His Man Friday Overview
The
Barbershops of the 50’s and 60’s were a gathering place for men to come get a
haircut, a nice hot shave, and shoot the breeze with their friends and fellow
men. Today, typical hair salons are predominately female run and most of its
patrons are also female. As a man, it can be awkward and daunting to enter a
domain that is devoid of that masculinity and brotherhood that used to be
prevalent in those barbershops of the day. The aim of His Man Friday is to
revive that 50’s barbershop feel and to give today’s man a place to go for
grooming advice, to hang out with “the boys,” and most importantly help him
look professional, presentable, and pleasing to look at. We do this by creating
an environment that appeals visuals to the modern male, and has a welcoming
atmosphere that eliminates the awkwardness that can exist in other salons by
having male oriented products for sale, and a lounge area with televisions
where a guy can relax and watch the game. The goal is to create a space where a
man can come and get that nice shave and a hair cut, and not worry if someone
he knows saw him walk in, because chances are, he’s going to run into that
someone store.
We
aim to differentiate ourselves by hitting the growing but grossly under tapped market
of men who wish to look and feel like ‘a million bucks’ - whether its for a
business interview or meeting, a wedding, or just because it feels good when
you get that ‘second look’ from passersby on the street. His Man Friday
understands that the market is larger for female focused salons and personal
grooming services, but that market is unbelievably saturated, leaving little
room for us and up and coming businesses.
Value
Proposition
Real
men need to be pampered. Men are interested in their visual appearance, and
society is as well. Making a first impression on an employer, a complete
stranger, or the opposite sex, can oftentimes make or break a person. People
are quick to judge on appearance, but why even give them a reason in the first
place? The key is to look sharp and always put your best face forward. The
problem is, men can lack knowledge in how to groom, don’t know enough about
products in the market to try them, or are simply overwhelmed with the array of
products in an aisle of the local drug store. To solve this issue, men need a
source to get an education of grooming and hygiene products and how they can
utilize them for their benefit. Introduction of the His Man Friday store could
be of great assistance to enhance your natural man. This store caters to men
who upkeep their appearance, present themselves appropriately, and stay
well-groomed. His Man Friday can be the sidekick for everyman to utilize; body,
fragrance, skin, hair, and shaving products are all chosen based on personal
needs.
This
brand desires to increase the participation of men to look after themselves.
Younger generations of men are steadily more conscious of their appearance, but
can often feel uncomfortable or awkward trying to find the one product they
want among the numerous aisles at the local drugstore. Elimination of these
factors can put men at ease with shopping for grooming and hygiene products.
With being easily accessible, men will be more inclined to use products for
grooming needs, and in turn could convert to using the His Man Friday brand of
products.
Few
stores are truly dedicated for men. Men can dread going to the mall with their
significant other, feel out of place among the vast number of women’s
retailers, and want a comfortable space to sit and pass the time. His Man
Friday aims to keep a balance between class and prestige, while still
maintaining a comfortable manly atmosphere. It should be a place where men feel
comfortable walking into, talking to our crew about products, using the
products, and proud to use our services.
His
Man Friday is more than just body wash and hot shaves; it's an experience for
Calgary's men. The experience is key; without it, men will have no tie or
desire to be a repeat client. Guys can have the luxury of partaking in any of
our grooming services while in-store (i.r. hair cuts, hot shaves), taking a
load off at the cologne bar, checking out and trying some unique products,
receiving advice from our crew, or just having a little time to themselves to
catch up on the game highlights. Above all this, contests, gift cards,
and in-store promotions can all assist men in their movement to transforming
into the man they long to be. Whatever men need, His Man Friday will be there
every step of the way.
This
store is created for men to express who they are, or perhaps portray who they
want to be. As a client, you are not seen as a dollar sign or a number, you are
seen as a potential representative and friend of the brand. You are literally
the face of His Man Friday; His Man Friday understands you; it is you. His Man
Friday provides men with grooming products and services in an atmosphere
dedicated to them. It's about time. The mission of His Man Friday is to offer
products and services to image conscious clients in a unique, masculine and
prestigious environment. Customers should walk out of our store feeling
confident in themselves with some expert knowledge of how to both use our
products and why they will work for their needs.
