1.

Pricing Strategies (Cost-Plus, Premium, Market Skimming, Bundling)

a) Trimayr Context:
Trimayr operates in both midmarket (Trimayr Pop) and upmarket (Trimayr
Sheen) segments. It uses various pricing strategies:
• Premium pricing: Especially for upmarket salons o ering exclusive styles,
skilled sta , and stylish premises.
• Market skimming: Launching new styles or treatments at higher prices
before wider adoption.
• Cost-plus pricing: Common in bundled services (e.g., wash, cut, blow-dry).
• Bundling: Encourages higher spend per visit and adds perceived value.
b) Relevant IFRS/IAS Connections:
• IFRS 15 – Revenue from Contracts with Customers:
◦ Bundling implications: IFRS 15 requires identifying performance

obligations in bundled o erings. For example, Trimayr’s bundled haircut

and treatment packages must be accounted for separately if they are
distinct services.
◦ Standalone Selling Price (SSP): Trimayr must allocate total bundle revenue

based on SSP of each service under IFRS 15.

• IAS 2 – Inventories:
◦ Cost-based pricing (like cost-plus) involves accurate inventory costing for

retail products sold in salons (e.g., shampoo, conditioner). Under IAS 2,

the cost of these products must be correctly measured (FIFO/weighted
average) to establish markup.
• IAS 38 – Intangible Assets:
◦ Brand equity used in premium pricing is rooted in the value of Trimayr’s

brand (e.g., Sheen). Though not always on the balance sheet unless
acquired, it in uences pricing and valuation.

2. Customer Pro tability Analysis (CPA)

a) Trimayr Context:
CPA is used to assess which customer segments generate the most value
(e.g., those booking high-margin treatments like colouring or chemical
treatments). It supports:
• Targeted promotions
• Loyalty programs
• Strategic focus on customer lifetime value (CLV)
b) Relevant IFRS/IAS Connections:
• IFRS 8 – Operating Segments:
◦ CPA data could inform how customer groups (e.g., upmarket vs

midmarket) are reported if segment information is disclosed. IFRS 8

encourages disclosure by pro tability, aligning with CPA’s internal
management use.
• IFRS 15 – Revenue Recognition:
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 ◦ If customers prepay for packages, revenue must be deferred and
recognized over time as services are delivered. This aligns with CPA in
tracking pro tability by visit or by treatment type.
• IAS 1 – Presentation of Financial Statements:
◦ Insights from CPA may in uence management commentary in nancial

reporting or segment disclosures. Trimayr’s reliance on repeat business

could be explained via CPA in narrative sections.

Summary Table
Topic IFRS/IAS Standard Relevance to Trimayr
Bundled Pricing IFRS 15 Identify & allocate revenue
across services in bundles
Cost-Plus Pricing IAS 2 Accurate cost calculation of
retail products
Premium/Brand Pricing IAS 38 Branding and IP in uence
perceived value/pricing
CPA & CLV Focus IFRS 15 / IFRS 8 Track pro tability of
customers/segments and
recognize deferred revenue
Prepaid Packages IFRS 15 Revenue must be recognized
over service delivery
Management Commentary IAS 1 CPA insights may appear in
disclosures or strategic
reporting

3. Target Costing & Value Analysis (P2 Syllabus)

🔷 Trimayr Context: Trimayr operates both Trimayr Pop (midmarket) and
Trimayr Sheen (upmarket) brands. Each brand targets di erent customer
segments with distinct pricing and service expectations.
• Target Costing is particularly important for Trimayr Pop, where it must
deliver competitive pricing while maintaining pro tability in the midmarket
segment.
• For Trimayr Sheen, although it can apply premium pricing, value analysis
becomes crucial to ensure customers perceive su cient value in exchange
for higher costs.
📌 Application:
• In new salon setups, the design and décor must comply with Trimayr’s
style guide. This implies high upfront capital requirements for t-outs.
Trimayr needs to perform target costing to ensure franchisees can recoup
investment within a sustainable payback period.
• For salon services, high-margin treatments like coloring or chemical
services (e.g., relaxing or perming) require value analysis to justify pricing
and match perceived customer bene ts (emotional, functional, and
experiential).
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 📚 IFRS/IAS Tie-in:
• IAS 2 – Inventories: For products sold in salons (e.g., shampoos,
conditioners), inventory valuation must re ect costs constrained by target
pricing strategies.
• IAS 38 – Intangible Assets: The Trimayr brand is a key asset. When
applying target costing, part of the cost justi cation includes brand value,
which must be accounted for when evaluating price points.
• IFRS 15 – Revenue from Contracts with Customers: The structuring of
bundled services and product packages must comply with revenue
recognition standards (identifying performance obligations, allocating
transaction price, etc.).

