2011

BMKT 315 EBusiness Analysis and Administration

Ebusiness Consulting Project
Natalie Brown, Jessica Desjardins, Joanna Frandsen, Zoe Fu, Robin Toorenburgh, and Dan Yuan

ZAZOU SALON AND SPA

This report will analyze Zazou Salon and Spas current ebusiness applications and make recommendations to improve upon their systems.

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Table of Contents
List of Figures .................................................................................................................................. 3 Executive Summary......................................................................................................................... 4 Introduction .................................................................................................................................... 7 Company Overview ......................................................................................................................... 9 Zazou Mission, Vision, and Values .............................................................................................. 9 Corporate Objectives ................................................................................................................ 10 SWOT Analysis .......................................................................................................................... 10 Perceptual Map......................................................................................................................... 11 Current Situation........................................................................................................................... 13 Customer Relationship Management ....................................................................................... 13 Sales Department ..................................................................................................................... 14 Human Resource Department .................................................................................................. 14 Accounting Department ........................................................................................................... 15 Supply Chain Management ....................................................................................................... 15 Marketing Department ............................................................................................................. 15 Recommendations ........................................................................................................................ 17 1. Improve goal setting application .......................................................................................... 17 2. Enhance CRM programs and activities ................................................................................. 18 3. Improving Internal Communication...................................................................................... 19 4. Inventory Management ........................................................................................................ 20 5. Online Appointment Booking ............................................................................................... 21 6. Marketing .............................................................................................................................. 22 Final Recommendations ............................................................................................................... 23 1. Human Resources Recommendation ................................................................................... 23 2. Marketing Recommendation ................................................................................................ 31 Conclusion ..................................................................................................................................... 39 Works Cited............................................................................................................................... 41

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List of Figures
Figure 1. Zazou Salon and Spa SWOT Analysis ............................................................................. 11 Figure 2. Zazou Salon and Spa Perceptual Map ............................................................................ 12 Figure 3. Milano Supply Chain Management................................................................................ 21 Figure 4. Performance Management Planning ............................................................................. 25 Figure 5. Microsoft SharePoint ..................................................................................................... 27 Figure 6. Zazou Salon and Spa Homepage .................................................................................... 31 Figure 7. New Website Title .......................................................................................................... 32 Figure 8. Example of Zazou Facebook Advertisement.................................................................. 34 Figure 9. Example of Zazou Google Advertisement ...................................................................... 35 Figure 10. Example of Zazou Groupon Advertisement ................................................................. 36

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Executive Summary
We are excited to present to you a detailed executive summary of our report. We were fascinated to help inspire Zazou Salon and Spa improve their current situation by reviewing their current processes and practices in order to identify some key weaknesses that could be substantially improved through the use of creative ebusiness applications. What you will find in our report is a brief introduction, the company overview including the mission, vision, values, assumed corporate objectives, SWOT analysis, and perceptual map. In addition, the current situation with respect to Customer Relationship Management (CRM), Sales, Human Resources (HR), Accounting, Supply Chain Management, and Marketing are analyzed. We then determined six key areas from which we made general recommendations then expanded on two distinct aspects that we felt Zazou should concentrate their efforts in the short term: Human Resources and Marketing. These two main aspects were identified because of their direct link to the corporate objectives as areas that needed improvement in order to gain a return in the spa side of the business and develop and increase in leads for new clients. We decided that it would be beneficial to invest in improving the current practices for Human Resources with a focus on improving internal communications and developing an online performance management system that could support staff. This would allow employees to update their own performance behaviour, set goals, receive up to date news, access goals and sales frequently, and provide a level of access individually in order to help increase sales and develop career planning paths. We felt the importance of improving communication online is essential, although Zazous management is excellent about having regular huddles that help maintain employee morale (and we agree these should still continue). Having open communication will improve the relationship between management and staff by offering immediate feedback and updates as needed in order to better meet customer needs. It will enable managers to post an update about a product they would like promoted, a unique request to be met, or to point out a certain day that needs more attention to attract bookings. It is important to have a source of communication that can also be private instead of during huddles as people have differences in their communication 4|Page

[ZAZOU SALON AND SPA] Inspiration Consulting preferences. Based on our analysis of the Human Resources ebusiness applications, it would be valuable to consider purchasing a system through SAP Business Objects or modify the Milano software. If they are not already using the program, it is recommended to acquire Crystal Reports to implement this application. The second part of the implementation is to download Microsoft SharePoint for the communication aspect. From a financial perspective based on an estimated budget within the report you will see that using the current Milano system will likely be much more affordable to upgrade rather than starting out with a whole new system. We recommend that you invest some time to talk to a representative about options to incorporate this into your current system. As Zazou employees are very important assets to the company, it is important that their skills and abilities are used to their full potential to increase customer satisfaction, which can lead to an overall increase in company sales however they need the tools to do so. The second recommendation is to put a larger focus into unique and creative ebusiness applications for Zazous Marketing. It also includes making improvements to certain marketing aspects you are currently using. Thinking outside of the box can be challenging so we hope that we have given you some new ideas to run with and see what works best for your company. There were three main areas that we focused on: Website Modifications, Social Media Activities and Online Advertising and Promotions. Some of the key items included are to create online employee biographies and photos, client makeover pictures, and add a few specific menu options. As well, new recommended twitter updates, YouTube videos, updated Facebook page, and several types of advertising and promotion ideas through banner advertisements, Facebook, Google and Groupon. One specific idea that many companies, including various salon and spas, are using are Google ads to increase their search ability, and offering a special promotion on Groupon to attract new customers to the company. As trends change it is vital for Zazou to keep up on those social media ideas in order to develop more brand awareness and keep current customers interested while attract new ones. It is imperative to increase the use of your social media sites to keep customers engaged and updated on the company. Each of the recommendations includes a basic implementation plan as well as an estimated budget. Since there are so many other great ideas that our team recommends, especially in the 5|Page

[ZAZOU SALON AND SPA] Inspiration Consulting marketing area, we suggest you sit down, have a cup of your favourite specialty drink at the shop across the street and soak up the creative suggestions for ebusiness applications that can change the way you do business in an exciting way. We hope you enjoy the report and sincerely thank you for the opportunity to work with you.

