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HANOI UNIVERSITY

FACULTY of MANAGEMENT & TOURISM

-----------------------o0o----------------------

ELECTRONIC MARKETING

Project:

APPLICATION OF ELECTRONIC MARKETING

IN DILO HAIR SALON

Tutor: Ms. Minh Hang

Tutorial 3 BA08Group members:

Nguyen Thi Bich Diep0804000017Nguyen Thi Loan 0804000062


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DILO Hair Salon 2011

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TABLE OF CONTENT

Abstract ... 3INTRODUCTION OF THE BUSINESS .. 4

1. Overview of DILO Hair Salon . 42. Application of Electronic Marketing in DILO Hair Salon ... 4

SITUATION ANALYSIS ..... 51. Environmental Analysis .... 52. SWOT Analysis - DILO Hair Salon . 9

E-MARKETING STRATEGIC PLANNING .. 111. Market Opportunity Analysis ..... 112. Brand Differentiation and positioning strategies 12

OBJECTIVES .... 13E-MARKETING STRATEGY .. 14

1. Product ......... 142. Price ...... 153. Place ..... 154. Promotion ......... 16

IMPLEMENTATION PLAN .... 16REFERENCES ....... 17Appendix .. 18


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ABSTRACT

E-marketing has become a strategic useful tool for modern businesses to develop their

network of customers. DILO Hair Salon (DILO) is a project that utilizes e-marketings

advantages in its operation. While most of hair salons in Hanoi have been strange to using

internet to approach clients, DILO set up a convenient website for them to search information,

to check the services and prices, to try a virtual service, and to enjoy other benefits. With the

intention to become the most reliable salon in Hanoi, targeting middle-to-high income women,

DILO tries to use e-marketing as a useful method to build and maintain customer relationship,

which can help the firm to succeed in the long run. In this report, we developed a business

plan for DILO with detailed analysis on environmental factors, companys analysis, and the

use of e-marketing in a variety of activities.


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INTRODUCTION OF THE BUSINESS

1. Overview of DILO Hair SalonDILO Hair Salon (DILO) is located at Km9, Nguyen Trai Street, Thanh XuanDistrict, Hanoi. We offer professional hairdressing services within the city.

Services and GoodsOur hairdressing servicesinclude color, texture, cutting, treatments, and styling andspecialty. The services are performed by a team of qualified and professional

hairdressers with the intention to bring about satisfaction to every customer.

Target CustomersDILOs products are aimed at middle-to-high income women, who are from the ageof 22 to 40. Our target customers lives and/or works within Hanois seven centerdistricts, a majority of those work or study in offices, banks, hotels, and universities.

MissionWith our capabilities, DILO is confident to highly satisfy even the most demanding

customers. We desire to discover and enhance the beauty for each woman by styling

and caring for her hair, therefore, make her more confident in work and life.

VisionDILO tries to become the number one salon of Hanoi in terms of reliability, fashion,

and customers relation.

2. Application of Electronic Marketing in DILO Hair SalonBrief DescriptionDILO Hair Salons website:DILOs website is established along with the foundation of the hair salon.

As a usualhair salons website, oursprovides informational introduction about DILOHair Salon including establishment, location with map, hairdressers information,


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services and products images and prices. Besides, the web continuously updatesnews and articles about hairstyles, hair trends, and hair caring tips for readers.

DILO Hair Salons Website athttp://dilo.byethost15.com/index.php/home

What makes DILOs website unique or outstandingfrom other rivalsis the abilityto interact with customers through an application of trial hairstyle software and an

online consultation service.

Online marketing:Keeping in mind the power of online marketing, DILO takes advantage of the internet

in promoting our products. Other than the salons website and some traditionalintegrated marketing communication (IMC) tools, we use social networks, online

newspapers, other suitable websites, and e-mails in our marketing campaigns.

SITUATION ANALYSIS

1.

Environmental AnalysisDemographic segment:

Hanoi a very potential market with the concentration of a large amount of

customers

Hanoi is a highly populated city with about 6.7 million residents. On average, in this

city, there are nearly 2,000 people living per km2, which is eight times higher than the

whole countrys average density (Huong, D 2011). The crowdedness of this marketmakes it easier for any business to do mass marketing and to reach a large market

share. In Hanoi, people from the age of 22 to 40 amounts to a major amount of the

total citys population, they are also at the labor ages.
http://dilo.byethost15.com/index.php/homehttp://dilo.byethost15.com/index.php/homehttp://dilo.byethost15.com/index.php/homehttp://dilo.byethost15.com/index.php/home


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Economic segment:A steady growth in Hanoians per capita income

Hanoians per capita income (VND million) Source: GSO

Peoples earnings have been increased from 2005 to 2010 at a compounded annualgrowth rate (CAGR) of 19.3%. This trend is likely to continue in the future and might

encourage consumption in this big city in recent years.

