“pure experience” Business Plan Presentation Elysse de la Paz, Courtney Eng, Samantha Ma, and Sherry Wang.

“pure experience” Business Plan Presentation

Elysse de la Paz, Courtney Eng, Samantha Ma, and Sherry Wang

“pure experience” Business Plan Presentation 2

“pure experience”Experience

Kitsilano

Women aged 16 to 40

Lifestyle

experience


The “pure” return?

$80K20% Equity

Expected Return32%

Return of initial

investment 5 years


Positioning Map

PRICE

QUALITY

Absolute Spa

ProfessioNAIL

Kitsilano Nails

PURE NAIL BAR

PURE NAIL BAR

Independents


The Stale Nail Salon Experience


“pure difference”

Hip and Chic

Sex and the City

Gossip and

Giggle


Leadership

Courtney Eng, Manager• Manager of Absolute Spa (5 years)• Assistant Manager of Eveline Charles Spa & Salon

(4 years)• 10 years of esthetics & cosmetic services• Bachelors degree in Spa and Resort Management• CA designation – UFE gold medalist

2 Assistant Managers

3 Estheticians

7 Nail

Technicians

3 Receptionist

s


Financial Summary

2011 2012 2013 2014 2015 $(200,000)

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

RevenuesExpensesNet Income


Financial Results

Returns

• Real Required Return – 22.5%

• Expected Return – 32%

Pay Back

• Under 5 years

General Performanc

e• Average

Return on Equity after 5 years – 19%


“pure experience”Pure Place

Pure People

Pure Pricing


Questions?


Slide IndexOpportunity “pure experience” Financial Plan

“pure experience” The Stale Nail Salon Experience

Financial Summary

The “pure” return? “pure difference” Financial Results

Positioning Map Leadership “pure experience”

Marketing & HR Operations HR and Other

Key Success Factors Unique Environment Organizational Structure

SWOT Artwork Personal Element

PESTE Analysis Store Layout Risk and Mitigation

Positioning Map Detail Store Layout Description

Marketing and Branding

Location


Key Success Factors

Fun, trendy, and social environment

Friendly & knowledgeable staff to deliver the “Pure” customer experience.

Quality services at reasonable prices.


SWOTInternal Strengths Internal Weaknesses Reasonable prices to attract customers. Unique approach and competitive advantage as Pure Nail Bar offers a different

approach to nail care that is affordable but enjoyable. This differs from other beauty/nail salons which often focus on function versus comfort.

Unique ambiance that combines unique art & furniture giving Pure Nail Bar a different feel that appeals to a wide demographic of women from 16-40 years old.

A variety of services including usual manicure & pedicure services, and services for children under 12 and massages for those looking for a spa-like offering.

Brand power from wide press coverage since the first location was opened in fashion blogs, fashion magazines, etc.

Up to date promotion. ie. Twitter & Facebook. Product offerings include current fashion trends and are communicated to customers

via Facebook, Twitter, and on-site. Clean and sanitary environment in providing its services. The arrangement of the stores and the seating style is conducive for socializing,

which is a key factor that is commonly noted by customers. Shops allow customers to walk-in, which is convenient for customers as they do not

have to book far in advance to receive services.

High costs to start up a new location. Capital costs would need to be incurred for a wide variety of capital items including equipment, furniture, decor, etc. All of these items would also be acquired with the unique ambiance of the company in mind – ie. a modern and unique feel.

Challenges in finding qualified staff as there is not a large supply of nail technicians and receptionists. These staff members must have not only the technical skill required, but also a personal skill which allows them to be relatable to customers.

Pure Nail Bar has a relatively simple business structure, and can thus be easily imitated by competitors.

As the focus is on providing a unique experience, the trade-off is that the speed of the service being provided may decrease.

External Opportunities External Threats Current trend towards “hipper” ways of getting mundane tasks accomplished. More

consumers are seeking to look good, at a reasonable price. Small, trendy shopping districts and neighbourhoods are excellent locations for Pure

Nail Bar store-fronts. People consistently look for smaller, and more intimate experiences.

Large demographic of women in their early twenties to late thirties who frequent these establishments in order to relax, pamper themselves, and to meet their aesthetic needs. Teenagers with disposable income (age 16+) are also interested in getting beauty treatments at trendy places.

Although there has been a recession, cost-consciousness has been shown to have less of an effect on beauty and cosmetics. However, those beauty services that are offered at a reasonable price are well-received in times of economic distress.

The idea of creating a trendy nail/beauty salon is easily imitable. Large amount of competition from other nail salons which offer the same basic

services. With the recession, people have become more cost conscious. Home manicure and pedicure sets are widely available and could act as a substitute

for customers of Pure Nail Bar. In malls, there is often a high saturation of nail salons and beauty parlours, which can

offer competition for Pure Nail Bar. Trends of what is considered “cool” or not are constantly changing; thus, there is the

risk that Pure Nail Bar could fall off the map as a trendy location.