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Introduction
The following report contains a background on Zazou Salon and Spa and how the company currently uses ebusiness applications, followed by recommendations on ways the company can improve their ebusiness use. Zazou Salon and Spa is a local company based in North Vancouver which is currently growing and wanting to increase their use of ebusiness applications to increase the companys productivity and efficiency. The report begins with an overview of the company, including the companys current uses of ebusiness applications and software the company uses for its everyday business procedures. Based on the areas that Inspiration Consulting and Zazou see that can be improved, recommendations are made and included in the report. The project was prompted by the groups need to complete an ebusiness Analysis project for the eBusiness Analysis & Administration course at Capilano University. After meeting with Zazou Salon and Spa, it was evident that the company was willing to work with the group and was aware of the weaknesses in regards to their ebusiness applications. Because of the teams interest Zazou Salon and Spa and Zazous willingness to work with the group and their desire to improve their use of ebusiness, the project was conducted. The report covers ebusiness applications for Zazou in the areas of Customer Relationship Management, Human Resources, Marketing, Sales, and Supply Chain Management. Recommendations are included on how the company can improve its use of applications in these areas. The report is meant to help Zazou Salon and Spa understand their current uses of eBusiness, and ways the company can improve certain areas of their business functions through the use of different ebusiness applications. As Trites states, ebusiness is the use of technology to integrate and streamline the business processes, enterprise applications and organizational structure of a business to create a high-performance business model (5). Zazou can clearly benefit from ebusiness as it will incorporate the strategic use of information technology to achieve their corporate goals (Trites 5). The report will contain a background on the software and systems Zazou currently has in place, some weaknesses in these systems, and recommendations based on these weaknesses and 7|Page

[ZAZOU SALON AND SPA] Inspiration Consulting concepts learned in class. The report also contains a budget, suggested software, and a timeline and implementation plan on each of the key recommendations. The report does not contain a business plan or marketing campaign for the company or any primary research on the companys current ebusiness applications and their usability from customers, suppliers, or any other individuals outside of the organization.

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Company Overview
Zazou Hair Salon and Spa first opened in 1992 by Bruce Peters (Peters & Cowie). Coming from a family of hair dressers it was only natural for him to open a salon of his own. The salon spent many years at a small space in an open design strip-mall in Lynn Valley, North Vancouver. However, the news of the new Lynn Valley Library building gave Mr. Peters a phenomenal opportunity to expand his salon to a new, bigger and brighter space allowing him to realize his dream of incorporating spa services to his business as well (Peters & Cowie). In 2008 Zazou Salon and Spa opened up their 2200 square feet location in the heart of the new development (Peters & Cowie). Currently, one of the most challenging aspects for Zazou is the fact that there is not a consistent parallel among salon users with spa services (Peters & Cowie). Zazou is not seeing the desired sales in the spa services as would be expected for an increased space of this size. Zazou has always been very involved in community events (to mention a few, events during the Olympics and yearly Canada parades, etc.) and relocating just across the street from the old location was perfect so that all of his current clientele would not be inconvenienced. Plus the new location is very chic and modern. The overall customer service and quality of service that Zazou Salon and Spa provides is excellent and feedback from current customers support this (Peters & Cowie). The owner and general manager are committed to giving each customer a unique experience and are willing to listen to any recommendations that Inspiration Consulting has to offer. Zazou Mission, Vision, and Values

Mission
We rejuvenate everyone we touch.

Vision
Zazou Salon and Day Spa aspires to become the hybrid Ferrari of the North Shore Salon and Spas. Our genuine, passionate Team is dedicated to achieve success by changing the world one satisfied Guest at a time. We are proud to create a welcoming, exciting, intimate and cool 9|Page

[ZAZOU SALON AND SPA] Inspiration Consulting environment that is rejuvenating and attractive to our loyal Guests. We believe that Zazou Salon and Day Spa is a unique aspirational lifestyle brand that enhances and supports everyday life. Were community focused and globally minded.

Values
Respect. Truth. Love. Corporate Objectives Zazou has six corporate objectives that they would like to achieve. We will make sure to suggest recommendations that will help Zazou to meet their corporate objectives as well as improve upon their current ebusiness practices. Their objectives include: To increase spa users from current levels monthly To see a positive return by the end of year on the spa side of business To increase spa awareness with current salon clients and new potential clients To increase individual overall sales targets and achieve objectives through enhanced ebusiness applications for staff To increase internal and external communication through enhanced e-business applications To continue building business relationships with product suppliers and continue seeking ways to simplify outdated processes SWOT Analysis The SWOT analysis will give insight to Zazous internal strengths and weaknesses as well as its external opportunities and threats. The SWOT, seen in Figure 1, shows what Zazou does well and where there are areas for improvement. We will use Zazous strengths, weaknesses, opportunities and threats to give us direction when we analyze their business and provide recommendations for Zazou.

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Strengths Opportunities
social media trend online advertising and promotion advancements in technology all in one spa and salon services friendly staff excellent service standards veryy supportive and involved management customer loyalty facilities are modern and inviting

Weaknesses
one location inconsistent appearance/dress code expensive product line poor internal communication complex processes for simple procedures limited knowledge of current software

Threats
high competition in North Vancouver behind competition in terms of online promotion and advertising weaker economy is preventing people from spending money on luxury

activities

Figure 1. Zazou Salon and Spa SWOT Analysis Perceptual Map To discover where Zazou is situated compared with their competitors we developed a perceptual map which can be seen in Figure 2. Zazou is a trendy and upbeat salon and spa focusing on the latest styles in hair as well as salon appearance. Their main competition is Spa Utopia and Absolute Spa. These two salons are much larger than Zazou and have several locations throughout Vancouver. In terms of consumer perception, Zazou is not seen as trendy or as luxurious as Spa Utopia and Absolute Spa.

