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 SCHOOL OF ARCHITECTURE, BUILDING AND

DESIGN

FOUNDATION IN NATURAL AND BUILT ENVIRONMENT

FEBRUARY 2014 / SEMESTER 2

NAME OF STUDENTS: DARREN LOONG CHI YOONG (0318029)   TAN ZHAO MING (0318724)   HOOI ZHAO HONG (0318564)   TEH QING DA (0318590)   MODULE: ENGLISH 2   LECTURER: MS. CASSANDRA WIJESURIA   ASSIGNMENT TITLE: A COMPARITIVE ANALYSIS OF 2 BUSINESSES OF SIMILAR INDUSTRY IN DIFFERENT GEOGRAPHICAL LOCATIONS (HAIR SALON)   WORD COUNT: 3892 words SUBMISSION DATE: 1ST DECEMBER 2014  

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CONTENTS

Key Summary ................................................................................ 3   Brief Bios ..................................................................................... 4 - 5   Comparative Analysis of the Business Competitive Traits ........ 6 - 10   Recommendation ...................................................................... 11 - 14   Appendices ............................................................................... 15 - 18   References ................................................................................. 19  

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KEY SUMMARY In this report, we have researched about two hair salon business industry in two different

locations, one in Klang Valley and another in Seremban. In a group of four, we interviewed

the owners of the two hair salon. The one located in Seremban is called 'Royce Hair Salon',

tucked in the middle of the shoplots along Oakland Commercial Centre. The hair salon in

Klang Valley, which is named 'ReStyle' is located in Syopz Mall, the commercial building of

Taylor's University Lakeside Campus. We have analyzed and compared both of the business

in terms of the bios of the businesses, comparative analysis of the business competitive traits

and the recommendations for the businesses.  

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BRIEF BIO OF THE BUSINESSES 1. ROYCE HAIR SALON, SEREMBAN. Royce Hair Salon is located specifically in Jalan Haruan of the Oakland Commercial Centre

in the new town of Seremban, which is called Seremban 2. Royce Hair Salon is a sole trader

business, which means they only have one owner and only one branch. Just like any other

hair salons, Royce Hair Salon provides the services that a normal hair salon would offer,

such as haircut, hairwash, hair treatment, hair coloring and hair highlighting. Besides just

services, they also sell hair care products, namely hair wax, hair gel, hairsprays, serums and

much more. As Royce Hair Salon is located in a quiet row of shoplots of the Oakland

Commercial Centre, there are not many customers that come in daily to get their hair done.

According to the owner, there are only 14 customers that come in daily on average, with a

minimum of only 8 customers that come in. Most of the customers that come into the salon

are regular customers. Royce Hair Salon opens daily from 10am to 7pm. An average haircut

for both male and female would cost RM 20 but there would be additional charges apply for

hair treatment and hair length, especially for female customers.  

The hair salon was founded in 2012 by Royce, who is an Indian orphan rose by a Chinese

family. Although he is an Indian, Royce doesn't speak English. He mainly speaks Mandarin

and sometimes Cantonese. Royce's dream is to become a professional hairstylist and to start

up a succesful hair salon, which was his motive in starting up this business. Up to today,

there are only two employees working in the hair salon, which includes Royce. Royce is the

only person that attends to customers and does the customers' hair, whereas the other

employee only does shampooing and blowdrying the hair. Royce Hair Salon has no recent

developments so far as it is a fairly new hair salon and the owner has no intentions in

bringing the business in fame, as his only intention is to provide hairstyling services to the

residents of Seremban.  

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2. RESTYLE HAIR SALON, KLANG VALLEY

ReStyle Hair Salon is located in Syopz Mall, which is the commercial building of Taylor's

University Lakeside Campus. ReStyle Hair Salon has three other branches, which are located

in Sunway Pyramid, 1 Mont'Kiara and Tesco Mutiara Damansara respectively. ReStyle Hair

Salon belongs to the A Cut Above group, one of Malaysia's award-winning hair salons. The

founder of the A Cut Above group is Winnie Loo. Each A Cut Above group hair salons,

which include ReStyle Hair Salon has its own manager, who is also a hairstylist of the hair

salon. ReStyle Hair Salon has only two employees, which includes the manager. Both of the

employees are well trained from the A Cut Above Academy and can provide the service to

the customers. The services offered by ReStyle Hair Salon is just like any other hair salon,

which are dry cut, wash & cut, wash & blowdry, hair treatment, hair coloring and hair

perming. ReStyle Hair Salon also offers different packages, which are priced lower than

buying the service separately.  

