Executive Summary

Beauty consciousness has dawned on rising affluence. With an increase in the number of households upgrading to a higher consumption lifestyle, there is an explosion of growth in the Indian beauty space. Clearly, the predominantly unorganized locally run beauty salon market is at an inflection point. The mushrooming of branded chains is expected to change the

landscape completely a few years down the line, ushering in a new era of trained salon personnel, offering services based on global insights and professional products strutting the latest international technologies. One needs to Step back and look at the way consumption has changed in India. Growing affluence has resulted in increased experimentation. This has accelerated the growth of beauty categories and one see this explosive growth in beauty services as well. Salons are at the centre of that growth, so it's a big opportunity

Aim and Objective

Growing disposable income & evolved lifestyle are encouraging women to look out of home salon solutions to address their beauty needs. The explosion of media related to looking good and the growing availability of salons offering basic and innovative hair and skin services works as a draw for both Men and Women. This is also resulting in an up gradation of both Men and women moving from the unorganised sector (mom & pop owners) to organised/branded salons. Being a service business, customer retention is driven largely through quality of experience, products used and specific operators towards whom customers have loyalty. Through this research we intend to release a comprehensive qualitative and quantitative research report on Indian salon and spa goers, an insightful profile of todays salon and spa consumers, who they are, their motivations for going to the salon/spa and their expectations .

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Type of Research used- Questionnaire Sample studied Technique- Random sampling technique Size- 100(29 Males and 71 Females) Limitation- Research conducted in the city of Mumbai Key Findings Recommendation by a friend/word of Mouth publicity works the best to create awareness about a salon/spa. Men show more loyalty towards their current brand of salon/spa as compared to their female counterparts. Both the genders rated Occasion as the most important reason for visiting a spa/salon followed by Makes you feel good. Women rated To get pampered as the third most important while Men rated helps reduce stress as important. Factor that is rated the highest by Men are Importance of Services offered followed by importance of ambience and value for money while selecting a salon/spa. Females on the other hand rate importance of brand name the highest. They have rated importance of ambience, services offered and stylist relation almost at par.

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Introduction to Customer Attraction and Retention

It is important for a salon/spa to identify the type of customers from whom they will make the most money from, and identifying the type of customer most likely to buy again. The idea is that if customers buy repeatedly the salon/ spa is successfully offering what they need. Segment identification may be easy or very difficult to do. Many salon / spas start with a clear idea of their preferred guest characteristics, and build from the beginning for their target segments. Others build or buy but then realise that there's profit in repositioning, necessitating a re-evaluation of the target guest segments. Once the Target segment is identified and their needs understood the salon/spa can create a suitable Marketing campaign to attract customers. Customer attraction is of vital importance for any business in any industry. Likewise it is of extreme importance to a salon/spa as it is in the service industry and providing services to their valued customers is where they derive their revenue from. A salon/ spa today attract customers through various means like advertisements in newspapers /magazines, through its various branding activities, through PR and events and also through social media. The motive here is to build a business that consistently promotes and markets itself using innovative imagery and unparalleled attention to detail, while developing a recognisable brand. Only when a salon/ spa are successful in doing so will it create a distinct image in the minds of the consumers and be able to attract customers. Another activity which salon/spa chains engage in today is networking. Networking is simply about making business connections and relationships that can be of help to a salon/ spa chain down the road.

Successful people are often involved in a variety of groups from their church or childrens schools to neighbourhood associations and/or the boards and committees that make up a variety or political, civic and charitable organizations. These are all good places for networking and networking within these types of social groups also allows a salon/spa to quietly "sell. These days salon/spa chains create special events centred on their core client's interests to make them feel special, Like a closed-door" sales, a fashion show with a local store, a jewellery "trunk" show to name a few. The primary
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motive here is to grab the required eyeballs from the target set of customers and do so fashionably. Such shows help to attract the right kind of crowd in large numbers and are thus very helpful for a salon/spa. The spa business is primarily a referral- based business. The same tried- and- true marketing principals which a salon/spa used to build up its female clientele are also being used today to capitalize on the emerging male market. In this era of intense competition, it is very important for a salon/ spa to understand that merely acquiring customers is not sufficient because there is a direct link between customer retention over time and profitability & growth. Customer retention to a great extent depends on service quality and customer satisfaction To acquire a customer a salon incurs promotional costs like advertising, sales promotion etc. It is said that it costs five times more to attract a new customer than retaining one. The operating cost for a salon/spa decreases when a customer stays. Services being rich in experience and credence qualities, it takes some time for customers to get accustomed to it and once they are used to the service and are satisfied with the salon/spa ,they will remain loyal. As they remain satisfied they spread a positive word of mouth, which is very effective for attracting new customers. Longer the customer stays with the organization, more the organization knows about him, which enables it to offer customized services which make it difficult for the customer to defect. This may even provide opportunities to the salon/spa to charge price premium by offering individualized services which may be difficult for the competitors to offer.

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How are Customers Attracted and Retained by various Salon/Spas in India Discount Services Offering a discount is always attractive to potential customers. 20 to 50 percent off on a product or service may bring in many new customers. Discount mailings also can be reminders to consumers who don't schedule appointments regularly. Referral Incentives Referrals can help bring in new clients and retain existing ones. The current clients help in the promotion by offering those discounts or free services or products for the recruitment of their friends, family members and acquaintances. For example, for a customer who refers a cousin, offer a half-off coupon or another discount that will not break the bank. Events Organizing events is becoming a common way for salons to attract customers. The main objective of a salon/spa is to create awareness and increase the number of footfalls. People might not be willing to try out a completely new salon. So in order to attract new customers and make them switch, it needs to give them a feel of the salon for which they organize events. They offer various trial and free services during the event and make them feel special in order to make sure they come back to the salon. Also salons give away various vouchers to ensure that they convert. Social Networking Now days Social networking sites have become very common. Salons/spa keeps in touch with their clients via the various networking sites. These sites help them to inform the clients of the various running promotional offers. They also keep in touch with the clients and make them feel special.

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 Special coupon or promotion for your new customers Various salon/spa have promotional vouchers given to attract new customers. Consider what it would take to motivate you to change your buying behaviors for the stores you currently visit regularly. Once you are in the habit of buying from the same store or vendor, chances are you will not try a new one based merely upon a catchy ad On the other hand, imagine that you are offered a special coupon or promotion as an incentive to try out the store: it is likely you would be more likely to consider making the switch. Your target prospects feel the same way. So, as you build the marketing and advertising component of your business plan, make sure that you consider offering special coupons and promotions to attract new customers to your salon. Free Trial In order to attract new clients and to increase the footfalls, certain services are offered for free by salons/spa. Giving free services only helps to increase the number of footfalls. If the service provided is liked by the customer, he can become a loyal customer. Whether its a self tan parlor or a hair spa; the power of 'free' will work for you for sure. They also offer free bonus gifts to the clients. For instance, you can offer a free skin care cream on a facial and the like. Business Alliances A business alliance is an agreement between businesses, usually motivated by cost reduction and improved service for the customer. Alliances are often bounded by a single agreement with equitable risk and opportunity share for all parties involved and are typically managed by an integrated project team. An example of this is code sharing in airline alliances. Various spa and salon have an alliance with some other company which increases the footfalls. Salons and spa tie up with various Gyms; brands etc and promote their services in the other location. It is a win- win situation for both the organization. E.g.: Alliance between Jean-Claude beguine and Aquamarine: Jean Claude Biguine had an alliance with Aquamarine. According to this partnership it was decided that any client that purchased worth Rs 3000 from Aquamarine received a voucher of Jean- Claude Biguine. The voucher offered the client a complimentary manicure, pedicure or a wash and blow dry. This was a win-win situation for
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Aquamarine as well as Jean Claude Biguine as the Aquamarine customers received more than expected and on the other hand it increased the footfall of Biguine.

