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Vol. 17, 2021
A new decade
for social changes
ISSN 2668-7798
www.techniumscience.com
9 772668 779000Technium Social Sciences Journal
Vol. 17, 343-354, March, 2021
ISSN: 2668-7798
www.techniumscience.com
Business Development of Lie Tulip Salon Using a Canvas
Business Model
Monica Sylvia
Faculty of Economics and Business, Widyatama University, Bandung, Indonesia
monica.sylvia@widyatama.ac.id
Yelli Eka Sumadhinata
Faculty of Economics and Business, Widyatama University, Bandung, Indonesia
yelli.sumadhinata@widyatama.ac.id
Abstract. This research focuses on Lie Tulip Salon and Spa which works in the field of beauty
salon services and beauty treatments. This study aims to examine the application of the canvas
business model at Lie Tulip's salons and spas. This research is a qualitative descriptive study that
describes the Canvas Business Model at Lie Tulip's salon and spa using SWOT analysis. The
data collection method was carried out by conducting interviews and taking documentation. The
results of this study prove that the consumer segmentation in this company is female consumers
with an average age of 15-60 years. In addition, the channel operated by this company is to build
good communication with its customers, and to provide the best and professional service. Lie
tulip salon and spa always conducts service standardization training for its employees.
Furthermore, this company can establish good relationships with the suppliers of cosmetic
products. Finally, the cost structure in this company shows that the biggest cost factor in the
company is the salary of the experts.
Keywords. Business model, Canvas, SWOT analysis
1. Intorduction
There is a relationship between the needs of women for beauty salons, seen from the high
activity of women in big cities such as the development of groups of women who work and
based on the outer needs of a woman who always wants to look beautiful and perfect in various
circumstances , is the driving force for the salon business to continue to grow because it has a
growing market. Many beauty salons have and offer various attributes, both satisfying service,
competitive products, a comfortable place, attractive promotions and so on in order to satisfy
consumers and gain consumer loyalty (Minerva, 2019).
Beauty salons and spas are forms of business related to appearance, beauty, care, health,
hygiene, hair, face, skin, body, nail and hand cosmetics for women who really need a perfection
of appearance for beauty, health and self-confidence. Currently the need for beauty care is
growing as a daily necessity, starting from hair care, facial care and body care, so that many
companies offer beauty care services today (Martha, 2015).
The current COVID-19 pandemic has caused Lie Tulip salon and spa consumers to drop
significantly, therefore Lie Tulip salons and spas must follow health protocols, and beauty
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Vol. 17, 343-354, March, 2021
ISSN: 2668-7798
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salons must pay attention to hygiene and sanitation in order to provide good service to
customers. Hygiene is an effort to prevent disease that focuses on individual or human health
efforts and the environment in which the person is located (Minerva, P., Astuti, M., & Asih,
2019).
The development of the Lie Tulip salon and spa business currently leads to services that
must follow the COVID 19 health protocol. In addition, the Lie Tulip salon and spa
segmentation serves all segments from young people to adults, while the concept of a place still
follows the old concept so it is not suitable for segmentation. young people then do not have to
focus on one of these market segments, finally the development of the concept of a place will
be emphasized in the Lie Tulip salon and spa. "An organization must decide which segments
are served and which are ignored" (Osterwalder, A., & Pigneur, 2010).
The problem with the Lie Tulip salon and spa business in Bandung is that the COVID 19
pandemic has resulted in a very significant reduction in customers, so they must run services in
accordance with health protocols. Consumer segmentation is still unclear, so the concept of a
Lie Tulip salon and spa is not quite right. Based on the identification, (1) How to apply health
protocols in Lie tulip salon and spa services? (2) How is the service business development at
Lie Tulip salons and spas with a Business Model Canvas approach covering 9 blocks, namely
Customer Segments, Value Proportions, Channels, Customer Relationships, Revenue Streams,
Key Resources, Key Activities, Key Partnership and Cost Structure?.
