The objective of this report is to launch the hairdressing salon Tchip in Australia. In France, Tchip is directed by Franck François and is part of the VOG group. Franck Francois is the founder of the concept of low cost hair salons and nowadays, Tchip is the leader in its sector. Its success is due to a simple concept - four different packages offered to the customers at low prices. If Tchip can afford to offer such prices, it is because in the hair salons there is no extra (as coffee for instance).Because of its strategy, Tchip succeeded in increasing rapidly the number of hair salons in France (from 141 in 2000 to 451 in 2011).
To launch Tchip in Australia, we have to take into account some factors such as the way of consumption of Australian people, the standard of living there, the average age (because Tchip primarily targets young customers), identify the needs of the customers. Moreover, we have to adopt the strategy according to the country but retain the idea of low cost concept. Then, we have to analyze how we want our total offering to be seen by the targeted segment. After that, we need to establish the marketing mix decisions we will follow, that is to say, how we will establish the prices according to what the investment will cost us, if we will establish promotions or not, how we have to communicate (what are the main communication ways in Australia).Then, after having presented this, we have to process the financial projections , explaining all the investments we need to launch Tchip and how we can make profits and try to achieve the results planned.
[...] In France and in many other democracies, social and ethical issues play a major factor due to the mentality of the Western societies and due to the high level of technological change. In other terms, the democratization has been finishing to promote the defense of social and ethical issues. For instance, everybody knows that the law of 1884 in France (which allowed unions) was one of the beginnings of the promotion of social and ethical rights. The creation of the industrial tribunal (conseil des Prud'hommes) and the creation of the social security show that France is attached to protect the social and ethical issues. [...]
[...] The idea was to make the hairstyle accessible for every women with minimum services, with only four packages (see II.1.a Strengths of the hairdressing salons Tchip ) 50 per cent cheaper than in other hairdressing salons but always a lot of professionalism. Many people didn't believe in the success of this concept, nevertheless between the creation of the brand and VOG banners have changed the name for Tchip And every year, there is on average 20 Tchip salons more. Besides, we can note two very important years regarding the increase of the opening of salons First in 2001. [...]
[...] Thanks to the power of VOG group (451 hairdressing salons all in all), suppliers as L'Oréal or Kerastase propose to this group minimum prices that are impossible to have for a freelancer worker. Finally, Tchip is able to offer such prices thanks to the way the employees are paid. In fact,, the director of tchip adopted a new kind of remuneration in the hairdressing world : the guaranteed minimum wage for everybody with the possibility to earn a bit more (between 15 and 20 per cent) if the output are high (this practical experience had been critisized by many people of the underworld). [...]
[...] Even if this phenomenon has known a success for 2 main reasons (the hairdressers at home are perceived as more professional, and their mobility attracts the customers) and has been increasing, this kind of trade runs up against limits Firstly, it only represents of all the offers that are done in the field of hairdressing So, that underlines the lack of trust that the customers show to the hairdressers who work at their client's home Moreover, the conditions of the work is a weakness that is a handicap for these hairdressers Indeed, the investment in the necessary equipment is limited and it harms the quality of the job. [...]
[...] Kerastase a luxury hair-care brand developed by “Recherche avancée L'Oréal” under the professional products division of the L'Oréal Group. Kérastase is distributed to high-end hairdressing salons , and also to Tchip, which can't be considered as a high-end hairdressing salon, (however it is not its objective.) but thanks to the notoriety of the VOG group which Tchip is member. We will keep these products in our in Australia because of the image of them in the sector of the hairdressing (image of prestige quality and luxury). [...]
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