Business Plan: Organic Beauty Parlour in Auckland, NZ - Analysis

This report presents a comprehensive business plan for an organic beauty parlour, focusing on the Auckland, New Zealand market. The plan includes a literature review analyzing trends towards organic beauty parlours, customer decision-making factors, and competitive advantages. It incorporates a PESTLE analysis of the Auckland environment, identifies potential customers and stakeholders, and assesses competition and marketing strategies. The business idea section details the parlour's services, vision, mission, and unique selling proposition (USP), emphasizing organic products and excellent service. The report also covers key stakeholders and critical success factors. The student has analyzed the market, competition, and developed a detailed business plan that can be used for starting a business in the organic beauty parlour sector.

BUSINESS PLAN
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TABLE OF CONTENTS
Literature review Theme 1: Trends towards the organic beauty parlour in Auckland, New Zealand..3
Business IDEA.....................................................................................................................................6
Description of the business idea......................................................................................................6
Vision and Mission of the firm........................................................................................................7
USP:.................................................................................................................................................7
Key stakeholders..............................................................................................................................7
PESTLE analysis of Auckland, New Zealand.................................................................................7
Potential customers and stakeholders...................................................................................................9
Analysis of competition and marketing strategies..............................................................................11
Marketing mix....................................................................................................................................12
Critical successive factors:.................................................................................................................13
REFERENCES...................................................................................................................................14
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Objectives
 To assess the trend towards organic beauty parlour in New Zealand.
 To enhance profit margin by delivering the quality services to the customers. To build and sustain competitive position in the field of parlour.
Research questions
Q.1 what is the trend towards the organic beauty parlour in the North Island of New Zealand?
Q.2 assessing the impact of quality services on the customers decision making?
Q.3 which kind of factors helps company in gaining competitive edge over others?
LITERATURE REVIEW THEME 1: TRENDS TOWARDS THE ORGANIC
BEAUTY PARLOUR IN AUCKLAND, NEW ZEALAND
Introduction
Various research papers that are relevant to organic beauty parlour will be analysed in this section. The
literature will be critically analysed and gaps in the literature will be identified. Literature that are relevant to
the objectives of the research are given in the sections below.
THEME 1: TRENDS OF THE ORGANIC BEAUTY PARLOUR IN AUCKLAND, NEW ZEALAND
According to the viewpoints of Cretu and Brodie, (2007) customers in the Auckland are conscious
regarding personal health and hygiene. Gradually, customers demand shifted from chemical products to the
organic one. According to Ashby and Webley, (2008) alone in 2011 in the New Zealand, market share
towards the organic hair care and cosmetic are increased by 32.1% (Organic Personal Care Products
Market: Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2012 – 2018, 2012).
Further, mentioned authors also stated that sales revenue of the organic beauty parlour of New Zealand will
grow by 9.9% from the period of 2012 to 2018. As per views of Jones, (2008) this aspect clearly shows that
there is a growing trend for organic beauty products in New Zealand. However, there are no standards
framed by the government authority for ensuring the quality of such organic beauty products. Hence, due to
this people hesitate to procure the services of organic beauty parlours.
Schafer, (2008) stated in the study that customers prefer organic beauty products in
comparison to chemical based creams, shampoos, lotion, and conditioner. Moreover, organic
products made from plant based ingredients are good for skin as they does not have any negative
impact on human body. This is the reason due to which large number of customers are preferring to
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use organic beauty products. However, on the critical note Roy & Hoque, R. (2015) found that
parlours which make use of organic products have responsibility to perform safety and efficacy test
by their own. Moreover, each beauty product does not suit to the skin of all people. So, if wrong
product will be referred to the customer then it may negatively affects their skin. Moreover, skin of
some people are highly sensitive in nature. Due to this reason it is very important to refer
appropriate beauty product to the client.
According to the Li, (2009) demand for organic beauty parlours and products rising with the
higher rate. Moreover, organic products are eco-friendly and does not place any bad impact on the
skin and beauty aspect of the individual. Organic products that are referred by the firm to customers
are highly safe. Sales of organic product will incline by $7.6 and $13.2 billion at the end of
accounting year 2018 (Santoso. T., 2013). Customers of Auckland have good attitude towards the
organic beauty products. Hence, there are high level of earning and growth opportunities are
prevailed in the north Island (Auckland) of New Zealand.