Some other Factors As Well

Location: The location of a particular salon/spa plays a major role in attracting new clients. It is very essential for the salon/spa to be located at a convenient place.

In-salon Promotion: Giving various complimentary offers, discounts, free treatments, one on one offers etc all attract new customers and also help in retaining the customers.

Hygiene: If the salon/spa is maintained at very high level, it automatically retains the customers. Hygiene plays a very important role in the minds of the clients. If the hygiene in a salon is maintained as per clients expectation, the client feels safe and trusts the salon which makes them loyal.

Ambience: The environment right from the time the client enters till the time they exit plays a very important role. The Music, the Colors, the Seating, the feel good factor, the attention given, etc plays a very important role in attracting and retaining the customer

Stylist: the stylist is one of the main reasons that retain a customer. Most of the clients are loyal because of the stylist. The stylist needs to be friendly, caring and intelligent and should ensure that the client gets more than expected. One bad instance with the stylist can make a salon loose the client.

Birthday/ Anniversary Cards: Various salon/spa make their clients feel important and worthy by sending them birthday/ anniversary cards along with various

discounted/complimentary offers.

Referral Card: Loyal clients get a card on which points are added every time they visit a particular salon/spa. The more the points the more the discount and benefits they acquire. This ensures loyalty and retention.

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Conclusion Todays customers are becoming harder to please. They are smarter, more price conscious, more demanding, less forgiving and they are approached by many more competitors with equal or better offers. The challenge is not to produce satisfied customers; several competitors can do this. The challenge is to produce delighted and loyal customers. If these customers are retained with the organization, they become really profitable by way of increase in purchasing, reduced operating costs, price premiums and through referrals. Too many companies suffer from customer churn i.e. high customer defection. It is like adding water to a leaking bucket. Various strategies such as measuring customer life time value, efficient complaint management system and service recovery strategies can be really helpful in retaining customers for a salon/spa

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Introduction to Wellness Industry

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History of Wellness

Wellness as a concept has a long, ancient tradition and body of knowledge behind it. Wellness is a modern word with ancient roots. As a modern concept, wellness has gained currency since the 1950s, 1960s, and 1970s. Starting with a seminal, but little known, book published by Dr. Halbert Dunn in 1961 (called High-Level Wellness), the writings and leadership of an informal network of physicians and thinkers in the United States have largely shaped the way we conceptualize and talk about wellness today. The origins of wellness, however, are much older even ancient. Aspects of the wellness concept are firmly rooted in several intellectual, religious, and medical movements in the 19th century United States and Europe. The tenets of wellness can also be traced to the ancient civilizations of Greece, Rome, and Asia.

Defining Wellness

There are a number of rigorous and well-thought-out definitions of wellness, developed over time by the leading thinkers in the field. In fact, it was the process of attempting to define, understand, and measure wellness during the 1950s-1970s that initially led to the propagation of the concept in the modern era. However, like the term spa, there is still no universally accepted definition of the word wellness. The World Health Organizations definition of health is a convenient, internationally recognized description that captures the broad tenets of wellness. This definition adopted by the WHO in 1948 was significant in the fact that it went beyond just the physical state of freedom from disease and emphasized a positive state of being that includes mental and social dimensions. It also laid the groundwork for much of the ongoing thinking about wellness in the mid-20th century. Health is a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity. ~Preamble to the Constitution of the WHO While recognizing that there are regional variations in the concept of wellness, several common threads stand out across the various definitions of wellness:

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 Wellness is multidimensional: Most of the leading definitions of wellness include a model that presents anywhere from 2 to 14 or more dimensions, which frequently include physical, mental, spiritual, and social dimensions. Wellness is holistic: Wellness is a broader concept than physical health or fitness, focusing on the well-being of the whole person. It is not simply the absence of physical disease, but an approach that emphasizes all aspects of a person body, mind, and spirit working in harmony. Wellness changes over time and along a continuum: Wellness is not a static state or an end-point, but rather is often depicted on a continuum representing the optimum levels of wellness that an individual attempts to achieve and maximize throughout his or her life. Wellness is individual, but also influenced by the environment: Wellness is a process pursued on the individual level, by engaging in healthy behaviours and practices that promote personal well-being. However, personal wellness is also influenced by the conditions or environment in which one lives. With the increasing emphasis today on environmental problems, there is also increasing attention on the environmental, external, cultural, and global aspects of wellness. Wellness is self-responsibility: Although sick people typically rely on medical doctors for treatment to fix a problem and return to good health, most advocates of wellness philosophies emphasize each individuals responsibility to take charge of ones own health and to engage in behaviours that will proactively prevent illness and promote a higher level of health and well-being. The decision of whether or how to use the word wellness in marketing is probably best left to individual businesses to decide, based on their own business strategy and customer base. However, it would also be beneficial for the spa industry to start thinking and talking about wellness in a more coherent and harmonized manner. In the recommendations section of this report, we provide guidance on some core principles of wellness that could be adopted by the spa industry.

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Defining Wellness industry Much like the word spa, the word wellness has seen increasing usage, especially for marketing and advertising purposes, without regard for its deeper meaning. This has led many spas, health, and other professionals to dismiss it as just another passing fad. However, like the word spa, wellness is grounded in a solid historical tradition and body of knowledge, and trends indicate that it is becoming a major societal force. In many ways, the thinkers behind the wellness theories and models developed in the 19th and 20th centuries were merely ahead of their time. While wellness, as a word and a concept, is only hazily understood by most mainstream consumers, the many challenges society faces today are driving people to explore new wellness-related products and services as they realize a need to find a better way to take care of them. Recognition and acceptance of wellness-related theories and practices is growing rapidly, even if these are not formally labelled under the wellness banner. In the fields of economics and business, there is no clearly defined wellness industry, although there is an emerging sense that such an industry does exist and is growing rapidly. One of the first and only people to talk and write specifically about .Wellness as an industry, rather than a concept, is economist and entrepreneur Paul Zane Pilzer, who in 2002 published the first edition of his book, The Wellness Revolution. Pilzer presents a simple and easy way to understand what the wellness industry is and to differentiate it from the conventional healthcare sector (which he calls the sickness industry): Pilzer also suggests that the wellness industry encompasses the following sectors: Vitamins, nutritional supplements, skin care products and services, cosmetic plastic surgery, voluntary eye surgery (LASIK, radial keratotomy), cosmetic dermatology, genetic engineering (sex selection and fertility enhancement), cosmetic and reconstructive dentistry (caps, implants), preventative medicine, health savings accounts, high-deductible (wellness) health insurance, fitness clubs (including trainers), fitness and athletic equipment, voluntary pharmacy (Viagra, Rogaine),health food products, health food restaurants, [and] weight loss products.

