New Business Advancements in Herbal Beauty Salon: A Study on Classic Salon

This report explores the new business advancements in the herbal beauty salon industry, focusing on Classic Salon in London. It discusses the factors influencing consumer buying behavior and profit and sales maximization. The report aims to provide insights for entrepreneurs and researchers in the salon industry.

New advancements in
Business

TABLE OF CONTENTS
CHAPTER 1: PROPOSAL..............................................................................................................4
Background..................................................................................................................................4
Aims and objectives.....................................................................................................................4
Rationale......................................................................................................................................4
Theory overview..........................................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................8
2.0 Introduction............................................................................................................................8
2.1: General factors relating to demand and profit & sales maximization..................................8
2.2: Factors in relation to the demand.........................................................................................9
2.3: Possible factors regarding profit and revenue maximization.............................................10
2.4: Review of journal and article towards demand, sales & profit maximization...................11
2.5 Conclusion...........................................................................................................................12
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................13
Research type-...........................................................................................................................13
Research approach.....................................................................................................................13
Research philosophy..................................................................................................................14
Data collection...........................................................................................................................14
Data Analysis.............................................................................................................................16
CHAPTER 4: FINDINGS & DISCUSSIONS..............................................................................17
Theme 1: Factors that drives the demand for the present herbal beauty and the salon product 17

Theme 2: Factors for sales and profit maximization.................................................................18
CHAPTER 5: CONCLUSION & RECOMMENDATIONS........................................................20
Conclusion.................................................................................................................................20
Recommendations......................................................................................................................22
REFERENCES..............................................................................................................................23

CHAPTER 1: PROPOSAL
Title- To initiate the new business of Herbal beauty Salon in London : A study on Classic
Salon
Background
The present report is based on Classic Salon, a herbal beauty salon business in London,
UK. The new idea relates to providing quality services to the people with the use of herbal
products which in turn helps in attracting larger customers as each and every people is seen as
conscious with regards to skincare products. In the current trend, Demand for the beauty and the
hairdressing treatments is counted as sensitive to an economic conditions (Van Buren III, Syed
and Mir, 2019). Prosperous economic condition results in higher demand for highly valuable
services of an industry like hair drying or the highlights. In similar sense, demand for the other
types of discretionary treatments and the products like nail art therapies likely to seen as
reducing at times of declining the disposable income and lower confidence of the customers.
Furthermore, the study throws a deeper insights towards the rationale and a significance in
relation to a particular research problem. Moreover, it also presents the review of the business
based on the objectives framed along with appropriate employment of the research methodology
for making the study more reliable and valid.
Aims and objectives
Aim
To start an innovative and new business of Salon with Herbal beauty products and
services in London: Case study on Classic Salon
Objective
 To identify the factors that influence the buying behaviour of consumers.
 To determine the factors that results to profits and sales maximization
Rationale
The major reason behind preparing for this research study is to start up for a business that
brings innovation and creativity for the people in the line of Salon business. With increase in
competition, it is becoming more and more crucial for an entrepreneur to come up with the

