dilo hair salon_e_marketing

HANOI UNIVERSITY

FACULTY of MANAGEMENT & TOURISM

-----------------------o0o----------------------

ELECTRONIC MARKETING

Project:

APPLICATION OF ELECTRONIC MARKETING

IN DILO HAIR SALON

Tutor: Ms. Minh Hang

Tutorial 3 BA08

Group members:

Nguyen Thi Bich Diep – 0804000017

Nguyen Thi Loan – 0804000062

DILO Hair Salon 2011

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TABLE OF CONTENT

Abstract …………………………………………………………………………………... 3

INTRODUCTION OF THE BUSINESS ……………………………………………….. 4

1. Overview of DILO Hair Salon ………………………………………………. 4

2. Application of Electronic Marketing in DILO Hair Salon …………………... 4

SITUATION ANALYSIS …………………………………………………………...….. 5

1. Environmental Analysis ………………………………………..…………….. 5

2. SWOT Analysis - DILO Hair Salon …………………………………….…… 9

E-MARKETING STRATEGIC PLANNING …………….……………………………. 11

1. Market Opportunity Analysis ………………………………………...…….. 11

2. Brand Differentiation and positioning strategies …………………………… 12

OBJECTIVES ……………………………………………………………………..…….. 13

E-MARKETING STRATEGY ……………………………………………………..…… 14

1. Product ………………………………………..…………………………....... 14

2. Price ……………………………………………………………………...…... 15

3. Place ………………………………………………………………………..... 15

4. Promotion ……………………………………………………………..…....... 16

IMPLEMENTATION PLAN …………..…………………………………………..…… 16

REFERENCES ………………………………………………………...……………..….. 17

Appendix ………………………………………………………………………………….. 18


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ABSTRACT

E-marketing has become a strategic useful tool for modern businesses to develop their

network of customers. DILO Hair Salon (DILO) is a project that utilizes e-marketing’s

advantages in its operation. While most of hair salons in Hanoi have been strange to using

internet to approach clients, DILO set up a convenient website for them to search information,

to check the services and prices, to try a virtual service, and to enjoy other benefits. With the

intention to become the most reliable salon in Hanoi, targeting middle-to-high income women,

DILO tries to use e-marketing as a useful method to build and maintain customer relationship,

which can help the firm to succeed in the long run. In this report, we developed a business

plan for DILO with detailed analysis on environmental factors, company’s analysis, and the

use of e-marketing in a variety of activities.


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INTRODUCTION OF THE BUSINESS

1. Overview of DILO Hair Salon

DILO Hair Salon (DILO) is located at Km9, Nguyen Trai Street, Thanh Xuan

District, Hanoi. We offer professional hairdressing services within the city.

Services and Goods Our hairdressing services include color, texture, cutting, treatments, and styling and

specialty. The services are performed by a team of qualified and professional

hairdressers with the intention to bring about satisfaction to every customer.

Target Customers

DILO‟s products are aimed at middle-to-high income women, who are from the age

of 22 to 40. Our target customers lives and/or works within Hanoi‟s seven center

districts, a majority of those work or study in offices, banks, hotels, and universities.

Mission

With our capabilities, DILO is confident to highly satisfy even the most demanding

customers. We desire to discover and enhance the beauty for each woman by styling

and caring for her hair, therefore, make her more confident in work and life.

Vision

DILO tries to become the number one salon of Hanoi in terms of reliability, fashion,

and customers‟ relation.

2. Application of Electronic Marketing in DILO Hair Salon – Brief Description

DILO Hair Salon’s website: DILO‟s website is established along with the foundation of the hair salon.

As a usual hair salon‟s website, ours provides informational introduction about DILO

Hair Salon including establishment, location with map, hairdressers‟ information,


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services and products‟ images and prices. Besides, the web continuously updates

news and articles about hairstyles, hair trends, and hair caring tips for readers.

DILO Hair Salon’s Website – at http://dilo.byethost15.com/index.php/home

What makes DILO‟s website unique or outstanding from other rivals‟ is the ability

to interact with customers through an application of trial hairstyle software and an

online consultation service.

