Indian Institute of Management, Lucknow

Noida Campus
Opening of Jawed Habib Hair Salon in Sector 62, Noida
Submitted to: Prof. Satyabhushan Dash
Submitted by : Group 3(Section A)
Ankur Arora(!P"#""$)
Ashutosh %erma (!P"#""&)
Gaura' A((ar)a* (!P"#"+$)
,etan -a*ani (!P"#".")
,irti /i)ari (!P"#".+)
Au(0Sep 0 ."+3
Contents
Contents..................................................................................................................................... 2
Executive Summary.................................................................................................................... 3
1 Introduction............................................................................................................................... 4
2 About Jawed Habib .................................................................................................................. 4
3 Maret researc!........................................................................................................................ "
4 #esearc! $esi%n...................................................................................................................... &
" Maret Ana'ysis......................................................................................................................... (
& Conc'usion.............................................................................................................................. 1&
2 | ) a % e
!ecuti"e Summar#
Executive summary !ere
*
*
3 | ) a % e
1 Introduction
Jawed Habib a ce'ebrity !air sty'ist and mana%es a we''+nown brand o, !air and beauty sa'ons
nown as Habib-s. .o cater to mass maret t!ey run sma'' sa'ons in ma''s and ot!er retai'
/'aces wit! t!e name o, Habib 0/reso. .!ere is one Habib 0/reso sa'on in S!i/ra ma''1 w!ic! is
t!e most /o/u'ar ma'' o, Indira/uram. .o cater to t!e %rowin% urban /o/u'ation o, sector &2 in
2oida1 Habib is contem/'atin% t!e o/enin% o, anot!er Habib-s 0/reso sa'on in sector &2. 3e
wou'd use t!e Maret researc! tec!ni4ues to !e'/ Habib tae a decision on t!is.
1.1 Why we took this problem
3e wanted to wor on a /rob'em w!ic! can s!owcase t!e c!an%in% /syc!o'o%ica' ma/ o,
Indian consumer. #ecent'y t!ere !as been a boom in !ea't! and %roomin% industry in India. 2ot
very 'on% a%o1 Sa'ons are used to be a ma'e !aircut /'ace1 and ,ema'es used to %o to beauty
/ar'ors1 w!ic! cater on'y to ,ema'e customer. 5ut t!is is com/'ete'y a t!in% o, t!e /ast. Ma'es
are becomin% more conscious about t!eir 'oo1 and t!is is %ivin% rise to more and more modern
unisex sa'ons1 w!ic! cater to %rowin% needs o, bot! ma'es and ,ema'es. 2eit!er ma'e ,ee' any
!esitance in demandin% beauty treatments 'ie ,acia's and messa%es1 nor are ,ema'es s!y to
s!are t!e service /'ace wit! ma'es. .!e ,ocus is on 4ua'ity o, service.
.!e study o, Habib Sa'on %ave us t!e o//ortunity to !ave a /ee in to t!is industry and
understand t!e dynamics %overnin% it.
2 About Jawed Habib
Jawed Habib Hair and 5eauty 6td is t!e 'eadin% /'ayer in t!e !air and beauty se%ment. It is one
o, t!e 'ar%est unisex sa'on c!ains in India wit! /resence across &2 cities 7metros1 .ier I1 .ier II
and .ier III8. At /resent1 t!e com/any !as 194 sa'on out'ets and 41 sa'on academies in India.
.!e com/any !as sca'ed u/ o/erations based on a ,ranc!ise mode' and se',+o/erated sa'ons
and academies. .!e wide covera%e o, its out'ets enab'es t!e com/any to ex/'oit t!e 'ar%e'y
unta//ed and !i%!'y unor%ani:ed Indian maret1 stren%t!enin% its visibi'ity.
.!e /romoter1 Jawed Habib A!ter1 is a ce'ebrity !air sty'ist w!o !as bui't t!e brand over t!e
/ast ten years by drawin% on !is ex/ertise in t!e ,ami'y /ro,ession1 t!rou%! /remium services
and by creatin% a di,,erentiated mode' wit! a /an+India /resence. An ear'y entrant in t!e
branded !air and beauty sa'ons se%ment1 JH 6td !as a /an+India /resence. 5rand Jawed Habib
is one o, t!e ,ew unisex sa'on c!ains in t!e or%ani:ed se%ment
.!ey mana%e two ind o, sa'oons. At t!e to/ end1 t!ey !ave ,u''+,'ed%ed beauty sa'ons w!ic!
o,,er a'most a'' ind !air so'utions. At t!e 'ower end t!ey !ave t!e ,ranc!isee mode's to
st/rovide a'' ind o, services1 and
2.1 Indirapuram and Sector 62 Area
4 | ) a % e
3 Market research
3.1 Scope
.!is study wou'd be ,ocused on consumers in and near Sector &21 2oida. .!is inc'udes /eo/'e
'ivin% in sector &2 and ad;oinin% areas o, sector &1 and &3.
