A

Project Report of

Services Marketing
Index

1. Introduction
2. Feasibility Study
2.1 Questionnaire
2.2 SPSS
3. Segmentation and Targeting
4. Implementation
4.1 Product
4.2 Price
4.3 Place
4.4 Promotion
4.5 Process
4.6 People
4.7 Physical Evidence
Introduction

The service concept developed by us is REJUVENATION OF WARDROBE.

Rejuvenate basically means to give a fresh look. So, the purpose of this service is to
provide a fresh look or to refresh the looks of an individual by a personal stylist.

A personal stylist is a person who advises individuals on new fashion trends, clothing
styles, colours and make-up. He is concerned with an individual rather than a particular
fashion brand. A personal stylist will help an individual understand what styles of
clothing suit their natural features and lifestyles, assisting that person to achieve
confidence in the way they look and feel.

Some of the services that will be provided by the personal stylist are as follows:

 make thorough evaluation about the client's physical attributes, preferred

style, and personality to easily provide the most suitable fashion choices
 give good fashion recommendations about the client's overall look which
include the wardrobe, footwear and accessories
 help clients pick applicable outfits and pair them with matching accessories
 Feasibility Study

The process for feasibility study of the service was done in two steps:

 Questionnaire
 SPSS Analysis

Questionnaire

A questionnaire is a research instrument consisting of a series of questions and other

prompts for the purpose of gathering information from respondents.

Basic rules for questionnaire item construction

 Use statements where persons that have different opinions or traits will give
different answers.
 Use positive statements and avoid negatives or double negatives.
 Do not make assumptions about the respondent.
 Use clear and comprehensible wording, easily understandable for all educational
levels
 Use correct spelling, grammar and punctuation.
 Avoid items that contain more than one question per item

Considering all these aspects in mind our team designed the following questionnaire:

Please tick the appropriate option depending on your experience regarding your
wardrobe decisions.

S. STATEMENT Strongly Disagree Neither Agree Strong

Disagree agree ly
No. 2 4
nor
1 Agree
 Disagree 5

1. I think that Clothes and accessories have an

impact on person’s personality.

2. I often face problems while selecting clothes

and accessories for myself.

3. I always seek advice from others while buying

clothes and accessories for myself.

4. I clearly know the type of garment or

accessory that does not suit me.

5. I often regret my purchase decision regarding

clothes and accessories.

6. My wardrobe is full of nice clothes but I

always seem to wear same things.

7. I have my clothes thrown or stored all over

the house.

8. I have different clothes for different seasons.

9. I have items in my wardrobe that I have not

worn for over 2 years.

10. I dream of having all my mismatched clothes

organized into complete outfit.

11. I wish to have a custom made wardrobe

designed by some expert stylist.

Demographic profile: Please tick the category option you belong to:-

Age: -------------

Gender: Male ( ) Female ( )

Thanks for Your Cooperation

SPSS Analysis of Questionnaire

SPSS DATA VIEW

SPSS VARIABLE VIEW
Factor Analysis
We will do factor analysis for all the factors according to our questionnaire. These
factors are the parameters we have decided while entering the data.

From factor analysis we will select the 3 most important factors on the basis of there
extraction values from the communalities table.

Now after finding these factors we will find the frequency distribution of the responses
to the questions incorporating these factors.

Communalities

Initial Extraction

person's personality 1.000 .599

problems in selecting clothes 1.000 .821

advice seeking 1.000 .667

non suiting garment 1.000 .810

regret decision 1.000 .718

wear same thing 1.000 .684

scattered clothes 1.000 .747

seasonal variety 1.000 .789

unused clothes 1.000 .791

organised outfits 1.000 .657

age 1.000 .820

gender 1.000 .879

Extraction Method: Principal Component Analysis.

Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings

Compon
ent Total % of Variance Cumulative % Total % of Variance Cumulative %

1 3.222 26.846 26.846 3.222 26.846 26.846

2 1.855 15.459 42.305 1.855 15.459 42.305

3 1.562 13.018 55.324 1.562 13.018 55.324

4 1.271 10.588 65.911 1.271 10.588 65.911

5 1.073 8.943 74.855 1.073 8.943 74.855

6 .875 7.293 82.147

7 .674 5.616 87.763

8 .418 3.483 91.246

9 .373 3.107 94.354

10 .290 2.414 96.768

11 .232 1.931 98.699

12 .156 1.301 100.000

Extraction Method: Principal Component Analysis.

component Matrixa

Component

1 2 3 4 5

person's personality .416 .595 -.144 -.168 -.150

problems in selecting clothes .307 .554 -.455 .268 -.376

advice seeking .372 .561 .091 .382 .243

non suiting garment -.551 -.068 .108 .669 .206

regret decision .603 .430 .301 -.023 .282

wear same thing .750 -.030 -.066 .173 .292

scattered clothes .682 -.448 -.195 .103 -.179

seasonal variety .497 -.522 -.071 .408 .312

unused clothes .681 -.396 .190 -.352 -.103

organised outfits .624 -.128 .265 .201 -.374

age .130 .054 -.526 -.420 .589

gender .040 .197 .891 -.168 .128

Extraction Method: Principal Component Analysis.

a. 5 components extracted.
Frequency

Statistics

problems in non suiting custom made

selecting clothes garment age gender wardrobe

N Valid 30 30 30 30 30

Missing 0 0 0 0 0

Frequency Table

problems in selecting clothes

Cumulative
Frequency Percent Valid Percent Percent

Valid 2 10 33.3 33.3 33.3

3 5 16.7 16.7 50.0

4 13 43.3 43.3 93.3

5 2 6.7 6.7 100.0

Total 30 100.0 100.0

non suiting garment

Cumulative
Frequency Percent Valid Percent Percent

Valid 2 5 16.7 16.7 16.7

3 11 36.7 36.7 53.3

4 11 36.7 36.7 90.0

5 3 10.0 10.0 100.0

Total 30 100.0 100.0

age

Cumulative
Frequency Percent Valid Percent Percent

Valid 20 2 6.7 6.7 6.7

21 7 23.3 23.3 30.0

22 9 30.0 30.0 60.0

23 11 36.7 36.7 96.7

24 1 3.3 3.3 100.0

Total 30 100.0 100.0

Gender

Cumulative
Frequency Percent Valid Percent Percent

Valid male 12 40.0 40.0 40.0

female 18 60.0 60.0 100.0

Total 30 100.0 100.0

custom made wardrobe

Cumulative
Frequency Percent Valid Percent Percent

Valid 2 2 6.7 6.7 6.7

3 5 16.7 16.7 23.3

4 9 30.0 30.0 53.3

5 14 46.7 46.7 100.0

Total 30 100.0 100.0

Pie Chart
According to the above pie chart we can see that 43.33% people have answered that yes
they agree with thing that they face problems while selecting clothes. This points at the
requirement or need to solve this problem. Our service can easily help them to solve
this problem.
Here the maximum percentage of people were neutral so taking the next most chosen
response 36.67% people said that the they agree that sometimes the garments they
wear don’t suit them and hence again a need where someone could help them to select
that suits them.
Females are the one that majorly affect the success of the service and hence while
selecting 7P’this have to be kept in mind.
Finally most important question that whether they need an expert to makeover there
wardrobe or not or to help them solve various problems was answered with
synonymous majority of 46% as strongly agree and hence this service is feasible and
can be a success.
Segmentation, Targeting and Positioning

Introduction:

A market segment is a sub-set of a market made up of people or organizations sharing

with one or more characteristics that cause them to demand similar product and/or
services based on qualities of those products such as price or function.

Companies need to segment the market because markets are not homogeneous and a
company whether small or large by scale cannot connect with all customers in large,
broad, or diverse .markets. Consumers vary on many dimensions and often can be
grouped according to one or more characteristics.

Targeting is the second stage of the segment, target, position (STP) process. After the
market has been separated into its segments, the marketer will select a segment or
series of segments and 'target' it/them. Resources and effort will be targeted at the
segment.

Positioning is the process by which marketers try to create an image or identity in the
minds of their target market for its product, brand or organization.

The STP of small business like can ultimately determine fate of business. Small business
owners can ensure profitability and longevity by paying close attention to
segmentation, targeting and positioning strategy.

