Business Development Plan for Herbal Salon in Birmingham, UK

Business Development Plan

TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION..............................................................................................3
Abstract........................................................................................................................................3
Rationale......................................................................................................................................3
Scenario chosen...........................................................................................................................3
Aim and Objectives.....................................................................................................................4
Background of the project...........................................................................................................4
Structure of the project................................................................................................................5
CHAPTER TWO: LITERATURE REVIEW..................................................................................7
CHAPTER THREE: METHODOLOGY......................................................................................15
CHAPTER FOUR: DATA/RESULT ANALYSIS.......................................................................20
CHAPTER FIVE: DISCUSSION, CONCLUSION AND RECOMMENDATION.....................34
REFERENCES..............................................................................................................................38

CHAPTER ONE: INTRODUCTION
Title: To prepare a business development plan for opening a herbal salon in Birmingham,
UK.
Abstract
This assignment is based on establishing a new business in Birmingham, UK. This report
will provide an insight into the core aims and objectives pertaining to the business idea and
analysing the idea through the appropriate literature and the secondary research data. It will
involve use of various marketing tools and techniques for further discussing the business idea. It
will state the research methodology which is being used for achieving the desired objectives. It
examines the various aspects of the business ideas and makes use of various sources of data in
order to gather relevant market related information on a current basis which will act as a support
system for effectively analysing the market and future prospects and potential of the market in
meeting up with the changing market conditions. In simple terms, it will provide a direction
through which the new salon business idea can be implemented in the Birmingham, UK. It is
recommended to analyse the market continuously and make use of high quality products.
Rationale
The rationale behind selecting this topic is nowadays, there is an increase in the demand
of the grooming services as people are more and more interested or concerned about their skin
and beauty. This has resulted into increase in the demand of the salon services. Apart from this
people are interested in herbal and organic products involving no chemicals and having no side
effects. This topic is important now as there is an increase in the awareness among the people in
relation to their well-being. Thus, this makes the selection of this topic important. There
researcher has analysed the data pertaining to it which will be made useful in effectively
developing the business plan. It will take into account the needs and preferences of the
consumers in the respected field in order to meet with their expectations and retaining them for
long and building a good relationship.
Scenario chosen
The scenario chosen for the purpose of introducing the new business idea in the market is
the herbal beauty salon which will be established in Birmingham, UK. This business scenario is
being selected because there is lack of herbal salons in the place which can pose as an
opportunity for meeting the needs and preferences of the customers in a better way. Along with

this, it will help in taking the first mover advantage and grabbing the greater portion of the
audience along with the larger marker share. This scenario is considered to appropriate as it is
having a huge potential in the selected marketplace. If the opportunities are rubbed and analysed
on an appropriate time then it will result into a huge business success.
Aim and Objectives
Aim:
The aim of the project so to create a business development plan for the purpose of
establishing a herbal beauty salon in Birmingham, UK.
Objectives:
 To understand the herbal salon market in Birmingham.
 To acquire the market share of 20% in first two years.
 To determine the marketing tools which can be useful in establishing the business idea.
 To discuss the issues of the business model.
Background of the project
The salon business has been growing at a higher pace which is mainly because of the
increase in the demand of it among the people irrespective of type and the age group. The
increase in the consumer awareness, hygiene and the personal grooming has further widened the
market for the salon services. But, apart from this, consumers have started understanding the
negative impact of the non-herbal beauty care products which has caused a rise in demand of the
herbal products among the consumers. There is an increase in the number of entrepreneurs who
are coming up with the attractive and innovative business ideas which helps in effectively grab
the opportunities being available. The idea of establishing a herbal beauty salon is that there are
very few in number or no such business in the chosen area. Therefore, the selected market is
considered to be full of potential for generating positive results for the new business
establishment.
Along with this, in order to generate the need for such herbal services among the
consumers will help in acquiring the more customer and creating a place in the prevailing
market. This report will provide an insight into the various factors or the elements which the
businesses are required to taken into account in order to identify the key factors having an impact
over the successful implementation of the business idea. This study will be helpful in
understanding the current market industry pertaining to the business idea and based on which