3.2 MD and M!
Management Decision Problem
3!et!er to o/en a Habib 0/reso sa'on in Sector &21 2oida<
Management Research Problem
To identify the potential customers
=nderstandin% t!e /otentia' customers1 t!eir needs and ex/ectations t!at Habib can ,u',i''.
.!ese wou'd inc'ude t!e /eo/'e residin%>worin% in a radius o, 2+3?M ,rom sector &2
To analyze the offerings by competitors
=nderstand t!e services rendered by com/etitors a'on% wit! t!e /rice c!ar%ed ,or eac! o, t!em.
.!is wou'd !e'/ identi,y new services 7i, any8 t!at Habibs can o,,er.
To analyze the behavior (frequency of visiting a hair salon, duration, services
used, and loyalty towards the current brand and the amount they are willing to
pay for the services used) of the potential cutomers
=nderstandin% t!e buyin% be!avior o, consumers wou'd !e'/ Habib identi,y t!e services it
needs to o,,er and t!e /rice t!e consumer is wi''in% to /ay. A'so i, a /articu'ar service t!at is
bein% /rocured by /otentia' customers is not /rovided by Habib1 t!en t!e re4uired modi,ications
can be done to mae t!e ri%!t o,,erin%s to customers.
Profitability of opening a salon in Sector 6, !oida
Assessment o, w!at wou'd be t!e %ains o, o/enin% a sa'on in sector &21 2oida and ana'y:e t!e
/ro,itabi'ity in 'on% run
" | ) a % e
4 Research Design
.!e researc! is conducted in t!e ,o''owin% two /!ases@
Phase "
.!e /!ase 1 consisted o, ex/'oratory researc!. 7ri%!t about deve'o/in% t!e 4uestionnaire etc.8
)ut t!e 4uestionnaire !ere
3!y we /ut t!ese 4uestions.
Phase
3rite !ere about t!e second 'eve' 4uestionnaire etc.
)ut t!e 4uestionnaire !ere
)ut our ex/erience o, AB$ and s/eain% o, /eo/'e 7very brie,1 no assay8
3!at is t!e reason o, arrivin% at t!e !y/ot!esis etc* 7brie, but im/ortant8
& | ) a % e
5 Market Analsis
.!e ,o''owin% section wi'' ex/'ain t!e environmenta' and com/etitor ana'ysis ,or t!e Sa'on.
".1 #S$%#
5e'ow is t!e )ES.6E ana'ysis.
Political
.!e /o'itica' environment is conducive to sma'' sca'e businesses in India. Habib-s sa'on
is made on a ,ranc!isee mode'1 and can be considered a sma'' sca'e o/eration ,or t!e
/erson /urc!asin% t!e ,ranc!isee to o/en an out'et
.!ere is CA. and sa'es tax re'ated restriction in every state. In t!e state o, =)1 it is
mandatory to 'evy CA. and service tax ,or t!e sa'on services.
Bovt. encoura%es 'oan ,or sma'' sca'e business
Economical Environnent
Interest rates on business 'oan are ,'uctuatin% random'y in India ,or /ast some time. It
may be advisab'e to wait and watc! t!e maret ,or some time1 so t!at one can %et t!e
best /ossib'e rates.
.!e cost o, cosmetics is risin%. Simi'ar'y t!e wa%es ,or si''ed worers are a'so risin%.
.!is wi'' !ave bad e,,ect on t!e o/eratin% costs o, Sa'on.
$ue to ,'uctuatin% economic conditions1 and risin% in,'ation and /etro' /rices1 /eo/'e are
s/endin% cautious'y. .!e cost o, standard !aircut is /ut at #s. DD ,or Habib1 w!ic! is very
reasonab'e to maes it attractive to /eo/'e in %enera'.
Social Environment
.!ere is a ma;ority o, youn% /eo/'e in t!e vicinity. Most o, t!e /eo/'e are very we''
educated and ,rom economica''y sound ,ami'ies. .!is is a %ood socia' environment ,or
t!e sa'on.
India is seein% a boom in ma'e %roomin% 'ate'y1 w!ic! is %ood ,or sa'on business.