Online marketing:

Keeping in mind the power of online marketing, DILO takes advantage of the internet

in promoting our products. Other than the salon‟s website and some traditional

integrated marketing communication (IMC) tools, we use social networks, online

newspapers, other suitable websites, and e-mails in our marketing campaigns.

SITUATION ANALYSIS

1. Environmental Analysis

Demographic segment:

Hanoi – a very potential market with the concentration of a large amount of

customers

Hanoi is a highly populated city with about 6.7 million residents. On average, in this

city, there are nearly 2,000 people living per km2, which is eight times higher than the

whole country‟s average density (Huong, D 2011). The crowdedness of this market

makes it easier for any business to do mass marketing and to reach a large market

share. In Hanoi, people from the age of 22 to 40 amounts to a major amount of the

total city‟s population, they are also at the labor ages.

http://dilo.byethost15.com/index.php/home


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Economic segment:

A steady growth in Hanoians’ per capita income

Hanoians’ per capita income (VND million) – Source: GSO

People‟s earnings have been increased from 2005 to 2010 at a compounded annual

growth rate (CAGR) of 19.3%. This trend is likely to continue in the future and might

encourage consumption in this big city in recent years.

Socio-cultural segment:

Increasing awareness of the beauty’s benefits in work and life

In 2009, Nielsen, a leading global information and measurement company, released a

research on understanding Hochiminh City and Hanoi customer differences. This

study showed that the role of public opinion and social conformity is stronger for

Hanoians: “they don‟t just live for themselves and they do care what others think of

them. Appearance is the key”.

According to the result of our survey delivered to 100 women in Hanoi, there were

more people who highly appreciate the value of good hairstyles in their work and life.

86% of respondents believed that a fashionable hairstyle made them more confident in

job interviews, and in daily work. Besides, there were more than 80 people who

thought that a suitable hairstyle made them more beautiful and easier to draw

attention from the opposite gender.

2005 2006 2007 2008 2009 2010

15.618.4

22.4

28.1

31.8

37.7


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Customers’ resistance to make changes in hairstyles

In our study, there were about 47% of people saying that they often didn‟t want to

change their hairstyles. Among those, about 80% shared that they were afraid the new

style would make them look worse, and only 10% blamed on their financial

conditions. It can be seen that there is a big risk for women not to come to salons. If

they could foresee their appearance before actually realizing it, they would not be so

hesitant.

The influence of Korean and Japanese styles on Vietnamese women’s preference

On TV channels, Internet, and magazines, it is very easy to see Korean movies,

Korean and Japanese music, and Korean‟s and Japanese‟s most updated hairstyles.

Their intensity of appearance, along with the similarities among Asia people‟s

cultures including Korea, Japan, and Vietnam, has strongly influenced Vietnamese

women‟s style of beauty making-up, in general and their hairstyle preferences, in

particular.

SNSD band from Korea A Korean actress’s news on a popular

Vietnamese online newspaper

In the question about their hairstyle preferences, 84% people liked Korean actresses‟

and singers‟ styles, 13% of them preferred Japanese‟s ones. That also explains why

existing hair salons in Hanoi often offer their customers catalogues of Korean

celebrities‟ and models‟ photos to choose the style they want.

A habit of using internet for searching information and interacting with each other

Cimigo, an independent team of marketing and brand research specialists operating

throughout the Asia Pacific region has just published a report on using Internet in

Vietnam 2011. According to that, about 62% of Vietnamese used internet every day,

and most of them use internet for reading news and searching information (97%). The


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number of Internet users who participated in social networks, such as Facebook,

Twitter, Myspace, and Zingme had increased from 41% in 2010 to 55% in 2011.

Different channels of marketing’s influence on Hanoians’ purchasing decisions

Nielsen‟s study showed that Seller‟s website and forums affected the buying decisions

of the largest number of consumers in Hanoi.

