Sales Project On
JAWED HABIB

Submitted to:
Prof Subhashish Dasgupta
Shanti Business School, Ahmedabad

PGDM Trimester IV (Batch 2010-12)

Continuous Evaluation in Service Marketing

Submitted By:
Pooja Iyer
1011012006

PREFACE
This report is written so that an understanding of jawed habib can be understood easily. This report is designed to provide a comprehensive introduction to the above mentioned firm. This is a sales report and so covers only the general information regarding the firm and its services. The report also touches upon the competitor’s knowledge, customer’s knowledge and distributor’s policy.
All the parts in the report have been written in English as it is the most understandable formal language.
The report has been made by surfing on different internet sites and picking up the exact data which was required.

History
Jawed Habib is one of the leading hair & beauty salon chains in India. The company currently operates a total of 225 outlets across 21 states and 67 cities in the country.
The company is promoted by Jawed Habib, a renowned Hair Expert who started the company with a vision to provide quality hair styling and beauty services to the wider populace of the country. With his passion and relentless efforts, he has established an effective system which is self sufficient in terms of providing quality services to clients all across.
Hair and Beauty services are provided through the company's own and franchised outlets. The company also runs academies to impart quality education in hair and beauty to aspirants in the profession of cosmetology.
With 37 outlets in the year of incorporation, the company has grown rapidly and as of date, has 8 owned and 176 franchised salons in 62 cities across India. The company also runs 6 own academies and 35 franchised outlets across 36 cities.
Jawed has worked extensively at grass root levels to grow as a professional organized player in this highly unorganized industry. His achievements like entering into Limca Book of Records, association with Sunsilk as a brand ambassador and with Panasonic for its hair care products, etc. have spread recognition of our brand and today, Jawed Habib is one of the few recognised brands in the country.

Company Profile
Jawed Habib is one of the leading hair & beauty salon chains in India. The company currently operates a total of 225 outlets across 21 states and 67 cities in the country.
The company is promoted by Jawed Habib, a renowned Hair Expert who started the company with a vision to provide quality hair styling and beauty services to the wider populace of the country. With his passion and relentless efforts, he has established an effective system which is self sufficient in terms of providing quality services to clients all across.
Hair and Beauty services are provided through the company's own and franchised outlets. The company also runs academies to impart quality education in hair and beauty to aspirants in the profession of cosmetology.
With 37 outlets in the year of incorporation, the company has grown rapidly and as of date, has 8 owned and 176 franchised salons in 62 cities across India. The company also runs 6 own academies and 35 franchised outlets across 36 cities.
Jawed has worked extensively at grass root levels to grow as a professional organized player in this highly unorganized industry. His achievements like entering into Limca Book of Records, association with Sunsilk as a brand ambassador and with Panasonic for its hair care products, etc. have spread recognition of our brand and today, Jawed Habib is one of the few recognised brands in the country.

BRAND STRATEGY
Brand Vision * Build a network of 'Right Hair Right Now Jawed Habib' salons across every major city of the world. * Build high brand visibility at street level, through greater geographical spread, by building smaller franchisee centre * One in every 100 salons in the world and one in every 10 salons in India should be a 'Right Hair Right Now Jawed Habib’ salon. * Become the first choice of every aspiring franchise owner. * Become the safest destination for franchise investment. * Be present in every worthwhile mall. * Be within the walking distance of every important airport, railway and sophisticated bus junctions. * Build centres at a 30 minutes walking distance from each other. * Become a publicly traded company on major stock exchanges of the world. * Become a Blue Chip Company that offers dividends from year one, at a rate higher than the bank's fixed deposit interest rate.
Brand Core Values * Bring contemporary hair cuts and styling to the fashion and quality conscious segment of the middle class. * Make designer hair cuts and styling affordable by stripping away ambience frills. * Add value to the grooming of the patron in a holistic manner through subtle suggestions and training of hair stylist. * Be the first to bring, fashion trends in haircuts, styling and hair care breakthroughs. * Use the best possible material and ingredients. * Maintain international standards of hygiene even in small cities and towns. * Create work environment where individual and team creativity and performances are encouraged and rewarded in a just and transparent manner. * Become the first choice place for patrons, franchisees and employees. * Achieve a smile on franchise partners face all the time by providing excellent support and honest projections. * Become a great fun place to work at. * Become the best place to showcase fashion, productivity and efficiencies talents. * Achieve patron satisfaction at any cost.

