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2011
ZAZOU SALON AND SPAThis report will analyze Zazou Salon and Spas current ebusiness applications and make
recommendations to improve upon their systems.
BMKT 315 EBusiness Analysis and Administratio
Ebusiness Consulting ProjectNatalie Brown, Jessica Desjardins, Joanna Frandsen, Zoe Fu, Robin Toorenburgh, and Dan
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Table of Contents
List of Figures .................................................................................................................................. 3
Executive Summary ......................................................................................................................... 4
Introduction .................................................................................................................................... 7Company Overview ......................................................................................................................... 9
Zazou Mission, Vision, and Values .............................................................................................. 9
Corporate Objectives ................................................................................................................ 10
SWOT Analysis .......................................................................................................................... 10
Perceptual Map ......................................................................................................................... 11
Current Situation ........................................................................................................................... 13
Customer Relationship Management ....................................................................................... 13
Sales Department ..................................................................................................................... 14
Human Resource Department .................................................................................................. 14
Accounting Department ........................................................................................................... 15
Supply Chain Management ....................................................................................................... 15
Marketing Department ............................................................................................................. 15
Recommendations ........................................................................................................................ 17
1. Improve goal setting application .......................................................................................... 17
2. Enhance CRM programs and activities ................................................................................. 18
3. Improving Internal Communication...................................................................................... 19
4. Inventory Management ........................................................................................................ 20
5. Online Appointment Booking ............................................................................................... 21
6. Marketing .............................................................................................................................. 22
Final Recommendations ............................................................................................................... 23
1. Human Resources Recommendation ................................................................................... 23
2. Marketing Recommendation ................................................................................................ 31
Conclusion ..................................................................................................................................... 39
Works Cited ............................................................................................................................... 41
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List of Figures
Figure 1. Zazou Salon and Spa SWOT Analysis ............................................................................. 11
Figure 2. Zazou Salon and Spa Perceptual Map ............................................................................ 12
Figure 3. Milano Supply Chain Management ................................................................................ 21
Figure 4. Performance Management Planning ............................................................................. 25
Figure 5. Microsoft SharePoint ..................................................................................................... 27
Figure 6. Zazou Salon and Spa Homepage .................................................................................... 31
Figure 7. New Website Title .......................................................................................................... 32
Figure 8. Example of Zazou Facebook Advertisement .................................................................. 34
Figure 9. Example of Zazou Google Advertisement ...................................................................... 35
Figure 10. Example of Zazou Groupon Advertisement ................................................................. 36
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Executive Summary
We are excited to present to you a detailed executive summary of our report. We were
fascinated to help inspire Zazou Salon and Spa improve their current situation by reviewing
their current processes and practices in order to identify some key weaknesses that could be
substantially improved through the use of creative ebusiness applications.
What you will find in our report is a brief introduction, the company overview including the
mission, vision, values, assumed corporate objectives, SWOT analysis, and perceptual map. In
addition, the current situation with respect to Customer Relationship Management (CRM),
Sales, Human Resources (HR), Accounting, Supply Chain Management, and Marketing are
analyzed. We then determined six key areas from which we made general recommendations
then expanded on two distinct aspects that we felt Zazou should concentrate their efforts in the
short term: Human Resources and Marketing.
These two main aspects were identified because of their direct link to the corporate objectives
as areas that needed improvement in order to gain a return in the spa side of the business and
develop and increase in leads for new clients. We decided that it would be beneficial to invest
in improving the current practices for Human Resources with a focus on improving internal
communications and developing an online performance management system that could
support staff. This would allow employees to update their own performance behaviour, set
goals, receive up to date news, access goals and sales frequently, and provide a level of access
individually in order to help increase sales and develop career planning paths. We felt the
importance of improving communication online is essential, although Zazousmanagement is
excellent about having regular huddles that help maintain employee morale (and we agree
these should still continue). Having open communication will improve the relationship between
management and staff by offering immediate feedback and updates as needed in order tobetter meet customer needs. It will enable managers to post an update about a product they
would like promoted, a unique request to be met, or to point out a certain day that needs more
attention to attract bookings. It is important to have a source of communication that can also
be private instead of during huddles as people have differences in their communication
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preferences. Based on our analysis of the Human Resources ebusiness applications, it would be
valuable to consider purchasing a system through SAP Business Objects or modify the Milano
software. If they are not already using the program, it is recommended to acquire Crystal
Reports to implement this application. The second part of the implementation is to download
Microsoft SharePoint for the communication aspect. From a financial perspective based on an
estimated budget within the report you will see that using the current Milano system will likely
be much more affordable to upgrade rather than starting out with a whole new system. We
recommend that you invest some time to talk to a representative about options to incorporate
this into your current system. As Zazou employees are very important assets to the company, it
is important that their skills and abilities are used to their full potential to increase customer
satisfaction, which can lead to an overall increase in company sales however they need thetools to do so.
The second recommendation is to put a larger focus into unique and creative ebusiness
applications for Zazous Marketing. It also includes making improvements to certain marketing
aspects you are currently using. Thinking outside of the box can be challenging so we hope that
we have given you some new ideas to run with and see what works best for your company.
There were three main areas that we focused on: Website Modifications, Social Media
Activities and Online Advertising and Promotions. Some of the key items included are to create
online employee biographies and photos, client makeover pictures, and add a few specific
menu options. As well, new recommended twitter updates, YouTube videos, updated Facebook
page, and several types of advertising and promotion ideas through banner advertisements,
Facebook, Google and Groupon. One specific idea that many companies, including various salon
and spas, are using are Google ads to increase their search ability, and offering a special
promotion on Groupon to attract new customers to the company. As trends change it is vital
for Zazou to keep up on those social media ideas in order to develop more brand awareness
and keep current customers interested while attract new ones. It is imperative to increase the
use of your social media sites to keep customers engaged and updated on the company. Each of
the recommendations includes a basic implementation plan as well as an estimated budget.
Since there are so many other great ideas that our team recommends, especially in the
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marketing area, we suggest you sit down, have a cup of your favourite specialty drink at the
shop across the street and soak up the creative suggestions for ebusiness applications that can
change the way you do business in an exciting way. We hope you enjoy the report and sincerely
thank you for the opportunity to work with you.
