Trend Castle

Part 1: Introduction
1. Name & address of the business:
The Trend Castle or TC in short, plans to operate in partnership form.
The project intends to commence at the most happening location of the city, the GEC
Circle.
2. Nature of Business:
It will basically be service intensive as well as capital-intensive business, as its profit
relies on quality service, skilled employees, and customer-oriented environment and also
on the modern saloon technologies. The core theme of Trend Castle lies in enhancing
the inner sense of beauty and personal well-being, eventually awarding our customers
with a strong believe in their outer looks.
3. Total Investment: Tk. 1, 50, 00000
4. Financial Indicators: Tk. 50, 00, 000 will be collected through bank loan and the rest
of the fund will be raised form the partners personal fund.

5. Payback period: We will able to achieve our investment within 2.22 years.

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Part 2: Executive Summary

Trend

Castle is a different kind of shop providing both hair styling

saloon (for men) and Beauty parlor (for women). The combination of
this kind of service concept is new for Chittagonian. Because none of
the existing service provider provide this kind of service together. The
main goal of Trend Castle is to provide world-class service in the
fields of barbering, hair styling and cosmetology to the fashion
conscious people of all ages. Trend Castle has the goal to grab 15%
in terms of market share within 3 years. Customers, employees,
suppliers, government unions, local communities all of them are our
stakeholders and they have a vital contribution in the establishment of
Trend Castle.
The main theme of Trend Castle lies in enhancing the inner sense of
beauty and personal well-being. Trend Castle plans to operate in
partnership from, we are the Three partners investor of Trend
Castle intends to establish the project at the most important location
of the city, the GEC Circle. Our Trend Castle complex is incorporated
with two floors with fully air-conditioned and parking facilities for at
least 15 vehicles.
Most of the employees of Trend Castle, that is the barbers, hair
stylist, beautician has completed a diploma on hair styling &
cosmetology from Hair Academy Beauty Institute of Cosmetology,
Delhi, India.
The objective of Trend Castle is to provide high quality treatment
and it believes in total customization. Trend Castle follows focus

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strategy, as it is providing some new types of service for Chittagonion
people, like Hair Transplantation, Hair styling, Massaging.
The final conclusion can be drawn that, Trend Castle is a
combination of hair styling saloon and beauty parlor for the style
conscious people, and people facing problem with their hair, Trend
Castle is the shop that solves those problem and proposes better then
any other because Trend Castle has the technological advancement
and ability to serve the consumer with the best possible manner.

Part 3: Industry Analysis

A) Existing Scenario of the Industry &
Competitor Analysis:
List of Current Competitors:
As Trend Castle is offering several services in a single complex, there are no direct
competitors offering exactly the same way as ours. We are the first in Chittagong of
introducing both Barber shop and Beauty parlor to the consumer Chittagong. . We are the
pioneers of introducing Hair Styling and Hair Transplantation in Chittagong. No one in
Chittagong is offering a various number of services like us. We have some indirect
competitors who are offering our services separately. On the basis of service they offer,
we have identified our indirect competitors that means we can sort out the following and
indirect competitors in barbering and cosmetology.
1. Agrabad Hotel Saloon
2. Saint Martin Hotel Saloon
3. Head & Shoulders
4. Hair Line
5. Lucy Beauty Parlor

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6. Fair Touch Beauty Parlor.
Till now no one in Chittagong has offered vast varieties of service like Trend Castle.
Some of the firms are offering those services separately. So currently there are no direct
competitors for Trend castle in Chittagong. Different competitors are offering different
services. They have different service line also. After analyzing all of them, we have made
a list of the services that our indirect competitors are offering. There are even not any
indirect competitors in some sectors of our offerings (Massage, Hair transplantation, Hair
designing, etc). Here we are the pioneers in that business.)

Quality of the competitors products and services

Service quality is the ability of the service to perform its functions; it
includes overall durability, reliability, precision and new features and
other valued attributes of the given services. Different service
provider provides different qualities to their offerings. So our indirect
competitors also provide different quality and features to their
respective offerings.

1. The

Agrabad Hotel Saloon provides posh environment, Airconditioned room and skilled barber (But they didnt complete any
course on Hair cutting or designing. Saint Martin Saloon offers
Premium price, skilled barber, and they targeted only those consumer
who stay in the Agrabad hotel etc.

2. The Saint Martin Saloon offers Premium price, skilled barber

(in terms of their experience), and they targeted all standard of
people.

3. The

Hair Line Saloon offers low price, well behaved skilled

barber (in terms of their experience), and fair quality in relation to
price.

4. The Head & Shoulders Hair Shop offers low price, well behaved
skilled barber (in terms of their experience).

5. In

Ladies beauty parlor sector, our main competitor is Lucy

beauty parlor and Fair Touch beauty parlor. They are very well known
beauty parlors in Chittagong. Lucy is the only beauty parlor where
they maintain a good quality service well behaved beautician. And

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Fair Touch is quite fair with its quality with a low price strategy,
targeting all standard of people.

Service level of the competitors

Service is any activity or benefit that one party can offer to another is
essentially intangible and does not result in ownership of anything.
Most of our competitors in various sectors try to serve quality service
to their customer. They try to offer suitable environment, lower price,
convenience, etc.

