A Barber’s view of STP (Segmentation/ Targeting/Positioning) at Mamallapuram:

A Barber’s view of STP (Segmentation/ Targeting/Positioning) at Mamallapuram:

A thriving tourist destination, Mamallapuram , better known as Mahabalipuram is apparently ‘the place’ to get a haircut. With only a population of around 12000 ,  Mahabalipuram boasts of around 30-35 Men’s Haircutting Salons i.e a salon for every 200 men (52% population are male).What is unique about the profession is inadvertently, they follow the concepts of Segmentation/Targeting/Positioning without  undergoing a course on Marketing!

So having decided to get that elusive haircut, I ventured into a Barber Shop and had my practical experience on STP.

       Lesson 1: Finding the right audience.

The shop was owned and operated by a non-Tamilian. A first generation Entrepreneur, Mr.Ali used to work for the Radisson Group of hotels wherein he got a fixed salary. On touring the town, he realized that he could cater to the youth in the town, a budding, high spending, style conscious, high frequency segment. Also, he noticed that he was at a disadvantage-a Non-Tamilian in a Tamil dominated township, in a profession where clients are acquired primarily by building a comfort level with the intended audience. He decided to target the youth as his primary audience, a segment with high returns which would not perceive place origin as a factor to get their hair done!.

       Lesson 2: Targeting the Audience.

        Having decided this segment, Mr.Ali went about targeting his intended segment. He took a shop on lease with an initial deposit of around INR 200000 and a monthly rent of INR 20000 in an area which the youth frequently visit-the temple square. Working around the unions, Mr.Ali got in friends from Mumbai who were adept at the latest ‘In’ thing in hairdressing. Convincing them to come to Mahabs was not a problem. They were just told that he was opening in Chennai!

The next expense incurred was on the props! 2 barber chairs, 2 mirrors, grooming accessories, beauty products and a tinge of fresh paint totaling to around 1.5 lakhs. Covering the walls with a bunch of youth Idols parading their recent hairdos, Mr.Ali created an impression of shaping the fad in the world of hair styling. A conscious decision was made to not make the shop air-conditioned as it would have increased the cost of a haircut.

  Lesson 3: Positioning yourself within the market.

Mr.Ali realized that he needs to clearly differentiate his shop with the other barber shops within the vicinity. Therefore, he positioned his shop as a ‘Designer Salon with a value for money’ proposition. Marketing his USP-Hairdressers from the quintessential city of Mumbai-the home of Bollywood and fashion . Also, he made it affordable by charging a nominal price of INR 50 whereas the A/C shops were charging around 70 INR. Accentuating the youth culture of the shop, he started an open door policy wherein youths can drop in for a chat, just set their hair and walk out without paying a dime. This built camaraderie thus increasing brand loyalty.

The result:

 Mr.Ali’s shop is thriving. Inspite 3-4 similar shops within the vicinity, Mr.Ali is making  a handsome profit. He is contemplating on buying the shop and expanding his business. Also at the same time, he is trying to expand his market by catering to the other age groups with a higher income though he is vehemently against installing air-conditioners in his shop.

What Next for Mr. Ali?

Having made this conversation while getting my own hair done, I could not help being bitten by the entrepreneur bug. Seeing all the cut hair on the floor, I asked him what he does with them. His answer was – nothing. I suggested that he could always sell these leftovers to an ancillary industry which processes them to make artificial hair-wigs, moustaches, etc. Since such an industry did not exist in the vicinity (probably the women were known to grow their hair and not cut them short!),Mr.Ali was suggestive of getting a group formed to collect all the wastes and sell it to an organization in Chennai which uses them to make artificial hair products like brushes, wigs, moustaches etc.

So Mr Ali, yours was the cheapest and most practical course in marketing which I would ever get during my journey to be the Mr.Marketer. Thanks for the same and all the best for your future ventures!