4. Benchmarking (Against Competitors and Within Salon Networks)

🔷 Trimayr Context: Trimayr competes with:
• Omega & Troon (upmarket, celebrity clientele)
• Martha & Mike (midmarket)
• Fox & Ti n, Norman & May, and Pallo & Troo (all midmarket franchised
models)
Internal benchmarking is also critical, as Trimayr manages:
• 40 company-owned Trimayr Pop salons
• 380 franchised Trimayr Pop salons
• 140 franchised Trimayr Sheen salons
📌 Application:
• Benchmarking allows performance comparisons across franchisees (e.g.,
revenue per square metre, sta turnover, customer retention).
• The POS system and Business Intelligence System (BIS) provide the
necessary KPI data for monthly reviews, highlighting top vs.
underperforming salons.
• External benchmarking helps assess Trimayr Pop’s competitiveness in
pricing, service quality, customer demographics, and décor/ambience
against rival midmarket brands like Martha & Mike or Norman & May.
📚 IFRS/IAS Tie-in:
• IFRS 8 – Operating Segments: Though not explicitly mentioned in the pre-
seen, if Trimayr segments nancial reporting by brand or location, internal
and external benchmarking aligns with operating segment disclosure for
decision-making.
• IAS 36 – Impairment of Assets: Underperforming salons identi ed through
benchmarking may require impairment testing—particularly company-
owned sites. Persistent poor KPIs (e.g., low average spend, high sta
turnover) could indicate impairment triggers.
• IFRS 15 again applies: franchise royalty income is based on salon
revenues, so benchmarking supports revenue forecasting and risk
management of receivables.
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 5. BALANCED SCORECARD at Trimayr
The Balanced Scorecard (BSC) is a performance management tool that
tracks both nancial and non- nancial KPIs. Trimayr, operating a franchise
model, uses this framework to manage its operations across franchisees and
company-owned salons.
✅ A. Four Perspectives Applied to Trimayr:
Perspective Trimayr Application Relevant IFRS/IAS
Financial - Royalty income from IFRS 15 – Revenue
franchisees. recognition from royalties.
- Revenue per square metre IFRS 9 – Expected Credit
tracked daily. Losses on royalty receivables.
- Investment centre IAS 36 – Impairment testing
performance for company- for underperforming salons.
owned salons (ROCE tracked).
Customer - Customer retention rates. IFRS 8 – Segment reporting
- Satisfaction via waiting times may group customer
& repeat visits. performance by region or
- Premium brand experience brand (e.g., Sheen vs Pop).
at Sheen salons.
Internal Processes - Average waiting & service IFRS 16 – Leased premises
time. impact internal processes
- Sta turnover rates. (costs, layout compliance).
- Daily POS data uploads for IFRS 15 – Service-level
real-time KPIs. agreements for franchise
- Franchise inspections & support.
training adherence.
Learning & Growth - Sta training & IAS 38 – Intangible assets
apprenticeships. (brand, training content, digital
- Investment in in-house Hair systems).
Technology for innovation. IFRS 3 – Goodwill arising from
- Franchisee onboarding strategic investment in
programs. knowledge capital.

💡 Trimayr’s use of a Business Intelligence System (BIS) also enhances all

perspectives of the Balanced Scorecard by leveraging big data.

6. RESPONSIBILITY CENTRES at Trimayr

Responsibility centres are parts of an organization with managers
accountable for performance. Trimayr has structured its operations into
several types of responsibility centres:
✅ A. Types Used at Trimayr:
Responsibility Centre Example at Trimayr Relevant Notes / IFRS Links
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 Cost Centre - Franchise training centres. Costs are monitored, not
- Hair Technology R&D team. revenue generated directly.
Training expenses might be
capitalized under IAS 38 if
they meet recognition criteria.
Revenue Centre - Marketing function at head Royalty revenues tracked
o ce generating franchise under IFRS 15.
leads.
- POS-based revenue tracking
at salon level.
Pro t Centre - Each franchised salon: Performance benchmarking
manages revenues & costs used; pro tability metrics
independently. inform franchise renewal
- Performance monitored via decisions.
KPIs like avg. spend,
retention, etc.
Investment Centre - The 40 company-owned ROCE is a key performance
Trimayr Pop salons: Trimayr metric.
directly manages capital, IFRS 16 (leases), IFRS 15
costs, and pro ts. (service revenue), and capital
employed all directly impact
performance reporting.

