Harvard Case - Boyd's Barber Shop and Covid-19: To Cut or Not to Cut, that is the Question
"Boyd's Barber Shop and Covid-19: To Cut or Not to Cut, that is the Question" Harvard business case study is written by David A. Soberman, Vivek Nandur. It deals with the challenges in the field of Marketing. The case study is 11 page(s) long and it was first published on : Apr 23, 2023
At Fern Fort University, we recommend Boyd's Barber Shop adopt a multi-pronged strategy to navigate the challenges posed by the COVID-19 pandemic and emerge stronger. This strategy will focus on redefining the customer experience, leveraging technology and digital marketing, and adapting the business model to ensure long-term sustainability.
2. Background
Boyd's Barber Shop, a family-owned business with a loyal customer base, faces a critical decision in the wake of the COVID-19 pandemic. The shop's traditional business model, reliant on close personal interaction, is directly impacted by social distancing measures. The case study highlights the owner's dilemma: whether to continue operating with strict safety protocols or temporarily close the shop. The main protagonists are Boyd, the owner, and his loyal clientele, who are concerned about their health and the future of the business.
3. Analysis of the Case Study
To analyze the situation, we can apply the SWOT framework to understand Boyd's Barber Shop's internal strengths and weaknesses, as well as external opportunities and threats:
Strengths:
- Strong customer loyalty: Boyd's has a loyal customer base who appreciate the personalized service and traditional barbering experience.
- Experienced staff: The staff at Boyd's are skilled and experienced barbers, providing a high level of service.
- Positive brand image: Boyd's has a positive reputation for quality and service, built over years of operation.
Weaknesses:
- Traditional business model: The shop's traditional model relies on close proximity and physical interaction, making it vulnerable to pandemic-related restrictions.
- Limited online presence: Boyd's lacks a strong online presence, limiting its ability to reach new customers and adapt to changing consumer behavior.
- Financial constraints: As a small business, Boyd's may face financial limitations in implementing new strategies.
Opportunities:
- Increased demand for hygiene: Consumers are increasingly prioritizing hygiene and sanitation, creating an opportunity for Boyd's to emphasize its cleanliness protocols.
- Growth of online services: The pandemic has accelerated the adoption of online services, providing an opportunity for Boyd's to explore digital solutions like online booking and virtual consultations.
- Government support: Government programs designed to support small businesses during the pandemic can provide financial assistance to Boyd's.
Threats:
- Economic downturn: The pandemic has caused an economic downturn, potentially impacting customer spending and demand for non-essential services.
- Competition: The pandemic has also driven innovation in the barbering industry, with new competitors offering online services and contactless experiences.
- Changing consumer behavior: The pandemic has changed consumer behavior, with many people becoming more comfortable with online services and virtual interactions.
4. Recommendations
To navigate these challenges, Boyd's Barber Shop should implement the following recommendations:
1. Redefine the Customer Experience:
- Prioritize hygiene and safety: Implement strict sanitation protocols, including mask mandates, regular cleaning, and contactless payment options. Communicate these measures clearly to customers through signage and social media.
- Offer personalized service: While maintaining social distancing, continue to provide the personalized service that has built customer loyalty. This can include offering individual appointments, dedicated time slots for vulnerable customers, and personalized consultations.
- Introduce new services: Explore new services that align with the changing consumer needs, such as online booking, virtual consultations, and home service options.
2. Leverage Technology and Digital Marketing:
- Develop a strong online presence: Create a website and social media profiles to showcase the shop's services, hygiene protocols, and customer testimonials.
- Implement online booking: Offer online booking through a dedicated platform or website to streamline customer experience and reduce contact.
- Utilize digital marketing channels: Leverage targeted advertising on social media platforms and search engines to reach new customers and promote the shop's offerings.
3. Adapt the Business Model:
- Explore alternative revenue streams: Consider offering additional services like hair care products, online consultations, or virtual barbering classes to diversify revenue streams.
- Partner with local businesses: Collaborate with other local businesses to offer bundled services or cross-promotions, expanding the customer base.
- Seek government assistance: Explore available government programs and grants designed to support small businesses during the pandemic.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations focus on leveraging Boyd's existing strengths, such as customer loyalty and skilled staff, while adapting to the changing environment.
- External customers and internal clients: The recommendations prioritize customer safety and satisfaction while ensuring the well-being of the staff.
- Competitors: The recommendations address the competitive landscape by focusing on innovation, digital marketing, and service differentiation.
- Attractiveness: The recommendations are designed to improve the shop's financial viability by increasing customer engagement, expanding revenue streams, and leveraging cost-effective marketing strategies.
Assumptions:
- The pandemic will eventually subside, allowing for a return to more normal operations.
- Customers will continue to prioritize hygiene and safety, even after the pandemic.
- Boyd's has the resources and willingness to invest in technology and digital marketing.
6. Conclusion
By implementing these recommendations, Boyd's Barber Shop can position itself for success in the post-pandemic world. The focus on customer experience, technology, and business model adaptation will allow the shop to maintain its loyal customer base, attract new customers, and thrive in a changing market.
7. Discussion
Alternative Options:
- Temporary closure: While a temporary closure might be a short-term solution to minimize financial losses, it could also lead to customer churn and damage the shop's reputation.
- Status quo: Maintaining the traditional business model without any adaptation could lead to declining customer numbers and financial instability.
Risks:
- Customer resistance: Some customers may be resistant to the new safety measures or online services.
- Technological challenges: Implementing new technology can be challenging and require investment in staff training.
- Competition: The barbering industry is becoming increasingly competitive, and Boyd's needs to stay ahead of the curve.
Key Assumptions:
- The recommendations assume that Boyd's has the resources and willingness to invest in the necessary technology and marketing strategies.
- The recommendations also assume that customers will be receptive to the new services and safety measures.
8. Next Steps
To implement these recommendations, Boyd's should follow a phased approach:
Phase 1 (Immediate):
- Implement strict hygiene and safety protocols.
- Develop a basic online presence with a website and social media profiles.
- Explore online booking options.
Phase 2 (Short-Term):
- Introduce new services like virtual consultations and online product sales.
- Implement targeted digital marketing campaigns.
- Partner with local businesses for cross-promotions.
Phase 3 (Long-Term):
- Develop a comprehensive digital marketing strategy.
- Explore new revenue streams and business model adaptations.
- Continuously monitor customer feedback and adapt strategies accordingly.
By taking these steps, Boyd's Barber Shop can navigate the challenges of the COVID-19 pandemic and emerge as a stronger, more resilient business, ready to thrive in the future.
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Case Description
The case recounts the dilemma faced by Donnie Boyd, the owner of a small barber shop in downtown Toronto in the second quarter of 2020. The COVID-19 pandemic had spread throughout the world but its consequences were only partially known in mid-2020. The first wave of the virus had almost run its course in Canada but people feared (correctly so, as it happens) that subsequent waves would strike, further devastating the economy and specifically small businesses such as Boyd's Barber Shop.
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