Philippine Women’s College of Davao

Juna Subdivision, Matina, Davao City

A MARKET RESEARCH FOR DEETEY SALON

In Partial Fulfillment for the Subject

Strategic Marketing

Presented To:
Joel Posadas

Presented By:
Marc Kinley Pagaran
Mary Jane Rebalde
Rachel Jane Tan
Crisza Flor Pupa
Elvie Jane Sicor
Jennifer Morro

JANUARY 2020
 TABLE OF CONTENTS
Front Page

Table of Contents

I. Executive summary

II. Environmental Scanning

Industry Analysis (Micheal Porter’s 5 forces)

SWOC Analysis

5P’s Analysis

III. Strategic Planning

Goals and Objective

Strategies

IV. Recommendation

V. Conclusion
 Executive Summary

Deetey Salon is a Beauty salon offering hair cut, hair treatments, hair coloring,

hair rebonding and spa. Deety Salon is a full service salon that dedicated to consistently

providing high customer satisfaction by rendering excellent service, quality products and

finishing an enjoyable atmosphere at an acceptable price value relationship. It is owned

and established by Ashley Datoon and fully operates on May 01, 2019.

Life style is fast changing in the modern era, and the woman have become more

conscious about their make up more woman are seen frequenting the beauty salon for

availing themselves of some kind of service to enhance their appearance to look good.

To meet the needs of customer, Deety Salon’s mission is to provide quality hair, nail

and along with top lines of beauty products and we will also maintain a friendly, fair, and

creative work environment, which respects diversity, ideas, and hard work.
 Environmental Scanning

A. Industry Analysis
In the Industry analysis, the instrument that is being used is the Micheal Porters

model of 5 forces industry analysis. To identify the capacity of Deetey Salon to compete

in the industry, Micheal Porters 5 forces model is used. To describe the Competitive

Rivalry, Threats of new entrants, Threats of substitute, Bargaining power of supplier and

Bargaining Power of Buyers.

Deetey Salon
Competitive Rivalry

Deetey Salon is surrounded with nearby competitors namely; Leo Revita Salon,

BastaByuty Salon and Index Salon. Rivalry among competitors is intensive, since

pricing levels are almost similar and they almost the same services, but the switching

cost of the customer is high. Customer can easily switch to other salon which they find

attractive and give the best service. On the other hand, because of high barriers of
entry, many entrepreneurs cannot easily establish this type of business, thus this can’t

weaken the rivalry of competing existing salons. Competitive rivals of Deetey Salon

offers the same services and they vary only on the way of the service is given and also

the package deals affect the perspective of the customers.

Threats of new entry

The barriers in entry in bakery business is high, since entering this type of

business requires a large amount of money; the equipment needed for this business are

quite expensive and the services you have to offer needs an expertise to give the

accurate result. Aside from that, there are also government requirements and

regulations are necessary for businesses.

The Bargaining Power of Supplier

In Deetey Salon, the bargaining power of supplier is slightly high. The bargaining

power of supplier gains strength through the brand loyalty of the customer to the

product they supply, so the store is forced to consume their product in whatever prices

they offer. They are also products used in salon that can be bought in the market or has

an alternative brand in the market which is offered in affordable prices than the supplier.

The increase in product prices is only depending on the increase prices of the raw
materials available in the national market and not by the supplier’s bargain power. The

Deetey salon is not only limited with a sole supplier of their products.

The Bargaining Power of Buyers

The bargaining power of buyer in salon is high. Since the Salon is surrounded

with numerous competitors around the city, the customers have various of choices in

where they want to go. They are many fully established salons in the area that are

known for the best quality of services, so Deetey salon is challenged to compete and

offer lowest prices to gain customer. Technologies for manicures, hair treatment and

spa are the only substitute available and it is expensive and not easily accessible. The

switching cost of the customer is high but it doesn’t weaken the bargaining power of the

customer.

Threats of Substitutes

The number of substitutes for salon services is low. This means that the available

substitute services for Deetey Salon are not accessible. Technologies for manicure,

treatments and spa are available as substitutes but they are expensive and it is not

easily accessible and does not do the same quality of work done by the beauty salon.

B. Competitive Analysis of Competitors (5p’s)

 Product/ Price Place Promotion People
Service
Various Service Competitive Good Location Social Media Some of
Offered Pricing Easily access exposure employees
High quality of Affordable price With Parking Discount have good
some services Discount Pricing spaces packages quality of work
With wi-fi Early Bird The owner is
available Promo expert in this
field
A.
Some of their Premium prices Limited space Other salon Not all
service has low of the leading for spa. offers almost employees
rating and poor salon in the city. the same are expert
feedback promos and have
The effect of enough
promos in knowledge in
income. every service
 Good quality of Psychological Good Discount Organize
services Pricing Atmospherics offers staffs
Valued customer Competitive Spacious Promo Neat and
satisfaction Pricing Hygienic store packages clean staffs
Social Media They have
accounts master stylist
Fliers Staffs are
experts in the
B. services

Less services No premium No Wi-fi Similarity of Less numbers

offered price service available promos of staffs
Almost the Limited offered from
same prices Parking space competitors
with competitors Only single Unupdated
room for spa social media
and massage accounts
Diverse services Competitive Instagramable Social Media Organize
offered pricing photo area Exposure staffs
Spacious Fliers (w/ uniforms)
Numerous Discount Hospitable
Branches offers and staffs
Good Location packages
C.

