PRANAV CASE ANALYSIS by Jane Labarrete

CASE: Pranav New York Problem: The Company is losing money over the past three months since it opened. Objectives: ·         To resolve the loses of the company in the past three (3) months ·         To increase sales ·         For both MBA students to graduate             Opening a first ever male spa in the Philippines is definitely a good and fresh idea because it is niche, targeted, it's new something people have not heard of.  However, in the start of the case it was already mentioned that in terms of location choosing Robinson's Galleria is dominated by female shoppers, plus PRANAV is located in the West Wing of the mall instead of EASTWING where there is more foot traffic and it's more accessible for consumers. Other than that, analyzing the performance of competitors, Market Leaders are usually salons catering to both males and female with ideal price offerings classified to the broad C market and if you look into the sales the core competence of Pranav is in styling and haircut. In looking at these facts,  1)      Location Location wise, the shop is located in the west wing where there is less foot traffic and accessibility to customers. Foot traffic in the location is the current location is relatively low compared to the East Wing of the mall 2)      Demographics and Psycho graphics The mall is dominated by potential female consumers as mentioned in the case who are fond of these services. Also, offering spa services can also be unlikely to men because of their mentality that women are only tagged to it.   3)      Competition Looking at the data, attractive low prices are the ones dominating the market share. These are salons that cater to both men and women. 4)     Services Haircut is volume a driven service and chairs are one of the critical success factors of this type of business. Thus, this is one of the things that Pranav should consider looking into whether they have to focus on haircut services or spa services. I basically think that Pranav case is a strategic problem because they fail to recognize these factors mentioned above. They failed to have a close look to the consumers they cater to which in result of decrease in sales. Pranav they consider the following alternatives: ·         Look into extending services to female costumers Pros: Gain more revenue Cons: May disrupt previous objectives of being a solely male spa ·         Promotions Pros: This will enhance visibility of Pranav Newyork in the Mall. Cons: It can be costly. ·         Stop Spa Operations on Galleria Pros: Focused more on more profitable services such as salon. They save cost if they stop spa operations. ·         Bundle Spa services Pros: Attractive to capture customers specially bundled with promotions for couples. Can increase visibility of Pranav I believe it will be more beneficial if they focus on their salon services where profit is coming from and if given a chance to expand they can resort to adding that service in a more appropriate location.  by: Jane Labarrete