Hannah Rhuelle B. Abellera
S10-ENTREP
Pranav Case:
1. 1. Since what Mark and Karlo missed before putting up Pranav New York was to study the pros and cons of the location they have chosen in a detailed manner, the problem of the case is strategic. They felt the need to start up the business so they decided to do further location study, simultaneously. Later, in their study, foot traffic is distributed on its key entrances was a good number. Sadly, the location of Pranav New York was not an area where an incidental traffic, especially for male, would occur. Body Senses section inside the mall must be passed by first before Pranav can be accessed by mall-goers. A customer must intend to reach the place, located on the 3rd floor of Robinsons Galleria. Still, they looked at the situation wherein there would be possibility that Pranav would be noticed if a mall-goer would enter the Body Senses section. Generally, the mall has a larger percentage of female mall-goers, about 60%. This demographic should have been considered before, since their target market were males, and men seldom go to 3rd floor just to get a haircut. The professors were correct in stating the fact that men would preferably go to a more accessible area, like the ground floor for a fast service like haircut. Having weak sales, to sustain the operations and gain profit became the result of the non-strategic location of Pranav, because of its poor accessibility. Chairs that were not fit for the customers and spas with a condition that was not preferable for men, contributed to its failure also. If Pranav is building a male image, they should have hired skilled and artistic straight men to facilitate some service, especially hair cutting, so as men would be comfortable in going to Pranav. They should have also stood by the promotion of "macho" image for the establishment.
2. 2. It was determined that in the analysis of Mark and Karlo of unprofitability of Pranav New York, the spa section had a big contribution. Discontinuing of the spa service was practical, because it would only incur further cost to the business. By this action, they could facilitate and concentrate in the salon wherein they were gaining money like in haircut, hot oil and hair color services. These services were acquired more by men rather than the spa. Probably, they could sell the equipment and unused materials of the spa to recover from losing money.
