11

EXECUTIVE SUMMARY
The world as we know is changing rapidly. The world around us is getting more innovative and
more competitive day by day. In this project, we tried to build up an innovative idea of mobile
hair salon; we tried to prove that in the context of Bangladesh such an idea can actually work. I
!air "ou# is about an innovative approach towards the business. $ho don%t want to increase his
beauty by a nice hair cut and regular facial cleaning& But sometimes time can be a major
hindrance. 'ay be you are working in office and suddenly you have a presentation to give, what
will you do& $ill you go and find a saloon for a haircut or shaving&& (r will you call them up&
"ou may be surprised to see the result. ) car consist all facilities of an aristocratic saloon, a
bunch of efficient barber with all type of new and modern e*uipment waiting for your call. +ot
only this but also several such a saloon car will move around all over the city based on a fixed
time and schedule. ,o now no one have waste ones valuable time by going to a traditional saloon
and waiting for hours and hours, our car will come close to your destination and serve you
accordingly as you desire to get. That%s what we can give you.
There has been lot of works we had to do. $e had to make a survey on the saloon. $e gathered
the survey information and made the industry analysis. $e also made marketing analysis, -.%s,
./,T analysis, ,$(T analysis, life cycle, porter%s five and none but not the least the financial
statement. $e also made operation management and tried to justify our business.
To do this project we had to work on it really hard. The financial statement alone was enough
hard for us. But we tried and made our project in this way. $e want to thank our honorable
faculty for giving us a guideline, and helping us all the way through the semester. !is guidance
was a tremendous help for us. +ow we are looking forward to see how everyone thinks of the
business and how they react with the new idea of mobile saloon.
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Introduction:
$orld is moving fast, we are running over time. Thousands of businesses have launched to save
the peoples time, to make the peoples life easier and comfortable. Today /ntrepreneurs are much
more creative and innovative in term of opening business. /veryone is trying to do something
new, something extraordinary, something close to people%s desire. $e have already heard and
ac*uainted with various on call home service business like on call food service, grocery service
and so on. )ll of those businesses are introduced for saving peoples time, removing people%s
harassment and provide the best comfortable service. But have we ever heard about any on call
saloon service in Bangladesh& (bviously not00 But now it%s the time to introduce you with such
an on call saloon service in 1haka city. !air and face is the most important part of human beauty.
$ho don%t want to increase his beauty by a nice hair cut and regular facial cleaning but time
create an impediments for many people. ,ometimes it%s really tough to pull out time for a busy
person for hair cut. ,o with a view to remove the barriers of time, solve the men%s grooming
problem and serve the people according to their desire, wherever they are, a aristocratic portable
on call hair salon is ready to serve people even in anyone homes or office parking. ) car consist
all facilities of an aristocratic saloon, a bunch of efficient barber with all type of new and modern
e*uipment waiting for your call. +ot only this but also several such a saloon car will move
around all over the city based on a fixed time and schedule. ,o now no one have waste ones
valuable time by going to a traditional saloon and waiting for hours and hours, our car will come
close to your destination and serve you accordingly as you desire to get. ,o there will be
basically two types of service by this mobile hair salon, one is on call service and other is
schedule based different place service. The business is totally a new service providing business
in the salon industry which is designed to hear peoples urge for increasing their beauty near to
their destination and thus the name of the business is I !air "ou#.
Mission, Vision, & Culture:
11

Business ,logan2 Close to Your Desire
Mission:
The mission of I !air "ou# is to provide the men%s hair grooming services close to their
destination means the salon car will reach wherever the customer wants to within 1haka city.
,ome other salon cars will move around the city based on different time schedule and will
stay for couple of hours in every location that%s why people can get their service from there.
It also ensures the high *uality hair cut and all other men%s saloon services inside a car in a
best possible way. Though our business car is moving towards the customer destination that
why the mission statement is An ultimate hair solution beside your destination
Vision:
our vision is becoming a leading brand of hairstyle and hair solutions in Bangladesh. $e
want to achieve this goal by providing *uality services to the customer. $e want to provide
our customers the best hair cut they ever get000
$ithin the five year we also wanted to do something more with this mobile hair salon.
Those are2
3. /xpanding our service to every major city of Bangladesh.
4. 5aunching services for women as well in the same manner.
6. /nsuring hygienic environment.
-. 7uality and updated services.
Culture:
I hair you doesn%t only believed in plan based approach. It will also ready to face every realistic
upcoming problem and completion in near future. There is a pool of young, energetic employees
to overcome the business competition and provide the latest hair solution in a best way. (n the
other hand I hair you believes in team based approach where no individual but the team will take
the decision of operation management. Though it is a small business so no hierarchy is needed
here, all the employees and owner will work hand in hand to take the business in highest peak. )
warm and friendly relation among the employees and owners is always appreciated by I hair you.
11