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Wellness Industry in India

In the recent times, the beauty and wellness industry has been witnessing astronomical growth and as per the Ernst and Young-FICCI Wellness Report 2009 the current market size is estimated at Rs 11,000 crore and expected to grow at the rate of over 30-35% over the next few years. The total number of spas in the country is 2300 of which 70 per cent of spas are run by local brands that has generated annual revenues of around US$ 384 million. In the next four years 700 new spas, both home-grown and international brands will open in India to meet the growing demand. Nearly 3, 00,000 therapists will be required in the Indian spa industry by 2012. Destination /Hotel spas is another growing category where spas can contribute up to 15 per cent of hotel's revenue and in some cases is the second fastest income generator in the hotel after rooms.

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Introduction to Salon and Spa Industry

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Overview

It is a part of the evolution process to look for a right match and the human mind and body is programmed such that it finds ways, including the quotient of looks. Thus, the desire to look good is aggressively fuelling the demand in the beauty business Beauty salons in India are no longer only about the usual hair cut-and-dry routine. New services like hair colouring (not just for the old and grey haired), streaking and straightening, eye massages, and even specialised facials to get rid of acne and wrinkles are being offered and consumed. "The average spend of a consumer per visit is around Rs 2,000. Demand in this industry is driven by demographics. Smaller salon businesses can compete with chain salons based on their reputation of technical superiority or desired location. Salon chains, big and small are scaling up their presence. A recent LOreal study found that of rs.5070 beauty care market, beauty services dominate with an 87% share of which organised beauty services hold a 5 percent share. Industry experts estimate that the organised services are growing at 30-35% currently. To reach out to more consumers, many salon chains have cut prices. Many established domestic and foreign companies are coming with plans across categories to meet the needs of the ever-growing consumer base in the country. Compared to the West, Indian market is still at a nascent stage and thus there is a wide scope of creating brand loyalty .In today's scenario the beauty industry is no longer limited to beauty salons and allied activities. There is a willingness to spend on them. Moreover, now there is no guilt attached to spending on oneself. New products, new technologies and new treatments developed by the beauty industry are giving millions of men and women a facelift. This momentum is promising to take Indias $6.3 billion beauty and allied services industry (according to New York-based consulting and research firm Kline & Company) into a higher orbit, gradually increasing its share of the $270 billion world beauty market. With a growth rate of 13% a year, India is one of the fastest-growing markets in the world four times faster than the US, according to Kline.

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In a 2007 survey, market research firm The Nielsen Company found that 84% of Indians felt greater pressure to look better than the generation before them; 30% conceded they are spending more and more on beauty products and treatments; 36% invested monthly on hair care and 21% get a facial done every month. In the beauty business this translates into a slew of products at all price ranges and the services that come with promises. There is a discernible shift from fairness to healthy skin, from beauty salons to spas that offer holistic health and more male interest in all these categories. The penetration of the beauty industry is not only confined to the metros but has also reached small towns. The sales are coming equally from the class I towns and the demand matches the figures of any big towns.

To get a wider outreach the consumers are to be educated of the value of the brand and the pluses of certain products. The beauty business has had a share of critiques and was viewed as a part time work by many until the stalwarts in the business such as Shahnaz Husain, Vandana Luthra, and Blossom Kochchar made an indelible mark. Of course, with beauty products growing like congress grass and Ram Dev too having a line of natural products in the market, the beauty industry sure is getting bigger and better. The 'obligation' to look good is one aspect; there are other reasons that back the growth. According to Value Notes Database, Pune-based research firm, India has over 61,000 beauty salons in towns that have a population of over one million. More on the growth: The beauty salon industry's estimated turnover is over Rs 2,000 crore (Rs 20 billion), with the metros accounting for about 60 per cent of this. The large beauty salons take up over 27 per cent of the revenue in the towns. L'Oreal started with just one salon in 2003. The total number has grown to 12 now. People are definitely growing conscious about how they look. In fact, looking good has become some kind of a necessity. Earlier one would depend on homemade stuff, but now with so many factors like pollution and stress, it is not possible to maintain that glow or perfect look without taking help from beauty experts at parlors or what one calls salons today. Whether we debate on inner beauty taking precedence over outer looks, there is no denying the fact that looking great has a direct effect on confidence levels. .The industry has grown manifold with salons providing best of services in terms of customized
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packages. Ambience of the place plays a major role in getting the customer back to the place. There are an equal number of men opting for beauty treatments compared to women. They use all kinds of spas, they go in for chest wax, threading and manicure and pedicure. The idea is clear, all and sundry want to look good at any cost. Customers dont mind spending some money on them .In addition to this, it is the ambience and services provided at the salon that have also made a difference. Salon chains mostly target urban SEC A and B consumers. While more of a metro and large city phenomenon, some chains are also beginning to look at smaller towns e.g. Shahnaz Hussain salons has extended its presence to Bhatinda, Jabalpur,Faridabad and Dehra Doon, among others Kaya has extended its clinics to Guwahati, Vishakapatnam and Bhopal.

Beauty in numbers Already, estimates suggest that branded beauty salons could be a Rs 1,500 crore industry; and spas, Rs 200 crore. The overall market, including the unbranded part, is much larger. Every piece of economic and consumer spending data, and every shred of evidence coming from the behavioural patterns of consumers, suggests that figure is likely to shoot up in the years to come. Population growth, particularly in the younger age groups, rising disposable incomes, higher discretionary spends and growing aspirations all support the coming boom About 77 million Indians will enter the working-class population between 2005 and 2015, according to the latest census report. Moreover, two-thirds of Indians are aged fewer than 35, making it one of the youngest populations in the world. But there is more than just the sheer number of potential consumers. They are also willing to spend a higher percentage of their incomes in their quest for beauty. A McKinsey Global Institute research shows that between 1995 and 2005, household spending on personal care products doubled from 4% of total income to 8%. The figure is expected to grow to 11% by 2025. That means absolute spending could multiply

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seven-fold to about Rs 7.4 trillion by 2025 (though this includes several unrelated categories like jewellery). By then, the average Indian household is likely to be spending about Rs 49,000 per year on personal products and services (compared to Rs 7,000 today). More interestingly, the McKinsey research suggests that Indians will be spending less on necessities and more on discretionary purchases. In the personal products category, this would mean lower spends on basic needs like soaps and shampoos and higher spends on facials; anti-ageing creams and, perhaps, wonder treatments like Restylane. The beauty salons market has currently been exploited by organised players more at the upper end of the price range and demographics. This includes Lakme, VLCC and several other regional players like Looks, Affinity, Enrich, Juice, Madonna,Naturals and YLG. The number of women in LSM 8+ to LSM 12 is ten times that of LSM 12+.

Industry speak Looking good probably never made more business sense than now in India. Beauty and grooming salon chains will surely vouch for that even as they expand across major cities quickly, with some of them even extending to day spa services. Our bridal services have grown big in two years. Not just the brides but even grooms and families and friends of both want beauty services for the Wedding say Suvodeep Das marketing head of the rs.180 crore Kaya Skin Clinic Its not just the bridal services that are in huge demand. Hair, beauty and grooming salons have seen rapid growth in urban India as consumers Men and Women-Have begun to view looking good as an essential part of their changing lifestyle. The consumers today are much evolved and in tune with the global trends, know what he/she wants. Our research shows that men and women are now increasingly conscious of their appearances and grooming, both in their professional and personal lives says Sandeep Ahuja , MD VLCC Healthcare As Shahnaz Hussain who owns Shahnaz Hussain Salons observed Todays Indian Woman is aware of the benefits of beauty care. She is financially independent, has personal disposable income and is willing to spend on salon treatments Most chains say that their Male clientele has also climbed to 20-35% of total clientele.

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Kaya skin Clinics has 81 company owned salons across 26 cities.We created the concept of cosmetic dermatology in India. With such services, consumers look for efficacy and safety, professional service and ambience, and expertise and guidance. Owning the clinics gives us better control on Quality and delivery, says Das. Shahnaz Hussain Salons has 212 salons in India, five of them company owned and the rest franchised.We have become known for specialised treatments for skin and hair and our therapeutic products. We have also established brand loyalty and identity in the high end and middle segments of the market. says Shahnaz. VLCC Healyh Care has 150 salons in 90 cities in India, 90% Hussain of which are company owned. Besides slimming and Beauty Services, our Proprietary come-Derma skin treatments are very popular, said ahuja.VLCC plans to expand its day spas it has four already-and enter the med-spa space. Philip Giles-director professional products division, Loreal India said, The Indian professional hair and beauy market is already one of the fastest, if not the fastest growing market worldwide.

The following trends impact the Beauty Salons market Growing disposable income & evolved lifestyle are encouraging women to look at out of home salon solutions to address their beauty needs. The explosion of media related to looking good and the growing availability of salons offering basic and innovative hair and skin services works as a draw for women This is also resulting in an up gradation of women moving from the unorganised sector (mom & pop owners) to organised/ branded salons. The opportunity for up gradation at a relatively lower LSM (SEC B) is huge as the number of women in those strata is large. More women are also looking at salons as centres of expertise and authority. They are more comfortable with their beauty needs being in the hands of well trained resources. Women are expecting salons to work with product lines which are professional, carrying a source of authority which is not available in the normal retail market products.
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 Being a service business, customer retention is driven largely through quality of experience, products used and specific operators towards whom customers have loyalty. New retail destinations (developing malls, high street, and good residential) and legacy locations are adopting salons to address customer footfall

New Trends A growing trend in the beauty industry is the increased use of medical spa salons, which also offer salon and spa services. According to The International Medical Spa Association in 2004, there were 2,500 medical spas in the U.S. It is believed that medical spa services performed by a licensed physician, physician's assistant or registered nurse will increase through 2010 as baby boomers age and demand for such procedures increases in younger women. In a study done by IAPAM, 78 percent of the women rated medical credentials as very important when choosing a medical spa. A beauty salon industry analysis by the International Association for Physicians (IAPAM) in Aesthetic Medicine indicates that medical spa services such as Botox treatments, Botox cosmetics and medical weight management are gaining popularity as new beauty services. International Spa Association, who conducts regular beauty salon industry analysis of the beauty spa sector, has seen an 85 percent growth in medical spa services since 2007. The International Spa Association gauged current trends of customer showing 46 percent of salon, spa business owners saw an increase in the number of shorter treatments such as mini-facials or manicure touch-ups. However, these clients are still frequenting salons and spas opting for less expensive services to fit budgets

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Major International Players in the Salon & Spa Market in India

Toni & Guy

TONI&GUY is an international icon founded over forty years ago at a single salon in London. Bruno Mascolo and his brothers under the guidance of three generations of creative talent and vision have built the TONI&GUY name into a powerful brand. TONI&GUY Salons and TONI&GUY Hairdressing Academys provide more than a hairstyle; they offer a complete fashion lifestyle. UK based, TONI&GUY has 402 salons in 41 countries worldwide and 28 educational academies globally employing over 5000 in the UK and a further 2000+ employees across the world. The Official Hair care Sponsor of London Fashion Week It was voted as a Super brand (an accolade given to only the UKs strongest brands) in 2005, 2006 and most recently for 2008/09 and a Cool Brand additionally in 2006. Toni & Guy is expensive. While they are doing your hair, they try to sell the product that they are using (all the products from the shampoo to the serum) and at the end when one is paying they give you a list of products and mark off the ones that you used and try to sell it to you at the counter, again. It was launched in Mumbai in 2007 at Bandra and they are three salons old in India.

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Frank Provost

Mumbai city is now, beyond any doubt, on the international map. Franck Provost, the world famous chain of beauty salons formally launched itself in India with great style on the 16th of September 2004 at Vie Lounge and Deck, in Mumbai, the city of glamour, fashion and trends. Provost gives the city the ultimate in international hair and body treatment, all in keeping with an international standard of perfection An elegant space spanning three floors of the Aryston Centre at Juhu, Franck Provost is a hair and beauty salon that believes in offering each individual a personalized solution to his/her hair and beauty needs. A place that allows one to sit back and relax, knowing that they are in the highly capable hands of professionals trained. Their salon/spa is located in Juhu and Bandra West in Mumbai.

Jean Claude Biguine

JEAN-CLAUDE BIGUINE is now present in 17 countries, with 318 salons of which 106 Houses of Beauty, 12 BIGUINE academy, 1 JCB CLUB and 3 training centres: France, Italy and Japan. Headquartered out of Paris and with numerous franchises across the globe, their exciting journey in India began in 2008 when they launched their first flagship salon in Mumbai. Currently, they have six outlets in India and are looking to expand further in the years to come. The Jean-Claude Biguine philosophy is firmly aimed at providing the best of modern and innovative beauty solutions, ranging from head to toe, under a single roof. The salon attempts to provide leading beauty services to its every patron in an indulgent, warm and comforting manner.

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To ensure optimal service standards, they have top French stylists and aestheticians who work in tandem with trained Indian beauty experts. The look and feel of the salon is very international and sophisticated. They are experts in nail care and are famous for their manicures and pedicures. Due to their high standards of Quality and service Jean Claude Biguine is famous amongst the elite in Mumbai and Bangalore. They use Biguine Bio, a 100% organic range of skin products that offers natural beauty to their numerous loyalists. They have recently launched hair accessories in India which is going to take the biguine brand forward.

Major Indian Players in the Salon & Spa Industry

Juice

Juice has been in existence for the past decade and has now become leader and benchmark in the Hair care and Nail care industry. Juice as a brand is extremely modish and funky. They have experienced a period of unprecedented growth over the last decade. Currently, it is present in the high youth orientated cities thereby the trendsetting hairstyles, nail art has taken the cities by an uproar. At present, Juice Salon has fifteen outlets operational out of which seven are company owned and rest eight are franchised. However, with larger expansion plans in mind, the company is seeking to evolve as a full beauty service provider. The expansion for Juice Salon will take place in stages, kicking off in the Metro cities and will gradually spread out to other parts of the country.