✅ Governance & Risk Notes:

• Agency Risk (IFRS): Franchisees not actively involved in daily ops may rely
on salon managers—creating agency relationships (related to governance
risk under IAS 24).
• Contingent Liabilities (IAS 37): Poorly managed responsibility centres may
lead to customer complaints or legal claims, requiring provision recognition.

✅ Summary
• Balanced Scorecard at Trimayr is clearly aligned with the strategic control
of its decentralized, franchised structure.
• Responsibility Centres help de ne accountabilities across di erent
operational units (salons, training, HQ).
• IFRS standards like IFRS 15, IFRS 16, IFRS 9, and IAS 38 play key roles in
reporting and managing nancial impacts from these structures.

7. Divisionalisation and Decentralization

Trimayr's operational structure clearly demonstrates both divisionalisation
and decentralization, especially through its franchise model. The franchised
salons operate as pro t centres, where individual Salon Principals are
accountable for the revenues and costs of their salons. They have autonomy
in areas such as sta ng, pricing, and location choice (subject to Trimayr's
approval), allowing decentralized decision-making tailored to local market
conditions. At the same time, Trimayr retains centralized control over brand
standards, training, marketing, and systems via its head o ce, showing a
networked divisional structure. The 40 company-owned salons di er
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 slightly—they can be classi ed as investment centres, since Trimayr
directly monitors their Return on Capital Employed (ROCE), which is a key
performance metric in evaluating capital investment e ciency. Under IFRS 8
(Operating Segments), Trimayr may need to report performance by
segment (e.g., Trimayr Pop vs. Trimayr Sheen), depending on internal
reporting and stakeholder requirements, ensuring transparency in how each
division contributes to overall group performance.

8. Activity-Based Costing and Management (ABC/ABM)

In Trimayr's operational environment, Activity-Based Costing (ABC) is
particularly relevant in understanding the true cost of supporting salon
activities, especially within the franchising function. For instance, tasks such
as training franchisees, conducting salon inspections, and providing
marketing and administrative support incur overheads that are not evenly
consumed across all salons. ABC allows Trimayr to allocate these overhead
costs more accurately based on activity drivers (e.g., number of training
sessions, inspection visits, or support hours). This enhances Activity-Based
Management (ABM) by enabling informed decisions on resource
allocation, cost control, and pricing of franchise fees. Moreover, ABC can
be used internally to assess the cost of support functions (e.g., HR, legal,
IT) provided to the company-owned salons versus franchised outlets. While
there is no direct IFRS standard governing ABC, under IAS 1 (Presentation
of Financial Statements), management must ensure relevant, reliable, and
faithfully represented information is used for internal decision-making and
external reporting. Applying ABC principles helps Trimayr optimize support
functions, measure cost-e ectiveness, and improve pro tability across
di erent salon types.

9. In the context of Trimayr’s shift from owning salons to primarily franchising

them, capital investment appraisal methods play a crucial role in evaluating
strategic decisions. Net Present Value (NPV) is particularly suited to
assessing whether to retain or divest company-owned salons, or to invest in
new digital systems and training facilities. It takes into account the time value
of money and aligns with shareholder value—critical for Trimayr as a listed
entity. For example, when considering whether to invest in redesigning a
Trimayr Sheen salon or converting it into a franchise, NPV allows Trimayr to
evaluate long-term cash ows against upfront costs, factoring in lease
obligations under IFRS 16 and impairment testing under IAS 36. The key
advantage of NPV is its nancial rigor, but it can be limited by its
dependence on an accurate discount rate and the challenge of quantifying
intangible bene ts like brand reputation.
Internal Rate of Return (IRR) complements NPV by o ering a rate-based
benchmark for decision-making. It is useful when comparing investment
options, such as expanding owned salons versus increasing investment in
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 digital marketing platforms. Its ease of communication makes it attractive to
senior stakeholders. However, IRR may give misleading results if cash ows
are irregular—as might be the case with seasonal salon revenue—and it
assumes reinvestment at the same return rate, which is not always realistic.
These limitations are particularly relevant for Trimayr when evaluating
projects with uctuating performance or uncertain consumer behavior in
di erent regions.
For Sale vs. Closure decisions, the appraisal becomes more operational.
Trimayr has historically disposed of many owned salons by transferring them
to franchisees, a decision that must be informed by weighing the net
proceeds from sale against the ongoing value from operations. Under IFRS
5, salons earmarked for sale must be evaluated as discontinued operations,
while IAS 36 guides the impairment reviews required before closure. Selling
underperforming salons supports Trimayr’s asset-light model and improves
return on capital employed (ROCE), but closures may trigger costs under IAS
37 (e.g., employee redundancies, lease terminations). This method o ers the
bene t of capital release and operational focus but may come with
reputational and nancial risks.

