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.