SMB Yas Beauty Salon

''YAS BEAUTY SPA'' BUSINESS PLAN 1

Running head: ''YAS BEAUTY SPA'' BUSINESS PLAN

Yas Beauty Spa

Souk Al Bahar, Downtown Dubai, tel: +971 4 4513333

Author: Sabina Surugiu, 7597;

Small Business Management

American College of Dubai

Fall Semester Session I 2012


Executive Summary

Yas Beauty Spa is a new upscale destination in Souk Al Bahar, Downtown Dubai, offering

a complete day spa experience. The salon offers seven ultra-chic, ultra-comfortable treatment

rooms with the finest spa linens and equipment. They offer a variety of treatments, therapies and

services for both men and women, including: hair services, nail care, massage and reflexology,

Moroccan and Turkish baths (Hammam). They also offer skincare, cosmetology and body

treatments, like a Vitamin C Antioxidant Facial and Pevonia's Anti-Free Radical Treatment. The

day spa has the latest in anti-aging products and techniques and offers some exclusive lines of

products and brands.

This business plan has been developed to track progress prior to grand opening and

following through with a five-year projection. In addition, this plan has been written to secure a

detailed planning for the Spa's continuous successful kick-off.

The Company

Yas Beauty Spa is a new beauty parlor in the heart of Dubai. Located in Souk Al Bahar, it

launched in 2011, successfully expanding during one year to double its size and treatment rooms.

It currently features 15 treatment areas, including a couple's private suite, two Hammam slabs,

two professional hair salons and a dedicated top-to-toe bridal preparation room.

The company also expanded during the next year, by opening a coffee shop called ''Bon Cafe'', a

French-inspired concept of coffee, bakery and other sweets.

Mission Statement


Yas Beauty Spa believes that clients are the most important element of their success. Their

ultimate mission is to dedicate their commitment and professionalism entirely to contribute to the

maintenance of their client's health, appearance and most importantly- self-esteem. The owner's

vision implies ''a healthy mind in perfect balance with a healthy-looking physical aspect''.

Objectives

The Spa's ultimate objective is to continue its successful growth in terms of clientele base,

expansion, brand awareness, rating of services and become a top Spa in the area and ultimately-

in Dubai. The client's satisfaction is a major motive that pushes the company to keep up with all

innovations, new products and services to ultimately dominate the market and achieve an

impeccable reputation in the market.

Marketing Strategy

1. Marketing, Marketing, Marketing - Owner is a proven, 15-year sales executive.

Marketing will be the first strength to the company's success and a huge competitive

edge.

2. Professionalism: Which includes everything from maintaining confidentiality, to hiring

the very best stylists and therapists.

3. Individual Attention: Each client's experience will be tailored to his or her preference.


4. Repeat business/Recommendations: giving the kind of service that brings people back

for regular treatments, and encourages clients to recommend the spa to friends, and other

health professionals to recommend their clients.

5. Unique Treatments: The spa has the latest in techniques with the best products from

around the world.

6. Fantastic Location: Downtown Dubai- comprises a high-end area, Burj Khalifa, The

Dubai Mall and numerous residential complexes and hotels.

Operations

The facility is located in one of the busiest areas of the city. It offers its services daily, during its

operating hours from 9:00 am to 10:00 pm from Sunday to Thursday and Saturday, with the

exception of Fridays, for which the opening hours are 10:00 am to 11:00 pm.

The staff has structured schedules with clientele using the spa's services mostly by appointments.

Two receptionists, four nail/beauty technicians, and two hairstylists are always on the job site,

with the addition of more stylists after 4:00 pm due to higher demand. The massage/reflexology

center operates only by appointment.

Management Team

The owner and founder, Yasaman Rezaei and Elie Badawi, general manager, share managerial

duties and tasks regularly. Unlike other business owners, Ms.Rezaei is actively and personally

involved in the spa's operation. She manages the staff, training and development, research of new

products and techniques, events, and client relationships. Mr. Badawi acts a the GM on site and

is in charge of the technical, operational aspects of the business. He makes hiring decisions,


contacts suppliers, promotes advertisement and media presence, as well as the accounting and

finances part along with the company's accountant.

I. History and Background of the Business

The spa is the brainchild and namesake of Yasaman Rezaei, whose passion for

beauty and entrepreneurial flair has ensured its successful launch. Since its soft

launch last year, the spa has created a buzz in Dubai and become a firm favourite

among famous celebrities, from Bollywood actresses to Arabic pop stars. The

inspiration of the concepts came from the owner's visits to Paris, where salons

have a unique charm, elegance and services. In an attempt to re-create that

same experience in Dubai, through each element of the spa, from the design and

ambience, to the friendliness of staff and high quality of services on offer, Yas

Beauty Spa was born.

