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Name: Royce Hair Saloon
Royce Hair Salon Located in Oakland Commercial Centre, Seremban.
Founded in 2012 by Mr. Royce.
Only one branch as of today.
Jalan Haruan of the Oakland Commercial Centre in the new town of Seremban, which is called Seremban 2
Basic Information About the Owner:
Royce is an Indian orphan who is raised by a
Chinese family.
He only speaks Mandarin and Cantonese.
His dream was to become a professional
hairstylist and start up his own hair salon one
day.
ReStyle Hair Salon
Located in Syopz Mall in Taylor’s University Lakeside
Campus.
Part of the A Cut Above Group.
Founded by Winnie Loo, award-winning hairstylist and
chairwoman of A Cut Above Group.
Established in 2009.
There are three other branches that are located in 1
Mont’Kiara, Tesco Mutiara Damansara and Sunway
Pyramid.
Services Provided by ReStyle Hair Salon
Haircut
Hairwash
Hair treatment
Perming
Highlighting
Coloring
Brazilian Keratin Treatment
Shampooing and Blowdry
Motive of Opening The Hair Salon
To target students and hostel residents to buy
the hairstyling services because of its
convenience.
10 Main Competitors:
- Impress Hair Salon
- Kenji Hair Salon
- Domnik Hair Salon
8 Main competitors:
- Spazio Hair Salon
- Hair Fonts
- APT Hair Salon
Number of Competitors
Brief Bios of Top 3 Competitors
1. Impress Hair Salon
• Located in Kemayan Square.
• Established much earlier than
Royce Hair Salon.
1. Spazio Hair Salon
• Located in SS15, Subang Jaya
• Established in 2010.
2. Kenji Hair Salon
• Located in Biz Avenue.
• Relatively reputable because of
its location.
• Offers promotion of their
services in Groupon MY.
2. Hair Fonts
• Located in Sunway Pyramid.
• Groupon has many deals with
Hair Fonts in which customers
can purchase them at a cheaper
price.
3. Domnik Hair Salon
• Located inside of Terminal One
Shopping Centre.
• It is one of the few hair salons
inside the mall.
• Offers quick haircut.
3. APT Hair Salon
• Located in Sunway Pyramid
• Consists of well-trained
hairstylist.
• Provides professional
hairstyling courses.
Strategies Used to Compete With Competitors
Strategy 1: Pricing
• Cheap pricing - Only
RM 20 for a standard
haircut for both male
and female.
• Affordable pricing.
• Student pricing.
• Various packages at a
cheaper price as
compared to buying
the service
sseparately
Strategies Used to Compete With Competitors
Strategy 2: Service and Product Variety
• Offers all services that
a standard hair salon
has.
• Have various hair care
products displayed for
sale.
• Offers professional
standard hairstyling
service.
• Have different
packages.
• Special hair treatment
called “Brazilian
Keratin Treatment”
• Provides beauty
services.
Strategies Used to Compete With Competitors
Strategy 3: Quality of Service
• Provides excellent and
professional
hairstyling service.
• Friendly hairstylists.
• Excellent augmented
service.
• Well-trained
hairstylists from A Cut
Above Academy.
• Provides useful tips
and advices for
customers on hair
maintenance.
Strategies Used to Compete With Competitors
Strategy 4: Location
• Located in a relatively
busy commercial area.
• Oakland Commercial
Centre is located
nearby a residential
area.
• Easy for customers to
find.
• Located in Syopz Mall
which is in a
university.
• Attracts students,
lecturers and hostel
residents.
• Convenient for
students to get a
haircut.
Strategies Used to Compete With Competitors
Strategy 5: Brand Name Selection
• Has a distinctive name
because it is named
after the owner.
• Easy for all regular
customers to
remember.
• The word “ReStyle”
automatically forms an
impression that it is a
hair salon.
• Sub-company of an
award-winning
company.
Obstacles Faced By New Businesses
Starting capital.
Abundant number of hair salons.
Difficult to create loyal customers.
Overcoming the Obstacles
Putting on an excellent first impression towards
new customers.
Constant promotion.
And of course, patience.
Nature of Markets
Perfectly Competitive
Provide standardized services and products.
No pricing power.
- Prices are fixed by the market.
- Customers will get their hair treatment from other
hair salons that offer a cheaper price.
Free to enter and exit the market.
Competitive Traits Royce Hair Salon
(Seremban-based)
ReStyle Hair Salon
(Klang Valley-
based)
1. Number of competitors 5 to 10 6 to 15
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 Price taker
5. Verdict Perfect competition Perfect competition
Competitive Analysis Summary Table
Post-Analysis Conclusion
Business that is more commercially succesful: ReStyle Hair
Salon
Reason: i.) Established earlier than Royce Hair Salon.
ii.) Located in a very strategic location.
iii.) Their parent company is A Cut Above, an
award-winning, reputable hair salon.
Royce Hair Salon
Recommendation # 1: Choose the right location to bring in more
customers.
The current location where is Royce Hair Salon is located is not a
very busy area.
By choosing the right location where it is busy, it will attract more
customer’s attention.
Choosing a shoplot in a busy commercial area may be expensive,
but the return of the capital in the end will be greater.
Royce Hair Salon
Recommendation # 2: Add-On Services
Besides just hairstyling services, Royce Hair Salon should provide
more services.
Instead of calling it just a hair salon, why not make it become a one-
stop beauty centre?
The add-on services may include manicure and pedicure, spa, hot-oil
treatment, nose-hair treatment and much more.
ReStyle Hair Salon
Recommendation # 1: Rebooking system
By proposing a treatment that requires customers to come
back every month or so
offering a good service
ask them for their next appointment before billing out
ReStyle Hair SalonRecommendation #2: promote through social network
• create facebook pages and invite more people to like the page
• invite professional photographers to take attractive photos to
catch attention of readers online
• Take a before and after photo of client to provide confidence for
the first-timer client for hairdo
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.