Use of middleman
Most of the competitors do not exploit any middleman in their business. There is a major
use of middleman in Hair cutting, designing, transplant, etc of man and as well as in the
beauty parlor sector. They buy the Cosmetics which is needed in the beauty parlor and in
the hair cutting saloon like Face wash, Shampoo, Bleach, Scrub, etc for both men and
women and After shave, lotion, antiseptic cream, etc specially for men, those are supplied
from the superior Departmental Store of Chittagong. Head & Shoulder Hair Shop has a
relationship with the Head & Shoulder shampoo company. Head & Shoulders and Hair
line hair shop, they both buy the basic materials of cutting hair, hair color, beauty cream,
powder etc all those things from Reazuddin bazaar. Beside those competitors no one uses
the middleman in this business. They always concern on spot selling of their service

Location & Appearance of outlets of the competitors

1. Agrabad Hotel SaloonAgrabad Hotel, Agrabad Commercial Area,
Badamtoli, Chittagong
2. Saint Martin Hotel SaloonMehdibag, Chittagong
3. Hair line ---------- Mehdibag, Chittagong
4. Head & Shoulder SaloonMehdibag, Chittagong.
5. Lucy Beauty parlor--------Mehdibag, Chittagong.
6. Fair Touch Beauty parlor--------Mehdibag, Chittagong.

Competitor Emphasis:
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Strategic
Thrust

Agrabad

Focus

Low cost

Saint

H &S

Hair
Line

Lucy
parlor

Fair
Touch

Trend
Castle

Differentia-tion

In the above we show the strategic analysis between Trend Castle and other competitors.
Different competitors adopt different strategies. In Mens barber shop sector, Agrabad
Hotel Saloon is offering quality services with a premier price level. Head & Shoulders,
and Saint Martin Saloon, both of them are offering low price and reasonable quality to
their customer. They targeted all classes of people and set such a price level that is easily
affordable by different income level of customer. Hair Line Saloon is following the focus
strategy. They are offering quality service at a reasonable price. Lucy Beauty parlor has
adopted the focus strategy. They are offering good quality service and also they are
charging premier price. Fair Touch Beauty Parlor has adopted low cost strategy. But they
are providing a decent quality service with taking low price from customer. Because of its
cost of operation is lower than any other parlor, thats why this parlor has adopted this
strategy. Trend castle has adopted the focus strategy as well as differentiation strategy.
We are offering the bundle of quality service with a premium price. Trend castle only
focuses on upper class and upper middle class people. And Trend castle is the first
barbershop in Chittagong where we are dealing with both Mens barbershop and Beauty
parlor. We also include Hair transplantation specially. So all of the factors are indicating
that Trend castle is in Focus strategy.

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The Competitive advantages of the Competitors:

1. Low Pricing: It is the main competitive advantage for our competitors. Our
indirect competitors are providing the service at a lower price. It happens because they do
not think about better or high quality service. They just provide service at a lower price.

2. Customer Attitude towards the Service: To the consumers

overview, they think that Trend Castle is only for the upper classes of people. They
always bear (75% of total customer) a negative impression about Trend Castle before
visiting here. So this physiological think also includes a plus point for our competitors.
On the other hand the competitors took this chance by giving low price to their customer.
They are able to do this because they are not concern about the quality and also do not
believe in change.

3. Unavailability of Specialized Human Recourse: It is

very difficult to retain skilled and trained employees. Some of our services are very new
in Chittagong. So to find skilled employees on those sector are very difficult. And the
salary of those employees is also high.

Competitors
Differences
4. Maturity in the Similarities
Industry: the indirect competitors
enjoy a great
advantage to offer the services before Trend Castle. It is a plus point for them of

Barber
Shop
becoming the introducer of the service. That means they got the advantage of First mover.
They have
already made a1.positive
position in their customer
mind employees
while Trend Castle is
Agrabad
Saloon
Posh Environment
1. Skilled
just introducing them in the
2. market.
Charge relatively
2. Relatively high
High price
Promotion.
3. Quality service.
4. Technological
Competitors Analysis (similarities and differences with
Advancement
Trend
Castle):
Head
& Shoulder
5. Parking Facility
Hair Line
Quick service
6. Attractive Location

Beauty Parlor
Lucy Beauty Parlor

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1. Quality Service.
2. Parking Facility
3. High price
4. Posh Environment

1. Skilled Employees (got diploma)

2. High Promotion
3. Well decoration
4. Dont have to wait
5. Various other services 7

Trend Castle

B) Market Segmentation:
By examining demographic, psychographics, and behavioral differences among the
buyers, we can identify market segment. The marketers then decide which segments
present the greatest opportunity- that is its target market. We make out our target market
by analyzing the segments, the potential buyers, their income, number of competitors etc.
Trend Castle target upper class people whose income ranges from annually Tk 50000 to
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Tk 100000 and upper middle class people whose income ranges from Tk 20000 to Tk
50000.
We describe our market segment on the basis of present and future market analysis.
Those are:
1. Before entering the market
2. After entering the market (Projected)

Size of segment
9%

5%

18%

68%

Agrabad
saloon
Saint
Martin
Head &
Shoulder
Others

Before entering the market for Barber shops

20%
5%

Lucy
Fair Touch
Others

75%

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Size of the segment before entering the market

for Beauty parlor
We do not have any direct competitors. All of our offerings are separately provided in
Chittagong. Our competitors are providing those services while we are providing those
under the same roof.

15%
10%

65%

10%

Trend
Castle
Agrabad
saloon
Head &
Shoulder
Others

Size of the segment after entering the market

for Barber shops

Trend
Castle
Lucy

20%

15%
60%

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5%

Fair
Touch
Others

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Trend Castle

Size of the segment after entering the market

for Beauty Parlor
Here we find that when Trend castle will introduce itself in the market, it will manage to
earn about 15% in barber department and 20% in beauty parlor department of the total
customers. The competitors of Trend castle are not direct. They provide the offerings
from different places, in different price, with in different facilities. So it is a plus point for
Trend castle that they are offering different needs under the same roof. It will definitely
lessen the physic, time and energy cost of the customer and they will come here
frequently. So, we can achieve 15% in barber department and 20% in beauty parlor
department.

Size of the Segments

We divided our segments into two social classes. They are upper and
upper middle classes of people. We divide our offerings to those
classes with the help of percentage.