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LUXURY

Spa Utopia Absolute Spa Zazou

Angelos Salon and Spa

TRADITIONAL TRENDY

Chatters

Karma

VALUE Figure 2. Zazou Salon and Spa Perceptual Map

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Current Situation
The following sections will describe Zazou Salon and Spas current situation in the functional areas of Customer Relationship Management, Sales, Human Resources, Accounting, Supply Chain Management, and Marketing. The sections will cover details about Zazous current processes in these areas. Customer Relationship Management Customer Relationship Management is vital to successfully run a salon. Consumers choose services based on the customer service that is offered. Because there are so many complex areas of CRM within this industry, we will focus on a few specific areas that Zazou is not utilizing. The first aspect that we looked at was the booking process at the salon. The process of booking an appointment at Zazou Salon is complex and requires the following process: 1. The customer emails or phones to check the availability of appointments. 2. The employee offers available times to the client via phone call. 3. Customer confirms the date the time. 4. Employee reminds the customer a few days before appointment. 5. Customer comes into salon for appointment. 6. First time clients are called back after appointment and are sent a survey and thank-you card. 7. There is no follow up with existing clientele. This process could be refined by incorporating different ebusiness applications which will be discussed further on in the report. The second area of CRM that Zazou discussed in the interview was their customer databases. Zazou has a customer database that includes names, phone numbers, birthdays, and addresses. Currently, this database is not connected to their email marketing software, Constant Contact. Zazou feels this area of their business is a weakness and believes they could be utilizing the software better if they were connected. Zazou would like to communicate with their customers 13 | P a g e

[ZAZOU SALON AND SPA] Inspiration Consulting more efficiently through the use of online and social marketing instead of their current method card mail outs and newspaper ads. Sales Department Monitoring sales and making forecasts is very important for a small business. Zazou is currently finding weaknesses with their sales software, Milano (Peters & Cowie). This software was bought off the shelf forcing Zazou to make changes to their business processes mainly sales (Peters & Cowie). Milano is the leading software company specializing in salon, spa, medispa and retail software (Milano). Currently the system is not able to set specific goals for the employees to achieve. The general manger has to manually create and input sales goals that employees are required to meet. The software then creates a schedule based on the monthly sales goals. Management would like to see the process reversed, and would like to be able to create a schedule and then have the software project monthly sales goals for them (Peters & Cowie). Another hindrance with the Milano software is that staff cannot access their sales statistics themselves. Currently, employees have to ask management for their updated sales (Peters & Cowie). This process is inconvenient to both the staff and management. Human Resource Department Internal communication between the employees is essential for Zazou to operate productively on an everyday basis. The Milano software keeps track of employees hours, commissions, and pay (Milano). Staff can log into the system to access their daily appointments; however, they are not able to send emails or communicate with coworkers (Peters & Cowie). Zazou would like to see a change in the communication channels to better support their employees. Zazou feels that their daily communication is a current weakness within their company. They have a daily huddle with their staff to brief them on the days activities. Zazou would like to find new ways to improve communication within all levels of the company. Zazous performance management is done by hand on a monthly basis. The process includes a handwritten performance appraisal which is then manually filed in each employees folder 14 | P a g e

[ZAZOU SALON AND SPA] Inspiration Consulting (Peters & Cowie). By incorporating ebusiness this process could be simplified and more effective for both management and staff. Accounting Department Sales are tracked by the Milano software, but Zazou uses an external bookkeeper that is responsible for all accounting procedures (Peters & Cowie). This is not an area that Zazou would like to focus on. Supply Chain Management Small businesses such as Zazou have little control over their supply chain activities. Since Zazou concentrates on the sell side of their business, the control of the buy side is transferred to their different suppliers. Zazou currently has 6 main suppliers of salon and spa products (Peters & Cowie). They communicate with their suppliers by phone or email. Zazou orders weekly or biweekly depending on the type of product. Suppliers complete orders in one of two ways: 1. Supplier comes to the store and evaluates the inventory needs of Zazou. They communicate with management to customize the orders specifically for the salon. 2. Suppliers fill order amounts once they are notified from Zazou. For example, if Zazou needed more hair gel they would call their specific supplier and order exactly what they need. Marketing Department Zazou Salon and Spa currently uses their website, search engine marketing, social media sites including Facebook and Twitter, and a monthly newsletter in their digital marketing.

Website Design
The website www.zazou.ca offers many of the features visitors would be looking for when visiting the site. The website is laid out in a way that is easy for visitors to navigate through. It contains information about the companys services and pricing, photos, testimonials, a video tour, and more. The companys website communicates the businesss value proposition and brand positioning well.

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Search Engine Marketing

Zazou salon has high search results when using search engines. When searching North Vancouver hair salon, Zazou appears first, and fourth when searching North Vancouver spa on Google, and second when searching hair salon or salon and spa.

Social Media
Zazou uses both Facebook and Twitter to promote the companys newsletter, events and promotions; however, these sites are not updated frequently.

Newsletter
The companys opt-in monthly newsletter includes information about what is happening at Zazou that specific month, beauty tips, and links to different sections of the website. The layout and design of the newsletter is very simple.

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Recommendations
After reviewing the companys objectives and present situation in the various areas, we have developed six ebusiness recommendations to be considered by Zazou. The benefits of ebusiness include increasing sales, reducing costs, improving customer service, responding to competitive pressure, and expanding market research (Trites 14-17). Following these researched areas, we have chosen two detailed recommendations that will be described in further detail. 1. Improve goal setting application Currently at Zazou Salon and Spa, the owner and general manager are challenged to come up with monthly goals for their staff to meet. It is difficult enough to determine what these goals should be and we would like to see changes made to their current system with Milano to enhance this area. Specifically, having the ability to take the current schedule, current staffing levels, and available appointments and automatically input goals that the staff can monitor and achieve at their own convenience. The limitations of the current system do not allow for this to automatically occur so the general manager or owner must regularly update the system to show the goals. The other aspect that works in synergy with the actual goal setting is allowing the staff to see, at any point in time, where they are at with their own personal goals. Currently, the general manager must print off the sales reports for staff and this tends to only happen if they are asked by a staff member to do so. We recommend that this be adapted into the Milano system so that the staff can view a current, up to date measure of where they are at for the day, week, month, etc. The benefits to of making these two particular changes to the ebusiness application are personal accountability (that can be tied into the performance plans), increased motivation to book new and repeat customers, ability to monitor trends, and hopefully increase sales. Having clear objectives and goals are key to increasing sales. Without up to date knowledge, especially in a partly commission-based pay structure, the staff may feel as if they have met 17 | P a g e

