La Fleur Blanche Salons Mission, Vision, and Culture - Case Study Example

Table of Contents Particulars Page No. 1.0 Executive Summary 2 2.0 La Fleur Blanche Salon’s Mission, Vision and Culture 3 3.0 Business Description 4 4.0 Opportunity Analysis and Research 5 5.0 Marketing Strategy and Plan 9 6.0 Management and Operations Plan 10 7.0 Financial Analysis and Projections 15 8.0 Appendices 21 9.0 References 30 1.0 Executive Summary La Fleur Blanche Salon shall operate in Paris, France as a spa and salon provider to all potential customers providing its excellent services at customer’s doorsteps. The idea is a new and unique one to differentiate it from its rivals and gain competitive advantage and lure the cream profits. With salon and spa industry showing a phenomenal growth the probability of business failure is very low and even if the business just captures 10% of the total market share it shall be able to survive both in the long and short run. Competitive analysis highlights that the biggest threat to the company is indirect customers who are physically present in the market with their outlets and capture 90% of the market share, however recent research conducted indicates customers desires to avoid long queue in salon and services at their doorsteps. Furthermore, La Fleur Blanche Salon shall follow a price-value relationship and assure customer satisfaction via global talents and eco and herbal products to ensure high quality services. Services shall be available all 7 days a week and technology shall be used for booking and customer complaints and feedbacks. Financial analysis reflects long term feasibility of the business with growth and sustainability and a ROI of over 79% considering the current market trend and customer demand. 2.0 La Fleur Blanche Salon’s Mission Vision and Culture 2.1 Mission Statement The mission of La Fleur Blanche Salon is to supply services and products which are of superior in quality and fairly priced to ensure the complete enhancement of our client’s physical appearances and physical and mental relaxation. Guaranteed customer satisfaction is the prime motto of the company (Grusenmeyer and David (2001). 2.2 Vision Statement The vision of the company is emerge as the leading salon in Paris, France and serve its customers with its excellence home services in hair and spa services with a view to serve customers as per their specific needs and requirements. 2.3 Culture The La Fleur Blanche Salon lay emphasis on customer excellence through a culture of diversity, team spirit and ethnicity to deliver its existing and potential customer with home services and outlet services for latest hair dressing and spa treatment to ensure latest fashion and relaxation. Employees in the organization are selected on basis of best and global talents who are expertise in their field of hair dressing and spa treatments and come from different cultures and background with a sense of coordination with each other and customers to eliminate any cultural differences. 3.0 Business Description La Fleur Blanche Salon is the first salon to provide unique services of all salon requirements to customers at their home ensuring complete accessibility and comfort to its customers with a prime motive to ensure maximal customer satisfaction. (Prosch, Allen, Jose, Valluru, Wichmann, Dorn, and Semerad 2000). The salon shall be focusing on home salon and spa services with a few outlets in Paris to ensure targeting customers who shall want salon services at their home. The salon is a full-service beauty salon consistently seeking to provide high services, quality products and furnishing a relaxed and comfortable atmosphere to its customers by rendering all its services at their doorstep at an acceptable price-value relationship. The salon shall also maintain a continuous friendly, fair and creative work environment which aims to respect diversity, hard work and new and creative ideas. 3.1 Business Definition Questions What products and services will be sold by the business? La Fleur Blanche Salon shall look to render all salon and spa services to customers at their door steps aimed towards comfort, fashion and excellence services. Which customer segment shall the business target upon? The salon shall target customers who enjoy a more relaxed atmosphere in their home and avoid long queue at the salon parlors. How will the business deliver its services and products offered All potential customers can make a call at a free toll number or directly call the land-line number of the salon along with booking system available at the company’s website (www.lafleurblanchesalon.com) and services shall be provided at the customers doorstep. 