PESTE AnalysisPolitical Grants are available to the company as a small business

Health and safety regulations for running a salon are applicable Stable political environment in Vancouver and overall in Canada, which is important for functional

beauty salonsEconomic The beauty industry is one which requires customers to have disposable income

Market crash in 2008 means more people became money-conscious. However, this has been shown to have a minimal effect on the beauty industry as people are still willing to spend money in this area

Socio-Cultural Main customers of manicures/pedicures are women Trends applicable to middle-class teenagers as well as women aged 16-40 Women are looking for affordable ways to relax, and to meet their aesthetic needs Having a healthy appearance is an important point to many women’s physical and mental health There is increased health consciousness which involves taking better care of one’s body Larger emphasis on quality of services received

Technological There is not a heavy reliance on technology in the beauty industry New technology is available to make salon visits more enjoyable (ex. televisions, comfier

accommodations, faster and more efficient tools for an efficient and flawless experience) Increased communication opportunities are available for trendy businesses including Facebook &

Twitter Point of sale technology can be used by companies in this industry to better track sales and also

demographic details of customer to better customize experiences Scheduling and booking tools are also available electronically to improve the planning experience

Environmental Limited environmental factors and impact Harsh chemicals used in nail polish products, and the issues associated with disposal Animal testing in some cosmetic products


LocationThe proposed location of the new Pure Nail Bar is at 2137 4th Avenue West in Kitsilano,

Vancouver, British Columbia. The below image depicts the location of the new store.


Marketing and Branding

Magazines

Fashion Blogs

Facebook

Twitter


Unique Environment


Artwork

Social Luxury Self-Image


Store Layout

B

C

D

C

A

E

F G

H

H

J

K


Store Layout DescriptionSection Description

A This is a small changing room for clients receiving wax treatmentB This is the storage room and employee lounge.

The storage room will hold additional supplies and tools that are used on an ongoing basis. It will also have a basin for cleaning reusable supplies (like tubs for foot soaking), as well as a washing machine and dryer to clean towels and linens.

C These are the two treatment rooms used for the waxing treatmentsD This is the client and staff bathroom that will also be wheelchair accessibleE This is the main treatment area.

These 2 sofas will hold 6-8 clients and can be reserved for group events.The Nail Technicians will sit on stools across from the client and will provide pedicure treats and other foot treatments

F The circles represent 2 comfortable chairs next to a small end table. This treatment area can be reserved for a small party of two when friends want to have treatments side by side.

G This is the iconic white nail bar and bar stool area where the manicures will be done. This area will seat 5-6 clients.

H These walls will have flat screen televisions (minimum 42 inches) for Sex and the City, “Chick Flicks”, and other client favourites to air.

J This is the opening reception area where the client will be initially greeted and signed in by a receptionist or manager. This is also where the POS machine will be located to when clients pay for their treatments.

K This is a small waiting area for the waxing treatments for family and friends to wait during treatments or for clients to relax before treatments.


Organizational Structure

Store Manager

Assistant Manager

(2)

Estheticians (3)

Nail Technicians

(7)

Receptionist (3)


Personal Element

Assistant Managers• At least 3 years in the beauty service industry

Estheticians & Nail Technicians• Certified / licensed• At least 1 year of experience

All employees will be• Friendly • Attentive • Customer focused


Positioning Map Assumptions• Metrics:• Quality: professionalism of service, amenities, and atmosphere

▫ amenities: complimentary refreshments, relaxation rooms, robes, slippers, and shower facilities

▫ atmosphere: quality of artwork, furniture, and entertainment (music, television, magazines)

▫ experience: ambiance, comfort, enjoyment, social aspects• Price: based on the average price of services

▫ High: Range of service prices $50 - $350 depending on the type of service

▫ Low: Range of services $10 - $80 depending on the type of service• Players:

▫ Absolute Spa: fully equipped hotel luxury spa with complete amenities▫ Solarice Spa: mid-range spa▫ Kitsilano Nails: local nail salon▫ ProfessioNAIL: nail salon franchise▫ Independents: small individual nail salons


Risk MitigationPrice •Consistent with competition

•Demographic•Marketing and branding support differentiation from cheaper alternatives

Quality •Training•On-going training•Management oversight

Location - Kitsilano •Negotiation pending•Growing neighbourhood•Other locations: South Granville, Newport Village, Kerrisdale and Denman Street

Labour – skilled and knowledgeable

•Skilled trade schools: John Casablance and Blanche MacDonald•Competitive wages

“pure experience” Business Plan Presentation Elysse de la Paz, Courtney Eng, Samantha Ma, and Sherry Wang.

Documents

experience slide

pure return

pure customer experience

brandinglocation slide

giggle slide

sherry wang slide

expected return

nail technicians