ReStyle Hair Salon opened in 2009, the year when Taylor's University Lakeside Campus

opened its doors for students to further their studies. The founder, Winnie Loo wanted to

target students to buy the hair salon services and also for the convenience of the residents

who stay in the hostel, which is why she decided to open another ReStyle Hair Salon branch

in Syopz Mall. This branch is the most recent ReStyle Hair Salon branch, the first located in

1 Mont'Kiara. Since then, ReStyle Hair Salon has offered most of its services to students of

Taylor's University and residents who stays in uResidence and ruemz. On average, there are

15 customers that walk in daily to do their hair, majority of the customers are students.  

Since ReStyle Hair Salon in Syopz Mall is considered as a new branch, they have no recent

developments to date. Even the other branches have no recent developments but the parent

company; A Cut Above has won various awards since its establishment in 1979.

YouTube Link For This Section:

https://www.youtube.com/watch?v=kd9q36SmdEU&feature=youtu.be  

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COMPARITIVE ANALYSIS OF THE BUSINESS COMPETITIVE TRAITS

Item Royce Hair Salon ReStyle Hair Salon

Number of Competitors There are total of 10 competitors according to the owner. The three main competitors are Impress Hair Salon, Kenji Hair Salon and Domnik Hair Salon.

The three main competitors of ReStyle Hair Salon are Spazio Hair Studio, Hair Fonts and APT Hair Salon.

Brief Bio of Competitors

1. Impress Hair Salon - Impress Hair Salon is located in Kemayan Square, which is radius of shoplots similar to where Royce Hair Salon is located. It was established much earlier than Royce Hair Salon. For this reason, there are more customers that visit Impress Hair Salon compared to Royce Hair Salon.

1. Spazio Hair Salon - Spazio Hair Salon is located in a prominent spot within the SS15 shop lots. The hair salon have been in business for a few years, garnering lots of loyal customers that are very much satisfied with what they have to offer. Since it is located in a very busy area, so there will have alot of walk in customers.

2. Kenji Hair Salon - Located in a busy commercial centre called Biz Avenue in Seremban 2, Kenji Hair Salon is quite a reputable hair salon in Seremban because of its location. They also offer promotion of their services, which can be bought via Groupon.

2. Hair Fonts - Hair Fonts is one of the few hair salons in Sunway Pyramid, where another branch of ReStyle is located. Groupon has many deals with Hair Fonts and customers can purchase the offer at a cheaper price for the same service in Hair Fonts.

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3. Domnik Hair Salon - Domnik Hair Salon is located inside of Terminal One Shopping Centre. It is one of the few hair salons in the mall. It offers quick haircut for shoppers and also for the convenience of them.

3. APT Hair Salon - APT, which is the abbrevation of 'A Profesional Team', is a hair salon that consists of well-trained hairstylist. It is also located in Sunway Pyramid, where there is another branch of ReStyle Hair Salon. They don't just provide hairstyling services but they also provide professional hairstyling courses.

Strategies to compete with

competitors

1. Pricing

- Royce Hair Salon has a very cheap pricing. As mentioned by the owner, it only costs RM 20 for a standard haircut with hairwash for male and female.

- ReStyle Hair Salon has a relatively affordable pricing. They also have packages for customers to choose and buy their service cheaper than buying the service separately.

2. Service & Product Variety

- Royce Hair Salon offers a standard service that every salon has. - They also have various hair care products such as shampoo, hair wax, hair gel, conditioners that are displayed for sale.

- ReStyle Hair Salon also offers a professional standard hair salon service. - They have packages that are at a cheaper price compared to buying a service separately. - They have also a special treatment, which is called “Brazilian Keratin Treatment”, that the competitors do not provide. - ReStyle Hair Salon do not just provide hair care service, but they also provide beauty services, such as manicure and pedicure, as well as make-up service.

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3. Quality of Service

- Royce Hair Salon has excellent service quality. The hairstylist, Royce is a very friendly person towards all his customers. While providing the hairstyling service, he would communicate with the customers and not just keep quiet while doing their hair. Royce is also an experienced and professional hairstylist.

- ReStyle Hair Salon has very well trained hairstylist that are graduates from the A Cut Above Academy. For this reason, the hairstylists there can provide a professional haircut and hair treatment for both male and female. Besides that, the hairstylists there are friendly and they frequently provide advices for customers on hair maintenance.

4. Location

- Royce Hair Salon is the only hair salon located in Oakland Commercial Centre, with its competitors located outside of the commercial centre but in a radius of 5-10km from the salon. It is easy for customers to find the hair salon. Moreover, Oakland Commercial Centre is located nearby a residential area, which is why most of Royce's customers who are also his regular customers come from that area.

