Project Report

On
SALON, SPA AND HEALTH CLUB SPARADISE

Project Management

PSMBATC-401

Submitted By: Group I

Aakansha Gupta (01-MBA-15)
Kumud Goel (28-MBA-15)
Swatantra Singh Chib (47-MBA-15)
Surbhi Ghai (57-MBA-15)
Vishesh Kapoor (63-MBA-15)
 CHAPTER I - INTRODUCTION

1.1 Executive Summary

Sparadise aims to be the premier spa and salon in Green Belt, Gandhi Nagar, Jammu. Through a
unique combination of offered services and products, they will quickly gain market share.
Sparadise will provide customers with a relaxing, rejuvenating atmosphere where all of their
mind and body needs can be met. The business will be set up as a partnership with Aakanksha,
Kumud, Swatantra, Surbhi and Vishesh owning equal portions of the operation.

1.2 Products and Services

Sparadise offers a wide variety of mind and body healing services and products. The salon aspect
of the business will provide both males and females with any type of hair styling services. The
spa business is devoted to providing holistic methods of massage, body work, and energy work
to pamper the full body. It is all done in a relaxing, serene setting. It will provide services and
products that havent been tested on animals and are pure and natural i.e., we only use organic
ingredients in our products.

1.3 Location
Sparadise has chosen Green Belt, Gandhi Nagar, Jammu as their city for the business venture.
Green belt is a very posh location and offers a comfortable environment that has many parks that
we feel will go well with our business essence. Additionally, the area has undergone a recent
renovation that has attracted a lot of new businesses as well as become a hot urban area.

1.4 Competitive Edge

Sparadise's competitive edge is their unique combination of services, location, and customer-
centric focus. Both the extraordinary services and location has been detailed previously.
Sparadise has set out since its inception to provide quality, dependable services. Sparadises
unique blend of organic food and services give a competitive edge against its competetors.
Sparadise has an innovative training program that is extensive in its depth, properly training
employees to provide an unprecedented level of customer service. All customers will leave
Sparadise with a feeling that their needs were met well beyond any expectations that they
previously had and far better than any competitor. This customer-centric business model is not
just rhetoric; there are financial incentives in place for employees to offer unprecedented levels
of service. This will ensure a high rate of return customers, allowing Sparadise to meet their
ambitious goal of 90%.

1.5 Financials
Sparadise has forecasted substantial sales revenues by year two. Also by year two the business
will reach profitability and have achieved a healthy profit before taxes. When Sparadise begins
their fundraising efforts they will consider options such as LLC status to replace the partnership
business formation that they have currently adopted.
Sparadise is an exciting business that provides a combination of
sought after services that are not currently offered by a direct competitor. Sparadise will provide
a relaxing, serene and nature oriented setting for a variety of mind and body rejuvenation
services for the booming Green Belt population.

1.6 Objectives
The objectives for Sparadise are outlined below:

1. Break-even sales revenue by end of second year.

2. Profit before tax by end of second year.

3. Have clientele return rate of 90% by end of first year.

4. Become established community destination by end of first year.

5. Increase in clientele quarterly.

6. Ability to increase the percentage of profits donated to charity.

1.7 Mission
Sparadise will provide a comforting, yet stimulating, atmosphere in which customers will be able
to relax both their body and mind, reconnecting their daily lives to their true purpose through a
wide range of holistic methods including massage, body works, energy works, and hair styling.
Sparadise will establish itself as a dependable destination to which they can always come to
escape the stresses of life, and rejuvenate their energies, their souls, and their lives.

1.8 Keys to Success

1. Quality and skilled employees familiar with energy work and oriented to a soothing
spiritual disposition.

2. Establish trust within the community that each customer's needs will be taken care of
during every visit.

3. Easily accessible location.

4. Effective advertising.
 CHAPTER II DETAILED DISCRIPTION

2.1Company profile
Sparadise Holistic Spa and Salon is a new destination offering customers the unique combination
of hair styling, massage, body and energy work, and training, all in one beautifully serene
setting. Sparadise will offer all ranges of hair styling, therapeutic massage, manicure, facial,
sauna, Reiki, therapeutic touch, and specific complimentary product offerings. The goal and
promise of Sparadise can be summed up in our name and slogan:

Sparadise Holistic Spa and Salon--Rejuvenate Your Life!