Brand Core Purpose * Bring benefits of an organised sector to patrons of unorganized sector at prices they are used to paying. * Bring the brand and its business benefits within the grasp of small, educated and fashion conscious entrepreneurs.
Brand Visionary Goals * Build 1000 strong franchisees centre’s in three years.

Services Offered

Jawed Habib salons offer a full range of hair and beauty services carrying the hall mark of quality that is synonymous with Jawed Habib.
The ambience of the salons reflects the passion and warmth of Jawed Habib. When you walk into one of the Jawed Habib salons, the ambience and personalized services ensures client satisfaction. "We don't just cut hair; we feel and understand and customize styles to suit your personality and life style", says Jawed.
Hair fashion has now come to the forefront in India. Making a hair-fashion statement is now increasingly becoming a trend. No longer do people visit a salon for just a hair cut or a trim. We at Jawed Habib understand this change in consumer behaviour and through our chain of salons; we are at the 'cutting' edge of Hair Fashion. Across Jawed Habib salons, creative stylists trained in aesthetic sensitivity at Jawed Habib Academies, work magic with the client's hair.
This dedication to quality and innovation coupled with expertise has made Jawed Habib one of the leading Hair & Beauty salon chains in India, currently operating 128 salons across 21 states and 62 cities in the country.
Jawed Habib's HairXpreso

The latest brand addition to the Jawed Habib Family, JH HAIRXPRESO unisex salon has set the hairstyling landscape of the country ablaze with quick, contemporary, dry hair cuts at delightfully low prices of Rs. 99*.
Jawed Habib's HairXpreso has brought designer haircuts within the realm of the common man by cutting down the frills associated with it. It is aimed at the Indian Youth who wants a designer haircut but finds the pricing a bit pinching.
The Company has over 184 salons (franchised and owned) combining both formats across India with over 1000 professionals working for the brand. The salons are located at high traffic commercial areas with high footfalls and consumer traffic such as malls, high street, market areas etc.
Spread across a minimum of 100 sqft with 3 or more styling chairs, HairXpresos offer various contemporary, designer, dry haircuts for just Rs. 99* The technicians employed by these salons are all trained and certified by Jawed Habib's Hair Academy. The first HairXpreso was launched on 1st of June, 2009 and it has already spread to 56 outlets across the country.
Jawed Habib Academy

Jawed Habib Academy is established with an impetus to revolutionize the art of Hair Styling in India and to provide scientific and systematic training to the aspirants wishing to pursue a career in cosmetology. Since its inception, the academy has enabled thousands of students to succeed in the profession of cosmetology.

The driving force behind this academy is an accomplished team of creative professionals.

These professionals are highly qualified, trained members of the academy and have been thoroughly enjoying the art of hairstyling. An immense and far-reaching exposure to hairstyling has brought them exceptional experience.
It is the insight drawn from this expertise that has been incorporated into a comprehensive curriculum that makes a refreshing difference to the courses that are offered by Jawed Habib Academy.
This academy provides total preparation to the students. They learn not only technical skills and also effective communication, efficient client handling and shop management by being in an actual salon which helps them fit into any working environment with absolute confidence.