business with a new idea and as per the changing trends or preferences of the customers in order
to attain competitive advantage in an overall market. In today's dynamic environment, need for
an innovative business is rising as people expect for trying new things and also becoming more
and more conscious in relation to using of their skin products and availing quality services.
The research study would help the other scholars, professors and the the students who are
looking for conducting the report on this research problem. Moreover, through this study, other
investigator could be able to generate critical findings relating to the factors that must be taken
care off at the time of starting up for the new venture. It also enables the researcher in developing
an understanding regarding the methods that results in making the study more useful and
meaningful.
Theory overview
It has been represented on the basis of the objectives that by identifying the current trend
with respect to the salon business in an overall UK, it would be helpful for an entrepreneur to
start up the business in accordance to preferences and need of the customers in the market. This
helps in analysing the growth of the business in the future and in making the feasibility study in
relation to the sales and profitability of the business (Badre, 2020). It helps in understanding the
performance of an overall beauty industry and helps the new business in making effective
strategies relating to develop an efficiency in the business of Salon. Analysis of the current trend
enables in determining areas where the business needs changes or modifications for making its
performance better in the market. It also helps in identifying the areas of the business where its
seems as under -performing and over-performing. It assist in providing an evidence to the new
venture in to focus on the areas in which an existing salon business are facing problems (Perry,
Rahim and Davis, 2018). This in turn helps in making suitable decisions and in facilitating such
services that are not been provided by the competitors. Assessing the current trends and the
development of salon business in UK market, new entrant can develop an adequate policies in
order to gain a leading position or competitive edge in the market by coming up with the lower
price so that more and more customers gets attract towards the services and the products of the
new salon business.
The other objective reflects an analysis of the micro and macro environmental factors
which depicts that each and every business is been affected by the myriad of the factors. On the
other side, an enterprise could never work in a smooth way if it does not assess an influence of

its external and internal factors (Bommaraju and et.al., 2019). Through making an internal or the
external analysis, company could be able to manage its operations strategically. Internal analysis
helps the firm in understanding its strengths, weaknesses, opportunities and threats which in turn
helps the firm the firm in reaching to a leading position in and entire market. It also helps in
attaining a growing success because through this company could be able use its strengths for
overcoming its weaknesses and taking opportunity in order to overcome its threats.
It is crucial to make an internal analysis prior to launch or introduce a new business
because it reveals and creates an understanding regarding the way in which the resources might
be used within the company (De Mooij, 2019). It reflects the capabilities of the company in
producing for superior and the quality products, managing the supply chain and accessing to an
input. It assist an organisation in determining its competencies that could be utilised in an
effective way for exploiting an opportunities and in responding to the threats has been posed by
an environment. It also helps in develop better understanding that contributes to the costs,
profits, sales, market share and the relationship between such characteristics and the features.
In internal analysis helps the firm in making an evaluation of the financial health as it
identifies the areas where there present a lack of fund and the resources and also helps in
determining that optimum allocation of the funds & resources is made by the firm or not. Internal
assessment enables in identifying short comings within the skills and the resources of an
organisation (Nisar and et.al., 2016). It assist in exploiting strengths of an enterprise in order to
achieve its goals and the objectives. By making an internal analysis company could emphasize
on the opportunities that are profit making within a business environment and in identifying the
threats. This analysis provides a deeper insights to the firm in assessing the areas that are strong
that may be exploited wholly and within which some of the defensive planning may be needed in
preventing an entity from facing downfall.
On other hand, external analysis enables the business in staying on the top of the trends
and an events within an industry that might affect the company but is counted as uncontrollable.
It includes an analysis of the political, economical, social, technological, legal and environmental
influences on the firm (Hidayati and Satmaka, 2018). These factors involves assessing the
political and social influences that reflects government intervention and its stability along with
currency exchange & disposable income of the people. Moreover, technological advancement
and changes in the legal framework also poses a huge impact on the working of the firm.

External analysis enables in examining an industry environment with an inclusion of the
competitive structure, position, history and the dynamics. It provides for a simple and an easy
analysis regarding the buying behaviour of the consumers and also facilitates a framework in
reducing an effect of the potential threats to the company. It aids in development of the strategic
thinking at the workplace and provides a platform where an organisation can exploit newer
opportunities. Thus external analysis helps in accessing an implication relating to entering into
the new markets globally as well as nationally (Mullins, 2017). It acts as the generic tool which
helps an entity in assessing its product line and position in market. This helps the firm in making
competitive strategies for responding to the variations in an environment effectively and
efficiently. There are various other factors which influences the buying decisions of customers
that includes purchasing power, price, quality, economic condition, personal needs and
preferences etc.