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Introduction
The following report contains a background on Zazou Salon and Spa and how the company
currently uses ebusiness applications, followed by recommendations on ways the company can
improve their ebusiness use. Zazou Salon and Spa is a local company based in North Vancouver
which is currently growing and wanting to increase their use of ebusiness applications to
increase the companys productivity and efficiency. The report begins with an overview of the
company, including the companys current uses of ebusiness applications and software the
company uses for its everyday business procedures. Based on the areas that Inspiration
Consulting and Zazou see that can be improved, recommendations are made and included in
the report.
The project was prompted by the groups need to complete an ebusiness Analysis project for
the eBusiness Analysis & Administration course at Capilano University. After meeting with
Zazou Salon and Spa, it was evident that the company was willing to work with the group and
was aware of the weaknesses in regards to their ebusiness applications. Because of the teams
interest Zazou Salon and Spa and Zazous willingness to work with the group and their desire to
improve their use of ebusiness, the project was conducted.
The report covers ebusiness applications for Zazou in the areas of Customer Relationship
Management, Human Resources, Marketing, Sales, and Supply Chain Management.
Recommendations are included on how the company can improve its use of applications in
these areas. The report is meant to help Zazou Salon and Spa understand their current uses of
eBusiness, and ways the company can improve certain areas of their business functions through
the use of different ebusiness applications. As Trites states, ebusiness is the use of technology
to integrate and streamline the business processes, enterprise applications and organizational
structure of a business to create a high-performance business model (5). Zazou can clearlybenefit from ebusiness as it will incorporate the strategic use of information technology to
achieve their corporate goals (Trites 5).
The report will contain a background on the software and systems Zazou currently has in place,
some weaknesses in these systems, and recommendations based on these weaknesses and
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concepts learned in class. The report also contains a budget, suggested software, and a timeline
and implementation plan on each of the key recommendations. The report does not contain a
business plan or marketing campaign for the company or any primary research on the
companys current ebusiness applications and their usability from customers, suppliers, or any
other individuals outside of the organization.
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Company Overview
Zazou Hair Salon and Spa first opened in 1992 by Bruce Peters (Peters & Cowie). Coming from a
family of hair dressers it was only natural for him to open a salon of his own. The salon spent
many years at a small space in an open design strip-mall in Lynn Valley, North Vancouver.
However, the news of the new Lynn Valley Library building gave Mr. Peters a phenomenal
opportunity to expand his salon to a new, bigger and brighter space allowing him to realize his
dream of incorporating spa services to his business as well (Peters & Cowie). In 2008 Zazou
Salon and Spa opened up their 2200 square feet location in the heart of the new development
(Peters & Cowie). Currently, one of the most challenging aspects for Zazou is the fact that there
is not a consistent parallel among salon users with spa services (Peters & Cowie). Zazou is not
seeing the desired sales in the spa services as would be expected for an increased space of this
size.
Zazou has always been very involved in community events (to mention a few, events during the
Olympics and yearly Canada parades, etc.) and relocating just across the street from the old
location was perfect so that all of his current clientele would not be inconvenienced. Plus the
new location is very chic and modern. The overall customer service and quality of service that
Zazou Salon and Spa provides is excellent and feedback from current customers support this
(Peters & Cowie). The owner and general manager are committed to giving each customer a
unique experience and are willing to listen to any recommendations that Inspiration Consulting
has to offer.
Zazou Mission, Vision, and Values
Mission
We rejuvenate everyone we touch.
VisionZazou Salon and Day Spa aspires to become the hybrid Ferrari of the North Shore Salon and
Spas. Our genuine, passionate Team is dedicated to achieve success by changing the world one
satisfied Guest at a time. We are proud to create a welcoming, exciting, intimate and cool
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environment that is rejuvenating and attractive to our loyal Guests. We believe that Zazou
Salon and Day Spa is a unique aspirational lifestyle brand that enhances and supports everyday
life. Were community focused and globally minded.
Values
Respect. Truth. Love.
Corporate Objectives
Zazou has six corporate objectives that they would like to achieve. We will make sure to suggest
recommendations that will help Zazou to meet their corporate objectives as well as improve
upon their current ebusiness practices. Their objectives include:
To increase spa users from current levels monthly To see a positive return by the end of year on the spa side of business To increase spa awareness with current salon clients and new potential clients To increase individual overall sales targets and achieve objectives through enhanced e-
business applications for staff
To increase internal and external communication through enhanced e-businessapplications
To continue building business relationships with product suppliers and continue seekingways to simplify outdated processes
SWOT Analysis
The SWOT analysis will give insight to Zazous internal strengths and weaknesses as well as its
external opportunities and threats. The SWOT, seen in Figure 1, shows what Zazou does well
and where there are areas for improvement. We will use Zazous strengths, weaknesses,
opportunities and threats to give us direction when we analyze their business and providerecommendations for Zazou.
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Perceptual Map
To discover where Zazou is situated compared with their competitors we developed a
perceptual map which can be seen in Figure 2. Zazou is a trendy and upbeat salon and spa
focusing on the latest styles in hair as well as salon appearance. Their main competition is Spa
Utopia and Absolute Spa. These two salons are much larger than Zazou and have several
locations throughout Vancouver. In terms of consumer perception, Zazou is not seen as trendy
or as luxurious as Spa Utopia and Absolute Spa.
Strengths
all in one spa and salonservices
friendly staff
excellent service standards
veryy supportive and involvedmanagement
customer loyalty
facilities are modern andinviting
Opportunities
social media trend
online advertisingand promotion
advancements intechnology
Weaknesses
one location
inconsistentappearance/dress code
expensive product line
poor internal
communicationcomplex processes for
simple procedures
limited knowledge ofcurrent software
Threats
high competition in NorthVancouver
behind competition in
terms of online promotionand advertising
weaker economy ispreventing people from
spending money on luxuryactivities
Figure 1. Zazou Salon and Spa SWOT Analysis
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LUXURY
TRENDYTRADITIONAL
VALUE
Zazou
Spa Utopia
Chatters
Absolute S
Angelos Salon and Spa
Karma
Figure 2. Zazou Salon and Spa Perceptual Map
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Current Situation
The following sections will describe Zazou Salon and Spas current situation in the functional
areas of Customer Relationship Management, Sales, Human Resources, Accounting, Supply
Chain Management, and Marketing. The sections will cover details about Zazous current
processes in these areas.