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Jawed Habib

Jawed Habib is one of the leading hair & beauty salon chains in India. The company currently operates a total of 225 outlets across 21 states and 67 cities in the country. The company is promoted by Jawed Habib, a renowned Hair Expert who started the company with a vision to provide quality hair styling and beauty services to the wider populace of the country. With his passion and relentless efforts, he has established an effective system which is self sufficient in terms of providing quality services to clients all across. Hair and Beauty services are provided through the company's own and franchised outlets. The company also runs academies to impart quality education in hair and beauty to aspirants in the profession of cosmetology. With 37 outlets in the year of incorporation, the company has grown rapidly and as of date, has 8 owned and 176 franchised salons in 62 cities across India. The company also runs 6 own academies and 35 franchised outlets across 36 cities. Jawed has worked extensively at grass root levels to grow as a professional organized player in this highly unorganized industry. His achievements like entering into Limca Book of Records, association with Sunsilk as a brand ambassador and with Panasonic for its hair care products, etc. have spread recognition of our brand and today, Jawed Habib is one of the few recognized brands in the country.

Mad O Wat

Sapna Bhawnani, the founder and owner of Mad-o-Wot , is the USP of the salon. This remains the wackiest salon in Bandra. She call herself a glorified hajjam and remains one of the top celebrity hair stylists in Mumbai. The salon screams trend setters and is famous for its funky and zany haircuts and hairstyles.

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Aalim hakim-hair and tattoo lounge

Aalim Haakim is a popular stylist with bollywood celebs. He is famous for his funkly-ness and flamboyance screams out as one goes through his profile. A unique salon with tattoo services and hair care provided. The tattoo is an attraction for many. He has his salons in Mumbai and Hyderabad.Locations in Mumbai: Bandra and Versova. Lakme studio

Lakme Salon offers a full range of the latest beauty and grooming services in the areas of hair care, skin care and beauty. The services include specialized services for skin (facials), hair (coloring, cuts, styles, perms etc), hands & feet (advanced manicures and pedicures) as well as essential beauty services (waxing, pedicures, and manicures). They are trying to penetrate into the highly lucrative bridal market in India by offering the convenience to get makeup artists to visit homes or wedding venues for bridal makeup services. They have 9 salons in Mumbai offering world class experience and a startling 88 salons across India.

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Enrich beauty salon

It entered the beauty circuit in 1997. Converted into a private limited company in 2004, it is one of the largest chain of LOreal certified unisex salons in Mumbai today. Enrich is considered as a melting pot of creative styling concepts along with beauty awareness, skin and hair treatment techniques. Enrich includes fifteen salons located in the Eastern, Central & Western Suburbs of Mumbai & One in Pune & Bangalore each

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Introduction to Jean Claude Biguine

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Background JEAN-CLAUDE BIGUINE opened his first salon at the age of 22. He designed a functional salon, and provided his clients with the best services at very affordable prices. One could define his fashion taste as the trends of the city, easy-and-ready-to-wear genuine creations and hair styles for every day, without stereotypes. Brunettes, blondes or redheads, with long or short, smooth or straight hair are all to be found in his creations, which build on the best trends and ideas of the moment.

Jean Claude Biguine Internationally JEAN-CLAUDE BIGUINE is now present in 18 countries, with over 350 salons of which 106 Houses of Beauty, 12 BIGUINE academy, 1 JCB CLUB and 3 training centres: France, Italy and Japan. One of the worlds leading Salon & Spa chains it has 3500 plus stylists and colourists serving 20,000 customers around the world. What separates Biguine from others is that it has state of the art furniture and unparallel ambience providing Hair, Skin and Spa Services all under one roof

Biguine India The business of beauty has seen few institutions as influential as Jean-Claude Biguine. Today, owing to high standards of quality and service, they are one of the leading salon and spa chains in the world. Headquartered out of Paris and with numerous franchises across the globe, their exciting journey in India began in 2008 when they launched their first flagship salon in Mumbai. Present since 2008 with modern and innovative solutions for hair, skin and beauty care, they have established six salons in the city of Mumbai and Bangalore. In 2009 Biguine associated with The Collection for salons in Phoenix mills and Banglore. In 2010 Biguine captured the Platinum Strip in Mumbai with salons in Colaba, Kemps Corner and Juhu. The Jean-Claude Biguine philosophy is firmly aimed at providing the best of modern and innovative beauty solutions, ranging from head to toe, under a single roof. The salon
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attempts to provide leading beauty services to its every patron in an indulgent, warm and comforting manner. To ensure optimal service standards, they have top French stylists and aestheticians who work in tandem with trained Indian beauty experts. Apart from this, they use products such as Biguine Bio, a 100% organic range of skin products, Kerestase , LOreal and OPI that offers natural beauty to their numerous loyalists. Associated with brands such as Kingfisher, Citibank, CCI club, theatres such as PVR and INOX and Shoppers Stop Biguine is growing from strength to strength with every passing year. With a formidable PR and Events team it is constantly featured in top magazines such as Vogue, Elle and Grazia. Biguine today has achieved cult status in India and is looked upon as a premium brand offering unparallel service. Biguine India has recently launched a line of Hair accessories keeping in tune with the changing trends in the market and the need amongst todays youth to look fashionable and trendy.

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Introduction to the Project

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 Title of the project Customer Attraction and Retention in Indias Salon and Spa Industry

Need and Significance To know whether the salon/spa meets the customers expectations in terms of their service and quality this in return helps in retaining them. Type of Research design used Descriptive Research Objective of Study To understand the consumption pattern of salon and spa industry in India. To find out the factors/attributes that help the decision making process of an individual while deciding a particular salon and spa. To find out the various reasons that makes a customer visit/revisit the particular salon Type of Research used- Questionnaire Sample studied Technique- Random sampling technique Size- 100(29 Males and 71 Females) Limitation- Research conducted in the city of Mumbai Data Gathering procedure Questionnaire, Interviews Data Analysis and Interpretation Key Findings and Summary Recommendations

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Synopsis

Project Title: Customer Attraction and Retention in Indias Salon and Spa Industry Aim and Objective

Growing disposable income & evolved lifestyle are encouraging women to look out of home salon solutions to address their beauty needs. The explosion of media related to looking good and the growing availability of salons offering basic and innovative hair and skin services works as a draw for both Men and Women. This is also resulting in an up gradation of both Men and women moving from the unorganised sector (mom & pop owners) to organised/branded salons. Being a service business, customer retention is driven largely through quality of experience, products used and specific operators towards whom customers have loyalty. Through this research we intend to release a comprehensive qualitative and quantitative research report on Indian salon and spa goers, an insightful profile of todays salon and spa consumers, who they are, their motivations for going to the salon/spa and their expectations .

The Objectives of the study are: To understand the consumption pattern of salon and spa industry in India. To find out the factors/attributes that help the decision making process of an individual while deciding a particular salon and spa. To find out the various reasons that makes a customer revisit the particular salon

Scope of the Study: The scope of the study is to understand the various factors that influences an individual to visit a particular salon, to find out various reasons that make him/her revisit the salon and ultimately make him/her loyal towards the salon.

