Scope and Delimitations

The study is focused primarily on the marketing strategies of the small

salons located at Malimgas Market Dagupan City to survive the competition

among other salons especially whole Malimgas Market. Malimgas Market was

chosen as the locale and focus of the study as it is one of the most known and

profitable salons even though the place is surrounded by competitors.

Furthermore, the respondents of the study were the owner and the employees.

Interviews were conducted to assess the business operations and survey was

utilized as a primary tool. Ethical considerations involved in disclosing sound

information about the establishment given during interview were greatly

considered.

The researchers concentrated on the demographic profile of the salons,

marketing strategies implemented to attract local customers, and how these

strategies affect the customer loyalty which were on the aspects of service and

price only for most of the salons in Malimgas Market. Focus on these aspects

when it comes to strategies employed.

The researchers did not look on the financial aspect, specifically on the

exact income and profit as they had also considered the confidentiality of the

said matter.

Significance of the Study

In this part, the significance of the study provides details to the reader

on how the study will contribute such as what the study will contribute and

who will benefit from it. It also includes an explanation of the work's
importance as well as its potential benefits. This study aims to benefit the

following clusters:

A.) Owner/Salon: This study aims to help the Owner/Salon to be responsible

for all their decisions in executing their strategies

This will help them to be conscious with the response of the customers or it

can help them to manage their service and price.

B.) Future Researchers: This study will serve as their guide and reference to

provide information for those who are planning to conduct a research study.

C.) Business Administration Students: This study aims to give them a better

understanding regarding different strategies of businesses through the broad

and different aspects of marketing.

D.) Customers: This study aimed to let the future potential customers of the

salons what service can they offer the best.

CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

This part of the study presents literature and related studies reviewed by

the researchers which have direct or indirect bearing on the study. The

conceptual and related literatures where taken from various sources guided the

researcher in the completion of this endeavor.

 Conceptual Literature

This chapter of the study contains literatures which were taken from the

World Wide Web and some published books. These materials form a part of the

bases of this research and were helpful in the enrichment and development of

the study.

Beauty Salon Industry in the Philippines

In the Philippines, everyone will notice that there are many salon and

spa all over the country. And what makes them important is they relieve stress

to every person who goes there and it gives a good feeling of relaxation

whenever you there. Most Filipino women are used to go on salon and spa to

pamper them from the stress that brought from the outside world, meaning

stress from their work, stress from their family, stress from their partners, and

stress for taking care of their children and people around them. So for Filipino

women, one of the ways that let their stress fill out is to do what they think

they can make them happy.

A beauty salon has a large impact on Filipino people because it gives

satisfaction and relaxation to the person who used to go to the salon and make

some treatment to themselves. In the Philippines, all beauty salon and spa are

continued to give a better service to all people. It also improves the health of

each individual to be more conscious of their outside beauty and at the same

time to their inner beauty and good health of their body. A beauty salon helps

every woman to make beautiful and to feel beautiful. Here in the Philippines,
the beauty service industry continues to increase and has a lot of competition.

You can see many salons in every area of the street and every corner here in

Manila. Because of technology advancement, many Filipino starts to open a

beauty salon because it is now an in-demand business. Almost all Filipino

people especially women are in the salon every week to pamper themselves.

A salon has a different treatment to serve and a Filipino business who

want to open a salon and focus only in one kind or types of services like a hair

salon, spa salon, and skincare salon and a lot more. But many beauty salons

that can give all the service are owned by the expert in the world of beauty

cosmetics, products, and services. At present, the culture change and the

growth and thinking of all Filipino also change. All of us want to stay up to

date with the latest trends and techniques of what is good and better.

Somehow a beauty salon has a big part in the life of Filipino because all of us

wants to improve each self and each personality through the help of the latest

technology and the use of it. A beauty salon has also a modern way on how to

give a good service to the client, they have a modern product that usually uses

for the treatment, they have also laser equipment that is the modern way on

how to serve the skin and body of the client. Some salon has also a have a

heavy duty hydraulic machine. (Manila Bulitten, 2013)

Products and Services Offered by Beauty Salons in Philippines

 As of 2019 the trend for salons to be booth rental locations means that

the services offered are never ending. According to (Shelton 2000), there are no.

of services is offered in a salon are following:

1. Haircuts for all ages: The best hair and makeup salons will make

their services available for all ages so that customers can get an excellent

haircut. Men, women, and children can all benefit from a quality style because

it will boost self-esteem and keep your locks healthy

2. A range of makeup services: To ensure a customer can get a

complete experience when they visit the salon, check out the makeup services

and see what the salon offer. The best makeup and hair salons will provide a

full application, lessons, and airbrush, as well as a few other helpful options so

that their customer looks really beautiful at their absolute best.

3. As much (or as little) coloring for hair as needed: If a customer

requires color services, then they know how essential upkeep is and that they

have a variety of options to choose from at different price points. Partial

highlights, all over color, and corrective services will open up their selection of

styles so that they get the look they want and don’t have to settle for anything

less.

4. A few extra helpful services: Customers should be sure they’re

looking at the extra hair services so that they can utilize these when they want

to take their look to the next level. Communicate with the stylist and makeup
artist about their particular goals, and they’ll be a big help to guide the

customers toward the best options.