In India1 t!ere are severa' re%iona' ,estiva's a'' around t!e year. And /eo/'e 'ie to %et
we'' dressed and %roomed durin% t!ese ,estiva's. Sector &2 and surroundin% area is a
mix /eo/'e ,rom di,,erent re%ions o, India1 a't!ou%! t!e main concentration is ,rom
Haryana1 )un;ab1 =ttar )rades!1 Himac!a'1 #a;ast!an1 5i!ar and 3est 5en%a'.
( | ) a % e
.!ere are two main weddin% seasons in India ,or Hindus. .!ey are main'y ,rom $ec E
Marc!1 and t!en in June E Ju'y. 5ot! t!ese seasons means bi% business ,or sa'ons1 as
/eo/'e want t!emse'ves to be we'' %roomed ,or t!ese occasions.
Technological environment
As stated ear'ier1 t!e surroundin% area !as most'y youn% %eneration. .!ey are very tec!
savvy1 as India is main'y ,ue'ed my 'ar%e I. mu'tinationa' com/anies.
.!ere is a deart! o, tec!no'o%y in Sa'on industry. Arom 'atest %ad%ets in !air and ,acia'
care1 to t!e best met!od o, maintainin% to/ !y%iene. )eo/'e ex/ect t!e 'atest tec!
/roducts to be avai'ab'e in a %ood sa'on.
.!ere are so,tware avai'ab'e w!ere one can c!ec t!e 'oo o, new !air on t!is ,ace1 and
/eo/'e ex/ect t!at to be avai'ab'e too.
Legal Environment
.!ere are no ma;or 'e%a' !urd'es1 or com/'ications ,or o/enin% a sa'on.
Environmental
.!is area o, country s!ows extreme weat!er. 3!ic! means1 extreme co'd in winter1 and
very !ot in summer. .!is means t!e sa'on can mae use o, t!is and /romote /roducts
on a seasona' basis.
Aor a standard !aircut1 t!ere is no e,,ect on t!e season1 exce/t t!at t!e timin% o,
customer rus!in% to out'et c!an%es. Aor e.%. in summer1 /eo/'e ,'oc t!e sa'on in t!e
mornin% !ours and 'ate evenin%1 w!ereas in winter1 it is t!e noon time w!ic! is more
c!aotic.
9 | ) a % e
".2 SW&$
5e'ow is t!e S3F. ana'ysis ,or Habib
Strengths
Exce''ent retai' s/ace in a we''+visited
ma''.
3e''+trained em/'oyees wit! %ood !air
cuttin% si''s wit! a wide sty'e
re/ository and customer+,ocused
business /ractices.
A wide ran%e o, services o,,ered.
Com/etitive /rices in /remium
se%ment
Weakness
S'i%!t'y be!ind in terms o, brand e4uity
t!at many o, its com/etitors !ave
earned over years o, service.
.!e stru%%'e to a//ear continua''y on
t!e ed%e in terms o, ,as!ion and sty'e.
Hi%! initia' startu/ costs
Opportunity
A steady %rowin% maret t!at is
traditiona''y una,,ected by t!e
economic environment.
.!e abi'ity to decrease mar%ina' ,ixed
costs as t!e customer base %rows.
Increasin% sa'es o//ortunities as more
/eo/'e ,rom an individua' ,ami'y
,re4uents Habib
Threat
Com/etition ,rom a'ready estab'is!ed
c!ains.
2ew entrants wit! a,,i'iation to bi%
sa'oon c!ains
5e'ow is t!e S3F. ana'ysis ,or 6ame
Strengths
Breat brand e4uity due to /o/u'arity o,
its /roducts in t!e sin and !air care
maret
Easi'y accessib'e retai' s/ace in /rime
commercia' area.
A wide variety o, services avai'ab'e.
Weakness
)remium /ricin% is a deterrent ,or
customers
5e'ow avera%e ,eedbac ,or some
em/'oyees
.!e stru%%'e to a//ear continua''y on
t!e ed%e in terms o, ,as!ion and sty'e.
Hi%! initia' startu/ costs
Opportunity
Browin% maret t!at is traditiona''y
una,,ected by t!e economic
environment.
S/are ca/acity avai'ab'e durin%
Threat
Com/etition ,rom a'ready estab'is!ed
c!ains.
2ew entrants wit! a,,i'iation to bi%
sa'oon c!ains
D | ) a % e
a,ternoon can be uti'i:ed by /rovidin%
/romotiona' o,,ers
1G | ) a % e
".3 'ompetitor analysis
5e'ow is t!e ana'ysis o, some o, t!e main /ossib'e com/etitors o, Habib-s Sa'on
Lakme
Obective
)rovides t!e modern Indian woman wit! a /'et!ora o, beauty and %roomin% services.
