Download - Research assignment

research assignment.

presented by

joyce wee yi qinlee pui sanmok po yi

ryan kerry jee jin yiingsonia mancxia

tan wing hoetoo mun fai

key summary.

77 Unisex

Home-based business

GC Hair Studio & Academy

Commercialized

hair dressing

Different environments and other external factors lead to different business outcomes

the site.

history.

located in Sungai Way

business started in 1985

started this business 30 years age when she was only 23 years old

She operated her business in a small hair studio which was built behind her mother in law’s backyard to save cost.

Her modal for this business was only roughly RM6000 back then, which would be equivalent to today’s RM15000.

home-based

history.

When she first started her saloon, business was booming as many people from around Sungai Way would come to her saloon to cut, dye or perm their hair.

However due to many factors such as increase in competitors, customers moving out of Sungai Way and others, business has declined drastically throughout the years.

Her annual revenue for the past few years never exceeded RM14000.

She has been running a rent-free business.

home-based

the site.

history.

The GC Hair Saloon & Academy has one headquarters located in Cheras, Selangor and another operating branch situated in Puchong, Selangor.

business started in 1998

This hair saloon has been operating for 15 years by its founder and director Gary Choy, hence its name being GC Hair Saloon & Academy.

This saloon has been favourites to many as it satisfied and still satisfying customers throughout the Klang Valley leading to many new customers coming in every once in a while.

commercialized

history.

Provides many different services such as the regular haircut that comes with any style or fashion of your choice, quality hair curling, hair dying with their signature hair dye brand, Schwarzkopf which originates from Germany.

Most of the time, they will employ two to three hair stylists to work side by side with the manager of the saloon.

GC Hair Saloon & Academy also has their own academy that teaches students of all ages

The students will be taught personally by the director or manager and gradually become a qualified hair stylist trainee after six months of training at GC Hair Saloon Academy.

commercialized

brief description.

home-basedlocated within an old residential area in Sungai Way.

founder : Madam Ho Ah Yoke.

Low in cost as she wise-used the backyard of her in-law’s house to build a small space for her hairdressing career.

The services provided are commonly practiced by most of the saloons in the market.

Visitors are mostly regulars.

brief description.

home-basedSince it is a small business, only one foreign labour is hired for miscellaneous tasks.

Due to the rise of popularity of this profession, there are many competitors around Petaling Jaya and also Subang Jaya.

Madam Ho uses good quality hair products and maintain good connections with her customers.

There are no branches.

The operating hours of this business starts from 8AM to 5PM every day and closed every Monday.

pricing list.

haircuts rm12hair dying rm40 - rm50hair perming rm70hair straightening rm150

Founder: Gary Choy This saloon is located in Bandar Puteri Puchong (a commercialized area opposite Giant, Puchong). The headquarters is situated in Cheras while the first branch is in Puchong.

The services provided includes haircuts, hair dying, hair perming, hair straightening, hair therapy and hair styling.

It also provides hair academy and courses for the public. it has a good and steady flow of customers in and out of the hair studio every day the saloon hires 3-4 full-time hairstylists and a few trainees from their own academy.

brief description.

commercialized

brief description.

commercialized

GC Hair Studio and Academy provides excellent hairdressing skills with good quality products imported by Germany to maintain its business.

Hair products such as shampoo, conditioner, hair serum, hairstyling wax and hair mousse also retailed by the saloon to increase the business income.

The business hours is from 10:30 AM till 8:30 PM and the saloon is off on Tuesday.

cut & blowdry rm10 – rm 35 & aboveshampooing & blowdry rm16 – rm 19 & above shampooing, blowdry & cut rm30 – rm 55 & above

pricing list.

*based on qualification of hairdresser

dying rm60 | rm90 | rm120 & aboveadditional highlighting rm 30 & above hair perming rm60 | rm90 | rm120 & above

*based on length (short,medium,long)

comparative analysis.

home-based

commercialized

competitors in the area

Izzo Hair SaloonD Hair ParkAPT Hair Saloon

Hong House SaloonNew Colour Saloon

Fione’s Hair cut

strategies to deal with competitors

The prices are affordable despite offering professional hairdressing services and good quality hair products

The pricing are slightly higher than other home-based saloons

in that area due to it offering better quality products to

provide services to their customers

pricing


They will raise the price at a range from around RM3 to RM4 during peak seasons.