2. Literatur Review
2.1. Business Development
According to Carol Noore, quoted by (Bygrave, W. D., & Hofer, 1992), the process of
entrepreneurial development begins with innovation. This innovation begins with various
factors, both internal and external, such as aspects of education, sociology, cultural
organization, and the environment (Bygrave, W. D., & Hofer, 1992). These factors form the
locus of control, creativity, innovation, implementation, and growth so that they can make a
person grow big (Suryana, 2013). Internally, innovation is influenced by factors originating
from individuals, such as locus of control, tolerance, values, education, experience. Meanwhile,
factors originating from the environment that influence include role models, activities and
opportunities. Therefore, entrepreneurship develops, advances, and grows through processes
that are influenced by the environment, organizations and families (Suryana, 2013).
2.2. Health Protocol for COVID-19
Along with the high number of positive cases of COVID-19, the government has carried
out many activities in the form of socialization, assistance, and other activities aimed at
preventing the transmission of COVID-19. The research results of Zahrotunnimah (2020) show
that there have been many efforts by local governments to carry out communication strategies
for their respective communities through coercive, informative, canalizing, educational,
persuasive and redundancy techniques in packaging messages in the form of instructions,
appealing to the public to prevent transmission of COVID -19. However, it is undeniable that
this effort certainly requires support from various parties so that the results can be maximized,
especially in efforts to reduce the number of COVID-19 transmission.
To deal with the spread of COVID-19, it is necessary to make preventive efforts in the
community. Sari (2020) research results state that there is a relationship between public
knowledge and. compliance with the use of masks as an effort to prevent COVID-19. In line
with the results of this study, there is a need for educational efforts for the public regarding the
prevention of COVID-19, including through the habit of wearing masks. One of the preventive
344Technium Social Sciences Journal
Vol. 17, 343-354, March, 2021
ISSN: 2668-7798
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ways is to carry out health promotion activities through socialization, education, and the use of
various information media to provide an understanding of the dangers and transmission of
COVID-19 (Kementrian Kesehatan, 2020).
2.3. Previous Research
In the research of Nova (2019) entitled Business Development Strategies in the Fashion
Sector Using the Canvas Method on Dandelion Bags in Pasar Baru Bandung, resulted in: nine
components of the Dandelion Bag business model, namely, the customer segments to be served
are young people with the majority of men with an average age of 15-40 years.
In Yunitasari's research, Christanti (2018) entitled Business Models as Competitive
Strategies for Beginner Business Actors, resulting in: business models for hijab product case
studies have an important role in compiling business planning.
In the research of Pratama (2017) entitled Designing a Business Model Using the Business
Canvas Model Approach as a Form of Business Development Strategy for Quail Cultivation at
Ikhlas Quail Farm (IQF) , resulting in: the existence of nine components of the IQF SME
business model. The nine components of the business model are the first target market for IQF
SMEs. Second, the value proposition offered. Third, the channels used. Fourth, customer
relations. Fifth, income stream. Sixth, must-have resources. Seventh, the main activities that
must be carried out. Eighth, a must-have partner. Ninth, the cost structure that must be issued.
In the research of Erlyana & Hartono (2017) entitled Business Model in Marketplace
Industry Using Business Model Canvas Approach: An E-Commerce Case Study, it resulted in:
that the business model conducted by XYZ Online Shop excels in customer relationship block
and still needs to improve key partner and key activities blocks. Business Model Canvas along
with SWOT analysis describes how XYZ Online Shop creates, delivers, and captures value
based on its internal and external environments.
In the research of (García-Muiña, F. E., Medina-Salgado, M. S., Ferrari, A. M., & Cucchi,
2020) entitled Sustainability Transition in Industry 4.0 and Smart Manufacturing with the
Triple-Layered Business Model Canvas, resulted in: the new company's sustainable value
proposition , considering all three pillars of sustainability: environment, economy, and society.
Despite the limitations resulting from the individual case study, the findings can be easily
adapted to other ceramic tile companies in the sector. In addition, the paper could inspire other
manufacturing companies in the drafting of a sustainable business model. The paper explores
the still limited literature on the application of sustainable business models in operational
scenarios.
In Sonninen (2016) study entitled Strategic Management: Business Model Canvas for
Start-Up Company (Thesis), it resulted in: as a good development push would be proper
attitude, clear planning and good promotion, as Kakunpala has definitely reached its goal and
got answers, explanations, open strategy factors and approximate plan of development. The
thesis reached its goals due to fact that development activities are possible to incarnate with
future benefits for the company.