Socio-cultural segment:Increasing awareness of the beautys benefits in work and life

In 2009, Nielsen, a leading global information and measurement company, released a

research on understanding Hochiminh City and Hanoi customer differences. This

study showed that the role of public opinion and social conformity is stronger forHanoians: they dont just live for themselves and they do care what others think ofthem. Appearance is the key.

According to the result of our survey delivered to 100 women in Hanoi, there were

more people who highly appreciate the value of good hairstyles in their work and life.

86% of respondents believed that a fashionable hairstyle made them more confident in

job interviews, and in daily work. Besides, there were more than 80 people whothought that a suitable hairstyle made them more beautiful and easier to draw

attention from the opposite gender.

2005 2006 2007 2008 2009 2010

15.618.4

22.4

28.1 31.8

37.7


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Customers resistance to make changes in hairstyles

In our study, there were about 47% of people saying that they often didnt want tochange their hairstyles. Among those, about 80% shared that they were afraid the new

style would make them look worse, and only 10% blamed on their financial

conditions. It can be seen that there is a big risk for women not to come to salons. Ifthey could foresee their appearance before actually realizing it, they would not be so

hesitant.

The influence of Korean and Japanese styles on Vietnamese womens preference

On TV channels, Internet, and magazines, it is very easy to see Korean movies,

Korean and Japanese music, and Koreans and Japaneses most updated hairstyles.Their intensity of appearance, along with the similarities among Asia peoplescultures including Korea, Japan, and Vietnam, has strongly influenced Vietnamese

womens style of beauty making-up, in general and their hairstyle preferences, inparticular.

SNSD band from Korea A Korean actresss news on a popular

Vietnamese onl ine newspaper

In the question about their hairstyle preferences, 84% people liked Korean actressesand singers styles, 13% of them preferred Japaneses ones.That also explains whyexisting hair salons in Hanoi often offer their customers catalogues of Korean

celebrities and models photos to choose the style they want.

A habit of using internet for searching information and interacting with each other

Cimigo, an independent team of marketing and brand research specialists operating

throughout the Asia Pacific region has just published a report on using Internet in

Vietnam 2011. According to that, about 62% of Vietnamese used internet every day,

and most of them use internet for reading news and searching information (97%). The


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number of Internet users who participated in social networks, such as Facebook,

Twitter, Myspace, and Zingme had increased from 41% in 2010 to 55% in 2011.

Different channels of marketings influence on Hanoians purchasing decisions

Nielsens study showed that Sellers website and forums affected the buying decisionsof the largest number of consumers in Hanoi.

Different channels of marketings influence on Hanoians purchasing decisions

Source:Nielsen

The concern about hair chemicals quality and safety

The survey with 100 customers showed that all of them often worried about the

quality and the safety of the chemicals used to their hair when they went to hair

salons. What people really wanted to know the most is the brand of the product and its

origination, they were afraid that the chemical could cause them allergy or cancers.

Technological segment:The availability of hairstyle trial soft wares in the world

Dailymakeover.com, Hair Master Software, and Digital Hairstyle software are typical

examples which allow users to choose different hairstyle, hair color for them.

Hairstyle Tr ial Soft Ware

Advertisements

Newspaper/magazine

Recommendations from sellers

Internet/other websites to compareinformation

Seller websites and forums

91%

83%

67%

95%

100%


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Political/legal segment:Up to now, there has been no particular regulation for hair salons in terms of using

chemicals in their businesses.

2. SWOT Analysis - DILO Hair SalonStrengths:The commitment to use high-quality and safety chemical

Because customers often worry that the chemical used to their hair can do harm to

their health, DILO commits to show customers the brand and the origination of every

chemical used. All of those products must have well-known brands in the world or in

the country; they must receive the certificates of health safety from the Ministry of

Health.

A strong client management

DILO makes frequent contacts with its customers by the firms website, e-mails andmobile phones. News and videos are updated almost every day to the website of the

company. Users are likely to get used to logging in the website every day for reading

a variety of information. The news contents include hairstyle trends and hair caringarticles. Websites users provide their database to DILO when they want to log in thewebsite, a profile will include name, age, gender, address, work place, mobile phone

number, and e-mail address. These contacts will be used to deliver advertisement and

promotion messages to customer personally and to help DILOs staff remember theircustomers better. Customer reliance and relationship will also be enhanced by the

application allowing them to receive online personal consultation. An administrator isresponsible to ensure the activities on DILOs websites to run smoothly so that usersalways feel convenient.

