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2. In India consumer expenditure has grown at its slowest rate in the last 8
years, the wellness sector has bucked the trend and continues to grow from
strength to strength. Resilience in consumer spending on wellness products and
services is a reflection of increasing consumer awareness and acceptance of
wellness as an integral part of their lifestyle. The large 700 billion INR
t it ff d b th I di ll i d t h k d th i t t fopportunity offered by the Indian wellness industry has sparked the interest of
global and domestic entrants into this space, even as incumbents are directing
their efforts on scaling up operations. This has also sparked increased levels of
interest from the investor communityinterest from the investor community.
This represents a growth of more than 18% over the previous year. Products
continue to comprise a majority share of 55 to 60% of the total market share.
Despite the slowdown in economic growth in 2012, the wellness industry hasDespite the slowdown in economic growth in 2012, the wellness industry has
shown little signs of downturn as consumer spend on wellness products and
services continues to be resilient. While industry prospects still remain
bright, companies are fine-tuning their business and operating model in order
to drive sustained revenue growth and ensure profitability
4. A. CONSUMER SPEND IN WELLNESS CONTINUES TO BE BUOYANT :
According to the Central Statistical Organisation growth in consumption expenditure has slowed down to 4%According to the Central Statistical Organisation, growth in consumption expenditure has slowed down to 4%
in 2012-13 compared to 8% in 2011-12. However, consumer spend on wellness products and services
continues to be resilient with a marginal slowdown in value growth.
B. RISING COMPETITIVE INTENSITY IN THE WELLNESS INDUSTRY
High growth prospects and opportunities within the wellness industry have attracted a number of new
entrants (global as well as domestic), and accelerated expansion plans of existing players. • For instance, the
salon and spa services segment has witnessed the entry of a number of global players such as French hair-
salon chain, Dessange International, Jean-Claude Biguine Salon and Spa, Saks Hair and Beauty salons, Toni
and Guy, etc.
C INCREASED AVAILABILITY OF FUNDING IS SPURRING DEAL ACTIVITY WITHIN THE SECTOR
Increasing attractiveness of the wellness industry has given a boost to deal activity within the sector, which
over the recent years has been on an upswing. Over 40 deals were inked since FY 2009 as compared to the
pre- FY 2009 period where less than 15 deals were inked. Deal activity continues to be driven by strategic
d l hi h h d f 65% f h l d l i 2009deals, which have accounted for over 65% of the total deals since 2009.
5. D EXPANSION TO TIER-2 AND 3 CITIES
Rising income, increasing awareness among consumers itier-2 and 3 cities, and lower
rental/manpower costs are some of the drivers for expansion into tier-2 and 3 cities. •
For a number of wellness players, over 50% of their new store additions, during FY
2013, have been beyond the top 15 cities.
100%
60%
80%
OTHERS
20%
40% TOP 35 CITES
TOP 4 CITES
TOP 15 CITES
0%
LARGE
SALON
SALON
PLAYER
PLAYER
7. BEAUTY CARE
A. Consumer spend on beauty care continues to be resilient, with a
marginal slowdown in value growth.
B. Within the cosmetic products segment, the hair and skin care sub-
segment continues to dominate the market. However, the share of the
colour cosmetics, fragrances and deodorants sub-segments have been
steadily increasing over the years and are expected to account for over
one-third of the total cosmetic products market by 2015.
KPMG BEAUTY & WELLNESS SECTOR REPORTKPMG BEAUTY & WELLNESS SECTOR REPORT
BEAUTY &
WELLNESS 2014
BEAUTY &
WELLNESS 2018
GROWTH RATE-
WELLNESS 2014
– 41224 CRORE
WELLNESS 2018
-80370 CRORE
20-23 %
10. SERIAL NUM. SALONS OUTLETS TONEOVER
1. AFFINITY 31 OUTLETS 5 TO 20 CRORES
2. GITANJALI 14 OUTLETS 5 TO 15 CRORES
3 TONY & GUY 8 OUTLETS 7 CRORES3. TONY & GUY 8 OUTLETS 7 CRORES
4. MONSOON 9 OUTLETS 4 CRORES
5. JAWED HABIB 12 OUTLETS 5 CRORES
6. LOOKS 7 OULETS 6 CRORES
7. B . BLUNT 3 OUTLETS 3 CRORES
8. METODO 1 OUTLET 2 CRORE
ROSSANO
FERRETTI:
9. CREME SALON 1 OUTLET 1 CRORE
11. Evaluating the current market situations is most helpful to understand
specific needs & wants of potential customers . How to serve them , how
to attract more market share & the leverage situation of salons .
