CASE ANALYSIS 4 LIVE CASE

A CASE ON BEYOND LOOKS SALON & DAY SPA

Done by Group 1 Aurora R-09-03 Amey R-09-20 Shraddha R-09-21 Shannon R-09-25 TallulahR-09-28 Egina R-09-29

Beyond Looks Salon & Day Spa Renew.Refresh Revive Genesis Mrs. Rundha Raikar proprietor of Beyond Looks Salon & Day Spa came to Goa in 1984 at the age of 19. Initially she was completely engrossed in taking care of her two sons. When they started schooling she had a lot of free time on hand and wanted to put it to some use. She always had an interest in beauty and body care so in 1994 she joined a 6 months beautician course to develop on her interests. After completion she wanted to set up her own salon but was baffled upon how to go about. Luckily, Mrs. Rundha on attending an exhibitions held by MahilaMandal met Mrs. Sheela Naik, an employee of a beauty parlour in Comba who directed her towards the owner of the same as she wanted to sell out the place. With the help of her father in law and her husband Mrs. Rundha bought the salon for Rs75, 000/-. She started operating the salon in 1995 under the name Shringar. Initially, her business picked up quickly. At that time very few people in Goa had the expertise in applying Mehendi which became Shringars Unique Selling Point and she would also get special orders to make Mehendi cones from hotels and local customers. She then had begun conducting classes on training students in various Mehendi designs. Mrs. Rundha is a resident of Fatorda and received most of her clients from her locality itself which became inconvenient for them to travel to Comba. Therefore in the year 2000 she opened another branch of Shringar in Fatorda opposite Littles school. At this branch she employed 9 people among which 3 were trainees. After 3 years she sold the salon as the place she was operating in had common amenities and unhygienic conditions which led to uncomfortable conditions for the staff as well as customers. To tackle this, she purchased a ground floor apartment nearby and spent Rs.2, 00,000 on purchasing and furnishing it. The salon was equipped with air conditioners, a pantry, washrooms and had different sections for hair, facial, waxing etc which gave more privacy and a cozy ambience to the customers. Mrs. Rundha wanted to further expand her operations. Hence in 2006 she purchased a flat on the 1st floor near Vibes in Comba and a total amount of Rs. 25,00,000/- was spent to begin its operations of this salon. The Goan people would find it difficult to pronounce the name Shringar therefore changed it to Beyond Looks. It was also inconvenient for the older people

as they would find it difficult to climb the stairs. In 2009 she purchased two shops on the ground floor, had it fully furnished and designed it with attractive interiors to give a good ambience, which amounted to Rs.1crore. She interconnected the shops on both the floors and began its operations in April 2009. A Transition During social gatherings or when meeting her clients, the men would always complain that there are so many salons for women but nothing for them. They requested her to start something for men. So now Beyond Looks catered to men and women (Unisex Salon). The workforce of this salon is 12 employees and 2-3 trainees which also include 4 male employees. Mrs. Rundha gives a lot of emphasis on learning new things and keeping herself and the staff updated on the recent trends in beauty and hair. She keeps going to Mumbai to get herself as well as her staff trained from Loreal Proffesional Paris in a year they have about 5- 6 training sessions for each employee. She also subscribes to various beauty, health and hair product magazines to know about imported products, new launches and to look out for suppliers. She says that it is necessary to know more than the client because if you dont know what your client wants or is talking about that the customer will look out for better places to go to. All employees have to have a minimum qualification of 12th pass and a beautician course. The salary depends on the experience of the employee. The minimum amount paid to a new employee with the minimum qualification and experience is Rs. 2000/- . Besides their monthly salary the employees are given 10% commission on services provided by them. This encourages employees to establish good relations with clients provide better service and motivates employees to work better and stay in the Salon. Picnics are held for employees. The Salon maintains a book, wherein all the details of the customers are entered like: Name, Date, Service they availed of and price, Name of the attendant, in & out timing, Phone number and address Mrs Rundha found it difficult to manage three salons and Shringar in Comba was operating at a very small scale so she sold the beauty parlour to one of her employees and decided to concentrate on the remaining two salons. Shringar Beauty Parlour is the sister concern of Beyond

Looks Mrs Rundha strongly believes if you want something ask yourself how you will do it, find a course of action. Believe in yourself and you will succeed. Competition The main competitors for Beyond Looks is Papillon- the beauty lounge, Neomis, Eden, Jawed Habib Hair & Beauty Salon, La Madame Beauty Parlour, Shehnaz Hussain Herbals and Jacquelines. These were considered her major competitors as the services they provided, type of products used i.e. Branded Loreal products etc, price range of services provided were similar to that of Beyond Looks. They are also Salons Marketing Mrs. Rundha doesnt use a lot of media to advertise her salon she mostly relies on word of mouth. Beyond Looks is only advertised on Goan magazines, local newspapers and pamphlets are distributed, also very few promotional schemes and festive offers are given. Target market The target market of Beyond Looks is Teenagers, house- wives, working men and women, senior citizens and foreigners. Revenues: Beyond Looks earns from the womans section 75% and from mens section 25% of its total revenues. Their revenue figures are: Months January February March April May June July August September October November Revenues (in Rs.)2010 2,85,000 1,95,000 98,000 2,20,000 3,90,000 2,42,000 2,10,000 1,60,000 1,90,000 92,000 2,80,000 Revenues (in Rs.)2009 Highest/Moderate/Lowest Moderate Moderate Lowest Moderate Highest Moderate Moderate Moderate Moderate Lowest Moderate

