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 offering exclusive styles,
skilled staff, 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 offerings. 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 influences pricing and valuation.

2. Customer Profitability 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 profitability, aligning with CPA’s internal
management use.
● IFRS 15 – Revenue Recognition:
○ If customers prepay for packages, revenue must be deferred and
recognized over time as services are delivered. This aligns with CPA in
tracking profitability by visit or by treatment type.
 ● IAS 1 – Presentation of Financial Statements:
○ Insights from CPA may influence management commentary in financial
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
influence perceived
value/pricing
CPA & CLV Focus IFRS 15 / IFRS 8 Track profitability of
customers/segments
and recognize
deferred revenue
Prepaid Packages IFRS 15 Revenue must be
recognized over
service delivery
Management IAS 1 CPA insights may
Commentary 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 different customer
segments with distinct pricing and service expectations.
● Target Costing is particularly important for Trimayr Pop, where it must
deliver competitive pricing while maintaining profitability in the midmarket
segment.
● For Trimayr Sheen, although it can apply premium pricing, value analysis
becomes crucial to ensure customers perceive sufficient 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 fit-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 benefits (emotional, functional, and
 ●

experiential).
IFRS/IAS Tie-in:
● IAS 2 – Inventories: For products sold in salons (e.g., shampoos,
conditioners), inventory valuation must reflect 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 justification 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 & Tiffin, 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, staff 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 financial reporting by brand or location, internal
and external benchmarking aligns with operating segment disclosure for
decision-making.
● IAS 36 – Impairment of Assets: Underperforming salons identified through
benchmarking may require impairment testing—particularly company-
owned sites. Persistent poor KPIs (e.g., low average spend, high staff
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.
5. BALANCED SCORECARD at Trimayr
The Balanced Scorecard (BSC) is a performance management tool that tracks
both financial and non-financial 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
- Revenue per square royalties.
metre tracked daily. IFRS 9 – Expected
- Investment centre Credit Losses on
performance for royalty receivables.
company-owned IAS 36 – Impairment
salons (ROCE testing for
tracked). underperforming
salons.
Customer - Customer retention IFRS 8 – Segment
rates. reporting may group
- Satisfaction via customer performance
waiting times & repeat by region or brand
visits. (e.g., Sheen vs Pop).
- Premium brand
experience at Sheen
salons.
Internal Processes - Average waiting & IFRS 16 – Leased
service time. premises impact
- Staff turnover rates. internal processes
- Daily POS data (costs, layout
uploads for real-time compliance).
KPIs. IFRS 15 – Service-
- Franchise level agreements for
inspections & training franchise support.
adherence.
Learning & Growth - Staff training & IAS 38 – Intangible
apprenticeships. assets (brand, training
- Investment in in- content, digital
house Hair Technology systems).
for innovation. IFRS 3 – Goodwill
- Franchisee arising from strategic
onboarding programs. investment in
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
Cost Centre - Franchise training Costs are monitored,
centres. not revenue generated
- Hair Technology R&D directly. Training
team. expenses might be
capitalized under IAS
38 if they meet
recognition criteria.
Revenue Centre - Marketing function at Royalty revenues
head office generating tracked under IFRS
franchise leads. 15.
- POS-based revenue
tracking at salon level.
Profit Centre - Each franchised Performance
salon: manages benchmarking used;
revenues & costs profitability metrics
independently. inform franchise
- Performance renewal decisions.
monitored via KPIs like
avg. spend, retention,
etc.
Investment Centre - The 40 company- ROCE is a key
owned Trimayr Pop performance metric.
salons: Trimayr IFRS 16 (leases), IFRS
directly manages 15 (service revenue),
capital, costs, and and capital employed
profits. 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 define accountabilities across different
operational units (salons, training, HQ).
● IFRS standards like IFRS 15, IFRS 16, IFRS 9, and IAS 38 play key roles in
reporting and managing financial 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 profit centres, where individual Salon Principals are
accountable for the revenues and costs of their salons. They have autonomy in
areas such as staffing, 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 office, showing a
networked divisional structure. The 40 company-owned salons differ slightly
—they can be classified as investment centres, since Trimayr directly monitors
their Return on Capital Employed (ROCE), which is a key performance metric
in evaluating capital investment efficiency. 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-effectiveness, and improve profitability across different 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 flows against upfront costs, factoring in lease
obligations under IFRS 16 and impairment testing under IAS 36. The key
advantage of NPV is its financial rigor, but it can be limited by its dependence
on an accurate discount rate and the challenge of quantifying intangible
benefits like brand reputation.
Internal Rate of Return (IRR) complements NPV by offering a rate-based
benchmark for decision-making. It is useful when comparing investment
options, such as expanding owned salons versus increasing investment in
digital marketing platforms. Its ease of communication makes it attractive to
senior stakeholders. However, IRR may give misleading results if cash flows 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
fluctuating performance or uncertain consumer behavior in different 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 offers the
benefit of capital release and operational focus but may come with reputational
and financial risks.

1. Net Present Value (NPV)

● Definition:
NPV is the present value of cash inflows minus the present value of cash
outflows 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.
● 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 benefits (e.g., brand reputation from
Hair Technology initiatives).
●
● 2. Internal Rate of Return (IRR)
● Definition:
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.
● Offers 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 flows (e.g., temporary
closures and reopenings).
● Doesn’t measure absolute value—a project might have high IRR but low
overall benefit.
● Assumes cash flows are reinvested at IRR—which may not be realistic for
franchised salons.
 ●
● 3. Sale vs Closure Decisions
● Definition:
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.
● 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.