2.1.1 Company Ownership

Sparadise, at this time, is a privately held partnership between Swatantra Singh Chib , Kumud
Goel , Akansha Gupta, Vishesh Kapoor and Surbhi Ghai . In the course of fund raising, we will
explore the feasibility of both a partnership, and a limited liability partnership.

2.1.2 Company Locations and Facilities

Target site for Sparadise is Green Belt Park. Sparadise will need at least 3,000 square feet (sq.
ft.) of space. The cost of renovation of the building including all the equipment and furniture is
estimated at 45 lakh rupees.

2.1.3 Products and Services

Sparadise will provide customers with personal beautifying and relaxing services and
complimenting products, as well as training in specific forms of energy work, accessible
materials on a wide range of health-related topics, and the option to purchase artwork displayed
in Sparadise. Explanations and/or consultations will be provided on all services and products if
needed.

2.1.4 Value Proposition

Our value proposition is that we will bring a unique mode of relaxation and fulfillment to our
community. When people are relaxed, comfortable, and happy, they have the ability to work
harder, concentrate better, feel physically, emotionally, and mentally balanced, and give that
happiness back into their homes, workplaces, and community. Simply put, our value proposition
is that we help our members community become a better place to live and work.

2.1.5 Competitive edge

Our competitive edge is a combination of our unique services, outstanding location, and our
interaction with customers. By providing our customers a holistic and integrative spa and salon,
we build relationships of trust and satisfaction. Our customers will come to depend on our unique
services and fulfilling environment.

2.2 Operations
2.2.1 Product and Service description

1. Men and Women Hair Styling: Men's and women's hair coloring, perm, hair do, hair
therapies, hair cuts, hair treatments, hair spa, and combs. Selected hair care products
(shampoos, conditioners, cleansers, brushes, mirrors) will be sold as well.

2. Body Works: Massage, other massage/body works, facials, manicures, pedicures,

waxing, aromatherapy, and combos. Specific complementing products will be sold as
well.
 3. Energy Works: Reiki, energy revitalization , and therapeutic touch . Customers will
include people wishing to strengthen their physical body, mind, and spirit through the
cleaning and revitalizing of their energetic system (i.e., aura, human energy field). The
Reiki offered will be traditional Usui Shiki Ryoho, the predominant form of Reiki
practiced worldwide, which originated in Japan from it's rediscovered Dr. Mikao Usui.
Reiki is a hands-on "stepping" method of balancing the energy field. Energy
revitalization and therapeutic touch are energy field cleansing and revitalizing techniques
working with the outer levels of the energy field along with Reiki.

4. Artwork
Most of the artwork in Sparadise will be by local artists, for sale to the customers.
Sparadise will earn a 15% commission on each piece sold. This adds an extra element of
community integration to Sparadise with an added emphasis of the art being from
beginning artists, and that the art be spiritual and/or modern in form.

2.2.2 Technology

Sparadise will sell complementing products of the highest quality that have not been created
through the testing of animals, and are of the latest scientific and ayurvedic knowing for
affecting the desired results for body beautification and energetic balancing maintenance.
 CHAPTER III MARKETING & STRATEGY

3.1 Market Analysis

There are no exact competitors and only few slightly related competitors in the greater Green
Belt area. By nature of the service Sparadise will providing, success will be readily achieved.

3.1.1 Market Segmentation

Our target market will be divided by salon customers and spa customers. Salon customers will be
from every age and gender; however, since the salon and spa will be in direct association with
each other, we expect that the spa market segment will greatly affect the salon market segment.
Thus, our target market segment will be male and female professionals, home makers, youth and
retirees, starting from the age of 18 and above, with individual or household annual incomes
greater than 4,00,000.

3.1.2 Target Market Segment Strategy

The members of these market segments have disposable income on hand, and lead professional
lives filled with stress at a consistent level. All persons usually need hair styling regardless of
income level, and make the effort to find the money available to style their "look."

