Ana Mendoza - Pranav case analysis

 ANALIZA G. MENDOZA

ENTREP PRANAV CASE

1.    Is the problem in the case functional or strategic? Explain?

I think that the case is a marketing problem. There are 4 P's of marketing which are people, place, price and promotion. Given that they have only a few months before their graduation, relocating is a remote option. Aside from it is not permitted in the contracted, the problem of the company is that it is losing money. Relocating would entail more investments because of the construction costs. 

Instead of this, if I were the owner I'd like to concentrate on the following:

People – their present location's market is female dominated. Instead of just concentrating on men, they should try to expand their market by catering the grooming needs of women as well. This way, they can both serve both markets.

Place – they should make sure that their target market easily sees their place or location. A well-lighted place is attractive to customers as lights have a psychological effect in terms of the purchasing behavior of the customer. A good signage is also another factor that can attract customers.

Price – pricing strategy is very important, as price is an important consideration in the customer's purchasing decision. I suggest they do bundling or discounting. Bundling like haircut and shaving combined for a Php 50 price lower that getting the two services separately. They can also give student discounts or coupons for the next visits of customers. This will encourage loyalty from custmers.

Promotion – they should constantly give promos to their customers. People respond to incentives. They should give payday promo, holiday promo or even weekly promos.

2.    Are you in favor of splitting the business?

I think that they should still continue their salon and spa service. They have already invested in equipments and furnishings. Give the business a try since I think there is only a marketing problem. If in time it would succeeded with the implementation of the marketing strategies, then that's the time they can reevaluate and decide which is profitable to retain.

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Ana G. Mendoza

Millisys Distribution Inc.
Tel no. 927-7063 loc 108