Customer Relationship Management
Customer Relationship Management is vital to successfully run a salon. Consumers choose
services based on the customer service that is offered. Because there are so many complex
areas of CRM within this industry, we will focus on a few specific areas that Zazou is not
utilizing.
The first aspect that we looked at was the booking process at the salon. The process of booking
an appointment at Zazou Salon is complex and requires the following process:
1. The customer emails or phones to check the availability of appointments.2. The employee offers available times to the client via phone call.3. Customer confirms the date the time.4. Employee reminds the customer a few days before appointment.5. Customer comes into salon for appointment.6. First time clients are called back after appointment and are sent a survey and thank-you
card.
7. There is no follow up with existing clientele.This process could be refined by incorporating different ebusiness applications which will be
discussed further on in the report.
The second area of CRM that Zazou discussed in the interview was their customer databases.
Zazou has a customer database that includes names, phone numbers, birthdays, and addresses.
Currently, this database is not connected to their email marketing software, Constant Contact.
Zazou feels this area of their business is a weakness and believes they could be utilizing the
software better if they were connected. Zazou would like to communicate with their customers
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more efficiently through the use of online and social marketing instead of their current method
card mail outs and newspaper ads.
Sales Department
Monitoring sales and making forecasts is very important for a small business. Zazou is currently
finding weaknesses with their sales software, Milano (Peters & Cowie). This software was
bought off the shelf forcing Zazou to make changes to their business processesmainly sales
(Peters & Cowie). Milano is the leading software company specializing in salon, spa, medispa
and retail software (Milano). Currently the system is not able to set specific goals for the
employees to achieve. The general manger has to manually create and input sales goals that
employees are required to meet. The software then creates a schedule based on the monthly
sales goals. Management would like to see the process reversed, and would like to be able to
create a schedule and then have the software project monthly sales goals for them (Peters &
Cowie).
Another hindrance with the Milano software is that staff cannot access their sales statistics
themselves. Currently, employees have to ask management for their updated sales (Peters &
Cowie). This process is inconvenient to both the staff and management.
Human Resource Department
Internal communication between the employees is essential for Zazou to operate productively
on an everyday basis. The Milano software keeps track of employeeshours, commissions, and
pay (Milano). Staff can log into the system to access their daily appointments; however, they
are not able to send emails or communicate with coworkers (Peters & Cowie). Zazou would like
to see a change in the communication channels to better support their employees. Zazou feels
that their daily communication is a current weakness within their company. They have a daily
huddle with their staff to brief them on the days activities. Zazou would like to find new ways
to improve communication within all levels of the company.
Zazous performance management is done by hand on a monthly basis. The process includes a
handwritten performance appraisal which is then manually filed in each employees folder
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(Peters & Cowie). By incorporating ebusiness this process could be simplified and more
effective for both management and staff.
Accounting Department
Sales are tracked by the Milano software, but Zazou uses an external bookkeeper that is
responsible for all accounting procedures (Peters & Cowie). This is not an area that Zazou would
like to focus on.
Supply Chain Management
Small businesses such as Zazou have little control over their supply chain activities. Since Zazou
concentrates on the sell side of their business, the control of the buy side is transferred to their
different suppliers. Zazou currently has 6 main suppliers of salon and spa products (Peters &
Cowie). They communicate with their suppliers by phone or email. Zazou orders weekly or bi-
weekly depending on the type of product. Suppliers complete orders in one of two ways:
1. Supplier comes to the store and evaluates the inventory needs of Zazou. Theycommunicate with management to customize the orders specifically for the salon.
2. Suppliers fill order amounts once they are notified from Zazou. For example, if Zazouneeded more hair gel they would call their specific supplier and order exactly what they
need.
Marketing Department
Zazou Salon and Spa currently uses their website, search engine marketing, social media sites
including Facebook and Twitter, and a monthly newsletter in their digital marketing.
Website Design
The website www.zazou.ca offers many of the features visitors would be looking for when
visiting the site. The website is laid out in a way that is easy for visitors to navigate through. It
contains information about the companysservices and pricing, photos, testimonials, a video
tour, and more. The companys website communicates the businesss value proposition and
brand positioning well.
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Search Engine MarketingZazou salon has high search results when using search engines. When searching North
Vancouver hair salon, Zazou appears first, and fourth when searching North Vancouver spa
on Google, and second when searching hair salon or salon and spa.
Social MediaZazou uses both Facebook and Twitter to promote the companys newsletter, events and
promotions; however, these sites are not updated frequently.
NewsletterThe companys opt-in monthly newsletter includes information about what is happening at
Zazou that specific month, beauty tips, and links to different sections of the website. The layout
and design of the newsletter is very simple.
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Recommendations
After reviewing the companys objectives and present situation in the variousareas, we have
developed six ebusiness recommendations to be considered by Zazou. The benefits of
ebusiness include increasing sales, reducing costs, improving customer service, responding to
competitive pressure, and expanding market research (Trites 14-17). Following these
researched areas, we have chosen two detailed recommendations that will be described in
further detail.
1. Improve goal setting application
Currently at Zazou Salon and Spa, the owner and general manager are challenged to come up
with monthly goals for their staff to meet. It is difficult enough to determine what these goalsshould be and we would like to see changes made to their current system with Milano to
enhance this area.
Specifically, having the ability to take the current schedule, current staffing levels, and available
appointments and automatically input goals that the staff can monitor and achieve at their own
convenience. The limitations of the current system do not allow for this to automatically occur
so the general manager or owner must regularly update the system to show the goals.
The other aspect that works in synergy with the actual goal setting is allowing the staff to see,
at any point in time, where they are at with their own personal goals. Currently, the general
manager must print off the sales reports for staff and this tends to only happen if they are
asked by a staff member to do so. We recommend that this be adapted into the Milano system
so that the staff can view a current, up to date measure of where they are at for the day, week,
month, etc.
The benefits to of making these two particular changes to the ebusiness application arepersonal accountability (that can be tied into the performance plans), increased motivation to
book new and repeat customers, ability to monitor trends, and hopefully increase sales.