1. Net Present Value (NPV)

• De nition:
NPV is the present value of cash in ows minus the present value of cash
out ows over time, discounted at the cost of capital.
• Application to Trimayr:
• NPV is highly relevant for decisions like:
• Evaluating whether to invest in opening new company-owned salons,
especially under the Trimayr Pop or Sheen brand.
• Assessing the value of converting owned salons to franchises (i.e., Sale
vs Closure).
• Investing in technology upgrades, training centers, or marketing
campaigns.
• Relevant IFRS Standards:
• IAS 36 – Impairment of Assets: NPV plays a role in estimating value in use
when assessing impairments.
• IFRS 16 – Leases: NPV is needed to calculate the present value of lease
liabilities.
• IFRS 13 – Fair Value Measurement: Useful if evaluating the fair value of
assets in divestment scenarios.
• Advantages:
• Considers the time value of money—essential for long-term salon leases
and franchise revenues.
• Aligns with shareholder value creation—Trimayr is a listed company, so
this is crucial.
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 • Helps compare multiple projects (e.g., opening a new salon vs
redesigning existing ones).
• Disadvantages:
• Sensitive to the discount rate—a wrong cost of capital (e.g.,
overestimating ROCE from franchise fees) can mislead.
• Doesn’t consider the scale of investment—a higher NPV doesn’t always
mean better.
• Can be complex to apply for indirect bene ts (e.g., brand reputation from
Hair Technology initiatives).
•
• 2. Internal Rate of Return (IRR)
• De nition:
IRR is the discount rate that makes the NPV of an investment zero.
• Application to Trimayr:
• Determining the return rate for investing in owned salons (especially high-
end Trimayr Sheen salons).
• Comparing ROI on marketing campaigns or digital platforms vs physical
expansions.
• Relevant IFRS Standards:
• IAS 38 – Intangible Assets: IRR may help assess investments in branding
and software.
• IAS 36 – Impairment: IRR can be used in discount rate estimation for
cash-generating units.
• Advantages:
• Easy to communicate and compare to hurdle rates or WACC.
• O ers a rate of return perspective useful for Trimayr’s investment centre
assessments (P2 perspective).
• Assists in evaluating training ROI or Hair Technology innovation returns.
• Disadvantages:
• Can give multiple IRRs for non-standard cash ows (e.g., temporary
closures and reopenings).
• Doesn’t measure absolute value—a project might have high IRR but low
overall bene t.
• Assumes cash ows are reinvested at IRR—which may not be realistic for
franchised salons.
•
• 3. Sale vs Closure Decisions
• De nition:
Evaluating whether to sell (e.g., convert an owned salon to a franchise) or
shut down underperforming operations.
• Application to Trimayr:
• Highly relevant: Trimayr converted many owned salons into franchises
as part of its strategic shift.
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• Used to evaluate underperforming company-owned salons or low-
performing franchise renewal decisions.
• Relevant IFRS Standards:
• IFRS 5 – Non-Current Assets Held for Sale and Discontinued
Operations: Required if planning to dispose of a salon.
• IAS 36 – Impairment of Assets: To assess recoverable amounts from sale
vs closure.
• IFRS 15 – Revenue from Contracts with Customers: For assessing the
impact of discontinuing a revenue stream (e.g., salon services).
• Advantages:
• Allows focus on capital-light growth—Trimayr favors the franchising
model over ownership.
• Can release capital and improve ROCE—key for a listed company.
• May preserve brand equity if closure avoids prolonged underperformance.
• Disadvantages:
• Sale might be at a loss—especially if impairment is needed (IAS 36).
• Closure leads to redundancy costs, lease obligations (IFRS 16), and
possible provisions (IAS 37).
• Potential reputation risk—customers may react negatively to closures or
frequent changes in ownership.

