Beauty Hut Salon 2003

INTRODUCTION

Beauty Hut is one of the most glamorous, well organized, well reputed and unique Beauty parlor
in Rawalpindi. It offers a wide variety of high quality services and products aimed at providing
the very best treatments to its valued clients. The competitive edge of Beauty Hut is its theme
colors i.e. pink, purple & peach and enameled wood work. Beauty Hut has three branches in
Rawalpindi with distinguished quality and services. Moreover it is thinking on establishing a
new branch in Islamabad in order to capture the twin city as whole.

Now days, Beauty Hut is facing fierce competition in the market due to the growing trend of
glamour. Customer’s feedback and uncountable transactional experiences helped Beauty Hut to
analyze the endeavors and their respective flaws. And fortunately the enlightened management
of Beauty Hut realized the need of the modern era and instead of withdrawing from the facts,
courageously took the bold step and initiated Kaizen approach i.e. continuous improvement.

BEAUTY INDUSTRY OF RAWALPINDI

The business of beauty shops has flourished a lot in past fifteen years. Now there is a beauty
parlor at every square. Almost 88% of the female population of Rawalpindi city goes to the
beauty parlors. A study on market indicated that a large portion of women population is going to
the beauty parlors at regular basis. 90% college student & 70% housewives (the Nation-
Tuesday, June 26, 2009)

This large target market has resulted in the huge success of the beautician’s businesses. There is
a fierce competition in market for attracting the customers. The business of these parlors is
hugely dependent of the satisfaction of consumers. If they satisfy the customer they will be able
to boost their sales. But the management, training & coordination of staff and availability of
services are the major factors that affect the consumer satisfaction.

There are approximately 26 well recognized parlors in Rawalpindi and all of them are providing
different services in which they are specialized. Customers have to visit different parlors to get

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their quality work. For Example, Meha beauty parlor, Sobia Beauty salon and Her Beauty parlor
are specialized in different areas of beauty treatment.

Sobia Beauty • Bridal make over

Salon • Skin Facials

Her Beauty • Skin facials

parlor • Gym

Meha beauty • Hair cutting and styling

parlor • Skin facials

HISTORY

Beauty Hut was established on 8th February, 2003 by Mrs. Iffat Ejaaz. Mrs. Iffat was a house
wife having four daughters. Before marriage, Mrs. Iffat was fond of learning beauty courses and
attended beauty contests. She used to practice on her family, relatives, neighbors and friends
because she was not permitted by her father to open a parlor. Despite these restrictions, she kept
on practicing but after getting married she has to put down her all activities due to the
responsibilities of het marital life.

When her children grew up and once again she could find a lot of spare time, she planned to
open a parlor with the consent of her husband. She renovated her home’s upper portion for
converting it into parlor. In the beginning, she raised funds from her savings and her husband’s
retirement money to build a modern four unit beauty salon which would provide all beauty
services under one roof. She used laminated wood work with theme color of baby pink, purple
and peach. There is not a single beauty parlor with such a large and unique setup in the
prevailing market of beauty salons.

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Mrs. Iffat is social and well mannered woman that’s why she has a large social circle. Due to her
personal relations, soon she would be able to establish her good will and credibility in Chaklala
scheme 3. When she realized that this area has been captured, in 2007 she opened second branch
of her beauty salon with same format in Khayaban e Tanveer. These both branches were located
in residential areas where only woman of neighborhood of these areas used to visit, that’s why its
fame is restricted to chaklala scheme 3 and it’s hereabouts.

In 2008, then, she decided to open third branch in commercial market, Satellite town, where
ladies come for shopping from different areas of Rawalpindi and Islamabad as well. This
commercial branch is doing record business among all branches because this branch is covering
commercial and residential areas as well. Beauty Hut is constantly making successes in the field
of Beauty salon, spa and digital studio and building new branches one after one. By considering
apparent success, she is working on fourth branch of Beauty Hut in Islamabad.

