The experience of Redken customers

Abstract

This thesis handles strategic considerations for Redken, a L’Oréal brand which operates in the market of professional hair styling. It has a full portfolio for the practice of stylists. All products have a high quality, created through constant investment in research and development. Redken directly sells to stylists, by which it has a “business-to-business” (B2B) business model. As a result, little contact exists between Redken and the end-customer of the product. The only form of contact is by means of one-way communication: marketing. Redken produces many materials for in-salon use, created to stimulate product sales and strengthen the brand image. Due to the one-way communication with the customers, Redken lacks feedback. It has little knowledge on the in-salon experience of customers. Existing literature on in-store experiences and marketing provides useful knowledge. Firstly, full marketing support is important to make product launches become a success. Secondly, it is important to use customer segmentation based on the type of benefits sought by customers or purpose of their visit (either hedonic or utilitarian). Thirdly, loyalty programs can help create both brand as well as store loyalty. Furthermore, Redken needs to be aware of the importance of physical presence, either in visuals or in product display, communicating all its core activities and including its sponsorship of the Amsterdam International Fashion Week. Finally, be aware of the positive emotions enticed by free distribution of gifts or tools, and use these emotions to create possitive affect. Two consumer studies are used to gather input previously unavailable. The first study is a simulation of salon visits, through which input is gathered from 99 women. Each participant had her hair washed and had a scalp massage, the combination of which took 15 minutes. Participants were split in six groups, for each of which a different environment was created (two different locations, three different ways of decoration). After the services, they were asked to evaluate their experiences. The second study consists of two focus groups. From the discussions, several conclusions are drawn. Based on the outcomes of the two studies, recommendations are defined. Finally, this report is complemented by several examples of yet to develop marketing materials. Additionally, a concept brand plan is presented, combined with an implementation proposition for the marketing materials and several budgetary calculations.