Abigail Lacuesta
Pranav Case Analysis
1. Is the problem strategic or functional? Why?
The Pranav case's problem is more on the strategic side. I believe that they have failed to study their market. They have failed to do a research on the location they were given and the behavior of the consumers who frequent the mall. This alone is a sure key to failure. Their location is far from the foot traffic where most of their competitors are located. Also, since they are targeting male customers, I believe that that alone is an indicator that the mall, a posh mall at that, is not a good place to put up a salon for men. If you would notice, people who mostly go to the malls are women and children to shop. Usually the men who go to mall are just there to accompany their family or buy something and leave after their errand is done. Their target market is only a small portion of the mall population. With an expensive space rent, this alone will eat up the sales they get from a small number of customers. This may also have functional problems like for example, when men go to a barbershop they expect to be attended by male staffs. Barbershops give the place a manly/masculine ambiance. You rarely see men go to a salon because it screams feminine from signage to interior. If you want men to enter your shop, then give the place a masculine ambiance, starting with the staffs.
2. Should they split the spa and salon?
Since, men is more frequent on availing grooming services than spa services, in my opinion, they should just focus first on the salon part and gain first loyal customers. Then if they really want to go ahead with the spa, they can offer the spa service after they have gained loyal customers.
From: Abi .. <abi_lacuesta@yahoo.com>
To: "profjorge.entrep.ateneo@blogger.com" <profjorge.entrep.ateneo@blogger.com>
Sent: Saturday, November 3, 2012 9:12 AM
Subject: Pranav Case: Abi Lacuesta
Hi Sir,
Thank you!
Abi