CHAPTER 2: LITERATURE REVIEW
2.0 Introduction
Literature review may be served as a research method which lays emphasis on the
evaluation of books, journals and scholarly articles related to the issue being addressed. In this,
chapter will shed light on the factors which in turn associated with demand factor, profit as well
as sales maximization.
2.1: General factors relating to demand and profit & sales maximization
In view of Guchhait and et.al. (2017), it has been stated that the demand influences with
result of changes in the prices and the others factors remain as constant. There are several other
factors that influences or affects the demand of the services that includes price, perceived quality,
taste and preferences of the customers, income, advertising and confidence of the consumers.
Arias and et.al. (2018), viewed that changes in the taste and the preferences act as an
important or crucial factor that determines demand for services or the product. If the taste and
preferences for particular good or the services is high or greater, demand for such services or the
product is seen as high. However, if the particular product or the services are not preferred by the
customers due to changes in fashion then the demand for that specific product resulted as
decreasing or declining.
Mata-López and Tobón (2019) identified that advertisement expenses made by company
in order to promote sales of its goods or the services is considered as a significant factor which
determines the demand for services (Key Factors to Maximizing Profit, 2020). The main purpose
or objective of advertisement is inducing he consumers in buying the product or availing services
of the company. When the advertisement resulted as successful, it causes a rise in the demand of
the product or the services. However, in case an advertisement is not found as effective then it
causes decrease in the demand.
Moreover, Alizadeh and Sriramula (2018) represented that there are various factor that
affects or influences profits and sales of the business involves level of competition, market
contestability & competition, Economic state, fashion, substitutes, success of advertising, cost

etc. degree of the competition is an important factor that determines the profit and helps in
increasing the profits and revenue by rising the price of the product. On other state, government
regulations might prevent the monopolies in abusing their respective power. Further, in terms of
the competition in market, if in case the market is very much competitive then profit would be
low as consumer would be buying from cheapest organizations.
Similarly, Khan (2017) viewed that successful advertising leads to rising demand that in
turn maximize revenue of the company and also the profits with higher market share and
demand. In case there are many substitutes and price of substitute is high then there will be
higher demand for company’s product and services. This results to higher profitability and sales
for the corporation and this in turn indicates success of the firm.
2.2: Factors in relation to the demand
In the view point of Marchuk and Fabiianska (2017) there are several factors other than
price that impact or induce the consumer’s demand for a beauty salon service. The consumers
make store-choice decisions by evaluating different criteria established in their mind and then
comparing it with the store’s features. It helps them in differentiating stores and deciding
whether they are acceptable or not. It has also been stated, location is an important factor in
influencing the demand of salon service because it is a well-known fact that if the geographical
location of salon is far away from the customers, then there will be a reduction in demand as
compared to its customers (Important Factors That Influence the Demand of Goods, 2018).
Hence, it is necessary for every business to perform adequate research before selecting the
location as it plays a huge role in ensuring the growth and success of an organization. It is
important to keep in mind the availability of labor, raw materials and target customers before
selecting the location.
However, Yusuf and et.al. (2019) states that salon design, its interior and overall
architecture also contributes towards the increasing demand because it is important to have an
atmosphere that makes customers feel comfortable and they get attracted to it. Adding music,
lighting and attractive colors in the salon can help the business in achieving an edge over other
players in the market. Salon design plays a psychological impact in the minds of the consumers
as if the atmosphere is calm and relaxing, the consumers will visit again but if the interior is

