Entrepreneurship : Prof. Jorge Saguinsin
Submitted By: Dr.Victhea Girado-Pineda
AGSB -MBAH-10B
Case Analysis : PRANAV
Partners Mark Orbos & Karlo Nisce had a good vision in offering an integrated grooming and wellness salon & spa, to serve exclusively for men.
After incurring losses in their 3 months of operation, there was the urgency to re assess what could be the causes behind these problem.
Based on the Micro Market research that they did, they were able to identify the strong points in the success of their competitors and examine where they are weak at. Their in-mall location which is an advantage compared to a stand alone establishments, is still not adequate because they do not have good access to incidental customers that can be seen on areas with constantly changing foot traffic. Inspite being one of the only 2 spa facility in Robinsons, their sole competitor is strategically located near the Gym, gaining much advantage .Secondly, they could have maximized their space by utilizing a barbers chair where they can perform several services in just one sitting.
Although haircut is still the main service attraction, keeping it at a very friendly price is what will keep the customers coming, while offering other services to keep them stay longer, eventually increasing sales.
Females play a very significant role, first by dominating the mall populace, and the spending power, as seen in their Unisex competitors, which Pranav was not catering to. Despite their edge in getting most of the male customers, it was not sufficient since, there is a small percentage of male population in the mall.
With all these, Pranav has to re align itself in their strategy to win more customers . My recommendations would be :
1. Opening its female section for its salon & spa services.
2. Improving customer relationships to build lasting rapport & loyalty.
3. Since moving the location require more capitalization which at this point could be difficult because of their losses, they have to think of marketing strategy to make themselves visible and create awareness to the mall customers. They need to add more signages and posters of their services and location. They could put it in strategic areas like mall entrances and parking areas ,even drivers lounge. Offer promotional discounts or freebies as tie up with the Gym, also for movie goers, and special rates on lean hours. They could also sponsor events on health & wellness as well as hair styling competitions , & offer gift certificates or discount coupons on their services to customers buying beauty products in the department store.
4. They need to invest however on a barbers chair to utilize other areas for their female section and not compromising their spa services. They just have to schedule & traffic customers availing of spa services to avoid congestion.