TARGET MARKET FOR SALONS OR WELLNESS:
SALES 2013
CHILDREN
TEENS
YOUNG WOMEN
ADULT WOMEN
MENSMENS
12. POTENTIAL
CUSTOMER.
GROWTH RATE 2011 2012 2013
CHILDREN
( TO YEARS )
1.05 % 4.23 % 3.33 % 4.00 %
( 3 TO 12 YEARS )
TEENS
( 13 TO 19 YEARS )
2.38 % 12.33 % 12.34 % 12.54 %
( 9 )
YOUNG LADIES
( 20 TO 30 YEARS )
4.27 % 55.45 % 53.78 % 55.89 %
ADULT WOMEN
( 30 TO 50 YEARS )
3.38 % 22 65 % 25 .45 % 23.65 %
( 30 TO 50 YEARS )
MENS 2 29 % 4 56 % 5 33 % 4 45 %MENS
( 21 TO 55 YEARS )
2.29 % 4.56 % 5.33 % 4.45 %
13. IN THE MARKET ANALYSIS FOLLOWING FACTORS INVOLVED :IN THE MARKET ANALYSIS FOLLOWING FACTORS INVOLVED :
1. GEOGRAPHIC :
Th i di t hi t t i th D lhi it & ti l it lThe immediate geographic target is the Delhi city & national capital
region with the total population of 2.17 cror .
The geographic radius is 45887 sq . km .
Total targeted population is 10000 per year .
Delhi is having second largest population after tokiyo .
2. DEMOGRAPHIC :
CHILDREN TEENS YOUNG LADIES ADULT LADIES MENCHILDREN , TEENS , YOUNG LADIES , ADULT LADIES , MEN
14. SERIAL NUMBER AGE DEMAND
1. CHILDREN 1%
2. TEENS 14%
3. YOUNG LADIES 25%
4. ADULT LADIES 55%
5. MEN 5%
15. Delhi & NCR population is 2.17 crore which can divide into two
i i & lit igroups - price conscious & quality conscious.
High net inviduals (HNI) who are the prime consumers of all retail
sector will going to increase 3 times till by 2018 with annual rate of 8.8
percentpercent .
Marketing strategy should focus on price conscious & quality
conscious. Example- cell phones, pvr cinema & salons.
Women should be the centre of target in wellness field .Women should be the centre of target in wellness field .
The young women & adult women who are employed , belong to well
do families & engaged in higher education played more attention to
their beauty & wellness work .
Teens can also be targeted if the service trendy , fashionable &
convenient .
Men & children were now booming like a new sector with a hight
d d ldemand value .
16. COMPANY OR HOST IF UNDERSTAND HOW CONSUMER WILL RESPOND TO PRODUCT OR
SERVICE, PRICE, ADVERTISEMENT & YOUR PROMOTION ACTIVITY WILL CREATE A GREAT
ADVANTAGE OVER YOUR COMPETITIOR.
A. INDIAN CONSUMER MARKET IS 100 MILLION $ WORK WHO CONSUME 1 TRILLION$
GOODS & SERVICE.
B. REALATION SHIP BETWEEN MARKET & CONSUMER. .
CUSTOMER MARKET
17. MARKET OTHER BUYINGMARKET
STUMULI
E E
OTHER
FACTOR
E
BUYING
DECISION
T E• SERVICES
• PRODUCTS
• PLACE
• ECONOMIC
• POLTICAL
• CULTURAL
• PRODUCT CHOICE
• BRAND CHOICE
• DEALER CHAINL CE
• PROMOTIONS
CUL U L
• TECHNOLOGICAL
E LE C N
• SERVICE OR
PRODUCT
HISTORYHISTORY
• PRICE
18. PROBLEM OR NEED OR DESIRE- BUYING PROCESS
STARTS WITH IT.
INFORMATION GETHERED
EVALUATION OF ALTERNATIVE
PURCHASE DECISION
POST PURCHASE BEHAVIOUR
19. CULTURAL SOCIAL
PERSONAL &
CULTURAL
• SOCIAL
• SUB CULTURAL
SOCIAL
• ROLE MODEL
• FRIENDS
PHYSICOLOGICAL
• AGE
• LIFE CYCLE
• FAMILY
• REFRENCE GROUP
• SOCIAL WEBSITES
• OCCUPATIONS
• ECONOMICS
• LIFE STYLESOCIAL WEBSITES LIFE STYLE
• PERSONALITY
• SELF CONCEPT
• MOTIVATION• MOTIVATION
• PERCEPTIONS
• LEARNING
BELIEF• BELIEF
20. 1. STRENGTH
Good relationships with the employees .
