Service Marketing Service Marketing PresentationPresentation

Purple2Purple2NameName Roll No.Roll No.Sumit Bhatia 05Wilson D’Souza 13Stephaney Fernandes 17Abhishek Kumar 28Augustine Moniz 37

India’s ShareIndia’s Share

• The Indian cosmetic Industry has witnessed rapid growth in the last couple of years, growing at a CAGR of around 7.5% between 2006 and 2008.

• According to figures given by the Confederation of Indian Industries (CII), the total INDIAN beauty and cosmetic market size currently stands at US$950 million and showing growth between 15–20% per annum.

• The overall beauty and wellness market that includes beauty services stands at about US$2,680 million, according to CII estimates.

Some important pointersSome important pointers

• Today increasing numbers of women, especially from the middle-class population, have more disposable income leading to a change in cosmetic and skin care product consumption.

• This actually has fuelled a growth in certain product categories in the market that hardly were experiencing it earlier.

• Two such categories are color cosmetics and sun care products that have shown growth rates of 46% and 13% respectively over the past two years, according to Euromonitor International.

• Pricing of the product and the nature of product usage are the two criteria that define brand positioning.

• For instance products falling under the price range of Rs. 45 to Rs. 200 are in the Mass-Market Category.

• The Middle Market price can range from Rs. 200 up to Rs. 800.

• In the High-End Market, pricing can range from Rs. 800 to about Rs. 5000.

• Finally there is the Premium Range of products where the pricing can touch up to Rs. 35,000.

Purple2Purple2

• An SME setup by Sangeet Miskin with total backing from L’Oreal.

• L’Oreal provides for the training of the staff employed at Purple2 with regular updates on the latest trends in the market.

• L’Oreal’s mandate to Purple2 is to generate 40% of its total sales from L’Oreal over the counter products like hair colours, serums etc.

People– Training, Recruiting, Rewards

Physical Evidence– Neat uniforms for staff– Toys for kids– Latest equipment– Cleanliness of salon– Designing of the salon– Loyalty cards

Process– Good database, Loyalty program, corporate tie-ups

3 Service Marketing P’s3 Service Marketing P’s

SWOTSWOTSTRENGTH•Brand backing of L’Oreal•Ambience•Entire range of facilities•Products used are of superior quality•Unmatched service through certified personnel•No standalone high-end unisex salon in the vicinity

WEAKNESS•Geographically not well located•Partially surrounded by slums•Rates/charges well above the average beauty parlour rates in the locality

OPPORTUNITIES•Corporate tie-ups•Number of corporate office buildings emerging in the neighborhood•Lot of actor and actress stays there, because Film city is located nearby•Can attract crowd from Oberoi mall as well as Raheja town ship, Malad east

THREAT•Regular beauty parlour in surrounding localities•Exquese, high-end salon in Oberoi mall

Service attributesService attributes

Musts

SatisfiersDelighters

• Loyalty programs

• Refreshments

• Toys for kids

• Good Ambience

• Courteous staff

• Latest equipment

• Basic serviceEg. Haircuts, personal grooming, spa treatments

PURPLE 2- Existing ScenarioPURPLE 2- Existing Scenario

•A good follow up with existing customers

•Regular SMS’es to informing the customers of new schemes, periodic reminders, etc.

•Substantial repeat customers opting for membership

Concern AreasConcern Areas

• New customer acquisition• Footfall fluctuations among some existing customers• Reduced spending by customers• Customers are not buying products from Salon• Not getting expected footfall during afternoon time band

Customer Profitability Customer Profitability Segments Segments

Least Profitable customers

Most Profitable customers

Platinum

Gold

Iron

Lead

The Expanded Customer Pyramid

Target profile for offer

Purple2 – Problem Purple2 – Problem IdentificationIdentification

• The focus area for an immediate increase in sales was to increase footfalls

• The decision was taken on the basis of the locality around which has a good mix of Sec B1 & 2 and also some old & fairly recent up scale residential zones.

• The major drawback was the location of the salon – which could not be addressed (proximity to slum pocket front & behind)

• Increase average spends of existing customers.

Service Strategy MatrixService Strategy Matrix

Market Development

Diversification

Existing Service

New Service

MarketsOfferings

Current Customers New Customers

Share Building

Service Development

Market DevelopmentMarket Development

The existing activities undertaken by Purple2:

• Paper inserts• Garba event at one school was sponsored • BTL activity was conducted at HUB mall• Discounts and free haircuts were offered• Ads in Lifestyle Magazines like Femina and Cosmopolitan• Ads in Newspaper• Corporate tie-up – Whistling Woods International

Findings

• Average spent per visit.

Findings

• Frequency of vist – • While selecting a parlour

Research Findings

• Prefer a family Salon.• Average spent – Rs 500 + per person.• Visit once a month.• Mostly come for hair cut.• Feel good factor.• Hygiene.• Ready to travel if service expectations are met.

What the people say…What the people say…

• Target mother –child concept• Flat discounts.( No hidden cost).• SMS Campaign• Increasing average spending for top 100

customers. - Attractive package deals.• Improve Experience. - Use of staff. a) New staff – Preparation. b) Trained – Touchups. c) Expert – Main service.

SolutionsSolutions

Task undertaken- To Increase Footfalls.• As Purple 2 had a good way of holding on to customers.• Its USP is L’Oreal branding & wonderful customer service.• So the only way of increasing lasting business is increasing

footfalls.• Action areas were decided as the schools around the

vicinity, some elite & a couple of upmarket schools were identified namely, Oberoi School, Goenka School, Ryan International.

• Corporate Tie-Ups with new offices coming up in the vicinity

Catch ‘em youngCatch ‘em young

• A good flow of students & their parents. • Group to be targeted younger set of parents• Positioning – Chance To Let Free- i.e. drop their kids to

school, visit the salon & be back to pick them up in a couple of hours.

• Lure - 15 to 20% on he 1st set of services utilised at the salon.

• L’Oreal branding to be a major driving force along with the discount offer to try it once.

Services Marketing TriangleServices Marketing TriangleCompany

CustomersEmployees

Inte

rnal

Mar

ketin

g

Interactive Marketing

External M

arketing

Keeping promises

Making promisesEnabling promises

Our taskOur task

• Purple2 acknowledged that the target audience was right according to our recommendation

• Our idea of BTL promotions near schools was to distribute fliers to create awareness for Purple2

• Purple2 worked out a offer which offered a free haircut to the child accompanying on the visit to the salon

Our counter arguementsOur counter arguements

• The offer was not lucrative enough.

• A flat discount would have been a greater draw than offering a free haircut to the kid

• Generally getting an haircut is spending ‘ME’ time for women, very likely they would not tag their kids along

• Purple2 should not restrict their product discounts to just haircuts

• Offers need to be extended to grooming services also

Our Success StoryOur Success Story

In conclusion:•Our recommendations were accepted at the first meeting itself•We worked out possible route plans for implementation of the suggestions•The various elements of the mode of communication were discussed in detail.•The element of training staff in communicating offers was also touched upon•The creatives for the new communication to schools are being worked out and are going to be implemented by 17th September, 2009 (hopefully)•The success rate of this offer would then be the stepping stone for the Corporate Tie-ups

THANK YOUTHANK YOU