Coupled with a conducive training environment, the simulation methodology involves interactive learning, student's participation, lectures, and demonstrations, video presentations, working on blocks, live models and above all, participation in the actual salon operations under the able and personalized guidance of experienced staff.
This training methodology assures ready acceptance of Jawed Habib trained cosmetologists upon successful completion of their courses by leading hair brands. A few exceptional students are directly absorbed by Jawed Habib's chain of Hair and Beauty Salons.
The range of courses offered by this academy are tailored to meet specific requirements and time constraints. These courses range from a foundation course to a short two week course on specialized subjects. The academy trains on various aspects of cosmetology, with the aim of meeting individual requirements.
Jawed Habib Academy enjoys the reputation of being India’s foremost hair styling academy.
With such unique features and undisputed reputation Jawed Habib Academy is the finest choice to start a career in Cosmetology.
True to its mission, Jawed Habib Academy will continue to inspire and guide those who wish to succeed in the wonderful, artistic world of cosmetology.

Price and feature of the services offered
Services

Basic
 Hair cuts
 Hair Styling
 Shave and Beard styling
 Head massage
 Face massage

Color
 Hair color
 Color highlights

Hair treatments
 Straightening
 Perming

Feature

Uniqueness
The promoter Jawed Habib has built a cult brand around his name. Jawed Habib is primarily focused to the universe of hair care and styling. Branding and the organized way of conducting business is just waiting to happen to the burgeoning unorganized hair styling and grooming sector. RHRNJH will bring Jawed Habib premium hair styling process to the middle class segment.
RHRNJH will be a brand owned by Jawed Habib Hair and Beauty Ltd.

Price of the services offered:-
Price:
The price differences are highly significant between the town classes, with prices in the metros being considerably higher than the smaller towns, the difference being upto Rs. 500 for haircuts. Price differences are the highest in haircuts and facials, followed by hairstyles. Among the other services, the price differences do not appear to be so dramatic.The main drivers for price variations are quality of the services offered and the retention of good employees. These are also important factors which drive customer loyalty. Also the locality in which the parlour is located drives the price. In case of large parlours, a certain niche or speciality determines the price points for the services offered.

Share of Revenue by Service
Across the categories of beauty salons, haircuts are the most revenue Generating service, accounting for between 25-30% of the total revenues. Hair styling(haircolouring, perming, streaking etc.) contribute to about 18% of the revenues for the larger salons, but are very insignificant revenue earners for the other categories. This is especially true of high-end speciality parlours. In the medium size parlours, hairstyles lose out as the revenue generators since the skill sets are generally perceived to be lower in this category. However, facials, being comparatively price inelastic, make up for 31% of the revenue generation in this category. This trend also follows to the smaller and homeparlours as this is a function of price rather than volumes.

7ps of Service 1. Product/Services

Jawed Habib is primarily focused to the universe of hair care and styling. The brand will offer the quality of organized services at the price of unorganized sector. The salon will offer hair styling and hair care services. The services include the following:

Basic
 Hair cuts
 Hair Styling
 Shave and Beard styling
 Head massage
 Face massage

Color
 Hair color
 Color highlights

Hair treatments
 Straightening
 Perming

And also there will be range of hair consumables which will be sold in these outlets. We plan to highlight reputation of the owner and other "beauticians" as providing superior personal service.

2. Place

The brand will be visible at strategic locations which have a very high human traffic density such as shopping malls, theatres, railway junctions, and bus junctions; we plan to provide an easy accessible location for customers around the country.
3. Pricing

The pricing strategy is based upon the lower middle class being able to afford the same. The table 5 gives rates of various services offered in the salon.

Price list (All figures in INR)

4. Promotion

The promotional campaign has two goals:
(a) Generate walk- in for the salon.
(b)Generate and convert enquiries to franchise appointments.

They suggest usage of ½ page advertisements once a month in the first choice city newspaper. In addition to this, a certain amount of presence will be needed at street level i.e. usage of Outdoor media, but at the eye level (bus shelters, etc.). Some amount of exposure in the initial stage on television should prove to be cost-effective.

5.People: * The right customer-contact employees performing tasks well job design ,recruiting/selection ,training ,motivation ,evaluation/rewards ,empowerment/teamwork. * The right customers for the firm’s mission fit well with product/processes/corporate goals appreciate benefits and value offered possess (or can be educated to have) needed skills (co-production) firm is able to manage customer behavior.