SERVICES PROVIDED BY FOUR BASIC UNITS

 Bridal & Party Makeup Packages

 Traditional Bridal
 The Indian Bridal Look
 Shimmery Model Makeup (Bridal/Party)
 Camouflage Makeup (Bridal/Party)
 Natural Look (Bridal/Party)

 Beautician Academy
 Self grooming Courses
 Professional Courses
 The Dead Professional drill

 Fitness Centre
 Gym
 Indoor Aerobics
 Outdoor Aerobic

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 Digital Photography Packages

 Bridal Photo Shoot
 Model Portfolio
 Function Coverage
 Still Photography
 Digital Movie Making

SEGMENTATION OF CLIENTS

 Princess
 Hair Styling
 Manicures
 Pedicures
 Hair extensions
 Teen Dream
 Anti acne facial
 Pearl range for pimple scars
 Anti oxidant whitening facial
 Frizz control hair treatment
 Stressed Woman
 Sun exposure treatment
 Cool eye treatment
 Anti dandruff Hair
 Spa body-massage
 Maturing House Wife
 Anti aging facial
 Skin rebirth facial
 Marble body peelings
 Woman
 Oily skin balancing facial
 Dry skin balancing facial

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ADVERTISEMENT

 In the beginning, Beauty Hut was advertised through word of mouth and viral marketing
because Mrs. Iffat has very social, generous and respectful nature. Customers want to
come here and advise others to visit it once due to Mrs. Iffats’ courtesy and quality work.
 Spreading brochures house to house
 Hoardings and Banners
 Glamorous theme and laminated wood work
 Visual ad on TV cable to show the whole setup

RECENT EVENTS AND UNDERLYING ISSUES

Mrs. Iffat was only considering the success of beauty salon ignoring customers’ satisfaction. To
handle one branch was very easy task for Mrs. Iffat. When her all attentions were for a single
branch, she was very customer oriented i.e. personally value every customer and give them
prestige. But after launching two more branches, she lost her mind from customer perspective.

In 2009, her daughter, Miss Anum Ejaaz who is doing BBA (hons.) from Iqra University, is
assigned a project to write a research paper on Quality management of any business. Then she
decided to do her project on her mothers’ business. She started to make surveys in order to check
customer satisfaction and to upgrade the quality of services. After analyzing those surveys, she
came to know that there are many problems prevailing in business which are needed to be sort
out immediately. She also determined that overall profit of all three branches is satisfactory but if
profit of second and third branch would be compared with profit of first branch (when it was
single and having no other branch), it is found that profit of every branch is decreasing relatively
and people coming here are becoming more dissatisfied day by day. Because these issues are
affecting the quality and image of Beauty Hut salon. The main problems and issues which are
identified by her are;

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1. Employee Loyalty
Mostly Employees work in Beauty Hut for part time i.e. morning and evening shifts,
which create fuss in working place. Customers usually want their work to be done from
same worker. But in case of shifts system if customer who used to visit in morning come
in evening, she will feel uncomfortable due to entirely different staff. Moreover, sense of
loyalty is used to low in part time workers than that of full time worker. That’s why
quality will automatically decrease by lowering the sense of loyalty in workers because it
has been proved that quality of work is directly proportional to loyalty of workers.

2. Lack of management and coordination in all branches

Apparently, Beauty Hut salon is making successes in the field of beauty salons &spa and
increasing the number of branches in city but Mrs. Iffat is becoming incapable to manage
the quality of all these branches. The best beauty products are not only the standard of
good parlor but the best talent is also a big too in success. All three branches have not
unity among themselves and workers of all branches has made grouping and leg pulling
is common practice work place. How can it possible to maintain quality and customer
satisfaction in such situation?

3. Fierce Competition
There is fierce competition among beauty salons because of rapid adaptation of west and
Indian culture by society. Everyone is busy in assuring that one is providing Indian
fashion and style more appropriately. In such competitive environment, all branches of
Beauty Hut should act as single concrete unit & team and compete with other salons. All
branches of Beauty Hut are competing with each other due to the lack of unity and team
coordination, due to which customers are getting some demotivating behaviors from
workers. Workers of every branch do work for themselves rather to work for salons’
good repute.
Miss Anum pointed out all above problems and then discussed them with her mother.
Now Miss Anum and Mrs. Iffat Ejaaz are working on different techniques in order to sort

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out all the issues facing by Beauty Hut. What Measures should b taken in order to satisfy
customers? And which type of instructions should be floated to create sense of team and
commitment among all workers?