40%

UPPER Middle
class
Upper class

60%

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Market segmentation is important for any business. It makes a market and adopts its offer
to more closely match the needs of one and more segmentation. We know two brand
groups of variables are used to segment consumer markets. One is a consumer
characteristic and another one is consumer responses. So there are no single ways to
segment the market. As a marketer we have to try different segmentation variables to find
the variables alone and in combination, to find the best way to view the market structure.
For this reason, we follow three steps procedure for identifying market segmentation.
These are:
1. Going to survey
2. Analysis the factor
3. At last profiling the stage.
Than we define major segmentation variable like geographical, demographical,
psychological, behavioral segmentation.
Here we emphasize some of the major areas of Chittagong from where most of our
customer will come. And those are:

1. Geographical Segmentation:
A geographic segment divides a market in to different geographical units such as nation,
country, region, cities etc. We serve entertainment to the customer. So as a service
provider, we decided to differentiate Chittagong region and try to pay attention to the
difference needs and wants of the customer. We are localizing our service, advertising,
promotion and sales efforts that are fit for the consumers of chittagong. We also focus to
the developed area of Chittagong like Khulshi, Agrabad, Panchlaish, Nasirabad, and we
try to segment our customer market among these areas. For these reason we established
our business in GEC Circle on the basis of our target customer. Our geographic
segmentation is:
1. Country region: Chittagong.
2. Citizen of metro size: About 3 crores.
3. Density: Urban
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Trend Castle
4. Local area: Panchlaish, Mehedibag (Including Amirabag, Nasirabad, Khulshi,
Agrabad, Hill view, G.E.C Circle, etc.

2. Demographical Segmentation:
In demographic segmentation, we dissect the age, sex, income and other incentives of our
target customers. We divided the market in to some groups based on demographic
variables such as age, gender, family size, income, occupation etc. Consumer needs wants
and usage rate often varies closely with demographic variables. Here we analyses the
demographic segmentation of our service line:

Age: We define our offerings on the basis of different age peoples want and desire. Such
as:

Barber shop
Hair cutting
People of
All age

Shaving

Shampoo

18 Above 18 Above

Hair Styling
18 Above

Massaging
18 Above

Hair transplant
25 Above

Beauty parlor
Facial

Hair Cutting & Deigning

Hair Color

Hair Treatment

Make up

15-40

All age

15-45

30 above

15 Above

Gender: Male and female.

Income:
Different people want different type of services. It can be happened because of their
income level. The customers will find his needs on those services that are reasonable for
them. We find their, the level of service differs with the income range of the customers.

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Trend Castle
So we make a research on income of our target customers and basically we are targeting
adult market including a portion of teen market.

Occupation:
Service holder, Businessman and woman, Teenagers & children.

Life Cycle: Young and middle-aged people.

3. Psychographical/Behavioral Segmentation:
Social Class: Upper class and Upper-middle class people.
Mentality: Who wants to get services comfortably and in favorable place.
Personality: Gentle, smart and well behaved.
We have segregated our segments in to two major classes. We provide benefits on the
basis of the current market demand. As we know, everyone does not demand the same
services. It differs from individual to individual. So we make analysis customers demand
and try to serve them as much benefit/service as we can. We also examine Customers
psychological/ socio cultural and political behaviors to examine what type of benefits
they actually wants from this type of service. Here we made a figure about the segment &
the benefits that we offer:

Class

No. Of Segment

Upper

Upper Middle
Level

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Income range

Benefit Soughed

50,000-1, 00,000

Total quality service, Entertainment

& Posh Environment

20,000-50,000

Quality service, Entertainment

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C) Industry LIFE CYCLE

In the PLC, the position of Trend castle is in the embryonic or introduction stage, as
it is a newly established business.

Part 4: Description of Ventures:

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Trend Castle

Nurturing Your Personality

The vision of Trend Castle is to establish the first

and biggest Institute of Barbering, Hairstyling and
Cosmetology in Chittagong facilitating complete
hair and skin solutions to the residents- both local
and national.

The mission of Trend Castle is to provide world-class

service in the fields of barbering, hairstyling and
cosmetology to the fashion conscious populace of all
ages. We believe in our potentials and energy in the
art of presenting each individual a new and positive
dimension to their personality.

To people, who are style conscious and facing problem

with their hair, Trend Castle is the hair styling saloon (for
Gents) and beauty parlor (for ladies) which solves those
purposes better than any other, because Trend castle is
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Trend Castle

the only one hair styling saloon and beauty parlor in

Chittagong, which provides hair transplantation and hair
styling facilities for the first time and it has the ability to
fulfill the latent demand of the customer.

We look forward to progress at a growth rate of 15% in

terms of market share in next 3 years. The objective of
Trend Castle would be to provide world-class treatment
and all possible solutions in the fields of barbering,
hairstyling and cosmetology.
In TC, we believe in total customization. Well be
treating and specifically tailoring our services sharply
according to our diverse customer requirement.
1. Product & Service
Service Width for Trend castle
Width (Barber Shop):
The widths in this sector are:
a) Hair Cutting
b) Shaving
c) Shampoo
d) Hair dye
e) Massaging