Theme 2: Factors that affect the decision making aspect of customers
Skin products are used to increase beauty of an individual as they make fair colour of human
being. Customers make decision in relation to making use of the services on the basis of research
outcome about product and pricing (Paulose, 2011). Customers of parlours primarily make
comparison of the products which are used by the as compared to others. Customers are highly
priced conscious in nature and make purchasing decision after evaluating such element (Garrow,
2010). Hence, it can be assumed that by considering price factor parlour owners purchase organic
beauty items. However, on the critical note, (Lee, 2006) said that lifestyle is one of the main factors
which have high level of impact on customer decision making. Thus, by considering lifestyle of an
individual product must be offered to him.
Customer’s decision making takes place through several stages which are considered by the
customers for the purpose of determining effectual framework. Individual primarily assesses the
need in relation to making use of the services like parlour. In the second stage of the decision
making process an individual set some criteria or parameters that are used by him to make purchase
related decisions in respect to organic beauty items. After determining criteria one identify the
alternative organic products that are available to him in respect to the specific need. There are many
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products that are available to the individual as an alternative and they can pick any alternative at
their own discretion. It must be noted that one make comparison between the services that are made
available by different parlours in order to select best of them. Thereafter, on the basis of product and
service factor individual makes selection of the parlour. In this way, customer makes decision about
the products and services which they need to use in order to get better results.
Theme 3: Factors assists in building competitive position
Customers prefer to make use of the services of parlour which is highly unique or
innovative. Thus, by making use of innovative products' parlour can offer effectual beauty treatment
to the customers. Customers with passage of the time period are giving due importance to the cost
then quality while making purchase decisions. Thus, organic parlours must follow a strategy under
which they must offer product and services at very low price to the customers. This is because by
doing so they can compete with competitors in best.
Spoonley, and et.al., (2014) stated that Auckland of New Zealand has high proportion of the
people who work as professionals. It can be said that spending power of people is high in the
mentioned city. Thus, it can be said that local people would spend more on taking services of
organic parlour. Those individuals who are operating organic parlour needs to ensure that they are
making available services of best quality at appropriate price.
DISCUSSION
It is identified from the literature that market share of organic beauty parlours in New Zealand is 32.1% and
the projected growth of the sector is 9.9% (Transparency market research, 2012). This is expected
because with passage of time more demand for organic beauty items increased (SAWYER, 2005). There
are higher number of professionals that are residing in the Auckland and it is expected that demand from
their side for organic beauty products will increase. Hence, on this basis projected growth rate of organic
beauty items is assumed to be 9.9%. Thus it is evident that there is a huge opportunity for organic beauty
parlours in Auckland. It is also seen that sales of organic food products will increase by the year 2018.
Customers of New Zealand are conscious about price and quality of the product. Customers also believe that
organic products have minimal effect on the skin of the individual. Effective strategies can be formulated by
the information gathered on market share and customer preference towards purchasing organic food
products. The strategies developed will help the new business venture to gain a competitive advantage.
Conclusion
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By making analysis of secondary data that is collected from varied literature it has been
identified that in Auckland of New Zealand less number of parlours are available which make use of
organic products. There is no parlour in the North Island of New Zealand which offer
complimentary breakfast and diet plan to the customers. Hence, this is the big opportunity and one
can start its own venture in order to capitalize available opportunity?
BUSINESS IDEA
Description of the business idea
Entrepreneur has generated idea in relation to commencing the business of organic beauty
parlour namely in the North island (Auckland) of New Zealand. It is identified that now customers
prefer to take services from beauty parlour that make use of organic products (Beauty and Personal
Care in New Zealand. 2016). Varied services will be provided to the customers in the premises like
such as Spa, manicure, pedicure, massage, make-up and other beauty treatments. For this, the
entrepreneur will make use of environment friendly products at its premises in order to fulfil needs
of the customers.
Organic product is one of the main aspects which will help business entity in attracting the
customers who prefer to make use of eco-friendly products. In this regard, by offering the extra
services like priority in terms of appointment to the professionals business entity can attract large
number of customers. Apart from giving services to the customers suggestions will also be given to
them in respect to way in which they can maintain fairness of their skin. Thus, by doing so in better
way services can be given to the customers.
Vision and Mission of the firm Vision: To become a leading organic beauty parlour of Auckland, New Zealand.
 Mission: To offer varied services to the customers under single roof in order to meet their
needs.
USP
Uniqueness and innovation are the two key aspects that on which one give entire focus while formulating
strategies for marketing in an organisation (Billore, 2010). People in Auckland are preferring to use organic
products relative to beauty products that are prepared by using chemicals. Further it is find out that with
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passage of time period relevant parlour numbers are increasing in the Auckland. Hence, it can be said that
those who newly enter in the market are facing tough competition from firms that already exist in the market.
In order to stand out in the market innovative and unique strategies will be proposed by Organica for gaining
competitive advantage. The tag line for ORGANICA parlour will be ''Your beauty trend begins here''.