The saloon will not raise the prices for any services.

pricing ( peak season )


The saloon has a large signage placed at the façade of the shop lot. A largely printed pricing list is placed in front of the saloon as well. There are banners positioned in front of the saloon to attract customers. A website and Facebook page as well are used to publicize their business as well.

A small signage is positioned in front of the main gate of the

house. They do not practice doing any advertisements due to the presence of regular customers.

advertisement


The services offered aresatisfactory and professional.

Friendly and interactive.

quality of services


The hair studio’s interior is modern and fully furnished. Furniture and equipment used are up to date and are in good condition to ease labour and ensure the comfort of the customers.

atmosphere

The interior of the hair studio is old so as the furniture and

the equipment used. The shop radiates a vintage feel, offering a vintage feel to the customers.


They are known for implementing a German branded hair product -Schwarzkopf. The product is a qualified hair care product to ensure customers the best hair care solutions.

variety of products

The saloon uses good quality of local hair products

to provide services to the customers.

obstacles faced by a new business

lack of publicity. They are not well-known from the start so they intend to have a problem to advertise their business. If this problem persists, they might have a low number of customers visiting.

intense competition. among the same industry at a specific location might affect the new businesses.

customer’s confidence. Customers often prefer to visit existing businesses rather than the newly formed businesses.

nature of market

GC Hair Studio and Academy serves customers with professional hairdressing skills with a comfortable environment. They implement qualified hair products which are imported from Germany to ensure the quality of their services offered.

77 Unisex saloon provides good hairdressing skills as the shop owner

has much experience in this field. The business also provides better hair products to ensure customers

getting the best services hair and scalp.

Both the saloon is in a perfectly competitive market. There are a lot of hair saloons at the same area and they are providing similar hairdressing

services as well.

contrast.

home-based

commercialized

services

haircuts hair dyinghair perminghair straighteninghair therapyhair stylinghair academy

haircuts hair dying

hair perminghair straightening

workers

3-4 full time hairstylists*2-3 trainees from the academy (occasionally)

one foreign worker for miscellaneous tasks

future plans

retirement plans to open new branch inPetaling Jaya within 2 years.

strategy

Products used such asshampoos and other hair

products are of high quality

Excellent hairdressing skills along with using renowned and branded hair products.

founder and history

Madam Ho Ah Yok startedher hairdressing career at theage of 23 after being inspired

by her sister.

She started her own businessin 1985 at the backyard of her

in-law’s house and it still existsup until now.

Gary Choy is the CEO and Artistic Director of GC Academy of Hair Design.After graduating from London, Garyworked as a professional hairdresser, as well as owning his first hair studiowhich began operation in 1998.

location

77 Unisex is located in anold residential area in Sungai

Way. The saloon is built inthe backyard of a residentialunit back then hence making

it old looking.

GC Hair Studio and Academy islocated in Bandar Puteri Puchong(opposite Giant, Puchong). There are a lot of other hairstudios operating around that area (2 hair studios located just across the road).

number of saloons nearby

zero five

number of branches zero One branch (Puchong)

*Headquarters at Cheras

business hours

business operation

8 am – 5 pm

Solely by Madam Ho

10.30 am – 8.30 pm

Managed and monitoredby Lee Yi Ling (Branch Manager)

price range

number of customers per day

rm 12 rm 6 – rm 55

25 - 305 – 8

targeted market

children and senior citizens

regular customers

Youngsters and adultsages from 15 - 50

conclusion

hobby rather than a job or a business well established

both saloons sells the same types of hair products which includes shampoos, conditioners, hair mousse, hair styling wax and hair serum.

conclusion

still in the same condition as it was 30 years ago and has no plan of

renovating the place. The less attractive interior, out of date equipment and old

hairdressing stylesis also one of the down factor that tends to

slow down the business growth.

more potential to develop further as Mr Gary Choy has the intention of branching out the business to different locations in the Klang Valley.

conclusion

hardly visible to the public as it is hidden at the backyard

with no advertisement.

publicize themselves in the World Wide Web and social media.

recommendations.

GC Hair Studio and Academy

prices should be cheaper than the rest

prices that are being offered could also be lowered during festive seasons.

pricing location

consider searching for a new and more strategic location

77 Unisex

prices should be cheaper than the rest

prices that are being offered could also be loweredduring festive seasons.

advertisement environment + equipment

consider searching for a new and more strategic location