I hair you is also socially and environmentally responsible organi8ation. Though the business
will operated through several car so there could a problem came in term of the placement of
those pickup and also in term of waste management. ,o to keep I hair you above every anti9
social affairs it will select the most suitable place for the car placement where no social disputes
could be happened.
I hair you is committed to keep the city fresh and clean. ,o in term of waste management I hair
you always keep the best possible dumping solution according to 1haka city corporation waste
management rule.
Legal structure:
I Hair you is partnership type organi8ation. There are five partners started the I Hair You with
the initial capital of B1T 4:, ;;,;;; taking as a loan from an angel investor. )ll the partners
have e*ual share on all type of profit and liabilities. )ngel investor will take the interest annually
3;;;;;tk and as loan repayment 4:;;;;tk. as a total 6:;;;; tk. annually. In legal partnership all
individuals are liable for business liabilities. 5imited partners are liable for amount of capital
contribution. !ere all the partners are e*ually liable for business and the angel investor will not
have any interfering authority to the business, he will just take the interest. I !air you# will be
registered as partnership firm from the municipal office with a detail partnership document
describing the responsibilities and benefits of each partner.
Trade license will be issued from municipal office.
(perational permission will be taken from 1haka <ity <orporation and 1haka
metropolitan police.
Liabilit o! o"ners, cost o! starting business, continuit o! business &
trans!erabilit o! interest:
I !air you# is initially launched with a 4:,;;.;; B1T cash from an angel investor. Its
management an operational activities will be operated through : partner2
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3. =olam >abbani.
4. ,tanley ,ourav ro8ario.
6. Tasmia )hmed.
-. ,harmin ,ultana
:. ?umatul Islam.
)ll of them will act as a active partner and will get the profit e*ually 4;@ each. The angel
investor will get the profits 6:;;;; annually whether it is profit or loss. These : partner will be
liable of all liability and managerial activities .
#esigning o! t$e organi%ation
I Hair You is positioned in the industry as a small firm which will provide salon service by
several moveable vehicles and will operate both on call and schedule basis from one place to
another. )t first I !air you# will rent the saloon pick up because of shortage of money. Then in
future it will go with own pickup van. Though I !air you# is a service related company and also
11

its service related with the beautification of a person to providing the *uality service will be the
main objective of the firm. Aor that I hair you# will appoint a pool of *ualified specialist hair
shape maker. Besides this I !air you% always will try to maintain a good relationship with the
customer to make them loyal and also to be sustainable in the market through customer
satisfaction.
&''ortunit Analsis & Researc$:
Customer Survey analysis:
Though there are no such a mobile hair salon in our country so in order move on business
operation we did a survey consist of :; person from different goner like service holder, students,
businessman etc. the survey *uestions are designed such a way that we can evaluate our business
opportunity, profitability, sustainability as well as acceptability of the common citi8en. The
survey *uestions and the feedback of common people on different perspective are showed below
in a percentage diagram2
1. How often would you like to have a new haircut
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Arom this survey we can get an idea that most of the person Babout -C@D like to do their
cut once in a month.
!. How much money do you t'icall s"end for a haircut
!ere to know about the money spend on hair cut we find about -;@ people spend :;93;;
tk. on hair cut then the other 66@ people spend 3;;93:; tk.
#. How much money are you "illing to "ay for a haircut
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!ere when we try to find out the peoples willingless to spend on hair cut we find
something different as we predict. In graph we can see that -E@ stands on 3;;93:; tk. ,o
we can find that if people get *uality service they are ready to spend more.
$. If you are takin% other combined services like massa%es& shavin% and facials& how much
would you like to s"end
In term of other services besides hair cut majority people B:-@D willing to pay 4;;96;;
tk.
'. (hich of the followin% service would you "refer after cuttin% your hair
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)bout the preference of additional service after hair cut same percentage goes to facial
and savings B-;@D. ,o it could be reali8ed most of the people want save and facial
service. )fter all are careful about face00
). (hat other facilities would you "refer to have for the mobile salon
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To collect the suggestion about other facilities of the mobile saloon we get that :-@
people want only back ground soft music, 66@ people want news paper or maga8ine,
decoration gets 36@ but about food court no one was enough impressive it%s got straight
;@.
*. Accordin% to you& "eo"le of which disci"line will be more benefitted by a mobile
salon

In this survey we can see that almost people of every discipline got the moreover same
percentage. But most percentage B66@D goes to anyone. That means people any goner can
be beneficed according to the survey.
+. (hat mi%ht be a convenient time for cuttin% hair
11


Arom
this
*uestion that when they go for a hair cut :-@ people said for weekend, other 66@ said
for holidays. ,o weekend could a best time boom business opportunity.
F. If a mobile salon travels around the city which area will be more effective for this
ty"e of salon
!ere moreover every place got similar percentage, where as 'otijeel got 4E@.
1,. (hat mi%ht be some of the reasons why you mi%ht not use the mobile salon
11

+ow here ask about the reasos why any one could not be used to mobile salon. The
results show availability of salon in specific 8one could be main reason B6C@D, and also
availability in specific time is also B4G@D, time consuming could be detrimental B4F@D.
,o in these *uestions we have to look after.
11. -o you think it has become im"ortant to have a mobile salon these days
5ast of all *uery
about the necessity
of mobile salon
in these days
we got CE@
peoples
positive
signal. ,o it could be reali8ed we can move on to the business without any confusion.
Su""ly .actor and influence:
Though in saloon business there is no material needed for which we could need any supplier. )ll
of the materials and cosmetics needed for the business can be easily bought from retail market in
market place. Though we will regularly buy the cosmetics so we will choose a suitable wholesale
shop of cosmetics from where we will regularly buy cosmetics in discount.
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/ana%ement 0 1"erations
(perations management is the area concerned with the efficiency and effectiveness of the
operation in support and development of the firmHs strategic goals. (ther areas of concern to
operations management include the design and operations of systems to provide goods and
services. $hile the term operations management conjures up views of manufacturing
environments, many of these concepts have been applied in service settings, with some of them
actually developed specifically for service organi8ations. In this saloon we want to create such a
management to handle the operations of the business.
/ana%ement 2eam:
Though I hair you# is a partnership organi8ation and also a new business so the management
activities will be handled by the partners. Tasmia ahmed will work for marketing, ,harmin
,ultana will work for human resource, all kinds of customer communication and telephone
operation will be handled by ,tanley and finance account part will be overlooked by =olam
>abbani )nd ?umatul.
Human resource
Sharmin Sultana
Human resource
Sharmin Sultana
/ana%ement
/ana%ement
Customer Service
2asmia Ahmed
Customer Service
2asmia Ahmed
Communication
Stanley
Tasmia
Ahmed
Communication
Stanley
Tasmia
Ahmed
.inance 0 Accountin%
Anik 0 3umatul
.inance 0 Accountin%
Anik 0 3umatul
Hair S"ecialist