poorly decorated with loud atmosphere it can have adverse effects on the growth of the salon
store.
Darmawan, Wong and Thorstenson (2018) has explained the importance of advertising
and sales promotion in increasing the demand for the salon service because it helps in providing
information to the customers in relation to new store opening, displaying the attributes of the
service and also to build a certain image in the minds of consumers so that they get influenced by
the product or service. Sales promotion can also be done through offering various discounts,
exciting offers and providing rebates to customers. Brand loyalty is also an important aspect that
must be considered while increasing the demand for Salon Company. The business must win the
trust of its customers by offering good quality services and must satisfy their needs and wants as
it will not only help in retaining old customers but will also help in attracting new customers.
However, Geary (2017) argues that the employees of an organization play the most
important role when it comes to promoting and advertising the company. The employees have
the power to influence the store’s image by providing good quality services to its customers and
also by being friendly, respectful and helpful. If the employees are not well trained or well
mannered then the demand for the salon can fall abruptly. It is also stated that employee attitude
and behavior is the reason that 70% customers re visit the stores. Another crucial factor in the
opinion of Singh and Okoro (2017) is that it is the duty of every business to do proper research
and identify the latest trends in the industry; it can help them in increasing their demand and also
help the organization in achieving its desired goals and objectives effectively and efficiently.
2.3: Possible factors regarding profit and revenue maximization
It is mandatory for every business to earn profit, not only to survive but also for its
growth, according to author, there are various factors that can help in increasing the sales and
overall profitability of the salon store but the most important is networking. It is important for
salon store to increase their client network as they directly contribute towards the growth of the
business. It is the duty of employees to not only build new client business through
communication but also retain the existing base with the help of brand loyalty. In the view point
of author, the salon company must also focus on selling more products and services per customer
visit so that the business can earn maximum revenue from single individual and not have to
worry about constantly adding new customers to increase profits. It can be done through good

marketing skills; the employees must offer add on services and offer retail assortments by
adequately communicating with the customers.
However, according to McKay, Brown and Skalberg (2016) it is not always essential to
offer additional services to customers as it can sometimes hamper the image of the salon
therefore in order to increase the revenue, the business must also focus on reducing their
operational costs which can be done through continuously monitoring the expenses and making
sure to cut them if they are not creating any value for the organization. Also, the salon business
must ensure different ways to make profits like selling beauty and herbal products, providing
SPA services and also offering door to door beauty services. The salon can also shift their
services online and even start teaching different skills to the audience; it can be a good way to
increase their revenue. Also, it can sell their products on Amazon and other E-commerce
websites to increase profits.
In Chen and et.al. (2017) opinion, the salon must establish a brand name for itself by
providing good quality services at affordable rates to its customers. It can help them in increasing
their customer base and also mouth publicity will create a brand name for the salon company
thus after some time the brand can expand their services in different geographical locations
which will help them in increasing their profit margin. It is essential for the salon manager to
measure the key performance indicators of the business-like number of clients, frequency on
arrival, products and services sold during single visit, profit margin of salon and total product
sales. These factors must be tracked on a monthly basis and comparisons must be made
systematically. It is the duty of the employer to sharpen the skills of its employees by providing
them adequate training and making them learn new skills and equipment so that the salon can
attract wider audience and increase its sales margin
2.4: Review of journal and article towards demand, sales & profit maximization
Dey and et.al. (2019) has concluded that the major factors that contribute towards
increase in demand are location, design of the store, advertising and sales promotion and
employee skills. With the increase in price of goods and services its demand will reduce and with
decrease in prices, the demand will increase. It is known as law of demand and it is very
important for a business to know because if the salon company wishes to attract a large number
of customers, then it must reduce its prices but at the same time if the salon wishes to maintain a

certain standard and attract a certain customer base then it must not reduce its prices (Factors
with regards to sales and profit maximization, 2020). However, another factor that plays a major
role in increasing the demand of salon service is the profile of customers. It has been known that
the attitude of customers, their taste and preference also play an important role in influencing the
demand for the company’s products and services. It is imperative for Salon Company to not only
identify the taste and preference of its target customers but also to perform market surveys so
that the organization can identify latest trends and therefore adopt them systematically. Another
important factor is to build a brand name for the salon company so that the demand for the goods
and services increases constantly.
In the view point of Bouche and Crotty (2018), both demand and profit maximization are
positively related to each other because an increase in demand would lead to increase in sales
which will further increase the profits of the company. Some other ways to maximize profits are
by increasing the number of physical stores or expanding business online so that it can attract a
new customer base. Moreover, the importance of retaining old customers should not be under
estimated and the salon company must provide them good services. New products and services
can also be launched to increase the revenue of the firm effectively. It can be stated that both
demand and profit are positively related to each other which means that if the demand increases,
profit will also increase. A salon company must perform market research to identify its target
customers and it should identify their needs and wants and provide services accordingly. It will
ensure maximum consumer satisfaction which is beneficial for both profit maximization and
image building of the company.
2.5 Conclusion
By summing up this LT it can be concluded that demand factor can be enhanced by
emphasizing on design, interior and overall architectural aspects. Further, in the context of salon
by making focus on promotional and quality aspects both sales and profitability can be
maximized to a great extent.