10.
🔹 . Total Quality Management (TQM) & Quality Chains
TQM and quality chains refer to a holistic approach to maintaining service
quality at every stage—from sta training to customer experience.
✅ Meaning in the context of Trimayr:
Trimayr’s operations (especially in its upmarket Trimayr Sheen brand) depend
heavily on consistently high-quality customer service. TQM at Trimayr
means:
• Recruiting quali ed hairdressers.
• Delivering ongoing training through in-house colleges.
• Standardizing service procedures.
• Monitoring customer satisfaction KPIs via their POS and BIS systems.
“Quality chains” mean each sta member (e.g. apprentice, stylist, salon
manager) is a link. If one fails—e.g. untrained sta applying chemical
treatments—the whole chain breaks, harming brand perception.

📈 Advantages of TQM for Trimayr:

• ✅ Enhances brand consistency across 560+ franchised salons.
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 • ✅ Reduces complaints and rework costs, preserving customer loyalty
and increasing CLTV (Customer Lifetime Value).
• ✅ Supports franchisee compliance with service standards, protecting
Trimayr’s brand as an intangible assetunder IAS 38.
• ✅ Data from BIS supports continuous improvement, aligned with Kaizen
principles (P2 syllabus).

❌ Disadvantages:
• ❌ High initial cost in sta training and salon inspection systems.
• ❌ Resistance from franchisees who may view it as micro-management.
• ❌ Risk of standardization sti ing local creativity or exibility in customer
service.

📘 Relevant IFRS/IAS Links:

• IAS 38 – Intangible Assets: Quality contributes to brand value, which
Trimayr licenses to franchisees. Preserving quality protects the asset.
• IAS 37 – Provisions: Poor quality (e.g., injury from chemical misuse) may
require legal claims provisions.
• IFRS 15 – Revenue Recognition: Ongoing training and quality control
are performance obligations under franchise agreements, impacting
revenue timing.

🔹 Human Resource KPIs (e.g., Sta Turnover, Performance

Appraisals)
✅ Meaning in Trimayr's context:
Trimayr monitors KPIs like:
• Sta turnover
• Customer retention
• Average service time per visit
These help assess:
• Sta satisfaction
• Training e ectiveness
• Customer experience
Salon performance is tied directly to these KPIs and is reviewed monthly,
forming a key part of Franchise Management’s oversight.

📈 Advantages:
• ✅ Identi es high-performing and underperforming salons or sta .
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• ✅ Low sta turnover improves customer retention and average spend
per visit—vital since Trimayr earns royalties on service revenue.
• ✅ KPIs can support incentive systems, improving sta motivation and
productivity (Balanced Scorecard – Learning & Growth + Internal Process
perspectives).

❌ Disadvantages:
• ❌ Over-reliance on metrics may lead to short-termism (e.g., pushing
quick services at the cost of quality).
• ❌ Franchisees may manipulate data if they feel threatened by
performance-based contract renewal.
• ❌ Requires robust data systems and auditing, increasing operational
costs.

📘 Relevant IFRS/IAS Links:

• IFRS 9 – Financial Instruments: Sta performance indirectly impacts
expected credit losses (e.g., poor-performing franchisees may default on
royalties).
• IAS 19 – Employee Bene ts: Performance appraisals may a ect bonus
accruals or provision for long-term bene ts.
• IFRS 15 – Franchise Revenue: KPIs in uence royalty calculations and thus
revenue recognition from franchisees.

11.
In the context of Trimayr, human resource key performance indicators (KPIs)
such as sta turnover and performance appraisals are vital to maintaining
the high service standards expected in its franchise and company-owned
salons. Sta turnover directly a ects customer satisfaction and loyalty, both
of which are critical in a service-based industry like hairdressing where
customers often prefer to be served by familiar stylists. Trimayr tracks sta
turnover rates through its point-of-sale (POS) system, using this data as part
of its performance appraisal process. Performance appraisals are essential
for recognizing salon employees who retain loyal clients, and such
evaluations may inform incentives or rewards. Trimayr’s approach aligns with
the Balanced Scorecard framework, particularly under the learning and
growth and customer perspectives, helping ensure that employee
development translates into improved client satisfaction and business
outcomes.