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Methodology: The methodology used will be Descriptive research. The Research would have a Structured Questionnaire wherein Respondents would be interviewed. It would also consist of Salon Visits and discussion with Industry Professionals Data Collection Primary data- Questionnaire/ Interviews Secondary Data- Publications, Journals, Wellness Industry Reports Sample Size: My sample size consisted of 100 respondents comprising of 71 females and 29 Males. These were the respondents who belonged to the upper middle class and higher strata of the society i.e. only those people who had a monthly family income exceeding 25,000 Rs. were included in the survey. Also the sample consisted of only those respondents who had taken a salon/spa service in the last one year.

The break-up of the age group is as follows:

Age of the respondent

Frequency Percent

Valid Percent 3.0 7.0 18.0 38.0 34.0 100.0

Cumulative Percent 3.0 10.0 28.0 66.0 100.0

55 and above 3 45-55years Valid 35-45years 25-35years 15-25years Total 7 18 38 34 100

3.0 7.0 18.0 38.0 34.0 100.0

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Research Instrument: After deciding upon the sample size and target population, I chose my research instrument. Since, I was keen on conducting a survey; I thought that the best research instrument would be a questionnaire. So, I prepared a questionnaire of about 12 questions keeping in view research aims and objectives. My questionnaire consisted of questions about the respondents demographic details, viz., name, age, gender and his/her monthly income. The questionnaire also consisted of questions which revealed about the respondents choice of salon/ spa in the city of Mumbai, his/her frequency of visit and the services opted for by him/her. Further, the respondents were also asked to rate the reasons for visiting a salon on a 1-5 scale my

and also rate the factors considered while selecting a salon/spa. They were asked to rate each of these variables individually. Their responses were also taken on their chances of shifting to a new brand and the parameters which would aid such a shift. Through this Questionnaire an attempt was made to gauge the factors that would lead to a negative experience for a salon/spa goer A specimen of the questionnaire is attached to the project as annexure.

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Data Analysis and interpretation

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The sample consisted of 100 Respondents.

It comprised of housewives, students

belonging to the age group 18 and above and also people from the business and service background. The Occupation wise breakup of the respondents is mentioned in the table below. Occupation of respondent Frequency Percent Valid Percent Cumulative Percent Valid housewife student service business Total 31 27 28 14 100 31.0 27.0 28.0 14.0 100.0 31.0 27.0 28.0 14.0 100.0 31.0 58.0 86.0 100.0

Awareness about the salon/spa

The Respondents were asked about the Salon/spa they generally visit and also how they became aware of the same. 53 percent of the respondents came to know about the salon/spa through a friend/word of mouth, 23% were aware about the same through advertisements in Radio/ magazines/newspapers, 17% noticed it while travelling, 4% and 3% came to know about the same through Social networking sites and promotional material respectively.

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Test 1 Objective: To test whether frequency of visit of the respondent is independent of gender Variables: a) Gender of the Respondent b) Frequency of visit of the Respondent Test: Chi Square Null Hypothesis: Frequency of visit of the respondent is independent of Gender

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Chi-Square Tests Value 14.741a 16.550 .313 100 df Asymp. Sig. (2sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 4 4 1 .005 .002 .576

a. 5 cells (50.0%) have expected count less than 5. The minimum expected count is 2.03.

Note: Confidence level = 95% and Significance level = 5%. Result: Asymp. Sig. (2-sided) is .005<.05, null hypothesis is rejected. Interpretation: This means that the gender of the respondent is dependent on the frequency of visit. Though todays men have increasingly started visiting the salon/spa for their grooming needs with a large percentage of them even visiting the salon twice a month but they have mostly restricted themselves to a haircut , colour touch up, massage and an occasional facial. Females on the other hand have been open to a variety of services yet it has been observed that most of them like to visit a salon/spa only once every month.

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Correlation between Gender of Respondent and frequency of visit

Amongst the 29 males interviewed, 13 men visited a salon/ spa once a month, 10 visited twice a month, 3 men visited once in two months and 3 men answered that they visited a salon rarely. Amongst the female respondents (71 females were interviewed) the maximum i.e. 37 respondents answered that they visited a salon/spa once a month, 6 answered that they visit twice a month, 14 visited once in two months. 10 female respondents visited a salon sometimes while 4 visited it rarely. Most of the male respondents opted for a haircut, colour touch up , head massage and an occasional facial or bleach on their salon/spa visit. Most of the female respondents opted for a host of services like a haircut, touch up, pedicure/manicure, facial, waxing etc on their salon visit.

Male

Female

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Test 2 Objective: To test whether frequency of visit is independent of age of the respondent Variables: a) Age of the Respondent b) Frequency of visit of the Respondent Test: Chi Square Null Hypothesis: Frequency of visit of the respondent is independent of age group.

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 49.004a 42.524 1.163 100

df 16 16 1

Asymp. Sig. (2sided) .000 .000 .281

a. 18 cells (72.0%) have expected count less than 5. The minimum expected count is .21.

Note: Confidence level = 95% and Significance level = 5%. Result: Asymp. Sig. (2-sided) is .000<.05, null hypothesis is rejected. Interpretation: This means that the age of the respondent is dependent on the frequency of visit. 61.1% of the respondents in the age group 35to 45 years visited a salon/spa once a month

followed by 57.9% in the age group 25-35 years. This was followed by 42.9% in the age group 45-55 years and 32.4% in the age bracket 15-25 years. On the other hand 26.5% of the people

in the age group 15-25 visited a salon/spa twice a month followed by 16.7% in the age bracket 35-45 years and 10.5% in the bracket 25-35 years. Hence we can interpret that people in age bracket of 20-45 years form a chunk of the salon and spa goer population.

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The bar graph below shows the responses of the Respondents in the various age groups.

Note: In terms of percentage: 61.1% of the respondents in the age group 35to 45 years visited a salon/spa once a month followed by 57.9% in the age group 25-35 years. This was followed by 42.9%in the age group 45-55 years and 32.4% in the age bracket 15-25 years. On the other hand 26.5% of the people in the age group 15-25 visited a salon/spa twice a month followed by 16.7% in the age bracket 35-45 years and 10.5% in the bracket 25-35 years. Hence we can interpret

that people in age bracket of 20-45 years form a chunk of the salon and spa goer population.

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Test 3 Objective: To test whether the chances of shifting to a new brand is independent gender Variables: a) Gender of the Respondent b) Chances of shifting to a new brand Test: Chi Square Null Hypothesis: Chances of shifting to a new brand is independent of Gender of the respondent

Chi-Square Tests Asymp. Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 15.854a 15.577 .695 100 df 3 3 1 (2-sided) .001 .001 .405 Sig.

a. 1 cells (12.5%) have expected count less than 5. The minimum expected count is 2.61.

Note: Confidence level = 95% and Significance level = 5%. Result: Asymp. Sig. (2-sided) is .001<.05, null hypothesis is rejected. Interpretation: This means that the chances of shifting to a new brand are dependent on the gender of the respondent. While 22.5% of the females say that their chances of shifting to a new brand are extremely high only 10.3% of the males say so. Also a staggering 20.7% of the males say that their chances of shifting to a new brand is low showing considerable loyalty towards their brand whereas only 4.2% of the females rate their chances as low.