3,84,000 2, 41,000 2,00,000 1,67,000 1,96,000 91,000 2,75,000

December

4,37,000

4,29,000

Highest

These above revenue figures have not been consistent over the two years. During the month of March they get the lowest revenue mostly because it is childrens exam time and hardly any women come to the salon. Also they get lowest revenues in October. Their peak season is in the month of December and May. During the other months it is moderate. During weekdays, 7-8 women & 4-5 men come to the salon, On Sundays, 8-9 men & 3-4 women come to the salon. Men are more than women on Sundays as they have an off .Men mostly go for Haircut, shave, hair coloring, facial, pedicure, foot massage. Women mostly go for eyebrows, waxing, haircut, pedicure, manicure, hair spa, hair fall treatment. They also do not give any discounts but sometimes do for senior citizens. On a daily average 10 -13 clients come to Beyond Looks. Products and Services provided Beyond looks uses products of LOreal Professional Paris, Christine Valamy- U.S.A, Schwarzkopf Professional, Aroma Treasure, Ala naturals. Mehendi cones orders and designing is done, Bridal make up orders are taken and the team goes to the customers. Threading Eye Brow Upper Lip Chin Forehead Sides Full Face Bleaching Face Neck Half Back Full Back Hands Full Hands Under arms Full Legs Feet Full Body Waxing 30 10 20 20 40 100 150 70 130 250 120 300 50 300 150 700

Full Hands Half Hands Under Arms Half Legs Legs Full Legs Bikini Line Full Bikini Feet Full Front Full Back Stomach Full Face Full Body

100 90 50 100 150 200 200 400 50 150 150 100 100 650

Hand & Feet Care Change of Nail Polish Cut File/ Nail Polish French Nail Polish Plain Nail Art Spa Manicure Spa Pedicure French Manicure French Pedicure Royal Manicure Royal Pedicure Facial Includes: Deep cleanses, improves texture & blood circulation, eliminates toxins & helps to rejuvenate skin, reduces wrinkles & helps in keeping the skin nourished & hydrated- (Duration: 60/90 minutes) 40 60 100 150 250 300 250 300 500 500

Haldi Vitamin E Whitening Fairness Aroma Gold Blossoms Fresh Fruits- Orange, Black Current Marine Face- Rejuvenating facial Skin Tightening (Thermo Mask) Skin Treatments Dark Circle Reduction Glycolic Chemical Peeling A.H.A Peel/ Veg Peel ( For Pimple Marks) Herbal Enzyme Citra Peel Body Care Under Arms Beautifying Hands Beautifying Back Beautifying Neck & Back Beautifying Derma Peel ( Body Polishing) Full Body Polishing Hair Care Hair Cuts Any Cuts Hair Cuts- With Wash Plain Wash- Shampoo Plain Wash- Conditioner Hair Colours Loreal Hair Touch Up Loreal Inoa Hair Touch Up ( No Ammonia) Global Hair Colouring (According to Tubes) Hair High Lightening (Full Hair Streaking) Crown High Lightening (Streaking) Double Shade Colouring Clients Colour Colour Application Application with Wash Hair Treatments

500 500 600 700 800 800 1000 1000 400 800 1200 1500 1800 200 400 600 800 600 3000

250/350 350/450 150/200 200/250

400 onwards 550 onwards 900 onwards 1000/1500 onwards 1000 onwards 2000 onwards

250/300 onwards 400

Head Massage Deep Conditioning Ceramide Protein- Hair Fall Hair Spa Dandruff Exfoilation Damaged Hair Hair Straightening Glatt- Rebounding X- Tenso Shine Bond X- Tenso Smoothing Hair Styles Hair Up Styles Low Bun Formal Blow Dry Blow Dry with Straight Iron Was with Curling Iron Was/Blow Dry & Ironing

200/400 250/400 500 onwards 600 700 900

4000 onwards 3000 onwards 3000 onwards

350/500 350/500 350/500 400/600 400/700 500/700

Bridal Package - Body Massage/ Body Polishing/ Hair Spa/ Hair Styles/ Facial/ Waxing/ Manicure/ Pedicure Silver Package Gold Package Diamond Package 2500 4000 10,000

Problem: Beyond looks beauty salon and spa is finding it difficult to increase its stagnated small customer base Causes: Lack of awareness Since this a new salon many people are not aware of its existence and lack of media advertisements also has not been able to increase awareness about the salon.

