Developing a Coherent Business Model for a Growing Nail Bar Start-Up

This assignment presents a business model for a new Nail Bar, utilizing Alexander Osterwalder's framework. It details the Nail Bar's mission, vision, and objectives, emphasizing unique services to combat market competition. The analysis includes market trends, competitor analysis (Ivi beauty, Ora nails, Coco Nail Bar, WAH London), and a comprehensive marketing mix (product, price, place, promotion). The business model highlights team management, financial needs, and strategies for launching the organization effectively. The value proposition focuses on customer prioritization and unique service offerings to achieve high customer retention and revenue generation for future expansion. This document is available on Desklib, a platform offering study tools and resources for students.

Growing Nail Bar: Towards a Coherent Business Model 0
Title: Growing Nail Bar: Towards a Coherent Business Model
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Growing Nail Bar: Towards a Coherent Business Model 1
Executive Summary
For launching a new business in the market it is important to understand a number of aspects to
prepare a well-planned out business model for the organization. The business model helps the
organization by providing direction in the various activities that are importance for setting up the
business in the market. The business model facilitates detailed information about various aspects
like the market, customers, latest trends, technologies and many other things. In this assignment,
the business model has been formulated for a Nail Bar that is entering the market with a number
of unique services that will help the organization in fighting the tough competition that is present
in the market. The business model by Alexander Osterwalder has been utilized in this
assignment.
Contents

Growing Nail Bar: Towards a Coherent Business Model 2
Introduction......................................................................................................................................4
Nail Bar Mission, Vision & Objectives...........................................................................................5
Mission........................................................................................................................................5
Vision...........................................................................................................................................5
Nail Bar Objectives......................................................................................................................5
Value Proposition........................................................................................................................6
Market Analysis...............................................................................................................................6
Competitor’s Analysis.....................................................................................................................7
Organization Marketing Mix & Competition Strategy....................................................................9
Marketing Mix.............................................................................................................................9
Competition Strategy.................................................................................................................11
Marketing Objectives & Strategies................................................................................................11
Marketing Objectives.................................................................................................................11
Segmentation.............................................................................................................................12
Positioning.................................................................................................................................13
Targeting....................................................................................................................................13
Important Aspects of Launching an Organization.........................................................................14
Team Management....................................................................................................................14
Financial Needs.........................................................................................................................15
Other Important Approaches.....................................................................................................16

Growing Nail Bar: Towards a Coherent Business Model 3
Nail Bar Business Model...............................................................................................................17
Conclusion.....................................................................................................................................21
References......................................................................................................................................22
Appendix........................................................................................................................................27

Growing Nail Bar: Towards a Coherent Business Model 4
Introduction
A business model is a plan that is formulated by an organization to strategize the
processes and activities of an organization to generate profits. It is a detailed approach that
describes the various important factor that has to be implemented by an organization for the
purpose of making revenues. The business model helps the organization by providing them
direction for the different practices that have to be executed in an organization. It is a step by
step approach that helps the organization in understanding the marketplace and the competitors,
so that the organization can operate easily in the market. A business model for a start-up business
is different some the business model of an existing organization. A business model is based on
the value proposition of an organization, as it displays the various products and services that the
organization is offering to the customers or clients. Through the value proposition, the
organization is able to differentiate from its competitors. The business model for a new business
has to include the startup cost and the other financial expenses that will be needed by the
organization to enter the market with a bang. The Nail Bar is going to be launched in the market
and this requires a set of strategy that helps in setting a wide stage for the organization’s launch.
The business model for the Nail Bar is a plan of an organization that is formulated in accordance
with the objectives of an organization that will further help the organization in generating profits.
A business model helps in the complete planning of an organization’s products, expenses and to
deal with the existing competition in the market. For the launching of the Nail Bar, it is
important that the product fulfills all the needs and desires of the customers, also it should be
able to utilize all the resources effectively for building a brand image that is ahead of its
competitors. The idea of opening a Nail Bar is cool and effective, but the organization needs a
business model for a startup, as this will create the path for the organization to start the business