3.1.3 Market Needs

People love to pamper themselves, especially people who have achieved a modicum level of
professional success. Green Belt has become a bastion for the successful, having consistently
been named as one of the best areas in Jammu to live and to do business. This has created a
community of wealth, mobility, and growth.
3.2 Service Business Analysis
We are part of the retail health and beauty industry which has four major types:

1. Salons: Stores with only hair styling services and products.

2. Day Spas: Stores specializing in body health maintenance through a variety of services
and products.
3. Day Spa & Salon: Stores combining the services of the two aforementioned.
4. Health & Beauty Products: Stores selling only merchandise products covering the wide
range of products available but not inclusive of those sold by salons and spas.

3.2.1 Main Competitors

There are many salons in the Jammu area but no direct competitors. There are many places
offering massage, but there are only two day spas. The main competitors are Headmasters
located in Trikuta Nagar, the only organization providing all the services similar to ours. Also, by
nature of their popularity and few similar services we must also include these salons as
competition: Looks, Color Lounge, Hair n Shanti, D-spa,VLCC and many more other centers
providing slightly similar services, but no one is providing all the services as sparadise under one
roof. There is no place offering energy work, in Jammu. All energy work practitioners are private
and working full-time and not providing their services anywhere else.
Strengths of the above are services offered is location proximity to major
housing developments, and name recognition. The weaknesses of these competitors are general
lack of promotion, concentration mainly in Green Belt. Our market advantage is wide open, and
will give us the opportunity to service a large population base that is not currently being well
served. When you include our service of energy works, we become the sole provider of all three
services of hair works, body works, and energy works not only in Green Belt, but for the entire
Jammu area.
3.2.2 Business Participants
Industry participants are those whose services include salon and spa offerings. Salon services
concern hair styling, while spa services concern body relaxing and rejuvenating offerings such as
massage, and nail and face works.

3.2.3 Competition and Buying Patterns

Customers choose spa and salon services based on proximity to their daily travels from home
and work, reputation for quality, and good pricing. With our combined services, we expect to
compete mainly against other combination spa-salons.

3.3 Strategy and Implementation

1. Emphasize quality, originality, and dependability of service.

We will differentiate ourselves from our competitors by offering a staff of practitioners
who are not only certified in their professions, but will be trained in understanding the
dynamics of individual energy systems so as to maximize the connection to their client
and more easily meet the needs of the client.
2. We will provide a unique atmosphere.
From the name to the ambience of our salon, Sparadise will distinguish itself as a
completely trustworthy and soothing setting where customers can enjoy being pampered
and escape the stress of their everyday lives.
3. Build a community relationship-oriented business.
We will focus on strengthening the trust of our customer base, and providing not only
services, but information that will aid everyone in the progression of obtaining a balanced
and healthy lifestyle. We will also work with local artists to provide their work to inspire
our customers.
3.4 Marketing Strategy
Our marketing strategy is the key to our success:
1. Emphasize our name and unique services through advertising.
2. Focus on the convenience of our location.
3. Build community relationships through unique and quality service, friendly and caring
atmosphere, and establishing absolute dependability of our services.

3.4.1 Promotion Strategy

Our promotional strategy will be two-fold: first phase promotion will deal with advertising
before, during, and six months following our opening; the second phase advertising will deal
with all long-term advertising.

1. FIRST PHASE PROMOTIONS

A. Advertising.
We will utilize local newspaper, local social and health magazines, local radio, local
television, mail-outs to all households within the immediate five mile radius, and mail-
outs to all local business within a five-mile radius.
B. Internet.
We will have a comprehensive website.
C. Alliances.
We will place our brochures within the offices of our medical referral clients.

2. SECOND PHASE PROMOTIONS

A. Advertising.
We will continue to place ads in the local social and health magazines year around. Mail-
outs will be done again within a five-mile radius one year later after opening, then again
only every three to five years. Radio and television ads will be done only, and graduation;
television ads are not certain, we will evaluate their effectiveness before further
implementation.
 B. Internet.
We will continue to have a comprehensive website. After the first six months, and
certainly after the first year, we will evaluate the viability of having target clients
advertise on our site, and conversely, we will evaluate viability of advertising on our
target clients websites (if applicable).

