SPYKAR LIFESTYLE LTD.

Team :: FIRE

Navpreet Singh

Darshan Singh

Chitkara Business School

Case Extracts ::

Establish Spykar brand, a leader in every avenue where customers demands style and latest trends.

We would like to establish a state-of-art, modern and well equipped style salons for customers who are looking for the perfect look and offering a full range of services and grooming treatments.

Hair Service – Price range Rs 200 (for men) and Rs 300 (for women).

Other Services include Hair coloring, Straightening, Re-bonding, Blow Drying and Hair Spas, these

services vary from Rs 2000 – 6000.

Skin Care - Price range Rs 500 to Rs. 2000.

Manicure & Pedicure – Price range Rs 150 – 500

SFX Salon is one of the pilot projects started by Spykar Lifestyles Pvt. Ltd. The first outlet has been operational in our Nirmal Lifestyles Outlet at Mulund in Mumbai. The salon is situated inside the Spykar Outlet.

Added Information (20th Mar 2010, 11:00 pm)

Prepare Promotion and Advertising Strategy for building up a vast customer base for SFX Salon.

Revised Budget for Media plan :: Rs.2,00,000.

Positioning Statement

‘For the educated and style conscious youth, SFX salon is a one stop

shop 'for complete and personalized beauty needs as it is a state of the

art style salon with fashion gurus as your personal stylists. Spykar has

already proved itself as a trend setter in the arena of Fashion and style

in its Denim Division.’

Sir

All our strategies will be based on a constant evaluation of what the competitors

are doing, our positioning strategy and resources at hand. At outset of any and

every plan and we will match the actions with our company values and vision.

Evaluation of Competitors & their Strategies

L’Oreal which is also present in Mulund, exercises a lot of Brand power and runs

big media campaigns on National television but we need to understand that they

are just not in the salon business but also have beauty products thus they need

Brand Ambassadors and big campaigns, whereas we have just started with a single

salon thus we must focus on strengthening of clientele in this particular salon

(Mulund) and also rely upon the brand power ‘SPYKAR’ brand. We are at par with

them in pricing.

JUICE is a not an immediate competition because it is not in proximity to our salon

and they are also on the costlier side. They have a strong customer relationship

management. Which we can inculcate in our strategies.

B:blunt is a salon exclusively meant for the upper or rich class. They have 3 salons; 2

in juhu and 1 at Kemps corner, thus again not in close proximity both in terms of

location and pricing.

MATRIX comes across as a very close competitor both in terms of the range of

services and pricing.

Nalini is a salon which has a good reputation among the people but it has its

limitation i.e. in three decades it has been able to establish just 2 salons and with

no intentions of expansion thus it will not hamper our market share.

Environment and Demographic Scanning of Mulund

Mulund has been called the Prince of Suburbs to rival the Queen of Suburbs,

Bandra. Mulund is home to a progressive, educated and outgoing people, which

ensures a big propotion of the population will be Middle to Upper class. It is

considered on of the safest areas in Mumbai and also has a very happening night

life. The location of our salon is very strategic as 2 of India’s biggest malls i.e.

R-MALL and NIRMAL LIFESTYLE attract a lot of Mumbaikars to this place

According to 2001 census data, Mulund has an estimated population of 9 lacs. Also

a majority of the people in this area are of Gujarati ethnicity, Gujarati people are

generally businessmen but they are known to be very judicious while spending thus

if we see what SFX Salon is offering is apt for such a customer, because they want to

be associated with a brand and still wants value for money. Thus we are giving

them the exclusivity of SPYKAR brand and yet a hair cut at Rs. 200.

All this adds up to better business prospects for a salon like ours.

Promotion & Advertising Strategies

We will be following a simultaneous, Multi-Pronged awareness,

advertising and promotional strategy wherein every event or promotion

will be inter-connected in its impact thus these promotions will reinforce

impact of each other .Thus will create a feeling of a very big and

intensive campaign. We will make maximum use of the brand power of

SPYKAR by flaunting SFX salon’s affiliation to it.

Spykar SFX Style Nomads. (SSSN)

Spykar SFX ‘Makeover Week’

Radio Campaign (In tandem with ‘SSSN’ )

Spykar SFX Style Nomads will be the initiating campaign. In this

campaign we will hire an event management company which will hit the

roads and visit various locations (hot spots) in proximity to our salon i.e.

Mulund and Powai [Hiranandani Gardens, IIT powai, Vihar Lake, R-MALL

and Nirmal Lifestyle]. We will identify locations and timings when to visit

these areas a major criterion for choosing spots will the regularity of

young people visiting those spots.

We will organize fun events on these spots which will act as a attraction

to the crowds and winner of these events wil l get discount coupons for

Spykar SFX ‘Makeover Week’ . At this event in between the games the

host will also tell about SFX Salon and Spykar SFX ‘Makeover Week ’.