Definition of the Business

The main aim of the company was to create a convenient destination where all the

beauty and grooming requirements of today's busy lifestyles could be met in one

single visit. Through this achievement, the salon has already established a very loyal

customer base that uses its services exclusively. Yas Beauty Spa wanted to introduce

the Parisian trend to the multi-cultural hub of Dubai, and to keep it growing.

II. Objectives and Goals

A. Marketing Plans

The Yas Beauty Spa Business Development and Administration has created its

own marketing plan, which includes ingredients such as: exclusivity, innovation,


promotions, events, membership cards and discounts, services for both genders

and all ages, highly qualified staff, international brands, photo shoots, appearance

in magazines and websites, and most importantly-close ties with permanent and

potential clients. Expansion plays a big profit role, franchising and potential

home services are part of its future marketing plans.

B. Quality Control Plans

A highly trained, well-experienced staff assures one step of the quality control

plan. Maintaining its professionalism and continuously increasing its potential by

training new staff, each operation is controlled by the head hair stylist, the head

nail technician or make-up artist. Another measure is using only the finest

products available on the international market. Lastly, at Yas every client's

requirement is the most important element of a service.

III. Definition of the Market

The market comprises ever-growing numbers of businesses, services, products,

suppliers, specialization and it is an internationally present sector. There is an

approximate number of 6.5 million related businesses worldwide. 60% of these

businesses fade within the first 5 years, a factor of which is competition and the

ability of self-development and innovation of each business.

The beauty services market presents a social and psychological aspect, along with the

artistic and economical one. It is necessary to understand the psychological factors

that directly affect every individual's desire to obtain a certain change of looks, a

health improvement through treatments or simple leisure and relaxation.


It presents a chain between suppliers, professionals, artists, therapists, business

developers, marketing strategists, customers, e.t.c. Each link is vital to the survival of

every business in this market and attention to its every element promises

establishment and growth.

The beauty services market presents challenges and rewards simultaneously. This

market can be compared to the technology one- continuous updating, individual

preferences, creativity and innovation, pricing strategies, packages and promotional

discounts-are all aspects of the beauty services market. Additionally, it is important to

be aware of competition, to have extras and back-up plans for every occasion.

Pleasing each requirement needs competitiveness, professionalism, artistic sense,

attention and pricing strategies.

A. Customers

The main target group of clientele comprises the residents of the Downtown area.

Since the spa offers a full range of services for both genders and is an innovation's

advocate, the permanent customers are of all ages, backgrounds and aesthetic

preferences.

B. Competition

Competition is seen in a relaxed manner, the management team had a very

elaborate plant regarding this point- mainly- an exclusivity agreement with Emaar

Malls Group for the Souk Al Bahar complex. Thus, Yas Beauty Spa is the only

beauty services provider in the building.


1. Competitor's Strengths

Competitors in The Dubai Mall, such as The Nail Spa and WoW Beauty Salon

have a location advantage and a higher circulation of customers.

2. Competitor's Weaknesses

Yas Beauty focuses on quality, not quantity, and one of the biggest strengths

is their exclusive products and most of all- attention to detail, which

guarantees a more solid permanent customer base.

C. Barriers to Entry

A risky approach was to obtain an exclusivity contract form Emaar Malls Group.

Such arrangements require a higher profit share for Emaar Malls Group and a

higher rate of rental. But, opposite to this fact, the Emaar Malls Group C.E.O, Mr.

Nasseer Rafi, believes that is merely and initial impediment, and as the company

will establish itself, exclusivity will be a much envied benefit.

D. Power of Suppliers

The company's exclusive lines of products play a key-role in its success. Clients

require services dues to the nature and uniqueness of these products, on which the

spa's success depends upon highly. A strong, legal advisory and effective

agreements ensured a regular, efficient supplier-spa relationship.

Growth Strategy

Initially, Yas Beauty Spa was located on one floor only. After establishing a name

and a strong presence in the market, the business grew profitably and consequently expanded

to the second floor with a body care section and gentlemen's salon. It is important to mention that


with the same profits, the owners have set up a coffee shop too – ''Bon Café'', located at the

entrance of the spa. Growth strategies include future franchising and future expansion.

E. Marketing Strategy

As individual as the clients are, they seem to fall into one of four general categories: Injury

Recovery, Self-Pampering/Relaxation, Alternative Care Users, and Athletes. Besides the obvious

differences in the style of services each of these prefer, they also represent separate groups for

marketing and retention purposes. In addition, the booming anti-aging market is an additional

momentum builder.

The Injury recovery group is usually referred by a Chiropractor, self-referred through our listings

on many local sites, or referred by another client who found massage helpful during an injury

recovery. Marketing to this audience is done indirectly, through the referring parties.