CHAPTER 3: RESEARCH METHODOLOGY
It is defined as the particular process or the tools that are been used for determining,
processing, selecting and assessing an information in relation to the specific research problem.
This section allows a reader or scholar for critically evaluating overall reliability and the validity
of the study.
Research type-
The two main kinds of method that can be used by scholar at the time of conducting the
study include qualitative and the quantitative method (Bresler and Stake, 2017). Qualitative
research is a kind of the social science which gathers and works with the non-numerical elements
and that seeks for interpreting meaning from the data that enables in understanding the social life
through a study of the targeted places or the populations. However quantitative research referred
as the study which relies on measuring the variables by making use of the numerical system,
assessing such measurements by using any kind of the statistical tools, reporting relationships
and an association within the studied variables (Kumar, 2019).
Referring to this study, researcher will make use of qualitative method that helps in studying
all the qualitative elements with regards to starting up of the new business in respect of herbal
beauty salon.
Research approach
There are two types of the approaches that the researcher can use includes inductive and the
deductive approach. Inductive approach means an approach that starts with an observation and
the theories that are been proposed towards an end of the process within the research study in
terms of an observation result. This approach include search for the pattern from an observation
and development of theories for such patterns by way of a series of the hypotheses. On other
note, deductive approach mainly relates to developing hypotheses on the basis of existing theory
and thereafter designing a strategy for testing the hypotheses (Ledford and Gast, 2018). In other
words it means as starting from particular to general and is concerned to drawing deductive
conclusions from the propositions or the premises.

In this study an investigator will be using inductive approach as it best suits to qualitative
study and provides for a detailed analysis of the research problem that is introducing new
business relating to herbal beauty products. This approach is found as most suitable because it
helps in making the qualitative study more useful and meaningful. By following his approach,
scholar doesn’t have to face shortage of time in completing its research reports.
Research philosophy
It is been classified into two parts that is interpretivism and positivism philosophy.
Interpretivism philosophy induces the researcher in interpreting the components of the report and
integrates interest of the human into the study. It is mainly attached with philosophical position
in relation to an idealism and is been used for grouping together different approaches involving
phenomenology, social constructivism etc. It is an approach that rejects an objectivist view that
resides within an independent world of the consciousness (Wiek and Lang, 2016). Under this
philosophy it is essential for an investigator to appreciate the differences among the people.
Moreover, it usually emphasizes on the meaning and might employ different types of methods
for the purpose of reflecting different aspects of an issue. However, positivism philosophy means
as the factual knowledge that is gained through an observation involving measurements. In this,
the researcher role limits to collection of the data and an interpretation in respect to an objective
manner. This philosophy depends on the quantifiable observation which results to a statistical
analysis with an empiricist view which states that the knowledge stems from a human
experience. It contains an atomistic and an ontological view of a world comprising observable,
discrete and an event that interacts in determined, observable and the regular manner in an
effective and efficient manner.
With respect to this research study, an investigator will be using interpretivism philosophy
that helps in integrating components of the human interest in the study and allows for making the
qualitative study in an effective manner.
Data collection
Show different steps of the systematic review process- The major different steps with the
systematic review process starts with identifying of the research question that is what the
research problem is. Further it includes the analysis of inclusion and exclusion criteria. After