strategies that is available with the business would be identified which can be useful in
effectively identifying and implementing the right strategy. It incorporates making use of the
various sources for the purpose of collecting market and business related information which will
help in effectively accomplishing the desired business objectives. Apart from this, it will provide
the proper analysis and discussion of the project findings and based on which the relevant
recommendation is being provided.
Structure of the project
The structure of the project defines the procedure in which the project will be carried out.
It states the different chapter which will be incorporated in order to effectively complete the
project along with the attainment of the desired objectives.
Chapter one: Introduction
This chapter is discusses about the topic which is important for the reader to understand
the topic based on which the entire project is being done. It states about the rationale behind the
selection of the topic, describing the scenario selected and stating the aims and objectives of the
title chosen (Xiao and Watson, 2019). Along with this, this chapter provides information about
the key focus area and the scope of the topic and also conveys the important and relevance of the
topic. Through the way of aims and objectives, it highlights what this study aims at to derive and
how. At last, it also provides an overview of the structure of the projects which will be covered.
Chapter two: Literature Review
The literature review chapter accounts for studying the scholarly articles which assists in
providing current knowledge on the specific topic and identifying the relevant theories and
models and any gap in the current project (Cseh, 2020). Conduction literature review which
incorporate the gathering, evaluating and analysing the already published articles, books and
journals which will be related to the project objectives. It will provide a theory on the framework
of the business development plan pertaining to the different areas which is required to be taken
into account. This chapter is considered to be very important as it provides the theoretical
framework for completing the project.
Chapter three: Methodology
The key part of the project is the methodology which is sometimes correlated with the
method which they are different. The methodology conveys the wide philosophical underpinning
to the research or project methods. It involves determining the approach which will be used like

qualitative or quantitative methods or the mixture of both (Ramlaul, 2020). It states the ways
through which the data is being collected and how it is being analysed which assists the user in
evaluating the reliability and validity of the data sources. It also describes the ways through
which the collected data will be further analysed which will help in effectively accomplishing the
stated business objectives. This is essential as it provides with the tools which will be used for
undertaking the project.
Chapter four: Data/ result analysis
The data analysis chapter of the project is mainly the place which incorporates all the
research together and starts in the way of findings. Here the data of both quantitative and
qualitative research will be put and findings from the same will be explained. It refers to easy
representation of the data which can be clearly understood by the users of it and depicts how the
methodology has helped in generating the final outcomes. It will provide the clear explanation of
the results based upon which the further decisions are being made. This is an important step as it
involves proper analysis of the data collection from which useful and relevant information can be
determined leading to undertaking proper business related decisions.
Chapter five: Discussion, conclusion and recommendations
This chapter of the research, incorporates assessing the meaning of the outcome
generated through the way of evaluating and interpreting the same. This is considered to be the
hardest part as it accounts for the proper and appropriate evaluation of the results which helps in
determining whether the stated aims and objectives are being achieved or not. It answers each
and every question stated in chapter 1. Based on the discussion, the conclusion is drawn which
highlight the outcome of the entire and whether it is able to effectively meet with the defined
objectives. At last, recommendation is being provided which also based on the study which can
be either in the form of further study or implementing change or suggestion for further
improvement.

