Hairdressing Sphere - Demand, Price Elasticity & Future Analysis - Assignment Example

HAIR DRESSING: A Survey for Demand, Price elasti & Future analysis INTRODUCTION We all know in this day and age hair dressers gain their own importance globe wide, the only motive is that they are gaining more and more youth as their customers throughout the world, as the youths are interested to attract the outside world's attraction using various styles like hair styles, dressing styles and so on. There are many types of hair styles for an instance Indians used to put plating for their long hair but at the same time western people are used to free hair. so, the taste differs in the same way the hair styles are getting updated regularly we can see many types of hair styles fringes, fullness, ringlets, partings, hair pulled back. So we can see the details of a hair dressing saloon including the cost structure, infra structure and the techniques they use to meet out the needs of the customer. INFRA STRUCTURE & COST STRUCTURE: First of all, I would like to take Mayura hair dressers as my focal point they are located in Coimbatore, we shall see the infra structure and the cost factor of the saloon. They have started the hair dresser saloon in the year 1980 with about 2 hair stylists but the shop got itself established in a decade span that is in about ten years they have recruited about 15 hair stylists and established the shop to a great extent. This only has happened due to the increase in the demand of the number of clients they have got. The infra structure at the starting was just 200 sq.ft with an capital amount of rupees 1000$ which was most sufficient at that stage but rapidly it got increased to an amount of 2000 sq.ft in the year 2003 and got some increase in people. Simultaneously, the number of clients also got increased we can say that one of the reason for this is the rapid increase in population. Why because is that the rapid increase in growth of the population increases the demand of the particular product here the product is considered to be the hair stylist. COMPETITION: At the same point we have to speak about the competition. competitions is the main factor faced by each and every business a work without a competition is considered to be a life without soul so Mayur also had their competitors but they was able to survive only because that they adopted certain techniques that best suited for the modern trend. They added some more machinery to the shop like the advanced mode of hair dryer and hair trimmer and at the same time they also started to import certain things from the foreign countries like, the latest cosmetics and the beauty products. This was considered to be the utmost effective trend followed by the mayur hair stylist. From all these things we can understand that the cost they have invested is higher and the efforts they take to develop the business is the high light of the business tactics. It was considered to be the main reason for the establishment and the survival of the company amidst a load of competitors that they had. OBJECTIVES: We also have to articulate about the plans of the hair dresser. The main motto of the hair dresser is to promote the business in all modes and classes of the people the need for the styles of the hair is also to be established they make it out as their aim just because for the reason only if they increase the literate knowledge they can increase the number of clients to their saloon. As many of the people nowadays think that hair dressing is not that much important. But the real fact is that only if a person gives proper importance to the hair and dressing style the real elegance and the beauty gets enhanced so they also include this under their aim section. If a company is said to be established for a short term progress then there is no need for vision and the mission structure but when saying about a long term run a lot of things has to be kept in mind. Hair dresser is a case that is considered to be a long term runner so for the same purpose they have adopted some mission and vision the mission that they have accepted is that they should satisfy each and every customer. The best they provide to the customer is the best that they can get back. so they also say that each and every customer worth more than a 1000$ treasure. PROBLEM FACED: But, saying about the problem that are faced by the company the main drawback for the concern is that they are not able to provide immediate attention for the customers who come to the shop. At least a customer has to wait for 20 minutes this is happening because the number of clients who come for an hour exceeds the number of laborers who will be able to serve only a number of 3 per hour. And the other one problem is that they have to adopt particular technology to sterilize the knife and the other products that they use to handle with the customers. There are certain establishments that they have adopted like using the computer software. The nature of that particular software is to load the picture of the customer and would change different hair styles to the uploaded picture and selects the one particular style that suits the client the best. SUGESSTIONS: Here if we wanted to give the best suggestion to the hair dresser regarding the time consumption for the waiting time to the customer we can say that he can use the time queue systems like FIFO that is the first come first out or else the other manipulation in the same way or should have to increase the number of stylists in the saloon nothing apart from these would help the Mayur hair dresser to come out of the problem. On speaking about the future and the long term run of the concern one thing has to be kept in mind the proper increase in the number of the hair dressers and in the same way new hair styles should have to be implemented and new techniques and the machineries also have to be updated. PRICE ELASTICITY: The price elasticity factor could be said in the means of the demand and it also could be explained in the inflation and deflation methods according to managerial economics definition. So, that if the price of one particular hair style is decreased the number of customers who come to the shop increases which leads to the increase in demand and at the same time if the price of a hair style is increased it leads to the decrease in the number of customers who come to the shop which in turn also decreases the demand for the hair stylist. On speaking about the total cost of the shop it is again based on the demand term where if the demands curve increases to a higher level it is obvious that the total cost also get increased. FIXED & VARIABLE COST: To speak about the fixed and the variable cost for the hair stylist the fixed cost would be only one factor that is the asset which includes the machinery, chairs, nor other instrumental things whereas the usage of the cream, powder or other cosmetics would be considered as the variable cost because they differ according to the number of customers who come to the shop so they are about the variable cost which are not assets. The business in the mayur hair dressers run efficiently for the main reason that they are concentrating on all the major aspects such as customer satisfaction, needs and demand so it is running effectively and efficiently. when speaking about the long term and the short term run the business would flourish in a higher range only in the long run the reason is that the hair stylist could give concession for a product for a short period until it reaches the hearts of the customer after which he will increase the product rate and at the same time he will later increase the price of the product and introduce a new style for which he will decrease price so that this will be effective only in the long run so the hair stylist shop flourishes only when the shop runs in a long run. FUTURE FORECASTING: In the future five years based on the calculation of the number of customers increase the hair stylist shop would get thrice the total number of customer input. At the same time the number of the employees and the annual turn over and the infrastructure, total cost everything will face a tremendous change though we cannot predict exactly as the datas or the statistics that are available are not reliable. Read More