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The name of my imagines company is the Couture Fab Hair line. Couture Fab will be a hair salon that will focus on using natural products. Recently, many women have been going all "natural". Therefore, a hair care line consisting of natural fruit extracts, as well as oil, will be attractive for them. The use of natural products ensures maximum hair protection without the usual damage by chemicals. Main activities of the business will include hair cutting, shampooing, hairdressing, nail care, facial treatments, and massage, all of which will use natural products. The care line will accommodate all types of clients consisting of women, men and small children. The objective of starting a hair care line that uses natural products is to tap the growing market of the modern trend for going natural. The product line of the business will involve selling natural hair products and starting up salons and barber shops that specialize in hair care. The other objective is to provide high-quality service to customers by ensuring that they get the best of what they desire. The products used will ensure that there is no hair breakages and hair moisture is maintained. The salon also aims at creating employment opportunities for the residents. The company will offer service at reasonable prices and will design suitable hair styling.
Every business has its strengths, weaknesses, opportunities, and threats. Weaknesses and strengths are internal factors that affect the business, while opportunities and threats are factors of an external environment affecting the business. Weaknesses are factors such as poor management, bad location, lack of enough capital, and non-competitive employees. Opportunities are some chances available for the business expansion, while threats are external factors. They limit the continuity of the business and include competition, technological changes, government policies, or taxes.
Strengths. Some of the strengths of starting up this business are my abilities as a hairdresser. I am highly competent and skilled in hair care. In a hair salon business, expertise is crucial to be able to withstand the competition. I also have expertise in management that will ensure that the business is managed well. I also expect to have highly a trained team available from the existing cosmetology institutions.
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Weaknesses. The business might experience such weakness as the lack of capital for inventory purchase. Organic products are scarce and expensive. Also, hiring highly qualified and experienced stylists requires much spending.
Opportunities. Many womenare currently going natural. Thus, it provides an opportunity to establish a hairline businesses that uses natural products. There is a growing need of natural hair treatments that can ensure preventing breakages and dryness. The solution to this need is establishing of salons and other hair line products that provide maximum protection and moisture.
Hair salon industry has around 86,000 beauty salon establishments in the US with an annual income of $20 billion (“Beauty Salon 2014”, n.d.). The capability of surviving competition depends on the salon’s ability to provide differentiated products, utilize marketing skills, and showcase technical expertise. However, salons specializing in natural products are not yet common in the industry. From the estimates, there are open opportunities in the industry, and people can consider opening up more salons. Revenues in the industry are expected to increase from $20 billion to $58 billion by the end of 2019. High expectation of growth of this industry will lead to the increased enrollment in the beauty colleges. According to the study conducted by SBDCNet (“Beauty Salon 2014”, n.d.), investment in hair salons is expected to become more lucrative. However, anyone who wants to invest in this industry should be prepared to face tough competition.
Target Market Description
Before starting up any business, it is important to have in mind the target market for the proposed product (Dibb, Simkin, Pride, & Ferrell, 2012). To understand product requirements, it is important to research the demand of a particular offering. Research shows that going natural and using natural products is becoming more popular. Men, women, and children equally are demanding more natural beauty products. Therefore, they all will form the target market. The business will target barber shops and salons that use natural products. The market is extended to care for people who even have dreadlocks. There are very few businesses that provide natural products for dreadlocks.
Product. The marketing mix will include the 4ps of marketing (Boone & Kurtz, 2012). First, the products used will not have any alcohol in their content, and will be organic and natural. The products will be easily differentiated from those of the competitors. They should also contain moisturizing ingredients that moisturize hair and keep it shiny.
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Price. Organic products are expensive. However, a favorable price will be obtained by sourcing the products from dealers, who sell them at a cheaper price. Also, the business will consider bulk purchase and benefit from the economies of scale. Consumers are rational in nature and they seek to maximize the utility at the lowest possible cost.
Place. The product should be located in a place where customers can easily access it. Natural products for the business will be marketed through the outlets such as cosmetic shops, salons, and barber shops. Hair salons and barber shops will be strategically located in the places that are easily accessible by customers. Customers will also be able to access the information about products and services from our online website.
Promotion. The business will promote sales through the online advertisements, ads and direct marketing, such as personal selling. Personal selling is the best promotional strategy due to the personal contact with the customer. Personal selling strategy creates a good relationship between the customer and the organization.
Other competitors in this business advertise their products through television, radio, and billboards. Some also use the Internet to reach more customers. Technology advancement is assisting the development of many businesses. From this analysis, most competitors fail to utilize advanced technology fully in their promotional strategies. For instance, there are only few companies that use ads in advertisement of natural hair products. The business proposed in this term paper will use ads and personal selling that is underutilized by the competitors.