It-s re/ertoire o, /ro,essiona' beauticians1 !air artists and sty'ists meets internationa'
standards and its /'us!1 ,eminine interiors 'eave you ,ee'in% re,res!ed1 re;uvenated and
ins/ired.
Strategy
)'easin% and !y%einic environment w!ere customers are /am/ered
)remium /ricin% to maintain nic!e in t!e maret
6evera%e brand e4uity o, 'eaders!i/ in maeu/ /roducts and brida' arran%ements
Com/etitive /ricin%
3ide ran%e o, services1 a'' under one roo,
L!oreal
Obective
F,,erin% a'' women and men wor'dwide t!e best o, cosmetics innovation in terms o,
4ua'ity1 e,,icacy and sa,ety
Strategy
6evera%e brand e4uity o, 'eaders!i/ in Haircare and maeu/ /roducts
Aocus on !aircare and maeu/ services
)remium /ricin% to maintain nic!e in t!e maret
11 | ) a % e
1. Maretin%
5e'ow we /resent our t!ou%!ts on maretin% t!e Sa'on
".( Marketin) &b*ecti+e
F/enin% a new store in Sec+&21 2oida
F/enin% a new store in Sec+&21 2oida
Increase t!e maret s!are o, Habib by 2H
#etain existin% Habib-s customer w!ic! were visitin% to ot!er Habib stores due to non+
avai'abi'ity o, Habib in Sec+&2
3in new customers o, Sec+&2
Maintain /ositive and steady %rowt! eac! mont!.
"." Marketin) Strate)y
Sell the e"perience
A sa'on wi'' draw new customers t!rou%! t!e 'ure o, a /articu'ar ex/erience. Sa'on-s website
s!ou'd ,eature !i%!+4ua'ity ima%es o, t!e 'ocation1 w!ic! are invitin% and /romote businessI
,eatured services. A//ea' to your tar%et maret@ ,eature creative sty'es ,or a youn%er
demo%ra/!ic and time away ,rom a busy 'i,e ,or mid+'i,e /ro,essiona's.
#ocus on $ustomer Retention
A 'ar%e /ortion o, sa'on revenue comes ,rom re/eat business. Sty'ists s!ou'd /rovide new
c'ients wit! t!e sa'onIs card and t!e sty'ists name so t!ey can easi'y mae anot!er
a//ointment. ?ee/in% in contact wit! customers t!rou%! t!e use o, an e+mai' 'ist1
/romotiona' cards or a mont!'y news'etter is a way to ensure customers remember your
'ocation. Incentives ,or re/eat business1 inc'udin% discounts ,or subse4uent visits or ,ree
/roduct a,ter 1G cuts1 are %ood ways to ee/ /eo/'e comin% bac.
Encourage Wor%&o'&Mouth Promotion
ItIs not unusua' ,or women to %o to t!e sa'on to%et!er. I, t!ey come to your sa'on1 t!atIs two
customers instead o, one. .!atIs t!e idea be!ind a J5rin% a AriendJ /romotion w!ere a c'ient
%ets "G /ercent o,, t!eir cut i, t!ey brin% a ,riend1 or %ets 1G /ercent o,, ,or every ,riend w!o
comes to t!e sa'on and mentions t!e c'ientIs name. .yin% t!ese /romotions wit! ,u''+/riced
sa'es ensures your customers %et a bonus1 but your /ro,it remains stab'e.
Partner With Other (usinesses
12 | ) a % e
Hote's near your sa'on mi%!t ee/ your maretin% materia' on+!and in case a %uest ass ,or
a re,erra' to a 'oca' sty'ist. Ft!er businesses in t!e !os/ita'ity industry1 inc'udin% restaurants1
,itness and community centers mi%!t a'so !ave a bu''etin board wit! advertisin% ,rom 'oca'
businesses. Kour cityIs tourism in,ormation center wi'' stoc broc!ures about t!e sites
around your town1 and mi%!t a'so a%ree to set a /'ace aside ,or your advertisin%.
Encourage Pro%uct Sales
)roduct is a second revenue stream ,or sa'ons and is a use,u' strate%y to %et customers in
t!e door and to s/end more once t!ey are t!ere. Advertise sa'es on /roducts in combination
wit! a serviceL ,or exam/'e1 "G /ercent o,, a s!am/oo and conditioner combo wit! any cut.
Sty'ists can a'so contribute to t!is strate%y durin% t!e cut by describin% t!e /roduct t!ey are
usin% to t!e c'ient and encoura%in% its continued use.
