PHL March 5, 2013
Lea, our class secretary, texted me last night the details of the food trip for the Sentrep Class today:
Where: A Venue Mall (at B. Valdez) near Makati Avenue; in front of Goldilocks
When: 6 PM
How much: PHP 500.
What: Korean Food, Persian/Jew, and other type of food.
Here is the Google map:
View Larger Map
Tuesday, March 5, 2013
Sunday, March 3, 2013
Pranav Case Analysis by Dr. Leilani Coloma
Leilani C. Chavez- Coloma MD
MBAH 10B ENTREP HO4
PRANAV Case Analysis
Situation:
Pranav New York Spa is not gaining profit since it opened and has been loosing almost 24000/ month, on the spa services alone. They are not getting enough customers to make the ends meet. Their income is not enough to cover for the costs.
Problem:
The problem is more of the strategy that Mark and Karlo used. First, the feasibility studies they did before opening the business might not really be that detailed and representative of the mass. As to the (1)location, it is not strategic to capture the bulk of male customers because it is on the third floor and west wing where foot traffic is not (much). And most of the males won't be going to the 3rd floor to avail of services. Usually males are more practical and less patient and detailed then women. This makes Pranav NY, (2)less accessible to the potential target market. Then most of the mall goers, when they did an extensive study post operations, when they saw their losses, were found to be (3)females ( 60% ). The owners did not realize initially that segmenting the clients as to services availed in relation to the demographic picture is vital, during their feasibility studies, before opening the spa. It was only later that they realized that most are availing of the haircut, seconded by nail services and other grooming s. like hot oil more than the spa.
Alternative Solutions:
I would suggest that they maintain their business but reposition it by changing the business concept of making it exclusive for males and that they remove the spa service. In this way, they can opt to lessen their space by giving up some square meters in the area allotted for the spa services. They can sell the equipments for the spa and avail of barber chairs instead. This will mean lesser costs for the rental and maintenance.
It would be better if they concentrate on the salon services and target female markets too ( unisex ). Offering of promos and bundles of services would be of help too. The pricing would be easily adjusted to be more competitive, without sacrificing the quality of service. Since Pranav has its customers already, maintaining clients' loyalty or retention through personal relationship with service providers, should be emphasized. Feedback system should also be enforced through comments and suggestions forms from clients. In this way, owners will better know how to communicate and render their services to the target market.
MBAH 10B ENTREP HO4
PRANAV Case Analysis
Situation:
Pranav New York Spa is not gaining profit since it opened and has been loosing almost 24000/ month, on the spa services alone. They are not getting enough customers to make the ends meet. Their income is not enough to cover for the costs.
Problem:
The problem is more of the strategy that Mark and Karlo used. First, the feasibility studies they did before opening the business might not really be that detailed and representative of the mass. As to the (1)location, it is not strategic to capture the bulk of male customers because it is on the third floor and west wing where foot traffic is not (much). And most of the males won't be going to the 3rd floor to avail of services. Usually males are more practical and less patient and detailed then women. This makes Pranav NY, (2)less accessible to the potential target market. Then most of the mall goers, when they did an extensive study post operations, when they saw their losses, were found to be (3)females ( 60% ). The owners did not realize initially that segmenting the clients as to services availed in relation to the demographic picture is vital, during their feasibility studies, before opening the spa. It was only later that they realized that most are availing of the haircut, seconded by nail services and other grooming s. like hot oil more than the spa.
Alternative Solutions:
I would suggest that they maintain their business but reposition it by changing the business concept of making it exclusive for males and that they remove the spa service. In this way, they can opt to lessen their space by giving up some square meters in the area allotted for the spa services. They can sell the equipments for the spa and avail of barber chairs instead. This will mean lesser costs for the rental and maintenance.
It would be better if they concentrate on the salon services and target female markets too ( unisex ). Offering of promos and bundles of services would be of help too. The pricing would be easily adjusted to be more competitive, without sacrificing the quality of service. Since Pranav has its customers already, maintaining clients' loyalty or retention through personal relationship with service providers, should be emphasized. Feedback system should also be enforced through comments and suggestions forms from clients. In this way, owners will better know how to communicate and render their services to the target market.
PRANAV CASE ANALYSIS by Dr. Melquecedes T. De Guzman Jr.
PRANAV CASE ANALYSIS
Melquecedes
T. De Guzman, Jr. MD, FPSNM, CCD
MBAH-10B
Is the case problem
Strategic or Functional?
Pranav
New York, a male salon/spa business initiated and operated by AIM students
Karlo Nisce and Mark Orbos as partial requirments for their course, has posted
Php 850,000.00 in losses in their first three months of operations. The losses
were attributed to weak sales. A review of their case (and their subsequent
observational study of their competitors) shows that the problem is more STRATEGIC than functional because of the
following points:
1. CHOICE OF PRIMARY TARGET MARKET: Pranav was envisioned to be a male spa, thus all
their services and marketing were designed for male customers and excluded
females; however, their initial interviews with Industry experts showed that
male customers accounted for only around 50% of their total customers, and thus
excluding the female segment slashes your target market already by half.
Furthermore, their subsequent observations revealed that females outspend males
in salon/spas by 91%, too great a proportion to be excluded as their primary
target market.
PROPOSED
SOLUTION: Redesign services, marketing, branding to be not male exclusive,
but to include females, and probably add family oriented services (for
children, parents) as well.
2. LOCATION: Pranav was located in the 3rd floor of the west wing of
the mall, near the bidy senses section, which was an area catering to services
for women. As a start-up business catering to services for men with no prior
publicity , their location was not conducive to generate enough foot traffic
from their primary target market.
PROPOSED
SOLUTION: Relocate to an area with better foot traffic.
3.
PRICING: Pranav’s pricing of services
are on the high-end. Their subsequent observational study showed that competitors
with more market shares have lower prices, while those competitors with higher
prices have less market shares.
PROPOSED
SOLUTION: Re-evaluate pricing scheme, create new but less expensive packages
4. STAFFING: Pranav’s all female staff, although eventually trained, may not be
best suited to deliver all services for men. Classic cut and shaving are
important to male customers and should be delivered by skilled service
providers.
PROPOSED
SOLUTION: Replace some of the staff with skilled barbers for classic cut,
shaving and other services.
5. FACILITY SIZE, LAY-OUT AND EQUIPMENT: The visit and observations of Karlo and
Mark’s professors pre-opening already revealed some flaws in their facility;
chairs were not barber’s chairs (which was shown to be instrumental in customer
loyalty during their subsequent observations), spacing between chairs were to
narrow, and spa was too cold. Furthermore, they immediately leased a large
space (153-sq meter) jacking up their operational overhead expenses which
cannot be addressed by their weak sales. Further analysis showed that the SPA
segment of their facility generated high losses.
PROPOSED
SOLUTIONS:
a.
Replace chairs with barber’s chairs
b.
Redesign layout for more adequate spacing in between chairs
c.
The SPA segment may not be closed, it can still be operated
but in a smaller scale
a.
Decrease SPA segment space (if they relocate to a different
area in the mall, they should get a smaller space and appropriate smaller space
fot the spa)
b.
Decrease SPA staffing
The business is salvageable, but drastic situations require drastic measures.They need to implement changes in their business' main value proposition, branding and marketing if they want to generate different results.
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