Having clear objectives and goals are key to increasing sales. Without up to date knowledge,
especially in a partly commission-based pay structure, the staff may feel as if they have met
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their quota and stop working as hard, underestimating what they have actually completed. The
system should also offer the staff the ability to view a breakdown of service sales versus their
product sales so that they can focus on what they need to sell more of, or perhaps where they
consistently excel. By having the ability to track which staff excel in certain areas of sales, or at
certain times of the year, as the owner, you can tap into that resource and determine what that
employee is doing different than everyone else, and then apply those principles to your
performance plans.
2. Enhance CRM programs and activities
Zazou Salon and Spa is currently experiencing a gap between their customer database and their
direct email marketing software, Constant Contact. Combining these two programs would help
to create stronger relationships with their current and potential clients. Although Zazou can
send general customer emails, they are not able to tailor these messages because the client
database isnt connected to Constant Contact. It is recommended that Zazou incorporate their
client database with their Constant Contact software in order to better communicate with their
clients. Constant Contact allows the company to create customer profiles for each email
address added to the system. Profiles include different demographics, comments/notes,
preferences and favourite services and/or products.
The first suggestion would be to incorporate customized email campaigns based on clients
buying behaviour and demographics. Clients could be sent birthday emails and reminders to
book additional appointments with Zazou. With Constant Contact, Zazou can group customers
into different categories based on clients preferences and past appointments. A promotional
incentive would be included in the emails to encourage them to book their next appointment as
well. Each email campaign can be easily measured and compared using the software. This way,
Zazou can easily identify which campaigns are successful and which are not.
Zazou Salon and Spa is constantly looking for new and exciting ways to communicate with their
clients. Establishing many strong communication channels with clients is vital in order for Zazou
to develop long lasting relationships. It would be beneficial for Zazou Salon and Spa to add to
their current CRM strategy in order to retain their most valuable and profitable clients. The
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second CRM suggestion would be to incorporate text messages in order to confirm and follow
up with clients. Employees at Zazou would be responsible to text message each client with a
scripted message either reminding the client of their next appointment or thanking them for
their previous appointment. The text message would make the CRM system more efficient by
replacing a reminder or follow up phone call and thank you card. This process would save Zazou
time and money in the long run.
Another suggestion is for Zazou to update their customer database more frequently with more
valuable information. Different client behaviour such as preferences and favourite services
could be added in order to generate a deeper understanding of each client. An online survey
can be sent to every clients email through Constant Contact in order to receive this additional
information.
3. Improving Internal Communication
During the initial meeting with Zazou, they expressed interest in improving their internal
communication systems (Peters & Cowie). Ultimately, they would like to have a better flow of
communication between management and employees. The current Zazou communication plan
includes several different forms of interaction with their employees:
Daily staffs huddle to discuss goals, current issues, and motivate employees.
Performance management system that is done manually on a monthly basis by paperwhich is then filed in the employees separate files. The report identifies whether or not
the employees met their sales and service goals for the month.
Staff meetings to discuss general business practices including staffing, training,scheduling, goal setting, and other important news.
Based on the current communication plan, we were able to identify several areas of
improvement for Zazou. Firstly, we would like to applaud Zazou for their daily staff huddles.
This is a great way to increase employee morale and we would not like to see this go. However,
we do see that there are a lot of opportunities for Zazou in their performance management
system. We would like to see the program switch from paper format to electronic format.
Instead of printing off the employees performance reports and filing them for the employees
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to review at the end of the month, we would like to see the reports being emailed to each
employee. To ensure they have read it, they should respond to the report. We also believe
internal communication could improve by sending an internal weekly e- newsletter to the staff
to share information with them. This could be a fun way of communicating and could be done
fairly informally. To keep things simple, the newsletter could just be a page or two and highlight
important information that the staff should be aware about. Employees could take turns
writing the newsletter in order to share the workload.
Another suggestion in improving internal communications would be to send motivational text
messages to each of the employees. This is a personal way to say great job or keep up the
good work. It is private and can be done in just a minute or two. We do not suggest only
texting your employees as a way of communicatingbut a quick text now and again can be
very motivating for your employees.
4. Inventory Management
Zazou Salon and Spa carries a range of cosmetic and spa products for retail sale at their salon
location. The products are ordered from the companys five main suppliers. Currently, Zazou
tracks their inventory of their products by doing a monthly physical count of what is in store.
Tracking inventory by conducting a physical count can carry a great risk of error and can be timeconsuming. Also it doesnt give the company a constant real time count of inventory. As Zazous
product lines are increasing and the company is looking into starting their own product line,
Zazou could greatly benefit from having an inventory management software system in place.
The Milano software that the company currently uses offers an Inventory Management feature
that allows for electronic physical counts of inventory and can accommodate for UPC and SKU
codes (Milano).
Tracking inventory as it is bought or sold will allow Zazou to have up to date knowledge of their
inventory count and will be able to recognize which products need to be replenished more
quickly or which products are not being sold as much. The software application will also
automatically produce purchase orders when items need to be ordered. This will also save time
because a physical count of the products will not be needed. Tracking inventory on the
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Source:http://www.milanosoftware.com/images/retail/retail_inv.jpg
software will also allow Zazou to look at any historical date to see their inventory movements at
that time, so they are able to prepare for busier periods of certain products, or easily see how
products are performing.
Figure 3. Milano Supply Chain Management
5. Online Appointment Booking
Currently, Zazou Salon and Spa does not allow customers to book appointments online. When
discussing this option with Zazou, the company expressed concern with customers booking
appointments at unavailable times (Peters & Cowie).
Online scheduling is becoming increasingly popular as consumers are more comfortable and
knowledgeable using the internet. Many salons and spas are beginning to offer online booking
options for their customers. For example, Spa Utopia, one of Zazous biggest competitors,
allows customers to make online appointments for many of the companys services.
Because Zazou Salon is concerned with the possibility of customers booking unavailable or
inconvenient times for certain services or employees, the online booking system could be set
http://www.milanosoftware.com/images/retail/retail_inv.jpghttp://www.milanosoftware.com/images/retail/retail_inv.jpghttp://www.milanosoftware.com/images/retail/retail_inv.jpghttp://www.milanosoftware.com/images/retail/retail_inv.jpg -
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up as an email notification. The customer can fill out their information, email address,
requested date, time and services, and the request can be sent as an email to Zazou and an
employee can respond to confirm the appointment, or suggest other times if the time is not
available.