2.4. SWOT Analysis
SWOT analysis includes efforts to identify strengths, weaknesses, opportunities and threats
that determine company performance. External information about opportunities and threats can
be obtained from many sources, including customers, government documents, suppliers,
banking circles, partners in other companies. Many companies use the services of scanning
agencies to obtain newspaper clippings, research on the internet, and analysis of relevant
domestic and global trends (Daft, 2010).
345Technium Social Sciences Journal
Vol. 17, 343-354, March, 2021
ISSN: 2668-7798
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Figure 1. Model: SWOT
Source: Fredi Rangkuti (2004: 18)
2.5. Business Model Canvas
Business Model Canvas is one way to find out 9 important elements in the company which
will be used as a benchmark for business development. According to (Pratami, N. W. C. A., &
ADH, 2016), this Canvas Model Description is divided into 9 elements, namely:
Figure 2. Model: Business Model Canvas
Source: https://www.strategyzer.com
a. Customer segments (groups of people / organizations served by companies).
b. Value propositions (the proportion of value / benefits the company wants to provide to
its customers).
c. Channels (the way the company reaches its consumers).
d. Customer relationships (how a relationship is established whether it is long term or not).
e. Revenue streams (the company's potential or other revenue sources).
f. Key resources (resources owned by the company to run the IMB can be controlled or
not adequate).
g. Key activities (various company activities).
h. Key partnership (partner).
i. Cost structure (company cost).
3. Research Methodology
Descriptive Research is research that aims to describe or describe completely and clearly
the characteristics of the problem or phenomenon at hand (Sugiama, 2008). Exploratory
research is research that can guide researchers to reveal clearly and with certainty the problems
faced from problems whose origins are vague or even very unclear. Exploratory research really
346Technium Social Sciences Journal
Vol. 17, 343-354, March, 2021
ISSN: 2668-7798
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helps clarify the problem at hand and define the problem, so that the direction of the solution is
more certain (Sugiama, 2008).
Descriptive qualitative research as expressed by Creswell (2013), is methods to explore
and understand meanings ascribed to social or humanitarian problems. Research with a
qualitative approach is more sensitive and adapts to joint management of the value patterns
faced. While the research method used in this research is descriptive method. According to
Moleong (2013) the descriptive method is a method of examining the status of a group of
people, an object, a condition, a system of thought, or a class of events in the present. The
purpose of this descriptive research is to describe, translate and interpret the findings of data in
the field, in the form of photo documentation, archival documents, dialogues and events during
the research.
Data collection techniques are the methods used by researchers to obtain data in the field.
Data collection techniques are recording events, matters, and all elements of the population that
will support or support the researcher Hasan (2002). In qualitative research, data collection is
carried out in natural settings (natural conditions), primary data sources, and the techniques are
mostly involved, in-depth interviews and documentation (Sugiyono, 2017). Researchers collect
data directly and systematically in the field. Researchers take notes, record data or diaologues,
and take pictures of behavior, attitudes, growth, development and implementation of character
education applied in the research location.
4. Percentage of Data
The data obtained is data on the number of Lie Tulip salon and spa customers in 2019-
2020 which were obtained from the owner's records, then presented on the tube graph as
follows:
Figure 3. Customer Data for Lie Tulip salons and spas 2019-2020
Source: Direct data collection at Lie Tulip salons and spas 2020-2019
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Vol. 17, 343-354, March, 2021
ISSN: 2668-7798
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There was a decrease in the number of Lie Tulip salon and spa customers in May 2019 due
to this month being the month of Ramadan so that customers decreased somewhat. Then from
January 2019 to February 2020 the total number of customers showed a uniform fluctuation,
but from March to May there were absolutely no customers due to the COVID 19 pandemic
and the PSBB.