Different channels of marketing’s influence on Hanoians’ purchasing decisions –

Source: Nielsen

The concern about hair chemical’s quality and safety

The survey with 100 customers showed that all of them often worried about the

quality and the safety of the chemicals used to their hair when they went to hair

salons. What people really wanted to know the most is the brand of the product and its

origination, they were afraid that the chemical could cause them allergy or cancers.

Technological segment:

The availability of hairstyle trial soft wares in the world

Dailymakeover.com, Hair Master Software, and Digital Hairstyle software are typical

examples which allow users to choose different hairstyle, hair color for them.

Hairstyle Trial Soft Ware

Advertisements

Newspaper/magazine

Recommendations from sellers

Internet/other websites to compare information

Seller websites and forums

91%

83%

67%

95%

100%


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Political/legal segment: Up to now, there has been no particular regulation for hair salons in terms of using

chemicals in their businesses.

2. SWOT Analysis - DILO Hair Salon

Strengths:

The commitment to use high-quality and safety chemical

Because customers often worry that the chemical used to their hair can do harm to

their health, DILO commits to show customers the brand and the origination of every

chemical used. All of those products must have well-known brands in the world or in

the country; they must receive the certificates of health safety from the Ministry of

Health.

A strong client management

DILO makes frequent contacts with its customers by the firm‟s website, e-mails and

mobile phones. News and videos are updated almost every day to the website of the

company. Users are likely to get used to logging in the website every day for reading

a variety of information. The news‟ contents include hairstyle trends and hair caring

articles. Website‟s users provide their database to DILO when they want to log in the

website, a profile will include name, age, gender, address, work place, mobile phone

number, and e-mail address. These contacts will be used to deliver advertisement and

promotion messages to customer personally and to help DILO‟s staff remember their

customers better. Customer reliance and relationship will also be enhanced by the

application allowing them to receive online personal consultation. An administrator is

responsible to ensure the activities on DILO‟s websites to run smoothly so that users

always feel convenient.

A unique trial service

Hairstyle trial software is applied on the website and at the salon in order for

customers to choose the style they like for themselves before going to the real salon.

The use of trial software is to reduce customers‟ risk before deciding to go to DILO

Hair Salon. They can require our hairdressers to realize the hairstyle they want.

A well-trained team of hairdressers and employees

All of DILO‟s hairdressers graduated from TONI&GUY Academy, a well-known

brand for training hairdressers in the world. They are experienced, skilful and

professional. Every employee in the salon was trained thoroughly in customer-

focused business practices. This ensures to satisfy the most demanding customer from

the very beginning step – reception.


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Receptionist

A wide and polite space and parking place

Different from lots of other salons in the city, DILO has a spacious site (100m2) that

can serve more than 15 customers at the same time. We offer waiting desks with tea

and candies for clients and their friends or relatives.

A corner inside DILO Hair Salon

A secure and wide parking place is available for customers who travel in their

personal cars and motorbikes. This is one of the very important factors that consumers

often concern going to a salon.

Spacious parking site

Weaknesses:

Lack clientele list

Being a new salon for Hanoians, DILO lacks a clientele list of this market. The salon

will have to try very hard to attract customers from the beginning.


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Relatively high prices

Our salon offers a price level that is about 10% higher than the market‟s average. This

mark-up is to compensate for the use of high-quality products, an expensive renting

fee (house renting and car parking site renting), and higher salary for experienced

hairdressers.

Opportunities: A steady growing market that is traditionally unaffected by the economic environment

In general, this kind of service is not much affected by the economic condition,

especially in Hanoi where people have relatively high income. This is the chance for

hair salons to make profit even when the economy becomes downturn.

The ability to decrease marginal fixed costs as the customer base grows

The high price charged to each customer at the beginning will be able to reduce in the

future thanks to the increase in the number of customers coming to the salon. At that

time, the fixed costs in renting, salary per customer will be declined.

The ever-evolving hair trends and styles can present many opportunities for the hair

salon

Hair trends change year over year, and even faster, season over season. Women may

have the tendency to update their hair to look more fashionable in the eyes of

surrounding people. The hair salon can regard it as opportunities to increase

customers‟ frequency of use.

