Comprehensive Analysis of Hair Salon Business in Australia Report

This report provides a comprehensive analysis of the hair salon business in Australia, focusing on the Strathpine Queensland location and its surrounding suburbs. It examines the organization's structure, identifies key problems such as lack of brand equity, high costs, and ineffective advertising, and suggests solutions. The report analyzes customer feedback, emphasizing the importance of social media and website presence. It also explores the marketing mix strategy, including people, place, price, and promotion, and discusses market changes, external factors, and industry trends, including the rising demand for organic products. Furthermore, the report reviews the competitive landscape and offers recommendations, emphasizing the potential for income generation and the importance of qualitative features and promotional campaigns to meet consumer demands.

Running head: HAIR SALON ANALYSIS IN AUSTRALIA
Hair salon analysis in Australia
Name of the Student
Name of the University
Author’s Note

1HAIR SALON ANALYSIS IN AUSTRALIA
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Recommendation.............................................................................................................................6
Conclusion.......................................................................................................................................7

2HAIR SALON ANALYSIS IN AUSTRALIA
Introduction
The company is located in the Strathpine Queensland. The salon provide services to the
local citizens of the country including the region of suburbs bald hills, warner, Joyner, Bracken
Ridge and Petrie.
Discussion
Organization structure
The saloon flows a bottom down narrow method, the organization hierarchy is narrow at the top.
Excellent retail space designed in accordance to a shopping centre design. Wide range of
services are being offered at a competitive price segment (MPITI et al., 2016).
Problem of the salon
Cause
 It lacks the brand equity in terms of its competitors.
 Huge cost is associated and the business is very less in comparison.
 Advertising campaign is not much effective.
 Moreover, the price segment is too high as a start-up company (Johnson-Hilliard et al.,
2015).
Effect
 Less customers are attracted towards the business.
 Cost need to lower to bring in the pull concept of marketing. Later, dynamic pricing strategy
can be implemented.

3HAIR SALON ANALYSIS IN AUSTRALIA
 The salon should focus of developing brand name and image (Lovelock et al., 2015).
Customer feedback
Although the number of customers respects for the creativity in work. The number of
professional are given credit for the professional artist (Johnson-Hilliard et al., 2015).
Areas of management in industry
Use of social-media platform
A picture more than a thousand words. Demos and practical evidence should be provided by
means of graphical images to represent the styles and work. Moreover, communication can be
imparted by implementing social-media communication bots.
Use of internet platform
The official website should be given much of importance the categories of product ranges,
available tools and the method of carrying out a haircut should me stated within the website. So
that besides having a gallery the consumer market can have a detailed observation of the
operation process (CAO et al., 2018).
Think beyond the ideas
Need to carry out hair-cut events on an frequent basis. Free trails and recommendation
concerning the kind of hair and head structure should be imparted.
Marketing Mix strategy
People

4HAIR SALON ANALYSIS IN AUSTRALIA
The customers should be repeated by at least of 60%.
Gender basis attention and style segment should be introduced.
Place
The area of operation are to be given more of importance to bring about innovation in terms of
look.
The ambience should be very unique in terms of the rival firms
Price
There should be an introduction of cut-off in price segment.
Investment in products should be made to obtain a qualitative products segment.
Promotion
The advertising campaign are to be given much of attention to capture the interest as the
consumer market do not find much interest in the advertising campaign conducted.
Special discounts and free of trails should be given to attract (Mpiti et al., 2016).
Market changes
The consumer market are much aware of the rival products and services and demand for a
change in trends. Rising hair consciousness and the growing population has shift towards the
desire for saloon. The change in income factor of the household sector of the economy should be
given priority and new price segment of the cut should be given priority. An increase trend of the
demand in male segment as well as in female for hair-cut has brought about change within the

