Value Chain Analysis
The value chain describes all the activities that make up the economic performance and capabilities of Sugar Sugar. It also helps the firm to understand the activities that create value and those that do not. Support activities include finance, human resources and management information systems. Primary activities include supply chain management, operations, distribution, marketing & sales and follow up service.
Support Activities
Finance
Human Resources
Sugar Sugar currently has 17 employees and they are critical to the success of the firm. The organization highly values the health and wellbeing of all employees.
Despite not offering medical insurance, Sugar Sugar provides paid sick time to all its employees. In …show more content…
However, the second branch located in Kirkland has not been able to reach the same performance. As a result, Sugar Sugar is reevaluating their promotional tools to be able to regain market share
Supply Chain Management
Body sugaring is the specialty of Sugar Sugar. The sugar paste used to perform the hair removal and facial treatments is sourced from Tamara’s Professional Body Sugaring. Tobi Kirsch has developed a very good relationship with the vendor for the past five years. Hence, this has enabled her to purchase 35oz of sugar pastes for $18.33 while her competitors pays $22 for the same product. In order to decrease their supplier costs, the firm is currently looking into manufacturing its brow powders and ingrown hair serums.
Distribution
Sugar Sugar provides convenience and a seamless experience to consumers by enabling them to book appointments online or by phone. The greatest benefit of online booking system is that clients can book services at their own convenience. This creates value to their experience because it enables them to navigate through the variety of services listed on the webpage without feeling rushed to make a choice. It also increases the efficiency of front desk personnel because it allows them to focus more on guests that are in the …show more content…
A cause of this is that the organization does not have a business strategy and lacks the focus needed to achieve their sales goals. Sugar Sugar hopes to change their current situation with a new marketing strategy and promotional tools.
During the first years of operation, the business participated in various trade shows where the owners offered a complimentary lip or brow removal to promote the concept of sugaring. Another tactic used to introduce this concept and generate sales was coupons done through Groupon and a raffle.
Currently, the Green Lake branch relies on word of the mouth to attract consumers and gain market share in the industry. However, during slower times, management exploits Sugar Sugar’s social media channels to run small contests and promotions to boost the sales of that location. As a result, this branch has been able to remain profitable for the past nine years. However, the Kirkland branch, which is the second store, has been facing challenges to attract consumers to the store and generate sales. The only promotional tools used prior to their opening was fliers that were distributed on the street and small campaigns on social media
The value chain describes all the activities that make up the economic performance and capabilities of Sugar Sugar. It also helps the firm to understand the activities that create value and those that do not. Support activities include finance, human resources and management information systems. Primary activities include supply chain management, operations, distribution, marketing & sales and follow up service.
Support Activities
Finance
Human Resources
Sugar Sugar currently has 17 employees and they are critical to the success of the firm. The organization highly values the health and wellbeing of all employees.
Despite not offering medical insurance, Sugar Sugar provides paid sick time to all its employees. In …show more content…
However, the second branch located in Kirkland has not been able to reach the same performance. As a result, Sugar Sugar is reevaluating their promotional tools to be able to regain market share
Supply Chain Management
Body sugaring is the specialty of Sugar Sugar. The sugar paste used to perform the hair removal and facial treatments is sourced from Tamara’s Professional Body Sugaring. Tobi Kirsch has developed a very good relationship with the vendor for the past five years. Hence, this has enabled her to purchase 35oz of sugar pastes for $18.33 while her competitors pays $22 for the same product. In order to decrease their supplier costs, the firm is currently looking into manufacturing its brow powders and ingrown hair serums.
Distribution
Sugar Sugar provides convenience and a seamless experience to consumers by enabling them to book appointments online or by phone. The greatest benefit of online booking system is that clients can book services at their own convenience. This creates value to their experience because it enables them to navigate through the variety of services listed on the webpage without feeling rushed to make a choice. It also increases the efficiency of front desk personnel because it allows them to focus more on guests that are in the …show more content…
A cause of this is that the organization does not have a business strategy and lacks the focus needed to achieve their sales goals. Sugar Sugar hopes to change their current situation with a new marketing strategy and promotional tools.
During the first years of operation, the business participated in various trade shows where the owners offered a complimentary lip or brow removal to promote the concept of sugaring. Another tactic used to introduce this concept and generate sales was coupons done through Groupon and a raffle.
Currently, the Green Lake branch relies on word of the mouth to attract consumers and gain market share in the industry. However, during slower times, management exploits Sugar Sugar’s social media channels to run small contests and promotions to boost the sales of that location. As a result, this branch has been able to remain profitable for the past nine years. However, the Kirkland branch, which is the second store, has been facing challenges to attract consumers to the store and generate sales. The only promotional tools used prior to their opening was fliers that were distributed on the street and small campaigns on social media