C. Alliances.
This type of advertising will be implemented once we have grown beyond our break-even
point. We will also form advertising alliances with any business with whom we share
common business goals. We will also implement mutual perks with our business and
restaurant neighbours which will aid in local visibility. Advertising promotions with
certain restaurants will also be considered.

3.4.2 Marketing Programs

All the partners will be responsible for marketing Sparadise through the advertising channels.
Another responsibility will be for assisting with the implementation of alliance advertising
partnerships. Our advertising budget is Rs. 5,00,000 for the first year. Advertising will begin one
week prior to the opening.

3.4.3 Positioning
We will automatically position ourselves as one of the top spa-salons in the greater Gandhi Nagar
area. Considering that none of the other competitors will offer the range of services we will, or
that their staffs will be trained like ours, and that there are not any spa-salons of our type in our
target locations, we will be able to provide services to a large populace not currently being
tapped.

3.4.4 Pricing Strategy

Our pricing strategy will be similar to that of our competitors. We will not charge over, or
substantially under, standard prices for our services. We will be paying our employees a higher
straight percentage of their total individual customer sales than our competitors. This will allow
us to hire the best employees, and have a built-in motivational factor that will keep them working
hard and happily.
3.4.5 Sales Strategy & Programs
1. Our umbrella sales strategy is to sell Sparadise to public consumers as a uniquely
desirable destination that will enhance their lives.
2. We will sell Sparadise through each employee's skill, courtesy, and warmth, creating a
trusting impression on all customers, thusly establishing loyalty and return depending on
our brand of service.
3. Brochures, websites, memberships and packages, monthly discounts and offers, repetitive
and word of mouth advertising will help us to increase the clientele, explaining the
holistic nature of our services.

3.4.6 Strategic Alliances

We will form alliances with our doctors or referral practitioners for routine check- ups and
consultations; local restaurants, offices, and businesses who will be strategically beneficial for
generating new customers; we will also form alliances with local certified massage schools and
hair styling institutions.

CHAPTER IV MANAGEMENT ANALYSIS

4.1Management
The management philosophy of Sparadise is based on respect for each of our fellow employees,
respect for every customer, and individual responsibility. Sparadise's success is dependent on the
warmth and uniqueness of its atmosphere which is generated by a fun-loving and caring
employee. The management team will consist of the owner, general manager and counsellor. We
will hire only those whom demonstrate the qualities necessary for working in a nurturing
environment, and the willingness to move forward in study of energetic principals if not already
so trained. We will be hiring the ultimate "people persons."

4.2 Organizational Structure

Our initial team consists of 25 employees, inclusive of a general manager and a counsellor, both
of whom will be active stylists/therapists.Employees will be in from the two store divisions of
spa and salon. On the salon side there will be 6 stylists and one receptionist. There will be room
for expansion to 12-15 stylists and three receptionists. The spa side will consist of ten massage
therapists & energy therapist, three nail specialists, and one receptionist. There will be room for
expansion to five to seven massage therapists, and two to three energy therapists.

4.3 Management Team

Aakanksha Gupta:
Kumud Goel. She is pursuing MBA from The Business School and has graduated from BBA
from MCM DAV College, Chandigarh. Also, she is advance diploma in Cosmetology and Beauty
Care.
Surbhi Ghai: She is currently pursuing MBA form The Business School, University Of Jammu
and has done Engineering (B.Tech- ECE) from Lovely Professional University, Jalandhar.
Swatantra Singh Chib:
Vishesh Kapoor:

4.4 Personnel Plan

The Personnel Plan below reflects our projected need at opening, and carries through the second
year expansions.
- 06 Hair stylists- Rs 25000 each per month
- 10 Therapists- Rs 15000 each per month
- 03 Pedicurists/ Manicurists- Rs 12000 each per month
- 02 Office Helps- Rs 15000 each per month

CHAPTER V -- FINANCIAL PLAN

The premier element in our financial plan is initiating, maintaining, and improving the factors
that create, stabilize, and increase our cash flow:
1. We must create visibility so as to create customer flow.
2. We must maintain a dependable, happy employee force so as to minimize turnover.
3. Create a brisk turnaround on our retail and art products, always maintaining viable stock
levels.