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 Beauty Hut Salon 2003

Figure 1: GYM

Figure 2: Make up Products

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 Beauty Hut Salon 2003

Figure 3: Hair cutting

Figure 4: Spa Facial

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 Beauty Hut Salon 2003

TEACHING NOTE

Synopsis:

Beauty Hut is one of the most glamorous, well organized, well reputed and unique Beauty parlor
in Rawalpindi. The competitive edge of Beauty Hut is its theme colors i.e. pink, purple & peach
and enameled wood work. Beauty Hut has three branches in Rawalpindi with distinguished
quality and services. Now days, Beauty Hut is facing fierce competition in the market due to the
growing trend of glamour. Customer’s feedback and uncountable transactional experiences
helped Beauty Hut to analyze the endeavors and their respective flaws. Now there is a beauty
parlor at every square. Almost 88% of the female population of Rawalpindi city goes to the
beauty parlors. There is a fierce competition in market for attracting the customers. Customers
have to visit different parlors to get their quality work. For Example, Meha beauty parlor, Sobia
Beauty salon and Her Beauty parlor are specialized in different areas of beauty treatment.
Beauty Hut was established on 8th February, 2003 by Mrs. Iffat Ejaaz. Before marriage, Mrs.
Iffat was fond of learning beauty courses and attended beauty contests. There is not a single
beauty parlor with such a large and unique setup in the prevailing market of beauty salons. Then
she opened second branch in 2007 in khayaban e Tanveer. In 2008, she converted her thought
into realty by launching third commercial branch in Commercial market, Satellite Town.

This commercial branch is doing record business among all branches because this branch is
covering commercial and residential areas as well. Beauty Hut is constantly making successes in
the field of Beauty salon, spa and digital studio and building new branches one after one. By
considering apparent success, she is working on fourth branch of Beauty Hut in Islamabad.

Mrs. Iffat was only considering the success of beauty salon ignoring customers’ satisfaction. To
handle one branch was very easy task for Mrs. Iffat. Mostly Employees work in Beauty Hut for
part time i.e. morning and evening shifts, which create fuss in working place. Customers usually
want their work to be done from same worker. Apparently, Beauty Hut salon is making
successes in the field of beauty salons &spa and increasing the number of branches in city but

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 Beauty Hut Salon 2003
Mrs. Iffat is becoming incapable to manage the quality of all these branches. All three branches
have not unity among themselves and workers of all branches has made grouping and leg pulling
is common practice work place. All branches of Beauty Hut are competing with each other due
to the lack of unity and team coordination, due to which customers are getting some
demotivating behaviors from workers. Workers of every branch do work for themselves rather to
work for salons’ good repute.

Q 1: What measures Mrs. Iffat must take in order to make their customers satisfied?

By focusing solely on the quality of service provided while ignoring the quality of products used
is perhaps not a right way to judge. It would be highly beneficial if the trained staff is employed.
And they use the maximum skill to satisfy a client that will of course increase the customer
satisfaction level. If the staff will help the management by behaving more courtesy that will also
make the customers much more relaxed which in turn increases the satisfaction of the service
received. Now the sponsor knows that the customers want decrease of price or increased area. It
will give a better perspective of understanding there need & increasing the contentment of the
customers. They should try to;
 They should hire some new well trained staff or send their own staff to some training
programs.
 To improve the staff behavior the need to keep a close supervision of staff they can also
offer some kind of bonus or perk to the most wanted staff member. That will increase the
general morale.
 As most of the clients are young they should try to keep the environment lively & chic.

Q 2: What strategies must be adapted by Mrs. Iffat to increase the credibility of her

parlor?

 She must take weekly sessions in order to ensure the quality.

 She must introduce new services to customers at discounted rates.
 She must not allow staff members to ask personal questions from customers.
 She must discourage grouping and encourage team work.

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 On special occasions, she must arrange different stalls where workers get their own
wages that will also act as promotion tool.
 Indulge worker i.e. create commitment by giving them share in profit and handsome
incentives for overtime work.

Q 3: What is SWOT analysis of Beauty Hut Salon?

STRENGTH

 Interior of wood work and color theme and large four unit setup
 Advertisement
 Good quality cosmetics
 Good will and credibility of Owner
 Location

WEAKNESS

 Lack of unity and coordination

 Mismanagement in all branches
 Poor recruitment

OPPORTUNITIES

 Growing cosmetic market in Pakistan

 Growing class of woman who are aware of and have desire of glamorous lifestyle
 Growing trend among women

THREAT

 Changing consumer trend

 There is a threat of other reputed parlor for changing their parlor into our setup i.e.
interior of laminated wood work with theme color and large setup divided into four units.

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