Description
It explains the Presentation on research done on developing a new product for hair care ma
A PROJECT ON NEW PRODUCT/SERVICE DEVELOPMENT FOR HAIR CARE
PROJECT TITLE
To evaluate the possibilities of a new service/product in the hair care category to be provided in salons, and test the same in the market
INDEX
•Mystery Shopping •Project Execution Plan
– Market Study and Need Gap Analysis – Market Segmentation – Idea Generation – Concept Testing
•Recommendations
MYSTERY SHOPPING
The basic purpose of the visit – – To observe the various services that were on offer across salons of different types – Observe the technical expertise of the stylists – Check the type of customers visiting a typical salon – Comparison of prices of the various services offered by each salon – Salon ambience – Range of products used – Level of customer interaction
TYPE A • 18 Degrees North • Enrich • Starz TYPE B • Din’s • Naushad’s • Oops TYPE C • Fresh-up Salon • Best Salon • Hair Care • U-Style
SALONS VISITED
Features Treatments Administered
Type A
- Follow a strict process
Type B
-Usually mix and match
Type C
-Usually mix and match products
using the products that have been prescribed in the brochure Customers
-Informed
products based on their availability, convenience and price
- Aspirants
based on their availability, convenience and price
- Non-fashion savvy
Knowledge of stylist
Based on the observations made, the salons could be classified into three different types
-Inquisitive -Quality conscious -Well-to-do
-Service Oriented
- Students - Result conscious - Upper Middle Class
- Business minded
- General public - No treatments done - Lower Middle Class/Poor
- Totally business minded
-Well-informed -Adept at using all techniques for new products also -Good communication skills -Well behaved -Interact well with the customers and suggest services best suited for the customers needs.
- Moderately informed -Do not have a knowledge of the latest products or techniques - Decent communication skills - Decently behaved - Do suggest services but are not particular about it. Suggest something only when asked.
Vision
Long term vision, trying to maintain a continuous relationship with the customer
Try to get the customer back for two or three more services of similar type
- Poor information levels -Usually follow a routing cut or coloring procedure -Not concerned about the new products in the market. Happy with using the age old products over and over - Do not possess good communication skills -Do everything as a routine. No special attention or care given to individual customer. - Do what the customer tells them to. Short sighted, mainly concerned about revenue from the current service
PROJECT EXECUTION PLAN
# Planned Action Technique Used Quantitative Details
1 Market Study .Need gap analysis
Factor Analysis
2 Market Segmentation .
3 Concept Development . 4 Concept Testing .
Quantitative
Qualitative
Cluster Analysis
In-Depth Interviews/ Focus Group Discussions In-Depth Interviews/ Focus Group Discussions
Qualitative
#1 Market Study & Need-Gap Analysis
Market study involves gaining a clear understanding of the hair care market in terms of –
Hair care regime
Home-made remedies/Consumer products /Competitor Offerings
Problems associated with hair
Unmet customer or stylist needs
Other expectations from different products (E.g. beauty)
Benefits associated with these remedies/products
QUANTITATIVE ANALYSIS
EXPLORATORY RESEARCH
Customers (25)
Stylists (25)
STRUCTURED DIRECT INTERVIEWS
Customers (30)
Stylists (15)
FACTOR ANALYSIS
PERCEPTUAL MAP
EXPLORATORY RESEARCH
Methodology
• An exploratory questionnaire was prepared for the customers and stylists • Customers were asked about their general hair care regime, products used and reasons for preference of the same • Customers were also asked about the features sought for in a hair care product and service • Stylists were asked about their preferences with regard to different hair products • Stylists were also enquired about the qualities they look for in a product for hair • Information about popular home remedies for hair care • Information about Key Ingredients sought for in any hair product
FINDINGS
The following were the characteristics that the customer looked for in a product, service and stylist
•Deliver on its promise •No hair damage •Retain/Enhance hair quality •Natural/Herbal •Pleasant aroma •Value for money •Good ambience •Value for money •Pamper the customer •Don’t push products for retail
PRODUCT
SERVICE
STYLIST
•Expert at his/her work •Aware of latest trends •Genuine care for customer’s hair •Advise on products to be used