Clients who have the disposable income to indulge in treatments for self-pampering or relaxation

are the core of the spa's long-term repeat customers. Another source of usually one-time visitors

is the Gift Certificate - friends pampering friends for a birthday or other special occasion. The

desired location will provide an excellent demographic to provide this type of client.

IV. Description of the Product

Yas Beauty Spa offers a wide range of treatments. Services are provided by licensed therapists and aestheticians who are independently contracted.

The salon also offers a full retail line that complements the services menu. Products included are high-end cosmetics, creams, hair and nail care products and other beauty products. These high-end items tend to retail at a minimum of 40 A.E.D per item and have 50% mark-up, or higher.


A. Hair care services – the Spa has 4 professional hair stylists and 4 trainee stylist, all

with international certificates and diplomas. The spa uses the most innovative hair

care products from international brands-such as L' Oreal, Kerastase, (France),

Redken (U.S.A) and exclusively at the spa-Keune (Germany). The spa offers a

new, exclusive, ammonia-free hair-coloring brand – INOA.

B. Nail care services- a complete range of manicure and pedicure sets, nail art and

nail extension, acrylic and gel nail construction. The spa uses a U.S.A luxury

brand – ESSIE for all nail care tools.

C. Body/skin care services- a certified team of therapists offer the most bespoke

massage/facial services. Using medical knowledge and Asian reflexology, the

therapists focus on natural products, such as honey, gold, caviar, essential oils and

traditional techniques.

V. Management Structure

During the operational hours, what appears to be a spa and offer beauty services, has,

in fact, a lot of strategic marketing, business development and consumer behavior

analysis.

Yasaman Rezaei, owner and C.E.O has an extensive travelling background, is

daughter of a famous male singer, and has completed her Bachelor of Arts in Paris,

France. Her personal experiences and ability to deal with the elite, passion for arts as

well as strong business concepts entitle her to be in a top management position.


Elie Badawi, GM and operations manager, has previous experience in the industry, as

well as an MBA from the American University of Beirut. His strong management

skills have helped establish the business from its initial phases.

Ivan Sokolovski, Ms. Rezaei's husband, is a well-known businessman and

entrepreneur. Although not involved initially in the spa's activity, now he is an

effective manager and coordinator, bringing in many ideas based on his previous

experience in the U.A.E., France, England, U.S.A and Russia.

Background of Principals and Company Origins

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History of Products and Services

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Organization Structure

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Company History

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Business Description


Yas Beauty Spa is a new destination offering customers the combination of massage, body

treatments, facials, anti-aging treatments, hair and nail care. The settings are upscale, beautiful

and serene. They cater to both men and women and offer the latest in skin, hair and nail care

products and therapies.

Souk Al Bahar, where the spa is located, has a daily traffic count of 5,000 cars, facilitates inflow

of customers through The Dubai Mall and The Dubai Mall Fountain. It also comprises of 60

restaurants and outlets. The Souk is only two blocks away form The Dubai Mall metro station

and it has its own bus stop.

Market Definition

Target Market

The targeted market sector is the beauty industry. A big advantage is the wide variety of services,

which originated in the initial business strategy of the owners- customers seek an ''all in one''

salon, which is not so usual in the Dubai beauty industry.

Market Analysis

A cosmopolitan city, Dubai offers a wide range of over 4,000 beauty salons, spa and wellness

centers, all strategically located in populated areas, tourist areas, hotels, malls and other building

structures. Each business offers its own products, services and targets a specific group of

customers and service requirements.


Yas Beauty Spa has made its mission to cover the requirements of the residents in the Souk Al

Bahar area, Al Tajer Residence and Burj Residence. The overall population of the area comprises

of working/professionals who require a wide range of services for professional and personal

purposes.

Industry

The beauty industry generates an average income of 25 billion dollars yearly worldwide. It

continues to update itself with the increasingly growing demand for new services and products.

Stiff competition, innovations and a growth of 30% of new beauty spas in the U.A.E for the year

of 2011, prove that the industry plays a big role in well-developed societies and has earned a

stable place in the country's economy.

Products and Services

Further Development

Yas Beauty Spa has created its success by relying on professionalism, new technology,

innovation in products and development of their personnel's talent, especially by regular training

and education of its staff. Further development is a key ingredient of our vision in the industry, a

benefit against competitors and plays the ultimate role in customer satisfaction and profit.

Status of Research

The company updates its techniques and inventory by constant analysis of the beauty industry

news. The stylists participate at annual conferences, exhibitions, courses and regular travelling to

leading countries of the beauty industry and fashion, such as Japan, France, U.S.A , Italy, Spain,

e.c.t.

Status of Patents, Copyrights, Trademarks


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Management Structure

Who Enacts the Plan

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Organizational Chart

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Communication Flowchart

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Employee Policies

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SMB Yas Beauty Salon

Documents

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