PRANAV CASE ANALYSIS by Jane Labarrete

CASE: Pranav New York Problem: The Company is losing money over the past three months since it opened. Objectives: ·         To resolve the loses of the company in the past three (3) months ·         To increase sales ·         For both MBA students to graduate             Opening a first ever male spa in the Philippines is definitely a good and fresh idea because it is niche, targeted, it's new something people have not heard of.  However, in the start of the case it was already mentioned that in terms of location choosing Robinson's Galleria is dominated by female shoppers, plus PRANAV is located in the West Wing of the mall instead of EASTWING where there is more foot traffic and it's more accessible for consumers. Other than that, analyzing the performance of competitors, Market Leaders are usually salons catering to both males and female with ideal price offerings classified to the broad C market and if you look into the sales the core competence of Pranav is in styling and haircut. In looking at these facts,  1)      Location Location wise, the shop is located in the west wing where there is less foot traffic and accessibility to customers. Foot traffic in the location is the current location is relatively low compared to the East Wing of the mall 2)      Demographics and Psycho graphics The mall is dominated by potential female consumers as mentioned in the case who are fond of these services. Also, offering spa services can also be unlikely to men because of their mentality that women are only tagged to it.   3)      Competition Looking at the data, attractive low prices are the ones dominating the market share. These are salons that cater to both men and women. 4)     Services Haircut is volume a driven service and chairs are one of the critical success factors of this type of business. Thus, this is one of the things that Pranav should consider looking into whether they have to focus on haircut services or spa services. I basically think that Pranav case is a strategic problem because they fail to recognize these factors mentioned above. They failed to have a close look to the consumers they cater to which in result of decrease in sales. Pranav they consider the following alternatives: ·         Look into extending services to female costumers Pros: Gain more revenue Cons: May disrupt previous objectives of being a solely male spa ·         Promotions Pros: This will enhance visibility of Pranav Newyork in the Mall. Cons: It can be costly. ·         Stop Spa Operations on Galleria Pros: Focused more on more profitable services such as salon. They save cost if they stop spa operations. ·         Bundle Spa services Pros: Attractive to capture customers specially bundled with promotions for couples. Can increase visibility of Pranav I believe it will be more beneficial if they focus on their salon services where profit is coming from and if given a chance to expand they can resort to adding that service in a more appropriate location.  by: Jane Labarrete

Business Plan Concepts by J.Labarrete & M. Freitheim

By Jane Labarrete

I. Topic. Online Clothing Line: Sophisticada

"Who says being sophisticated is expensive?"

 Since, E-Marketing is the next big thing to reach your target market; the idea is to put up an online clothing shop that features latest trends in clothes, shoes and accessories primarily sourced from Thailand, Hong Kong and China which are relatively affordable and sophisticated in taste. Other than that, my differentiating element would be they can have the change to customize it for elaborate beads to make it look unique, in shoes or in clothes, accessories. I plan to tie it up with jobless women in Happy Land Tondo or Women from Prison to personalize the products which would take 3-5 days to be delivered if personalized.

The reason why I wouldn't put up a store yet or situate it near Greenhills I believe that an online component would be enough to sustain enough traffic for customers. Since I'm too customization of clothes I would like to tag the company to tie up with other clothing company for bulk bead projects in clothes that are usually outsourced. The reason why I'd like to open this up to do bead projects for my indirect competitors, I believe mass produce products are not the market that I cater. I'd like to be there third party partner to attain my vision to help a give hope to jobless women in Tondo and prison.

 

By Marta Freitheim – "Charlie does"

2.1 Introduction:

Baler is the capitol of the Province Aurora with its location on the east coast of Luzon. This is the place where surfing was first discovered in the Philippines and is renowned for its world-class breaks. The surfing part from the film "apocalypse now" was in fact filmed in Baler, at Charlie's point. When the film crew left they also left behind some surfboards for the locals to play with and this was how it all started. Now there are hundreds of surfers in Baler and thousands of surfing visitors every year. Charlie does has its name from one of the most popular breaks, Charlie's point. At the moment the shop is only a small surf shack on the beach

2.2 Baler attractions

2.2.1 SURFING IN BALER: The community here is small still surfing is by far the most popular sport. Baler has surf all year around though the peak season is from September/October to February. There are many surf spots surrounding Baler, the only limitation is your accessibility. Though one does not need to look far for world-class waves, hiring a banka would and hunting the waves would also be a nice experience and no crowd in the water.

2.2.2 Tourism in baler:
 

Baler has more to offer than surfing, the province of aurora is given an abundance of attractions. It has historical sights such as catholic churches and home of former president Quezon. The nature is absolutely stunning, with the green volcanic mountains, picturesque waterfalls, and panoramic beaches. This year Baler is expecting 400 000 visitors. Investors have acknowledged the need for further development in order to meet the new demand and accommodate the travellers/tourists.