[ZAZOU SALON AND SPA] Inspiration Consulting their quota and stop working as hard, underestimating what they have actually completed. The system should also offer the staff the ability to view a breakdown of service sales versus their product sales so that they can focus on what they need to sell more of, or perhaps where they consistently excel. By having the ability to track which staff excel in certain areas of sales, or at certain times of the year, as the owner, you can tap into that resource and determine what that employee is doing different than everyone else, and then apply those principles to your performance plans. 2. Enhance CRM programs and activities Zazou Salon and Spa is currently experiencing a gap between their customer database and their direct email marketing software, Constant Contact. Combining these two programs would help to create stronger relationships with their current and potential clients. Although Zazou can send general customer emails, they are not able to tailor these messages because the client database isnt connected to Constant Contact. It is recommended that Z azou incorporate their client database with their Constant Contact software in order to better communicate with their clients. Constant Contact allows the company to create customer profiles for each email address added to the system. Profiles include different demographics, comments/notes, preferences and favourite services and/or products. The first suggestion would be to incorporate customized email campaigns based on clients buying behaviour and demographics. Clients could be sent birthday emails and reminders to book additional appointments with Zazou. With Constant Contact, Zazou can group customers into different categories based on clients preferences and past appointments. A promotional incentive would be included in the emails to encourage them to book their next appointment as well. Each email campaign can be easily measured and compared using the software. This way, Zazou can easily identify which campaigns are successful and which are not. Zazou Salon and Spa is constantly looking for new and exciting ways to communicate with their clients. Establishing many strong communication channels with clients is vital in order for Zazou to develop long lasting relationships. It would be beneficial for Zazou Salon and Spa to add to their current CRM strategy in order to retain their most valuable and profitable clients. The 18 | P a g e

[ZAZOU SALON AND SPA] Inspiration Consulting second CRM suggestion would be to incorporate text messages in order to confirm and follow up with clients. Employees at Zazou would be responsible to text message each client with a scripted message either reminding the client of their next appointment or thanking them for their previous appointment. The text message would make the CRM system more efficient by replacing a reminder or follow up phone call and thank you card. This process would save Zazou time and money in the long run. Another suggestion is for Zazou to update their customer database more frequently with more valuable information. Different client behaviour such as preferences and favourite services could be added in order to generate a deeper understanding of each client. An online survey can be sent to every clients email through Constant Contact in order to receive this additional information. 3. Improving Internal Communication During the initial meeting with Zazou, they expressed interest in improving their internal communication systems (Peters & Cowie). Ultimately, they would like to have a better flow of communication between management and employees. The current Zazou communication plan includes several different forms of interaction with their employees: Daily staffs huddle to discuss goals, current issues, and motivate employees. Performance management system that is done manually on a monthly basis by paper which is then filed in the employees separate files. The report identifies whether or not the employees met their sales and service goals for the month. Staff meetings to discuss general business practices including staffing, training, scheduling, goal setting, and other important news. Based on the current communication plan, we were able to identify several areas of improvement for Zazou. Firstly, we would like to applaud Zazou for their daily staff huddles. This is a great way to increase employee morale and we would not like to see this go. However, we do see that there are a lot of opportunities for Zazou in their performance management system. We would like to see the program switch from paper format to electronic format. Instead of printing off the employees performance reports and filing them for the employees 19 | P a g e

[ZAZOU SALON AND SPA] Inspiration Consulting to review at the end of the month, we would like to see the reports being emailed to each employee. To ensure they have read it, they should respond to the report. We also believe internal communication could improve by sending an internal weekly e- newsletter to the staff to share information with them. This could be a fun way of communicating and could be done fairly informally. To keep things simple, the newsletter could just be a page or two and highlight important information that the staff should be aware about. Employees could take turns writing the newsletter in order to share the workload. Another suggestion in improving internal communications would be to send motivational text messages to each of the employees. This is a personal way to say great job or keep up the good work. It is private and can be done in just a minute or two. We do not suggest only texting your employees as a way of communicating but a quick text now and again can be very motivating for your employees. 4. Inventory Management Zazou Salon and Spa carries a range of cosmetic and spa products for retail sale at their salon location. The products are ordered from the companys five main suppliers. Currently, Zazou tracks their inventory of their products by doing a monthly physical count of what is in store. Tracking inventory by conducting a physical count can carry a great risk of error and can be time consuming. Also it doesnt give the company a constant real time count of inventory. As Zazous product lines are increasing and the company is looking into starting their own product line, Zazou could greatly benefit from having an inventory management software system in place. The Milano software that the company currently uses offers an Inventory Management feature that allows for electronic physical counts of inventory and can accommodate for UPC and SKU codes (Milano). Tracking inventory as it is bought or sold will allow Zazou to have up to date knowledge of their inventory count and will be able to recognize which products need to be replenished more quickly or which products are not being sold as much. The software application will also automatically produce purchase orders when items need to be ordered. This will also save time because a physical count of the products will not be needed. Tracking inventory on the 20 | P a g e

[ZAZOU SALON AND SPA] Inspiration Consulting software will also allow Zazou to look at any historical date to see their inventory movements at that time, so they are able to prepare for busier periods of certain products, or easily see how products are performing.

Figure 3. Milano Supply Chain Management Source: http://www.milanosoftware.com/images/retail/retail_inv.jpg 5. Online Appointment Booking Currently, Zazou Salon and Spa does not allow customers to book appointments online. When discussing this option with Zazou, the company expressed concern with customers booking appointments at unavailable times (Peters & Cowie). Online scheduling is becoming increasingly popular as consumers are more comfortable and knowledgeable using the internet. Many salons and spas are beginning to offer online booking options for their customers. For example, Spa Utopia, one of Zazous biggest competitors , allows customers to make online appointments for many of the companys services. Because Zazou Salon is concerned with the possibility of customers booking unavailable or inconvenient times for certain services or employees, the online booking system could be set 21 | P a g e

[ZAZOU SALON AND SPA] Inspiration Consulting up as an email notification. The customer can fill out their information, email address, requested date, time and services, and the request can be sent as an email to Zazou and an employee can respond to confirm the appointment, or suggest other times if the time is not available. Allowing customers to send appointment requests online also allows them to contact the company anytime of the day, even when Zazou is closed. The online contact can also cause less people calling in to book an appointment and an employee having to flip through appointment books and trying to figure out a time right on the spot. 6. Marketing

Website Recommendation
The website is very well laid out and designed, however the homepage includes a lot of text which can make it overwhelming. The homepage is usually the first page website users visit, and many visitors may not be interested in reading the amount of content posted. The homepage should be able to attract and capture the visitors interest. The website could also be used to offer more of a connection for the company with its customers such as with before and after photos of the salons hair services.

Social Media Recommendation

Zazou can take advantage of the benefits of social media sites by offering more frequent updates. The company can include more posts and updates about new products, promotions, beauty tips, and contests. For example, Zazou can get more followers on Facebook and Twitter and keep visitors returning to the sites. The company could also use these applications to start contests and promotions and generate more awareness about the company.

Online Advertising and Promotions Recommendation

Zazou Salon and Spa can use the Internet to advertise their company and reach a wide market. Banner ads on related websites or Facebook ads are examples of some online advertising options Zazou could use. The company can also take more advantage of search engine optimization through paid advertising search results. 22 | P a g e

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Final Recommendations
The two recommendations we have chosen to expand upon are in the Human Resource Department and the Marketing Department. Human Resources was chosen because building upon the companys human capital and ongoing career development can increase employee retention and engagement, leading to increased customer satisfaction. We chose Marketing as the second area to build upon as one of the companys main objectives is to develop the spa and we feel it is important to create more brand awareness in new creative ways. 1. Human Resources Recommendation There are two areas in Human Resources that can be improved upon. Zazou can focus on their Performance Management Planning to help increase employee engagement and career development in order to positively affect overall customer relationship management. We would also like to see Zazou focus on Internal Communications in synergy with improving Performance Management Planning in an effort to have a consistent plan in place.

Performance Management Planning

After reviewing the various options for improvement we have decided that one of the most valuable assets at Zazou is its employees. Zazou has developed a unique team of employees which all bring various skills, abilities and knowledge to making each customers experience excellent. What is lacking is clear direction on a consistent basis with respect to performance planning. This is both from a daily and monthly perspective. From a daily perspective the employees need to be able to see very quickly where they are at with the goals that management assigns. Since the current method is for the general manager or owner to print off a sales report by request, the employees are less likely to request this daily. It is also a waste of resources and paper. From a monthly perspective when performance plans are completed one-on-one, these are filed in a cabinet not to be looked at until the next month. Often motivation and definition of corporate objectives get lost within the paperwork without having easy access for employees to see and be reminded of where they should be with their goals. 23 | P a g e

[ZAZOU SALON AND SPA] Inspiration Consulting Several years ago various companies started using online performance plans replacing the traditional paper method which often gets forgotten or missed. Online performance plans enables for easy access for employees at their own convenience to see where they are at with their goals, to see what exactly their goals are, and to keep a log of what good things they have done to contribute to the success of Zazou. For career development, it is an excellent resource to provide employees with the option to make an immediate note online about what they did over and above normal expectations for a customer. This helps to build confidence and will show management new and sometimes unique ways to develop customer service practices using direct situations from your employees. ICBC will be used as an example to show how businesses are using the internet for their performance management. Companies such as ICBC, who just started using an online version approximately two years ago, currently require their claims staff to log two excellent customer service situations per quarter (ICBC). This one pillar within the performance plan helps to keep staff reminded about this high standard, and then look for situations where they can truly impress and help someone more than what is required; situations where an employee does go over and above helps to build what they call the BBQ score, how people rate your business and what they say when chatting around a summer BBQ. Since people have a tendency to complain to others more often about poor service than positive service, the online performance plan is an excellent method to keep a log of good customer service situations, areas of development, training, requests for support from management, overall corporate goals, individual goals, and allowing the employees to see the connection between all the layers of objectives. We feel the main objective using an online performance plan at Zazou will achieve is an increase in internal and external satisfaction. It is possible that Milano may offer an option of an online performance plan at a less expensive price than for example SAP or Salescloud. It appears that on Milanos website they offer a feature called Staff Management (Milano). Figure 4 is an example of what the feature looks like.

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Figure 4. Performance Management Planning

Source: http://www.milanosoftware.com/images/spa/spa_staff.jpg

However its unclear whether or not Zazou currently has access to this feature, if it would be an upgrade, and whether or not it offers the option for performance plans within it. We would recommend that in an effort to keep costs down for Zazou that they phone a technical representative (18006671596) at Milano to inquire how to incorporate performance plans into the current system or the cost of adding a bundle upgrade. The same inquiry can also be made through SAP Business Objects here in Vancouver to see if there is a more affordable option that may be able to work more effectively within your current systems without having to completely overhaul a new ERP system. The cost of SAP Business 1 system for a small business is approximately $30,000 however there is a wide range in price depending on needs. Another option if Zazou were to focus on solely the report aspect of sales where staff can access their own sales conveniently at a much less expensive option would be through using Crystal Reports. For one user it would cost approximately $100, but then it would increase depending on the number of users you would want to add on with access. An SAP accounts representative may be able to help provide some insight onto further options for Zazou to consider. It is 25 | P a g e

[ZAZOU SALON AND SPA] Inspiration Consulting important to note that although performance plans are often seen as just a formality for some employees, the online format helps them to connect the importance of performance plans to overall customer relationship management. Although it is difficult to change to a new system at first, we expect that the outcome of using an online performance plan system will increase your sales, since goals and achievements will be so easily accessible, staff will strive to regularly improve their results. The plan will also help to increasingly identify which employees may need further training and where to focus on improving employee morale.

Internal Communication
Internal communications is one of the most crucial areas for any business. Without proper communications amongst those in an organization, mistakes can be made or opportunities lost due to the lack of proper information being shared and reaching the right individuals. Currently, Zazou finds that their internal communications is an area that can be improved, as the company does not have a way to effectively communicate with its employees and encourage employees to communicate with each other. Although the morning team huddles to discuss goals for the day are important, more communication is needed as these huddles alone can be ineffective since not all employees are present, and various events can occur throughout the day that need to be recorded and communicated. Having proper communications channels in place can ensure the right employees are receiving the right information at the right time. Being able to communicate effectively can reduce errors across the organization, increase employee job satisfaction, and ensure all employees are aware of occurrences within the organization. Zazou Salon and Spa could greatly benefit from the use of a company intranet. An intranet is a site that can be accessed from the web by members of the organization from wherever they are located. An intranet can just been seen by people internal to the organization (Trites 10). They are simple, easy to use and are compatible with other systems (Trites 62). Microsofts SharePoint provides an intranet where employees can log in and share information and access company resources. Microsoft SharePoint allows for content to be updated so that employees have access to documents and resources that are easily searchable and up to date. 26 | P a g e

[ZAZOU SALON AND SPA] Inspiration Consulting The intranet allows integrated calendars to show each individuals work schedule on one calendar, as well as separate calendars. The site also offers a community feature, allowing employees to communicate with each other and share knowledge and ideas. Zazou can encourage employees to communicate with each other through blogs, discussion topics, and surveys posted on the intranet. The software can be downloaded online, and can be easily customized for Zazous. The program costs $6.68 per user per month and is later explained in the budget. Using the intranet will not only allow Zazous employees to communicate amongst each other and access company documents and information such as sales reports, customer feedback reports, employee manuals, vacation request forms, schedules, etc, but Zazou can also communicate with its employees by publishing updates and notifications. Zazou can communicate through the intranet with updates and internal newsletters that communicate goals, tips, and recognize outstanding employees. Having an internal newsletter can help motivate employees by recognizing their accomplishments and reinforcing goals the company is striving to reach. The site can also be set up to send out email notifications when updates occur on the site. An example of a basic SharePoint homepage with calendars, tasks, team discussions, and announcements is shown below in Figure 5.

Figure 5. Microsoft SharePoint

Source: http://blogs.msdn.com/cfs-filesystemfile.ashx/__key/CommunityServer-Components-PostAttachments/00-00-7127 | P a g e 58-21/Send-to-Records-Center.png

[ZAZOU SALON AND SPA] Inspiration Consulting

To implement an internal communications plan using a company intranet, Zazou would need to assign an individual, or individuals, to create and maintain the site and decide what information should be accessible from the intranet. The company must also ensure that all members of the organization are aware of the change and are on board to use the site effectively. Once the intranet has been purchased and set up, Zazou would then need to train all employees to ensure that each individual has access to the site and knows how to properly use each of its features. The company must stress the importance of the site to make sure all employees are logging onto the site on a regular basis. Ensuring all members know the value of their information to the organization and opening proper lines of communication can help encourage employees to share their knowledge across the organization. Effective communications within an organization can lead to increased efficiency and productivity. With effective internal communications plans in place, management can easily communicate with employees and individuals within the organization can easily access information and communicate with others in the organization, no matter where they are located. The effective use of a company intranet will not only allow employees to be more knowledgeable about the organization with up to date information, but will also allow them to connect more with the company and others within the organization. Individuals will feel more open to sharing knowledge with the company, feel more up to date, and be more motivated to work towards reaching goals. Having an internal communications plan that is effective can lead to increased efficiency and productivity, and therefore hopefully lead to increased profits from an increase in sales and cost savings from errors.

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Recommended Implementation Plan

Human Resources Implementation Plan

Task/Activity Research & Confirm Option 1 or 2 Contact Milano Contact SAP Business Objects Research Microsoft SharePoint Business Intelligence Research Decide on Option Planning Decide what information to include Plan on When/ How to keep staff informed Who has access to what information Designing Staff Training Sessions Implementation & Evaluation Training session with technical rep from company Staff Training Sessions Overlap current system with new system Followup session with staff - feedback Make recommended changes/discontinue old systems Meeting with Bruce/John & Marketing Rep Explanation Start Date 15-Apr-11 15-Apr-11 18-Apr-11 18-Apr-11 15-Apr-11 29-Apr-11 1-May-11 1-May-11 1-May-11 14-May-11 14-May-11 1-Jun-11 1-Jun-11 7-Jun-11 7-Jun-11 21-Jul-11 1-Aug-11 Dur 15 0 0 4 15 0 31 6 13 17 17 44 6 14 54 10 13 Due Date 30-Apr-11 15-Apr-11 18-Apr-11 22-Apr-11 30-Apr-11 29-Apr-11 31-May-11 7-May-11 14-May-11 31-May-11 31-May-11 14-Aug-11 7-Jun-11 21-Jun-11 31-Jul-11 31-Jul-11 14-Aug-11 Assigned to

See what competitors are using Management Meeting

Bruce/John Bruce/John Marketing Rep Marketing Rep Bruce

Bruce/John Bruce/John Bruce/John Hired Company

Team meetings

Upper management meeting Team meetings

Bruce/John All John All Bruce/John

Recommended Budget
Option 1

Business Process Fixed Cost Variable Monthly Cost Microsoft SharePoint $0 $6.68 per user x 35 Crystal Reports $100 $6.00 per user x 25 Milano Package Upgrade $1,000 Milano Internal Onsite Trainer $1,000 As needed basis Total $2,100 $12.68 per user x 35 = $443.80 **All costs above are estimated and require verification
Option 2

Business Process Fixed Cost Variable Monthly Cost Microsoft SharePoint $0 $6.68 per user x 35 Crystal Reports $100 $6.00 per user x 25 SAP Business 1 $30,000 SAP Internal Onsite Trainer $10,000 As needed basis Total $40,100 $12.68 per user x 35 = $443.80 **All costs above are estimated and require verification To summarize the above two budget options, we feel that Option 1, using the current software through Milano and looking into an upgrade option, will be the most affordable option for Zazou and should help to rectify the current barriers it has been facing in human resources. Although the implementation of a Human Resources plan including software for both goal setting applications and internal communications may seem like a large upfront cost, we believe the benefits of these systems will outweigh these costs and help Zazou increase its profits. Having appropriate goal setting applications and internal communications can help Zazou run its business more efficiently through appropriate scheduling and can also help the company to easily identify weaknesses and strengths and set appropriate goals accordingly. Having a company intranet will also allow employees to be more involved with the company and updated even when they are not on shift. Through improving these areas in Human Resources, Zazou will increase its employee morale and productivity, therefore leading to an increase in efficiency and customer satisfaction.

[ZAZOU SALON AND SPA] Inspiration Consulting 2. Marketing Recommendation Zazou Salon and Spa is currently using many different online marketing techniques. Their website is user friendly, interactive and is representative of the companys brand. Zazou utilizes social media by using Facebook, Twitter and a blog located on their website. The Constant Contact software is used to send newsletters to subscribers. The following recommendations will be able to enhance their current online marketing strategies while making the different mediums more cohesive. We recommend that Zazou Salon and Spa improve upon the following areas: Website Modifications Social media Online advertising and promotions

Website Recommendations
Zazou Salon and Spas homepage is very visually appealing from first glance. As the user scrolls down the page the content looks cluttered making it difficult to focus and read the information. We recommend eliminating the text shown in Figure 6 and moving to a separate menu option labelled PHILOSOPHY. The new recommended title menu is shown in Figure 7.

