In the Number UNO Race – ‘Trends in Vogue’
“We need to be the number one salon chain in the country” – Ranganathan’s (the founding Chairman, CavinKare Group) statement seemed to follow Chackochen Mathai (Chackochen), GM, Business Development, ‘Trends In Vogue’ Pvt. Ltd. He was very sure that Ranganathan expected actionable data before the next meeting to meet this goal. Chackochen had scheduled a meeting with his core team of five and they had discussed and reached a consensus regarding the material needed before the next meeting. They had to work on the material furnished by the customer insights group along with Human resources and Finance department to understand the customer decision process behind salon usage, the employee problems and the financial implications to draw up the action plan for the race to be number one.
Beauty Salon Business in India
Beauty care industry is flourishing industry in India with a growing number of beauty conscious women and their demand for variety of services catering to the importance and growth of this industry (Annexure I). Thousands of beauty care services providers have sprung up all over the country decade (2000-2010) as the significance of being beautiful is increasing. At the social level, physical beauty is an advantage, as being beautiful gives a person much more confidence..........
Green Trends – How The Journey Began
Looking at the ever increasing demand, which was mainly due to the ever changing lifestyle and the slow shift of Indian youth towards western culture, C.K Ranganathan established his pioneering footprints in the organized salon space way back in 2000. Understanding the different orientation and needs of products and service business, Cavinkare spun off a separate company ‘Trends In Vogue’ to handle the retail salon space.............
Franchaisee @ Green Trends
“When a potential franchisee is keen to collaborate with Green Trends or Limelite, we have an exhaustive list of parameters of the applicant to evaluate them thoroughly. In a nutshell, we look for people with passion, money, business acumen, and educational background. Our process of recruiting franchisees is procedural and well defined. We don’t give a franchise if the aspiring franchisee doesn’t meet the criteria. We verify the aspirant’s background and his stability record in whatever he has done so far and try to ascertain his involvement and commitment to run this business,” said Gopalakrishnan, Business Head........
Consumer Insights
The Consumer insights team conducted a study to find out the choice preferences of a typical customer and came up with the following factors:
Competitive Space
According to the studies conducted by different agencies Green Trend features in the top ten salon chains in India along with Lakme Salon, JawedHabib, Shahanaz Husain, VLCC, Naturals Unisex.............
Customer Profile
Between the ages of 30 and 55
• Income levels of Rs 25,000 and above
• Female/Male
• ..............
Brand Recall
The brand recall for Green Trends as obtained from the survey is high with 78% of the surveyed people having Green Trends as one of top 3 salons that they can recall. ‘Naturals’ is the main competitor of Green Trends, with a 97% brand recall having an edge over Green Trends.............
...................
Human Resource Woes
Over 50% of the workforce in salons, slimming and rejuvenation sub-segments are women. However, men are increasingly gaining interest, especially in hair styling. Segments such as physical fitness and counter sales continue to be dominated by men. Transitional changes are being observed in the economic profile with candidates from mid-income households taking to the sector in urban areas.In rural areas, the workforce continues to be constituted of people from lower socio-economic background............
MOU with Bharatiya Mahila Bank
As per the MOU signed by Usha Ananthasubramanian, CMD of Bharatiya Mahila Bank (BMB), had signed a memorandum of understanding with C K Ranganathan, CMD of CavinKare Pvt Ltd., BMB would provide a loan amount between 65-75% of the total project cost and is available for franchises to avail across India. The rate of interest will be from 11.5% to 12.5%, with one percent concession to the women entrepreneur.............
Arming the Forces
Although at this stage Chackochan believed that‘Trends In Vogue’ was a known brand doing well, to become the number one some tough choices will have to be made. While reviewing the insights from the studies, Chackochan wondered how they can be used to increase brand loyalty. How would they be able to increase the customer satisfaction?.............
Exhibits
Exhibit I: Green trends’ Logo
Exhibit II: How does Price Play a Role in Decision Making?
Exhibit III: Performance Attributes and Evaluation
Exhibit IV: Social Influencers
Appendix
Appendix I: Performance Attributes Ranking
Appendix II: Turnkey Salon Project – Financials
Annexures
Annexure I: Beauty Industry’s Facts
Annexure II: Trends In Vogue