Segmentation:

The segment considered for this service is very specific i.e. youth of IBS-Gurgaon. So to
be more specific a Niche Market segment is created to serve this purpose. A niche
market is the subset of the market on which a specific product is focusing. So, the
specific product features are designed which aim at satisfying specific market needs of
this particular market, as well as the price range, production quality and the
demographics that is intended to impact.
This niche segment be created taking into account of those youth who want a personal
stylist. This segment is created on the basis of:

 Geographic Segmentation: Taking a very specific place Gurgaon (as a city)

wherein providing the services at IBS-Gurgaon.
 Demographic Segmentation: Taking the age group of 20-25 years either male or
female or even both.
 Psychographic Segmentation: Today’s youth or wish to create a unique style
statement to let the world know who they really are. So this segmentation is done for
those who are really particular about their looks and personality.

Targeting:

There are basically four strategies to satisfy target markets: undifferentiated marketing
or mass marketing, differentiated marketing, concentrated marketing, and
micromarketing.

 Mass Marketing is a market coverage strategy in which a firm decides to ignore

market segment differences and go after the whole market with one offer. It
targets to a wide audience. The idea is to broadcast a message that will reach the
largest number of people possible. Since we are targeting only the youth of IBS-G,
so this strategy for target marketing has not been used.
 Differentiated marketing is a market coverage strategy whereby a company
attempts to appeal to two or more clearly defined market segments with a
specific product and unique marketing strategy tailored to each separate
segment. This strategy was also not possible so was not implemented.
 Concentrated marketing is a market coverage strategy whereby a product is
developed and marketed for a very well-defined, specific segment of the
consumer population. The marketing plan will be a highly specialized one
catering to the needs of that specific consumer segment. Concentrated marketing
is particularly effective for small companies with limited resources because it
enables the company to achieve a strong market position in the specific market
segment it serves without mass production, mass distribution, or mass
advertising. This strategy was adopted.
  Micromarketing: The process of customizing pricing policies at the individual
store level is known as micromarketing

Positioning:

Positioning is being done on the basis of concentrated marketing approach used. The
relative positioning done by understanding the kind of services we are providing and
what affordable prices will the youth be able to pay for this service.
Implementation

1. Product

Service products consists of a core product that responds to the customers’ primary
need and an array of supplementary elements that help customers to use the core
product effectively as well as adding value to welcomed enhancements. In our case
the product is redesigning of wardrobe by a personal stylist.

2. Price

The pricing strategy of small business like ours can ultimately determine fate of
business. Small business owners can ensure profitability and longevity by paying
close attention to pricing strategy.

Commonly, in business plans, the pricing strategy has been to be the low price
provider in the market and a market like students of IBS, Gurgaon low price
provided is the best strategy.

Three factors have to be analysed before finalizing low pricing strategy. These are:

1. Competitive Analysis: It’s important to look at competitor's pricing as well as the

whole package they offer. Are they serving price-conscious consumers or the
affluent group? What are the value-added services if any? As the service is launched
for the first time and we have to pull customers from the market, low price strategy
is best to follow.

2. Ceiling Price: The ceiling price is the highest price the market will bear. The
highest price in the market may not be the ceiling price. But as such ceiling price is
not applicable because a service when mainly provided for students won’t give much
revenue if low price strategy is not followed.

3. Price Elasticity: If the demand for your product or service is less elastic, you can
then have a higher ceiling on prices. Low elastic demand depends on limited
competitors, buyer's perception of quality, and consumers not habituated to looking
for the lowest price in your industry. But demand here for this business is highly
elastic. As the demand will increase as price will decrease. So again it favours low
price strategy.

After understanding the demand structure in industry, reviewing costs and profit
goals as set in business plan it’s best to follow the low price strategy.

Our pricing strategy:

The price has been charged on hourly basis as Rs.100 per hour. So the total price
which the customer will have to pay will depend on the time spent by our personal
stylist on the customer.

3. Place

Place represents the location where a services can be availed. It is often referred to
as the distribution channel. It can include any physical store as well as virtual stores
on the Internet. Place is not exactly a physical store where it is available Place is
nothing but how the services takes place or create image in the mind of customers.

