Part 1
Company Overview
Style Star Pet Groomers is a pet grooming start-up business located in the heart of London City center. The firm will provide pet grooming services to clients working and living within proximity of London City. Style Star Pet Groomers is owned business by Kelly Meaden. Meaden will be responsible for providing a significant part of the start-up capital, approximated at 500,000 Pound Sterling. Style Star Pet Groomers is dedicated to offering excellent quality pet grooming services and equitable returns for the owners, including adding value to clients.
Mission Statement
Papulova (2014) states that a mission statement provides a firm’s business, its objectives, and its approach to attain those objectives. A mission statement provides a concise and clear explanation of a business’s reason for existence. Thus, Style Star Pet Groomer’s mission statement is to provide a positive and healthy grooming experience to our clients’ pets in a stress-free environment and with the utmost professionalism. Style Star Pet Groomers believe in offering quality and gentle pet grooming services for pets while focusing on the best possible and excellent appearance for our customers’ pets using high-quality products.
Vision Statement
A vision statement focuses on looking forward and creating a mental picture of the idea states a business wishes to attain (Darbi 2012). Style Star Pet Groomer’s value statement is to be the leading ultimate pet groomers service provider that provides pet grooming services in a quality, caring, innovative, and pet-friendly way, thereby providing an unforgettable experience to our clients.
Core Values
Our values include:
Pets: caring for the pets is Style Star Pet Groomer’s primary purpose and concern. The business will strive to provide quality and managing services to the clients.
Skills and Knowledge: Style Star Pet Groomers employees have a high level of skills and knowledge needed to care for them.
People: Style Star Pet Groomers value its employees and strives ta empowering them to realize their capabilities.
Empowerment: It is Style Star Pet Groomers’ objective that every member becomes empowered
Respect: Style Star Pet Groomers value respect and strives to ensure that every person’s behavior demonstrates a high level of respect for others.
Cooperation: Style Star Pet Groomers will work towards creating the spirit of cohesion and teamwork.
Part 2
Objectives
The main objectives for Style Star Pet Groomers are to:
- To launch the business and record annual sales of £411,205.4 in the first year.
- To be profitable in the first year and break-even by the end of the first year.
- Increase sales by 15% annually both in the second and third year
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2.2 Products/Services
Style Star Pet Groomers will provide various pet grooming services within the pet sector’s scope in the United Kingdom. The business focus is providing pet grooming services and assisting in developing customer’s pets in any knowledge and skills of their liking. The services will include:
- General pet grooming services such as bathing, cleaning ears. Trimming toenails
- Pet daycare
- De-matting
- Fulminating
- Training
- Low-level veterinary services
Customers
Industry and Market Analysis
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Industry
- Political, Economic, Social, Technological, and Legal Factors
Among the most significant challenges to operating a successful business is the external factors. The legal and political factors likely to influence the business operation include business policies, government regulation, political stability, and safety regulations. Thus, to start up Style Star Pet Groomers, the business owners will require to register the business and get an operating license. Accordingly, economic factors likely to influence a business include inflation, taxation, economic growth, and exchange rates. However, being a pet grooming business. It will be unlikely that the named economic factors will affect the business. Social and environmental factors include lifestyle changes, demographics, and eco-friendly products. Social factors are the primary and vital factors worth considering. Lifestyle changes such as more pet-owning will have a positive influence on business sales. Additionally, the business will be required to use Eco-friendly products such as detergents resulting from environmental laws. Lastly, in this case, technological factors include the use of social media and websites to market the business. Resulting from the rapid technological progression, the company will require to design its website and use social networks to sell the industry, thereby reaching a wide range of customers.
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- Trends
Most people are keeping pets and thus seeking pet grooming services. This creates a growth opportunity for pet groomers with excellent and quality services. Besides, technology has also revolutionized businesses in that more firms can reach their target customers through technological platforms such as social networking. The rapid rise of social networking has enabled pet grooming service to grow since it has encouraged online advertising and brand recognition.
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- Market Analysis and Need
The rapid increase in the number of pet owners in London will provide a growth opportunity for Style Star Pet Groomers since working-class people are increasingly seeking pet groomers service providers that are not effective and reliable in caring for their pets they work. Accordingly, the corporate world is characterized by a busy schedule, including business travel, thereby compelling pet owners to seek pet groomer service providers to entrust their pets. It is worth noting that working people have a hectic schedule making it challenging to care for and provide quality attention to their pets. Moreover, apart from having a tight schedule, London residents’ level of pet-owning is increasing, thereby elevating the need for pet grooming services.