4.0 Opportunity Analysis and Research 4.1 Industry Analysis There are over 10000 salons and spa in France with over 2000 salons and spa in Paris alone. The hair and spa industry generates over $11 billion annually with day spa accounting to over $6 billion of the total figure and is anticipated to grow over by 26%. With rising disposable income and people becoming more inclined towards the use of salon and spa for both beauty and relaxation purposes the spa and salon industry is anticipated to grow at an alarming rate of 16%. The growing trend in salon and spa industry highlights the following critical issues. With rising ecological standards and awareness on environmental issues, people are becoming more conscious of the use of natural cosmetics over chemical based products and more directed towards spa for mental and physical relaxation. This provides an opportunity for salon and spa business to focus more on natural products for which there is an increasing demand. The salon and spa business today comprises far more than just beauty products as there are a large range of products and services available like hair dressing, nail and tanning salons, massage parlors, perfumes, colognes etc of which demand has been increasing in Paris and on a global scenario. The use of internet has been increasing with customers searching for best spa and salon provided. Further with increasing workload and pressure people try to avoid the long queue in salons and a survey recently conducted in Paris highlights the increasing demand for salons and spa treatment at door steps with advanced feature of booking the same through online or telephonic means. 4.2 Environment Analysis Paris is the most popular city of France and known for its fashion world on a global basis. Latest demographics indicate that the city has 2,234,105 inhabitants while its metropolitan area is one of the largest population centers in Europe with over 12 million inhabitants. Above all the population aging between 15-64 years, account for nearly 77% of the total population which shows immense opportunity for La Fleur Blanche Salon. Moreover, there are a large tourist being attracted to the city every year which is showing a rapid increase in terms of their volume and lured by the fashion industry which includes hair dressing and relaxation like spa. Further the country has a strict legal system which few laws specially designed for hair and salon industry making it easier for La Fleur Blanche Salon to start its business. Technology seems to be growing at a rapid pace as well to meet the new needs and requirements of the people in every sector. This growth in technology is more of a boon for La Fleur Blanche Salon as it shall help to target its customers in a more comprehensive manner and customers shall be just a click away for salon services offered by La Fleur Blanche Salon at their doorsteps . 4.3 Proof of Market La Fleur Blanche Salon shall be looking to target customers of the age group 15-64 who are more willing to have different hair dressing and spa services being offered to the customers and accounts for nearly 77% of the total population. Further a research conducted recently on drawing a sample of age group 15-64 reveals that every individual on an average visits a salon twice every month which could be increased if services are provided at their own home. Therefore with the estimated data on an average there could be 2234105*2 = 4486210 customers on a monthly basis which does not account for the larger segment of population in the city and the large number of tourists who visit the city on a continuous basis. With initial market target even if La Fleur Blanche Salon looks to cover just 10% of the potential market draws a large number of customers in its list and shall be even to reach its break-even within a year and ensure long term feasibility and sustainability of its business in the longer run. 4.4 Target Market On a demographic basis La Fleur Blanche Salon shall look to target individual’s who fall in the age group of 15-64 years and shall include both male and female. The major focus shall be on adults who like to spend more on hair dressing and spa services within the middle income category of the customer pyramid as the services shall be fairly priced to ensure a price-value relationship. On basis of psychographic the focus shall be on customer’s who are more likely to avoid long queue in salons and spa parlors and like the same services to be provided at their doorsteps. Further potential customers who are more likely to be fashionable shall be provided with new innovative services which shall include hair dressing from leading and renowned hair dressers. Furthermore, beauty products shall range from natural to herbal products to ensure that customers who are skin conscious and more likely to environment friendly products are provided the best of the services with equal emphasis on spa to provide complete relaxation to its potential customers. On a geographic basis, La Fleur Blanche Salon shall initially look to target the main city of Paris and then at the later stage of its business operations move to cover the France and other European markets through a chain system. 4.5 Competitive Analysis Salon and spa industry in Paris is characterized by intense competition owing to the fact that there are there large number of entrepreneurs already operating in the industry which includes both domestic and international competitors and easy entry and exit system. To ensure and taste success in this competitive environment La Fleur Blanche Salon shall look towards providing a unique solution to differentiate it from other rivals by providing salon and spa services to the customers at their doorsteps and gain a competitive edge over its existing and potential rivals. Direct Competitors Penny’s Hair Salon: This salon is looking towards the same direction as of La Fleur Blanche Salon but however, has failed to maintain a commitment towards customers due to long delays in providing its services at the doorsteps of customers owing to a poor management