- ReStyle Hair Salon is the only hair salon located inside of Syopz Mall. For this reason, there is no direct competition. Their target market is the students of Taylor's University and the residents of the hostel, which makes their location very convenient for students and residents.

5. Brand Name Selection

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Royce Hair Salon has a distinctive name because it is named after the owner. Loyal customers can relate quickly in the first glance on the signboard that it is their regular hair salon.

ReStyle Hair Salon is a well-established hair salon despite having 4 branches in total. The word "ReStyle" automatically forms an impression towards customers that it is a hair salon. Regular customers would also know that the parent company of ReStyle Hair Salon is an award-winning hair salon, which is A Cut Above.

Obstacles faced by new businesses

One of the obstacles faced by new businesses that wish to enter the hair salon industry is starting capital. Owners that are planning to start a hair salon business have to contribute a large sum of money in order to purchase the neccessities to start up the business, such as salon chairs, mirrors, shampoo sink and accessories. Besides that, the renovation cost for the hair salon is also very high. According to Royce, the owner of Royce Hair Salon, he mentioned that he needed to put in approximately RM 50000 to start up this business. In addition, there are so many other hair salons around Seremban and Klang Valley respectively, that is why new owners of the business will face a lot of competition when they start their business. Many people are also regular customers for their current hair salon that is why it is very hard to obtain loyal customers when they first start their business. These problems can be overcomed with patience and promotion of their hair salon. The owner and the hairstylists must put on an excellent first impression towards all the customers that walk into the hair salon in order to gain the loyalty of the customers.

Nature of Markets Both hair salons are in a perfectly competitive market. This is because both of the hair salons provide standardized services, which are mainly haircut and hair treatment. The hair salons also have no pricing power, which means that their pricing for their services is more or less the same. If one hair salon raises their price or if they price their service too high, customers will get their hair treatment from the hair salon that has a cheaper price for the same standard of service provided.

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COMPETITIVE ANALYSIS SUMMARY TABLE

Competitive Traits   Royce Hair Salon (Seremban-Based)  

ReStyle Hair Salon (Klang Valley-Based)

1. Number of Competitors (in ranges e.g. 2 to 10, 10 to 50, 50 to 150, etc.)  

10, according to the owner. 8, according to research.

2. Barrier to Entry   Weak. Since Royce Hair Salon is the only hair salon located in Oakland Commercial Centre, Seremban, many other hair salons can start up the same business freely.

Strong. ReStyle Hair Salon is dominant in Syopz Mall and the main reason that the hair salon is started up in there is to cater convenience of the students and the residents of the hostel.

3. Differentiated or Standardized Products  

Standardized. Standardized.

4. Pricing Power   Price taker. The business is in a perfectly competition

market.

Price taker. The business is in a perfectly competition

market.

5. Other Characteristics   Mutual dependence. - Provides make-up services. - Provides manicure and

pedicure services. - Mutual dependence

6. Verdict   Perfect competition. Perfect competition.

CONCLUSION Based on our analysis of both businesses, the business that is more commercially successful is ReStyle Hair Salon. This is because ReStyle Hair Salon has been established earlier than Royce Hair Salon. Thus, ReStyle Hair Salon has a higher reputation. Besides that, their parent company is an award-winning hairstyling company, which is A Cut Above. Moreover, they also provide more than just hairstyling services, which are make-up and manicure & pedicure services. The location of ReStyle Hair Salon is more strategic than Royce Hair Salon as it is located in the commercial building of a university. The students there, who some eventually become their customers are the target market of their business. Therefore, ReStyle Hair Salon is definitely more successful that Royce Hair Salon. YouTube Link For This Section: https://www.youtube.com/watch?v=vtNmzONn2PY&feature=youtu.be

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RECOMMENDATION Based on the two business we have selected which was ROYCE HAIR SALON that are

located at Seremban and also RESTYLE HAIR SALON which is located in Klang Valley,

we have made a comparison between both of them, we can conclude that RESTYLE HAIR

SALON offers more services and also has a much more better reputation compared to

ROYCE HAIR SALON that are located in Seremban. Both business are in a perfectly

competitive market which also allows them to have the ability to improve and also expands

their business in different ways. Therefore, varieties of recommendation are shown below to

improve their business respectively.

ROYCE HAIR SALON, SEREMBAN 1. Spending money on Your Salon is highly recommended, be in the most decent

Location In Order To Charge High Fees from customers.