Supply chain management at Trimayr is structured and centralized to

support consistency in service and product quality across all its franchise
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locations. Franchisees are required to source hair products, salon
equipment, and furnishings from Trimayr’s approved suppliers, ensuring
brand alignment and uniform customer experience. This tight supply chain
control not only preserves brand reputation but also leverages economies of
scale in procurement. Furthermore, product inventory—especially for retail
items like shampoos and conditioners—is managed to avoid overstocking or
stockouts, which ties into working capital management and pro tability.
Trimayr also uses supply chain controls to manage professional-grade
products exclusive to salons, reinforcing its di erentiation strategy.
Regarding risk management, Trimayr applies principles from both the TARA
Framework (Transfer, Avoid, Reduce, Accept) and the CIMA Risk
Management Cycle. Through the TARA model, for example, the risk of
chemical misuse by underquali ed sta is mitigated through mandatory
training and operational inspections—clearly a form of risk reduction. Health
and safety risks, such as the improper combination of hair treatments, are
avoided through strict procedures and quality training. From a broader
perspective, the CIMA Risk Cycle is evident in the way Trimayr identi es,
assesses, and responds to franchisee underperformance. Regular
performance reviews, inspections, and support plans help manage risk
tolerance and maintain service quality. The risk of underperforming salons
not renewing their franchise agreements also feeds into this cycle, where
performance data guides strategic decisions around franchise retention or
termination.

Altogether, Trimayr's practices in HR management, supply chain operations,

and risk governance re ect an integrated, systemized approach that
underpins its franchise model and market competitiveness.

12.
In the context of Trimayr, Supply Chain Management (SCM) is a critical
function that directly in uences both operational e ciency and customer
satisfaction across its franchised and owned salons. Given the standardized
nature of its salon operations, Trimayr mandates that franchisees procure
products such as shampoos, conditioners, and hair treatments exclusively
from approved suppliers. This ensures product quality consistency across all
locations, thereby protecting the brand’s reputation and enhancing customer
loyalty. Additionally, Trimayr leverages its scale to negotiate favorable terms
with suppliers, achieving economies of scale and reducing procurement
costs for franchisees. The controlled supply chain also extends to non-
product items like salon furniture and ttings, where compliance with the
company’s style guide is mandatory, ensuring brand uniformity and high
service standards across all salons. E ective supply chain management
enables Trimayr to balance stock levels, minimizing both stockouts and
excess inventory, which is vital for maintaining optimal working capital and
supporting the retail sales component of its business model.
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 13. From a Risk Management perspective, Trimayr must apply both the
TARA Framework (Transfer, Avoid, Reduce, Accept) and the CIMA Risk
Cycle to safeguard its brand and operational performance. Under the
TARA framework, Trimayr avoids risks by enforcing strict compliance with
health and safety regulations, particularly regarding chemical treatments
and salon operations, which if mishandled could lead to reputational
damage and legal claims. It reduces risks through rigorous franchisee
training programs, regular performance monitoring via its Business
Intelligence System (BIS), and standardized operational procedures
enforced through salon inspections. Financial risks associated with non-
payment of royalties or poor franchise performance are mitigated using
robust KPI tracking and franchise renewal reviews. Where appropriate,
Trimayr transfers certain risks, such as property risks, to franchisees who
bear the responsibility for leasing premises and managing day-to-day
operations. Finally, Trimayr may accept minor risks inherent in market
uctuations or temporary underperformance, focusing instead on long-
term strategic resilience.

14.The CIMA Risk Cycle is applied through a systematic process of risk

identi cation, assessment, response, and monitoring. For example,
Trimayr identi es strategic risks like increased competition in franchise
recruitment from rivals such as Fox & Ti n and Norman & May, and
responds by strengthening its value proposition through enhanced
franchisee support and marketing e orts. Operational risks, such as
underperformance of individual salons, are monitored continuously
through real-time POS data and monthly KPI reviews, enabling timely
corrective actions. By embedding structured risk management into its
decision-making processes, Trimayr ensures sustained pro tability and
long-term business sustainability in a highly competitive market.

