tanTALK - View Single Post

BizWatcher · 11-21-2001, 10:39 AM

Well, Chippp, you are absolutely correct. What surprises me the most is that it has taken this long for salon owners to realize what IS going on.

Not meaning to bore you, but as an MBA of Northwestern University, having studied under 'famous' names, brand strategy has always been intriguing for me.

Essentially, brand giants are constructed by media manipulation benefits to consumer populous. A recognized brand is nothing more than a product that has somehow acheived name recognition often through media blitzes, or over a period of time in widespread usage, or both. Most often, the brand outlet (grocery, retail store, etc) are considered 'brand-collaborators', or brand development partners, during the populous recoginition phase of the product(s). Essentially, the brand-partner is building the brand's owner's business for that brand. At some point, when the brand owner determines that the brand no longer requires partnership, the ties are severed, or in the tanning salon lotion industries' case(s), the ties are neutered - if you will. Bringing me to this point.
The lotion manufacturers are seeing a rise in overall tanning market recognition. What was in the early 80's a 'fad industry' is now becoming an acceptable alternative to outdoor ultraviolet exposure. And there is money to be made.
Now that the salon owners have built the lotion manufacturer's business for them, and the lotion manufacturers have been busy gathering sales data during your entire purchase history with them, they know what sells in your area. Moreover, they know how much you are paying, they know how much you are charging, they know how much it costs to ship, and they know the critical price concious consumer breakpoint. The point at which the consumer says, subconciously of course, "Forget the salon I've been going to for five years, MooGooGuy Tan lotion is 30% off retail at Hally's Hair Supply Outlet." Now instead of the 3.75 a bottle the manufacturer made before when selling to the salon owner, the manufacturer now can make 5.50 or more. What's worse, and this is the point you were making, is Hally's can now sell the bottle you sold for $15 for $9-$12 each. And where does this leave you? I think you know where.

11-21-2001, 10:39 AM	#2 (permalink)
BizWatcher Join Date: Nov 2 2001 Posts: 17 Rep Power: 0	Well, Chippp, you are absolutely correct. What surprises me the most is that it has taken this long for salon owners to realize what IS going on. Not meaning to bore you, but as an MBA of Northwestern University, having studied under 'famous' names, brand strategy has always been intriguing for me. Essentially, brand giants are constructed by media manipulation benefits to consumer populous. A recognized brand is nothing more than a product that has somehow acheived name recognition often through media blitzes, or over a period of time in widespread usage, or both. Most often, the brand outlet (grocery, retail store, etc) are considered 'brand-collaborators', or brand development partners, during the populous recoginition phase of the product(s). Essentially, the brand-partner is building the brand's owner's business for that brand. At some point, when the brand owner determines that the brand no longer requires partnership, the ties are severed, or in the tanning salon lotion industries' case(s), the ties are neutered - if you will. Bringing me to this point. The lotion manufacturers are seeing a rise in overall tanning market recognition. What was in the early 80's a 'fad industry' is now becoming an acceptable alternative to outdoor ultraviolet exposure. And there is money to be made. Now that the salon owners have built the lotion manufacturer's business for them, and the lotion manufacturers have been busy gathering sales data during your entire purchase history with them, they know what sells in your area. Moreover, they know how much you are paying, they know how much you are charging, they know how much it costs to ship, and they know the critical price concious consumer breakpoint. The point at which the consumer says, subconciously of course, "Forget the salon I've been going to for five years, MooGooGuy Tan lotion is 30% off retail at Hally's Hair Supply Outlet." Now instead of the 3.75 a bottle the manufacturer made before when selling to the salon owner, the manufacturer now can make 5.50 or more. What's worse, and this is the point you were making, is Hally's can now sell the bottle you sold for $15 for $9-$12 each. And where does this leave you? I think you know where.