Business Development and Value Creation RadiantHerbs Case Study

1.1 Introduction - Strategic Growth and Market Position of RadiantHerbs in Cambridge

A business plan is the project that provides details the business goals, mission and vision and intends to accomplish them while considering both internal and external factors. The report will discuss on RadiantHerbs profile that provides herbal beauty salon services within UK. Nowadays are customers are aware of eco-friendly services that include organic salons. RadiantHerbs by establishing sustainability with salon business operations and marketing can contribute to promote corporate social responsible. The analysis of the firm will provide industry analysis by using PESTLE. Stakeholders’ analysis will include Porter 5 forces model, SWOT, generic strategies and balance score card. Stakeholder and marketing analysis will be done through stakeholders mapping, STP frameworks and marketing mix. Resource and capabilities will be accomplished through VRIO analysis and financial analysis using triple bottom line.

RadiantHerbs will promote eco-friendly choices at every step of their business. They can also improve waste management, lowering salon’s carbon footprints, and energy usage and make use of natural and chemical free ingredients within its products to promote organic services. RadiantHerbs will provide the best organic salon services and products within a relaxed as well as artistic atmosphere. They will be driven by wellness and stunning chemical free products. They company’s staff will be driven by dedication and wellness to make customers experience outstanding while reducing toxicity as well as improving health.

1.2 Company profile

Company name: RadiantHerbs

• Business type: herbal beauty salon
• Structure: RadiantHerbs will be listed as private limited firm that will provide organic hair salon services to its clients.
• Geography: RadiantHerbs will provide its services in highly visible locations of Cambridge, UK in both urban and semi-urban areas. The customers can also find their services on tourist places that will help the company to attract large number of customers by promoting organic salon services.

Company’s background

RadiantHerbs identifies that beauty; health as well as being sustainable conscious will help them to promote its business. The company will offer vegan, natural, organic as well as cruelty free products that will endorse a healthy life style. The firm believe is offering resorcinol, ammonia as well as PPD free products to their clients. The business will have dedicated team of experts and professionals with a goal for creating the sustainability within business. According to the data global market demand for organic hair products is going to rise at 7.1 percentage CSGR by the end year 2033 (Organic product market, 2023). The growing demand of organic products has forced RadiantHerbs to draw awareness of simpler, safer and latest natural products within their business. A large population of sustainable population in Cambridge will also contribute to the success of the business. RadiantHerbs will offer luxurious salon services to its clients through exclusive collection of organic as well as natural professional salon products and services. The firm will consistently invest in research and development programs to offer safest and high quality products to its customers. They will also provide best education to local community of sustainable beauty services offered by their professionals. They will be committed to their products being gluten free, vegan and cruelty free as well as free from harsh chemicals that can harm customer health ad skin.

1.3 Business model canvas

2.1 Industry Analysis

Pestle analysis

The beauty salon sector is a diverse that comprises more than just skin care and make up products and services. Pestle analysis will provide deeper insights of herbal beauty salon to grow in UK markets.

• Political: The beauty salon industry within UK is extremely regulated by the authority to make sure that products are safer for customers as well as to safeguard the environment. The sector is subject to a range of laws and regulations which governs the utilization of chemicals in beauty salons (Favoretto et al, 2022). Companies in UK are also facing new regulations as well as trade barriers. The laws play a vital role in shaping the business operations of herbal beauty salon RadiantHerbs. The company should also comply with various authorities to remain competitive.
• Economical: The UK economy has also faced major growth in recent year in salon industry. The increase in disposable profits as well as growing income of people has lead to the boost in needs for high and premium salon services. The sector is also facing challenges in high competition from both national and international firms.
• Socio-cultural: This factor plays an important role in shaping customer behaviour as well as preferences as they are majorly influence on the organic services within UK (Busch, 2023). The country has multicultural as well as diverse populations that lead to growing demand of more sustainable and organic products.
• Technological: This factor will play an essential role in RadiantHerbs growth and development. Advancement in research and development can lead to the launch of high performance as well as innovation in organic products. The business by using digital technology such as social media, e-commerce platforms can reach and engage with large number of customers. RadiantHerbs must be update with latest technological advances to stay competitive as well as meet changing needs of customers. Advancement in technology and innovation plays a crucial role in development and expansion of salon services in the United Kingdom. Firm need to use technology to enhance its packaging, product formulation as well as distribution by the use of digital marketing as well as e-commerce channels to reach large number of customers.
• Legal: The service sector industry in the UK is subject to a various rules and regulations aim to make sure safety of the customers. Firms must company with these rules by ensuring that their products are safe to use and free from dangerous chemicals. The sector is also adhering to customer protection laws that regulate sales as well as promotion practices (Lu et al, 2020). RadiantHerbs must be aware of these regulations and make sure that they avoid legal penalties and challenges to grow rapidly while maintaining sustainability. The company should also be aware of intellectual property laws including patent laws as well as trademark that protect the rights of business and its products.
• Environmental: These factors play an important role in organic service provider industry within UK as well as focusing of shaping customer preferences and behaviour. The boost in sustainable customers has lead to the rising need for cosmetic products that are environmental friendly, sustainable as well as cruelty free. Customers are demanding products and services that are organic and natural. This will help RadiantHerbs to grow their business rapidly in market while maintaining sustainability and increasing revenues.