5.1 Important Assumptions

The key underlying assumptions of our financial are:
1. We assume access to equity capital and financing to support our financial plan.
2. We assume our financial progress based on realistic sales to minimum sales against
highest expenses.
3. We assume there will not be an economic crash that would greatly hinder our target
market's access to their personal luxury funds.

5.2 Profit And Loss Account

EXPENSES Year I Year II Year III

Rent 50,000 50,000 50,000
Salaries 48,24,000 48,24000 48,24,000
Telephone 1,20,000 1,20,000 1,20,000
Stationary 1,20,000 1,20,000 1,20,000
Beverages 4,80,000 4,80,000 4,80,000
Repair & 1,80,000 1,80,000 1,80,000
Maintainance
Electricity 2,40,000 2,40,000 2,40,000
Water supply 24,000 24,000 24,000
Depreciation (10% 73,600 + 6,75,000 66,240+5,73,750 59,616+4,87,688
 &15%) 7,48,600 6,39,990 5,47,304
Retail products 8,00,000 10,00,000 10,00,000
Advertisement 5,00,000 4,00,000 4,00,000
Electricity 50,000 Nil Nil
Connection(initial)
Interest on capital 5,00,000 5,00,000 5,00,000
@5%
Total 86,36,600 85,77,990 84,85,304
REVENUES Year I Year II Year III
Sale of services 54,00,000 70,77,990 90,00,000
Sale of Products 10,00,000 15,00,000 18,00,000
Total 64,00,000 85,77,990 1,08,00,000
Net loss/Profit (23,36,600) Nil 23,14,696

Conclusion:
1. Form the above projected Profit and Loss account it can be seen that the business will
have to incur loss of 23,36,600 in first one year.
2. In the second year the will be no loss and no profit i.e. business will reach its break even
point and will start to recover its losses and will move towards profit.
3. In third year business will start earning profits i.e. of 23,14,696, and will continue to
make profit in further years.

5.3 Balance Sheet

ASSETS Year I Year II Year III

Furniture & Fixtures
Beds 40,000x12 4,80,000 ----- -----
Chairs 15000x8 1,20,000 ----- -----
Pedi and manistations 1,00,000 ----- -----
25,000x4
Shampoo station 36,000 ----- -----
15,000x2
7,36,000 6,62,400 5,96,160
Sub:Depreciation (73,600) (66,240) (59,616)
(10%)
6,62,400 5,96,160 5,36,544
Plant and Machinery
Building @ 1500 sq/ft 45,00,000 38,25,000 32,51,250
1500*3000
Sub:Depreciation (6,75,000) (5,73,700) (4,87,688)
(15%)
38,25,000 32,57,250 27,63,562
Debtors Nil 6,52,590 20,14,590
CASH 47,76,000 30,00,000 35,00,000
30,00,000 40,00,000
Total 92,63,400 10,500,000 1,28,14,696
LIABILITIES Year I Year II Year III
capital 100,00,000 100,00,000 100,00,000
Net Profit/Loss (12,36,600) Nil 23,14,696
Add: Interest on capital 5,00,000 5,00,000 5,00,000
(5%)
Total 92,63,400 10,500,000 1,28,14,696

5.4 Future offerings

Sparadise will add healing touch based on the response generated from the reiki and the food station
will be upgraded into a full blown kitchen. We plan on creating similar clubs within the city as well
as outside.
 ANNEXURES

ANNEXURE 1

GOVERNMENT OF JAMMU AND KASHMIR PUBLIC HEALTH

ENGINEERING DEPARTMENT JAMMU/SRINAGAR WATER SUPPLY
CONNECTION FORM

To
The Divisional Engineer,
No.................
Water Supply & Sewerage Division
P .H .E. Department
Government of J&K
Jammu/Srinagar

Date..............

Sir,
I/We request for your kind permission to allow to draw water from the State Government Water-
Main(s). I/We shall abide by the standing rules/regulations and directives.