Growing Nail Bar: Towards a Coherent Business Model 5
in a systematic manner and to earn customers, clients and profits. A new startup business also
requires a number of stakeholders, the business model will facilitate effective strategies to handle
and manage the stakeholders too.
Nail Bar Mission, Vision & Objectives
Mission
The mission of the Nail Bar is to provide its customers with incomparable services, so
that the customers visit the salon more often. The Nail Bar wants to pamper their clients with the
latest trends of beauty and this is the core value that is instilled in the organization’s team
(Anggaredho and Rokhim, 2017).
Vision
The vision of the Nail Bar is to provide women with beautiful natural nails. The Nail Bar
believes in providing realistic beauty and the methods that are utilized to attach the artificial nails
are well-advanced and these techniques will provide natural looking nails.
Nail Bar Objectives
The main objectives of the organization Nail Bar are-
 Stepping in the market by creating huge awareness about the brand on the targeted
audience. The main aim of the organization Nail Bar is to enter the market with a bang
and to attract the maximum targeted customers.
 A clear differentiation should be created between the Nail Bar and its competitors,
highlighting the uniqueness that the organization Nail Bar is offering to its client. There
are a number of competitors in the market who have carved a strong niche for
themselves, the only approach that will help the Nail Bar is providing services that are

Growing Nail Bar: Towards a Coherent Business Model 6
better than the competitors and the organization have to display this differentiation to the
targeted customers (Benijts, 2013).
 The organization should be able to generate high revenues, so that the next outlet of the
Nail Bar can come into the market in the next 6 months. The organization aims at
opening a total of three outlets in the next 12 months (Chhetri, Dash and Pottenger,
2017).
 This is the most important objective for the organization. The organization wants to
achieve a high customer retention rate, as all the other objectives revolve around the
customer. For this, the organization aims at providing its customers with great customer
expectations.
Value Proposition
On the basis of the mission, vision and the organization’s objectives the value proposition of
the organization Nail Bar is “We value you for our unique services because you are worth it”.
According to this value proposition statement, the organization Nail Bar has placed the main
focus on the customer and have targeted them with an approach that states that the customer is
the priority of the organization Nail Bar. This value proposition also highlights the unique
services that the organization is providing and is differentiated from the competitors’ approaches.
Thus, the value proposition of the organization should be well-throughout and this will help the
organization in attaining a bigger market size (Casadesus-Masanell and Zhu, 2012).
Market Analysis
There are a number of well-established organizations that have created a niche for
themselves in the market. This has increased the customers demand and needs with the new
organization and which has further elaborated the size of the target audience. The target audience

Growing Nail Bar: Towards a Coherent Business Model 7
of the Nail Bar salons has some specified desires that are all related to the innovation that the
organization is offering to the customers (Garcia et al., 2015). In the current market, the nail care
has increased, so it is very important for the new organization to facilitate the targeted audience
with products that are better in comparison to its competitors. This is the strategy that will help
the organization to stay ahead of its competitors and at the same time increasing the size of the
target market of the organization (Ebel, Bretschneider and Leimeister, 2016).
A number of different trends have been introduced in the market in the nail care industry
and this has also helped the organization in formulating better positioning strategies too.
According to these new trends, the organization has to update the level of innovation in the
organization to provide customer satisfaction. The Nail Bar is a service provider organization
and the one aspect that will set the organization apart from its competitors is the customer
satisfaction. According to the latest market trends and this utilization in every organization, it is
important for the Nail Bar to enhance their abilities of customer service and offer the customer
with top notch services. The Nail Bar should implement a follow up call system for all the
customers that should be conducted at equal intervals. This is a very successful market trend that
has helped many organizations in creating a huge customer base and also in achieving loyal
customers.
The beauty industry is a world that does not get affected by the low economy. People
continue to spend their money on beauty products and the organization Nail Bar thus should try
to engage this aspect of the customer into their services and make a good use out of this
opportunity (Kim and Min, 2015).

Growing Nail Bar: Towards a Coherent Business Model 8
Competitor’s Analysis
The competition in the nail care industry has intensified in the last decade. For the
organization Nail Bar, it is going to be a very big challenge to create a strong foundation in the
market, as the currently available organization has a strong and loyal customer base. It is very
tough in the current market of the nail care industry to enter and survive. The organization Nail
Bar is targeting the customers with the differentiation strategy and in that relation, the
organization is offering its customer more services that are not restricted only to nail care (Lai,
Zin and Yahya, 2014).
The organization Nail Bar is offering the customers with services that include manicure,
pedicure and fixing artificial nails. In addition to this, the organization is also offering its
customers with unique nail accessories, attractive women’s accessories and also a training course
for the budding nail artists. The other service that the organization is providing its customers is
they are offering Henna tattoos and design services too. The organization has hired an expert in
the Henna designs. All these extra services are not being provided by any of the other
organization in the market. The organization has the main focus on customer retention, but they
also take into consideration the importance of employee retention, thus the customer welfare
packages that the organization has decided for their employees is better than their competitors.
The main competitors of the Nail Bar in the United Kingdom are-
 Ivi beauty and Ora nails- The organization is a beauty salon and provides its visitors with
services related to nails, waxing, facials, threading, and massages. The organization does
not specialize in any one particular service.