Hair S"ecialist

-river
-river
Cleaner
Cleaner
Hair S"ecialist
Hair S"ecialist
Cleaner
Cleaner
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The decisions of all management head will be applied to the hair specialist and the driver as well.
They will be bound to do their work according to the guideline of the management team. /ach
car will also contain two cleaner boys. They will follow the direction of hair specialist.
/mployees will have to be hired to provide the different services. The employees will be
assigned to different departments. The numbers of workers re*uired are2
: hair specialist 9 Aor this section skilled hair specialist are needed because our aim
concern is providing the best hair styles to the customers, we want to provide them
what they want. /xperienced specialists will be preferred, but young talented
specialists will be encouraged to join. )lso they have to be able to work for most of
the time of the day.
4 drivers I we need 4 very good drivers with lots of experience, mainly the drivers
who drove big lorries. )lso the experience of driving in the traffic of dhaka city is
important.
4 cleaner boy9 we also need two cleaner to keep the car clean all the time. Their job
will be to clean up the car after customer gets his hair done. Jeeping tidy and clean
place is very important for the car.
/mployee
>ole
7ualifications <ompensation <ontribution !iring
policy
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' Hair
s"ecialists
4 years or less
experience of
working in saloons
G,:;; taka per month, :@
of every :;; taka service
provided will be added to
the salary
.roviding
!aircuts, shave
and saloon
activities
2hrou%h
known
sources
! -rivers : years experience
of driving heavy
duty vans
C,:;; taka per month 1riving
throughout the
area
Same as
before
! Cleaners 4o e5"erience
re6uired
!&',, taka "er month Cleanin% the
cars
Same as
before
)ll employees will go through a short training period after being hired, to ensure *uality and
efficiency in our services provided. $e will also take a special test of them.
Service 1"erations
$e will start our day at G2;;am and our cars will be on the road by Fam to 3;pm. The working
hours for our employees are assigned as follows2
!air specialists will work from Fam to 3;pm, when our car will be open to customers and
for on call services.
1rivers have to drive all day long, along with the hair stylists. It is their job. )lso, the
have to drive the car to pick gas as fuel and also at the end of the day they have to drive
the car to the garage.
<leaners have to keep the car clean; they also have to be around the car.
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+ow 1haka has E different holidays for E different areas in a week. ,ince we have one
big car to provide saloon services and one small car for on call services, we will employ
our big car in those E different parts when those holidays are going on.
(ur small car will be for the special services. $e will give a time schedule when and
where our car will be available for the service.
1"erational .low dia%ram:


7ey "olicies towards em"loyees
$e will give the employees a :@ bonus of every :;; taka worth service they provide to a
customer.
)ny idea from the employees regarding the business will be appreciated.
8esearch and develo"ment
Tan
k
Tan
k
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In this research and development section we will try to find the latest fashions regarding
haircuts, facials, and other services and will implement them in our service. $e want to make
sure that the best *uality and service is provided to the customers. $e will keep in pace with
the world and provide the good for the trendy customers.
9hysical :ocation:
Knlike other businesses we do not need a office as a physical location right now. $e cn simply
manage the business from home and being in the car. )s we have to communicate with both the
customer and the cars on the road, we have to be on telephones all the time.
9;S2 Analysis:
9olitical: )ll the political factors that would hamper the business such as political
unrestLinstability like Hartals or Curfew that could affect the performance of the service
due to unavailability of the vehicle. In ./,T )nalysis,
<9< stands for .olitical
<;< stands for /conomical
<S< stands for ,ociological
<2< stands for Technological
./,T analysis is another way of doing external analysis through which the newly open
company can understand the external political, economical, sociological and
technological situations and on the long run by using their strengths and opportunities, =I
!air "ou0 can overcome the weaknesses and threats. The (EST analsis of =I !air
"ou0 is as follows.
)lso providing services to specific areas in future due to legal re*uirements of the government
like in Cantonment could be a problem. Besides, due to the political factors, in some cases
providing on re*uest service can be difficult. 'oreover, taxes change with every government and
so does the M)T charged on every associated raw materials and items. ,o this could be another
11

problem, meaning, changes in government payable taxes, business tax and income tax could also
be deducted from the annual sales of =I !air "ou0
;conomical: )ll the economical factors that would impact on the business for example, seeing
what is the economical state of Bangladesh and whether the people who are seeking our service
Bour customersD have the ability and capability to afford the re*uirements set by our firm. ,o
focusing on these issues are very important in starting the business. Besides, the globali8ation of
the internet has grown over time. ,o the economic impact of websites on any business is very
high. Thus =I !air "ou0 would plan to open a website through which people can visit it and get
to know what the business is offering to the customers, provide online calls and reservations and
they can give their suggestions or comments and feedback.
Social: )ll the social factors that would affect the business performance, for example how the
society sees these kinds of services, how well the society accepts it, the popularity if they got this
sort of mobile services and so on. ,o keeping in mind9 the society# by not offending anyone9
their thoughts and values are highly necessary to monitor and then act accordingly, as these
factors will ultimately have a huge impact on the long9run of the business.
2echnolo%ical: Aactors such as the availability of technology through which we%ll able to
provide more effective and efficient haircuts with more services such as facial, foot and neck
massage, hair treatment, steam batch etc Ithat what kind of technology we need and whether
they are exactly what we need etc and also looking at the expenses of using these high
technological instruments and machines. 'oreover, =I !air "ou0 has decided to e*uip its
employees with laptops with Internet and cell phones for better communication, doing >N1 and
to make decision making faster.
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Industry Analysis
Inorder to analy8e the external industry, Mic$ael (orter)s *i+e *orces Model is very much
effective which provides more depth information than simple market trends analysis information.
This model explains that there are five forces that influence what happens within an industry,
such as2
i. 2hreat of 4ew ;ntrants
ii. 2hreat of Substitutes
iii. >ar%ainin% "ower of >uyers
iv. >ar%ainin% "ower of Su""liers
v. Current 8ivalry
i? 2hreat of 4ew ;ntrants: )s the event management has the scope of becoming an
industryLbecause of its rapid growth, there will be lots of new companies entering into the
business or to be# industry. 'oreover, the new entrants may offer multiple other services in
every areas of 1haka city or in the hot spots like =ulshan, Banani, Kttora, 1hanmondi etc
Therefore, the threats of new entrants are hi%h for =I !air "ou0.
ii? 2hreat of substitutes: There are other available substitutes, causing hi%h threat for =I !air
"ou0.There are couples of famous and repudiated hair salon like Aace wash, .ersona )dams,
>a8or etc in different main area like =ulshan 3 and 4, Banani, Kttora, 1hanmondi etc. These
salons are a big threat for =I !air "ou0 because target customers can choose to any kind of hair
11