that it includes the researching for the study and then extracting the data for the analysis of
the data relating to the research problem (Attia and Edge, 2017).
Inclusion/ exclusion criteria- the inclusion criteria include the characteristics which are attached
to the research problem and which need to be studied in order to complete the research in
successful manner. On the other hand, exclusion criteria are the one which includes those
characteristics which disqualifies the assumptions relating to the research study.
PRISMA Diagram- this is a diagram which is helpful for depicting the flow of information with
help of different phases of systematic review. This diagram helps in mapping out the number
of records which are identified for the research topic and include and exclude all relevant
information.
Figure: PRISMA diagram.
(Source: PRISMA diagram. 2020)
Data can be collected or gathered by using two sources that is primary and the secondary
method. Primary sources of gathering data and information is concerned with first or fresh
information that is directly obtained from the participant by way of questionnaire and personal
interview. On other side, secondary sources refers to collecting an information or the data from
an already published sources that is books, articles and the journals for presenting reliable and
the valid data.

In this report, scholar will be using primary as well secondary sources by way of structuring
questionnaire, interview, survey, books articles, journals and internet in obtaining the useful and
reliable data.
Data Analysis
Data can be analyzed by using two methods that is thematic analysis and SPSS. Thematic
analysis referred as the most common form of an analysis within the qualitative research. It
mainly focuses on determining, assessing and interpreting the patterns of the meaning in the
qualitative data. On other note, SPSS is seen as the statistical software that is used by several
scholars for analysing the complex data in order to assess the survey data and the mine text data
so that they could be able to get most out its research projects. It is the method that is suitable in
making quantitative study because it involves application of the statistical tools such as
regression, correlation etc. for making an analysis and testing the hypotheses in an accurate
manner. This helps in gaining more and more accuracy and reliability within the study as it
includes employing of the mathematical tools for analysing the numerical elements of the study
and generating the results accordingly.
For the thematic analysis the major step followed is the first the data was collected then
after the observation they were converted into percentage and then the data was depicted with
help of chart and graphs. Thus, after that the graph and charts will be analysed and the data will
be interpreted with help of literature review as well (Ørngreen and Levinsen, 2017).
In this research report, thematic analysis will be used that helps in making different
themes in a set pattern in relation to assessing current trend of beauty market and the factors for
increasing sales and profits of the company.

CHAPTER 4: FINDINGS & DISCUSSIONS
Theme 1: Factors that drives the demand for the present herbal beauty and the salon product
Graafland (2017), reviewed that herbal beauty products means as the beauty products that
possess a desirable physiological procedure like smoothing, enhancing, smoothing appearance
and the conditioning properties due to their herbal related ingredients. Such product are counted
as chemical-free and contains only an extract which are made of leaves and the plant roots.
Globally, consumers prefer a herbal beauty product that includes skin care products, make up
items, hair care and the others. Market share of herbal items has consistently rising in
comparison to the synthetic products. Ismail and Mohd Mokhtar (2016) Stated that when the
customer expect that in future the price off the goods will fall, then in the present time, they stop
of limited the part of that consumption goods so that it will not affect the overall purchasing in
near future. So when the demand is changes due to the factors other than price, it is fore sure that
there is a shift in the whole demand curve and thus, the demand of the goods, is actually
determine by the number of factors.
Moreover, Van Nguyen and et.al. (2020), analysed that herbal products work in a better
way instead of synthetic products as it does not contain irrelevant fillers or the irritants in
comparison to the artificial beauty range of products that could make hair and the skin clearer but
in long run it causes damage. As per the forecast made the market of the herbal beauty industry
is expected as highly growing reaching to $120 billion by the year 2024, expanding at robust
CAGR over a forecast period that is 2017–24. A rising healthcare awareness in the customers or
people are likely to be expanded in an overall market. Thus, organic products considered as the
safest alternative treatment for the hormone replacement and neurological therapy for emotional,
mental and the behavioural disturbances. Herbalism is reflected as the growing trend and leads to
encouraged growth of a herbal supplements which helps in enhancing an immunity, boosting
energy level, cognitive functioning and fitness or reducing stress.
Ismail and Mohd Mokhtar (2016), stated that growth of the organic products is been
driven by increased number of the well-travelled consumers and increasing an inclination
towards its enhanced appearance around the world. Further, Aloe-Vera as the indicator driving
growth of market because it provides same kind of medical benefits in comparison to artificial

