Catherine Chua's reflection on Pranav case

Catherine Chua

Case: Pranav New York

The Pranav New York case is a strategic problem not a financial or marketing problem. Here are the following reason that support that it is a strategic problem.

• ·      Pranav New York was in wrong location. At first Karlo and Mark's decision to establish their first male salon and spa in the Philippines were in Ortigas Center in San Juan and Makati Central Business District. But Ortigas Center and Makati Central Business District did not approve their new venture, only Robinson Galleria. When their mentor heard about the Robinson Galleria's approval and Karlo and Mark pursue their venture in Robinson Galleria, Karlo and Mark had a major wrong decision on locating their venture in Robinson Galleria. In their survey, Robinson Galleria is a female dominant customer.  
• ·      Even Karlo and Mark decide to venture their first male salon and spa in Robinson Galleria, the location inside the mall which is in 3^rd floor west wing is also wrong.  
• ·      Aside from this, Pranav New York can change their target customers. They can provide a female salon and spa not just male salon and spa. Because female spend more in salon and spa than male customers.

  Pranav New York should split the salon and spa service if they really want to concentrate or their target market is male customer. They should venture more on salon than spa if they decide to split the two. But if they change their target market into unisex salon, they should not split the salon and spa.

The following are the reason why Pranav New York should split their salon and spa.

• ·      Spa consumes more on rental space. Pranav New York lease a 153 square meter for both salon and spa, while their competitor Roberto Barber Shop occupied 75 square meters only. For me, Karlo and Mark's decision to put-up a salon and spa is wrong. At first they should put-up a salon only and if their business growth and improve that's the time to add more services.
• ·      Spa service has a little percentage of Pranav's sales. Base on table 7 (service offerings availment distribution/ salon vs. spa package) there is only 4% to 7% from November to December that customers avail a spa service.

The following are the reasons why Pranav should not split their salon and spa if they venture on both female and male:

• ·      Female segment spend more on hair services, such as hair color and hot oil. They are willing to pay more than male segment.
• ·      Female segment consumes 9.83% on foot spa alone plus the 4% to 7% of spa service by male segment.

I met the BSP Loan Officer Last night

                                 

Last night, I discussed with the entrep class:  the value of money, money vs currency, money creation of central bank, and the QE activities of US Fed Bank under Ben Bernanke. Massive liquidity infusion:  printing of money, buying back securities/Treasuries injects liquidity to the system.  They may be harmful to the economy.  This causes inflation and currency devaluation.

The QE in the US has resulted in stock market rally;  but not in creation of businesses and jobs.

Last night also, in the wake of a classmate in college who succumbed to a stroke, I met a former colleague in the college paper who is now a Managing Director for Loan operations.  He says he reports to a Deputy Governor who we both know, comes from the same school and was involved in activism. 

Those who sympathized with the family were mostly lawyers and bankers.  Our classmate was a lawyer, and the wife is a senior officer of PDIC.  Bank CEOs I heard visited the wake.

                        

I met Mr. Chito Sobrepena President of Metrobank Foundation

 

I met Mr. Chito Sobrepena, the EVP of Metrobank  and President of Metrobank Foundation last night at the wake of my late classmate at AdeMU, Atty Cesar Singzon who succumbed to  CVA.

He was glad to hear that:  I am an entrep professor, did probono work for Go Negosyo. He said that Metrobank Foundation adopts communities and doing work with the community on:   livelihood, microfinance, and others.  I said would be glad to collaborate.