Personnel Management

Personnel manager in a retail perfume business plays an integral role by ensuring the effective management of the business personnel and creating a conducive environment for human relations within the perfume salon. Besides the allocation of staff, personnel management is responsible for other tasks including policy making, decision making and also acts as a link between the salon managers and the employees. HBY Salon will appoint a personnel manager that will be solely responsible for the above tasks. In case of any conflicts, the personnel manager will act as a mediator to ensure that the disputes are promptly resolved before reaching the public.

1. Allocation Design

The personnel manager will be responsible for the allocation of tasks to employees within HBY Perfume Salon. Responsibilities will be allocated based on the needs of the jobs and the experience of the job holders. The business will employ a Taylorism job design. The job design will be based on various principles including creating a standard method for each task, selecting and hiring qualified personnel for the work, training the workers and giving necessary support to the workers where need be. The wages paid to the employees will be based on the time-rate system and will, therefore, be paid on fixed waged period which would be monthly. Moreover, the wage structure will ensure that HBY personnel are paid depending on their job description. Therefore, those with higher job descriptions will earn more wages and vice versa.

The store will be laid out with the new business products being up front to attract and entice customers into the perfume salon. The store will be designed to create a sense of identity with the perfume products being displayed as trademark products. Besides, the store designed might be changed from season to season to accommodate new products in the market. The interior of the shop will be spaced to ensure that all the store corners can easily be viewed without the help of CCTV cameras. The easy-to-view spaces will help in preventing shoplifting incidences. Moreover, it is very vital for the store to be located in a busy environment and that’s why we chose a location next Tesco supermarket that enjoys a large customer base. The furnishing of the store will be done to help optimize the available space. The store will have a checkout locker that is centrally located in the store. The lockers will be stocked with a variety of products to enable impulse buying.

Supply Chain Management

The success of HBY Perfume Salon and customer satisfaction will be solely based on an efficient and effective supply chain system. The supply chain management department will be vital for the business due to a number of reasons. For instance, the supply chain management will ensure that products are delivered on time and according to the specifications of the customers and thereby increasing customer satisfaction. Besides, the supply chain will help in reducing the operational costs involved in the purchasing of raw materials.

1. Sources of Raw Materials

HBY Perfume Salon will get its products from France since the country is the leading supplier of retail perfume products. After an in-depth analysis of the producers and suppliers of perfume products in France, the business settled on two perfume suppliers who were considered to be efficient and cost-effective.  Beauty’foule Diffusion, leading perfume manufacturers and retailers in Marseille, France, will be contracted to supply perfume products for HBY Salon. The company not only deals, in perfumes, but also a range of other beauty accessories that would enable the HBY business to gain a competitive advantage over other business. Besides, the company offer great discounts and after sale services including free delivery of products purchased from them. For packaging purposes, the business will contract Europackcom, a company that deals in the packaging of perfumes and beauty products amongst other wide range of products. This move will be aimed at reducing the operational cost that would have instead cost the business. The business will sign a five-year agreement with the two companies that will see the companies supplying the products needed by HBY. The payments will be done at a predetermined period and not only the delivery of products.

2. Price Rationality

The business will make rational pricing decisions that will see the business maximizing profits while minimizing operational costs. Therefore, an analysis of the market indicates that consumers in the Norwich market would want to buy mostly useful perfume products at the lowest price. Thus, for the business to adequately price its products while at the same time reducing the risk of running losses, a comparison of costs of similar products needs to be conducted. According to the analysis, only 16% of the consumers of perfume products preferred products priced over 70 pounds and less than 30v pounds with the largest population favoring products ranging between 30-70 pounds as indicated in figure 1. This is an indication that the larger population of consumers were of the middle class. Therefore, in pricing the products, the business will consider such factors to ensure that it remains competitive in the market. Moreover, an analysis was also conducted based on the quantities of perfumes preferred by the consumers. To was interesting to note that the more significant percentage of the consumers preferred perfumes of around 50ml and slightly above 75ml. Only a smaller portion of the consumers opted for perfumes with smaller quantities of 10ml and below. Findings of the analysis were as indicated in figure 2. Besides, perfumes with quantities of over 100ml were preferred only by approximately 18% of the consumers of perfume products in Norwich city.

Figure 1

Figure 2

Conclusion

HBY perfume salon will be store will deal with perfume products and other variety of products including volatile aromatherapy liquid and an aromatherapy candle. The business will operate both online and offline stores that will allow customers in every part of Norwich city to access its products. The physical location of the business will be located in Norwich market. After conduction a market segmentation, the business has identified its target consumers to be individuals aged 18 years and above. The business is expected to face stiff competition with the already existing perfume retailers within Norwich city. Therefore, to gain a competitive advantage, the business is expected to provide unique and custom made products in the market. The retail business will be affected by various factors including changes in taxation and import regulations due to Brexit. The products of the retail business will be cost-effective and mostly according to the preferences of the consumer’s custom made fragrances. The allocation of labor resources to the business will be based on the job requirements and the expertise of job holders. Moreover, the business will develop efficient supply chain management systems to help reduce operational costs and ensure customer satisfaction. The store will acquire its raw materials form to French companies.

Recommendations

Even though the Norwich retail market is perceived to be crowded, it is vital for any retailer to provide unique and cost-effective products in the market. Moreover, the delivery of services to their consumers should also be unique. Besides, the perfume retailers currently enjoy a broad consumer base that as not been effectively utilized. The retailers should conduct a market analysis through market segmentation to identify the needs and specifications of such consumers. This move will help increase consumer base thereby increasing the overall sales.