Allowing customers to send appointment requests online also allows them to contact the
company anytime of the day, even when Zazou is closed. The online contact can also cause less
people calling in to book an appointment and an employee having to flip through appointment
books and trying to figure out a time right on the spot.
6. Marketing
Website Recommendation
The website is very well laid out and designed, however the homepage includes a lot of text
which can make it overwhelming. The homepage is usually the first page website users visit,
and many visitors may not be interested in reading the amount of content posted. The
homepage should be able to attract and capture the visitors interest. The website could also be
used to offer more of a connection for the company with its customers such as with before and
after photos of the salons hair services.
Social Media Recommendation
Zazou can take advantage of the benefits of social media sites by offering more frequent
updates. The company can include more posts and updates about new products, promotions,
beauty tips, and contests. For example, Zazou can get more followers on Facebook and Twitter
and keep visitors returning to the sites. The company could also use these applications to start
contests and promotions and generate more awareness about the company.
Online Advertising and Promotions Recommendation
Zazou Salon and Spa can use the Internet to advertise their company and reach a wide market.
Banner ads on related websites or Facebook ads are examples of some online advertising
options Zazou could use. The company can also take more advantage of search engine
optimization through paid advertising search results.
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Final Recommendations
The two recommendations we have chosen to expand upon are in the Human Resource
Department and the Marketing Department. Human Resources was chosen because building
upon the companys human capital and ongoing career development can increase employee
retention and engagement, leading to increased customer satisfaction. We chose Marketing as
the second area to build upon as one of the companys main objectives is to develop the spa
and we feel it is important to create more brand awareness in new creative ways.
1. Human Resources Recommendation
There are two areas in Human Resources that can be improved upon. Zazou can focus on their
Performance Management Planning to help increase employee engagement and careerdevelopment in order to positively affect overall customer relationship management. We would
also like to see Zazou focus on Internal Communications in synergy with improving Performance
Management Planning in an effort to have a consistent plan in place.
Performance Management Planning
After reviewing the various options for improvement we have decided that one of the most
valuable assets at Zazou is its employees. Zazou has developed a unique team of employees
which all bring various skills, abilities and knowledge to making each customers experience
excellent.
What is lacking is clear direction on a consistent basis with respect to performance planning.
This is both from a daily and monthly perspective. From a daily perspective the employees
need to be able to see very quickly where they are at with the goals that management assigns.
Since the current method is for the general manager or owner to print off a sales report by
request, the employees are less likely to request this daily. It is also a waste of resources andpaper. From a monthly perspective when performance plans are completed one-on-one, these
are filed in a cabinet not to be looked at until the next month. Often motivation and definition
of corporate objectives get lost within the paperwork without having easy access for employees
to see and be reminded of where they should be with their goals.
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Several years ago various companies started using online performance plans replacing the
traditional paper method which often gets forgotten or missed. Online performance plans
enables for easy access for employees at their own convenience to see where they are at with
their goals, to see what exactly their goals are, and to keep a log of what good things they have
done to contribute to the success of Zazou. For career development, it is an excellent resource
to provide employees with the option to make an immediate note online about what they did
over and above normal expectations for a customer. This helps to build confidence and will
show management new and sometimes unique ways to develop customer service practices
using direct situations from your employees.
ICBC will be used as an example to show how businesses are using the internet for their
performance management. Companies such as ICBC, who just started using an online version
approximately two years ago, currently require their claims staff to log two excellent customer
service situations per quarter (ICBC). This one pillar within the performance plan helps to keep
staff reminded about this high standard, and then look for situations where they can truly
impress and help someone more than what is required; situations where an employee does go
over and above helps to build what they call the BBQ score, how people rate your business and
what they say when chatting around a summer BBQ. Since people have a tendency to complain
to others more often about poor service than positive service, the online performance plan is
an excellent method to keep a log of good customer service situations, areas of development,
training, requests for support from management, overall corporate goals, individual goals, and
allowing the employees to see the connection between all the layers of objectives. We feel the
main objective using an online performance plan at Zazou will achieve is an increase in internal
and external satisfaction.
It is possible that Milano may offer an option of an online performance plan at a less expensive
price than for example SAP or Salescloud. It appears that on Milanos website they offer a
feature called Staff Management (Milano). Figure 4 is an example of what the feature looks like.
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However its unclear whether or not Zazou currently has access to this feature, if it would be an
upgrade, and whether or not it offers the option for performance plans within it. We would
recommend that in an effort to keep costs down for Zazou that they phone a technical
representative (18006671596)at Milano to inquire how to incorporate performance plans
into the current system or the cost of adding a bundle upgrade. The same inquiry can also be
made through SAP Business Objects here in Vancouver to see if there is a more affordable
option that may be able to work more effectively within your current systems without having to
completely overhaul a new ERP system. The cost of SAP Business 1 system for a small business
is approximately $30,000 however there is a wide range in price depending on needs. Another
option if Zazou were to focus on solely the report aspect of sales where staff can access their
own sales conveniently at a much less expensive option would be through using Crystal
Reports. For one user it would cost approximately $100, but then it would increase depending
on the number of users you would want to add on with access. An SAP accounts representative
may be able to help provide some insight onto further options for Zazou to consider. It is
Source: http://www.milanosoftware.com/images/spa/spa_staff.jpg
Figure 4.Performance Management Planning
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important to note that although performance plans are often seen as just a formality for some
employees, the online format helps them to connect the importance of performance plans to
overall customer relationship management. Although it is difficult to change to a new system at
first, we expect that the outcome of using an online performance plan system will increase your
sales, since goals and achievements will be so easily accessible, staff will strive to regularly
improve their results. The plan will also help to increasingly identify which employees may need
further training and where to focus on improving employee morale.
Internal Communication
Internal communications is one of the most crucial areas for any business. Without proper
communications amongst those in an organization, mistakes can be made or opportunities lost
due to the lack of proper information being shared and reaching the right individuals.
Currently, Zazou finds that their internal communications is an area that can be improved, as
the company does not have a way to effectively communicate with its employees and
encourage employees to communicate with each other. Although the morning team huddles to
discuss goals for the day are important, more communication is needed as these huddles alone
can be ineffective since not all employees are present, and various events can occur throughout
the day that need to be recorded and communicated. Having proper communications channels
in place can ensure the right employees are receiving the right information at the right time.
