Naturals Salon: Growth and Expansion

Name: Naturals Salon: Growth and Expansion (English version)
SKU: W37832

Anshul Mathur, Kriti Swarup, Chackochen Mathai, Pallavi Chaturvedi

Product #:W37832

Supplier:Ivey

Discipline:Marketing, Strategy

Setting:India, 2023

Details:Case (PDF) • 16 pages • 2024-10-23

Subjects:

Growth strategy Corporate strategy Innovation Environmental analysis Strategy management Strategic analysis Sales and marketing Marketing Strategy

Geography:

Asia India

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$10.54

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In March 2023, the founders of Naturals Salon, the largest salon chain in India, faced crucial decisions regarding the company's future growth and expansion. With over 750 salons and more than five million customers, primarily in southern India, Naturals Salon had solidified its leadership in a previously unorganized market through innovations such as franchising. However, increased competition from both international and Indian brands had intensified. The founders of Naturals Salon contemplated strategies to maintain their competitive edge and realize their vision of expanding to over 3,000 salons by 2029. They considered several options: reinforcing their dominance in the southern market, venturing into northern India to capture new regions, or exploring international markets to leverage the growing Indian diaspora and potentially higher profit margins. The founders would have to carefully consider the risks and opportunities of each strategic choice.

Learning Objectives

The case is suitable for postgraduate courses on innovation strategy in a module addressing blue ocean strategy, for courses on strategic management in a module addressing growth strategy, and for courses on international business in a module addressing international business strategy (or, in a module addressing strategies for going abroad).

This case gives students the opportunity to apply basic concepts of business environment analysis and consider different strategies for growth. After working through the case and assignment questions, students will be able to do the following:

Understand the trajectory of India’s salon market and identify the drivers and barriers in the market.
Discuss the role of a blue ocean strategy in achieving growth and firm performance.
Analyze the strategic options for a brand to respond to a red ocean.