Customers
The client profile will entail geographic and demographic segmentation. The clients targeted will also fall under the immediate geographic target city of London. Style Star Pet Groomers will target both middle-class and high-class income earners ranging from professionals to persons with busy schedules. The business will also target the demographic and psychographic market segment, for instance, youth and older adults in need of pet grooming services.
Competition
Some of the competing pet groomers service providers include Groom Dog City, Absolutely Animals Ltd, and Alice The London Dog Groomer. However, Style Star Pet Groomers have a competitive advantage over the competing pet service providers due to the business opening hours. Unlike competitors who open their business from 8:00 a.m. to 9:30 a.m. and closes at 6:00 p.m., Style Star Pet Groomers opening hours will be at 7:00 a.m. while closing hours will be 7:00 p.m. This will enable the business to provide services to customers that report very early at work and closes very late in the evening. Moreover, Style Star Pet Groomer’s competitive advantage will also emanate from its ability to have skilled and competent employees and the ability to provide low-level veterinary services. This will help assure the clients that their pets are in the care of capable people and in a friendly environment.
Internal Business Strengths and Weaknesses
Strengths
Gürel and Tat (2017) assert that organizational strengths involve properties and abilities by which a firm gains a competitive benefit over competitors and other firms. Thus, Style Star pet Groomers strengths will include:
- Experience
- Low costs and
- Passion
Experience: Style Star Pet Groomers will employ highly skilled employees. This will aid in ensuring quality and excellent pet grooming services as well as increased customer satisfaction.
Low Costs: It is worth noting that Style Star Pet Groomers will adopt a useful business model that enhances low costs for the services rendered while still making profits. The business model will help the management provide services at reasonable prices, leading to customer attraction and attaining the targeted objective of sales increase in the subsequent years.
Passion: Style Star Pet Groomers will comprise of passionate employees that enjoy caring for the pets. The employees’ passion and love for pets will assist in improving customer satisfaction and experience. This, in turn, will culminate into increased positive feedback, a factor that is vital for promoting the business branding and image.
Weaknesses
Weaknesses at an organizational level signify situations in which the current abilities and survival capabilities of the business are weaker, equated to other firms and competing enterprises (Sammut‐Bonnici and Galea 2015). Generally, weaknesses refer to occurrences in which a corporation is less capable and successful correlated to rivals. Style Star Pet Groomers weaknesses include:
- Lack of brand recognition
- Low budget
- Lack of business link
Lack of Brand Recognition: Being a start-up business, Style Star Pet Groomers will likely face the challenge of brand recognition during the first few months.
Low Budget: The starting capital is approximately 500,000 Pound Sterling, limiting the business from the immediate purchase of every piece of equipment.
Lack of Business Links: Strong links with business associates is vital for the growth of a new company. However, being a start-up firm, Style Star Pet Groomers lacks business lacks and will require to invest heavily in aggressive marketing such as advertising, which could be capital intensive.
Part 3
Business Differentiation
Jeff (2009) asserts that differentiation strategy is grounded on offering consumers something unique and different, thereby making such a company stand out among its competitors. Differentiation strategy assumes that customers are willing to pay a given premium price for the services or products provides. The willingness to pay the high price is attributable to high-quality products or services. In this case, Style Star Pet Groomer’s differentiation strategy will entail providing quality general pet grooming such as nail cutting, trimming, fulminating, training, and low-level veterinary services. The availability of these services will aid in providing a competitive advantage to the business. It is worth noting that the differentiation strategy will be complemented by the availability of a skilled, competent, and passionate workforce that takes pride in caring for the pets and treats them like their own. Differentiation strategy will focus on providing value to the clients through the provision of an unforgettable experience.
Competitive Advantage
Style Star Pet Groomers have various competitive gains compared to its competitors. These includes:
- Opening hours
- Skilled workforce
- High employee retention due to good pay
- Strong leadership
- Location
- Best customer services
- Variety of pet grooming services
Firstly, unlike its competitors’ business opening hours (9:00–9:30 a.m.) and closing hours (6:00 p.m.), Style Star Pet Grooming will open its business at 7:00 a.m. and close at 7:00 p.m. The opening and closing hours will help attract clients whose working schedule requires them to report early and complete early. Secondly, Style Star Pet Groomers will hire skilled, competent, and passionate employees who thoroughly comprehend the business and thus know the business requirements. The business human resource management is a competitive gain that will ensure that the staff undergoes regular training, which will ensure that they are always reproductive (Noe, Hollenbeck, Gerhart, & Wright 2006. Significantly, the ability to pay the employees well compared to other pet groomers is a significant competitive gain that would lead to a high employee retention rate.
