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Marketing Strategy Of Tony And Guy Salon

Paper Type: Free Essay Subject: Marketing
Wordcount: 3535 words Published: 15th May 2017

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Tony and Guy salon is working marketing strategy that would enable the company regains the control of the hair treatments market globally. More so, the company is working towards reviving and rejuvenating operational the Dubai Branch that has not been performing well. The organization has set aside $ 1000000 for the processes in the marketing strategy.

The conservative limited marketing budget will spread among such activities as marketing efforts renting showrooms in high traffic areas in cities where there will not only be more visibility of the Tony & Guy products but also its professionally trained staff will offer hair treatment services at subsidized rates and show case the organizations product and services. Apart from the existing outlets, the activities will be conducted in selected well-traveled, popular malls located in high human traffic areas. Although, it will be costly to lease these locations temporarily, normally higher than normal rent, part of the high cost of rents will be offset of the sales made during the exercise. The other proceeds will go to marketing activities that are designed to increase visibility such as road-shows and other activities. Generally the marketing strategy is composed of the following activities:

• Advertisements: there will be Advertisements in country specific and international magazines, journals, newspapers and other publications. Those publications that have wide readerships among the women and youth will be give priority since these groups the biggest junk of the target market segments.

• Since not all the target markets may be reached by advertisements in publications, alternatives means of reaching them will have to be decided. One way will be using large billboards in major roads feeding major world cities.

• In-store and Store Front Displays: These displays will be visible to the large walk- through traffic base.

• Electronic mediums such Television Commercials, radio and internet

• Sponsored events and roads shows will be another marketing strategy to be used.

3.1 Mission

The major objective of marketing strategies will be to inform the customers and those potentials customer that Tony and Guy products and Salon Services are not only available locally but also that the company is committed to providing reasonably priced, convenient hair styling and the organization exists to attract and maintain customers. When Tony and Guy adhere to this maxim, everything else will fall into place. Their services will meet or exceed the expectations of their customers and eventually result in secured and protected future markets.

3.2 Marketing Objectives

• The marketing strategies will increase repeat customers by at least 9% per quarter.

• Product visibilities and awareness is to be boosted by 14%

• The strategies will decrease customer acquisition costs by 8% per year.

• Non performing branches such the as one Dubai is to maintain positive, steady growth each month.

3.3 Financial Objectives

Ultimately, the marketing objectives of the marketing strategy must translate into sales. After the implementation of the marketing strategy, the following effects are anticipated or targeted sales:

• 10% increase in the amount of retail products sold per year.

• Growth of the profit margin by 3% per year.

• Full recovery of sales and ultimately profitability in the Dubai branches and other branches initially performing poorly throughout the worlds; one year since the inception of marketing programs.

Target Marketing, as part of the strategy will enable Tony and Guy; to reach different market segments:

• Men: past statistics show that men at least 70%-75%of men use hair make up, thus implying significant clientele potentials. Relevant communicational tactical ads will to reach these groups will be used.

• Upper-end and lower-end women markets: The biggest proportions (about 90%) of the revenues to the hair industry come from female customers. Women have generally been found to be fond of identifying themselves with classy and expensive and fashionable products and services. Although they can be discriminated by class and prices, the quality of services and the functionality of different brands of Tony and Guy brands will greatly influence this segment t of the market. There therefore great potential market in the women populations.

• Young Mothers with Children: Young children are an emerging market in the hair treatment industry. A typical family salon has facilities that allow the

children to play while they are waiting and then will work with the parents in calming the children nerves when they are ready for treatment.

Each of the three groups will be targeted separately. The Tony and Guy outlets and the new leased promotional centers will prepare its staff to offer quick and convenient services to the male customers. Outlets will close late at night 8 pm in high traffic centers and security services will be acquired from security companies. Through out the periods, no appointments will be required, and most of the salon services will be on first come first serve basis but quick, convenient and satisfactory to the customers.

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As for women, generally, researches have shown them to prefer the allure of classy salons, although practically not everyone can afford such luxury. For this reason, Tony and Guy will provide the different hair treatment services but strictly within the normal range prices. Tony and Guy will target these customers by emphasizing the sophisticated, ultra hype styling that Tony and Guy will offer at all their outlets all over the world during the promotion period or the time of implementing the marketing strategies. Entertainment will be offered. To reach both the high end and low end market at the time while appealing wit classy but affordable services and products, Tony and Guy’ advertisement will be made to appeal to all. The advertisement while communicating the classiness of the services and products will also emphasize of the affordability. Above all, advertisements will demonstrate that making up and treating one’s hair with company’s products and or services is a necessity, as basic as clothing. It will communicate that it not longer a secondary need but a basic need for every woman.