Threats:

The fierce competition from rivals and new entrants

DILO Hair Salon will have to cope with the completion in market. In order to win

over its rivals, DILO will have to make ongoing strategic moves in attracting new

customers and retaining existing ones. The salon might introduce new styles very

often, provide new promotions and specials for their customers, as well as ensure the

smoothness of the operation both online and offline.

E-MARKETING STRATEGIC PLANNING

1. Market Opportunity Analysis

Demand analysis

As mentioned in “Environmental Analysis” part, the demand for hair-related service

is growing everyday. Recently, women, especially those who live in big city like

Hanoi, care more for their appearances. They want to be more confident in work and

life and they have a growing income, which can encourage them to hair salons more

frequent to get their hair look better. Hanoian female from the age 22 to 40 are very

familiar with internet nowadays so the use of online applications in marketing is very

profitable.


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Supply analysis

DILO possesses a lot of strengths and competitive advantages which can help us to

outperform competitors. DILO has a team of experienced and customer-oriented

hairdressers, the commitment to use high-quality products, a good brand with several

honorable prizes, and an effective utilization of internet in doing marketing. It is not

easy for other salons to achieve those advantages in the near future. However, our

rivals have experience in Hanoi market and they may also use internet to promote

their firms in the future. To win over them in the long-run, DILO will have to ensure

the salon‟s quality while continuously bringing to customers benefits by gifts, sale-off

programs and maintaining customer relationships with the support of the company‟s

website and employees.

In conclusion, DILO target Hanoi market because of its profitability and high demand

now and in the future. Women from 22 to 40 years old with middle to high income

will be our main customers. They are frequent users of this kind of service, they are

technological familiar and they always expect professional services, which can

entirely be offered by DILO Hair Salon.

DILO aims to positions ourselves as a highly reliable salon for customers. We do not

stop at making them more beautiful, we offer them safe and high-quality service with

the commitment to use globally branded hair caring products. The reliability also lies

in our ability to realize customers‟ expectation and imagination of their new hair. Our

experienced hairdressers can make each client‟s hair as similar as possible to what

they have tried in the hairstyle trial software in terms of hair shape, hair length, and

hair‟s color. We also provide them with reliable advice and consultation in caring

their hair before and after any hair treatments.

Besides, DILO salon desires to become a relaxing space for our customers. We utilize

music, décor, and flowers in the salon so that customers can comfort their senses. Our

employees regard customers as relatives. They must remember their names, talk to

them friendly and serve them well.


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OBJECTIVES

DILO aims to achieve the following objectives:

Objectives Tasks Measurable quantity Time frame

Increasing market share

Use IMC tools effectively

Encourage customers to spread

positive word-of-mouth

Try to cut down price as the demand

grows

On top 10 salons in Hanoi

about market share By 1 year

Increasing sales revenue Encourage customers to spread

positive word-of-mouth

5 times as much as month

1‟s revenue By month 12

Achieving branding

goals

Appear on the top list of Google

Search for hair salon in Hanoi

Appear on popular online

newspaper and websites every week

Realized by 10% of

targeted customers in

Hanoi

By 1 year

Increasing database size

Increase the number of people using

DILO‟s website and trial service

Update the website‟s news

Update the trial software‟s

hairstyles

15 times as much as

month 1‟s database size By 1 year

Achieving customer

relationship management

goals

Ensure not to let customer wait for

more than 20 minutes

Ensure all customers receive

greeting messages on special

occasions

Ensure receptionists to smile to

customers and remember their

names

Ensure hairdressers to have friendly

talks with customers in the salon

Number of regular

customers increased by

7% per quarter

From start-up

to the end of

year 1


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E-MARKETING STRATEGY

1. Product – Three levels of product

Core product - Hairdressing services

The core benefit that DILO brings to customers is the confidence in their own beauty.

Actual product

Quality of the finished hairstyles

The actual products that DILO delivers to customers are their new hairstyles, which

fit with their expectations stepping in the salon. No matter how well the salon can

serve their customers, if they don‟t like their new hair, it will be hard to see them

come back. Keeping that in mind, DILO commits to use only experienced and

qualified hairdressers to serve our customers.