Being able to communicate effectively can reduce errors across the organization, increase
employee job satisfaction, and ensure all employees are aware of occurrences within the
organization.
Zazou Salon and Spa could greatly benefit from the use of a company intranet. An intranet is a
site that can be accessed from the web by members of the organization from wherever they are
located. An intranet can just been seen by people internal to the organization (Trites 10). Theyare simple, easy to use and are compatible with other systems (Trites 62).
Microsofts SharePoint provides an intranet where employees can log in and share information
and access company resources. Microsoft SharePoint allows for content to be updated so that
employees have access to documents and resources that are easily searchable and up to date.
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58-21/Send-to-Records-Center.png
The intranet allows integrated calendars to show each individuals work schedule on one
calendar, as well as separate calendars. The site also offers a community feature, allowing
employees to communicate with each other and share knowledge and ideas. Zazou can
encourage employees to communicate with each other through blogs, discussion topics, and
surveys posted on the intranet. The software can be downloaded online, and can be easily
customized for Zazous. The program costs $6.68 per user per month and is later explained in
the budget.
Using the intranet will not only allow Zazous employees to communicate amongst each other
and access company documents and information such as sales reports, customer feedback
reports, employee manuals, vacation request forms, schedules, etc, but Zazou can also
communicate with its employees by publishing updates and notifications. Zazou can
communicate through the intranet with updates and internal newsletters that communicate
goals, tips, and recognize outstanding employees. Having an internal newsletter can help
motivate employees by recognizing their accomplishments and reinforcing goals the company is
striving to reach. The site can also be set up to send out email notifications when updates occur
on the site. An example of a basic SharePoint homepage with calendars, tasks, team
discussions, and announcements is shown below in Figure 5.
Figure 5.Microsoft SharePoint
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To implement an internal communications plan using a company intranet, Zazou would need to
assign an individual, or individuals, to create and maintain the site and decide what information
should be accessible from the intranet. The company must also ensure that all members of the
organization are aware of the change and are on board to use the site effectively. Once the
intranet has been purchased and set up, Zazou would then need to train all employees to
ensure that each individual has access to the site and knows how to properly use each of its
features. The company must stress the importance of the site to make sure all employees are
logging onto the site on a regular basis. Ensuring all members know the value of their
information to the organization and opening proper lines of communication can help encourage
employees to share their knowledge across the organization. Effective communications within
an organization can lead to increased efficiency and productivity.
With effective internal communications plans in place, management can easily communicate
with employees and individuals within the organization can easily access information and
communicate with others in the organization, no matter where they are located. The effective
use of a company intranet will not only allow employees to be more knowledgeable about the
organization with up to date information, but will also allow them to connect more with the
company and others within the organization. Individuals will feel more open to sharing
knowledge with the company, feel more up to date, and be more motivated to work towards
reaching goals. Having an internal communications plan that is effective can lead to increased
efficiency and productivity, and therefore hopefully lead to increased profits from an increase
in sales and cost savings from errors.
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Recommended Implementation Plan
Human Resources Implementation Plan
Task/Activity Explanation
Start
Date Dur Due Date Assigned to
Research & Confirm Option 1 or 2 15-Apr-11 15 30-Apr-11Contact Milano 15-Apr-11 0 15-Apr-11 Bruce/John
Contact SAP Business Objects 18-Apr-11 0 18-Apr-11 Bruce/John
Research Microsoft SharePoint 18-Apr-11 4 22-Apr-11 Marketing Rep
Business Intelligence Research See what competitors are using 15-Apr-11 15 30-Apr-11 Marketing Rep
Decide on Option Management Meeting 29-Apr-11 0 29-Apr-11 Bruce
Planning 1-May-11 31 31-May-11
Decide what information to include 1-May-11 6 7-May-11 Bruce/John
Plan on When/ How to keep staff informed
Meeting with Bruce/John &
Marketing Rep 1-May-11 13 14-May-11 Bruce/John
Who has access to what information 14-May-11 17 31-May-11 Bruce/John
Designing Staff Training Sessions Team meetings 14-May-11 17 31-May-11
Hired
Company
Implementation & Evaluation 1-Jun-11 44 14-Aug-11
Training session with technical rep from company Upper management meeting 1-Jun-11 6 7-Jun-11 Bruce/John
Staff Training Sessions Team meetings 7-Jun-11 14 21-Jun-11 All
Overlap current system with new system 7-Jun-11 54 31-Jul-11 John
Followup session with staff - feedback 21-Jul-11 10 31-Jul-11 All
Make recommended changes/discontinue old
systems 1-Aug-11 13 14-Aug-11 Bruce/John
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Recommended Budget
Option 1
Business Process Fixed Cost Variable Monthly Cost
Microsoft SharePoint $0 $6.68 per user x 35
Crystal Reports $100 $6.00 per user x 25
Milano Package Upgrade $1,000
Milano Internal Onsite Trainer $1,000 As needed basis
Total $2,100 $12.68 per user x 35 = $443.80
**All costs above are estimated and require verification
Option 2
Business Process Fixed Cost Variable Monthly Cost
Microsoft SharePoint $0 $6.68 per user x 35Crystal Reports $100 $6.00 per user x 25
SAP Business 1 $30,000
SAP Internal Onsite Trainer $10,000 As needed basis
Total $40,100 $12.68 per user x 35 = $443.80
**All costs above are estimated and require verification
To summarize the above two budget options, we feel that Option 1, using the current software
through Milano and looking into an upgrade option, will be the most affordable option for
Zazou and should help to rectify the current barriers it has been facing in human resources.
Although the implementation of a Human Resources plan including software for both goal
setting applications and internal communications may seem like a large upfront cost, we
believe the benefits of these systems will outweigh these costs and help Zazou increase its
profits. Having appropriate goal setting applications and internal communications can help
Zazou run its business more efficiently through appropriate scheduling and can also help the
company to easily identify weaknesses and strengths and set appropriate goals accordingly.
Having a company intranet will also allow employees to be more involved with the company
and updated even when they are not on shift. Through improving these areas in Human
Resources, Zazou will increase its employee morale and productivity, therefore leading to an
increase in efficiency and customer satisfaction.