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Trend Castle
f) Nail treatment/care
g) Hair Designing/Styling,
h) Groom make up
A) Hair cutting:
Normal Hair Cut, Ultra Modern Hair Cut, Round Cut, Children Cut, Children Cut (Girls),
and Special Trend castle cut With Shampoo).
B) Shaving:
Cream Shave (Gillette Cream and after shave), Foam Shave (Gillette foam and after
shave), Foam Shave (Old Spice foam and after shave) Gel Shave (Gillette Gel and After
Shave), Edge Pro Gel with Aloe Vera.
c) Shampoo:
St. Luis Herbal, Boost Extra Glare, Head & Shoulders (Normal Hair), Head & Shoulder
Menthol (For Dandruff), Nizoral (for weak hair), Pantene Pro V with Conditioner, Sun
silk (Normal Hair), Sun silk( for dandruff with conditioner), Sunsilk Blue(For Curly
hair), Selsun Blue (Treatment for Dandruff), Pamela Herbal , Bryl Cream, Hair Spray,
Hair Gel.
D) Hair Dye:
Loreal (Black), Begin (Black) Hi speedy, Poly color (Black), Peacock (Black), Kali
mehendi, Godrej (Black), Tru tone (Gel Black), Godrej Black (For Moustache), Peacock
Black (For Moustache), Loreal (Blue, Red, Pink, Gold, Brown), Elegane(Black, Blue and
Brown) .
E) Massaging:
Body massage (normal/ manual), Body massage (machine), Head massage, Head
massage with shampoo.
F) Nail Treatment: Pedicure and Manicure.
g)Hair styling: Curly, Straight, Spike, Rahul, Round etc.

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Trend Castle

Width (Beauty Parlor)

Like Barber shop, Beauty parlors are also available in every areas of Chittagong. But we
consider Lucy Beauty parlor and Fair Touch Beauty parlor as our competitor.

The widths in this sector are:

a) Facial
b) Hair Cutting/ Designing
c) Hair Color and Treatment/ Care
d) Make up
e) Nail treatment/care

Breadth: The service line depth for our different beauty parlor competitors are projected
here:
A) Facial:
Normal Facial (bleach and facial) , Herbal Facial( with herbal accessories , Special
Facial( facial with the mixture of Cucumber, egg and other fruits) Shehnaz Facial, Biotic
Facial, Shiny Facial, Herbal Facial.
B) Hair Cutting/ Designing:
Normal cut, Step cut, Shaggy cut, Rahul cut, Layer cut, Dyana cut, Normal
Cut( Customers choice).
C)Hair Color and Treatment/ Care:
Loreal Black, Loreal Brown, Loreal Gold, Garnier Black, Garnier Brown, Garnier Gold,
Garnier Red, Shehnaz Mehendi , Elegane(France-All colors).
D) Make up: Bridal Make up, Party Make up, Normal Make up, Evening Make up.
E) Nail treatment/care: Pedicure and Manicure.

2. Quality
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Trend Castle
Quality is the totality of features and characteristics of a product that bear on its ability
stated or implied needs.
*The complex is centrally air conditioned, with violet parking facilities. Security
monitors are on everywhere and special attendance assigned for children. Step inside to
Trend castle you will definitely feel better.

The consumer doesnt have to wait here, as we are providing the biggest saloon in

Chittagong. In our Barber shop at a time fifteen employees can serve customers and ten
in the beauty parlor. Trend castle also has the skill barbers and beauticians.
* We have taken and appointed five barbers and 3 beauticians from Chittagongs well
known barber shop and saloon and who are also well known and very experienced in
their field of job.

* In Barber Shop we are providing a waiting room where more than thirty people can sit
and can watch television and newspaper. We are also providing a smoking room.

We are providing the best beauty parlor in Chittagong. Its environment is totally

different from other beauty parlor. In beauty parlor sector we are providing a Kids Corner
so that kids can play there and dont disturb their parents. We have trained employees and
beautician who is expert in this sector.
*Trend castle is the only barber shop where styling hair is possible. We have two expert
in hair styling who had done one years course on hair styling from Bangalore.

3. Service level
Service is any activity or benefit that one party can offer to another is essentially
intangible and doesnt result in ownership of anything. And Service level is the extent to
which a supplying resource satisfies customer requirements, often expressed in terms of
error rate, resource availability or accuracy in meeting requested dates.

Trend castle offers skill barbers and beautician. Most of the barbers and beautician
completed a six month diploma from Hair Academy Beauty Institute of Cosmetology,

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Trend Castle
Delhi, India. (who took three months degree from India), skilled hair stylist (who took
one year degree from India), skilled beautician, better technology, quality service, posh
environment, good parking facilities, weekly discount for their consumers.

Part 5: Production Plan:

Employee Skill Requirements:
Trend Castle comes with skilled and trained employees. There are some barbers and
beautician who are able to speak in English and also trained how to deal with different
customers. We appoint all skilled employees who are educated, and some also who are
fluent in the conversation with foreigners, and also able to deal with different group of
customers. They also capable of handling and using different type of instruments and
technologies available in Trend Castle .We always concern to appoint skilled key
personnel because customers always want better service because they also giving high
price for it. Thats why we need trained employees, which leads to good positive
impression in the consumer mind about the firm. By doing this, we can earn more profit
and can increase our market shares with a strong good will. Most of our barbers and
beautician has completed a degree on hair styling and cosmetology from Hair Academy
Beauty Institute of Cosmetology, Delhi, India.
Trend castle provides skilled and trained employees. They are eligible to talk in English
and also trained how to deal with customers in different circumstances. Trend castle
appointed only educated employees. Different positions of employees required different
skill of education. The firm divides the educational requirement on the basis of the
position of the employed person. Such as:
POST
MANAGER
SECRETARY
FLOOR SUPERVISOR
FLOOR BOY

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REQUIREMENTS
B.A / B.Sc DIPLOMA (PASSED)
DEGREE (PASSED)
H.S.C (PASSED)
S.S.C (PASSED)

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Trend Castle

Trend castle gives higher effort on employee motivation. It believes employee

satisfaction leads to higher quality service, higher consumer satisfaction, higher growth
and profits and overall leads to more repeat business. For employee satisfaction, it
follows a provision period for seven days (in every month). In those seven days, the
Manager observes the activities of the employees and analyzes the basic requirement of
the employees.

