Business Challenges Of The Salon

Decent Essays

After identifying the business challenges, analyzing them, below are solutions recommended for the three business functional areas.
It is recommended that The Salon establishes its presence in social media like Facebook. The Salon can use this media for its marketing. furthermore, it is used to establish the connection between The Salon and its customers. It is also used to build the customers’ loyalty. Similarly, The Salon’s Facebook page can also be used as a means to gather customers’ feedback and measure how satisfied customers are; and therefore creates needed action items to improve the business.

It is also recommended that The Salon establishes its presence in Yelp, which is the top website for business review. Through …show more content…

It is recommended that The Salon creates new services that differentiate from the competitors. If The Salon has better services that customers perceive more valuable and creates more satisfaction than competitors, The Salon may be able to set higher prices without fearing losing customers. Specifically, The Salon should create different levels for any service if possible. For example, for pedicure, it should create three or four levels such as basic, deluxe, elite with the price and margin increases as the level increases. The increase can be justified because the high level of service offers more,e.g. the elite pedicure has hot rock massage on feets while the others do not. In another way to differentiate is to increase the value offered in the service, for example, offering free toe nail art/design when customers have both manicure and pedicure services.

By the same token. it is recommended that The Salon creates service bundles that are compelling to customers and perceived as good value. The bundles would create differentiation that helps The Salon stand above the competitors. Better differentiation would allow attract more customers and The Salon can set a higher profit margin without fear of competition of the identical service. One example of bundling services is the top-to-bottom bundle that includes eyebrow lip waxing, manicure, and pedicure with a price that less than if individual service is performed separately.

Human resource:
To overcome the mismatch

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