• The expectations of the stylists’ from a product and its vendor are as below:
•Deliver on its promise •No hair damage •Natural/Herbal •Retain/Enhance hair quality •Trendy/Fashionable •Long lasting effects •Innovative products •Hair should look natural •Dries quickly •Good smell •Wide range •Discounts/Offers •Availability on demand •Additional services (Merchandising)
PRODUCT
BRAND
GENERAL OBSERVATIONS
•Customers are generally unsatisfied with their hair type •Leave-ins are believed to have better effect than rinseoffs •Herbal products do not harm hair quality •Word of mouth advertising works best for treatments •Few customers go for treatments when suggested by a doctor, and also the one suggested by him •Professional remedies do not give considerable benefits •Customers do not like to go to salons just for buying a product •Customers would try home-made remedies/consumer solutions for any hair problem as they are more economical •Customers like to try a new product in sachet form
GENERAL OBSERVATIONS
•Customers are generally unhappy with their hair type •Hair-fall is the biggest problem : Dove’s anti hair-fall therapy doing vey well among most women •Benefits from professional services/remedies are short lived •Eat healthy for healthy hair •Customers with oily skin cannot use hair oil(leads to pimples) •Customers go for treatments when suggested by a doctor, and also the one suggested by him •Professional remedies do not give considerable benefits, based on feedback from people
NEED GAPS IDENTIFIED
• Hair curling spray • Hair straightening spray • Hair cleansing serum • Leave-in conditioner • Wet-look oil(non-sticky) • Shampoo for cleansing(normal hair) • Head massage oil • Permanent hair coloring product • Better Straightening Product • Hard Mousse for styling • Product to give bounce to hair • Miniature treatment packs(most used treatments)
FACTOR ANALYSIS
Methodology
• Exploratory Research helped identify fifteen product and service features which determined customers’ choice • The features need to be clubbed based on their similarities into smaller groups to identify key factors • This would give a broad idea of what a customer expects from a hair product/service
• Respondents were asked to rate these attributes on a 5 point Likert scale
• Factor analysis was then run on the data, obtained from both stylists and customers , using SPSS
FACTOR ANALYSIS RESULTS The table shows four groups (columns) of factors
Groups 1 and 2 are clear cut factors with ROTATED COMPONENT MATRIX FOR ATTRIBUTES attributes mentioned in the following slide. Gentle on hair .009 -.071 .812 -.081 Product delivers its promise .099 Group 3onalso has.524 one dominant -.480 only .470 Product has good sensorials .450 .252 .009 .335 attribute,product range the product being gentle on that of .755 Brand has a wide .099 -.071 .039 hair,shows immediate effect .185 Product in it. .724 .127 .259 Product has natural ingredients not have any dominant -.058 .763 -.315 Group 4 does -.089 factors, Customers familiarity with .528 .348 as shown bythe values of the weights -.076 the .376 in ingredients in the product Frequency of new products .594 .407 -.207 -.216 column 4. launched Ambiance of salon .769 .009 -.245 Hence this factor may be discarded . -.018
Use of latest technology in the product .831 .063 .325 -.103
FACTORS AFFECTING CONSUMER AND STYLIST PREFERENCES
1.EXCELLENT BRAND
2.PRODUCT FEATURES/PERFORMANCE
Deliver on Promise
GENTLE
*Product being ‘GENTLE’ stands out as a factor by itself, as seen Natural Good previously. However, it has been combined into factor 2, which is /Herbal sensorials product features/performance for the sakeproduct of convenience.
Technology used Immediate effect
Product range
Product ingredients
Frequency of new products developed
Value for money
PERCEPTUAL MAP OF FACTORS WITH ATTRIBUTES
• The two factors identified are drawn as ‘x’ and ‘y’ axes • Various services/products are then mapped onto this x-y plane • Contributions to the x and y values are given by the weights of the attributes towards the factor • The Perceptual Map with the attributes as vectors is shown • The length of the vector(i.e. attribute) shows the magnitude while the direction is shown by the arrow (positive or negative relation) • The values are used to map various services/products onto this map
Perceptual map of services available
PRODUCT FEATURES/PERFORMANCE
SAMPLE PERCEPTAUL MAP POTENTIAL GAP FOR SERVICES
MASSAGES CUTS CUTS COLOR MASSAGES
BLOW-DRY COLOR TREATMENT EXCELLENT BRAND ?