This business idea is to provide natural skin treatment and personal care to the clients. Main focus will be
one providing excellent services to the client.
Key stakeholders
In order to attract and retain customers it is very important to offer better quality of services to the
customers because by doing so they can be retained in the business (Gaitz, 2015).The customers and the
suppliers of will be the key stakeholders of the business firm. The main stakeholders of ORGANICA
AYUR’S BEST parlour will be clients because growth and success of business firms are highly influenced
by the satisfaction of the customers from the firm services. Further, suppliers of the organic beauty products
to the customers will also be the major stakeholders.
PESTLE analysis of Auckland, New Zealand
Political: In New Zealand political system is excellent. Government in the mentioned nation
is stable and due to this reason there is a congenial environment for the business firms in the
nation. Current government is focusing on the growth of those areas or sectors that have
great strategic significance for the nation economic point of view. New policies are prepared
in order to ensure that entrepreneurs can easily open their business in the mentioned nation
without any problem. Hence, it can be said that political environment of New Zealand is
favourable for the business firm.
Economical: Economic environment affects growth rate of the business firms because
availability of finance greatly affected by the mentioned environment. If there will be
stability in the economic environment then growth rate of the business firms will elevate. In
order to evaluate economic condition of the New Zealand various factors can be evaluated.
In current time period rating of economic freedom is 91.4 which is very high (Hogeveen,
Huijps and Lam, 2011). It is expected that this rate will further elevate in upcoming years.
Hence, economy of New Zealand is in better condition.
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Social: It is very important to understand social environment of the nation. This is because
each nation people have attitude, value system and thinking towards specific thing. It is the
attitude and like and dislike towards the product that determine the extent to which product
will be accepted by the people. People are open minded in the New Zealand and they does
not have any sort of resistance towards the specific product (Winnington, 2012). Hence,
product that is offered by the firm will be easily adopted by the people.
Technological: New Zealand is highly developed country in terms of public education,
quality of life and literacy rate. By taking into account such aspect business organizations
operated in New Zealand promotes their services and products by placing advertisements on
social networking sites. Moreover, people of New Zealand makes online comparison of the
products or services before making any decision. This aspect clearly shows that high level of
technological advancement takes place in New Zealand. By using such convenient means of
promotion business entity can develop awareness among the potential customers regarding
the organic beauty services offered by them.
Legal: Legal environment in the New Zeeland is business friendly in nature. Rules and
regulations are less complicated which make it easy for an entrepreneur to take permission
for opening a business in New Zealand. It can be seen that rating of labour freedom,
business freedom is 85.9 and 91.4 (Rupar, 2007). Hence, New Zealand is the best
investment choice that is available to the investors.
Environmental: Government of New Zeeland is making tough efforts to ensure that
environment of the nation will remain safe from harmful pollutants by taking many steps
that lead to reduction in carbon emission (Barrington, 2008). However, rules and regulations
that are prepared in respect to environment protection does not severely affects the business
firm.
On the basis of entire analysis of the business environment it can be said that making investment
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in the New Zealand is very safe as economic and political conditions are supporting the business
firms. There is low risk and high certainty in respect to economic environment in the mentioned
nation business environment.
POTENTIAL CUSTOMERS AND STAKEHOLDERS
Potential customers for the business will be professionals who are operating in different fields.
Varied services like manicure and pedicure will be provided to these customers at different rates.
Services will be available to the customers according to their requirements. Some stakeholders of
the business are as follows. Customers: The main priority of the business firm is to satisfy needs and wants of the
customers on time by making available required products and services to them. In order to
maintain good relationship with the customers some specific rules and regulations will be
prepared. These rules will be strictly followed by the employees of the organization. In order
to ensure this manager will keep an eye on the way in which employees communicate and
tackle the customers (The future of beauty. 2016). In this way strong relationship will be
maintained with the customer as stakeholders. Creditors: These are those who provide debt to the firm which is used to finance business
operations. Creditors always wants receipt of payment from the firm on time. For a new start
up is very difficult to obtain required amount of debt from banks. Hence, in case beauty
parlour failed to pay debt on time its image will be tarnished among the financial institute.
In order to ensure that banks will receive debt instalment on time strong cash management
strategy will be implemented at the workplace. By doing so cash outlay will be reduced in
the business. In this way, sound relationship will be maintained with the managers. Suppliers: Suppliers are also one of the main stakeholder of the firm. Usually, firm purchase
finished products or raw items from the suppliers on both cash and credit basis. Like banks
they also wants receipt of payment on time. Firm cannot afford to tarnish its relationship
with the suppliers. This is because there are few suppliers that make available products to
beauty parlours. If managers will not maintain close liaison with the suppliers then it will be
hard for the firm to obtain goods on credit basis. Hence, it is very important for the company
to maintain very strong relationship with the stakeholders. In this regard, owner of the
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beauty parlour needs to frame strong business strategy that support firm in managing
relationship with the suppliers.