6. Process:
They are providing best services so the customers will visit again and again.The process design will give customers the best result and to satisfy the customers .
7. Physical Evidence: Designing the Service scape and providing tangible evidence of service performances * interior design/furnishings: Jawed Habib are having red colour interior design to attract the customers . * staff grooming/clothing: They are having red T-Shirt and black trouser to know there physical evidence.

Various Strategies Which Jawed Habib can adopt :-

* Appoint Six Inches as its creative partner for generating awareness of the brand through its offerings with a focus on advertising, below the line and online.

* Target niche market, in the field of professional and creative hairstyling

* Hair Xpreso’ -budget salons provides dry hair cut services, provide products focused on styling and accessories to customers across

* Budget salons placed in malls across major metros Operating in 150+ stores in India and with 700+ professional

* Complimentary: Nothing brings a smile on your customers’ face more than an unexpected complimentary. Be it a snack with a beverage or a small gesture on somebody’s birthday, complimentaries are addictive and keep customers coming back. Keep that smile plastered on your customers’ face and you have just bought enduring loyalty, rather cheaply one may add.

* Referral: Introduce one new member and get 50% off the monthly fee. Saves marketing costs for you and keeps clients happy and busy.

Marketing models
Porters five force model

Threat of Industry (Segment) rivalry is – STRONG
We have identified the unorganised sector as our competition, and they are likely to put intense battle by reducing their prices. The other competitions like – L’Oreal & Lakme would not pose a serious threat because of price disparity & different positioning.

Threat of new entrants is - STRONG
Almost anybody can enter this segment because of low entry barrier due to low overall cost of capital investment to set up the small size salon. As foreign brands like ‘Tony & Guy’ have already made their presence felt in India. Reliance is gearing up to enter this untapped segment with ‘Wellness’ centres.

Threat of substitute products is – WEAK
The formulation used for treatment in a salon can be substituted by over the counter formulation. However the percentage of sales to top line is very low.

Threat of buyers’ growing bargaining power is – WEAK
Due to competitive pricing which is at par with the unorganised & semiorganised sector and coupled with value addition such as free shampoo wash etc., the buyer has little choice.

Threat of suppliers’ growing bargaining power is – WEAK
Suppliers of consumables are far too many in India and abroad. They will happily formulate any type of formulations as per clients’ specifications & hence due to intense competition within the industry the suppliers’ threat is negligible.

7s Model

Super ordinate goals
1. “To give a hair cut once to everybody on the planet earth”
2. Kill unorganised & semi organised sector.

Structure
Head office will control 9 branch offices and these branch offices will in turn control the network of 1000 franchisees throughout India. The structure will be as of a hybrid organisation. Head office will have a functional structure & branch office will have a matrix structure.

The branch office will be performing following functions.
1. Lead Management and appointment of franchisees
2. Servicing franchisees with consumables
3. Representing the interest of groups other activities in their designated territories
4. Will carry out primary research on consumer & franchisees feedback.

Strategy
Provide services at value for money (VFM) which will be achieved by striping down on the frills & passing the benefits to the customer.

System
Subscription will be bought from an IT (web based enterprise) service provider that provides usage for a company. A common virtual platform will facilitate sharing of image, information & data amongst head office, branch office & franchised unit.

Skills
The promoter has specialized skills in hair styling in addition to entrepreneurial and other related skills, their management consultant has special skills in management, marketing, brand communication & franchising. The team member will have skill set in planning, operations and control of franchise business format.

Style
A paradox of culture would be present within the organization. In technical department creativity & experimentation would be encouraged whereas in operation department pristine management science would be followed. Individual creativity will be encouraged with in a framework of team. Members are expected to take decisions within pre set limits. The job profile will be clearly defined; however the members are expected to work across functions in response to changing needs of the organisation.