KEY L'Oreal Professionnel Services Non-Branded/Consumer Brand Services
KEY INSIGHTS
• The need for a herbal/natural hair coloring product • Need for hair treatments with herbal/natural products (now present in the form of serie nature) • Need for innovative tools for a hair cut • Professionalize massages by providing them as a special/add-on service • A bio styling product which not only styles but also nourishes hair( a substitute for oil) • Herbal/Bio products are preferred by all consumers and stylists • 60% of the respondents felt that a good brand should have an extensive range of products • 50% of the consumers demand to know details of the products being used on their hair in salons
KEY INSIGHTS
• 25% of the consumers said that they would go for a hair treatment only when recommended by their doctor • 80% of the customers felt that the product should be herbal while 80% also felt that the product should be technologically advanced -- 60% felt both
Bio/Herbal
20% 60%
20% Technologically superior
#2. Market Segmentation
Demographics
•Age •Income •Employment status •Cultural Background •Personality •Attitudes •Interests •Lifestyle •Influencing factors •Level of involvement in a purchase decision •Frequency of purchase •Benefits sought
Psychographics Buying Behavior
QUANTITATIVE ANALYSIS
STRUCTURED DIRECT INTERVIEW
Customers (30)
Stylists (15)
CLUSTER ANALYSIS
METHODOLOGY
• Market Segmentation was done by Structured Direct Interviews • Customers and Stylists were asked to fill out questionnaires
• The questions aimed at knowing the different profile of customers
• Cluster analysis was carried out on the data obtained using SPSS • The results are as follows
SAMPLE DISTRIBUTION
MaleSEXFemale
Series1, Male, 10, 29% Series1, 30<, 8, 20%
<20
AGE 20-30
30<
Series1, <20, 7, 18%
Series1, Female, 25, 71% Series1, 20-30, 24, 62%
Series1, Stylists, 15, 33%
Customers Stylists CUSTOMERS/STYLISTS
Student OCCUPATION Officers/Executives - Junior
Officers/Executives Middle/Senior Entrepreneurs Series1, Series1, Others(Housewives) Entreprene Others(Ho urs , 4, usewives), 12% 5, 14%
Series1, Customer s, 30, 67%
Series1, Officers/Ex ecutives Middle/Se nior, 5, 14%
Series1, Student, 14, 40% Series1, Officers/Ex ecutives Junior, 7, 20%
Cluster Analysis Findings :
THREE DISTINCT SEGMENTS OF CUSTOMERS WERE IDENTIFIED 1 Strongly Agree 4 Disagree CLUSTERS
2 Agree 5 Strongly Disagree 3 Neither Agree nor Disagree
Final Cluster Centers C1 3 5 3 4
C2 3 4 3 3
C3 3 2 3 3
Like to indulge in Luxuries
Prefer FF/Ready to use products Follow latest fashion trends Party on weekends
TRADITIONAL : Cluster C1
Are facing increasing levels of stress
Try new products
MODERN : Cluster C2
2 5 5 1 5 5 5 2 3 2 3 3 3 2 2 3 3 2
2
3
3
2 3 2 2 2 2 4 2 3
Feel that scientific products better than natural Visit salons on special occasions only Think twice before buying
VALUE FOR MONEY BUYERS : Cluster C3
Have more self confidence than others
Believe that quality comes at a price Are brand conscious Prefer Imported products Family/friends affect purchase Make a fashion statement through hair
2
2
2
Characteristics of each Segment
TRADITIONAL MODERN VALUE FOR MONEY BUYERS
• Against ready-to-use products and fast food • Believe that stress levels are increasing • Strongly don’t believe in the fact that scientific products are better than natural products • Do not visit parlors only for special occasions. • Think twice before buying anything • Believe that they are more self confident than others. • Strongly disagree with the statement quality comes at a price • Not at all brand conscious. • Do not feel that imported products are superior in quality • Family/friends are important factors in purchase decisions
• Do not like using ready-touse products or fast food • Like to try new and different things • Believe that they are more self confident than others • Visit parlors once a month to groom themselves • Believe that quality comes at a price • Are brand conscious • Believe that they make a fashion statement through their hair • Do not think twice before buying a product • Are not influenced by family/friends in making a purchase decision
• Like to use ready to use products or fast food • Like to try new and different things • Visit parlors on special occasions only • Think twice before buying • Believe that they are more self confident than others • Believe that quality comes at a price • Are brand conscious • Don’t feel that imported products are superior in quality • Family/friends are important factors in purchase decisions
#3.Concept Development