Quality of chemical

As mentioned in the “Strengths” part, all products used in DILO for hair treatments

are safe and high-quality. Among those, examples of our favorite brands are

Schwarzkopf Professional – a famous company in Germany and Selective

Professional – one of three leading brands in Italia and Europe in hair caring products.

Both of these lines are preferred to use by professional salons in the world for their

effectiveness and safety.

Schwarzkopf Professional products Selective Professional products

Salon’s brand name

The other benefit that DILO can bring to customers is the reliability in the salon‟s

brand name; an enterprise has won several honorable prizes in national hair contests

like Wellla and The Golden Scissors.

Augmented product – Mainly supported by electronic tools

Consultation service

DILO‟s customers receive free consultation from our team of professionals. The

advice can be about hairstyles, hair caring, hair repairing, price, time to use service

and any promotion programs if needed. Consultants can contact with customers

through DILO‟s website, phones, or e-mail. 100% of customers coming to the salon

will receive hairdresser‟s direct consultation.


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Trial service

Customers can use our hairstyle trial software for free either on the company‟s

website or directly at the salon.

Music and décor of the salon

In DILO Hair Salon, customers can enjoy music and an eye-catching décor style with

flowers and green trees, which can make them comfortable and relaxing.

Information

Taking advantages of the website, we always provide to customers with updated

news, new tips, and new trends. Especially, the salon‟s professionals will train

customers on how to care for their hair after treatment, how to beautify their hair

correctly, and how to temporarily design hairstyles by themselves at home.

2. Price

DILO applied a dynamic pricing for the salon’s services. Price policy is updated

on the company‟s website in case there is some change.

DILO’s regular customers receive discounted prices. The discount can ranges from

5% to 30% based on their frequency of using the salon‟s services.

Customers receive discount for the next time of use if they can introduce others

to DILO. We want to take advantage of word-of-mouth marketing by encouraging

customers to introduce their friends, relatives, colleagues, and neighbors to DILO.

This is the solution for us, a new brand in Hanoi, to develop our customers list.

Service’s prices are deducted when customers come during low demand time and

seasons. According to that, it is up to 20% cheaper for people who come during the

mornings from Monday to Friday, and for people who use services from March to

June. The peak time for the salon is afternoons, early evenings, weekends, and before

Tet Holiday.

3. Place (Distribution)

DILO uses direct marketing for product distribution. Customer may seek for

DILO‟s consultation through our website; however, they have to come directly to the

salon for their hair to be actually done.


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To make it easy for first-time users, our website presents a map to allocate DILO Hair

Salon within Hanoi.

4. Promotion (Intergrated Marketing Communication)

Details about promotion are presented below:

Tools How When

Advertising DILO‟s website

Google ( Google trends)

Facebook

Muachung, Hotdeal, Nhommua

Leaflets which are deliveried at the office, and universities

Magazines ( Hair magazine)

On-going

Once per 1-3 months

Start-up

Once per 1-2 months

PR Sponsorship:

Free hair make-up for beauty contests‟applicants

Sponsor events: Vitamin or Hair contests

Start-up and occasionally

Sales

promotion

Discount coupons

Software: using trial service online

Photos contest: create hair contest in the forum for member

in the website, the winner will receive the discount or

premium

Premium: VIP card for regular customers,

Start-up and occasionally

On-going

1-2 times/ years

On-going

IMPLEMETATION PLAN

Please visit our website at http://dilo.byethost15.com/index.php/home/about

http://dilo.byethost15.com/index.php/home/about


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REFERENCES

Huong, D 2011, „Hà Nội ra quân hưởng ứng tháng hành động quốc gia về dân số‟, VGPNews,

viewed 20th

November 2011, <http://baodientu.chinhphu.vn/Home/Ha-Noi-ra-quan-huong-

ung-Thang-Hanh-dong-quoc-gia-ve-Dan-so/201111/103399.vgp>

DILO Hair Salon‟s Website, <http://dilo.byethost15.com/index.php/home>

Vaughan Ryan, 2009, HCMC v Hanoi Understanding consumer diffrences, The Nielsen

Company

Cimigo, 2011, Báo cáo NetCitizen Việt Nam 2011, Cimigo

http://baodientu.chinhphu.vn/Home/Ha-Noi-ra-quan-huong-ung-Thang-Hanh-dong-quoc-gia-ve-Dan-so/201111/103399.vgp