system where many bookings had been cancelled and lack of equipments to ensure maximal customer satisfaction. Furthermore, the Penny’s Hair Salon has been losing market share on a considerable basis and today stands to occupy just 2% of the total market share of the salon and spa industry in Paris which is more likely to fall with the emergence of new competitors providing similar home services for salon and spa. Indirect Competitors La Fleur Blanche Salon shall face intense competition from this category of competitors who does not provide a home service but have a chain system and are physically present in many locations of Paris with a brand name and image of their own and where potential customers like to go because of their expertise in their fields and warm and cozy atmosphere with fairly pricing system. The market share is very high as they occupy the dominant position in salon and spa industry with around 90% market share. However, La Fleur Blanche Salon shall have an added advantage of its own as it shall be providing salon and spa solutions to potential customers at their own home which shall be a new and unique experience to customers who on a continuous basis are looking for such a change. 5.0 Marketing Strategy and Plan 5.1 Product/Services The unique characteristics of La Fleur Blanche Salon to provide salon and spa services to its customers at their home itself differentiate it from its existing rivals. Its services hall include Hair: cuts, relaxers, shampoo, conditioning, curling, reconstruction, weaving, washing etc. Nails: Manicure, pedicure, nail arts, polishes and sculpted nails Skin Care: Body waxing, facials, massages etc. Spa: a combination of mix of services provided by Day spa and Harnn Natural Home Spa along with Herbal and traditional Thai Spa. The customers shall have an added advantage of money guarantee and maximal customer satisfaction with quick and prompt booking system and delivery of services as per scheduled date and time with a choice of their hair dressers and other workforce. 5.2 Pricing La Fleur Blanche Salon shall follow a competitive pricing strategy with price-value relationship to ensure maximum customer satisfaction. The brand name hair products shall range from$5-$50 with a mark-up of approximately 60% above cost for retail price with a range of $24 to$80. This is based on competitor pricing and the services will average to about $50 ranging from $14 for a hair cut to $180 for a complete beauty package. 5.3 Promotion La Fleur Blanche Salon shall rely upon a lot of promotional tools which include special discounts during festive season and off-season discounts along with different packages for complete beauty treatment. The company shall look to promote its business using different medium like its own website, advertisements on print media including social networking sites and pop-up windows. Mouth-to-mouth publicity and sponsoring events will be other promotional tools the company shall look upon. 5.4 Place This feature is a unique one for La Fleur Blanche Salon as it shall locate its office in a known place in Paris but however provide services to its potential customers at their own home and places they desire. 6.0 Management and Operations Plan 6.1 Management Team & Employees The management team shall consist of Mr. Thappar who shall act as the General Manager and shall look upon all activities and performance. Further there will be Miss. Suzane as the Finance Manager, Mrs. Guptill as the Operations Manager and Mr. Steyn as the Marketing Manager. Other employee’s shall include hair dressers, spa therapists and other cleaning and supporting staffs. 6.2 Organizational Structure 6.3 Key Roles and Responsibilities Mr. Thappar: He shall act as the general manager and shall be overall responsible for effective functioning of the team and ensure that organizational goals and objectives are met on a continuous basis. Miss Suzzane: She shall look after the finance department and ensure formulation of corrective accounts and financial reports along with a continuous involvement in preparing budgets and finding variances if any along with major responsibility of making periodical and prudential financial forecasts for effective financial decision makings. Mrs. Guptill: She shall be presiding as the operations manager and will be responsible for customer’s booking order execution along with feedbacks and complaints from customers and other employees if any. Mr. Steyn: He shall be the marketing manager and ensure that profits are extracted and targets are achieved along with promotional tools being used in a comprehensive manner to ensure enhancement of target market. 6.4 Compensation Structure Mr. Thappar- General Manager- $ 4500 per month Miss Suzzane- Finance Manager- $3000 per month Mrs. Guptill – Operations Manager - $ 3000 per month Mr. Steyn – Marketing Manager- $ 3000 per month Hair Dressers- $1500 per month per hair dresser Spa Therapists- $1500 per month per spa therapists Supporting Staff- $ 500 per month 6.5 Location La Fleur Blanche Salon shall be providing spa and hair dressing solutions to customers at their home with a moderate sized office located in Gatsby Road, Paris. 