Opportunity Identification Opportunity Analysis
• Generate ideas for new products/service to cater to gaps identified in the market
• Market viability • Target market segment
Product/Service Specification
• Features of product/service • Benefits to be associated with the product/service
QUALITATIVE ANALYSIS
Focused Group Discussions
Depth Interviews
Customers (5)
Stylists (5)
Customers (10)
Stylists (10)
Creative Thinking Session
• The session consisted of people from different domains i.e. Marketing, Sales and Stylists • Different Creative techniques were used to get innovative ideas from the participants, namely – Problem Reversal – What-If Compass – Lateral Thinking – In the Realm of Senses
IDEAS OBTAINED
• New Product Ideas for Hair Care – – – – – – Product for increasing length of the hair Hair removal product(Temporary/Permanent) Product to make dreads Hair wash serum (to clean hair without water) Product that changes texture instantly Hair product that stops hair from growing beyond a certain length – Product that dries hair immediately(a substitute for blowdry)
IDEAS OBTAINED
• New Hair Care Services
– Give complimentary gifts along with the service/product depending on the product/service – Soft music during the service – Cakes/Drinks of ingredients used in the product being used – Free gift hampers (like juice vouchers, music cd’s) – Videos of the ingredients and the advantages of the product being used – Video of a satisfied customer talking about a product benefit
FINAL LIST OF FEASIBLE IDEAS OBTAINED
New Product Ideas
• • • • • • Product for increasing length of the hair Hair wash serum (to clean hair without water) Product that changes hair texture instantly Product that dries hair immediately(a substitute for blow-dry) Head massage oil Wet-look styling oil(non-sticky)
FINAL LIST OF FEASIBLE IDEAS OBTAINED
New Service Ideas
• Head massages as add-on service with all other hair care services
FINAL LIST OF FEASIBLE IDEAS OBTAINED
Service Add-On’s
• Complimentary gifts along with the service/product depending on the product/service • An audio of the service details during the service • Cakes/Drinks of ingredients used in the product being used • Free gift hampers (like juice vouchers, music cd’s) • Videos of the ingredients and the advantages of the product being used • Video of a satisfied customer talking about a product/service benefit
POPULAR HAIR CARE INGREDIENTS
• • • • • • • • • • • • • • Coconut: conditioning, retards thinning and premature graying Almond: Nourishment for hair and scalp, increases shine Sesame: Nourishment for hair, natural shine and smoothness Olive: Nourishment Brahmi: Promotes thickness and body Amalaki: Cools scalp, wards off premature thinning and graying Bhringraj: Nourishment Neem: Purifies and cleanses the hair Lavender: Stimulates hair growth, replenishes hair and scalp Hibiscus: Cooling, maintains color and vitality Jasmine: Alleviates stress Rosemary: Stimulates hair follicle and promotes growth Ginger Root: Dandruff control Beer: Conditioning
POPULAR HAIR CARE INGREDIENTS
• • • • • • • • • • • • • Yogurt: Conditioning Beet: Cleansing, Nourishing and Detoxifying Lemon: Shine and bounce Eucalyptus: Stimulates blood flow to hair, helps revitalize dull or shedding hair Honey: hair growth Avocado: Conditioning, smoothness, moisturizing Grape seed oil : Conditioning (Matrix) Jojoba: Conditioning (Wella) Chamomile: Shine Soybean: Stop hair loss, promotes hair growth Nettle: Hair loss remedy, hair growth Geranium: For dry or coarse hair Cornstarch: Eliminates oil and dirt slicks (alternative for shampoo. Do not need to wash)
POPULAR HAIR CARE INGREDIENTS
• • • • • • • • • • • Aloe vera : Prevents hair loss and promotes hair growth Frankincense: For chemically damaged hair Palmorarosa: For dry or coarse hair Sage: Prevents graying Cedar wood: Dandruff, conditioning Melissa: Hair growth Eucalyptus : Dandruff Cranberry: For fine normal hair (Schwarzkopf) Tapioca : Density (Schwarzkopf) Beeswax : Natural shine(Schwarzkopf) Calendula : Anti-inflammatory and protects against irritation (Schwarzkopf) • Lycopene : Prevents premature hair aging (Matrix) • Camelina : Moisturiser (Matrix) • Rice protein : Help repair damage, and revive elasticity which leaves hair resilient
#4.Concept Testing
Concept testing would involve testing for:
Interest
Credibility
Uniqueness
Relevance
Purchase Intentions
QUALITATIVE ANALYSIS
Focused Group Discussions
Depth Interviews
Customers (5) Stylists (5)
Customers (10) Stylists (10)
THANK YOU
doc_826415015.pptx