http://baodientu.chinhphu.vn/Home/Ha-Noi-ra-quan-huong-ung-Thang-Hanh-dong-quoc-gia-ve-Dan-so/201111/103399.vgp

http://dilo.byethost15.com/index.php/home


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Appendix: PHIẾU ĐIỀU TRA Ý KIẾN KHÁCH HÀNG

Họ và tên: Tuổi:

Di động: Nghề nghiệp:

1. Bạn nghĩ thế nào về tác dụng của kiểu tóc đẹp trong buổi phỏng vấn xin việc và

trong công việc hàng ngày?

Làm tôi tự tin hơn

Không có tác dụng gì mấy

2. Bạn nghĩ thế nào về tác dụng của kiểu tóc đẹp khi gặp gỡ và tiếp xúc với người

khác giới?

Làm tôi lôi cuốn hơn

Tôi không quan tâm tới vấn đề này

3. Bạn có muốn hài lòng với kiểu tóc hiện tại của mình không?

Có (bỏ qua câu 4)

Không

4. Bạn có sẵn sàng tới salon để đổi kiểu tóc của mình không?

Có (bỏ qua câu 5)

Không

5. Vì sao bạn không muốn đổi kiểu tóc của mình?

Sợ kiểu tóc mới sẽ làm mình trông tệ hơn

Chưa đủ điều kiện tài chính

Quá bận và chưa có thời gian

Lý do khác. Cụ thể:

6. Bạn thích các mẫu tóc của đất nước nào nhất?

Không quan tâm

Hàn Quốc

Nhật Bản

Trung Quốc

Pháp

Mỹ

Khác. Cụ thể:

7. Khi tới các salon tóc, bạn có lo lắng về nguồn gốc, chất lượng và độ an toàn của

hóa chất sử dụng không?

Có và được salon giới thiệu rõ ràng

Có nhưng không được salon giới thiệu rõ ràng

Không

8. Những điều bạn quan tâm khi quyết định đến một salon tóc. Có thể chọn nhiều

hơn một đáp án:

Hàng quen

Nhân viên có tay nghề


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Nhân viên cởi mở

Giá cả phải chăng

Không gian rộng rãi, thoáng đãng

Có nhạc và có trang trí đẹp mắt

Hóa chất sử dụng an toàn, có thương hiệu

Có nơi để xe ô tô

Khác. Cụ thể:

9. Bạn thường tìm thông tin về salon tóc qua đâu?

Người thân, bạn bè

Website của salon đó

Trên báo

Trên các trang web tương tự như Muachung, Nhóm mua, vv

Khác. Cụ thể:

10. Kể tên các website bạn hay vào khi sử dụng Internet:

11. Bạn sử dụng Internet như thế nào?

Hằng ngày

Thỉnh thoảng

Hiếm khi sử dụng

Không sử dụng

12. Bạn muốn website của một salon tóc có những nội dung gì?

Thông tin về thợ làm tóc

Thông tin về sản phẩm sử dụng để làm tóc

Thông tin về giá

Thông tin về chăm sóc và xu hướng tóc

Tư vấn

Phần mềm thử kiểu tóc

Khác. Cụ thể:

13. Salon chúng tôi có ứng dụng phần mềm giúp bạn xem trước kiểu tóc có phù hợp

với gương mặt bạn hay không, bạn có mong muốn được thử không? (Hoàn toàn

miễn phí)

Có

Không

14. Bạn thích chương trình khuyến mãi như thế nào ở một salon tóc?

Không thích khuyễn mãi

Giảm giá nếu tới nhiều lần

Giảm giá nếu giới thiệu người khác cùng tới

Tặng quà

Khác. Cụ thể:

Cảm ơn quý khách đã tham gia trả lời câu hỏi!