A unique trial service

Hairstyle trial software is applied on the website and at the salon in order for

customers to choose the style they like for themselves before going to the real salon.

The use of trial software is to reduce customers risk before deciding to go to DILOHair Salon. They can require our hairdressers to realize the hairstyle they want.

A well-trained team of hairdressers and employees

All of DILOs hairdressers graduated from TONI&GUY Academy, a well-knownbrand for training hairdressers in the world. They are experienced, skilful and

professional. Every employee in the salon was trained thoroughly in customer-

focused business practices. This ensures to satisfy the most demanding customer from

the very beginning stepreception.


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Receptionist

A wide and polite space and parking place

Different from lots of other salons in the city, DILO has a spacious site (100m2) that

can serve more than 15 customers at the same time. We offer waiting desks with tea

and candies for clients and their friends or relatives.

A corner i nside DI LO Hair Salon

A secure and wide parking place is available for customers who travel in their

personal cars and motorbikes. This is one of the very important factors that consumers

often concern going to a salon.

Spacious parki ng site

Weaknesses:Lack clientele list

Being a new salon for Hanoians, DILO lacks a clientele list of this market. The salonwill have to try very hard to attract customers from the beginning.


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Relatively high prices

Our salon offers a price level that is about 10% higher than the markets average. Thismark-up is to compensate for the use of high-quality products, an expensive renting

fee (house renting and car parking site renting), and higher salary for experienced

hairdressers.

Opportunities:A steady growing market that is traditionally unaffected by the economic environment

In general, this kind of service is not much affected by the economic condition,

especially in Hanoi where people have relatively high income. This is the chance for

hair salons to make profit even when the economy becomes downturn.

The ability to decrease marginal fixed costs as the customer base grows

The high price charged to each customer at the beginning will be able to reduce in the

future thanks to the increase in the number of customers coming to the salon. At thattime, the fixed costs in renting, salary per customer will be declined.

The ever-evolving hair trends and styles can present many opportunities for the hair

salon

Hair trends change year over year, and even faster, season over season. Women may

have the tendency to update their hair to look more fashionable in the eyes of

surrounding people. The hair salon can regard it as opportunities to increase

customers frequency of use.

Threats:The fierce competition from rivals and new entrants

DILO Hair Salon will have to cope with the completion in market. In order to win

over its rivals, DILO will have to make ongoing strategic moves in attracting new

customers and retaining existing ones. The salon might introduce new styles very

often, provide new promotions and specials for their customers, as well as ensure the

smoothness of the operation both online and offline.

E-MARKETING STRATEGIC PLANNING

1. Market Opportunity AnalysisDemand analysisAs mentioned in Environmental Analysis part, the demand for hair-related serviceis growing everyday. Recently, women, especially those who live in big city like

Hanoi, care more for their appearances. They want to be more confident in work and

life and they have a growing income, which can encourage them to hair salons more

frequent to get their hair look better. Hanoian female from the age 22 to 40 are very

familiar with internet nowadays so the use of online applications in marketing is very

profitable.


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Supply analysisDILO possesses a lot of strengths and competitive advantages which can help us to

outperform competitors. DILO has a team of experienced and customer-oriented

hairdressers, the commitment to use high-quality products, a good brand with several

honorable prizes, and an effective utilization of internet in doing marketing. It is noteasy for other salons to achieve those advantages in the near future. However, our

rivals have experience in Hanoi market and they may also use internet to promote

their firms in the future. To win over them in the long-run, DILO will have to ensure

the salons quality while continuously bringing to customers benefits by gifts, sale-offprograms and maintaining customer relationships with the support of the companyswebsite and employees.

In conclusion, DILO target Hanoi market because of its profitability and high demand

now and in the future. Women from 22 to 40 years old with middle to high income

will be our main customers. They are frequent users of this kind of service, they are

technological familiar and they always expect professional services, which canentirely be offered by DILO Hair Salon.

DILO aims to positions ourselves as a highly reliable salon for customers. We do not

stop at making them more beautiful, we offer them safe and high-quality service with

the commitment to use globally branded hair caring products. The reliability also lies

in our ability to realize customers expectation and imagination of their new hair. Ourexperienced hairdressers can make each clients hair as similar as possible to whatthey have tried in the hairstyle trial software in terms of hair shape, hair length, and

hairs color. We also provide them with reliable advice and consultation in caringtheir hair before and after any hair treatments.

Besides, DILO salon desires to become a relaxing space for our customers. We utilize

music, dcor, and flowers in the salon so that customers can comfort their senses. Our

employees regard customers as relatives. They must remember their names, talk to

them friendly and serve them well.