beauty range with respect to a treatment of the skin and do not irritate skin that synthetic
products does. The regulator bodies are more focused towards creating an awareness among
customers with regard to an ingredient of product that mainly focuses on labelling of such type
of product.
For example- In the year 2010, food and the drug administration planned for issuing
novel regulations in relation to sunscreen. This has been done for implementing new types of
labelling techniques for clearing confusion relating to the quality of the sun prevention factor
among consumers. Herbal products also witnessed an increased use of nano-particles in sun care
and the beauty range that enhances quality of cosmetic product.
Theme 2: Factors for sales and profit maximization
Worm and et.al. (2017), represented that there are several factors which affects the sales
and profitability of the business that involves economic state, advertising, substitutes, relative
costs, Economies of scale, management, price discrimination, exchange rate. Growing economy
reflects increased disposable income of the consumers that increases demand for majority of the
products and this in turn rises the profitability of the firm. Lawrence and et.al. (2019), viewed
that in case the firm is not efficient dynamically then an overtime cost would be increased.
Therefore, with an increase in the cost profits of the firm reduces as the per unit sales profit
margin will be very less. In case the company can discriminate its prices, it would be seen as
more and more efficient. This includes charging of the different prices for a same good so that an
entity could charge a high price to such products whose demand is inelastic. A decline in an
exchange rate results an export as cheaper to the foreign buyers. Thus, due to this firm could sell
more and choose to have higher profit margins. However, if the company imports the raw
material then depreciation leads to increase in the production cost and this in turn makes the sales
more expensive with lower profit earnings.
It has been assessed by the Balasubramanian (2017), that there exists a positive
relationship between the demand of the herbal product and its sales & profitability. Increase in
demand for a product results to increase in the revenue and the profitability of an entity. This
means that higher demand results in higher earnings as more sales will be attained which in turn
increases profits of the firm. However, on other state, low demand means as lower sales of the
company and lower the sales, lesser profits will be earned by the firm. Therefore, in order to be
successful, corporation must seek for increasing the demand for its products by way of huge

investment in promotional tools and developing effective competitive strategies with producing
differentiated goods so that higher profitability can be gained with that of higher sales.
Possible factors for demand in general
In the words of Ismail and Mohd Mokhtar (2016) the major factors leading to demand of
herbal and beauty product is the price level. This is a major factor because if the prices of the
product will be low then the demand will be high. In contrast to this is the price of the goods and
services will be high then the demand will be low as people will not afford to buy the product at
high prices. In contrast to this Perry, Rahim and Davis (2018) states that another major factor for
demand is the availability of the substitute product.