Growing Nail Bar: Towards a Coherent Business Model 9
 Coco Nail Bar- The organization, though provides services of nail treatment, but their
main focus in on the liposuction treatments, waxing and CACI synergy (Harris-Roberts et
al., 2011)
 WAH London- This organization is the biggest competitor of the Nail Bar. The
organization main focus is on the nail treatments, manicures, and pedicures. The
organization has also created a huge customer base, mainly through their pop-ups in the
entire city over the years. Also, the organization provides a wide variety of nail styling
that has helped the organization in attracting customers. The organization also provides a
master class to the budding nail artist.
The organization Nail Bar is also offering nail treatments that are in trend and also utilizes
the different styling methods that have been inspired by the different cultures throughout the
world. The one aspect that will be helpful for the organization is that they will also be providing
nail and women’s accessories that none of their competitors is offering. Also, the services of
Henna tattoos and design are very unique and there is only a handful of the organization in
London who offer this service (Lindgren, 2012).
Organization Marketing Mix & Competition Strategy
Marketing Mix
The strategies that have been selected by the Nail Bar organization for the launch of the
organization are associated with the four marketing mixes, that include-
 Product
Being a nail care salon, the organization Nail Bar is offering its customers with a
wide range of services. Some of them are a manicure, pedicure, nail treatments, artificial
nails, nail accessories, women’s accessories, learning courses for aspiring nail artist and

Growing Nail Bar: Towards a Coherent Business Model 10
Henna design services. The organization has selected all these services to create a
differentiation with their competitors. This is due to the aggressive and high intensity
competition that exists in the nail care industry and the unique services of the
organization will help in building a strong foundation in the market (Lindgren and
Bandsholm, 2016).
 Price
As the organization Nail Bar is stepping into the market it is very important for
the organization to select a pricing strategy that fulfills the organization’s objectives and
also help in attracting more customers and creating a shift in the customers from its
competitors. The best pricing strategy for Nail Bar is economy pricing strategy. Under
the economy pricing strategy, the organization sets the price of their product and service
which are minimized and this leads to earning small profits. This pricing strategy is
beneficial for an organization who is stepping into the market as the main focus of the
new organization is to gain customers and this pricing strategy is very effective in
increasing the market size of the organization.
 Promotions
The organization Nail Bar has to function aggressively in their promotion
approaches. The organization has to create a brand awareness and for this, the
organization has to utilize multiple methods of promotions. The organization has to
indulge in advertising, sales promotion and online marketing. The organization Nail Bar
has to aim at enticing the customers to visit their salon on the launch day and this can be
conducted by offering them special discounts and effective packages. The organization
should also indulge in direct marketing. To handle the promotion practices, the

Growing Nail Bar: Towards a Coherent Business Model 11
organization has to divide their approaches between pre-launch promotional activities and
post-launch promotional activities (Heo and Kim, 2016)
 Place
The location of the Nail Bar also places a very important role in the success of the
organization. The organization has to select the place that will be perfect for offering the
services to the customers. The location of the organization should be selected on the basis
of the crowd in that area. The targeted customers of the organization should have the
facility of easy access to the services of the organization. In this aspect, it is important
that the organization selects the most appropriate location to conduct their business. The
Nail Bar thus, has to follow these guidelines while selecting a location for the
organization (Mulyana, Daryanto and Purwito, 2018).
Competition Strategy
The organization Nail Bar has to implicate the better strategies in their marketing mix
elements that are better than its competitors. The competition strategy has the main focus on
building a differentiation between the various competitors and the Nail Bar. This differentiation
will help in displaying the attributes of the Nail Bar organization in front of the targeted
customers. The competition strategy also includes the utilization of the various platforms
effectively to stay ahead of the competitors due to the larger market the organization is catering
too (Kim and Jeong, 2014).
Marketing Objectives & Strategies
Marketing Objectives
The marketing objectives are different from the organizational objectives, but the main focus
of the marketing objectives is the ultimate fulfillment of the business objectives of an