Decision Sheet

-Margesh Patel (PGP09216)

Growing market trends:-

 Increased Urbanization
 Increasing Spending on Beauty

Market Challenges:-

 Lack of Trained Professionals

 Fragmented Nature
 Faltering Price Model

The key requirements in market:-

 Customized services along the lines of individual interest, parlour and DM wise
 Discounts
 Relationship building with DMs
 Upgradation of beauty parlour
 Improvement in the services

Suggestions:

Primarily, we need to offer customized offerings to beauty parlours and their DMs according
to the area, cost of services of the parlour and the innate nature of the DMs.

 From Exhibit 4, we can observe the difference in interest of DMs, according to the area
where the parlour is situated in. We can use this information to offer customized
services and offerings
 We should use the popularity of the brand name to our benefit. There is a need for
increase of customers and also improve the services. We can use Babur’s strong R&D
facility to improve upon the usability of Oxylife products and their lifetime. It will help
the parlours to use for more customers and generate additional revenue.
 It is observed that Oxylife Natural Radiance (SKU = 310 gms) has the most market
contribution of 33.9% but the margin to the parlour is only 5.5%. We can give some
discount on this type of items to boost the sell and also gain a higher penetration in the
up market.
 We can provide addition benefits like honey, orange peel extracts and some facial
towels etc. to help the saloons to improve their service. Also we can arrange training
sessions for the unskilled professionals which will eventually help the parlors to
upgrade.
 Concentrate those customers who visit parlor because of high profit margins from each
product, hence try to increase the sales in parlor outlets
 Establish parlor outlets in semi-urban and rural areas as Babur is a very reputed brand
in rural and semi-urban areas and those markets has to be captured by Babur before
other players enters into it.
 A group of housewives can be approached to act as agents for the sale and margin can
be given to them. In this way, the fragmented parlours in households and independent
practitioners can also be catered (mainly for sub-urban areas). Same strategy was
applied by Amway.
 Concentrate more on organizing sector than unorganized sector (retail/local parlors,
stores) and improve distribution channels accordingly
 Local salons are bothered about discounts and product modifications especially fruits
inclusion in Oxy Bleach which makes the product look like homemade product will
decrease the product appeal to customers as the same procedure can be followed at
home with natural ingredients.
 For retaining the sales executives, introduce reasonable sales target and reward those
who achieve the target but don’t punish the once who didn’t achieve the target.
 Different channels of communication such as Whatsapp, social media, etc can be used
to connect with DMs.