AMB207 Assessment 2

Client Case Analysis – Bang Bang Hair

Fabian Valado
N9875026

23/09/18

Word count: 1854

Table of contents:
1.0 introduction
1.1 industry Analysis
1.2 PESTE Analysis
1.2.1 Political
1.2.2 Economic
1.2.3 Social
1.2.4 Technology
1.2.5 Environment
1.3 4C’s applied to the hair dressing industry
1.3.1 Content
1.3.2 Conduit
1.3.3 Consumption
1.3.4 Convergence
2.0 Key Opportunities
2.1 Strengths and weakness’s
2.2 Threats and opportunities
3.0 Ideas for future development
3.1 Recommendation 1
3.2 Recommendation 2
4.0 References
Exec summary:

This analysis looks at the hairdressing and hair care industry and how entertainment
marketing can apply to Bang Bang Hair. The industry is a growing and expected to
rise due to the popularity of social media and fast paced fashion trends. The industry
is in a good spot due to even economic recessions people will still need their haircut.
The product is seen more as just a haircut but an experience and part of their
individual personality. Australia is a supporting country with a growing population
that sets a fair and supportive backdrop for business to strive. The recent trend for
youth and health among the oceanic area has opened up new products to the public
that is seen to be good for them. Bang Bang Hair takes advantage of the 4C’s
applying how content is seen and moved among the consumer base. The company is
strong in personality and an engaging atmosphere but lacks prime real estate and a
strong social media backbone. The recommendations focus on the development of
the brand image incorporating beverages such as kombucha and organic wine to
create conversation, word of mouth and a sense of health. The 2nd recommendation
is about building the elder generation market and using elder people as models for
the social media content, so they may too see the end results and feel youthful.
1.0 Introduction
The haircutting industry is an integral part of fashion and societal norms among the
world. Different styles of haircuts are based off the surrounding culture, some
haircuts are intended for fashion and ego purpose and some can be an integral piece
of business work life. Haircuts can represent a person and is an extremely personal
experience which makes it as a product so powerful. The industry has a wide reach
and is mandatory among social circles to always get your hair cut.

1.1 Industry Analysis

Hairdressing and barber franchises is a steadily profiting industry with small growth
over the years in Australia. It will “grow at an annualised 1.4% over the five years
through 2017-18, to be worth $323.3 million.” (IBISWorld, 2018) This industry is also
linked to the haircare industry involves both styling and selling of products. In
Australia this industry is worth over $830 million dollars with an expected growth of
11% by 2022. (MarketLine, 2018). With over $1 billion dollars pumped into the
industries in Australia, it is a foundation among many Australians budgets. A power
behind it is how the product requires emotional investments by the consumer and
even in times of economic recession it is still a mandatory product for most to use
their disposable income on. The market is also highly competitive and requires a
loyal customer base, an accessible location and point of difference to strive in the
industry. (IBISWorld, 2018) Haircuts though a mandatory good in a sense to most
consumers can also be classified as a luxury good. Ranging from $10 to $100+ with
the perception that the more you pay the higher quality you receive boosting your
social standing by committing to certain fashion trends involving hair care. Bang
Bang Hair fits in the luxury good curve of the industry, reliant on a specific audience
with the right disposable income to afford it regularly. The core market for this good
is 18+ females who fuel this part of luxury hair care. (IBISWorld, 2018) Deception Bay
where the business relies has a lower disposable income and lower paid job
residents with over 20% classified below associative professionals This area also has
a 55% male to 45% female ration residing there with an average income of $34 000.
(Australia bureau of statistics, 2018)
1.2 PESTE Analysis
1.2.1 Political
Australia has been ranked 14th out of 190 in World Bank’s doing business 2018
rankings (World Bank Group, 2018) supported by a representative government
parliament system. With strong trade reputations with surrounding countries.
Australia has worked to set up free trade laws and export/import practices with
surrounding countries to create a free trade market. The government also in places
basic work health safety acts and regulations that must be met to conduct business
in Australian borders.

1.2.2 Economical
Brisbane has an average GDP per capita of $51 706 with a small projected growth by
1% to 2018. With a current population of 2.3 million people the unemployment rate
is shrinking, and transport system is being built upon to create more accessibility
among all neighbouring suburbs. (Market Line, 2017)

1.2.3 Social
The main demographic for the hairdressing industry is 18 – 60 year old females.
Susceptible to seeing hairdressing as a luxury product willing to pay more for a
higher quality product. A current trend among oceanic area is push for more
health/beauty living, a focus on longevity and healthy eating which is expanding
those industries in Australia (Lee, 2017)
1.2.4 Technological
Rapid expansion of mobile services has a created a new system of communication
with social media, becoming one of the engaging markets to the consumer. The
ability for user generated content which creates a lot of noise. Growth of sites such
as Instagram, snapchat and Facebook has allowed fashion/hair care trends to
normalise overnight. (Shanti, Thiyagarjan, Naresh 2014) This has also brought to light
a mix modern science and hair care to create powerful products that emphasis on
health and beauty.
1.2.5 Environmental
Australia has a high abundance of natural resources and was rated in environmental
performance index 21st out of 180 countries a study by tale and Columbia university
(Market Line, 2018). The public has a strong alignment with recycling and healthy
alternatives for the government shown with recent plastic bag bans.

1.3 4C’s applied to the Hairdressing industry

This part of the analysis focuses on what Bang Bang Hair and their retrospective
industry utilises the entertainment marketing frame work.

1.3.1 Content
Content is formed through social media posts generating word of mouth by
showcasing the final product. Digital pictures of consumers after the haircut allows
other consumes to have a hedonic experience and imagine the product on
themselves. Another form of content is the use of latest products and methods to
treat the hair by creating new experiences. This can also be applied the environment
and atmosphere of the shop itself in which how engage the consumer is with the
product.

1.3.2 Conduit
Content is being delivered to consumer through social media posts such as
Instagram/Facebook/twitter by showcasing the final product done to a consumer.
This serves as a form of user generated content by the consumer or the business to
the public. Online website promotion is also a key content driver with advertises of
both price, product and advertisement. On site location is key to all salons as it
servers as real estate advertisement and creates the atmosphere for the experience
of getting a haircut at that business.
1.3.3 Consumption
Consumption from social media is done by word of mouth and user generated
content which is one of the most powerful form of marketing communication.
Though consumption also crosses over to the hair cutting process. By the experience
before/during the haircut, the wait for the hair and the post discussion. Each
consumer gets a haircut to improve their self-brand image and how they consume
the experience and final product will be end with the result of being a repeat
customer or moving to another business.

1.3.4 Convergence
With traditional media showcasing products of hair care it is too highly produced
consumers can see them as fake. With social media this allows for direct proof and
an accurate representation of the product. This also allows trends to globalize
overnight allowing both consumer and the industry to benefit.

2.0 Key Opportunities

Strengths and weakness’s represent the internal resources Bang Bang Hair has
control over which can either be a strength or weakness. Whilst opportunities and
threats represent external factors out of their control that may influence or threaten
the business.

2.1 Strengths and weakness’s

Strengths:
- Single staff member to allow for quick changes to products to incorporate
trends faster.
- Highly personal experience.
- Cater to consumer needs and desires.
- Engaging interior space
- Up to date on current trends & technology
- High quality website and engaging content
Weakness’s:
- Location of business has a low traffic flow for onsite advertisement, due to
being in a colder sack suburb.
- “home” set up can be perceived as low quality.
- Low Instagram/Facebook reach.
- 1 employee, if unable to attend work the business won’t profit.
2.2 Threats and opportunities
Threats:
- Highly competitive market
- Ever changing health regulations may restrict the use of certain
products/methods in Australia.
- Business located in a lower socio-economic area
Opportunities:
- Growing population in Brisbane
- Trend towards health & beauty is prominent
- Booming population of retired/elder people in Brisbane.
- Rising use of social media and influencers

2.3 Industry Trends

With the growth of social media, it has a created a new age of business, allowing
small business that can’t afford traditional media to take advantage of the new
digital tools. Hairdressings is an established industry which has always been an
experience which offers a product that connects with that individual. Social media
has birthed social influences, these individuals can reach their following and
influence them into products and in some cases create trends. This creates a cycle of
word of mouth which is one of the most effective forms of marketing at the
moment.