or salon related services from them .,o customers could prefer them more than =I !air "ou0&
meaning switching costs could be high and buyer loyalty could be low.
iii? >ar%ainin% "ower of >uyers: This would be hi%h as there are a number of customers in the
market who are interested in seeking this service. Besides, customers% knowledge is very high on
this9 as in they know a lot of information already that are related to this business and most
importantly, because of the several substitutes already existing, the buyers have a big, huge
influence in the industry. ,ince their getting mobile service therefore they might argue to have
services with fewer prices.
iv? >ar%ainin% "ower of Su""liers: This would be low as the suppliers wouldn%t be controlling
the market that much, hence they wouldn%t be able to influence the industry to a greater extent.
v? Current 8ivalry: This is moderate because this concept is very new in Bangladesh but if the
existing salon might act as a rivalry .Therefore =I !air "ou0 should take proper steps to save
themselves from the existing salons.
;5ternal S(12 Analysis:
In external ,$(T )nalysis2
<S< stands for external ,trengths
<(< stands for external $eaknesses
<1< stands for external (pportunities
<2< stands for external Threats
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It is one of the important tools for external analysis which is used to identify and analy8e the
strengths, weaknesses, opportunities and threats involved for the newly open company. The
S,&T analsis of =I !air "ou0 is as follows.
2able 1. ;5ternal S(12 analysis of =I !air "ou0
Stren%ths (eaknesses
$ell9trained employees with good hair
cutting skills with a wide style
repertoire, and
) wide range of services offered.
<ompetitive prices.
It%s also got a good hand of suppliers
.roper social understanding
.roper market coverage plan via media
5ow cost substitutes
)s a new entrant to the market, head
lacks brand e*uity
+ew entrance to the market
5ack of corporate contactsO large costs
associated with a start9up company.
1""ortunities 2hreats
The ability to decrease marginal fixed
costs as the customer base grows.
Increasing sales opportunities as more
people from an individual family
fre*uents <ranium.
<reating experience through viral
marketing
Aavorable economic condition
)vailability of the state of the art
infrastructure
,upport from the local authorities
!igh competition
+ew entrants
Improper support from the suppliers
+egative response from the target
customers
1iscontinuing support from the local
salons
Knavailability of materials and
expertise
Knavailability of other stakeholder%s
like massage or facial expertise
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9roduct@Industry? :ife Cycle
This life9cycle is genuinely for any industry. ,o this is applicable for =I !air "ou0 also. These
are the stages that =I !air "ou0 will be facing over the period of time.
(ays to create com"etitive advanta%e:
Aor this =I !air "ou0 would need to match up its resources with capabilities inorder to create a
core competence or competitive advantage. ) diagram of this relationship has been shown in the
following page.
11

.or e5am"le&
If =I !air "ou0 is able to have2
Then it can charge high cost, customers will value more, demand will be high, so more profit.
8esource
'oney
/*uipment
'achine
(wn Mehicle
! >
<ommunication 'edium
8esource
'oney
/*uipment
'achine
(wn Mehicle
! >
<ommunication 'edium
Ca"abilities
/xpertise
Jnowledge
Technology
Ca"abilities
/xpertise
Jnowledge
Technology

+
+
<reate <ore <ompetenceL<ompetitive
advantage by offering low cost, being
uni*ueLcreativeLdifferentiation.
)lso, create core competitive advantage by2
;fficiency
Innovation
Auality
Customer 8es"onse
<reate <ore <ompetenceL<ompetitive
advantage by offering low cost, being
uni*ueLcreativeLdifferentiation.
)lso, create core competitive advantage by2
;fficiency
Innovation
Auality
Customer 8es"onse
)ll of this would be done to create a
/arket "ositionBdistinctive "osition,
inorder to stay ahead of competition.
)ll of this would be done to create a
/arket "ositionBdistinctive "osition,
inorder to stay ahead of competition.
High
Efciency
High
Efciency
High
Innovation
High
Innovation
High
Quality
High
Quality
High Customer
Response
High Customer
Response
11

.or e5am"le&
Internal S(12 Analysis
The internal ,$(T analysis of =I !air "ou0 is as follows.
2able !. Internal S(12 analysis of = I !air "ou C
Stren%ths (eaknesses
$ell9trained employees with good hair
cutting skills with a wide style
7uality of work and processLprocedures
!> and 'anagementLstaff who are
experienced
5ocation of business
+ew, innovative service offering
Business <ulture
$ell trained people
!igh motivating level
/xcellent .>
Aresh resources
,ocial and financial trends
5ack of funding
'anagement
5ow customer retention
)bsence of important skills
5ack of competent vehicle
Kndifferentiated service in relation to
competitors
Mulnerable to vital staff being
sickLleaving
1""ortunities 2hreats
<hanging customer%s preferences and
demands
Technological advances
!igh competition
Knavailability of materials
Insufficient resourcesBTechnological
Hi%h Cost
Hi%h Cost
Customer %ive
value
Customer %ive
value
-emand
-emand
9rofit
9rofit
Thus reach
Thus reach
1bDective
1bDective
Eoal
Eoal
11