Good relationships with customers.
Flexibility of new services.
Attractive prices.
Employees should have more than 5 year of experienceEmployees should have more than 5 year of experience.
Use of new technology , instruments & products.
Good customer loyalty.
2. WEAKNESS
Poor development stretgy.
Huge expenditure.
Poor marketing stretegy.
Huge rent , water & electric cost.g ,
Lots of competitor.
Untrained or less educated employees .
Huge running cost.
Depandency on season arrival.
21. Events like wedding asia , vivha & other competitions or exebitions provide more
t th ll i d texposure to the wellness industry.
More & more tv commercials , education magazines , news channels were focusing on
wellness & salon industry.
Foreign wellness companies also investing in the wellness market.
Metro politician cites were giving good platform to the wellness & salon industry
4. THREATS
Increasing competitions.
increasing government taxes.
increasing cost of equipments & cosmetics.
technology changement everyday.
22. MARKETING IS ART AND SCIENCE OF
FINDING, RETAINING AND GROWING THE
PROFITABLE CUSTOMER…
A. MARKETING CONCEPTS STARTS WITH 5 STAGE FORMULAS.A. MARKETING CONCEPTS STARTS WITH 5 STAGE FORMULAS.
B. 1 TO 3 STAGES ARE MEANT JUST TO UNDER5STAND CUSTOMER
NEED & VALUE.
C 4 TH STAGE IS MEANT TO CHANGE THE CUSTOMERS NEED ANDC. 4 TH STAGE IS MEANT TO CHANGE THE CUSTOMERS NEED AND
HIS/HER VALUE INTO HER WANT.
D. 5TH STAGE IS MEANT FOR CUSTOMER RELATION MANAGEMENT.
23. MARKETING CONCEPT
CAPTURE VALUE FROM
CUSTOMER TO CREATE PROFIT
& EQUALITY .
UNDERSTAND THE BUILD A PROFITABLE
MARKET, NEED & WANT OF
THE CUSTOMER
RELATIONSHIP & CREATE
CUSTOMER DELIGHT .
DESIGN A CUSTOMER DRIVEN
MARKETING STRETGY
CONSTRUCT A INTEGRATED
MARKETING PROGRAMME
WHICH SUPPORTS CUSTOMER’SMARKETING STRETGY WHICH SUPPORTS CUSTOMER S
NEED’S & COMPANY’S TARGET .
24. NEED FOR WANT FOR DEMAND FORNEED FOR
SALON
SERVICES
WANT FOR
SALON
SERVICES
DEMAND FOR
SALON
SERVICES
26. A. MARKETING APPROACH…A. MARKETING APPROACH…
CUSTOMER FOCAL POINT .
CUSTOMER RELATION MANAGEMENT .
INTERRELATED MARKETING APPROACH-CUSTOMER +
ORGANISATION
ANALYTICAL APPROACH
STAFF MIND SET TEAM ORIENTEDSTAFF MIND SET- TEAM ORIENTED
LIFE TIME VALUE
27. B.RELATIONSHIP MARKETING
A. TRUST BETWEEN CONSUMER & HOST SHOULD BE EMPHASISED
B. HARD & SOFT BOTH MARKETING STRATEGYB. HARD & SOFT BOTH MARKETING STRATEGY
C. HARD SKILL- OUTLET,TECHNOLOGY,INTERIORS,STANDIES
D. SOFT SKILL- INTERELATION BETWEEN SALESPERSON &
CUSTOMERCUSTOMER.
C. INTERNAL CUSTOMER CARE (EMPLOYEES)
A. FRIENDLY & COOPERATIVE STAFF MEMBERS
B. MUTUAL COUTESEY & RESPECT
C STAFF SHOULD BE EFFICIENT FRIENDLY& INTELLIGENTC. STAFF SHOULD BE EFFICIENT,FRIENDLY& INTELLIGENT
D. CARRE & CONCERN
E. PLEASEANT APPROACH
F. EXPECTATION BEING TAKEN CARE
28. A. PROMOTIONA. PROMOTION
Promotion is an activity directly concerned with
the product. Promotion should inform thep
customers of the establishment, make them aware
of existence, persuade them to buy and convince
h f h i d li f h d hithem of the image and quality of the product. This
is done by way of:
PERSONAL SELLINGA. PERSONAL SELLING
B. ADVERTISING
C. SALES PROMOTIONS
29. A. PERSONAL SELLING
Personal selling is doe through contacts with local organization and committees, or more
Directly through the restaurant staff taking to guests. All employees who are in contact withy g g g p y
the customer must be made aware of the importance of selling the products to increase profits
and provide a satisfactory experience for the customers.