Accordingly, strong leadership in Style Star Pet Groomers will heighten its competitive gain compared with other competing pet groomers. Kelly and the management are qualified personnel with skills in business management. Moreover, the company leaders are influential and motivators, thereby encouraging employees to attain a common objective. Style Star Pet Groomer’s leaders can manage resources by arranging them into abilities, structuring the business to utilize the capabilities, and developing and executing a strategy to use the resources available to attain a competitive gain.
Business location plays a vital role in facilitating business success. In this case, Style Star Pet Groomers will be located at the heart of London City Center, where every person seeking pet grooming services can easily access the business. The strategic location will attract customers and, thus, gain a competitive gain, which will ultimately culminate in increased sales. Style Star Pet Groomers will provide the best and quality customer service in the entire London City. The provision of exceptional pet grooming services will increase the rate of customer loyalty. Notably, to attain this, Style Star Pet Groomers will continuously conduct employees’ customer care skills thereby ensuring that the business becomes the leading in customer services. Lastly, a variety of pet grooming services provided by Style Star Pet Groomers provides a significant competitive advantage since the business will serve a wider range of customer base. For instance, the business will provide a double package of general pet grooming services and training. Unlike other pet groomers that lack training services Style Star Pet Groomers’ ability to offer this package will attract more customers.
Marketing Strategy
Target Market Strategy
Camilleri (2017) purports that target marketing entails realizing and realizing the most lucrative market segment. Thus, businesses may opt to center on one or more market segments. Once market segmentation is completed, Camilleri (2017) states that an organization should be conscious of the chosen element’s wants and needs. Importantly, it is the firm’s interest to identify unexploited needs in the market since there could be clients that be inadequately be served by competing businesses. Thus, it is crucial to choose the most valuable market segment that will aid businesses to attract more customers. In this perspective, Style Star Pet Groomers will utilize an undifferentiated market targeting strategy.
Undifferentiated targeting strategy refers to the process where an organization assumes the apparent segment variations existing within its marketplace and utilizes a marketing strategy intended to attract as many customers as possible. That is, this targeting views the market as a homogeneous collective. According to Camilleri (2017), undifferentiated enables an organization to reach a broader market segment, thereby maximizing its products or services. In light of this, Style Star Pet Groomer’s undifferentiation target strategy will enable the business to target a broader market segment in all market segments based on demographic and psychographic. The company will identify the pet owners’ pet grooming services and focus on developing these services to increase customer satisfaction.
Benefits of Using Undifferentiated Market Target
Some of the benefits of using an undifferentiated target for the business will include:
Reaching a Broader Market Segment: Notably, since the undifferentiated market target entails targeting a large market, the company will experience a high customer base in all market segments.
The Method is Less Risky: unlike concentrating on a market segment, undifferentiation target is less risky since it involves focusing on more than one market segment.
Cost of Advertising and Market Research is Low: being a start-up business, the low cost of advertising and market research will minimize expenses and maximize profits.
Increased Sales Volumes: undifferentiation strategy will enable the company to focus on a large market leading to increased sales volumes.
Marketing Mix
Goi (2009) states that the marketing mix is a theoretical framework that recognizes the core decision-making company directors make to identify their services or products to meet clients” needs.
Product
In this case, Style Star Pet Groomers will provide pet grooming services to its customers. Style Star Pet Groomers will offer various services such as training, low-level veterinary services, general grooming, and daycare services to attract customers. Service differentiation is intended to attract new customers in all market segments.
Price
During the provision of pet grooming services to its customers, the business will offer pet grooming services at affordable prices. Style Star Pet Groomers will use a penetration pricing strategy, which entails providing services at low prices to penetrate the market and gain market share.
Promotion and Advertising
How a firm chooses to promote its services or products can have a significant effect on sales. Thus, it is vital to building a promotional mix through the creation of brand awareness. The promotion will involve aggressive marketing using social media and website marketing. The business will design its Facebook, LinkedIn, and Twitter page where advertisements will take place.
Placement- Distribution System
The business will be strategically located in the heart of London City. This will aid in attracting customers working and residing within London City’s proximity.