<hanges in government politics
,cope of business growth and success and
creativeness
+ew distribution channels
+eed to increase market share
/xpanding business all around Bangladesh
,o targeting more customers from all over
the nation
/xpanding through joint venture, merger
<ompetitors may be slow to adopt new
technologies
5ocal government encourages local
businesses with work where possible
Bfavorable economic conditionD.
advancesD
<hanging customers% preferences and
demands
Tax increase and change in government
politics for giving mobile services
<ost of technology investment
5arger competitors may get majority
market share
1ecreasing profit
5ose key staff
5ack of finance
Cor"orate 9ortfolio Analysis
)t this stage, I !air "ou0 needs to plan and implement strategies that where it will actually
place its business. In doing so, it can use the B<= 'atrix also known as =rowth9,hare 'atrix
developed by the Boston <onsulting =roup. It is a strategic tool for portfolio planning and
analysis. B<= 'atrix is used for current portfolio analysis, portfolio planning and development,
and new strategy development 9 developing and positioning new businesses and repositioning the
current ones.
>CE /atri5 /odel
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An S>F /odel for = I !air "ou0
*or-ulating Strategies
,trategic formulation means formulating strategies to execute the business activities. ,trategy
formulation for =I !air "ou0 'ainly includes developing29
Mision and 'ission BThe target of the businessD
,trength and weakness B,trong points of business and also weaknessesD
(pportunities and threats BThese are related with external environment for the businessD
Business
Level
Function
al Level
Operatio
nal Level
External nalysis!
"orter#s $ Forces
"E%&
In'ustry %(O& an' other
)actors li*e legal+
consumer+ supplier+
competition etc,
Internal nalysis!
-atch Resource
an' capa.ilities
)or competitive
a'vantage
/0 %(O&
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But besides, =I !air "ou0 should focus on, setting long term goals and objectives, generating
alternative strategies to achieve that long term goals and choosing particular strategy to pursue.
I-'le-enting Strategies
,trategy implementation is often called the action stage of strategic management. 'oreover, in
strategy implementation =I !air "ou0 needs to establish annual objectives, devise policies,
motivate employees, and allocate resources so that formulated strategies can be executed.
,trategy implementation includes developing a strategy supportive culture, creating an effective
organi8ational structure, redirecting marketing efforts, preparing budgets, developing and
utili8ing information systems, and linking employee compensation to organi8ational
performance.
E+aluating Strategies
There are three fundamental strategy evaluation activities that =I !air "ou0 needs to consider2
>eviewing external and internal factors that are the bases for current strategies.
'easuring performance.
Taking corrective actions
'anagement of =I !air "ou0 needs to know when particular strategies are not working well;
strategy evaluation is the primary means for obtaining this information. /ach implemented
strategy is evaluated to determine the outcomes, if the outcomes are meeting the expectation it
means strategy is successfully otherwise corrective action is re*uired.
11

Target Mar.et
) target market is a group of customers that the business has decided to aim its marketing efforts
and ultimately its merchandise. ) well9defined target market is the first element to a marketing
strategy. The target market and the marketing mix variables of product, placeBdistributionD,
promotion and price are the two elements of a marketing mix strategy that determine the success
of a product in the market place. (nce these distinct customers have been defined, a marketing
mix strategy of product, distribution, promotion and price can be built by the business to satisfy
the target market. (ur target market for the time being is the men of 1haka city. It includes2 9 the
students, service holders and also the top class business executives. $e have selected them as our
target market because thesedays, people have become very busy there is not a single minute that
can be wasted. Time is money in other words today, hence we thought coming up with such a
kind of service would be very profitable not only for us the service provider but also the men of
our city. They will be able to call over a salon at their door without having to go to salons
situated further from their workplaces or houses.
Target markets are groups of people separated by distinguishable and noticeable aspects. (ur
target markets can be separated into2
P =eographic segmentations B1haka city for us0D
P demographicLsocio9economic segmentation Bgender, age, income N occupationD
P .sychographic segmentation Bsimilar attitudes, values, and lifestylesD
P Behavioral segmentation Boccasions, degree of loyaltyD
11

(e will be reachin% our tar%et market through direct marketing. By buying consumer
database based on the segmentation profiles we have defined. These databases usually
come with consumer contacts Be.g. email, mobile no., home no., etcD. <aution will be taken
when undertaking direct marketing efforts 9 checking the targeted countryHs direct
marketing laws. ) principal concept in target marketing is that those who are targeted show
a strong brand loyalty to that particular brand. Target 'arketing will allow us to
customi8e our message to the targeted group of consumers in a more focused manner.
$9Gs of /arketin%
'arketing decisions generally fall into the following four controllable categories2
iD .roduct iiD .rice iiiD .lace BdistributionD ivD .romotion
2he /arketin% /i5
11

The four .Hs are the parameters that the marketing manager can control, subject to the internal
and external constraints of the marketing environment. The goal is to make decisions that center
the four .Hs on the customers in the target market in order to create perceived value and generate
a positive response.
9roduct -ecisions
The term QproductQ refers to tangible, physical products as well as services. ,ince our business
plan is based on the opening of a men%s mobile salon, hence it is service oriented and we will be
describing it based on service.
The name that we have chosen for our salon is I hair you#, which is short, simple and catchy. )
name that the consumers will find very interesting and most importantly will easily remember.
Ainding a name that2 9 suits our target market, is attention9grabbing and will be easily
remembered were the things that we kept in mind when selecting the name I hair you# for our
salon. $hich can also be used as The Brand nameQ for our service&
11

