Tamayo, Anna Noreen Antoinette P. Tamayo
AGSB MBAH 10b Entrepreneurship
Prof. Jorge Saguinsin
March 4, 2013
Pranav Case Analysis
This is a case of two graduate school students who have chosen to put up a male salon and spa at Robinson's Galleria Mall in Pasig. The idea of putting this up is to fulfill the requirements in one of their subjects in their MBA course. They had made a market study on their idea through a focus group consisting of their classmates, and a general market study of the patrons of the mall, while completing their loan requirements. They opened only after a few months, despite the discouragement of their mentors, and less than ideal market study. After three months, they evaluated the status of their project and learned that they were loosing around 800,000Php. Along side with this, the threat of failing their subject prompted them to make a follow up market study.
From an external point of view, the concept is new but was something that needs a lot of study and strategy, precisely because it is a new and unexplored. Though I understand that they had a deadline, and there was, certain optimism, in their focus group, it didn't excuse their lack of feasibility studies and impulsive decisions to open.
I also think their concept is optimistic with the male vanity trend catching up, but before jumping in, better studies should have been done. First, the feasibility of their location and market, was not well thought.
On their location, though Robinson's itself is a good location for a business, because it is at a cross of main roads and surrounded by business and residential centers, it may not be an ideal location for such an exclusive business concept. Also, even their location in the mall itself is not a very good location. They are located on a place, in the mall, where there is hardly any traffic. It is nice that it belongs to a themed area, and more peaceful, since it is a spa, but it is not going to do anything to make their presence known, but this is what they need, since they are new, their concept is new, and it isn't for everybody. They need to be seen.
On their concept, they had a focus group, which was a mismatch with the market of their location. The focus group, consist of graduate school students. These are young urban professionals, which will definitely match the PTM of their business, hence their optimism, but this is not the PTM of their location.
What is more vital is the market study of the Robinson's Galleria. They already got some information from the mall regarding foot traffic initially, the results of which, were pointing towards a more widespread market, not just a single leveled market, a majority of which, will most probably not be their patrons, because they are female. Also, the demographics of their male market is, also mostly mid to lower end. They are high end, then obviously, the market may not be interested at all in their business.
There are several roads they may take to save their business. They have already made a study on their competitors, so they know what the Robinson's male and female market is looking for. From here, they can decide to either convert it to a unisex salon and spa, or leave it as exclusively male, but find a better location, whether inside the same mall, or in another place, more suitable to their PTM.
Whichever one they opt for, they must work double time to revive the business. They need to MARKET themselves. They need to make their presence known. They need to RELAUNCH themselves and their new business concept and offerings. They must give apt weight to the results of their improved market studies, as it should be apparent in their new business and market strategies. Of course, whichever road they, have chosen, they must make themselves known as such.
After study, re-launch, presence, and branding, they must also launch their new business offerings, packages and promos, according to their chosen market. They could also ride with trends and other current interests and link new products to their current services. Also, their marketing should include every single part of the mall, and its immediate vicinity. Included in the over-all campaign should be, the Internet or world wide web, social networking sites, and deals and steals sites.
Lastly, they should invest on those barber chairs, because IT IS, the most prime equipment needed in a salon to maximize its space and services.