With the latest finding confirming that there is an emerging market in the children for the hair industry, Tony and Guy cannot ignore the segment. To win the Children market, Tony and Guy, will focus its strategies towards mothers with children by offering kids toys to play with while they wait and child-friendly hair stylists. Additionally, children receive a special rate reflecting the fact that children’s hair grows so fast that it can be expensive to keep up with regular treatments as well as the recognition that it generally takes a lot less time to treat a child’s hair so it should be inherently less expensive. The tactical advertisement will be tuned to appeal to this group while reaching other segment with the same message.

3.5 Positioning

Tony and Guy Salon marketing strategies will position the organization in the industry strategically to be a one stop-shop convenient, full and affordable services and products. While reaching families a corporate entity, the salons also will appeals to individuals with all the outlets prepared to offer quality services and products at competitive rates even after the promotional periods. Tony and Guy will be offering one-stop services, building it competitive edge by striving to achieve its desired positioning through;

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• Excellent customer services through out all centers: Tony and Guy’s competitive edge will be based on superior customer service. The company recognizes that the hair treatment industry has crowded market with challenging situations id differentiating its products and services from those of the competitors. To stand out in the market, Tony and Guy, take advantage of its combined concerted efforts to sell the hair products while at the same time operating salons. The two activities not only give an opportunity to the customers to try the products and the services but also enables them experience the quality of services and the products the company offers. Tony and Guy’s have been trained in the London Academy in quality customers’ services. This will enable the company through out its branches spread across the globe to simultaneously offer or provide superior customer attention. The staff will be as much as possible be flexible to the needs of the customer.

• The staff will be incentivized to offer quality client services throughout. While Tony and Guy will invest time and money into training the employees, other concerted efforts will be arranged to ensure that clients receive the best experience possible making it is easier to turn them into a long-term customer and improve the company’s and the its services and products reputations. Through the superior customer service, Tony and Guy will be able to effectively compete against and outlast larger chains and independent stores operating in the industry both locally and internationally.

3.6 Strategy Pyramids

To fully overhaul, the old marketing strategies, with rejuvenated efforts, the single most apparent objective is to position Tony and Guy as the premier, full service, family salon in the internationally. The pyramids marketing strategy will seek to first create customer awareness regarding the services offered, then develop the customer base, and finally work toward building customer loyalty and referrals.

The message that Tony and Guy will seek to communicate is that the entire family can be served quickly, professionally, with superior customer service at reasonable rates. The message will be communicated through various methods. During and after the promotions, the messages will continue to be communicated through in-store and storefront displays through all the outlets and partnering retail salons. This will be a convenient and cost effective method to attract potential and existing customers that walk around the or near the outlets and retail centre. This will complement the other method of communication is advertisements in two local and international regular publications newspapers.

Marketing Mix

Tony and Guy marketing mix will carefully companied selectively to influence customer behavior in favor of the services and product of the company. Theoretically, a typical marketing mix model is comprised of the 4’Ps of marketing namely: pricing, Place (distribution), Promotion and advertising, and Product.


Tony and Guy Salon pricing system will be founded on a competitive pricing model that while making the services and products affordable, also remains competitive relative to competitors’ prices. This pricing strategy will be the most fundamental element that needs serious considerations in each and every market. Although the pricing of services and products by Tony and Guy will be guided by the current levels and those of the competitors’, the company will strive to offer optimal prices, affordable and compelling to the customer, yet giving reasonable returns. During the promotions, the prices will be subsidized, but at minimum, the revenues must offset the promotional expenses. Thereafter the new set of optimal prices will be offered for the products. Each markets retail outlets will be issued with pricing guidelines. Tony and Guy acknowledge the difficulty in standardizing prizes in all the markets considering the variations in income and economic levels. For this reason each segment of economic separated by national boundaries and currency will have specific pricing model guidelines.

Independent salons franchised to offer Tony and Guy products and services will be given discounts to together with customers identifies to have been loyal (Westwood, 2000).

Price Policy

While Tony and Guy Company Salon admit that pricing is the most important element that influences customer or rather buyer behavior and the same determine the profitability of any enterprise, the company intends to develop policies that would assist the managements and retailing outlets in setting optimum pricings that are enticing to customers. These prices will be so strategic that that it will affect the overall performances and the future competitiveness of Tony and Guy. Attracting new clients and keeping the customers, will be the key agenda in the pricing policies to be developed. Because of these affordably but competitive prices, Tony and Guy will use other strategies expand its market. The lower prices will be compensated by larger sales volumes. In this case the best method that the company sees as what will attract the customers and keep them. For the prices to be competitive and appealing to customers, the organization devises strategies and conducts feasibility analyses of customers’ experiences at different pricing scenarios. This requires some market research and testing to determine customer behavior at different selected rates.

The Tony and Guy Hair products and hair treatment services will use the fixed price in specific regions with similar market segment description such demographic, cultural and economic situations. This policy involves determining the price for customers who are wiling to purchase the product with the same prices, given the same shared market conditions and environment. Though it sounds discriminatory in nature, the prices will be fixed in such a way that it will be very easy for the company to administer and in the long run be able to maintain a good will within the customers. This strategy will enable the company use the higher pricing in better economics markets to compensate the minimal rates charged in the markets whose economic and average income levels are lowers. This is one of the strategies often recommended for company multinationals operating in countries having different economic performances (Westwood, 2000).