This can be further explained as follows

 Where do buyers look for your service?

 If they look in a store, what kind? A specialist boutique or in a supermarket, or
both? Or online? Or direct, via a catalogue?
 How can you access the right distribution channels?

The services offered by our personal stylist are being directly served to the
customers i.e. IBS-Gurgaon students. For this they have to give a call to the service
providers and take the appointment. The Personal Stylist will visit his or her place
and check out the wardrobe of the customer and can give the feedback and further
suggestions. The time for availing this service is from 8 am to 9.30 am in the
morning and 4.30 pm to 6 pm in the evening.

4. Promotion

To generate sales and profits, the benefits of products have to be communicated

to customers as for a business to run good products sold at attractive prices
alone are not sufficient. In marketing, this is commonly known as "promotion".
Promotion is all about companies communicating with customers.
A business' total marketing communications program is called the "promotional
mix" and consists of a blend of advertising, personal selling, sales promotion and
public relations tools

1. Promotion strategy(Push, pull)

The strategy used by the company was PULL. It banked on that customer
group which believed in the service, to spread it. A push strategy was not
applicable here as the service provided is a very controversial one. Only
people who are interested in consulting the personal stylist would avail it.
The rest, no matter which technique used, would not use it as they saw it as
waste of time or something that was not worth or true.

2. Advertising
 This is defined as a description or presentation of a product, idea, or
organization, in order to induce individuals to buy, support, or approve of it.

The different methods used to advertise the service were:

a) Website: this helped to capture the online market and increase
awareness. Though the actual service was not available online, as it was
not possible.
b) Event on social networking site: This helped to advertise the date of the
inaugural ceremony before hand.

Pamphlets: these were put up on all notice boards of the college to create awareness.

3. Personal Selling:

It is oral communication with potential buyers of a product with the intention of

making a sale. The personal selling may focus initially on developing a
relationship with the potential buyer, but will always ultimately end with an
attempt to "close the sale".
This was basically done by employees and the customers. It was more effective
in the case of customers who were happy with the consultant. It was one of the
most prominent method of promoting the service.

4. Sales promotion:

This was done through the following ways:

 For the first two hours, only Rs.100 was charged.
 Combo Pack:
If two friends come together to avail the service at the same time then a
discount will be provided depending on the number of hours taken away
by them.
 Tie – ups:
The organization has tie ups with:
a) Popular figure
 b) Shopping centre or malls

Word of Mouth:

Considering the service that is being provided, wardrobe redesign this was
the most effective of all the promotional mix. This was because a customer if
happy with our personal stylist would in turn tell this his/her friends, family
who would also like to avail the service from us.

5. People
An essential ingredient to any service provision is the use of appropriate staff and
people. Recruiting the right staff and training them appropriately in the delivery of
their service is essential if the organization wants to obtain a form of competitive
advantage. Consumers make judgments and deliver perceptions of the service based
on the employees they interact with. Staff should have the appropriate interpersonal
skills, aptitude, and service knowledge to provide the service that consumers are
paying for.

In this case, the most important people were the personal stylist. It was highly
important to ensure that they were very good at their skill. Because on that
depended the number of customers turning to us. This would ultimately affect the
success of the service. Even one bad experience with the customer would result in
loss of many customers.

Besides the employees, the other people involved in a service are the customers,
consumers and clients. They are equally important and it is essential to know exactly
who your ideal client is.

In this case, the ideal clients were the people who were ready to consult the personal
stylist. It was also important to make sure that the clients were handled in the
correct manner.

6. Physical evidence:
After service:

 Call customers to know were they happy with our service.

We got 30 respondents to fill our questionnaire. Two of these got ready to avail our services.

 One client was wearing simple and mismatched clothes. Our service guides miss.
Harpreet Kaur gave her suggestion and matched her clothes by choosing from her
own wardrobe. She liked her new look and our services. She gave us positive
feedback and wants to continue with this service.
 Another client was wearing clothes that were looking quite pretty on her. But,
she wants a trendy look. So, our guide suggest her a new look that completely
changed her look. And she finds herself more confident with enhanced
personality.