5HAIR SALON ANALYSIS IN AUSTRALIA
market. The use of special equipment and facilities to be undertaken because of the demand of
customers. The consumer market of Australia rely on tradition equipment.
Review of the external factors
The industry is expected to rise at 0.8% over the coming five years and by 2018-2019 it will
increase to $6.5 billion of rupees. This brings in the expected growth of about 0.2% in the current
prevailing year. The hair Saloon industry within the region of Australia is at maturity phase. It is
an estimation made that by the year 2023-2024 that the industry will bring about a rise of 2.7%
of GDP (ibisworld, 2019).
Industry trends, practice and market changes
In Australia saloon industry both men and women tends to make money from the beauty
segment. It is assumed that why individual having beautiful personality makes money, it is
considered as reward to them. Beauty brings in financial reward. Whereas, in Australia the trend
for natural and organic product is at a high demand. According to Australian organic market
report, it states that within five years of time period between 2009 – 2014, Aussie consumer’s
requirements such as organic cosmetics, day to day personal care products, and essential oil rose
by an amount of 18 percent within a year. The demand for Australian people organic hair
products is at a high peek and is increasing at a high peek. Hairdressers need to implement a
hostile approach for their services. Hairdressers must research and implement a purely organic
products extracted from botanical ingredients to give service to the ever increasing demand of
the people of the Aussie consumers (Imoro et al., 2014).
Competition among the hair saloons

6HAIR SALON ANALYSIS IN AUSTRALIA
Figure: competition among the hair saloon that will be held
Source: (Brisbanehairandbeautyexpo.com.au, 2019)

7HAIR SALON ANALYSIS IN AUSTRALIA
Recommendation
Taking into consideration the above mentioned facts the market of Australia has the
potential to generate income for the saloon business industry. However, special focus is to be
given on the equipment and the promotional campaigns of the company. Much of the analysis
states that consumer market of Australia demands a qualitative feature within a mediocre price
segment.
Conclusion
The much of the business prospects can be generated within the market of Australia. If given
focus on the qualitative features of the salon industry. As the market is favourable and at a
maturity phase still there exists a lot of business opportunity. Fulfilling the consumer needs
would be the strategic move for the business firm.

8HAIR SALON ANALYSIS IN AUSTRALIA
References
Brisbanehairandbeautyexpo.com.au. (2019). Hair Competitions - Brisbane Hair & Beauty. Retrieved from
https://www.brisbanehairandbeautyexpo.com.au/hair-competitions/
CAO, Q.L., 2018. Research on Construction of Intelligent Public Service Platform of Modern
Equipment Manufacturing Industry. DEStech Transactions on Engineering and
Technology Research, (ecar).
Huang, Y.T. and Rundle-Thiele, S., 2014. The moderating effect of cultural congruence on the
internal marketing practice and employee satisfaction relationship: An empirical
examination of Australian and Taiwanese born tourism employees. Tourism
Management, 42, pp.196-206.
ibisworld. (2019). Hairdressing and Beauty Services – Australia Industry Report | IBISWorld.
Retrieved from https://www.ibisworld.com.au/industry-trends/market-research-reports/
personal-services/hairdressing-beauty-services.html
Imoro, M., 2014. Equipment Management And Use In Salons In Ghana: A Test Case Of Safety
In Quality Services Delivery Of The Beauty Service Industry In The Upper West
Region. International Journal of Scientific & Technology Research, 3(10), pp.166-177.
Johnson-Hilliard, M., 2015. Small Business Sustainability in the Salon Industry.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Mpiti, N. and Rambe, P., 2016. The influence of public finance on the performance of SMMEs
in the Free State: a case of afro hair salons in Mangaung Metropolitan Municipality.

9HAIR SALON ANALYSIS IN AUSTRALIA
In Proceedings of the 28th Annual Conference of the Southern African Institute of
Management Scientists, University of Pretoria, Pretoria (pp. 436-449).
MPITI, N., 2016. The influence of private and public finance on the performance of SMMEs in
the Free State: A case of Afro hair salons in Mangaung Metropolitan Area (Doctoral
dissertation, Bloemfontein: Central University of Technology, Free State).