The Canadian Beauty Industry: An Overview and Analysis of External Factors

LePetomane Personal Care Products

Part 1

Hedley Lamarr was recently hired into an entry level sales role with LePetomane Personal Care Products (LPCP). LePetomane is a manufacturer of personal care appliances (not cosmetics) including hair dryers, curling irons, facial cleaning aids, steam moisturizers and many others. LPCP supplies both the professional market and the consumer market with their wide range of products. Their equipment ranges in price from budget (or value) priced models to high end high quality "professional" models.

LePetomane is now launching a new line of "ultra-energy efficient", environmentally-friendly, professionally targeted products. These products consume 50% less energy and are made from recycled materials.  LePetomane also offers a lifetime "take-back" program, where they will take the appliance back after its useful service life is over (approximately 10 years) and they will dismantle and 100% recycle all components of their products for reuse in new products.

Hedley was hired after a more senior salesperson, Olson Johnson, retired after a long and successful career in the industry. Hedley was assigned her first sales account: Von Shtupp Spas Inc. (VSSI). VSSI was one of Johnson's few career disappointments, after many years of trying Johnson was never able get a sale at this account.

VSSI operates a chain of spas and beauty treatment facilities across Canada in almost all major and minor cities. The venue sizes range from 493 smaller traditional hair and manicure style salons to 18 larger full "day spa" type locations, marketed to consumers as "Rock Ridge Spas" that offer similar services to the salons, plus additional services like massage, mud baths, holistic healing and wellness programs and more. The salons and spas cater primarily to professional working women who want beautiful results at a reasonable price and in the case of the spas, want to be luxuriously pampered while there.

As a recent Ontario college graduate, Hedley was well schooled in the importance of understanding customers and the factors that can affect their buying decisions. Based on what she's learned in Johnson's files, she believes that the timing may be right to target VSSI for a sole source supplier contract, supplying them with the entire range of professional products they might use. This may be upwards of $5 million in the first year and additional ongoing sales after that.

Prior to contacting VSSI, Hedley is planning on conducting internet research on the beauty industry in Canada to help her better understand some of the factors external to VSSI and that may be influencing them and may affect their purchases of personal care appliances in the future .

New Environmentally-friendly products from LPCP

Part 1 Questions

1) Place yourself in the role of Hedley and conduct internet research on the beauty industry as it currently exists in Canada. Consider all the various external factors reviewed in Module 3 that may affect the industry and indicate whether you feel these will affect their purchasing decision at this time and why or why not?

External Factors Include:

Environment Factors

1. The current economy and future expectations

2. Interest Rates

3. Technology

4. Government

5. Competitors

Organizational Factors

1. Organizational Philosophy and objectives

2. Organizational Policies and Procedures

3. Purchasing process

4. Product or Service User

5. Decision Influencer

6. Deciders

7. Gatekeepers

Note:

1) Since you do not have any detailed Organizational Facts or information on VSSI, such as corporate polices etc., please do not consider these factors.

2) You are expected to do real life research on the external factors. For example:

· Google what interest rates are actually projected to do in the future. Do not just restate what the module tells you about why interest rates are important.

· Google what LPCP competitors in the personal appliance industry are doing that may affect their selling proposition.

Your answer should clearly note the external factors that might affect business buying decisions for these products and whether you think they will affect VSSI's buying decisions.  If yes, how might it affect their decision, positively or negatively?

For example:

Interest Rates - Source X (MLA citation) indicates that interest rates in Canada are expected to XXXX over the next 6 to 12 months. Based on the information presented in the case, I think this change will result in VSSI _______ a purchase decision because the [increase / decrease] in interest rates will make the products [more / less] affordable for VSSI

Competition - "Competitor X's" website indicates that they are launching a similar product to the LPCP hair dryer.. LPCP & VSSI Case

Part 2

During her college tenure, Hedley took an amazing course on Sales & CRM. That course taught her how strong and effective B2B marketing assists sales efforts. It creates awareness of a company’s products and services for potential customers making the selling process smoother and faster.

LePetomane has never undertaken any serious B2B marketing to support their sales efforts but company President and founder William LePetomane has been convinced by this bright young salesperson that their new line of products may be just the time to start B2B marketing.

Based on this, VP Sales Tony Fu has asked Hedley for a recommendation of options and approximate costs of various awareness tools that she thinks would be appropriate to target the spa / hair salon / beauty industry in Canada.

Part 2 Questions

2) Conduct original real-life internet research on the spa / hair salon / beauty industry in Canada and create recommendations for B2B marketing efforts that would support sales.

Identify at least 10 options for B2B marketing in the spa / hair salon / beauty industry in Canada only (not in the USA, globally or in Europe) based on what you learned in Module 4. The option must be ones that a personal beauty appliance maker could use to create B2B awareness of their products.

Hint: Internet, social media, mass media, magazines, industry publications, direct mail, telemarketing, webinars, infographics, e-books, in-person events, email newsletter, blogs, trade shows etc.

For each option you should note:

· the approximate costs of the option (if available). Estimate costs only as best you can from publicly available data, if none is available note that (i.e.: you do not need to contact organizations to get cost information if they do not state it).

· who exactly is the option's target

· what is estimated number of businesses the option hits

See the fictional examples below. Please note: there is no requirement to prioritize the options, only identify them with above information.

Tip

1) Review the list of B2B marketing options from the module to guide your search.

2) Google topics like

" spa / hair salon / beauty industry trade shows in Canada"

" spa / hair salon / beauty industry magazines in Canada"

Answer example (not real):

1) B2B Personal care / beauty industry trade publications exist in Canada and I recommend LePetomane consider: