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Marketing Case Study For Competitions:Sparkle Nail Salon

•Founded in Cambridge, Massachusetts in 2000 by Kim Nguyen.

•Sparkle’s first few years were rocky as Kim struggled to compete with the full-service spas and low-cost salons around town.

•With only 200 clients, Kim decided it was time to advertise.

Company Background

•Without a clear strategy, Kim was unaware of what to do.

•She set-up a newspaper ad contract and also purchased a small billboard ad, both with a 3-month commitment.

•Kim’s total advertising expenditure was $9,000. In those 3 months, Sparkle gained 51 new clients.

Original Marketing Implementation

•Kim wasn’t satisfied with the return, so she let the billboard expire and dropped the newspaper ads to once a month.

•An employee suggested a nail design competition, so Kim purchased a banner to hang over her storefront promoting it.

•Customers booked appointments with one of 5 competing artists to receive an avant-garde nail design.

Nail Design Competition

•For booking a competition appointment, customers received a free manicure/pedicure coupon.

•Pictures were taken of each design and the clientele were able to vote for their favorite.

•The nail artists were charged with referring new business into the salon to vote for their designs.

Nail Design Competition

•Each artist booked 10 appointments, which led to 50 entries total, 38 of which were new clients.

•The voting process became complicated so Kim decided to take the voting online.

•The banner, which cost $150, did not include dates, so Kim will be able to use it for future competitions.

Growth and Adjustments

•Kim found a niche to make Sparkle Nail Salon a successful business.

•Since high-end and low-cost were already taken, Kim instead chose cutting-edge.

•Hosting a competition built the credibility of her employees and increased word-of-mouth.

Outcome

•The business signs attracted so many new customers that Kim ordered another banner featuring her manicure and pedicure special.

•The 1-month competition and its subsequent bookings brought 75 new clients to Sparkle for a fraction of the original marketing investment.

Outcome

•Find a niche in your market. Find a specific demographic and focus on reaching it in the most-effective way possible. •If expensive ads aren’t in the budget, there are alternatives. Look for mediums that provide high “bang for your buck.” •Hosting a competition not only builds buzz and awareness, and it also pushes your employees to be the best. •Utilize the power of word-of-mouth. New customers are more-likely to believe those they trust.

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