Part 6: Marketing Plan

1. Pricing: Basically Trend Castle will charge a premium price to its consumers.
Because of delivering superior service quality, offering high-class environment does not
come in a cheep way. Consumer will feel sumptuous and sumptuous whenever they
encounter our service. The superior service quality is the competitive advantage for Trend
Castle.

Price is the only factor in 4Ps of marketing (Product, Price, Place and

Promotion) which generate revenue. Trend Castle will charge higher price to deliver
superior services and to cope up with the other fixed and variable costs as well as to gain
profit. Here is the price list for the different types of services Trend Castle will offer as
well as price list of the competitors are also included for complete understanding.

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Charging price of Trend castle & other competitor

Barber Shop

*Hair Cutting
Items

Trend
Agrabad
Castle(Tk) Saloon

Hair
Head & Saint M
Line(Tk) Shoulder Saloon(Tk)

* Normal Hair Cut

120

100

40

30

30

* Ultra Modern Hair Cut

130

110

50

30

40

*Round Cut

100

90

40

25

30

*Rahul Cut

35

30

30

*Children Cut

120

100

50

40

45

*Special Trend castle Cut

*Executive Hair Cut

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150
140

....

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Charging price of Trend castle & other competitor

*Shaving
Items

Trend Agrabad Hair

Head & Saint M
Castle(Tk) Saloon Line(Tk) Shoulder Saloon(Tk)

Cream Shave (Normal)

20

20

Cream Shave (Old spice

50

40

25

20

25

Cream & After Shave)

Foam Shave (Gillette)

80

60

45

35

35

Foam Shave (Old Spice)

75

Gel Shave (Gillette)

90

50

40

40

Edge Pro Gel with Aloe Vera

*Special Trend castle Shave
(Using Gillette one time razor)

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120

150

70

50

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Charging price of Trend castle & other competitor

*Shampoo
Items

Trend Castle Agrabad

(Tk)
Saloon

Hair Line
(Tk)

H&S
(Tk)

Saint
Martin

St. Luis Herbal

120

70

Boost Extra Glare

110

70

50

70

50

45

40

40

70

50

45

40

40

Head & Shoulders (Normal

Hair)
Pantene Pro V with
Conditioner
FA Shampoo (For Curly
Hair)
Sunsilk (Normal Hair)

80

Pool and Snooker

70

50

45

40

45

Pert Plus

50

40

Clinic Clear

40

35

30

30

Selsun Blue (Treatment for

Dandruff)

100

80

Sunsilk Plus (Dandruff

Shampoo plus Conditioner)

100

Sunsilk Blue(Curly hair)

110

40

35

Pamela Herbal

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70

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Charging price of Trend castle & other competitor

*Hair Dye
Items

Trend Castle Agrabad

(Tk)
Saloon

Hair Line
(Tk)

H&S
(Tk)

Saint
Martin

Loreal (Black)

500

400

350

300

300

Begin Black Hi Speedy

450

350

300

200

200

Poly Color (Black)

300

200

160

150

150

Peacock (Black)

300

200

160

150

150

Kali Mehendi

250

200

120

110

110

Kali Mehendi( Herbal)

300

Godrej ( Black)

250

200

120

110

110

Head Massage Normal

Trutone (Gel Black)

250
200
Pool and Snooker

120

110

110

Loreal( Brown, Pink,

Goldish, Blue)

600

..

..

Elegane( Indian Red, Black,

Brown)

500

..

Beard/ Begin ( Normal)

..

100

100

Godrej Black (Moustache)

50

40

30

30

30

50

40

30

30

30

Body Massage with

Peacock (Moustache)

Business Plan

26

Trend Castle

Charging price of Trend castle & other competitor

*Facial (For men)

Items

Trend Castle Agrabad

(Tk)
Saloon

Hair Line
(Tk)

H&S
(Tk)

Saint
Martin

St. Luis Herbal

(Swiss formula)

400

300

250

200

220

Glare Facial (With Gel)

250

200

175

150

Normal Facial

200

175

130

120

130

Shiny Facial
( Nivea Face wash, Scrub
and Ever youth mask)

400

..

Pool and Snooker

Party Facial ( PH 5.5 Face

Wash, Steves Scrub, Mud
Pack mask and Fairness
Cream

500

..

*Hair Styling / Designing

Trend castle

Bath
Any kind of Styling (Without Color)

500 Tk

(No competitors in this event)

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Trend Castle

Hair transplantation
Tk. 10000 for Curly hair
Tk. 7000 for Straight or Silky hair

Charging price of Trend castle & other competitor

Beauty Parlor

*Facial
Items

Trend castle
(Tk)

Lucy Beauty
Parlor

Fair Touch
Beauty Parlor

Special Facial (Bleach & Facial)

500

450

400

Shehnaz Facial

800

700

600

Normal Facial (Ponds & Nivea)

400

350

300

Biotic Facial (Garnier)

600

500

450

Lucy Special Facial

700

Fair Touch Special Facial

..

750

500

450

450

Shiny Facial

Pool and Snooker

Herbal Facial (Herbal Accessories)

Business Plan

600

28

Trend Castle

Charging price of Trend castle & other competitor

Beauty Parlor

*Hair Styling and Cutting

Items

Trend castle
(Tk)

Lucy Beauty
Parlor

Step Cut

250

Step
Shaggy Cut

250

200

180

Rahul Cut

180

120

100

Layer Cut

250

200

150

Dyana Cut

160

100

300

Normal Cut (Customers Choice)

Business Plan

Pool and Snooker

200

Fair Touch
Beauty Parlor
150

29

Trend Castle

Charging price of Trend castle & other competitor

Beauty Parlor
Items
Hair Treatment / Care

Trend castle
(Tk)
600 1000

*Other Services
Lucy Beauty
Parlor
300-700

Fair Touch
Beauty Parlor
300 500

*HairStep
Color (Loreal) Black &
Brown

1500

1200

1000

*Hair Color ( Loreal) Pink, Blue, Red

2000

1500

1400

*Hair Color ( Garnier) Black &

Brown

1600

1400

1250

*Hair Color (Garnier) Blue & Red

2200

1700

1500

*Hair Color (Elegane- France)

All Colors

2500

..