Sales Strategy
Sales Monthly Forecasting- 2 years Period
Sales will be based on an hourly charge for every pet. Thus, the total package will amount to £15 hourly, including general pet grooming and daycare. Notably, sales forecast will be grounded on the approximated number of pets that will be cared for diurnally as well as an average hour every pet will be housed daily; it is assumed that the business will operate from Monday to Saturday from 7:00 a.m. to 7:00 p.m. daily charge per pet will be £15 at an average of 8 hours daily. Thus, the table below shows the sales forecasted monthly for two years.
Table 1: Style Star Pet Groomers Sales Forecasting Monthly for two years
Inference
The table above illustrates the Style Star Pet Groomers sales monthly forecast for two years. With an estimated 12 pets daily and a charge of £15 per hour and an average of 8 hours for 26 days a month, the estimated sales are £37,440 for the first month.
Thus, after one year, sales will be £411,205.4 while the second-year sales’ will be £551,239. This indicates that the company will achieve ROI by the end of the second year.
Part 4
Operations Strategy
Business Operations Model
Table 2: Style Star Pet Groomers Business Model Canvas
| Key Partner
Pet owners |
Key Activities
Marketing Research & development Management |
Value Propositions
Unique pet grooming services Excellent customer services Reasonable price
|
Customer Relationship
Pet grooming services Advertisement
|
Customer segment
Middle-income and high-income earners Old and youths
|
|
| Key Resource
Brand Human resource |
|||||
| Cost Structure
Rent Wages marketing |
Revenue Stream
Sales of pet grooming services |
||||
Inference
From the table above Style Star, Pet Groomer’s key partners will be the pet owners. Besides, the key activities will include management, R & D, and marketing the business. Customer relationships will be enhanced through pet grooming services and advertisements. The customer segment will consist of the middle-income and high-income earners, including youths and old adults seeking pet grooming services. Cost structure will include renting the business facility, staff salaries, and marketing expenses. The primary resources will consist of human resources and intellectual resources such as brand. The revenue stream will emanate from the provision of pet grooming services. The above business model will help Style Star Pet Groomers conduct its business effectively while considering all factors that facilitate the success of a business.
Buildings, Equipment, Technology, Cars,
Style Star pet Groomers will rent a space as London City Center. Some of the equipment needed for pet grooming services will include pet nail clippers, grooming shears for cutting pet’s fur, or off mats in a pet’s tangled hair. Other equipment will consist of pet combs and brushes, grooming table, pet bathtub, conditioner and shampoos, pet fur dryer, and pet dental kit. The firm will also require some desktops to feed in the client’s information in the database and install the information system. This will help ensure that the employee is up to date with the daily activities, thereby enhancing effectiveness and efficiency.
Processes – i.e., Imports, Purchases, Production, Marketing, Sales, Warehouse, Accounting, Human Resource
Processes that will take place within Style Star Pet Groomers will include procuring detergents and the needed equipment to conduct the pet grooming services. Since it is a small business, the procurement process will be simple, such as buying the needed items directly from the manufacturer. Marketing will involve mouth to mouth, flyers, website, and advertising using social media networks such as Facebook, Twitter, and LinkedIn. Andrew Reagan will manage the human resource.
Management
The management team will involve two individuals, that is the founder, Kelly. Style Star Pet Groomers is an upcoming new business and thus a low number of employees. The anticipated number of employees will be 8; however, as the business grows, it will be expected that more employees will be needed.
Organizational Structure
Style Star Pet Groomers will ensure that a right and proper organizational structure is set to attain the set objectives. Thus, the business structure will be as illustrated below:
- Chief Executive Officer
- Human Resource Manager
- Marketing team
- Customer service representative
- Cleaner
Roles and Duties
- Chief Executive Officer
The chief executive officer will be Kelly Meaden. She will oversee:
- Creating policies that will impact the strategic direction of the firm
- Ascertain that all procedures are interpreted and executed by all staffs
- Ensuring that all staffs goals align with the firm objectives
- Human Resource Manager
The human resource manager will oversee the following:
- Recruiting skilled workforce
- Implementing policies which would impact staffs
- Ensuring that the administrative functions appropriately
- Ensuring that teams are regularly trained
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Marketing Team
The marketing team will compromise of two employees. They will oversee the following:
- Researching new market on behalf of Style Star Pet Groomers
- Executing efficient marketing tactics on behalf of the firm
- Conducting marketing for the firm
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Customer Service Representatives
Customer service representatives will oversee the following:
- Responding to clients’ questions and inquiries as well as directing them within the frim
- Ensuring that clients complaints are responded with immediate effect thereby maintaining a positive brand and image
- Storing accurate clients’ database on behalf of the firm
Cleaner
The cleaner is a crucial part of the business organization because he or she aids in enhancing the organization’s appearance regarding cleanness. Thus, the cleaner will have the following responsibilities:
- Ensuring that Style Star Pet Groomers is always kept clean
- Ascertain that cleaning supplies are always kept clean and
- Carrying out other duties assigned by the human resource manager
Internal Employees and External Associates (outsourcing)
Internal employees will be eight, including the founder, being an upcoming business, the number of employees will be less. Nonetheless, as the business grows, it is expected that the management will require hiring more workforce. Notably, currently, the company will not require any external associates. However, as the company expands, the government may seek outside expertise in financial advising and accounting.