It explains the Presentation on research done on developing a new product for hair care ma
A PROJECT ON NEW PRODUCT/SERVICE DEVELOPMENT FOR HAIR CARE
PROJECT TITLE
To evaluate the possibilities of a new service/product in the hair care category to be provided in salons, and test the same in the market
INDEX
•Mystery Shopping •Project Execution Plan
– Market Study and Need Gap Analysis – Market Segmentation – Idea Generation – Concept Testing
•Recommendations
MYSTERY SHOPPING
The basic purpose of the visit – – To observe the various services that were on offer across salons of different types – Observe the technical expertise of the stylists – Check the type of customers visiting a typical salon – Comparison of prices of the various services offered by each salon – Salon ambience – Range of products used – Level of customer interaction
TYPE A • 18 Degrees North • Enrich • Starz TYPE B • Din’s • Naushad’s • Oops TYPE C • Fresh-up Salon • Best Salon • Hair Care • U-Style
SALONS VISITED
Features Treatments Administered
Type A
- Follow a strict process
Type B
-Usually mix and match
Type C
-Usually mix and match products
using the products that have been prescribed in the brochure Customers
-Informed
products based on their availability, convenience and price
- Aspirants
based on their availability, convenience and price
- Non-fashion savvy
Knowledge of stylist
Based on the observations made, the salons could be classified into three different types
-Inquisitive -Quality conscious -Well-to-do
-Service Oriented
- Students - Result conscious - Upper Middle Class
- Business minded
- General public - No treatments done - Lower Middle Class/Poor
- Totally business minded
-Well-informed -Adept at using all techniques for new products also -Good communication skills -Well behaved -Interact well with the customers and suggest services best suited for the customers needs.
- Moderately informed -Do not have a knowledge of the latest products or techniques - Decent communication skills - Decently behaved - Do suggest services but are not particular about it. Suggest something only when asked.
Vision
Long term vision, trying to maintain a continuous relationship with the customer
Try to get the customer back for two or three more services of similar type
- Poor information levels -Usually follow a routing cut or coloring procedure -Not concerned about the new products in the market. Happy with using the age old products over and over - Do not possess good communication skills -Do everything as a routine. No special attention or care given to individual customer. - Do what the customer tells them to. Short sighted, mainly concerned about revenue from the current service
PROJECT EXECUTION PLAN
# Planned Action Technique Used Quantitative Details
1 Market Study .Need gap analysis
Factor Analysis
2 Market Segmentation .
3 Concept Development . 4 Concept Testing .
Quantitative
Qualitative
Cluster Analysis
In-Depth Interviews/ Focus Group Discussions In-Depth Interviews/ Focus Group Discussions
Qualitative
#1 Market Study & Need-Gap Analysis
Market study involves gaining a clear understanding of the hair care market in terms of –
Hair care regime
Home-made remedies/Consumer products /Competitor Offerings
Problems associated with hair
Unmet customer or stylist needs
Other expectations from different products (E.g. beauty)
Benefits associated with these remedies/products
QUANTITATIVE ANALYSIS
EXPLORATORY RESEARCH
Customers (25)
Stylists (25)
STRUCTURED DIRECT INTERVIEWS
Customers (30)
Stylists (15)
FACTOR ANALYSIS
PERCEPTUAL MAP
EXPLORATORY RESEARCH
Methodology
• An exploratory questionnaire was prepared for the customers and stylists • Customers were asked about their general hair care regime, products used and reasons for preference of the same • Customers were also asked about the features sought for in a hair care product and service • Stylists were asked about their preferences with regard to different hair products • Stylists were also enquired about the qualities they look for in a product for hair • Information about popular home remedies for hair care • Information about Key Ingredients sought for in any hair product
FINDINGS
The following were the characteristics that the customer looked for in a product, service and stylist
•Deliver on its promise •No hair damage •Retain/Enhance hair quality •Natural/Herbal •Pleasant aroma •Value for money •Good ambience •Value for money •Pamper the customer •Don’t push products for retail
PRODUCT
SERVICE
STYLIST
•Expert at his/her work •Aware of latest trends •Genuine care for customer’s hair •Advise on products to be used