Lack of advertising and promotion

Advertising can influence where and what customers buy, especially when the ads address concerns about value. Beyond looks believe in giving value of money but they have not been able to communicate this to potential customers. It is critical to advertise in a competitive business, and build long-term positive consumer perception of the brand. Competition form well established branded players

Competitors like Papillon- the beauty lounge, Neomis, Eden, Jawed Habib Hair & Beauty Salon, La Madame Beauty Parlour, Shehnaz Husain Herbals and Jacquelines have established a strong customer base through their advertising and promotions and new customer are easily attracted to these places Do it yourself home products

Now various companies have come up with do it yourself products, which are simple and easy to use. This hampers the customer base of a beauty salon

Solutions: Advertisements

Creating Website for Beyond looks

More and more consumers are turning to the internet to find products and services, and locate businesses in their area. Creating and promoting a website for beyond looks will be a good business marketing strategy to be competitive now and in coming years. It will reach to new customers and increase awareness The website will include a home page, services page, product reviews page, special offers page, staff profile pages, online guestbook, and contact page. Email addresses can be collected on the site and stored in the email database this way beyond looks can develop custom email promotions to send out to their customers. Direct mail advertising is a great way to stay in touch with existing customers, and has potential to bring in new customers Online Appointment Booking the customers can book appointments through the Web site right away. Interact with your customers through the website customers know more about the business with little or no cost. Beyond looks can post special events, such as demonstrations, on your events calendar. Also it can send electronic newsletters to your customers notifying them of specials and new products or services. Ads should also be placed on search engine and social networking sites. Become sponsors Sponsor exhibitions, events, fashion shows like Miss Goa etc. This will help get customers as well as get a platform to advertise

Promotions Some promotional options to be implemented by Beyond Looks salon.

Target Group Promotions- Promotions aimed at a specific target group (men, working

New Client Promotions - Any efforts you make to attract first time customers to your

women, teens, etc.) and including both new and existing clients.
Theme Promotions - Holiday specials, seasonal promotions, anything with a specific

theme are a Theme Promotion Existing Client Promotions

Make-Over Contest:

Beyond looks should advertise make over contests and can have clients and potential customers submit photos and letters explaining what they would like to change about their appearance and why they want to have a makeover. Then the salon can select numerous candidates to undergo the transformation. The client receives a free gift item (preferably a retail product). Introduce spa packages

A Day for Adam, A Day for Eve, Adam and Eve couple package Tie up with resorts in Goa

Beyond looks should tie up with resorts in Goa to attract more customers and reach to a larger customer base. The resort will provide a platform for Beyond Looks to meet customers. Also the resort will advertise the salon and day spa when advertising the services provided. Beyond looks will have to pay some amount of margin to these resorts but it is cheaper than them spending to advertise to customers individually. Ht e resort will want to have this tie-up as they will be able to attract customers who want all services at one place. This tie- up will be very beneficial when customers from outside Goa come to get married in resorts. This is specially for their Bridal packages.

Themes for promotion

Select catchy Themes for Salon and Spa Promotion and advertise them through newspapers, flyers and magazines

New Years Eve/ Day Valentines Day Mother Day Easter Fathers Day Christmas Day Diwali

Coupons and gift certificates (during season time or festive offers)

The certificate will entitle the bearer to avail of the spa or salon services provided that it is within the price range of the certificate. Some gift certificates will also allow the bearer to avail of the services that are listed on the certificate. Customers can use this as gift items to give someone also. During season the salon & spa can give these offers. The salons should keep records of amount spent by individual customer .This offer can be divided into four levels bronze, silver, gold and platinum. If during the season the customer spends Rs.3, 000/ - bronze level, Rs, 5,000/silver level, R. 8,000 /- gold level Rs 10,000/- platinum level. At different levels customers get: Bronze level any service price range Rs. 200 -300/Silver level - any service price range Rs. 400 500/Gold level - any service price range Rs 600 -700/Platinum level - any service price range-Rs. 900 -1000/ Introduce a Pre paid membership card

A pre-paid membership can act like a pre-paid account that you open with the salon. You open this account by making an up-front payment. After making the up-front payment you receive a Membership Card which will show the opening balance in the account. Once the customer receives the Membership Card, each time they take any service they get a discount on the price during festive seasons. The price after the discount is reduced from the opening balance on your Pre-Paid Membership Card and the new balance is reflected. The customer can enjoy the benefits of Pre-Paid Membership till their account balance becomes nil, after which you may have to renew the Pre-Paid Membership by recharging the account once more. The entire balance on the Pre-Paid Membership Card has to be utilized within the prescribed validity period. Also the salon can charge for the membership card and for its renewal. Also this card will accumulate points on every service availed of depending on the price of the service. At the end of the validity of the card and before renewal they can choose a coupon to avail of the free service they can avail of depending on the number of points collected. Discounts

Customers can also enjoy a flat 10 15% discount for every 3 4 friends that they refer to or get to the salon which will be provided with these Bring-In Discounts on their next visit. From the customer database that the beauty parlor stores or records each month it will select one customer that has been most profitable to them or has given them maximum sales will be awarded i.e. through discounts. They will be provided with discount coupons worth Rs. 500 and can avail of any service within that budget. This will enhance or improve high budget sales to the beauty parlor.