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Source:http://www.zazou.ca/
2. Marketing Recommendation
Zazou Salon and Spa is currently using many different online marketing techniques. Their
website is user friendly, interactive and is representative of the companys brand. Zazou utilizes
social media by using Facebook, Twitter and a blog located on their website. The Constant
Contact software is used to send newsletters to subscribers. The following recommendations
will be able to enhance their current online marketing strategies while making the different
mediums more cohesive. We recommend that Zazou Salon and Spa improve upon the following
areas:
Website Modifications Social media Online advertising and promotions
Website Recommendations
Zazou Salon and Spas homepage is very visually appealing from first glance. As the user scrolls
down the page the content looks cluttered making it difficult to focus and read the information.
We recommend eliminating the text shown in Figure 6 and moving to a separate menu option
labelled PHILOSOPHY. The new recommended title menu is shown in Figure 7.
Figure 6.Zazou Salon and Spa Homepage
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We recommend that Zazou incorporate stylists/aestheticians profile under the TEAM menu
option. Each employee could have a personal photo and short biography describing their
backgrounds, specialities and awards received. The biographies should be reflective of the
different employees personalities making them relatable to your clients. Anotherrecommended addition to Zazous website includes a GALLERY menu option. This would
include photos of current hair styles and latest looks. For example, it could include celebrity
trends and runway styles. Zazou could also post before, during and after photos of clients under
a sub menu option labelled Makeovers.
Social Media Recommendations
Zazou Salon and Spa could further extend the use of their social media in the following ways.
Firstly, Zazou could make their Twitter updates more interactive with their followers. This can
be done by tweeting funny and catchy phrases in order to get the followers attention. They
could tweet about a humorous incident at the salon or talk about a celebritys new hair style.
For example, OMG did you see Lady Gagas new hairdo?! with a picture or link attached.
Limited or instant online promotions could also be offered through Twitter. Zazou could tweet
Figure 7.New Website Title
Source: http://www.zazou.ca/
PHILOSOPHY
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Come in today for a haircut and receive 20% your next spa visit! and include a code that must
be presented at the time of purchase. Using Twitter will help create instant communication to
your clientele. By communicating with clients on a daily basis, their loyalty to the salon will
increase because Zazou will be top-of-mind.
Secondly, Zazou could make use of YouTube by posting fun videos that show off their talents.
The before and after makeovers could be recorded and uploaded with catchy music in the
background. Zazou could post informal 30 second video commercials on YouTube as another
advertising medium.
Thirdly, Zazou should update their Facebook page more frequently as fans tend to stop visiting
pages that arent current. Updating their page will help Zazou show up in their fans
newsfeeds, encouraging them to visit the page. Similar to Twitter, Zazou could post catchy
phrases to entice their followers to comment and interact with the company.
Online Advertising and Promotions
There are many online opportunities for Zazou to advertise for a relatively low cost. Using
internet technology to advertise is less expensive than most print ads. They allow businesses to
choose very specific advertising avenues that can focus on their target market. We recommend
that Zazou use several types of online advertising and promotional tools to enhance their
current marketing strategies.
The first type of online advertising that we suggest Zazou to utilize is banner advertisements.
Banner ads entice users to click on the banner and drive traffic to the Zazou webpage. Zazou
will be able to measure the effectiveness of their banner ads by tracking the number of people
who click on their banner to visit their site. Zazou could choose several internet locations to
apply banner ads. Zazou should choose sites that are used by their target market. These
websites could include local fashion and beauty blogs, yoga websites and online magazines.
In addition to banner advertising, we also recommend Facebook ads. Facebook ads are similar
to banner ads in that Zazou will be able to choose the advertising locationshowever, these
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locations will be limited to Facebook pages. Both Facebook and banner ads allow Zazou to get
very specific with their target market. For example, Zazou could choose to place an
advertisement on Avedas Facebook page. The advertisement would appear under sponsored
on the right side of the Facebook page. The user could then click on the advertisement which
could take them to either Zazous Facebook page or their website. Below is an example of how
Zazou could use a Facebook advertisement on Avedas Facebook page.
Google ads are another form of advertising that could be very beneficial for Zazou. Google ads
allow Zazou to advertise on the most-used search engine worldwide while being able to focus in
on the local region of Vancouver. Google Ads are very simple to set up and easy to implement
and have one very important selling featureabsolutely no risk. Zazou will only have to pay for
Google Ads if they work. They are also very flexible. Google advertisement campaigns can be
changed, paused, or ended at any time. Zazou can create Google ads that appear when certain
keywords are searched. For example, if someone searches North Vancouver Spa on Google, an
advertisement will appear on the right hand side of the search results. Similarly to banner and
Facebook ads, Zazou will be able to advertise to an audience that is already interested in your
business. An example of where Zazou would advertisement on Google can be seen in Figure 9.
10% off salon
services
Figure 8.Example of Zazou Facebook Advertisement
Source:http://www.facebook.com/Aveda
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Groupon is another tool that Zazou could use to advertise and promote their salon and spa. It is
a buying approach to shopping that has increased in popularity. Connected by the internet, a
group of people purchase the same product/service to receive discounts (Groupon). There are
many benefits of using Groupon as it helps create valuable, new customers (Groupon). Since a
minimum number of people must buy for the offer to be valid, Groupon guarantees paying
customers (Groupon). Providing discounts on Groupon would give Zazou more exposure while
creating word of mouth throughout Vancouver. Another benefit of using a group buying site is
that there are no out of pocket costs, rather the company takes a piece of each Groupon sold
(Groupon). For Zazou, the main objective would be to use Groupon to increase first time
customers by getting them into your salon. After visiting the salon, other advertising techniques
would be used to further retain the customer. The advertisement would look similar to the one
seen in Figure 10.
