Naturally Curly.com

Phase II Marketing Research:

Blake Bowen

Erin Scott

Lindy Johnson

Jesse Walsh

Heather Willis1

Outline The Hair Care Industry & Competition SWOT Analysis Objectives of Market Research Research Plan & Methods Qualitative Results & Analysis Quantitative Results & Analysis Suggestions & Recommendations Conclusion

2

Hair Care Industry 80,000 hair care salons 75,000 beauty salons, 5,000

barber shops Combined annual sales of $16 billion A large salon has annual revenue

of about $300,000 and 10 employees * www.marketresearch.com

3

Hair Care Industry The industry is highly

labor-intensive, average annual revenue per employee is $35,000

Hair care products make up 5-40% of sales revenue.

Gross margins are higher for hair care products than for services

Business and Company Resource Center

4

Competition www.behindthechair.com

target market is all hair types offer products, forums, and pictures, salon locations

www.curl.biz target market is multi-ethnic women offer curls products, pictures, forums, and salon

locations

5

Strengths Only Website Dedicated to Curly's Specific Demographic – Easier to Target Users Dedicated Employees – Want to See Growth Engaged, Loyal Community

6,000 Users per day Blog Posts Purchase Products

6

Weaknesses Website is Busy, Hard to Navigate Difficult for users to understand company lingo and

abbreviations if not highly engaged Specific Demographic - limited growth

7

Opportunities Google: Curly Hair Increase advertising Embrace curls – empowerment Promotion on TV, magazines Internet still growing Expand the brand

-Website for stylist community

-Other countries

8

Threats Potential for other online curly communities to

be developed Behindthechair.com & Curls.biz – Competition Is there a need for curly stylist website? Inconvenience of Online Shopping

9

Objectives of Study Gain more understanding about decision makers

within the salons with regards to ad spending Understand what tools stylist use to educate

themselves on the world of curls Uncover additional tools they might want and how

they would prefer to access them To see if there is a market for an online stylist

community like naturally curly

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What is an Online Stylist Community?

A online community is a place where ideas are exchanged and relationships are built between users Examples:

Naturally Curly

Do It Yourself

Total Beauty

Beauty Blog Network

An online stylist community is geared specifically for the use of hair stylists

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Potential Benefits Untapped Niche Market Entrepreneurship Venture New Profit New Users

12

Research Design Begin with Qualitative Research

Use Findings to build Quantitative Survey

After Qualitative Survey Quantitative Online Survey

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Qualitative Research 1st Step: Qualitative Research

Interview stylist at 5 local upscale salons in Birmingham

- Blue Velvet

- Hair Reflections

- Salon 2412

- Hair Group

- Sanctuary

Feedback to be implemented into Quantitative research

Attempt to gather further/ fresh insight

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Qualitative Research Conducted informational interviews with

stylists with in the Birmingham community

Wanted to gain insightful information about the stylist community, their perspective on curly hair, as well as their advertising and marketing tendencies

We also wanted to gather more information in order to produce a more thorough survey for the quantitative data collection.

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Qualitative Interviews Prepared a list of questions for each of us to follow to

be able to compare and analyze the data Went to 3 salons in Birmingham

Sanctuary Hair Group Salon 2412

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Interview Responses(Key information that we learned)

People who cut curly hair, tend to have curly hair themselves, because they understand how it moves and works

An apprenticeship with a well known salon or hairstylist tends to be better than simply going to cosmetology because of the hands on experience

17

Interview Responses Cont…

Where stylists gain information Classes Seminars Salon Training Trade Shows (this is the last venue of interest due to

lack hands on training)

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Interview Responses Interested in gaining more cutting education

that included curly hair, but not just pertaining to curly hair

Interested in an online stylists community, but not necessarily one specific to curly hair

Key Aspects:Blogging area Q&A from a known hairstylists Calendar for upcoming classes and

seminars (even by region)

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Interview Responses(Advertising and Promotion)

All major decisions made by owner or business manager

Salons Promote in: Own websites Magazines (Bham Daily, Bham Mag, Black and

White) Direct Marketing through Direct Mail (from own

email database and new residents in the local area)

Word of mouth Samford University

20

What We Gained We were able to gauge initial responses to the new

concepts we were testing We were able to format a new survey including the

ordering in which the questions would be asked

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Quantitative Research Before launching we conducted several pretests Created an gmail account to send out the surveys:

StylistSurvey@gmail.com Naturally Curly offered an incentive: Stylist Q & A worth

$750 Send emails to Naturally Curly Email Database for Salons:

400-500 Salons in Database on November 7th We built the online survey & analyzed the results with