2.3 Arising challenges
2.3.1 Competition and innovation
There are already many surf schools on the beach some also selling used boards. Though they are only small shacks and can not handle big groups. The shacks are only 5-8 square meters and have limited offers. There are no advertisements for the surf schools and they have limited resources. There is no real surf shop in the town with several boards and surf apparel, just maybe a board or two for sale in the different surf shacks. 

As Baler is in heavy development and potentials are really good. There is a good chance of other surf shops arising. The surf shop will be connected to four of the local hotels/resort and they will be promoting to the guests staying there.

2.3.2 Off-season challenges
Like indicated the peak season for surfing is from October to February and for tourism it is from November to March. From April through September the town is rather quiet, leaving us with a challenge; how to aggregate income?  As the weather is nice until June there should still be possible to attract tourists when offering an irresistible Product/tour. Even during the rainy months from July – October the weather is normally better than in Manila and the west coast. 

2.4 Business concept innovation:
Charlie does is a start-up branch of an already existing surf school in Baler, Aurora. Charlie does was based upon the famous surfing spot Charlie's point and will promote their self produced surf wear clothing line, surfboards, surf school and activity operator. It will be the only surf shop in Baler and the biggest surf school and activity operator. Charlie does will also be the exclusive tour/surf operator to some of the most picturesque beaches in the area. With top knowledge from the local surf team the services offered will have surf instruction and tours will have high quality spots, instructions and service to a reasonable price. Having a great deal of contacts in the area Charlie does will gain the competitive advantage being able to access private beaches and customers staying at many of the local hotels. Charlie does will provide the

Charlie does will me managed by two executives in the Philippines, with support from the local surfers in baler, a design team in UK and local hotels/resorts. This combination will bring the company a wide range of experience within surfing, design, manufacturing, marketing, public relations and sales. They have acknowledged an opportunity to gain considerable markets shares and competitive advantages to possible emerging shops by focusing on the specific needs of surfers and by providing greater service and support to their customers than their competitors. The company will be organized as a closely held corporation with the shares being divided by two principle executives.

Goals---

Vision:
To be the company that best understands and satisfies the products and service needs of surfers in the Philippines.

Mission:

Charlie Does is focused on fulfilling the local need of surfers in Baler. The market has been identified by the significant increase of surfers and tourism in the area as well as the Philippines the last 15 years.    

Charlie does will be able to adopt their product line to the locals in Baler, it will be inspired by recreational activities including sports, leisure and casual lifestyles.

-          Focus the product line to be a top seller in baler and eventually in the Philippines. Would be preferred to international companies such as Billabong, quicksilver, reef etc.

-          Focus on the surfing industry experience to identify products that attract consumers to specialty stores. 

Key success factors:

1.      Seek out feedback from our customers (Kids, teens and young adults) to develop a successful clothing line that meets their needs and tastes.

2.      Develop a niche market for our unique apparel

3.      Maintain low overhead costs by monitoring and scheduling production

4.      Implement a successful marketing campaign to inform the existing clientele and the public of our new image

5.      Build brand image and brand equity through marketing

3. Products:

3.1: Surf shop:
The first real surf shop in Baler. Will be a modern up to date surf shop providing high quality clothing and the first surfboards made in the Philippines.

3.2 Surf school
With local and trained instructors performing high service instructions and guided surf tours. Charlie does will be a professional yet personal surf school. Security comes first and customers will feel well taken care off. The school will also be the only one in Baler able to handle bigger groups, enabling for instance teambuilding or similar. The location of the shop will be at the beginning of the beach road. All the travelers going to Baler and staying at the beach would have to pass by the shop and therefor get acquainted with it.

3.3 Tours and activities
Charlie does is a surf based company, however when the sea is flat there will be a demand for other activities for both surfers and non-surfers. Some come for fun and some comes just to hunt the waves, that's why it is important to have a backup if it is not possible to surf.

- Nature adventures: Baler has stunning nature, with its beautiful mountains, pristine beaches and majestic waterfalls there's is plenty to see. Charlie does even has the exclusive access to some of the most beautiful white-sanded beaches.

- SUP – Stand Up Paddle: is getting more and more popular, this is an activity for everyone whether you are 50 or 12 years old, you can even go to people on one SUP. And is a great activity when the sea is almost flat, one can paddle out to the islands by cement have swim and maybe even a snorkel, play around in some miniature waves (the stand up paddle gets you going even when its too small for normal surfboards).

- Yoga: At the top of the floor there will be yoga lessons. Surfers are normally very conscious about their health as well as their flexibility and Yoga is the perfect activity.
-Local market:  for foreigners the local market can also be of interest.

3.4 Combined tour packages
This product is full tour package including the trip from manila, accommodation, surf instruction or guiding and food if wanted. This product is customized for the cash rich customer, representing approximately 30% of the surf tourism. Charlie does will organize and book the bus ticket, pickup at bus station, accommodation and surfing. The surfers can relax and does not have to worry about their planning and transportation, everything is set. Public transportation in the Philippines is not so easy to get, few operators have online schedules (and they might be out dated), and this especially goes for foreigners. 

Other ideas for products are under development.