At the point when a customer encounters excellent services that is above standard,

they will then go out and rave about you to all their friends and buddies. New business as an

issue of these referrals comes effortlessly & smoothly. It is about situating yourself as the

transcendent master in your class. When you have this position, it is currently conceivable to

charge an expense more suitable to your expertise and capacity. How frequently have you

put all your vitality into making an amazing hairdo for a customer, just to feel discharge

subsequently on the grounds that the charge rendered is no place close to the effort you put

in, or they simply didn't admire the consideration you have put into this most recent

creation? It doesn't need to be that way. Therefore, a good location is very important as

ROYCE HAIR SALON is located in a quiet area of shop lots in seremban. Not many people

would notice about this salon except for regular customers. Customers normally would not

choose to go to quiet places as they often stereotype it as a dangerous and unsafe area. I

would suggest the salon to be located in a shopping mall or even along the main road by a

developed area so that customers would feel comfortable and safe to walk in.

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2. Add-On Services

As ROYCE HAIR SALON offers a very limited services, i would recommend that

salon to add more services so that customers can treat that particular salon as a one-stop

beauty centre. Expand your incomes consistently by offering “add-ons" benefits for

customers who are as of now accepting treatment. Survey your customers' lifestyle habits,

preferences, interests and what sort of extra services that they are keen with. Your extra

services may be a hot oil treatment or nail trim. This can be added to your greetings upon

your customer walking in. "would you want to try our hot oil treatment? We have a limited

time special today." For male customers, it might be "Would you like our express nose-hair

trimming alongside with your improved hairdo today?" This is an ease, exceptional yield

method. You can assign the “add-on" services at numerous focuses during the customer

servicing process. It can be offered upon by making bookings and setting up appointments,

the update call or upon entry. You can test and measure at which purpose of offer you get the

most elevated reaction rate. An approach to approach a customer with an add-on services

may begin with looking for permission by inquiring as to whether "I recommend an item or

services for you today” There will be a chance where customers may reject or accepts that

offer. If the customers denied, don't think about it literally! You have not been hostile or hard

offer. You are satisfying your obligation to offer routes for your customer to look their best.

The customer presumably needs some new thoughts and item recommendations from a

professional. In the event that you permit yourself to concentrate on the individuals who say

yes and not be put off or feel dismisses by the individuals who say no, you will begin to see

your incomes increment altogether about over time.

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RESTYLE HAIR SALON, KLANG VALLEY 1. Rebooking System Since RESTYLE HAIR SALON offers numerous services that are not just hairdo

services that are done professionally that requires the usage of products when a treatment in

on going. The treatment and products that salon offer are services that require your customer

to utilize you once more, and once more. On the off chance that your product is of top notch

and you convey your services with good care and also customer fulfillment, there would be

definitely a reason for your customer to come back to you inconclusively and until the end

of time! To influence this, rebooking system are required to upsell different services and to

expand the recurrence of your customers' yearly number of visits. the lifetime estimation of

your customers can be estimated focused around what their yearly spending is with the

business. Knowing this regular customer information will empower you to be more key in

your rebooking and upselling exercises. On the off chance that you realize that Client A

visits you 4 times each year for highlights and 8 times each year for an improved hairdo, you

can expand the hair styling recurrence by proposing a molding treatment or book them ahead

of time for the following highlight treatment after a hair styling by offering a Gift, special

promotional items or just getting the bookings book out to help them make their next

booking. Before paying bills at the counter, help them to remember their upcoming treatment

appointment . "It's been six weeks since your last coloring treatment, might you want to book

inside the following month to secure a spot?" or "We are putting forth a complimentary nail

trim with our hair stylings amid the month of February. Might you want to make an

appointment now?" By booking clients in advance, you will be much more strategically

positioned when planning your calendar, maximising operating hours and your stylists’  paid

hours.

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2. FAME up VIA social network As “FAME”  is a very important key to keep the business running. A business without

anyone knowing would actually reflects how poor the marketing strategy of the business is.

In our modern era, “internet”  plays a very big role in our daily lives. therefore, marketing

and also advertising can be share to everyone via social networks such as twitter, opening

and facebook account for the salon and also by sharing on a blog. Nothing works better in

internet advertising over turning into an asset of focused on informations. As an hairstylish,

it is presumably effortlessly consider products you can survey, or intense braids that you can

compose lessons on. They don't have to be long - 500 words will do fine and well enough.

These articles can help your perceivability in web crawlers such as Google and Yahoo and

provide for you a ton more to impart and discuss on online networking. other than that, the

salon should also post nice pictures of their work done often. Choose your best and most

diverse photos and make sure to post them on your website. Even more importantly, post

them on your Twitter and Facebook Wall. People may not visit your website frequently, but

they monitor their Twitter and Facebook feeds on a daily and hourly basis. By taking nice

pictures, make sure the pictures are professionally taken. Partnership with local

photographers might benefits a lot in terms of physical appearance of your advertising

through the social media. Photographers are always in need of makeup artists and stylists for

their shoots. In addition to often being paid for their on-site services, stylists get credit along

with the photographer for any published photographs. Hairstylist should also always take

client’s photos consistently. for example, before and after photos of their make over.Keep a

camera conveniently and take photographs of your cuts and styles frequently. Since a great

many people have a support of self-assurance after a hair styling or style, numerous will be

glad enough to posture for a couple of shots.

 

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   APPENDICES Appendix 1: Interview Questions 1. When did you started up this hair salon? 2. Who are the founder(s) of this hair salon? 3. What was your motive in starting up this hair salon? 4. How many customers walk in daily for a hairstyling service? 5. Except selling your hairstyling services, do you provide any other services or sell any hair

care products?

6. What is the age range of your customers? 7. Where do your customers usually come from? 8. How many branches of his hair salon do you have? 9. How many competitors do you have around this area? 10. What are your strategies in competing against your competitors? 11. Being the only hairstylist here with another employee, is it hard to manage the hair salon

with just two of you?

12. Have you ever thought of hiring any extra employees to work for you? 13. Do you require any other essential skills to start up a hair salon business besides

hairstyling skills? If yes, what are they?

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Appendix 2: Interview Notes

Date: 18th November 2014

Time: 12:30pm

Location: Royce Hair Salon, Seremban

Interviewers: Tan Zhao Ming and Hooi Zhao Hong

Interviewee: Royce, owner of Royce Hair Salon.

1. When did you started up this hair salon? This hair salon was established in 2012. 2. Who are the founder(s) of this hair salon? I am the only founder of this hair salon. 3. What was your motive in starting his hair salon? It has always been my dream to become a professional hairstylist and start my own hair salon one day. 4. How many customers walk in daily for a hairstyling service? About 8 to 20 customers walk in daily. 5. Except selling your hairstyling services, do you provide any other services or sell any hair care products? Yes, we do sell hair care products such as hair shampoos and conditioners. 6. What is the age range of your customers? Between age 20 to 40. 7. How many branches of his hair salon do you have? So far this is the only branch we have. 8. Where do your customers usually come from? My customers come from Seremban and Kuala Lumpur, but majority of them are from Seremban. 9. How many competitors do you have around this area?

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There are around ten more hair salons around this area. 10. What are your strategies in competing against your competitors? I believe in my individual hairstyling skill and I believe that if I provide an excellent service to every customer, they would come back next time for another hairstyling service from me. 11. Being the only hairstylist here with another employee, is it hard to manage the hair salon with just two of you? It is not that hard because I only accept appointment from customers to provide my service as I can arrange my schedule. 12. Have you ever thought of hiring any extra employees to work for you? Yes I am trying to hire more employees but it is very difficult to look for an experienced and professional hairstylist around this area. 13. Do you require any other essential skills to start up a hair salon business besides hairstyling skills? If yes, what are they? Yes of course. Besides just hairstyling skills, you must also know how to promote your hair salon via social networking websites to get to know more people and to attract more customers. Appendix 3: Photos

Exterior look of Royce Hair Salon in Oakland Commercial Centre, Seremban.

 

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 Interior look of Royce Hair Salon.                 Facebook page of Royce Hair Salon. Link here: https://www.facebook.com/RoyceHairSalon

ReStyle Hair Salon located in Syopz Mall, Klang Valley.

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Winnie Loo, founder of A Cut Above Group and ReStyle Hair Salon. REFERENCES 1. Personal interview with Mr. Royce, owner of Royce Hair Salon in Seremban. Interviewed

on 18th November 2014.

2. Personal interview with Shermei, manager of ReStyle Hair Salon @ Syopz Mall, Klang

Valley. Interviewed on 26th November 2014.

3. A Cut Above Group official website, http://acutabove.com.my/salon_restyle.html,

accessed on 28th November 2014.

4. Weng Wai (July 2014) Review: Spazio Hair Studio, SS15 Subang Jaya. Retrieved from

MYMenLifestyle: http://www.mymenlifestyle.com/fashion/review-spazio-hair-studio-ss15/.

Accessed on 29th November 2014.

5. Boo, Angeline (July 2013) English 2 Final Assignment: Business Analysis. Retrieved from

Angeline Boo E-Portfolio: http://angelineboo.wix.com/fnbe-july-2013 - !about1/c100b.

Accessed on 29th November 2014.