Yours faithfully,
(Signature & Seal of applicant)

1. Name of the Applicant:

2. Correct Mailing Address:
3. Name of the Department/Organisation if in service:
4. Water is required for:
(a) Drinking/Construction/Factory use/Specify other uses:
(b) State Government/Private/Central Govt./others:
(c) Specify Residential/Commercial/Institutional & other structure details:
5. Duration of W/S requirement:
(a) Permanent/Temporary/specify time if temporary:
6. Nos Family Units......... No. of users............ Nos. of taps .............
7. Whether owner or tenant:
8. If tenant then N.O.C from owner attached or not:
9. Location where water is required:

CERTIFIED THAT THE ABOVE INFORMATIONS ARE TRUE TO THE BEST OF MY/OUR
KNOWLEDGE
(Signature of Consumer)

UNDERTAKING BY THE CONSUMER

I hereby fully agree that apart from other reasons prescribed in the Water Supply Rules/Acts, my
Water Supply connection shall also be disconnected in the event I violate any of the rules or
regulations of the Local Self Government.

'CONSUMER'
ANNEXURE 2

JAMMU AND KASHMIR STATE ELECTRICITY BOARD

APPLICATION AND AGREEMENT FORM

(For Loads Up to 100 KW)

Sr. No .. (To be machine numbered)
For Official Use Only
1. Name of Sub-division ________________________________________________
2. Applicants Name/Designation __________________________________________
3. Is applicant a member of Scheduled Castes/Backward Classes.
_______________________
____________________________________________________________________________
4. Security Receipt No. And Date ________________________________________________
5. Current Account No. (if any) __________________________________
6. i) Present connected Load (if any) ___________________________________
ii) Load applied __________________________________________
Total Load ______________________________________________________-

To
The __________________________
Jammu and Kashmir State Electricity Board,
______________________________

I/We hereby agree to take from Jammu and Kashmir State Electricity Board
(hereinafter referred to as the Board) at the premises stated below, a supply of
electrical energy not exceeding the connected load of my/our installation as below,
and I/We hereby further agree to pay for the said supply in accordance with the
relevant tariff, as amended from time to time and also to pay for all such other
charges as may become due by me/us to the Board from time to time at rates laid
down in the Schedules of Service and General Charges prescribed by the Board from
time to time. I/We further agree that I/We further agree that I/We shall, as and when
required by the Board to do so, lodge with the Local Office of the Board Advance
Consumption Deposit as per the provisions of Conditions of Supply of electric
energy by JKSEB and Schedule of General Charges. And I/We hereby declare that the
said conditions of supply including Schedule of Tariffs and Schedule of General and
Service Charges have been perused by/read to me/us and I/We agree to be bound
by them as also the provision of the Jammu and Kashmir Electricity Act, 2006. I/We
agree to give you such security as may be required for the price of the
meter/meters whenever called upon to do.

Description of Premises:-
House/Shop/Premises No. ____________________ Locality _____________ Town/Village
_________________________________________________________ I/We also declare that:-
1. I/We am/are owner/landlord of the premises or my/our landlord/owner agrees to
my/our taking the said supply and his/their written consent is attached herewith.
Or
I/We are the lawful occupier/s of the premises but it has not been possible for me/us
to obtain consent from the landlord and I/We hereby agree to keep the JKSEB
indemnified and harmless against all claims made and action and proceedings taken
up by the landlord or any person claiming through or under him by reasons of giving
of this electric connection by the JKSEB to me/us.

2. I/We hereby agree that I/We shall abide by the power cut restrictions/peak load
hours restriction imposed by the State Government/Board from time to time as per
the provisions of Section 22-A and Section 22-B of Jammu and Kashmir Electricity
Act, 2006.

3. It is disclosed that I/We are major.

4. The authorized representative of the Board can check energy consuming

apparatus at my/our
premises at any time.

Schedule of energy consumption apparatus:

LIGHT AND FAN HEAT AND POWER INDUSTRIAL LOAD
Lamps, Wall Plugs Appliances, Heater, Cookers, Motors, etc.
and other Lighting load. Refrigerator and Power Plugs etc.

Description No Wattage each Total KW Description Wattage each

Total KW
No
Light
(i)
(ii)
(iii)
(iv)
Fans
Wall sockets
Connected Load Connected Load