Hi Prof. Jorge,
Below is my Pranav case analysis.
Thanks and regards.
Jopet
PRANAV Case
Situation:
Marc Orbos and Karlo Nisce opened up Pranav New York at Robinsons Galleria in November 2004 . It was a part of their Management Research Report to complete their requirements for their MBA graduation at the Asian Institute of Management. Pranav New York was envisioned to be the first male spa in the Philippines integrating grooming and wellness services for Filipino men. After three months of operations, Pranav New York already incurred losses amounting to P825,568.
Issues:
<![if !supportLists]>1. <![endif]>Pranav New York was not able to attract its target market due to its inaccessible location. It lacked the much needed high traffic incidence since its location inside Robinson’s Galleria was not accessible unlike the other barber shops who were located at the ground floor of Robinsons Galleria. It was also located at the opposite side of the area where male working professionals are concentrated and the demographic mix at Robinson’s Galleria skewed towards the female segment which comprised 60% of the mall goers.
<![if !supportLists]>2. <![endif]>Profitable and high value services such as the massage and oil treatments were not maximized which led to a net loss in their first three months of operation.
<![if !supportLists]>3. <![endif]>Pranav was not able to maximize the floor area and its ability to offer a wider variety of services to customers was limited.
Action Plans:
<![if !supportLists]>1. <![endif]>Pranav New York should find a new location inside Robinsons Galleria that would be easily accessed by its target market. It should locate where there is high foot traffic like in the ground floor of the mall or near traffic inducers such as popular dining establishments and famous retail stores. In one of the surveys conducted, they found out that the primary reason of customers in selecting barbershop was convenient location. Locating inside the mall is still preferable given the constant foot traffic generated by the mall. If it decides to stay in Robinsons Galleria, it should also tap the female market given the predominance of females in the said mall. It was also found out that females spend more over males on grooming services. To effectively attract the female market, Pranav should adjust their products and marketing efforts to get the attention of the female segment in Robinsons Galleria.
<![if !supportLists]>2. <![endif]> If Pranav cannot find an accessible location inside Robinsons Galleria, it should consider moving out to another mall or area where there is an abundance of male working professionals who goes to barber shops and salons for their grooming needs after all, Robinsons Galleria’s mall goers skewed towards the female segment.
<![if !supportLists]>3. <![endif]>Pranav should also maximize its high values services such as the oil treatments and massage by giving staffs additional incentives if they get customers availing on these products. This is to encourage the staff to push these highly profitable services. It can also bundle grooming services with massage and provide discounts to customers who avail of the promo. The staff should encourage every customer to stay longer inside Pranav and patronize other services especially the high value ones.
<![if !supportLists]>4. <![endif]>Pranav should also maximize its floor space by using barber’s chair to enable its staff to do a wider array of services such as shaving and massage to their customers more efficiently using the barber chair.