B. ADVERTISING
The medium used for the advertisement may beThe medium used for the advertisement may be
television, radio, newspapers, magazines, internet, pamphlets, static poster
sites, sponsorship, cinema and direct mailers. The selection of the medium depends on the
budget and the target audience. Advertising should convey messages which influence customer
behavior. Advertisements should convey and result in:
A. an immediate increase in sales
B. awareness of the existence of the establishment
C informing the public of the name and location of the establishmentC. informing the public of the name and location of the establishment
D. telephones and faxes of the establishment
E. timing and dates of operation
F. style of food and drink offered
G. whom to contact for what
H. advertising messages should define and clarify
I. menu offering
J. target customerJ. target customer
K. media types to reach target
L. timing of the advertisement
30. C. SALES PROMOTION
Sales promotion is a day to day operation relating to discount offers, price reduction andy y g
Special offers. They are designed to appeal to a certain section of the market or the target
Audience. Food festivals, for example, are held to promote cuisine and beverages of a
particular region or country. A theme promotion may help the business and promote sales by
way of volume of sales increased during off peak periods by attracting new customers gainway of volume of sales increased during off-peak periods by attracting new customers, gain
publicity in local media circle, and stimulate and regular groups.
D. OTHER SOURCES
New strategies like internet and environmental marketing are emerging as key
components of any successful restaurant like:-
1. CREATE A WEBSITE.
More and more, consumers across the nation are turning to the Internet to decide
where they will have their services. If salon does not have its own website, it may
lose a lot of potential customers.
2. HOST EVENTS
Turn store into a venue for community and family gatherings, parties, familyTurn store into a venue for community and family gatherings, parties, family
function and other events. This will help you to attract new customers and give your
regular customers a reason to keep coming back.
31. 3. TRY UP-SELLING
Increasing the average check size at store is one of the smartest ways to improve
profits. By teaching servers or cashiers to read the customer and suggest appropriate
services & products , it will simultaneously increase sales and improve the customer
experience.
4 . PROMOTE THROUGH EMAIL.
Wh d ith di t il k ti il k ti i f t dWhen compared with direct mail marketing, email marketing is faster and more
efficient, saves paper, reduces marketing expenses and is more likely to convert to a
sale..Involve customers in a contest. Having customers sign up for a contest or
giveaway at your store is always a smart strategy It will help you build yourgiveaway at your store is always a smart strategy. It will help you build your
marketing database, and it will also give customers a reason to come back
5. DIGITAL MARKETING5. DIGITAL MARKETING
Digital marketing is new concept in order to reach new customer . Modes of
digital marketing are Mobile marketing , Sms marketing , Social media marketing ,
Apps etc .
33. In Delhi or rest part of India salon industry is keenly based on 3 sectorsIn Delhi or rest part of India salon industry is keenly based on 3 sectors :
Beauty ,
Hair
Make upsMake ups.
In India salon industry increased its tone over during the wedding season which
starts from October to till end of April of next year . In these 6 months salons gains
most of the profit In order to understand this we have to see the info graphic of weddingsmost of the profit. In order to understand this we have to see the info graphic of weddings,
which clearly show why salon industry gain most of its profit during wedding season time .
INFOGRAPGIC
INDIAN
WEDDI
NG
INFOGRAPGIC : NG
INDUST
RY SIZE
– 15000
CRORE COST
ON PER
1
CRORE
INDIAN
WDDINGS
WEDDI
NG – 5
LAKHS
TO 10
CRORES22%
PERCENT
MARRI
AGES
PER
YEAR
WEDDIN
G
INDUSTR
Y
GROWTH
RATE
35. In the and we can come on one conclusion inIn the and we can come on one conclusion in
India salon & wellness industries is at it’s
booming stage. With this present scenario we
can come on one estimation that wellness going
to be emerge as a revenue generating & cost
ff ti t ith 18% th teffective sector, with a 18% growth rate.