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Percentage wise break up of chances of shifting to a new brand

Males

Females

Test 4 Objective: To test whether the chances of shifting to a new brand is independent of age Variables: a) age of the Respondent b) Chances of shifting to a new brand Test: Chi Square Null Hypothesis: Chances of shifting to a new brand is independent of Age of the respondent

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Chi-Square Tests Asymp. Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 51.797a 42.672 .000 100 df 12 12 1 (2-sided) .000 .000 .983 Sig.

a. 12 cells (60.0%) have expected count less than 5. The minimum expected count is .27.

Note: Confidence level = 95% and Significance level = 5%. Result: Asymp. Sig. (2-sided) is .000<.05, null hypothesis is rejected. Interpretation: This means that the chances of shifting to a new brand are dependent on the age of the respondent. It is the maximum in the age group 45 to 55 years followed by respondents in the age group 15-25 years. People in the age group 45-55 years how maximum chances of shifting to a new brand so they should be targeted by the salon and spa owners.

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The pie chart below shows the varied responses to the question Chances of shifting to a new brand if offered better services by consumers from different age brackets.

15-25 years

25-35 years

35-45 years

45- 55 years

55 and above

Interpretation: From the pie chart above we can construe that the chances of shifting to a new brand is highest amongst the age group 45 to 55 years followed by the respondents in the age group 35 to 45 years. It is also fairly high in the age bracket 15 -25 years. Thus as a company who is in the salon and spa business segment should try to attract these customers through various marketing strategies. People in the age group 55 and above are fairly loyal to their brand and though they would like good services they prefer a salon/spa close to their residence. It is difficult to attract people in the segment 25-35 years as they seem moderately loyal to their salon/spa but once they become a brands loyal customer it is easier to retain them too.

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Varied responses to the question Reasons for shifting to another brand would be

A)

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Interpretation: The respondents were asked whether a change in location of their current salon/spa would lead them to shift to a new brand of salon/spa. The bar chart above shows their response. On further analysis it was found that that 55% of the male respondents would shift to a new brand compared to only 40.8% of the female respondents. This shows that men prefer to visit salons which are convenient to them in terms of location and any change in respect of location could cause a probable shift to another brand.

B)

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Male

Female

Interpretation: This result shows that amongst the genders, females are more particular about their stylist and generally prefer getting their hair cut and coloured by a particular stylist only. Men on the other hand do not show such a tendency and are open to other stylists too. Hence quitting of their preferred stylist impacts the female gender more and instigates them to change their salon/spa too.

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C)

Male

Female

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Interpretation: Here the responses were mixed but a trend that emerged was that a raise in price could prompt the female gender to shift from their current salon/spa brand but men had a very clear opinion with only 10.3% of them answering maybe. Also 58.6% of Men responded with a no showing that men are not very price sensitive

D)

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Male

Female

Interpretation: The response has been very clear that a poor quality of service would prompt both the genders to seek a salon/spa service elsewhere.

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E)

Male

Female

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Interpretation: The results clearly show that Men rate this factor very high and an unfriendly staff at a salon/spa would prompt them to change their brand immediately. Thus any company in the salon/spa segment should focus on this factor at the time of recruitment especially if they have a sizeable male clientele.

F)

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Male

Female

Interpretation: The results show clearly that a majority of the respondents rate this factor highly and a bad ambience would prompt them to change their salon/spa immediately. When probed most of the men responded by saying that a salon/spa should be a place where they can distress after a long days work and hence ambience is a critical factor to their choice.

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G)

Interpretation: This is the most important of all factors and has been given equal importance by both the genders.

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Varied Responses to the question Do blogs written in best/worst experience influence your decision to visit a particular spa/salon

Interpretation: The results show that people are generally not influenced by blogs and would like to visit a salon/spa on their own before forming an opinion/judgement. At the same time it has been assumed that the blogs were written by an individual unknown to the respondent and not someone who was an acquaintance.

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Response to the question Factors leading to a negative experience in a salon/spa

Interpretation: The response to the above question shows that a staggering 36% of the respondents said that all the factors ie. Noise, temperature, overcrowded, Lack of relaxing atmosphere and cleanliness would contribute to them having a negative experience in a salon/spa.

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Objective: To test how the genders rate the below mentioned factors on the reasons for visiting a salon/spa

Interpretation:The bar graph above shows clearly that both the genders rate Occasion as the most important reason for visiting a spa/salon followed by Makes you feel good.Women rate To get pampered as the third most important while Men rate helps reduce stress as important.

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Objective: To test how the genders rate the below mentioned factors while deciding a particular salon/spa

Interpretation: Here the respondents were asked to rate the above factors on a 1-5 scale. The response generated has been depicted in the bar graph above. Through this graph a clear trend that emerges is that while deciding on a particular salon/spa the factor that is rated the highest by Men are Importance of Services offered followed by importance of ambience and value for money. Females on the other hand rate importance of brand name the highest. They have rated importance of ambience, services offered and stylist relation almost at par.

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Key Findings And Summary

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Key Findings

Recommendation by a friend/word of Mouth publicity works the best to create awareness about a salon/spa. 34.5% of the males visit a salon/spa twice a month compared to only 8.5% of the females Men show more loyalty towards their current brand of salon/spa as compared to their female counterparts. Location is a very important criterion for men with 55.2% of the men saying a change in location would prompt them to change their brand. Females are more particular about their stylist and prefer getting their hair cut and coloured by them only. Experiential Blogs do not influence decision making and customers prefer visiting a salon/spa first before forming a judgement. Both the genders rated Occasion as the most important reason for visiting a spa/salon followed by Makes you feel good. Women rated To get pampered as the third most important while Men rated helps reduce stress as important.

Factor that is rated the highest by Men are Importance of Services offered followed by importance of ambience and value for money while selecting a salon/spa.

Females on the other hand rate importance of brand name the highest. They have rated importance of ambience, services offered and stylist relation almost at par.