5. Nail Care: Traditional Manicures/Pedicures. Soaking, nail shaping,

cuticle care, exfoliation and massage, followed by a polish application are

included in the traditional manicure/pedicure service.

Marketing Strategies Employed by Beauty Salons

Customers have become the key to business growth and profitability.

Customer relationship marketing is one entity were the company continually

creates, maintains and develops. It helps the entities to understand the

customer needs and refocus companies’ strategy to serve customers better.

Developing is based on creating value for the customer, profitability of

relationship and the happiness of both parties. Marketing strategies is part of

customer relationship management. (Bergstrom & Leppäaen 2011)

Diversification is said to impact positively business survival probability

because it reduces the company’s variance of earnings. However, for small

firms the arguments favor a posited negative relationship, grounded on the

ideas that small firms’ economic viability depends on finding niche markets to

cater for through specialization and concentration of efforts, while avoiding

dispersing scarce resources out of the primary line of business on areas that

are not known nor well understood yet by the enterprise. (Barbosa, 2016)
The emphasis on reducing costs and improving productivity is discussed and

the question of whether such a policy is an effective way of preparing a

company for the future is asked.

Following a review of the strategic and innovation management

literatures, a different conceptual approach to generating business

opportunities is provided. Some observations on the limitations of too great an

emphasis on efficiency and several specific areas of further research are

identified.

There is a need for small software firms to strike a balance between

customer orientation and innovativeness in order to survive. In terms of

customer orientation, the findings show that it is not only related to customer

contacts and relationships, but is also about delivering on the promise. The

small firm's ability to achieve this is highly dependent on managerial style,

communication between the firms and their customers, business planning,

market research, promotion and firm culture.

Such a strategy goes beyond just survival. It transforms the conditions

that are creating chaos into new market opportunities. Since conditions or

occurrences that are creating chaotic shock waves in the market place are

becoming more and more common place, it is extremely critical that firms

develop counter chaos strategies for survival and profit.

Categorizing the problems and growth patterns of small businesses in a

systematic way that is useful to entrepreneurs seems at first glance a hopeless

task. Small businesses vary widely in size and capacity for growth. They are
characterized by independence of action, differing organizational structures,

and varied management styles. Yet on closer scrutiny, it becomes apparent

that they experience common problems arising at similar stages in their

development. (Innovation & Firm Survival in Start-Ups, Joseph Floyd 2010)

Unlike product retail, it's difficult for salons to be highly profitable with

walk-in business alone. Getting the word out about the business and starting a

buzz about stylists and product lines are key to building a salon's brand and

the following are the possible ways to achieve those:

Sell the Experience - whether the salon is stand-alone or attached to a spa,

business will draw new customers through the lure of a particular experience.

The website should feature high-quality images of the location, which are

inviting and promote the business' featured services. Appeal to the target

market: feature creative styles for a younger demographic and time away from

a busy life for mid-life professionals.

Focus on Customer Retention - A large portion of salon revenue comes from

repeat business. Stylists should provide new clients with the salon's card and

the stylists name so they can easily make another appointment. Keeping in

contact with customers through the use of an e-mail list, promotional cards or

a monthly newsletter is a way to ensure customers remember your location.

Incentives for repeat business, including discounts for subsequent visits or free

product after 10 cuts, are good ways to keep people coming back.
Encourage Word-of-Mouth Promotion- It's not unusual for women to go to

the salon together. If they come to the salon, that's two customers instead of

one. That's the idea behind a "Bring a Friend" promotion where a client gets 50

percent off their cut if they bring a friend, or gets 10 percent off for every friend

who comes to the salon and mentions the client's name. Tying these

promotions with full-priced sales ensures your customers get a bonus, but

your profit remains stable.

Partner with Other Businesses - Hotels near the location of salon might keep

the marketing material on-hand in case a guest asks for a referral to a local

stylist. Other businesses in the hospitality industry, including restaurants,

fitness and community centers might also have a bulletin board with

advertising from local businesses.

Encourage Product Sales Product- is a second revenue stream for salons

and is a useful strategy to get customers in the door and to spend more once

they are there. Advertise sales on products in combination with a service; for

example, 50 percent off a shampoo and conditioner combo with any cut.

Stylists can also contribute to this strategy during the cut by describing the

product they are using to the client and encouraging its continued use.

(Survival Strategies in a Challenging Environment, Betty Lum, 2012)

Research Literature
 This literature review begins with presenting some previous research

related to business operation and able to identify the relationships between

previous studies and current study.

Helping people feel good about the way they look by providing salon

services and products is key to running beauty salon business. Whether you

currently own a salon or want to open one, it is important to know where the

industry is headed over the next few years.

Small salons contribute heavily to the industry with the 50 largest

companies drawing just 15 percent of overall revenue. The target price and

clients of such businesses run the scale from high end, luxury service to

budget haircuts salons, so what segment of the Industry you target depends on

what you want to offer and if there's a market in your area for those types of

salons and products.

