Every successful business focuses on a certain demographic audience. This “target market” is a group of people that are united by certain traits, such as age, gender, or location. Defining this group is an important step in making a business plan, as it will determine how and where you should market your product or services.
Hair Salon Location
One of the most important factors in drawing customers to a hair salon business is location. Understanding the geographical location, and the people who reside within it, can make all the difference between a financial success and a miserable flop. For example, you likely would not want to open a family-oriented low-to-mid budget salon in an area mostly populated by young, trendy singles.
This is where you should direct most of your research. If you are set on serving a particular type of customer, you should spend time looking into locations where that type of customer would frequent. Likewise, if you are determined to open a business at a particular location, it would behoove you to discover who lives and shops in that area.
Research to determine a target market for a hair salon by location should include the following:
Housing – The type and cost of owned and rental property in the region can give you an idea of the type of income the average resident, and potential customer, would have.
Surrounding Businesses – Businesses that are already established in the area can help you determine what type of person already shops in the area. For example, a location near schools, family-oriented restaurants, and kid-friendly retailers would be receive more traffic from middle-class families.
People – Many business owners prefer to get to know their potential customers personally. In this case, you could visit local “hang out” spots to see what the typical local demographic is.
Defining A Market Segment
Try to define the location using two or three “segmentation words” to develop a target market profile. Segmentation words are simply words you would use to describe the local people and region. You can use these words to help create your marketing strategy and set the overall tone and theme for your business. Examples of target market segments for a hair salon could include:
Trendy, Status Seeking, Singles
Kid-friendly, Conservative, Families
Sporty, 30-50 year-old, Men
Defining your market segment in this way can help to keep your offered services, promotional materials, and the overall design of your salon attractive to the customers you want to draw in.
Using A Target Market To Determine Price
Of course, you want to turn your hair salon into a financial success. Defining your target market will help you determine what price you should offer your services for. A business that only offers low-budget or “value” services is unlikely to attract trendier, status-concerned customers with a higher disposable income. However, a premium salon in a middle-class money-conscious area is as equally unlikely to succeed. This is why determining your target market should come before you decide which services you will offer, and how much those services will cost.