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Beauty of Sorbet

G-CS-21-12

February 2012

THE BEAUTY OF SORBET

As the cabin crew dimmed the lights with the plane following the evening meal was cleared, Ian Fuhr, chief executive officer of the Banquise Group, mirrored on what he had obtained since the brand was launched in 2005. Fuhr was coming back home to South Africa following having liked watching many of the 2011 Rugby Community Cup video games held in New Zealand. The short term way forward for Sorbet looked assured. Traditionally, the a few months of Oct and The fall of delivered more sales revenue from the chain of beauty salons as a result of South Photography equipment summer vacations. But Fuhr was wrestling with the concern of how the Group could maintain their high levels of service as well as strong Iceberg brand even though both raising their quantity of outlets and diversifying into other business opportunities. By 2011 Sorbet contained 20 company-owned beauty salons and nail pubs, mainly in the Johannesburg, Hat Town, Durban and Pretoria areas, and 17 Iceberg franchised salonsi. They had nearly 400 practitioners and other staff and their cautiously managed dedication database suggested they had 67, 000 loyalty members (whom they called ‘guests'). A buyer explained that she got noticed the distinctive branches of Sorbet in many buying centres nevertheless had at first gone to a Sorbet outlet because of a giftcard given to her as a birthday present. She was immediately struck by the professionalism of all their particular staff; the cleanliness and bright atmosphere of the salon appealed to her, particularly the glowing ‘ice-cream‘ shades of the unique bubble decals. Everything ran on time, employees were immaculately turned out in neat uniforms and chatted to clients with great charm; your woman felt that " the happy go through the branch and staff often had was genuine rather than forced”. Your woman felt the fact that staff were better trained and sent a better encounter and end result than the resort spas your woman had frequented. Furthermore, lodge spas' prices appeared to be twice that of Iceberg. Another benefit for her was that she acquired started offering Sorbet gift vouchers since gifts to her friends since she knew that the recipient had an intensive variety of options from which to choose in a wide range of spots. The customer was impressed the fact that store dispatched text message reminders to her cellphone the day before every scheduled appointment and the lady had been amazed when she received a text message to advise that she had reached her loyalty level threshold and was today entitled to a free treatment of her choice. Compared to other retail stores from which one received small dedication vouchers after working large amounts of money, she experienced that the Iceberg loyalty system offered a much greater revenue. She also enjoyed the fact that she earned extra commitment points on her behalf Clicks card (a significant national full chain) for every single treatment, received a birthday discount on the treatment coming from Sorbet and was often given cost-free samples of deal with care products. The girl summed up her knowledge over a 12 months of having manicures, pedicures and facials by simply saying " I trust Sorbetii”.

Determining the gap

Fuhr believed back upon why he had transitioned from the retail towards the beauty industry. In 1976 he started a retail organization with his buddy, which composed large stores selling largely house ware, stationery, search for wear and music to the lower income industry. Over the subsequent 28 years, Fuhr continuing to expand and help operate the business although enjoying numerous other jobs in the middle. He tried his hands with a music business for approximately six to seven years and then began a work

This case was prepared by Verity Hawarden with Prof. Margie Sutherland and Nicola Kleyn at the Gordon Institute of Business Scientific research in Johannesburg, South Africa. The case is not intended to display effective or perhaps ineffective handling of an administrative situation; it is intended for class discussion simply. Copyright В©2012 Gordon Commence of Business Science, College or university...

References: i

Sorbet website: http://www.sorbet.co.za/sorbet-story (accessed 24 January 2012)

v

Sorbet site: http://www.sorbet.co.za/sorbet-story (accessed 24 January 2012)

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