$e will be providing all the services that other salons are providing to the men. ,tarting from
!aircuts till facial, every single service will be provided, maintaining a perfectly hygienic, safe
and soothing environment at the same time. /ven though it is mobile, the customers will not feel
uncomfortable or that they would have got better services in other salons. .roviding the best
*uality service to our customers has been the main concern when designing the entire plan for
our business. /xcellence is what all the customers seek for and that is exactly what we will try
providing them. The products that we will be using for facial purposes ,and other skin related
services will be 3;;@ safe and will in no way cause bad effects to our customers.
+ot only the ingredients but also the machineries that we will be using will be of very good
*uality and imported from abroad. !ence it is pretty much understandable that we will in no way
sacrifice in *uality.
9rice -ecisions
The price of the services being offered at the vehicle that will stay at a constant place in a
location will not be at all expensive but the same, and reasonable price that are being charged by
other salons. ?ust a little bit more price could be either added or excluded, depending on the way
in which the customer is getting their service done.
The vehicle we will have, that will be available only R(n call0% will be a little more expensive
than getting a service from the vehicle that we will be having which will stay in uniform place.
This is very much logical since, the transport is arriving on the will of a person to a place; it is to
be little highly priced compared to other types.
11

The very first fifty customers of our salon will be getting a 3;@ discount card, and if he is a
student, he will be getting a 3:@ discount in total, upon showing his identity card along with the
discount card, on getting services done by the salon costing over 3;; tk.$e will be providing
special discounts as well on special occasions like religious festivals, new year, valentines day,
etc.1iscount will run for a week during the time of the occasion. Molume discounts of :@ will be
provided to a person getting services done which costs over 4;;; tk.
$e are focusing on ,kim pricing because it attempts to Qskim the creamQ off the top of the
market by setting a high price and selling to those customers who are less price sensitive. ,ince
our target market is the men which include the male students and also the service holders along
with both the top business people of our country, they will be less price sensitive because, they
are usually busy and does not have enough time to go to a salon and their hair cut, hence it will
be highly advantageous for them to have something like mobile salon, that we are planning to set
up.
,kimming is most appropriate because2
1emand is expected to be relatively inelastic; that is, the customers are not highly price
sensitive.
5arge cost savings are not expected at high volumes.
(ur company does not have the resources to finance the large capital expenditures
necessary for high volume production with initially low profit margins.
)s the product lifecycle progresses, there likely will be changes in the demand curve and costs.
)s such, the pricing policy should be reevaluated over time.
11

9ricin% /ethods
To set the specific price level that achieves their pricing objectives, managers may make use of
several pricing methods. The pricing methods we will be using are29
<ost9plus pricing 9 set the price at the production cost plus a certain profit margin.
Target return pricing 9 set the price to achieve a target return9on9investment.
Malue9based pricing 9 base the price on the effective value to the customer relative to
alternative products.
.sychological pricing 9 base the price on factors such as signals of product *uality,
popular price points, and what the consumer perceives to be fair.
-istribution @9lace? -ecisions
1istribution is about getting the products to the customer. $e will be following selective
coverage as our channel strategy for the first 6 months, this is because, we are very much new
into this market and hence it is wiser to start from small in order to achieve big and best results
gradually. )nyhow we use selective coverage because, it limits the availability of the services to
certain outlets it is called selective coverage, one of our vehicle will be in a place at a specific
date for a specific time <ertain places will be selected considering they comply with a certain
pre9set criteria, depending on the demand for our service. The other vehicle we will have will
arrive on call of customers.
9romotion -ecisions
11

In the context of the marketing mix, promotion represents the various aspects of marketing
communication, that is, the communication of information about the product with the goal of
generating a positive customer response.
$e will be using a pull# selling strategy, which re*uires high spending on advertising and
consumer promotion to build up consumer demand for a product. $e will use this because we
are very much new into the market and the service we will be providing is also new, there is no
other mobile salon Bangladesh yet, hence we have to spend a lot in doing promotions for our
service in order to make our service familiar to the market, and generate consumer demand.
The major advertising tool we will be using is word9of9mouth which is a form of bu88 marketing
or viral marketing. It will be very, in fact most helpful in order to promote our service.
Brochures, fliers, internet Bsocial networking sites like facebook, email etcD will also be used in
order to promote our service.
$e will not be advertising on televisions, newspapers or even radio this is because that would
re*uire huge amount of capital, and apparently we are fresher%s into this business are we are
focusing on starting low in order to build big0
>esearch has shown that racial similarity, role congruence, labeling intensity of ethnic
identification, shared knowledge and ethnic salience all promote positive effects on the target
market. >esearch has generally shown that target marketing strategies are constructed from
consumer inferences of similarities between some aspects of the advertisement Be.g., source
pictured, language used, lifestyle representedD and characteristics of the consumer Be.g. reality or
11

desire of having the represented styleD. <onsumers are persuaded by the characteristics in the
advertisement and those of the consumer
Aree services as sales promotion will be done in the first week of our very starting, and
occasionally we might repeat this if re*uired.
'arketing communications budget is another issue that has to be looked upon.
(ositioning
This is creating a distinct picture in the consumers mind, and by providing *uality and hygiene
maintained services we can very much capture the consumers mind. $e are already having the
first movers advantage which will as well help us in positioning ourselves, this is because this
idea is extremely new into this market and has not been explored ever in our country. .roviding
best *uality services maintaining good environment at the sometime will add up greatly to that.
$e will be very prompt in delivering our services as well and the customers will not have to
wait, and even if they have to they will be provided with additional services during that time like
free consultations, etc.
(rocess t'e
The different process types are2 9 job shop, batch, repetitive, and continuous. The process
suitable for our organi8ation is ?ob ,hop. ?ob shop9 It is a type of manufacturing process in
which small batches of a variety of custom products are made. In the job shop process flow, most
of the products produced re*uire a uni*ue set9up and se*uencing of process steps. ?ob shops are
usually businesses that perform custom parts manufacturing for other businesses. These
11