CHAPTER 5: CONCLUSION & RECOMMENDATIONS
Conclusion
From the above, it has been concluded that in order to develop new business, company
should keep determine the factors that helps to drive the business and its growth. In the same
way, through literature review section, it has been concluded that taste and preference, income of
people, advertisement expenses are some of the common factor that affect the sales or demand of
a business in positive as well as negative manner. Further, this section also concluded that the
design of premises and its interior also affect the overall demand of customers. Also, if company
promote their business through best advertisement, then it will definitely help to enhance or grab
attention of many customers. And also, to earn profit, company have to offer additional services
in their existing firm that assist to draw attention of many customers towards it. Along with this,
study concluded that both profit maximization and demand are positively related to each other
because when demand increases, sales is also increases.
Also from the literature review, it has been concluded that demand for the services highly
depends on income of people. Greater or higher the income of people, higher will be demand for
the goods and services. On the hand, lower the income results in lower demand for the goods
because it reduces the purchasing power of an individual or person. In the same way, this is also
supported by the data analysis section that if the person has a lower income, then they are nit
ready to invest to purchase the product and this in turn affect the demand. On the other side, it
has been concluded that if the company provide the product at cheap rate with better
advertisement then, it lead to affect the business profit. Along with this, this in turn help tto
maximize the revenue of a company and increases the market share as well.
In addition to this, it has been concluded that there are some factors which also affect the
demand such that if the ambiance of the company is good and attractive then it will affect the
demand of customers. Therefore, it is also supported in the data analysis section that by adding
the music, lightening and attractive colors in the salon will also assist a business to attain an edge
in the competitive market. Further, through the literature review, that with an effective
advertisement and sales promotion, the demand of the company’s product is increases and this

in turn assist to increase the brand loyalty. Therefore, through the data analysis, it has been
concluded that the business must win the trust of its customers by offering good quality services
and must satisfy their needs and wants as it will not only help in retaining old customers but will
also help in attracting new customers.
Also, from the study it has been concluded that, qualitative study has been used by the
researcher which helps to analyzed that sudden change in the taste and preference act as an
important and crucial factor to determine the demand for services. also, using the Interpretivism
research philosophy that assist to interpret the key element of the study in better manner. Further,
through the study it has been concluded that through secondary research of data collection
methods, researcher concluded that by using all the secondary research books, articles and
journals, researcher get all the answers in order to meet the define aim and objectives. Further,
using thematic data analysis, researcher also concluded by using different themes which further
assist to interpret the results in better manner.
In addition to this, through data analysis section, it is interpreted that salon can
easily establish the brand image of in the business and it is possible when it provide best quality
of product and services at affordable price. Therefore, with the help of good advertisement and
sales promotion, company easily promote their services at reasonable price. This is also
supported under the literature review section this is consider one of the most effective factor for
profit and revenue profit maximization as well. hence, it can be stated that when the salon can
shift towards the online business then it will increases the product selling and as a result, it
increases the revenue of a business as well. Moreover, all the employees must coordinate and
cooperate with each other to ensure smooth working of the salon because team work reduces
confusions and conflicts in the workplace which ensures greater productivity and thus increased
sales. It is also the duty of salon owner to make sure that the employees are adequately paid and
they must be motivated timely to ensure good working environment within the workplace.
Moreover, study also concluded that by using qualitative study, researcher concluded that
the hairdressing and beauty treatment industry is also facilitated the services and keep increases
as per last many years. That is why, investing in this business will help a company to meet the
demand of customers and offer the best variety of products at minimum cost. As it is analyzed
that majority of the people are suffering from many skin issues and that is why, offering herbal

and organic product will help them to cope up their skin issues and also increases the
profitability. Study also concluded that herbal products work in a better way instead of synthetic
products as it does not contain irrelevant fillers or the irritants in comparison to the artificial
beauty range of products. That is why, most of the people only prefer these products over
artificial and cosmetic products.
Overall, it has been concluded that attitude of customers, taste and preference play an
important role to increase the demand of customers which in turn assist to increase the profit.
Also, it can be stated that the salon can sustain a brand image only when it provide a good
quality of product in order to meet the define aim. Reduced operational costs is an important way
to increase profits and it can further help company to utilize those funds in a more effective
manner so that it creates value for the organization. The salon must offer discounts, rebates and
other exciting offers to its new customers so that they can be retained by the company.
Recommendations
 It is to be recommended that company should start offer additional services such that they
offer a bulk offer to their customers which help to attract range of customers and increase
the demand as well.
 It is also recommended that with the increase demand of organic product, company
should label their product and then sell it to market so that it will help to leave positive
impression upon customers.
 Company should also use modern form of advertising promotional strategies in order too
attract customers and increase their overall profit and financial performance.

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