Ultimate Nails and Beauty - A Case Study

Ultimate Nails and Beauty is a beauty company established four years ago. It is owned by a sole trader offering unique products. Claire Eagles founded the business in 2004 in Mold, Flintshire, North Wales. The business offers a range of beauty services including acrylic nails, manicures, pedicures, waxing, massages and ‘pamper packages’, including: wedding services or special occasion pamper days. Claire is unique in how she operates her business as she also rents out rooms in the building to beauticians who specialise in a range of non-typical services, such as: Angel readings, teeth whitening, semi-permanent make-up and Reiki massage.

Claire has built the business over the past four years and is currently looking to expand her full-time employees by at least one every year. She currently has two full-time employees. Claire believes in continually offering training and advancement opportunities to both her employees and herself. Working in such a fast-paced, changeable industry as the beauty industry, Claire has realised in order to retain a competitive advantage; she must keep abreast of the new industry developments, such as spray tanning etc. Claire also sells beauty products to her customers, including nail varnish, hair extensions, handbags, jewellery and healing stones. The business sells 100% of its services and products directly to consumers, and the revenue mix is split between 20% of products and 80% services.

Before opening Ultimate Nails and Beauty, Claire worked for another company specialising in acrylic nails and manicures. She decided to create her own company as she felt she was not reaching her full potential, often finding work boring and unchallenging. Opening such an unusual business was a great risk; however Claire was confident in her abilities and the needs of her clients. Despite working in a fiercely competitive industry, Claire believed she could differentiate her company for her competitors by offering such unique services as Angel aura readings. These beliefs were well founded and as a result, she has now built a strong clientele base with people travelling to experience such an unusual service and products.

Claire’s central marketing strategies are the use of word-of-mouth advertising, posters and fliers. Instead of using price as a unique selling point, Claire uses the quality aspect of her services – as a result of this she has created an excellent reputation for providing a high quality and confidential service ensuring customers return regularly. To further enhance her marketing activities, Claire successfully hosts fund raising and trial nights. Claire has hosted a number of fund raising events where free drinks and snacks are offered, a raffle is held and beauty products and services are offered at discounted rates for customers booking at the fund raising event. Demonstrations of treatments are also shown. These events have proved highly successful in both raising money for charity and also raising the profile of the company. The afore mentioned trial nights also achieve similar outcomes, allowing customers to experience sample treatments for discounted prices as on-lookers watch and decide whether to go ahead and book future treatments.

Discussion Questions

• How can Claire gain and retain a competitive advantage in the beauty industry?
  Consider: - The advantages she has already created. How would you advise she continues to develop her business – what further products and services should she become a vendor for and how should these be marketed to existing and potential customers?
• How important are the fund raising events for Ultimate Nails and Beauty?
  
• How should the company develop its Corporate Social Responsibility offerings?
  Consider: - What is meant by CSR, how important is it to an organisation?
• Should Claire be wary of competitors?
  Consider: - Her current feelings towards competitors. How do you think she should protect the company from new entrants? What could happen if she does not consider this?
• How should Claire further develop her company?
  Consider: - Would you recommend expansion? How could you protect the professional integrity of the company if Claire could not be ‘everywhere at all times’? What recommendations would you make for further staff development in managerial terms?