A Cut Above Hair Design

A Cut Above Hair Design In November 1990, Carolyn Kimball, owner of the "A Cut Above Hair Design" beauty salon in Wolfville, Nova Scotia, was undertaking an extensive review of her firm's marketing strategy. The industry data before her indicated that small, privately-owned beauty salons like hers were progressively losing ground to a growing number of national franchises. Furthermore, according to the most recent figures provided by the Nova Scotia Association lastof Hairdressers, there were almost twice as many beauty salons per thousand residents in Wolfville as compared to the Halifax-Dartmouth area. In other words, Wolfville had become a very competitive market. In order to deal with these new challenges, "A Cut Above Hair Design" needed to capitalize on its streng th and develop a strong positioning strategy. Background Born in Windsor, Nova Scotia, Carolyn went to Hants Regional Vocational School where she graduated as a master hairdresserin June 1982. She started her career working for Girl Power, a small beauty parlour in Wolfville, NS. This case was prepared by Professor Helen Mallette of Mount Saint Vincent University for the Atlantic Entrepreneurial Institute as a basis for classroom discussion, and is not meant to ilustrate either effective or ineffective management. Copyright 0 1993, the Atlantic Entrepreneurial Institute. Reproduction of this case is alowed without permission for educational purposes, but all such reproduction must acknowledge the copyright. This pemission does not include publication. With experience came the desire to startand operate her own business. After many discussions with friends, workmates, and acquaintances, she finally decided to open her own beauty salon. Three of her workmates decided to follow her in this new venture. Having worked with Carolyn for almost six years, they knew that they would getalong very well. As far as risk was concerned, they trusted that their regular clients would follow them as long as they stayed in Wolfville. "A Cut Above Hair Design" opened in November 1987. The new venture was profitable from the start. Most of the regular clients followed their hairdressers. The salon managed quite well and reached profitability within three months. Business grew steadily with another full-time hair stylist being hired. The Customers "A Cut Above Hair Design" catered mainly to clients from Wolfville, with a few also coming from Grand Pre (10km away) and Greenwich (3km away). In the summer, the salon drew from to urists and during the school year, it attracted students and professors from Acadia University, located in the town. It was a family beauty parlour servicing a clientele made up of 70% females and 30% males. Students represented about 10% of the total clientele. Exhibit 1 summarizes the average client retum by age group. The Service "A Cut Above Hair Design" offered a full range of services - colouring, perms, etc - but its major drawing card was customer service. Each customer was warmly greeted and offered a cup of coffee while waiting. Special attention was provided to seniors. Every effort was made to make them feel as comfortable as possible. Children were offered candies and were provided with to ys while waiting. Appointments were scheduled to minimize customer waiting time. For more convenience, the salon was open six days a week as well as Tuesday, Thursday, and Friday evenings until 8.30. The salon also serviced one nursing home in town: