Business Strategy of Barbershop in Bandung

FINAL PROJECT PROPOSAL

For MM5012 – Business Strategy and Enterprise Modelling Class YP57B

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Business Strategy of Barbershop in Bandung

Syndicate 1

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MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT

INSTITUT TEKNOLOGI BANDUNG

2018

1 INTRODUCTION

1. Background

Nowadays, what we called industry is not only about a set of activities like production, distribution, selling and buying products. Industry has grew into many variations and one of them is creative industry. Creative industry produces and sells many variated things from physical products and services until lifestyle needs and dreams. One of the creative industry’s example that is growing in Indonesia especially in Bandung is barbershop industry. Barbershop itself is not a new thing in Indonesia’s service industry. Barbershop can be said as hair salon that specifically made for men. What made this kind of industry grow and prosper? Of course because there is huge demands for its existence. From the huge demands, we can conclude that in social factor, men is starting to be more aware about their looks especially for their hair.

In 2017, there was an event called Hair Expo 2017 (27-29 July 2017), the event organized in the Jakarta Convention Center. In the event, Ade Farolan, Chairman of the Indonesia Barber Shop Association said he sees room for great growth in the future for Indonesia’s sector because in 2016 there were between 4,000 to 5,000 barbershop brands active in Indonesia and he expects the figure to rise by 20-30 percent before the end of 2017. Another matter that encourages the development of the barbershop industry in Indonesia are effective marketing through social media platforms and fierce competition by offering promotions and discounts.

If we look at this phenomenon more specifically, barbershops this day have their own style and trade mark. Some barbershops offer services in low cost and some barbershops offer more services like massages but with higher price. The exterior and interior design of each barbershop is variated so it makes young generation to notice them more. The question are, what are business strategies used by the barbershops to operate until today? What makes them can continue their business and their brand in Bandung? The questions can be answered by researching their winning strategy.

1. Objectives

The purpose of this project is to analyze internal and external data from the barbershop industry. We will take three samples barbershop at different location, in order to represent whole industry barbershop in Bandung. The final goal of this project is to analyze the winning strategy of the barbershop industry.

In this study, there are four main stages for finishing this research, which are:

1.2.1       Preparation

At this step, a survey conducted to determine three barbershops who are willing to be investigated in this project.

1.2.2       Data Analysis

This stage is to combine internal and external data for analyzing the winning strategy.

1.2.3       Results and Conclusions

From the results of data analysis that obtained, so then we can make a conclusion about the industry.

1.2.4       Stages of Report Preparation

This last stage in this research is to write a report from the Winning Strategy analysis.

1. Research Methods

The research conducted will need both qualitative and quantitative data to perform fit test, competitive test, and performance test. Qualitative data is an information about qualities, information that cannot actually be measured. Some examples of qualitative data are the softness of skin and the color of eyes. Quantitative data is information about quantities, that is, information that can be measured and written down with numbers. Some examples of quantitative data are height, shoe size, and the length of fingernails.

1. Data Type

In this research, researchers will use primary data and secondary data. Primary data is information that is collected specifically for the purpose of the research project. An advantage of primary data is that it is specifically tailored to the research needs. A disadvantage is that it is can be expensive or hard to obtain. Secondary data is data that was collected by someone other than the user. Common sources of secondary data for social science include censuses, information collected by government departments, organizational records and data that was originally collected for other research purposes.

1. Data Source and Collection

Primary data can be collected in a number of ways. The most common method are self-administered surveys, interviews, field observation, and experiments. In this research, the primary data will be extracted straight from the owner of respective barbershop. The data collection method that will be used in this research is interview.

Interview refers to conversation with one person acting in the role of the interviewer and the other in the role of the interviewee. The interviewer asks questions, the interviewee responds, with participants taking turns talking. Interviews usually involve a transfer of information from interviewee to interviewer, which is usually the primary purpose of the interview, although information transfers can happen in both directions simultaneously.

In the research, the researchers will act as the interviewer, and the owner of the barbershop will act as the interviewee. There will be several key questions in the interview to help researchers determine the performance of every barbershop. The interview will ask for financial data and talk about how they do their business in order to come up as the winner in this barbershop industry.

1. Objects of Study

Below are the name of the three barbershops that will participate for this research project.

Name                 : Barber Nines Barbershop