• The expectations of the stylists’ from a product and its vendor are as below:
•Deliver on its promise •No hair damage •Natural/Herbal •Retain/Enhance hair quality •Trendy/Fashionable •Long lasting effects •Innovative products •Hair should look natural •Dries quickly •Good smell •Wide range •Discounts/Offers •Availability on demand •Additional services (Merchandising)
PRODUCT
BRAND
GENERAL OBSERVATIONS
•Customers are generally unsatisfied with their hair type •Leave-ins are believed to have better effect than rinseoffs •Herbal products do not harm hair quality •Word of mouth advertising works best for treatments •Few customers go for treatments when suggested by a doctor, and also the one suggested by him •Professional remedies do not give considerable benefits •Customers do not like to go to salons just for buying a product •Customers would try home-made remedies/consumer solutions for any hair problem as they are more economical •Customers like to try a new product in sachet form
GENERAL OBSERVATIONS
•Customers are generally unhappy with their hair type •Hair-fall is the biggest problem : Dove’s anti hair-fall therapy doing vey well among most women •Benefits from professional services/remedies are short lived •Eat healthy for healthy hair •Customers with oily skin cannot use hair oil(leads to pimples) •Customers go for treatments when suggested by a doctor, and also the one suggested by him •Professional remedies do not give considerable benefits, based on feedback from people
NEED GAPS IDENTIFIED
• Hair curling spray • Hair straightening spray • Hair cleansing serum • Leave-in conditioner • Wet-look oil(non-sticky) • Shampoo for cleansing(normal hair) • Head massage oil • Permanent hair coloring product • Better Straightening Product • Hard Mousse for styling • Product to give bounce to hair • Miniature treatment packs(most used treatments)
FACTOR ANALYSIS
Methodology
• Exploratory Research helped identify fifteen product and service features which determined customers’ choice • The features need to be clubbed based on their similarities into smaller groups to identify key factors • This would give a broad idea of what a customer expects from a hair product/service
• Respondents were asked to rate these attributes on a 5 point Likert scale
• Factor analysis was then run on the data, obtained from both stylists and customers , using SPSS
FACTOR ANALYSIS RESULTS The table shows four groups (columns) of factors
Groups 1 and 2 are clear cut factors with ROTATED COMPONENT MATRIX FOR ATTRIBUTES attributes mentioned in the following slide. Gentle on hair .009 -.071 .812 -.081 Product delivers its promise .099 Group 3onalso has.524 one dominant -.480 only .470 Product has good sensorials .450 .252 .009 .335 attribute,product range the product being gentle on that of .755 Brand has a wide .099 -.071 .039 hair,shows immediate effect .185 Product in it. .724 .127 .259 Product has natural ingredients not have any dominant -.058 .763 -.315 Group 4 does -.089 factors, Customers familiarity with .528 .348 as shown bythe values of the weights -.076 the .376 in ingredients in the product Frequency of new products .594 .407 -.207 -.216 column 4. launched Ambiance of salon .769 .009 -.245 Hence this factor may be discarded . -.018
Use of latest technology in the product .831 .063 .325 -.103
FACTORS AFFECTING CONSUMER AND STYLIST PREFERENCES
1.EXCELLENT BRAND
2.PRODUCT FEATURES/PERFORMANCE
Deliver on Promise
GENTLE
*Product being ‘GENTLE’ stands out as a factor by itself, as seen Natural Good previously. However, it has been combined into factor 2, which is /Herbal sensorials product features/performance for the sakeproduct of convenience.
Technology used Immediate effect
Product range
Product ingredients
Frequency of new products developed
Value for money
PERCEPTUAL MAP OF FACTORS WITH ATTRIBUTES
• The two factors identified are drawn as ‘x’ and ‘y’ axes • Various services/products are then mapped onto this x-y plane • Contributions to the x and y values are given by the weights of the attributes towards the factor • The Perceptual Map with the attributes as vectors is shown • The length of the vector(i.e. attribute) shows the magnitude while the direction is shown by the arrow (positive or negative relation) • The values are used to map various services/products onto this map
Perceptual map of services available
PRODUCT FEATURES/PERFORMANCE
SAMPLE PERCEPTAUL MAP POTENTIAL GAP FOR SERVICES
MASSAGES CUTS CUTS COLOR MASSAGES
BLOW-DRY COLOR TREATMENT EXCELLENT BRAND ?
