AF3 [12 Marks]
Market Analysis
25 Minutes spent on this section (AF3 Analysis Tool)
1. Secondary Research (Part a: 1st section): Market Overview, Trends, example
products/services, example strategies and campaigns
2. Primary Research (Part a: 2nd Section): Specific market research for selected
business, date location sample size and demographics of who was sampled.
Quantitative and Qualitative data
3. Media Selection (Part a: 3rd section): Possible media for campaign, audience
reach and costs
Primary Research:
Primary research suggests factors like reputation and customer reviews are more
important than price when selecting a salon. This suggests Shine has an opportunity
to compete by focusing on service quality, customer experience, and marketing the
expertise of its staff. No presence or visibility in the booming shopping centre
destinations such as Trafford Centre where new entrants have located- this could
damage market share
Secondary Research:
Market is forecast to continue growing, albeit slowly, so Shine should be able to
continue to grow salon revenues provided they at least maintain their market share
Secondary research suggests an increasing trend towards at-home beauty services,
potentially reducing number of visits to Shine's physical salon locations in the long
term, and therefore threatening average salon revenues.
A key theme from both the secondary and primary research is growing consumer
demand for "pampering" and luxury treatments. This presents an opportunity for
Shine Beauty's marketing campaign using salon events to demonstrate and trial
premium, indulgent services like cryotherapy. Promotional messaging could position
treatments as pampering rewards or gifts to yourself. Promotions can offer first time
elite status and VIP experiences. These concepts align with identified social trends
while allowing customers to sample high-end services likely to increase average
spend per visit.
Consideration of validity, reliability and appropriateness of data needs to be
considered
The main limitation of the reliability of the primary research is that it was
conducted only in Manchester, when Shine operates in a wider area (Cheshire). Local
market differences may exist. Including consumers from a wider geographical area
and current Shine Beauty customers in the primary research might have provided
more directly relevant data on purchasing behaviours and motivations to inform
strategies for existing clientele and area residents. Additional questions on