15. Business Intelligence and Big Data Analytics – Application to Trimayr

Trimayr actively leverages Business Intelligence (BI) and Big Data
Analytics to strengthen its competitive advantage in Dazzland's highly
fragmented hairdressing market. Through its advanced electronic point-of-
sale (POS) systems installed across all franchised and company-owned
salons, Trimayr collects real-time structured data, including sales volumes,
customer spending patterns, service times, and product purchases. This
data is automatically transmitted to the head o ce daily and feeds into
Trimayr’s Business Intelligence System (BIS), which enables senior
management to generate customized analytical reports. Beyond structured
data, Trimayr also gathers unstructured data through social media
engagement, customer feedback, and trend observations, particularly from
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 its Hair Technology division. These insights help the company make data-
driven decisions about marketing campaigns, service o erings, and salon
operational improvements. For instance, big data analytics enables Trimayr
to identify underperforming salons early by analyzing KPIs like customer
retention rates, average spend per visit, and waiting times. Moreover,
predictive analytics support strategic decisions, such as optimizing salon
locations, forecasting product demand for retail sales, and re ning
franchisee recruitment by pro ling successful franchise owners. This data-
centric approach ensures that both operational and strategic decisions align
with market demands and pro tability goals, reinforcing Trimayr’s market-
leading position in both the midmarket and upmarket salon segments.

16. Customer Relationship Management (CRM) – Application to Trimayr

Trimayr integrates Customer Relationship Management (CRM) strategies
deeply into its business model to enhance customer loyalty and maximize
customer lifetime value (CLTV). Recognizing that customer satisfaction
directly impacts its royalty-based revenue model, Trimayr’s salons track
individual customer visits using their POS systems, monitoring service
preferences, purchase histories, and even waiting and service times. This
information is invaluable for developing personalized marketing campaigns
and loyalty initiatives that encourage repeat visits and higher spending. For
instance, Trimayr’s CRM approach enables targeted promotions, such as
o ering discounts on high-margin services like hair coloring or chemical
treatments to customers with previous purchase history in those areas.
Additionally, upmarket Trimayr Sheen salons can tailor premium experiences
to their a uent clients, o ering exclusive products and priority booking,
enhancing emotional value and customer satisfaction. CRM data also feeds
into performance appraisals, where salon sta are incentivized based on
customer retention metrics. Through this customer-centric strategy, Trimayr
not only strengthens long-term relationships with its clients but also supports
its franchisees by providing actionable insights to improve service delivery
and maximize revenue per customer visit. This focus on personalized service
and relationship-building is critical in a market where customer loyalty
directly translates into nancial performance.

17. Transfer Pricing (Including for Royalties and Product Supply)

At Trimayr, transfer pricing plays a critical role in managing internal nancial
transactions between its head o ce and the network of franchised and
company-owned salons. Although Trimayr operates domestically within
Dazzland, the principles of transfer pricing remain highly relevant, particularly
when it comes to setting fair and justi able prices for products and services
supplied to franchisees. For example, Trimayr mandates that franchisees
purchase haircare products, salon furniture, and ttings from approved
suppliers, often packaged under the Trimayr brand. The prices set for these
goods e ectively represent internal transfer prices, which must adhere to the
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 arm’s length principle to ensure that franchisees are not overcharged,
maintaining long-term franchisee satisfaction and compliance with nancial
reporting standards under IFRS.
Additionally, royalties charged to franchisees for the use of the Trimayr
brand, trademarks, and business systems are a key element of Trimayr’s
revenue model. These royalty rates must re ect the value of the brand and
the strategic support provided to franchisees, while also being competitive
enough to attract and retain franchisees in a highly contested market. The
revenue from these royalties is recognized in accordance with IFRS 15,
based on when the associated performance obligations are satis ed.
Accurate transfer pricing mechanisms for both product supplies and royalty
fees are essential for Trimayr to maintain pro tability, uphold brand integrity,
and comply with nancial governance expectations.

18. Franchisee Evaluation and Performance Monitoring

Franchisee evaluation and performance monitoring are central to Trimayr’s
business strategy and operational excellence. The company employs a
robust framework for assessing both prospective and existing franchisees.
During the recruitment phase, Trimayr’s Franchise Recruitment team
rigorously evaluates potential franchisees against established selection
criteria, ensuring that only capable and nancially stable individuals or
entities are entrusted with the Trimayr brand. This careful vetting minimizes
the risk of underperformance and protects Trimayr’s brand reputation.
Post-establishment, franchisees are subject to continuous performance
monitoring through a sophisticated electronic point-of-sale (POS) system
that transmits daily sales and operational data directly to Trimayr’s head
o ce. Key performance indicators such as average spend per customer,
new customer acquisition, retention rates, average waiting and service times,
sta turnover, and revenue per square meter are meticulously tracked.
Franchise Management reviews this data monthly, ranking franchisees
relative to their peers and providing targeted feedback. Underperforming
salons receive tailored action plans to address issues, and persistent non-
compliance or poor performance may result in non-renewal of franchise
agreements at the end of their ve-year terms. This rigorous evaluation and
monitoring system ensures that franchisees remain aligned with Trimayr’s
strategic objectives, maintain high service standards, and contribute
positively to the overall brand value.