KEY L'Oreal Professionnel Services Non-Branded/Consumer Brand Services
KEY INSIGHTS
• The need for a herbal/natural hair coloring product • Need for hair treatments with herbal/natural products (now present in the form of serie nature) • Need for innovative tools for a hair cut • Professionalize massages by providing them as a special/add-on service • A bio styling product which not only styles but also nourishes hair( a substitute for oil) • Herbal/Bio products are preferred by all consumers and stylists • 60% of the respondents felt that a good brand should have an extensive range of products • 50% of the consumers demand to know details of the products being used on their hair in salons
KEY INSIGHTS
• 25% of the consumers said that they would go for a hair treatment only when recommended by their doctor • 80% of the customers felt that the product should be herbal while 80% also felt that the product should be technologically advanced -- 60% felt both
Bio/Herbal
20% 60%
20% Technologically superior
#2. Market Segmentation
Demographics
•Age •Income •Employment status •Cultural Background •Personality •Attitudes •Interests •Lifestyle •Influencing factors •Level of involvement in a purchase decision •Frequency of purchase •Benefits sought
Psychographics Buying Behavior
QUANTITATIVE ANALYSIS
STRUCTURED DIRECT INTERVIEW
Customers (30)
Stylists (15)
CLUSTER ANALYSIS
METHODOLOGY
• Market Segmentation was done by Structured Direct Interviews • Customers and Stylists were asked to fill out questionnaires
• The questions aimed at knowing the different profile of customers
• Cluster analysis was carried out on the data obtained using SPSS • The results are as follows
SAMPLE DISTRIBUTION
MaleSEXFemale
Series1, Male, 10, 29% Series1, 30<, 8, 20%
<20
AGE 20-30
30<
Series1, <20, 7, 18%
Series1, Female, 25, 71% Series1, 20-30, 24, 62%
Series1, Stylists, 15, 33%
Customers Stylists CUSTOMERS/STYLISTS
Student OCCUPATION Officers/Executives - Junior
Officers/Executives Middle/Senior Entrepreneurs Series1, Series1, Others(Housewives) Entreprene Others(Ho urs , 4, usewives), 12% 5, 14%
Series1, Customer s, 30, 67%
Series1, Officers/Ex ecutives Middle/Se nior, 5, 14%
Series1, Student, 14, 40% Series1, Officers/Ex ecutives Junior, 7, 20%
Cluster Analysis Findings :
THREE DISTINCT SEGMENTS OF CUSTOMERS WERE IDENTIFIED 1 Strongly Agree 4 Disagree CLUSTERS
2 Agree 5 Strongly Disagree 3 Neither Agree nor Disagree
Final Cluster Centers C1 3 5 3 4
C2 3 4 3 3
C3 3 2 3 3
Like to indulge in Luxuries
Prefer FF/Ready to use products Follow latest fashion trends Party on weekends
TRADITIONAL : Cluster C1
Are facing increasing levels of stress
Try new products
MODERN : Cluster C2
2 5 5 1 5 5 5 2 3 2 3 3 3 2 2 3 3 2
2
3
3
2 3 2 2 2 2 4 2 3
Feel that scientific products better than natural Visit salons on special occasions only Think twice before buying
VALUE FOR MONEY BUYERS : Cluster C3
Have more self confidence than others
Believe that quality comes at a price Are brand conscious Prefer Imported products Family/friends affect purchase Make a fashion statement through hair
2
2
2
Characteristics of each Segment
TRADITIONAL MODERN VALUE FOR MONEY BUYERS
• Against ready-to-use products and fast food • Believe that stress levels are increasing • Strongly don’t believe in the fact that scientific products are better than natural products • Do not visit parlors only for special occasions. • Think twice before buying anything • Believe that they are more self confident than others. • Strongly disagree with the statement quality comes at a price • Not at all brand conscious. • Do not feel that imported products are superior in quality • Family/friends are important factors in purchase decisions
• Do not like using ready-touse products or fast food • Like to try new and different things • Believe that they are more self confident than others • Visit parlors once a month to groom themselves • Believe that quality comes at a price • Are brand conscious • Believe that they make a fashion statement through their hair • Do not think twice before buying a product • Are not influenced by family/friends in making a purchase decision
• Like to use ready to use products or fast food • Like to try new and different things • Visit parlors on special occasions only • Think twice before buying • Believe that they are more self confident than others • Believe that quality comes at a price • Are brand conscious • Don’t feel that imported products are superior in quality • Family/friends are important factors in purchase decisions