Figure 9.Example of Zazou Google Advertisement
Source:http://www.google.ca/#sclient=psy&hl=en&site=&source=hp&q=north+vancouver+spa&aq=f&aqi=&aql=&oq=&pbx=1&fp=97dfff1b864bbdfd
http://www.google.ca/#sclient=psy&hl=en&site=&source=hp&q=north+vancouver+spa&aq=f&aqi=&aql=&oq=&pbx=1&fp=97dfff1b864bbdfdhttp://www.google.ca/#sclient=psy&hl=en&site=&source=hp&q=north+vancouver+spa&aq=f&aqi=&aql=&oq=&pbx=1&fp=97dfff1b864bbdfdhttp://www.google.ca/#sclient=psy&hl=en&site=&source=hp&q=north+vancouver+spa&aq=f&aqi=&aql=&oq=&pbx=1&fp=97dfff1b864bbdfdhttp://www.google.ca/#sclient=psy&hl=en&site=&source=hp&q=north+vancouver+spa&aq=f&aqi=&aql=&oq=&pbx=1&fp=97dfff1b864bbdfd -
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Source:http://www.groupon.com/vancouver/deals/barbarella-hair-salon
Figure 10.Example of Zazou Groupon Advertisement
http://www.groupon.com/vancouver/deals/barbarella-hair-salonhttp://www.groupon.com/vancouver/deals/barbarella-hair-salon -
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Recommended Implementation Plan
Marketing Implementation Plan
Task/Activity Explanation Start Date Dur Due Date Assigned to
Website Modifications 15-Apr-11 36 06-May-11
Create Staff Biographies/Photos Ask employees for personal biographies 15-Apr-11 7 22-Apr-11 All StaffConduct Client Makeovers Take before/after photos 15-Apr-11 20 5-May-11 John/Marketing
Add "PHILOSOPHY" Menu Option Add content 6-May-11 9 15-May-11 Marketing Rep
Add "TEAM" Menu Option Add content 6-May-11 9 15-May-11 Marketing Rep
Add "GALLERY" Menu Option Add content 6-May-11 9 15-May-11 Marketing Rep
Social Media Activities 15-May-11 N/A N/A
New Twitter Updates Updated 3-4 times a week 15-May-11 Weekly N/A Marketing Rep
Post YouTube Videos Updated once a month 15-May-11 Monthly N/A Marketing Rep
Update Facebook Page 15-May-11 Weekly N/A Marketing Rep
Online Advertising and Promotions 17-May-11 7 24-May-11
Banner Advertisements Choose and place 17-May-11 7 24-May-11 Marketing RepFacebook Advertisements Choose company websites 17-May-11 7 24-May-11 Marketing Rep
Google Advertisements 17-May-11 7 24-May-11 Marketing Rep
First Groupon Coupon Trial run 17-May-11 7 24-May-11 Marketing Rep
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Recommended Budget
It is recommended that Zazous marketing department implement these marketing changes
internally. Below is the recommended budget for Zazou.
ACTIVITY COST
Initial Fixed Cost
Website Modifications 6 pages @$200 per page $1,200
Total Initial Fixed Cost $1,200
Variable Monthly Cost
Updating Social Media 8 hours per month @ $20 per hour $160
Banner Advertisements (Pay per click @ $0.50 each) $200
Google Advertisements (Pay per click @ $0.50 each) $200
Facebook Advertisements (Pay per click @ $0.50 each) $200
Groupon Promotion $500
Total Variable Cost Per Month $1,260
Total Cost of Recommendation $2,460
**Above amounts are only estimates
It is difficult to determine exactly what Zazou will need to sell in order to break even for this
recommendation because they offer a variety of services with different associated prices. It is
important that Zazou monitor their website analytics in order to determine where their website
traffic is coming from. They will be able to identify how many users have clicked on each of
their advertisements through viewing their website clickstream. Each advertising channel can
be further evaluated by distinguishing the revenue coming from each ad. Zazou could
implement an online promotion on their website allowing them to measure the amount of
clients coming to their salon from their website. This would give Zazou a relative idea of how
effective the online advertising is.
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Conclusion
Zazou Salon and Spa strives to be recognized as a full service high-end salon and spa catering to
the North Shore market. After reviewing the functional areas and corporate goals of Zazou
Salon and Spa and researching out various areas that can be improved through the use of
ebusiness, we would recommend that Zazou Salon and Spa incorporate the recommendations
in the Human Resources and Marketing areas into their business processes. Zazou expressed
their concern with their current lack of proper internal communications and goal setting
applications, and their desire to improve their marketing capabilities through communications
with customers to increase sales in the companys corporate objectives.
The recommendations within the Human Resources area of the company included improving
performance management planning and internal communications. As Zazou staff is a very
important asset to the company, it is important that their skills and abilities are able to be used
to their full potential to increase customer satisfaction, which can lead to an overall increase in
company sales. We would recommend that Zazou Salon and Spa purchase a system through
SAP Business Objects or modify the Milano software and if not already using the program,
acquire Crystal Reports to implement this recommendation. With internal communications,
Zazou currently does not have an efficient way to keep in contact with employees on an up to
date basis, or allow employees to contact one another. With the use of an intranet, employees
can login to the companys internal site from wherever they are located and receive up to date
news, view calendars, add to discussions, and search for relevant company information such as
sales reports or customer contact information. We would recommend Microsoft SharePoint as
an intranet application for Zazou to use that can be downloaded online. We believe that
continually allowing employees to review their progress, keeping staff up to date and keeping
internal communication lines open are essential ways to keep employees motivated and
developing their skills. Having motivated staff can lead to an increase in customer satisfaction,
thus helping to contribute to the companys overall objectives ofincreasing the amount of new
clients and increasing sales.
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The Marketing recommendation included improving online areas in the company website,
social media sites, and online advertising and promotions. We recommended adding employee
profiles to the website, as well as a photo gallery of customer makeovers and moving the
companys information on the homepage to a new section to be added to the website called
Philosophy. Additionally, we recommended Zazou increases the use of their social media sites
to keep customers engaged and updated on the company, and would also recommend that the
company uses banner advertisements on related websites and Facebook ads. Zazou could also
use Google ads to increase their search ability, and offer a special promotion on Groupon to
attract new customers to the company.
We believe that implementing the above recommendations will help Zazou Salon and Spa
achieve their overall objectives and help them to better communicate and display their value
proposition and the new mission of being the Ferrari of the North Shore Salon & Spas(Peters
& Cowie) . Increasing employee and overall company goal setting capabilities, improving
internal communications amongst employees and management, and using effective marketing
tools to reach wider markets can all contribute to increasing Zazous brand image. Others areas
that will be benefited include the companys brand awareness, customer retention and
satisfaction which will all help increase company sales.
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