Another trend among the oceanic area is a movement for beauty & health. It is
predicted that salons that specialise in organic cosmetics and treatments are
planned to grow rapidly over the next 5 years due to the nature of this trend. “health
consciousness has risen among the Australian public, salon clients have increasingly
sought treatments with less harmful chemicals and more natural ingredients.”
(IBISWorld, 2018) Consumers are on the look out for effective organice treatments
to boost their self image with cosmetic and beauty services.

A growing older population is a key market within the beauty and hair care market.
Human beings want to preserve their youthful ness and this directly targets ego
driven consumers. This ties in with the previous trend allowing, older consumers
have a demand for treatment that revitalises their youth.

3.0 Ideas for Future Implementation and Development

3.1 Recommendation 1
The first recommendation is to build upon the bang bang hair brand image by
reinforcing healthy and beauty into the firms message. This start by including
beverages into the experience, unlike the modern trend of barbers serving beer.
Bang Bang Hair will serve kombucha or organic wines, latest drink phases that can
appeal to this audience and build on the experience. Taking a look at kombucha as a
product it is predicted to grow to a $4.6 billion dollar industry by 2024, (IBISWorld,
2017) though the drink may go out at style. It’s the idea of keeping up with current
product trends to improve the experience that this recommendation is based off.
This also allows for more content to be posted on social media by the inclusions of
these drinks for advertisement, by building on the Bang Bang hair brand image with
the message of health and longevity. A small simple change that will allow more
organic content growth and word of mouth. Creating hedonic experiences so that
the consumer feels great during the hair cut can lead to upsell opportunies on more
goods for the beauty services. (Nacef, 2005) Bang Bang hair offers luxury hair cuts
and improving on the satisfaction of the experience can lead to positive post
purchase behaviour which can create brand loyalty and create word of mouth

3.2 Recommendation 2
The final recommendation is to involve the older female market 40+ year old into
the social media content creation especially targeting Facebook. The elder market is
one that has the most disposable income and time, and hairdressing & beauty
services directly targets the want to feel young. By increasing the product line to
include services catered for the elderly and posts that show elder woman services.
Advertising these on Facebook, directly targeting this market advertising an
entertaining and youthful experience to these consumers. This paired with the
already current market of younger woman, when the older clientele go through the
social media they can see both generations of woman benefiting from Bang Bang
hair services. This will emphasis both brand loyalty & engagement, by conveying the
message that this experience is also available for the older generation.
4.0 References
IBISWorld, 2018. Industry performance – Hairdressing and barber franchises.
Retrieved from
http://clients1.ibisworld.com.au.ezp01.library.qut.edu.au/reports/au/industry/atagl
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MarketLine Advantage, 2018. Haircare Global Industry Data. Retrieved from

https://advantage-marketline-
com.ezp01.library.qut.edu.au/Product?ptype=Data&pid=ML00029-036

Australian bureau of statistic, 2018. National Regional Profile: Deception Bay

(Statistical Local Area). Retrieved from
http://www.abs.gov.au/AUSSTATS/abs@.nsf/Previousproducts/305205039Economy
12004-2008?opendocument&tabname=Summary&prodno=305205039&issue=2004-
2008

World bank group, 2018. Economy Rankings. Retrieved from

www.doingbusiness.org/reports/global.../~/.../DoingBusiness/.../DB18-print-report.pdf

MarketLine Advantage, 2017. Brisbane - city profile. Retrieved from https://advantage-

marketline-com.ezp01.library.qut.edu.au/Product?ptype=Cities&pid=ER0056CP

Lee.x.w, Passport GMID (2017) Up and coming packaged food & health trends in Asia
Retrieved from Euromonitor Passport database

Shanti.P, Thiyagarjan.S, Naresh.G (2014) Celebrity Endorsements: a winning

stratagem or double edged sword? Journal of marketing vistas retrieved from
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Market Line Advantage, 2018. Country analysis report: Australia, in-depth PESTLE
insights. Retrieved from https://advantage-marketline-
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Nacef. M, 2005. A consumer -based assessment of alliance performance: An

examination of consumer value, *satisfaction and post -purchase behavior.
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IBISWorld, 2018. Hairdressing and beauty services – global trends. Retrieved from
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