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Summary This study was carried out to understand the consumption pattern of salon and spa industry in India, to find out the factors/attributes that help the decision making process of an individual while deciding a particular salon/spa and to find out the various reasons that makes a customer revisit the particular salon. The Research had a Structured

Questionnaire wherein Respondents were interviewed. It also consisted of Salon Visits and discussion with Industry Professionals My sample size consisted of 100 respondents comprising of 71 females and 29 Males. These were the respondents who belonged to the upper middle class and higher strata of the society i.e. only those people who had a monthly family income exceeding 25,000 Rs. were included in the survey. Also the sample consisted of only those respondents who had taken a salon/ spa service in the last one year. Through this study it was found out that about 53% of the respondents became aware of the salon/spa they are currently visiting through a friend/word of mouth and about 23% through advertisements in media channels. When questioned about their frequency of visit it was found that about 34.5% of the male respondents visited a salon/spa twice a month compared to only 8.5% of the female respondents. But it was also observed that most of the male respondents opted for a haircut, colour touch up, head massage and an occasional facial or bleach on their salon/spa visit. While the female respondents opted for a host of services like a haircut, touch up, pedicure/manicure, facial, waxing etc on their salon visit. While women were aware of the various services offered in the salon/spa and its benefits men on the other hand had to be introduced to the same by their wives, girlfriends, mothers or a stylist/beautician at the salon/spa. Once introduced and if they liked the same they would like to take up the service on their future visits. This finding represents a great potential for salon/ spa owners who should look for ways on how to get men introduced to a service for the first time as they represent a set of loyal customers. It was also found that 52.1% of the female respondents took a salon/spa service once a month only. On probing it was found that a majority of them preferred to get services like waxing etc done at home only by a beautician because of factors such as cost, convenience etc. On comparing age of the respondent with the frequency of visit it was observed that people in the age bracket of 20-45 years formed a chunk of the salon/ spa goer population.
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When questioned about their chances of shifting to a new brand if offered better services, both the gender showed considerable chances and were open to the same but at the same time men showed more loyalty towards their current brand of salon/spa with 20.7% stating that their chances are low compared to only 4.2% of the female respondents. It was also observed that the chance of shifting to a new brand was fairly high amongst the age group 45 to 55 years followed by the respondents in the age group 35 to 45 years. It was also fairly high in the age bracket 15 -25 years. Thus a company who is in the salon and spa business segment should try to attract these customers through various marketing strategies. People in the age group 55 and above were fairly loyal to their brand and though they would like good services they preferred a salon/spa close to their residence. It is difficult to attract people in the segment 25-35 years as they seem moderately loyal to their salon/spa but once they become a brands loyal customer it is easier to retain them too. The respondents were asked whether a change in location of their current salon/spa would lead them to shift to a new brand of salon/spa. 55% of the male respondents said that they would shift to a new brand compared to only 40.8% of the female respondents. This shows that men prefer to visit salons which are convenient to them in terms of location and any change in respect of location could cause a probable shift to another brand. Females were more particular about their stylist and generally preferred getting their hair cut and coloured by a particular stylist only. Men on the other hand did not show such a tendency and were open to other stylists too. Hence quitting of their preferred stylist impacts the female gender more and instigates them to change their salon/spa. On being quizzed whether a raise in price would instigate a shift the responses were mixed but a trend that emerged was that only 10.3% of the Men answering maybe and 58.6% responded with a no showing that men are not very price sensitive and give considerable importance to other factors also. Factors such as poor quality of service, an unfriendly staff, Bad ambience and hygiene not maintained were a total let down and a majority of the respondents said that they would immediately shift from their current salon/spa if encountered with the same. Though in todays age people have become increasingly net savvy yet experiential blogs do not influence their decision making and they would like to visit the salon/spa at least once before forming their judgement.
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On being questioned on what factors would lead to a negative experience a staggering 36% of the respondents said that all the factors i.e. Noise, temperature, overcrowded, Lack of relaxing atmosphere and cleanliness would contribute to the same. On being asked to rate the reasons for visiting a salon/spa both the genders rated Occasion as the most important reason for visiting a spa/salon followed by Makes you feel good.Women rated To get pampered as the third most important while Men rated helps reduce stress as important. On being asked to rate the factors taken into consideration while deciding a particular salon/spa the factor that is rated the highest by Men are Importance of Services offered followed by importance of ambience and value for money. Females on the other hand rated importance of brand name the highest. Importance of ambience, services offered and stylist relation was rated almost at par.

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Conclusion And Recommendation

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From the research conducted a clear trend that emerges is consumers highly depend on word of mouth publicity while selecting a salon/spa. Todays salon/spa owners should keep this trend in mind and provide the highest quality services for their price in the most efficient time frame to their existing clients as this will translate into getting them new clients too. Finding your niche means being something to someone and not everything to everybody. Spas must define their role within the marketplace; develop a clear identity; and fulfil a particular need. This means owning a space in their customers mind. This will help them differentiate from competitors and help attracting customers to their salon/spa. In todays competitive environment it is important for salon/spas to go one step ahead in terms of services and strive to develop a deep bonding with their clients . A salon/spa should ensure that their stylists dont just show the catalogue but Create a program (recommended by the company or your own experience) using a combination of products and services that are personalize to impress its customer and show them their enthusiasm. The best way to accommodate todays salon/spa consumers is to provide relevant marketing in their language and on their turf, offer websites that do the same, communicate when given the opportunity and personalize, provide a great experience, follow up in a method that the consumer chooses and monitor what the consumers are saying about the concerned salon/spa. On being informally interviewed most of the respondents answered that they would like a post salon/spa follow up to see if they were satisfied with the experience. Grooming is no longer the exclusive domain of women as the metro men have started taking utmost care of their grooming needs .Salon/spa chains should capitalize on this Trend and develop specialized products and services specially targeted towards men. An easy way for salon/day spa owners to market their businesses is by affiliating themselves with charities. Charitable giving is a win-win. It helps the salon/day spa develop a powerful network and helps others in the process. People like to associate themselves with businesses that support causes, which help disadvantaged people in a meaningful way. A salon/spa can successfully create the required Buzz by doing the following:
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Sending press releases to local media publicizing its donations of goods and services to the charity.

Including its charitable involvement in its marketing materials: fliers, brochures, signs, cards, etc.

Getting involved in high-profile causes that attract media attention. Getting its employees involved: wear pins, place pamphlets in its salon/spa outlets etc.

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Questionnaire
Name: Age : Gender: M /F Occupation:

Q1) Have you visited a Salon/Spa Yes No

Q2) If Yes which one: Q3) You were aware about the same from Through a Friend/Word of mouth Advertisements in newspapers/ Magazines/Radio Social Networking Sites (Face book, Twitter) Noticed while travelling Through promotional Material Q4) How Frequently do you visit your Salon/Spa Once a month Twice a month Once in two months Sometimes Rarely
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Q5) What are the services you opt for on visiting a salon/spa

Q6) Reasons for visiting a salon. (Rating on a 1 to 5 scale) It makes you feel good Helps you reduce stress Get oneself pampered To get some me-time On giving company to a Friend Occasions Q7) Rate the importance of the following factors considered While selecting a salon/spa (Rating on a 1-5 scale) Value for Money Cheaper than other Salons/Spas in the Vicinity Brand name Stylist Relation Services offered Ambience Customized Package Promotional Offer Friend/ family member Recommendation Location

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Q8) Your chances of shifting to a new brand if it offers better services would be: Extremely high High Moderate Low

Q9) Reasons for shifting to another brand would be: Parameters Change in location If my stylist quits Raise in price Poor quality of Service Staff not friendly Bad Ambience Hygiene not maintained yes no maybe

Q10) Do experiential blogs influence your decision to visit a particular salon/spa. Yes No Maybe

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Q11) Factors leading to a negative experience in a salon/spa Noise Temperature Over Crowded Lack of relaxing Atmosphere Cleanliness/ Hygiene Q12) Your monthly Family Income: 25,000-50,000 50,000-75000 75,000-1,00,000 Above 1,00,000

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Bibliography

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http://www.ehow.com/about_6546178_beauty-salon-industryanalysis.html#ixzz1PXXrvGS3

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