#3.Concept Development
Opportunity Identification Opportunity Analysis
• Generate ideas for new products/service to cater to gaps identified in the market
• Market viability • Target market segment
Product/Service Specification
• Features of product/service • Benefits to be associated with the product/service
QUALITATIVE ANALYSIS
Focused Group Discussions
Depth Interviews
Customers (5)
Stylists (5)
Customers (10)
Stylists (10)
Creative Thinking Session
• The session consisted of people from different domains i.e. Marketing, Sales and Stylists • Different Creative techniques were used to get innovative ideas from the participants, namely – Problem Reversal – What-If Compass – Lateral Thinking – In the Realm of Senses
IDEAS OBTAINED
• New Product Ideas for Hair Care – – – – – – Product for increasing length of the hair Hair removal product(Temporary/Permanent) Product to make dreads Hair wash serum (to clean hair without water) Product that changes texture instantly Hair product that stops hair from growing beyond a certain length – Product that dries hair immediately(a substitute for blowdry)
IDEAS OBTAINED
• New Hair Care Services
– Give complimentary gifts along with the service/product depending on the product/service – Soft music during the service – Cakes/Drinks of ingredients used in the product being used – Free gift hampers (like juice vouchers, music cd’s) – Videos of the ingredients and the advantages of the product being used – Video of a satisfied customer talking about a product benefit
FINAL LIST OF FEASIBLE IDEAS OBTAINED
New Product Ideas
• • • • • • Product for increasing length of the hair Hair wash serum (to clean hair without water) Product that changes hair texture instantly Product that dries hair immediately(a substitute for blow-dry) Head massage oil Wet-look styling oil(non-sticky)
FINAL LIST OF FEASIBLE IDEAS OBTAINED
New Service Ideas
• Head massages as add-on service with all other hair care services
FINAL LIST OF FEASIBLE IDEAS OBTAINED
Service Add-On’s
• Complimentary gifts along with the service/product depending on the product/service • An audio of the service details during the service • Cakes/Drinks of ingredients used in the product being used • Free gift hampers (like juice vouchers, music cd’s) • Videos of the ingredients and the advantages of the product being used • Video of a satisfied customer talking about a product/service benefit
POPULAR HAIR CARE INGREDIENTS
• • • • • • • • • • • • • • Coconut: conditioning, retards thinning and premature graying Almond: Nourishment for hair and scalp, increases shine Sesame: Nourishment for hair, natural shine and smoothness Olive: Nourishment Brahmi: Promotes thickness and body Amalaki: Cools scalp, wards off premature thinning and graying Bhringraj: Nourishment Neem: Purifies and cleanses the hair Lavender: Stimulates hair growth, replenishes hair and scalp Hibiscus: Cooling, maintains color and vitality Jasmine: Alleviates stress Rosemary: Stimulates hair follicle and promotes growth Ginger Root: Dandruff control Beer: Conditioning
POPULAR HAIR CARE INGREDIENTS
• • • • • • • • • • • • • Yogurt: Conditioning Beet: Cleansing, Nourishing and Detoxifying Lemon: Shine and bounce Eucalyptus: Stimulates blood flow to hair, helps revitalize dull or shedding hair Honey: hair growth Avocado: Conditioning, smoothness, moisturizing Grape seed oil : Conditioning (Matrix) Jojoba: Conditioning (Wella) Chamomile: Shine Soybean: Stop hair loss, promotes hair growth Nettle: Hair loss remedy, hair growth Geranium: For dry or coarse hair Cornstarch: Eliminates oil and dirt slicks (alternative for shampoo. Do not need to wash)
POPULAR HAIR CARE INGREDIENTS
• • • • • • • • • • • Aloe vera : Prevents hair loss and promotes hair growth Frankincense: For chemically damaged hair Palmorarosa: For dry or coarse hair Sage: Prevents graying Cedar wood: Dandruff, conditioning Melissa: Hair growth Eucalyptus : Dandruff Cranberry: For fine normal hair (Schwarzkopf) Tapioca : Density (Schwarzkopf) Beeswax : Natural shine(Schwarzkopf) Calendula : Anti-inflammatory and protects against irritation (Schwarzkopf) • Lycopene : Prevents premature hair aging (Matrix) • Camelina : Moisturiser (Matrix) • Rice protein : Help repair damage, and revive elasticity which leaves hair resilient
#4.Concept Testing
Concept testing would involve testing for:
Interest
Credibility
Uniqueness
Relevance
Purchase Intentions
QUALITATIVE ANALYSIS
Focused Group Discussions
Depth Interviews
Customers (5) Stylists (5)
Customers (10) Stylists (10)
THANK YOU
doc_826415015.pptx