PURPOSE
Assessment Task is designed for you to analyse a business, its customers, competitors and demographics to determine a focus for marketing activities for the salon.
ASSESSMENT TASK
Scenario
You have just commenced working at eSpa. A salon based at Stone's Corner in the suburb of Greenslopes in Brisbane. eSpa salon has replaced an existing salon and now offers a choice of spa treatments, facials, eye treatments, nail services, makeup, tanning and waxing. Further information about the salon can be found in the business plan located here: e'Spa Homepage
You are enthusiastic and looking for ways to build your clientele. Tuesdays and Wednesdays always seem quiet in the salon and the weekends are very busy. You are keen to pamper the existing clientele (mainly women aged 55+), but you also want to attract new customers. You are acutely aware that when you attract new customers, you need to create satisfaction for the customer as well as cash flow for the salon. The goal would be to create long-term customer relationships where you and the customer both win with value enhanced, satisfying exchanges.
Over the years, the area that the salon is located, has seen changes in demographics and cultural growth. Based on the information you find when researching the surrounding area, you narrow down and concentrate your efforts of marketing your products and services to a targeted market.
You can research the area and its demographics by clicking here: Australian Bureau of Statistics data for Greenslopes/Stones Corner
The growth and change in the community has seen an increase in portable communication devices such as smartphones, tablets and laptops. This has boosted the ability to be contacted or make contact anywhere and anytime. Traditional methods of reaching out to people with letters and print media are costly and time delayed. Hence the marketing objectives in the eSpa business plan are centered on digital engagement strategies for your target market.
A part of promoting your salon's products and services will include knowledge of the importance of keeping abreast of your competitor's activities. You are aware of at least 2 salons in the vicinity of Stone's corner and Greenslopes that are offering very similar products and services to your salon. It's now that you start formulating ideas and ways to market your products and services differently to them and promote your salon's unique selling proposition.
Task 1.1 Conduct an analysis of the business.
Before you can develop an effective promotion, you will need to gather information about consumers and their needs. To do this, you will need to analyse eSpa's current customers, potential customers and their environment.
Research and write a report of the information listed here:
a. The population level and general level of education in the area.
b. The top 5 industries in which people in the area are employed.
c. The birthplaces of the people in the area to ensure you will create marketing strategies that will be culturally and ethically appropriate.
d. The key products and services eSpa salon provides for Nails. Include the features and benefits and the frequency and volumes in which customers purchase products and utilise services.
e. Identify the probable target market for manicure and pedicure services and describe why you think this is so.
Task 1.2 Questionnaire
Create a small questionnaire of 5 open questions you can use to survey people in the target market to gain an insight into their needs and wants for nail services- this will guide you when formulating your marketing objectives in accordance with your business plan.
Task 1.3 Conduct a competitor analysis
Find 2 salons, in the same area eSpa is located in, that are offering comparative products and services.
- Provide a brief description of each competitor, including their key products and services and their marketing activities.
- Complete a SWOT analysis for each competitor.
- Consider performance gaps left by your competitors that your business could bring to fruition. Write down some ideas where eSpa could seize the market.