1000

800

700

1200

1000

900

500 - 1500

300-1200

Hair Styling (Curling)

Hair Styling (Straight)

Pool and Snooker

Party Make Up

800 - 2000

Bride Make Up

3000 - 5000

2000-3500

2000-3000

Normal Make Up

2500

Pedicure

500

400

300

Manicure

500

400

300

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30

Trend Castle

2. Distribution
Basically, we want to establish our image as Trendy BRAND and want to create an
exclusive distribution. We want to see that target consumers are searching the brand by
themselves rather we distribute the offering to their hand. There will be one and only
promise of Trend castle and users has to look for it as our target is to establish is as an
exclusive brand, so the distribution channel will be like this

TREND
CASTLE
(service
provider)

Customer

Here we are following a direct distribution channel as because it is a service. And we

dont want to compromise our quality by intensive distribution.

3. Promotion
Promotion means activities that communicate the merits of the product available to target
consumer to buy it. It influences the peoples mind and forces them to think positive
about the product.

Promotional aims
Image:
Trend castle selected those sectors of media, which helps to deliver their offerings very
quickly to the customers. The entire sector of the media did not work as a same way for
creating image. Television, newspapers work fluently on this because people frequently
and regularly saw it. But now days less people hear the radio. So Trend castle will use its
promotional expenses mostly upon newspaper, television (Cable network) and other

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31

Trend Castle
outdoor promotion (leaf lets, banner) for developing its image. Side by side we will give
our Advertisement into the Internet. Because at present internet is less expensive to
communicate with the target customer. Another reason for giving more emphasize on
Internet Advertisement because of our target customer is mostly educated and high
income group people. And these people by some means encounter with the internet for
different purpose.
Increasing awareness:
Trend castle has come up totally new kind of business in Chittagong. Though they are
introductory stage, they have to make large promotion for draw the attention of the
customers towards them. According to the characteristics of introduction stage, there are
fights for market share among the competitors through making the target customers are
well aware of the products. So Trend castle should spend more money in the media in
order to attracting and retain the customers towards them

Schedule for Advertisement

1) TV (Cable TV Network):
Trend castle telecast its advertisement 5 days in month. And the cable network where
its provides advertisements are Century Cable Network, Metro Vision Cable Network,
and Red Rose Cable. Time between 8.00 Pm to 10.00 Pm we show our advertising. Here,
we target this time schedule because his are the most popular time when maximum
viewers are watch T.V.
2. Newspaper
We are giving our advertisement on newspaper two times in a month.
a) Dainik Purbakan in the fast week of the month at back page
b) Dainik Azaadi second and third Friday at front page.

Estimated Cost for Advertisement

T.V: we made our advertising with its 20 seconds.

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Trend Castle
All Cable Network company charges same rate, they charge Tk. 1800(Approximately)
per telecast and we telecast 5 times in month. So the media cost of first year is:
1800 x 5 x 12 = 1,08,000 Tk.
News Paper : Dainik purbakan =300 (cost) x 2(time) x 12 (yearly)
= 7,200 (App.) Tk.
Dainik Azaadi

= 530x 2 x 12

= 12,720(App.) Tk.
Outdoor (leaf lets, banner)
1200 x 12 = Tk. 28,800(App.) Annually.
Publicity:
We have arranged an opening ceremony for the publicity of our firm. We have invited the
famous hair stylist Javed Habib and some well known businessmen, social worker also.
We have incurred an amount of 60,000 taka for the opening ceremony.
Others:
Several trades fair took place every year in Chittagong. And we provide leaf lets to the
people who visit there. It is actually nothing but making the potential consumer
aware. And it costs 40000 taka annually.

Total Cost of Promotion

Costs
Media cost

Amount (Tk)
1, 08,000

Media Production

20,000

Publicity

60,000

Others

40,000

Total Promotional Cost

Business Plan

2, 28,00033

Trend Castle

Part 7: Organizational Plan

1. Ownership:
The Trend castle operates in partnership form. It has four managing directors. Each of
them provides 25% of total shares.

2. Organizational Structure
Organizational structure:
Director

Director

Director

Director

Manager
Manager
SECRETARY

SECRETARY

Chief
Super Visor

FLOOR-SUPER VISOR

FLOOR BOY

Business Plan

FLOOR-SUPER VISOR

FLOOR BOY

34

Trend Castle

3. Roles and Responsibilities of the Partners:

The overall responsibilities of all the members are described completely in the
Partnership deed which is attached in the appendix of this Business Plan.

4. Research and Development Department:

Trend Castles management gives more importance about the needs and wants of the
customer. We have arranged a department for customer complaints and suggestions.
Because Barber Shop is a kind of service where each and every employee has the
responsibilities to deliver a consistent service, as a result to ensure that every employee
has the qualification and expertise, Trend Castle will maintain a R&D department. This
department is also required to ascertain that, every employee is getting the right benefit
form Trend Castle.

5. Salary and Other Benefit of the Employee:

Trend castle gives higher effort on employee motivation. It believes employee
satisfaction leads to higher quality service, higher consumer satisfaction, higher growth
and profits and overall leads to more repeat business. For employee satisfaction, it
follows a provision period for seven days (in every month). In those seven days, the
Manager observes the activities of the employees and analyzes the basic requirement of
the employees.
- Salary Chart of the Employee
POST

REQUIREMENTS

Salary (TK.)

