spykar new comptt.- day 3

8/9/2019 SPYKAR New Comptt.- Day 3

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SPYKAR LIFESTYLE LTD.

Team ::

Navpreet Singh

Darshan Singh Chitkara Business School


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Positioning Statement

For the educated and style conscious youth , SFX salon is a one stop shop 'forcomplete and personalized beauty needs as it is a state of the art style salon with

fashion gurus as your personal stylists. Spykar has already proved itself as a trend

setter in the arena o Fashion and st le in its Denim Division.

Sir

All our strategies will be

based on a constant

evaluation of what the

competitors are doing and

our positioning strategy.With a swift change in the

market scenario i.e. Foreign

brands entering the market,

players in the same segment

gaining fast on market-

share. There is a need to

reposition our brand and

move onto different

segments.

Evaluation of Competitors {Case Extracts}

LOreal is a well established brand, it changed itssegmentation strategy i.e. has shifted its focus from

mid aged women to youth; so far it has succeded in

its strategy. They are a complete salon with in-house manufacturing of products as well. Thus

have been able to heavily promote the complete

brand as whole (not just their salon business :

Internal Economies of scale).

Matrix, is operating in the same price levels asours, has rapidly increased its customer base. It has

gone on an aggressive strategy of offers anddiscounts.

Brand Ahas a celebrated foreign stylist and introduces latest foreign trends.Brand B has roped in one of the leading stylist for Bollywood.{Both Brand A and Brand B, are spending lavishly on Advertisements}


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Opportunities here for, SFX SALONWe are experiencing an intensive competition in the youth segment, majorly from

the two domestic competitors. A mammoth advertising spree by the forgein

brands, which have able to establish themselves as trendy brands and easily shaving

off the fast expanding upper middle class segment.

Thus to counter this situation will need to revise pricing or positioning or the

segments.

Positioning : Stylish {Stylish+ Value Added Service + Foreign Tie-Up}

Targeting : Youth oriented{Youth + Kids + Women}

Pricing : Low Cost {Moderately higher cost + More Discounts& Offers}

All schemes and promotional strategies will be based on the above said.

The Refurbished Positioning Statement

Positioning Statement

For the people looking for value for their moneyand yet need a exclusivity

in style and brand, SFX salon is a one stop shop for people belonging to

various age groups. SFX helps make its clients, not only look special but

also feel special. Spykar has already proved itself as a trend setter in the

arena of Fashion and style in its Denim Division.


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Strategies

We will be following a simultaneous, Multi-Pronged awareness,

advertising and promotional strategy wherein every event or promotion

will be inter-connected in its impact thus these promotions will reinforce

impact of each other .Thus will create a feeling of a very big and

intensive campaign. We will make maximum use of the brand power of

SPYKAR by flaunting SFX salons affiliation to it.

Spykar SFX Style Nomads. (SSSN)Spykar SFX Makeover WeekRadio Campaign (In tandem with SSSN )

Spykar SFX Style Nomads will be the initiating campaign. In this

campaign we will hire an event management company which will hit the

roads and visit various locations (hot spots) in proximity to our salon i.e.

Mulund and Powai [Hiranandani Gardens, IIT powai, Vihar Lake, R-MALL

and Nirmal Lifestyle]. We will identify locations and timings when to visit

a particular area.

We will organize fun events on these spots which will act as a attraction

to the crowds and winner of these events will get discount coupons for

Spykar SFXMakeover Week.

This will create awareness and curiosity about this new BRAND

EXTENSION of SPYKAR i.e. SFX SALON.

SHORT TERM PROMO STRATEGIES (To create Instant Buzz n Awareness)


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This will be a week long affair. The whole event will be backed by constant event

updates (advertisement) on the most happening and a completely youth oriented

Radio PartnerFEVER 104 FM.

We will takeFEVER 104 FM as a Radio Partner

by giving them display space onthe banners which will be used during SSSN. This will help us in negotiating and

getting our advertisement cost down. Whenever the SSSN will reach a new spot

there will be update by FEVER 104.

Spykar SFX Makeover Week will be an in house event i.e. we will call upon

students from Fashion Institutes to come for a week long training programme for

them @ Spykar outlet (Nirmal Lifestyle Mall).

They will act as Personal Style Advisors to the customers, they will assist the

customer in choosing an outfit and also recommend hair styles to go with their

personality.

The reason behind hiring the trainees from these Fashion Institutes is

They are the youth, which is the major target audience for Spykar and SFX Salon. They will be selected from two reputed institutes which are located in Mulund itself i.e.

NIFT (National Institute of Fashion Technology) & J.D Institute of Fashion.