In June 2020, there was a New Normal implementation by the government so that
customers could return to visit Lie Tulip salons and spas, but the trend is decreasing from June
to December. Health protocols at Lie Tulip salons and spas have been implemented but still
look less than optimal, therefore Lie Tulip salons and spas must follow health protocols as a
whole and beauty salons must pay attention to hygiene and sanitation in order to provide good
service to customers. Hygiene is an effort to prevent disease that focuses on individual or human
health efforts and the environment in which the person is located (Minerva, P., Astuti, M., &
Asih, 2019).
To deal with the spread of COVID-19, it is necessary to make preventive efforts in the
community. Sari & Sholihah‘Atiqoh (2020) research results state that there is a relationship
between public knowledge and. compliance with the use of masks as an effort to prevent
COVID-19. Lie Tulip salons and spas must also educate their employees and customers to
continue to follow health protocols and conceptualize Lie Tulip salons and spas to comply with
health protocols
According to Carol Noore, quoted by Suryana (2013), the process of entrepreneurial
development begins with innovation. . This innovation begins with various factors, both internal
and external, such as aspects of education, sociology, cultural organization, and the environment
(Suryana, 2013). In addition to adaptations and developments that adapt to health protocols, Lie
Tulip salons and spas must also have new innovations to bring back customers, one of which is
developing the concept of a place and focusing on marketing segmentation.
5. Discussion
Based on the analysis of external and internal environment, it can be obtained opportunities
and threats in the salon Lie Tulip as follows:
Table 1.
External Factors Lie Tulip Salon and Spa
External factors Opportunities Threats
Macro Bandung economic ● trend weak purchasing
Environment growth conditions power due to covid
are improving ● Fluctuating Inflation Rate
● Consumers' fear of leaving
the house due to the
pandemic
Increasing middle
and upper income
groups Kota
Bandung
Trend of hairstyles
and spas growing
continuously
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Vol. 17, 343-354, March, 2021
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Micro The bargaining Barriers. New competitors in
Environment power of suppliers similar companies are
to companies is relatively high.
relatively small
Bargaining power of
buyers is relatively
low.
Table 2.
Internal factors Lie Tulip Salon and Spa
Internal factors Strengths WeaknessesThe
Management main expertise and Lack of professional
experience of the owner in resources (hairstylist)
beauty service activities
Marketing • Various beauty service
programs offered.
• Good service in providing
beauty services based on the
characteristics of individual
interests.
Finance The cash payment system Capital limitations in
for consumers is carried out business development are
in the service of service related to improvements to
products so as to support the business premises, facilities
smooth running of the and infrastructure.
business.
Production and The application of clear Inadequate service room.
Operations operational procedures in the
implementation of
production and operation
processes.
Table 3
SWOT Matrix for Lie Tulip Salon and Spa
Strength (Strength) The Weakness (Weakness)
a. owner of the company has a. UMR is quite high in
the main expertise and the city of Bandung.
experience of the owner b. Stylish and therapeutic
in the activities of salaries are quite high.
providing beauty services. c. Facilities that must
SWOT
b. Supported by professional always be improved
experts who are according to the latest
experienced in their trends.
fields.
c. Has complete company
license.
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d. Has a complete range of
services according to
customer needs.
Opportunities SO Strategy WO Strategy
(Opportunities) a. Improve quality and a. Increase human
a. Many consumers who services. resources.
already believe in the b. Expanding market share. b. Provide facilities in
salon services and skin accordance with the
and hair care at Lie Tulip, estimated number of
because it was established consumers.
thirty-two years ago, so
many loyal customers will
always come back.
b. Prices are higher than
other competitors due to
customer fanaticism over
the results of the neat
service in make up, bun
and other services.
c. A large number of
residents and offices have
sprung up so that the
opportunities are
increasing.
Treath (Threat) The ST Strategy WT Strategy.
a. price of foreign branded a. Set prices according to a. Conduct training with
cosmetics is getting more expert products and existing human
expensive. services. resources.
b. The large number of b. Make a variety of service b. Increase promotion of
competitors with lower menus at various prices. services.
prices. c. Accentuate the
c. Trends in people's tastes uniqueness in order to
are fast changing. be different from
competitors.