 Employees: These are the one of the main stakeholder of the firm because without them
same cannot give productivity. Employees have lots of interests in the business firm like
they wants good salary and working conditions. For new start-up it is very difficult to give
high salary to the employees (Brinkerhoff, 2006). Wage rates that are in the market will be
considered for giving appropriate amount of salary to the employees. In order to ensure that
employees selected will consistently work in the firm strong culture will be developed at the
workplace. Under this good working conditions will be created at the workplace so that
employees remain satisfied from their work. Moreover, it will be ensured that managers are
behaving in proper way with the employees. This will minimise possibility of occurrence of
management and employees conflict at the workplace.
Mainly professionals will be target customers of the beauty parlour. It has been observed in past few
years in the New Zealand that demand for herbal products is increasing at fast pace. More and more
people intends to use herbal products instead of one that are produced by chemicals (Halpin, 2015).
Hence, by keeping in mind customer’s needs, wants and preferences it is decided that varied herbal
products will be made available to them at reasonable price. Consumer behaviour of the people is
changing at a fast pace and in terms of demand of herbal products new opportunity comes in
existence hence, this opportunity will be explored by the business firm.
ANALYSIS OF COMPETITION AND MARKETING STRATEGIES
In the first year, business unit will make following expenses:
Particulars Amount expected (New Zealand Dollar)
Beauty equipment cost 50000
Office expenses 3600
Rent of the premises 24000
Insurance 3000
Depreciation 2000
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Promotional expenses 12000
Maintenance cost 2000
Salaries of the personnel 8424
Licensing cost 218
Beauty products 12765.96
Furthermore, 1600 customers will be served by the entrepreneur for in the year. Moreover,
trend towards the beauty products in the North Island of New Zealand are increasing with the very
high pace. Thus, business entity will deliver eco-friendly services to the customers and thereby
fulfil their expectation level to the large extent.
SWOT analysis
Strength
The main strength of the New life skin care is
that it is offering vast product portfolio to the
customers. Basically services of the rival firm is
classified in to different categories like facial
treatments, body treatment, mani and pedi and
hair removal etc (New life skin care, 2016).
Hence, within single roof customers are
receiving varied services. This customer
satisfaction is the strong point of rival firm.
Weakness
Services are made available to the customers at a
very high price and it is major limitation of the
rival firm.
Opportunity
Demand for services provided by the firm
increases. Hence, it is major opportunity for it.
Threat
Many new firms enter in the industry that are
making available services at cheaper rate with
good quality.
Marketing strategies
First impression beauty parlour can do marketing of its products on the basis of price. This is
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because it is the price where rival firms are weak. They are providing high quality of services and
on this front firm cannot compete with the rival firms. Hence, First impression marketing strategy
will be based on the price not on quality. Marketing will be done through social networking sites
like Facebook. This is because more and more are spending their leisure hours on social site. Hence,
it is very easy to make people aware about the firm name and to promote word of mouth marketing
among the people.
MARKETING MIX
 Product: First impression parlor will offer organic products to their clients, its product portfolio
consists of spa packages, stylish hair cutting, hair coloring, massage therapy, skin care, facials,
pedicure, manicure, acne treatment and many others.
 Price: Penetration pricing is considered as a suitable pricing strategy, in which, initially ABC
parlor can decide lower prices to attract more and more audiences and after achieving a position
in the market, they can increase their prices to generate more return.
 Place: The parlor will be located in the City in Hamilton, Auckland. The reason behind selecting
that particular place is it is the fourth largest urban city of NZ.
 Promotion: It will use TV ads, newspaper advertisement, word of mouth publicity and social
media marketing strategy to encourage and promote their services to reach larger customers.
 Positioning strategy: Both Promotional and pricing strategy will be followed by First impression
parlor to develop a strong market position. In this, Parlor will offer best beauty treatment
through using sophisticated tools and professional specialists at an affordable prices.
CRITICAL SUCCESSIVE FACTORS:
Critical successive factors are those factors that contribute towards maximization of
competitive strength to reach success effectively. Quality of organic beauty products and services
and experienced beauty treatments are the critical successive factors for the selected business. In
such respect, ABC parlor will deliver best quality of beauty treatments, spa and other facilities that
will enable entrepreneurs to generate more customer traffic, which in turn, parlor will be able to
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