Manager

B.A/ B.Sc Diploma (passed)

15,000

Secretary

DEGREE (passed)

4,000

Floor supervisor

H.S.C (passed)

3,000

Floor Boy

S. S. C (passed)

Beautician

Business Plan

Diploma From any recognized

2,000
5,000

35

Trend Castle
Training Institute in this field
Barber

Experience and HSC (passed)

3,000

Part 8 SWOT Analysis

Basically, the overall evaluation of a companys strengths, weaknesses, opportunities and
threats is called SWOT analysis. Here, it is necessary to maintain that both the strength
and weakness are the internal factors while opportunities and threats are external factors
for a company.
As we have mentioned earlier, our shop which is the combination of Barber shop and
Hair styling saloon for men and Beauty Parlor for women is a new, creative, different
and special attraction for all of its consumers. So, it is quite obvious that there are no
direct competitors of Trend Castle. Here, is a view on its indirect competitors:
ITEM

INDIRECT COMPETITORS

Hair cutting, Shaving, Facial

Head & shoulder, Hair line, Hotel Agrabad

saloon, Saint Martain saloon.

Beauty parlor

Lucy, Fair touch, Rumy Beauty Parlor etc.

Strengths in terms of Gents Saloon:

First of all we have hired skill professional and experienced team of employees who have
completed a diploma all the way from India. While both of our competitors have local
less-skilled employees. By doing that we will be able to serve quality service delivery to
our customers.

Weakness in terms of Gents Saloon:

We have targeted upper and upper middle class customers and charging a high premium
price, this is a weakness because many customers will not ready to pay a high price only
for hair cutting, Shaving, and facial.

Opportunity in terms of Gents Saloon:

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36

Trend Castle
First of all, now a day, people become more conscious about their hair. So that they
require a hygienic environment for cutting of their hair and other necessary services. And
we serve that in our environment. Secondly we had highly trained and good skilled
employees for serving the customer. So for that reason customer will frequently come to
our shop and will become more loyal. Thirdly, through our observation and research, we
find that our competitors in this particular segment have failed to reach the latent demand
of their target customer, but we are able to meet up those demands. So it is also an
opportunity.

Threat in terms of Gents Saloon:

We are charging a premium price for hair cutting, shaving and facial but only in this
sector our competitors charging lower then us, so there is a possibility for our competitors
grabbing our market share. So we can lose our market share.

Strengths in terms Beauty parlor (Woman):

For beauty parlor we have another department and for that department we have skilled
and well known beautician who take over the whole process. This is the first beauty
parlor in Chittagong that is going to offer skin care treatment.

Weakness

Strengths

in

terms

Beauty

parlor

(Woman):

For technology and maintenance cost we are bound to charge premium price. Here it is
necessary to maintain that we are targeting the people who are able and willing to pay the
premium price for the premium service.

Opportunity
(Woman):

Strengths

in

terms

Beauty

parlor

We are the first shop in Chittagong that is providing both Barber shop (gents) and Beauty
parlor (ladies) together. On the other hand our competitors offering just for the ladies.

Threat Strengths in terms Beauty parlor (Woman):

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37

Trend Castle
We have many competitors in this sector they can grab the customer from us because we
are charging higher price.

Summary of SWOT analysis

Strength:
Location:
We have decided that our barber shop and beauty parlor is located in the heart of the city
which is G.E.C Circle. Most of the higher class people (indicating higher income group)
live in that place or may be near of that place and come there for different reasons.
Because most of the posh areas like Nasirbad housing society, Khulshi R/A, O.R nizam
road, are situated near G.E.C circle. So it is easy for them to come to us frequently.

Skilled Employees:
We have hired the most skilled and trained employees (i.e. Barbers, hair stylist and
beautician) to deliver service, and we have hired a specialist for every department and
most of our emplyees has got a diploma from Indias well known university of hair
styling and cosmetology. And those experts can help our local employees to deliver
quality service.

Technology:
We have imported the instruments which can keep pace the new technology. And we use
this for hair dying, Hair transplantation, hair styling, hair cutting. So that we will be able
to meet all the demands(including latent demand) of our target customers.

Storing R& D Department:

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Trend Castle
Our management gives more importance about the needs and wants of the customer. We
have arranged a department for customer complaints and suggestions. And this indicates
that we have a strong R & D department.

Customer service:
During the rush hour we are also able to provide the same quality of service because we
have a good number of trained employees. We have also arrange TV, news paper,
magazine and music for the customer so that the customer do not feel bored if they have
to wait for some time.

Weakness:
Brand recognition:
In our culture people really dont care about the brand recognition of barber shop and
beauty parlor. There are some people who are loyal to some saloon and beauty parlor but
not in a sense of a brand.

Maintenance cost:
As we have mentioned that we have new instrument so the maintenance cost of this
instrument is very high.

Opportunity:
No direct competitors:
In Chittagong we have no direct competitors in the market so we can easily grab the
market share in both departments.

Change in culture:
As a standard of living is increasing day by day and changes in culture is taking place and
it is more likely that people will consider brand even for barber shop and beauty parlor.
So it indicates that the customer will come to us frequently.

Threat:
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39

Trend Castle

New competitors: Service can be easily copied. And as there are no entry barriers in
entering the market, the potential competitors can easily access to the market and grab the
market share of us.

Economy Depression: During the time of inflation our business will face problem
because we are charging high price. Because in time of inflation the consumers
purchasing power will decrease. And then it will be difficult for us to survive.

Part 9 Risk Analysis

Trend Castle is a service oriented business. And its difficult to protect the products and
services from the competitors. As there is low entry barriers, potential and existing
competitors can easily copy the offered the services. As a result Trend Castle will loose
its customer. There are also related risks associated with this business. All the estimated
risks are described below.