The concept of the Business Model Canvas is used to describe, visualize, assess and change
the business model into the same language through the tools in the form of a sheet of canvas
which is divided into nine building blocks of business models, namely:
Table 4
Business Canvas Model Lie Tulip Salon and Spa
Key Partners Key Activities Value Customer Customer
● Supplier of ● Human Proporstiton Relationships Segments
cosmetic resource Comfortable ● Communicating the for
products processing ● service. results of services to ● Women.
● Marketing ● Served by social media such as ● Age 15-
● Operational experts. websites as well as 60 years.
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marking consumers
on Instagram.
Key Resources Channels
● Human ● Perform good
resources communication with
● Supply of customers.
products
Cost Structure Revenue Streams
● Operational costs. ● Direct sales in stores.
● Fixed costs and variable costs.
a. Customer Segment
Lie Tulip salons and spas are women with an average age of 15-60 years. On average, they
need beauty salon and beauty care services, this segment will provide a great and
continuous opportunity to fulfill their salon and spa needs.
b. Value Propositions
Providing beauty services such as, Haircut, Wash Blow, Wash Straightener, Blow
Variation, Smoothing, Coloring, Creambath, Hair Spa, Hair Mask, Hair Connect, Hair do,
Curly, Hair Set, Bun, Beautiful Veil, Make-up Party, Graduation Make-up, Bridal Make-
up, Facial & Body Spa, Body Scrub, Massage, Facial, Lulur, Sauna, Menicure and
Predicure and other beauty packages intended for female customers in Bandung. This
complete service is the value propositions of Lie Tulip salon and spa.
c. Channels
Lie Tulip salons and spas are required to be able to sell beauty service products and provide
satisfaction to consumers, one of which is to establish good communication and always
remember treatment schedules, and to provide services after services are provided in order
to evaluate the results, whether it is in accordance with customer desires, this is a maximum
service to get customer satisfaction.
d. Customer Relationships
Lie Tulip salon and spa maintains good communication with customers. Lie Tulip salons
and spas always try to keep customers loyal by communicating the results of services to
social media such as websites and marking consumers on Instagram, which makes
customers feel more cared for.
e. Revenue Streams
Lie Tulip salons and spas make sales of service products the main source of income. This
source of income is used for operational costs, promotions, business development as well
as investment.
f. Key Resources
Lie Tulip salon and spa packs their services very nicely, with educated and trained staff
according to professional salon and spa service standards, also with friendly and friendly
service standards.
In the use of cosmetic products, Lie Tulip salons and spas only use products with well-
known brands and can be accounted for for the sake of safety and customer satisfaction.
g. Key Activities
Lie Tulip salon and spa regularly conducts service standardization training for employees
to further improve their skills in services according to their midwives.
h. Key Partnership
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Lie Tulip salon and spa maintains good relationships with suppliers of cosmetic products
needed, such as Mrs. Ambar as a product seller and Dr. Ester As a beauty consultant.
i. Cost Structure
The biggest cost is human resources which is the most important factor because this service
business relies on the expertise possessed by its employees, thus the biggest cost factor in
this case is the salaries of experts, therefore Lie Tulip salons and spas apply a billing and
commission system. to be more efficient, so that each employee will get a different income
according to their productivity and abilities, therefore the company can save more expenses
more effectively and efficiently.
6. Conclusion
From the results of research and discussion of the feasibility analysis for the development
of Lie Tulip salons and spas in the city of Bandung, it can be concluded as follows:
a. Judging from the aspect of the business environment, Lie Tulip salons and spas are legal,
marketing aspects, Lie Tulip salons and spas have the potential of educated staff and well
trained. For the human resource aspect, Lie Tulip salon and spa provide appropriate
training in accordance with their skills and fields so that they can improve their respective
competencies, and finally from the financial aspect, Lie Tulip salon and spa get income
and benefits so that Lie Tulip salon and spas qualify as a profitable and viable business
to run.
b. Based on the entrepreneurial aspect, Lie Tulip salons and spas have the potential and are
feasible to run by looking at the large market potential in the city of Bandung. This can
make Lie Tulip continue to grow and develop. Lie Tulip salons and spas have a good
chance where the net profit is still high. And in the managerial aspect, Lie Tulip salons
and spas have high potential with a team of employees who are ready to compete and
have the experience and integrity of the company.
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