Staffing
The head count at the head office & branch offices will be kept low, limiting it to total India strength of 75 personnel, whereas thousands will work under the umbrella of the brand, at pay & administration of individual franchise partner. A 360 degree quarterly appraisal will be implemented. Technical & best management practice training will be conducted half yearly or on need basis.

6 M’s of Capacity

Methods
The GM (Operations) will control the 8 base city offices. Each of the base city will appoint and support franchisee within their specified territory.

Materials
Stocks will be centrally received in Delhi and Godowned. Delhi will receive orders from branches (Base City Offices). Retail and Salon will place order to Delhi via net. Delhi will instruct Branches to reach Consumables / Durables as the case may be to the salon. Delhi will not stock goods for more than a week whereas branches will stock goods on a 45 day cycle. Branches will deliver consumables once every 15 days based on the impress system without being ordered. Salon can also place special order to base city in pre-determined lots.

Manpower
A stock-keeper will be accountable for receiving and handling of goods in Delhi. Upon receiving the goods from suppliers, he will inspect the goods for quantity and damages. Once satisfied, he will make an entry into the computer as per the bar codes and sign the supplier’s invoice.
A copy of the invoice would also go into the record files. The goods will be stored at appropriate places and then it will be dispatched to the base city branches as per the schedule.

Machinery
A broadband network would link the Corporate Office to the Base City Office and network of 1000 franchisees. Through this online platform franchisees will be able to place their orders and send daily reports to the concerned authorities. This technology backbone will also provide a database necessary for smooth functioning of the network.
Messages
The franchisees will share sale information with the branch offices on daily bases.

Money
The startup capital will be raised through term loan. Additional capital will be raised through equity route. This amount will be used to run the business for 6 month. By that time the business would have created sufficient cash reserves for itself to grow on its own.

Other Information:
Competitors
L'Oréal
The L'Oréal Group is the world's largest cosmetics and beauty company. With its registered office in Paris and head office in the Paris suburb of Clichy, Hauts-de-Seine, France, it has developed activities in the field of cosmetics. Concentrating on hair colour, skin care, sun protection, make-up, perfumes and hair care, the company is active in the dermatological and pharmaceutical fields and is the top nanotechnology patent-holder in the United States.
L'Oréal is a listed company, but the founder's daughter Liliane Bettencourt and the Swiss food company Nestlé each control over a quarter of the shares and voting rights.
L’Oréal got its start in the hair-color business, but the company soon branched out into other cleansing and beauty products. L’Oréal currently markets over 500 brands and many thousands of individual products in all sectors of the beauty business: hair color, permanents, hair styling, body and skin care, cleansers, makeup and fragrances. The company's products are found in a wide variety of distribution channels, from hair salons and perfumeries to hyper - and supermarkets, health/beauty outlets, pharmacies and direct mail.

Belleza
7 years ago a unisex salon in collaboration with an international brand L’Oreal was a bold step in the city like Nagpur. The idea was welcomed and accepted open heartedly by the people of the city. It marked the beginning of a chain of fabulously designed, out of the world salons which to be an instant transportation to a different world all together. Bellezza is a trendsetter; it has taught people the meaning of luxury and set a different benchmark for self grooming. Bellezza today stands tall with 34 salons in major cities to its credits in which Mumbai, Nagpur, Pune, Raipur, Bhopal, Ahmedabad, Indore, Gandhinagar, Rajkot & Anand are the cities which have already experienced the Bellezza’s grooming and coming soon 2 new saloons thus making the number to 36. Bellezza today has over One Lakh fifty thousand clients and is gradually making way to the hearts of the people of the country.
The salons have always promoted themselves as a family salon where all the members of the family can come and get services. Bellezza has always believed in categorization and has always designed salons keeping in mind privacy needed for various services like Facials, Massages, Manicure, Pedicure and Shampoo, same being the reason for clients to feel comfortable in getting services done. The salons are all well equipped with not only the best products and electronic gadgets but also the through professionals who deliver the same quality of services for which the salons are known.