6.6 Physical Facilities and Equipments The business is based on providing spa and salon services to customers at their home with a moderate sized office where bookings shall be done both through telephones and internet and services shall be scheduled as per customer needs and wants. Further their will be store room attached to the office for storing the raw materials and equipments required. The list of equipments required by hair dressers and spa therapists in serving their services includes. Barber Scissors: These are specially designed scissors used for hair cutting and hair dressing (Costing $25) Hair Dressing Kit: These are specially imported from China with new and advanced features which consume less electricity and include hair dryer, facial massage equipments etc. Beauty Products: These shall include a wide range of products ranging from herbal to natural make up kits. Olive Oil: These shall again be herbal products predominantly used for Thai spa. Computer: A computer will be placed to ensure booking and delivery system. Others: This include towels, mattress etc. 6.7 Production/ Service Process The service process shall include order booking by the customer over internet or telephone and then scheduling the date and time of service with feedbacks from customers for future improvements. 6.8 Production/ Service Capacity It is an important criteria in any business and La Fleur Blanche Salon providing services at the customers doorsteps shall ensure to run each day of the week from 10.AM. to 10 P.M. at night and shall serve approximately 15-20 customers per day for which raw materials will be determined accordingly and shall vary as per seasonal demands and festive seasons. 6.9 Raw Materials and Suppliers All the major supplies like comb, towels etc shall be purchased locally whereas the beauty products and hair dressing kit shall be imported from the best of the suppliers to ensure product quality. Further for the first 3 months until a credit rating is established raw materials will be purchased on a basis of C.O.D. 6.10 Inventory Control La Fleur Blanche Salon shall operate on Just-In-Time mechanism and shall maintain a safety or buffer stock of all its raw materials to meet contingency and emergency situations. Further the operation manager shall keep a record of all inventory and shall place an order every time the inventory falls below a minimum level which shall be dependent on the usage and market demand. 6.11 Quality Control La Fleur Blanche Salon shall aim at superior quality in all its products and services. No compromise shall be made with regards to quality and there shall be a feedback and customer complaint system to ensure best of services and high customer satisfaction in all its services provided. 7.0 Financial Analysis and Projections 7.1 Start up Cost and Financing Financing Summary Money Needed Amount Estimated(E) or Actual(A) Source of Funding Amount Start up cost $50000 Estimated Personal Cash $20000 Working Capital $30000 Estimated Line of credit CFDC Loan Other $20000 $35000 $5000 Total $80000 Total $80000 Startup cost Description Cost Professional fees $300 Licenses/Permits $300 Office Supplies $6000 Furniture/Display $2000 Utilities $300 Inventory $2000 Vehicles $15000 Special Equipments $ 20000 Miscellaneous $100 Total $60000 Working Capital (first month expenses) Salaries $20000 (including 2 hair dresser and 2 spa therapists monthly salary) Electricity and Telephone $1500 Rent $3000 Advertising $2000 Taxes $200 Total Loan Payments $1500 Utilities $200 Subscriptions/professional fees $100 Owner Withdrawal $1500 7.2 Projected Cash Flow (All Amount in $) Description Jan Feb March Apr May June July Aug Sep Oct Nov Dec Beginning Cash 25000 25500 26000 26500 27000 27500 28000 28500 29000 29500 30000 30500 Total Cash Available 25000 25500 26000 26500 27000 27500 28000 28500 29000 29500 30000 30500 Cash Out Rent 3000 3000 3000 3000 3000 3000 3300 3300 3300 3300 3300 3300 Telephone and Electricity 1500 1500 1500 1500 1500 1500 1650 1650 1650 1650 1650 1650 Salary 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 Insurance 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 Advertising 2000 2000 2000 2000 2000 2000 2100 2100 2100 2100 2100 2100 Taxes 200 200 200 200 200 200 200 200 200 200 200 200 Loan Payment 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 Utilities 200 200 200 200 200 200 200 200 200 200 200 200 Owner’s With drawl 1500 1500 1500 1500 1500 1500 1700 1700 1700 1700 1700 1700 Miscellaneous 100 100 100 100 100 100 100 100 100 100 100 100 Total Cash 31000 31000 31000 31000 31000 31000 31750 31750 31750 31750 31750 31750 Note: Opening cash is estimated to be retained back by an increase of $500 Rent and Electricity to increase by 10% after every 6 months Advertising expenses to increase by 5% after 6 months Withdrawal to increase by $200 per month from 6 month onwards All above figures are estimations with possible seasonal and business operations variances. 