19. Training and Development ROI (Return on Investment)

For Trimayr, investing in training and development yields clear returns across
multiple dimensions of operational performance and brand integrity. The
company operates its own training colleges that deliver structured induction,
ongoing professional development, and apprenticeship programs. These
programs not only enhance service quality and customer satisfaction but
also support sta retention and motivation — critical in a service-driven
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 business like hairdressing where customer loyalty often depends on the
individual hairdresser. From a nancial perspective, the return on training
investment can be seen in increased customer lifetime value (CLTV), higher
spend per visit, and improved salon performance indicators (e.g., customer
retention and revenue per square metre). Moreover, ensuring sta are trained
in the latest styling techniques and product applications supports Trimayr's
di erentiation strategy, especially in the upmarket segment via its Sheen
brand. Therefore, the ROI from training is realized through higher revenues,
reduced errors or customer complaints (lower service recovery costs), and
stronger brand equity, all of which enhance overall pro tability.

20. ROI from Franchisee Acquisition

Trimayr’s franchise model is a core component of its business strategy, and
the acquisition of new franchisees is a signi cant area of investment. The
ROI from franchisee acquisition is measured by the net value derived from
franchise fees, ongoing royalty income, and enhanced market penetration
relative to the cost of recruiting, onboarding, and supporting each new
franchisee. Trimayr’s Franchise Recruitment team actively promotes
opportunities through industry events and digital platforms, and supports
new franchisees with site selection, salon design, training, and compliance
setup. While these upfront e orts and costs are substantial, the long-term
returns are realized through a consistent revenue stream from royalties
(linked to salon performance), increased brand visibility, and economies of
scale in supplier arrangements. The return is further enhanced when well-
supported franchisees achieve strong KPIs, renew their agreements after ve
years, and possibly expand to multiple salon ownerships — creating
compounding value. By carefully selecting and equipping franchisees,
Trimayr reduces risk and maximizes the lifetime pro tability of each franchise
relationship.

21. Trimayr employs a structured approach to strategic planning by

leveraging key performance indicators (KPIs) gathered through its advanced
point-of-sale (POS) and business intelligence systems. One critical KPI is
Revenue per Square Metre, which enables the company to assess the
pro tability of each salon relative to its physical space. This is especially
important for optimizing salon locations in premium retail spaces, ensuring
that high-rent premises deliver proportionately higher revenues. Additionally,
Average Waiting Time and Average Service Time per Customer Visitare
closely monitored to evaluate operational e ciency and customer
satisfaction. Excessive waiting times can deter repeat visits and harm the
Trimayr brand reputation, especially for its premium Trimayr Sheen salons,
where customers expect a seamless and luxurious experience. Conversely,
streamlined service times contribute to higher customer turnover without
compromising service quality, which is vital for Trimayr Pop salons operating
in the highly competitive midmarket segment.
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 22. In terms of Operational Performance and Service Time Management,
Trimayr’s franchise management team uses monthly performance reports
to identify salons that are underperforming in these critical areas. By
analyzing POS data, salons with long wait times or extended service
durations are agged for operational reviews. Franchise Management
collaborates with these salons to implement corrective measures, such as
improved sta scheduling, work ow optimization, and targeted sta
training to enhance service delivery speed. For the upmarket Trimayr
Sheen salons, maintaining a balance between e ciency and a
personalized customer experience is crucial, while for Trimayr Pop, faster
service times directly support higher customer volumes and revenue.

23. Furthermore, Variance Analysis plays a pivotal role in managing

customer experience and sta ng e ciency across the Trimayr network.
By comparing actual KPIs against prede ned targets, management can
assess variances in key areas such as customer satisfaction scores,
average spend per visit, and sta turnover rates. Negative variances in
customer experience metrics may indicate issues such as inadequate
service quality, long wait times, or ine ective promotions, prompting
immediate corrective actions. Similarly, sta ng variances—such as
higher-than-expected labor costs or sta shortages—highlight potential
ine ciencies or training gaps. For example, high sta turnover might
negatively impact service quality and increase customer wait times,
particularly in busy Trimayr Pop locations. Through this variance analysis,
Trimayr ensures that both nancial and non- nancial performance
objectives are met, supporting its long-term strategic goals of brand
reputation enhancement and sustainable growth.
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