Case Study: Eco

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Every business has challenges. For Salon Glow, these challenges were often overwhelming. High staff turnover, poor location, no web presence and poorly planned direct mail campaigns all contributed to a business that was losing money almost daily.

When the founding partners split up, the remaining owner, Nikki Toufeili, decided Salon Glow deserved one last push towards success. She called Fourword and gave us a budget and total creative freedom. The single goal was to get more people in the salon.

After a market analysis and internal marketing audit, we decide to totally create a new identity for the business. Salon Glow was out. Eco Studio was in.

The new name and logo were based on the fact that all the products used were natural. No harmful chemicals or dyes were used in any procedures. A full line of natural hair care products was also available for retail sale.

The interior of the salon was brightened up with new, energy efficient lighting. New signage was place above the entrance. And of course new business cards were created with a tear off tab for a discount on services. A new web site was designed showcasing the products and services of Eco Studio.

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A large client email list was utilized to announce the salon reopening under the new name. Coupons were included with the email. Clients were also notified by email about upcoming fashion and product events that were held about once a month in the store. Proceeds went to a variety of local charities.

A loyalty program was created allowing clients to earn discounts on products and services.

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During the holiday season, a gift card program was introduced. Keeping with the environmental theme, the gift cards came in biodegradable envelopes that had seeds embedded in the paper. Tearing up the envelope and planting it in soil would result in exotic flowers. This program was a huge hit with all the gift cards produced selling out in less than 3 weeks.

In four months from the date of the official marketing launch, business from current clients increased 23%. New business increased 14%.

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While business continued to increase over the coming months, Eco Studio was faced with more challenges. Road construction resulted in only cars only being able to enter the salon’s parking lot from one direction. The opening of a health club in the same building meant less available parking. The high turnover of stylists made retaining customers difficult. The lease agreement with the landlord allowed monthly expenses to increase to the point that they could not be covered through normal business volume.

Fourword was brought in again 10 months after the initial campaign to assess the situation. It was estimated that all eight chairs would have to be occupied eight hours a day, six days a week just to cover expenses.

Nikki decided to sell Eco Studio a short time later. The client list and the assets of the company were purchased by a stylist who was opening his own salon at another location.

Case Study: Eco