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OBJECTIVES

DILO aims to achieve the following objectives:

Objectives Tasks Measurable quantity Time frame

Increasing market share

Use IMC tools effectively

Encourage customers to spread

positive word-of-mouth

Try to cut down price as the demand

grows

On top 10 salons in Hanoi

about market shareBy 1 year

Increasing sales revenueEncourage customers to spread

positive word-of-mouth

5 times as much as month

1s revenueBy month 12

Achieving branding

goals

Appear on the top list of Google

Search for hair salon in Hanoi

Appear on popular onlinenewspaper and websites every week

Realized by 10% of

targeted customers inHanoi

By 1 year

Increasing database size

Increase the number of people using

DILOs websiteand trial service

Update the websites news

Update the trial softwareshairstyles

15 times as much as

month 1s database sizeBy 1 year

Achieving customer

relationship management

goals

Ensure not to let customer wait for

more than 20 minutes

Ensure all customers receive

greeting messages on special

occasions

Ensure receptionists to smile to

customers and remember their

names

Ensure hairdressers to have friendly

talks with customers in the salon

Number of regular

customers increased by

7% per quarter

From start-up

to the end of

year 1


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E-MARKETING STRATEGY

1. ProductThree levels of productCore product - Hairdressing servicesThe core benefit that DILO brings to customers is the confidence in their own beauty.

Actual productQuality of the finished hairstyles

The actual products that DILO delivers to customers are their new hairstyles, which

fit with their expectations stepping in the salon. No matter how well the salon can

serve their customers, if they dont like their new hair, it will be hard to see themcome back. Keeping that in mind, DILO commits to use only experienced and

qualified hairdressers to serve our customers.

Quality of chemical

As mentioned in the Strengths part, all products used in DILO for hair treatmentsare safe and high-quality. Among those, examples of our favorite brands are

Schwarzkopf Professional a famous company in Germany and SelectiveProfessionalone of three leading brands in Italia and Europe in hair caring products.Both of these lines are preferred to use by professional salons in the world for their

effectiveness and safety.

Schwar zkopf Professional products Selective Professional products

Salons brand nameThe other benefit that DILO can bring to customers is the reliability in the salons

brand name; an enterprise has won several honorable prizes in national hair contests

like Wellla and The Golden Scissors.

Augmented productMainly supported by electronic toolsConsultation service

DILOs customers receive free consultation from our team of professionals. Theadvice can be about hairstyles, hair caring, hair repairing, price, time to use service

and any promotion programs if needed. Consultants can contact with customers

through DILOs website, phones, or e-mail. 100% of customers coming to the salonwill receive hairdressers direct consultation.


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Trial service

Customers can use our hairstyle trial software for free either on the companyswebsite or directly at the salon.

Music and dcor of the salonIn DILO Hair Salon, customers can enjoy music and an eye-catching dcor style with

flowers and green trees, which can make them comfortable and relaxing.

Information

Taking advantages of the website, we always provide to customers with updated

news, new tips, and new trends. Especially, the salons professionals will traincustomers on how to care for their hair after treatment, how to beautify their hair

correctly, and how to temporarily design hairstyles by themselves at home.

2. PriceDILO applied a dynamic pricing for the salons services.Price policy is updatedon the companys website in case there is some change.

DILOs regular customers receive discounted prices. The discount can ranges from5% to 30% based on their frequency of using the salons services.

Customers receive discount for the next time of use if they can introduce othersto DILO. We want to take advantage of word-of-mouth marketing by encouragingcustomers to introduce their friends, relatives, colleagues, and neighbors to DILO.

This is the solution for us, a new brand in Hanoi, to develop our customers list.

Services prices are deducted when customers come during low demand time andseasons.According to that, it is up to 20% cheaper for people who come during themornings from Monday to Friday, and for people who use services from March to

June. The peak time for the salon is afternoons, early evenings, weekends, and before

Tet Holiday.

3. Place (Distribution)DILO uses direct marketing for product distribution. Customer may seek forDILOs consultation through our website; however, they have to come directly to the

salon for their hair to be actually done.


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To make it easy for first-time users, our website presents a map to allocate DILO Hair

Salon within Hanoi.

4. Promotion (Intergrated Marketing Communication)Details about promotion are presented below:

Tools How WhenAdvertising DILOs website

Google ( Google trends) Facebook Muachung, Hotdeal, Nhommua Leaflets which are deliveried at the office, and universities Magazines ( Hair magazine)

On-going

Once per 1-3 months Start-up Once per 1-2 months

PR Sponsorship:

Free hair make-up for beauty contestsapplicants Sponsor events: Vitamin or Hair contests

Start-up and occasionally

Salespromotion

Discount coupons Software: using trial service online Photos contest: create hair contest in the forum for member

in the website, the winner will receive the discount or

premium

Premium: VIP card for regular customers,

Start-up and occasionally On-going 1-2 times/ years

On-going

IMPLEMETATION PLAN

Please visit our website athttp://dilo.byethost15.com/index.php/home/about
http://dilo.byethost15.com/index.php/home/abouthttp://dilo.byethost15.com/index.php/home/abouthttp://dilo.byethost15.com/index.php/home/abouthttp://dilo.byethost15.com/index.php/home/about


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REFERENCES

Huong, D 2011, H Ni ra qun hng ng thng hnh ng quc gia vdn s, VGPNews,

viewed 20

th

November 2011,

DILO Hair Salons Website,

Vaughan Ryan, 2009,HCMC v Hanoi Understanding consumer diffrences, The Nielsen

Company

Cimigo, 2011,Bo co NetCitizen Vit Nam 2011, Cimigo
http://baodientu.chinhphu.vn/Home/Ha-Noi-ra-quan-huong-ung-Thang-Hanh-dong-quoc-gia-ve-Dan-so/201111/103399.vgphttp://baodientu.chinhphu.vn/Home/Ha-Noi-ra-quan-huong-ung-Thang-Hanh-dong-quoc-gia-ve-Dan-so/201111/103399.vgphttp://dilo.byethost15.com/index.php/homehttp://dilo.byethost15.com/index.php/homehttp://baodientu.chinhphu.vn/Home/Ha-Noi-ra-quan-huong-ung-Thang-Hanh-dong-quoc-gia-ve-Dan-so/201111/103399.vgphttp://baodientu.chinhphu.vn/Home/Ha-Noi-ra-quan-huong-ung-Thang-Hanh-dong-quoc-gia-ve-Dan-so/201111/103399.vgp


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Appendix: PHIU IU TRA KIN KHCH HNG

Hv tn: Tui:Di ng: Nghnghip:

1. Bn ngh thno vtc dng ca kiu tc p trong bui phng vn xin vic vtrong cng vic hng ngy?

Lm ti ttin hn Khng c tc dng g my

2. Bn ngh thno vtc dng ca kiu tc p khi gp gv tip xc vi ngikhc gii?

Lm ti li cun hn Ti khng quan tm ti vn ny

3. Bn c mun hi lng vi kiu tc hin ti ca mnh khng? C (bqua cu 4) Khng

4. Bn c sn sng ti salon i kiu tc ca mnh khng? C (bqua cu 5) Khng

5. V sao bn khng mun i kiu tc ca mnh? Skiu tc mi slm mnh trng thn

Cha iu kin ti chnh Qu bn v cha c thi gian L do khc. Cth:

6. Bn thch cc mu tc ca t nc no nht? Khng quan tm

Hn Quc Nht Bn Trung Quc Php

M Khc. Cth:

7. Khi ti cc salon tc, bn c lo lng vngun gc, cht lng v an ton caha cht sdng khng?

C v c salon gii thiu r rng C nhng khng c salon gii thiu r rng Khng

8. Nhng iu bn quan tm khi quyt nh n mt salon tc. C thchn nhiuhn mt p n:

Hng quen Nhn vin c tay ngh


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Nhn vin ci m Gi cphi chng Khng gian rng ri, thong ng C nhc v c trang tr p mt

Ha cht sdng an ton, c thng hiu C ni xe t Khc. Cth:

9. Bn thng tm thng tin vsalon tc qua u? Ngi thn, bn b Website ca salon Trn bo

Trn cc trang web tng tnh Muachung, Nhm mua, vv Khc. Cth:

10.Ktn cc website bn hay vo khi sdng Internet:

11.Bn sdng Internet nh thno? Hng ngy Thnh thong Him khi sdng Khng sdng

12.Bn mun website ca mt salon tc c nhng ni dung g? Thng tin vthlm tc Thng tin vsn phm sdng lm tc Thng tin vgi Thng tin vchm sc v xu hng tc T vn Phn mm thkiu tc Khc. Cth:

13.Salon chng ti c ng dng phn mm gip bn xem trc kiu tc c ph hpvi gng mt bn hay khng, bn c mong mun c thkhng? (Hon ton

min ph) C

Khng

14.Bn thch chng trnh khuyn mi nh thno mt salon tc? Khng thch khuyn mi Gim gi nu ti nhiu ln Gim gi nu gii thiu ngi khc cng ti Tng qu Khc. Cth:

Cm n qu khch tham gia trli cu hi!

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