Similarity of No premium Limited Lesser Poor hair

services in pricing yet Parking space discount cutting service
competitors No wi-fi packages Less expert
Poor hair cutting available than other employees
service competitors
A. LEO REVITA

Product/ Service

Leo Revita offers diverse services that the customer can choose. They offer hair

cutting, treatments, manicure pedicure and spa etc. But the some of the services Leo

Revita offered are having low rating due to lack of expertise of the employee.

Price

Leo Revita has competitive pricing and it offers affordable services. Although not

all people can afford it, but people in middle class can find the price very affordable. It

has a little difference from the other but the prices is worth it.

Place

The salon is located in a good in location, it can be easily accessible and it has

parking spaces that can accommodate 5-6 cars of the customers. They have wifi

available on the store which can boost their marketing and can make the waiting

customer be entertained because they can access social media. But Leo Revita has a

tight area because they are surrounded with establishments and they cannot expand

their store.

Promotion

They are exposed in social media sites such as in google and facebook. The

ratings and reviews are available and can be use as reference to be considered. They

offers discount packages and holiday promos, they also offers an early bird promo
which is accessible only from 8:00 am to 9:00 am. They have no difference in promos

offered from competitors aside from the early bird promo.

People

They have some employees that are expert in field, such as in cutting and

manicure and pedicure. But not all of their employees are good at rendering the

services that’s why some of services have poor rating, hence the owner has a good

background and expert in the salon industry.

B. BASTABYUTY SALON

Product/Service

The BastaByuty Salon offers a good quality of service, it is evident by the number

of their loyal customers, since they have expert staffs. But thet are offering only limited

number of services because they have also limited number of staffs.

Price

BastaByuty Salon is offering a very affordable prices of their services, they are

competitive from the prices of their competitors. They also have psychological prices,

such as 999 pesos for hair rebonding.

Place

The salon has good atmospherics and it is spacious. But the store has no

enough parking space for many customers and they have no wifi available. They also

have one space only for massage which could waste time and could waste customers,

since other customer are not that patient.

Promotion

They have promos and discounts that can be afford by middle class people and

even students. They have social media accounts but it is not updated. They have fliers

that contain the prices and services they offered.

People

It’s staffs do a very good quality of services, they have an organize staffs and

they are very patient. Although BastaByuty Salon has limited staffs because they are

securing that the staffs they hire are good in every services.

C. INDEX SALON

Product/Services

Index salon is offering various and diverse services. They almost offer the same

services with other salon in the city, but the salon is having a poor rating in their hair

cutting services.

Price
 The prices of the services they offer are very affordable. They have competitive

pricing with their competitors.

Place

Index salon has a good location, they have an instagramable photo area which is

not available in other salon and they have numerous branches in the city. But they have

only limited parking space and they have no wifi available.

Promotion

They offer promos and discounts in holidays and in other ordinary days which

make their very affordable prices becomes more affordable. They have social media

accounts and they distribute fliers.

People

The index salon has a organize staff, they are identified with their uniforms. They

have master stylist but they have a poor hair cutting service. Not all employees are

expert and good in services they offered.

STRATEGIC PLANNING

A. Objectives

 To create a service based salon, whose goal is to exceed customer expectations

 To increase number of clients served by at least 20% per year through superior

performance and words of mouth referrals

  Keeping current client happy and satisfied

 To be one or the best salon anyone could possibly walk into including celebrities

and getting the environment safe and clean every single day.

B. Strategy Formulation

These are the following strategies that have been formulated to enhance the

product/service, price, place, promotion and people of Deetey Salon.

Product/Service

Apply the trendy nail art and make up styles to entice more young and feeling

young customers. Provide a good quality of services that satisfy customer and can gain

loyalty. Use known brands of products for services and provide safety and comfortable

machines and equipment. In every rendered service, do the best and provide impact to

every customer.

Price

Do not increase the prices unless they have gained enough loyal and repeat

customers, maintain the competitive pricing. Compete prices with the fully established

salons in the city.

Place

Create an instagramable place, since a lot of people, especially women loved to

take pictures and post it on facebook or in instagram; this could help in boosting the
popularity of the salon. Make the store recognizable that could persuade customers

attention such as more bright light and cute paint colors of the stores.

Promotion

Update social media account, make an exposure to advertisements in facebook

and other social media platforms. Encourage loyal customers to tell other people about

the good quality service the salon has rendered.

People

Hire staffs that has good character and has expertise on the services. If the staff

have only limited knowledge on the service, if possible provide training to enhance the

skills of the employees. Maintain the staffs hospitability and patience. Don’t forget to

provide team building activities to boost the staffs bond and unity.
 RECOMMENDATION

We recommend that the store should add up instagramable facilities to be

relevant in social media cohort. They should provide a staffs which is good and expert in

the services they offer. Also, if possible they provide wifi to entertain the customer of

maybe put a television inside the salon to entertain customer and also for the employee

to have entertainment when there is no customer yet. All the possible strategy for the

salon is held in this research, so we recommend Deetey salon to consider this

strategies.

CONCLUSION

Owning a salon is, no doubt, challenging, but also rewarding and fun if you love

it. Come up with strong strategies to ensure a successful business. Keep in mind, there
are challenges in every new business work with key performance indicators to measure

your company’s growth and it is important to choose the best beauty salon that provides

professional services so as to get effective result. Loyalty program in hair and beauty

industry is very good as non-productized program, because relationship between the

customer and the hair therapist or beauty therapist is much more personal than

example a relationship between a grocery store and their customer.