1. Threat form the competitors: It is difficult to protect anyones offered services

from its direct and indirect competitors. As Trend Castle is a combination of both
barber shop and beauty parlor. Its offered services can be copied and offered by
any competitors. And most of all in Bangladesh, following successful business is
a great problem. So when the competitors find that due to its innovative offering
of Trend Castle is boosting its sales, they can easily offer those services in the
next day to cope up with the competition as well as to capture new customer
group.
2. Low Entry Barriers: it is another risk which is associated with Trend Castle. As
Trend Castle is considered as a small business. The entry barrier is low. As a
result new competitors can enter the market any time with better services and it
will heat up the competition in to this industry. This will drive Trend Castle to
lower its price or continuous innovation to cope up with the competition.
3. Lack of Qualified Barber and Beautician: In Bangladesh there are lots of
experienced barber and beautician, but it is difficult to find suitable amount of

Business Plan

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Trend Castle
barber who has enough educational background in this field. As well as they hold
vary less amount of information about running trend and fashion. Trend Castle is
charging a premium price for its services, so obviously the consumer will desire a
higher value with the services they get. So Trend Castle need to different its
employees form others. Because these expected services of the consumer will be
delivered by these barber and beautician.

Suggested Strategies to Overcome these RISKS

1. Service Development: It is the creation of new or improved products to replace
existing ones. Trend Castle can develop its offered services after a specific time
period. The help of technological improvement can give a better advantage to
Trend Castle to innovate or develop its services. As a result the imitation from the
competitors will have less effect on the business.
2. Product or Service Proliferation: Many companies seldom use just one product.
Most commonly, they produce a range of products aimed at different market
segments so that they have broad product lines. But to diminish the threat of entry,
Trend Castle can expand the range of products it makes to fill a wide variety of
niches. Such expansion creates a barrier to entry because potential competitors
find it harder to break into an industry in which all the niches are filled.
3. Customer Responsiveness: To achieve superior customer responsiveness, Trend
Castle needs to do better job than competitors of identifying and satisfying the
needs of its customers. Customers then place more value on its services, which
will lead to create a differentiation based competitive advantage. In other words,
achieving superior quality and innovation are an integral part of achieving
superior customer responsiveness. Another factor Trend Castle need to consider
achieving superior customer responsiveness is to customize services to the unique
demands of individual customers or customers group. Besides quality and
customization another sources of enhanced customer responsiveness are superior
design, after sales service and support. These entire factors enhance customer

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41

Trend Castle
responsiveness and allow Trend Castle to differentiate itself from its competitors.
In turn differentiation enables Trend Castle to build brand loyalty and to charge a
premium price for its services.
4. Improve Employee Productivity: Trend Castle might improve the productivity
of its employee which enables the business to achieve cost-based competitive
advantage.
5. Determining the Need for Change: when the competitors of Trend Castle
introduce a service that is clearly superior, Trend Castle then need to change there
strategy. The managers of Trend Castle also need to identify the gap between
desired company performance and actual company performance. Using measures
such as a decline in profitability, ROI or market share ass indicators that change is
needed; managers can start looking for the source of the problem. To discover it,
they can conduct a SWOT analysis.
6. View the Employee as a Customer: The customer will look the employee as the
company. So if the employees of Trend Castle fail to deliver a quality services
then the customer will blame the company. So the first job of Trend Castle is to
treat the employees as its customer, because when the employee can find that the
company is satisfying their needs and wants then they will also try to satisfy the
customer needs and wants.
7. Train the Employees: Finding a qualified employee (barber and beautician) is a
great problem for Trend Castle. On the other hand hiring barber form outside
Bangladesh will also increase the cost. So to overcome this problem Trend Castle
can train the barbers though an expert person. Which will improve the ability of
the barbers and beautician and it will also develop a sense of belongings among
the employees.

Business Plan

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Trend Castle

Part 10 Financial Plan

Trend Castle

Income Statement
For the year ended 30 June, 2004.

Particulars

Amount

(-)Operating Expanse:

12996000

Sales
Selling Expanse:
Sales promotion
(-) Administrative expanse:
Office salary
Insurance premium
Utilities
Officer salary
Stationary and supplies

24000
20000
200000
1136000
180000

(-) Others expanses:

Interest on bank loan

500000

Net income before income tax

(-) Income tax

10708000
428320

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Trend Castle

Net income after income tax

10279680

Trend Castle

Balance Sheet
For the year ended 31 December, 2005
Particulars

Amount

Current Assets:
Cash & cash equivalent
Inventories

3100000
50000

Total current Assets

3150000

Long Term Investment:

Deposited in bank for 5 years

1000000

Property plant and equipment

Building and other construction
Furniture
Total Assets

5000000
1000000
10150000

Current Liabilities:
Notes payable to bank
Interest on notes payable
Account payable
Business Plan

2000000
500000
7221680
44

Trend Castle

Income tax payable

428320

Total current liabilities

10150000

Capital Budgeting
Expected return= Net Income + Depreciation
Year

Net income

Deprecation ER

CER

1
2

10279680
10379680

100000
100000

10379680
20859360

10379680
10479680

Payback period = Year before full recovery + Un-recovered

= 2 + 4620320 / 20859360
= 2.22 Years

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Trend Castle

Part 11 Conclusion
We have prepared this report for introducing a new firm called Trend Castle. This is the
report assigned to us by our course instructor. It has helped us to know and understand
what we will do when we are going to establish a new firm or company. And this analysis
aided us to learn the in-depth of Business.

On completing our report we can conclude that our firm will change the attitude towards
the concept of Barber shop and Beauty parlor. However the company is performing on
average good.

Our firm should try to enhance the economic health of the organization for its overall
betterment.

Business Plan

46

Trend Castle

Part 12 Appendix

Book: Entrepreneurship Development

By
Nazrul Islam
&
Muhammad Z Mamun
Book: Entrepreneurship & Small Business
By
Dr. A R Khan
www.google.com

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47