2.2 Strategy analysis

Strategic Position

Porter’s 5 forces analysis: this model was developed to analyze both external as well as external factors that affect the competitiveness of the beauty salon industry.

SWOT

Strategic Choice

Generic strategies

Companies’ strategies are helpful for providing to the sales accomplishment of the RadiantHerbs beauty salon (Sarkar, 2023). Porter generic strategy is an assisting tool that will help the company to gain competitive advantages. This includes cost leadership, differentiation and focus strategies.

The firm will apply differentiation strategy that will help them to differentiate their products and services from competitive firms. The company by understanding their customers’ needs and bring innovation can differentiate their products (Keiningham et al, 2020). RadiantHerbs is wanted to gain a market growth can control costs to increase profits while maintaining average prices. The company will also use promotion strategies as well as discounts to enhance customer preferences and demands.

Strategic Action

Balanced Scorecard

This is a management system that aims at formulating an company’s strategic objectives into the set of performance objectives. This model includes 4 perspectives:

• Financial analysis: this includes measuring of profitability, operating income as well as return on investments.
• Customer analysis: This keeps investment in customer services and retention.
• Internal analysis: this keep at how the internal business procedures are connected with strategic goals and objectives (Fatima and Elbanna, 2020).
• Growth perspectives and learning: this assesses staff satisfaction as well as information technology system.

2.3 Stakeholder analysis and marketing analysis

Stakeholder mapping

A stakeholders mapping is a visual representation of peoples who are interested or involved within the business. This will help RadiantHerbs to identify key stakeholders both external as well as internal along with understanding their influence on stakeholders’ management. The firm by indentifying all particular peoples and groups that are impacted by project will we included. The company should also prioritize the stakeholder according to their interest within the business (Freudenreich et al, 2020).

• Internal stakeholders: These individuals’ works with business that helps in promoting, participating and delivering services to customers. This includes managers, skilled and professional staff, development team as well as internal advisors. These stakeholders fall into the category of high power and interest. They majorly impacts strategic framework and related policies of the firm.
• External stakeholders: These individuals are the individuals that are outside parties that still experience risk on the basis of the company’s performance (Zingraff-Hamed et al, 2020). This includes sponsors, partners, suppliers, customers, lenders, government authorities as well as various other stakeholders.

STP Framework

• Segmentation: demographic segmentation: the clients will be targeted between age group of 25-45 who are more interested to visit salon more often. On the basis of behavioural segmentation firm will focus on customers who are more ware of organic and sustainable products.
• Targeting: The firm will focus on differentiation targeting by targeting customers on the basis of their sustainable products and services to gain competitive advantages (Ranta et al, 2021). They will also keep their prices budget friendly to attract large number of customers.
• Positioning: RadiantHerbs will position its products and services by promoting organic and herbal products within their services. They will also partner and collaborate with other beauty salon within the local area to grow their market share rapidly.

Marketing Mix

• Product: RadiantHerbs will use organic and herbal ingredients that safe and chemical free for customers. The salon will offer full services including hair styling, cutting, waxing, spa, manicures and pedicures and all types of salon services.
• Price: The business will keep transparent pricing policy and provide budget friendly services to increase sales and gain competitive advantage (Peñarroya-Farell and Miralles, 2021).
• Place: the company will take online appointment facilities through website and social media channels. They will also design their products in a sustainable manner to attract large number of customers. They will operate in both urban and semi urban areas to increase in sales and presence.
• Promotion: They will endorse their herbal beauty salon through paper flyers in local community and through social media platforms to attract target audience. The firm will also partner and collaborate with salon firms to promote its services.
• People: RadiantHerbs will have skilled and professional workforce to create customers with their needs and requirements. The company will also provide training to its staff to handle customers with organic services (Gil-Gomez et al, 2020).
• Process: The RadiantHerbs will follow organic services process within their business operations’. This will help them to build loyalty as well as customer among the customers for repeated sales.
• Physical evidence: The Company will operate with ecological interior and exterior decoration that promote sustainability (Ravangard et al, 2020). They can also offer clients with memberships cards and discounts’ to draw their attention.

Integrated marketing communication (IMC): This theory facilitates continuous communication across various platforms as well as offers unify brand practice for clients. This is essential for business in long term success as all marketing programs depends on it (Blakeman, 2023). This makes sure that brand consistency communicates its information for building up its relations with target customers.