".6 Marketin) Se)mentation
Se%mentation !ere
"., ositionin)
$i,,erentiation and /ositionin%
".- (s
Pro%uct)
.!e main /roduct o,,ered at Habib Hairx/reso is a customi:ed+desi%ner !air+cut. 5ein% a
service /roduct1 it is not exact'y t!e !aircut t!at Habib o,,ers1 but t!e ex/erience be!ind it. A
!aircut is o,,ered by a sa'on1 as bi% a networ as Habib or a sma'' barber sittin% underneat!
a tree. 5ut it is a'' about t!e ex/erience in terms o, ,ee'1 4ua'ity1 com,ort and most im/ortant
'oos t!at Habib o,,ers.
Habib-s customi:ed desi%ner !air+cuts and com/uteri:ed /review o, 'oos be,ore t!e actua'
!air+cut is t!e di,,erentiatin% ,actor in Habib-s o,,erin%.
Price
Habib Hairx/reso boasts o, M/rovidin% 4uic1 contem/orary1 dry !air+cuts at de'i%!t,u''y 'ow
/rices o, #s. DDN. In ot!er words1 HabibbIs Hair0/reso !as brou%!t desi%ner !aircuts wit!in
t!e rea'm o, t!e common man by cuttin% down t!e ,ri''s associated wit! it. .!ou%! re'ative'y
on a !i%!er side as com/ared to ot!er !air sa'ons1 Hair0/reso does not c!ar%e a /remium
as it does in its e'ite Hair Studio.
A !aircut startin% at #s. DD is /riced above t!e norma' sa'ons but Habib ;usti,ies it on
account o, /rovidin% a desi%ner !aircut wit! /review o, 'oos be,ore t!e cut.
Place)
13 | ) a % e
A ty/ica' c!aracteristic is t!at service is a'ways intan%ib'e1 it is !ad at a 'ocation w!ere t!e
service renderer and acce/tor interact. .!at-s w!y /'ace is a very im/ortant com/onent in
t!e maretin% mix ,or a service.
Habib o,,ers service in Habib Hairx/reso sa'ons1 w!ic! are ty/ica''y sma'' sa'ons 'ocated in
marets1 ma''s and ot!er /remium 'ocations. Anot!er /ecu'iar ,actor about Habib Hairx/reso
sa'ons is t!at it is 'ocated at convenient 'ocations in terms o, /os! 'oca'ity1 /arin% s/ace
and ease o, access.
Promotion)
5ein% a /remium !air sa'on1 not muc! o, /romotion is done by Habib Hair0/reso. Habib ;ust
/rovides /aca%e dea's ,or a se'ect ran%e o, services s/read over a /eriod o, time. A'so at
times one can s/ot /eo/'e distributin% Habib-s /am/!'ets in ma''s and co'onies w!ere Habib
is 'ocated1 but t!at is !i%!'y in,re4uent.
14 | ) a % e
Mention about trained barbers

1" | ) a % e
! Conclusion
Conc'usion !ere
1& | ) a % e
#F+4@ .o identi,y t!e /ro,i'e o, Habib-s customers
.!e aim is to identi,y t!e /ro,i'e o, Habib-s customers. Aor doin% so1 we com/i'e t!e
demo%ra/!ic and /syc!o%ra/!ic in,ormation o, res/ondents to ,ocus %rou/ researc!. 3e t!en
ased t!em about t!e sa'on t!ey 'ie t!e most1 t!e sa'on t!y ,e't is t!e worst1 somew!at best
and somew!at worst sa'on1 and t!e reason ,or eac! o, t!ese.
Fn c'ubbin% t!ese two in,ormation1 we %et an idea about t!e consumer w!o are a customer to
Habib.
In our case1 we identi,ied t!at %ender /'ayed a ro'e1 vi:. women are more 'ie'y to visit Habib.
Anot!er !y/ot!eses we cou'd derive was t!at Habib consumers are more urban and trendy
#F+"@ .o identi,y t!e /ro,i'e o, com/etition-s customers
.!e aim is to identi,y t!e /ro,i'e o, non+Habib customers. Aor doin% so1 we com/i'e t!e
demo%ra/!ic and /syc!o%ra/!ic in,ormation o, res/ondents to ,ocus %rou/ researc! and c'ub it
wit! t!e in,ormation about t!e sa'on t!ey 'ie t!e most1 t!e sa'on t!y ,e't is t!e worst1 somew!at
best and somew!at worst sa'on1 and t!e reason ,or eac! o, t!ese.
In our case1 we identi,ied t!at non+Habib consumers are ma;or'y e'der'y /eo/'e1 w!o considered
seein% va'ue ,or money
1( | ) a % e