Customer
Segments
·
Men
- Primary Buyers & Primary Users
o
Men
will both be buyers and users of our His Man Friday products and services. We
are looking to target the everyday man who wishes to either maintain and/or
enhance his natural man through convenient and easy to use methods. First, men
are able to make use of our services such as getting a hot shave or a hair cut.
o
Second,
after receiving a hot shave or a hair cut men are welcome to purchase the
products used when receiving these services, or purchase any other product that
they may need.
o
Med
may want to just come into our store and see what we have to offer, or sit and
relax while they wait on their significant other to be done shopping.
·
Women
- Secondary Buyers
o
Women
want their men to look good and be presentable. Some times women do this more
discretely by giving hints to their partners, friends, or father. Typically
women buy products for men to use such as cologne, shaving products, or gift
certificates to get something they might like. Gifts like these are commonly
bought for birthdays, anniversaries, or Christmas presents for example. What
girl doesn’t want their man to smell and look great?
Customer
Relations
His
Man Friday recognizes the importance of having great and sustainable customer
relations. Being a retail business, His Man Friday will rely heavily on
ensuring our customers have a positive experience. Creating these
exciting experiences will create buzz and word of mouth (WOM) advertising that
will hopefully help to drive our success. His man Friday plans to execute this
by pin pointing our focus on listening to what the customer wants and desires,
staff friendliness, prompt and courteous complaint resolution, and providing
overall high quality products and service. At His Man Friday, the customer is
our most important asset; our goal is to keep the customer satisfied.
Key
Resources
One
of the most important resources we will need to be successful is the right
location to set up our business. We strongly feel that Chinook Centre is one of
those locations, as it has one of the highest volumes of daily traffic in the
province and is the most popular shopping centre in the City of Calgary. Our
other integral resource is our people - the individuals who will be interacting
on a daily basis with each customer that walks through our doors, and it is
they who will create excitement for our brand and who will create repeat
business.
Other
important resources that we will need to take advantage of include the use of
social media sites (Facebook, Twitter, Google+, etc...) and to also have a well
designed, simple to use website that will keep us connected with our customer
base outside of our store.
Key
Partners
The
key partners that we will need to acquire and maintain to help our business
grow and develop consist of four main groups/individuals:
·
Lease
Owners
o
This
group includes those from whom we are leasing the space necessary to house our
business. At the outset, we have chosen Chinook Centre to be our flagship
store, so we need to build a strong relationship with the powers that be who manage
the shopping centre as they have the authority to determine whether or not we
can set up shop in that particular location.
·
Cosmetics
Distributors
o
We
will need to secure a partnership with companies such as Gillette in order to
stock our store with various men’s care products as we do not plan on only
stocking our own products. As we grow our relationships with these
distributors, we will be able to seek out opportunities such as discounts and
be a bigger player in terms of economies of scale that will create barriers to
entry for other similar businesses.
·
White
Label Distributors
o
We
plan to stock our shelves with some products of our own label and brand, we
will need to seek out partnerships with potentially various white label
distributors in order to keep costs down. This will allow us to focus our
resources on the storefront side of our business and not worry about setting up
factories and production facilities of our own to manufacture our products.
·
Professional
Staff
o
We
will need to seek out professional hair dressers/barbers to work in our store,
as they will be necessary not only in providing exceptional service to our
patrons, but also in training less experienced staff. Should we decide to serve
alcohol in our establishment as well, we will require experienced
bartenders/mixologists in order to best serve our clientele as well.
Key
Activities
·
Find
White Label Supplier
o
We
will need to locate a supplier that offers the products that His Man Friday is
looking to offer but also meets our quality and quantity needs. Once we find an
appropriate supplier, we must seek legal advice to determine the details of a
supplier contract, which will then be agreed upon between His Man Friday and
the supplier (pending appropriate funding).
·
Find
Location
o
After
we solidified a supplier, we must find our location, and get pre-approved for
the lease. We must do this before funding to ensure that we have the tools in
place to the funds that we are asking for.
·
Pitch,
Pitch, Pitch
o
Once
a location is found, His Man Friday must collect the needed funds to start the
venture. As the owners, we will wrangle up as much cash as we can, then begin
to ask family, friends, and fools for investments. Then, if there is still a
balance needed, we will look to angel investors and venture capitalists.