2.4 Resource and capability analysis

VRIO analysis

This analysis helps the business to analyze the way company’s resources contribute to the marketplace position. VRIO analysis is an internal evaluating technique which can be used by RadiantHerbs to categorize its internal resources on the basis of convinced characteristics outlined in the structure (Ariwibowo et al, 2021).

• Valuable: these resources are those that affect the business financial bottom line and assist to reduce expenses to enhance profits. The firm by offering organic services can charge a premium price from target customers (Murcia et al, 2022). The company with skilled and professionals staff and maintaining innovation can gain strong brand reputation.
• Rarity: A resource is judged on the rarity that often the easiest as well as least subjective parts of analysis. This is significant as this combine with the value it creates for accomplishment. This interplay among value as well as rarity as it is crucial as it can be complex to take advantage on value the RadiantHerbs posses. The business recognizes that rare elements it is essential to brainstorm creative and innovation to evaluate within clients experience.
• Imitability: this specifically explores the competitive firms’ ability to replicate the same business with the same business model (Sjödin et al, 2020). RadiantHerbs to form a solid competition should invest in research and development to gain market knowledge and new innovation.
• Organization: this element evolves an internal analysis of the RadiantHerbs operate as well as its framework for success.

Bank loan and personal savings

Bank loan will the most suitable funding strategy for RadiantHerbs to grow in an market. This is generally a rapid as well as straight way to safeguard the funding requirements as well as is mainly offered with fixed period of time (De Angelis, 2021). By investing personal saving the owner can invest in herbal beauty salon to gain better returns without bearing any interest.

Conclusion

In conclusion, beauty salon business is rising rapidly as well as fuel by rising income of people. People are now aware of various products and services in beauty salon especially among youth. Salon service industry has grown into a global marketplace that offers diverse services and wellness. This has lead business to differentiate its products and services from that of competitors to grow strong presence in a market. The rising importance on personal appearance in both social and professional frameworks has forced company to use more sustainable and organic products to maintain demand of their products and gain brand reputation. Social media channels plays essential role in enhancing beauty trends as well as drive the needs for salon services. This has lead RadiantHerbs to provide organic services to its clients to expand and develop its business by partnering with various similar firms. The company by offering customized experiences as well as solutions can tailor the unique requirements to fit one size approach. RadiantHerbs by leveraging advancement in technologies such as data analytics and AI power tools can analyze clients’ preferences as well as provide tailored services to its customers. They can also involve wellness hubs by incorporating relaxation methods such as mediation as well as natural therapies within their services.

RadiantHerbs should ensure their accountability to sustainability is prominent and visible through salon services. This will include displaying affiliations and certifications to show sustainable products and services they offer. The firm by making its accountability to sustainability can attract customers to share similar values on environmental responsible business. They can include offer organic hair treatments such as non toxic dyes and offering water saving services like dry cuts can differentiate from competitive companies. The firm should also educate and aware its clients on organic and herbal service practices as well as advantages of using eco-friendly products. They can offer tips to manage their skin and hair by using more organic products to improve them. The firm can also partner with suppliers as well as brands that are also accountable to sustainability. This allows providing high quality services and also assisting business to build accountability with the customers. The firm by partnering with brands can open the chance for joint marketing programs and events that allow reaching target audience. The business by leveraging social media channels as well as content marketing can show beauty salon’s organic efforts as well as draw attention of eco-conscious customers.

Forecast

Income statement

RadiantHerbs will grow significantly in the upcoming years through internal process by relying on its organic services. The company will focus on its clients base as well as revenue while maintaining profitability. A major portion on RadiantHerbs profits will comes from organic services. The company will use strategies including optimization of procedures, new service offerings as well as relocation of resources.

Recommendations

• Budgetary control tool: RadiantHerbs should use budgetary control system tool for handling its financial resources efficiently as well as while accomplishing its targets. This make sure that all the resources are allocated successfully, performance is tracked on regular basis that lead to enhance performance and help to take better decisions.
• Market trend: customers in recent times within beauty salon sector are more brand loyal with as much as 70 percent of repeat customers. The customers are expecting from salons to maintain sustainability within their business operations (Daniel, 2023). This includes driving clean, natural as well as sustainable services. This is the second biggest trend growing the beauty salon industry.

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References

Books and Journals

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Online

Busch, T., 2023. Pestle Analysis of Cosmetic Industry in UK. Online. Available through.:<https://academiaanalysis.com/pestle-analysis-of-cosmetic-industry-in-uk/>

Organic product market, 2023. Online. Available through. :<https://www.factmr.com/report/278/organic-haircare-market >

SWOT analysis, 2023. Online. Available through. :<https://www.mindtools.com/amtbj63/swot-analysis>

Daniel, 2023. Online. Available through. :https://greenbeautycommunity.com/2021/04/industry-trends-impacting-eco-salon-operations/