Submitted by: Bandong, Maria Conchitina T.
MBAH-10 B Entrep
Date Submitted: March 5, 2013
PRANAV CASE ANALYSIS
Pranav New York was a business idea of two students, Karlo Nisce and
Mark Orbos, as a completion requirement for graduation in their MBA at AIM.
Their Vision and Mission were well defined; conceptualization and
preparation of the business venture were done and yet within three months after
the opening, the business was suffereing from a loss of Php 825,568 due to weak
sales.
I think the business failed to consider the following which are essential for a
successful salon: right market, strategic location & ambience, appropriate
service offering, and hiring the right people.
A. Right Market
The business concept was innovative, which
was providing a salon/spa service exclusively for males. Unfortunately the target market of males did
not elicit enough sales to support the operating expenses of the business. The
predominate clientele of the location (Robinsons Galleria) was also not
considered. It was females, with a 61:39 ratio of females to
males. Not only was the females more in number, their spending level in
grooming was also 91% more than males.
B. Strategic Location
& ambience
The location of
Pranav New York was at the third floor of the West wing of Robinsons Galleria.
Despite the store being located at the front area, it did not draw the expected
number of customers since foot traffic only occurred at certain peiords in a
day. In the observation analysis with the competitors, it showed that location
really matters. Customers prefer to go to easily accessible sites, specifically
the ground floor area of a mall. It would also be helpful that the location
will have nearby establishments that can draw attention to customers like food
& clothing stores.
C. Appropriate Service
Offering
Pranav New York
wanted an exclusive male salon/spa establishment. In the analysis, however, it
showed that the male customers still prefer the traditional services of hair
cut. Additional services of hair color, manicure, pedicure, but very minimal
spa services were only utilized by the male customers. Having appropriate
equipment is also a pre-requisite to good service. The owners opted to purchase
ordinary chairs versus the required but more expensive barber chairs. The
barber chairs may be more expensive but it can offer more services to customer,
thus more sales.
D. Hiring the Right People
One of the innovations
of Pranav New York was an all female barber crew. The owners failed to consider
the skills of the female crew needed to perform services for the male
customers, like shaving.
RECOMMENDATIONS/SOLUTIONS
TO IMPROVE THE SALES OF PRANAV NEW YORK:
1. Open the salon/spa to female customers.
2. Offer services that will cater to the needs & wants of the
female customers. The services can be in a form of package which can serve as
promotions to increase the number of customers.
3. Purchase barber chairs.
4. Train the all female crew in the necessary skills needed to
perform services for the male customers.
5. Improve the ambiance of the salon/spa that will suit the taste of
both male and female customers.
6. Classify crew based on their levels of expertise in performing
services. Differentiate a senior crew from a junior crew. The corresponding
services performed by a senior crew will have a slightly higher rate compared
to a regular crew.
7. Make advertisements of the services of the salon/spa and place at
the ground floor of the mall.
8. Offer family promos. Discounted rates can be given to children per
regular priced service availed by the parents.
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