Researchers (Bourgeois, 1980; Chrisman et al., 1998; Covin & Slevin,

1989; D’Aveni, 1994; Gaskill et al., 1993; Keeley & Roure, 1990) affirmed that

the competitive environment within which the business operates plays a

significant role in business survival. There are several factors that would

determine industry attractiveness. This in turn has a bearing on how firms

within the industry should compete. Taken in context with entrepreneurial

abilities and organizational resources, the reaction to any change in the task

environment may again differentiate a successful business from an

unsuccessful endeavor.
 The later models that described key success factors for business survival

began to consider the macro-variables not within the control of organizations.

The rapid development in technology for instance has revolutionized how

businesses should be managed. Taken altogether, new theories emphasize the

fact that the business environment has become more competitive than ever.

According to Reyna (2013) on his study entitled “Business Operation of

Panaderia in Dagupan City” in order to improve the business, owners should

maintain a large number of customers, the managers of the company should

add up new products to afford customers. Price should be affordable the

customers and the place should be clean and pleasant for customers to avoid

negative feedback.

According to Rodas (2013) on his study entitled “Business Operations of

Yellow Tree Café in Dagupan City”, in putting up a business is not that easy

contrary to what offers think for the businesses should have a good marketing.

To attain its objectives and goals the management should formulate strategies

to be implemented.

Over the past three decades, there has been a great deal of interest in

using basic financial/business data collected on firms, typically by national

statistical agencies, to explore the topic of firm growth and survival. Academics

tend to view growth and survival as important because they want to

understand the reasoning and rationale for why those firms have superior

business performance and fit within the economic environment compared to

those that either do not grow or do not survive. (Floyd, 2016)

 The cosmetology industry has undergone a dramatic change (Madnani &

Khan, 2013). Hair has evolved from cleaning to increasing the follicle growth of

hair, stimulating the scalp, and decreasing oxidative damage to the hair

(Madnani & Khan, 2013). Entrepreneurs in the hair industry have created

innovative hair care products such as shampoos that are tailored to various

hair types or scalp conditions, for example, oily, dry, damaged hair, and itchy

scalp conditions (Madnani & Khan,2013).

The hair care industry has provided consumers with many products to

use for salon and personal use (Madnani & Khan, 2013). Some of the product

features still remain the same even in today's present days such as curling the

hair with rollers, hair sprays, gels, pomades, mousses, curling irons, waxes,

and sprays (Madnani & Khan,2013).

Synthesis

The previous researches presented are related to the present study

because they served as guidelines and references for the variables associated to

the assessment of the Marketing Strategies of Beauty Salons in Malimgas

Market in Dagupan City which are emplyoed to survive the competition in the

market. Through the information presented, the researchers were able to

comprehend the relationship with the present study.

Chapter III

RESEARCH METHOD
Research Method Used

Descriptive method was appropriate in this study because the

researchers pursued to discover the basic truths or principles behind the

study. It was utilized to identify, describe and assess the marketing strategies

of every salon in Malimgas Market particularly focusing on its price and

service. Descriptive design focuses on the present condition of finding the new

truth about the study.

Several definitions or purposes of descriptive research have been

identified in the literature, it is used to describe systematically and accurately

the facts and characteristic of a given population or area of interest; to provide

an accurate portrayal or account of characteristics of a particular individual,

situation or group; these studies are means of discovering new meaning,

describing what exists, determining the frequency with which something

occurs and/or categorizing information.

Descriptive design researches, consequently provide facts on which scientific

judgments may be based; provides essential knowledge about the nature of

objects and persons for closer observation into the practices, behavior,

methods and procedures. It is valuable for it needs a closer observation to

determine the marketing strategies as factor towards the success of any

enterprise or business. Furthermore, an interview was along with informal

interview was utilized as the main instrument to support and further verify the

information gathered.
Respondents of the Study

The researchers asked the permission of the management of the salon

about the Marketing Strategies of Beauty Salons in Malimgas Market in

Dagupan City and The operators of the salons are respondents of the study

and the source of information intended for this study. The researchers

gathered data through survey in order to determine the information regarding

the answers given by the respondent is a great help in the formation of the

study.

The researchers used the complete enumeration technique for all the

salons in Malimgas Market are willing to cooperate & participate in the study.

Data Gathering Instruments

The instrument used for the study is a survey questionnaire, constructed

by the researcher and validated by the adviser. The questionnaires were

constructed to obtain responses from the staffs, managers and owners of

Beauty Salons in Malimgas Market in Dagupan City. The draft of the

questionnaires was drawn out based on the researcher’s readings, previous

studies, and published and unpublished thesis relevant to the study.

The questionnaires consist of scaling question which are answerable by

Highly Implemented, Implemented, Somewhat Implemented and Not

Implemented. This type of scale responses does not always require a neutral

middle point, it is best to use an even number of responses for people and leave

out the neutral option.

 The questionnaire is divided into three parts. The first part of the

questionnaire survey is consisting of respondent’s demographic profile which

includes years of operation, the average number of customers they served as

per weekdays, weekends and holiday seasons and the training and seminars of

the staffs, managers and owners attended.

Second part focuses on marketing strategies as to price and service

which the salons are implementing in order to attract customers.