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.