and abbreviations if not highly engaged • Specific Demographic - limited growth

  8. Opportunities • Google: Curly Hair • Increase advertising • Embrace curls – empowerment • Promotion on TV, magazines • Internet still growing • Expand the brand -Website for stylist community -Other countries

  9. Threats • Potential for other online curly communities to be developed • Behindthechair.com & Curls.biz – Competition • Is there a need for curly stylist website? • Inconvenience of Online Shopping

  10. Objectives of Study • Gain more understanding about decision makers within the salons with regards to ad spending • Understand what tools stylist use to educate themselves on the world of curls • Uncover additional tools they might want and how they would prefer to access them • To see if there is a market for an online stylist community like naturally curly

  11. What is an Online Stylist Community? • A online community is a place where ideas are exchanged and relationships are built between users • Examples: • Naturally Curly • Do It Yourself • Total Beauty • Beauty Blog Network • An online stylist community is geared specifically for the use of hair stylists

  12. Potential Benefits • Untapped Niche Market • Entrepreneurship Venture • New Profit • New Users

  13. Research Design • Begin with Qualitative Research • Use Findings to build Quantitative Survey • After Qualitative Survey Quantitative Online Survey

  14. Qualitative Research • 1st Step: Qualitative Research • Interview stylist at 5 local upscale salons in Birmingham • Blue Velvet • Hair Reflections • Salon 2412 • Hair Group • Sanctuary • Feedback to be implemented into Quantitative research • Attempt to gather further/ fresh insight

  15. Qualitative Research • Conducted informational interviews with stylists with in the Birmingham community • Wanted to gain insightful information about the stylist community, their perspective on curly hair, as well as their advertising and marketing tendencies • We also wanted to gather more information in order to produce a more thorough survey for the quantitative data collection.

  16. Qualitative Interviews • Prepared a list of questions for each of us to follow to be able to compare and analyze the data • Went to 3 salons in Birmingham • Sanctuary • Hair Group • Salon 2412

  17. Interview Responses(Key information that we learned) • People who cut curly hair, tend to have curly hair themselves, because they understand how it moves and works • An apprenticeship with a well known salon or hairstylist tends to be better than simply going to cosmetology because of the hands on experience

  18. Interview Responses Cont… • Where stylists gain information • Classes • Seminars • Salon Training • Trade Shows (this is the last venue of interest due to lack hands on training)

  19. Interview Responses • Interested in gaining more cutting education that included curly hair, but not just pertaining to curly hair • Interested in an online stylists community, but not necessarily one specific to curly hair • Key Aspects: • Blogging area • Q&A from a known hairstylists • Calendar for upcoming classes and seminars (even by region)

  20. Interview Responses(Advertising and Promotion) • All major decisions made by owner or business manager • Salons Promote in: • Own websites • Magazines (Bham Daily, Bham Mag, Black and White) • Direct Marketing through Direct Mail (from own email database and new residents in the local area) • Word of mouth • Samford University

  21. What We Gained • We were able to gauge initial responses to the new concepts we were testing • We were able to format a new survey including the ordering in which the questions would be asked

  22. Quantitative Research • Before launching we conducted several pretests • Created an gmail account to send out the surveys: StylistSurvey@gmail.com • Naturally Curly offered an incentive: Stylist Q & A worth $750 • Send emails to Naturally Curly Email Database for Salons: 400-500 Salons in Database on November 7th • We built the online survey & analyzed the results with SPSS- Statistical Software

  23. Non-Response Error • We experienced a very low response rate : 9.7% • Also almost ¼ of the emails were returned due to invalid email addresses • Due to non-response error we need to find other means of collecting data

  24. Collecting Additional Data • We contacted stylists from each of our hometowns to send out the survey to their colleagues • Orlando, FL • Hendersonville, TN • Atlanta, GA • Face-to-Face Interviews • Looked up stylists email addresses online using online stylist directories

  25. Face-to-Face Interviews • Stylist will not talk while cutting hair • Salons we visited: • In Vestavia: N’Vogue, Hairspray, Headstart, and Hair Impressions • In Homewood: Belk Salon at Brookwood Mall, SalonU, Affects Salon, Salon on Cresent, and Super Cuts • In Hoover: Headstart, Mastercuts, Trade Secret, Xcell Paul Mitchell Training School Salon, Team Image, and Belk Salon at Riverchase Galleria Mall • In Mountain Brook: Harpers Hair Inc. and Blue Velvet • In English Village & Crestline: A&W Salon, Aveda Salon, and Angel Hair

  26. Survey Method Online Interview Respondents

  27. Gender Respondents

  28. Age

  29. * 4 out of the 79 sample did not respond.

  30. PRIZM

  31. Which types of hair do you cut and style most frequently? (check all that apply)

  32. Stylists asked to check all that applied

  33. What percent of your clients have curly hair?

  34. Internet Usage 1= Never, 2= Rarely, 3=Sometimes, 4= Frequently, 5= Always

  35. Websites

  36. Likelihood of using a website for cutting & styling hair 1= Very Unlikely, 5= Very Likely

  37. How likely would you be to use the following features on a website for hairstylist? 1 = Very Unlikely, 5 = Very Likely

  38. Rank the importance of the following features with one being the most important and 9 being the least important. 1= Most Important, 9= Least Important

  39. Features: Calendar 1= Very Unlikely, 5= Very Likely

  40. Understanding the Target Market • Out of the 105 people surveyed, only 97 responded to this question: “Would you be interested in accessing more information online to expand your curl cutting and styling knowledge?” • Therefore the percentages are based on a scale of 97 rather than 100. • From this point on, only the data from “YES” respondents will be displayed creating a sample size of 79.

  41. * 1 out of the 79 sample did not respond.

  42. *1 out of the 79 sample did not respond.

  43. *1 out of the 79 sample did not respond.

  44. Likelihood of Using: Online Features Mean 1= Very Unlikely 5=Very Likely

  45. Suggestions and Recommendations • Update logo, colors • Bravo TV (Shear Genius), TLC (What Not To Wear) • Nick Arrojo • Contact salons that have been reviewed by NC users • Update and correct email databases

  46. Suggestions and Recommendations • Consider website for all hair types • Important to raise awareness of site to stylists • Partnerships • Redkin, AG Hair Cosmetics, P&G, Paul Mitchell • Other industry related websites