.
. Total Quality Management (TQM) & Quality Chains
TQM and quality chains refer to a holistic approach to maintaining service
quality at every stage—from staff 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 qualified 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 staff member (e.g. apprentice, stylist, salon
manager) is a link. If one fails—e.g. untrained staff applying chemical
treatments—the whole chain breaks, harming brand perception.
 Advantages of TQM for Trimayr:
● Enhances brand consistency across 560+ franchised salons.
● 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 staff training and salon inspection systems.
● Resistance from franchisees who may view it as micro-management.
● Risk of standardization stifling local creativity or flexibility 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., Staff Turnover,

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

Advantages:
● Identifies high-performing and underperforming salons or staff.
● Low staff turnover improves customer retention and average spend
per visit—vital since Trimayr earns royalties on service revenue.
● KPIs can support incentive systems, improving staff 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: Staff performance indirectly impacts
expected credit losses (e.g., poor-performing franchisees may default on
royalties).
● IAS 19 – Employee Benefits: Performance appraisals may affect bonus
accruals or provision for long-term benefits.
● IFRS 15 – Franchise Revenue: KPIs influence royalty calculations and thus
revenue recognition from franchisees.

11.
In the context of Trimayr, human resource key performance indicators (KPIs)
such as staff turnover and performance appraisals are vital to maintaining the
high service standards expected in its franchise and company-owned salons.
Staff turnover directly affects 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 staff 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 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 profitability. Trimayr also uses
supply chain controls to manage professional-grade products exclusive to
salons, reinforcing its differentiation 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
underqualified staff 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 identifies, 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 reflect an integrated, systemized approach that underpins
its franchise model and market competitiveness.

.
In the context of Trimayr, Supply Chain Management (SCM) is a critical
function that directly influences both operational efficiency 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 fittings, where compliance with the company’s style
guide is mandatory, ensuring brand uniformity and high service standards
across all salons. Effective 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.

. 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 fluctuations or temporary
underperformance, focusing instead on long-term strategic resilience.

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

identification, assessment, response, and monitoring. For example, Trimayr
identifies strategic risks like increased competition in franchise recruitment
from rivals such as Fox & Tiffin and Norman & May, and responds by
strengthening its value proposition through enhanced franchisee support
and marketing efforts. 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 profitability 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 office 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 its Hair Technology division. These
insights help the company make data-driven decisions about marketing
campaigns, service offerings, 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 refining franchisee recruitment by profiling successful franchise owners.
This data-centric approach ensures that both operational and strategic
decisions align with market demands and profitability 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 offering
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 affluent clients,
offering exclusive products and priority booking, enhancing emotional value
and customer satisfaction. CRM data also feeds into performance appraisals,
where salon staff 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 financial
performance.

. Transfer Pricing (Including for Royalties and Product Supply)

At Trimayr, transfer pricing plays a critical role in managing internal financial
transactions between its head office 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 justifiable prices for products and services
supplied to franchisees. For example, Trimayr mandates that franchisees
purchase haircare products, salon furniture, and fittings from approved
suppliers, often packaged under the Trimayr brand. The prices set for these
goods effectively represent internal transfer prices, which must adhere to the
arm’s length principle to ensure that franchisees are not overcharged,
maintaining long-term franchisee satisfaction and compliance with financial
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 reflect 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 satisfied. Accurate transfer pricing
mechanisms for both product supplies and royalty fees are essential for Trimayr
to maintain profitability, uphold brand integrity, and comply with financial
governance expectations.

. 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 financially 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 office. Key
performance indicators such as average spend per customer, new customer
acquisition, retention rates, average waiting and service times, staff 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 five-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 staff retention and motivation — critical in a service-driven business
like hairdressing where customer loyalty often depends on the individual
hairdresser. From a financial 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 staff are trained in the latest
styling techniques and product applications supports Trimayr's differentiation
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 profitability.

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 significant 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 efforts 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 five years, and possibly expand to multiple salon ownerships
— creating compounding value. By carefully selecting and equipping
franchisees, Trimayr reduces risk and maximizes the lifetime profitability 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 profitability 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 efficiency 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.

. 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 flagged for operational reviews. Franchise Management
collaborates with these salons to implement corrective measures, such as
improved staff scheduling, workflow optimization, and targeted staff
training to enhance service delivery speed. For the upmarket Trimayr
Sheen salons, maintaining a balance between efficiency and a personalized
customer experience is crucial, while for Trimayr Pop, faster service times
directly support higher customer volumes and revenue.

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

experience and staffing efficiency across the Trimayr network. By
comparing actual KPIs against predefined targets, management can assess
variances in key areas such as customer satisfaction scores, average spend
per visit, and staff turnover rates. Negative variances in customer
experience metrics may indicate issues such as inadequate service quality,
long wait times, or ineffective promotions, prompting immediate corrective
actions. Similarly, staffing variances—such as higher-than-expected labor
costs or staff shortages—highlight potential inefficiencies or training gaps.
For example, high staff 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 financial and non-
financial performance objectives are met, supporting its long-term strategic
goals of brand reputation enhancement and sustainable growth.