Place (Place of Distribution) Worldwide Marketing (Promotion)

Tony and Guy Salon being an international company that deals with hair treatments products an services, has a strategic marketing plan program for its product and services with a world wide scope. Since the birth of the organization in United Kingdom, the company has always catered for the demand of its customers across the globe. Consistent with this global reach, the company has always been aware of its customer around the globe.

In line with this element of the marketing mix and consistent to the marketing strategy, the strategy has always been to formulate and invent products that meets the needs of customers in different part of the world. With much investment in research and development of Tony and Guy salon products, the organization has already meet identified the specific needs required in most parts of the world including the strict Islamic Middle East. Following adaptation of its products to meet the specific hair needs of the customers in different part of the globe, Tony and Guy has earned high approval rating from clients. This explains the successive awards the company has won. For example, in 2006, it won the South West Hairdresser of the Year and it has won the London Hairdresser of the Year (11 times) consecutively.

While sensitive to such social issues as racism and whiles making efforts not to conform to beauty concepts of each and every culture in the countries they are operating, Tony and Guy has taken into consideration, Tony and Guy take into consideration colors appreciated by its customers. The company gives its customers opportunities to embrace diversity amongst them selves while enhancing their personal features and aesthetics. Tony and Guy Salon employees are another lot of diversity. With majority of them being women and multi-colored, they are considered a ‘minority’ implying an excellent team out of an affirmative action and a symbol of the target global market. To Tony and Guy Salon, embracing people cultures is the best method to reach and to serve the interest of the consumer wherever they are.

Locating the store in a high traffic mall will significantly increase visibility. A targeted advertising campaign will also communicate Tony and Guy Salon’s desired messages. The company intends to use various media so as to reach its target market. Research will be made so that the right media is selected which is more efficient and more reliable. The promotional activities that the company intends to put in place include having a chain of distribution that is well coordinated and that which can provide the right channel to the market that is targeted. Some of the channels which are available in Kenya include use of mass media, newspapers, the internet and personal selling. Through these methods, the company is able to reach many people at the same time and establish a strong market in Kenya (Kirsch and Goldfarb, 2002).

Product and services

A practical marketing strategy is not complete without the product element of the marketing mix. One way Tony and Guy Salon have ensured appropriately blending its hair treatment products and services. Customer service is on strategy that has been used to deliver quality to customers worldwide. All the Tony and Guy Salon employees have been trained in exceptional customer service in the London Academy. The partnering retail salons have also been given strict guidelines on the quality of customer service.

Tony and Guy is recognized for it commitment to continually pursue researches that ultimately improve the quality of the company products and service. One of the strategic plans has had has always been to take into account the best interests of the customers wherever they are. By giving a wider variety of products and services, the company has been able to offer customers a wider range that customers can chose from according to their needs and preferences. The products and services are prices in such a way that it caters for the needs of all the customers which though geographically separated are united by the Tony and Guy products and services. Regardless of age, whether affluent or poor, whether in Africa or in Asia, Tony and Guy offer product and services that suits the needs and are affordable to each of them.

To remain reliant, the company keeps abreast of the latest trends in the industry. Tony and Guy continually update their brands and responding to the dynamics of the industry. To enhance these processed the company has a dedicated team that pursue research and product innovation. The major objective of all these efforts is to consolidate a stronger clientele base among diverse cultures around the globe.

Since the emergence advertising and promotions, Tony and Guy, has commissioned several posters around the major cities to publicize the company products. Since the introduction advertising through movies in the 1950s, the company has engaged it also a medium of reaching customers. Tony and Guy has also sponsored major Soap Operas in Europe and Asia which are also transmitted or sold to other continents. Use of celebrity personalities in adverting has not escaped the company marketing strategies. The famous actresses and other personalities has enabled Tony and Guy relate the successful with personality lives to their corporate and brand images and subsequently boasting visibility and sales.

Ethical Issues and CSR

In any marketing program, ethical issues normally emerge. There is one major ethical issue that will be of great concern in this marketing plan for Tony and Guy salon. The ethical issue revolves around the conventional use of advertising using images of beautiful women. The hair treatment industry being just part of beauty and cosmetic industry, has conventionally been using images of women to advertise. This is because, the core target audient is the women populace and images of other popular or celebrity women can sell a message of advertisement to them.

The underlying ethical issue in Tony and Guy marketing strategy is in the use of using advertisement that carry beautiful women. This has recently attracted criticism with critics claiming that use of images, more so explicit or very exposing women images not only degrades the stands of morals in the society but also lowers the dignity of women. In addition to these criticisms, the images are said to be offensive to conservative cultures. According to Blaire (1994), advertising using feminine messages whether visual or otherwise, delineates from the natural and local cultures principles and instead are forced to see herself through the eyes of another ‘ideal’ woman in an ad image.


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