businesses deal in customi8ation and relatively small production runs, not volume and
standardi8ation.
How =I Hair YouC 8elates to 3ob Sho"
>outing29$hen an order will arrive in our salon, the part being worked on travels
throughout the various areas according to a se*uence of operations. +ot all service will
use every machine in the salon. ?obs often travel in a jumbled routing and may return to
the same machine for processing several times.
/mployees9 employees at I !air "ou0# will be typically highly skilled craft employees who
will be able to operate several different classes of machinery. These workers will be paid
higher wages for their skill levels. 1ue to their high skill level, the employees will need less
supervision. $orkers will be paid at a standard hourly wage or by an incentive system. The
role of management will be to bid on services and to establish prices for customer orders. The
key activity at I !air "ou0# will be processing information.
Information Iit will be the most critical aspect of a job shop like I hair you0# Information is
needed to *uote a price, bid on a service, route an order through the salon, and specify the
exact work to be done. Information begins with *uoting, and then a job sheet and blueprint
are prepared before the job is released to the floor. (nce on the service floor, employees
complete job sheets and time cards for labor cost calculations and to update records for
*uoting future jobs when variances are present. $e will provide specialty, custom services, it
will compete on *uality and customer service and not on price. It will have work9in9process
inventory while jobs are being completed, but typically the customers will be waiting on the
11

order and expect prompt delivery, so there will be no finished goods inventory in this make9
to9order environment.
Schedulin%: H ) job is characteri8ed by its route, its processing re*uirements, and its priority.
)t I hair you0# The mix of products is a key issue in deciding how and when to schedule
jobs. Tasks may not be completed based on their arrival pattern in order to minimi8e costly
machine set9ups and change9over. $ork may also be scheduled based on processing time,
from shortest to longest.
<apacity2 9 capacity is difficult to measure in the job shop and depends on lot si8es, the
complexity of jobs, the mix of jobs already scheduled, the ability to schedule work well, the
number of machines and their condition, the *uantity and *uality of labor input, and any
process improvements.
*inancial (lan:
I /air You will start its operation by B1T 4:;;;;; cash from an angel investor. The
angel investor will be repaid the money within 3; years by an installment of 4:;;;; tk.
per year with an interest of 3;;,;;; tk, that%s means total 6:;,;;; tk. There are only
F::,;;; tk. needed for initial set up cost and remaining 3,:-:,;;; tk. will be remain as a
working capital and used for next two years lacking of <ash payment. The projected
initial set up items with its projected cost are shown below table2
11

Set up Cost
B1&
Sources

An%el investor e6uity !&',,&,,,

Fses

:icensin% cost C;,;;;
Com"uter and furniture 4;;,;;;
Saloon e6ui"ment 0 cosmetics -;,;;;
Air condition 34;,;;;
-e"osits 4;,;;;
Startu" marketin% fees 4:,;;;
;m"loyee hirin% cost 3;;,;;;
-ecoration 4:;,;;;
car advances :;,;;;
%enerator G;,;;;
others 3;,;;;
2otal Fses I''&,,,
(orkin% ca"ital 1&'$'&,,,
(ro0ected Inco-e state-ent Analsis:
I Hair You doesn%t have that much of fixed assets. There are only some item like
computer and furniture, air condition, generator etc are evaluated as a fixed assets which
total value as projected is -, ;;,;;; tk. so for these 4-@ depreciation is counted as a
yearly base. It%s may seem very extravagant with 4-@ annual depreciation but it is
counted like this way because the fixed assets we are evaluated is moreover going to be
finished within : years. ,o we want to recover the cost as soon as possible.
(n the other hand employees are paid regular salary. The hair specialist got G:;; tk.
1river got E:;; tk. and the cleaner boy will get 4:;; tk monthly. There is also a lunch
allowance daily :;tk for everyone. In first year there is a huge loss on the business as
projected, in the second year it reduces as the sales revenue goes up but still the business
in a loss and the third year the business will got very minimum profit. )s the years pass
by the business will gain a lot of profit as well as the business will get strength because of
11

reducing the loan burden and also for a good accumulation of the depreciated assets.
There is a 3;@ <(=, as projected. ,o after meeting all the expenses the profit margin
graph of I !air "ou# seems like2
(ro!it Margin 1ra'$:

!ere we can see that in the beginning profit was negative, in the second year it go a *uiet
up and in 6
rd
year it began to generate profit.
Sales re+enue gra'$:
Though it
is hoped that
for good
marketing
strategy,
11

customer relationship management and for well employee satisfactionary policy the sales
revenues will go up gradually.
S.rojected Income statement2 )../+1IT 93U
(ro0ected Cas$ *lo" State-ent Analsis:
)s a new business I !air you# didn%t such any financing and investing activities as well as no
new e*uipment and inventories also not bought by the company. Though the business will be in a
loss for beginning 4 years so the cash from the working capital management will be use to meet
up the regular need.