·
Build
and Launch
o
Build
the store and fill it with inventory. Once we are operational, we can launch!
Channels
·
In-Store
o
This
method will be the main path we use to interact with clients. This allows us to
talk and get to know our customers face-to-face and build a stronger
relationship with them. These relationships can transform into strong brand
loyalty.
o
Products
and services are available on-site. Ranging from skin, hair, body, and shaving
products, we have everything that a man needs to keep them looking sharp.
o
Appointments
for services can also be made while in-store, and people can speak with any of
our crew members about our products and services.
·
Online
o
The
His Man Friday website will serve several purposes; not only will the website
market and promote our brand and our products, but it will also serve as an
other method to reach customers for them to purchase our products.
o
All
of the His Man Friday products will be available for purchase. Orders and
payment can be made directly on the site; men who visited our store who don’t
live in Calgary will be able replenish their grooming products whenever they so
need. Having this feature may be useful for other individuals who want to send
products to a family member within other parts of Canada.
o
Clients
are able to book online appointments for our services. Quick and easy
registration gives them no excuse to ignore our services. A couple clicks later
and men are fully registered for their in-store service according to the time
they set up with the system.
Cost
Total
Production Price*: $72,250 with 20% buffer: $86,700. This production price is based on
the fact that Chinook Center is an already established mall with existing
construction to separate stores into individual sections. This will cut down
our costs significantly in comparison to building a stand-alone store from the
ground up. These stores require us to build foundations, water, plumbing,
heating, electrical, and additional items that by having a store based in
Chinook, we eliminate dramatically if not completely.
Having
stated that our initial cost to build the building above at $86,700, and a
store that is approximately 1,300 square feet, we estimate the approximate cost
per square foot to be $66.70/sqr. ft. This may seam low, but when you look at
the fact that we do not require any of the expensive building requirements of a
stand-alone store, we are in the average ball park range for buildings a store
in a mall. In addition, we are keeping our store with an open concept feel with
lots of room to walk around in. This also decreases our price per square foot
at about half of our 1,300 square feet are a dedicated “no product” zone to
allow for easier movement between products.
Promotions
are an additional cost to us. Even though they will be designed in the end to
bring in more revenue for the company, we still need to take these things into
consideration. Our most significant costs for promotions will be ads through
television and radio. These ads will be the most costly, but in comparison will
be the lowest ranked in our promotions category. We will be mainly focusing on
Social Media to bring us a good chunk of our customers as this form of
promotion is relatively cheap for the amount of people that it will bring it; very
cost effective.
Operational
costs will vary between year to year. As our store expands and our relations
with our suppliers strengthen, we expect to pay less for shipping and
manufacturing costs, but as of now our average expenses for operating the store
and ordering products and service needs are approximately $650,000.
*background
data to support total production price located on prototype proposal spread
sheet.
Revenue
Total monthly income: $69,000 Annual income: $828,000
Products
|
Services
|
|
Avg
Price:
|
$8
|
$40
|
Avg
Daily Sales in Units:
|
200
|
15 – 20
|
Avg
Daily Revenue:
|
$1600 x 30 = $48,000/month
|
$700 x 30 = $21,000/month
|
Rational
for the above projections:
Part
of the way we differentiate ourselves from other men’s care products is that we
strive to offer lower cost products while maintaining the highest standards in
our products. As a result, our products average price is around the $8 mark.
With estimations of selling around 200 products a day, we combine these numbers
to achieve $1,600 worth of product sales each day, or around $48,000 per month.
Combine this with our estimation of selling 15-20 services a day at an average
of $40 per service for a total of $700 per day or $21,000 per month and you
come to our grand total of $69,000 per month. This equates to a grand total of
$828,000 per year in revenue*. Promotions will bring in additional revenue
because of word of mouth and excitement, but this number is difficult to obtain
since different promotions will bring in different amounts of revenue.
Average
Annual Income less average annual expenses = average annual profit
=
$828,000 - $650,000 = $178,000
*note
that this does not include the deduction of costs associated with operating out
business.
0 comments:
Post a Comment