Part 5
Financial Projection
Financial Model (Own Capital and Loan)
The business founder will contribute 60% of the required capital of £500,000. The rest 40% will emanate from a bank loan. The figure below illustrates the financial model.
Figure 1:: Style Star Pet Groomers Start-up Financial Summary
Administrative and Operating Expenses
Table 3: Table showing Style Star pet Groomers Administrative and operating expenses
| Administrative and Expenses | |
| Administrative | |
| Pet care groomers | £ 60,500.00 |
| Admin | £ 20,000.00 |
| Total Payroll | £ 80,500.00 |
| Start-Up Expenses | |
| Legal | £ 3,000.00 |
| Permit | £ 5,000.00 |
| Fryers | £ 4,500.00 |
| Insurance | £ 5,000.00 |
| Rent (3-month rent and Goodwill) | £ 115,000.00 |
| Equipment | £ 60,000.00 |
| Advertising | £ 20,000.00 |
| Office supplies | £ 35,000.00 |
| Pet grooming supplies | £ 34,000.00 |
| TOTAL START-UP EXPENDITURE | £ 281,500.00 |
| Start-Up Assets | |
| Cash needed | £ 80,000.00 |
| Other current assets | £ – |
| Long-term assets | £ 38,000.00 |
| TOTAL ASSETS | £ 118,000.00 |
| Total Capital Required | £ 480,000.00 |
Selling Expenses
Selling expenses will include costs associated with marketing, advertising, and wages.
Table 4:Style Star Pet Groomers Selling Expenses
| Selling Expenses | |
| Total Payroll | £ 80,500.00 |
| Insurance | £ 5,000.00 |
| Advertising | £ 20,000.00 |
| Fryers | £ 4,500.00 |
| TOTAL SELLING EXPENSES | £ 110,000.00 |
Break Even Point Analysis
Figure 2: Style Star Pet Groomers Break-even Analysis
Inference
Style Star pet Groomers will start earning a profit after providing 2,000 pet grooming services from the break-even analysis.
Cashflow Management
Style Star Pet Groomers will manage its cash flows in various ways, such as planning for any cash shortage. This will be attainable through setting aside emergency cash funds. Additionally, cash flow forecasting every quarter will help in planning and evading cash issues before they hit. The management will also be reviewing and updating the forecast regularly and monitoring negative cashflows carefully. This will aid in realizing areas of overspending and helping the power to control its spending. Importantly, Style Star pet Groomers will create a monthly cash flow statement, which will play a vital role in enabling the government to track its cashflows.
References;
- Camilleri, M., 2017. Market segmentation, targeting, and positioning. Camilleri, MA (2018). Market Segmentation, Targeting, and Positioning. In Travel Marketing, Tourism Economics and the Airline Product, pp.69-83.
- Darbi, W.P.K., 2012. Of mission and vision statements and their potential impact on employee behavior and attitudes: The case of public but a profit-oriented tertiary institution. International Journal of Business and Social Science, 3(14).
- Gürel, E. and Tat, M., 2017. SWOT Analysis: A Theoretical Review. Journal of International Social Research, 10(51).
- Jeff, B., 2009. Strategic Management Assignment, Building And Sustaining Competitive Advantage. Atlantic International University, Honolulu, Hawaii, pp.1-29.
- Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2006. Human resource management: Gaining a competitive advantage.
- Papulova, Z., 2014. The significance of vision and mission development for enterprises in the Slovak Republic. Journal of Economics, Business, and management, 2(1), pp.12-16.
- Sammut‐Bonnici, T. and Galea, D., 2015. SWOT analysis. Wiley Encyclopedia of Management, pp.1-8.
- Goi, C.L., 2009. A review of the marketing mix: 4Ps or More?. International journal of marketing studies, 1(1), p.2.
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