So here in graph in the first two years there was negative cash flow as there was no profit in the
business but in 3
rd
year it goes to positive.
[ro!ected cash flow " balance sheet in #$%&I' ("3)
2et 'ro!it Margin ratio:
11


In year 3 N 4 net profit margin is negative but in year 6 it will positive. Though there are huge
amount of money outflow initially from the business so it will take some more time to came in a
break even and in profit generation form.
3rea. e+en Analsis:
Arom the projected income statement and projected balance sheet we find that there is no profit
in the 3
st
and 4
nd
year, in 6
rd
year there was an little profit. ,o in order to came in breakeven I
hair you# will take more than 4 years.
11

!ere in the graph we can see that just after the 4
nd
year there are profit generation starts. ,o it
will take 4 years one or two month to come in a breakeven. Though there is a highest interest
payment and also a high amount of depreciation charged that why it will take a longer time to
come in a break even.
;5it strate%y
$e plan to stay in this business forever if we get enough response first, then we can grow our
business and reach different cities of Bangladesh, and at some point we may even rule over the
entire country if we can make our customers happy. Then our heirs can take care of our business
in our absence. $e will prepare them for looking after our business, by taking them to our
business locations, making them thoroughly understand what& !ow& $here& it is happening
,who are our target customers, were the money is coming from, what we are planning for future
11

and most importantly how to take care of the labors ,their interests, etc, for who%s main effort we
have reached the position we are in today0
Conclusion
Airst of all our business is a new kind of. It is one of those business ideas that can be a pioneer
because of its uni*ueness. ,o, primarily we are projecting some glitches in the first years. But
through our management skills and hard work we think we can pull of and can grow to success.
/ven though the first two years were rough, from the third year we will do well. The net profit
margin will increase in times which will good for us. The higher its value, the better able the firm
is to fulfill its interest obligations. ,o, it will be gradually increase. The break even analysis
shows that the firm will reach B/. at around 4
nd
year and from then it will be profiting. )s we
said, its uni*ueness will be the key to our success. ,o, overall we can say that our business have
a feasibility to continue in real world.
11

BIB5I(=>).!"
QTarget 'arket.Q *i+ipedia, the -ree $ncyclopedia. $eb. ;3 )pr. 4;33.
Vhttp2LLen.wikipedia.orgLwikiLTargetWmarketX.
Q.ricing ,trategy.Q %et./# /usiness 0nowledge Center. $eb. ;3 )pr. 4;33.
Vhttp2LLwww.netmba.comLmarketingLpricingLX.
(..apers.com, ?oining. Q'arket <overage 1ecisions 9 <ollege /ssay 9 Jroontjie.Q -ree 1erm
apers, 2esearch apers, $ssays, /oo+ 2eports 3 4apers.com. $eb. ;3 )pr. 4;33.
Vhttp2LLwww.oppapers.comLessaysL'arket9<overage91ecisionsL3CF;:EX.
Q'arketing 9 .romotion 9 .ush and .ull ,trategy.Q 1utor(u 3 $conomics 3 /usiness Studies 3
olitics 3 Sociology 3 History 3 5aw 3 .ar+eting 3 #ccounting 3 /usiness Strategy. $eb. ;3 )pr.
4;33. Vhttp2LLtutor4u.netLbusinessLmarketingLpromotionWpushpull.aspX.
11

)../+1IT
)../+1IT 93
Projected Income
Statement

Year 1 Year 2 Year 3
Sales revenue

20,00,000

22,50,000

31,50,000
C!S

2,00,000

2,25,000

3,15,000
!ross "ro#t

1$,00,000

20,25,000

2$,35,000
"eratin% and administrative
e&"enses'
Salar(

),50,000

),50,000

),50,000
Advertisement

$0,000

*0,000

25,000
+e%istration and li,ense -ees

1$,000

1$,000

1$,000
!enerator . ,ar %as

5,50,000

5,50,000

5,50,000
de"ri,iation /2*01

23,000

23,000

23,000
4iantainan,e

30,000

30,000

30,000
Car rent

5,)3,000

5,)3,000

5,)3,000
5un,h allo6en,e

1,32,000

1,32,000

1,32,000
thers

)2,000

50,000

30,000
Total "eratin% . admin. 7&"enses

23,3*,000

23,02,000

22,3),000
789T

/5,3*,0001

/2,)),0001

5,3$,000
9nterest e&"ense

3,50,000

3,50,000

3,50,000
78T

/2,1*,0001

/3,2),0001

2,1$,000
Ta&

:

:

22,200
;et <ro#t=5oss

/2,1*,0001

/3,2),0001

1,$$,$00

11


)../+1IT 4
Projected Cash Flow
statement
(ear 1 (ear 2 (ear 3
Cash >o6 -rom o"eratin% a,tivities
;et in,ome

/2,1*,0001

/3,2),0001

1,$$,$00
Add' De"re,iation e&"enses

23,000

23,000

23,000
Cash "aid to su""liers/,osmeti,s1

:
;et ,ash %enerated -rom the
o".a,t

/$,1$,0001

/5,31,0001

2,$*,$00
Cash >o6 -rom investin% a,tivities

:

:
Cash >o6 -rom the #nan,in%
a,tivities

:

:
;et ,ash >o6

/$,1$,0001

/5,31,0001

2,$*,$00
8e%innin% 8alan,e

15,*5,000

),2),000

1,23,000
7ndin% 8alan,e

),2),000

1,23,000

*,$0,$00

11

)../+1IT 6
Projected Balance
Sheet
Year 1 Year 2 Year 3
Current assets
Cash )2)000
12300
0
*$0$0
0
A,,ounts re,eiva?le 0 0 0
Saloon e@ui"ment . ,osmeti,s *0000
33500
0
)5000
0
De,oration 250000
25000
0
25000
0
De"osits 20000 53000
35000
0
Total ,urrent Asset 103)000
113)0
00
1$30$
00
Ai&ed assets
Aurniture, %enerator, A=C *00000
30*00
0
20$00
0
5ess' de"re,iation /2*01 23000 23000 23000
Total #&ed assets 30*000
20$00
0
11200
0
Total assets 13*1000
13)50
00
12*2$
00
5ia?ilities and o6nerBs e@uit(
Current lia?alities 5000 2000 *000
5on% term loan 2250000
20000
00
1)500
00
;et loss= "ro#t :21*000
:
32)00
0
1$$$0
0
11

Total o6nersB e@uit( and lia?ilities 13*1000
13)50
00
12*2$
00

Ratio
Analysis

Total assets turnover ratio 1.*2 1.33 1.5$
<ro#t mar%in :*5.)00
:
2).$3
0 5.220