CHAPTER TWO: LITERATURE REVIEW
Theme 1: Understanding the market and industry pertaining to herbal salon
According to Barber (2020) the salon industry in Birmingham, UK is being expanding at
the higher pace which has resulted into expansion in the job opportunities. There are various
forms of salon in UK which requires relevant health and beauty skills and qualification which
could help in improvising the services and securing the larger market share. The beauty salon in
UK has expanded so widely that it has become difficult to keep track of the various types of
treatments which is being available. There are different separate and individualized salons
offering small range of treatment ranging from nail art to the tanning. Along with this, in the
Birmingham market even the in the big salon's there is no single staff who is specialized in
everything and for each service different staff is there. The range of salon services in the UK
market is expanding and is also rapidly changing.
In accordance to the Hair and Beauty Industry Authority (HABIA), there are
approximately 35704 hairs salons, 1512 nail bars along with 13 thousand beauty salons in the
entire salon industry in UK and this statistics mainly accounts for the high street salons. As
defined by Shendell and et.al., (2018) these salons tend to offer either hair, beauty or the
complementary health treatments. Another form is the Spa salons, which is hidden inside the
self-contained complexes like the hotels, clubs and it usually offers the upmarket service. The
main objective behind using this is the offering luxurious experience to the customers from the
moment they set their foot in. As per the report of HABIA, spa salons offers various
complementary and health care treatment and there are approximately 400 spas in the UK salon
industry. In UK, there is increase in number of the mobile salons and as per the HABIA there are
nearly 947 mobile beauty therapists and there are others as well but in a more informal way. The
beauty therapist or the other service provider used to travel to the clients homes for providing the
services. The author further added that the Hair and beauty industry has generated more than
£7.5bn in regard top the revenue in the year 2017 and there has been a higher growth in the hair
dressing, barbering and the beauty services which is by 45% in terms of numbers in the previous
5 years.
As stated by Ourahmoune and Jurdi (2020) the hair and beauty businesses is having a
higher survival rate after the 5 years which is higher than any other sector or industry. Based on
the 2019 industry statistics, more than 2/3rd of the hair and beauty salons in UK employs less

than 5 people while on an overall basis 94% employs less than 10 people. There are nearly 43
thousand hair and beauty businesses in the UK industry which is an increase in the 1000 in
comparison to the last year. In the year 2019, the more than half of the salon businesses were
having a yearly turnover of lower than £99k. Ruck (2018) emphasized that on an overall basis
from the respect to the UK there are approximately 250000 people being working in the
hairdressing, barbering and the beauty without taking into consideration, salon owners or the
managers. In the field of hairdressing and barbering, 54 per cent people work and are mainly
self-employed and on account of the beauty there is 57 per cent people working as self-
employed. In this number, 83 per cent in the hairdressing and barbering are female while in the
beauty segment there are 94 per cent.
It can be further added that the sum total of the entire businesses pertaining to the
hairdressing and other beauty treatments in the entire UK industry in 2018 turned to more than
4.5 bn British pounds which has decreased to more than a million taking 2017 as the base year.
As stated by Hanson (2019) in the UK, the older generations were having the tendency to spend
more on their beauty treatment while the people under the age of thirty years incurs the
expenditure of 2 British pounds every week. Along with that, the female customers spends more
in comparison to the male customers with a difference of nearly 11 British pounds. Author
further added that in the year 2018, the salon industry has made a contribution of nearly 3.4 bn
British pounds to the Gross Value Added (GVA) in respect to the UK's non-financial business
economy.
According to Kaur and Kumar (2020) the UK market in respect to the herbal or the
natural and organic personal care products in being rising at the higher and healthy rate. Based
on the report of Ecovia Intelligence, it has been shown that revenue has been grown by nearly
30% since the year 2012. The natural hair care products are the most popular having a total
market share of 5% in the entire hair care products. But the market growth was relatively
slowing down which is mainly due to the political and economic situations pertaining to Brexit.
The depreciation of Sterling has resulted into higher price of the imported natural personal care
products which has made retailers little cautious in expanding the natural and organic beauty
products. As per the view of Nazareno, Zhou and You (2019) the major competition is not the
salon businesses but the products or the brands being used inside a salon. In terms of the product,
the top beauty brands of UK which are Bee Good, Seams, Waterman, conscious skincare, Boots