Selection of students from an institute in mulund will create a buzz in the area . These students will come as interns for which they will get an Training certificate from a

fashion giant like Spykar, which is a privilege. Thus we will be able to shave off the cost to

hire a professional stylist.

The highlight of this whole event will be an intensive and focused approach. This

will prove to be a very beneficial promo which will increase footfall in the salon and

strengthen our clientele.


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SFX STYLE CARD

Slogan:: hoT on StyLe, KooL on SavingS

Integrated Schemes Point System Referral Programme

SFX STYLE CARD will be a membership based card(Pre-paid). Here a customer

would choose from various slabs/options with different validity period and will get

a fixed discount on the services availed thereon.

Example :: Rs. 500 for 6 months (15% discount)

Rs. 1,000 for 1 year (20% discounts)

Further, with every purchase points will be added to customers account, which willsome attached benefits based on a milestone strategy.

Acquiring new customer can cost 5 times more than retaining an existing customer(Retention Dynamics)

Thus a Referral Programme is a By-Pass to such a cost of acquisition. Thereferrer will get lots of added points as a reward.

This will act as a loyalty programme and will ensure permanent clientele. Also

advance cash flows for the salon.

LONG TERM STRATEGIES ( CRM Strategies & Discount


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SFX Femme GanG!!

This will be a Customer Contact Programme, specially targeting the Female

customers (middle aged). This is a unique and one of its kind programme.

It is based on demographic understanding of the area Mulund, where there is ahigh concentration of people belonging to Gujarati ethnicity. Maximum Gujarati

females (middle aged) are house wives. Thus they have affiliations to kitty groups.

We will approach these groups in a door to door campaign in the area and will get

them registered in groups of 3-4 members each (Femme GanG). These Femme

GanG will get attractive discounts.

These Femme GanGs will visit the salon together (on Appointment) and they will

be offered time slots of lower customer occupancy i.e. generally office hours andweekdays. Thus we will be able to ensure an optimum occupancy of salon most of

the time and provide value to our customer in an emotional (as women like to go

out in groups) and monetary (discounts) way.

*This particular programme will target and acquire the segment that has been ignored by

LOreal i.e. middle aged women will come in SFXs fold.

SFX LiL Stars

There is a serious lack of any good salon for children, barring a couple of salons

that offer specialized services to kids, there is a dearth of such salons. Spykars kids

brand OYO has been a great hit among the little ones thus it will be an added

advantage to have a kids section in our salon.

Thus to cater to this segment we can have 1-2 added chairs dedicated to kids. We

can have chairs in shape of cars or teddy stools, thus having a childish touch to the

ambience.

Keeping in view the two programmes i.e. SFX Femme GanG and SFX LiLStars, we will see kids in the salon frequently either for their own hair cuts or

with their mothers(which are our new target audience). Thus keep the

comfort and interests of both we can have a kids section.


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Strategic Tie-up

It has been said time and again that we lack the financial muscle, thus SFX Salon

was losing its market share. To partially overcome this shortcoming we will enter

into a strategic tie-up with Johnson & Johnson, which is a major marketer of kids

and Adult Cosmetics.

The reason why J&J, would be interested in this tie-up would be due to the fact that

although its kids care products are doing well in India but its division that

manufactures beauty products for Adults (Men, Women & Teens) i.e. Neutrogena

Corporation , which is a leading brand in U.S, has not been able to make its mark

in the Indian market due to many reasons.

Thus it will be a beneficial and attractive proposition not just for SFX Salon butalso for J&J. We will also provide Visibility and Sales Counter to their products.

Under this tie-up we will carry out many promotional activities together which will

work in a cost sharing mechanism. This will increase the brand power of SFX salon

and also the amount of exclusivity that people associate with our brand.

Website Creation & Management of Online Campaigns

Creating a Website which will list down various events, promos and schemes that

are going on in SFX Salon will take our communication with our customers to

another level.

As has been observed in the case of the parent brand SPYKAR the official website :

www.spykar.com has not been updated since last year i.e. year 2009. (Please see the

image below) This effects the image of the brand gravely. In this age of World Wide

Web no brand can think to survive without this lifeline. Also a promotion of

making the presence of SFX salon felt on the web world. This can be in form of
http://www.spykar.com/http://www.spykar.com/http://www.spykar.com/


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creating forums, communities on social networking sites and listing the salon on

various yellow pages.

I hope this will satisfy you as well as your expectations, in terms of the strategy that

is required to tackle the challenges posed by our competitors.

Regards

Rahul.


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spykar new comptt.- day 3

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