This will act as a stimulant for the winners to visit the salon and have a

feel of our services and for the crowds it will create awareness and

curiosity about this new BRAND EXTENSION of SPYKAR.

This will be a week long affair. The whole event will be backed by constant ‘event

updates’ (advertisement) on the most happening and a completely youth oriented

Radio Partner ‘FEVER 104 FM’.

We will take FEVER 104 FM as a Radio Partner by giving them display space on the

banners which will be used during SSSN. This will help us in negotiating and

getting our advertisement cost down. Whenever the SSSN will reach a new spot

there will be update by FEVER 104.

Spykar SFX ‘Makeover Week’ will be an in house event i.e. we will call upon

students from Fashion Institutes to come for a week long training programme for

them @ Spykar outlet (Nirmal Lifestyle Mall).

They will act as Personal Style Advisors to the customers who visit the outlet and

assist the customer in choosing the outfit that will suit them and also recommend

hair styles. Thus giving a premium and personalized service to customers.

The reason behind hiring the trainees from these Fashion Institutes is

They are the youth, which is the major target audience for Spykar and SFX Salon.

They will be selected from two reputed institutes which are located in Mulund itself i.e.

NIFT (National Institute of Fashion Technology) & J.D Institute of Fashion.

Selection of students from an institute in mulund will create a buzz in the area .

These students will come as interns for which they will get an Training certificate from a

fashion giant like Spykar, which is a privilege. Thus we will be able to shave off the cost to

hire a professional stylist.

Cost Associated with the Above Events ::

Event Management Company @ SSSN 7 days :: RS.40,000

Stipend for 6 Interns (Style Advisors) 7 days :: Rs. 12,000

FEVER 104 FM (Radio Partner) Rs.1000 @ 10 sec 7 days :: Rs.1000 * 8 * 7

Rs. 56,000

Total Cost :: RS. 1,08,000

SFX STYLE CARD

Slogan:: “ hoT on StyLe, KooL on SavingS”

SFX STYLE CARD will be a membership based card(Pre-paid). Here a customer

would choose from various slabs/options with different validity period and will get

a fixed discount on the services availed thereon.

Example :: Rs. 500 for 6 months (20% discount)

Rs. 1,000 for 1 year (25% discounts)

This will act as a loyalty programme and will ensure permanent clientele. Also advance cash flows for the salon.

Print Media

We have chosen 3 newspaper for our print media campaign. Where 2 newspapers are weekly newspaper which cater specifically to Mulund area. These newspapers are :

Society Bulletin (English newspaper, dedicated to Mulund, High circulation,Weekly :

Saturday) The Times Mulund-Powai (English newspaper, Circulated in Mulund and Powai,

Indiatimes)

The third newspaper is Mumbai Miror(Supplement of Times of India) which is in circulation in Mumbai and has largest circulation in Mumbai.

Cost Associated :: Society Bulletin Rs.3000 for 60 cc 1 month : Rs.3000 * 4 = Rs.12,000 Times of Md-Pw Rs.5000 for 60 cc 1 month :Rs. 5000 *8 = Rs.40,000 Mumbai Miror Rs.12,000 for 60cc 1 month :Rs.12,000 * 2 = Rs.24,000 Total Cost =Rs.76,000

Promotion at Spykar Outlets

One of our biggest tool in creating awareness would be the Spykar outlets that are

scattered throughout Mumbai. These will have posters and banners of SFX Salon.

We will also start a promotion where a customer will have to do shop for a

particular amount and then he can avail a discount coupon for SFX Salon. The

amount will be kept in fashion would not seem much cost but yet will result in add

on buying.

Example :: A jeans cost around Rs.1,800 – Rs. 2,200 thus we can come up with the

offer that shop for rs.2500 and get a discount coupon, this will prompt or lure the

customer to buy something thus will help increasing sales as well thus in a way

compensating for the discounts being given.

VIRAL MARKETING

As mentioned in the earlier plan, we would like to allocate some of our resources in

creating an online blog which will list down various events, promos and schemes

that are going on in regards to SFX Salon.

Also a promotion or making the presence of SFX salon felt on the web world. This

can be in form of creating forums, communities on social networking sites and

listing the salon on various yellow pages.

A Package for such a service can be bought @ Rs.15,000.

Final Budget ::

SSSN : Rs.40,000

FEVER 104 : Rs.12,000

SSMW : Rs.56,000

Print Media : Rs.76,000

Viral Marketing : Rs.15,000

Total Cost : Rs.1,99,000

I hope this will satisfy you as well as your expectations, in terms of extensive

promotional campaign to create awareness and a reliable clientele.

Regards

Rahul.