SPSS- Statistical Software

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Non-Response Error We experienced a very low response rate : 9.7%

Also almost ¼ of the emails were returned due to invalid email addresses

Due to non-response error we need to find other means of collecting data

23

Collecting Additional Data We contacted stylists from each of our hometowns to

send out the survey to their colleagues Orlando, FL Hendersonville, TN Atlanta, GA

Face-to-Face Interviews Looked up stylists email addresses online using

online stylist directories

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Face-to-Face Interviews Stylist will not talk while cutting hair Salons we visited:

In Vestavia: N’Vogue, Hairspray, Headstart, and Hair Impressions In Homewood: Belk Salon at Brookwood Mall, SalonU, Affects

Salon, Salon on Cresent, and Super Cuts In Hoover: Headstart, Mastercuts, Trade Secret, Xcell Paul Mitchell

Training School Salon, Team Image, and Belk Salon at Riverchase Galleria Mall

In Mountain Brook: Harpers Hair Inc. and Blue Velvet In English Village & Crestline: A&W Salon, Aveda Salon, and Angel

Hair

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Survey Method

Online

Interview

Respondents

26

Gender

Respondents

27

Age

28

* 4 out of the 79 sample did not respond.

1-7 yrs 8-14 yrs 15-21 yrs 22-28 yrs 29-35 yrs0

5

10

15

20

25

30

35

40

45

1-7 yrs; Series1; 40

8-14 yrs; Series1; 1115-21 yrs; Series1; 922-28 yrs; Series1; 10

29-35 yrs; Series1; 5

How many years have you been a hairstylist?

Num

ber

of R

espo

nden

ts

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Zip City & State Frequency Market Segment35216 Vestavia, AL 23 Boomtown Singles: younger, single,

working class, amid stores, apartments, services

35244 Hoover, AL 23 Up-and-comers : young, mid-scale singles, recent college graduates who enjoy nightlife.

90232 Culver City, CA 1 Urban Achievers : young mix, young, couples, families, college educated, ethnically diverse

73069 Norman, OK 1 Mobility blues: younger, without kids, modest lifestyle

22181 Vienna, VA 1 Executive Suites : middle class singles and couples, college graduates, haven for white collar professionals, significant numbers of Asian American

PRIZM

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Which types of hair do you cut and style most frequently? (check all that apply)

  FrequencyChecked

Unchecked(missing)

Percent Checked

Percent Unchecked

Women 94 11 90 11Colored 94 11 90 11Medium Length 89 16 85 15Straight 82 23 78 22Curly 79 26 75 25Short Length 77 28 73 27

Long Length 68 37 65 35Men 64 41 61 39Ethnic 34 71 32 68Permed 25 80 24 76Formal Styles 23 82 22 78

Other 9 96 9 91

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Stylists asked to check all that applied

Other; Series1; 9; 1%

Formal; Series1; 23; 3%

Permed; Series1; 25; 3%

Ethinic; Series1; 34; 5%Men; Series1; 64; 9%

Long; Series1; 68; 9%

Short; Series1; 77; 10%

Curly11%

Straight; Series1; 82; 11%

Medium; Series1; 89; 12%

Women; Series1; 94; 13%

Colored; Series1; 94; 13%

Frequency, Cut and Style

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What percent of your clients have curly hair?

 

Frequency Percent Valid Percent Cumulative Percent

0-20% 19 18 19 19

21-40% 39 37 38 38

41-60% 20 19 20 20

61-80% 10 10 10 10

81-100% 14 13 14 14

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Internet UsageN Minimum Maximum Mean Std. Deviation

How often do you use the internet to get info about cutting and styling hair?

103 1 5 2.69 1.067

1= Never, 2= Rarely, 3=Sometimes, 4= Frequently, 5= Always

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Websites

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Likelihood of using a website for cutting & styling hair

1= Very Unlikely, 5= Very Likely

  N Minimum Maximum Mean Std. Deviation

How likely would you be to use a website for all types

97 1 5 4 1

How likely would you be to use a website for curly hair 96 1 5 4 1

36

How likely would you be to use the following features on a website for hairstylist?

N Minimum Maximum Mean Std. Deviation

Tips and tricks 95 1 5 4.13 0.854Educational Video Clips 96 1 5 4.09 0.93 Training Seminar Information

95 1 5 3.98 1.052

Hair tool reviews 95 1 5 3.92 0.975Articles on cutting and styling all hair types 96 1 5 3.89 1.035

Hair product reviews 94 1 5 3.87 1.039Articles on cutting and styling curly hair 96 1 5 3.85 1.046

Ability to purchase products on website 94 1 5 3.41 1.273

Curl Expert Job Opportunities 93 1 5 3.29 1.265Message board and forums 92 1 5 3.2 1.251

1 = Very Unlikely, 5 = Very Likely

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Rank the importance of the following features with one being the most important and 9 being the least important.