7.3 Projected Income Statement Description Year1 Year2 Year3 Sales 600000 720000 864000 COST OF GOODS SOLD Raw Materials 100000 120000 144000 Supplies 50000 60000 72000 Labour 10000 12000 14400 Total 160000 192000 230400 Gross Profit 440000 528000 633600 Expenses Rent 37800 41580 45738 Telephone and Electricity 18900 20790 22869 Salary 240000 240000 240000 Insurance 12000 13200 14520 Advertising 24600 27060 29766 Taxes 2400 2640 2904 Loan Payment 18000 18000 18000 Utilities 2400 2400 2400 Owner’s With drawl 19200 21120 23232 Miscellaneous 1200 1320 1452 Total Expenses 376500 388110 400881 Net Profit 63500 139890 232719 Note: Sales have been increased by 20% along with direct expenditures. However expenses has been increased at 10% which is much higher than the market trend to show profitability even in worse situations 7.4 Return on Investment ROI= ( Average Net profit/ Investment)*100 ROI= (63500/80000)*100 ROI= 79.37% (average for the 1st year) 7.5 Projected Balance Sheet Balance sheet for 1st year Assets Amount Liabilities Amount Current Assets Owner’s Equity 30000 Cash 45500 Retained Earnings 63500 Inventory 2000 Total Shareholder’s equity 93500 Account Receivable 5000 Supplies 6000 Special Equipments 20000 Fixed Assets Vehicles 15000 Appendix Resumes Mr. Jayesh Thappar Contact Information Telephone: 02234679 Mobile: 7869809987 Email: thappar123@gmail.com Personal Information Date of Birth: 7th September 1986 Marital Status: Married Personal Profile Team leader and love working in new challenges with high commitment to work and ensure long term success. Excellence in handling contingency situation and come out with solution which are unique and competitive in nature. Educational Qualifications 2010: 1st class distinction pass in HRM from Oxford University London. 2008: Graduation from St. Xavier’s College in Business Operations 2011: English Course from Blitz University Special Skills Fluency in Spanish, English and Russian Languages Computer knowledge with special knowledge in SAP. University Projects Business Plan for salon and spa Interviewed senior HR at Oxford, London Established a training program for future market trends in Salon and Spa Industry. Hobbies Love travelling and mixing with people with a deep passion for sports like tennis. Miss Rosy Suzzane General Information Nationality: African Gender: Female Marital Status: Unmarried Date of Birth: 12th August, 1992 Email: rosy.suzane@hotmail.com Objective To work in a stimulating and challenging environment to highlight my knowledge and skills to best of my efforts To prove myself as asset to the company rather than a liability. Educational Qualification 2009: Nottingham University Business (MBA) 2008: Certified Public Accountant from Federation of Accounting Profession 2004-2006: Bachelor of Accountancy from Delhi University. Professional Experience Mckey Food Service Limited: Assisted as accounts and finance manager 2010 and handled all audits and monthly and yearly financial statement preparations. Ernest and Young Office Limited: Acted as Senior Audit Manager from 2005-2006 and prepared Audit report, all financial statements, cash flow statements etc of many large corporations. Interests Reading specially new amendments in company and audit rules. Networking and socializing with people Travelling Mrs. Sona Guptill General Information Mobile No- 9836878567 Email: Guptill23@gmail.com Gender: Female Marital Status: Married Educational Qualifications Graduated from Nottingham University in Business Operations. One year specialized degree course on HRM, 2010 from Jadavpur University Achievements English language course certificate form Nottingham University, 2011. Won many awards and certificates in debates, quiz etc. Operational business management model development in Jadavpur University which was ranked top among all A grade schools. Experience Headed as the operations manager from 2011-2012 in Stylist Hair Salon, Paris. Worked as a public relation manager in Blitz Overseas Limited. Skills High degree knowledge of computer including complex SAP packages Speaks Spanish, English and French Successful leader with great communication skills. Hobbies and Interests Reading Books and poems Travelling Playing sports like football and cricket Fashionable with new ideas on clothing and hair dressing. Mr. Dale Steyn General Information Gender: Male Date of Birth: 17th January, 1990 Mobile no: 9876432765 Email: Steyndale@yahoo.com Educational Qualification Marketing Honors from AMCA institute, 2013, France. High School Diploma from St. Joseph’s High School, 2010 International Cambridge Certificate in English and Business Management, 2010. International Cambridge Certificate in Mathematics, Biology and Leadership skills, 2009. Work Experience Handled marketing business of SIMT from 2012-2013, France. Assistant at part time in Finance Department in UBESCO library, 2010. Skills Languages known French, English, Thai and Spanish Basic knowledge of computer including Ms.Dos. Head worker and leadership skills Interests Exploring new parts of the world. Reading books and playing guitar Love playing cricket and scoccer References Available on Request Assumptions Sales to grow at a rate of 20% per annum. All expenses are taken on the higher side with rising rates of 10-20% as per market trend. Market growth is assumed to be progressive seeing the growing demand. List of Equipments and their cost Description Units Amount ($) Massage Beds 4 4000 Massage Mattress 8 800 Small Side Tables 2 1200 Hair dressing Tool Kit 4 4000 Staff Uniforms 8 1500 Towels 40 2000 Trolleys 4 1500 Special cutting scissors 20 1000 Beauty Products 10 3000 Miscellaneous 1000 9.0 References Grusenmeyer, David (2001). Mission, Visions, Values, & Goals. Farm Business Study Unit. Cornell University, Ithaca, NY. Prosch, Allen, Douglas Jose, Ram Valluru, Jody Wichmann, Thomas Dorn, and Michelle Semerad. (2000) Achieving Success With a Business Plan. University of Nebraska Cooperative Extension. Read More