Figure 6. Zazou Salon and Spa Homepage

Source: http://www.zazou.ca/

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[ZAZOU SALON AND SPA] Inspiration Consulting

PHILOSOPHY

Figure 7. New Website Title

Source: http://www.zazou.ca/

We recommend that Zazou incorporate stylists/aestheticians profile under the TEAM menu option. Each employee could have a personal photo and short biography describing their backgrounds, specialities and awards received. The biographies should be reflective of the different employees personalities making them relatable to your clients. Another recommended addition to Zazous website includes a GALLERY menu option. This would include photos of current hair styles and latest looks. For example, it could include celebrity trends and runway styles. Zazou could also post before, during and after photos of clients under a sub menu option labelled Makeovers.

Social Media Recommendations

Zazou Salon and Spa could further extend the use of their social media in the following ways. Firstly, Zazou could make their Twitter updates more interactive with their followers. This can be done by tweeting funny and catchy phrases in order to get the followers attention. They could tweet about a humorous incident at the salon or talk about a celebritys new hair style. For example, OMG did you see Lady Gagas new hairdo?! with a picture or link attached. Limited or instant online promotions could also be offered through Twitter. Zazou could tweet 32 | P a g e

[ZAZOU SALON AND SPA] Inspiration Consulting Come in today for a haircut and receive 20% your next spa visit! and include a code that must be presented at the time of purchase. Using Twitter will help create instant communication to your clientele. By communicating with clients on a daily basis, their loyalty to the salon will increase because Zazou will be top-of-mind. Secondly, Zazou could make use of YouTube by posting fun videos that show off their talents. The before and after makeovers could be recorded and uploaded with catchy music in the background. Zazou could post informal 30 second video commercials on YouTube as another advertising medium.

Thirdly, Zazou should update their Facebook page more frequently as fans tend to stop visiting pages that arent current. Updating their page will help Zazou show up in their fans newsfeeds, encouraging them to visit the page. Similar to Twitter, Zazou could post catchy phrases to entice their followers to comment and interact with the company.

Online Advertising and Promotions

There are many online opportunities for Zazou to advertise for a relatively low cost. Using internet technology to advertise is less expensive than most print ads. They allow businesses to choose very specific advertising avenues that can focus on their target market. We recommend that Zazou use several types of online advertising and promotional tools to enhance their current marketing strategies. The first type of online advertising that we suggest Zazou to utilize is banner advertisements. Banner ads entice users to click on the banner and drive traffic to the Zazou webpage. Zazou will be able to measure the effectiveness of their banner ads by tracking the number of people who click on their banner to visit their site. Zazou could choose several internet locations to apply banner ads. Zazou should choose sites that are used by their target market. These websites could include local fashion and beauty blogs, yoga websites and online magazines. In addition to banner advertising, we also recommend Facebook ads. Facebook ads are similar to banner ads in that Zazou will be able to choose the advertising locations however, these 33 | P a g e

[ZAZOU SALON AND SPA] Inspiration Consulting locations will be limited to Facebook pages. Both Facebook and banner ads allow Zazou to get very specific with their target market. For example, Zazou could choose to place an advertisement on Avedas Facebook page. The advertisement would appear under sponsored on the right side of the Facebook page. The user could then click on the advertisement which could take them to either Zazous Facebook page or their website. Below is an example of how Zazou could use a Facebook advertisement on Avedas Facebook page.

10% off salon services

Figure 8. Example of Zazou Facebook Advertisement

Source: http://www.facebook.com/Aveda

Google ads are another form of advertising that could be very beneficial for Zazou. Google ads allow Zazou to advertise on the most-used search engine worldwide while being able to focus in on the local region of Vancouver. Google Ads are very simple to set up and easy to implement and have one very important selling feature absolutely no risk. Zazou will only have to pay for Google Ads if they work. They are also very flexible. Google advertisement campaigns can be changed, paused, or ended at any time. Zazou can create Google ads that appear when certain keywords are searched. For example, if someone searches North Vancouver Spa on Google, an advertisement will appear on the right hand side of the search results. Similarly to banner and Facebook ads, Zazou will be able to advertise to an audience that is already interested in your business. An example of where Zazou would advertisement on Google can be seen in Figure 9.

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[ZAZOU SALON AND SPA] Inspiration Consulting

Figure 9. Example of Zazou Google Advertisement

Source:http://www.google.ca/#sclient=psy&hl=en&site=&source=hp&q=north+vancouver+spa&aq=f&aqi=&aql=& oq=&pbx=1&fp=97dfff1b864bbdfd

Groupon is another tool that Zazou could use to advertise and promote their salon and spa. It is a buying approach to shopping that has increased in popularity. Connected by the internet, a group of people purchase the same product/service to receive discounts (Groupon). There are many benefits of using Groupon as it helps create valuable, new customers (Groupon). Since a minimum number of people must buy for the offer to be valid, Groupon guarantees paying customers (Groupon). Providing discounts on Groupon would give Zazou more exposure while creating word of mouth throughout Vancouver. Another benefit of using a group buying site is that there are no out of pocket costs, rather the company takes a piece of each Groupon sold (Groupon). For Zazou, the main objective would be to use Groupon to increase first time customers by getting them into your salon. After visiting the salon, other advertising techniques would be used to further retain the customer. The advertisement would look similar to the one seen in Figure 10.