N Minimum Maximum Mean Std. DeviationVideo Clips 81 1 9 2.77 2.21Tips and Tricks

81 1 9 3.42 1.99

Articles on cutting and styling all hair types 81 1 9 3.81 2.19

Articles on cutting and styling curly hair 81 1 9 4.17 2.16

Training seminar information 81 1 9 5 2.46Hair product reviews 81 1 9 5.84 1.8

Hair tool reviews 81 1 9 6.27 1.8Ability to purchase products on website 81 1 9 6.42 2.1

Curl expert job opportunities 81 1 9 7.3 2.46

1= Most Important, 9= Least Important38

Features: Calendar

1= Very Unlikely, 5= Very Likely

  N Minimum Maximum Mean Std. Deviation

How likely would you be to use a website featuring a calendar that list dates and locations of hair stylist related seminars?

91 1 5 4 1

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Understanding the Target Market

Out of the 105 people surveyed, only 97 responded to this question: “Would you be interested in accessing more information online to expand your curl cutting and styling knowledge?”

Therefore the percentages are based on a scale of 97 rather than 100.

From this point on, only the data from “YES” respondents will be displayed creating a sample size of 79.

40

Would you be interested in accessing more in-formation online to expand your curl cutting

and styling knowledge?

YesNo

18, 19%

79, 81%

41

* 1 out of the 79 sample did not respond.

Do you consider yourself a specialist in cutting and styling curly hair?

Yes

No

24, 31%

54, 69%

42

*1 out of the 79 sample did not respond.

11, 14%

31, 40%14, 18%

8, 10%

14, 18%

What percentage of your clients have curly hair?

0-20%

21-40%

41-60%

51-80%

81-100%

43

Frequently Sometimes Rarely Never0

5

10

15

20

25

30

35

40

Frequently; Series1; 22

Sometimes; Series1; 36

Rarely; Series1; 12Never; Series1; 9

How often do you use the internet to get information about cutting and styling hair?

Rate of Use

Num

ber

of R

espo

nden

ts

44

Very Unlikely

Unlikely

Neither Unlikely nor Likely

Likely

Very Likely

0 5 10 15 20 25 30 35 40 45

Very Unlikely; Series1; 0

Unlikely; Series1; 0

Neither Unlikely nor Likely; Series1; 0

Likely; Series1; 0

Very Likely; Series1; 0

Very Unlikely; Series2; 1

Unlikely; Series2; 4

Neither Unlikely nor Likely; Series2; 7

Likely; Series2; 44

Very Likely; Series2; 23

How likely would you be to use a website for hairstylists to get information on cutting and styling hair?

45

*1 out of the 79 sample did not respond.

Very Unlikely

Unlikely

Neither Unlikely nor Likely

Likely

Very Likely

0 5 10 15 20 25 30 35 40

Very Unlikely; Series2; 2

Unlikely; Series2; 2

Neither Unlikely nor Likely; Series2; 7

Likely; Series2; 40

Very Likely; Series2; 27

How likely would you be to use a website for hairstyl-ists to get information on cutting and styling CURLY

hair?

46

0

5

10

15

20

25

30

35

40

45

How likely would you be to use the following features on a website for hairstylists?

Very Unlikely

Unlikely

Neither Unlikely nor Likely

Likely

Very Likely

47

Likelihood of Using: Online FeaturesTips & Tricks 4.23

Video 4.23

Training Seminar 4.14

Articles ALL 4.13

Article CURLY 4.09

Tool Reviews 4.05

Product Reviews 4.03

Purchase Products Online 3.55

Curl Expert Job Opportunities 3.49

Message Boards 3.43

Mean

1= Very Unlikely 5=Very Likely

48

Suggestions and RecommendationsUpdate logo, colorsBravo TV (Shear Genius),

TLC (What Not To Wear)Nick ArrojoContact salons that have

been reviewed by NC usersUpdate and correct email

databases

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Suggestions and RecommendationsConsider website for all hair types Important to raise awareness of site to

stylistsPartnerships

Redkin, AG Hair Cosmetics, P&G, Paul Mitchell

Other industry related websites

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Conclusions Salon owners and investors are decision makers

regarding advertising, if done at all Receive information from: training sessions,

magazines, internet, tradeshows, seminars, other Appear to be indifferent to website only for curly hair

vs. all hair typesSimply want more information about cutting and

styling hair in generalBetter investment, based on research: website

directed to stylists for all hair types

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