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[ZAZOU SALON AND SPA] Inspiration Consulting

Figure 10. Example of Zazou Groupon Advertisement

Source: http://www.groupon.com/vancouver/deals/barbarella-hair-salon

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Recommended Implementation Plan

Marketing Implementation Plan

Task/Activity Website Modifications Create Staff Biographies/Photos Conduct Client Makeovers Add "PHILOSOPHY" Menu Option Add "TEAM" Menu Option Add "GALLERY" Menu Option Social Media Activities New Twitter Updates Post YouTube Videos Update Facebook Page Online Advertising and Promotions Banner Advertisements Facebook Advertisements Google Advertisements First Groupon Coupon Explanation Start Date 15-Apr-11 15-Apr-11 15-Apr-11 6-May-11 6-May-11 6-May-11 15-May-11 15-May-11 15-May-11 15-May-11 17-May-11 17-May-11 17-May-11 17-May-11 17-May-11 Dur 36 7 20 9 9 9 N/A Weekly Monthly Weekly 7 7 7 7 7 Due Date 06-May-11 22-Apr-11 5-May-11 15-May-11 15-May-11 15-May-11 N/A N/A N/A N/A 24-May-11 24-May-11 24-May-11 24-May-11 24-May-11 Assigned to

Ask employees for personal biographies Take before/after photos Add content Add content Add content

All Staff John/Marketing Marketing Rep Marketing Rep Marketing Rep

Updated 3-4 times a week Updated once a month

Marketing Rep Marketing Rep Marketing Rep

Choose and place Choose company websites Trial run

Marketing Rep Marketing Rep Marketing Rep Marketing Rep

Recommended Budget
It is recommended that Zazous marketing department implement these marketing changes internally. Below is the recommended budget for Zazou. ACTIVITY Initial Fixed Cost Website Modifications 6 pages @$200 per page Total Initial Fixed Cost Variable Monthly Cost Updating Social Media 8 hours per month @ $20 per hour Banner Advertisements (Pay per click @ $0.50 each) Google Advertisements (Pay per click @ $0.50 each) Facebook Advertisements (Pay per click @ $0.50 each) Groupon Promotion Total Variable Cost Per Month Total Cost of Recommendation **Above amounts are only estimates It is difficult to determine exactly what Zazou will need to sell in order to break even for this recommendation because they offer a variety of services with different associated prices. It is important that Zazou monitor their website analytics in order to determine where their website traffic is coming from. They will be able to identify how many users have clicked on each of their advertisements through viewing their website clickstream. Each advertising channel can be further evaluated by distinguishing the revenue coming from each ad. Zazou could implement an online promotion on their website allowing them to measure the amount of clients coming to their salon from their website. This would give Zazou a relative idea of how effective the online advertising is. COST $1,200 $1,200 $160 $200 $200 $200 $500 $1,260 $2,460

[ZAZOU SALON AND SPA] Inspiration Consulting

Conclusion
Zazou Salon and Spa strives to be recognized as a full service high-end salon and spa catering to the North Shore market. After reviewing the functional areas and corporate goals of Zazou Salon and Spa and researching out various areas that can be improved through the use of ebusiness, we would recommend that Zazou Salon and Spa incorporate the recommendations in the Human Resources and Marketing areas into their business processes. Zazou expressed their concern with their current lack of proper internal communications and goal setting applications, and their desire to improve their marketing capabilities through communications with customers to increase sales in the companys corporate objectives. The recommendations within the Human Resources area of the company included improving performance management planning and internal communications. As Zazou staff is a very important asset to the company, it is important that their skills and abilities are able to be used to their full potential to increase customer satisfaction, which can lead to an overall increase in company sales. We would recommend that Zazou Salon and Spa purchase a system through SAP Business Objects or modify the Milano software and if not already using the program, acquire Crystal Reports to implement this recommendation. With internal communications, Zazou currently does not have an efficient way to keep in contact with employees on an up to date basis, or allow employees to contact one another. With the use of an intranet, employees can login to the companys internal site from wherever they are located and receive up to date news, view calendars, add to discussions, and search for relevant company information such as sales reports or customer contact information. We would recommend Microsoft SharePoint as an intranet application for Zazou to use that can be downloaded online. We believe that continually allowing employees to review their progress, keeping staff up to date and keeping internal communication lines open are essential ways to keep employees motivated and developing their skills. Having motivated staff can lead to an increase in customer satisfaction, thus helping to contribute to the companys overall objectives of increasing the amount of new clients and increasing sales.

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[ZAZOU SALON AND SPA] Inspiration Consulting The Marketing recommendation included improving online areas in the company website, social media sites, and online advertising and promotions. We recommended adding employee profiles to the website, as well as a photo gallery of customer makeovers and moving the companys information on the homepage to a new section to be added to the website called Philosophy. Additionally, we recommended Zazou increases the use of their social media sites to keep customers engaged and updated on the company, and would also recommend that the company uses banner advertisements on related websites and Facebook ads. Zazou could also use Google ads to increase their search ability, and offer a special promotion on Groupon to attract new customers to the company. We believe that implementing the above recommendations will help Zazou Salon and Spa achieve their overall objectives and help them to better communicate and display their value proposition and the new mission of being the Ferrari of the North Shore Salon & Spas (Peters & Cowie) . Increasing employee and overall company goal setting capabilities, improving internal communications amongst employees and management, and using effective marketing tools to reach wider markets can all contribute to increasing Zazous brand image . Others areas that will be benefited include the companys brand awareness, customer retention and satisfaction which will all help increase company sales.

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[ZAZOU SALON AND SPA] Inspiration Consulting Works Cited "About Groupon." The Daily Groupon. Web. 06 Apr. 2011. <http://www.groupon.com/> "Aveda Canada | Facebook." Welcome to Facebook - Log In, Sign Up or Learn More. Web. 05 Apr. 2011. <http://www.facebook.com/AvedaCanada>. "Barbarella Hair Salon Deal of the Day | Groupon Vancouver." The Daily Groupon | Coupons, Discounts, and Deals on the Best in Central Jersey. Jan. 2011. Web. 01 Apr. 2011. <http://www.groupon.com/vancouver/deals/barbarella-hair-salon>. "Google Images." Google. Web. 05 Apr. 2011. <http://www.google.ca/imghp>. ICBC | Home. Web. 20 Mar. 2011. <http://www.icbc.com/>.Microsoft Milano Software | Spa, Salon, Medi and Retail Software Specialists. Web. 1 Feb. 2011. <http://www.milanosoftware.com/>. Peters, Bruce & Cowie, John. "Zazou Salon and Spa." Personal interview. 4 Feb. 2011. SAP Personal Interview Nicole Versteeg, Inside Sales Education Executive "SharePoint Online - Hosted Collaboration, Enterprise CRM | Microsoft BPOS." Web. 21 Mar. 2011. <http://www.microsoft.com/online/sharepoint-online.aspx>. Trites, Gerald, and Jefim Efrim Boritz. EBusiness: a Canadian Perspective for a Networked World. Toronto: Pearson Prentice Hall, 2009. Print. Zazou Salon & Spa North Vancouver - Rejuvenation Redefined. Web. 20 Jan. 2011. <http://www.zazou.ca/>.

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